Download Report

MINUTES OF MEETING OF BOARD OF DIRECTORS OF
LAKESIDE MUNICIPAL UTILITY DISTRICT NO. 3
February 11,
THE STATE OF TEXAS
COUNTIES OF WILLIAMSON
AND TRAVIS
2015
§
§
§
§
The Board of Directors of Lakeside Municipal Utility District No. 3 met in regular
session, open to the public, on February 11, 2015, at the offices of Gray Engineering, Inc., 8834
North Capital of Texas Highway, Suite 140, Austin, Texas, pursuant to notice duly given in
accordance with law. A copy of the Certificate of Posting of said Notice is attached hereto as
Exhibit "A".
The roll was called of the members of the Board, to-wit:
Tom Corbett
Michael Zeniecki
David Cotton
Tim Coffelt
J.D. Scott
President
Vice President
Secretary
Treasurer
Assistant Secretary/Treasurer
and all of said Directors were present, except Director Coffelt, thus constituting a quorum. Also
in attendance at the meeting were David Gray and John Hines of Gray Engineering, Inc.; Mary
Bott with Bott & Douthitt, P.L.L.C.; Ashlee Martin with Maxwell Locke & Ritter, LLP; Joseph W.
Straub with The Commons at Rowe Lane, LP; and Kevin Flahive with Armbrust & Brown, PLLC.
Director Corbett called the meeting to order at 6:00 p.m. and stated that the Board
would first consider approving the minutes of the January 14, 2015, Board meeting. Upon
motion by Director Zeniecki and second by Director Scott, the Board voted unanimously to
approve the minutes with corrections to the spelling of Director Zeniecki's name throughout.
Director Corbett stated that the Board would next consider the addendum to the
Agreement with BLX for Arbitrage Rebate Compliance Services regarding the $2,000,000
Series 2014 bond issue. Director Zeniecki asked about the total fee for the services rendered
under the agreement. Ms. Bott stated that services are generally rendered two times per year at
an approximate cost of $500.00 per occurrence. Upon motion by Director Zeniecki and second
by Director Scott, the Board unanimously approved the addendum, a copy of which is attached
as Exhibit "B".
The next item to come before the Board was to consider the audit of the District's
financial statements for the fiscal year ended September 30, 2014, including a report from
Maxwell Locke & Ritter, LLP, approval of the audit report and client representation letter, and
authorizing the filing of the audit report with the TCEQ. Ms. Martin referred the Board to the
handout containing the audit report and client representation letter. She stated that the opinion
contained in the report was clean, meaning it was an unqualified opinion. Ms. Martin reviewed
with the Board the balance sheet on page FS-1 of the report and explained that the GASB 34
adjustments provide a for-profit view of the District's financial reports. She then reviewed with
the Board the remainder of the financial statements in section FS of the audit report. Ms.
- 1-
February n,
Regular Meeting
Lakeside M.U.D. No. 3
2015 -
Martin discussed with the Board the general fund comparison of the budget for the year on FS17. She then stated that section TSI of the audit report contained reports required by the TCEQ,
which contained the same content as the reports in section FS of the audit report. Ms. Martin
stated that all ad valorem taxes for the fiscal year were collected. She then discussed with the
Board the content of the client representation letter. Ms. Martin stated that, overall, the audit
was very clean. After discussion and upon motion by Director Scott and second by Director
Zeniecki, the Board unanimously approved the audit report and client representation letter,
attached as Exhibits "C" and "D", respectively, and authorized the filing of the audit report
with the TCEQ.
Director Corbett stated that the next items to come before the Board were landscaping
and maintenance items. He stated that the channel from Pond 1 to Rowe Lane had been
dredged and that the water was flowing nicely. Director Corbett stated that some fine grading
still needed to be performed on the top of the adjacent hill, which should occur within the next
four or five days. Director Scott asked whether the bend in the channel next to the cluster of
trees north of Rowe Lane had been dredged. Director Zeniecki stated that the area was not a
part of the area to be dredged pursuant to the approved plan, but that MMLA, Inc. had installed
a culvert, so the area should drain better moving forward. Director Corbett stated that to
complete the channel improvements, a 16-foot wide strip of fleximat should be installed in the
channel, which would cover the bottom of the channel and four feet on either side. He stated
that he had received a bid in the amount of $24,950.00 for the fleximat and a bid from MMLA,
Inc. in the amount of $24,950.00 for installation. Upon motion by Director Zeniecki and second
by Director Scott, the Board unanimously approved both bids, as presented, copies of which are
attached as Exhibits "E'' and "F", respectively. Director Cotton then asked when the bridge
over Commons Parkway and the drainage area between Windmill Ranch and Meridian would be
addressed. Director Corbett stated that those areas, as portions of the overall drainage project,
would be addressed next as funds become available. Mr. Gray stated that he had spoken with
Director Zeniecki and conducted a site visit with Director Corbett to identify and inspect
drainage issues in northern portions of the District. He recommended to the Board that a
committee be appointed to work with his office and Mr. Straub, which would then return to the
Board at the next regular meeting to present a recommendation to improve the District's ability
to maintain those areas moving forward. After discussion, Director Corbett and Director
Zeniecki were appointed to serve on the committee, with Director Scott available to serve as an
alternate if needed. Director Zeniecki recommended that the committee meet with Mr. Gray to
formulate the recommendation before meeting with Mr. Straub. Mr. Gray agreed and stated
that he would initiate the first meeting. Director Corbett then stated that he had received a
proposal from Greener Images for mulching all flower bed areas at a cost of $1,500.00. Director
Zeniecki stated that this was the same amount as the prior year. Director Corbett stated that
Greener Images wanted to perform the work at the same time that the company mulched the
flower bed areas within the District maintained by the HOA. Upon motion by Director Zeniecki
and second by Director Cotton, the Board unanimously approved the proposal as presented, a
copy of which is attached as Exhibit "G".
