MINUTES OF MEETING OF BOARD OF DIRECTORS March 17, 2015
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1 MINUTES OF MEETING OF BOARD OF DIRECTORS March 17, 2015 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, March 17, 2015, 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. Also attending all or parts of the meeting were Ms. Melinda Salazar and Ms. Melissa Meyer of Brown & Gay Engineers, Inc. ( BGE ), engineers for the District; Mr. Dusty Lane of Si Environmental ( Si ), operators for the District; Mr. Tom Hoff of the Forest Bend Fire Department; Ms. Vickey Sullivan of Equi-Tax, Inc., tax assessor and collector for the District; Mr. David Ferrier of ETI Accounting Services ( ETI ), bookkeeper for the District; Mr. Barton Schindler with Schindler s Lawn Services; Mr. Neil Thomas and Ms. Carrie Spann of Norton Rose Fulbright US LLP ( NRF ), attorneys for the District; Ms. Rebecca Hillenburg, Mr. Bill Neumann, Mr. Bill Kelly, Ms. Sharon Proulx, Mr. David Gregory, Mr. Jeff Robinson, Mr. Wayne Robinson, and Mr. Jeff Sparks, with Hope Village; Mr. Robert Smith of Houston Suburban Real Estate; and Mr. Colby Ellis, landowner within 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 regular meeting of February 17, 2015, copies of which were previously distributed to the Board. Upon motion by Director Klenk, seconded by Director Longoria, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the regular meeting of February 17, The Board considered the minutes of the special meeting of February 3, 2015 and February 10, 2015, copies of which were previously distributed to the Board. Upon motion by Director Longoria, 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 regular meeting of February 3, 2015 and February 10,
2 2. Acceptance of Oath and appointment of Director Swinney. Mr. Thomas stated that Director Swinney has taken the necessary steps to perform his duties as Director. Upon motion by Director Mendez, seconded by Director Klenk, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the Oath of Office and Appoint Director Swinney. 3. Public Comments. There were no public comments. 4. Consider adjustment to Hope Village capital recovery fees for their new project. The President recognized Ms. Proulx who presented to the Board plans for the Multipurpose Center and a community center being built. The Board agreed that the Operator should do the tap, but Ms. Proulx can have their plumber complete the rest of the work. 5. Approve audit for fiscal year ended December 31, This matter was deferred to the next meeting. 6. Authorize delinquent tax attorney contract. Mr. Thomas reported that the tax collection contract is evergreen and unless terminated by the Board will automatically renew. Director Swinney asked about the contract and the percentage paid to the delinquent tax attorney. Mr. Thomas discussed the delinquent tax process. Upon motion by Director Klenk, seconded by Director Mendez, after full discussion and the question being put to the Board, the Board voted unanimously to approve the delinquent tax attorney contract. 7. Forest Bend Fire Department Report. Mr. Hoff presented the Forest Bend Volunteer Fire Department Report for February Mr. Hoff reported on the expenses, income, and operations of the Department. Mr. Hoff requested approval to add tint to Station 12 windows. It was the consensus of the Board to approve 8. Clear Lake Emergency Medical Corps Report ( CLEMC ). President Squires reported that the Board will meet later in the month. President Squires also stated that the Board is doing well with the transfers. 9. Tax Assessor and Collector s Report. Ms. Sullivan presented to and reviewed with the Board the Tax Assessor and Collector s Report for February 2015, a copy of which is attached hereto as Exhibit B. Ms. Sullivan reported that through February 2015, the District had collected 96.3% of its 2014 taxes. Ms. Sullivan stated that the District collected $12, in sales tax revenue through the SPA. Upon motion by Director Klenk, seconded by Director Mendez, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector s Report. 10. Bookkeeper s Report and Investment Report. Mr. Ferrier presented to and reviewed with the Board the Bookkeeper s Report for February 28, 2015, the Budget for fiscal year ending December 31, 2015, the 2014 Energy Usage Report, and the Investment Report, copies of which are attached hereto as Exhibit C. The Board requested that Mr. Ferrier hold check no until President Squires discusses the invoice with Gulf Coast Waste Disposal Authority
