MINUTES OF BOARD OF DIRECTORS MEETING APRIL 15, 2014

Transcription

1 MINUTES OF BOARD OF DIRECTORS MEETING APRIL 15, 2014 THE STATE OF TEXAS COUNTY OF HARRIS HARRIS,. COUNTY MUNICIPAL UTILITY DISTRICT NO. 109 The Board of Directors (the "Board") of Harris County Municipal Utility District No. 109 (the "District") met in regular session, open to the public, at the Atascocita Volunteer Fire Station Training Complex, Timber Forest, Humble, Texas, 77346, at 6:00p.m. on April 15, 2014, whereupon the roll was called of the members of the Board, to wit: Owen Parker, President Glenn R. Bogs, Vice President Chris Green, Secretary Robin Sulpizio, Assistant Secretary Cheryl Moore, Treasurer/Investment Officer All members of the Board were present except Director Bogs. Also attending all or parts of the meeting were Mr. Clinton Gehrke and Mr. David Olivares of Water Waste Water Management Services, Inc. ("WWW"), operator for the District; Mr. Matt Froehlich and Mr. Nathan White of Brown & Gay Engineers ("Brown & Gay"), engineer for the District; Mr. Tim Spencer of Ad Valorem Appraisals, tax assessor and collector for the District; Mr. Don Rutt of Donald Rutt, C.P.A., bookkeeper for the District; Mr. Ryan Nesmith of RBC Capital Markets, financial advisor to the District; Mr. Robert Hulbert of KB Home Lone Star, Inc. ("KB Homes"); and Ms. Emerald Lagow, paralegal, of Fulbright & Jaworski LLP, attorney for the District. The President called the meeting to order in accordance with notice posted pursuant to law, copies of the Certificates of Posting are attached hereto as Exhibit "A," and the following business was transacted: 1. Minutes. The Board considered the proposed minutes of the meetings of March 18, 2014 and April 1, 2014, copies of which were previously distributed to the Board. Upon motion by Director Moore, seconded by Director Sulpizio, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the meetings of March 18, 2014 and April1, 2014, as presented. 2. Receive comments from the public. There were no members of the public present at this time. 3. Review Tax Collector's Report and authorize payment of certain bills. The President noted that Mr. Spencer is delayed due to traffic. This item was postponed. 4. Review Bookkeeper's Report. Mr. Rutt presented to and reviewed with the Board the Bookkeeper's Report for the month of March 2014, the investment report, and a summary of the Strategic Partnership Agreement revenues, copies of which are attached hereto as Exhibit "B." Discussion ensued regarding the two per diem payments to Director Bogs this month. Mr. Rutt stated he will report back with details regarding the payments in question.

