NO MINUTES OF MEETING OF BOARD OF DIRECTORS March 15, 2005

Transcription

1 NO MINUTES OF MEETING OF BOARD OF DIRECTORS March 15, 2005 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 Bridgestone Community Center, 4403 Lost Lake Lane, Spring, Texas, its regular meeting place within the boundaries of the District, on Tuesday, March 15, 2005, at 6:00 p.m.; whereupon, the roll was called of the members of the Board, to wit: Adrian E. Steffes Jim Marks Ronald W. Schkade Skip Warren Jerry Thomas President/Investment Officer Vice President Secretary Treasurer Assistant Secretary All members of the Board were present except Director Schkade, thus constituting a quorum. Also attending the meeting were Mr. Gene Conner, General Manager of the District; Ms. Pat Hall of Equi-Tax, Inc., tax assessor/collector for the District; Ms. Mary Jarmon of Myrtle Cruz, Inc., bookkeeper for the District; Messrs. Ed Shackelford, P.E. and Erich Peterson, P.E. of Jones & Carter, Inc. ("Jones & Carter"), engineers for the District; Ms. Karen Sears and Mr. Joe Almaguer of Aqua Services, LP ("Aqua Services"), operators for the District; Mr. Bob Hudson of Texas Investment & Development Company, developer of the Bridgestone Lakes, Gosling Pines, Senterra Lakes and Villages of Senterra Lakes subdivisions within the District; Mr. David Glunt, project manager for the Senterra Lakes and Villages of Senterra Lakes subdivisions within the District; Mr. Perry Senn, Vice President of Peron Development, Inc., developer of the Bella Sera, Villages of Bridgestone and Northcrest Village subdivisions within the District; Mr. David McGowen of DR Horton, Inc., homebuilder in the Bella Sera subdivision within the District; Mr. Ron Walkoviak of Development Consultants Inc., development manager of the Spring Terrace subdivision within the District; Mr. Beto Bautista, P.E. of Centex Homes, developer of the Spring Terrace subdivision within the District; Mr. John Moy, Project Manager of LJA Engineering & Surveying, Inc., engineers for the Spring Terrace subdivision within the District; Mr. Keith Radcliffe and Ms. Juanita Orsak of K. Hovnanian of Houston, L.P., dba Parkside Homes ("Parkside"), developer of a tract of land located within the boundaries of Meadowhill Regional Municipal Utility District ("MRMUD"); Mr. Jamie Cornelius of Sowell & Co. ("Sowell"), developer of the Rhodes Landing subdivision within the District and the Meadowhill Run subdivision located within MRMUD; Mr. John Cannon of Winstead Sechrest &

2 Minick PC, representing Sowell regarding the Meadowhill Run drainage matter; Mr. Jim West of 2920 Kuykendahl Partners, developers of Springbrook Plaza and Project Manager for The Field Companies, Inc., regarding a acre tract, portions of which are located both inside and outside the boundaries of the District; Mr. Harry Lemaster representing Dr. Scott Bolz, owner of a 1.2-acre commercial tract of land located within the boundaries of the District; Mr. Mike Harrington of American Enerpower, Inc., energy broker for the District; Corporal Dean Coleman of the Harris County Precinct 4 Constable's office; Mr. Gary Palmer, a resident of the District; and Ms. Robin S. Bobbitt, attorney, and Ms. Brooke T. Dold, paralegal, of Johnson Radcliffe Petrov & Bobbitt PLLC, 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 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. CONSENT AGENDA Director Steffes first 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. Ms. Bobbitt noted that the minutes of the special meeting and executive session of January 12, 2005 had been removed from the Consent Agenda. Upon motion by Director Warren, seconded by Director Thomas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the following Consent Agenda items: 1) the minutes of the regular meeting of February 15, 2005; 2) authorize design of the water, sewer and drainage facilities to serve Springbrook, Section 7; 3) authorize advertising for bids, subject to Jones & Carter's receipt, review and approval of project plans for (a) the Springbrook, Section 6 water, sewer and drainage facilities and (b) Villages of Senterra Lakes detention pond; 4) review bid tabulations and award construction contract for (a) Villages of Senterra Lakes detention pond and (b) Northcrest Village, Section 2 water, sewer and drainage facilities; 5) approve the following pay estimates and change orders: (a) Pay Estimate No. 4 in the amount of $56, to Triple B Services, L.L.P. for construction of the Bella Sera detention pond; (b) Pay Estimate No. 2 in the amount of $25, and Change Order No. 1 in the amount of $67, to Clearwater Utilities, Inc. in connection with the construction of the Bella Sera water, sewer and drainage facilities; (c) Pay Estimate No. 2 and Final in the amount of $21, and Change Order No. 1 in the amount of $5, to C.E. Barker, Ltd. for construction of the 18-inch sewer trunk line to serve Northcrest Village; (d) Pay Estimate No. 5 in the amount of $12, and Pay Estimate No. 6 in the amount of $8, to Excalibur Construction, Ltd. for clearing and grubbing and detention basin construction for Senterra Lakes; (e) Pay Estimate No. 1 in the amount of $78, and Change Order No. 1 in the amount of $41, to Lone Star Land Clearing for clearing and grubbing in Springbrook, Section 4; (f) Pay Estimate No. 6 in the amount of $86, to Cravens Partners, Ltd. for construction of water, sewer and drainage facilities to serve Springbrook Plaza; (g) Pay Estimate No. 6 and Final in the amount of $26, to Liftwater Construction, Inc. for the storm water pump station to 2