3 Mr. Ferrier requested authorization from the Board to enroll in online banking with Patriot Bank. Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to authorize the bookkeeper to enroll in online banking with Patriot Bank. Mr. Ferrier requested authorization to close Compass Bank accounts for the Series 2010 Bonds and Capital Projects Fund and move funds to Texpool. Upon motion by Director Klenk, seconded by Director Longoria, after full discussion and the question being put to the Board, the Board voted unanimously authorize the bookkeeper to close the Compass Bank accounts for the Series 2010 Bonds and Capital Projects Funds and move the funds to Texpool. Mr. Ferrier stated that there are two unclaimed checks for Crystal Bay Apartments for September and October Director Klenk requested to continue the regular process and send the checks to the state for escheatment. Upon motion by Director Longoria, seconded by Director Mendez, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Bookkeeper s Report and the Investment Report, and to approve payment of the District bills. 11. Operations Report, Including Review and Approval of Maintenance Items and Delinquent Report. Mr. Lane presented to and reviewed with the Board the Operations Report and Maintenance Report for the month of February 2015, a copy of which is attached hereto as Exhibit D. Mr. Lane reported that 295 delinquent letters were mailed to residents. Mr. Lane reported that 31 meters were changed within the District. Mr. Lane reported that the District produced 1,439,000 gallons of water and purchased 42,848,000 gallons of water from the Southeast Water Plant during the month of February, and noted that Si accounted for 99.97% of the water pumped and purchased by the District during the last period. Mr. Lane reported that Si completed five excavations and repairs and televised five of the District sewer lines. Mr. Lane discussed a back-up on a property and the resident at 4754 Cavern Drive would not give Si access to make the repair. President Squires stated that he called the resident and stated that Si will take pictures and return the property to its prior condition. Mr. Lane asked Mr. Thomas if there was any legal recourse. Mr. Thomas stated that Si can remove all of the fences if Si is not given access to repair the line. Mr. Thomas stated that homeowners would be responsible for repairing the fence since it is on the District s water line easement. Mr. Thomas stated that Si Environmental should send a letter to the affected residents and explain that Si Environmental will have to tear down the fence and go through the easement at the homeowner s expense to make any necessary repairs. Mr. Lane reviewed he delinquent list with the Board. Upon motion by Director Klenk, seconded by Director Longoria, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator s Report and to authorize Si to execute the termination list in accordance with the rate order
4 12. Engineer s Report. Ms. Meyer presented to and reviewed with the Board the Engineer s Report, a copy of which is attached hereto as Exhibit E, and which follows in substantially the form it was presented: a. Commercial Reviews: Ms. Meyer reported that BGE sent their construction plan review letter for Rex Road Business Park to Everest Design Group, LLC. Ms. Meyer reported that BGE has not yet received revised plans. Ms. Meyer stated that BGE received a deposit in the amount of $1,000 from North Wind Construction for the Hope Village Plan review fee. Ms. Meyer stated that BGE has received two sets of plans on March 12, 2015 (entitled Proposed 8 Unmetered Fire Line and Proposed Hope Village). Ms. Meyer presented to the Board the plan approval letter. It was the consensus of the Board to approve the letter once North Wind Construction presents new plans. Ms. Meyer stated that BGE received a set of plans from Mr. Kurt Lindstrom at Emax General Contractors for the addition of a 15,000 gallon fire tank at the Friendswood Self Storage on 2300 Bay Area Boulevard. Mr. Lindstrom is proposing connecting his tank via the existing 8 water line on Heritage Colony Drive. Ms. Meyer presented to the Board a draft approval letter to be released contingent on operator approval. Upon motion by Director Longoria, seconded by Director Klenk, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize BGE to send the approval letter for Friendswood Self Storage, contingent on the operator s approval. Ms. Meyer stated that BGE received a set of plans from Mr. Ghandi Saad regarding a proposed retail center at 3210 FM 528 Road. Ms. Meyer stated that BGE received updated plans. Ms. Meyer asked for the Board to execute the approval letter pending the Operator review. Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to authorize the engineer to send the approval letter for the retail center at 3210 FM 528 Road, pending Operator review. b. Beamer Villas: Ms. Meyer stated that BGE has not received revised construction plans for Beamer Villas. Ms. Meyer stated that Mr. Thint has asked us to submit the Beamer Villas Plat to Harris County for final approval. The plat was submitted as an Extension of Approval for Final and approved on July 24, Ms. Meyer stated that BGE is currently coordinating with Mr. Thint and expects a plat recordation date in January
