Meeting Minutes – October 9, 2024

Montgomery County Municipal Utility District No. 8

Meeting Minutes – October 9, 2024

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
October 9, 2024

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MUD 8”) met in regular session, open to the public, on Wednesday, October 9, 2024, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

John Tryon – President
John L. Patton – Vice President
Margie Barlow – Secretary
Randolph C. Moravec – Treasurer/Investment Officer
Michael White – Assistant Secretary

All members of the Board were present, thus constituting a quorum. Also attending were:

Mark Miller of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”)
Justin Abshire and Conner Murphy of Quiddity Engineering (“Engineer” or “Quiddity”)
Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”)
Elliot M. Barner, attorney, and Allison Dawson, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”)
Ray Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”)
Rusty Denner, General Manager for the Walden Community Improvement Association (“WCIA”)

The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board was present, called the meeting to order and declared it open for such business as may come before it.

PUBLIC COMMENT
The President opened the meeting to public comment. There being no public comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF AUGUST 14, 2024 AND SEPTEMBER 11, 2024 REGULAR MEETINGS
The President then directed the Board to the approval of the August 14, 2024 and September 11, 2024 regular meeting minutes. Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the August 14, 2024 and September 11, 2024 regular meeting minutes, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT
Mr. Miller informed the Board that the September 2024 Tax Assessor-Collector’s Report was not available at the time of the Board meeting, but that MAC had received and provided to the Board the Tax-Assessor Collector’s Report for the month of August 2024, a copy of which is attached hereto. Mr. Miller then reviewed past monthly collections and credit information included in such report. Mr. Miller went on to note that 99.11% of the 2023 taxes have been collected as of August 31, 2024.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

BOOKKEEPER’S REPORT
Mr. Miller next reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures, and investments.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented.

ENGINEER’S REPORT
Mr. Murphy then presented the Engineer’s Report, a copy of which is attached hereto.

Mr. Murphy reminded the Board that the Wastewater Treatment Plant (“WWTP”) Improvement Project was completed 834 days later than the completion date stated in the construction contract for such project. Mr. Murphy added that Mr. Barner will update the Board further in Executive Session at the end of the meeting.

Mr. Murphy next reminded the Board that the Stormwater Outfall Cleaning and Televising Project, Phase I, will be further delayed due to the elevated water level in Lake Conroe. A brief discussion ensued regarding lake levels being at 199 feet. In response to a question, Mr. Abshire stated that the contract for such project is still holding at the same rates agreed to upon.

Mr. Murphy next reported that Quiddity has completed the metes and bounds description for the Lift Station Nos. 5-7 Rehabilitation Project and RAB has prepared a temporary construction easement for a property owner for access to one such lift station. Mr. Murphy further reported that Quiddity has advertised the project for bids and expects to receive bids on October 17, 2024. Further, Mr. Murphy stated that Quiddity plans to present the bids to the Board at the November 13th Board meeting.

Director Moravec then requested a meeting with Quiddity to review the inventory of the fixed assets schedule. A brief discussion ensued regarding the process for preparing such schedule.

Mr. Murphy then reported that Quiddity has submitted the plans, calculations, and specifications to the Texas Commission on Environmental Quality (“TCEQ”) for Water Plant No. 2 Phosphate System.

Next, Mr. Murphy informed the Board that Quiddity received a contract from Texas Aquastore for the District’s glass-lined ground storage tank (“OST”) rehabilitation project at both Water Plant Nos. 1 and 2 and provided such contract to RAB for review. Mr. Murphy recommended the Board approve such contract and a down payment in the amount of $273,790.00 to Texas Aquastore; such amount being fifty percent (50%) of the total amount of the contract. Mr. Abshire reminded the Board that should the project cannot be completed before summer, they will separate performance of the project into two (2) phases, with Water Plant No. 1 being performed first.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved contract with Texas Aquastore, subject to review by the Attorney; and 3) approved fifty percent (50%) down payment in the amount of $273,790.00 to Texas Aquastore.

Mr. Miller exited the meeting at this time.

OPERATOR’S REPORT
Mr. Wright next presented the Operator’s Report, a copy of which is attached hereto.

Mr. Wright then reported that 746 customers are receiving electronic billing statements, which is a decrease of one (1) customer from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 97.72%.

Mr. Wright then reported that there were no new taps last month and that the District has a total of 1,836 connections. Mr. Wright further reported that there were no accounts terminated last month due to delinquent payment.

