AGUA SPECIAL UTILITY DISTRICTSpecial Meeting of the Board of Directors

Agua SUD Administration Building3120 North Abram Road

Palmview, Texas

6:00 p.m., November 27,2017

MINUTES OF SPECIAL MEETING

1. The meeting was called to order by Mr. Roger Hernandez III, at 6:00 p.m., November 27,2017,at which time Mr. Hernandez acknowledged the presence of the following Elected Membersof the Board constituting a quorum of the Agua SUD:

Directors Present:Mr. Rogelio Hernandez, IIIMr. Homer TijerinaMr. Lloyd LoyaMr. Esequiel Ortiz, Jr.Mr. Ricardo OchoaMr. Ivan Sandoval

Directors Absent:Mr. Cesar Rodriguez, Jr.

A quorum of the members of the Agua SUD being present, the meeting was duly convened.Invocation was presented by Mr. Dagoberto Soto.

2. Under the Consent Agenda the Board of Directors approved items a and b. The motion madeby Mr. Lloyd Loya and seconded by Mr. Ivan Sandoval and was approved 4-1, with a nay byMr. Homer Tijerina.

a. The Board of Directors approved the purchase of a Vermeer VPT300 Piercing Tool3" Mole (Bore Head).

b. The Board of Directors authorized Interim General Manager to interview and retainGovernment Relations Consultant.

3. The Board of Directors approved interlocal agreement with City of Sullivan for El Pinto Roadand authorize legal to finalize quantities, actual costs not to exceed the proposal from the city.The motion was made by Mr. Lloyd Loya and seconded by Mr. Ivan Sandoval, and wasunanimously approved by the Board.

4. The Board of Directors tabled the proposal form Consultant Herman Trevino on installing,implementing and training of reporting software until General Manager position is fulfilled.

The motion was made by Mr. Esequiel Ortiz, Jr. and seconded by Mr. Ivan Sandoval and wasunanimously approved by the Board.

5. The Board of Directors approved the preparation fee agreement with Border Pacific Rail RoadCo. for waterline crossing. The motion was made by Mr. Homer Tijerina and seconded by Mr.Ricardo Ochoa and was unanimously approved by the Board.

6. The Board of Directors approved selection of Saenz Brothers from quotes for the La HomaRoad Project on water services, waterline and steel casing extension improvements asrecommended by Mr. Eddie Saenz, Agua SUD Engineer on Retainer. The motion made by Mr.Esequiel Ortiz, Jr. and seconded by Mr. Lloyd Loya and was approved 4-1, with a nay by Mr.Homer Tijerina.

7. The Board of Directors approved the selection of Salazar Construction from quotes for theWescan Lane Waterline Relocation Project as recommended by Mr. Saenz, Agua SUDEngineer on Retainer. The motion was made by Mr. Esequiel Ortiz, Jr. and seconded by Mr.Homer Tijerina and was approved 4-1, with a nay by Mr. Lloyd Loya.

8. The Board of Directors took no action on a variance of a 4" water service base fee (firesprinkler service) for Faith Fellowship Church.

9. The Board of Directors authorized management to provide 90 day notice to servicing agent ofrecord for Employee health insurance plan and all voluntary ancillary products. The motionwas made by Mr. Homer Tijerina and seconded by Mr. Ricardo Ochoa and was unanimouslyapproved by the Board.

10. The Board of Directors approved to review and update the Public Funds Investment Policy.The motion was made by Mr. Homer Tijerina and seconded by Mr. Esequiel Ortiz, Jr. and wasunanimously approved by the Board.

The Board of Directors made a motion to remove Item 11 from being tabled. The motion was mademy Mr. Esequiel Ortiz, Jr. and seconded by Mr. Ivan Sandoval and was unanimously approved bythe Board.

11. The Board of Directors took no action for a Meter Pilot Study by Aguaworks.

The Board of Directors made a motion to remove Item 12 from being tabled. The motion was madeby Mr. Homer Tijerina and seconded by Mr. Ricardo Ochoa and was unanimously approved bythe Board.

12. The Board of Directors took no action on L&G Concrete Construction change order # 1 relatedto Palmview Wastewater Collection System Phase, Group B&F (Project 1) as recommendedby S&B Infrastructure, Project Engineer.

13. The Board of Directors discussed the East EDAP Palmview sewer project matters includingthe following; a. update on meeting with Texas Water Development Board. Mr. Eddie Saenzand Milo Salinas provided an update on the lift stations, and main lift station along withpending easements, and advertisement for request of proposals for professional services.

14. The Board recessed into an Executive (closed) meeting at 7:03 p.m. under Texas Gov. CodeSection 551.001 Consultation with Attorney 551.072 Regarding Real Property, 551.073Prospective Gift, 551.074 Personnel Matters and 551.076 Security. The motion was made byMr. Lloyd Loya and seconded by Mr. Ricardo Ochoa and was unanimously approved by theBoard.

a. Strategic Public Affairs Consultant Agreement

b. Fernando Gonzalez Subdivision Fees Review

At 7:34 p.m., The Board moved to reconvene in open session and no action was taken in executivesession. The motion was made by Mr. Homer Tijerina and seconded by Mr. Ricardo Ochoa andwas approved by 4-1 with a nay by Mr. Lloyd Loya.

15. The Board of Directors took the following action in open session regarding item(s) discussedin executive session:

a. The Board of Directors authorized Legal Counsel to proceed as discussed in executivesession for the Strategic Public Affairs Consultant Agreement. The motion was madeby Mr. Ivan Sandoval and seconded by Mr. Homer Tijerina and was unanimouslyapproved by the Board.

b. The Board of Directors authorized Legal Counsel to proceed as discussed in executivesession the Fernando Gonzalez Subdivision Fees Review. The Motion was made by Mr.Ivan Sandoval and seconded by Mr. Ricardo Ochoa and was unanimously approved bythe Board.

16. Public Comments: None received.

At 7:35 p.m., Mr. Homer Tijerina moved to adjournment. Motion was seconded by Mr. EsequielOrtiz, Jr. and was approved by 4-1, with a nay by Mr. Lloyd Loya.

Attested by: