PAGE 1 OF 2 93019-002 487342v1 FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19 NOTICE OF PUBLIC MEETING Notice is hereby given to all interested parties that the Board of Directors of the captioned District will hold a public meeting by telephone conference call. Members of the public may access the meeting by following the instructions listed at the bottom of this notice. The meeting will be held at 6:00 p.m. on Wednesday, August 5, 2020. The subject of the meeting is to consider and act on the following: 1. Public comment 2. Minutes of the meetings held on July 1 and July 21, 2020 3. Tax assessor-collector’s report; status of tax collections; authorize collection action on delinquent accounts; payment of expenses from tax account 4. Tax Rate for 2020; designate type of district for tax rate purposes pursuant to SB 2, approve proposed tax rates for 2020; authorize publication of notice 5. Operator’s report; status of District facilities; authorize repair and maintenance; termination of service to delinquent accounts 6. Increase in fire protection fees from City of Richmond; amendment to rate order regarding same 7. Bookkeeper’s report; pay bills; investment of District funds 8. Developer’s report; status of development and homebuilding 9. Status of 2020 Bond Issue; Developer reimbursement audit; authorize payment of developer reimbursement to Independent Bank pursuant to collateral assignment 10. Amendment to Statement of Directors for sale of Series 2020 Bonds 11. Engineering report; approve award of contracts and change orders; status of district facilities 12. Community Development Block Grant project; design and construction of Phase 7 water line replacement; status of force main rehabilitation; approve pay estimates; 2020 grant application 1
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PAGE 1 OF 293019-002 487342v1
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
NOTICE OF PUBLIC MEETING
Notice is hereby given to all interested parties that the Board of Directors of thecaptioned District will hold a public meeting by telephone conference call. Members of thepublic may access the meeting by following the instructions listed at the bottom of this notice.
The meeting will be held at 6:00 p.m. on Wednesday, August 5, 2020.
The subject of the meeting is to consider and act on the following:
1. Public comment
2. Minutes of the meetings held on July 1 and July 21, 2020
3. Tax assessor-collector’s report; status of tax collections; authorize collectionaction on delinquent accounts; payment of expenses from tax account
4. Tax Rate for 2020; designate type of district for tax rate purposes pursuant to SB 2,approve proposed tax rates for 2020; authorize publication of notice
5. Operator’s report; status of District facilities; authorize repair and maintenance;termination of service to delinquent accounts
6. Increase in fire protection fees from City of Richmond; amendment to rate orderregarding same
7. Bookkeeper’s report; pay bills; investment of District funds
8. Developer’s report; status of development and homebuilding
9. Status of 2020 Bond Issue; Developer reimbursement audit; authorize payment ofdeveloper reimbursement to Independent Bank pursuant to collateral assignment
10. Amendment to Statement of Directors for sale of Series 2020 Bonds
11. Engineering report; approve award of contracts and change orders; status ofdistrict facilities
12. Community Development Block Grant project; design and construction of Phase7 water line replacement; status of force main rehabilitation; approve payestimates; 2020 grant application
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Instructions for accessing telephone conference call:
On March 16, 2020, in accordance with section 418.016 of the Texas GovernmentCode, Governor Abbott has suspended various provisions of the Texas Open Meetings Act thatrequire government officials and members of the public to be physically present at a specifiedmeeting location (the “Proclamation”). In accordance with the Proclamation, the District hasimplemented procedures to allow members of the public to participate and address the Board ofDirectors during the telephone conference meeting. To participate in the telephone conferencemeeting:
1. Please call 1-866-773-8424 and use access Code 703358# to access the meeting and announceyour name to the meeting host.
2. The agenda packet will be available at the following web site:
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
Minutes of Meeting of the Board of DirectorsJuly 1, 2020
The meeting of the board of directors (“Board”) of Fort Bend County MunicipalUtility District No. 19 (“District”) was held by telephone conference call July 1, 2020, inaccordance on with the duly posted notice of the meeting, with a quorum of directors present, asfollows:
Terry Roy, PresidentBilly Revis, Vice PresidentJohn Randall Gemmer, SecretaryCarolyn Fields, TreasurerAlisa M. Williams, Director
and the following absent:
None.
Also present on the call were Mr. Michael McCarthy, Mr. David Glunt, Mr. GregDubiel, Ms. Vickey Sullivan, Ms. Claudia Redden, Mr. John Howell, and Mr. Wm. Scott Smith.
