MINUTES BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 21 Septernberl8,2017 The Board of Directors (the "Board") of Brazoria County Municipal Utility District No. 21 (the "District") met in regular session, open to the public, on the 18th day of September, 2017, 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: Delores Jenkins Fatiyauh Jones John Cacolice Renae Medlock Noel DSouza President Vice President Assistant Vice President Secretary Assistant Secretary and all of the above were present, thus constituting a quorum. Also present at the meeting were Byron Jones, a resident of the District; Lora Hughes of S.E.A.L. Security Solutions, LLC ("S.E.A.L."); Christy and Kenny Wells of NJ Services, LLC; Bill Ehler and Gregg Haan of LJA Engineering, Inc. ("LJA"); Ethan Springer of Friendswood Development Company ("FDC"); Lori Buckner of Myrtle Cruz, Inc. ("Myrtle Cruz"); Breah Campbell of Environmental Development Partners, LLC ("EDP"); Tommy Lee of Assessments of the Southwest, Inc. (" ASW"); and Katie Carner and Kirn Cannon of Allen Boone Humphries Robinson LLP (" ABHR"). PUBLIC COMMENTS There were no comments from the public. CONSENT AGENDA Director Jenkins offered Board members an opportunity to remove items from the consent agenda for individual discussion. Ms. Carner requested that item 2.e. be removed from the consent agenda. Director Jones requested that item 2.b. be removed from the consent agenda. Director Cacolice then moved to approve all remaining items on the consent agenda, and to direct that, where appropriate, items are filed and retained in the District's official records, including the following: (1) the minutes from the August 21, 2017, regular Board meeting; and (2) the tax assessor's report. Director Medlock seconded the motion, which carried by unanimous vote. Copies of all reports approved as part of the consent agenda are attached.
ITEMS REMOVED FROM CONSENT AGENDA The Board reviewed the bookkeeper's report, a copy of which is attached. Director Jones inquired about the two director fees of office that Director Jenkins submitted for taking photographs of District facilities during and after Hurricane Harvey and coordination with LJA related to same. Discussion ensued regarding the criteria for eligibility for director fees of office. After discussion Director DSouza moved to approve the bookkeeper's report. Director Cacolice seconded the motion, which carried by a vote of 4 to 0, with Director Jones abstaining. The Board discussed options for emailing each meeting agenda to District residents. Ms. Carner stated Off Cinco could send such emails, at an estimated cost of $15.00 to $25.00 per month. After discussion, the Board concurred to take no action. REPORT FROM NJ SERVICES REGARDING MAINTENANCE OF DISTRICT DRAINAGE DETENTION FACILITIES Mr. Wells distributed and reviewed the maintenance report for the District's drainage and detention facilities, a copy of which is attached. Mr. Ehler presented and reviewed a proposal from NJ Services to replace the damaged outfall pipe west of lake lc in the amount of $8,700.00. He stated this proposal includes the removal, disposal of and replacement of the existing pipe with a new pipe and reseeding the area. After discussion, Director Medlock moved to approve the proposal from NJ Services for the replacement of the damaged outfall pipe located west of lake 1 C. Director Jones seconded the motion, which carried by unanimous vote. SECURITY SERVICES, INCLUDING PROPOSALS FOR SUPPLEMENTAL LAW ENFORCEMENT AND SECURITY SERVICES AND CONSIDER TERMINATION OF SERVICE AGREEMENT WITH S.E.A.L. Ms. Hughes reviewed a report from S.E.A.L., a copy of which is attached. Ms. Hughes left the meeting. Ms. Carner reviewed a request from Lakes of Savannah South Community Association ("HOA") regarding cost sharing for security services with the Constable's office. Director Jones stated that the HOA would not be cost sharing with the District, but instead was looking to cost share with Brazoria County Municipal Utility District No. 22. Director Jones stated she would follow up on the matter. CONDUCT PUBLIC HEARING REGARDING DISTRICT'S TAX RATE, ADOPT ORDER LEVYING TAXES AND AUTHORIZE EXECUTION OF AMENDMENT TO INFORMATION FORM The Board reviewed a tax rate analysis with a proposed debt service tax rate of $0.74 per $100 of assessed valuation and a proposed maintenance tax rate of $0.40 per -2-
