MINUTES OF MEETING OF BOARD OF DIRECTORS. March 19,2013

Transcription

1 MINUTES OF MEETING OF BOARD OF DIRECTORS March 19,2013 THE STATE OF TEXAS COUNTY OF HARRIS BRIDGESTONE MUNICIPAL UTILITY DISTRICT The Board of Directors (the "Board") of Bridgestone Municipal Utility District (the "District") met in regular session, open to the public, at the Jerry Thomas Center, 4403 Lost Lake Lane, Spring, Texas, its regular meeting place within the boundaries of the District, on Tuesday, March 19, 2013, at 6:00 p.m.; Whereupon, the roll was called of the members of the Board, to-wit: Jim Marks Adrian E. Steffes Skip Warren Ronald W. Schkade Vacancy President Vice President Secretary Assistant Secretary Director All members of the Board were present, thus constituting a quorum. Also attending the meeting were: Ms. Mary Jarmon of Myrtle Cruz, Inc., bookkeeper for the District; Ms. Pat Hall of Equi-Tax, Inc., tax assessor/collector for the District; Mr. Joshua Lee, P.E. of Jones & Carter, Inc. ("Jones & Carter"), engineers for the District; Messrs. David Rowe and Danny Staab of Water District Management Company, Inc. ("WDM"), operators for the District; Sergeant David Mayes of the Harris County Precinct 4 Constable's Office; Mr. Robert Daigle, land development project manager, for D.R. Horton Homes, homebuilder and developer in The Sanctuary Veritas subdivision within the District; Mr. Bob Hudson of Texas Investment & Development Company, Inc., developer of the Bridgestone Lakes, Senterra Lakes, LP and Villages of Senterra Lakes subdivisions within the District; Mr. Sandy Collins of Brighton Homes/K. Hovnanian, developer of Gosling Pines subdivision; Mr. Joe Palumbo of Third Generation Development, L.P., developer of a acre commercial tract within the boundaries of the District; Ms. Sharon Kurzy, a resident of the District; and Mr. Jonathan D. Polley, attorney, and Ms. Brooke T. Dold, paralegal, of Johnson Radcliffe Petrov & Bobbitt PLLC ("Johnson Radcliffe"), attorneys for the District. A copy of the sign-in sheet for those in attendance at the meeting is attached hereto. WHEREUPON, the meeting was called to order by Director Steffes and evidence was presented that public notice of the meeting had been given in compliance with the law. The posted notices of the meeting are attached hereto

2 PUBLIC COMMENT Director Steffes first recognized Ms. Kurzy who addressed the Board. Ms. Kurzy stated that she had resided in the District for 30 years and would like to be considered for appointment to the vacant seat on the Board. Ms. Kurzy stated that she served on the Bridgestone Homeowners Association for 12 years and as President of same for six (6) years. Ms. Kurzy further stated that she has an accounting degree and is a certified professional accountant. Ms. Kurzy added that some of the Board members know her son, Mike, who is a civil engineer with AEI Engineering. Director Steffes thanked Ms. Kurzy for her interest in serving on the Board. CONSENT AGENDA Director Steffes then reviewed with the Board the items reflected on the Consent Agenda. Director Steffes explained that this portion of the agenda deals with routine matters of the Board, and that no separate discussion of such items will occur unless a Board member or a member of the public requests that an item be moved to the regular portion of the agenda. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the following Consent Agenda items: 1) approve the minutes of the regular meeting of the February 19,2013, as written; and 2) approve Pay Estimate No.5 in the amount of $393, from Sprint Sand & Clay, L.P., in connection with the Lower Bonds Gully Modifications project. REGULAR AGENDA TAX ASSESSOR/COLLECTOR'S REPORT Director Marks then called on Ms. Hall, who presented the Tax Assessor/Collector's Report for the month of February, a copy of which is attached hereto. Ms. Hall reported that 96.7% of the District's 2012 taxes had been collected. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor/Collector's Report and to authorize payment of the checks reflected therein. DELINQUENT TAX ATTORNEY'S REPORT Ms. Hall then reviewed the Delinquent Tax Attorney's Report, a copy of which is attached hereto. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted to approve the Delinquent Tax Attorney's Report. BOOKKEEPER'S REPORT Ms. Jarmon next reviewed the Bookkeeper's Report with the Board, including the revenues and expenses of the District, the budget comparison, the investment report and the checks being presented for payment, a copy of which is attached hereto. Ms. Jarmon noted that monthly invoices had been sent to the vanous developers in the District for construction

3 management services and to those developers with outstanding balances for annexations, feasibility studies, easement acquisitions anellor other services provided by the District. Ms. Jarmon further reported that a check in the amount of $92, for December 2012 had been received from the City of Houston (the "City") for the District's share of sales tax revenue in connection with the District's Strategic Partnership Agreement with the City. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper's Report, the investment report, and the payment of the checks reflected. DIRECTOR'S INSPECTION REPORT Director Marks then reported that he had inspected the District's facilities with Mr. Staab on March 14, 2013, and stated that he left his written report at home. Director Marks reported that warning lights on the elevated storage tank need adjustment. Director Marks noted that all of the District's lift stations, with the exception of maintenance being performed at the lift station at the Wastewater Treatment Plant appeared to be in good shape. Director Marks then reported that vandals had broken the fence at the Spring Terrace detention pond fence and spray painted graffiti. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Director's Inspection Report. Sergeant Mayes then entered the meeting at 6:30 p.m. HARRIS COUNTY PRECINCT 4 CONSTABLE'S REPORT Sergeant Mayes then presented the monthly Constable's Report, a copy of which is attached hereto. Sergeant Mayes reported that there had been a home break-in on March 18, 2013 and two (2) of the three (3) robbers had been apprehended following a car and foot chase. Sergeant Mayes stated that the stolen goods had been recovered. A brief discussion ensued about getting word of security lock-downs in the District to the private schools and churches within the District. Sergeant Mayes stated that his office is reviewing procedures to ensure proper notice is provided to all such facilities. Sergeant Mayes then exited the meeting at 6:40 p.m. OPERATOR'S REPORT Mr. Staab then briefly reviewed the Operator's Report for the month of February, a copy of which is attached hereto. Mr. Staab reported that the District's water accountability for the month was 85.9%. Mr. Staab reported that the District currently has 5,841 active connections. Mr. Staab further reported that eight (8) aged receivables totaling $ had been sent to the collection agency and $5.43 had been written off. Mr. Staab stated that water usage had significantly increased with the onset of spring and residents' increasing lawn care activities. Mr. Staab further stated that he continues to have trouble with the booster pump at the elevated storage tank because of the lower pressure on the

4 North Harris County Regional Water Authority's line due to increased demand. Mr. Staab next reported that the "bandit" signs used for implementation of mandatory water conservation measures tend to disappear from the District. Mr. Staab recommended that the Board purchase 20 permanent aluminum signs that can be mounted into the ground and flipped open when water conservation measures are in effect. Mr. Staab reported that the permanent signs would cost $125 per sign for a total of $2,500. Upon motion by Director Schkade, seconded by Director Steffes, after full discussion and the question being put to the Board, the Board voted unanimously to authorize the purchase of 20 permanent aluminum water conservation signs. Mr. Staab stated that WDM already has mounting posts for the signs. Mr. Staab then recommended that when the signs are installed, the Board should once again implement mandatory water conservation in the District. Mr. Staab next reminded the Board that bids had been obtained at the end of 2012 to either re-skin or repaint the control building at Water Plant No.2 and asked if the Board had made a decision about how to proceed. Director Marks stated that he would rather repaint the building. Mr. Staab stated that Blastco Texas, Inc. had submitted a bid of $8,500 to paint the control building. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to proceed with painting the control building at Water Plant No.2. Mr. Staab next reported that WDM received a call on March 8, 2013 from Mr. Eli Deacon, a resident living at 4710 Owens Creek Lane. Mr. Staab stated that Mr. Deacon was upset about not receiving a response to his request to have recycling removed from his customer bill. Mr. Polley noted that he sent a response letter to Mr. Deacon on February 1, 2013 and provided an electronic copy to WDM after his most recent phone call. Mr. Staab further noted that Mr. Deacon stated that he will sue the District. Mr. Staab then reported that Mr. John Lake's service is about to be terminated due to his refusal to pay his monthly recycling fees. Mr. Staab next reported that Mr. James Palmer, a customer, called WDM to complain about the fees charged by the credit card companies and ACH to make online payments. Mr. Staab noted that customers can mail or deliver their monthly payments to WDM to avoid such fees. Mr. Polley added that the District could choose to pay this cost rather than passing it through to the customers choosing to make payments electronically, thereby spreading the cost of accepting electronic payments across all of the District's customers. The Board concurred that the District should continue to pass through these charges to customers SUbmitting electronic payments. Mr. Rowe then reported that WDM had prepared and submitted the 2012 Consumer Confidence Reports letters to the neighboring districts with which the District shares emergency water interconnects with the District. Mr. Rowe reported that he had nearly completed the renewal application for the District's participation in the Water Smart Program, sponsored by the Association of Water Board Directors - Texas (the "A WBD") and asked for the Board's authorization to circulate the completed application for the Board's approval and execution. Upon motion by Director Warren,

