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91070-002 495554v1

HARRIS COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 70

NOTICE OF PUBLIC MEETING

Notice is hereby given to all interested members of the public that the Board of Directors of the captioned district will hold a public meeting at 2935 Foley Road, Crosby, Texas 77532.

Consultants and Members of the public may access the meeting by telephone conference call by following the instructions listed at the bottom of this notice.

The meeting will be held at 6:30 p.m. on Wednesday, October 7, 2020.

The subject of the meeting is to consider and act on the following:

1. Approve Minutes of September 2, 2020 Board of Directors Meetings

2. Tax Assessor/Collector’s Report; Payment of Bills; Delinquent Tax Report

3. Consider offer for exclusion of land from the District

4. Public hearing on proposed 2020 tax rate

5. Order Setting Tax Rate, Approving Tax Roll, and Levying Maintenance and Operation Tax for the Year 2020

6. Amendment to Statement of Directors

7. Update Tax Code Section 26.18 Compliance Report

8. Operator/Manager’s Report; compliance issues; authorize maintenance and repairs, as necessary; lift station charges; backflow prevention testing

9. Engineer’s Report; Requests for Service

10. Bookkeeper’s Report; Payment of Bills; Depository Pledge Agreements

11. Billing and Collections Report

12. Public Comments

_______________________________________G. Taylor Goodall, Attorney for the District

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Instructions for accessing telephone conference call:

On March 16, 2020, in accordance with section 418.016 of the Texas Government Code, Governor Abbott has suspended various provisions of the Texas Open Meetings Act that require government officials and members of the public to be physically present at a specified meeting location (the “Proclamation”). In accordance with the Proclamation, the District has implemented procedures to allow members of the public to participate and address the Board of Directors during the telephone conference meeting. To participate in the telephone conference meeting:

1. Please call 1-323-484-5463 and use access Code 443 934 462# to access the meeting and announce your name to the meeting host.

2. The agenda packet will be available at the following web site:

https://2618compliance.wordpress.com/board-meeting-packets/

3. The audio of the meeting will be recorded.

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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 70Minutes of Meeting of Board of Directors

September 2, 2020

The Board of Directors (“Board”) of Harris County Water Control and Improvement District No. 70 (“District”) met by teleconference on September 2, 2020, in accordance with the duly posted notice of said meeting, with a quorum of Directors present, as follows:

Bobby Crippens, PresidentTerry Lutz, Vice President Randall Keith Adams, Secretary Steve Kimes, DirectorJim Raines, Director/Treasurer

and the following absent:

none

Also present were, Bob Ideus, Sam Werner, Pam Graham, Mike Higgins, Greg Lentz, and G. Taylor Goodall, Jr.

The President called the meeting to order and declared it open for such business as might regularly come before it.

1. The Board considered the minutes of the meeting held on August 5, 2020. After brief review and discussion, upon motion duly made and seconded, the Board unanimously approved the minutes as presented.

2. The tax assessor presented a tax assessor/collector’s report. The District’s 2019 taxes are 97.88% collected. Subject to that discussion, upon motion duly made and seconded, the Board unanimously approved the tax assessor-collector’s report as presented and authorized disbursement of the funds contained therein.

3. The Board considered an offer to exclude land from the District. Mr. Goodall presented the Board with a brief analysis regarding the options the offer for exclusion of land. The Board reviewed the analysis and consulted with each other, Mr. Goodall, and Mr. Lentz. After discussion, it was decided the matter should be tabled for further discussion at the District’s October meeting.

4. The Board then recognized Greg Lentz, the District’s financial advisor, who presented a cash flow analysis and recommendation with respect to the District’s 2020 tax rate. The Board reviewed the analysis and recommendation, as well as the 2020 voter-approval tax rate worksheet. The Board considered the attached Resolution Finding District to be Developed District in a Declared Disaster Area, Calling Public Hearing on 2020 Tax Rate, and Authorizing Tax Assessor-Collector to Prepare and Publish Notice of the Public Hearing. After discussion, upon unanimous vote, the Board adopted the attached Resolution and authorized publication of a Notice of a Public Hearing at which the Board will consider adoption of a total

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2020 tax rate of $.59 per $100 assessed valuation, which the Board noted consists of a debt service tax of $.19, a maintenance tax of $.40.

5. Mr. Goodall noted that since the District had proposed a 2020 tax rate, it was necessary for the District to update the Tax Code Section 26.18 compliance document to reflect such proposed rate.

