MINUTES HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 264. October 17, 2018 The Board of Directors (the ''Board'') of Harris County Municipal Utility District No. 264 (the ''District'') met in regular session, open to the public, on the 17th day of October, 2018, at Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2600, Houston, Texas, outside the bound~ries of the District, and the roll was called of the members of the Board: Russell Appelget Jose Nava Dormice Hoffman Charles E. Brandman Patty Rodriguez 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 Mike Harrington of American Enerpower; Stephen Swindell and Victor Saenz of Jones & Carter, Inc. (''J&C''); Wendy Austin of District Data Services Inc.; Ryan Fortner of Wheeler & Associates, Inc.; Don Self of Inframark Water & Infrastructure Operations (''Inframark''); and Sandra Staine and Anne-Marie Bradford of Allen Boone Humphries Robinson LLP ('' ABHR''). MINUTES The Board considered approving the minutes of the September 19, 2018, regular meeting, and the October 5, 2018 special meeting. After review and discussion, Director Rodriguez moved to approve the minutes, as presented. Director Brandman seconded the motion, which passed by unanimous vote. PUBLIC COMMENTS The Board did not receive any comments from the public. CONTRACT FOR ELECTRICITY Mr. Harrington reviewed an energy report on the electricity market and pricing for electricity service for the District's facilities, a copy of "Which is attached. After review and discussion, Director Hoffman moved to approve a contract for electricity (the ''Contract'') with Hudson Energy effective December 28, 2018, for 60 months at a price not to exceed $0.046 per kilowatt hour; authorize Director Appelget to execute the Contract; and direct that the Contract be filed appropriately and retained in the
District's official records. Director Rodriguez seconded the motion, which passed by unanimous vote. DISTRICT'S INSURANCE POLICIES The Board reviewed a proposal from HAR CO for the District's insurance policies with the Texas Municipal League (''TML''). Following review and discussion, Director Rodriguez moved to approve the proposal presented by HARCO for the insurance policies with TML, reflecting a one-year term for all policies, and direct that the proposal be filed appropriately and retained in the District's official records. Director Hoffman seconded the motion, which passed by unanimous vote. FINANCIAL AND BOOKKEEPING MATTERS Ms. Austin presented and reviewed the bookkeeper's report, a copy of which is attached. The Board discussed the budget and asked Ms. Austin to move the water treatment plant rehabilitation construction costs and engineering costs to the bottom of the budget worksheet. After review and discussion, Director Nava moved to approve the bookkeeper's report and payment of the bills. Director Hoffman seconded the motion, which passed by unanimous vote. TAX ASSESSMENT AND COLLECTION MATTERS Mr. Fortner reviewed the tax assessor/collector's report, a copy of which is attached, which reflects that 99.47% of the District's 2017 taxes have been collected as of September 30, 2018. The Board discussed the proper billing procedures for legal notice publication invoices. Ms. Staine stated she will research the proper procedures and report back to the Board. Following review and discussion, Director Rodriguez moved to approve the tax assessor/ collector's report, including payment of the tax bills. Director Brandman seconded the motion, which passed by unanimous vote. 2018 TAX RATE Mr. Fortner confirmed that Wheeler & Associates, Inc., published a Notice of Public Hearing stating that the District anticipates levying a total tax rate of $0.385 per $100 of assessed valuation at this meeting. Director Appelget then opened the public hearing. No members of the public came forward to make comments. Director Appelget then closed the public hearing. Ms. Staine presented to the Board an Order Levying Taxes for 2018 reflecting a total tax rate of $0.385 per $100 of assessed valuation, comprised of $0.112 for debt service and $0.273 for operations and maintenance. Ms. Staine next presented to the Board an Amendment to Information Form reflecting the 2018 tax rate. After review and discussion, Director Rodriguez moved to adopt the Order Levying Taxes as -2-
presented, approve and authorize execution of the Amendment to Information Form, and direct that the Order and the Amendment be filed appropriately and retained in the District's official records. Director Brandman seconded the motion, which passed unanimously. The Board confirmed its intention that the 2018 tax levy includes a debt service component for the calendar year ending December 31, 2019, and a maintenance tax component for the fiscal year ending March 31, 2019. OPERATOR'S REPORT Mr. Self presented and reviewed the operations and maintenance report, a copy of which is attached. He reported the water accountability for the prior month was 102% and updated the Board on maintenance and repairs conducted during the previous month. Mr. Self stated there are five accounts totaling $727.75 