of Meeting of Board of Directors August 14, 2018

Transcription

1 BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 6 Minutes of Meeting of Board of Directors August 14, 2018 The Board of Directors (the "Board" ) of Brazoria County Municipal Utility District No. 6 (the "District" ) met in regular session, open to the public, at 1300 Post Oak Boulevard, Suite 1400, Houston, Texas 77056, on August 14, 2018, in accordance with the duly posted notice of meeting, and the roll was called of the duly constituted officers and members of said Board, as follows: R. Michael Haney, President Rick King, Vice President L'Sheryl D. Hudson, Secretary Erich R. Bell, Assistant Secretary David Ulsh, Assistant Secretary and all of said persons were present, with the exception of Director Hudson, who entered the meeting after it had been called to order, as noted herein, and Director Haney, thus constituting a quorum. Also present were Lisa Bonham of Jones & Carter, Inc. ("J&C");Cynthia Colondres of Municipal Accounts & Consulting, L.P. ("MA&C"); Esther Shaver of Assessments of the Southwest, Inc. ("ASW"); Loren Morales of RBC Capital Markets ("RBC"), who entered the meeting after it had been called to order, as noted herein; Chris Wilson of Si Environmental, LLC ("Si"), who entered the meeting after it had been called to order, as noted herein; Jesse Hale, who entered the meeting after it had been called to order, as noted herein; and Will Stafford and Jenny Johnson of Schwartz, Page & Harding, L.L.P.("SPH"). In the absence of the President, the Vice President called the meeting to order and declared it open for such business as might regularly come before the Board. MINUTES The Board considered the minutes of its meeting held on July 10, After discussion regarding the minutes previously forwarded for review, it was moved by Director King, seconded by Director Bell, and unanimously carried, that said minutes be approved, as written. CONTINUING DISCLOSURE REPORT Mr. Stafford advised the Board that the District's continuing disclosure counsel, Coats Rose, P.C., has advised that the District's continuing disclosure report for its fiscal year ended December 31, 2017, was filed with the appropriate repositories prior to the deadline. Mr. Wilson and Director Hudson entered the meeting at this time.

2 TAX ASSESSOR-COLLECTOR'S REPORT Ms. Shaver distributed to and reviewed with the Board the Tax Assessor-Collector' Report for the month ended July 31, 2018, and an Unpaid Accounts Tax Roll as of August 9, 2018, copies of which are attached hereto as Exhibit A. After discussion, on motion made by Director Bell, and seconded by Director Ulsh, the Board voted unanimously to approve the report and authorize the payments listed therein. DKLINOUENT TAX COLLECTIONS REPORT Mr. Stafford advised that delinquent tax collections reports from Perdue, Brandon, Fielder, Collins & Mott L.L.P. ("Perdue" ), the District's delinquent tax collection attorneys, regarding legal action taken on delinquent tax accounts are submitted quarterly and that no report was received this month. OPERATIONS REPORT Mr. Wilson presented to and reviewed with the Board an Operations Report for the month of July 2018, a copy of which is attached hereto as Exhibit B. ENGINEERING REPORT Ms. Bonham presented to and reviewed with the Board the Engineering Report dated August 14, 2018, a copy of which is attached hereto as Exhibit C. In connection with the Lift Station No. 3 Expansion project (the "LS Expansion Project" ), Ms. Rogers reminded the Board that at its July 10, 2018, meeting, it awarded the construction contract to Hassell Construction Company, Inc. ("Hassell"), in the amount of $345,600. She requested the Board's approval and execution of a construction conn'act for the project from Hassell. After discussion, it was moved by Director Ulsh, seconded by Director King, and unanimously carried, that the construction contract for the project from Hassell be approved and that the Vice President be authorized to execute same on behalf of the Board and the District, subject to SPH's review of the payment and performance bonds and worker's compensation insurance related to same, and receipt of a Texas Ethics Commission ("TEC")Form 1295 from Hassell. Mr. Hale entered the meeting at this time. Ms. Bonham reported that the annual inspection of the District's joint water plant is complete and that no urgent repairs are necessary at this time. A discussion ensued relative to the proposed construction of a frontage road along SH288 between FM 518 and CR 59 by the City of Pearland (the "City" ), Brazoria County, Texas Department of Transportation, and Brazoria County Toll Road Authority. Director King inquired as to the City's proposed tie-in to the District's storm water drainage system, as depicted in the City's design plans. Ms. Bonham stated that she would contact the City to discuss the