$100 of assessed valuation, for a total proposed tax rate of $1.14 per $100 of assessed valuation. The Board held a public hearing regarding the proposed 2017 tax rate, and no public comments were received. The public hearing was then closed. Discussion ensued regarding future capital improvement projects and the possibility of implementing a general residence homestead exemption for the 2018 tax year. Ms. Carner reviewed the proposed Order Levying Taxes for 2017 reflecting a tax rate of $1.14 per $100 of assessed valuation, which is composed of $0.74 per $100 of assessed valuation for debt service and $0.40 per $100 of assessed valuation for maintenance and operation. The Board considered approving an Amendment to Information Form incorporating the 2017 tax rate. Following review and discussion, Director Jenkins moved to adopt the Order Levying Taxes for 2017 and direct that the Amendment to Information Form be approved and filed with the Texas Commission on Environmental Quality ("TCEQ"), and with Brazoria County, as required by law, and to be filed appropriately and retained in the District's official records. Director Jones seconded the motion, which carried by unanimous vote. ADDITIONAL FINANCIAL AND BOOKKEEPING MATTERS Ms. Buckner reviewed and discussed 3 additional, handwritten checks as follows: check no. 6365 in the amount of $138.52 payable to Director Cacolice for Director fees; check no. 6368 in the amount of $165.27 payable to Director Jones for Director fees; and check no. 6367 in the amount of $38,512.44 payable to the HOA for the quarterly mowing/landscape maintenance expenses. After discussion, Director Medlock moved to approve the 3 additional checks. Director Jones seconded the motion, which carried by unanimous vote. ENGINEER'S REPORT Mr. Ehler distributed the engineer's report, a copy of which is attached. APPROVE PLANS AND SPECIFICATIONS FOR THE WASTEWATER TREATMENT PLANT ("WWTP") EXPANSION Mr. Ehler stated that LJA has completed the plans and specifications for the expansion of the WWTP from.50 mgd to.75 mgd. He stated LJA has received approval from all agencies. Mr. Ehler stated he will request authorization to advertise for bids once the demand on the system warrants the expansion. -3-
APPROVE PLANS AND SPECIFICATIONS FOR THE REPAIR OF DETENTION POND EROSION AT LAKE 2 Mr. Ehler stated that LJA has completed the plans for the repair and control of the erosion of the side slopes at lake 2. He reported that LJA submitted the plans to the agencies in early August. REVIEW BIDS AND AWARD CONTRACT FOR WATER PLANT HYDRO PNEUMATIC AND GROUND STORAGE REHABILITATION Mr. Ehler stated that LJA has completed the plans and specifications and will bid the project once the water plant expansion is completed. PAY ESTIMATES, CHANGE ORDERS FOR THE REVERSE OSMOSIS EQUIPMENT Mr. Ehler stated that Wigen Water Technologies ("WWT") is the equipment supplier for the reverse osmosis project. Mr. Ehler stated installation of the control panel air conditioning units and programing of the controls is underway. He stated WWT recently notified LJA that a pump system will be required to adequately pressurize water entering the reverse osmosis system. He stated LJA plans to solicit 3 proposals for the pump system. Discussion ensued regarding scheduling a special meeting to approve a change order to the existing contract or to award a new contract for the installation of the pump system. The Board concurred to hold a special meeting on October 5, 2017 at 1:00 pm. PAY ESTIMATES, CHANGE ORDERS FOR THE GENERATOR FOR REMOTE WATER WELL Mr. Ehler updated the Board on the status of this project. He stated there were no new pay estimates or change orders at this time. PAY ESTIMATES, CHANGE ORDERS, AND /OR FINAL ACCEPTANCE FOR WATER PLANT EXPANSION Mr. Ehler stated the contractor for this project is Bussel & Sons, LLC, and includes the construction of a ground storage tank, new booster pump, hydro-tank and associated equipment. He updated the Board on the status of the project and stated it is expected to be completed by the end of September. -4-
PAY ESTIMATES, CHANGE ORDERS, AND/OR FINAL ACCEPTANCE FOR THE CONSTRUCTION OF THE REVERSE OSMOSIS SYSTEM Mr. Ehler stated the contractor for this project is JTR Constructors and updated the Board on the status of this project. He stated there were no new pay estimates or change orders at this time. PAY ESTIMATES, CHANGE ORDERS, AND/OR FINAL ACCEPTANCE FOR THE IMPROVEMENTS FOR WASTEWATER TREATMENT PLANT ACCESS ROAD Mr. Ehler updated the Board on the wastewater treatment plant access road. Mr. Ehler stated DVL Enterprises is the contractor for the access road project. He stated the paving of the access road is complete and access to the wastewater treatment plant has been restored. Mr. Ehler requested approval of Pay Estimate No. 3 in the amount of $94,432.50 payable to DVL Enterprises, LLC. Following review and discussion, Director Medlock moved to approve. the engineer's report and, based on the engineer's recommendation, to approve Pay Estimate No. 3 in the amount of $94,432.50 payable to DVL Enterprises, LLC. Director Jones seconded the motion, which carried by unanimous vote. DISCUSS POSSIBLE INTERCONNECT WITH BRAZORIA COUNTY MUNICIPAL DISTRICT NO. 29 ("BC MUD 29") Mr. Ehler stated that a pressure flow test on the BC MUD 29 water system lines has been completed, and the results are being reviewed. DEEDS, EASEMENTS, AND PHASE I ENVIRONMENTAL ASSESSMENT PROPOSAL The Board did not have any deeds and easements at this time. UTILITY COMMITMENT REQUESTS The Board did not receive any utility commitment requests at this time. CAPITAL IMPROVEMENT PLAN Mr. Ehler stated there were no additional updates on the capital improvement plan, at this time. OPERATION OF DISTRICT FACILITIES Ms. Campbell reviewed the operator's report for the month of July, a copy of which is attached. Ms. Campbell said that the ratio of water billed versus water 1 produced for August was 96.6%. -5-
