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HomeMy WebLinkAbout02/15/2018 - Regular Minutes - Rock Prairie Management District No. 2 (2)ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 MINUTES OF MEETING OF BOARD OF DIRECTORS February 15,2018 The Board of Directors (the "Board")of Rock Prairie Management District No.2 (the "District")met in special session,open to the public on February 15,2018,at 4121 State Highway 6 South,College Station,Brazos County,Texas 77845,in accordance with the duly posted notice of meeting,and the roll was called of the duly constituted members of said Board of Directors,as follows: Uri Geva —President Hays Glover —Vice President Kamal Ariss —Assistant Vice President Jonathan Stark —Secretary Randall G.Rother —Assistant Secretary and all of said persons were present,thus constituting a quorum. Also present were James Murr of College Station Town Center,Inc.("CSTC");Taylor Watson of Municipal Accounts 4 Consulting,L.P.("MAC");Avik Bonnerjee of BRA Municipal Tax Service,LLC ("BRA");Mark Hodges of EHRA Engineering ("EHRA");Dave Coleman of the City of College Station;and Christina Cole of Schwartz,Page k Harding,L.L.P. (n SPHn) The President called the meeting to order and declared same open for such business as might properly come before it. APPROVAL OF MINUTES As the first order of business,the Board considered approval of the minutes of its meeting held on December 14,2017.After review and discussion,Director Geva moved that the minutes for said Board meeting be approved,as written.Director Rother seconded said motion, which unanimously carried. BOOKKEEPING REPORT Mr.Watson presented to and reviewed with the Board a Bookkeeping Report,a copy of which report is attached hereto as Exhibit A,including checks presented for payment.Following discussion,Director Geva moved that said Bookkeeping Report be approved and that the checks identified in the report be approved for payment.Director Ariss seconded the motion,which unanimously carried.Mr.Watson noted that an amended budget will be prepared and presented for the Board's next meeting to reflect the maintenance tax revenue to be received during the current fiscal year. ADOPTION OF RESOLUTION ADOPTING LIST OF QUALIFIED BROKERS AUTHORIZED TO ENGAGE IN INVESTMENT TRANSACTIONS WITH DISTRICT The Board considered adopting a list of qualified brokers authorized to engage in investment transactions with the District.Ms.Cole presented and reviewed with the Board the attached Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District,and a list of financial institutions,brokers and dealers attached thereto,together with a comparison of the list submitted to the list previously adopted by the Board,copies of which are attached hereto as Exhibit B.Ms.Cole further noted that the broker list presented is a list of potential institutions with which the District may engage in investment transactions compiled with the input of the District's Investment Officer,but it is ultimately the Board's decision as to where the District's funds are actually placed.After discussion,Director Geva moved that:(i)the attached Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District be approved by the Board and the District, as discussed,and (ii)that the President and Secretary be authorized to execute same.Director Glover seconded said motion,which unanimously carried. PUBLIC HEARING REGARDING ADOPTION OF THE DISTRICT'S 2017 TAX RATE AND LEVY OF THE DISTRICT'S 2017 TAX RATE AND ADOPTION OF AN ORDER IN CONNECTION THEREWITH The Board conducted a hearing regarding the imposition of a proposed maintenance tax rate for 2017.Mr.Bonnerjee confirmed that notice of this hearing was mailed to each owner of taxable property in the District,at the address shown on the most recently certified tax roll of the District,at least ten days before the date of this meeting,as provided by law.It was noted that no taxpayers appeared at the hearing.Upon motion by Director Glover,seconded by Director Geva and unanimously carried,the hearing was closed. The Board then discussed the setting of the 2017 tax rate.After discussion on the matter, Director Glover moved that:(i)the Board adopt the tax rate as proposed at the District's October 9,2017,meeting and as reflected in the notice mailed by BOA;(ii)the Board levy a 2017 maintenance tax rate of $0.50 per $100 of valuation;(iii)the Order Levying Taxes attached hereto as Exhibit C be adopted in connection therewith and that the President be authorized to execute and the Secretary to attest same on behalf of the Board and the District,and (iv)SPH be authorized to provide the City of College Station,Texas,with notice of the adoption of such tax rate in accordance with the City's ordinance consenting to the creation of the District.Director Geva seconded said motion,which carried unanimously. AMENDMENT TO THE DISTRICT INFORMATION FORM RELATIVE TO THE DISTRICT'S 2017 TAX RATE Ms.Cole presented and discussed with the Board an Amendment to the District Information Form relative to the District's 2017 tax rate.After discussion regarding said Form, Director Rother moved that the Amendment to the District Information Form be approved and 483555 -2- that the Board members present be authorized to execute same on behalf of the Board and the District.Director Geva seconded said motion,which carried unanimously. RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION Ms.Cole outlined for the Board the various tax exemptions available for the District, including the exemptions provided for by Article VIII,Section 1-b of the Texas Constitution,and Section 11.13of the Tax Code,as amended.She advised that under said provisions,the District may provide for the exemption of up to 20%(but not less than $5,000,if granted)of the market value of residential homestead improvements for the year 2018,and the District may also exempt residential homesteads of persons who are under a disability for purposes of payment of disability insurance benefits under the Federal Old Age,Survivors and Disability Insurance Act, or its successor,or persons sixty-five years of age or older from ad valorem taxes levied by the District during the calendar year 2018,and,if any such exemptions are granted,they must be for not less than $3,000 of the market value of such homesteads.After further discussion of the matter,Director Ariss moved that the District (a)not grant the general residential homestead exemption,and (b)not grant an exemption for homesteads of persons under a disability or sixty- five years of age or older,and that the Resolution,attached hereto as Exhibit D relative to same be approved and adopted by the Board and the District.Director Geva seconded said motion, which carried unanimously. TAX ASSESSOR/COLLECTOR'S REPORT Mr.Bonnerjee then presented and reviewed with the Board the Tax Assessor-Collector report for the month ending January 31 2018,a copy of which is attached hereto as Exhibit E. After discussion,Director Geva moved that the Tax Assessor-Collector Report be approved. Director Ariss seconded said motion,which carried unanimously. ENGINEERING REPORT Mr.Hodges presented and reviewed with the Board an Engineering Report dated February 2018,a copy of which is attached hereto as Exhibit F. Mr.Hodges reported that four (4)public bids had been received for construction of water, sanitary sewer,drainage and paving facilities for Bird Pond Road (the "Bird Pond Road Project"),with Larry Young Paving ("Larry Young"),submitting the low bid for $5,622,122.94. Mr.Hodges advised the Board that EHRA received the bids on February 14,2018,and will require additional time to evaluate the bids prior to providing its recommendation.Mr.Hodges requested that the Board appoint a committee of Board members to authorize EHRA to award the contract to the recommended qualified low bidder following EHRA's evaluation prior to the next Board meeting.Following discussion,Director Glover moved to authorize Directors Rother and Ariss to concur in the award of a contract for the Bird Pond Project on behalf of the District, upon review of EHRA's official tabulation of bids and final recommendation,subject to SPH's review of the payment and performance bonds and insurance certificate submitted in connection with the contract to determine if the payment and performance bonds and insurance meet the requirements of the bid specifications,the Texas Insurance Code,the rules of the Texas 483555 Commission on Environmental Quality ("TCEQ")and the provisions of the Texas Water Code. The motion was seconded by Director Stark and carried by unanimous vote. Mr.Hodges next reported that EHRA verified the qualifications of Whitestone Civil Construction,LLC ("Whitestone"),the low bidder on construction of the offsite 48-inch sanitary sewer trunldine discussed at the December 14,2017 Board meeting,and the contract was awarded to Whitestone. Mr.Hodges also reported that EHRA verified the qualifications of Greens Prairie Investors,Ltd.