MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 81 OF HARRIS COUNTY, TEXAS. January 28, 2016
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1 MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 81 OF HARRIS COUNTY, TEXAS January 28, 2016 The Board of Directors ("Board") of Harris County Municipal Utility District No. 81 of Harris County, Texas (the "District"), met in regular session, open to the public, at 805 Hidden Canyon Dr., Katy, Texas 77450, inside the boundaries of the District, on the 28th day of January, 2016, and the roll was called of the duly constituted members of the Board of Directors, to-wit: John Savage George Goff Patrick Cathcart Donna Brown Bruce Cox President Vice President Secretary Treasurer Assistant Secretary and all of said persons were present, thus constituting a quorum. Also prese:qt were Terri Savage, a member of the public; Michael O'Reilly resident of the District; Ryan Fortner of Wheeler and Associates, Inc.; Charlie Chapline of Municipal District Services, L.L.C. ("MDS"); Shirley McLennan and Diane Doyle of McLennan & Associates, L.P. ("McLennan"); Doug Baker and Kristin O'Neill of Brown & Gay Engineers, Inc._ ("BGE"); Starr Johnson and Doris Vogt, District employees; and ----.: - Katie Carner and Shilpa Shah of Allen Boone Humphries Robinson LLP (" ABHR"). MINUTES The Board considered approving the minutes of the December 17, 2015, regular meeting. After discussion, Director Cathcart moved to approve the minutes of December 17, Director Cox seconded the motion, which carried by unanimous vote. REQUEST FOR FUNDING HARRIS COUNTY PRECINCT 3'S EXTENSION OF THE HIKE AND BIKE TRAIL WEST OF MASON ROAD There was no discussion on this agenda item. TAX ASSESSOR/ COLLECTOR REPORT The Board next received the tax assessor/ collector's report for the month, a copy of which is attached. Mr. Fortner stated that the report reflects that the District's 2015 taxes are 64.83% collected as of the end of December. After discussion, Director ,
2 Cathcart moved to approve the tax assessor/ collector's report and pay the bills. Director Brown seconded the motion, which carried by unanimous vote. BOOKKEEPER'S REPORT The Board next received the bookkeeper's report, a copy of which is attached. Ms. McLennan reviewed each District account and the bills to be paid, as well as a budget to actual comparison, and the debt service requirements. After discussion, Director Cathcart moved to approve the bookkeeper's report and the checks presented for payment. Director Goff seconded the motion; which carried by unanimous vote. ANNUAL DISCLOSURE STATEMENTS. Ms. Carner presented the Board with the annual disclosure statements for the Inve~.tment Officer and bookkeeper. She stated that the disclosure statements must be filed with the Texas Ethics Commission. After review and discussion, Director Cox moved to approve the disclosure statements and to authorize filing of same with the Texas Ethics Commission. Director Cathcart seconded the motion, which passed by unanimous vote. ANNUAL REPORT REGARDING POST-ISSUANCE COMPLIANCE POLICY Ms. Carner reported on the District's compliance activities during the prior calendar yea;r related'----to bond financings. She stated that no corrective action is required at this time. DISCUSS ASSOCIATION OF WATER BOARD DIRECTORS (" AWBD") WINTER CONFERENCE, APPROVE REIMBURSEMENT OF ELIGIBLE EXPENSES, AND AUTHORIZE ATTENDANCE AT THE SUMMER CONFERENCE Discussion ensued regarding the winter A WBD conference in Galveston. After discussion, Director Cathcart moved to approve reimbursement of eligible expenses from the A WBD winter. conference and authorize attendance of the directors and office staff to attend the summer conference. Director Cox seconded the motion, which.. carried by unanimous vote..,- ~- " REVIEW ARBITRAGE REBATE REPORT FOR SERIES 2010 BONDS Ms. Carner reviewed the Arbitrage Rebate Report for the Series 2010 Bonds, a copy of which is attached. Ms. Carner stated that the District does not owe the Internal Revenue Service any payment for excess earnings on the Bonds. 2
3 OPERATOR'S REPORT Mr. Chapline reviewed a written operations report, a copy of which is attached. He reported that the District's water accountability was 94.1 % for the period ending December 15, ' Mr. Chapline reviewed additional repair and maintenance items performed during the month and requested authorization to remove the delinquent accounts listed in the report that are deemed not to be collectible and submit same to a collection agency. Mr. Baker reported that Water Well No. 3 has been experiencing issues and has been taken out of service. Mr. Baker stated that BGE is coordinating review of the motor repair with the operator. Mr. Baker reviewed a proposal from Alsay Water, which includes two options as follows: (1) repair the motor in the amount of $19, and (2) replace the motor in the amount of $46, Mr. Chapline stated that the work will performed under the MDS operating agreement with the District. Mr. Chapline reported there was evidence that prior installation of a water line was filled poorly, causing the buckling of a sidewalk at 1219 Park Wind, which needs repair. Following discussion, Director Cathcart moved to: (1) approve the operator's report.and to submit the accounts