5 seconded by Director Steffes, after full discussion and the question being put to the Board, the Board voted unanimously to approve the application, authorize execution of the application, and authorize WDM to submit the application to the AWBD on behalf of the District. A copy of the application will be filed in the District's records. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operator's Report, to authorize termination of service to the delinquent accounts in accordance with the provisions of the District's Rate Order, to approve the District's Water Smart application to the A WBD, and to authorize the execution and submittal of same on behalf of the District. CONSIDER AMENDING DISTRICT'S RESIDENTIAL SECURITY DEPOSITS AND ADOPT AMENDED RATE ORDER RELATED TO SAME Mr. Rowe reported that the District's current single-family residential security deposit is $50.00 for an owner and $75.00 for a renter and recommended that the Board increase the security deposit to $ for an owner and $ for a renter. The Board next discussed whether an additional security deposit should be paid when a customer re-establishes an account that has been terminated for non-payment. The Board concurred that an additional security deposit of $50.00 and a termination charge of $50.00 shall be paid by a customer who reestablishes an account that has been terminated/disconnected for non-payment. The Board next reviewed Section 2.05 of the Rate Order regarding Builder Deposits. Mr. Staab recommended that the section be simplified to require a $2,000 builder's deposit, rather than charging a deposit for each home for which the builder seeks service from the District. Upon motion by Director Schkade, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to adopt an Amended Rate Order containing the above-described revisions to Sections 2.05, 4.01 A, 4.02 Band 4.02 C. A copy of the Amended Rate Order is attached as an exhibit to these minutes. Ms. Hall then exited the meeting at 6:50 p.m. Director Marks then asked if the medical clinics within the District are required to have grease traps. Mr. Lee responded that if the facility has food service, it must have a grease trap and if there is no food service, that facility can request a grease trap waiver. ENGINEER'S REPORT Mr. Lee then reviewed the Engineer's Report, a copy of which is attached hereto. Mr. Lee reported that Jones & Carter had reviewed and updated the District's Emergency Preparedness Plan (the "EPP") and he handed out the updated pages to the EPP, copies of which are attached hereto. Mr. Lee next reported that the contractor for the Lower Bonds Gully Modifications project has finished excavation and construction is approximately 54% complete

6 Concerning the construction of the water, sanitary sewer and drainage facilities to service Villages of Senterra Lakes, Section 5, Mr. Lee reported that Notice to Proceed was issued to Clearwater Utilities on February 25, Mr. Lee next reported that included in the bills approved for payment tonight was the invoice from CenterPoint Energy, in the amount of $21, for the natural gas line to Lift Station No.1. In addition, Mr. Lee reported that Jones & Carter received a quote from Cummins Southern Plains, L.L.c. ("Cummins") in the amount of $34, for the new 85 kw natural gas generator and a quote from NTS in the amount of $7,500 to provide the material and labor associated with the installation of the new generator. Mr. Lee noted that the total cost for replacing the generator at Lift Station No. 1 is $63,696.50, which is lower that the engineer's estimate of $71,000. Upon motion by Director Steffes, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to accept the proposals of Cummins and NTS. Mr. Lee then reported that the District received a request for service from Harris County Municipal Utility District No. 530 ("HC 530"), a new district sought to be created at the southeast comer of FM 2920 and Stuebner Airline Road. Mr. Lee explained that the Texas Commission on Environmental Quality requires that a district to contact all entities within a three (3) mile radius to identify any available capacity to service such district. Mr. Lee recommended that the Board authorize Jones & Carter to respond to HC 530 that the District does not have capacity to serve it. Upon motion by Director Warren, seconded by Director Steffes, after full discussion and the question being put to the Board, the Board voted unanimously to authorize Jones & Carter to respond accordingly. Mr. Lee reported that he was not prepared to review the District's Bond Application Report No. 12 tonight and asked that the matter be deferred until the May meeting. Upon motion by Director Warren, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer's Report. APPROVE AND AUTHORIZE EXECUTION OF AGREEMENT FOR FINANCING OF FACILITIES (THE "AGREEMENT") WITH THIRD GENERATION DEVELOPMENT, LP ("THIRD GENERATION") Mr. Palumbo then addressed the Board and asked that Third Generation not be financially responsible for the cost to extend the District's water lines under FM 2920 for the purpose of creating a looped water line near his acre commercial tract. Mr. Lee noted that NewQuest Properties would have paid for the water line loop in connection with the development of Spring Town Center, Phase 3, if Mr. Palumbo had not annexed his tract into the District. Mr. Lee added that Mr. Palumbo's property is at the end of the water line and will probably require additional flushing to maintain the quality of the water. Mr. Lee also informed the Board that this portion of the project would cost approximately $50,000. Director Marks stated that he would be in favor of the District paying this cost because the District will be obligated to reimburse this cost to the developer if the developer paid it. Upon motion by Director Schkade, seconded by Director Warren, after full discussion and the question being put