2 Upon motion by Director Moore, seconded by Director Sulpizio, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper's Report and to authorize the payment of checks to the persons and for the purposes listed. 5. Adopt budget for fiscal year ending May 31, The President noted that this item will be ready for presentation and adoption at the next Board meeting. 6. Appoint auditor to perform audit for fiscal year ending May 31, The President reviewed with the Board the engagement letter from BKD to prepare the audit for fiscal year ending May 31, 2014, a copy of which is attached hereto as Exhibit "C." In response to a question from the President, Mr. Nesmith stated that he had no objections to the appointment of BKD to prepare the audit. The President noted that there were no changes from the previous year's proposal. Upon motion by Director Green, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to engage BKD to prepare the audit for fiscal year ending May 31, Approve and authorize execution of engagement letter with Arbitrage Compliance Specialists to enroll $3,7 45,000 Unlimited Tax Refunding Bonds, Series 2013 in the Bond Management Compliance Program. The President reviewed with the Board the engagement letter from Arbitrage Compliance Specialists to enroll the District's $3,745,000 Unlimited Tax Refunding Bonds, Series 2013 in the Bond Management Compliance Program, a copy of which is attached hereto as Exhibit "D." Mr. Nesmith noted that the District is required to engage an arbitrage compliance specialist every five years in accordance with tax law, and recommended that the Board authorize such engagement. Upon motion by Director Green, seconded by Director Sulpizio, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize execution of the engagement letter with Arbitrage Compliance Specialists to enroll the District's $3,745,000 Unlimited Tax Refunding Bonds, Series 2013 in the Bond Management Compliance Program. 8. Engineer's Report. Mr. Froehlich introduced Mr. Nathan White of Brown & Gay, and noted he will be assisting him with District engineering matters. Mr. Froehlich presented to and reviewed with the Board the Engineer's Report, a copy of which is attached hereto as Exhibit "E." Mr. Froehlich reported that BlastCo, Inc. has finished the blasting and coating, and installation of the new roof vent and hatch for the Groundwater Storage Tank ("GST") at Water Plant No. 1 ("WP1 "), and reviewed with the Board the before and after pictures of the tank's interior, copies of which are attached to the Engineer's Report. Mr. Froehlich noted that the tank will be sealed, refilled, chlorinated, tested and brought back online over the next week. Mr. Froehlich reported that Brown & Gay is currently processing BlastCo's Pay Application No. 1 and Final in the amount of $106,500. Mr. Froehlich reported that BlastCo repaired a total of 97 holes, but only invoiced the District for 25 in accordance with their original quote of $100/hole up to 25 holes. Mr. Froehlich noted there was no update on the Deanne Annexation. Mr. Froehlich noted there was no update on the Pointdexter Office Building at 6112 Upper Lake Drive. Mr. Froehlich reported that Atascocita Car Care contacted Brown & Gay regarding relocation of their meter to FM 1960 in order to accommodate an expansion of the 2

3 Car Care facility at 5725 FM Mr. Froehlich noted the meter is currently at the back of the property, and is serviced by a private line running between two lots to Green Timbers. Mr. Froehlich stated that Brown & Gay is currently reviewing the plans for the expansion, and that he will include the review letter in the report next month. Mr. Froehlich noted that the commercial reserves are part of the original plat. Director Green asked that residents be notified prior to the start of construction, in order to avoid complaints. Mr. Froehlich requested that the Board ratify the award of contracts for clearing and grubbing, and utility projects for Rivergrove, Sections 1 and 2 to Triple B Services, LLP in the amount of $97,423.50, and Crostex Construction, Inc. in the amounts of $229, and $152,464.00, respectively, and authorize Brown & Gay to advertise for bids for clearing and grubbing and utilities for Rivergrove, Sections 3 and 4. Mr. Froehlich reported that Brown & Gay advertised and received competitive bids for the clearing and grubbing of Rivergrove Sections 3 & 4, and for utilities to serve Rivergrove Section 3, and reviewed with the Board the bid tabulations, copies of which are attached to the Engineer's Report. Mr. Froehlich reviewed with the Board the recommendations from Brown & Gay for award of the contract for clearing and grubbing of Rivergrove Sections 3 & 4 to Double Oak Construction, Inc, in the amounts of $85, and $108,417.40, respectively, and for award of the contract for utilities to serve Rivergrove Section 3 to JAHO, Inc., in the amount of $342,230.29, copies of which are attached to the Engineer's Report. Mr. Froehlich reported that Brown & Gay issued a commitment letter to ALJ Lindsey, LLC for capacity to serve the proposed Starbucks at the northwest corner of FM 1960 and Timber Forest Drive. Mr. Froehlich reported that he spoke with the contractor regarding the potential of the drive-through to impact traffic on Timber Forest Drive, and noted that the site plan reflects that up to 11 cars can be parked before reaching Timber Forest. The Board noted that traffic flow in the area is already compromised, and expressed continued concern regarding the drive-through. Mr. Froehlich stated he would contact ALJ Lindsey regarding the Board's sentiments, and report back with information regarding the proposed drive through and development schedule. month. Mr. Froehlich noted there were no new capacity commitment requests this Mr. Froehlich reported that Brown & Gay reviewed the District's Drought Contingency Plan ("DCP") and does not recommend any changes. Mr. Froehlich requested that the Board adopt the Resolution Reviewing Drought Contingency Plan, a copy of which is attached hereto as Exhibit "F." Mr. Froehlich noted that the next State-mandated DCP review is scheduled for Mr. Froehlich noted there was no update on the annexation of 18-acre tract (at corner of FM 1960 East and Woodland Hills). Mr. Froehlich reported that the check from Guniganti for outstanding engineering invoices has cleared, and that Brown & Gay is working with Dr. Guniganti and Mr. Hayes, project manager, to update and obtain approval for the plans and plat for Kings Lake Estates, Section 8. Mr. Froehlich noted that plat requirements now include provision of a drainage plan or layout/sheet flow page. Mr. Froehlich reported that Dr. Guniganti is planning smaller lots for the future Kings Lake Estates, Section 9. 3

