MINUTES OF MEETING OF BOARD OF DIRECTORS September 18, 2018
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1 MINUTES OF MEETING OF BOARD OF DIRECTORS September 18, 2018 THE STATE OF TEXAS COUNTY OF HARRIS HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 55 The Board of Directors (the Board ) of Harris County Municipal Utility District No. 55 (the District ) met in regular session, open to the public, at 2300 Pilgrims Point, Webster, Texas, on Tuesday, September 18, 2018, whereupon the roll was called of the members of the Board, to-wit: Robert L. Squires, President Sam Longoria, Vice President Gabriel Mendez, Secretary Richard Klenk, Treasurer Malcolm Swinney, Assistant Secretary All members of the Board were present except. Also attending all or parts of the meeting were Mr. Nelson Gaez of Brown & Gay Engineers, Inc. ( BGE ), engineers for the District; Mr. Chris Wilson of Si Environmental ( Si ), operators for the District; Ms. Vickey Sullivan of Equi-Tax, Inc., tax assessor and collector for the District; Ms. Kandy Pfeffer of ETI Accounting Services ( ETI ), bookkeeper for the District; Mr. R.E. Smith of Ellis Business Park; Mr. Tom Dillard of Champions Hydro-Lawn, Inc. ( Champions ); and Mr. Reginald Wilson and Ms. Erika Smiley of Norton Rose Fulbright US LLP ( NRF ), attorneys for the District. The meeting was called to order in accordance with notice posted pursuant to law, copies of the Certificates of Posting of which are attached hereto as Exhibit A, and the following business was transacted: 1. Public Comments. There were no public comments. 2. Minutes. The Board considered the regular minutes of August 21, 2018, copies of which was previously distributed to the Board. Upon motion by Director Mendez, seconded by Director Swinney, after full discussion and the question being put to the Board, the Board voted unanimously to approve regular minutes of August 21, 2018, as revised. 3. Discuss and reconsider action regarding the cellular equipment proposal. President Squires reviewed specifications and requests provided by Mr. Beer. Discussion ensued. Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to decline moving forward with the cellular equipment request. 4. Forest Bend Fire Department Report. Mr. Hoff reviewed runs for the month of August and the department s budget
2 5. Clear Lake Emergency Medical Corps Report ( CLEMC ). President Squires reported that the CLEMC Board has approved the Corps budget. 6. Tax Assessor and Collector s Report. Ms. Sullivan presented to and reviewed with the Board the Tax Assessor and Collector s Report for August 2018, a copy of which is attached hereto as Exhibit B. Ms. Sullivan reported that as of August 31, 2018, the District has collected 98.9% of taxes for Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector s Report, to approve the execution of the checks presented for approval, and the requests for penalty and interest waivers. 7. Adopt Order Designating Officer to Calculate & Publish Tax Rates (Texas Water Code ). The Board reviewed the recommendation for the 2018 tax rate. A tax rate of $0.40 per $100 assessed valuation to provide the District with sufficient funds. Mr. Wilson presented to and reviewed with the Board the Order Designating Officer to Calculate and Publish Tax Rates and Taking Other Actions in Connection with the Levy of a Tax for 2018, a copy of which is attached hereto as Exhibit C. Mr. Wilson noted that the Order authorizes the tax assessor s office to publish a notice of the proposed tax rate and a public hearing with respect to the tax rate. Upon motion by Director Mendez, seconded by Director Swinney, after full discussion and the question being put to the Board, the Board voted unanimously to propose a total tax rate of $0.40 per $100 assessed valuation and to approve the Order Designating Officer to Calculate and Publish Tax Rates and Taking Other Actions in Connection with the Levy of a Tax for 2018 and to authorize the District s tax assessor collector to publish the proposed tax rate. 8. Bookkeeper s Report and Investment Report. Ms. Pfeffer presented to and reviewed with the Board the Bookkeeper s Report for August 31, 2018, the 2018 Energy Usage Report, the Budget for fiscal year ending December 31, 2018, and the Investment Report, copies of which are attached hereto as Exhibit D. Upon motion by Director Mendez, seconded by Director Swinney, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Bookkeeper s Report and the Investment Report, and to approve execution of the checks presented. 9. Operations Report, Including Review and Approval of Maintenance Items and Delinquent Report. Mr. Wilson presented to and reviewed with the Board the Operations Report and Maintenance Report for the month of August 2018, a copy of which is attached hereto as Exhibit E. Mr. Wilson reported on August repairs and maintenance for the water system, sanitary sewers, lift stations, and the water plant. Mr. Wilson reported on Lighthouse View, stating that the area was excavated down to the main and an obsolete hydrant was replaced. He stated the area was backfield and the