6. The Board reviewed an operator’s report. After review brief review and discussion of the report, upon motion duly made and seconded, the Board authorized the District’s operator to proceed with termination of utility service pursuant to provisions of the Rate Order and approved the operator’s report as presented.

7. Sam Werner presented an engineer’s report and an update on all projects.The engineer discussed the water plant No. 1 ground storage tank replacement project and presented and recommended approval of Pay Application No. 3 in the amount of $47,250.00 to C3 Constructors, LLC. The engineer discussed the water plant No. 1 elevated storage tank demolition project and presented and recommended approval of issuance of Notice of Award, execution of contract to JTB services, Inc. in the amount of $49,835.00 subject to review by attorney, and authorization to issue the Notice to Proceed. Upon motion duly made and seconded, the Board approved the engineer’s report as presented and the action items contained therein.

8. Mr. Bob Ideus presented the bookkeeper’s report. The District’s operating fund balance is $1,495,338.66. After brief review and discussion, upon motion duly made and seconded, the Board approved the bookkeeper’s report as presented and authorized disbursement of the funds and action items contained therein.

9. Pam Graham then reviewed a billing and collections report. The District collected $39,559.16 during the month. After further discussion, upon motion duly made and seconded, the Board unanimously approved the billing and collections report as presented.

There being no further business to consider, the meeting was adjourned.

Secretary

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HARRIS COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 70

Order Setting Tax Rate, Approving Tax Roll, and Levying Debt Service Taxand Maintenance and Operation Tax for the Year 2020

At a meeting of the Board of Directors (the “Board”) of Harris County Water Control and

Improvement District No. 70 (the “District”) held on October 7, 2020, at which a quorum of said

Board was present, as follows:

Bobby Crippens, PresidentTerry Lutz, Vice PresidentRandall Keith Adams, SecretaryJim Raines, Director/TreasurerSteve Kimes, Director

and the following absent:

None

the following business was transacted:

The Order set out below was introduced and considered by the Board. It was then

moved, seconded and unanimously carried that the following Order be adopted:

Whereas, the Chief Appraiser of the Appraisal District in which the District

participates has certified the tax roll of the District for the year 2020;

Whereas, in determining the tax rate to be levied, the Board has considered 1) the

amount which should be levied for maintenance and operation purposes; 2) the amount which

should be levied for the payment of principal, interest, and redemption price of each series of

bonds or notes payable in whole or in part from taxes; and 3) the percentage of anticipated tax

collections and the cost of collecting taxes, all in accordance with § 54.602(b) of the Texas

Water Code; and

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Whereas, a majority of the electors voting in an election held for and within the

District have heretofore approved and authorized the levy and collection of a tax for operations

and maintenance purposes.

Therefore be it ordered by the Board of Directors as follows:

I.

The Board hereby directs that there be levied on all taxable property within the

District an ad valorem tax for the year 2020 at the rate of $0.40 per $100 of assessed valuation

for maintenance and operations.

II.

The Board hereby directs that there be levied on all taxable property within the

District an ad valorem tax for the year 2020 at the rate of $0.19 per $100 of assessed valuation

for debt service.

III.

The Board hereby approves the tax roll of the District as prepared by the tax

assessor-collector for the year 2020.

IV.

Taxes shall be due and payable when billed and shall be paid on or before January

31, 2021. All taxes not paid before February 1, 2021 shall become delinquent on that date, and

penalty and interest will be added in accordance with the Texas Property Tax Code.

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V.

The Board hereby authorizes and instructs the District’s tax assessor-collector to

assess and collect the taxes authorized by the Board in this Order.

VI.

The Board hereby authorizes the President or Vice President to execute this Order

and Secretary or Secretary Pro Tempore to attest to this Order on behalf of the Board and the

District, and to do any and all things necessary to give effect to the intent hereof.

Passed, ordered and adopted, this October 7, 2020.

PresidentATTEST:

Secretary

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I, the undersigned Secretary of the Board of Directors of Harris County Water

Control & Improvement District No. 70 hereby certify that the foregoing is a true and correct

copy of the Order setting a tax rate for the year 2020, and minute entry showing its adoption at

the Board’s meeting held on October 7, 2020, the original of which Order and minute entry are

on file in the minute book of the Board in the District’s office.

