MINUTES FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 151

July 18, 2018

The Board of Directors (the ''Board'') of Fort Bend County Municipal Utility District No. 151 (the ''District'') met in regular session, open to the public, on the 18th day of July, 2018, at the offices of Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2400, Houston, Texas, outside the boundaries of the District, and the roll was called of the members of the Board:

Keith Gier Vacant Sean R. Fitzsimmons Louis James Kara Morrison

President Vice President Secretary Assistant Secretary Assistant Vice President

and all of the above were present, thus constituting a quorum.

Also present at the meeting were Patrick Flores, member of the public; Chris Jackson, Alan Stobbe, Richard Stiles, William French, Thomas Hughes, and Nathan Shipley, residents of the District; Simon VanDyk and Michael Willett of Touchstone District Services (''Touchstone''); Josh Wailes of Mike Stone Associates, Inc. (''MSA''); Elizabeth Reeves of Inframark Water & Infrastructure Services (''Inframark''); Esther Flores of Tax Tech, Inc.; Cheryl Rogers and Robert Dazey of Jones & Carter, Inc. (''J&C''); Mary Lutz and Wilbert Ticzon of McLennan & Associates, L.P. (''M&A''); and Whitney Higgins and Jennifer Ramirez of Allen Boone Humphries Robinson LLP ('' ABHR'').

COMMENTS FROM THE PUBLIC

There were no comments from the public.

CONSENT AGENDA

Director Gier offered Board members the opportunity to remove items from the consent agenda for individual discussion. After discussion, Director Gier moved to approve all items on the consent agenda, with the exception of item d. Director Fitzsimmons seconded the motion, which passed by unanimous vote. Copies of all documents approved as part of the consent agenda are attached.

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ITEMS REMOVED FROM CONSENT AGENDA

FINANCIAL AND BOOKKEEPING MATTERS (CONT'D)

Ms. Lutz requested approval of handwritten check no. 5739 and the addition of check no. 5796. After review and discussion, Director Fitzsimmons moved to approve the bookkeeper's report, including handwritten check no. 5739 and the addition of check no. 5796. Director Gier seconded the motion, which passed by unanimous vote.

APPOINTMENT OF NEW DIRECTOR

The Board discussed the appointment of a new director to fill the vacancy on the Board and reviewed correspondence received from residents interested in filling the vacancy, copies of which are attached.

Mr. Shipley introduced himself to the Board and reviewed his qualifications and a resume, a copy of which is attached.

Mr. Hughes introduced himself to the Board and reviewed his qualifications and a resume, a copy of which is attached.

Mr. French introduced himself to the Board and reviewed his qualifications and a resume, a copy of which is attached.

Mr. Stiles introduced himself to the Board and reviewed his qualifications and a resume, a copy of which is attached.

Mr. Stobbe introduced himself to the Board and reviewed his qualifications. Director James requested Mr. Stobbe provide a resume for the Board's review.

After further review and discussion, Director Gier moved to (1) table the appointment of a new director; and (2) authorize Director Fitzsimmons to draft a website update regarding the vacancy on the Board. Director James seconded the motion, which passed by unanimous vote.

REVIEW PROPOSALS FOR MESSAGING AND COMMUNICATION SERVICES, AND AUTHORIZE APPROPRIATE ACTION IF NECESSARY

Mr. VanDyk presented and reviewed a proposal and handout from Touchstone for messaging and communication services, copies of which are attached, and stated that services are provided for a flat fee of $3,400 retainer per month for the first six months, with services after the first six months being charged at an hourly rate. Mr. VanDyk also reviewed a proposal in the amount of $2,500 to create, host, and maintain the District's website. The Board also reviewed the Touchstone Consulting Service Agreement, a copy of which is attached. The Board requested Mr. VanDyk provide

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additional examples of his work. After discussion, Director Fitzsimmons moved to (1) approve the proposal for communication and messaging services and related Consultant Service Agreement with Touchstone District Services and direct that the proposal and agreement be filed appropriately and retained in the District's official records; and (2) table consideration of the proposal for creation, hosting, and maintenance of a District website. Director Morrison seconded the motion, which passed by a vote of 3-1, with Director James voting against.