3 street was washed down. Mr. Wilson reported that debris was hauled off and concrete and landscaping were replaced. Mr. Wilson reported on 4802 Pilgrim Harbor, stating that a section of sidewalk was removed, the area was excavated down to the main, and a leaking tapline was replaced. He stated the area was cleaned and backfield. Mr. Wilson reported on Heritage Cove, stating that the area was excavated down to the failed main and repaired. He stated the area was backfield and the street was washed down. Mr. Wilson reported that debris was hauled off and concrete and landscaping were replaced. Mr. Wilson reported on 2458 Heritage Bend, stating that the area was excavated down to the failed main and repaired. He stated the area was backfield and cleaned. Mr. Wilson reported that debris was hauled off. Mr. Wilson reported on Arborlea, stating that sections of sidewalk were removed, the area was excavated down to the main, and a leaking long tap was replaced. HE stated that debris was hauled off and concrete and landscaping was replaced. Mr. Wilson reported that a subcontractor inspected all hydrants within the district and replaced any missing reflectors. Mr. Wilson reported that a hydrant near Beamer Rd and El Dorado was hit by car and a collision kit was ordered. He state that the hydrant was reinstalled and put back online. Mr. Wilson reported on Bending Creek, stating that a hydrant was disassembled and due to a leak a new ring was installed. Mr. Wilson reported concrete was replaced at Keowee after waterline repair. Mr. Wilson reported on Capistrano Falls, stating that the area was excavated down to the main and the broken line was repaired. He stated the area was backfield, cleaned and landscaping was replaced. Mr. Wilson reported on 4927 Bayboro Park, stating that the manhole was broken out and lowered to grade. He stated that debris was hauled off. Mr. Wilson reported on 4927 Bayboro Park, stating that concrete was replaced after line repair near Fincher and Quillback. Mr. Wilson reported that a depression underneath sanitary line that had washed out due to storm line failure was filled. Mr. Wilson reported that the Diesel technician reprogramed clock for auto exercise at the St Lawrence Lift Station
4 Mr. Wilson reported on the Planters Way Water Plant. He stated that O-rings and the leaking inlet nut were replaced. Mr. Wilson reported that the failed safety shower valve was replaced. Mr. Wilson reported on the Fife Lane Water Plant. He stated that booster pump no. 2 was pulled for repair. Mr. Wilson reported that a surface water line was isolated and a blind flange was installed to stop pinhole leak of fill line. He stated that flow was rerouted to bottom fill line. Mr. Wilson reported that air compressor controls were checked and simulated high live. He stated that set point adjustments were made and the compressor was placed back online. Mr. Wilson reported that preventative maintenance was performed on the entire disinfection system. He stated that drip oil was purchased for use for the wells and 15 valve risers were excavated and reset. Upon Motion by Director Swinney, seconded by Director Longoria after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operations Report and execute the delinquent list. 10. Engineer s Report. Mr. Gaez presented to and reviewed with the Board the Engineer s Report, a copy of which is attached hereto as Exhibit F, and which follows in substantially the form it was presented: a. Commercial Reviews 1. Beamer Villas: Mr. Gaez reported that the developer is working on updating the signatures for the storm pump station and sanitary sewer lift station. He stated that the subdivision plat has been recorded. 