("Greens Prairie"),the low bidder on the onsite 8-inch to 12-inch sanitary sewer trunkline project and awarded the contract for such project to Greens Prairie,as discussed at the December 14,2017,Board meeting. Mr.Hodges next requested authorization to design public utilities to serve Lakeway Reserve Phase 101,Phase 102 and Phase 201.Following discussion,Director Glover moved to authorize EHRA to proceed with the design of such public utilities.The motion was seconded by Director Stark and carried by unanimous vote. ANNUAL REVIEW OF SURVEY OF WAGE RATE SCALES The Board next considered the review of an annual survey of prevailing wage rates for construction projects and the adoption of a Resolution in connection therewith.In that regard, Ms.Cole reported that EHRA,the District's consulting engineers,is recommending that the District adopt the revised United States Department of Labor ("DOL")wage rate scales for construction projects for Brazos County,Texas,as permitted under Section 2258.022 of the Government Code.Following discussion,Director Ariss moved that the new DOL wage rate scales for Brazos County,Texas,be adopted as the prevailing wage rate scale for construction project of the District,and that the Resolution Adopting Prevailing Wage Rate Scale for Construction Projects attached hereto as Exhibit G be adopted by the Board.Director Glover seconded said motion,which unanimously carried. DEVELOPER'S REPORT The Board considered the Developer's Report.Mr.Murr provided a brief update on the development within the District.He presented and reviewed with the Board the Preliminary Conceptual Master Plan attached hereto as Exhibit H. FIRST AMENDMENT OF UTILITY DEVELOPMENT AGREEMENTS Ms.Cole reminded the Board that that the District has previously entered into Utility Development Agreements with CSTC for water,sewer and drainage facilities and road facilities relative to 231.97 acres of land within the District.She also reminded the Board that CSTC has sold approximately 111.679 acres to College Station Downtown Residential LLC,and retains ownership to the remaining 120.291 acres of land within the District.Ms.Cole then presented and reviewed the terms and provisions of First Amendment to Utility Development Agreement (Water,Sewer and Drainage Facilities)and First Amendment to Utility Development Agreement 483555 (Recreational Facilities)(collectively,the "First Amendments")which amend each of the respective Utility Development Agreements to redefine the Service Area as the remaining 120.291 acres.Ms.Cole noted that CSTC has filed Texas Ethics Commission ("TEC")Form 1295s and has provided SPH with copies of same.Following review and discussion,Director Geva moved to (i)approve and authorize the President to execute each of such First Amendments on behalf of the Board and District,and (ii)accept TEC Form 1295s submitted by CSTC relative to said First Amendments and authorize SPH to acknowledge the District's receipt of same with the TEC.The motion was seconded by Director Glover and carried by unanimous vote. ATTORNEY'S REPORT The Board considered the Attorney's Report.Ms.Cole advised the Board that she had nothing of a legal nature to discuss with the Board that was not already covered under previous agenda items. REVIEW AND APPROVAL OF PROPOSALS FOR RENEWAL OF DISTRICT INSURANCE COVERAGES Ms.Cole presented for the Board's consideration proposals for renewal of the District's insurance coverages from McDonald 4 Wessendorff Insurance ("MEOW"),as requested by the Board.Ms.Cole noted that MAW has filed TEC Form 1295 and has provided SPH with a copy of same.Following review and discussion,Director Geva moved that the Board (i)accept such proposals,and that the President be authorized to execute same on behalf of the Board and the District,and (ii)accept TEC Form 1295 submitted in connection with such proposals and authorize SPH to acknowledge the District's receipt of same with the TEC.Director Ariss seconded said motion,which unanimously carried.A copy of the accepted proposals is attached hereto as Exhibit I. FUTURE AGENDA ITEMS The Board considered items for placement on future agendas.No specific agenda items, other than routine and ongoing matters were requested to be placed on a future agenda. AD JOURNMENT There being no further business to come before the Board,on motion made by Director Geva,seconded by Director Glover,and unanimously carried,the meeting was adjourned. Se tary 483555 LIST OF ATTACHMENTS Rock Prairie Management District No.2 Minutes of Meeting of February 15,2018 Exhibit A —Bookkeeping Report Exhibit B—Resolution Adopting List of Qualified Brokers Authorized to Engage in Investment Transactions with the District and List of Financial Institutions, Brokers and Dealers Exhibit C —Order Levying Taxes Exhibit D —Resolution Concerning Exemptions From Taxation Exhibit E -Tax Assessor-Collector Report and Delinquent Tax Roll Exhibit F —Engineering Report Exhibit G —Resolution Adopting Prevailing Wage Rate Scale for Construction Projects Exhibit H —Preliminary Conceptual Master Plan Exhibit I—Accepted Proposals for Renewal of District's Insurance from McDonald 2 Wessendorff Insurance 483555 EXHIBIT "A" Rock Prairie Management District No.2 Bookkeeper's Report February 15,2018 1281 Britttnoore Road 'ouston.,Texas 77043 ~Phone:713.623.4539 'ax:713.629.6859 Rock prairie MD No 2-GOF Cash Flow Report -Checking Account As of February 15,2018 Name Memo Amount Balance BALANCE AS OF 12/15/2017 ($20,126.94) Recetpts Interest earned on Checking -December Developer Advance Interest earned on Checking -January Developer Advance Total Receipts 0.37 22,000.00 0.38 19,009.36 41,010.11 Disbursements 1033 Aggieland Title Company 'I 034 88rA Municipal Tax Service 1035 McDonald 8 Wessendorff 1036 Municipal Accounts 8r Consulting,LP 1037 Schwartz,Page 8.Harding Fees Compass Bank Fees Compass Bank Total Disbursements BALANCE AS OF 02/15/2018 Title Costs Tax A.ssessor Fees Annual Insurance Premium Bookkeeping Fees Legal Fees Service Charge —December Service Charge —January (2,300.00) (1,397.87) (3,492.00) (1,050.11) (17,330.18) (0.37) (0.38) (25,570.91) ($4,687.74) COMPASS BANK-PREMIER -PXXXX0276 -3- Rock Prairie MD No.2 -GOF Actual vs.Budget Comparison January 2018 venues January 2018 Actual Budget Over/(Under) June 2017 -January 2018 Actual Budget Over/(Under) Annual Budget 14'1 00 Developer Advance 14380 Other Income .otal Revenues 22,000 22,000 0 0 0 0 22,000 22,000 0 28,000 2 28,002 28,000 0 28,000 62,885 0 62,885 ":xpenditures ]6330 Legal Fees 16430 Bookkeeping Fees 16460 Printiug dr OE6ce Supplies 16470 Filing Fees 16480 Delivery Expense 16520 Postage 16530 Insurance &Surety Bond 16540 Travel Expense 16550 TAC Fees 16560 Miscellaneous Expense 16800 CAD Fees Total Expenditures 4,817 149 102 0 17 1 0 0 513 1,604 0 7@03 4,167 250 0 0 0 1 0 0 500 0 0 4,918 650 (101) 102 0 17 0 0 0 13 1,604 0 2+86 34,563 2,243 1,079 0 59 2 0 359 5,629 2,307 41 46,282 33,333 &000 50 0 20 2 0 0 4,000 300 0 39,705 1,229 243 1,029 0 39 0 0 359 1,629 2,007 41 6,577 50,000 3,000 50 100 20 15 3,400 0 6,000 300 0 62,885 Excess Revenues (Expenditures)$14,797 $17,082 ($2„285)($18,281)($11,705)($6,575)$0 EXHIBIT "B" EXHIBIT "A" LIST OF AUTHORIZED BROKERS Allegiance Bank Amegy Bank,N.A.,a division of ZB N.A. American Bank of Commerce (ABC Bank) Austin Capital Bank SSB Bank of America N.A./Merrill Lynch I Bank of Texas,a division of BOKF,N.A. Bank of the Ozarks Bank of the West BBVA —Compass Bank Beal Bank SSB Blackrock Investments,Inc. BOK Financial Securities,Inc. Branch Bankmg and Trust Company (BB&T) I Business Bank of Texas,N.A. Cadence Bank,N.A. Capital Bank of Texas Capital One N.A. Central Bank Chasewood Bank Citibank N.A./CidgroupP+1 Q '+'T TLTXTt"' JVl4VNJ VVV ILL )Comerica Bank Commercial State Bank I Community Bank of Texas East West Bank Edward Jones Federated Investors Inc. Fidelity Investments First Bank and Trust East Texas I First Citizens Bank First Financial Bank N.A. First National Bank fexas/First Convenience BanktC'+L ~+A +hf +T)LLjV First State Bank Central Texas First Texas Bank I First United Rank Frontier Bank of Texas Frost Bank FTN Financial Green Bank,N.A. Guaranty Bank &Trust,N.A. I Heritage Bank N.A. Herring Bank Hilltop Securities,Inc./First Southwest Asset Management Home Town Bank,N.A. IberiaBank Icon Bank of Texas,N.A. Independent Bank Integrity Bank,SSB International Bank of Commerce (IBC Bank) Inter National Bank I J.P.Morgan Chase &Cn./J.P.Mnrvaii Securities ~$ JPMorgan Chase Bank,N.A. Legacy Texas Bank Lezg Mason,Inc. LOGIC (Local Gov't.Investment Cooperative) Lone Star Bank Lone Star Investment Pool/First Public,LLC Lowery Bank,a division of Huntington State Bank MidSouth Bank N.A. Moody National Bank Morgan Stanley!S;..;t"..B=—..cy NewFirst National Bank Pioneer Bank PlainsCapital Bank Plains State Bank Post Oak Bank Preferred Bank Prosperity Bank Ravmond James Financial Iiic. R Bank RBC Capital Markets/RBC Investments Regions PBank Robert W.Baird &Company,Inc. Santander Bank N.A. SnuthStar Rank SSB Spirit of Texas Bank SSB State Street Bank &Trust Co. Texan Bank Texas Capital Bank N.A. Texas Citi.zens Bank Texas C.L.A.S.S. Texas Exchange Bank Texas First Bank Texas Gulf Bank N.A. Texas Regional Aarik TexPool/TexPool Prime Tex Star Investment Pool The Bank of New York Mellon The Bank of New York Mellon Trust Company,N.A. The Bank of River Oaks The First National Bank of Bastrop The Independent Bankers Bank ()Ti C+r+a 9 1 CT vr Third Coast Bank S.S.B. Trustmark National Bank UBS Financial Services,Inc. UBS Securities LLC. United Bank of El Paso del Norte United Texas Bank Unity National BankTTC13iXTA Wallis State Bank Wells Fargo Advisors Wells Fargo Bank,N.A. Wells Fargo Investments,LLC Wells Fargo Securities,LLC Westbound Bank7.'e"+S+"-WestStar Bank Whitney Bank Woodforest National Bank7:i:+AT+,'D 1 RESOLUTION ADOPTING LIST OF QUALIFIED BROKERS AUTHORIZED TO ENGAGE IN INVESTMENT TRANSACTIONS WITH ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 WHEREAS,Rock Prairie Management District No.2 (the "District")is a body politic and corporate and a governmental agency of the State of Texas,operating under and governed by the provisions of Chapter 3909,Texas Special District Local Laws Code,and Sections 52 and 52-a of Article III and Section 59 of Article XVI of the Texas Constitution;and WHEREAS,Chapter 2256,Texas Government Code,as amended,requires that the Board of Directors of the District annually review,revise and adopt a list of qualified brokers that are authorized to engage in investment transactions with the District; NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE ~AGEMENT DISTRICT NO.2,THAT: Section 1:The Board of Directors of the District hereby adopts the list of financial institutions,brokers and dealers attached hereto as Exhibit "A"as the list of qualified brokers that are authorized to engage in investment transactions with the District. Section 2:The provisions of this Resolution shall be effective as of its date of approval by the Board of Directors and shall remain in effect until modified by action of the Board of Directors,and any resolution heretofore adopted by the Board of Directors adopting a list of qualified brokers that are authorized to engage in investment transactions with the District shall be and is hereby revoked as of the effective date of this Resolution. PASSED AND ADOPTED this 15th day of February,2018. ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 ATTEST: By: President,Board of Directors By: Se+re ary,Board of Directors q Q$I\I l I I IIif]/g w~~~yGEMEflf /// //// ffOI fl1lloii 386303-4 EXHIBIT "A" LIST OF AUTHORIZED BROKERS Allegiance Bank Amegy Bank,N.A.,a division of ZB N.A. American Bank of Commerce (ABC Bank) Austin Capital Bank SSB Bank of America N.A./Merrill Lynch Bank of Texas,a division of BOKF,N.A. Bank of the Ozarks Bank of the West BBVA —Compass Bank Beal Bank SSB Blackrock Investments,Inc. BOK Financial Securities,Inc. Branch Banking and Trust Company (BBAT) Business Bank of Texas,N.A. Cadence Bank,N.A. Capital Bank of Texas Capital One N.A. Central Bank Chasewood Bank Citibank N.A./Citigroup Comerica Bank Commercial State Bank Community Bank of Texas East West Bank Edward Jones Federated Investors Inc. Fidelity Investments First Bank and Trust East Texas First Citizens Bank First Financial Bank N.A. First National Bank texas/First Convenience Bank First State Bank Central Texas First Texas Bank First United Bank Frontier Bank of Texas Frost Bank FTN Financial Green Bank,N.A. Guaranty Bank A Trust,N.A. Heritage Bank,N.A. Herring Bank Hilltop Securities,Inc./First Southwest Asset Management Home Town Bank,N.A. IberiaBank Icon Bank of Texas,N.A. Independent Bank Integrity Bank,SSB International Bank of Commerce (IBC Bank) Inter National Bank J.P.Morgan Chase 4 Co./J.P.Morgan Securities / JPMorgan Chase Bank,N.A. Legacy Texas Bank Legg Mason,Inc. LOGIC (Local Gov't.Investment Cooperative) Lone Star Bank Lone Star Investment Pool/First Public,LLC Lowery Bank,a division of Huntington State Bank MidSouth Bank N.A. Moody National Bank Morgan Stanley NewFirst National Bank Pioneer Bank PlainsCapital Bank Plains State Bank Post Oak Bank Preferred Bank Prosperity Bank Raymond James Financial,Inc. R Bank RBC Capital Markets/RBC Investments Regions Bank Robert W.Baird 4 Company,Inc. Santander Bank,N.A. SouthStar Bank SSB Spirit of Texas Sank SSB State Street Bank 4 Trust Co. Texan Bank Texas Capital Bank N.A. Texas Citizens Bank Texas C.L.A.S.S. Texas Exchange Bank Texas First Bank Texas Gulf Bank N.A. Texas Regional Dank TexPool/TexPool Prime Tex Star Investment Pool The Bank of New York Mellon The Bank of New York Mellon Trust Company,N.A. The Bank of River Oaks The First National Bank of Bastrop The Independent Bankers Bank (TIB) Third Coast Bank S.S.B. Trustmark National Bank UBS Financial Services,Inc. UBS Securities LLC. United Bank of El Paso del Norte United Texas Bank Unity National Bank WalIis State Bank Wells Fargo Advisors Wells Fargo Bank,N.A. Wells Fargo Investments,LLC Wells Fargo Securities,LLC Westbound Bank WestStar Bank Whitney Bank Woodforest National Bank EXHIBIT "C" ORDER LEVYING TAXES WHEREAS,Rock Prairie Management District No.2 (the "District")is authorized to levy a maintenance tax not to exceed $1.00 per each $100 of assessed valuation within the District in order to pay operation,maintenance and administrative expenses;and WHEREAS,it is necessary for the Board of Directors of the District to fix a specific rate of tax to be levied for the tax year 2017,based on the District's tax rolls for 2017,which have been prepared and certified by the Brazos Central Appraisal District.Now,Therefore; BE IT ORDERED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 THAT: Section 1:There is hereby levied an ad valorem maintenance tax of $0.50 on each $100 of assessed valuation of taxable property within the District for the tax year 2017,for the purpose of providing funds for the payment of operation,maintenance and administrative expenses of the District and other purposes as allowed by law. Section 2:The District's tax assessor-collector is hereby authorized to collect the taxes of the District. Section 3:The taxes levied hereby shall become due and payable upon the receipt of the tax bill unless otherwise specifically provided by law and shall be paid on or before the 31st day of March,2018.All taxes not paid before April 1,2018,shall become delinquent on that date, and there shall be added thereto such penalties,interest,court costs,expenses of foreclosure sales,attorneys'ees and other expenses as are provided by law. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] PASSED AND ADOPTED this the 15th day of February,2018. President,Board of Directors ATTEST: Sec~t,Board of Directors Oil'gll t lltfyyi ~~'a Y ~~~~ oo iilltN N~10 478678-2 EXHIBIT "D" RESOLUTION CONCERNING EXEMPTIONS FROM TAXATION WHEREAS,the laws of the State of Texas provide,under certain circumstances,for the exemption of a portion of the value of residence homesteads from ad valorem taxation;and WHEREAS,the Board of Directors of ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 (the "District")has considered the various exemptions which may be granted.Now, Therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 THAT: Section 1:For the tax year 2018,the Board of Directors has considered and has decided not to exempt from ad valorem taxation by the District any portion of the appraised value of residence homesteads of individuals who are under a disability for purposes of payment of disability insurance benefits under Federal Old-Age,Survivors,and Disability Insurance or are sixty-five (65)years of age or older,as authorized by,and in accordance with the provisions of, Article 8,Section 1-b (b),Texas Constitution,as amended,and Section 11.13 of the Tax Code, as amended. Section 2:For the tax year 2018,the Board of Directors has considered and has decided not to adopt a general residential homestead exemption as authorized by Article 8,Section 1- b(e),Texas Constitution,as amended,and Section 11.13of the Tax Code,as amended. Section 3:This Resolution constitutes official action by the Board of Directors of the District concerning the foregoing tax exemptions. PASSED AND ADOPTED this the 15th day of February,2018. ATTEST: President,Board of Directors Seer t,Board of Directors (SEAL) ~qgltlltllPggf~ EST RIG~//// ~~I' ~ ~—~ o+ /////~JI3 0~y$y0/IIIIIIH I ulleo EXHIBIT "E" Honesty I Efficiency I Transparency I Accountability I Continuity MUNICIPAL TAX SERVICE,LLC RQCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE MONTH ENDING January 31,2018 B &A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY,STE 505 HOUSTON,TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 a,r;ig MUNICIPAL TAX SERYICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 1/31/18 RECEIVABLES SUMMARY 2017 Balance Forward Levy at 05/31/1 7 FYE CAD Changes /Uncollectible Outstanding Balance forward Prior Years at 05/31/1 7 FYE CAD Changes /Uncollectible Total Levy to be collected $0.00 $0.00 $0.00 $0.00 0.00 0.00 0.00 Collection prior months (all years) 2017 Taxes Collected net NSF 8 KR Refunds during current month Taxes Collected for Prior Years net NSF 8 KR Refunds during current month $0.00 $0.00 $0.00 0.00 Total Outstanding'alance 0.00 Beginning Balance —Tax AccountTAXACCOUNT Income Taxes Collected current Year Taxes Collected Prior Year Penalties 8 Interest Collection Fee Paid Overpayments NSF or Reversals,Bank Charges (Check Order Charge) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00 0.00 Expenses Ending Balance -Tax Account $0.00 0.00 B k A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY,STE 505 HOUSTON,TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 MUNICIPAL TAX SERVICE„LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 1/31/18 OUTSTANDING TAXES —YEAR TO DATE BALANCE FORWARD CAP TAX @ SUPPLEMENTS & YEAR 10/01/1 7 CORRECTIONS UNCOLLECTIBLE 2017 $0.00 $0.00 COLLECTIONS OUTSTANDING COLLECTIONS TAXES PERCENTAGE $0.00 0.00% $0.00 EXEMPTIONS 8 TAX RATES TAX HOMESTEAD OVER 65/ YEAR EXEMPTION DISABLED 2017 0.00%0 M &0 RATE 0.00000 DEBT SERVICE CONTRACT TAX RATE RATE TOTAL RATE 0.00000 0.00000 0.00000 DISTRICT VALUES TAX LAND & YEAR IMPROVEMENTS 2017 4,069,643 AG NET 27,010 PERSONAL PROPERTY EXEMPTIONS TOTAL VALUE SR KR 104,096 3,992,557 CR CR B Bc A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY,STE 505 HOUSTON,TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 rg MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 1/31/18 PROFIT &LOSS BEGINNING