NORTHWEST HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 24 Minutes of Meeting of Board of Directors January 8, 2019

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1 NORTHWEST HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 24 Minutes of Meeting of Board of Directors January 8, 2019 The Board of Directors ( Board ) of Northwest Harris County Municipal Utility District No. 24 ( District ) held its regular monthly meeting at Hollister Road, Houston, Texas in accordance with the duly posted notice of meeting, and the roll was called of the duly constituted officers and members of said Board, as follows: William Puder, President Darrel Felton, Vice President Darryl Simon, Secretary Mark Cain, Assistant Secretary Clarence Miller, Director/General Manager all of said members were present, thus constituting a quorum. Also present were Esther Flores of Tax Tech, Inc. ( Tax Tech ); Keith Arrant of Municipal Operations & Consulting, Inc. ( MOC ); Sergio Handal of Pape-Dawson Engineers, Inc. ( Pape- Dawson ); Jeremy Roach of Apollo IT Consulting, LLC ( Apollo ); Bill Russell (late) of Myrtle Cruz, Inc. ( Myrtle Cruz ); Deputy Lillibridge of the Harris County Sheriff s Office ( HCSO ); Jonathan Roach, Frank Mitchell, and Joshua Zientek of Roach & Mitchell, PLLC ( RMPLLC ); Darrell Turner of Atlas Consulting ( Atlas ); and Patrick Flores, visitor of the District. The President called the meeting to order and declared it open for such business as might regularly come before it. MINUTES The Board considered for approval the minutes from the December 4, 2018 regular meeting. Upon motion by Director Puder, seconded by Director Miller, the Board voted unanimously to approve the minutes from the December 4, 2018 regular meeting. COMMENTS FROM THE PUBLIC There were no public comments. LAW ENFORCEMENT REPORT Deputy Lillibridge presented the Law Enforcement Report and reviewed the law enforcement incidents in the areas surrounding the District during the month. He further gave a comparative analysis of crime statistics for the District for 2017 and There was discussion about the gate being open at the Wastewater Treatment Plant (WWTP). Mr. Arrant said they will verify the gate is locked when the leave and return. Upon motion by Director Puder, seconded by Director Felton, the Board voted unanimously to approve the Law Enforcement Report.

2 AUDIT REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2018 (due Feb. 12) Mr. Roach informed the Board that the District s auditor is still preparing the audit report and recommended that the Board conduct a special meeting to discuss the audit report with the District s auditor. The Board concurred to schedule a special meeting on January 29, 2019 at 7:00 p.m. and took no action at this time. TAX ASSESSOR/COLLECTOR REPORT Ms. Flores presented the Tax Assessor/Collector Report including the checks presented for payment, a copy of which is attached hereto as Exhibit A. Upon motion by Director Cain, seconded by Director Felton, the Board voted unanimously to approve the Tax Assessor/Collector Report, including payment of checks therein. RESOLUTION GRANTING EXEMPTIONS FROM TAXATION FOR 2019 Mr. Roach presented the Resolution Granting Exemptions from Taxation for 2019, a copy of which is attached hereto as Exhibit B, and he explained the exemptions available under Section of the Texas Tax Code for 2019 and noted the prior years exemptions adopted by the Board. After discussion, Director Cain moved to adopt the Resolution to include: (1) an increase to an $85,000 exemption for individuals who are over 65 years of age and under a disability according to applicable federal statutes; and (2) a general homestead exemption of ten percent (10%); which is no change from the prior year. Director Miller seconded said motion, which carried unanimously. RESOLUTION AUTHORIZING ADDITIONAL PENALTY ON DELINQUENT PERSONAL PROPERTY TAXES Mr. Roach presented the Resolution Authorizing Additional Penalty on Delinquent Personal Property Taxes, a copy of which is attached hereto as Exhibit C, and noted that pursuant to applicable sections of the Texas Tax Code the District can levy an additional penalty of up to twenty percent (20%) to cover the costs of collections on any delinquent personal property tax accounts as of February 1st each year. After discussion, Director Puder moved to authorize the additional penalty on delinquent personal property taxes per the Tax Code and adopt the Resolution as presented. Director Cain seconded said motion, which passed unanimously. SALES REVENUE INC. ( SRI ) REPORT REGARDING SPA REVENUE The Board discussed the lack of SRI reports and discussed review of the contract requirements for same at the next meeting. GENERAL MANAGER REPORT AND ADMINISTRATION/ACTIVITIES BUILDING ( BUILDING ) UPDATE Director Miller presented the General Manager Report, a copy of which is attached as

