Sienna MUD 2 Discuss Airport Expansion, HB914 & Ditch Issues

Sienna MUD 2 Discuss Airport Expansion, HB914 & Ditch Issues
(See December minutes):


Comment: Here are the last meeting notes from Sienna's largest MUD. Several topics of interest to all Sienna residents contained would be the discussion over the Arcola airport expansion and the SJD developer's response along with the potential ditch litigation closed session, new disclosure rules (HB914) and the ongoing MUD audit regarding the ECO-MUD scandals (as seen in local media). PLEASE READ ON--


MINUTES OF REGULAR MEETING OF SIENNA PLANTATION MUNICIPAL UTILITY DISTRICT NO. 2

December 19, 2005 THE STATE OF TEXAS § §
COUNTY OF FORT BEND §

The Board of Directors of Sienna Plantation Municipal Utility District No. 2 (the “District”) met in regular session, open to the public, on the 19th day of December, 2005, at a designated meeting place of the District, ECO Resources, Inc., 12535 Reed Road, Sugar Land, Texas, outside the boundaries of the District, and the roll was called of the duly appointed members of the Board, to-wit:

David Daniel President
Juan Marroquin, Jr. Vice President
David White Secretary
Richard Luke Assistant Vice President
Brian Machart Assistant Secretary and all of the above were present, except Director Machart, thus constituting a quorum.

Also present at the meeting were the following: Kim Saunders of Tax Tech, Inc.; Jerry Graham of LJA Engineering & Surveying, Inc. (“LJA”); Shirley McLennan of McLennan & Associates, L.P.; Andrea Maloof of ECO Resources, Inc. (“ECO”); Tom Ramsey of Klotz & Associates, Inc. (“Klotz”); Tim Foster of Sienna Plantation Development Co.; Douglas A. Daniels of Bracewell & Giuliani, LLP; and Richard L. Muller and Kristen Hogan of Allen Boone Humphries Robinson LLP (“ABHR”).

MINUTES The Board first reviewed the minutes of the meeting held November 21, 2005. After review and discussion, Director Marroquin moved that the Board approve the minutes of the November 21, 2005 meeting, as presented. Director White seconded the motion, which passed unanimously.

BOOKKEEPER’S REPORT AND AMENDED BUDGET FOR FISCAL YEAR ENDING SEPTEMBER 30, 2006 Ms. McLennan reviewed with the Board the bookkeeper’s report and the investment report, and the Board considered bills for payment. The Board reviewed the District’s investments and concurred for Director White to work with the District’s bookkeeper to renew the expiring certificate of deposit. Ms. McLennan next presented an amended budget for the fiscal year ending September 30, 2006 to include the December revenue from the operating funds transfer in the amount of $1,200,000 and additional engineering fees for Klotz associated with the Primary Collector Storm System Phase I in the amount of $624,700. Following review and discussion, Director Luke moved that the Board approve the bookkeeper’s report, investment report, and payment of bills and approve the amended budget for the fiscal year ending September 30, 2006. Director White seconded the motion, which passed unanimously. A copy of the bookkeeper’s report is attached.

TAX ASSESSOR/COLLECTOR’S REPORT Ms. Saunders reviewed the monthly tax assessor/collector’s report, a copy of which is attached. She reported that the 2005 taxes are 10% collected to date. After review and discussion, Director Marroquin moved to approve the tax assessor/collector’s report and the payment of bills from the District’s tax account. Director Luke seconded the motion, which passed unanimously.

REPORT FROM TOMMY HAYNES The Board did not receive a report from Tommy Haynes.

ENGINEER’S REPORT Mr. Graham presented the engineer’s report, a copy of which is attached. He updated the Board on the construction of water, sewer and drainage facilities to serve Steep Bank Village, Section 5-C. Mr. Graham discussed a change order to lower the culvert on Kelsey Pass and stated that the contractor estimated an amount of $11,025 for the change order. Following review and discussion and based on the engineer’s recommendation, Director Marroquin moved that the Board approve the change order in the approximate amount of $11,025 to be paid from the capital projects fund. Director White seconded the motion, which passed unanimously. The Board concurred such change order should be reflected in the line item for Section 5-C miscellaneous items in the budget comparison. In response to a question from the Board, Mr. Graham stated that he will confirm the District has adequate funds remaining for the Section 5-C paving contract to cover the final payment to the contractor.

