FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 35, OF FORT BEND COUNTY, TEXAS
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1 FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 35, OF FORT BEND COUNTY, TEXAS Minutes of Meeting of Board of Directors June 6, 2018 The Board of Directors ("Board" ) of Fort Bend County Municipal Utility District No. 35, of Fort Bend County, Texas ("District" ), met on June 6, 2018, at 1300 Post Oak Boulevard, Suite 1400, Houston, Harris County, Texas 77056, in accordance with the duly posted notice of public meeting, and the roll was called of the duly constituted officers and members of said Board, as follows: Susan Ruske, President Piero Battistini, Vice President Sergio Handal, Secretary Trevor Eynon, Assistant Secretary Steven Olsen, Assistant Secretary and all of said persons were present except Director Battistini, thus constituting a quorum, Director Battistini entered the meeting later as noted herein, Also present were Esther Flores of Tax Tech, Inc. ("Tax Tech" ); Ikatie May and Clay Brandenberg of Inframark ("Inframark"); Cindy Fields of Brown k Gay Engineers, Inc. ("BGE"); Jerry Schroeder of Champions Hydro-Lawn, Inc. ("Champions" ); Cory Burton and Taylor Watson of Municipal Accounts 2 Consulting, L.P, ("MAC"); Erica Slater of Principal Management Group of Houston ("PMI"), Community Manager for Seven Meadows Community Association, Inc. ("Seven Meadows" ); Anthea Moran of Masterson Advisors, LLC ("Masterson"); and Bryan Yeates and Hannah Slaven of Schwartz, Page 4 Harding, L, L.P. ("SPH"), The President called the meeting to order and declared it open for such business as might regularly come before it. APPROVAL OF MINUTES As the first order of business, the Board considered approval of the minutes of its meetings held on May 9, After discussion, Director Eynon moved that the minutes for said Board meeting be approved as written, Director Ruske seconded said motion, which unanimously carried. COMMENTS FROM THE PUBLIC Ms. Moran addressed the Board regarding the financial advisory services provided by Masterson and responded to questions from the Board. The Board requested that an item be
2 placed on the July agenda to consider the engagement of Masterson as the District's new financial advisor, Director Battistini entered the meeting during the above conversation. TAX ASSESSOR-COLLECTOR REPORT Ms, Flores presented to and reviewed with the Board the Tax Assessor-Collector Report for the month ending May 31, 2018, attached hereto as Exhibit A. After discussion, it was moved by Director Handal, seconded by Director Olsen and unanimously carried that the Tax Assessor-Collector Repo&t be approved as presented, and that the disbursements identified in said report be approved for payment from the tax account, DKLINOUKNT TAX REPORT Mr. Yeates reported that a Delinquent Tax Report was not received this month from Perdue, Brandon, Fielder, Collins 2 Mott, L.L,P., the District's delinquent tax collections attorneys. He stated that the next quarterly report will be provided in July, ENGINEER'S REPORT Ms. Fields presented to and reviewed with the Board a written Engineer's Report, dated June 6, 2018, attached hereto as Exhibit 8, relative to the status of various engineering and construction projects within the District, and discussed the matters contained therein, Ms. Fields reponed on the status of the sidewalk being constructed along the south side of Fry Road by RNB Construction ("RNB"). She reported that the project was substantially complete and that a walk-through inspection had been performed on Friday, June 1, and the contractor was currently addressing punch list items, She further advised that RNB had submitted Pay Estimate No. 5, a copy of which is included in the Engineer's Report. After discussion, Director Handal moved that the Board approve Pay Estimate No. 5 for RNB Construction. Director Olsen seconded the motion, which carried unanimously, Ms. Fields then presented to the Board an updated Capital Improvement Plan for the next twenty-four months, a copy of which is attached to the Engineer's Report. DOG PARK EXPANSION The Board next considered approval of the construction contract with DL Meacham, LP ("Meacham") to expand the District's Dog Park in the amount of $23, (the "Contract" ). Director Handal moved that the Board (i) approve the Contract and authorize the President to execute same on behalf of the District, subject to SPH review of the payment and performance bonds and worker's compensation insurance for the Contract, and (ii) accept the Texas Ethics Commission Form 1295 for Meacham and authorize SPH to acknowledge receipt of same, Director Ruske seconded the motion, which carried unanimously. The Board asked that an item be added to the July agenda to ratify said action.
