MINUTES OF MEETING OF BOARD OF IRECTORS. March 30,2015

Transcription

1 MINUTES OF MEETING OF BOARD OF IRECTORS March 30,2015 THE STATE OF TEXAS COUNTY OF HARRIS TRAIL OF THE LAKES MUNICIPAL UTILITY DISTRICT The Board of Directors (the "Board") of Trail of the Lakes Municipal Utility District (the "District") met in regular session, open to the public, at the offices of Radcliffe Bobbitt Adams Polley PLLC, 1001 McKinney, Suite 1000, Houston, Texas 77002, its regular meeting place outside the boundaries of the District, on Monday, March 30, 2015, at 11:00 a.m.; whereupon, the roll was called of the members of the Board, to-wit: Virginia Elkins Jeff Campbell Jo A. Smith Pamela Gholson Christopher Bush President Vice President Secretary Assistant Secretary Director All members of the Board were present, except Director Gholson, thus constituting a quorum. Also attending the meeting were: Ms. Tara Klein of Four and One, LLC; Mr. Eugene Shepherd of RBC Capital Markets ("RBC"), financial advisor for the District; Mr. Tom Dillard of Champions Hydro-Lawn, Inc. ("Champions"), detention pond maintenance provider for the District; Ms. Crystal Kirby of Aggressive Waste Disposal, Inc., garbage collection service provider for the District; Mr. Rick VanDyke of Si Environmental LLC ("SE"), operators for the District; Ms. Keli Schroeder, P.E., and Ms. Kamila Andrzejak, E.I.T., of Brown & Gay Engineers, Inc. ("BGE" or the "Engineer"), engineers for the District; Ms. Karrie Kay of Myrtle Cruz, Inc. (the "Bookkeeper"), bookkeepers for the District; Ms. Kristen Scott of Bob Leared Interests, Inc. ("BLI" or "Tax Assessor/Collector"), tax assessor/collectors for the District; and Ms. Regina D. Adams, attorney, and Ms. Rita R. Rodriguez, paralegal, of Radcliffe Bobbitt Adams Polley PLLC ("Radcliffe Bobbitt" or the "Attorney"), attorneys for the District. WHEREUPON, the President called the meeting to order and evidence was presented that public notice of the meeting had been given in compliance with the law. The posted notices of the meeting are attached hereto. PUBLIC COMMENT There were no public comments. CONSENT AGENDA Director Elkins reviewed with the Board the items reflected on the Consent Agenda. Ms. Adams explained that this portion of the agenda deals with routine matters of the Board, and that no separate discussion of such items will occur unless a Board member or a member of the public requests that an item be moved to the regular portion of the agenda

2 Upon motion by Director Campbell, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to approve the following Consent Agenda item: the minutes of the February 23,2015 regular meeting. REGULAR AGENDA GARBAGE COLLECTION SERVICES REPORT Ms. Kirby reviewed with the Board the Garbage Report for February, a copy of which is attached hereto. Ms. Kirby noted that two (2) yellow tags for household items and 26 yellow tags for heavy trash items were issued during the time period, and that there were seven (7) new connections. Ms. Kirby also reported that the District received a rebate in the amount of $ for the recycling program. Ms. Kirby then informed the Board that Aggressive has purchased three (3) new trucks and they are now in service in the District. Ms. Kirby went on to inform the Board that Aggressive is still researching vendors for global positioning systems that will be compatible with Aggressive's equipment. Ms. Adams also reported that the 2015 holiday schedule has been posted to the District's website and sent to the management companies for the homeowners associations in the District. Upon motion by Director Campbell, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Garbage Collection Services Report. DISTRICT SECURITY MATTERS Director Campbell then reviewed with the Board the Security Report for the month of February, a copy of which is attached hereto. Director Campbell also reported that the additional deputy is now included in the patrol schedule. Mr. Campbell also reported that he received an inquiry from a District resident who reported an increase in her water bill, but that such increase was due to a water leak. No action was necessary on this matter. TAX ASSESSOR/COLLECTOR'S REPORT Next, Ms. Scott presented the Tax Assessor/Collector's Report for the month of February, a copy of which is attached hereto. Ms. Scott noted that the report reflects that 96.2% of the District's 2014 taxes were collected as of February 28, 2015, compared to % for this same time last year. Ms. Scott then informed the Board that the District received a request for waiver of penalties and interest from Ms. Beverley Hiller, property owner located at 3639 Liles Lane, a copy of which is attached hereto. Ms. Scott explained that Ms. Hiller stated she did not receive the first tax statement but that she received the tax statements mailed following the original. Ms. Scott explained that pursuant to the Texas Tax Code, there must be an error or omission by the Harris County (the "County") Appraisal District to waive such fees. The Board then denied such request for waiver and requested that BLI prepare and send a letter to explain the denial

