Minutes of Meeting of the Board of Directors of Travis County Municipal Utility District No

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Minutes of Meeting of the Board of Directors of Travis County Municipal Utility District No MINUTES OF MEETING OF THE BOARD OF DIRECTORS OF TRAVIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 2 June 3, 2020 THE STATE OF TEXAS § § COUNTY OF TRAVIS § A meeting of the Board of Directors of Travis County Municipal Utility District No. 2 was held on June 3, 2020 via telephone conference call pursuant to Section 551.125, Texas Government Code, as modified temporarily by Governor Greg Abbott, and the related guidance from the office of the Texas Attorney General, in connection with the Governor’s COVID-19 Disaster Proclamation. Notice of the meeting was given as required by the Texas Open Meetings Act. A copy of the Certificate of Posting of the notice is attached as Exhibit “A”. The meeting was open to the public via the toll-free dial-in telephone number provided in the meeting notice. An electronic agenda packet for the meeting was provided on-line via the link included in the meeting notice and the meeting was recorded and made available at the same link after the meeting. In order to facilitate the efficiency of the telephone proceedings, Director Roberts asked Mr. Bartram to moderate the meeting. There being no objections, Mr. Bartram called the telephone conference meeting to order at 12:03 p.m. The roll was called of the members of the Board: Wilmer Roberts - President Michael Moore - Vice President Debora Pickens - Secretary Ray Mura - Assistant Secretary Tracy T. Johnson - Assistant Secretary and all of the Directors were present, thus constituting a quorum. Also present on the call were Jeremy Sheard, a resident of the District; Dennis Hendrix of Crossroads Utility Services LLC (“Crossroads”), the District’s utility operator; Lauren Smith of Public Finance Group LLC, the District’s financial advisor; Nancy Olson of McCall Gibson Swedlund Barfoot PLLC, the District’s auditor; Ken Schroeder of Schroeder Engineering Company, the District’s engineer; Russ Allison of Argent Management, LLC, representing SG Land Holdings LLC, a developer in the ShadowGlen community; Allen Douthitt of Bott & Douthitt, PLLC, the District’s bookkeeper; and John Bartram of Armbrust & Brown, PLLC, the District’s general legal counsel. Hasan Mack of McCall, Parkhurst & Horton L.L.P., the District’s bond counsel, joined the call later. Mr. Bartram announced that the Board would first receive citizens’ communications and Board member announcements. He first noted that an inquiry had been received through the District’s website regarding district bond issues. He stated that Cheryl Allen, the District’s financial advisor, had responded and learned that the inquiry had been made on behalf of an unnamed company involved in the development of storm drainage improvements. Mr. Bartram stated that Ms. Allen had agreed to pass the company’s information on to the District’s engineer once the name of the company would be released. Mr. Hendrix next reported inquiries had also been received through the District’s website regarding rebates for rainwater collection, water quality complaints, and transfers of service, all of which had been addressed. He further noted that he had corresponded with Mr. Sheard regarding his customer service experience as he transitioned his utility account from one address in the District to a new address in the District, {W0979217.2} 1 a copy of such correspondence being attached as Exhibit “B”, and he asked Mr. Sheard if there was anything specific he would like to discuss with the Board. Mr. Sheard thanked the Board for the opportunity to participate in the meeting, noting that, if the meeting had been in-person, he would likely not have been able to attend. He confirmed that all of his issues had been addressed. He stated that he appreciated everyone’s attention and hoped that his experience would result in improvements to the process in the future. He also indicated that he had received his refund check quickly. Director Roberts stated that he had spoken to Mr. Sheard and confirmed that the District would look at ways to streamline the process for changing accounts within the District. Mr. Douthitt stated that this was a rare situation, but one that could certainly be addressed. Mr. Sheard shared that trying to communicate exclusively via email had been frustrating. He stated that it had taken multiple emails to accomplish what one short telephone call had been able to resolve; and he encouraged the District to maintain an in-person customer service option instead of forcing everyone to email. Director Roberts asked Director Moore if he could add to the District’s website Mr. Hendrix’s contact information and a link to the District’s folder in the Armbrust & Brown online database. Director Moore confirmed that that information could be added. Mr. Sheard then asked how he could keep up to date on future Board meetings. Mr. Bartram