I further certify that said meeting was open to the public, and that notice was

given in compliance with the provisions of Tex. Gov’t. Code Ann. § 551.001 et seq. as adopted,

and as suspended in part by the Governor of Texas on March 16, 2020.

Witness my hand and the seal of said District, this October 7, 2020.

______________________________Secretary

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91070-002 495977v1

HARRIS COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 70

Amendment to Statement of Directors Furnishing InformationRequired by Section 49.455(b), Texas Water Code, as Amended

Whereas, the governing body of Harris County Water Control & Improvement DistrictNo. 70 has heretofore filed with the County Clerk of the County (or Counties) in which saidDistrict is located a Statement of Directors Furnishing Information Required bySection 49.455(b), Texas Water Code, as amended (hereinafter called the “Statement”).

Whereas, certain changes have recently been made in the information contained in saidStatement, and an amendment should be filed setting forth such changes, as required bySection 49.455(e) of said Code.

Now, therefore, the undersigned, who constitute a majority of the directors of District,file the following amendment to said Statement, hereby affirming and acknowledging that thefollowing information is true and correct:

1. Sections 3 and 9 of said Statement is hereby amended in their entirety and shallhereafter read as follows:

“Section 3. The most recent tax levied by the District on property located within theDistrict is that for the year 2020, and the rate is $0.59 per $100 assessed valuation.”

“Section 9. The particular form of Notice of Purchasers required by Section 49.452 tobe furnished by a seller to a purchaser of real property in the District completed with all requiredinformation is as follows:

“HARRIS COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 70NOTICE TO PURCHASERS OF REAL PROPERTY

as Required by Section 49.452, Texas Water Code, as Amended

The real property which you are about to purchase is located in the Harris County WaterControl & Improvement District No. 70. The District has taxing authority separate from anyother taxing authority, and may, subject to voter approval, issue an unlimited amount of bondsand levy an unlimited rate of tax in payment of such bonds. As of this date, the rate of taxeslevied by the District on real property located in the District is $0.59 on each $100 of assessedvaluation. The total amount of bonds, excluding refunding bonds and any bonds or any portionof bonds issued that are payable solely from revenues received or expected to be received undera contract with a governmental entity, approved by the voters and which have been or may at thisdate be issued is $6,006,000, and the aggregate initial principal amount of all bonds issued forone or more of the specified facilities of the District and payable in whole or in part fromproperty taxes is $6,006,000.

The District is located in whole or in part in the extraterritorial jurisdiction of the City ofHouston. By law, a district located in the extraterritorial jurisdiction of a municipality may be

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annexed without the consent of the district if the municipality complies with the procedures andrequirements of Chapter 43, Texas Local Government Code, as amended. The law also providesthat, except in very limited circumstances, a municipality may not annex land in itsextraterritorial jurisdiction without the consent of the landowners and/or voters in the areaproposed to be annexed. If all of the area in a district is annexed, the district is dissolved. If thedistrict and a municipality are parties to a strategic partnership agreement specifying theprocedures for full purpose annexation of all or a portion of the district, the terms of thatagreement will apply concerning annexation.

The purpose of the District is to provide water, sewer, drainage and flood controlfacilities and services within the District through the issuance of bonds payable in whole or inpart from property taxes. The cost of these utility facilities is not included in the purchase priceof your property, and these utility facilities are owned or to be owned by the District. The legaldescription of the property which you are acquiring is set forth in the Exhibit which is attachedhereto and by this reference made a part hereof.

[Property Description]

Date Signature of Seller

[ACKNOWLEDGMENT OF SELLER]

PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORMIS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICTROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBERTHROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THETAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TOCONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT ORPROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.

The undersigned purchaser hereby acknowledges receipt of the foregoing notice at orprior to execution of a binding contract for the purchase of the real property described in suchnotice or at closing of the purchase of the real property.

Date Signature of Purchaser

[ACKNOWLEDGMENT OF PURCHASER]”

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Date: October 7, 2020

_____________________________Bobby Crippens Terry LutzPresident and Director Vice President and Director

____________________________Randall Keith Adams Jim RainesSecretary and Director Treasurer and Director

Steve KimesDirector

STATE OF TEXAS §§

COUNTY OF HARRIS §

This instrument was acknowledged before me on October 7, 2020

by

the

directors and officers of Harris County Water Control & Improvement District No. 70, on behalfof Harris County Water Control & Improvement District No. 70.

