MINUTUSHARRIS COUNTY MUNICIPAL UTTLITY DIST&ICT :VO. 37{

]une 8,2017

The Board of Directurs (thr "Board") of Harris Ceiunty Municipai Utility DistrictNo. 374 {the "District") met in regular sessisn, open to the public, on the 8th ciay o{

]une, 2A1V, at Allen Boone Humphries Robinson LLP, 320S Sauthwest Freeway, Suite2600, Houston, Texas, outside the boundaries of the District, and the roll was ealled ofthe rnembers of the Board:

Merry Leonarr{

]oe $ykesMike OwensBrian CanepaTharnas Mnhr

PresidentVice PresidentSecretaryAssistant SecretaryAssistant Vice President

and a}l of the above urere ple*ent except Director Mohr, thus constifuting a quorum.

Alsr: present at the meeting were Mirna Bonilla-Odums of $evern Trent Services,Inc. {"ST"); Kathy Cruthirt{s c}{ Tax Tech, Inc. ("Tax Tech"); Diane 8ai1ey nf Mclennan& Assnciates, L.P.; ]osh F'nrt o{ Chnmpl*ns Hytlre>Lawn, Inc. ("Champit"rns"); RandyCeirs*n of Mischer lnvestments, L.F" ("Mischer"); and Susan Edwards and SusanProspere of Allen Boone Humphries Robinson LLP ("ABHR").

MINUTH$

The Eoard considered approving the minutes of the May 1"1, 2A17, rreeting,Fr:1l*wing review and discussion, Director Owens moved to approve the mirurtes as

presented. Directnr $ykes secondecl the rnotion, which passed by unanimous vote.

BOOKKEEPER'S REPORT

Ms. Bailey presented the bookkeeper'$ repart anr{ submiNted the bills for theSoard's review. She pointer-l out the final check for repair r:f the vandalism to theCypress Creek Lakes Clul:h*use was receiveel frnrn Warren Fludd" Ms. Baitrey alsopresented the investment report for the Board's review. Upon a mr:tion made byDirector Owens anrl seeoncled }:y Directr:r Mohr, the Board voted unanimously to&pprove the bookkeeper's report, the checks presented for payr:rent and the investmentreport. A copy of the bookkeeper's report, incluriing the investment report, is attached.

Ms. Edwards reported lhat Keli Sehroeder of BCE, Inc., has noted that seimeburlget expen$e$ \{rere miscoded far the irrigation system" Ms. Bailey stated that thecorrection has been made.

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Yhe Board consideyed aulhorizing attenrlance o{ interested member* at the ]une8, 2017, MUD Direetors' Outreach l,{orkshop ("Workshop") being presentd by the

West Harris CclunQr Regionai Water Authority. After discussian, Director Sykes moverlto autheirize attendance cf interested Boarrl members at the Workshop. Directoreanepa seconded the motion, which earried unanimously.

Ms. Bailey repnrter{ that checks were prepared fr:r pre-paying AT&T, ReliantEnergy, and Nexus Dispeisal for District services to reduce the number o{ blank checks

and that Wilbert Ticzan is inv*stigating the possib,ility o{ converting tc balancer"{ tri}1ing

by Reiiant Inergy.

TRAVEL REIMSURSEMENT G{NNtrT,INES

Ms. H,lwards reminded the Board of the District's Travei Reimbursementiluirlelines.

TAX REPORT

Ms. Cruthirds reviewed the District's monthly tax report and noted that q8.63%

of the District's 2016 taxes had been cr:llected thrnugh the enci of May" After discussion,Director Sykes rnoved to approve the tax assessor/cotrlector'$ report and the checks

clrawn on the District's tax account. Director Owens seconcled the motion, whichcarried by unanimous vate. A copy l:{ the tax report is attached.

Ms. Cruthirds r*ported that the District's 2017 preliminary taxable value totals

$451,592,570.

XNC:NEER'$ RHPONT

There w&$ no engineer's repr:rt frorx BGE, Inc.

IRRIGATION ]]UMT'STATTON NS. 2

There was no update on rehabilitation cf irrigatiorl pump statinn no. 2 forexecution.

NHfitrS, XASHMHNTS, ANN C$NSUNTS TO ENCROACHMHNT, INCLUDINC }EENWITHOUT \,VARRANTY }'OR }ONIE LYNN STREHT STRIP

The 3*ard considered approving a Deed without Warranty providing {or theDistrirt's conveyanee *f the strip of iand behind the {ences o{ nine residences etn }odieLynn Street to CW $COA West, L.P., the developer in Harris County Municipal UtilityDistrict No. 500" Th* Boarcl faund that air market value for the conveyance is theeliminaticn of District rnaintenance responsibility {nr the skip r:{ lantl, especially since theSoard hari ntrt knowlngly acquired, or paid {e:r, the skip o{ land" A{ter riiscussion,

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Director Sykes mover.l tc: approve th* Deed without Warranty. Director Canepa

seconded the motion, which carried unanimously.

Direct*r Owens requested that Ms. Idwards rernind ]erry Hlozek o{ Caldwel}Ccrnpanies of his agreement to level some sto*pilecl clirt al the Diskict's wastewaterfueah:rent p1ant.

