MINUTES OF REGULAR MEETING OF HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 168 OF HARRIS COUNTY, TEXAS January 9, 2018 The Board ofdirectors (the "Board") ofharris County Municipal Utility District No. 168 ofharris County, Texas (the "District"), met in regular session, open to the public, on January 9, 2018, at 6:00 p.m., at the District office located at 9818 Paddock Court, Houston, Texas 77065, and the roll was called ofthe duly constituted officers and members ofthe Board, to-wit: Thomas L. Tanous, Sr. James S. Busch Wendell R. ("Bob") Barron Nace Peard Jo Ann Montgomery President Vice President Assistant Secretary/Investment Officer Secretary Assistant Secretary and all ofsaid persons were present, thus constituting a quorum. Also present during all or portions of the meeting were Otto Maresh of the Steeplechase Community Improvement Association ("SCIA"); Allen Dejonge of 1190 Designs; Mat Funk of Clark Condon; John Sherrington of Sherrington-Humble LLC ("S-H"); Cathy Falke of Environmental Development Partners ("EDP"); Jorge Diaz and Karen Sears of McLennan & Associates, L.P.; Michelle Guerrero ofbob Leared Interests, Inc. ("BLI"); and Joel Cleveland and Olivia Galvan ofjeanne H. McDonald, P.C. PUBLIC COMMENTS MINUTES There were no public comments. The Board then considered the minutes ofits regular meeting held on December 12, 201 7. After discussion, Director Tanous moved to approve the minutes of the December 12, 2017, meeting as presented. Director Busch seconded the motion, which passed unanimously. ACTION LIST SECURITY There was no action list. A copy ofthe Security Report for December 2017 was distributed and is attached hereto. J:\HC168\Min 18\01-09-18r.docx Page 1 of7
LAW ENFORCEMENT SERVICES CONTRACT Mr. Cleveland then presented the new Interlocal Agreement for Law Enforcement Services between the District and Harris County, stating that it includes a 3% increase in cost to the District. Director Montgomery moved to approve the Interlocal Agreement for Law Enforcement Services. Director Peard seconded the motion, which passed unanimously. TAX ASSESSOR/COLLECTOR Ms. Guerrero presented the Tax Assessor/Collector's report for the month ofdecember 2017, a copy ofwhich is attached hereto. She stated that as ofdecember 31,2017, the District's 2017 taxes were 57.878% collected. After discussion, Director Tanous moved to approve the Tax Assessor/Collector's Report and authorize payment ofthe bills. Director Barron seconded the motion, which passed unanimously. DELINQUENT TAX ATTORNEY AUDIT There was no report. This item was tabled. TAX RESOLUTIONS (a) Adopt Resolution Concerning Tax Collection Procedures. Mr. Cleveland then presented for the Board's consideration the Resolution Concerning Tax Collection Procedures. He stated that the resolution is consistent with the Board's previous resolutions, which authorized sending all bills, did not allow split payments, and did not give a discount for early payment oftaxes. Action was taken below. (b) Adopt Resolution Concerning Exemptions from Taxation. Next, Mr. Cleveland presented the Resolution Concerning Exemptions from Taxation. He stated that the resolution is consistent with the Board's previous resolutions, which did not grant a general residential homestead exemption but did adopt a $20,000 exemption of the appraised value of residence homesteads of those individuals under Federal Old-Age, Survivors, and Disability Insurance or who are sixty-five (65) years ofage or older. Action was taken below. (c) Adopt a Resolution Levying an Additional 20% Penalty for Personal Property Tax Collection Costs: Mr. Cleveland then presented for the Board's consideration the Resolution Levying an Additional 20% Penalty for Personal Property Tax Collection Costs. He stated that the Page 2 of7
resolution is consistent with the Board's previous resolutions, which provided for an additional twenty percent (20%) penalty to attach to delinquent personal property taxes and provided for the collection ofsuch taxes beginning on April 1. Action was taken below. (d) Approve Contract with Delinquent Tax Attorney, ifneeded, and Adopt Resolution Providing for Additional Penalty for Tax Collection Costs. Mr. Cleveland then presented for the Board's consideration the Resolution Providing for Additional Penalty for Tax Collection Costs. He stated that the resolution is consistent with the Board's previous resolution, which provided for an additional twenty percent (20%) penalty to attach to those accounts with real property taxes remaining delinquent on July 1. He stated that the additional penalty covers the cost of collection of such delinquent taxes. He