The next item to come before the Board was to receive a report from the District's
bookkeeper. Ms. Bott addressed the Board and reviewed the bills, invoices and transfer as set
forth on the cash activity report, a copy of which is attached as Exhibit "H". She reviewed with
the Board the Director and vendor payments to be approved and stated that she would void the
per diem check for Director Coffelt for the meeting. Ms. Bott then reviewed with the Board each
of the three transfers, in the amounts of $1,190.00, $50,000.00 and $250,000.00. She then
referred the Board to the December financial statements in the packet. She stated that the
{Wo648768.2}
- 2 -
February 11,
Regular Meeting
Lakeside M.U.D. No. 3
2015 -
District was on budget. Upon motion by Director Zeniecki and second by Director Cotton, the
Board unanimously approved the Director and vendor payments and transfers as presented.
Director Corbett stated that the Board would next receive a report from the District's
engineer. Mr. Hines referred the Board to his report, a copy of which is attached as Exhibit
::I". He stated that he anticipated finalizing the next bond application within 45-60 days and
submitting the application to the TCEQ in April with a 6 month review/approval process to be
followed by a bond issue in late 2015. Mr. Hines stated there was one pay estimate for the Board
to consider, which was Pay Estimate No. 2 in the amount of $200,815.74 from Cash
Construction Co., Inc. for water, wastewater and drainage improvements in Phases VA and VIA,
a copy of which is attached as Exhibit "J". Upon motion by Director Zeniecki and second by
Director Cotton, the Board unanimously approved the pay estimate as presented. Mr. Hines
then stated that he was coordinating final signature by Travis County staff of the construction
plans for Phase VIII, which had not yet been bid. He then stated that the Rowe Lane left turn
lane project would begin within the next few weeks. Mr. Hines stated that Travis County staff
still had to sign the construction plans before the project could commence. Director Zeniecki
stated that he had seen utility providers relocating infrastructure in preparation for the project.
The Board then discussed the project and estimated timing of completion. Mr. Hines then
stated that design work would begin on Phases IVB, VB and VIB to be developed on the
remaining 40 acres in the northeastern portion of the District.
Director Corbett stated the Board would next receive a report from the developer. Mr.
Straub stated that construction of Phase VII was almost complete and that the lots in that phase
had been contracted for by Brohn Homes and Gehan Homes. He stated that he had received
calls from other builders interested in building within the District. Mr. Straub stated that he
was eager to construct the Rowe Lane left turn lane project. He then discussed with the Board
the recent vandalism of the amenity center and the calls to the HOA manager regarding same
from residents with very divergent views as to how the issue should be addressed. Mr. Straub
stated that he would ensure that the amenity center was repaired, damaged items replaced, and
security measures installed. He stated that, if those measures did not work, he understood that
the HOA may consider hiring a security service for manned patrols for some period of time.
There being no citizens in attendance desiring to address the Board, Director Corbett
asked if there were any other matters to come before the Board. Director Zeniecki stated that he
would like to get bids on the walkways between Dove Tail and Ambling. Mr. Gray stated that
those walkways had been identified and recommended that they be addressed by the Drainage
Improvement Committee. Director Zeniecki then discussed with the Board his desire to conduct
a one-day spring cleanup event during which District residents could dispose of trash and debris
in three roll-away dumpsters funded by the District and monitored by the Boy Scouts. He stated
that he would get bids for the roll-away dumpsters and bring them to the Board at the next
regular meeting. Director Cotton then referred the Board to the total annual landscaping cost of
approximately $130,000.00 contained in the audit report and stated that the cost seemed high.
The Board discussed that the figure included large landscaping projects in addition to ongoing
mowing and mulching. Ms. Bott stated that she would provide a line item accounting to
Director Cotton for his review. Director Scott then asked if the studs sticking out of the ground
near the mailboxes at the entrance to Phase VIA were needed and offered to remove them due to
safety concerns. Upon discussion, the Board determined that the developer would remove the
studs if they would not be used. Director Scott then asked who was charged with emptying the
pet waste stations throughout the District. Director Corbett stated that he thought it was the
HOA, but would confirm. Director Scott then stated that some of the trees planted near the
northern pond were dying. Mr. Straub stated that any dead trees would be replaced.
{Wo648768.2}
-3-
February 11,
Regular Meeting
Lakeside M.U.D. No. 3
2015 -
February 11,
Regular Meeting
Lakeside M.U.D. No. 3
2015 -