2. Twenty Second Annexation (Ellis Business Park/R.E. Smith Tract): Mr. Gaez reported construction plans were approved. He stated that the access easement through the Ellis Business Park was properly recorded. He stated that the memorandum of understanding for the inspection of the backflow preventer inside the proposed TCH Drillers Building was reviewed and comments were issued by NRF, a copy of which is attached hereto as Exhibit G. Upon Motion by Director Longoria, seconded by Director Swinney after full discussion and the question being put to the Board, the Board voted unanimously to approve the memorandum of understanding for the inspection of the backflow preventer inside the proposed TCH Drillers Building. Discussion ensued regarding a one-time deviation from the District s rate order to permit an Ellis Business Park s contractor to install the tap. Upon Motion by President Squires, seconded by Director Longoria after full discussion and the question being put to the Board, the motion to allow a one-time deviation from the District s rate order permitting an Ellis Business Park s
5 contractor to install the tap failed with two in favor (Directors Squires and Longoria) and three opposed (Directors Swinney, Mendez and Klenk.) Rex Road (Lockridge Packaging): Mr. Gaez reported that there are no new updates. 4. Heritage Park Crossing (2110 El Dorado Blvd): Mr. Gaez reported that plans were reviewed, and a letter of no objection was issued on September 14, He stated that the developer has proposed paving over a portion of an existing l6 foot utility easement. Mr. Gaez reported that they have submitted metes and bounds to enter into an encroachment agreement with the District. Mr. Wilson stated that the encroachment is still under review. b. Capacity Requests 1. El Dorado Tracks: Mr. Gaez reported that Prosperity Plaza has submitted a $5,000 deposit for the preparation of a feasibility study to 173 connections for three (3) tracts located at the corner of El Dorado Blvd and Beacon's View. BGE is working on the feasibility study. c. City of Houston WWTP Capacity: Mr. Gaez reported the purchase agreement package was approved by the COH Council on December 6, 2017, and has been executed by all participants. He stated that as of September l4, 2018, the TCEQ has finalized the technical review of the application and has routed the document for final review. d. New Clarifier: Mr. Gaez reported that the deficiency punchlist process and final completion coordination is ongoing. e. BGE Authorized Projects: 1. Water Plant No. 1 GST Replacement: Mr. Gaez stated that the District received 9 bids. He stated that Nunn Constructors submitted the low bid in the amount of $564, Mr. Gaez reviewed the recommendation of award and bid tabulation with the Board. Upon Motion by Director Longoria, seconded by Director Swinney after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineers report and the Nunn Constructors bid for Water Plant No. 1 GST Replacement in the amount of $564, f. City of Houston/County Projects 1. City of Houston-east Transmission Line: Mr. Gaez reported that are no new updates. g. Additional Items
6 1. Failure of Corrugated Metal Pipe Outfall (North of Friendswood Link Road): Mr. Gaez reported that due to a backlog of projects, the precinct does not have an exact repair date, but they are confident that the repair will be made prior to the end of the year. 11. Park and Recreational Facility Report. Mr. Dillard presented to and reviewed with the Board a proposal for turtle reduction services. He stated that the proposal has a cost of $4,000. Discussion ensued. Upon Motion by Director Klenk, seconded by Director Mendez after full discussion and the question being put to the Board, the motion to approve the proposal for turtle reduction services failed with two in favor (Directors Klenk and Mendez) and three opposed (Directors Swinney, Squires and Longoria.) 12. Sewage Treatment Plant Operations Report. President Squires stated the contract for monitoring has expired at Blackhawk and bids will be solicited. He noted that the plant will consider expansion closer to President Squires stated that Clarifier no. 2 is out of service. He stated that the CIP list was reviewed with the Board and the District s share is less than $300, Discuss Southeast Transmission Line. President Squires stated there have been a number of meetings to work on the contact. He stated that contracts have been provide and are being reviewed. 14. Southeast Water Plant Report. President Squires reviewed the true-ups and CIP projections with the Board. 15. Discuss Maintenance of District Facilities. Discussion ensued regarding roof leaks. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, THE MEETING WAS ADJOURNED. * * *
7 The above and foregoing minutes were passed and approved by the Board of Directors on. President, Board of Directors ATTEST: Secretary, Board of Directors
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