MINUTES BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 29. February 22, 2019
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1 MINUTES BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 29 February 22, 2019 The Board of Directors (the "Board") of Brazoria County Municipal Utility District No. 29 (the "District") met in regular session, open to the public, on the 22nd day of February, 2019, at the offices of Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Houston, Texas, outside the boundaries of the District, and the roll was called of the members of the Board: Cassandra Cantner Eddie Cook Erin Garcia Robina Spruill Elizabeth Miller President Vice President Secretary Assistant Vice President Assistant Secretary and all of the above were present, thus constituting a quorum. Also present at the meeting were Jessica Preston of Municipal Accounts & Consulting, L.P. ("MAC"); Rhonda Patterson of Assessments of the Southwest, Inc.; Jared Bowlin of Edminster, Hinshaw, Russ & Associates ("EHRA"); Gary Hastings of Municipal Operations and Consulting, Inc. ("MOC"); Justin Klump of Storm Water Solutions; Lenny Hardoin of Champions Hydro-Lawn ("Champions"); Barry Hill of JJ Development; Joe Watson of Axis-Point Developers, LLC; Gavin Stevens, guest of Barry Hill; and Jessica Carr, Sharon Covan and Holly Huston of Allen Boone Humphries Robinson LLP (" ABHR"). MINUTES The Board considered approving the minutes of the January 18, 2019, meeting. Following review and discussion, Director Cook moved to approve the minutes of the meeting. Director Miller seconded the motion, which passed by unanimous vote. PUBLIC COMMENTS There were no comments from the public. HOMEOWNER ASSOCIATION MATTERS There was no discussion on this matter
2 ASSOCIATION OF WATER BOARD DIRECTORS WINTER CONFERENCE; APPROVE REIMBURSEMENT OF ELIGIBLE EXPENSES, AUTHORIZE ATTENDANCE AT SUMMER CONFERENCE The Board discussed the Association of Water Board Directors(" AWBD") winter conference. The Board considered approving related eligible expenses. Ms. Preston said all Director expenses have been reviewed and comply with the District's Travel Reimbursement Guidelines for reimbursement. After review and discussion, Director Spruill moved to approve the reimbursement of eligible expenses to Directors that attended the winter A WBD conference and to authorize Board members to attend the summer AWBD conference in Fort Worth, Texas. Director Cook seconded the motion, which passed by unanimous vote. FINANCIAL AND BOOKKEEPING Ms. Preston reviewed the bookkeeper's report, a copy of which is attached, including the bills submitted for approval, and the quarterly investment report. Director Garcia requested the bookkeeper not renew the Certificate of Deposit and deposit the funds in a money market account as rates are increasing. After review and discussion, Director Garcia moved to approve the bookkeeper's report, including payment of the bills. Director Spruill seconded the motion, which passed by unanimous vote. ANNUAL REVIEW OF PROCEDURES FOR CONTINUING DISCLOSURE COMPLIANCE The Board took no action on this matter. TAX ASSESSMENT AND COLLECTIONS Ms. Patterson reviewed the tax assessor I collector's report and the unpaid tax roll, copies of which are attached. The Board reviewed the Delinquent Tax Report from Perdue, Brandon, Fielder, Collins & Mott, PLLC, a copy of which is attached. After review and discussion, Director Cook moved to approve the tax assessor I collector's report and the bills submitted for payment. Director Garcia seconded the motion, which passed by unanimous vote. RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION The Board considered adopting a Resolution Concerning Exemptions from Taxation that provides that the District exempts $10,000 of the appraised value of residence homesteads of individuals who are disabled or are sixty-five years of age or older, and rejects the general homestead exemption. After review and discussion, Director Garcia moved to adopt the Resolution Concerning Exemptions from Taxation and direct that the Resolution be filed appropriately and retained in the District's official records. Director Spruill seconded the motion, which passed by unanimous vote. 2
3 HEARING ON TERMINATION OF WATER AND SEWER SERVICE TO DELINQUENT TAX ACCOUNTS There was no action on this matter. DETENTION PONDS AND DRAINAGE CHANNELS Mr. Hardoin reviewed the Detention and Drainage Facilities Report prepared by Champions, a copy of which is attached. Discussion ensued regarding the erosion around the southern shoreline, the southwest corner of Lake 1, the northeast corner of Lake 1, and the west bank of the Lake 1 drainage easement. Director Cantner asked Champions to provide an alternative to straw matting that would be more durable. After discussion, Director Garcia moved to (1) authorize Champions to repair the slopes of the ponds in two phases: i) regrade and repair the slopes and then apply a straw matting, or a more durable product, with seed along the shoreline; and ii) install Flexamat on the northwest, southwest and southeast corners where the erosion is more severe, at a total cost not to exceed $25,000; and (2) accept the Detention and Drainage Report. Director Cook seconded the motion, which passed by unanimous vote. RECEIVE STORM WATER MANAGEMENT PROGRAM REPORT, INCLUDING RENEWAL OF COVERAGE UNDER TPDES GENERAL PERMIT NO. TXR040000, AND APPROVE MASTER SERVICES AGREEMENT WITH STORMWA TER SOLUTIONS AND PROPOSAL FOR SERVICES. Mr. Klump updated the Board on the status of the District's current storm water management program ("SWMP") and the 2019 renewal of the Texas Pollutant Discharge Elimination System General Permit No. TXR (the "MS4 Permit"). He indicated that pursuant to the 2019 renewed MS4 Permit requirements, the District must submit a new Notice of Intent ("NOi") and updated SWMP to the Texas Commission on Environmental Quality no later than July 23, 2019, to maintain MS4 Permit coverage. Mr. Klump presented a Master Services Agreement ("Agreement") for storm water management services and a Proposal for Services ("Proposal") for the preparation, submittal, and implementation of the NOi and SWMP required by the MS4 Permit. Following review and discussion, Director Garcia moved to approve the Agreement and Proposal, authorize Storm Water Solutions to proceed with preparation of the NOi and SWMP for review by the Board, and direct that the Agreement and Proposal be filed appropriately and retained in the District's official records. Director Cook seconded the motion, which was approved by unanimous vote. OPERATION OF DISTRICT FACILITIES Mr. Hastings reviewed the operator's report, a copy of which is attached, and reported on maintenance and repairs of the District's facilities. He said there are 1,408 residential connections in the District and eleven new taps were added in January. Mr. 3
4 Hastings said he will update the Capital Improvement Plan. After discussion, Director Garcia moved to approve the operator's report. Director Miller seconded the motion, which passed by unanimous vote. CONDUCT HEARING AND AUTHORIZE TERMINATION OF WATER SERVICE TO DELINQUENT ACCOUNTS Mr. Hastings presented a list of delinquent customers and reported the residents on the termination list were delinquent in payment of their water and sewer bills and were given written notification prior to the meeting, in accordance with the District's Rate Order, of the opportunity to appear before the Board of Directors to explain, contest, or correct their bills and to show why utility services should not be terminated for reason of non-payment. Following review and discussion, Director Garcia moved to authorize termination of delinquent accounts, in accordance with the District's Rate Order, and direct that the delinquent customer list be filed appropriately and retained in the District's official records. The motion was seconded by Director Miller and passed by unanimous vote. ENGINEERING Mr. Bowlin reviewed the engineering report, a copy of which is attached. THE COLONY, SECTION 6 Mr. Bowlin reported on The Colony, Section 6. He said the project is on hold. NEWPORT LAKE ESTATES DETENTION; MAINTENANCE OF DRAINAGE SWALE Mr. Bowlin updated the Board on Newport Lake Estates detention and maintenance of the drainage swale. He said Pay Request No. 4 in the amount of $198,545.85, Pay Request No. 5 in the amount of $66,393.00, Pay Request No. 6 in the amount of $28,200.37, and Pay Request No. 7 and Final in the amount of $73,648.10, submitted by Double Oak Construction, were submitted and approved by the Board af the December 21, 2018, Board meeting. Mr. Bowlin said Change Order No. 1 in the amount of $81, and Change Order No. 2 in the amount of $31, to increase the contract with Double Oak Construction for Newport Lake Estates were approved by the Board at the December 21, 2018, Board meeting. NEWPORT LAKE ESTATES, WATER, SEWER AND DRAINAGE Mr. Bowlin reported on the construction of water, sewer and drainage facilities for Newport Lake Estates. He said Pay Request No. 6 in the amount of $40,075.75, Pay Request No. 7 in the amount of $106, and Pay Request No. 4
5 8 and Final in the amount of $61,260.73, submitted by R Construction, were approved by the Board at the December 21, 2018, Board meeting. Mr. Bowlin said Change Order No. 1 to the contract with R Construction for Newport Lake Estates, water, sewer and drainage to increase the contract in the amount of $99, was approved by the Board at the December 21, 2018, Board meeting. NEWPORT LAKE ESTA TES LIFT STATION Mr. Bowlin reported on construction of the lift station for Newport Lake Estates. He said the Board approved approval of Change Order No. 1 to the contract with Peltier Brothers Construction for Newport Lake Estates lift station to increase the contract in the amount of $21, at the December 21, 2018, Board meeting. NEWPORT LAKE ESTATES, SECTION 2, WATER, SEWER AND DRAINAGE Mr. Bowlin reported on construction of water, sewer and drainage facilities for Newport Lake Estates, Section 2. He presented and recommended for approval Pay Request No. 1 in the amount of $50,149.35, submitted by Blazey Construction Services, LLC. THE LAKES, SECTION 2, WATER, SEWER AND DRAINAGE Mr. Bowlin reported on the Lakes, Section 2, water, sewer and drainage. He said the pre-construction meeting was held on February 12, THE LAKES, SECTIONS 2 AND 3 DETENTION BASIN AND STORM WATER FACILITIES Mr. Bowlin reported on The Lakes, Section 2 detention basin. He had no pay requests to present to the Board. FOX TAIL PALMS, CLEARING AND GRUBBING, WATER, SEWER AND DRAINAGE Mr. Bowlin reported on Fox Tail Palms, clearing and grubbing. He said the contract was awarded to K&K Earthwork, LLC and is presented today fo r execution. YANNI PALMS LIFT STATION Mr. Bowlin said work on conveyance of the lift station site to the District is underway. He said access to the site will be required. 5
6 YANNI PALMS, WATER, SE\!VER, DRAINAGE AND DETENTION There was no report on this matter. WATER, SANITARY SEWER EXTENSION FOR ACRE TRACT (CR 58 PAD SITE) Mr. Bowlin reported on the water and sanitary sewer extension for the acre tract. He said bids were reviewed and he recommended the Board award the contract to RJ&M Utility Construction, LLC (RJ&M") in the amount of $279, The Board concurred that, in its judgement, RJ&M was a responsible bidder who would be most advantageous to the District and would result in the best and most economical completion of the project. HYDROPNEUMATIC TANK NO. 2 Mr. Bowlin reported on hydropneumatic tank no. 2. rehabilitation project are being prepared. He said plans for the WASTEWATER TREATMENT PLANT EXP ANSI ON Mr. Bowlin reported on the wastewater treatment plant expansion. He had no pay requests to present to the Board. GROUND STORAGE TANK Mr. Bowlin reported on the ground storage tank. He said the contract was awarded to Schier Construction Company and the construction drawings and the plat has been approved by the City of Manvel (the "City"). He said the notice to proceed will be issued to Schier Construction Company on February 25, REGIONAL WASTEWATER TREATMENT PLANT; DEVELOPMENT AGREEMENT WITH THE CITY OF MANVEL Mr. Bowlin reported on the regional wastewater treatment plant. He said a meeting was held with the City to discuss the future expansions. Mr. Bowlin said the City approved and executed the Development Agreement for the Wastewater Treatment Plant providing for the future expansions of the wastewater treatment plant based on 315 gallons per day per added connection when the capacity design is above 0.45 million gallons per day and providing that the District will award a contract for construction of the final wastewater treatment plant no later than the earlier of December 31, 2030 or the date on which the actual three-month average daily flow reaches an amount equal to 85% of the wastewater treatment plant's permitted capacity. He said in return, the City will not object to requests for developer plat approvals on the basis of waste 6
