Rick King, President L'Sheryl D. Hudson, Vice President Richard A. Skotak, Secretary Erich R. Bell, Director R. Michael Haney, Director
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1 BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 6 Minutes of Meeting of Board of Directors October 8, 2013 The Board of Directors (the "Board" ) of Brazoria County Municipal Utility District No. 6 (the "District" ) met in regular session, open to the pubhc, at 1300 Post Oak Boulevard, Suite 1400, Houston, Texas 77056, on October 8, 2013, in accordance udth the duly posted notice of meeting, and the roll was called of the duly constituted officers and members of said Board, as follows: Rick King, President L'Sheryl D. Hudson, Vice President Richard A. Skotak, Secretary Erich R. Bell, Director R. Michael Haney, Director and all of said persons were present, with the exception of Director Haney, who entered later in the meeting as indicated below, thus constituting a quorum. Also present were Bryan Jordan and Scott Wright of Jones & Carter, lnc. ("J&C");Chris Wilson of Si Environmental, LLC ("Si");Mark Burton of Municipal Accounts & Consulting, L.P. (" Municipal Accounts" ); Corey Laughner of KGA/DeForest Landscape Design, L.L.C. ("KGA"); David Patterson of Assessments of the Southwest; and Peter Harding and Kara Dillman of Schwartz, Page & Harding, L.L.P.("SPH"). The President called the meeting to order and declared it open for such business as might regularly come before it. MINUTES The Board considered the minutes of its meeting held on September 10, After discussion regarding the minutes previously forwarded for review, it was moved by Director Skotak, seconded by Director King, and unanimously carried, that said minutes be approved, as written. HEARING REGARDING VIOLATION OF THE DISTRICT'S RATE ORDER Mr. Harding reported that written notice of Rate Order violation had been prepared and submitted to the Summerwind Apartment Complex ("Summerwind") in accordance with Texas State law. A copy of said correspondence is attached hereto as Exhibit A. Mr. Wilson advised that no response had yet been received from Summerwind management. He stated that he had not recently inspected the drainage ditch behind Summerwind and was therefore not currently aware if the refuse had yet been properly disposed of. Mr. Wilson also reported that the $200
2 penalty levied at last month's meeting upon the Cinemark Theatre ("Cinemark"), located in the Silverlake Shopping Center, had been included in Cinemarlds October water bill, payment of which is due by October 18, Mr. Harding advised that SPH will forward new violation letters to both Summerwind and Cinemark. After discussion, the Board concurred to defer further action until next month's meeting. TAX ASSESSOR-COLLECTOR'S REPORT Mr. Patterson distributed and reviewed the tax assessor-collector's report for September 2013, and Unpaid Accounts Tax Roll as of September 30, 2013, copies of which are attached hereto as Exhibit B. After discussion, on motion made by Director King and seconded by Director Bell, the Board voted unanimously to approve the report and authorize the payments listed therein. DKLINOUENT TAX COLLECTIONS REPORT Mr. Harding presented and reviewed with the Board the delinquent tax collections report from Perdue, Brandon, Fielder, Collins & Mott L.L.P. (" Perdue Brandon"), the District's delinquent tax collection attorneys, regarding legal action taken on delinquent tax accounts, a copy of which report is included with the tax assessor-collector's report. Mr. Harding noted that no Board action was necessary. PUBLIC HEARING REGARDING ADOPTION OF THE DISTRICT'S 2013 TAX RATE; LEVY OF THE DISTRICT'S 2013 TAX RATE AND ADOPTION OF AN ORDER IN CONNECTION THEREWITH The President next convened a hearing regarding the imposition of a proposed debt service tax rate and a maintenance tax rate for It was noted that no members of the public were in attendance. carried, the hearing Upon motion by Director King, seconded by Director Bell and unanimously was closed. The Board then discussed the setting of the 2013 tax rate. Mr. Patterson confirmed that the notice had been published in the Pearland Reporter in accordance with all legal requirements and as directed at the previous meeting and presented an Affidavit of Publication. After discussion on the matter, Director Skotak moved that: (i) the Board adopt the tax rate as proposed at the District's September 10, 2013, meeting and as reflected in the notice; (ii) the Board levy a 2013 debt service tax rate of $0.60 per $100 of valuation and a 2013 maintenance tax rate of $0.03 per $100 of valuation, resulting in a total 2013 tax rate of $0.63 per $100 of valuation; and (iii) the Order Levying Taxes attached hereto as Exhibit C be adopted in connection therewith and that the President be authorized to execute and the Secretary to attest same on behalf of the Board and the District. Director Bell seconded said motion, which carried unanimously. -2-