UTILITY LETTERS

Ther* l{rere no utility commitment letters fElr the Bnard's apprnval.

OPXRATOR'S RHPORT

ivls. Bonilla-Odums presentee{ the monthly operator's reporl, a copy of which isattached, and reported no violatir:ns of the perrrritted parameters for the effluentr{ischarge in April. She then revi*wed the reperrt and inverices with the Board. Ms.

Bonilla-Odums also reported r:n routine rnaintenance and repair items during themonth.

Ms. tsonilla-Oelums tliscussed a prop$sal {or repair o{ the lift station no. ? iiftpump no" 3 at a cost o$ $S,873 or replacement at a cost nf $9,051, a copy of whirh isattached. $he recourmenderl replarement of tl"re purNp because of the srnall pricediffcrential. After discussion, Director Sykes moved tCI authorize replaeement o{ thepump as diseussed. Direetor Canepa seconded the motion, which carried unanimously.

Ms. Bonilla-OElu:ns reviewed the rep*rts on the effluent and reuse flowf rain{all,the meter replacement report for Apri1, and a lisl of zer$ usase rneter readings in theUiskict, copies of rn/hich are attached.

HEARINC REGARNINC TEKMINAT:ON OF {JTTT,;TY S}iRVTCF. TO NF,i,INOI]FNT

&CCQUNTS

h{s. Boniila*Ortums submitted a list of de}inquent accc,runts to the Board forterminatinn *f utility service. She stated that the accounts in question have been givenwritten noti{ication of the opportunity to appear, either in prrson or in writing, at theBoard meeting to contest, explain, elr correct the charges, service$, eir disconnection. Ms"

Bonilla-Sdums neitecl that the aceounts iistecl have:reither attend*d the Board rneetingnor contacted his o{fice or the District to cr:ntest r:rr expiain the eharges. Afterdiscussion, Director Sykes moved that the District's r:perator be authorized to prnceedwith terminati*n uf the utility service to said accounts, pursuant to the provisions of theilistrict's Rate Order. Tht: motioll was seconded by Director Canepa and carrieciunanimously.

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AL RT fil';I i F WATER COh]SERVATION

The Board considered approving the annual report on implementation of the

Water Cnnser-vation Plan" Upnn a motion made by Director Sykes and seconded byDirector Canepa, the Boarcl votec{ unanimously to approve the annual report onimplementation o{ the Water Conservation P}an.

CHAMPIONS REPORT

Mr. Fort presented a report on the District's drainage $acilities, a cspy oI which is

attached

LAKE PRO INC

The Soard r-liscussed the occurrence of dead {ish in the }akes. Director Sykes

reported that the fountains were run for 24 hours to correct the water quality problems.Director Owens reported that he ant{ Sirector Sykes agreed to instruct I.M.$. LandscapeServices, ine. ("i.M.S""), to cease fertilization around the lakes to ensure that thefertilizer cloes not cau$e the {ish to die.

I.M.S. IlETSNT

Director Owens discussed proposals from I"M.S. {or additir:na} landscape workthat resulted in an additianal $1,00U more than the previous proposal. After cliscussion,

Director Sykes moved to approve the additional landscape work. Directnr Canepaseconded the rnation, which carrier.l unanimously.

Director Owens stated that he is iooking int* options for repairing or replacingthe rr.lsted benehes and for eoncrete repai.rs.

PATROL SERVICES

Dir*ctor Sykes reported nn the Rape Aggression De{ense Systerns classes to be

held by the Harris County Precinct 5 Constable's Of{ice at the Cypress Creek LakesClubhouse ("Clubhouse").

The Soard discuss*d an email fro:n Armistead A" Aldrich, a resid*nt of theOi*triet, requesting an annual report of security *ervice incidents and updating o{ a

con{licts disclosure fnrm" No action was taken.

MEHTING FACIL}TY

Direetor Canepa stated that he is sti1l investigating optinns for loeking theClubhouse ancl purchasing stackable chairs on a roltring plat{orm. He reported that anair conditioning unit at the ClubhCIuse requires replacernent" [Jpon a motion rnade by

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Director Sykes and seconded by Director Owens, the Board voted unanimously toauthorize replacement of the air conditioning unit in an amount not to exceed $5,000.

DEVELOPER'S REPORT

Mr. Corson reported on development activities in the area.

,S REPORT

Mr. Corson and the Board discussed options to fund the District'sreimbursement of Mischer for eligible parks/ recreational facilities.

DISTRICT WEBSITE DISCUSSION

There was no discussion of website matters. The Board directed ABHR not todistribute draft meeting minutes on a monthly basis to anyone other than directors andconsultants. Ms. Edwards stated that ABHR will provide the meeting agenda/ minutesdistribution list to the Board for review at its next meeting.

There being no further business to cometo adjourn the meeting.

the Board, the Board concurred

fusr of Directors

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LIST OF ATTA ?O MI}.JUTES

Minutes

Iage "

Bookkeeper's repr:rt "...Investment repcrt".......Tax report."...."......Operator's report.Propeisal for repair of the liIt staticn na. 2lift pump no. 3 or replacement.............".".....

Rep*rts on eftluent and reuse flow/rain-fal1, meter replacement report for April, andlist of zero usage meter readings

Champions report

1

1

2

3

3

a!J

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