PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
OCTOBER 17, 2017
The Board of Directors (the “Board” or “Directors”) of Parkway Utility District (the “District”) met in regular session, at 6:30 p.m., at the Monahan Elementary School located at 8901 Deep Valley Drive, Houston, Texas, on Tuesday, October 17, 2017, pursuant to notice of said meeting posted in accordance with Chapter 551 of the Texas Government Code; whereupon the roll was called of the members of the Board, to-wit:
Brenda McNeil – President
Alphonso P. Rettig, Jr. – Vice President
Jennifer Balderas – Secretary
Ron Everhart – Assistant Secretary
Gloria M. Woods – Director
All members of the Board were present. Also attending were: Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”); David Patterson of Assessments of the Southwest (“Tax Assessor-Collector”); John Sherrington of Sherrington-Humble LLC (“Engineer” or “S-H”); Charlie Chapline and Toni Simon of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Hilda Sebastine of Eco Waste and Recycling (“Eco”); Jon Haddox with Texas AquaStore; and Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”).
The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board of Directors was present, called the meeting to order and declared it open for such business as may come before it.
Public Comment
The President then opened the meeting to public comment. Mr. Haddox introduced himself to the Board and discussed Aquastore’s desire to make a contribution to the Parkway community since it was affected by Hurricane Harvey (the “Hurricane”). Mr. Haddox explained that he had first reached out to Parkway Forest Community Improvement Association (“PFCIA”), but that PFCIA had explained that there were other areas in the Parkway community that were affected by the Hurricane and that contacting the District about the desired contribution might be most effective. Discussion then ensued about various ways that Aquastore might contribute to the Parkway community. Mr. Haddox explained that Aquastore had also contributed to a community in Florida affected by Hurricane Irma and suggested that Aquastore provide approximately 2,400 sheets of sheetrock for use by the residents in repairing homes. Discussion next ensued about the amount of sheetrock that could be made available by Aquastore and what the process would be for managing and determining who was in need of such sheetrock. Mr. Syzek suggested that a monetary donation to the District for repairs to damages to the District’s facilities might be the most practical contribution since it would be a benefit to all customers within the District. Mr. Haddox exited the meeting at this time.
As no further public comments were offered, the President instructed the Board to proceed with the agenda.
Ms. Sebastine entered the meeting at this time.
Eco Waste & Recycling REPORT
Ms. Sebastine presented the Eco Monthly Report, a copy of which is attached hereto. Ms. Sebastine reported regarding a discrepancy involving heavy trash collection days in the District. Director Balderas informed Ms. Sebastine that the welcome letter from Eco states that heavy trash is collected on Thursday. Director McNeil discussed mixing trash with storm debris. Mr. Barner recommended adding a statement to the District website about mixing trash and storm debris.
REQUEST FOR ADJUSTMENT
Mr. Chapline reported that Terri Freeman, a District resident, recently inquired about high water usage resulting in a water bill of $446.00. Mr. Chapline stated that Ms. Freeman was invited to attend tonight’s meeting. Mr. Chapline then introduced Ms. Simon, who provided additional information about her conversation with Ms. Freeman and Ms. Freeman’s request for an adjustment. Ms. Simon explained that Ms. Freeman’s average water bill is about $80.00 per month. Ms. Simon explained that the water bill for $446.00 per month was for approximately whose monthly average water 10,000 gallons of water usage. Ms. Simon informed the Board that Ms. Freeman believed her high water bill was the result of damaged lines that resulted from the Hurricane. Mr. Chapline stated that there were approximately 13 abnormal high meter readings during the Hurricane. Mr. Chapline further stated that Ms. Simon informed Ms. Freeman that the Board had to review her request for an adjustment. Mr. Chapline reported that MDS received two (2) other letters requesting an adjustment and discussed options available to the Board. Discussion ensued regarding what adjustments to such high water bills could be made in this circumstance.
Upon motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized the Operator to adjust the three (3) customer’s bills to the an amount reflecting such customers’ average monthly usage.
Patrol Service Report
Deputy Ganey then presented and reviewed with the Board the Patrol Service Report for September 2017, a copy of which is attached hereto. Deputy Ganey reported an increased number of burglaries and thefts, most of which were during the Hurricane.
Director Balderas reported an issue in Sunrise Pines with unleashed dogs. Deputy Ganey responded that he will contact Harris County Animal Control and to let him know if such problems continue.
Deputy Ganey and Ms. Sebastine exited the meeting at this time.