3 APPROVE AMENDMKNT TO DISTRICT INFORMATION FORM Mr. Harding presented and discussed with the Board an Amendment to the Seventh Amended and Restated District Information Form ("DIF") relative to the District's tax rate. After discussion regarding the amendment to the DIF, Director Skotak moved that the amended DIF be approved and that the Board members present be authorized to execute same on behalf of the Board and the District. Director Bell seconded said motion, which carried unanimously. STATUS OF COMPLIANCE BY THE DISTRICT WITH TEXAS GOVERNMENT CODE, CHAPTER 2265 With regard to the District's compliance with Texas Government Code, Chapter 2265, Mr. Harding advised that pursuant to the energy efficiency and reporting requirements set forth in said code, the District must report its annual electricity usage and cost and make said report accessible to the public. Mr. Burton noted that a Cost and Usage Report is attached to the bookkeeper's report, that the District is in compliance, and that no further action is required at this time. Mr. Harding advised that due to changes enacted during the 83'exas Legislative Session, 2013 would be the last year the District would need to comply with Texas Government Code, Chapter RENEWAL OF LAW ENFORCKMKNT AGREEMENT Mr. Harding reviewed the status of the side agreement with Brazoria County Municipal Utility District No. 3. He advised that S.B. 902, passed during the Texas 83" Legislative Session, will not have an impact on Brazoria County Municipal Utility District No. 3's ("No. 3") payment procedures with the County. The Board agreed to continue payment to No. 3 as the District has done in the past without a written agreement relative to same. Director Haney entered the meeting OPERATIONS AND MAINTENANCE at this time. REPORT Mr. Wilson presented and reviewed with the Board an operations and maintenance report for the month of September 2013, a copy of which is attached hereto as Exhibit D. Mr. Wilson reported that Si is currently in the process of re-measuring the square footage of a number of businesses within the District, including Randall's, to ensure that all additional deposits made by commercial entities have been correctly calculated in accordance with the District's Rate Order. Mr. Wilson next addressed the Board regarding the District's compliance history as published by the Texas Commission on Environmental Quality ("TCEQ"). In that regard, he reported that the District has received a satisfactory rating from the TCEQ.
4 ENGINEER'S REPORT Mr. Jordan presented and reviewed with the Board the engineering report dated October 8, 2013, a copy of which is attached hereto as Exhibit E. In regards to the MS4 permit, Mr. Jordan reported that Jones & Carter had prepared the District's annual report to the the TCEQ and requested approval to submit same. Mr. Jordan represented and warranted that all information in the report is true and correct and requested that the President be authorized to execute same on behalf of the Board. Mr. Jordan reported that Brazoria County Municipal Utility District No. 2 had authorized Jones & Carter to advertise for consmrction bids for a rework of Water Well No. 4. He stated that the District had the funds available for this project in their capital projects fund, as the District's share was included in Bond Issue No. 9. He reported that the total estimated cost of the rework is approximately $341,000 and that the District's share is 49.89%, or $170, In regards to construction of the pedestrian bridge across the drainage channel, Mr. Jordan reported that the pre-construction meeting had been held and that the contractor is currently working on submittals for the bridge. In regards to the Rehabilitation of Regional Lift Station No. 5 by Tar Tob Commercial Services ("Tar Tob"), Mr. Jordan reported that a final inspection had been held and that Tar Tob had completed all punch list items that had been addressed by the inspector. He presented Pay Estimate No. 2 and Final to the Board in the amount of $19, and recommended approval of same. After discussion, Director Hudson moved that (i) the president be authorized to execute the District's annual report to the TCEQ in compliance with the MS4 permit and (ii) the Pay Estimate No. 2 and Final submitted by Tar Tob be approved and that the project be accepted. Director Haney seconded said motion, which unanimously carried. PARK PLAN On behalf of KGA, Mr. Laughner presented and reviewed