BALANCE INCOME 10%Rendition Penalty Bad Check Charges Court Costs/Abstract &Filing Fees Collection Fee Earned Interest Overpayments Penalty &Interest Taxes Collected Total Income CURRENT MONTH 1/01/18 -1/31/1 8 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 FISCAL YEAR 6/01/1 7 -01/31/18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 EXPENSES Audit/Records Attorney —General Tax Matters Bank Charges Bond Premium CAD Fees Certificate of Value Copies,Faxes Correction Roll Refunds Correction Roll Rendition Refunds Continuing Disclosure Court Affidavits Delinquent Tax Attorney Assistance Delinquent Tax Attorney Fee House Bill 1597/Installment Tracking Unclaimed Property Report Legal Notices Mailing &Handling Meeting Travel &Mileage NSF or Return Item Fees Overpayment Refund Public Hearing Records Retention Roll Update &Processing Supplies Tax Assessor Collector Fee —AB Tax Rate Preparation &Calculation Transfer to Contract Tax Transfer to Maintenance &Operating Transfer to Debt Service ENDING BALANCE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 B k A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY,STE 505 HOUSTON,TX 77040 MAIN 713-900-2680 TOLL FREE 1-888-598-7409 +I',~ggk~ MUNICIPAL TAX SERVICE,LLC ROCK PRAIRIE MANAGEMENT DISTRICT 2 FOR THE PERIOD ENDING 1/31/18 2017 YEAR TO YEAR COMPARISON 2016 VARIANCE October $0.00 P PP%$0.00 0.00%0.00% November $0.00 P PP%$0.00 0.00%P PP% December $0.00 P PP%$0.00 0.00%0.00% January $0.00 0.00%$0.00 0.00%0.00% February $0.00 0.00%$0.00 0.00%0.00% March $0.00 0.00%$0.00 P PP%0.00% April $0.00 0.00%$0.00 P PP%P PP% May $0.00 0.00%$0.00 0.00%0.00% June $0.00 0.00%$0.00 P PP%0.00% July $0.00 0.00%$0.00 0.00%P PP% August $0.00 0 00%,$0.00 0.00%P PP% September $0.00 P PP%I I $0.00 0.00%0.00% 2017 $0.00 MONTHLY COLLECTIONS B k A MUNICIPAL TAX SERVICE,LLC 13333 NORTHWEST FREEWAY,STE 505 HOUSTON,TX 77040 ~713-900-2680 TOLL FREE 1-888-598-7409 STATE OF TEXAS COUNTY OF BRAZOS Avik Bonnerjee,being duly sworn,says that he is the Tax Assessor-Collector for the above named District and the foregoing contains a true and correct report accounting for all taxes collected for said District during the month therein stated. Avik Bonnerjee,RTA SWORN TO AND SUBSCRIBED BEFORE ME,this 1"day of February 2018. REBECCA LYNN BREWER Notary ID Ir 1258B1'9 My Commission Expires hharch 1,2020 Rebecca Lynn Brewer Notary Public,State of Texas Notary ID ¹1258819 My Commission Expires March 1,2020 Jurisdiction:MD2 Account No/Name/Address Delinquent Tax Roll As of 1/31/2018 Cad No/Property Descr. Page 1 2/8/2018 7:45 AM Jurisdiction Totals Year Tax Levv 2017 0.00 Base Taxes Due Penalties Due Del,P&l Due Attv Fee Due Escrow Amt Total Due Qgggf %Collected 0.00 0.00 0.00 0.00 0.00 0.00 0 100.00% EXHIBIT "F" EHRA TBPE No.F-726 TBPLS No.10092300 9.Kngiiieering Report,Including: a.Authorize the design,of facilities within the District,including; Board ActIton;Authorize design of jLakeway Reserve Phase 101,Phase 102 and Phase 201(single family residential) b.Acceptance of site and/or easement conveyances for facilities constructed or to be constructed for the District,including Board Action:None c.Status of design and authorize advertisement for bids for construction and/or award of construction contracts or concurrence in the award of construction contracts including the approval of any pay estimates,change orders and authorize acceptance of Texas Ethics Commissions ("TEC")Form 1295,including 1.Award construction contract for construction of water,sewer drainage and paving facilities for Bird Pond Road;and We reviewed and tabulated the four (4)bids received on Wednesday,February 14,2018,for the above-referenced project;and have determined the low bidder to be Larry Young Paving.,in the amount of $5,622,122.94. EHRA needs more time to evaluate the bids since they were received one (1) day before the Board meeting..EHRA recommends the Board appoint a Committee of Board members or one Board member to award construction contract to the recommended qualified low bidder between Board meetings based in EHRAs recommendation after the bids have been evaluated. Board Action:Appoint a Committee of Board members or one (1)Board member to approve the award constmction con~et to the recommended qualified low bidder between Board meetings based in EHRAs commendation after the bids have been evaluated. I ~~~I i i ='I'aI ~=~I ii ~Il-'l lllddllsl'&I '8 ~7 ii~11i ~I =II '.cd ,:i-."a-.:e.i~klsz.Jl l'iilcvf &K'"i's llfitiu r ."i:rishi,.„,,„,:.:~~~ Harris County Municipal Utility District No.449 February2018 Page 2 2.Award construction contract for construction of offsite sanitary sewer trunk line;and Contractor Contract Days Approved Extensions Contract Completion Date Whitestone Civil Construction 180 days 0 clays Contract Bid Amount Total Contract Amount $2,078,962.00 $2,078,962.00 Date Approved Comment Notice to Proceed Issued Total Pay Requests Remaining on Contract $0.00 $2,078,962.00 100.00%of Contract Remaining Award of the project was approved at the last Board Meeting.Contacts are being executed by the Contractor and Developer Board Action:None 3.Award construction contract for construction of onsite sanitary sewer trunk line;and Contractor Greens Prairie Investors LTD Contract Days 120 days Approved Extensions 0 days Contract Completion Date Contract Bid Amount Total Contract Amount $322,584.00 $322,584.00 Date Anproved Comment Notice to Proceed Issued Total Pay Requests $0.00 Remaining on Contract.$322,584.00 100.00%of Contract Remaining Award of the project was approved at the last Board Meeting.Contacts are being executed by the Contractor and Developer Contacts are being executed by the Contractor and Developer Board Action:None 4.Adoption of a plan relative to future proposed recreational facilities and the adoption of Resolution Adopting a Plan for Recreational Facilities. This will be tabled till next Board meeting.. KKGienthp$%151-068-00NDocshReportshFebruary 2018.doc 10555 Westoffice Drive I Houston,Texas 77042 t 713.784.4500 I f 713.784.4577 I www.EHRAinc.corn EHRA EXHIBIT "G" RESOLUTION ADOPTING PREVAILING WAGE RATE SCALE FOR CONSTRUCTION PROJECTS WHEREAS,Rock Prairie Management District No.2 (the "District")has been heretofore duly created and organized;and WHEREAS,Chapter 2258,Texas Government Code ("Chapter 2258"),requires the District to determine the general prevailing rate of per diem wages for each craft or type of worker in the locality in which a construction project for the District is to be performed and the general prevailing rate of per diem wages for legal holiday and overtime work;and WHEREAS,Chapter 2258 provides that a worker employed on a construction project by or on behalf of the District shall be paid not less than said general prevailing rates,as applicable; and WHEREAS,Chapter 2258 provides that a contractor which is awarded a construction contract for the District,or a subcontractor of the contractor,shall pay not less than the rates determined as set forth above to a worker employed in the execution of such contract for a construction project;and WHEREAS,Chapter 2258 applies to construction projects paid for in whole or in part from funds of the District,regardless of whether the work is done under the District's supervision or direction;and WHEREAS,the Board of Directors of the District (the "Board")has determined the general prevailing rate of per diem wages by using the prevailing wage rate as determined by the United States Department of Labor in accordance with the Davis-Bacon Act (40U.S.C. Section 276a et seq.),as amended,and has determined to adopt a Prevailing Wage Rate Scale for Construction Projects for the District.Now,Therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROCK PRAIRIE MANAGEMENT DISTRICT NO.2 THAT: Section 1:The Board has determined the general prevailing rate of per diem wages for each craft or type of worker in the locality in which a construction project for the District is to be performed and the general prevailing rate of per diem wages for legal holiday and overtime work by using the prevailing wage rate as determined by the United States Department of Labor in accordance with the Davis-Bacon Act (40 U.S.C.Section 276a et seq.),as amended,and further, the Board has determined that the wage rates in the Prevailing Wage Rate Scale for Construction Projects (comprised of one or more United States Department of Labor wage determination scales for each project type)attached hereto as Exhibit A are the general prevailing wage rates for construction projects by or on behalf of the District. Section 2:The District hereby adopts the Prevailing Wage Rate Scale for Construction Projects attached hereto as Exhibit A,which establishes minimum rates for each project type that shall be used by all contractors and their subcontractors on construction projects by or on behalf of the District. Section 3:A contractor or subcontractor on a construction project by or on behalf of the District shall maintain records as required by Chapter 2258 and shall be subject to the penalties, forfeitures,and withholding of money for failure to comply with this Resolution and/or pending a final determination of an alleged violation,as provided in Chapter 2258. Section 4:The District engineer is hereby directed and authorized to specify the wage rates adopted hereunder for each project type in all specifications for bids and contracts for construction projects by or on behalf of the District. Section 5:Any prior Resolution Adopting Prevailing Wage