The meeting was called to order and declared open for such business as mightregularly come before it.
1. The Board opened the floor for public comment. No public comment waspresented.
2. The Board unanimously approved the minutes of the meetings held onJune 3 and 18, 2020.
3. Ms. Sullivan presented the tax assessor-collector’s report indicating that2019 taxes are 94% collected. Upon motion duly made, seconded and unanimously carried, theBoard unanimously approved the tax assessor-collector’s report and the checks drawn on the taxfund.
4. The Board discussed the upcoming 2020 Bond issue. Mr. Howell statedthat Standard & Poors has committed to issuing an investment grade rating of BBB- to theissuance. The Board noted that it would call a special meeting on July 21, 2020 for the bondsale.
5. Mr. Dubiel presented the operator’s report indicating that there were 360connections with in the District including 27 new taps. There have been no problems withcollections despite the lack of water terminations. The Board unanimously approved suspendingcutoffs through the month of July.
6. The Board unanimously approved an adjustment to the fee schedule to
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increase the sewer charge by $0.38 to accommodate the increase in garbage collections fees.
7. Ms. Redden presented bookkeeper’s report. Upon motion duly made,seconded and unanimously carried, the Board approved the bookkeeper’s report and the checkslisted thereon.
8. Mr. Glunt presented the developer’s report and noted that there were 18home sales in the prior month. The entry monument sign has been erected at the southernentrance to the District.
9. Mr. McCarthy presented the engineer’s report and noted that he isworking with the operator to address items in anticipation of the pre-purchase inspection. Hethen stated that due to the requirement to remove a section of driveway in order to accommodatethe Riverwood drainage project, a change order is necessary. The Board unanimously approvedChange Order No. 1 on this project in the amount of $11,505.
10. With respect to the CDBG activities, the one-year warranty inspection forthe phase 6 water line project is complete. The Board unanimously approved Change Order No.1 for the phase 7 water line project. Mr. Smith noted that the change order should be approvedby the Fort Bend County Development Department. The Board unanimously approved thechange order as described. The District has not heard anything from Fort Bend Countryregarding the CDBG request for the storm sewer rehabilitation project.
11. Mr. Smith noted that the director conflict of interest disclosure statementshave been distributed for completion by the directors.
There being no further business to come before the Board, the meeting wasadjourned.
Secretary
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FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
Minutes of Meeting of the Board of DirectorsJuly 21, 2020
The meeting of the board of directors (“Board”) of Fort Bend County MunicipalUtility District No. 19 (“District”) was held by telephone conference call July 21, 2020, inaccordance on with the duly posted notice of the meeting, with a quorum of directors present, asfollows:
Billy Revis, Vice PresidentJohn Randall Gemmer, SecretaryCarolyn Fields, TreasurerAlisa M. Williams, Director
and the following absent:
Terry Roy, President.
Also present on the call were Mr. Blair Bozoarth, Mr. David Glunt, Mr. JohnHowell, and Mr. Wm. Scott Smith.
The meeting was called to order and declared open for such business as mightregularly come before it.
1. The Board of directors of the District awarded the sale of the District’s$3,665,000 Series 2020 Bonds. The low bid was that of SAMCO Capital Markets with a neteffective interest rate of 3.047542%. Upon motion duly made, seconded and unanimouslycarried, the Board voted to adopt an Order Awarding Sale of the Series 2020 Bonds to SAMCOCapital Markets with a net effective interest rate of 3.047542%. which Order is attached to theminutes.
There was discussion, and upon motion duly made, seconded and unanimouslycarried, the Board voted to adopt the Bond Order for the Series 2020 Bonds, which Order isattached to the minutes.
The Board reviewed an agreement for services of The Bank of New York MellonTrust Company, N.A. to serve as the paying agent registrar on the District’s bonds. Upon motionduly made, seconded and unanimously carried, the Board voted to approve and authorize signingthe Paying Agency Registrar Agreement as presented.
After discussion, upon motion by duly made, seconded and unanimously carried,the Board voted to approve and authorize distribution of the Official Statement for the Series2020 Bonds.
