PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
NOVEMBER 21, 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 Sheldon Community Fire and Rescue Station 3, 12911 South Lake Houston Parkway, Houston, Texas, on Tuesday, November 21, 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, except for Director Woods. Also attending were: Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”); Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”); Sean Humble of Sherrington-Humble LLC (“Engineer” or “S-H”); Charlie Chapline of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Natalie Barnaby of Eco Waste and Recycling (“Eco”); Gary Syzek of Systems Project Management; Mary Dubois of Acclaim Energy Advisors; Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons on the attached attendance roster.
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.
The President first opened the meeting to public comment. As no public comments were offered, the President instructed the Board to proceed with the agenda.
ACCLAIM ENERGY ADVISORS
Ms. Dubois then presented an updated pricing report, a copy of which is attached hereto. Discussion ensued. The Board requested that Ms. Dubois provide an updated pricing report one (1) week prior to the December 19, 2017 meeting so that the Board would have the appropriate time to review such pricing.
Eco Waste & Recycling REPORT
Ms. Barnaby next presented the Eco Monthly Report, a copy of which is attached hereto, and discussed garbage collection during the Thanksgiving holiday. Ms. Barnaby reported that trash will be collected on Friday, November 24, 2017 for those customers that normally have their trash collected on Thursdays; recycling will resume on Thursday, November 30, 2017.
Patrol Service Report
Deputy Ganey then presented and reviewed with the Board the Patrol Service Report for October 2017, a copy of which is attached hereto.
Deputy Ganey and Ms. Barnaby exited the meeting at this time.
The President next directed the Board to consider the approval of the minutes of the workshop meeting held on October 12, 2017 and the regular meeting held on October 17, 2017. Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the minutes of the workshop meeting held on October 12, 2017 and the regular meeting held on October 17, 2017, as presented.
Systems Project Management Report
Mr. Syzek then presented the Systems Project Management Report, a copy of which is attached hereto. Mr. Syzek first reported that Harris County Precinct 1 has begun installing traffic signals at the intersection of Deep Valley and Tidwell Road. Mr. Syzek further reported that installation of such signals at the intersection of Van Hut and Tidwell will begin once the District’s sanitary sewer project is completed.
Next, Messrs. Syzek and Humble reported that Tidal Construction, Inc. (“Tidal”), the contractor for the Water Plant Improvement Project (the “Water Plant Project”), asked where the District would like to relocate the two (2) live oaks trees located behind the District Administration Building (the “Live Oaks”). Messrs. Syzek and Humble explained that the Live Oaks must be removed in order for Tidal to proceed with such project. Discussion ensued. Director Everhart inquired as to whether the cost of relocating the Live Oaks is already within the scope of Tidal’s contract for the Water Project. Director Everhart then recommended that the Board ask Mr. Syzek to obtain estimates for the cost of relocating the trees. It was the consensus of the Board that Mr. Syzek provide such pricing to Director McNeil.
Mr. Syzek then reported that he met with Mr. Chapline to discuss options for preventing all-terrain vehicles (“ATVs”) from entering the Sunrise Pines Detention Pond (the “Sunrise Pines Pond”). Mr. Chapline further reported that the District could install bollards across certain entrances to the Sunrise Pines Pond. Mr. Chapline also stated that he could inspect at all entrances to the detention ponds in the District and investigate the costs to install bollards along such entrances and along the Harris County Flood Control District (“HCFCD”) drainage channel. Mr. Barner noted that he should investigate any potential HCFCD requirements for installing such bollards. The Board asked Mr. Chapline and Mr. Barner to investigate the matter further and update the Board at the December regular meeting.
Mr. Syzek next inquired about the status of a potential park bond election in May 2018. Mr. Barner reminded Mr. Syzek and the Board that the Board had decided to wait on scheduling such election until it had an opportunity to further determine the approach the District should take for creating a park plan and presenting such plan to the District’s residents. Mr. Barner added that he and the District’s consultants awaited the Board direction as to how it wished to proceed.