Mr. Wright next reported to the Board that there were two (2) customers requesting an adjustment to their water bills due to abnormally high water usage. A discussion ensued.

Mr. Barner entered the meeting at this time.

Mr. Wright then reported on the Lead Service Line Inventory required by the Environmental Protection Agency’s (“EPA”) rules regarding lead and copper content in plumbing fixtures.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the: 1) Operator’s Report, as presented; 2) adjustments to two (2) water accounts pursuant to the District’s Leak Adjustment Policy at the lowest usage tier; and 3) submittal of an Application to Amend A WS Production Permit to the Lone Star Groundwater Conservation District.

ANNUAL REVIEW OF RATE ORDER, AMEND AS NECESSARY
Director Moravec stated his opinion that the District’s water and wastewater rates are sufficient to cover the District’s expenses and maintain a healthy operating reserve. A brief discussion ensued and it was the consensus of the Board that it take no action on the Rate Order.

SECURITY AT DISTRICT FACILITIES
Director White updated the Board on security measures for the District’s facilities. Director White stated that the braces and the razor wire were removed from certain locations of the security fence that abut residential properties adjacent to the Browning Water Treatment Plant (“WTP”) pursuant to the direction of the Board. In response to a question from Director Tryon regarding the entrance gate to the Poe WTP, Mr. Wright stated that Hays North will investigate and make any necessary repairs to such gate.

MISCELLANEOUS REPORTS
Mr. Denner reported that the WCIA is waiting to receive the requisite permits before it begins its annual deer removal program.

Mr. Denner further reported that the WCIA is investigating speed limit signage within the boundaries of such association and what signage requires replacement. A brief discussion ensued.

Director Tryon then reported that MUD 9’s tax rate was levied by the MUD 9 Board at its September meeting. Director Tryon added that MUD 9 also approved a new generator for its Buckingham WTP and that MUD 9 is moving forward certain security-related improvements for its facilities, as had been previously discussed.

AGREEMENTS WITH CITY OF HUNTSVILLE
Next, Mr. Barner reminded the Board that the District’s option to purchase effluent from such city expires on January 31, 2025. A discussion ensued regarding the option and scheduling a joint meeting with MUD 9 to discuss renewal of such option.

ANNUAL REVIEW OF POST-ISSUANCE TAX-EXEMPT DEBT COMPLIANCE POLICIES
Mr. Barner briefly reviewed with the Board the District’s Post-Issuance Compliance Policies for tax-exempt debt. In response to a question, Mr. Barner explained that no action was needed by the Board regarding such policies at this time.

ANNUAL REVIEW OF DISTRICT CONSULTANTS’ CONTRACTS
Mr. Barner then reminded the Board that it is required to review each of the District’s consultants’ contracts annually and that there are various approaches used by water districts in order to perform such a review, including reviewing one (1) consultant each month, having a special meeting to review all the District’s consultants at once or assigning one (1) director to each consultant. Mr. Barner added that should the Board determine to take no action on further review of such contracts, such determination should be reflected in the minutes for the meeting. The Board briefly discussed the status of its contracts with the various consultants for the District and determined that all of the consultants are performing satisfactorily at this time.

ATTORNEY’S REPORT
Mr. Barner next reported that he has not received written notice that Montgomery County Emergency Services District No. 2 (the “ESD”) is terminating the lease of the District-owned Walden Fire Station. Director Tryon added that he and Director White met with Chief Edwards, the fire chief for the ESD, at such station and noted that the ESD has removed its personal property, but for a generator and a transfer switch that facilitates the use of such generator. Director Tryon further stated that Chief Edwards informed Director White and him that such switch would be left behind but that such generator would be removed and installed at another location owned by the ESD.

Mr. Barner then updated the Board regarding the initial offer letter from Entergy for the acquisition of an easement.

EXECUTIVE SESSION
Pursuant to Section 551.071 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 10:38 a.m. to discuss matters of attorney-client privilege. Present for all or portions of the Executive Session were the Board of Directors; Mr. Abshire; Mr. Murphy; Mr. Barner; and Ms. Dawson.

RECONVENE IN OPEN SESSION
As of 11:02 a.m., the President declared the Executive Session was ended and open session was resumed.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:03 a.m.

PASSED AND APPROVED this the 13th day of November, 2024.

Assistant Secretary, Board of Directors