The Board then reviewed certificates, resolutions and orders for approval,registration and delivery of the Series 2020 Bonds. Upon motion duly made, seconded by andunanimously carried, the Board voted unanimously to approve the certificates, resolutions andorders as presented, and to authorized District consultants and directors to take all necessaryactions for such approval, registration and delivery.
2. The Board unanimously approved engaging the District’s auditor toconduct a developer reimbursement audit pursuant to the rules of the TCEQ.
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There being no further business to come before the Board, the meeting wasadjourned.
Secretary
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FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
Resolution (1) Finding District to be Low Tax Rate, Developed, Developing, or DevelopedDistrict in a Declared Disaster Area, (2) Calling Public Hearing on 2020 Tax Rate and (3)Authorizing Tax Assessor-Collector to Prepare and Publish Notice of the Public Hearing
The Board of Directors (“Board”) of Fort Bend County Municipal Utility District No. 19
(“District”) met on August 5, 2020, with a quorum of directors present, as follows:
Terry Roy, PresidentBilly Revis, Vice PresidentJohn Randall Gemmer, SecretaryCarolyn Fields, Director/TreasurerAlisa M. Williams, Director
and the following absent:
None
when the following business was transacted:
WHEREAS, before the Board adopts an annual ad valorem tax rate for the District, the
Board is required to give notice pursuant to § 49.236 of the Texas Water Code (“Code”) of each
meeting at which adoption of the tax rate will be considered (“Notice of Public Hearing”), and
WHEREAS, the language required to be included in the Notice of Public Hearing varies
based on whether the District is a low tax rate, developed or developing district, as those terms
are described in §§ 49.23601, 49.23602, and 49.23603 of the Code, and therefore the Board must
determine which of these types of districts the District is, and
WHEREAS, the District must further determine as appropriate under §§ 49.23601,
49.23602, or 49.23603 of the Code the voter-approval tax rate, mandatory tax election rate and
unused increment rate and call a public hearing to consider a proposed tax rate for 2020.
NOW, THEREFORE, be it resolved by the Board of Directors of the District as follows:
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I.
All of the facts recited in the preamble of this Resolution are hereby found and declared
to be true and correct.
II.
For purposes of adopting an ad valorem District tax rate for 2020, the Board of Directors
of the District hereby finds and determines that the District is the type of district as indicated
below:
_____ Low Tax Rate District (Texas Water Code § 49.23601)
_____ Developing District (Texas Water Code § 49.23603)
_____ Developed District (Texas Water Code § 49.23602)
_____ Developed District in a Declared Disaster Area(Texas Water Code §49.23602 (d))
III.
The District designates and directs its tax assessor-collector to prepare and calculate the
voter-approval tax rate, mandatory tax election rate and unused increment rate as appropriate and
required under §§ 49.23601, 49.23602, or 49.23603 of the Code according to the type of district
the Board has determined the District to be.
IV.
The Board of Directors of the District hereby calls a public hearing to consider a
proposed 2020 ad valorem tax rate at the Board’s next regular meeting on September 2, 2020 at
6:00 p.m.
V.
The District hereby authorizes and directs its tax assessor-collector to prepare a Notice of
Public Hearing and include therein the appropriate language as required under § 49.236 of the
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Code according to the type of district the Board has found the District to be. The tax assessor-
collector is further authorized and directed to publish the Notice of Public Hearing in the time
and manner required by § 49.236 of the Code.
VI.
If the District is a Developed District in a Declared Disaster Area, the District directs its
tax assessor-collector to calculate the District’s voter-approval tax rate under § 49.23601(a) of
the Code and prepare and publish the Notice of Public Hearing under § 49.236 (a) (3) (A) of the
Code. The District shall by separate action determine whether an election is required to approve
the adopted tax rate in the manner provided under §49.23601 (c) of the Code.
VII.
The President or Vice President is authorized to execute and the Secretary, Assistant
Secretary or Secretary Pro Tempore to attest this Resolution on behalf of the Board and the
District, and to do any and all things appropriate or necessary to give effect to the intent hereof.
TERRY ROY_______________________________________President
ATTEST:
JOHN RANDALL GEMMER________________________________Secretary
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I, the undersigned Secretary of the Board of Directors of Fort Bend County
Municipal Utility District No. 19, hereby certify that the foregoing is a true and correct copy of
the Resolution adopted by said Board at its regular meeting of August 5, 2020, and a minute
entry of that date showing the adoption thereof, the original of which resolution appears in the
minute book of said Board, on file 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 ______________________.