Director Balderas entered the meeting at this time.
Tax Assessor-Collector’s Report
The Tax Assessor-Collector’s Report was presented by Ms. Yanez, a copy of which is attached hereto. Ms. Yanez first reported that 97.75% of the 2016 taxes have been collected as of October 31, 2017.
Ms. Yanez next reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report. Discussion ensued regarding termination of service to the delinquent accounts and Mr. Barner reported that the Board approved termination of service to delinquent accounts at the October 17, 2017 meeting.
Ms. Yanez then presented an Assignment and Assumption of Agreement for Services of Tax Assessor-Collector, a copy of which is attached hereto, and indicated that such amendment was being made to change the name of the Tax Assessor-Collector from Thomas W. Lee, R.T.A. to Assessments of the Southwest, Inc. Ms. Yanez also reported an increase of miscellaneous expenses, including postage, special mailings and return envelopes.
Upon motion by Director Balderas, seconded by Director Rettig, 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 1909 through 1915 from the Tax Account; and 3) approved the Assignment and Assumption of Agreement for Services of Tax Assessor-Collector.
Mr. Humble reviewed the Engineer’s Report, a copy of which is attached hereto. Mr. Humble first reported that the design drawings for the Beltway 8 Waterline Extension Project have been updated. Mr. Humble also reported that A&R Engineering and Testing, Inc., the geotechnical engineer, was instructed to obtain two (2) soil borings as previously authorized by the Board.
Mr. Humble next reported that CES Utilities, Inc. (“CES”) is addressing punch list items for the ten-inch (10″) Force Main and twelve-inch (12″) Waterline Project along Deep Valley. Mr. Humble also reported that S-H received, reviewed and approved Invoice No. 10806 from Project Surveillance, Inc. (“PSI”) in the amount of $1,856.00 and forwarded such invoice to the Bookkeeper. Mr. Humble went on to report that S-H received, reviewed and approved Invoice No. SHR1602b from Robert W. Young & Associates, Inc. (“Young”) in the amount of $580.03 and forwarded such invoice to the Bookkeeper.
Mr. Humble next reported that S-H is reviewing the canopy configuration based on the booster pump dimensions. Mr. Humble went on to report that S-H received, reviewed and approved PSI Invoice No. 10808 in the amount of $102.00 and forwarded such invoice to the Bookkeeper. Mr. Humble then reported that S-H received, reviewed and approved Young’s Invoice No. SHR1701 in the amount of $2,250 and forwarded such invoice to the Bookkeeper.
Next, Mr. Humble reported that S-H revised the metes and bounds and boundary map for the Sunrise Holding Company, LLC’s (“Sunrise”) annexation to include the additional property that Sunrise purchased recently. Mr. Humble also reported that civil site design engineer requested that the District approve Sunrise to proceed with the construction of certain private utilities before these areas are paved. Mr. Humble indicated that S-H is reviewing such request with the Operator.
Regarding the Forest Park Apartments (“FPA”), Mr. Humble reported S-H reviewed and, with input from the Operator, commented on the designs drawings of FPA’s the civil design engineer.
Mr. Humble reported that S-H received an email from Harris County (the “County”) regarding whether utility work on Tidwell Road was completed because the County was looking to begin installation of traffic signals. Mr. Humble reported that the County commenced installation of a traffic signal at Deep Valley and S-H could not release the Tidwell Road and Van Hut Lane intersection until CES has satisfactorily corrected the sag in the new line.
Next, Mr. Humble reported that S-H provided information to the Bookkeeper related to the budget for fiscal year ending December 31, 2018, including: 1) general engineering fees will remain the same; 2) suggested that the Bookkeeper track developer deposits separate under revenue and expenses; and 3) suggested that the Bookkeeper track the County’s Tidwell Road Expansion Project separately under expenses.
Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented.
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 7.21 months’ operating reserve.
Discussion ensued regarding interest earnings and Mr. Barner explained the process to use interest earnings.
