NORTHWEST HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 24 Minutes of Meeting of Board of Directors June 6, 2017 The Board of Directors ( Board ) of Northwest Harris County Municipal Utility District No. 24 ( District ) met at 14446 Hollister Road, Houston, Texas, on June 6, 2017, 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, Director Clarence Miller, Director/General Manager all of said members were present, except for Director Simon, thus constituting a quorum. Also present were Bill Russell of Myrtle Cruz, Inc. ( Myrtle Cruz ); 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 ); Tara Klein of Four and One Landscaping ( 4&1 ); Jeremy Roach of Apollo IT Consulting, LLC ( Apollo ); Jonathan Roach and Shaila Shah of Roach & Mitchell, PLLC ( RMPLLC ); Derick Mendoza of Linebarger Goggan Blair & Sampson, LLP; and Deputy Phillip Lillibridge of Harris County Sheriff s Office ( HCSO ). The President called the meeting to order and declared it open for such business as might regularly come before it. Director Puder briefly discussed the status of the recent Ashcreek community events and stated that he is proud that the Board continues to give back to the community and is excited to discuss and plan future community events and improvements. MINUTES The Board then considered for approval the minutes from its regular meeting held May 2, 2017 and its special meeting held May 16, 2017. Mr. Roach stated that Mr. Handal noted a correction regarding the expectant mother signs and that RMPLLC revised the minutes accordingly. Upon motion by Director Puder, seconded by Director Cain, the Board voted unanimously to approve said minutes, as presented. Mr. Mendoza entered the meeting at this time. COMMENTS FROM THE PUBLIC There were no public comments.
LAW ENFORCEMENT REPORT Deputy Lillibridge presented the Law Enforcement Report for May and advised that there were two (2) reported incidents for the month. He also noted that there were teenagers loitering on Devoncrest late at night and that the officers would take appropriate action if need be. The Board then inquired if the officers could enforce deed restrictions, and Deputy Lillibridge stated that they do not have the authority. Director Miller suggested the Board consider sending notices to the residents regarding upkeep of the neighborhood, and Director Puder stated that he does not feel comfortable involving the Board in the homeowners association s responsibilities. After some discussion, the Board took no action at this time. TAX ASSESSOR COLLECTOR REPORT Mrs. Flores presented the Tax Assessor Collector Monthly Report including the checks presented for payment and delinquent collections listing, copies of which are attached hereto as Exhibit A. She stated that $10,000 was transferred to the bond fund for upcoming debt service payments and also noted that in addition to the litigation checks listed in the report, there were additional checks written. She then noted that the preliminary certified value of property within the District for 2017 is $641,765,192. Upon motion by Director Puder, seconded by Director Felton, the Board voted unanimously to approve the Tax Assessor Collector Monthly Report including payment of invoices. DELINQUENT TAX COLLECTION ATTORNEY REPORT Mr. Mendoza stated that collections are ongoing. Mr. Roach then reminded the Board that in certain instances the law allows the District to impose additional penalties on delinquent property taxes (personal and real) and that the Board had recently authorized imposition of said penalties on delinquent taxes. After discussion, Director Felton made a motion to authorize the delinquent tax attorney to begin collection of delinquent real property taxes on July 1, 2017. Director Puder seconded the motion, which passed unanimously. AUTHORIZE FILING OF UNCLAIMED PROPERTY REPORT Mr. Roach noted the requirements for submitting an annual unclaimed property report and escheating funds to the state, as applicable. Mr. Russel then noted that he would file an unclaimed property report for $301.60. Upon motion by Director Puder, seconded by Director Cain, the Board voted unanimously to authorize the Bookkeeper to file the unclaimed property report. AUTHORIZE REQUEST TO HARRIS COUNTY APPRAISAL DISTRICT FOR ESTIMATE OF VALUE Mr. Roach noted that he spoke with Ms. Anthea Moran, the District s Financial Advisor, regarding the Estimate of Value and that she had stated that it did not need to be requested at this time. The Board took no action at this time.