to forward to Collections Unlimited. Discussion ensued regarding one of the five accounts. He further recommended writing off one account totaling $11.47 deemed uncollectible. Mr. Self reviewed the preventative maintenance schedule and stated the well Mr. Self stated a District resident at 7722 Colony Point reported the sidewalk in front of their house is sinking and believes it is due to a leak in a District water line. Mr. Self reported that Inframark has investigated and saw no evidence of a leak. He reported the resident requested he ask the Board for permission to investigate further. After discussion, the Board concurred to deny the resident's request for Inframark to further investigate the sinking sidewalk. Mr. Self then reviewed proposals for the installation of an elevated walkway around the backup generator, including an updated proposal from Rage Industrial Solutions in the amount of $11,800.00. Mr. Self recommended proceeding with Rage Industrial Solutions. Mr. Self reported the Langelier sample testing has been completed and he will review the results at the next meeting. Following review and discussion, Director Nava moved to (1) approve the operator's report; (2) authorize Inframark to submit the recommended accounts to Collections Unlimited, except for one of the accounts as discussed; (3) authorize Inframark to write off the recommended account; and (4) authorize Inframark to enter into a contract with Rage Industrial Solutions on behalf of the District to install an elevated walkway around the backup generator in an amount not to exceed $11,800.00, as recommended. Director Hoffman seconded the motion, which passed unanimously. performance testing schedule has been updated to reflect that it is performed semiannually. -3-
HEARING ON TERMINATION OF WATER AND SEWER SERVICE Mr. Self presented a list of delinquent customers and reported the customers on the termination list were delinquent in payment of their water and sewer bills and were given written notification, in accordance with the District's Rate Order, prior to the meeting 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 Nava 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 Hoffman and passed by unanimous vote. WEST H ARRIS COUNTY REGIONAL WATER AUTHORITY (''WHCRWA'') MATTERS Director Appelget updated the Board regarding WHCRW A matters and discussed the ''Partners in Progress'' public forum scheduled for October 25, 2018. JOINT WASTEWATER TREATMENT PLANT MATTERS The Board discussed joint wastewater treatment plant matters. ENGINEERING MATTERS Mr. Saenz reviewed the engineer's report, a copy of which is attached. Mr. Saenz reported that the sanitary sewer force main project has been completed and the final inspection was held on October 16, 2018. Mr. Saenz updated the Board on the water plant improvements and reviewed a detailed project schedule and status memorandum. He stated J&C recommends replacing the generator panels instead of repairing the panels, as previously discussed, and presented and recommended approval of a proposal from Waukesha-Pierce in the amount of $9,627.00 for replacement of the generator panels. Mr. Saenz then requested authorization to advertise for bids for the water plant improvements project. Mr. Swindell stated the schedule for the lift station piping rehabilitation projects should be finalized soon. Mr. Saenz reviewed a list of the completed Ground Storage Tank No. 1 warranty repairs with the Board. After review and discussion, Director Brandman moved to (1) approve the engineer's report; (2) authorize Inframark to enter into a contract with Waukesha-Pierce -4-
on the Board's behalf to replace the generator panels in an amount not to exceed $9,627.00; (3) revise the scope of the water plant improvements project to remove the repair of the generator panels; and (4) authorize J&C to advertise for bids for the water plant improvements project. Director Nava seconded the motion, which passed by unanimous vote. ATTORNEY'S REPORT There w as no discussion on this matter. WATER CONSERVATION MATTERS There w as no discussion on this matter. DISTRICT WEBSITE MATTERS The Board discussed updates to the District website. DISCUSSION OF DISTRICT OUTREACH AND COMMUNITY RELATIONS There was no discussion on this matter. DISTRICT MEETING SCHEDULE The Board concurred to hold its next regular meeting on November 28, 2018, at 5:30 p.m. at ABHR and a special meeting on November 30, 2018, at 9:00 a.m. at Inframark to receive presentations from smart water meter companies. There being no further business to come before the Board, the meeting was adjourned on the motion of Director Rodriguez, which was seconded by Director Nava and passed by unanimous vote. (SEAL) -5-
LIST OF ATTACHMENTS TO MINUTES Minutes Page Energy report....... -:I.. Bookkeeper's report.......................................................................................................... ~ Tax assessor/ collector's report.... ~ Operations and maintenance report......................... ~ E I ng1neer s report........................................................................................ ~ -6-