plant. Ms. Campbell reported on repairs and maintenance at the WWTP and the water Ms. Campbell reported on water quality monitoring tests. Ms. Campbell reported on the replacement of the hatches on the GST and stated the repair is in process. Ms. Campbell stated that the water plant well motor failed during Hurricane Harvey. She stated a rental motor has been installed and requested authorization to replace the well motor for an estimated cost of $28,474.00. Ms. Campbell stated EDP has submitted an insurance claim for the well motor and would submit a FEMA claim as well. She stated that EDP will be pulling pumping equipment due to increased flows during Hurricane Harvey and would rebuild the pumps as needed. She stated insurance and FEMA claims would be submitted for any pumps that must be rebuilt. Ms. Campbell discussed difficulties in receiving and processing payments during Hurricane Harvey. She recommended that the Board waive delinquent fees and penalties for a utility bills due on September 13, 2017, due to the impacts of the storm. Ms. Campbell presented a request for a leak adjustment credit from the resident at 5804 Meadow Breeze Lane due to a leaking toilet, which has since been repaired. Ms. Campbell recommended a utility bill adjustment in the amount of $49.50 in accordance with the District's Leak Adjustment Policy. Discussion ensued. Ms. Campbell presented a reviewed a request from the Resident at 13610 Barton Meadow to remove all delinquent fees and penalties, and to reimburse the resident for the additional security deposit required pursuant to the Rate Order following disconnection for delinquency in payment. Ms. Campbell stated the total amount of the resident's request is $439.13. Discussion ensued. Director Medlock then moved to (1) approve the operator's report; (2) authorize EDP to replace the well motor at the water plant for an estimated amount of $28,474.00; (3) waive all fees and delinquent penalties for the utility bills due on September 13, 2017; (4) approve a leak adjustment credit for the resident at 5804 Meadow Breeze Lane in the amount of $49.50 in accordance with the District's LeakAdjustment Policy; and (5) deny the request from the resident at 13610 Barton Meadow. Director Cacolice seconded the motion, which carried by unanimous vote. -6-
FOURTH AMENDMENT TO AGREEMENT FOR OPERATING SERVICES Ms. Campbell discussed the Fourth Amendment to the Agreement for operating services and stated she would be presenting it at the next meeting for approval. FIRE STATION NO. 6, INCLUDING PROPOSAL FROM CITY OF PEARLAND (THE "CITY") Ms. Carner presented and reviewed a letter from the City regarding the proposed monthly Fire/EMS fees for the District, effective October l, 2017, a copy of which is attached. Discussion ensued regarding the new proposed rate of $19.76 per single family residence, which excludes staffing of fire station no. 6. Ms. Carner reported on discussions with City staff regarding questions about the calculation of the proposed fees. She stated the City staff agreed to make corrections to the calculation and that a revised letter should be forth coming soon. DISTRICT LAKE AND DETENTION FACILITIES, INCLUDING DISCUSS ENFORCEMENT OF LAKE RULES Ms. Carner discussed lake signage and communication with the Brazoria County District Attorney's Office regarding same. She presented and reviewed a draft letter to the Brazoria County Sheriff's Office and other law enforcement agencies, which would allow enforcement of state trespassing laws at. District detention facilities. After discussion, the Board concurred to take no action at this time. TERMINATION OF WATER AND SEWER SERVICE Ms. Campbell recommended that the District authorize EDP to hang door tags but that the District not terminate utility service for delinquent accounts this month due to difficulties in receiving and processing payments during Hurricane Harvey. After review and discussion, the Board concurred to defer termination of utility service until the next Board meeting due to the impacts of Hurricane Harvey. STORM WATER MANAGEMENT There was no discussion on this matter. REVIEW AND APPROVE THE FALL 2017 NEWSLETTER Director Cacolice reported that preparation of the Fall 2017 newsletter is still underway. -7-
HURRICANE HARVEY RELATED MATTERS, INCLUDING STATUS OF DISTRICT FACILITIES AND OPERATION'S AND APPROVAL OF ANY RELATED AGREEMENTS AND APPLICATIONS FOR FINANCIAL ASSISTANCE There was no additional discussion on this item. CONVENE IN EXECUTIVE SESSION FOR CONSULTATION WITH ATTORNEY REGARDING ANY PENDING OR CONTEMPLATED LITIGATION OR SETTLEMENT OFFERS The Board did not convene in Executive Session. There being no further business to come before the Board, the Board concurred to adjourn the meeting. (SEAL) -8-
LIST OF ATTACHMENTS TO MINUTES Minutes Page Tax Assessor's Report... 1 Bookkeeper's report... 2 NJ Services Maintenance report... 2 Report from S.E.A.L... 2 Engineer's report... 3 Operator's report... 5 Monthly Fire/EMS fees proposal from the City of Pearland...? -9-