3 potential tie-in to the District's storm water drainage system. AMENDMKNT TO THE DISTRICT'S RATE ORDER The Board deferred consideration of an amendment to the District's Rate Order pending the adoption of the 2018 tax rate. CLARENCE E. SASSER PARK ("PARK") REPORT Director Hudson reported on various issues regarding the Park, to which Mr. Wilson noted that he would investigate and report back to the Board. The Board deferred further discussion on the status of potential improvements to the drainage channel and open space between Scofield and Cinemark Theater at this time. The Board requested that SPH remove said item from the agenda. Mr. Morales entered the meeting at this time. RECOMMENDATION CONCERNING THK PROPOSED 2018 TAX RATE Mr. Morales presented the recommendation of RBC regarding the proposed 2018 tax rate, as requested by the Board, a copy of which is attached hereto as Exhibit D. Mr. Morales advised that the recommendation is for a 2018 debt service tax rate of $0.51 per $100 of assessed valuation and a maintenance tax rate of $0.09 per $100 of assessed valuation. He advised that RBC has estimated that a maintenance tax rate of $0.09 per $100 assessed valuation would provide $525,711 in revenue at 95% collection. Mr. Morales then advised the Board that the rollback rate is $ and the parity rate is $ After lengthy discussion, Director King moved that the Board announce its intent to levy a 2018 total tax rate not to exceed $0.60 per $100 of assessed valuation. Director Hudson seconded the motion, which carried unanimously. There followed a discussion concerning the requirements for notice of the District's intention to adopt its 2018 tax rate. Mr. Stafford advised that, pursuant to II of the Texas Water Code, as amended, the District is required to provide a notice containing certain taxrelated information in connection with each meeting at which the adoption of a tax rate will be considered. Mr. Stafford further advised that the information to be included in the notice is set forth in the Water Code and includes the proposed tax rate to be adopted. He advised that the District must provide the notice by either (1) publishing it at least once in a newspaper having general circulation in the District at least seven days before the date of the meeting at which the tax rate will be adopted, or (2) mailing it to each owner of taxable property in the District, at the address shown on the most recently certified tax roll of the District, at least 10 days before the date of the meeting. After discussion, Director King moved that the District's tax assessorcollector be authorized to publish notice of the District's intention to adopt its 2018 tax rate at its next meeting in the form and at the time required by law. Director Hudson seconded said

4 motion, which unanimously carried. The Board concurred that the notice should be published by the tax assessor-collector in The Houston Chronicle, DISTRICT WKBSITE The Board deferred consideration of the website after noting that no reports regarding the District's website have been submitted. SECURITY REPORT Director King handed out a Security Report prepared by the Brazoria County Sheriffs Office ("BCSO")for the month of June 2018, a copy of which is attached hereto as Exhibit E. UTILITY COMMITMENT REOUESTS The Board deferred consideration of the issuance of utility commitments after being advised by Ms. Bonham that no requests had been received since the Board's last meeting. DEVELOPERS'EPORTS The Board deferred consideration of the Water Supply and Sanitary Sewer Contract with J. Hunter Properties. The Board considered the proposed land trade involving Mr. Hale, a property owner adjacent to a tract of land owned by the District (the "Detention Tract" ), for the purposes of constructing storm water detention capacity sufficient to serve the Gustafson Tract. After discussion, it was moved by Director King, seconded by Director Bell and unanimously carried, that SPH be authorized to prepare relevant documentation to effectuate the land swap with Mr. Hale and the President be authorized to approve and execute same on behalf of the Board and the District. BOOKKEEPER'S REPORT & OUARTERLY INVESTMENT INVENTORY REPORT Ms. Colondres presented to and reviewed with the Board the Bookkeeper's Report, dated August 14, 2018, attached hereto as Exhibit F, including the disbursements presented for payment, as prepared by MA&C. After discussion, Director King moved that the Bookkeeper's Report be approved and payment be authorized of the disbursements listed therein. Director Bell seconded the motion, which unanimously carried. Ms. Colondres presented to and reviewed with the Board a Quarterly Investment Inventory Report, which had been prepared by MA&C for the reporting period ending June 30, 2018, a copy of which is attached to the Bookkeeper's Report. After review of the Quarterly Investment Inventory Report and upon motion duly made by Director King, seconded by Director Bell and unanimously carried, said Quarterly Investment Inventory Report was approved and the District's Investment Officer was authorized to execute same on behalf of the Board and the District.

5 PUBLIC COMMENTS The Board deferred consideration of public comments after nothing that no members of the public were present. DISCUSSION ON PROPOSED FORMATION OF EMERGENCY SERVICES DISTRICTS ("ESDS"INOS. 4 AND 5 Director King discussed with the Board recent developments regarding the proposed formation of Emergency Services Districts Nos. 4 and 5. A discussion ensued regarding the Dish'ict's participation in said ESDs and the current emergency services provided by the City pursuant to the Sales and Use Tax Agreement by and between the District and the City. The Board took no action on the matter at this time. ATTORNEY'S REPORT The Board considered the Attorney's Report. In connection therewith, Mr. Stafford advised the Board that he had nothing further to discuss with the Board of a legal nature which was not covered under specific agenda items. MATTERS FOR NEXT AGENDA The Board considered items for placement on future agendas. No specific agenda items, other than routine and ongoing matters and matters noted earlier in the meeting were requested. AD JOURNMENT There being no further business to come before the Board, on motion made by Director Hudson, seconded by Director Ulsh, and unanimously carried, the meefing was adjourned.

6 LIST OF ATTACHMENTS TO MINUTES ExhibitA- Tax Assessor/Collector's Report Exhibit B Exhibit C- Exhibit D- Exhibit E Operations Report Engineering Report 2018 Tax Rate Recommendation BSCO Security Report Exhibit F Bookkeeper's Report I