3 serve Spring Terrace; (h) Pay Estimate No. 1 in the amount of $268, to Bay Utilities, L.L.C. for construction of water, sewer and drainage facilities to serve Spring Terrace, Section 3; (i) Pay Estimate No. 6 in the amount of $14, to S. Holland Co., Inc., for construction of water, sewer and drainage facilities to serve Stone Forest, Section 4; and (j) Pay Estimate No. 1 in the amount of $111, to TBA Construction LLC for construction of the waterline extension from Water Plant No. 2 to Bridgestone Lane; and 6) Developer Reports. Ms. Sears then entered the meeting at 6:10 p.m. REGULAR AGENDA TAX ASSESSOR/COLLECTOR'S REPORT The Board then recognized 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 89.2% of the District's 2004 taxes have now been collected as of today's date. Upon motion by Director Warren, seconded by Director Thomas, 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 next reviewed with the Board the Delinquent Tax Attorney's Report, a copy of which is attached hereto. Ms. Hall noted that in Section III, two (2) developers were listed as owing 2003 rollback taxes. Ms. Hall added that no action was required on the Report. ADOPT RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION FOR 2005 TAX YEAR Ms. Bobbitt then presented to the Board a Resolution Concerning Exemptions from Taxation for 2005 Tax Year. Ms. Bobbitt reminded the Board that last year the Board granted a $25,000 exemption for individuals who were disabled or were 65 years of age or older and granted a ten percent (10%) general residential homestead exemption for the 2004 tax year. Upon motion by Director Thomas, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to grant a $25,000 exemption for individuals who are disabled or are 65 years of age or older and to grant a ten percent (10%) general residential homestead exemption for the 2005 tax year and to adopt a Resolution Concerning Exemptions from Taxation for 2005 Tax Year reflecting such exemptions, a copy of which is attached hereto. RESOLUTION IMPLEMENTING PENALTY ON 2004 DELINQUENT TAXES AND CONTRACTING WITH ATTORNEYS TO COLLECT DELINQUENT TAXES Ms. Bobbitt then explained that pursuant to Sections 6.30, and of the Texas Property Tax Code, as amended, the District may levy an additional 20% penalty on 2004 taxes that remain delinquent as of July 1, 2005, to help defray the costs of collection, if the Board has 3