Minutes
The President next directed the Board to consider the approval of the minutes of the workshop meeting held on September 14, 2017 and the regular meeting held on September 19, 2017. Upon motion by Director Woods, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the minutes of the workshop meeting held on September 14, 2017 and the regular meeting held on September 19, 2017, as presented.
Systems Project Management Report
Mr. Syzek first discussed installation of traffic signals at the intersection of Van Hut Lane and Tidwell Road.
Next, Mr. Syzek discussed the progress of storm debris removal in the District by Harris County Precinct One.
Mr. Syzek then reported that tree and brush removal along the walking trail was completed before the Hurricane and presented before and after photographs. Mr. Barner inquired if Storm Water Solutions (“SWS”) had provided Mr. Syzek with an amended contract for additional work along the trails; Mr. Syzek stated he would follow up with SWS about such contract.
Mr. Syzek next discussed damages caused by all-terrain vehicles (“ATVs”) at the Sunrise Pines Detention Pond (the “Sunrise Pines Pond”) totaling approximately $950 and stated that SWS can repair such damages. Mr. Syzek recommended a potential access point to the Sunrise Pines Pond at Gardenia Mist. Discussion ensued regarding such access point and the possibility of installing a pipe gate to block ATV access. Mr. Barner requested that Mr. Syzek provide Mr. Chapline with copies of the photographs of the damage to the Sunrise Pines Pond.
Mr. Syzek presented photographs of repairs to the District Administration Building.
Mr. Syzek then reported that CenterPoint Energy repaired the transformer at the Water Plant.
Mr. Syzek reported that Harris County Precinct One will host a Harvey Recovery Fair on October 21, 2017, at the Stephanie Cravens Early Childhood Academy.
Tax Assessor-Collector’s Report
The Tax Assessor-Collector’s Report was presented by Mr. Patterson, a copy of which is attached hereto. Mr. Patterson first reported that 97.42% of the 2016 taxes have been collected as of September 30, 2017.
Mr. Patterson next reported that the Delinquent Tax Roll dated October 17, 2017, is attached to the Tax Assessor-Collector’s Report. Mr. Barner stated that the Board postponed the termination of service to the delinquent accounts at the September meeting.
Upon motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board: 1) approved the Tax Assessor-Collector’s Report, as presented; 2) authorized payment of checks numbered 1900 through 1908 from the Tax Account; and 3) authorized termination of service due to non-payment of delinquent taxes.
Engineer’s Report
Mr. Sherrington reviewed the Engineer’s Report, a copy of which is attached hereto. Mr. Sherrington first reported that he reviewed and marked up the design drawings for the Beltway 8 Waterline Extension Project. Mr. Sherrington also reported that the boring of the twenty-inch (20″) casing for insertion of the proposed water distribution is approximately twenty-one feet (21′) below the ground and crossing Beltway 8, which is farther south than originally designed to benefit the Superior Thread Product tract, and will require two (2) soil borings so the contractor will know the soil conditions and what method of boring installation to use. Mr. Sherrington reported that S-H recommends the Board approve the proposal of the geotechnical engineer, A&R Engineering and Testing Inc. (“A&R”), in the amount of $2,400.00.
Mr. Sherrington next reported that CES Utilities, Inc. (“CES”) has completed its work on the ten-inch (10″) Force Main and twelve-inch (12″) Waterline Project along Deep Valley. Mr. Sherrington also reported that S-H has scheduled the final inspection for 10:00 a.m. on Friday, October 20, 2017. Mr. Sherrington noted that he continues to receive reports from vendors for non-payment by CES. Mr. Sherrington reported that
S-H received, reviewed and approved Invoice No. 10743 from Project Surveillance, Inc. (“PSI”) in the amount of $568.00 and forwarded such invoice to the Bookkeeper. Mr. Sherrington went on to report that S-H received Pay Estimate No. 8 in the amount of $24,412.50 and recommended payment of same to CES.
Concerning the Water Plant Improvements Project, Mr. Sherrington reported that S-H conducted a pre-construction conference with Tidal Construction, Inc. (“Tidal”), inspectors and the District’s Operator. Mr. Sherrington next reported that S-H issued the Notice to Proceed to Tidal for September 18, 2017, and Tidal should complete its work on or before June 14, 2018. Mr. Sherrington also reported that Tidal has issued all of its purchase orders and awaits submittals from its vendors. Mr. Sherrington added that Tidal is prioritizing the automatic gate and additional parking and is planning to mobilize the site the week of October 23, 2017. Mr. Sherrington went on to report that S-H received, reviewed and approved PSI Invoice No. 10744 in the amount of $154.00 and forwarded such invoice to the Bookkeeper. Mr. Sherrington then reported that S-H received a copy of the GM Services performance test of the District’s well and indicated that the well is capable of pumping 1,083 gallons per minute with a pump submergence of 117 feet.