5 Ms. Meyer stated that BGE has received Agency approvals for the Beamer Villas lift station. Ms. Meyer stated that BGE is currently addressing Agency comments for the storm water pump station and expects to submit plans for signatures in April. c. Ongoing Projects: 1. St. Lawrence Lift Station-Force Main Rehabilitation: Ms. Meyer stated that the notice to proceed was issued to Insituform on October 14 th for work to begin on October 20 th. The Contractor has mobilized, is currently installing the by-pass, and plan to begin the CTV (televising of the lines) next week. 2. Elevated Storage Tank Coating: Ms. Meyer stated that Gulf States Protective Coatings is mobilized and is currently blasting the interior dry riser portion of the tank. Ms. Meyer stated that BGE has received three resident complaints and has met with each of the residents along with the Contractor. Ms. Meyer presented Pay Estimate No. 2 in the amount of $77, payable to Gulf States Protective Coatings. Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted unanimously to authorize payment of Pay Estimate No. 2 in the amount of $77,670.00, payable to Gulf States Protective Coatings. 3. Rex Road Utility Expansions: Ms. Meyer issued the notice to proceed on March 16, Ms. Meyer requested a change order in the amount of $4,750 for the Contractor to install a tap sleeve and valve in lieu of the wet connection in order to keep the existing service to adjacent businesses. Upon motion by Director Longoria, seconded by Director Mendez, after full discussion and the question being put to the Board, the Board voted unanimously to approve the change order in the amount of $4,750 for the Contractor to install a tap sleeve and valve in lieu of the wet connection. 4. Water Well 2/Elevated Storage Tank-Gas Generator: Ms. Meyer stated that the contractor has mobilized and the foundation is set at the Elevated Storage Tank site. Ms. Meyer stated at the offsite well generator location, the majority of demo has been completed and the forms are set. Ms. Meyer presented Pay Estimate No. 1 in the amount of $284, payable to Gemini Contractive Services, Inc. Upon motion by Director Longoria, seconded by Director Klenk, after full discussion and the question being put to the Board, the Board voted
6 unanimously to authorize payment of Pay Estimate No. 1 in the amount of $284, payable to Gemini Contractive Services, Inc. d. Ms. Meyer stated that BGE met with Si Environmental for the Facilities inspection, and are currently updating the CIP report, which she will bring to the next meeting. e. Ms. Meyer stated that Houston Suburban Real Estate has approached BGE regarding water capacity for a 19-acre tract located near Beamer Road known as Ellis Business Park. Ms. Meyer stated that BGE has completed the analysis and have prepared the draft memo for the Board s review. The Board requested that Ms. Meyer revise the letter to state that the Board will not provide out-of-district water service and that they would have to be annexed into the District. Upon motion by Director Longoria, seconded by Director Mendez, after full discussion and the question being put to the Board, the Board voted unanimously to authorize sending the feasibility study for Ellis Business Park with the revisions. f. Ms. Meyer stated that BGE will start the feasibility analysis for the tenacre Hammatt Tract for a cost not to exceed $10,000. Ms. Meyer stated that BGE has not received the deposit for the feasibility study. g. Ms. Meyer stated that BGE is coordinating with Ms. Judy To of Century 21. Ms. Meyer stated that BGE has reviewed the plans and issued an approval letter. Ms. Meyer stated that she has submitted annexation documents to the attorney for their review and execution. h. Ms. Meyer stated that BGE has requested authorization to begin preparation of a Surplus Funds Application to use the $103, designated as surplus funds in the Unlimited Tax Bonds, Series 2005 for engineering fees for 42 surface water line with the City of Houston, estimated to be $100, Ms. Meyer stated that BGE notified the TCEQ that the District will use a portion of the remaining $103, designated as surplus funds in the Unlmited Tax Bond, Series 2013 Change in Scope for the GCA invoice in the amount of $79, Park and Recreational Facility Report. There was no update on this item. item. 14. Sewage Treatment Plant Operations Report. There was no update on this 15. Southeast Water Plant Report. President Squires reported a major break in the 42-inch water line and that it will take approximately five weeks to repair
7 16. Discuss Maintenance of District Facilities. Director Longoria stated that the roof for the office building is fixed
8 THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, THE MEETING WAS ADJOURNED. * * * The above and foregoing minutes were passed and approved by the Board of Directors on April 21, ATTEST: President, Board of Directors Secretary, Board of Directors
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