MINUTES OF MEETING OF BOARD OF DIRECTORS May 16, 2017 THE STATE OF TEXAS COUNTY OF HARRIS HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 55 The Board of Directors (the Board ) of Harris County Municipal Utility District No. 55 (the District ) met in regular session, open to the public, at 2300 Pilgrims Point, Webster, Texas, on Tuesday, May 16, 2017, whereupon the roll was called of the members of the Board, to-wit: Robert L. Squires, President Sam Longoria, Vice President Gabriel Mendez, Secretary Richard Klenk, Treasurer Malcolm Swinney, Assistant Secretary All members of the Board were present except Director Squires. Also attending all or parts of the meeting were Ms. Keli Schroeder of Brown & Gay Engineers, Inc. ( BGE ), engineers for the District; Mr. Chris Wilson of Si Environmental ( Si ), operators for the District; Ms. Vickey Sullivan of Equi-Tax, Inc., tax assessor and collector for the District; Ms. Kandy Pfeffer of ETI Accounting Services ( ETI ), bookkeeper for the District; Mr. Tom Hoff of the Forest Bend Fire Department; Mr. Tom Dillard of Champions Hydro-Lawn, Inc. ( Champions ); Mr. Dinh Ho, of Adico, LLC; Mr. R.E. Smith of Ellis Business Park; Ms. Lisa Lord of Irrigation Concepts and Mr. Reginald Wilson and Ms. Erika Smiley of Norton Rose Fulbright US LLP ( NRF ), attorneys for the District. The meeting was called to order in accordance with notice posted pursuant to law, copies of the Certificates of Posting of which are attached hereto as Exhibit A, and the following business was transacted: 1. Minutes. The Board considered the minutes of the meeting on April 18, 2017, a copy of which was previously distributed to the Board. Upon motion by Director Swinney, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the meeting on April 18, 2017, as presented. 2. Forest Bend Fire Department Report. Mr. Hoff informed the Board that the department received 68 calls this month. 3. Clear Lake Emergency Medical Corps Report ( CLEMC ). Director Swinney reported on CLEMC average response times. He also noted that 93% of CLEMC response times are less than 10 minutes and call volumes have decreased compared to 2016. Director Swinney reported CLEMC is in the process of relocating. 51044734.2-1 -
4. Tax Assessor and Collector s Report. Ms. Sullivan presented to and reviewed with the Board the Tax Assessor and Collector s Report for April 2017, a copy of which is attached hereto as Exhibit B. Ms. Sullivan reported that as of April 30, 2017, the District has collected 98.0% of taxes for 2016. Ms. Sullivan reviewed the SPA Report with the Board, a copy of which is attached hereto as Exhibit C. She requested that NRF notify her of any completed annexations for SPA records. Ms. Sullivan reported on check no. 4193 in the amount of $141.70 to Mahoney Law PLLC for collection fees. Ms. Sullivan reported in check nos. 4194 and 4195 for refunds to residents in the amount of $160 and $144 respectively. Upon motion by Director Klenk, seconded by Director Swinney, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector s Report, and to approve the execution of the checks presented for approval. 5. Bookkeeper s Report and Investment Report. Ms. Pfeffer presented to and reviewed with the Board the Bookkeeper s Report for April 30, 2017, the Budget for fiscal year ending March 31, 2017, the 2017 Energy Usage Report, and the Investment Report, copies of which are attached hereto as Exhibit D. Ms. Pfeffer reported that the Certificate of Deposit with Texas Exchange Bank was renewed for six months maturing September 23, 2017. Discussion ensued regarding irrigation expenses in the budget. It was the consensus of the Board to amend the District s budget at next month s meeting. Ms. Pfeffer reported that per her discussion with BGE, Basin Amenity Maintenance is bond reimbursable and was reallocated. Upon motion by Director Mendez, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Bookkeeper s Report, the Investment Report, and to approve execution of the checks presented for approval. 6. Operations Report, Including Review and Approval of Maintenance Items and Delinquent Report. Mr. Wilson presented to and reviewed with the Board the Operations Report and Maintenance Report for the month of April 2017, a copy of which is attached hereto as Exhibit E. Mr. Wilson reported on April repairs and maintenance for the water system, sanitary sewers, lift stations, and the water plant. 51044734.2-2 -
Mr. Wilson reported that a valve survey throughout the District was performed. Mr. Wilson reported that the lift pumps at the St. Lawrence lift station were pulled to remove debris. Mr. Wilson reported that the District produced 7,615 gallons of water and purchased 18,762,000 gallons of water from the Southeast Water Plant during the last period, and Mr. Wilson noted that Si accounted for 90.7% of the water pumped and purchased by the District. Mr. Wilson reported that 347 delinquent letters were mailed out to residents. Upon motion by Director Swinney, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to authorize Si to execute the termination list in accordance with the rate order. Upon motion by Director Swinney, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator s Report. 7. Engineer s Report. Ms. Schroeder presented to and reviewed with the Board the Engineer s Report, a copy of which is attached hereto as Exhibit F, and which follows in substantially the form it was presented: a. Commercial Reviews 1. Twenty-Second Annexation (Ellis Business Park/R.E. Smith Tract): Ms. Schroeder reported that revised plans were submitted on March 23. She also noted that a deposit in the amount of $2,239 has been received from the developer to cover fees related to plan reviews and Si Environmental is currently under review. Ms. Schroeder reported that offsite waterline extension plans approved. She also informed the Board a construction plan letter of no objection will not be issued until the District has approved both water and sanitary facilities. 2. Tracts at El Dorado and Friendswood Link Road I. WildCat Fuels Tract (2.5 AC- Corner of El Dorado Blvd. and Signal Hill Drive): Ms. Schroeder reported that revised plans have been submitted and are under review. Ms. Schroeder reported a proposed gas station and retail development has been allocated a total of 15 connections (3,734 gpd at 250 gpd/esfc). 51044734.2-3 -