3 CHAMPIONS HYDRO-LAWN, INC. OPERATIONS AT LITTLE PRONG CREEK ("CHAMPIONS" ) MAINTENANCE Mr. Schroeder presented to and reviewed with the Board a Detention and Drainage Facilities Report dated June 6, 2018, for Little Prong Creek. and corresponding photographs, attached hereto as Exhibit C, which showed District facilities to be in good overall condition. STORMWATER MANAGEMENT PROGRAM ("SWMP") Mr. Yeates advised the Board that there were no updates regarding the District's SWMP at this time. OPERATIONS REPORT Ms. May presented to and reviewed with the Board the Operations and Maintenance Repott ("OAM Report" ) for the month of March 2018, a copy of which is attached hereto as Exhibit D, Ms, May reported to the Board that the District had approximately 98% water accountability for the reporting period, discussed repairs made throughout the District, and reviewed with the Board an inspection report from Venture Landscape Systems, LLC, relative to the District's park facilities, a copy of which is attached to the OAM Report, Directors Eynon and Battistini mentioned they had noticed problems with the beacon on the lift station on Gaston Road. Ms. May said she would investigate. Ms. May next reminded the Board that BGE had evaluated Lift Stations One and Two and determined that, while the wet well wall concrete was structurally intact, the interior of the wet well walls were peeling and required recoating, She reported that BGE had obtained an estimate, Inframark had obtained a second estimate, and she anticipated having a third estimate to present to the Board at the July meeting, Ms, May also provided an update on the televising of the sanitary sewer lines. She advised that Inframark has two sections left to finish the project, which is scheduled at the end of June Ms. May next discussed with the Board whether to treat the District's Dog Park for fleas She stated that Inframark. obtained an estimate for monthly service in the amount of $1,750.00, or $21, yearly, After discussion, the Board concurred not to treat the Dog Park for fleas and ticks at this time, and ticks. Ms. May next updated the Board on the delinquent water customer account that was discussed at the last month's meeting. She reminded the Board that it had approved a three month payment plan for the customer, contingent on the customer's timely payment of her current water bill in full each month. Ms. May then advised the Board that the customer has requested further adjustment to the account due to the high amount of water usage caused by a leak, She also noted that the customer has now moved out of the District, Ms. May recommended to the Board that, considering the unique circumstances of the account and the fact that the customer had moved out of the District, the high usage bill in question be adjusted to charge the customer at the District's lowest tiered rate of $1.25 per thousand gallons for all
4 metered water usage during the month, plus all applicable regulatory assessments and North Foit Bend Water Authority fees. After discussion, Director Ruske moved to approve the adjustment as recommended by Ms. May. Director Olsen seconded the motion, which unanimously carried. Ms. May next advised the Board that Inframark has also received a water bill adjustment request from a commercial customer this month. She stated that the commercial customer is requesting relief due to high usage caused by a water line leak. on the customer's side of the meter, Ms, May recommended that the Board consider billing the customer for its actual water usage during the same billing cycle in 2017 and then bill the customer for its usage over the 2017 amount at the District's lowest tiered rate of $1,25 per thousand gallons of metered water usage, plus all applicable regulatory assessments and North Fort Bend Water Authority fees. After discussion, Director Ruske moved to approve the adjustment as recommended by Ms. May. Director Olsen seconded the motion, which unanimously carried. SUBMISSION OF CRITICAL LOAD STATUS INFORMATION TO THE COUNTY OFFICE OF E&ME&RGENCY MANAGEMENT, PUBLIC UTILITY COMMISSION, AND THE& DIVISION OF EMERGENCY MANAGEMENT OF THE GOVKNOR Mr, Yeates advised that Section of the Texas Water Code, as amended, requires the District to update its information identifying the location and description of facilities that have qualified for critical load status and its information regarding emergency contacts (a) annually to each electric utility that provides transmission and distribution service to the District and each retail electric provider that sells power to the District, and (b) immediately upon any change in the information to the above entities, as well as to the office of emergency management of Fort Bend County, the Public Utility Commission of Texas, and the division of emergency management of the Governor, Ms, May advised that Inframark would provide the annual update and, if required, to the appropriate any changes to the information entities. Following discussion, Director Eynon moved to authorize Inframark to make such submissions on behalf of the District, as and if necessary. Director Ruske seconded said motion, which unanimously carried. BOOKKEEPER'S REPORT Mr. Watson presented to and reviewed with the Board the Bookkeeper's Report dated June 6, 2018, including a Cash Flow Repoit, a Fund Balance Summary, a Pledged Securities Report, a Budget Comparison, a District Debt Service Payments Summary, and a Sales Tax Revenue History, a copy of which report is attached hereto as Exhibit E. After discussion, Director Olsen moved that the Bookkeeper's Report be approved and that the disbursements identified therein be approved for payment. Director Handal seconded said motion, which unanimously carried. ADOPTION OF DISTRICT AND DISTRICT ORDER ESTABLISHING MEETING PLACES INSIDE THK ORDER ESTABLISHING MEETING PLACES OUTSIDE THE The Board next considered the adoption of orders establishing alternative meeting places. The Order Establishing Additional Meeting Places Outside the District, attached hereto as
5 Exhibit F established three new places outside the District, and the Order Establishing Meeting Places Inside the District, attached hereto as Exhibit G, established two new places inside the district. Director Ruske moved that both Orders be approved by the Board. The motion was seconded by Director Eynon and unanimously carried. VOTING SYSTEM ANNUAL FILING FORM Mr. Yeates requested that the Board authorize SPH to complete a Voting System Annual on behalf of the District, which will be forthcoming from the Filing Form (" Voting Form" ) Secretary of State's Office. He advised that, pursuant to provisions of the Texas Election Code, each political subdivision in the State of Texas is required to complete and file said Voting Form with the Secretary of State's Office on an annual basis. After discussion on the Voting Form, Director Ruske moved that SPH be authorized to complete said form and that SPH be authorized to file same with the Secretary of State's Office, as required by law, Director Olsen seconded said motion, which unanimously carried. RECORDS DESTRUCTION REOUKST Mr. Yeates reported that the District's General Records Retention Schedule adopted in connection with its Records Management Program requires that notes taken during meetings and used to prepare the official minutes of Board meetings are to be retained for ninety days after approval of such minutes by the Board. He next presented a request from the Records Management Officer, attached hereto as Exhibit H, for approval to destroy all such notes from February 1, 2017, to February 8, After discussion, Director Battistini moved that SPH be authorized to destroy such notes. Director Olsen seconded said motion, which carried unanimously. ATTORNEY'S REPORT The Board next considered the attorney's report, In connection therewith, Mr, Yeates advised that he had nothing further to report to the Board other than the items previously discussed. FORT BEND COUNTY PRECINCT THREE CONSTABLE'S OFFICE ("FBCCO") ACTIVITY REPORT Mr. Yeates advised the Board that SPH had not received an activity report from the FBCCO in advance of today's meeting. He stated that SPH would forward said report to the Board upon receipt. FUTURE AGENDA ITEMS The Board requested that an item be added to next month's agenda to receive a report from Fort Bend County Precinct Three Commissioner's Office representative regarding potential installation of electronic speed signs within the District
6 ADJOURNMENT OF MEETING There being no further business to come before the Board, Director Handal moved that the meeting be adjourned. Director Ruske seconded said motion, which unanimously carried. %0glll IIII///// xi~~ e(glpal i (SEAL) ~rg~ 0$ /////llllllooi Secretary, Board of Director l
7 TABLE OF EXHIBITS Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Tax Assessor-Collector's Report Engineer's Report Champions Maintenance Report Operator's Report Bookkeeper's Report Order Establishing Additional Meeting Places Outside the District Order Establishing Meeting Places Inside the District Records Destruction Request Letter
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