stated that the District has an evergreen contract with Perdue, Brandon, Fielder, Collins, & Mott, LLP. Action was taken below. After discussion, Director Montgomery moved to adopt the Resolution Concerning Tax Collection Procedures, the Resolution Concerning Exemptions from Taxation, the Resolution Levying an Additional 20% Penalty for Personal Property Tax Collection Costs, and the Resolution Providing for Additional Penalty for Real Property Tax Collection Costs, as presented. Director Peard seconded the motion, which passed unanimously. BOOKKEEPER Mr. Diaz then presented the Bookkeeper's Report for December 13,2017, through January 9, 2018, and an Investment Report for December 2017, copies ofwhich are attached hereto. He reported 26.32 month and 38.72 month reserves in the District's operating account based on budgeted expenses and actual year-to-date expenses, respectively. After discussion, Director Tanous moved to approve the Bookkeeper's Report, the Investment Report, and payment of the bills indicated in the report. Director Buschsecondedthe motion, whichpassedunanimously. OPERATOR Ms. Falke then presented the Operator's report dated January 9, 2018, a copy ofwhich is attached hereto. She reported a 99.6% accountability for December 2017 and a twelve-month accountability average of95.4%. Action was taken below. a. M&R Report: Maintenance and Repair Report Ms. Falke reviewed the maintenance and repair items with the Board. She also reported that a pipe adjacent to the jogging trail was retagged with graffiti and that her crew will remediate the graffiti. Ms. Falke also presented an estimate for the removal oftwo fire hydrants ata cost of$2,950.00 per hydrant at the request ofthe District's engineer. Mr. Sherrington then reported that the two hydrants recommended for removal cover the same service area as hydrants operated by the neighboring City ofjersey Village and are not necessary. Action was taken below. Page 3 of7
b. CWorine and Bacteriological Reports Ms. Falke reviewed the chlorine and bacteriological reports for December 2017. c. STP: Steeplechase Joint Operations Sewage Treatment Plant Matters Ms. Falke reported on maintenance and repair items at the STP. After discussion, no action was necessary. d. Utility Termination Ms. Falke presented the delinquent report dated January 2, 2018. Action was taken below. After discussion, Director Tanous moved to approve the Operator's Report, approve removal ofthe two fire hydrants at a cost of $2,950.00, and terminate service to those customers on the delinquent list. Director Barron seconded the motion, which passed unanimously. ENGINEER'S REPORT/FIBER OPTIC INSTALLATION Mr. Sherrington reviewed with the Board the Engineer's Report dated January 9, 2018, a copy ofwhich is attached hereto. a. HCMUD 170 Regional Wastewater Treatment Plant Mr. Sherrington reported receipt ofcorrespondence from Corrpro regarding $12,500.00 still owed for work performed as part ofthe storage tank recoating project at Water Plant No.1 from Nations Industrial Services. He also reported that Corrpro informed S-H that Corrpro would be contacting the payment bond surety. No action was necessary. b. Rehabilitation ofsanitary Sewer Line Mr. Sherrington reviewed the status ofthe project to rehabilitate sanitary sewer collection facilities on Steepleway, reporting that the contractor, Texas Pride Utilities, LLC, has started televising the subject sanitary sewer lines. He then presented and recommended approval of the inspector's invoice from Project Surveillance, Inc. in the amount of $154.00. Action was taken below. c. Decorative Lighting Mr. Sherrington reported that the contractor, CFG Industries, LLC, has completed the recoating of the light fixtures along Eldridge. He then presented and recommended approval ofpay Estimate No.1 and Final in the amount of$8,750.00. He then presented and recommended approval ofthe inspector's invoiceinthe amount of$1,455.00. Action was taken below. Page 4 of7
