MINUTES OF BOARD OF DIRECTORS MEETING March 18, 2014

Transcription

1 MINUTES OF BOARD OF DIRECTORS MEETING March 18, 2014 THE STATE OF TEXAS COUNTY OF HARRIS HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 109 The Board of Directors (the "Board") of Harris County Municipal Utility District No (the "District") met in regular session, open to the public, at the Atascocita Volunteer Fire Station Training Complex, Timber Forest, Humble, Texas, 77346, at 6:00 p.m. on March 18, 2014, whereupon the roll was called of the members of the Board, to wit: Owen Parker, President Glenn R. Bogs, Vice President Chris Green, Secretary Robin Sulpizio, Assistant Secretary Cheryl Moore, Treasurer/Investment Officer All members of the Board were present except Director Sulpizio. Also attending all or parts of the meeting were Mr. Clinton Gehrke and Mr. Chris Moss of Water Waste Water Management Services, Inc. ("WWW"), operator for the District; Mr. Matt Froehlich of Brown & Gay Engineers ("Brown & Gay"), engineer for the District; Mr. Tim Spencer of Ad Valorem Appraisals, tax assessor and collector for the District; Mr. Don Rutt of Donald Rutt, C.P.A., bookkeeper for the District; Mr. Dave Ciarella of Enhanced Energy Services ("EES"); and Ms. Emerald Lagow, paralegal, of Fulbright & Jaworski LLP, attorney for the District. The President called the meeting to order in accordance with notice posted pursuant to law, copies of the Certificates of Posting are attached hereto as Exhibit ''A," and the following business was transacted: 1. Minutes. The Board considered the proposed minutes of the meetings of February 18, 2014 and March 5, 2014, copies of which were previously distributed to the Board. Upon motion by Director Moore, seconded by Director Green, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the meetings of February 18, 2014 and March 5, 2014, as presented. 2. Receive comments from the public. There were no members of the public present at this time. Mr. Gerhke reported that WWW relocated the tap for Mrs. Van Buskirk. 3. Adopt Order Declaring Unopposed Candidates Elected to Office. Upon motion by Director Green, seconded by Director Bogs, after full discussion and the question being put to the Board, the Board voted unanimously to adopt the Order Declaring Unopposed Candidates Elected to Office, a copy of which is attached hereto as Exhibit 11 B." 4. Review Tax Collector's Report and authorize payment of certain bills. Mr. Spencer presented to and reviewed with the Board the Tax Assessor and Collector's Report for the month of February, 2014, a copy of which is attached hereto as Exhibit ~~c." Mr. Spencer noted that 92.07o/o of the District's 2013 taxes had been collected as of February 28, Upon motion by Director Bogs, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and

