MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 18. June 9,2014
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1 MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 18 June 9,2014 The Board of Directors (the "Board") of Harris County Municipal Utility District No. 18 of Harris County, Texas (the "District"), met in regular session, open to the public, on the 9th day of June, 2014, at the offices of Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2400, Houston, Texas, outside the boundaries of the District, and the roll was called of the members of the Board: Arved White Roy A. Beversdorf Michael L. Murr Robert A. Bernardini Karl Skarboszewski President Vice President Secretary Assistant Vice President Assistant Secretary and all of the above were present, thus constituting a quorum. Also present at the meeting were Wendy Austin of District Data Services, Inc.; Yvonne Luevano of Wheeler & Associates, Inc.; Nancy Blackwell of AEI Engineering, Inc. r AEI"); Tracy Riley of Eagle Water Management, Inc. ("Eagle"); and Adisa Harrington and Rebecca Buster of Allen Boone Humphries Robinson LLP ("ABHR"). COMMENTS FROM THE PUBLIC MINUTES There were no comments from the public. The Board considered approving the minutes of the May 12, 2014, meeting. After review and discussion, Director Beversdorf moved to approve the minutes of the May 12, 2014, meeting, as presented. Director Bernardini seconded the motion, which passed unanimously. RENEWAL OF DISTRICT'S INSURANCE POLICIES Ms. Harrington stated that the District's insurance policies with W.I.N. through Highpoint Insurance Group ("Highpoint") expire on August 12, 2014, and that the premium for Highpoint's renewal policy has increased by $ due to property values increasing in the District. Following review and discussion, Director Beversdorf moved to renew the District's insurance policies with Highpoint. Director Bernardini seconded the motion, which carried unanimously
2 FINANCIAL AND BOOKKEEPING MATTERS Ms. Austin reviewed the bookkeeper's report, including the energy consumption report, budget comparison, and schedule of investments, and presented the District's bills for payment. A copy of the bookkeeper's report is attached. Following review and discussion, Director Bernardini moved to approve the bookkeeper's report and payment of the bills. Director Murrseconded the motion, which passed unanimously. TAX ASSESSMENT AND COLLECTIONS MATTERS Ms. Luevano reviewed with the Board the tax assessor/collector's report and the delinquent tax roll, copies of which are attached. She reported that 99.0% of the 2013 taxes had been collected as of May 31, 2014, and that the District's preliminary assessed value for 2014 is $233,382,258. Following review and discussion, Director Beversdorf moved to approve the tax assessor/collector's report and payment of the tax bills. Director Bernardini seconded the motion, which carried unanimously. AUTHORIZE DELINQUENT TAX ATTORNEY TO PROCEED WITH COLLECTION OF DELINQUENT TAXES Ms. Luevano stated that the District's delinquent tax attorney can begin collection of real property taxes that were delinquent as of July 1, After discussion, Director Bernardini moved to authorize the delinquent tax attorney to proceed with the collection of delinquent 2013 taxes. Director Bernardini seconded the motion, which passed unanimously. ENGINEER'S REPORT Ms. Blackwell reviewed the engineer's report, a copy of which is attached. Ms. Blackwell gave an update on Lake Forest Plant Advisory Council ("LFPAC") activities. A copy of the LFP AC report is attached to the engineer's report. Ms. Blackwell reviewed a draft summary of current and anticipated future capital projects, a copy of which is included in the engineer's report. Ms. Blackwell updated the Board on the Hidden Falls facilities that will be turned over to the District by the developer. She stated that a field evaluation of the facilities was conducted and AEI is preparing a summary report of recommended improvements. Following review and discussion, and based upon the engineer's recommendation, Director Beversdorf moved to accept the engineering report. Director Bernardini seconded the motion, which carried unanimously
3 EMERGENCY RESPONSE PLANS, INCLUDING REVIEW DISTRICT INTERNAL EMERGENCY OPERATIONS PLAN AND ADOPT RESOLUTION ADOPTING AMENDED DISTRICT EMERGENCY OPERATIONS PLAN, AND EMERGENCY RESPONSE TRAINING The Board conducted a review of the District's Emergency Operations Plan and discussed emergency response training. The Board discussed holding a special meeting at Director Murr's office to conduct emergency response training. Following discussion, the Board concurred to hold a special meeting on Tuesday, June 24, 2014, at 1:00 p.m., at Murr Incorporated, Grant Road, Suite 108, Cypress, Texas 77429, and requested that ABHR prepare an agenda for the meeting. OPERATION OF DISTRICT FACILITIES AND HEARING ON TERMINATION OF WATER AND SEWER SERVICE Mr. Riley presented the operator's report, a copy of which is attached, and reported on maintenance work in the District. He stated that the District's water accountability for the previous month was 93.1 %. Mr. Riley presented the District's 2013 Consumer Confidence Report ("CCR") and reported that the CCR contains a violation for failure to conduct lead/copper sampling in He explained that the delay in testing was due to incorrect information provided by the District's prior operator to Eagle, and that the testing has now been completed. He requested Board authorization to include a website link to the CCR on the June water bill to all District customers and provide hard copies of the CCR only to those customers who request hard copies. Director Beversdorf stated that he will include the CCR link on the District's website. Mr. Riley discussed the diesel engine at the Oak Bluff Water Plant. He reported that the used diesel engine (discussed at last month's meeting) has now been purchased from Cypress Hills Municipal Utility District. He noted there is a potential issue with the used engine's radiator that Eagle is investigating. Mr. Riley stated that the customers on the termination list were mailed written notice prior to this meeting notifying them of the opportunity to appear before the Board to explain, contest, or correct the utility service bill and to show reason why utility service should not be terminated because of nonpayment, all as required by the District's Rate Order. A copy of the termination list is attached to the operator's report. After review and discussion, Director Skarboszewski moved to (1) accept the operator's report; (2) approve the CCR and authorize the operator to post a website link to the CCR on customer water bills; and (3) terminate service to the customers on the termination list! because no customers were either present at the meeting or had presented
4 any written statement on the matter. Director Bernardini seconded the motion, which carried unanimously. Ms. Harrington reviewed a survey request from the Goldwater Project. Discussion ensued and the Board concurred not to complete the survey at this time. WATER SMART AND WATER WISE PROGRAMS There was no discussion on these matters. SALE OF SERIES B GROUNDWATER CREDITS Ms. Harrington reported that the District has 37,256,000 Series B groundwater credits available for purchase. NHCRWA LFPAC There was no report on this matter. Directors White and Skarboszewski gave an update on LFP AC matters. CYPRESS CREEK GREENWAY CORRIDOR ("CCGC") There was no update on CCGC matters. CONSTABLE SECURITY PATROL Director Beversdorf reviewed the security report, a copy of which is attached. DISTRICT WEBSITE CONTENT Director Bernardini gave an update on the District's website. REVIEW ACTION LIST The Board reviewed the action list from the previous meeting. no further business to, the meeting was k. ' \\ t
5 ACTION LIST New Items: 1. ABHR will prepare an agenda for the June 24, 2014 special meeting. 2. Eagle will investigate the potential issue with the purchased diesel engine's radiator and report back to the Board. Pending Items: 3. The Board will consider whether to amend the District's Rate Order to adjust water and sewer rates at the September meeting. LIST OF ATTACHMENTS TO MINUTES Page Bookkeeper's report... 2 Tax assessor/collector' s report... 2 Delinquent tax roll... 2 Engineer's report... 2 Operator's report... 3 Termination list... 3 Security report...,
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