Notary Public, State of Texas

AFTER RECORDING RETURN TO:SMITH, MURDAUGH, LITTLE & BONHAM, L.L.P.2727 Allen Parkway, Suite 1100Houston, TX 77019

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Manager/Operator Report

October 7, 2020

1. The number one Blower Motor at WWTP #1

blew up. I had Crawford Tech. Services install a

new motor.

2. I had Lucas Tree Service cut 2 trees on WCID 70

property located behind Section 6 at Old

Galloway street.

3. I submitted the August DMR on-line to the EPA.

4. J&J Generator Services came out and did the

third quarter PM on our Generators.

5. I submitted our 1999-2020 sludge reports to

the EPA and sent copies to TCEQ.

6. I had Magna Flow unclog a sewer at the 3000

and 3100 blocks of Deep Anchor.

7. I pulled Bac-T samples for the month of

September. The results came back negative.

8. Pam and I did the Operator Confirmation

Report and I emailed it to the

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P:\HC WCID 70\163000\- ENG REPORT\2020\201007 STATUS REPORT JRA.DOCX Page 1 of 2

ENGINEER’S REPORT

HARRIS COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 70

MEETING OF OCTOBER 7, 2020

The following is a status report for the ongoing engineering activities in the District since the

last report. The meeting will be held on Wednesday, October 7, 2020, at 6:30 p.m.

7. Engineer’s Report;

Water Plant No. 1 Ground Storage Tank Replacement (A&S project 163102.01)

The new GST has been delivered and the Contractor is working on assembling the floor

sections.

Water Plant No. 1 Elevated Storage Tank Demolition (A&S project 163102.02) The bonds and insurance have been reviewed and approved by the Attorney. We have with us the contract agreements for your execution. We are working to schedule a Pre-Construction meeting.

ACTION ITEM: Execute Contract Agreement Water Plant No. 1 and Marina Lift Station Electrical Improvements

The preliminary cost estimate for the Water Plant Electrical Improvements presented in the

ten-year capital improvement plan was $617,228. After reviewing recent bids on several

similar projects and discussions with our electrical engineer we recommend just replacing

the Water Plant No. 1 electrical system at this time due to higher than expected electrical

costs. We recommend the replacement of the Marina Lift Station electrical system be

deferred to the near future. Electrical costs are higher than expected due to tariffs, labor

availability, and other market forces. We anticipate Harris County requiring detention

capacity which also been factored into the cost estimate.

In an effort to reduce the overall cost of the project, the generator replacement was removed

from the scope of work. The Operator has requested we incorporate additional weather

protection (concrete masonry unit buildings) into the design for the MCC and booster pumps.

We can bid these buildings individually as an alternate bid items; the Board can review the

bid and decide at that time whether to add one or both of the buildings to the project subject

to cost. The replacement natural gas generator can also be added as an extra work bid item.

The preliminary cost estimates and proposed site plan are attached for your review.

ACTION ITEM: As directed by the Board.

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Recurring Items (No Status Change)

• Sanitary Sewer Inflow

• Capital Improvement Plan

James R. Ainsworth, P.E.

Engineer for the District

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HC WCID No. 70

Water Plant No. 1 Electrical Improvements

October 1, 2020

PRELIMINARY COST ESTIMATE - NO BUILDINGS

Item Unit Quantity Unit Cost Total

Move-in, Bonds and Insurance LS 1 26,000$ 26,000$

Site Demolition Work LS 1 10,000 10,000 (2)

Yard Piping LS 1 20,000 20,000 (3)

Booster Pump Replacement EA 2 30,000 60,000 (4)

Booster Pump Slab* LS 1 15,000 15,000 (5)

Site Grading and Drainage LS 1 15,000 15,000 (6)

Crushed Concrete Access Road SY 225 40 9,000 (7)

Protective Coatings LS 1 15,000 15,000 (8)

Motor Control Center (MCC) Canopy & Slab* LS 1 15,000 15,000 (9)

Relocate Existing 100kW Generator LS 1 10,000 10,000 (10)

Electrical Improvements LS 1 350,000 350,000 (11)

Programming Allowance LS 1 20,000 20,000 (12)

*Alternate Bid Option Available

SUBTOTAL: 545,000$

CONTINGENCY (15%): 82,000

SOFT COSTS: 119,000

TECHNICAL SERVICES: 10,000 (13)

DIRECT EXPENSES: 8,000 (14)

TOTAL: 764,000$

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NOTES:(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

This cost includes Coating Inspection and Construction Material Testing.