3 Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to: 1) approve the Tax Assessor/Collector's Report; 2) authorize payment of the checks reflected therein; and 3) authorize BLI to prepare and send a letter to Ms. Hiller, as described above. DELINQUENT TAX ATTORNEY'S REPORT Ms. Scott then reviewed the Delinquent Tax Attorney's Report with the Board, a copy of which is attached hereto. Upon motion by Director Campbell, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Delinquent Tax Attorney's Report. Ms. Klein entered the meeting at this time. BOOKKEEPER'S REPORT Ms. Kay then reviewed the District's Bookkeeper's Report and the Quarterly Investment Report, copies of which are attached hereto, including the revenues and expenses of the District, the budget comparison and the checks being presented for payment. Director Elkins inquired if the bills will cease for the telephone lines for the communications at the District's Water Plant ("WP") facilities due to the installation of the radio system. Ms. Schroeder explained that some, but not all, telephone lines will be eliminated, and that she will be working with Mr. VanDyke to determine which will be cancelled. Ms. Kay then reviewed the Bookkeeper's Report for the District's Regional Wastewater Treatment Plant (the "STP"), a copy of which is attached to the District's Bookkeeper's Report. Ms. Kay then reviewed with the Board the proposed amended District budget for the fiscal year ending ("FYE") September 30, 2015, a copy of which is attached hereto. Ms. Kay noted that the revenue line items for water, sewer, West Harris County Regional Water Authority pumpage fees, security services and recycling rebate have been increased. Ms. Kay also noted that because the garbage revenue has been combined with the sewer revenue, the garbage revenue line item has been decreased. Ms. Kay also noted that the STP, elections, office and security services expense line items have been increased and that the garbage expense line item has been decreased. Ms. Kay then reviewed the STP budget for FYE September 30, 2015 and noted that expense line items for audit, permit, office, sludge removal and repairs and maintenance have been increased. Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to: 1) approve the Bookkeeper's Reports, including the Quarterly Investment Report, 2) authorize payment of the checks being presented for payment; and 3) adopt the proposed amended District and STP budgets for FYE September 30,

4 DISTRICT'S PROPOSED UNLIMITED TAX REFUNDING BONDS, SERIES 2015 Mr. Shepherd then reviewed with the Board the municipal advisory services acknowledgement letter. Mr. Shepherd explained that such letter is required to detail such services to the District as underwriter and agent for the District and requested the District acknowledge same. Mr. Shepherd then reviewed the refunding analysis, a copy of which is attached hereto. Mr. Shepherd explained that due to changes in the market, RBC does not recommend refunding the Unlimited Tax Bonds, Series 2005 ("Series 2005 Bonds") at this time due to the increase in interest rates. Mr. Shepherd further explained that in February, the savings would have been 4.19 percent (4.19%) or $74,108.00, but the interest rates are slightly higher in March and the savings are at 3.33 percent (3.33%), being approximately $66,063, and will not cover the costs of issuance. Mr. Shepherd added that the Series 2005 Bonds are callable at any time and RBC will continue to monitor the market. OPERATIONS REPORT Mr. VanDyke then reviewed with the Board the Operations Report, including the Production Report and Management Report for the month of February, copies of which are attached hereto. Mr. VanDyke reported that the District had a water accountability ratio of 98.53% for the prior month, and that there are currently 2,576 total connections in the District. Mr. VanDyke also reported that there were no excursions at the STP. Mr. VanDyke stated that, in addition to the monthly maintenance items, the following District maintenance was completed during the prior month: 1) performing the annual motor control center ("MCC") cleaning and the quarterly preventative maintenance on the alarm system at the lift station; 2) releasing and adjusting a manhole to-grade at 4246 Duneberry Trail; 3) repairing one (1) long tapline, which also required a re-tap at 7822 Crestline Road; 4) repairing one (1) short tapline; 5) replacing gate valve on hydropneumatic tank ("HPT") no. 3 at WP No.2 and re-airing the tank; 6) performing annual MCC cleaning, quarterly preventative maintenance on the alarms at WP Nos. 2 and 4; and 7) filing annual water use survey with the Texas Water Development Board. Mr. VanDyke stated that, in addition to the monthly maintenance items, the following STP maintenance was completed during the prior month: 1) replacing ball valves and check valves on the non-potable water pumps; 2) completing the quarterly Texas Commission on Environmental Quality (the "TCEQ") required stormwater inspection; and 3) replacing the airline connecting the non-potable water supply to the HPT. Mr. VanDyke also reported that he is still working with Today's Integration, Inc., the District's security alarm system provider, on whether alarm notifications can be sent to the Precinct No.4 Constables office. Mr. VanDyke reviewed the Production Report and Delinquent Letter Accounts Listing (the "Delinquent List"), copies of which are attached to the Operations Report. The Board noted that the Delinquent List shows no deposit for Kristina Kollajo's account and requested Mr. VanDyke review such account for accuracy. Mr. VanDyke reported that SE sent