4 entered into an agreement with an attorney for the collection of delinquent taxes and if adequate notice of such penalty is provided to property owners. Upon motion by Director Warren, seconded by Director Thomas, after full discussion and the question being put to the Board, the Board voted unanimously to adopt the Resolution Implementing Penalty on 2004 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes, a copy of which is attached hereto. Ms. Orsak and Mr. Radcliffe then entered the meeting at 6:12 p.m. 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, investment report and the checks being presented for payment, a copy of which is attached hereto. Ms. Jarmon reported that the monthly invoices had been sent to the various developers in the District for construction management services and to those developers with outstanding balances for annexations and/or feasibility studies. Ms. Jarmon noted that check nos and 8130 were going to be voided, and that check no would be reissued in the customer's married name. Mr. Moy then entered the meeting at 6:15 p.m. Upon motion by Director Warren, seconded by Director Thomas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper's Report and the payment of the checks reflected therein. CONSIDER REQUEST FROM THE NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY (THE "NHRCWA") FOR LETTER OF NO OBJECTION IN CONNECTION WITH PROJECT 7B Mr. Shackelford then explained that the proposed water line from the NHCRWA's main transmission line to the District's Water Plant No. 3 would cross over three (3) of the District's existing easements, and that the NHCRWA had submitted a written request for a Letter of No Objection from the District indicating that the NHCRWA transmission line could cross the District's easements. A copy of the NHCRWA's written request and plan sheets are attached hereto. Mr. Shackelford noted that the easements were located on the Albertsons tract and on Kuykendahl Road and stated that Jones & Carter had no objection to the NHCRWA transmission line crossing the District's easements. Upon motion by Director Thomas, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to authorize Mr. Shackelford to prepare and forward the Letter of No Objection to the NHCRWA. DISCUSS REVISION OF DISTRICT'S DROUGHT CONTINGENCY PLAN Ms. Bobbitt reported that copies of the District's 2000 Drought Contingency Plan had been distributed to the Board and asked that action on the matter be deferred. Mr. Palmer then entered the meeting at 6:20 p.m. 4

5 OPERATOR'S REPORT Ms. Sears next reviewed the Operator's Report for the month of February with the Board, including the termination list, copies of which are attached hereto. Ms. Sears first reported that the District's water accountability ratio for the month was 92.4%, with a four (4) month average of 92.1%, and that there were eight (8) sludge hauls during the month. Ms. Sears added that there are currently 3,549 connections in the District, including 2,645 residential accounts, 295 builder accounts and 479 vacancies. Ms. Sears then reviewed the termination list with the Board. Ms. Sears then reported that a draft of the District's proposed 2004 Consumer Confidence Report (the "CCR") was attached to the Operator's Report. Ms. Sears noted that the President's Message on the CCR needs to be updated. Mr. Cornelius and Mr. Harrington then entered the meeting at 6:20 p.m. A discussion next ensued concerning inclusion of information regarding the increase in the NHCRWA pumpage fees in the President's Message on the CCR and the possibility of sending a notice out to District residents regarding the pumpage fee increase. The Board determined that a notice to residents regarding the pumpage fee increase was not necessary. Ms. Hall then exited the meeting at 6: 27 p.m. Director Warren then recommended that Aqua Services be authorized to purchase a pressure washer for an estimated cost of $ for use at the District's plant facilities. Upon motion by Director Thomas, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operator's Report, to authorize the termination of service to the delinquent accounts and to authorize purchase of the pressure washer. AMERICAN ENERPOWER PRESENTATION The Board next recognized Mr. Harrington, who apologized for missing the February 15 th meeting. Mr. Harrington then distributed an introduction to American Enerpower and Comparison of Retail Electric Provider ("REP") Proposals, copies of which are attached hereto. Mr. Harrington stated that Direct Energy was presently the REP with the lowest energy rate of $ per kilowatt hour, which would save the District approximately $2,000 per month in utility costs. Mr. Harrington recommended that the Board enter into a short-term power contract of three (3) to six (6) months. Mr. Harrington next distributed a copy of the Commercial Electricity Service Agreement, a copy of which is attached hereto for Ms. Bobbitt's and Mr. Conner's review and execution by an authorized representative of the District. Director Warren asked Mr. Harrington if he thought the electrical service rate would decrease in the near future. Mr. Harrington stated that the rate typically declines as the summer months approach. Mr. Senn and Mr. Lemaster then entered the meeting at 6:45 p.m. 5

6 Mr. Conner recommended that the Board lock in the Direct Energy rate for three (3) months. Ms. Bobbitt asked when the transition from Reliant Energy to Direct Energy would occur. Mr. Harrington stated that the rates would be in effect for the months of April, May and June. A discussion ensued regarding the procedures to be followed to negotiate future contracts to take advantage of potentially lower electrical service rates. Mr. Harrington suggested that the Board designate an individual to work with him to lock in the lowest possible rates as they occur. Director Marks then entered the meeting at 6:48 p.m. Upon motion by Director Thomas, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to approve the District entering into a three (3) month contract with Direct Energy and to designate Mr. Conner as the individual to execute such contract, a copy of which is attached hereto, and to enter into additional energy service contracts in the future on behalf of the Board as the energy rates decline. Mr. Harrington then exited the meeting at 6:50 p.m. REQUEST FOR SERVICE TO 1.2-ACRE COMMERCIAL TRACT OF LAND Mr. Peterson then reported that he had spoken with Mr. Lemaster and Dr. Bolz (owner of the tract of land located on Kuykendahl Road) and explained that Dr. Bolz intends to build a 6,000 square foot commercial building for his chiropractic business and lease the remainder of the space to a physical therapy clinic. Mr. Peterson also noted that pursuant to a letter agreement between the District and Mr. Lightfoot dated February 15, 1999, a copy of which is attached hereto, the District had agreed to waive the tap fee and sewer inspection fee on such tract in exchange for the water and sanitary sewer line easements that were needed for the Kuykendahl utilities. UPDATE ON NON-COMPLIANCE WITH DISTRICT'S POLICIES AND PROCEDURES FOR DEVELOPMENT BY TEXAS MEGA STORAGE Mr. Conner reported that last week, he had met with Mr. Darren Raines, the owner of the Texas Mega Storage 16.4-acre tract of land located on FM 2920, Mr. Gary Montgomery of Montgomery & Associates, engineers for Mr. Raines, and Mr. Shackelford and Mr. Peterson to discuss the developer's failure to comply with the District's Policies and Procedures for Development (the "Policies and Procedures"). Mr. Conner noted that the construction plans for the development have not yet been submitted to Jones & Carter for review and approval at the time of the meeting. Mr. Conner went on to report that because of the developer's failure to comply with the Policies and Procedures, he is now in jeopardy of not receiving water and sewer service from the District. Director Thomas reported that construction activity is going on at late hours in the night and causing the residents to complain. A discussion then ensued concerning the ability of the District to prevent Mr. Raines from pumping into the District's storm sewer system. It was noted that the Raines tract drainage is currently flowing into the interceptor swale that was built to carry overflow out of the Bridgestone Ranch development. Upon motion by Director Warren, seconded by Director Thomas, after full discussion and the question being put 6

7 to the Board, the Board voted unanimously to authorize Mr. Conner to determine the most effective means of stopping the flow of stormwater from the Raines tract into the District's storm sewer system. Mr. Conner stated that he would contact the Harris County Flood Control District (the "HCFCD") in the morning to determine how to proceed. Ms. Bobbitt suggested that the District send Mr. Raines written notice that the District is going to plug the storm sewer line to prohibit further use of the system by Texas Mega Storage and to advise him of his failure to comply with the District's Policies and Procedures. It was agreed that Mr. Conner, Mr. Shackelford and Aqua Services would inspect the Texas Mega Storage property to determine the most appropriate location to plug the storm sewer line. Director Marks commented that the District needs to cap and plug District lines every time a new development is initiated. Mr. Shackelford responded that capping and plugging of lines cannot always be done. Mr. Shackelford stated that the HCFCD has created a serious problem by signing construction plans for private development projects without following up with the utility districts in which the development project is located. Director Marks further noted that the 16.4-acre tract has a history of poor drainage. DIRECTOR'S REPORT Director Marks then reported that he had inspected the District's facilities on March 12, 2005 with Mr. Almaguer. A copy of Director Marks' inspection report is attached hereto. Director Thomas asked Ms. Sears if Aqua Services includes touch-up painting in their maintenance work on the District's facilities. Ms. Sears stated that the labor is considered as normal maintenance and that once the proposed painting project for the various District facilities is completed, Aqua Services will maintain the paint on such facilities. Mr. Conner noted that the District would want to take advantage of the one (1) year warranty on the painting project. The Board continued to review Director Marks' report. Upon motion by Director Thomas, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Director's Report. Mr. Lemaster then entered the meeting. REQUEST FOR SERVICE TO 1.2-ACRE COMMERCIAL TRACT (CONTINUED) The Board then recognized Mr. Lemaster, who reported that he was in attendance at the meeting on behalf of Dr. Scott Bolz, owner of the 1.2-acre tract of land previously owned by John Lightfoot and located at Kuykendahl Road, within the boundaries of the District. Mr. Lemaster then provided Ms. Dold with his application for water and sewer service for the tract of land. Mr. Lemaster also reported that the site drawings for the proposed commercial development will be forwarded to Mr. Peterson for review and approval within the next week to 10 days. Mr. Lemaster then exited the meeting at 7:45 p.m. 7

8 ENGINEER'S REPORT The Board next recognized Mr. Peterson, who briefly reviewed the Engineer's Report with the Board, a copy of which is attached hereto. Concerning the proposed shared detention facilities to serve the Spring Terrace and Bella Sera developments, Mr. Peterson referred to a letter from Jones & Carter, dated March 14, 2005, addressed to Mr. Senn and Mr. Ron Walkoviak, regarding the proration of costs for the shared detention facilities, a copy of which is attached hereto. Mr. Peterson noted that the shared detention facilities, including the detention pond and pump station, would be designated as Project Wide Costs under the District's Developer Reimbursement Policy and, therefore, would be eligible for 100% reimbursement to the developers pursuant to their respective Agreements for Financing of Facilities with the District. Mr. Peterson went on to explain that the Harris County Permit Division will not sign the Bella Sera plans or amend the stormwater quality permit until a Cost Sharing Agreement between the Spring Terrace and Bella Sera developers is signed. Mr. Peterson stated that once the developers reach an agreement concerning the proration of costs for the shared detention facilities, Ms. Bobbitt will draft the Cost Sharing Agreement between Spring Terrace and Bella Sera. Mr. Moy interjected that he had not seen or received the Jones & Carter letter. Mr. Shackelford stated that he had spoken with Mr. Beto Bautista and Mr. Nick Ozuna concerning the letter earlier today. Mr. Senn stated that it is very important to the development of Bella Sera to get the Cost Sharing Agreement finalized so that the project can move forward. Mr. Senn also stated that he was in concurrence with the cost prorations reflected in the Jones & Carter letter. Upon motion by Director Marks, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to approve the cost prorations for the Bella Sera/Spring Terrace shared detention facilities as calculated by Jones & Carter and to authorize Ms. Bobbitt to prepare a Cost Sharing Agreement by and between the Spring Terrace and Bella Sera developers. Upon motion by Director Marks, seconded by Director Thomas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer's Report. LETTER OF UNDERSTANDING REGARDING UPPER/LOWER BONDS GULLY IMPROVEMENTS Corporal Coleman then entered the meeting at 7:50 p.m. Concerning the status of the Letter of Understanding (the "LOU") regarding the Upper/Lower Bonds Gully Improvements Project by and among the District, Sowell Interests-Meadowhill, L.P., Parkside and Bridgestone Lakes Development Company, Inc. ("Bridgestone Lakes"), Ms. Bobbitt reported that copies of the most recent draft of such LOU had been distributed to the Board and participants by earlier this afternoon, a copy of which is attached hereto. Mr. Cannon then addressed the Board concerning the LOU and stated that Sowell has no further revisions to the LOU. 8

9 Mr. Senn and Mr. McGowen then exited the meeting at 8:00 p.m. Ms. Orsak then stated that the attorney for Parkside, Mr. Howard Cohen, had requested a last minute revision to the LOU to add a statement that the LOU is not binding on the parties. Mr. Cornelius noted that Sowell was glad that Parkside wanted to participate in the project, whether it was for the 35 acres they now own or for the additional 55 acres, but expressed concern about Mr. Cohen's proposed revision. Ms. Bobbitt then stated she was opposed to the provision and further stated that it was her understanding that March 15 th was the deadline for Parkside to purchase the additional 55 acres and asked about the status of such purchase. Ms. Bobbitt noted that a revision could be inserted in the LOU to take into account the possibility of the 55-acre tract not being purchased by Parkside. Mr. Radcliffe interjected that Parkside was in agreement with the proposed LOU with the inclusion of Mr. Cohen's revision. Ms. Bobbitt reiterated her question about the status of the purchase of the 55-acre tract. Mr. Radcliffe stated that the matter should be resolved in time for the District's April 19 th meeting. Director Thomas asked if the LOU needed to spell out the basis for calculating the pro rata shares of costs. Ms. Bobbitt stated that the pro rata shares need to be included, but also stated that the LOU could include a clause to provide for the possibility of Parkside not purchasing the additional acreage. Mr. Radcliffe inquired as to why Ms. Bobbitt was concerned that Mr. Cohen had requested language that the LOU was not a binding contract. Ms. Bobbitt responded that the request made her wonder about Parkside's intent. Mr. Hudson then interjected that he was fine with the proposed LOU and stated that he understood it was not the final agreement concerning the matter. Mr. Cannon stated that preparation and finalization of the Participation Agreement needs to go forward as soon as possible in order for the plug in the storm sewer line to be removed and for Sowell to be able to proceed with home construction in Meadowhill Run. Mr. Conner then asked Ms. Orsak if the 35-acre tract would be included in the LOU and Participation Agreement whether or not Parkside purchases the 55-acre tract. Ms. Orsak stated that the 35-acre tract has another drainage option and does not have to drain through the Bridgestone Lakes detention facilities. Director Thomas then suggested that the LOU only include the District, Sowell Interests-Meadowhill, L.P. and Bridgestone Lakes. Ms. Bobbitt and Ms. Conner concurred. Mr. Radcliffe stated that he had no objection to Parkside not being a party to the LOU, but requested that Parkside have the option to be a party to the Participation Agreement if Parkside proceeds with the purchase of the 55-acre tract. Upon motion by Director Warren, seconded by Director Marks, after full discussion and the question being put to the Board, the Board voted unanimously to approve the LOU by and between the District, Sowell Interests-Meadowhill, L.P. and Bridgestone Lakes. Ms. Bobbitt then requested that revised proration calculations be provided to her by Jones & Carter. GENERAL MANAGER'S REPORT Mr. Conner then asked Corporal Coleman to review with the Board the Harris County Precinct Four Constable's Report, a copy of which is attached hereto. Corporal Coleman then exited the meeting at 8:20 p.m. 9

