MINUTES FULSHEAR MUNICIPAL UTILITY DISTRICT NO. 1 OF FORT BEND COUNTY. April 27, 2016
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1 MINUTES FULSHEAR MUNICIPAL UTILITY DISTRICT NO. 1 OF FORT BEND COUNTY April 27, 2016 The Board of Directors (the 1/Board") of Fulshear Municipal Utility District No.1 of Fort Bend County (the 11 District") met in regular session, open to the public, on the 27th day of April, 2016, at the offices of Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Houston, Texas, outside the boundaries of the District, and the roll was called of the members of the Board: ' Brian Cogburn Brooks D. Tueting _ Tracy Bozeman Eugene R. Baker Donald T. Keller, Jr. President Vice President Secretary Assistant Secretary I Asst. Vice President Assistant Secretary I Asst. Vice President and all of the above were present, thus constituting a quorum. Also present at the meeting were Ron Catchings, a resident of the District; Julia McCain of McCall Gibson Swedlund Barfoot PLLC; Julie Peak of First Southwest Company; Dave Cannon of Trend Development, Inc.; Ralph Wissel and DeKecha Shepherd of Costello, Inc. ("Costello"); Tina Kelsey of Myrtle Cruz, Inc.; Kristen Scott and Odett McMullen of Bob Leared Interests; and Ryan Harper and Kristen Hogan of Allen Boone Humphries Robinson LLP. MINUTES The Board considered approving the minutes of the February 24, 2016, regular meeting. Following review and discussion, Director Baker moved to approve the minutes. Director Cogburn seconded the motion, which passed unanimously. COMMENTS FROM THE PUBLIC There were no public comments. DISTRICT WEBSITE Mr. Wissel presented and reviewed with the Board a storm event exhibit showing the impact of the recent heavy rain event. After review and discussion, the Board directed Costello to prepare a description to post with the exhibit on the District's website.
2 ENGAGEMENT OF AUDITOR TO CONDUCT AUDIT FOR FISCAL YEAR END AND SUPPLEMENTAL DEVELOPER REIMBURSEMENT REPORT FOR SERIES 2015 BONDS Ms. McCain presented a new engagement letter from McCall Gibson Swedlund Barfoot PLLC to prepare annual audits and developer reimbursement reports for the District, including the annual audit for the fiscal year ending April 30, 2016, and a supplemental developer reimbursement report for the District's $4,660,000 Unlimited Tax Bonds, Series 2015 (the "Series 2015 Bonds"). She said fee estimates will continue to be provided to the District's bookkeeper. After review and discussion, Director Keller moved to approve and authorize execution of the new engagement letter from McCall Gibson Swedlund Barfoot PLLC. Director Cogburn seconded the motion, which passed unanimously. SUPPLEMENTAL DEVELOPER REIMBURSEMENT REPORT FOR SERIES 2015 BONDS Ms. McCain distributed and reviewed a supplemental reimbursement report reflecting additional amounts due to the developer from proceeds of the District's Series 2015 Bonds, including interest calculated through April 27, After review and discussion, Director Cogburn moved to approve the supplemental reimbursement report and authorize disbursement of $36, to the developer pursuant to the report. Director Tueting seconded the motion, which passed by unanimous vote. FINANCIAL AND BOOKKEEPING MATTERS AND BUDGET FOR FISCAL YEAR END APRIL 30, 2017 Ms. Kelsey distributed the bookkeeper's reports for March and April, including the monthly investment reports and budget comparisons, and the bills presented for payment from the District's accounts, copies of which are attached. She reviewed the April report with the Board. After review and discussion, Director Cogburn moved to approve the bookkeeper's reports and payment of the bills. Director Tueting seconded the motion, which passed unanimously. BUDGET FOR FISCAL YEAR END APRIL 30, 2017 Ms. Kelsey reviewed the District's proposed budget for the fiscal year ending April 30, 2017, noting a proposed revision to the amount budgeted for auditing expenses. After review and discussion, Director Cogburn moved to adopt the District's budget for the fiscal year ending April 30, 2017, with the noted revision. Director Tueting seconded the motion, which passed unanimously. -2-
3 TAX ASSESSMENT AND COLLECTIONS MATTERS Ms. Scott distributed the tax assessor I collector's reports for Feb_ruary and March, including the checks presented for payment, copies of which are attached. She reviewed the March report with the Board, noting that 98% of the District's 2015 taxes were collected as of March 31, Ms. Scott reported that the District's 2016 preliminary value from the Fort Bend Central Appraisal District is $135,611,650. After review and discussion, Director Cogburn moved to approve the tax assessor I collector's reports and payment of the tax bills. Director Bozeman seconded the motion, which passed unanimously. ENGINEERING MATTERS Ms. Shepherd presented and reviewed the engineer's report, a copy of which is attached. She updated the Board on the status of projects in the District. FULBROOK ON FULSHEAR CREEK, SECTION 4 WATER, SEWER, AND DRAINAGE FACILITIES Ms. Shepherd updated the Board on this project, as reflected in her report. She said once the contractor pays the charges from Severn Trent Services, Inc. for pumping and hauling sewage while the new pumps were being ordered, a final pay estimate will be prepared and presented for Board consideration and Costello will prepare the acceptance package to be submitted to the City of Fulshear (the "City") for acceptance of the utility facilities. Ms. Shepherd presented and recommended approval of Change Order No. 6, which increases the total contract amount by $42, FULBROOK ON FULSHEAR CREEK, SECTION 4 PAVING FACILITIES report. She said Costello will prepare the acceptance package to be submitted to the City for acceptance of the paving facilities. FULBROOK ON FULSHEAR CREEK, SECTION 8 WATER, SEWER, Ms. Shepherd updated the Board on design of the construction plans for this -3-
4 FULBROOK ON FULSHEAR CREEK, SECTION 9 WATER, SEWER, Ms. Shepherd updated the Board on design of the construction plans for this FULBROOK ON FULSHEAR CREEK, SECTION 10 WATER, SEWER, Ms. Shepherd updated the Board on design of the construction plans for this FULBROOK ON FULSHEAR CREEK, SECTION 11 WATER, SEWER, Ms. Shepherd updated the Board on the status of construction plans for this FULBROOK ON FULSHEAR CREEK, SECTION 12 WATER, SEWER, report. She said there were no action items for consideration. DRAINAGE STRUCTURE AND PAVING IMPROVEMENTS FOR FARM HILL WAY report. She said there were no action items for consideration. EXTENSION OF SANITARY SEWER WITHIN LAKE HILL FARM WAY report. She said the project is complete and the acceptance package was submitted to the City for acceptance of the project. BOND APPLICATION NO. 2 AND RESOLUTION AUTHORIZING APPLICATION TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR APPROVAL OF PROJECT AND BONDS Ms. Shepherd updated the Board on preparation of bond application no. 2 to be submitted to the Texas Commission on Environmental Quality ("TCEQ"). Ms. Peak discussed a change to the feasibility and timing for bond application no. 2, based on the -4-
5 District's 2016 preliminary value as reported by Ms. Scott. She said the application may be submitted on an expedited basis since the District's 2016 preliminary value reflects a debt to value ratio in excess of ten to one. Mr. Harper presented a Resolution Authorizing Application to the Texas Commission on Environmental Quality for Approval of Project and Bonds for submittal of bond application no. 2 to the TCEQ. After review and discussion, Director Keller moved to approve the engineer's report and take the following actions, based on the engineer's recommendation: (1) approve Change Order No. 6 for a net increase of $42, for construction of the water, sewer, and drainage facilities to serve Fulbrook on Fulshear Creek, Section 4; and (2) adopt the Resolution Authorizing Application to the Texas Commission on Environmental Quality for Approval of Project and Bonds for submittal of bond application no. 2. Director Cogburn seconded the motion, which passed unanimously. DEEDS AND EASEMENTS, ENVIRONMENTAL PROPOSALS, AND CONSENTS TO ENCROACHMENT The Board considered approving a Public Utility Easement for the following easement tracts previously conveyed to the District for facilities to serve Fulbrook on Fulshear Creek, Section 12: (1) acre water line easement tract; and (2) acre sanitary sewer easement tract. The Board next reviewed a proposal from Berg Oliver Associates, Inc. in the amount of $2, for a Phase I Environmental Site Assessment for five tracts totaling acres, including Reserve D in Section 4, Fulbrook on Fulshear Creek, and adjacent property, and the right-of-way within Fulbrook on Fulshear Creek, Section 12. After review and discussion, Director Bozeman moved to approve the Public Utility Easement and the proposal from Berg Oliver Associates, Inc. in the amount of $2, Director Keller seconded the motion, which passed unanimously. UTILITY CONVEYANCE AND SECURITY AGREEMENTS There were no matters for consideration under this item. PARK PROJECTS The Board reviewed the landscape architect's report from Sweitzer & Associates reflecting the status of projects in the District. A copy of the landscape architect's report is attached. -5-
6 POCKET PARK IMPROVEMENTS AND PROPOSED PLAY AREA AT LODGE/RECREATION CENTER The Board noted that this project is on hold for the next phase of development, as reflected in the landscape architect's report. There were no items for consideration. LANDSCAPE DEVELOPMENT OF FULBROOK ON FULSHEAR CREEK, SECTIONS 8, 9, AND 10 The Board noted the status of design of the plans for this project, as reflected in the landscape architect's report. There were no action items for consideration. MOWING AND MAINTENANCE OF DISTRICT LANDSCAPING Mr. Cannon discussed a report from Jerry Young regarding a horseshoe pit installed by a District resident at the end of Trickle Creek. Mr. Wissel discussed plans to convey such reserve property to the District in the near future. The Board concurred to consider sending a letter to the resident regarding the encroachment once the property is conveyed to the District. Mr. Wissel discussed the proposal previously presented by Glamco to fill in and sod the low area at the northwest corner of Lot 1, Block 7 in Section 1. He said the property is not currently owned by the District. Mr. Wissel recommended no action until the property is conveyed to the District. EROSION PROTECTION ALONG FULSHEAR CREEK Messrs. Wissel and Harper discussed the proposed letter of no objection regarding the proposed use of the District's drainage system to serve the Westpark expansion, and the pending slope erosion project. The Board noted its prior action to authorize Director Tueting to execute the letter. REPORT ON DEVELOPMENT Mr. Cannon gave a brief report on development in the District. There being no further business to come before the Board, the meeting was adjourned. -6-
7 LIST OF ATTACHMENTS TO MINUTES Minutes Page Bookkeeper's reports for March and April... 2 Tax assessor/ collector's reports for February and March... 3 Engineer's report... 3 Landscape architect's report
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