MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 18. December 8,2014

Transcription

1 MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 18 December 8,2014 The Board of Directors (the "Board") of Harris County Municipal Utility District No. 18 of Harris County, Texas (the "District"), met in regular session, open to the public, on the 8th day of December, 2014, at the offices of Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2400, Houston, Texas, outside the boundaries of the District, and the roll was called of the members of the Board: Arved White Roy A. Beversdorf Michael L. Murr Robert A. Bernardini Karl Skarboszewski 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 Alan K. Sandersen of Sanders en Knox & Co., LLP; Wendy Austin of District Data Services, Inc.; Ray Arce of Wheeler & Associates, Inc.; Pam Madrigal of AEI Engineering, Inc. ("AEI"); Chris Oliver of Eagle Water Management, Inc. ("Eagle"); and Adisa Harrington and Rebecca Hudman of Allen Boone Humphries Robinson LLP ("ABHR"). COMMENTS FROM THE PUBLIC MINUTES There were no comments from the public. The Board considered approving the minutes of the November 10, 2014, meeting. After review and discussion, Director Beversdorf moved to approve the minutes of the November 10, 2014, meeting as presented. Director Bernardini seconded the motion, which passed unanimously. AUTHORIZE AUDITOR TO CONDUCT AUDIT FOR FISCAL YEAR END DECEMBER 31,2014 Mr. Sandersen stated that the Board previously executed an engagement letter with Sandersen Knox & Co., LLP, to perform the District's audit for the fiscal year ending December 31, Following review and discussion, Director Beversdorf moved to authorize Sandersen Knox & Co., LLP, to conduct the audit for the District's fiscal year ending December 31, Director Bernardini seconded the motion, which carried unanimously.

2 FINANCIAL AND BOOKKEEPING MATTERS Ms. Austin reviewed the bookkeeper's report, including the energy consumption report, budget comparison, and schedule of investments, and presented the District's bills for payment. A copy of the bookkeeper's report is attached. Ms. Austin reported that out-of-district customer Billy Audish has sold his property. Discussion ensued, and the Board requested that ABHR draft the necessary documentation to assign the existing outof-district Service Agreement from Mr. Audish to the new owner. After review and discussion, Director Skarboszewski moved to approve the bookkeeper's report and payment of the bills. Director Bernardini seconded the motion, which passed unanimously. ADOPT BUDGET FOR FISCAL YEAR END DECEMBER 31,2015 Ms. Austin reviewed the budget for fiscal year end December 31, A copy of the budget is attached to the bookkeeper's report. She noted that line items for park legal and park engineering fees will be reflected in the new budget. She then reviewed the regional wastewater treatment plant budget. Following review and discussion, Director Skarboszewski moved to adopt the District's budget for fiscal year end December 31, 2015, as discussed, and the regional wastewater treatment plant budget. Director Bernardini seconded the motion, which passed unanimously. ORDER ADOPTING PROCEDURES FOR CONTINUING DISCLOSURE COMPLIANCE Ms. Harrington stated that, when the District issues bonds, the District enters into a continuing disclosure undertaking for the benefit of the bondholders. Ms. Harrington added that the provisions of the undertaking require that the District comply with certain continuing disclosure requirements (the "Requirements") for its bonds. Ms. Harrington explained that the Board of Directors is ultimately responsible for continuing disclosure compliance for its bonds, with assistance by its consultants. Ms. Harrington added that, in order to ensure that the District's procedures for continuing disclosure compliance are well documented, ABHR recommends that such procedures be adopted in writing by the Board of Directors. Ms. Harrington reviewed the Order Adopting Procedures for Continuing Disclosure Compliance with the Board of Directors. Following review and discussion, Director Beversdorf moved to adopt the Order Adopting Procedures for Continuing Disclosure Compliance and direct that the Order be filed appropriately and retained in the District's official records, subject to confirmation of legal fees. Director Bernardini seconded the motion, which passed by unanimous vote. TRAVEL REIMBURSEMENT GUIDELINES AND DIRECTOR EXPENSES FOR ASSOCIATION OF WATER BOARD DIRECTORS WINTER CONFERENCE The Board discussed the Association of Water Board Directors winter conference. After discussion, Director Beversdorf moved to authorize hotel rooms for two nights, per -2