5 termination letters for delinquent accounts, tagged 24 accounts and terminated service to eight (8) accounts, three (3) of which service has been restored. Mr. VanDyke then reviewed the High Usage List, a copy of which is attached hereto. Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operations Report and authorize the termination of service to the delinquent accounts in accordance with the provisions of the District's Rate Order. GREENS BAYOU CORRIDOR COALITION ("GBCC") Director Elkins reported that she attended the Waste Management Nature Preserve plannin~ meeting and that the trail-building training (the "Project") is scheduled for April 10 th and 11 t. The Board then discussed attendance regarding same and the Directors agreed that attendance to such event is on a volunteer-basis only and no per diems will be issued. Ms. Adams also reported that the GBCC Annual Meeting was held on March 23 rd and that Directors Gholson and Smith were in attendance. Mr. Shepherd and Ms. Kirby exited the meeting at this time. REPORT ON THE DETENTION FACILITIES hereto. Mr. Dillard then reviewed the Detention Facilities Report, a copy of which is attached Mr. Dillard reported that Champions is researching the design for the sanitary sewer lid and that there will be no violations on the District's County storm water quality permit. Mr. Dillard added that Champions will also inspect the storm sewer lid at the Clayton's Park ("CP") detention pond entrance for design of a cover for same. Mr. Dillard then informed the Board that one (1) load of debris has been removed from Woodland Hills Drive. Mr. Dillard then presented to the Board an containing a proposal in the amount of $ per removal event from Champions for the removal of debris, a copy of which is attached hereto. Mr. Dillard then reported that the gate at Woodland Hills has been chained and locked. Mr. Dillard also mentioned that the Spring overseeding of the detention pond facilities will take place in April when the weather has improved. Mr. Dillard reported that the repairs to the bollard and cable fence at the Atascocita Forest ("AF") STP fill area have not been completed due to the inclement weather. Mr. Dillard then informed the Board that Champions is investigating appropriate fencing for the storm sewer drain pipe inlet from the subdivision at the AF detention pond