4 Mr. Froehlich noted there was no update on the Kanan Partnership. Upon motion by Director Moore, seconded by Director Sulpizio, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer's Report; to ratify the award of the contract for cleaning and grubbing of Rivergrove Sections 1 & 2, and the contracts for construction of utilities to serve Rivergrove Sections 1 & 2 to Triple B Services, LLP ($97,423.50) and Crostex Construction, Inc. (Section 1 - $229,759.01; Section 2 - $152,464.00), respectively; to award of the contracts for cleaning and grubbing of Rivergrove Sections 3 & 4, and the contract for utilities to serve Rivergrove Section 3, to Double Oak Construction, Inc. (Section 3- $85,694.50, Section 4- $108,417.40) and JAHO, Inc. ($342,230.29), respectively; and to adopt the Resolution Reviewing Drought Contingency Plan. 9. Review Tax Collector's Report and authorize payment of certain bills. Mr. Spencer presented to and reviewed with the Board the Tax Assessor and Collector's Report for the month of March, 2014, a copy of which is attached hereto as Exhibit "G." Mr. Spencer noted that 94.36% of the District's 2013 taxes had been collected as of March 31, Upon motion by Director Green, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector's Report, and to authorize payment of check numbers 1520 and 1521 from the Tax Account to the persons, in the amounts, and for the purposes listed therein Ratify award of contracts for clearing and grubbing and utilities for Rivergrove, Sections 1 and 2 and advertising for bids for clearing and grubbing and utilities for Rivergrove, Sections 3 and 4. This item was addressed under the Engineer's Report. 11. Authorize award of contracts for clearing and grubbing and utilities for Rivergrove, Sections 3 and 4. This item was addressed under the Engineer's Report. 12. Authorize capacity commitments. This item was addressed under the Engineer's Report. 13. Adopt Resolution Reviewing Drought Contingency Plan. This item was addressed under the Engineer's Report. 14. Discuss and take any action in connection with annexation matters (18- Acre Tract). There was no update on this item. 15. Developer's Report. This item was addressed under the Engineer's Report. Mr. Hulbert noted that he is excited to move forward with design of Rivergrove, Sections 3 and 4, and preparations for future Section Discuss status of preparation of GIS System by GIS Solutions (Wilson McCoy). There was no report on this item. 17. Review and authorize execution of Reimbursement Agreement with KL-5, LLC for development of Kings Lake Estates, Section 8. The Board reviewed the draft Reimbursement Agreement with KL-5, LLC for development of Kings Lake Estates, Section 8, a copy of which was previously distributed to the Board. The Board discussed, in light of the developer's previous performance, revising the percentage completion threshold for 4