discussed to collections, (2) authorize MDS to repair the motor for a cost of $19,959.00, and (3) approve MDS to repair the buckled sidewalk at 1219 Park Wind. Director Brown.seconded the motion, which carried by unanimous vote. CUSTOMER REQUESTS Mr. O'Reilly. complained of unexplained high water usage on his utility bill and stated that a plumber inspected his property and did not find any leaks. Mr. Chapline stated that the meter has been checked several times and it is working properly. Mr. O'Reilly stated he believes that the meter is either not working or it is being misread. Mr. Chapline state that there is no evidence of a faulty meter. Mr. O'Reilly requested an adjustment to his utility bill. Following discussion, the Board concurred to deny the request. TERMINATION OF SERVICE ~' The Board next conducted a hearing regarding termination of water and sewer services. Ms. Johnson informed the Board that all of the residents on the attached termination list were delinquent in payment of utility bills and were given written notification prior to the meeting of the opportunity to appear before the Board of Directors to explain, contest, or correct their utility service bills and show reason why utility services should not be terminated for reasons of nonpayment. She stated that no one had requested an extension for payment of a delinquent account. Director Cathcart 3
4 moved to authorize that because none of the residents on the list were present at the meeting nor had presented any written statement on the matter, the utility service for the customers on the list should be terminated if their utility bills are not paid in accordance with the District's Rate Order. Director Goff "seconded the motion, which passed any unanimously., REPORT ON GARBAGE AND RECYCLING SERVICES Ms. Carner reported that Best Trash will be coordinating with WCA for weekly trash pickup at the Sewage Treatment Plant site, and will provide a proposal for the same next month. ENGINEER'S REPORT Mr. Baker presented the engineer's report, a copy of which is attached. GROUND STORAGE TANK ATWATER PLANT NO. 1 The Board did not discuss this item. APPROVE PAY ESTIMATES. CHANGE ORDER, AND/OR FINAL ACCEPTANCE AS APPROPRIATE FOR WATER PLANT NO. 4 Mr. Baker reported the existing tank and ringwall have been removed and recommended for approval, change order no. 1 in the amount of $17,400 to remove saturated soil and repla,ce"if with select fill. i,, TELEVISING OF CIMARRON SUBDIVISION, SECTIONS 1 AND 2 The Board deferred discussion regarding the rehabilitation of the sanitary sewer system in Cimarron Subdivision, Sections 1 and 2. GISSYSTEM Mr. Baker reported that the project is 65% complete. WATER MODELING STUDY -Ms. O'Neill reported the valve survey portion of this project is complete, and BGE is 'working with MDS to locate all valve boxes that require cleaning. She reported that approximately 8 valves require excavation to locate and determine if repairs are needed. She stated that, although the water model has been built, calibration of this model cannot be complete until all four water plants are back in service. 4
5 PROFILING OF WATER WELL NO. 4 Mr. Baker reported the profiling of Water Well No. 4 and laboratory analysis are complete. Mr. Baker stated the profiling report is expected to be available for February's meeting. LIFT STATION MIXER Mr. Baker reported that NTS Pumps, Motors & Controls ("NTS") is procuring a lift station mixer. CAPITAL IMPROVEMENT PLAN Mr. Baker reviewed an updated Capital Improvement Plan ("CIP"), a copy of which is included in the engineer's report. Following review and discussion, Director Cox moved to: (1) approve the engineer's report and (2) approve change order no. 1 in the amount of $17,400 for saturat~d soil removal at water plant no. 4. Director Brown seconded the motion, which carried unanimously. WEST MEMORIAL MUNICIPAL UTILITY DISTRICT ("WEST MEMORIAL") SEW AGE TREATMENT PLANT MEETING Director Cox repor~ed on the West Memorial Plant meeting. REVIEW OHERATION,--REPAIR, AND MAINTENANCE OF ADMINISTRATIVE OFFICE BUILDING AND DISTRICT WEBSITE Ms. Johnson reported on the maintenance of the administrativ~ building. She reviewed a proposal from City Maintenance to replace the parking lot signs at the administrative office building. Ms. Johnson requested to order chairs for the administrative office building to replace two broken chairs in the board room.. Following review and discussion, Director Goff moved to: (1) approve the proposal from City Maintenance, in the amount of $ and (2) authorize ordering of two chairs to replace the broken chairs in the board room. Director Brown seconded the.. mo!icm, w~ch carried unanimously. ' MEMORIAL PARKWAY COMMUNITY ASSOCIATION POOL Mr. Baker reported that Harris County has contacted and directed the Memorial Parkway Community Association ("MPCA") to remove the existing swimming pool drain line from the storm sewer. After discussion, the Board concurred to defer this agenda item. 5