Next, Mr. Sherrington reported that upon review of the civil site design drawings pursuant to issuing a water and sanitary capacity letter to Sunrise Plastic (“Sunrise”), S-H noted the site included additional acreage. Mr. Sherrington added that when S-H asked Sunrise’s representative about the additional acreage, he was informed that Sunrise had purchased an additional five (5) acres. Mr. Sherrington indicated that he informed the Attorney of the additional acreage and all parties agreed to place the annexation on hold until S-H can revise the metes and bounds legal description and boundary map.
Regarding the Forest Park Apartments, Mr. Sherrington reported that the civil design engineer had additional questions which S-H relayed to the Operator and responded to the civil site engineer accordingly.
Mr. Sherrington reported that S-H received an email from the County regarding whether utility work on Tidwell Road was completed because the County is looking to begin installation of traffic signals.
Mr. Sherrington then reported that he received a request from Sheldon Independent School District (“SISD”) to construct a surface water transmission line within the District’s existing water line easement along the north side of Tidwell Road across from the District’s Surface Water Treatment Facilities to C. E. King Boulevard. Discussion ensued. Mr. Barner stated that he could not recommend the District agree to a consent to use the District’s easement because in his opinion, the easements granted to the District were for the exclusive use of the District and not for another entity’s use. It was the consensus of the Board not to agree to share the easement with SISD.
Upon motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved the proposal from A&R in the amount of $2,400.00; and 3) approved CES Pay Estimate No. 8 in the amount of $25,412.50.
Mr. Patterson exited the meeting at this time.
Bookkeeper’s Report and Investment Report
The Bookkeeper’s Report and Investment Report were presented to and reviewed with the Board by Ms. Bailey, copies of which are attached hereto. Ms. Bailey reported that the District has approximately 7.34 months’ operating reserve. Mr. Bailey stated that she will check the Operator’s expenses on the budget comparison.
Upon motion by Director Balderas, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented, and acted on the following: 1) authorized payment of checks numbered 8648 through 8747 from the General Fund; and 2) authorized payment of checks numbered 1684 through 1689 from the Capital Projects Fund.
Operator’s Report
The Operator’s Report was presented by Mr. Chapline, a copy of which is attached hereto. Mr. Chapline first reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 90.0% of water billed to customers.
Mr. Chapline next discussed repairs and preventative maintenance performed at the water plant, water distribution system, sanitary and storm sewer collection systems, and lift station. Mr. Chapline reported that the generator at Lift Station No. 6 was damaged during the Hurricane and a new generator is not covered by the District’s insurance. Mr. Chapline reminded the Board that MDS filed a claim with FEMA, but noted it is a long process. Mr. Chapline then reported that one (1) of three (3) pumps at Lift Station No. 2 flooded resulting in seal failure. Mr. Chapline went on to report that the cost to repair the pump is $4,000.00 and the cost to replace the pump is $8,000.00. Messrs. Sherrington and Chapline recommended repairing the pump.
Mr. Barner reported that he made a request for compensation from the City of Houston (the “City”) since the District was unable to receive water from the City during the Hurricane. Mr. Barner noted that this matter will be discussed when he and the Engineer meet with the City in the near future.
Mr. Chapline then discussed the Groundwater Owed Report, a copy of which is attached to his report. Mr. Chapline reported that also attached to his report is a Write-Off List dated September 22, 2017, identifying seven (7) accounts totaling $1,782.08 for the Board’s approval. Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due October 15, 2017, is attached to his report.
Director McNeil discussed complaints about missing meter covers after the Hurricane. Mr. Chapline stated that the Operator conducted a drive-through the District and most meter covers should have been replaced.
Upon motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board: 1) approved the Operator’s Report, as presented; 2) approved repairing the pump at Lift Station No. 2 at a cost of $4,000.00; and 3) authorized write-offs and terminations.