BUDGET FOR FISCAL YEAR END AUGUST 31, 2019

Ms. Lutz reviewed a draft budget for the.fiscal year ending August 31, 2019, a copy of which is attached to the bookkeeper's report. The Board concurred to table adoption of the budget until next month's meeting pending consultants' review and comment on the draft budget.

DISCUSS ASSOCIATION OF WATER BOARD DIRECTORS (''A WBD'') SUMMER CONFERENCE/ APPROVE REIMBURSEMENT OF ELIGIBLE EXPENSES1 AND AUTHORIZE ATTENDANCE AT WINTER CONFERENCE

The Board discussed the A WBD summer conference and considered approving eligible expenses submitted by Board members who attended, and considered authorizing attendance at the A WBD winter conference. The bookkeeper noted the expenses are in compliance with the District's Travel Reimbursement Guidelines. The Board also considered authorizing any interested director to attend the A WBD summer workshop on August 10, 2018.

After review and discussion, Director James moved to authorize attendance by all interested directors at the A WBD summer workshop. Director Gier seconded the motion, which passed unanimously.

After review and discussion, Director Gier moved to authorize reimbursement of the eligible expenses submitted for the summer conference and authorize attendance by all interested directors at the A WBD winter conference. Director James seconded the motion, which passed unanimously.

DISCUSS CURRENT INSURANCE COVERAGE AND AUTHORIZE ADDITIONAL INSURANCE COVERAGE/ IF APPROPRIATE

The Board concurred to defer this matter until the next regular Board meeting.

ENGINEERING MATTERS

Ms. Rogers distributed and reviewed the engineer's report, a copy of which is attached.

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Ms. Rogers updated the Board on the statu~ of the reclaimed water system Phase II project, as reflected in her report. She reviewed and recommended approval of Pay Estimate No. 6 in the amount of $38,128.75, submitted by Hassell Construction Company, Inc. (''Hassell'').

Ms. Rogers updated the Board on the status of the water plant no. 1 and remote well improvement project, as reflected in her report. She stated she had no action items for the Board's consideration.

Ms. Rogers updated the Board on the status of the wastewater treatment plant access road relocation project, as reflected in her report. She recommended the Board continue to hold the check to DVL Enterprises, LLC (''DVL'') until vegetation has been established.

Ms. Rogers requested the Board approve a right-of-entry agreement with Fort Bend County (''FBC'') for work related to the expansion of Crossover Road.

Ms. Rogers updated the Board on the status of the Lake Firethorne bank improvements and erosion repair project, as reflected in her report. She stated she had no action items for the Board's consideration.

Ms. Rogers updated the Board on the status of the Joan Collier Trace culvert crossing improvement project. She stated she had no action items for the Board's consideration.

Ms. Rogers stated that J&C solicited three proposals received for the South Firethorne Road extreme event swale improvement project, but only one proposal was received in the amount of $40,000, submitted by Bluegrass Maintenance (''Bluegrass''). The Board requested J&C meet with Bluegrass and provide the Board with additional information regarding the design of the landscaping in similar areas around the District.

Ms. Rogers updated the Board on the status of the proposed sound wall along FM 1463 in the Texas Department of Transportation (''TXDOT'') right-of-way. She discussed the sound wall workshop with TXDOT held on June 28, 2018. Discussion ensued.

The Board discussed the previous resident request for installation of a fence at the end of Bradford Ridge Drive leading to the detention pond. Ms. Rogers stated that the District's landscaping and lake maintenance contractors need to use the extreme event overflow swale as an access point. After discussion, the Board concurred to deny the request for installation of a fence at that location.

Ms. Rogers reported that J&C completed the annual water plant inspection and J&C will present the results at the next regularly scheduled meeting.