OPERATOR’S REPORT Ms. Maloof presented and discussed the operator’s report, a copy of which is attached. She stated there are 1,699 connections in the District, with four new tap installed for the month and an overall accountability for a twelve-month period of 96%. She then reviewed the management report which describes maintenance and repair items performed within the District since the last meeting and the District backcharge list. The Board reviewed the backcharge list and directed ECO to turn over all of the outstanding accounts with the exception of Perry Homes to Elizabeth Duff, the District’s collections attorney, to pursue collection. Ms. Maloof next presented a letter from St. Catherine of Sienna Episcopal Church requesting an adjustment for high usage during September and October due to a toilet leak at 9610 Roark’s Passage, the vicarage for such Church. A copy of the letter is attached. Following review and discussion, Director White moved to approve the operator’s report and deny the request for an adjustment in accordance with the District’s Rate Order. Director Luke seconded the motion, which passed unanimously.

HEARING ON TERMINATION OF WATER SERVICE Ms. Maloof next presented a list of delinquent customers. Following review and discussion, the Board concurred to table the hearing regarding water and sewer service terminations until next month’s meeting.

LANDSCAPE AND MAINTENANCE EASEMENT TO SIENNA PLANTATION RESIDENTIAL ASSOCIATION, INC. Mr. Muller reported that Sienna Plantation Residential Association, Inc. has agreed to maintain the jogging trail within the District and, in association with their maintenance, he then presented and reviewed with the Board a Landscape and Maintenance Easement from the District. Following review and discussion, Director White moved to approve the Landscape and Maintenance Easement to Sienna Plantation Residential Association, Inc. as presented. Director Marroquin seconded the motion, which passed by unanimous vote.

CONFLICT OF INTEREST DISCLOSURE REQUIRED UNDER CHAPTER 176 OF THE TEXAS LOCAL GOVERNMENT CODE Mr. Muller reviewed with the Board new legislation enacting Chapter 176 of the Texas Local Government Code, which requires directors and consultants to disclose certain conflicts of interest. He reviewed with the Board the forms adopted by the Texas Ethics Commission for making disclosures under Chapter 176 and noted that the forms are required to be filed with the records administrator for the District beginning January 1, 2006 and will need to be filed thereafter within seven days of a disclosable conflict arising. Mr. Muller explained that failure to make a disclosure required under Chapter 176 is a Class C misdemeanor. He encouraged the Board to contact ABHR if assistance is needed in determining whether a conflict requires disclosure or in making a required disclosure. The Board authorized ABHR to maintain a list of the District’s Board Members and make that list available to the public and to contractors who may be required to file a questionnaire under Chapter 176. The Board also authorized ABHR to make any disclosure forms filed with the District available on the District’s website.

REPORTS FROM DIRECTORS AND CONSULTANTS In response to a question from Director Daniel, Mr. Foster reported on commercial development at the intersection of Highway 6 and Sienna Parkway. In response to a question from Director White, Mr. Graham reported that the gravel road currently under construction is to provide an additional evacuation route out of Sienna Plantation. He added that LJA is preparing maps showing the evacuation routes for Sienna Plantation. In response to additional questions from the Board regarding the City of Arcola’s proposed airport expansion, Mr. Foster responded that Sienna Plantation Development Co. is in favor of increasing economic development in the City of Arcola, but is not in favor of any action that would be detrimental to the residents of Sienna Plantation.

CULVERT FACILITIES AT SIENNA CROSSING ELEMENTARY Mr. Ramsey discussed the plans for construction of culvert facilities at Sienna Crossing Elementary. He stated that the plans have been sent to the City of Missouri City for approval and he requested authorization to advertise for bids, subject to receipt of City approval. Discussion ensued regarding disruption of school traffic and the possibility of postponing the project until a school holiday or vacation. Mr. Ramsey concurred the project can wait until summer vacation and can be completed in connection with the other drainage improvements in Steep Bank West to achieve economies of scale. Following discussion, the Board concurred to table authorization to advertise for bids for the project.

CONVENE EXECUTIVE SESSION PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE TO CONSULT WITH ATTORNEY REGARDING STEEP BANK VILLAGE DRAINAGE SYSTEM At 1:05 p.m., Director Daniel announced that the Board would convene in executive session.

RECONVENE OPEN SESSION AND AUTHORIZE APPROPRIATE ACTION REGARDING STEEP BANK VILLAGE DRAINAGE SYSTEM At 1:46 p.m., Director Daniel announced that the Board would reconvene in open session. Upon reconvening in open session, the Board concurred no action was necessary.

ENGAGEMENT CONSULTING EXPERT FOR ANTICIPATED LITIGATION The Board concurred no action was necessary. OTHER MATTERS The Board discussed the results of ECO’s internal review concerning the discovery of internal financial irregularities by a former ECO employee. Following discussion, the Board concurred to consider any additional action necessary at next month’s meeting. There being no further business to come before the Board, the Board concurred to adjourn the meeting.

Secretary, Board of Directors (SEAL)


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