HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 286
Minutes of Board of Directors Meeting
September 12, 2011
ACTIONS TAKEN
1.
The Board of Directors (“Board”) voted to approve the minutes of the July 11,
2011 meeting as written.
2.
The Board voted to approve the minutes of the August 1, 2011 meeting as
written.
3.
The Board voted to approve the Harris County Constable's Security Patrol
Report for August 2011.
4.
The Board approved the Tax Assessor-Collector’s Report as presented by JoAnn
Ramos of Utility Tax Service, L.L.C. (“UTS”), including payment of the bills
associated therewith.
5.
The Board authorized Mr. Creed to draft a combined annual maintenance
contract with Bryan Gardens.
6.
The Board approved the Operations and Maintenance Report as presented by
Eric Thiry of Environmental Development Partners, L.L.C. (“EDP”).
7.
The Board authorized Dennis Eby of Eby Engineers, Inc. (“Eby”) to have
plumbing contractor complete repairs to be done on multiple water fountains at
the park.
8.
The Board authorized Eby to engage the proposed certified park safety inspector
to complete semi-annual inspections of the park.
9.
The Board approved the Engineering Report presented by Dennis Eby of Eby
Engineers, Inc. and certain action items contained therein.
10.
The Board approved the Bookkeeper’s Report as presented by Claudia Redden of
Claudia Redden & Associates, L.L.C., including the checks presented for
payment, and adopted its fiscal year 2012 operating budget.
11.
The Board authorized an expense of up to $ 4,000.00 to be dedicated to the
provision of educational materials and food costs at an upcoming water
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conservation presentation to be given in coordination with the National Night
Out event.
12.
The Board approved a proposed debt service tax rate of $ .0475 and a proposed
maintenance tax rate of $ .1325 and authorized UTS to publish notice of its intent
to formally adopt such rate at its next meeting in the format required by law.
______________________________________________________________________________
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The Board of Harris County Municipal Utility District No. 286 ("District") met at
the Board’s regular meeting place, 8015 FM 1960 West, Houston, Harris, County, Texas
77070 on September 12, 2011 in accordance with the duly posted notice of meeting, and
the roll was called of the duly constituted officers and members of said Board of
Directors, as follows:
David Geaslen, President
Paul D. Nicosia, Vice-President
Steve Garner, Assistant Secretary
Michael Rhodes, Secretary
Jeffrey Carlyle, Director
All of said persons were present.
Also present were Deputy Martino and Sergeant Rouse of the Harris County
Constable’s Office, Precinct No. 4; Claudia Redden of Claudia Redden & Associates
L.L.C.; Dennis Eby of Eby Engineers, Inc. ("Eby"); Eric Thiry of Environmental
Development Partners, L.L.C. ("EDP"); JoAnn Ramos of Utility Tax Service, L. L. C.;
Spencer Creed of Schwartz, Page, & Harding, L.L.P. ("SPH"); Mike Merada of Hewlett
Packard Company (“HP”); Brian Attaway of Trammell Crowe Company; Jessica Dixon
of CB Richard Ellis (“CBRE”); and Jacquelin Scott, administrative assistant.
The meeting was called to order at 6:06 p.m. by President Geaslen.
APPROVAL OF MINUTES
The President asked that the approval of past minutes be given first
consideration. Upon motion made by Director Carlyle, seconded by Director Rhodes,
the Board voted unanimously to approve the minutes of the July 11, 2011 meeting as
written.
The President next asked that the August 1, 2011 minutes be considered. After
review, a motion was made by Director Carlyle and seconded by Director Rhodes and
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the Board voted unanimously to approve the minutes of the August 1, 2011 meeting as
written.
SECURITY PATROL REPORT BY THE CONSTABLE'S OFFICE
The President recognized Deputy Martino and Sergeant Rouse, current officers
for the District. The Officers then reported recent activities within the District, as noted
on the Harris County Constable's Security Patrol Report for August 2011, attached
hereto as Exhibit A.
The officers noted that no burglaries were reported and that one small campfire
was intentionally started. Some discussion was then had concerning the recent theft of
security cameras from the park and the way to proceed in dealing with same. The
officers then briefly noted the planned implosion of two buildings on the Lone Star
College “Lonestar” campus in the upcoming month.