6 DISCUSS MASTER PLAN CREATION FOR THE POTENTIAL DEVELOPMENT OF P ARKS, TREE PLANTING, DETENTION POND AMENITIES AND TRAIL SYSTEM The Board then recognized Ms. Klein who presented a proposal for a conceptual master plan for the potential development of parks, tree planting, detention pond amenities and trail system, a copy of which is attached hereto. Discussion then ensued regarding funding for same and Mr. Dillard noted that regular maintenance immediately upon the completed construction of development should be taken into consideration when contemplating funding for any recreational facilities. DEVELOPER'S REPORT Due to the absence of Mr. Aaron Alford of Woodmere Development ("Woodmere"), a developer in the District, there was no Developer's Report. ENGINEER'S REPORT Ms. Schroeder then reviewed the Engineer's Report, a copy of which is attached hereto. Ms. Schroeder then reported that BGE has completed the cathodic protection inspection at WP Nos. 2 and 4 and found that the circuit board controlling the cathodic protection of a ground storage tank at WP No.2 is defective. Ms. Schroeder then recommended repairs to same in the amount of $ Ms. Schroeder then reported that the design of the 12-inch (12") waterline to establish an emergency interconnect with Harris County Municipal Utility District ("HCMUD") Nos. 290 and 106 (the "Interconnect Project") has been completed. Ms. Schroeder then requested authorization to advertise for bids for such project. Ms. Schroeder then reported, with regard to the construction of water, sewer and drainage facilities for CP, Section 6 and Vine Forest Drive in CP ("CP 6 and Vine Forest Project"), that BGE received Pay Estimate No.3 and Final in the amount of $15, from Crostex Construction, Inc. ("Crostex"), contractor for such project, a copy of which is attached to the Engineer's Report. Ms. Schroeder recommended Board approval of same. Ms. Schroeder then reported that the City of Houston (the "City") has signed the construction plans for the water, sewer and drainage facilities to serve CP East, Section 1 and that the District is awaiting signature of same from the County. Ms. Schroeder then reported that BGE received Pay Estimate No. 1 in the amount of $389, from Clearwater Utilities, Inc. ("Clearwater") in connection with the construction of water, sewer and drainage facilities to serve AF, Section 25 ("AF 25 Project"). Ms. Schroeder recommended Board approval of same. Upon motion by Director Campbell, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to: 1) approve the Engineer's Report; 2) authorize advertising for bids for the Interconnect Project; 3) approve Pay Estimate No.3 and Final in the amount of$15, from Crostex in connection with CP 6 and

7 Vine Forest Project; and 4) approve Pay Estimate No. 1 in the amount of $389, from Clearwater for the AF 25 Project. DISTRICT WEBSITE Ms. Adams reviewed with the Board a draft of the frequently asked questions ("F AQs") to be included on the District's website, a copy of which is attached hereto. Ms. Adams noted a few minor revisions and that the F AQ's will be posted on the District's website. ATTORNEY'S REPORT Ms. Adams then presented to the Board the Amended Attorney Fee Agreement and explained that such agreement is necessary due to Radcliffe Bobbitt's name change and that there are no proposed rate changes at this time. Upon motion by Director Bush, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize execution of the Amended Attorney Fee Agreement with Radcliffe Bobbitt. A copy of the Agreement is attached hereto. Ms. Adams then reported that Radcliffe Bobbitt is addressing comments on the Emergency Water Supply Agreement with HCMUD Nos. 290 and 106 for the Interconnect Project. In connection with the request for annexation of the acres located east of the Park at AF subdivision, Ms. Adams reported that the District has not yet received the executed Letter of Intent ("LOI") or the Annexation Agreement from JSD International Investment, L.P. ("JSD International"). Director Campbell then reported that he has noticed clearing of the acres. Ms. Adams then noted that she has informed JSD International that if it moves forward with construction, it does so at its own risk. Ms. Adams then presented the Financing of Facilities Agreements with Woodmere and explained that such agreement covers the development of the remaining portions of CP East, AF and the CP Detention Pond expansion that are still being developed. Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize execution of the Financing Agreements with Woodmere, a copy of which is attached hereto. Ms. Adams then updated the Board with regard to the Water Line Easement Agreement (Atascocita Forest, Section of an acre) (the "Water Line Easement") and reported that Canh Phuoc Le and Bich Thuy Nguyen (the "Property Owners") located at Lot 4, Block 4 of AF, Section 23 have agreed to grant the District such easement for $1, Ms. Adams then explained that the District's current insurance policies expire on June 13,2015, and, therefore, Board action on the insurance renewal proposals is recommended at the Board's April 2ih meeting. The Board then requested that proposals from Harco Insurance Services ("Harco"), the District's current insurance carrier, as well as McDonald & Wessendorff ("McDonald"), Highpoint Insurance Group, LLC ("Highpoint") and AquaSurance LLC ("AquaSurance"), be obtained for review and consideration. Upon motion by Director Bush, seconded by Director Campbell, after full discussion and the question being put to the Board, the