Secretary
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CONNECTIONS: 378 NEW TAPS: 15GARBAGE: 307 TAPS YTD: 42VACANT: 10
Water Sewer Tap Fees Insp. Fees App. FeeREVENUE: 22,704.53$ 23,784.95$ 21,100.00$ 4,400.00$ 325.00$
Vol. Fire Penalty Deposit Misc. TOTAL-$ 678.30$ 1,800.00$ 33.41$ 74,826.19$
WATER - BILLING CYCLE:
Total Gallons billed 1,901,000 City of Richmond invoice gallons billed 2,443,000Gallons used for flushing 360,000 City of Richmond total $ billed water/sewer $15,757.35Total $ billed out water/sewer 50,382.70$ City of Richmond total $ billed GWRF $5,912.06
93% Pumped vs billed YTD 118%182,000
BILLING STATUS:
Current 30 day 60 day 90 day 120 dayPenalty -$ 605.08$ 206.98$ -$ 81.58$ Deposit 450.00$ (450.00)$ -$ -$ -$ Sewer 25,961.84$ 4,294.56$ 1,620.57$ 255.07$ 630.61$ App Fee 175.00$ 75.00$ -$ -$ -$ Water 24,420.86$ 3,422.33$ 1,201.40$ 190.22$ 513.33$ Tap Fee -$ -$ -$ -$ -$ Vol Fire -$ -$ -$ -$ -$ Insp -$ -$ -$ -$ -$ Misc 25.00$ (16.00)$ -$ -$ 140.02$ TOTAL 51,032.70$ 7,930.97$ 3,028.95$ 445.29$ 1,365.54$
Service line leaks repaired in district: 1Meter leaks repaired in district: 0Fire hydrant repairs in district: 0
# Taken ResultsBacteriological samples: 2 Good
MONTHLY OPERATIONS REPORT FOR FORT BEND COUNTY MUD NO. 19
June 2020
05/19/20 - 06/17/20
Pumped vs BilledTotal water lost
Total893.64$
-$ 32,762.65$
250.00$ 29,748.14$
-$ -$ -$
149.02$ 63,803.45$
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MONTHLY MAJOR REPAIRS REPORT FOR FORT BEND COUNTY MUD NO. 19
$3,498.00
4610 S RichwoodRepaired sanitary sewer line
$2,046.00
July 2020
4614 S RichwoodRepaired sanitary sewer line
$4,087.50
Used vactor truck clean out and locate valves for valve survey
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EVALYN W. MOORE
MAYOR
BARRY C. BEARDALEX BEMENTCARL DROZDTERRY GAUL
COMMISSIONERS
City of Richmond402 Morton Street
Richmond, TX 77469(281) 342-5456
July 21, 2020
Fort Bend County Municipal Utility District No. 19Board of Directors
c/o Smith, Murdaugh, Little & Bonham, LLP2727 Alien Parkway, Suite 100Houston, Texas 77019
Reference: Fire Protection Fees
Increase effective October 1, 2020
Honorable Board Members,
The City of Richmond confirms its commitment to provide excellent service and response times for fire protection, rescue
and related services to the residents of your district. Our partnership over the past years has proven invaluable to the
safety and welfare of the residents in the service area of the district.
Section 6(b) of the terms of the agreement for fire protection provide for annual adjustments to the monthly fire
protection fee per household within your district as stated and calculated below:
Annual Adjustment. Beginning October 1, 2014 and on each October 1 thereafter, the monthly charge
will be adjusted by 100% of the increase, if any, between the most recently published CPI and the CPI forthe preceding calendar year. "CPI" as used herein shall mean the revised Consumer Price Index for All
Urban Consumers (CPI-U), all items, published by the United States Department of Labor, Bureau of Labor
Statistics 1982-1984 = 100.
Current Rate
June 2019
June 2020
New Rate Effective 10/1/2020
CPI-U
256.143
257.797
$ 14.18
$ 14.27
Attached is a copy of the most recently published CPI for your reference. We remain committed to providing quality fire
protection services to the residents of the District. Please don't hesitate to contact me should you require additional
information regarding our proposed adjustment.