After this time, the Officers exited the meeting.
TAX ASSESSOR-COLLECTOR REPORT
JoAnn Ramos was next recognized by the President for discussion of the
District’s tax matters. She disseminated to and reviewed with the Board the Tax
Assessor-Collector’s Report dated August 31, 2011, a copy of which is attached hereto
and considered a part of these minutes as Exhibit B.
Ms. Ramos discussed four checks listed on her report. She additionally stated
that the collection of 2010 taxes was at 93%. Upon some discussion from the board, the
listed postage fees were explained by Ms. Ramos. She explained that the postage for all
notices and other correspondence were paid semi-annually and that the postage listed
this month was the corresponding charge for this portion of the year. She also explained
that the Tax Assessors fees were also on the report. Finally Ms. Ramos pointed out that
the matter of the two (2) delinquent accounts discussed the previous month for the park
and trail properties were paid as discussed and that those matters were completed.
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Director Carlyle then moved that the Tax Assessor-Collector Report be approved
as presented, and that the checks, as identified in said report, be approved for payment.
Director Nicosia seconded said motion, which carried unanimously.
2011 TAX RATE RECOMMENDATION
Mr. Creed presented the board with the recommendation of the District’s
Financial Advisor, RBC capital markets (“RBC”), regarding the proposed of 2011 debt
service tax rate, a copy of which is attached hereto as Exhibit C. He noted that RBC is
recommending a proposed 2011 debt service rate of $.06. A discussion ensued
concerning the decrease in the District’s overall taxable value over the last several years,
the proposed operating budget for the upcoming fiscal year, and the District’s
remaining debt service schedule for its outstanding bonds. The Board noted that it
desired to maintain the same allocation among its debt service and maintenance tax
rates as levied in 2010, in order to maintain flexibility and the ability to increase its
maintenance tax in the future, and transfers can be made from the operating fund to the
debt service fund as required. There next followed a discussion concerning the
requirements for notice of the District’s intention to adopt a 2011 tax rate pursuant to
the Texas Water Code. Following discussion, Director Nicosia moved that the Board
propose a 2011 debt service tax rate of $ .0475 and a maintenance tax rate of $ .1325 and
that the District’s tax assessor-collector be authorized to publish notice of the District’s
intention to adopt a 2011 tax rate at its next meeting in the form and time required by
law. Ms. Ramos advised that the notice would be published by UTS in the Houston
Chronicle in the Neighborhood News section.
OPERATIONS REPORT
The Board next considered the Operations and Maintenance Report. Mr. Eric
Thiry of EDP then presented and reviewed with the Board the Operations and
Maintenance Report dated September 9, 2011, a copy of which is attached hereto as
Exhibit D.
Mr. Thiry informed the Board that all meters registering in excess of one million
gallons had been replaced as of the present time. He also noted that he was preparing
for the draining and inspection of the aeration basin and clarifier at the Wastewater
Treatment Plant within the next two weeks.
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Mr. Thiry then explained that at the Jones Road Lift station there are three
pumps and that one had to be brought into the shop for repairs. He further noted that
to repair the damage would cost approximately $1,000.00.
Mr. Thiry then remarked that Item #3 on his report, regarding Lonestar, was still
in progress. He also explained that a service inspection of the central plant is to be done
at Lonestar. He also noted that backflow preventers will need to be installed in that
plant.
Mr. Thiry next addressed the rectification of a previous violation notice and
directed the Board’s attention to page 7 of his report to view the notice posted in
accordance with rectification of such.
Mr. Thiry then recalled the issue of the valve survey as addressed in the August
Board meeting. He further explained that the residential survey was complete and that
the commercial survey was in progress and would be completed soon so that the
corresponding information could be added to the District’s maps. President Geaslen
asked that this be completed immediately and Mr. Thiry verified that he would have
this resolved before the October Board meeting. He further noted that he was working
with Mr. Eby and will commence minor valve repairs soon.
Next Mr. Thiry addressed the mowing proposals with Bryan Gardens that were
to become effective September 1, 2011 for the District’s plant and lift station sites. He
verified that he was working out some insurance issues but that they will start mowing
this month.