with the Board the Landscape Architect Report dated October 8, 2013, a copy of which is attached hereto as Exhibit F. Mr. Laughlin reported that all playground equipment, soccer goals, backstops and the picnic pavilion will be on site and installed in approximately two weeks. Mr. Laughner presented Pay Application No. 2, in the amount of $250, to the Board for signature and recommended approval of same. A copy of the Pay Application is attached to Exhibit F. Mr. Laughlin next presented to the Board a Change Order for their consideration in the amount of $4,862.00, for the addition of a French drain along either side of the connecting walk running through the reserve, to provide for drainage at pass-throughs. He noted that the area in question is within Silvercreek Community Assocation's reserves, which may allow for their participation in the project. Mr. Laughlin also presented to the Board a Change Order for their consideration that would provide
5 for a net deduct of -$584.00, for the addition of a second switchback ramp to the practice fields on the south side of the large pilot channel ("the channel" ). Director King requested that Jones & Carter investigate the channel before any action is taken by KGA. After discussion, Director Haney moved that the Board approve Pay Application No. 2 in the amount of $250, and that the proposed Change Order providing a second switchback ramp to the practice fields be approved. Director King seconded said motion, which unanimously carried. UTILITY COMMITMENTS The Board deferred consideration of the issuance of utility commitments after being advised by Mr. Wright that no requests had been received since the Board's last meeting. DEVELOPERS'EPORTS The Board deferred consideration of the developers'eports after noting that no representative of a developer was present at the meeting. ATTORNEY'S REPORT In regards to the Silverlake Shopping Center easements and conveyances, Mr. Harding reported that the developer has provided clean title in relation to the Drainage Easement accepted by the District for Kohl's Illinois, Inc. Mr. Harding further reported that Mr. Mclnnis has corrected the form for the related consents to encroachment to cover the pavement and other improvements and noted that the District has yet to receive and approve the related drafts. Mr. Harding advised that it will be necessary for the engineer to develop a map of the Silverlake Shopping Center detailing all existing water and sewer lines in order to clearly denote ownership and ensure that there are no partially privatized lines within the Silverlake Shopping Center. Mr. Jordan and Mr. Wright advised that they would work on developing a map to depict same. BOOKKEEPER'S REPORT Mr. Burton presented and reviewed the bookkeeper's report, dated October 8, 2013, a copy of which is attached hereto as Exhibit G, including the bills which were presented for payment, as prepared by Municipal Accounts. Mr. Burton advised that the upcoming AWBD Winter Conference will be held in Corpus Christi, Texas from January 17 through the 19'" and requested that any other Board members interested in attending the Conference register online through AWBD's website. Director King noted that he had registered online as of October 7'", 2013 and Director Haney noted that he would register online in the near future. Mr. Burton reported that an energy report, in compliance with Texas Government Code, Chapter 2265 is attached to the bookkeeper's report. After discussion, Director Skotak moved that the bookkeeper's report be approved and that the payments listed therein be authorized, and the District's Investment Officer be authorized to execute same on behalf of the District. Director Bell seconded the motion, which carried unanimously.
6 DISTRICT'S WEBSITE The Board deferred discussion of the District's website. MATTERS FOR NEXT AGENDA No items were requested to be placed on the agenda for the Board's next regular meeting other than routine administrative and ongoing matters. The Board requested that Si investigate the Summerwind apartments and Cinemark just prior to the next Board meeting relative to Rate Order violations. AD JOURNMENT There being no further business to come before the Board, on motion made by Director Skotak, seconded by Director King, and unanimously carried, the meeting was adjourned. Richard A. Skotak, Secretary n -6-
7 LIST OF ATTACHMENTS TO MINUTES Exhibit A - Rate Order Violation - Summerwind Apartments Exhibit B - Tax Assessor/ Exhibit C - Order Levying Collector Report Taxes Exhibit D - Operations Exhibit E - Engineering Exhibit F - Landscape Report Report Architect Report Exhibit G - Bookkeeper's Report
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