Sincerely,
^-^Terri Vela
City Manager
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Bureau of Labor Statistics
CPI for All Urban Consumers (CPI-U)Original Data Value
Series Id: CUUROOOOSAONot Seasonally Adjusted
Series Title: All items in U.S. city average, all urban consumers, not
Area: U.S. city average
Item: All items
Base Period: 1982-84=100
Years: 2010 to 2020
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec HALF1 HALF2
20102011201220132014201520162017201820192020
216.687
220.223
226.665
230.280
233.916
233.707
236.916
242.839
247.867
251.712
257.971
216.741
221.309
227.663
232.166
234.781
234.722
237.111
243.603
248.991
252.776
258.678
217.631
223.467
229.392
232.773
236.293
236.119
238.132
243.801
249.554
254.202
258.115
218.009
224.906
230.085
232.531
237.072
236.599
239.261
244.524
250.546
255.548
256.389
218.178
225.964
229.815
232.945
237.900
237.805
240.229
244.733
251.588
256.092
256.394
217.965
225.722
229.478
233.504
238.343
238.638
241.018
244.955
251.989
256.143
257.797
218.011
225.922
229.104
233.596
238.250
238.654
240.628
244.786
252.006
256.571
218.312
226.545
230.379
233.877
237.852
238.316
240.849
245.519
252.146
256.558
218.439
226.889
231.407
234.149
238.031
237.945
241.428
246.819
252.439
256.759
218.711
226.421
231.317
233.546
237.433
237.838
241.729
246.663
252.885
257.346
218.803
226.230
230.221
233.069
236.151
237.336
241.353
246.669
252.038
257.208
219.179
225.672
229.601
233.049
234.812
236.525
241.432
246.524
251.233
256.974
217.535
223.598
228.850
232.366
236.384
236.265
238.778
244.076
250.089
254.412
257.557
218.576
226.280
230.338
233.548
237.088
237.769
241.237
246.163
252.125
256.903
0.646%
Source: Bureau of Labor Statistics Generated on: July 20, 2020 (05:00:58 PM)
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FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
REPORT ON APPLYING AGREED-UPON PROCEDURES TO
CONSTRUCTION, ENGINEERING AND RELATED COSTS REIMBURSABLE
TO RIVERWOOD LAND, LLC (DEVELOPER) AND
INDEPENDENT BANK (LENDER)
FROM PROCEEDS OF THE SERIES 2020 BOND ISSUE
AUGUST 5, 2020
McCALL GIBSON SWEDLUND BARFOOT PLLCCertified Public Accountants
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FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
REPORT ON APPLYING AGREED-UPON PROCEDURES TO
CONSTRUCTION, ENGINEERING AND RELATED COSTS REIMBURSABLE
TO RIVERWOOD LAND, LLC (DEVELOPER) AND
INDEPENDENT BANK (LENDER)
FROM PROCEEDS OF THE SERIES 2020 BOND ISSUE
AUGUST 5, 2020
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TABLE OF CONTENTS
SCHEDULE
INDEPENDENT ACCOUNTANT’S REPORT ON APPLYINGAGREED-UPON PROCEDURES
SCHEDULE OF CONSTRUCTION, ENGINEERING ANDRELATED COSTS REIMBURSABLE TORIVERWOOD LAND, LLC (DEVELOPER) ANDINDEPENDENT BANK (LENDER) A
COMPARISON OF ACTUAL COSTS WITH COST SUMMARYAS APPROVED BY THE TEXAS COMMISSION ONENVIRONMENTAL QUALITY B
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McCALL GIBSON SWEDLUND BARFOOT PLLCCertified Public Accountants
13100 Worthain Center DriveSuite 235 DRAFT 9600 Great Hills Trail
Houston, Texas 77065-5610 SUBJECT TO CHANGE Suite 150W(713) 462-0341 Austin, Texas 78759
We have performed the procedures enumerated below, which were agreed to by the Board ofDirectors of Fort Bend County Municipal Utility District No. 19 (the “District”), on the invoicesand schedules submitted by Riverwood Land, LLC (the “Developer”) for payment from theDistrict’s Series 2020 bond proceeds. The responsible parties for this report are the intended usersof the report. These procedures were performed solely to assist you in evaluating thereasonableness of those costs, as required by the Texas Commission on Environmental Quality,and the report is not to be used for any other purpose.