2 Collector's Report, and to authorize payment of check numbers 1518 through 1523 from the Tax Account to the persons, in the amounts, and for the purposes listed therein. 5. Review Bookkeeper's Report. Mr. Rutt presented to and reviewed with the Board the Bookkeeper's Report for the month of February 2014, the investment report, and a summary of the Strategic Partnership Agreement revenues, copies of which are attached hereto as Exhibit "D." Mr. Rutt reviewed with the Board the Quarterly Investment Report for the period ending February 28, 2014, a copy of which is attached hereto as Exhibit "E." Upon motion by Director Green, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper's Report and to authorize the payment of checks to the persons and for the purposes listed therein, and to approve the Quarterly Investment Report for the period ending February 28, Review and approve the Quarterly Investment Report. This item was approved under the Bookkeeper's Report. 7. Engineer's Report. Mr. Froehlich presented to and reviewed with the Board the Engineer's Report, a copy of which is attached hereto as Exhibit "F." Mr. Froehlich presented to and reviewed with the Board the contract, payment and maintenance bonds, and insurance for Water Plant No. 1 Groundwater Storage Tank Rehabilitation Project, copies of which are attached to the Engineers Report. Mr. Froehlich stated that BlastCo is ready to begin work on the project upon receipt of the executed contracts, and requested that the Board execute and authorize F&J to release the contracts to BlastCo, subject to review and approval of the bonds and insurance. Mr. Froehlich reported that the quote from BlastCo had been revised to include a roof hatch and vent repair that should be replaced since the tank is being blasted. Mr. Froehlich reported that Brown & Gay confirmed the definition of ESFCs with the TCEQ, and the District is well below the 3,300 ESFCs threshold requiring the submittal of a Conservation and/or Contingency Plan. He stated that Brown & Gay does not recommend changes to the District's Drought Contingency Plan at this time. The Board directed F&J to prepare a Resolution for the District's record, stating the plan was reviewed and re-adopted without change. Mr. Froehlich noted there was no update on the Doanne Annexation. Mr. Froehlich noted there was no update on the Pointdexter Office Building at 6112 Upper Lake Drive. Mr. Froehlich reported that Brown & Gay received a capacity request from ALJ Lindsey in the amount of 2,100 gpd of water and 1,600 gpd of sanitary sewer capacity, or 5 ESFCs, to serve a proposed Starbucks at the northwest corner of FM 1960 and Timber Forest Drive. Mr. Froehlich stated that the District has this capacity available and requested authorization to issue a capacity commitment to ALJ Lindsey, LLC. Mr. Froehlich noted that such capacity commitment will replace the usage of the Car Wash. 2

3 Mr. Froehlich reported that Brown & Gay advertised and received competitive bids for the clearing and grubbing, and utility projects for Rivergrove Sections 1 and 2. Mr. Froehlich presented to and reviewed with the Board the letters from Brown & Gay recommending award, and bid tabulations for each of the three Rivergrove projects, copies of which are attached to the Engineers Report. Brown & Gay recommends award of the Construction Contract for the cleaning and grubbing of Rivergrove Sections 1 & 2 to Triple B Services, LLP, in the amount of $97, Mr. Froehlich reported that Brown & Gay recommends award of the construction contract for utilities to serve Rivergrove Sections 1 & 2 to Crostex Construction, Inc., in the amounts of $229, and $152,464.00, respectively. Mr. Froehlich reported that Rivergrove Sections 3 and 4 will be ready to advertise shortly, with bid openings scheduled to occur between the Board Meetings in April and May. Mr. Froehlich noted that Mr. Bynum had asked that the Board consider holding a special meeting between the April and May Board meetings to review the bids. Mr. Froehlich presented to and reviewed with the Board the letter to Dr. Guniganti, a copy of which is attached to the Engineers Report. Mr. Froehlich noted that Brown & Gay met with Dr. Guniganti and his attorney, Mr. Gregg Mielke, on February 13, 2014 to discuss the status of the plans for Kings Lakes Estates, Section 8, and to move forward with updating and obtaining approval for such plans. Mr. Froehlich reported that Brown & Gay received a check from Dr. Guniganti for the outstanding invoices on work completed earlier today, and that Brown & Gay will wait for the check to clear before beginning any additional work. Mr. Froehlich noted that Dr. Guniganti and Mr. Mielke stated they would be contacting the Board shortly regarding a reimbursement agreement. Mr. Froehlich noted there was no update on the Kannan Partnership. Director Moore noted that she had not seen the plans for the Rivergrove development, and Mr. Froehlich presented to and reviewed with the Board the plan for the entry road at Rivergrove, Section 1, and the model home section at Rivergrove, Section 2. Upon motion by Director Green, seconded by Director Bogs, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer's Report; to authorize the President to execute the contract with BlastCo for Water Plant No. 1 Ground Storage Tank Rehabilitation, and to authorize F&J to review and release the contracts to BlastCo; to authorize the attorney to prepare a resolution for review and re-adoption of of the District's Drought Contingency Plan; to approve the capacity commitment request to serve the proposed Starbucks, and to authorize issuance of a capacity commitment letter to ALJ Lindsey, Inc.; and to authorize award of the contract for cleaning and grubbing of Rivergrove Sections 1 & 2, and the contracts for construction of utilities to serve Rivergrove Sections 1 & 2 to Triple B Services, LLP ($97,423.50) and Crostex Construction, Inc. (Section 1 - $229,759.01, Section 2- $152,464.00), respectively. 8. Authorize capacity commitments. This item was addressed under the Engineers Report. 9. Discuss and take any action in connection with annexation matters (18- Acre Tract). There was no report on this item. 10. Developer's Report. This item was addressed under the Engineer's Report. 3