5 reimbursement. Discussion ensued regarding responsibility for maintenance of the storm sewer for such development, and Mr. Froehlich noted that the county will not maintain a storm sewer in a gated community with a private right of way. It was the consensus of the Board that the maintenance of the storm sewer is not a District issue. The Board postponed action on this item, pending further review. 18. Review Operations Report and authorize repairs. Mr. Gherke introduced Mr. David Olivares of ST, server and operator for No. 109, and presented to and reviewed with the Board the Operations Report for the month of March 2014, the lift station flow report, and a list of delinquent accounts, copies of which are attached hereto as Exhibit "H." Mr. Gherke reported that 94 /o of the water pumped was billed for the period ending March 31, Mr. Gherke reported that the fence at Lift Station 1 needs to be repaired due to age and graffiti, and estimated it would cost $3,500 to repair and paint the fence. Mr. Gherke reviewed with the Board the quote from JP Morin in the amount of $4,426 for removal and replacement of a leaning Electrical Service Pole at Lift Station No. 3, a copy of which is attached to the Operations Report. Mr. Gherke noted that it will cost an additional $1,238 to replace the service drop wiring, if needed. Mr. Gherke reviewed with the Board the letter from a resident at Fay Oaks Court, requesting a payment arrangement for a leak resulting in two high water bills, a copy of which is attached to the Operations Report. Mr. Gherke stated that resident offered to pay an additional $1 00/month while remaining current, and noted that the resident's current bill is $ The Board directed Mr. Gherke to work with the resident. Mr. Gherke reviewed with the Board a letter from a resident requesting an extension to pay her bill on April 22, 2014, due to unforeseen medical expenses, a copy of which is attached to the Operations Report. The Board directed Mr. Gherke to extend the date for payment of the bill until April 22, Mr. Gehrke presented to and reviewed the identity theft prevention report, a copy of which is attached to the Operations Report. Mr. Gehrke reported that WWW is awaiting receipt of the TCEQ templates for preparation of the Consumer Confidence Report. Mr. Gehrke reminded the Board that at the last meeting, the resident at 5518 Green Timbers had requested that the District replace the first two sections of their driveway that were damaged after settling around a storm sewer bored beneath the driveway. Mr. Gehrke reviewed with the Board the quote for the repair in the amount of $6400 for removal of two panels and filling and stabilization beneath, and replacement of the walkway, plus additional fees for hauling and cleaning in the amount of $600. Discussion ensued. The President directed Mr. Gehrke to inform the customer that the matter is currently under advisement, and that the Board will take action in response to his request after clearly determining whether the issue is within the District's purview. Mr. Froehlich stated that he will check whether any pictures were taken before replacement of the driveway, and when the driveway repair took place. Mr. Spencer stated that he will check when the property was purchased. Mr. Gehrke reported that the Holiday Inn Express did not pass the Customer Service Inspection, and has not signed a Utility Service Agreement. 5

6 Mr. Gehrke reported that the Atascocita Car Care has submitted the water tap drawings for the expansion of the facility. Mr. Gehrke reported that the water taps at Solar Shade and Water Werks Car Wash have been relocated. Mr. Gehrke noted that Ms. Van Buskirk is disputing another bill, and requested the Board's permission to look into installing a new meter in order to assure that no further issues arise in connection with the Car Wash. Mr. noted that the normal cut off day is the Wednesday before Easter, and requested the Board's approval to postpone termination of service until the following Monday in light of the holidays. Upon motion by Director Green, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operations Report and to authorize termination of service to those accounts on the delinquent list, for termination on Monday, April 21, 2014; and to authorize the operator to proceed with installation of a new meter at Water Werks Car Wash. 19. Review Insurance Proposal from W.I.N./Highpoint and take necessary action in connection with renewal of insurance (current insurance expires May 22, The President reviewed with the Board the insurance proposal received from W.I.N./Highpoint, a copy of which is attached hereto as Exhibit "I." Upon motion by Director Green, seconded by Director Sulpizio, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize the insurance proposal from W.I.N./Highpoint. 20. Other matters. There were no other matters at this time. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned. * * * 6

7 The above and foregoing minutes were passed and ap roved by the Board of Directors on May 20,