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‹ Harris County Municipal Utility District No. 490 · All districts' issues

question Cost sharing 2 conflict questions money moved

Ask whether MUD 490 had any review independent of BGE and SPH, who also advise MUD 418 on these charges.

Good practice; Tex. Disciplinary R. Prof'l Conduct 1.06 (lawyer conflicts and waivers; may apply)

The board action behind it

2026-02-26: Approved Resolution Regarding Review of Connection Charge Under Master Facilities Contract, reflecting BGE's recommended increases to base water and sanitary sewer connection charges and sanitary sewer zone charges

What else happened at that meetingThe Board granted a residential homestead exemption of 1% (not less than $5,000) and a $10,000 exemption for persons who are disabled or 65 or older for tax year 2026, and determined that the District is a Developing District for 2026. It engaged Si Environmental as operator under a professional services agreement, with April 13, 2026 as the target transition date, and approved the final sludge management agreement with HydroClear. The Board approved new electronic tax payment agreements tied to the move to Assessments of the Southwest, accepted the insurance renewal proposal from McDonald Wessendorf, adopted updated prevailing wage rates, and approved BGE's recommended connection charge increases under the Master Facilities Contract. Because the candidates were unopposed, it adopted an order declaring Perry Miller and Lee Markiewicz elected and cancelled the May 2, 2026 directors election. The developer's representatives briefed the Board on the planned Toro District, and directors raised concerns about sound barriers, traffic and security.

Source: the meeting record › The approved minutes, p. 5 ›

The law and guidance in force on 2026-02-26

Shared facilities priced by benefit; a district pays only for capacity it benefits from
30 TAC §293.44
§293.44: Same text in force then and now
Question BGE recommended increases to base water and sanitary sewer connection charges and sanitary sewer zone charges (Exhibit I); the amounts are not in the minutes (p.5).
Interlocal payments fairly compensate the party providing the service
Gov't Code §791.011(e)
§791.011(e): Same text in force then and now
Not shown in the record Same.

Who's involved

BGE, Inc. (district engineer (also engineer for MUD 418 and the Water Agency))
Harris County MUD No. 418 (master district (regional water and wastewater plants))
Schwartz, Page & Harding, L.L.P. (general counsel (also counsel to MUD 418, MUD 419, MUD 489 and the Bridgeland Water Agency))

Possible conflicts

BGE, Inc.: BGE prepared the connection-charge review for MUD 418 (the seller of capacity) and presented it to MUD 490 (a buyer) as MUD 490's engineer. (MUD 418 minutes Mar 24, 2026 p.4; consultant schedules in the audits of MUD 418 (2025_Financial_Report.pdf, PDF p.42) and MUD 490 (HC_MUD_No_490_2025_FS_Final.pdf, PDF p.49))
Schwartz, Page & Harding, L.L.P.: SPH presented the resolution to MUD 490 and reported participants' approvals to MUD 418's board (MUD 418 minutes Feb 24 and Mar 24, 2026). MUD 419 keeps separate standby counsel for Master Facilities Contract conflicts with MUD 418; no such arrangement appears in MUD 490's records on hand. (MUD 418 minutes Feb 24 and Mar 24, 2026; MUD 419 minutes June 8, 2026 p.7 (standby counsel), Minutes_June_8_2026_Approved_HCMUD_419.pdf)

Cost to the district

Higher per-connection charges apply to MUD 490's future capacity purchases; not quantified in the minutes.

Money or costs moved

HC MUD 490 → Harris County MUD No. 418 Updated connection charges for capacity in the Master Facilities. MUD 490 paid $11,133,910 for capacity in FY2023 and estimated $8,920,924 more under the January 23, 2025 Second Supplemental Agreement, funded from its $34,580,000 Series 2025 bonds; MUD 418 recorded receiving MUD 490's Series 2025 connection charges and authorized paying them to the developer (MUD 418 minutes Nov 12, 2025 p.3). MUD 490 approved this review before MUD 418 itself did (Mar 24, 2026).

Why the board approved it

Recorded: “BGE (Kristen Turkal) recommended increases as shown in its recommendation letter (p.5).”

The record gives no old or new charges and no estimate of the effect on MUD 490, and the only advice came from firms that also advise MUD 418.