3 Exhibit D. Director Miller gave an update on the Senior Citizen lunch that occurred and informed the Board that the City of Houston donated space heaters and Christmas trees for the District s seniors. Additionally, Director Miller discussed a Senior Citizen s trip to Galveston. Additionally, Director Miller updated the Board on the new county judges and said that he is attempting to schedule a meeting between the Senior Citizens and one of the county judges. The Board then discussed an award that the District received from the City of Houston and discussed allowing Director Miller to appear in a magazine to receive the award on behalf of the District. Director Puder, seconded by Director Simon, moved to authorize Director Miller to appear on behalf of the District in the magazine to receive the award. The motion passed unanimously. Next, the Board discussed an update on the possibility of installing security cameras in the Ashcreek subdivision. Director Miller informed the Board that an Ashcreek resident has authorized a security camera to be installed in her yard and that Pape-Dawson is completing the necessary paperwork to submit to RMPLLC to review. The Board was also informed that a security camera is planned to be installed at the second entrance of the Ashcreek subdivision on property owned by the District. The Board then discussed upgrading lighting and adding an additional security camera at the front gate of the WWTP. Next, the Board discussed postponing Building rentals due to pending renovations. Lastly, the Board discussed sponsoring various youth groups. Director Felton recommended sponsoring a group that is located within the District and indicated that he would follow-up with Director Miller to discuss the issue. Upon motion by Director Felton, seconded by Director Cain, the Board voted unanimously to approve the General Manager s Report. OPERATION AND MAINTENANCE REPORT Mr. Arrant presented the Operation and Maintenance Report, a copy of which is attached hereto as Exhibit E. He reviewed the water accountability for the month and the quality of the bacteriological samples. Additionally, he reviewed the cut-off list. Director Puder then made a motion to approve the Operation and Maintenance Report, including the cut-off list. Director Miller seconded said motion, which carried unanimously. ENGINEER S REPORT Mr. Handal presented the Engineer s Report, a copy of which is attached as Exhibit F, and discussed updates on the items reflected in said report. He informed the Board that the piping project at the lift station is complete and that Pape-Dawson is waiting for a draft permit to be issued by the Texas Commission on Environmental Quality ( TCEQ ). He next informed the Board that

4 the street lights have been installed and the project is complete. He stated that the generator should be delivered soon subject to it being manufactured timely. Director Puder requested that Mr. Handal and Mr. Arrant compile a list of upcoming, significant expenditures for the District. After no questions, Director Puder made a motion to approve the Engineer s Report. The motion was seconded by Director Felton and passed unanimously. REVIEW PROPERTY OWNERSHIP ISSUES, INCLUDING EAST GROUP LIFT STATION AND DISTRICT PROPERTIES IN ASHCREEK AND CORRESPONDING HOMEOWNERS ASSOCIATION COMMUNICATIONS Mr. Handal informed the Board that East Group was previously confused on the legal description of the property at issue and that Pape-Dawson is waiting on the deed to be signed by East Group. Mr. Handal said that East Group requested that he prepare a letter explaining the legal description issue which he had provided. He further informed the Board that he anticipates the deed to be completed within two (2) weeks. PROPOSED CONTRACT AMENDMENT FOR UPDATED ENGINEER S RATE SHEET Mr. Handal reviewed Pape-Dawson s current rate sheet and the new proposal. He further explained the differences and reasons for the requested increase and noted the rate sheet would become part of the current contract. After discussion, Director Puder, seconded by Director Felton, moved to approve the updated engineer s rate sheet as presented. The motion passed unanimously. I.T. AND WEBSITE CONSULTANT REPORT Mr. Jeremy Roach presented the I.T. and Website Consultant Report including recent website updates and analytics. He gave an update on the status of the new District devices. Mr. Roach (attorney) informed the Board that the devices could be rented and explained the legal consequences of renting versus buying the District devices. Mr. Roach also recommended that the District have District accounts used specifically for District business and that the Directors not use their personal accounts. He explained certain Public Information Act consequences of using a personal account to conduct District business. He further recommended that personal business only be conducted on personal devices and District business only be conducted on District devices. Mr. Jeremy Roach then further discussed with the Board their options for District devices going forward. Director Puder instructed Mr. Jeremy Roach to proceed as was originally discussed. Mr. Jeremy Roach informed the Board that he will place an order with Verizon as directed by the Board. Next, Mr. Jeremy Roach informed the Board that Verizon is recommending that the Board replace their current mifi devices. He then detailed the process for replacing the District s devices, including the mifi devices. The Board concurred to replace the District s mifi devices. Mr. Roach then gave an update on the status of the insurance for the District s drone. He