4 11. Discuss status of preparation of GIS System by GIS Solutions (Wilson McCoy). There was no report on this item. 12. Discuss and take necessary action in connection with the sale of groundwater credits to the North Harris County Regional Water Authority ("NHCRWA"). The President reported that the District received a check from NHCRWA in the amount of $33, for the purchase of 82,488,000 gallons of the Districts Series B Groundwater Credits. This purchase was in accordance with the letter agreement dated October 25, 2013, and accepted on November 19, Review Operations Report and authorize repairs. Mr. Gherke introduced Mr. Moss, and noted that Mr. Moss will be overseeing the District's operations in the absence of Mr. Green, who fell ill and has taken leave for an indefinite period. Mr. Gherke presented to and reviewed with the Board the Operations Report for the month of February 2014, the lift station flow report, and a list of delinquent accounts, copies of which are attached hereto as Exhibit "G." Mr. Gherke reported that 94%, of the water pumped was billed for the period ending February 28, Mr. Gherke reviewed with the Board the letter from a resident on Shane Lane, requesting adjustment on their bill due to a leak occurring over a period of three months. The Board directed Mr. Gherke to bill the resident for the average of the previous six months of water and sewer usage, and noted that the resident will still be responsible for the pumpage fees incurred over the period. Director Green stated that she had spoken with a resident at 5326 Misty Moon, who had received a call from WWW regarding a potential leak but had not heard anything since, and inquired whether WWW had followed up with the resident. Mr. Moss reported he had investigated a potential leak at several houses in the area, but had not been able to determine whether the water was the result of rain or a leak. Mr. Moss noted that WWW will investigate the site tomorrow to verify the cause. In response to a question from Director Green, Mr. Gherke stated that he will meet with the contractor for Centerpoint tomorrow in regard to the leaning electricity pole on Bambiwoods. Mr. Gherke reported that WWW was contacted by a resident requesting that the District replace the first two sections of their driveway that were damaged after settling around a storm sewer bored beneath the driveway. Mr. Gherke reported that WWW investigated the issue and found that the District had installed the sewer line to accommodate the cui de sac. The President reviewed a letter from North Harris County Regional Water Authority ("NHCRWA'J regarding the increase in well pumpage fees and the cost of surface water effective on April 1, 2014, a copy of which is attached hereto as Exhibit "H". The President recommended that the Board distribute a letter notifying District residents of the increased rates. Upon motion by Director Bogs, seconded by Director Moore, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operations Report and to authorize termination of service to those accounts on the delinquent list; and to authorize the President to prepare and distribute a letter to the District's constituents notifying them of the NHCRWA rate increases. 4

5 14. Discuss and set date for special meeting to review consultant contracts. The President recommended that the Board meet in special session for a Contract Review Workshop on Tuesday, Apri11, Other matters. The President introduced Mr. Ciarella, who reviewed with the Board potential energy savings. Mr. Ciarella presented a Letter of Authorization for the Release of Historical Usage Information for execution, a copy of which is attached hereto as Exhibit 11 1," and noted such release is to obtain further information from CenterPoint regarding the District's energy usage. There were no other matters at this time. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned. * * * 5

6 The above and foregoing minutes were passed and appr on April15, 2014 d by the Board of Directors ATTEST: President, Board of Directors (DISTRICT SEAL) 6