Pursuant to 30 TAC Chapter 293.70 of the Texas Commission on Environmental Quality (the“Commission”), the Board of Directors of the District is responsible for engaging a certified publicaccountant or public accountant holding a permit from the Texas State Board of PublicAccountancy to perform certain agreed-upon procedures applicable to all items and amounts forwhich a reimbursement request has been received, and issue a report before a developer isreimbursed for expenditures incurred on the District’s behalf.
This agreed-upon procedures engagement was conducted in accordance with attestation standardsestablished by the American Institute of Certified Public Accountants. The appropriateness of theprocedures is solely the responsibility of the Board of Directors of the District. Consequently, wemake no representation regarding the appropriateness of the procedures either for the purpose ofwhich this report has been requested or for any other purpose. The procedures we have performedare as summarized below:
Member ofAmerican Institute of certified Public Accountants
Texas Society of Certified Public Accountants
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Board of Directors August 5, 2020Fort Bend County Municipal Utility District No. 19 DRAFT Page 2
SUBJECT TO CHANGE
A. We reviewed the Technical Memorandum dated February 10, 2020, the OrderApproving an Engineering Project and the Issuance of $3,665,000 in UnlimitedTax Bonds as approved by the Commission dated March 3, 2020, and rules of theCommission relative to the reimbursement request. Our review was for thepurpose of identifying those items authorized for District participation and thoseitems the District is specifically prohibited from purchasing. In some cases, ourefforts required review of portions of the bond application relative to this bondissue.
B. We reviewed for completeness certain Developer schedules, supporting invoicesand contract estimates in substantiation of the costs to be reimbursed. Our reviewincluded all documentation supporting items, amounts, and proof of payment forwhich reimbursement was requested.
C. We read the development and financing agreements for particular items that mightaffect the reimbursement. The agreements reviewed are referenced in our report.
D. We footed the extensions of any engineering invoices pertaining to thereimbursement on a test basis and compared the contract amounts used indetermining the fee for the design and construction phase portions of the invoiceto the related construction contracts and to the engineering contract whenappropriate.
E. For construction pay estimates, we footed and tested extensions of individualitems on a test basis on payments made on behalf of the District.
F. For all payments, we compared the payment dates to copies of cancelled checks.If cancelled checks were not available, alternate procedures were designed tosupport dates and amounts of payments.
G. We reviewed the formulas for computation of developer interest to be reimbursedto the Developer based upon the net effective interest rate of the District’s Series2020 bond issue and limited interest, if appropriate, in accordance with the ordersand rules of the Commission.
H. We inquired of the District’s Bookkeeper regarding current period General Fundexpenditures for costs to be reimbursed to the General Fund from the CapitalProjects Fund in accordance with the approval of the Commission. We reviewedprior year audit work papers for items paid in the past, which can now bereimbursed from bond proceeds.
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Board of Directors August 5, 2020Fort Bend County Municipal Utility District No. 19 DRAFT Page 3
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I. We obtained verbal confirmation from Triple B Services, LLP that all contractestimates to date have been paid in full and that there are no claims to be madeagainst either the District or Developer on the project. We were unable to obtainverbal confirmation from Aligood Construction Co., Inc. and T&C Construction,Ltd.
J. We obtained representations from the engineer who prepared and submitted thebond application.
K. A draft of our report was provided to the District’s Attorney, Engineer, FinancialAdvisor, Bookkeeper, and Developer prior to reimbursing the Developer.
L. We prepared for submittal to the Commission our report detailing the costs payable to the Developer and a schedule reflecting the results of the payment andfuture costs to complete as compared with engineering estimates.
The attached Schedule A, titled “Schedule of Construction, Engineering and Related CostsReimbursable to Riverwood Land, LLC (Developer) and Independent Bank (Lender)”, sets forththeir reimbursable costs. This reimbursement is in accordance with the Water, Sewer and DrainageImprovement Financing and Construction Contract between the District and Silvestri Investmentsof Florida, Inc. dated August 12, 2016. On July 23, 2020, Silvestri Investments of Florida, Inc.assigned all of its contract rights to Riverwood Land, LLC. On February 16, 2017, RiverwoodLand, LLC assigned all of its reimbursement rights under the contract to Independent Bank.