Parkway/Greenwood UTILITY DISTRICT (“Greenwood”) Joint Facilities
Mr. Sherrington presented the Joint Facilities Report, a copy of which is attached hereto. Mr. Sherrington first reported that S-H reviewed copies of invoices and related expenses for the Regional Wastewater Treatment Plant (“RWWTP”) and Surface Water Treatment Facilities (“SWTF”) and he questioned the District’s participation in the Tidwell Lakes Permit Renewal 2018. Ms. Bailey indicated that she would discuss this matter with Greenwood’s bookkeeper. Mr. Sherrington also reported that he received the budget versus actual spreadsheets for the RWWTP and SWTF. Mr. Sherrington reported that the SWTF expenditures are over-budget for purchased water services, legal fees, utilities and site acquisition and noted that site acquisition was not included in the original budget. Mr. Sherrington went on to report that the RWWTP expenditures are over-budget for legal and engineering fees, maintenance/repairs-routine, telephone and repair/maintenance extraordinary and noted that the outfall pipe was not included in the original budget.
Regarding the RWWTP, Mr. Sherrington reported that he asked Greenwood’s engineer for copies of any exhibits and handouts that will be presented at the October 26, 2017 Joint Meeting with Greenwood (the “Joint Meeting”).
Messrs. Sherrington and Barner next reported that the Lease Capacity Agreement will be presented at the Joint Meeting.
In connection with the rehabilitation of the RWWTP discharge pipe project, Mr. Sherrington reported that RAC Industries, LLC (“RAC”) completed the original bid work, however, after an inspection with the Harris County Flood Control District (“HCFCD”), HCFCD is requesting the Districts to import, place, compact and grade additional dirt at a cost of approximately $16,000.00. Mr. Sherrington then presented RAC’s Pay Estimate No. 2 in the amount of $16,000.00 for the outfall repair project, noted the District’s share is $8,000.00 and recommended payment of same. Discussion ensued. Mr. Barner then reported that he is currently reviewing an easement granted to the HCFCD for the area that HCFCD had requested to be backfilled. Mr. Barner stated that he would argue that HCFCD does not have the authority to make such a request within the easement area. Mr. Barner added that this subject will be discussed more at the Joint Meeting.
Mr. Barner stated that the SWTF site acquisition will be discussed in closed session at the Joint Meeting.
Mr. Barner reported that he contacted the City about a meeting to discuss the Surface Water Supply Agreement and awaits a response.
Concerning the County’s Tidwell Road Expansion Project, Mr. Sherrington reported that he received an email that the County has developed design plans and anticipates acquiring all right-of-ways by March 2018. Mr. Sherrington added that the County expects to bid the project in March 2018.
Mr. Sherrington reported that he will meet with the Operator to finalize the groundwater pay-back to Greenwood.
Upon motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board: 1) approved the Joint Facilities Report; 2) approved RAC Pay Estimate No. 2 in the amount of $16,000.00 for the outfall repair project; and 3) authorized the Engineer to invoice his costs to clean and televise the RWWTP sanitary sewer trunk lines.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig reported that he requested information from Justin Smith, the project manager at Way-Tech, Inc. (“Way-Tech”) regarding the completion date of the District Building Repair Project. Director Rettig reported that Mr. Smith is looking for someone to tape, float and texture the walls. Director Rettig went on to report that flooring will immediately follow, then installation of millwork, door jambs and granite. Director Rettig then reported that the doors will be delivered in approximately one (1) to one and one-half (1.5) weeks. Director Rettig added that if all goes smoothly, the project should be completed by mid-November. Director Rettig indicated that Mr. Smith needs a copy of the signed proposal and Mr. Barner will follow up with Mr. Smith tomorrow. Discussions regarding paint color will be discussed after the meeting.
DISTRICT WEBSITE REPORT
Mr. Barner reported that he had provided Shannon Waugh at Off-Cinco with a statement regarding the Hurricane and separation of storm debris from household waste items for publication on the District website.
Attorney’s Report
Mr. Barner first reported that the Sunrise Plastic annexation had been delayed since Sunrise Holdings had acquired additional property that needed to be included in such annexation.
Next, Mr. Barner asked the Board for dates in November and December to review the District consultants. Director Rettig stated that he is available until December 22, 2017.
Mr. Barner then discussed approval of additional meeting places outside the District at the Sheldon Community Fire and Rescue Station 1, 8407 C. E. King Parkway, Houston, Texas 77044, and Sheldon Community Fire and Rescue Station 3, 12911 South Lake Houston Parkway, Houston, Texas 77044.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 21st day of November, 2017.
Secretary, Board of Directors
October 17, 2017 Minutes Signature