3 diems for the Directors for three days, and three meals per day. Director Bernardini seconded the motion, which carried unanimously. TAX ASSESSMENT AND COLLECTIONS MATTERS Mr. Arce reviewed with the Board the tax assessor/collector's report and the delinquent tax roll, copies of which are attached. He reported that 3.73% of the 2014 taxes had been collected as of November 30, Following review and discussion, Director Beversdorf moved to approve the tax assessor/collector's report and payment of the tax bills. Director Skarboszewski seconded the motion, which carried unanimously. ENGINEER'S REPORT Ms. Madrigal reviewed the engineer's report, a copy of which is attached. Ms. Madrigal gave an update on Lake Forest Plant Advisory Council ("LFPAC") activities. Ms. Madrigal and Ms. Harrington reported that they are awaiting receipt of the electricity bills from the Hidden Falls homeowners association in connection with determining whether expenses for the existing meter can be split with the homeowners association or whether a separate meter is needed for homeowner amenities at the detention pond. Following review and discussion, and based upon the engineer's recommendation, Director Bernardini moved to accept the engineer's report. Director Beversdorf seconded the motion, which carried unanimously. REVIEW CAPITAL PROTECTS PLAN No action was necessary on this matter. EMERGENCY RESPONSE PLANS No action was necessary on this matter. OPERATION OF DISTRICT FACILITIES AND HEARING ON TERMINATION OF WATER AND SEWER SERVICE Mr. Oliver presented the operator's report, a copy of which is attached, and reported on maintenance work in the District. He stated that the District's water accountability for the previous month was 96%. The Board reviewed the delinquent account list and Director Beversdorf requested that Mr. Oliver check the status of the Shelley Burgess account because the house was recently sold. -3

4 Mr. Oliver stated that the customers on the termination list were mailed written notice prior to this meeting notifying them of the opportunity to appear before the Board to explain, contest, or correct the utility service bill and to show reason why utility service should not be terminated because of nonpayment, all as required by the District's Rate Order. A copy of the termination list is attached to the operator's report. After review and discussion, Director Beversdorf moved to (1) accept the operator's report; and (2) terminate service to the customers on the termination list because no customers were either present at the meeting or had presented any written statement on the matter. Director Bernardini seconded the motion, which carried unanimously. UPDATE ON WATER SMART PROGRAM Directors Murr and Beversdorf discussed the Water Smart application. SALE OF SERIES B GROUNDWATER CREDITS Ms. Harrington reported that the District has 37,256,000 Series B groundwater credits available for purchase. The Board discussed raising its sale price for Series B groundwater credits. After review and discussion, Director Beversdorf moved to increase the sale price for Series B groundwater credits from $2.00 per 1,000 gallons to $4.20 per 1,000 gallons. Director Bernardini seconded the motion, which carried unanimously. DISCUSS PROPOSED CONVEYANCE OF TRACT TO THE DISTRICT FOR DEVELOPMENT AS A PARK AND AUTHORIZE ACCEPTANCE OF DEED The Board discussed the proposed conveyance of an 8-acre tract to the District for development as a park. Director Murr discussed the possibility of grading the park for a future trail and requested that the District engineer confirm whether CenterPoint will allow grading of the property in connection with installation of a trail. Ms. Harrington discussed insurance coverage for the proposed park. Mr. Madrigal reported that a Phase 1 environmental assessment for the tract is underway and that a survey of the tract will be prepared once the environmental assessment is complete. The Board tabled action on the conveyance, pending completion of the environmental assessment and preparation of the survey. NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY ("NHCRWA") No report was given on this matter. LAKE FOREST PLANT ADVISORY COUNCIL ("LFP AC') Director White gave an update on LFP AC matters. -4

5 CONSTABLE SECURITY PATROL Director Beversdorf reviewed the security report, a copy of which is attached. DISTRICT WEBSITE CONTENT Director Beversdorf gave an update on the District's website. REVIEW ACTION LIST The Board reviewed the action list from the previous meeting. There being no further business to come before the Board, the meeting was adjourned. Secretary, Board of Directors -5

6 ACTION LIST New Items: 1. ABHR will draft the necessary documentation to assign the existing out-of-district Service Agreement from Mr. Audish to the new owner. 2. Eagle will check the status of the Shelley Burgess account and report back to the Board. 3. AEI will confirm whether CenterPoint will allow grading of the proposed park for a future trail. Pending Items: 1. ABHR and AEI will obtain additional information regarding the current electricity usage of District and amenity facilities in Hidden Falls that share the existing electricity meter. 2. Eagle will follow-up on the alarm permits with Harris County. LIST OF ATTACHMENTS TO MINUTES Page Bookkeeper's report... 2 Tax assessor/collector' s report... 3 Delinquent tax roll... 3 Engineer's report... 3 Operator's report... 3 Termination list... 4 Security report