Rate Scale for Construction Projects previously adopted by the Board is hereby revoked. PASSED and ADOPTED this 15th day of February,2018. ATTEST: Sectary,Board of Directors 00gt t1|fllll/l/g.M Qfp /// ~«U r i Ct:~ Q « "//// '///Itlitllniee President,Board of Directors 456038 2 EXHIBIT A PREVAILING WAGE RATE SCALE FOR CONSTRUCTION PROJECTS 456038 2 United States Department of Labor Wage Determination Scale TX 16 Construction Type:Heavy and Highway County:Brazos TX16 General Deci sion Number:TX180016 01/05/2018 TX16 Superseded General Decision Number:TX20170016 State:Texas Construction Types:Heavy and Highway Counties:Atascosa,Bandera,Bastrop,Bell,Bexar,Brazos, Burleson,Caldwell,Comal,Coryell,Guadalupe,Hays,Kendall, Lampasas,McLennan,Medina,Robertson,Travi s,Williamson and Wilson Counties in Texas. HEAVY (excluding tunnels and dams,not to be used for work on Sewage or Water Treatment Plants or Lift /Pump Stations in Bell,Coryell,MCClennon and Williamson Counties)and HIGHWAY Construction Projects Note:Under Executive Order (EO)13658,an hourly minimum wageof$10.35 for calendar year 2018 applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued)on or after january 1,2015.If this contract is covered by the EO,the contractor must payallworkersinanyclassificationlistedonthiswage determination at least $10.35 per hour (or the applicable wage rate listed on this wage determination,if it is higher)for all hours spent performing on the contract in calendar year 2018.The EO minimum wage rate will be adjusted annually. Please note that this EO applies to the above-mentioned typesofcontractsenteredintobythefederalgovernmentthatare subject to the Davis-Bacon Act itself,but it does not applytocontractssubjectonlytotheDavis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(2)-(60).Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts. Modification Number 0 Publication Date 01/05/2018 SUTX2011-006 08/03/2011 CEMENT MASON/CONCRETE FINISHER (Paving and Structures) ELECTRICIAN FORM BUILDER/FORM SETTER Paving &Curb........Structures.. Rates $12.56 $26.35 ..$12.94 $12.87 Fringes LABORER Asphalt Raker........ Flagger. Laborer,Common...... Laborer,Utility..... Pipelayer. Work Zone Barricade ..$12.12.$9.45..$10.50..$12.27 $12.79 Page 1 Servicer PAINTER (Structures).. TX1611.85 ...$18.34 POWER EQUIPMENT OPERATOR: Agricultural Tractor.... Asphalt Distributor..... Asphalt Paving Machine.. Boom Truck Broom or Sweeper........ Concrete Pavement Finishing Machine....... Crane,Hydraulic 80 tons or less Crane,Lattice Boom 80 tons or less. Crane,Lattice Boom over 80 tons. Crawler Tractor......... Directional Drilling Locator. Directional Drilling Operator Excavator 50,000 lbs or $12.69 $15.55 $14.36 $18.36 $11.04 $15.48 $18.36 $15.87 19.3815.67 11.67 17.24 Foundation Drill,Truck Mounted. Front End Loader,3 CY or $16.93 Less ....$12.88 Excavator over 50,000 lbs...$17.71 Less Front End Loader,Over 3 CY.$..............$ Mechanic.......$ Milling Machine.............$ Motor Grader,Fine Grade....$ Motor Grader,Rough.........$ Loader/Backhoe Pavement Marking Machine....$Reclaimer/Pulverizer........$..$..$Roller,Asphalt... Roller,Other..... Scraper...........$ Spreader Box..............$ Trenching Machine,Heavy....$ 13.0413.2114.1217.1014.1818.5114.6319.17 12.8812.78 10.50 12.27 14.04 18.48 Servicer. Steel Worker Reinforcing.structural. ..$14.51 ..$14.00..$19.29 TRAFFIC SIGNAL INSTALLERTrafficsignal/Light Pole Worker.16.00 TRUCK DRIVER Lowboy-Float Off Road Hauler........... Single Axle Single or Tandem Axle Dump Truck Tandem Axle Tractor w/SemiTrailer 15.6611.8811.79 11.68 12.81 Page WELDER.. TX16...$15.97 WELDERS —Receive rate prescribed for craft performing operation to which welding is incidental. Note:Executive Order (EO)13706,Establishing Paid Sick LeaveforFederalcontractorsappliestoallcontractssubjecttothe Davis-Bacon Act for which the contract is awarded (and anysolicitationwasissued)on or after january 1,2017.If thiscontractiscoveredbytheEO,the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work,up to 56 hours of paid sick leave each year. Employees must be permitted to use paid sick leave for their own illness,injury or other health-related needs,including reventive care;to assist a family member (or person who isikefamilytotheemployee)who is ill,injured,or has otherhealth-related needs,including preventive care;or for reasons resultinq from,or to assist a family member (or person who islikefamilytotheemployee)who is a victim of,domesticviolence,sexual assault,or stalking.Additional information on contractor requirements and worker protections under the EOisavailableatwww.dol.gov/whd/govcontracts. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29cFR 5.5 (a)(1)(ii)). The body of each wage determination lists the classification and wage rates that have been found to be prevailing for thecitedtype(s)of construction in the area covered by the wagedetermination.The classifications are listed in alphabetical order of "identifiers"that indicate whether the particularrateisaunionrate(current union negotiated rate for local), a survey rate (weighted average rate)or a union average rate (weighted union average rate). Union Rate Identifiers A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than "SU"or "UAVG"denotes that the union classification and rate were prevailing for that classification in the survey.Example: PLUM0198-005 07/01/2014.PLUM is an abbreviation identifier of the union which prevailed in the survey for thisclassification,which in this example would be Plumbers.0198indicatesthelocalunionnumberordistrictcouncilnumber where applicable,i.e.,Plumbers Local 0198.The next number, 005 in the example,is an internal number used in processing the wage determination.07/01/2014 is the effective date of the most current negotiated rate,which in this example is Duly 1,2014. Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA)governingthisclassificationandrate. Page 3 Survey Rate Identifiers TX16 Classifications listed under the "SU"identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted averageratebasedonalltheratesreportedinthesurveyforthatclassification.As this weighted average rate includes allratesreportedinthesurvey,it may include both union and non-union rates.Example:SULA2012-007 5/13/2014.SU indicates the rates are survey rates based on a weighted averagecalculationofratesandarenotmajorityrates.LA indicates the State of Louisiana.2012 is the year of survey on which these classifications and rates are based.The next number,007 in the example,is an internal number used in producing the wage determination.5/13/2014 indicates the survey completion date for the classifications and rates under that identifier. Survey wage rates are not updated and remain in effect until a new survey is conducted. Union Average Rate Identifiers Classification(s)listed under the UAVG identifier indicatethatnosinglemajorityrateprevailedforthoseclassifications;however,100X of the data reported for theclassificationswasuniondata.EXAMPLE:UAVG-OH-0010 08/29/2014.UAVG indicates that the rate is a weighted union average rate.OH indicates the state.The next number,0010 in the example,is an internal number used in producing the wage determination.08/29/2014 indicates the survey completion datefortheclassificationsandratesunderthatidentifier. A UAVG rate will be updated once a year,usually in january of each year,to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based. WAGE DETERMINATION APPEALS PROCESS 1.)Has there been an initial decision in the matter?This can be: *an existing published wage determination a survey underlying a wage determination*a Wage and Hour Division letter setting forth a position on a wage determination matter a conformance (additional classification and rate)ruling On survey related matters,initial contact,including requestsforsummariesofsurveys,should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program.If the response from this initial contact is not satisfactory,then the process described in 2.) and 3.)should be followed. With regard to any other matter not yet ripe for the formal process described here,initial contact should be with the Page 4 Tx16 Branch of Construction Wage Determinations.Write to: Branch of Construction Wage Determinations Wage and Hour Division U.S.Department of Labor 200 Constitution Avenue,N.W. Washington,DC 20210 2.)If the answer to the question in 1.)is yes,then an interested party (those affected by the action)can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7).Write to: Wage and Hour Administrator U.S.Department of Labor 200 Constitution Avenue,N.W. Washington,DC 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data,project description,area practice matersal,etc.)that the requestor considers relevant to the issue. 3.)If the decision of the Administrator is not favorable,an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board).Write to: Administrative Review BoardU.s.Department of Labor 200 Constitution Avenue,N.W. Washington,DC 20210 4.)All decisions by the Administrative Review Board are final. END OF GENERAL DECISION Page 5 EXHIBIT "H" el j I 'a ~~ I HI I L 1 ee'eIeleeller ee f liIi-- IIt 4 ~I e l I ~I tl II t:I le\gme I ~. II ~I ~ 4 ~ RIALTO COLLEGE STATION,TX MIDTOWN ON LAKEWAY PRELIMINARY CONCEPTUAL MASTER PLAN 0 200 FT 400 F1 SCALE l"=20000" FEBRUARY 13,2018 ..!