7 water capacity availability as long as the District is in compliance with the Agreement. Ms. Carr said the City no longer desires to purchase a site from the District for a regional waste water treatment plant. After review and discussion, Director Miller moved to authorize execution of the Development Agreement with the City. Director Cook seconded the motion, which passed by unanimous vote. WATER SUPPLY, CAPACITY, CONNECTIONS AND LOT DEVELOPMENT There was no further discussion on water supply, capacity, connections and lot development. After review and discussion, and based on the engineer's recommend a ti on, Director Garcia moved to: (1) approve Pay Request No. 1 in the amount of $50, for Newport Lake Estates, Section 2, water, sewer and drainage; (2) award for construction of the water and sanitary sewer extension for the acre tract to RJ&M in the amount of $279,656.20; and (3) accept the engineer's report. Director Spruill seconded the motion, which passed by unanimous vote. UTILITY AVAILABILITY OR COMMITMENT REQUESTS Discussion ensued regarding the utility capacity availability for Fox Tail Palms. Ms. Carr said a set-aside agreement has been sent to JJ Development, but has not yet been signed. She said the Agreement provides for JJ Development to deposit funds with the District for the future construction of the wastewater treatment plant expansion to serve Fox Tail Palms. Ms. Carr said similar agreements have been signed by Newport Lake Estates and Yanni Palms. Discussion ensued regarding withholding taps for Fox Tail Palms until the deposit for approximately 150 connections has been paid by JJ Development. After discussion, Director Cook moved to authorize withholding taps from Fox Tail Palms until the set aside agreement is signed and the deposit paid. Director Garcia seconded the motion, which passed by unanimous vote. DEVELOPMENT AGREEMENT WITH CITY OF MANVEL There was no further discussion on this matter. BOND APPLICATION NO. 5 Mr. Watson requested that Board authorize preparation of bond application no. 5 to include Newport Lake Estates projects. After discussion, the Board authorized the tax assessor to obtain an Estimate of Value from the Brazoria County Appraisal District in order for the District's financial advisor and engineer to size the bond application and authorized the District engineer to prepare the summary of costs. 7
8 RESOLUTION AUTHORIZING APPLICATION TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR USE OF SURPLUS FUNDS The Board took no action on this matter. SET ASIDE AGREEMENTS There was no further report on this matter. DEEDS AND EASEMENTS Ms. Carr said documents for conveyance of the Yanni Palms lift station site are being prepared. WEBSITE Director Miller discussed the District's website. She requested a more userfriendly District boundary map for the website that includes Fox Tail Palms, Yanni Palms, and Newport Lake Estates. Director Miller suggested adding a section regarding District projects. OUT-OF-DISTRICT SERVICE REQUEST There was no report on this matter. PARK AND RECREATIONAL MATTERS There was no report on this matter. REPORT ON DEVELOPMENT; DEVELOPER FINANCING AGREEMENTS; ENGINEERING AGREEMENTS The Board discussed the Professional Services Engineering Agreement with Dannenbaum Engineering ("Dannenbaum"). Ms. Carr reviewed the changes to the Agreement requested by Dannenbaum. After review and discussion, the Board concurred to make no changes to the Agreement. APRIL MEETING DATE The Board discussed the next meeting on March 29, 2019, and agreed to meet on April 26, 2019, instead of April 19, 2019, due to the holiday. the Board, the meeting was (SEAL) II. qecretary, Board of Directors GJ1:j "f 111 f- 8
9 ATTACHMENTS TO MINUTES Minutes Page bookkeeper's report Tax assessor I collector's report unpaid tax roll Delinquent Tax Report Detention and Drainage Facilities Report Operator's report Engineer's report
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