8 Board voted unanimously to authorize Radcliffe Bobbitt to obtain insurance renewal proposals from Harco, McDonald, Highpoint and Aquasurance. ELECTION AGENDA ADOPT ORDER DELCARING UNOPPOSED CANDIDATES ELECTED TO OFFICE AND CANCELING ELECTION Ms. Adams then presented the Order Declaring Unopposed Candidates Elected to Office and Canceling Election (the "Order") for the Board's adoption and approval, a copy of which is attached hereto. Ms. Adams explained that, since the incumbent directors are unopposed, the District is not required to hold a Directors Election. Upon motion by Director Campbell seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to adopt the Order, thereby declaring Directors Campbell and Gholson each elected to office for four (4) year terms to expire in May Ms. Adams stated that oaths of office would be administered at the May 2015 Board meeting. Ms. Adams noted that a copy of the Order would be posted in the District where the meeting notices are posted and at Silver Bend Drive, the Election Day polling place, as required by the provisions of the Texas Election Code. MAY 9, 2015 OPERATIONS AND MAINTENANCE TAX ELECTION (THE "ELECTION") REVIEW AND DISCUSS LOCATING POLLING PLACES AND OBTAINING ELECTION JUDGES AND CLERKS Ms. Adams reported that the Atascocita Volunteer Fire Department is not located within the boundaries of the District and, as such, cannot be a polling location for any District elections. Ms. Adams then informed the Board that Woodmere offered the District with two (2) model homes as potential polling locations and that the Election will be held at Silver Bend Drive. ESTABLISH HOURL Y RATES FOR ELECTION OFFICIALS The Board then discussed setting hourly rates for the Election officials. Upon motion by Director Campbell, seconded by Director Smith, after full discussion and the question being put to the Board, the Board voted unanimously to set the Presiding Judge rate at $15.00 per hour and the Early Voting Clerk and Election clerks at $12.00 per hour. REVIEW AND APPROVE AGREEMENT BETWEEN THE COUNTY AND THE DISTRICT RELATING TO THE LEASE OF THE DIRECT RECORDING ELECTRONIC EQUIPMENT ("DRE") (THE "ELECTION AGREEMENT") Ms. Adams then reported that the County has provided the District with the Election Agreement. Ms. Adams explained that the purpose of the Election Agreement is to set forth the terms for the lease of the DREs which must be used for the upcoming Election in accordance with the requirements of the Help America Vote Act of

9 Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize execution of the Election Agreement. AUTHORIZE PAYMENT TO THE COUNTY FOR THE LEASE OF THE DREs Ms. Adams then reported that, pursuant to the Election Agreement, the District will be required to submit a deposit to the County representing 60% of the District's estimated costs associated with the lease of the DREs. Upon motion by Director Campbell, seconded by Director Bush, after full discussion and the question being put to the Board, the Board voted unanimously to authorize the issuance of a check to the County for the deposit associated with the lease of the DREs. STRATEGIC PARTNERSHIP AGREEMENT ("SPA") WITH THE CITY Ms. Adams then updated the Board with regard to the SPA with the City and reported that BGE has reviewed the metes and bounds from the City. Ms. Adams went on to report that a small portion of the commercial areas located in the northwest corner of Atascocita Road and Will Clayton Parkway will not be included in the District's SPA because it is within the boundaries of the Metropolitan Transit Authority. Ms. Adams then informed the Board that the District needs to establish two (2) public hearing dates and recommended that a public hearing be held at the Election Town Hall Meeting and that the second (2 nd ) public hearing may be held at the April 2ih Board meeting. Ms. Adams then reported that signs will need to be posted for both public hearings and the Town Hall meeting and that such signs will need to be posted in the District. Ms. Adams then stated that Radcliffe Bobbitt will have the signs made and pass same on to the Operator for posting at the entrances of the neighborhoods in the District. Discussion then ensued regarding the dates for the Election Town Hall meeting and first SPA public hearing and the Board set such date to be April 8, 2015 at 6:30 p.m. at Whispering Pines Elementary School, and in the alternative, April 20, REVIEW OF CONSULTANT CONTRACTS The Board had no comments on the consultant contracts at this time. MISCELLANEOUS MATTERS Ms. Adams then noted that the next regular meeting of the Board is scheduled for Monday, April 27, 2015, at 11:00 a.m. There being no further business to corne before the Board, the meeting was adjourned. PASSED, APPROVED and ADOPTED this 2th day of April, Secr ary,. oard of Directors 9