„I I NORTH EXHIBIT "I" Insurance Proposal Prepared for Rock Prairie Mgmt District 42 VA~ McDonald 8 Wessendorff Insurance Welcome! Thank you for choosing us for your insurance needs.Finding the right people for the right job can be difficult,especially when dealing with insurance. We at McDonald 8 Wessendorff Insurance are dedicated to "Growing Relationships" with our clients.The following material about this insurance program is designed specifically for you. Please contact us at 281-342-6837 with any questions,comments or concerns. McDonald 8 Wessendorff Insurance: Dan McDonald,CEO Direct ¹281-633-3208 Email:dan.mcdonald@mcwess-insurance.corn Peggy Bohn,COO Direct ¹281-762-5213 Email:peggy.bohn@mcwess-insurance.corn Katrina Thornhill,Account Executive Direct ¹281-633-3200 Email:katrina.thornhill@mcwess-insurance.corn Kathryn Williams,Account Executive Direct ¹281-762-5215 Email:kathryn.williams@mcwess-insurance.corn Carrie Hitchcock Waterworks CSR Direct ¹281-762-5216 Email:carrie.hitchcock@mcwess-insurance.corn McDonald 8 Wessendorff Insurance ~611 Morton ~Richmond,Texas 77469 PH (281)342-MUDS (6837)~Fax:(281)341-MUDS (6837) Plan Coverages Property ~Real and Personal Property Coverage based on Replacement Cost Valuation ~Contractors Equipment based on Actual Cash Value Boiler &iwachlnery ~Coverage based on repair or replacement cost valuation Comprehensive General Liability ~Duty to Defend ~Defense is in addition to the policy limit ~Sewer Back-Up coverage provided by specific endorsement Umbrella ~Increased limits are available as an alternative to the District which desires higher limits for General Liability and Business Auto Liability Pollution Liability ~Legal liability protection for environmenta!damage and bodily injury ~Ciean-Up costs for third party owned premises ~Both gradual and sudden occurrences are covered o Occurrence coverage form ~Defense is in addition to the policy limit No exclusion for punitive damages Directors &Officers Liability ~Duty to defend Pay on behalf in lieu of reimbursement coverage form ~Defense is in addition to the policy limit (Indudes Breach of Contract) ~No Aggregate limit No deductible or retention Full prior acts coverage back to the creation of the District Definition of claim includes coverage for dedaratory and injunctive relief suits ~No Faiiure to Supply exclusion ~Employment Practices Liability included Coverage included for libel,slander,defamation of character McDonald &Wessendorff Insurance ~611 Morton ~RIchrAord,Texas 77469 PH (28'I)342 MUDS (6837)~Fax:(281)341-MUDS (6837) Rock Prairie Mgmt District ¹2 TYPE OF POLICY:COMMERCIAL GENERAL LIABILITY AND HIRED CAR &NON OWNERSHIP AUTOMOBILE LIABILITY PROPOSED EFFECTIVE DATE: COVERAGE: LIMITS OF LIABILITY: 03/31/18 ~Bodily Injury and Property Damage ~Full Sewer Backup Coverage ~Punitive Damages Not Excluded ~Host Liquor Liability ~Terrorism Not Excluded No Mold Exclusion No Assault &Battery Exclusion Duty to Defend Defense Cost Outside the Limit ~Coverage in U.S.Only $1,000,000 Each Occurrence $3,000,000 General Aggregate $1,000,000 PersonaVAdvertising Injury $3,000,000 Product Liability $100,000 Damages to Premises Rented to You $1,000,000 Hired and Non Owned Auto Liability POLICY TERM: PREMIUM: COMPANY: One Year $1,197 Mid-Continent Casualty Company AM Best Rating:A+VIII DOES THE DISTRICT HAVE AN INTERLOCAL AGREEMENT FOR LAW ENFORCEMENT? YES/NO: IF YES,PLEASE SEND A COPY. NURSER OF PEACE OFFICERS: THE DISTRICT WILL NEED LAW ENFORCEMENT LIABILITY &PEACE OFFICERS BOND SEE SUMMARY PAGE FOR ADDlTIONAL PREMILM. DOES THE DISTRICT OWN ANY ROADS YES/NO: ACCEPTED BY: REJECTED BY:DATE: SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8 Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) COMMERCIAL GENERAL LIABILITY This policy is an agreement to pay damages for which the insured is legally obligated because of bodily injury or property damage and to defend any suit brought against the insured on account of bodily injury or property damage. The policy will insure the District,any executive oKcers or directors thereof,and employees while acting within the scope of their duties as it applies to the following coverage's. PREMISES-OPERATIONS:District's liability exposure is primarily from the existence of its'acilities or any other District property. PRODUCTS:Products and/or completed operations coverage for waterworks and sewage disposal plant operations are included in the premises-operations coverage. CONTRACTORS I IABILITY:Protects the District against claims arising out of operations performed on behalf of the District by independent contractors.Every independent contractor employed by the District should furnish a certificate oftheir liability insurance to the District. SLAAKET CONTRACTUAL:Protects against claims arising out of the named insured assuming hability of others under a written contract, PERSONAL INJURY:Protects against claims arising out of one or more of the followmg offenses committed in the conduct of the named insured's business:False arrest,libel and slander,wrongful entry or eviction and other similar offenses including invasion of the right of private occupancy and defamation or violation of right of privacy. HIRED ANXI NON-OWNED AUTOMOSILES:Covers liability for claims arising out of non-owned automobiles and hired automobiles being used on behalf of the District. McDonald &Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax;(281)341-8837 (MUDS) Rock Prairie Mgmt District P2 **OPTIONAL COVERAGE ** TYPE OF POLICY:POLLUTION LIABILITY PROPOSED EFFECTIVE DATE: COVERAGE: 03/31/18 ~Occurrence Form ~Legal Liability to Others-Bodily Injury and Property Damage and Clean Up Costs ~Compensatory Damages Defense Cost Outside the Limit ~Punitive/Exemplary Damages Not Excluded Terrorism Not Excluded .Mold Not Excluded EXCLUSIONS: LIMIT OF LIABILITY: DEDUCTIBLE: POLICY TERM: PREMIUM: COMPANY: ~Statutory Fines or Penalties Unless Direct Result of Pollution Incident as Defined by the Policy ~Disposal of Sludge at Landfill Site $1,000,000 each occurrence $3,000,000 aggregate $5,000 Per Claim for Clean Up Costs One Year $750 Mid-Continent Casualty Company AM Best Rating:A+VIII **OPTIONAL COVERAGE *~ ACCEPTED BY: REJECTED BY: DATE: DATE:// SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8 Wessendorff Insurance 611 Morton Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) Rock Prairie Mgmt District ¹2 TYPE OF POLICY: PROPOSED EFFECTIVE DATE: COVERAGE: DIRECTORS AND OFFICERS LIABILITY 03/31/18 ~Claims-Made Coverage Form Duty to Defend Pay on Behalf in lieu of Reimbursement Coverage Form ~Full Prior Acts .Defense Cost Outside the Limit ~Defense for Alleged Breach of Contract ~Claim includes any Judicial or Administrative Proceedings ~Employment Related Practices coverage for the District Included ~Coverage extended to include Director's Spouse .Terrorism Not Excluded LIMIT OF LIABILITY: DEDUCTIBLE: POLICY TERM: PREMIUM: COMPANY: $1,000,000 Per Claim No Aggregate Limit None One Year $2,000 Mid-Continent Casualty Company AM Best Rating:A+VIII OPTIONAL LIMITS Limit Annual Premium X $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $2,000 $3,000 $4,000 $5,000 $6,000 ACCEPTED BY:DATE:/~//r REJECTKD BY:DATE: SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald B Wessendorl'f Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) Rock Prairie Mgmt District P2 **OPTIONAL COVERAGE *"'YPE OF POLICY:UMBRELLA PROPOSED EFFECTIVE DATE:03/31/1S COVERAGE:Limit of Coverage over General Liability,Automobile Liability,Pollution and Employers Liability (If underlying coverage is accepted) ~Terrorism Not Excluded ~Punitive Damages Not Excluded ~Defense Cost Outside the Limit UNDERLYING REQUIREMENTS: EXCLUSIONS: LIMIT OF LIABILITY: RETENTION: POLICY TERM: PREMIUM: COMPANY: $1,000,000 General Liability $1,000,000 Pollution Liability $1,000,000 Automobile Liability $1,000,000 Employers Liability Employee Benefits Liability Directors and Officers Liability Law Enforcement Liability $1,000,000 $10,000 One Year $900 Mid-Continent Casualty Company AM Best Rating:A+VIII OPTIONAL LIMITS Limit Premium X $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $900 $1,800 $2,700 $3,600 $4,500 **OPTIONAL COVERAGE *"'CCEPTED BY: REJECTED BY: DATE: ATE. SUBJKCT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8.Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) Rock Prairie Mgmt District 02 TYPE OF POLICY: ANNIVERSARY OF CURRENT POLICY: COVERAGE: PUBLIC EMPLOYEE BLANKET CRIME (Includes Attorney,Operator,Bookkeeper,Engineer and Delinquent Tax Attorney) 03/31/18 Loss caused to the District through failure of any employee/consultant to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. Limit applies per employee/consultant up to $100,000.If the bond amount is over $100,000,each employee/consultant is covered up to $100,000 and the excess amount is provided on a per loss basis rather than each basis. LIMIT: DEDUCTIBLE: ~Terrorism Not Excluded $10,000 $0 TERM: PREMIUM: COMPANY: One Year $120 Hartford Fire Insurance Company AM Best Rating:A+XV OPTIONAL LIMITS Limit Annual Premium $10,000 $25,000 $50,000 $100,000 $250,000 $500,000 $1,000,000 $120 $178 $222 $344 $479 $580 Quote available with application ACCEPTED BY: REJECTED BY:DATE: SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8 Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) Rock Prairie Mgmt District @2 TYPE OF BOND: ANNIVERSARY OF CURRENT BOND: COVERAGE: DIRECTORS POSITION SCHEDULE BOND 03/31/18 Provides coverage for loss caused to the District through the failure of Directors to perform faithfully their duties or to account properly for all monies and property received by virtue of their position as Director. BOND TERM: BOND LIMIT: .Terrorism Not Excluded One Year $10,000 Per Director (5 ) $50,000 Aggregate $175 COMPANY:Merchants Bonding Company AM Best Rating A VIII ACCEPTED BY: REJECTED BY:DATE: SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8 Wessendorff Insurance 611 Morton Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) 10 Rock Prairie Mgmt District AI2 **OPTIONAL COVERA.GE *~ TYPE OF POLICY:BUSINESS TRAVEL COVERAGE PROPOSED EFFECTIVE DATE:03/3U18 COVERAGE:24 Hour Coverage while traveling on district business Accidental Death &Dismemberment Paralysis Benefits Coma Benefits Psychological Therapy Benefit Emergency Evacuation/Family Travel Benefits Rehabilitation Expense Benefit Repatriation Benefit Seat Belt and Occupant Protection Device Benefit Age reduction for over 70 LIMITS:$250,000 Each Director$50,000 Each Spouse$25,000 Each Child $35,000,000 Aggregate Limit PREMIUM:$300 COMPANY:Chubb AM Best Rating:A++XV **OPTIONAL COVERAGE +* Date Accepted By Rejected By (Signature of District's Authorized Representative)(Title) plgmOIM$8oc~d A.0 r~~ (Signature of District's Authorized Representative)(Title) SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald &Wessendorff Insurance.611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) 11 Rock Prairie Mgmt District ¹2 +*OPTIONAL COVERAGE ** TYPE OF POLICY: PROPOSED EFFECTIVE DATE: COVERAGES: WORKERS COMPENSATION 03/31/18 ~Coverage A in the policy provides statutory coverage in which the insurance company agrees to assume the liability imposed upon an insured by the applicable Workers Compensation law or laws. ~Coverage B for Employers Liability in this policy protects an insured against liability imposed by law for injury to employees in the course of employment. ~Terrorism Not Excluded ~Subject to policy terms,conditions and exclusions. LIMIT OF LIABILITY:Employers Liability $1,000,000 Each Accident Bodily Injury by Accident POLICY TERM: PREMIUM: $1,000,000 Each Employee Bodily Injury by Disease $1,000,000 Policy Limit Bodily Injury by Disease One Year $302 (5 Directors)Estimated Annual Premium COMPANY: *"'PTIONAL COVERAGE ** Hanover Insurance Group AM Best Rating:A XV ACCEPTED BY: REJECTED BY: DATE: DATE: SUBJECT TO POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS McDonald 8 Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) 12 Rock Prairie Mgmt District Ai2 "'*OPI'IONAL COVERAGE ' TYPE OF POLICY: PROPOSED EFFECTIVE DATE: COVERAGE: LIMIT: RETENTION: Cyber Liability 03/31/1S A -Network &Information Security B -Communication &Media Liability C -Regulatory Defense Expenses D —Crisis Management Event Expenses E —Security Breach Remediation/Notification F —Computer Program &Electronic Data Restoration G —Computer Fraud H —Funds Transfer Fraud I —E-Commerce Extortion J —Business Interruption &Additional Expenses A -$1,000,000 Each Claim B -$500,000 Each Claim C -$500,000 Each Regulatory Claim D-J $250,000 Each Single First Party Insured Event TOTAL AGGREGATE:$1,000,000 $2,500 Each Claim/Event J —Waiting Period of 8 Hours POLICY TERM:One Year ESTIMATED $1,200 -$1,600 (Based on Revenues less than $5,000,000) COMPANY:Travelers Casualty &Surety Co.of America AM Best Rating:A++XV "'*OPTIONAL COVERAGE ** COVERAGE DEFINITIONS &CLAIM SCENARIOS —DOCUMENT AT END OF PROPOSAL Application required for formal quote ACCEPTED BY:DATE REJECTED BY: SUIJJECT TO POLICY TERMS,CONDITIONS,LIMITATIO/VS AIVD EXCLUSIONS McDonald 8 Wessendorff insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) 13 ROCK PRAIRIE MGMT DISTRICT P2 PROPOSED EFFECTIVE DATE:03/31/18 PREMIUM SUMMARY COVERAGE GENERAL LIABILITY/HIRED &NON-OWNED AUTO DIRECTORS AND OFFICERS PUBLIC EMPLOYEE BLANKET CRIME DIRECTOR'BOND TOTAL PREMIUM * RENEWAL PREMIUM 1,197.00 2,000.00 120.00 175.00 $3,492.00 McDonald &.Wessendorff thanks you for your business. LAST YEAR'S SHORT TERM PREMIUM 800.00 1,337.00 100.00 117.00 $2,354.00 **Please note this proposal does not include any property or boiler Ec machinery coverage.If the district purchases any facilities,please contact our oIIice to issue a property policy. *The increase in premium is due to the renewal now being full term.Last year's coverage/premium was short termed. Tax Bond —Avik Bonnerjee —Billed Directly to Tax Assessor. ***OPTIONAL NEW COVERAGE(S)*"' OPTIONAL NEW COVERAGE PREMIUM 750.00 900.00 300.00 302.00 1,000.00 50.00 Each Quotable POLLUTION LIABILITY UMBRELLA LIABILITY BUSINESS TRAVEL ACCIDENT WORKERS COMPENSATION 4 EMPLOYERS LIABILITY LAW ENFORCEMENT LIABILITY -$1,000,000 LIMIT PEACE OFFICERS BOND ¹OF PEACE OFFICERS CYBER LIABILITY TOTAL PREMIUM FOR ACCEPTED OPTIONAL COVERAGE ACCEPTED YES/NO PLEASE REPORT ALL NEW FACILITIES OR PROPERTIES IMMEDIATELY TO MCDONALD A WESSENDORFF PAYMENT IS DUE WITHIN 30 DAYS OF THK EFFECTIVE DATE TO AVOID CANCELLATION ACCEPTED BY: PRINTEDNAME &TITLE:ilrl 6EAAL.&&A demA-,g'+~re g 6 bI r&~~ FEDERAL TAX ID ¹'7 WEB ADDRESS IP ANY:4/Tf Premiums quoted are valid for 30 days from proposed effective date. All descriptions ofproposed coverage 's provided herein are intended as an outline of coverage and are necessarily brief.For specrfrc svording concermng insuring agreements,definitions,conditions,terms and exclusions not listed, please read each policy carefully.Please contact our a+ice if there are any questions. McDonald &Wessendorff Insurance.611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS) 14 D k 0 APPLICATION PLEASE COMPLETE/SIGN AND RETURN WITH THE ACCEPTED PROPOSAL THANK YOU! Professional Liability Application Application for Directors 8r.Officers Liabihty Insurance $1,000,000 Part I:Background Information Premium $2,000 **ML 1459 (01-97)** Name of Organization:Rock Prairie Mgmt Distj.tet 82 Address: Purpose of Organization: In continuous existence since:Number of Board Members: Are there subsidiaries?Yes or No {circle response)If yes,provide naine (s),date established,nature of operation,profit or nonprofit,purpose,bylaws and financial statement for each. If yes,do you wish to request coverage for subsidiaries?Yes or No {circle response) Are the organization's finances audited by a Certified Public Accountant?Yes of No (circle response) Does the organization have any stockholders or persons who profit fi om the operation except as salaried employees?Yes or No (circle response)If yes,please give detail...... Are any directors,Trustees,Officers or employees indebted to the organization?Yes or No.Ifyes,please give detail Part 2:Insurance Coverage Information Directors &Officers Liability Insurance carried during the past three years including expiring Policy. Insurer:I.imits of Liabilitv:Premium:Deductible:Po1icv Period Directors &Officers Liability Coverage has been continuously in force since; If yes,with which insurance company? Has any policy for Directors snd Officers liability Insurance ever been canceled or non-renewed?Yes or No (circle response).If yes„please give detaii... The individual of the organization designated to receive any and all notices fi om the Insurer or their authorized representative{s)concerning this insurance is: Naine:Title; Part 3:Employer Detail Total number of:Full Time Employees:Part Time Employees: Total number of Employees with annual salaries in excess of 50,000? How many of these employees have annual salaries in excess of 100,000? Does the organization have a written procedure for hiring and firing employees"!Yes or No Does a lawyer or human resource person review involuntary employment terminations prior to termination of an employee?Yes or No (circle response) Has there been a reduction of employees in the past 12 months?Yes or No (circle response) Is a reduction of employees anticipated in the next 12 months?Yes or No (circle response) Part 4:Claim Information Within the last 5 years has the organization or any individual proposed for insurance received any inquiry, complaint or notice of hearing &om any Municipal,State Administrative Agency,Federal Regulatory Authority or Congressional or Legislative Committee of similar such agency?Yes or No If yes,please explain... Within the last 5 years,has any claim been made,or is any claim now pending,against the organization,or any person proposed for Insurance in the capacity of either Director,Oflicer,Trustee,Employee or Volunteer of the organization?Yes or No (circle response)IF YES,ADVISE ON A SEPARATE SHEET DETAILS OF THE DIRECTORS &OFFICERS LIABILITY INSURANCE AND REMEDIAL MEASURES TAKEN TO PREVENT A RECURRENCE OF SUCH CLAIM(S). Is any person proposed for this insurance aware of any fact,circumstance or situation which may result in a claim against the organization or any of its Directors,OIIicers,Trustees,Employees,or Volunteers?Yes of No (circle response)If yes,give detail. ~Attach Financials ~Attach District Directory The undersigned declares that to the best of his/her knowledge and belief the statements set forth herein are true.The undersigned further declares that any occurrence or event taking place prior to the effective date of the insurance applied for which may render inaccurate,untrue,or incomplete will immediately be reported in writing to the Insurer and the Insurer may withdraw or modify any outstanding quotations and/or authorization or agreement to bind the insurance.The insurer is hereby authorized,but not required, to make any investigation and inquiry in connection with the information,statements and disclosures provided in this application.The decision of the Insurer not to make or to limit any investigation or inquiry shall not be deemed a waiver of any rights by the Insurer. McDonald 8 Wessendorff Insurance DATE:December 13,2017 ENGINEER'.EHRA ATTN:Blake McGregor EMAIL:bmcgregor@ehrainc.corn 611 Morton Street Voice:281-633-3200 Richmond,TX 77469 Fax:281-341-6837 Email;katrina.