Ms. Bailey presented drafts of: 1) the general operating budget for fiscal year ending 2018 (“FYE 2018”); 2) the Surface Water Treatment Facility (“SWTF”) budget FYE 2018; and the 3) Regional Wastewater Treatment Plant (“RWWTP”) budget FYE 2018, copies of which are attached to the Bookkeeper’s Report. Ms. Bailey and Mr. Barner requested that any consultants or Directors that had comments or proposed changes to the SWTF or the RWWTP budgets to provide such comments and changes as soon as possible so that they could be provided to Greenwood’s bookkeeper for review. Mr. Chapline indicated that that Operator’s fees may change for the general operating budget; Ms. Bailey stated that she would update the budget and forward it to the Board for review.
Ms. Bailey told the Board that should they ever have any questions, to please contact her or Judy Osborn.
Upon motion by Director Rettig, seconded by Director Everhart, 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 8748 through 8816 from the General Fund; and 2) authorized payment of checks numbered 1690 through 1697 from the Capital Projects Fund.
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 92.2% 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 surface water transmission facility is up and running.
Mr. Chapline then reported he attended a Federal Emergency Management Agency (“FEMA”) scoping meeting earlier in the day. Discussion ensued regarding expenses incurred by the District because of Hurricane Harvey. Mr. Chapline stated that he has 60 days to complete the FEMA forms and noted that FEMA will pay expenses not covered by insurance.
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 October 24, 2017, identifying three (3) accounts totaling $235.42 for the Board’s approval. Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due November 21, 2017, is attached to his report. Mr. Chapline reported that cut-offs are scheduled for November 29, 2017, and recommended the District remain on the normal cut-off schedule.
Director McNeil inquired about the status of a possible leak at her neighbor’s property that appeared to cause water pooling in the street. Mr. Chapline responded that MDS had investigated such leak and it determined that such leak is on private property. Mr. Chapline added that the property owner had been notified.
Upon motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented and authorized write-offs and terminations.
Parkway/Greenwood UTILITY DISTRICT (“Greenwood”) Joint Facilities
Mr. Humble presented the Joint Facilities Report, a copy of which is attached hereto. Mr. Humble first reported that John Sherrington reviewed and provided comments on the draft budgets for the RWWTP and SWTF, as referenced on the Joint Facilities Report.
Regarding the RWWTP, Mr. Humble reported that Mr. Sherrington looked at the twenty-four inch (24″) sanitary trunk line (the “Trunk Line”) and inquired whether the Board would like for the Engineer to solicit bids to clean and video the 3,920 feet (3,920′) the Trunk Line. It was the consensus of the Board that the Engineer bring cost estimates to the next regular Board meeting.
Next, Messrs. Humble and Chapline reported that the bar screen at the RWWTP needs to be replaced and that the Heloseive bar screen (the “Heloseive”) discussed at the Parkway/Greenwood Joint Meeting on October 26, 2017 is the best option for the RWWTP. Director McNeil inquired about the use of the Heloseive and Mr. Chapline responded that another MDS water district has a Heloseive and it works well. Messrs. Humble and Chapline went on to state that Greenwood’s Operator and Engineer are in favor of the Heloseive system. Mr. Humble noted that the Districts’ options are limited due to the age of the RWWTP and that S-H defers to A&S Engineering, Inc. (“A&S”) regarding the Heloseive. Mr. Chapline then explained that the cleaning expenses at the RWWTP will continue to be higher without a bar screen in place. Director McNeil asked if replacing the bar screen could wait until the RWWTP expansion project; Messrs. Humble and Sherrington recommended that the Board concur with Greenwood and purchase the Heloseive. Mr. Humble noted that the Heloseive has resale value and the District can recoup some of its costs when such screen is no longer needed. Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved purchasing the Heloseive.