GENERAL MANAGER REPORT AND ADMINISTRATION/ACTIVITIES BUILDING ( BUILDING ) UPDATE Director Miller presented the oral General Manager s Report and noted that the deposits for the month of May totaled $4,318.84. He also noted that the Harris County Attorney, Vince Ryan, will meet with the senior citizens today and that the July senior program will be July 11, 2017. Director Puder then requested that the July 11, 2017 meeting be held at 6:30 p.m. The Board agreed. Director Miller then noted that the Building driveway project was completed on June 5, 2017. He also noted that the Building front door was broken and that parts were ordered for the repair. He then noted additional repairs made to the security system and the sprinkler system. The Board next discussed the wall/monument dedication and the Ashcreek Appreciation Day events held on June 3, 2017. Director Puder thanked Director Miller for his work on the event. Upon motion by Director Puder, 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 B. He noted that everything is operating as normal and there are no major repairs to report. Mr. Arrant noted that there was one (1) account on the cutoff list, which was paid. He also stated that the expectant mother signs for the parking lot were ordered. Mr. Arrant then updated the Board on the language in the Consumer Confidence Report ( CCR ) regarding the lead and copper reporting violation previously noted, and he advised that the language had been significantly revised to more accurately reflect the lab reporting matter. Mr. Arrant next discussed with the Board the possible fire hydrant repairs and painting. He stated that the fire hydrants have a protective coating on them and MOC will clean them. Mr. Arrant also reported that GM Services tested the wells in the District and that there were no major issues to report. Mr. Arrant then stated that he was approached by a Director in another District regarding participation in a pilot program to install sensors on all machinery driven by a motor. He discussed the scope of the pilot program with the Board, noted that there will be no cost to the District, and requested approval to participate in the program. Upon motion by Director Felton, seconded by Director Puder, the Board voted unanimously to approve the pilot program. Upon further discussion and a motion by Director Cain, seconded by Director Puder, the Board voted unanimously to approve the Operation and Maintenance Report. ENGINEER S REPORT Mr. Handal presented the written Engineer s Report, a copy of which is attached as Exhibit C, and discussed updates on the items reflected in said report. He stated that that the contractors completed most of the punch list items for the ground storage tank rehabilitation and that the Substantial Completion letter was prepared. He presented Pay Request No. 6 and Final in the amount of $15,480 and stated that he would hold the check until the punch list is complete. Upon motion by Director Felton, seconded by Director Puder, the Board voted unanimously to approve Pay Request No. 6 and Final in the amount of $15,480. Mr. Handal then reported that the Building
driveway reconfiguration project is complete pending a few minor punch list items. Mr. Handal presented and requested approval of Change Order No. 1 in the amount of $350 for the addition of wheel stops and Pay Request No. 1 and Final in the amount of $63,505. Upon motion by Director Felton, seconded by Director Puder, the Board voted unanimously to approve Change Order No. 1 in the amount of $350 and Pay Request No. 1 and Final in the amount of $63,505. Director Puder stated that he noticed ponding in the Building driveway near the front entrance. Mr. Handal stated that he would look into and discuss it with the contractors. He also stated that he would hold the Pay Request until the minor punch list items are complete. Mr. Handal next discussed the second Ashcreek entrance, and Mr. Roach stated that RMPLLC received the signed deed from Ms. Fry and Mr. Russel has wiring instructions for the closing. Mr. Handal reported that the survey for the area is complete and he is working on the design plans. He noted that he will meet with Harris County to discuss the road and the plans. Ms. Klein suggested extending the wall down the corridor and stated that if the Board is interested in the extension, it will have to be included in the plans to Harris County due to possible sight visibility issues. Mr. Handal then reported that Pape-Dawson completed the field surveying, requested the dry utility maps, and have started the design for the street light addition project. He stated that the plans will be submitted to Harris County within the next two weeks once all information is received. Director Miller inquired on the 30-day time frame Harris County requested for the plans to be submitted, and Mr. Handal stated that if the plans are submitted within the next two weeks, it will be within the 30 days. Mr. Handal next reported that he received a utility commitment request for approximately 19 acres near State Highway 249 and Hollister Street for a possible office building and warehouse development. He noted that the owner, Radler Enterprises ( Radler ), is requesting 14,500 gallons per day (or 58 ESFC at 250 gpd/esfc) of water capacity and related sanitary sewer capacity. He noted that Pape-Dawson completed the assessment of wastewater capacity and confirmed availability to serve the development without the need for a wastewater treatment plant expansion. Mr. Handal stated that RMPLLC prepared the commitment letter and submitted it to Radler but Radler responded with a request that language pertaining to a tap fee payment due from Radler for its Phase 4 commercial development be removed from the letter since Phase 4 has not been constructed yet. Mr. Roach and Mr. Handal discussed with the Board the payment plan that was originally agreed upon with Radler, and the Board discussed the possible development of Phase 4, the future tap and capacity requests, and the payment options. Upon motion by Director Puder, seconded by Director Miller, the Board voted unanimously to authorize Radler to pay their outstanding balance upon completion of the Phase 4 development or as otherwise outlined in an agreement with Radler and that the utility commitment letter for Radler s proposed office/warehouse development be issued without the payment contingency. Upon further discussion and a motion by Director Puder, seconded by Director Miller, the Board voted unanimously to approve the Engineer s Report.