stated that the Board typically met every-other month on the first Wednesday of the month. Director Roberts stated that agendas were posted at the ShadowGlen club house and on the District’s website. Mr. Sheard stated that the calendar on the District’s website was blank. Director Moore suggested that Mr. Sheard subscribe to notifications from the website. Mr. Sheard stated that he had but that he had not received a notification since October 2018. He stated he would calendar reminders for the first Wednesday of the month. Director Moore stated that he would look into updating the calendar and subscription functions of the District’s website. Mr. Bartram then stated that the Board would next consider approving the minutes of the April 1, 2020 Board meeting. Upon motion by Director Moore and second by Director Mura, the minutes were unanimously approved. Mr. Bartram then stated that the Board would consider an amendment to the District’s rate order. He explained that the purpose of the amendment was to conform to current law the maximum amount of lead permitted in plumbing infrastructure. Upon motion by Director Moore and second by Director Pickens the Board voted unanimously to approve the Amended Order Establishing Rates and Charges, and Adopting Rules with Respect to District Water, Wastewater and Drainage, Including Water Quality, Systems attached as Exhibit “C”. Mr. Bartram next recommended that the Board consider adopting procedures that would allow bids on District projects to be received electronically. He directed the Board’s attention to the Order Adopting Rules and Procedures for Electronic Bids for District Projects attached as Exhibit “D” and explained that the Texas Water Code expressly authorized electronic bids as long as the Board had adopted rules to ensure the identification, security, and confidentiality of electronic bids and to ensure that the electronic bids remain effectively unopened until the proper time. Mr. Bartram stated that the proposed procedures were designed with flexibility to allow the process to be managed by the District engineer on a case-by-case basis. Mr. Schroeder confirmed that he had had an opportunity to review the procedures and recommended approval. After discussion, upon motion by Director Moore and second by Director Pickens, the Board voted unanimously to approve the Order Adopting Rules and Procedures for Electronic Bids for District Projects, as presented. Mr. Bartram then stated that the Board would consider the renewal of the District’s Drainage Channel Maintenance Agreement with TexaScapes, Inc. He stated that the original agreement had expired at the end of May and that TexaScapes had proposed renewal for a {W0979217.2} 2 three-year term at the current compensation. Director Johnson asked why the term was increasing from two years to three years. Mr. Bartram stated that the contractor had requested a three-year term. Director Roberts suggested that it was in the District’s interest to “lock in” for a longer term since the compensation was not changing. After discussion, upon motion by Director Moore and second by Director Mura, the Board voted unanimously to approve the renewed Drainage Channel Maintenance Agreement with TexaScapes, Inc. attached as Exhibit “E”. Mr. Bartram then stated that the Board would consider the bond-related items on the agenda and first reported that the Texas Commission on Environmental Quality (the “TCEQ”) had recently approved the District’s next “new money” bond application, as evidenced by the Order Approving an Engineering Project and the Issuance of $5,000,000 in Unlimited Tax Bonds for Travis County Municipal Utility District No. 2 attached as Exhibit “F”. Ms. Smith then reviewed the Schedule of Events attached as Exhibit “G”, noting that the bonds, which would be designated as Series 2020A, were scheduled to sell in August and close in September. Ms. Smith recommended that the District apply for both a credit rating and bond insurance and that the Board request an updated estimate of appraised property values in the District from the appraisal district to support the applications for a credit rating and bond insurance and to help market the bonds. Ms. Smith next reviewed the draft Preliminary Official Statement (“POS”) for the sale of the bonds attached as Exhibit “H”, which she noted was under concurrent review by all of the District’s consultants. She highlighted the purposes for which the bond proceeds would be used, reviewed the cost summary for the use of proceeds, and indicated that the POS would be converted to a final Official Statement at the time of award of the sale of the bonds. Mr. Bartram then explained that applicable law required developer reimbursements to be reviewed by an independent auditor as a condition to disbursement, and he recommended that the Board go ahead and engage the auditor to prepare what was commonly referred to as a reimbursement report for the District’s 2020A bonds. At this time, Ms.
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