Concerning the rehabilitation of the RWWTP discharge pipe, Mr. Humble reported that the contractor, RAC Industries, LLC, is complete with the original bid work, however, after an inspection with the HCFCD on October 6, 2017, the HCFCD is requesting the Districts import, place, compact and grade additional dirt at a cost of approximately $16,000. Mr. Barner reported that he prepared a letter informing the HCFCD that the Districts disagreed with HCFCD’s request to backfill the easement area. He will provide an update at the next regular Board meeting.
Next, Mr. Humble reported that the District’s Engineer, Greenwood’s Engineer and both Districts’ Attorney attended a meeting with the City of Houston (the “City”), and its design engineer on November 14, 2017, to discuss the increase in the take-or-pay amount. Mr. Humble reported that the City agreed to an interim increase, but in order to see the full increase, the surface water line will need to be upgraded from a twelve-inch (12′) line to a sixteen-inch (16″) line. Mr. Humble indicated that S-H will follow-up with A&S on the proposed increase amounts and timing of the required upgrade.
Concerning the County’s Tidwell Road Expansion Project, Mr. Humble reported that S-H attended a meeting with representatives of Harris County, Precinct One, the City, the County and Greenwood to discuss proposed improvements to Tidwell Road, as well as future access to the City’s surface water meter. Mr. Humble reported that S-H noted the meter and vault are located directly over the District’s twenty-four inch (24″) gravity trunk sewer line. After the meeting, representatives of Harris County, Precinct One, informed S-H of the City’s desire to construct a sidewalk within the District’s twenty-inch (20″) water line easement along the north side of Tidwell Road from the SWTF to John Ralston Road. Mr. Humble reported that the County subsequently transmitted drawings depicting the preliminary sidewalk layout within said easement to S-H by email and S-H forwarded copies to the Attorney. Mr. Barner stated that the he will research whether or not the District can grant the County’s request to pave the surface of the easement.
Mr. Humble reported that after reviewing the District’s water usage for the last twelve (12) months, S-H doubts the Harris-Galveston Subsidence District would permit a significant increase in the District’s groundwater withdrawal permit for 2018, but the Operator will request the maximum amount available. Mr. Humble went on to report that S-H recommends the Board instruct the Operator to use the District’s well to pay back the 3.295 million gallons owed to Greenwood, when appropriate, in 2018. Mr. Humble added that the payback period should take approximately one (1) week depending on the time of the year.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig updated the Board regarding the District Building Repair Project. Director Rettig reported that the flooring and breakroom cabinets have been installed. Mr. Rettig also reported the items currently in storage can be moved back into the building. Mr. Rettig noted that a new refrigerator and computer are also needed.
DISTRICT WEBSITE REPORT
Director Balderas reported that a notice was published on the District website regarding trash collection during the Thanksgiving holiday.
Mr. Barner first updated the Board regarding the Sunrise Plastic annexation.
Next, Mr. Barner reminded the Board of special meetings on December 5, 6 and 11, 2017, for review of the District’s Bookkeeper, Engineer and Operator, respectively.
Mr. Barner distributed Bond Compliance Reports prepared by Arbitrage Compliance Specialists and asked the Board to review the report and to contact him with any questions.
MAY 2018 DIRECTORS ELECTION
Mr. Barner first discussed the deadline to file an application for a place on the ballot for the May 5, 2018 Directors Election. Mr. Barner stated that the Notice of Deadline to File Applications for a Place on the Ballot must be posted by December 18, 2017. Mr. Barner stated that the first day which applications can be accepted is January 17, 2018, and the application deadline is 5:00 p.m. on Friday, February 16, 2017.
Next, Mr. Barner discussed appointment of a designated agent for the May 5, 2017 Directors Election (the “Election”).
Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board authorized Radcliffe Bobbitt Adams Polley PLLC to post the Notice of Deadline to File Applications for Place on Ballot; and appointed Radcliffe Bobbitt Adams Polley PLLC as the District’s designated agent for the May 5, 2018 Election.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 19th day of December, 2017.
Secretary, Board of Directors