7 to the Board, the Board voted unanimously to assume financial responsibility for the cost to extend the District's water line under FM 2920 in connection with the extension of water lines to serve the Third Generation property. Mr. Lee noted that the construction project will be bid with an alternate cost for the boring under FM Upon motion by Director Steffes, seconded by Director Schkade, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Agreement with Third Generation and to authorize the circulation of same for execution, pending revision by Mr. Polley to contemplate the District sharing the costs of the water line extension as described above. DEVELOPERS' REPORT Mr. Hudson reported that Chesmar Homes and Texas Homes are selling well in Villages of Senterra Lakes subdivision. Concerning Senterra Lakes, Section 1, Mr. Hudson reported that acceptance of the detention pond for maintenance by the Harris County Flood Control District (the "HCFCD") is scheduled for the Harris County Commissioner's Court March 12, 2012 meeting. Mr. Hudson asked the Board to release the funds that were withheld from his Senterra Lakes, Section 1 reimbursement pending acceptance by the HCFCD of the detention pond. Mr. Polley added that the Board could approve release of these funds pending receipt of confirmation of Commissioner's Court action and an appropriate item would be included on the April 16, 2013 agenda so the Board could ratify this action. Upon motion by Director Steffes, seconded by Director Schkade, after fully discussion and the question being put to the Board, the Board voted unanimously to approve reimbursement to Senterra Lakes, L.P. for funds withheld from the Senterra Lakes, Section 1 detention pond. Mr. Daigle reported that construction of the water, sanitary sewer and drainage facilities to serve The Sanctuary Veritas Phase 2 are 95% complete. Mr. Daigle added that the sales in the subdivision are doing well. Mr. Collins then reported that he is waiting for plan approvals for the street repairs in Gosling Pines, Section 1 necessary to obtain Harris County acceptance of same. ATTORNEY'S REPORT STATUS OF ACQUISITION OF WATER LINE EASEMENTS FOR SPRING STUEBNER WATER LINE PROJECT Mr. Polley next reported that Johnson Radcliffe and Mr. Stephen George of Stephen George, Inc. continue to work on the acquisition of water line easements for the Spring Stuebner Water Line project

8 SCHEDULE POST-ISSUANCE COMPLIANCE REVIEW WITH COMPLIANCE OFFICER AND NECESSARY CONSULTANTS Mr. Polley then noted that it is time to schedule the initial Post-Issuance Compliance review pursuant to the District's Resolution Adopting Amended Post-Issuance Tax-Exempt Debt Compliance Policies adopted October 16, Mr. Polley stated that the initial Post-Issuance Compliance review will be at a scheduled meeting with the following in attendance: Directors Marks and Steffes, Attorney, Financial Advisor, Engineer and Bookkeeper. Mr. Polley stated that his office will contact the directors and consultants regarding the date and time for the meeting. STATUS OF BRIDGESTONE LAKES COMMUNITY IMPROVEMENT ASSOCIATION, INC V BRIDGESTONE LAKES DEVELOPMENT Co., INC Mr. Polley reported to the Board that the attorneys representing Bridgestone Lakes Community Improvement Association (the "HOA") deposed Mr. Gene Conner on Wednesday, March 13, 2013, and Mr. Stephan Selinidis of Harrison Bettis attended the deposition on behalf of the District. Mr. Polley noted that Mr. Selinidis has requested a copy of the deposition for the District's files. Ms. Jarmon, Mr. Lee, Mr. Hudson, Mr. Collins, Mr. Daigle, Mr. Rowe and Mr. Staab then exited the meeting at 7 :25 p.m. MISCELLANEOUS MATTERS Director Marks stated that he wanted the Board to actively work on finding a replacement to serve the remainder of Ms. Linda Theiss' unexpired term of office. The Board concurred that they would schedule a special meeting on Tuesday, April 2, 2013, at 6:00 p.m., and invite Ms. Kurzy, Mr. Mickey Draper and Mr. Daniel Rathe to attend the meeting to meet the Board and to discuss their interest and qualifications to serve on the Board. Mr. Polley asked Director Schkade to send Mr. Draper's contact information and Director Steffes to send Mr. Rathe's contact information to his office. Mr. Polley then noted that the Board's next regular meeting of the Board is scheduled for Tuesday, April 16, 2013, at 6:00 p.m. There being no further business to corne before the Board, the meeting was adjourned. PASSED, APPROVED AND ADOPTED this 16 th day of April,