This cost includes proposed MCC with PLC, service drop and main disconnect, ATS, conductors and conduit, controls, and miscellaneous

electrical.

This cost includes an allowance for programming.

This cost includes advertisement, review fees, mileage, and miscellaneous reimbursable expenses.

This cost includes the relocating the existing 100kW diesel generator and fuel tank as well as generator slab and galvanized steel canopy.

This cost includes demolition and legal disposal of the existing pump house, booster pumps, and piping.

This cost includes suction, header, and discharge piping and valves for the replacement booster pumps.

This estimate represents my best judgment as a design professional familiar with the construction industry. A&S Engineers, Inc. has no

control over the cost of labor, materials, or equipment; over the Contractor's methods of determining bid prices; or over competitive bidding

or market conditions. Accordingly, we cannot and do not guarantee that bids will not vary from this cost estimate.

This cost includes the slab and canopy for the proposed MCC .

This cost includes replacing the existing booster pumps with two (2) 40 HP 500 GPM @ 65 PSI horizontal split case booster pumps.

This cost includes the slab and concrete pipe supports for the proposed booster pumps and header piping.

This cost includes a 125 CY detention capacity, site grading, Type 'A' inlet, and 12" PVC storm sewer.

This cost includes the crushed concrete access road.

This cost includes protective coatings to the proposed booster pumping.

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HC WCID No. 70

Water Plant No. 1 Electrical Improvements

October 1, 2020

PRELIMINARY COST ESTIMATE - WITH ADDITIONAL WEATHER PROTECTION

Item Unit Quantity Unit Cost Total

Move-in, Bonds and Insurance LS 1 35,000$ 35,000$

Site Demolition Work LS 1 10,000 10,000 (2)

Yard Piping LS 1 20,000 20,000 (3)

Booster Pump Replacement EA 2 30,000 60,000 (4)

CMU Pump House* LS 1 140,000 140,000 (5)

Site Grading and Drainage LS 1 15,000 15,000 (6)

Crushed Concrete Access Road SY 225 40 9,000 (7)

Protective Coatings LS 1 15,000 15,000 (8)

CMU Motor Control Center (MCC) Building* LS 1 75,000 75,000 (9)

Relocate Existing 100kW Generator LS 1 10,000 10,000 (10)

Electrical Improvements LS 1 350,000 350,000 (11)

Programming Allowance LS 1 20,000 20,000 (12)

*Alternative Bid Option

SUBTOTAL: 739,000$

CONTINGENCY (15%): 111,000

SOFT COSTS: 119,000

TECHNICAL SERVICES: 10,000 (13)

DIRECT EXPENSES: 8,000 (14)

TOTAL: 987,000$

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NOTES:(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

This cost includes Coating Inspection and Construction Material Testing.

This cost includes proposed MCC with PLC, service drop and main disconnect, ATS, conductors and conduit, controls, and miscellaneous

electrical.

This cost includes an allowance for programming.

This cost includes advertisement, review fees, mileage, and miscellaneous reimbursable expenses.

This cost includes the relocating the existing 100kW diesel generator and fuel tank as well as generator slab and galvanized steel canopy.

This cost includes demolition and legal disposal of the existing pump house, booster pumps, and piping.

This cost includes suction, header, and discharge piping and valves for the replacement booster pumps.

This estimate represents my best judgment as a design professional familiar with the construction industry. A&S Engineers, Inc. has no

control over the cost of labor, materials, or equipment; over the Contractor's methods of determining bid prices; or over competitive bidding

or market conditions. Accordingly, we cannot and do not guarantee that bids will not vary from this cost estimate.

This cost includes the proposed concrete mansonary unit (CMU) building to house the MCC as well as, doors, hardware, lighting, and AC

unit.

This cost includes replacing the existing booster pumps with two (2) 40 HP 500 GPM @ 65 PSI horizontal split case booster pumps.

This cost includes the proposed concrete mansonary unit (CMU) building to house the proposed booster pumps as well as overhead monorail

with manual chain pulley block, lighting, rollup door, and ventilation fans.

This cost includes a 125 CY detention capacity, site grading, Type 'A' inlet, and 12" PVC storm sewer.

This cost includes the crushed concrete access road.

This cost includes protective coatings to the proposed booster pumping.

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