At this time Mr. Creed interjected and asked that the multiple proposals with
Bryan Gardens be addressed. He focused the discussion on the 10 separate proposals
that the District currently has with Bryan Gardens. He verified that these proposals add
up to a sum of approximately $50,000.00 and recommended that these individual
proposals be consolidated into one contract. He proposed that he be authorized to draw
up this general contract covering all the current and proposed work with Bryan
Gardens at a cost not to exceed $350.00 to the Board. The motion to authorize Mr. Creed
to draft a combined annual contract with Bryan Gardens to be effective October 1, 2011
was made by Director Rhodes and seconded by Director Carlyle, which carried
unanimously.
Mr. Thiry then directed the Board’s attention back to the Operations Report and
reviewed the billing and collections summaries. Mr. Thiry apologized for the water
accountability figures being incorrect and noted that he will work to correct those
issues.
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Mr. Thiry advised that there were no violations at the Wastewater Plant and that
everything is operating as normal. He then relayed that the high number of customer
service calls reflected in his report were mostly inquiries regarding high water bills and
one leak was found and repaired. He further noted that the high number of delinquent
accounts listed in his report were most likely due to the fact that the notices were
mailed out earlier than usual this month. He reported that there were to be no
disconnects.
After discussion, Director Carlyle moved that the Operator’s Report be approved
as presented. Director Nicosia seconded said motion, which unanimously carried.
ENGINEERING REPORT
President Geaslen then recognized Mr. Eby for presentation of the Engineer’s
Report dated September 12, 2011, relative to the status of various projects within the
District, a copy of which is attached hereto as Exhibit E.
Mr. Eby stated that there was no report available yet regarding the inspection of
the flare at the Water Plant. He also verified that he did provide a key so that Mr.
Cummins can do inspections and provide reports for next month.
Mr. Eby reported that surveys for two easements required in the Centre at
Cypress Creek are being completed and that the same would be presented to Mr. Creed
in the near future to get the dedications prepared and recorded. He also noted that the
installation of the two backflow preventor valves is still to be scheduled within the
upcoming weeks, but that the Centre representatives are continuing to work towards
compliance with the District’s outstanding requirements.
Mr. Eby then addressed the wastewater permit renewal. He advised that a copy
of the Texas Commission on Environmental Quality’s (“TCEQ”) letter was included in
his report and that the application was declared administratively complete on August
19, 2011. He explained that the application will now be in the process of review for
technical issues.
Mr. Creed then discussed with the Board the requirements to publish notice of
the District’s application in a TCEQ proscribed format in both an English and Spanish
language paper. He stated that such notice had been placed in the La VOZ newspaper
already and that it would be published in the Houston Chronicle later this week.
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Mr. Creed reviewed the costs of the publication with the board and noted that
similar notices would be required to be published once the District’s application was
formally approved by the TCEQ.
Mr. Eby then briefly showed the progress on the District utility maps in the
commercial areas. He noted that he still wanted to review and verify some Commercial
areas. He expressed that he is anticipating being able to hand out bound District maps
to the Board in the near future.
Next Mr. Eby addressed a report he had received from Bryan Gardens regarding
some dead trees in the park and trail areas and their proposed removal. This was
followed with discussion by the Board as to what areas were of concern and
responsibility, and the best way to handle various dead trees. Mr. Eby agreed to view
the trees at issue himself and report back with his recommendations.
Mr. Eby then discussed the issue of the water fountains in the park. He advised
that they can be fixed in the upcoming week as he found a plumber who is familiar with
repairing this style of fountain. He noted that the plumber will open the two fountains
up and replace the three regulators which are broken, at a total cost not to exceed
$1,000.00. Mr. Eby also advised that the other option available is to replace the
fountains with a new “freeze proof” type which would cost upwards of $6,000.00.
After some discussion, Director Rhodes made a motion to approve the proposed
repairs to the two fountains as long as the total repairs were less than $1,000.00. Mr.
Carlyle seconded the motion and it carried without dissent.
Mr. Eby additionally noted that he would attempt to manually reset the Comcast
router for the stolen security cameras. He explained that the reset must be done before
he can view the footage of the time period immediately before the camera theft. He
advised that not only would this hopefully be helpful in finding the persons responsible
but that it would also help to determine how to proceed with the camera replacement.
