MINUTESDENTON COUNTY FRESH WATER SUPPLY DISTRICT NO.1-H

BOARD OF DIRECTORS MEETING

August 21, 2015

SPECIAL SHSSION BOARD MEETING

1. Calltoorder:

The Board of Directors of Denton County Fresh Water Supply District No.1-H (the "District") convened, withattorney Ross Martin presiding, at 2540 King Arthur Blvd., Suite 220, Lewisville, Texas 75056, a meeting placeof the District outside the boundaries of the District. Evidence was presented that public notice of such meetinghad been given, as required by law, and the attendance of the Board of Directors was taken. A quorum waspresent for the meeting.

Board Members in Attendance:Patti Brown, Vice PresidentMichael A. Clark, Treasurer/Assistant Secretary

Board Members Absent:Ralph Hunter, President

Staff & Advisors in Attendance:Phil Brosseau, General ManagerRoss Martin, Attorney, Kelly Hart & Hallman LLP

Others in Attendance:Drew Keith, Developer Rep.

John Lessner, Assistant Secretary

Corwin Snow, Secretary

Kristina Clark, Assistant to G. M.

Lori Dever, Developer Rep.

2. Public communications and comments:

Mr. Martin opened the meeting for public communication and comment. However, since no members of thepublic were present Director Clark motioned to close the Public communications and comments section of themeeting. Director Lessner seconded such motion. The votes were 3 Yes, with 0 No. Motion carried.

3. Opening Remarks.

A. Staff Remarks :None.8. Presentations :None.

CONSENT AGENDA

Mr. Martin moved on to the Consent Agenda. After complete discussion and review, Director Clark made amotion to approve the Consent Agenda, excluding the 7/21/15 Minutes. Director Brown seconded such motion.The votes were 3 Yes, with 0 No. Motion carried. Draft copies of which are collectively included in the Board

packet and attached hereto as EXHIBIT "A". The items considered were:

4. Adopt Minutes of the July 21, 2015 Board meeting. Excluded.

5. Approval of the entire General Manager's report, including but not limited to, the Monthly ConstructionActivity Reports, the Monthly Water and Sewer Reports, the Monthly DCAD Tax Collection Report, theMonthly Unaudited Financial Reports, the progress regarding the agenda topic list, and if applicable, theQuarterly Investment Report.

6. Approval of construction pay applications, payment requisitions, change orders, and if applicable, awardrecommendations, bid solicitations, and/or proposals of the Districts' .

ITEMS FOR INDIVIDUAL CONSIDERATION

7. Review proposed final preliminary Facilities Operations and Maintenance Budget for the upcoming fiscalyear 2015/16, discuss proposed Service Rate Order amendments and review of upcoming fiscal year debtservice requirements as relates to budgeting.

Mr. Brosseau updated the Board regarding the final Facilities Operations and Maintenance Budget for theupcoming fiscal year 2015/16. No action was needed.

8. Review Service Rate Order and consider changes as it relates to budgeting, and take any and all necessaryaction.

Mr. Brosseau did not recommend any changes to the current Service Rate Order.

9. Review tax rate recommendations and approve Water District Notice of Public Hearing on Tax Rate andauthorize publication of said notice.

After complete discussion and review, Director Brown made a motion to approve the Water District Notice ofPublic Hearing on Tax Rate and authorize publication of said notice. Director Lessner seconded such motion.The votes were 3 Yes, with 0 No. Motion carried

10. Consider and Adopt Order Approving Form of Amended 2015 Joint Utility Contract with the City ofLewisville and Denton County Fresh Water Supply District No. 1 -A.

After discussion and review, Director Lessner motioned to Adopt Order Approving Form of Amended 2015 JointUtility Contract. Director Clark seconded such motion. The votes were 3 Yes, with 0 No. Motion Carried.

11. Consider and adopt Order Approving Form of Amended 2015 Joint Road Contract with the City of Lewisvilleand Denton County Fresh Water Supply District No.1-A.

After discussion and review, Director Clark motioned to Adopt Order Approving Form of Amended 2015 JointRoad Contract. Director Lessner seconded such motion. The votes were 3 Yes, with 0 No. Motion Carried.

12. Review and approve form of Joint Election Agreement and Contract for Election Services with the DentonCounty Elections Administrator.

After discussion and review, Director Lessner motioned to approve form of Joint Election Agreement andContract for Election Services with the Denton County Elections Administrator. Director Clark seconded suchmotion. The votes were 3 Yes, with 0 No. Motion Carried.

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13. Order Approving Engineer's Reports and Calling Election to Approve Amended 2015 Joint Utility Contractand Amended 2015 Joint Road Contract and to Authorize the Imposition of an Annual Tax on all TaxableProperty within the Boundaries of the District, Unlimited in Rate or Amount, Sufficient to Make Paymentsunder such Contracts.

After discussion and review, Director Lessner motioned to approve the Order Approving Engineer's Reports andCalling Election to Approve Amended 2015 Joint Utility Contract and Amended 2015 Joint Road Contract andto Authorize the Imposition of an Annual Tax on all Taxable Property within the Boundaries of the District,Unlimited in Rate or Amount, Sufficient to Make Payments under such Contracts. Director Brown seconded suchmotion. The votes were 3 Yes, with 0 No. Motion Carried.

14. Review and approve Order Approving Engineer's Reports and Calling Bond Election, Refunding BondElection, Road Bond Election and Road Refunding Bond Election.

After discussion and review, Director Clark motioned to approve Order Approving Engineer's Reports andCalling Bond Election, Refunding Bond Election, Road Bond Election and Road Refunding Bond Election.Director Brown seconded such motion. The votes were 3 Yes, with 0 No. Motion Carried.

15. Review and consider items to add to the next Board agenda.

a) Tax hearing;b) Contract tax budget;c) July 21, 2015 Minutes; andd) Contract tax budget.

16. Adjournment.

Director Brown motioned to adjourn the meeting. Director Lessner seconded such motion. The votes were 3Yes, with 0 No. Motion Carried. The meeting was adjourned.

Approved and adopted this 22nd day of September 2015.

(DISTRICT SEAL)

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Denton County Fresh Water Supply District No.1-H