The Developer submitted a reimbursement request in the amount of $2,571,477.27 includingdeveloper interest of $177,832.70 on project costs and $5,482.36 on land acquisition costscalculated at 4.25% through November 30, 2019. We have reviewed the documentation and havecalculated a reimbursement in the amount of $3,174,894.86 including developer interest of$177,702.58 on project costs and $4,118.13 on land acquisition costs. An initial interestcalculation made through August 20, 2020, at 3.047542%, the net effective interest rate of theDistrict’s Series 2020 bond issue, totaled $208,180.53. However, we reduced that amount by$30,478.00 due to the limitation of available bond funds. We made the following changes to theDeveloper’s original reimbursement request:
1. We deducted $1,196.25 for sales taxes billed with engineering fees related to theconstruction of the utilities serving Riverwood Village, Section 4. The District isnot subject to sales tax.
2. We added $564,470.31 to correct the Developer’s schedule for the reimbursableamount of the construction of the Lift Station No. 3 serving Riverwood Village.
3. We added $31.48 to correct an engineering invoice amount related to theconstruction of the Lift Station No. 3 serving Riverwood Village.
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Board of Directors August 5, 2020Fort Bend County Municipal Utility District No. 19 Page 4
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4. We added $86,606.40 for the actual amount paid for water and wastewater impactfees.
5. We deducted $45,000.00 for operating costs for which no documentation wasprovided.
6. We deducted $1,364.23 per our recalculation of land acquisition costs.
7. We deducted $130.12 per our recalculation of developer interest on the abovechanges and at the net effective interest rate of the bonds.
Schedule B is a comparison of the actual reimbursable costs with estimated costs. As outlined inSchedule B, it appears the District will have the funds to meet the estimated requirements.Significant variances (over or under 10% of the projected costs) are explained below:
o Land acquisition costs were estimated for the bond application. Actual costs weremore than estimated.
o Water and Wastewater Impact Fees were estimated for the bond application.Actual costs were more than estimated.
o District Operating costs were estimated for the bond application. Actual costswere less then estimated.
In addition to the above, the District’s Bookkeeper has confirmed that an amount of $34,900.00 isto be transferred to the District’s General Fund from the bond proceeds for costs paid by theGeneral Fund as follows: $34,300.00 for bond application report costs and $600.00 formiscellaneous bond issuance expenses.
We were not engaged to and did not conduct an audit, the objective of which would be theexpression of an opinion on the aforementioned reimbursable costs. Accordingly, we do notexpress such an opinion. Had we performed additional procedures, other matters might have cometo our attention that would have been reported to you.
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Board of Directors August 5, 2020Fort Bend County Municipal Utility District No. 19 DRAFT Page 5
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This report of agreed-upon procedures is for the exclusive use of the Board of Directors of theDistrict in compliance with certain rules of the Commission. The report is intended for use by theBoard of Directors and is not intended to be associated with the presentation of any other financialdata of the District. We are aware that the report is subject to distribution under provisions of theTexas Open Records Act.
DRAFTSUBJECT TO CHANGE
McCall Gibson Swedlund Barfoot PLLCCertified Public AccountantsHouston, Texas
AUP Report — Series 2020 Bond Issue
44
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19SCHEDULE OF CONSTRUCTION. ENGINEERING AND RELATED COSTS
REIMBURSABLE TO RIVERWOOD LAND, LLC (DEVELOPER)AND INDEPENDENT BANK (LENDER) ~ C 7 ~
AUGUST 5.2020 1 ~
(SEE ACCOMPANYING DISCLAIMER OF OPINION ANDEXPLANATION OF AGREED-UPON PROCEDURES PERFORMED)
INTEREST TOTALREIMBURSABLE ACCRUEI) AT DUE
DESCRIPTION COST 3.0475420 * DEVELOPER
Triple B Services, LLPConstruction- Clearing and Grubbing
Riverwood Villaoe, Section 4
Amount I’aid by Developer S l99,090.00Less: 119)0 Developer Items 152,147,59 S 46.9324! 5 3,013.65 S 49.95606
Jones & Carter, Inc.Engineering - Clearing and Grubbing
Land Acqttisilion Costs for Riversvood Village Detetttiott I’ond (I)Riversvood Village Lift Statittt No. 3EngineeringWriter rtnd Wastewater Impact Fees (tm the C’iy of Richmond
Total District Items
TOTAL CONSTRUCTION COSTS
NON-CONSTRUCTION COSTS
RI1IhIIIUIISAIILE 1(1RIVI1RWOOI)
t.ANI), tIC ANt)INDEPENDENT lANKAl At GUST 20, 202))
5 46,9421.225,538
312,61149,717
$ 1,644.81)8
$ 12.597636,389
76,758611,640
$ 1.337,384
5 2,982.192
177,7)1315,188)
5 192.7)13
5 3.174,895
$
$ - $
$ - $
$ - $
$ - $
1)6625 $73.3)8)
$ 46.9421.235,538
312,61149.717
$ 1.644,81)8
$ 12,597636,389
76,758611,641)
$ 1,337,384
$ 2,982,192
$ 96,625 573,300
VARIANCEOVER
(UNDER)EStIMATE
0005100051
-1.76%000%
24.18%((00%6.68%
16.5(1%
(1.1(11%0(1)1%
0.0(1%3.11%
-75.1)0%0.11(1%((.1)0%0.00%0.0)1%00(1%
- 1(10.0(1%
ACtUAl.OVER
(UNDER)EStIMAtE
S
(5,6)13)
5 (5.603)
5 2,453
4.80686,6)16
5 93.865
5 88,262
5,352(45,000)
(48,614)
5 (88,262)
S
Schedule HPage I of
47
Amendment to Statement of Directors Furnishing Information
Required by Section 49.455(b), Texas Water Code, as Amended
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
Whereas, the governing body of Fort Bend County Municipal Utility District No.
19 has heretofore filed with the County Clerk of the County (or Counties) in which said District
is located a Statement of Directors Furnishing Information Required by Section 49.455(b), Texas
Water Code, as amended (hereinafter called the “Statement”).
Whereas, certain changes have recently been made in the information contained in
said Statement, and an amendment should be filed setting forth such changes, as required by
Section 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 the following information is true and correct:
Sections 5 and 9 of said Statement is hereby amended in their entirety and shall
hereafter read as follows:
“Section 5. The aggregate initial principal amount of bonds of the district
payable in whole or part from taxes (excluding refunding bonds and any bonds or portion of
bonds payable solely from revenues received or expected to be received pursuant to a contract
with a governmental entity) that have been previously issued is $6,265,000.”
“Section 9. The particular form of Notice of Purchasers required by Section
49.452 to be furnished by a seller to a purchaser of real property in the District completed with
all required information is as follows:
“FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 19
NOTICE TO PURCHASERS OF REAL PROPERTY
as Required by Section 49.452, Texas Water Code, as Amended
The real property, described below, that you are about to purchase is located in
the Fort Bend County Municipal Utility District No. 19. The District has taxing authority
separate from any other taxing authority, and may, subject to voter approval, issue an unlimited
amount of bonds and levy an unlimited rate of tax in payment of such bonds. As of this date, the
rate of taxes levied by the District on real property located in the District is $1.20 on each $100
of assessed valuation. The total amount of bonds, excluding refunding bonds and any bonds or
portion of bonds issued that are payable solely from revenues received or expected to be received
under a contract with a governmental entity, approved by the voters and which have been or
may, at this date, be issued is $37,395,000, and the aggregate initial principal amount of all
48
93019-002 484468v1
bonds issued for one or more of the specified facilities of the District and payable in whole or in
part from property taxes is $6,265,000.
The District is located in whole or in part in the extraterritorial jurisdiction of the
City of Richmond. By law, a district located in the extraterritorial jurisdiction of a municipality
may be annexed without the consent of the district if the municipality complies with the
procedures and requirements of Chapter 43, Texas Local Government Code, as amended. The
law also provides that, except in very limited circumstances, a municipality may not annex land
in its extraterritorial jurisdiction without the consent of the landowners and/or voters in the area
proposed to be annexed. If all of the area in a district is annexed, the district is dissolved. If the
district and a municipality are parties to a strategic partnership agreement specifying the
procedures for full purpose annexation of all or a portion of the district, the terms of that
agreement will apply concerning annexation.
The purpose of the District is to provide water, sewer, drainage or flood control
facilities and services within the District through the issuance of bonds payable in whole or in
part from property taxes. The cost of these utility facilities is not included in the purchase price
of your property, and these utility facilities are owned or to be owned by the District. The legal
description of the property which you are acquiring is set forth in the Exhibit which is attached