Mr. Eby clarified that the company which the cameras were purchased through had not
been paid yet as the cameras were never adjusted to proper working condition since the
time of installation. He advised that this company is also willing to work with the Board
to come up with an amicable solution.
At this time Director Carlyle interjected that he would submit to the County
Commissioner for Precinct #4 to have the graffiti on a building along the path painted
over in the near future.
Mr. Eby then made a comment that a proposal from Bryan Gardens was
included in his report but that it was going to fall under the scope of the contract that
Mr. Creed was asked to prepare.
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Mr. Eby commented that Item #8 of his report was the playground inspection
proposal as previously requested by the Board. He clarified that the quote was to have a
certified park safety Inspector come inspect the playground and equipment quarterly
and to prepare a report for any needed repairs. The proposal bid was $2,400.00. After
some discussion, the board decided that they would prefer that the inspections be done
semi-annually and that the proposal should be modified to reflect such.
Director Nicosia made a motion to accept the modified proposal including two
inspections per year at half the stated cost of the four (i.e. $1,200.00) and this motion
was seconded by Director Carlyle and carried unanimously. Mr. Eby advised that he
would contact the inspector to confirm the inspections could be performed at that
schedule and price.
Mr. Eby next reported on the matter of the alleged violation from the water plant
inspection as listed by the TCEQ from December of 2010. He noted this violation states
that the District must have a contract for water supply with the North Harris County
Regional Water Authority (“NHCRWA”). As mentioned in previous meetings, Mr. Eby
explained that the TCEQ staff member who he has been corresponding with demands
“compliance” via a signed contract with the NHCRWA and continues to argue for a
contract that allows the District to take 20% of its water from the NCHRWA. At this
time the NHCRWA refuses to provide such contract as it is unnecessary, he advised. He
noted that he is advancing the issue to the next level of management in an attempt to
have it resolved. He verified that he had contacted Mike Boyer, and engineer for the
NHCRWA, who has agreed to help resolve the confusion.
Mr. Eby confirmed that the chloramine credit paperwork was submitted to the
NHCRWA for review by their engineer. He remarked that there is one item that the
NHCRWA may potentially not reimburse as it is not specifically provided for in the
regulations. He explained that reimbursing the connection to the second tank was not in
the NHCRWA regulations and therefore does not necessarily have to be reimbursed. He
did denote that this connection was actually beneficial to the NHCRWA and therefore
they have motivation to accept it, but that he is waiting to hear back on that topic. Mr.
Eby stated that once the credit paperwork is approved by the NHCRWA the monthly
credit will appear on the District’s bill. After some discussion the Board requested to
know what that reimbursement would amount to. Mr. Eby remarked that it would be
approximately $320,000.00 spread out through credits over 20 years of bills.
At this time the Board revisited the issue of the water fountains and the concern
about potential damage due to freezing in the future. The Board then requested that Mr.
Eby inquire as to whether or not it was possible to have the plumber install a drain
valve. Mr. Eby agreed to look into the matter.
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Director Nicosia moved that the Engineering Report be approved as presented,
the required publications for renewal of the waste discharge permit be authorized and
that Brian Gardens proposal for removal of 13 dead trees from the park at a cost of
$2,200.00 be approved. Director Rhodes seconded the motion, which unanimously
carried.
BOOKKEEPING REPORT AND OPERATING BUDGET FOR FISCAL YEAR 2012
The Board considered the Bookkeeper’s Report. In connection therewith, Ms.
Redden reviewed with the Board the Bookkeeping Report dated September 12, 2011, a
copy of which is attached hereto as Exhibit F, including the checks presented for
payment.
Ms. Redden addressed the checks from the last meeting and the additional four
checks circulating for signatures. She then reviewed the figures on the report.
Ms. Redden reviewed the payment schedule for the Strategic Partnership
Agreement and the corresponding documentation in the report. She then continued to
discuss some items of comparison on the draft budget, a copy of which is attached to
the bookkeeping report.