OPTIONS FOR DESIGN OF PARK/TRAIL PROJECT Ms. Klein presented an oral report on the design for the park/trail project. She stated that the extension of the wall at the second Ashcreek entrance will be approximately $1,800 per panel for 14 feet of wall for an approximate total cost of $18,000. Director Puder requested a formal proposal with the cost estimate. Ms. Klein stated that Mr. Handal would include the wall extension in the plans to submit to Harris County and that it would be separately bid project form the street installation. Upon motion by Director Puder, seconded by Director Miller, the Board voted unanimously to complete the permitting to add the wall extension. Ms. Klein presented the proposal for design services for the pond area. The Board agreed to defer discussion regarding the design and proposal until later in the meeting. STATUS OF OPTIONS FOR REIMBURSEMENT, AND RELATED MATTERS FOR LIBERTY PROPERTY LIMITED PARTNERSHIP ( LIBERTY ) Mr. Roach stated that he is waiting for a response from Liberty regarding the final proposed settlement amount. Mr. Roach also noted that the prior proposal will need to be revised based on Liberty s most recent tax payments. I.T. AND WEBSITE CONSULTANT REPORT Mr. Jeremy Roach presented the I.T. report and updates on the District website including some website analytics. Mr. Jeremy Roach noted that the District s Google Business website page was receiving comments and he asked the Board how they would like to respond. Discussion ensued regarding the comments that have been posted and how to post responses. The Board agreed to authorize Director Felton to be the District s and Board s designated representative to address the comments. Mr. Jeremy Roach next discussed the ipads recently issued to the Directors. Director Puder stated that he upgraded his icloud memory, and the Board confirmed that he would be reimbursed for the expense. Mr. Jeremy Roach then discussed the Surface Pros or the laptops that would be issued to the Board to replace their older, outdated devices. Discussion ensued regarding the pros and cons of each and which devise the Directors preferred. Upon further discussion and motion by Director Puder, seconded by Director Felton, the Board voted unanimously to allow the Directors to choose between the Surface Pro, a laptop, or a desktop to be coordinated with Apollo. The Board also discussed the old desktops at the Building and how to dispose of them but no action was taken at this time. Mr. Jeremy Roach next stated that the cameras at the Water Plant are performing well. He then noted that he would discuss the updates to the NaviGate Prepared system with Mr. Arrant and suggested a possible special meeting with the Board to review the final details and user instructions for the NaviGate system. After further discussion, upon motion by Director Puder, seconded by Director Cain, the Board voted unanimously to approve the IT and Website Consultant Report.
AUTHORIZE EXECUTION OF VOTIGN SYSTEM ANNUAL FILING FORM Mr. Roach noted that the Board is required annually to file a form with the Secretary of State regarding the voting system(s) they may have used during the year, and he asked for authorization to complete and file the form. Director Puder, made a motion to authorize the filing of the voting system annual form as discussed. The motion was seconded by Director Felton and passed unanimously. Director Cain noted that he would like the Building to be a polling location for future state and local elections in addition to the District s elections. AUTHORIZE RECORDS MANAGEMENT OFFICER TO DESTORY OLD MEETING NOTES Mr. Roach asked the Board to consider approval of the destruction of old copies of prior Board meeting notes as allowed by applicable law. mhe reminded the Board that RMPLLC is retaining electronic copies of virtually all District records and that copies of all official meeting minutes are kept in perpetuity. Director Puder then made a motion to allow the records destruction of prior meeting notes per applicable law and the District s records retention policies. Said motion was seconded by Director Cain and passed unanimously. ATTORNEY S REPORT Mr. Roach stated that there is no new information regarding the electronic records and signatures at this time and that the real estate acquisition issue(s) will be discussed in closed session. BOOKKEEPER'S REPORT Mr. Russell presented the Bookkeeper's Report, including the checks and wire transfers presented for payment, a copy of which report is attached hereto as Exhibit D. Mr. Russell reviewed the current budget, stating that the District is over on both revenues and expenses. Mr. Russell next reviewed the Investment Report with the Board, and he noted that additional funds were transferred into the petty cash account for the Ashcreek appreciation day events with the current remaining balance being $35,000. He stated that the budget previously approved by the Board for the petty cash account is $10,000 and suggested leaving the current funds there and drawing on that account for expenses until the account eventually reaches the $10,000 amount. Upon no further questions and a motion by Director Puder, seconded by Director Felton, the Board voted unanimously to approve the Bookkeeper s report and payment of invoices. EXECUTIVE SESSION UNDER SECTIONS 551.072, 551.071, ET SEQ., TEXAS GOVERNMENT CODE The Board entered into executive session at 8:07 p.m. to discuss matters pertaining to acquisition of real property.
RECONVENE IN OPEN SESSION AND TAKE ACTION IF NECESSARY The Board reconvened in open session at 8:25 p.m. The Board noted the closing of the additional property for the park/trail project and then, upon motion by Director Puder, seconded by Director Felton, and voted unanimously to authorize the proposal from Ms. Klein for conceptual design services in the amount of $6,200. DISCUSSION REGARDING PENDING/FUTURE MATTERS Director Puder asked if there were any public comments but there were none. ADJOURNMENT There being no further matters to come before the Board, Director Puder moved that the meeting be adjourned. The motion was seconded by Director Cain and carried by unanimous vote, and the meeting was adjourned. [SEAL] Secretary, Board of Directors
LIST OF EXHIBITS Exhibit A Tax Assessor Collector s Report Exhibit B Operator s Report Exhibit C Engineer s Report Exhibit D Bookkeeper s Report