(homhiilQamcwess-insurance.corn Katrina Thomhiit RE:Rock Prairie Mgmt Districts;Engineer Report of Values (ERV) We have been requested to submit an insurance proposal for the above referenced District.Please review the questions below and indicate the type and quantity of any facilities pertinent to The District. indicate how many of the following the district owns.If none,so indicate. Swimming Pools f /I \Detention Ponds Parks I /~Lakes Lessors Risk (Sq/Ft)/I Pumps over 500 HP Does the district have water wells?If so,number of submersible pumps? Capacity of Plants (Gallon/Day): 1 I////I//W/'/ Please complete the following information for all insured facilities. ***PLEASENOTE:INSURANCE POLICY IS BASED ON REPLACEIIENT COST VALUATION"'" Property Type/Full Address Include City and Zfp Code Replacement Value Illlonth/Year Built Flood Zone Construction,Storie Ii.a.X,A,)8sqRofbuildfngs Any Facilities to Insure? &-//.- $ Fire Alarm:Y/N Sprinkiers:Y/N Structures w/in 100it: Intrusion Alarm:Y/N Central Station Alarm:Y/N TOTAL REPLACEMENT COST:$ / Mobile Equipment (please include year,make,model,serial number 8 value): Thanks for providing this information to our office.Please call if you should have any questions,or comments concerning this document.Please return uoon completion bv fax to f281)341 4837. SIGN HERE: x gr/rbkfri'caa~~L Q//h 8&+&&m &ar&~((0-//- Acknowledged By:(Signature)/f ]Print Name Date In the event of a claim,if the values ar not updated The District could suffer a financial loss.Please note the Engineer or General Manager's signature approving these values. TRAVELERSJ CyberRisk HOW OUR COVERAGE RESPONDS FOR PRIVATE,NONPROFIT AND PUBLIC COMPANIES IB1tllli%IILI ~IOIOI~ICOCVCIVI)L ~I IICOI ~IOI~ICOCCO IICOl Network and Information Security Liability SNIItOO~IOI ~ Coverage for claims arising from unauthorized access to data,failure to provide notification of a data breach where required by law,transmission of computer virus and failure to provide authorized users with access to the company website E1RrIE!%cell Iouo 'hacker obtains sensitive personal information from the insured's computer system.As a result, a number of customers bring a claim against the insured for allowing access to their personal information. ECOOCCICIEdtt 'IOIC OLt ',Damages and defense costs for covered lawsuits Communications and Media Liability Coverage for claims arising from copyright infiingement,plagiarism, defamation,libel and slander in electronic content A lawsuit is brought against the insured by another entity alleging that their online content ,and organizational branding have been plagiariized, and their trademarks infringed upon. Damages and defense costs for covered lawsuits 'egulatory Defense Expenses Coverage for governmental claims made as a result of network and information security liability or communications and media liability A charity with offices nationwide suffers a major data breach involving thousands of donors.As a result,attorneys general in multiple states bring regulatory action against the insured. l Costs for responding to ,regulatory claims stemming ',from the data breach, ,including any resulting fines ,or penalties SXleriialtLoll ~III~V ocvlllvlIL ~IOL'IOIOI ~Ir~ttCOCCIIICOI Crisis Management Event Expenses MS-IOOfOIOI ~ Coverage for public relations services to mitigate negative publicity ECBlFILICCOCI ~IO The insured's chief customer service officer has ,'is laptop stolen.The laptop contains more than 100,000 donor records,including their personal I contact information. ElcoIII co'I cs aa "Icol oLI- :Costs for hiring a public relations firm to restore ;donor confidence or ,mitigate negative publicity :generated from the incident Security Breach Remediation and Notification Expenses Coverage for costs associated with notification of individuals breached, credit monitoring for 365 days,fraud expense reimbursement and call center ;A skilled cyber criiminal hacks into the insured's 'nternal processing system.Names,addresses and credit information for more than 50,000 of the insured's members are captured from I the system. l Costs for retaining legal 'ounsel to assist with ,'the breach response, ,including forensics,notice requirements and expenses; i providing credit monitoring l and a call center for ;impacted individuals;and l obtaining an ID fraud policy'or affected victims Computer Program and Electronic Data Restoration Expenses Coverage for expenses to restore data lost 'computer virus corrupts the insured's system from system damage due to computer 'oftware and data. virus or unauthorized access Costs for repair and restoration of the insured's 'omputer programs and , electronic data Computer Fraud Coverage for loss of money,securities or other property due to unauthorized system access ,.'An organized crime ring gains unauthorized access to the insured's accounts payable in their 'omputer system and alters the bank routing ,information on outgoing payments. l The result —$1 million transferred to the crime 'ing's account. ,'Direct loss of the insured's 'oney,securities or other 'roperty ~IELIII~I~it~+JECQIIioII Funds Transfer Fraud RN5aaisisi ~ l Coverage for loss of money or securities i due to fraudulent transfer instructions to a financial institution RBAITanoII ISO I An insured receives an email that appeared to , 'be from its bank,but was not.The insured's , 'employee opens the email,which activates ,.embedded malware that reads key strokes from I their computer.The perpetrator uses this means to obtain banking and password information and initiate a fraudulent electronic wire transfer from the insured's bank account. KgoslQ sn ~~EIsi sLt i The insured's funds .'hat were fraudulently I transferred from its ,'bank account E-Commerce Extortion ,Coverage for money paid as a result of threats made to fraudulently transfer funds,destroy data,introduce a virus, attack a system or disclose electronic 'ustomer information The insured receives a series of notes that threaten to hack into its customer database and ''disclose all of the contact information to the j general public. .'Expenses to manage ,the incident and monies or secudities paid to the 'xtortioner Business Interruption and Additional Expenses Coverage for loss of income and expenses to restore operations as a result of a ,computer system disruption caused by a virus or unauthorized computer attack .'An organization's server is infected by a severe 'irus and as a result,their internal computer 'etwork is not available for an extended peiiod. The net proceeds that :would have been earned ,(or net losses that would have been avoided) resulting from the computer 'ystemdisruption Travelers CyberRisk coverage is offered as a stand-alone policy or as a cohesive part of the Wrap+'nd Executive Choice+'anagement liability suite of coverages.CyberRisk provides a combination of coverage options to help protect organizations from emerging cyber threats and now includes access to the Travelers'Risk Hub'an information portal of risk management tools. TRAVELERSJ travelersbond.corn Travelers Casualty and Surety Company of America and its property casualty affiliates.One Tower Square,Hartford,CT 06183 This material does not amend,or otherwise affect,the provisions or coverages of any insurance policy or bond issued by Travelers.It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond.Coverage depends on the facts and circumstances involved in the claim or loss,all applicable policy or bond provisions,and any applicable law.Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations. 201 5 The Travelers indemnity Company.All rights reserved.eRisk Hub is a registered trademark of NetDiligence.Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S.and other countries.59878 Rev.4.15 Vc3ona c L WesserIc or As required by Chapter 2270,Government Code,McDonald 8c Wessendorff Insurance hereby verifies that it does not boycott Israel and will not boycott Israel through the term of the policies included in this proposal.For purposes of this verification,"boycott Israel"means refusing to deal with,terminating business activities with,or otherwise taking any action that is intended to penalize,inflict economic harm on,or limit commercial relations specifically with Israel,or with a person or entity doing business in Israel or in an Israeli-controlled territory,but does not include an action made for ordinary business pinposes. Foreign Terrorists Organizations.Pursuant to Chapter 2252,Texas Government Code, McDonald k Wessendorff Insurance represents and certifies that,at the time of execution of this proposal neither McDonald &Wessendorff Insurance,nor any wholly owned subsidiary,majority-owned subsidiary,parent company or affiliate of the same (i) engages in business with Iran,Sudan,or any foreign terrorist organization as described in Chapters 806 or 807 of the Texas Government Code,or Subchapter F of Chapter 2252 of the Texas Government Code,or (ii)is a company listed by the Texas Comptroller of Public Accounts under Sections 806.051,807.051,or 2252.153 of the Texas Government Code.The term "foreign terrorist organization"in this paragraph has the meaning assigned to such term in Section 2252.151 of the Texas Government Code. McDonald 4 Wessendorff Insurance 611 Morton ~Richmond,Texas 77469 PH (281)342-6837 (MUDS)~Fax:(281)341-6837 (MUDS)