Ms. Redden noted that the Board had indicated its intention to adjust the
budgeted maintenance tax revenue to $461,000.00. She also verified that the
Chasewood fees (line items 41600 and 61900) were to be reduced to $200,000, per the
earlier discussion. She further advised that $10,000.00 will be written into the budget for
the expenses of the upcoming election and $11,000.00 added for publication costs
associated with renewal of the waste discharge permit. Some discussion was had as to
the way the breakdown of expenses was labeled.
A motion to adopt the new budget with the noted changes was made by Director
Garner and seconded by Director Carlyle. The motion carried without dissent.
After discussion, Director Rhodes moved that the Bookkeeping Report be
approved as presented. Director Nicosia seconded said motion, which unanimously
carried.
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DEVELOPERS' REPORTS
HEWLETT-PACKARD COMPANY
The Board recognized that there was no new business to discuss regarding HP.
GENESIS
No representative of Genesis Capital Partners L.L.C. was present at the meeting.
CENTRE AT CYPRESS CREEK
Ms. Dixon explained that there had been an odd instance of some water
discoloration but that the District had responded promptly and that the color change
was only temporary and had resolved itself.
LONE STAR COLLEGE SYSTEM (“LONESTAR”)
Director Garner noted that Lonestar is in the process of signing more tenants.
TCH NORTH WEST ASSOCIATES L.P. (Trammell Crowe)
At this time Brian Attaway of Trammell Crowe introduced himself and
explained that he would be replacing Mr. Restum. He then briefly noted that his
company is interested in getting the backflow preventor approved and installed
quickly.
Mr. Eby informed Mr. Attaway that the District does not provide the
specifications for the backflow preventers as that is a function of the state. He advised
that he would provide the appropriate contact information for Mr. Attaway.
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UTILITY COMMITMENT REQUESTS
There were no utility commitment requests presented for consideration.
ATTORNEY’S REPORT
The Board next considered the attorney's report as presented by Mr. Creed.
Mr. Thiry noted that he had been given a box of District records from Sherry
Allard, the previous administrative assistant, and the Board advised that he hand them
over to Mr. Creed. Mr. Creed accepted the box of documents.
Mr. Creed stated he had no further business to discuss.
CONSIDER STATUS OF DISTRICT WEBSITE
At this time Miss Scott notified the Board that she was unable to solicit a
response from Don Dulin who holds certain access authorization for the District’s
website. She stated that she had made the requested website corrections to the best of
her ability, but could not proceed further until she was able to get more information
from the webmaster. She noted that she lacked authorization to make formatting
changes as requested by the Board previously. Director Carlyle offered to make some
attempts to contact Don Dulin to get the required information and noted that he would
advise when contact was made.
SUBMISSION OF CRITICAL LOAD STATUS INFORMATION TO RETAIL
ELECTRIC PROVIDER
Mr. Creed reported that House Bill 2619, recently enacted by the 82nd Texas
Legislature, amends Section 13.1396, Water Code, to require that a district must
annually submit to each electric distribution utility and each retail electric utility
provider, on forms reasonably required by each entity, its facilities which qualify for
critical load status and various emergency contact information to the county judge of
each county in which the district has critical load facilities. After discussion on the
matter, Director Garner moved that the District’s operator be authorized to make such
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annual filings on behalf of the District. Director Nicosia seconded the motion, which
carried unanimously.
PARTICIPATION BY DISTRICT IN UPCOMING NATIONAL NIGHT OUT EVENT
Director Nicosia requested that the Board address the issue of the upcoming
National Night Out Event and their desired level of participation.
After some discussion, Director Garner made the suggested motion that a sum
not to exceed $4,000.00 be allocated towards this event. Director Rhodes seconded the
motion which carried unanimously. The Board noted that the meeting is to be held on
October 4, 2011 at the park, which is a District facility, and that the Operator will speak
to the community about water conservation and related topics. Mr. Thiry advised that
he would try to obtain the NHCRWA’s media trailer for that event. The Board noted
that the funds allocated for the event were for the purpose of presenting the program
materials and to offset associated food costs.
ADJOURNMENT OF BOARD MEETING
Citing no further business to come before the Board at this time, Director Carlyle
made a motion to adjourn at 7:47 p.m., duly seconded by Director Nicosia, which
carried without dissent.
________________________________
Secretary
251502.1
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