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In response to a question from the Board regarding the 4-inch irrigation line installed by Bluegrass that needed to be relocated as part of the wastewater treatment plant access road relocation project, Ms. Rogers stated that Bluegrass was unable to provide J&C with a revised as-built certificate. After review and discussion, the Board concurred to take no further action.

Ms. Rogers reviewed information on geographical information system (''GIS'') mapping and gave a demonstration of the GIS mapping. She presented a proposal in the amount of $15,000 for the initial set up and a $600 monthly maintenance fee.

After review and discussion, Director James moved to (1) approve the engineer's report; (2) approve Pay Estimate No. 6 in the amount of $38,128.75, submitted by Hassell; (3) continue to hold the check for DVL; (4) approve the right-of-entry agreement with FBC and direct that the agreement be filed appropriately and retained in the District's official records; (5) approve the proposal in the amount of $15,000 for the initial set up and a $600 monthly maintenance fee for GIS. The motion was seconded by Director Gier and passed by unanimous vote.

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (''TCEQ'') PHASE II SMALL MS4 GENERAL PERMIT

There was no discussion on this matter.

UPDATE ON SURPLUS FUNDS APPLICATION

Ms. Rogers updated the Board on the status of the surplus funds application. She stated the application is still under review by the TCEQ.

PARK AND LANDSCAPE MATTERS

The Board discussed a resident's previous request for the water plant site to be treated for fleas. After discussion, the Board concurred to deny the request due to the area's proximity to the District's water storage facility.

The Board reviewed correspondence from a resident regarding mosquitoes on the nature trails, a copy of which is attached. After discussion, the Board requested Inframark provide a cost estimate for the treatment for the Board's review at the next regular meeting.

MANAGEMENT AND MAINTENANCE OF DISTRICT FACILITIES

Mr. Wailes distributed and reviewed a report from MSA regarding management and maintenance of District fire station facilities and landscaping, a copy of which is attached. He reported on facility inspections conducted during the prior month and the status of previously authorized maintenance and repairs, as reflected in MSA' s report.

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Mr. Wailes stated that the oven at the fire station was repaired for an estimated cost of $635.81. He reported that a replacement unit would cost approximately $5,285.

Mr. Wailes reviewed a proposal in the amount of $1,240.85 to replace the signage at the fire station. He also stated a replacement dedication plaque would cost approximately $3,200.

Mr. Wailes stated that MSA is unable to obtain the master programming code in order to update the access codes at the fire station. He stated that the cost to replace the key pads with standard units is $2,823.94 and the cost to replace the key pads with a fully programmable system is $9,288.11.

Mr. Wailes reviewed information and cost estimates for smart irrigation controls.

The Board reviewed a report from Lake Management Services, L.P. (''LMS'') regarding lake maintenance in the District, a copy of which is attached.

Mr. Wailes stated that LMS reported that a fountain in the northern east lake requires repair or replacement. He stated the cost to replace the entire fountain is $8,248.82 and the cost to replace only the power unit is $3,272.93.

After review and discussion, Director Fitzsimmons moved to (1) approve the report from MSA; (2) approve the proposal in the amount of $1,240.85 for replacement of the fire station sign; (3) take no action on the plaque replacement; (4) approve the proposal in the amount of $2,823.94 to replace the fire station key pads with standard units; and (5) approve the proposal in the amount of $3,272.93 to replace the power unit of the northern east lake fountain. Director Gier seconded the motion, which passed unanimous I y.

OPERATION OF DISTRICT FACILITIES

Ms. Reeves distributed and reviewed the operator's report, a copy of which is attached. She reviewed maintenance and repair work included in Inframark' s monthly invoice and reported on tap installations. Ms. Reeves reviewed the water production report and noted that water accountability for the prior billing cycle was 99.33%.

Ms. Reeves updated the Board on the status of smart meter installation in the District. She stated that there are currently 82 users on the online customer portal.

Ms. Reeves stated that the District will need to amend the Rate Order to revise the tap fees for new meters to reflect the cost of smart meters. The Board concurred to discuss amending the District's Rate Order at the next regular meeting.