3. 3366 FM 528 Retail Development Capacity Request: Ms. Schroeder reported that plans are currently under review. She stated a $2,000 deposit to cover costs associated with plan review. 4. Beamer Villas: Ms. Schroeder reported that plans were reviewed and comments were issued on March 29, 2017. He noted construction plans are under agency review and the plat has been approved by the City of Houston. Ms. Schroeder stated that the Beamer Villas Lift Station plans have been approved by Harris County. 5. Caliber Collision: Ms. Schroeder reported that construction plans are under review. She also stated a deposit in the amount of $2,000 has been made to cover plan review. b. City Of Houston WWTP Capacity: Ms. Schroeder stated that BGE is waiting for the City of Houston to finalize the agreement to purchase additional sanitary sewer capacity (286 connections) for $456,679.60. She informed the Board that BGE has prepared the change-of-use application and will submit it to the TCEQ upon receipt of a signed sales agreement from the City of Houston. c. New Clarifier: Ms. Schroeder reported clarifier construction is ongoing. d. Water Plant No. 1. Control building Consolidation: Ms. Schroeder reported a site visit by BGE s electrical designer determined that the cost estimate to reroute the conduit from the SCADA building to the MCC building is approximately $40,000. She also stated the estimate does not include costs for wire or labor to reinstall electrical equipment in the MMC building. e. Authorization for the Design Lift Station No. 2 Rehabilitation: Ms. Schroeder stated the estimated construction cost including contingencies is $225,000. She stated that BGE would like to request authorization to begin design of the facilities. It was the consensus of the Board to defer this item until the President Squires is in attendance. f. BGE Authorized Projects 1. Sanitary Sewer Manhole Rehabilitation and Replacement: Ms. Schroeder reported that a project is complete and all punch-list items have been addressed. g. City of Houston/County Projects 1. West Bay Area Blvd. Concrete Replacement: Ms. Schroeder reported that construction is ongoing and the current construction schedule from Harris County shows the project finalizing on January 2018. 51044734.2-4 -
2. City of Houston-east Transmission Line: Ms. Schroeder reported that according to the City of Houston s feasibility study dated January 25, the District s share of the line will range between $9,231,800 and $10,209,900. Upon Motion by Director Swinney, seconded by Director Klenk after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer s Report. 8. Approval of Blackhawk Regional Wastewater Treatment Agreement. Mr. Wilson presented to and reviewed with the Board the Blackhawk Regional Wastewater Treatment Agreement, a copy of which is attached hereto as Exhibit G. Upon Motion by Director Swinney, seconded by Director Klenk after full discussion and the question being put to the Board, the Board voted unanimously to approve the Blackhawk Regional Wastewater Treatment Agreement. 9. Consider Award of Construction Contract for Offsite Water Expansion and Force Main. Ms. Schroeder reported on the award of the offsite water extension and force main construction contract. She stated that BGE and Si Environmental have not approved construction plans and the developer has not submitted plans approved City of Houston. Mr. Wilson reported that the City of Houston required additional changes resulting in an additional amount. Mr. Wilson recommended rebidding the contract. Discussion ensued. Upon Motion by Director Swinney, seconded by Director Klenk after full discussion and the question being put to the Board, the Board voted unanimously to authorize the Developer to rebid the contract to include the revisions from the City of Houston. 10. Approval of Reimbursement agreement with Ellis Business Park. This item was deferred. 11. Park and Recreational Facility Report. Mr. Dillard reported that the signs are installed. Director Klenk stated that irrigation installation should be complete within 10 days. 12. Sewage Treatment Plant Operations Report. The Board discussed the final stages of clarifier installation and testing. 13. Southeast Water Plant Report. Director Longoria reported on the transmission waterline progress. He also noted that participants will need to meet to discuss the 42- inch waterline. 14. Discuss Maintenance of District Facilities There was no discussion on this item. 51044734.2-5 -
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, THE MEETING WAS ADJOURNED. * * * 51044734.2-6 -
The above and foregoing minutes were passed and approved by the Board of Directors on June 20, 2017. ATTEST: President, Board of Directors Secretary, Board of Directors 51044734.2-7 -