5 said that he is waiting for an update from Arthur J. Gallagher Risk Management Services, Inc. ( AJG ). After no further discussion, Director Cain, seconded by Director Felton, moved to approve the I.T. and Website Consultant Report. The motion passed unanimously. UPDATE ON DESIGN OF ADMINISTRATION/ACTIVITIES BUILDING UPGRADE PROJECT (SMITH & CO.) Mr. Turner discussed updates on the design of the Administration/Activities Building Upgrade Project and reviewed costs associated therewith. The Board then discussed lowering the budget by approximately $400,000 due to the appraisal of the existing Administration/Activities Building being approximately $800,000. Mr. Turner said he would have more information to present at the scheduled special meeting. Director Simon asked about breaking the project into two parts and Mr. Turner explained the risks associated therewith. Mr. Russell arrived at this time. STATUS OF ANNUAL EMINENT DOMAIN FILING WITH STATE COMPTROLLER FOR 2019 (due Feb. 1) Mr. Roach noted that government entities, including the District, which have eminent domain authority are required to file with the State Comptroller an annual report by February 1 each year. He further informed the Board that this has already been completed and this item may be removed from future agendas. BOOKKEEPER'S REPORT Mr. Russell presented the Bookkeeper's Report, a copy of which report is attached hereto as Exhibit G. He provided an update on the account transfers and checks for approval. He then gave an update on all account balances for the District. After no additional questions, Director Miller moved to approve the Bookkeeper s Report and the payment of invoices and checks presented therein. Director Felton seconded said motion, which carried unanimously. ATTORNEY S REPORT Mr. Roach gave an update on the current status of Dropbox and informed the Board that RMPLLC would resend instructions to the Directors on how to access District files. He then reviewed RMPLLC s 2019 Master Calendar for the year. After no further questions, Director Puder, seconded by Director Miller, moved to accept the Attorney s Report. The motion passed unanimously. POSSIBLE DISTRICT STRATEGIC PLANNING SESSION FOR 2019 The Board discussed scheduling a special meeting on a Saturday to conduct the District Strategic Planning Session for Director Simon informed the Board that he was recently

6 nominated for a mentorship award and that there would be a dinner in his honor. He asked the Board to consider sponsoring tickets for Director attendance. Director Miller moved to approve the purchase of ten tickets for a total amount not to exceed $600. Director Felton seconded the motion which passed unanimously. AUTHORIZE SOLICITATION OF BIDS FOR INSURANCE POLICY This item was previously discussed in the I.T. and Website Consultant Report PROPOSED CONTRACT AMENDMENT TO ADD BENEFITS FOR GENERAL MANAGER This matter was discussed in Executive Session and action taken afterwards pursuant to Texas Government Code Sec EXECUTIVE SESSION UNDER SECTIONS , , ET SEQ., TEXAS GOVERNMENT CODE The Board entered into executive session at 8:26 p.m. under Texas Government Code The Board reconvened in open session at 8:39 p.m. The Board asked Director Miller about the status of his health insurance currently and concurred in deferring the other General Manager contract amendments until the General Manager contract is due to be renewed. Director Puder then moved to increase the General Manager s health care stipend by $300 per month. The motion was seconded by Director Felton and passed unanimously. The Board then reentered into executive session at 8:41 p.m. for consultation with their attorney. The Board then reconvened in open session at 9:00 p.m. Director Puder then moved to engage an I.T. security consultant to inspect the District devices with a budget not to exceed $3,000. The motion was seconded by Director Felton and passed unanimously. DISCUSSION REGARDING PENDING/FUTURE MATTERS There was no discussion. ADJOURNMENT There being no further matters to come before the Board, Director Puder moved to adjourn the meeting. The motion was seconded by Director Felton and passed unanimously. Passed and approved this day of, Secretary,

7 [SEAL] Board of Directors LIST OF EXHIBITS Exhibit A Tax Assessors/Collector s Report Exhibit B Resolution Granting Exemptions from Taxation for 2019 Exhibit C Resolution Authorizing Additional Penalty on Delinquent Personal Property Taxes Exhibit D General Manager s Report Exhibit E Operations and Maintenance Report Exhibit F Engineer s Report Exhibit G Bookkeeper s Report