d. Water Plant No.2 Mr. Sherrington reported that S-H is configuring the booster pump piping to facilitate the site layout. No action was necessary. e. Utility Reservation Mr. Sherrington reported on development issues in the District. No action was necessary. Mr. Sherrington reported that S-H solicited a proposal from Hahn Equipment Co., Inc. to upgrade the District's telemetry system. Mr. Sherrington reported that the contractor, WW Payton Corp., is replacing the impeller at Water Plant No.3 with a 12" full trim nickel aluminum bronze alloy impeller and that the replacement impeller is expected in early January. Mr. Sherrington then reported that Project Surveillance has been monitoring the fiber optic cable installations being performed by AT&T's subcontractors and that, to-date, the Inspector's observations have been communicated to the subcontractor. He also reported that no additional coring is expected and inquired whether the District wished to continue monitoring the fiber optic installations being performed by AT&T's subcontractors. Action was taken below. After discussion, Director Tanous moved to approve the Engineer's Report; approve payment ofinvoice to Project Surveillance, Inc. in the amount of$154.00 for inspection services related to the rehabilitation of the sanitary sewer line; approve Pay Estimate No. 1 and Final in the amount of $8,750.00 to CFG Industries, LLC; approve payment ofinvoice to Phoenix Coating Surveillance LLC in the amount of$1,455.00 for inspection services related to the re-coating of30 street lamp posts; and discontinue monitoring of the fiber optic cable installations being performed by AT&T's subcontractors. Director Montgomery seconded the motion, which passed unanimously. FIBER OPTIC INSTALLATION The Boarddirected the District's attorney to send AT&T a bill for damages relatedto the fiber optic installations after the operator completes its ongoing manhole and watervalve survey. LANDSCAPING MAINTENANCE DirectorBuschreportedontheconditionoftheDistrict'sfencing nearfetlockandpaddockway. DirectorBarronalso reportedcracksalongthe fencing andsuggestedpowerwashing. Discussionensued regarding methods ofcleaning the District's fencing. After discussion, Director Busch stated that he will contact James Hardin and, if necessary, bring a proposal back to the Board for pressure washing the District's fencing. The Board then directed S-H to contact the Fencecrete America regarding the cracks inthedistrict's fencing andfor recommendations onmaintenancesmeasures. Page 5 of7
Director Peardthen commented on conditions ofthe curb near Eldridge and Paddock Way. Mr. Cleveland then reminded the Board that the District does not have the authority to address issues with the curb. No action was taken. PARKS Mr. Funk then presented and reviewed with the Board a conceptual design of improvements proposed for the District's existing parks. Discussion ensued regarding coordinating a special board meeting in February with the SCIA to discuss the District's proposed park improvements. After discussion, Mr. Maresh stated that he will communicate with the SCIA and provide the District's attorney with possible dates for the special Boardmeeting. WEBSITE Director Busch then reported that the District's communications committee met and reviewed the proposed website services with website developer Allen Dejonge of 1190 Designs. Discussion ensued regarding the terms of the contract with 1190 Designs. Director Busch then recommended that the Board pursue the standard website design layout services at a cost of $1,400.00 and monthly hosting and maintenance services at cost of $250.00. After discussion, Director Busch moved to approve a contract with 1190 Designs for website development and maintenance, including the services discussed above, subject to attorney review. Director Barron seconded the motion, which passed unanimously. 2018 DIRECTOR ELECTION Mr. Cleveland reported that Directors Busch and Peard are up for re-election in May 2018. He also stated that the District will need to identify election judges and a polling location as soon as practicable. After discussion, the Board concurred to use its administration building as the polling location. BEST TRASH Mr. May then presented and reviewed the annual CPI adjustment rate for garbage collection services on behalf of Best Trash. He stated that the rate is increasing from $16.35 to $16.75 per month per residence, an increase of2.4%. Director Tanous then moved to approve the annual CPI adjustment rate for garbage collection services. Director Busch seconded the motion, which passed unanimously. NHCRWA There was no report. EXECUTIVE SESSION The Board concurred that there was no need for an executive session. l\hc168\min 18\Ol-09-18r.docx Page 6 of7
There being no further business to come before the Board, the meeting was adjourned. ~);2J s~a:rtf0{ Directors Minutes Security Report 1 Tax Assessor/Collector's Report 2 Bookkeeper's Report and Investment Report 3 Operator's Report 3 Engineer's Report 4 ACTION LIST Attorney Ms. Galvan will coordinate a special February meeting with the SCIA to discuss the District's proposed park improvements, upon receipt of dates from Mr. Maresh. Engineer S-H will contact Fencecrete America regarding repairs to the District's fencing along Fetlock and Paddock Way. Page 7 of7