MINUTESINTER$TATX MUhIICIPAL UTILITY NISTRICT

August 14,20l8

The Soard of }irectors (the "Board") af Interstate }vlunicipal Utility District (the"District") met in regular sessiory CIpen to the public, on the 1,4th day o{ August,201ti, atthe of{ices of A}}en Boone Humphries Robinson, LLR 3200 $outhwest Freeway,Houston, Texas, outside the bcundaries of the Diskict, and ihe roll was cal.led of thernembers of the Board:

PresidentVice PresidentSeeretary/TreasurerAssistant Vice FresidentAssistant Secretaryf Treasurer

and all sf the abnve were present, thus constituting a quorum.

Also present at the meeting were Kerry Crellin; ]ames Terry of Terry's LandscapeLLC; David Patterson of Assessments of the Southwest Avlk Bonne4ee o{ B&AMunicipal Tax Service, LLC; Rose Montalbano ol F. Matuska, Inc.; Donnie Reed o{ L}AEngineering, Inc. 1"LlA"); Don Self of Inframark Water & Infrastruclure $ervices("k':{ramark"); and Robert A" $eale and Patti Hopper of Allen Boeine HurnphriesRobinson LLf ('ABHR*).

MINlJlES

Th* Board considered approving the minutes o{ the previous meeting. DireetorSmith moved to approve the minutes. Director Kaplan seconded the motion, whichcarried unanimously.

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The Board tabled thi* item.

IvIr. Patterson reviewed the tax assessor/collector's repor! a copy of which isattaehed. He reported that the Diskict's 2017 taxes are g9.1b% collected. Followingreview and discus$ion, Director Srnith mo,ved to approve the tax report and payment &the tax bills. Director Glickman seconded the motian, whieh *", ,pproved byunanimous vote.

Barry KaplanClark Glickman]ames P. {"Rick") EllisLarry SmithThomas Ciark

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BILLS

Ms. Montalbano distributed the bookkeeper's report, inrluding a list of checkspresenled" Ior paymen! and the investrnent reporf copies of which are attached. Shereconunended purchasing a certificate of deposit with Compass Bank with an interestrate of 2.38%. Director Smith then moved to appyove the bookkeeper's report,including payment of the bills and the purchase *f a certificate of deposit from Compass3ank. Director Clickman seconded the motian. A1l Directors voted in {avor of themotion, thus the motion carried.

Mr. Crellin discussed security matters. A copy of the security report is attached.A{ter review and discussiory Director Smith moved to approve t}re report. DirectorGiickrnan seconded th* rnotion, which carried unanimously.

PABK, L&Kq..ANiP TRAIL MAI\}TENAXSCE REPORT

Mr. Terry reviewed the monthly park rnaintenance report and irrigation report"AIter review and discussion, Director $mith moved to approve the report and the actionitems. Director Glickman seconded the motion, which carried unanimously.

FROM POUR ONH

Directcr Clickrnan updated the BCIard regarding District park matters.

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Mr. Reed reviewed the engineer's repor! a copy of which is attaehed.

Mr. Reecl updated the Board regarding the line reloeations and plans for theseeurity building, He stated the estimated ccst to run electricity to the building is$10,000.

Mr. Reed updated the Board regarding the design status af the water plantconkoi panel and generator replacement and water plant recoating projects.

After discussion, Director $mith moved tc approve the enginee/s report and theaction items. Dircctor Ellis seeonded the motion, which carried unanimously"

Mr. $elf reviewed with the Board the operatols repor! a copy of which isattached. He reported that water accountabitity lor the previous rnonth was g0% andstated there urere no excur$ions at the wastewater treafment plant. N{r" Se}f statedwater accountability is decreasing and reviewed a proposal from SAMCO for leak

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detection. )irector Xllis moved to approve the report, the 5AMC0 proposal, necessarywater line repairs, and the action items. Director Smith seconded the motion, whichpassed by unanimous vote"

The Soard discussed nece$sary repairs which will be noted in the leak survey.The Soard concurred Direetor Illis can axthorizc any neee$sary repairs prior to the nextmeeting.

Mr" Sel{ stated Carl's }r" has a large leak on their side of the meter andrnene$cment has been contacted. He stated they have not appealed their bill" TheBaard concurred no artion &ra$ n*ces$ary.

The Soard reviewed appcals from Don McGill and Mason Fark ProJessionalBuilding regarding high water hills. Mr. $elf stated both establishments had waterleaks an their side of the meters. After discussion, the Soard ecneurred ta deny theappeals.

AtTryQ&IZE TH&MIN.$TIO}{ AF STRVIqE

The Board next considered terminaticn of utility service to delinquent accounts.Me. Montalbano reported that the customers on the termination list r,1/ers mailed writtennotice prior to this meeting in accardance with the Rate Order, noti{ying them of theopportunity to appear before the Board of Directors to explai:r, contes! or carrect theutility service bill and to show rea$on why utility s*rvice should not be terminaled {orreason of nonpayment. Director 5l1is moved that, sinee the customer$ on the list rArereneither present at the meeting nor had presented any statcment on the matter, utilityservice should be terminated in aecordance with procedures set forth in the Rate Ordei")irector smith seconded the motio6 which carried unanimously.

MA]TEE$

The Board discussed the V{HCRWA and crncurred no action wa$ &ece$$a}y

L ATERCO

Director Ellis updated the $sard regarding committee uratters. He stated bielswere taken for the onsite liit station. Director Eltis stated the low bid wasapproximately $1 "492 million.

Direetor Glickman updated the Board regarding council matters.

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WEBSITE

Director Clark updated the Board regarding the website and stated no action wasnecessary.

PROGRAMMING PARK FACILITIES

Director Clark stated he interviewed two candidates for programming andneither was interested in the job. The Board discussed the need for a coordinator andthe types of programming that would be desirable. Director Glickman stated hebelieves it is premature to hire a park prograrnmer. Director Kaplan stated the personhired would only be used and paid once a need arises. The Board concurred DirectorsClark and Smith could continue to interview.

MEETING SCHEDULE

The Board concurred to hold the September 11, 2018, regular meeting at theoffices of ABHR.

EXECUTIVE SESSION

At12:23 p.ffi., the Board convened in Executive Session.

OPEN SESSION

At 12:48 p.D., the Board reconvened in Open Session.

Director Kaplan moved to authorize ABHR to engage an appraiser to valueproperty adjacent to District property. Director Smith seconded the motiory whichcarried unanimously.

There being noadjourned.

Board, the meeting was

, Board of Directors(sEAL)

further business to come

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ACTISN LI$T

The Soard will hold the $eptember 11, 20L8, regular meeting at the *{fice* o{Allen Soone Humphries Robinson LLP.

LIST OF ATTACHMENT$ TO h,IIh}UTXSMinutes

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Tax assessur/ collectcr's report ................ ".......Sookkeeper's report,list of checks presented for payment, and investment report ""...Security report....".Engineer's report"...".Operatar's report".".

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