The Board reviewed a manhole survey prepared by Director James, a copy of which is attached, related to the previous resident complaint regarding sidewalk lifting

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around certain manhole locations in the District. Ms. Reeves stated it would cost approximately $600 to survey the 15 manholes identified for any District issues.

Ms. Reeves stated that Inframark will hold a tour of District facilities at 7 a.m. on July 19, 2018.

After review and discussion, Director Gier moved to (1) approve the operator's report; and (2) approve the proposal in the amount of $600 for surveying the 15 manholes identified in Director James' report. Director James seconded the motion, which carried by unanimous vote.

HEARING ON TERMINATION OF SERVICE TO DELINQUENT CUSTOMERS AND AUTHORIZE TERMINATION OF SERVICE

Ms. Reeves reviewed the list of delinquent accounts and reported that the persons on the termination list provided to the Directors were mailed written notice prior to this meeting in accordance with the District's Rate Order, notifying them of the opportunity to appear before the Board to explain, contest, or correct the utility service bill and show reason why utility service should not be terminated for reason of nonpayment. The Board conducted a hearing on the termination of utility service to delinquent accounts. After review and discussion, Director Gier moved to authorize termination of service to the delinquent accounts presented if payment is not received prior to scheduled termination since none of the residents on the termination list were either present at the meeting or presented any statement on the matter, in accordance with procedures set forth in the District's Rate Order. Director James seconded the motion, which carried by unanimous vote.

FIRE PROTECTION SERVICES

The Board reviewed a report from the City of Katy Fire Department on fire protection services, a copy of which is attached.

The Board requested ABHR coordinate a meeting with the City of Katy regarding potential reimbursement for calls responded to as the primary response unit as opposed to a call responded to in a mutual aid capacity.

REPORTS FROM DIRECTORS AND DISTRICT CONSULTANTS REGARDING CORRESPONDENCE AND/OR REPORTS RECEIVED DURING THE MONTH AND EVENTS AND ACTIVITIES ATTENDED DURING THE MONTH

Ms. Ramirez reported that the Rotary Club Triathlon has moved to Cane Island and thus the previously approved Agreement for Use of Facilities was not executed by the Rotary Club and is no longer needed.

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DISCUSS MEETING SCHEDULE

The Board considered scheduling an in-District meeting in the month of August. After review and discussion, the Board concurred to schedule a special meeting on either August 7 or 8, 2018, depending on location availability.

CONVENE IN EXECUTIVE SESSION PURSUANT TO SECTION 551.071, TEXAS GOVERNMENT CODE, TO CONDUCT A PRIVATE CONSULTATION WITH

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ATTORNEY TO DISCUSS PENDING OR CONTEMPLATED LITIGATION, OR A " ; ;

SETTLEMENT OFFER

The Board did not convene in Executive Session.

There being no further business to come before the Board, the meeting was adjourned.

Secretary, Board of Directors (SEAL)

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LIST OF ATTACHMENTS TO MINUTES Minutes

Page

Bookkeeper's report ......................................... ....................................................................... 1 Tax assessor/ collector's report ............................................................................................. 1 Builder inspection program and mowing/ maintenance report ...................................... 1 Correspondence from residents interested in Board vacancy .......................................... 2 Mr. Shipley's resume .............................................................................................................. 2 Mr. Hughes' resume ............................................................................................................... 2 Mr. French's resume .................................................. ............................................................. 2 Mr. Stiles' resume .................................................................................................................... 2 Proposal and handout from Touchstone District Services ............................................... 2 Touchstone Consul ting Service Agreement ........................................................................ 2 Engineer's report ................................................................ ..................................................... 3 Correspondence from a resident regarding mosquitoes ................................................... 5 Report on management and maintenance of District facilities ........................................ 5 Report regarding lake maintenance ..................................................................................... 6 Op er a tor's report .................... ................................................................................................. 6 Manhole survey prepared by Director James ..................................................................... 6 Report from the City of Katy Fire Department ................................................................... 7

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