10 Mr. Conner next presented the General Manager's Report, previously distributed to the Board, a copy of which is attached hereto. Director Thomas asked Mr. Conner to check with the District's website provider about sending the monthly reports to a secured area on the website rather than to the Directors' individual addresses. Director Marks stated that he was receiving all of his meeting information and materials late. Mr. Conner noted that his report was late this month due to the third Tuesday falling so early in the month. Mr. Conner then stated that Director Steffes had requested an updated Emergency Contact List. Mr. Conner stated that he would finalize the list and post the list at each of the District's facilities and have them printed in a business card size to enable the Board members and consultants to carry the information with them. Concerning the Ditch "A" encroachment, Mr. Conner reported that Jones & Carter is preparing an update to an earlier study that was prepared to determine the most cost effective way to resolve the encroachment problem and to promote the long-term operation and maintenance of Ditch "A". Mr. Conner next reported that on February 17, 2005, he met with Mr. John Emerson of the Harris County Pollution Control Department and Mr. Jose Gross of Bridgestone Partners, Inc. to inspect the Albertsons detention pond. Mr. Conner explained that Mr. Gross had advised him and Mr. Emerson of a lawsuit he has filed against the owners of the shopping center. Mr. Conner added that Mr. Gross had engaged Dannenbaum Engineering, Inc. to prepare an engineering study that details the causes for the failure of the detention pond. Mr. Conner added that Mr. Emerson had advised Mr. Gross that the detention pond needed to be kept clean and that the detention pond and lift stations need to continue to operate properly. Director Warren then asked Mr. Conner when the ant extermination application would be done. Mr. Conner responded that the wet weather conditions had caused a delay in the ant control application. Mr. Conner then reported that Harris County (the "County") had paved the road to the Sewage Treatment Plant (the "STP") up to the District's fence. Mr. Conner stated that he had contacted Ms. Pam Rocchi of the County to determine if the County would pave the remainder of the STP access road if the District is willing to reimburse the County for such work, but had been advised that the County could not perform such work. Mr. Conner suggested that he contact one of the contractors working in the area to request a cost estimate for paving the remaining portion of the access road. The Board concurred. Director Warren suggested that Mr. Conner contact Angel Brothers to do the paving work. Upon motion by Director Marks, seconded by Director Warren, after full discussion and the question being put to the Board, the Board voted unanimously to approve the General Manager's Report. 10

11 ATTORNEY'S REPORT Ms. Bobbitt stated that she had nothing further to report. Upon motion by Director Warren, seconded by Director Thomas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Attorney's Report. MISCELLANEOUS MATTERS Ms. Bobbitt then noted that the next regular meeting of the Board would be held on Tuesday, April 19, 2005, at 6:00 p.m. at the Bridgestone Community Center. A discussion then ensued regarding a date for a special meeting. Director Thomas noted that he wanted his agenda item regarding developer side agreements included on the next special meeting agenda. Ms. Bobbitt and Mr. Conner stated that they would work to schedule a special meeting on April 5, 2005 and would contact the Board members and consultants to confirm such meeting date. There being no further business to come before the Board, the meeting was adjourned. PASSED, APPROVED AND ADOPTED this 19 th day of April, /s/ronald W. Schkade (DISTRICT SEAL) Secretary, Board of Directors S:\Bridgestone\Minutes\2005\ doc 11