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‹ Harris County Municipal Utility District No. 418 · All districts' issues

question Cost sharing $6,391,960 1 conflict question money moved

Show how the $6,391,959.75 price was computed and why the per-connection price (about $9,470) differs from MUD 493's agreement the same day (about $10,171).

30 TAC §293.44 (sharing by design capacity); Good practice: an engineer's allocation exhibit.

The board action behind it

2026-05-26: Approved Fourth Supplemental Agreement with Harris County MUD No. 491 for 675 additional connections, with estimated payment of $6,391,959.75

What else happened at that meetingWith the President and Vice President absent, Director Parr presided as President Pro Tempore. The Board accepted the resignation of Director Knabe, appointed Noe Escobar to fill the vacancy, accepted qualification documents from Director Escobar and re-elected Directors Parr and Cobb, and elected Director McClary President and Director Escobar Assistant Secretary. It approved the general operating, joint water plant and joint sewer treatment plant budgets for the fiscal year ending May 31, 2027, engaged Forvis Mazars to audit fiscal year 2026 and to perform agreed-upon procedures for the proposed Series 2026 road bonds, and approved a preliminary summary of costs for those bonds. The Board approved supplemental capacity agreements with Harris County MUD 491 for 675 connections and MUD 493 for 191 connections, new sludge management agreements, and three operator proposals; the operator also reported a TCEQ noncompliance notice after a Lift Station No. 2 equipment failure caused manholes in MUD 489 to overflow.

Source: the meeting record › The approved minutes, p. 8 ›

The law and guidance in force on 2026-05-26

Joint facilities shared by benefit, generally by design capacity
30 TAC §293.44
§293.44: Same text in force then and now
Not shown in the record Charge basis not in the minutes (p.7-8).
Interlocal contract terms and fair compensation
Gov't Code §791.011(d)-(e); Water Code §49.213(a)
§791.011(d): Same text in force then and now§49.213(a): Same text in force then and now
Shown Supplemental agreement approved and attached (Exhibit J, p.8).
Participant's bonds for capacity need TCEQ approval
Water Code §49.181
§49.181: Same text in force then and now
Not shown in the record Payment 'will be made from the proceeds of No. 491's next bond issue' (p.8).

Who's involved

Harris County MUD No. 491 (participant buying 675 additional connections)
Schwartz, Page & Harding, L.L.P. (SPH) (district attorney (and bond counsel); also general counsel to MUDs 419, 489, 490, 491, 492, 493 and WCIDs 157, 158, 159)
BGE, Inc. (district engineer; also engineer to MUDs 419, 489, 490, 491, 492, 493 and WCIDs 157, 158, 159)
Masterson Advisors LLC (financial advisor; also FA to MUDs 419, 489, 490, 491, 492, 493 and WCIDs 158, 159)
Bridgeland Development, LP (represented by Howard Hughes Holdings, Inc. staff) (developer; reimbursed for master facilities and road facilities)

Possible conflicts

SPH, BGE, Masterson, MA&C: The same attorney, engineer, financial advisor and bookkeeper act for MUD 418 (seller) and MUD 491 (buyer); the developer is reimbursed from both MUD 491's bonds and MUD 418's connection charges. (The same attorney (SPH), engineer (BGE), bookkeeper (MA&C), financial advisor (Masterson) and auditor (Forvis Mazars) serve MUD 418 and the participant districts on the other side of every master-facility payment (consultant schedules in the audits of MUD 418 (2025_Financial_Report.pdf, PDF p.42), MUD 419 (2025_05_31_Audit_Report.pdf, PDF p.70), MUD 489 (HC_489_Final_Audit_Report_FY_Ended_May_31_2024.pdf, PDF p.60), MUD 490 (HC_MUD_No_490_2025_FS_Final.pdf, PDF p.49) and MUD 493 (HC_493_Final_Audit_Report_FY_Ended_May_31_2024.pdf, PDF p.31); TCEQ affiliation records for MUDs 491 and 492 (hcid14-site/bridgeland-records/hcmud491/tceq/tceq-affiliations.html; hcid14-site/bridgeland-records/hcmud492/tceq/tceq-affiliations.html)); MUD 419 arranged standby counsel for Master Facilities Contract conflicts with MUD 418 (MUD 419 minutes June 8, 2026 p.7))

Money or costs moved

HC MUD 491 (next bond issue) → HC MUD 418: $6,391,960 675 additional water and wastewater connections (about $9,470 per connection, computed) (p.8).
HC MUD 418 → Bridgeland Development, LP Connection charges reimburse the developer for TCEQ-approved master facilities (Nov 12, 2025 p.3).

Why the board approved it

Recorded: “SPH described the agreement: 675 connections, estimated payment $6,391,959.75 from MUD 491's next bonds (p.8). Director Escobar had left the meeting (p.7); approved by three directors.”

Terms and price are recorded. MUD 491's own approval is not in the records reviewed (MUD 491's minutes are not among the records on hand).