6 REPORT ON AGREEMENT FOR EFFLUENT REUSE FACILITY AT THE CINCO REGIONAL SEWAGE TREATMENT PLANT (THE "PLANT") Ms. Carner stated that Cinco Municipal Utility District No. 1 reported that they are not yet ready to provide the Board of Directors with comments on the Reclaimed Water Agreement. WEST HARRIS COUNTY REGIONAL WATER AUTHORITY ("AUTHORITY"), INCLUDING ADOPT RESOLUTION NOMINATING A CANDIDATE TO SERVE AS A DIRECTOR ON THE BOARD OF DIRECTORS OF THE AUTHORITY DIRECTOR PRECINCT NO. 3. The Board next considered nominating a candidate to serve on the Board of Directors of the Authority. After discussion, Director Savage moved to adopt the Resolution nominating Eric Hansen to serve on the Board of Directors of the Authority, and direct that the Resolution be filed appropriately and retained in the District's official records. Director Cathcart seconded the motion, which passed by unanimous vote. REVIEW LIST OF LOCAL GOVERNMENT OFFICERS Ms~ Carner reviewed the List of Local Government Officers. After review and discussion, Director Cathcart moved to approve and authorize execution of the List of Local Government Officer.sand dire<;:t that the List be filed appropriately and retained in the District's official records. Director Cox seconded the motion, which passed by unanimous vote. HOUSE BILL 1295 Ms. Carner presented and reviewed a memorandum from ABHR regarding implementation of House Bill 1295 that was passed by the Texas Legislature during the 84th Legislative Session, which enacted Section , Government Code, imposing new requirements for any new, amended, extended or renewed contracts entered into by governmental entities on or after January 1, A copy of the memorandum is attached. Ms. Carner stated that business entities must file a FORM 1295 with the Texas Ethics Commission and disclose certain interested parties, intermediaries, and contr-01hng interests when seeking any contract that is in excess of $1 million or requires an action or vote by the governing body before a governmental entity may enter into a contract. She discussed FORM 1295 promulgated by the Texas Ethics Commission for a business entity to complete, execute and notarize, and provide to the governmental entity at or in advance ~!the meeting at which the related contract may be considered. 6
7 KA TY AREA ECONOMIC DEVELOPMENT DISTRICTS COUNCIL The Board reviewed and discussed the Katy Area Economic Development Districts Council ("KAEDC") membership information, a, copy of which is attached. Following discussion, Director Cathcart moved to designate Director Cox to attend the KAEDC meetings and approve the annual membership fee of $1,000. Director Savage seconded the motion, which passed by unanimous vote DIRECTORS ELECTION Ms. Carner discussed procedures related to the 2016 Directors Election. She reviewed a Resolutio n Designating an Agent of the Secretary of the Board of Directors During the 2016 Directors Election Period. Following review and discussion, Director Goff moved to adopt a Resolution Designating an Agent of the Secretary of the Board During the 2016 Directors Election Period appointing Shilpa Shah as the agent of the Secretary of the Board of Directors to perform the Secretary's duties for the District's directors election, authorize the agent to post the related notice as required, and direct that the Resolution be filed appropriately and retained in the District's official records. Director Cox seconded the motion, which was approved by unanimous vote. Ms. Carner_ reported on requirements to file a Notice of Deadline to File Applications for Place on the Ballot for the 2016 Directors Election. Following discussion, Director Goff moved to authorize the Secretary's agent to post the notice as required. Director Cox seconded the,motion, which was approved by unanimous vote. Ms. Carner discussed exemptions from using electronic voting systems during the 2016 Directors Election. Following discussion, Director Goff moved to authorize the Secretary's agent to publish Notice of Exemption in a newspaper of general circulation. Director Cox seconded the motion, which was approved by unanimous vote. The Board discussed pay for election officials during the 2016 Directors Election. Following discussion, Director Goff moved to set the pay for election officials at $15.00 per hour. Director Cox seconded the motion, which was approved by unanimous vote. Ms. Carnet revi~wed an Order Calling Directors Election. After review and discussion, Director Goff moved to adopt the Order Calling Directors Election. Director -. Co)( s~~ond~d the motion, which passed unanimously. Ms. Carner discussed that the Notice of Election may be required to be posted or published and provided to the County Clerk and Voter Registrar of Harris County. Following review and discussion, Director Goff moved to authorize the Secretary's agent to post or publish-and provide to the County Clerk and Voter Registrar Notice of Election, if required. Director Cox seconded the motion, which passed unanimously. 7
8 LIST OF ATTACHMENTS TO MINUTES Minutes Page Tax assessor/ collector's report... 1 Bookkeeper's report... 2 Arbitrage Rebate Report for the Series 2010 Bonds... 2 Written operations report... 3 Termination list... 3 Engineer's report... 4 Capital Improvement Plan... 5 Katy Area Economic Development District Council ("KAEDC") membership information... 7 i_ 9
9 There being no further business to come before the Board, the Board concurred to adjourn the meeting. (SEAL) Secretary, Board of Directors 8
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