PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
JANUARY 24, 2018
The Board of Directors (the “Board” or “Directors”) of Parkway Utility District (the “District”) met in regular session, at 6:30 p.m., at 12843 Tidwell Road, Houston, Texas, on Wednesday, January 24, 2018, 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”); John Sherrington of Sherrington-Humble LLC (“Engineer” or “S-H”); Rebecca Marcucci and Charlie Chapline of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Mary Dubois of Acclaim Energy Advisors; Monique Hayes of Eco Waste and Recycling (“Eco”); Gary Syzek of Systems Project Management; Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons listed 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’ Report
Ms. Dubois distributed a pricing report, a copy of which is attached hereto, and stated that the Board entered into a 48-month contract at a rate of $0.05750 which will expire in May 2019. Ms. Dubois went on to state that Hudson Energy is currently offering the lowest rate, however, the General Land Office (the “GLO”) is offering the highest savings because no pass-through fees are being charged. Ms. Dubois recommended the Board enter into a contract with the GLO at a rate not to exceed five percent (5%) beginning May 2019.
Director Balderas, Mrs. Marcucci and Mr. Chapline entered the meeting at this time.
Discussion ensued regarding proposed rates. Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved a contract with the GLO for a term of sixty (60) months at a rate not to exceed five percent (5%) of the rate available as presented in the proposed contract, effective May 2019.
Ms. Hayes entered the meeting at this time.
Eco Waste & Recycling REPORT
Ms. Hayes then presented the Eco Monthly Report, a copy of which is attached hereto, and reported about the ongoing effort regarding acceptable and non-acceptable garbage and recycling. Ms. Hayes suggested that in an effort to help the District’s customers, Eco could set a date in the future for one (1) day to drive through the District for heavy trash collection. Ms. Hayes noted that such heavy trash collection would be an additional cost to the District, a cost that Ms. Hayes would provide to the Board at a future date.
Director McNeil discussed her conversations with Dru Gutierrez with Harris County Precinct One (1) about collection of storm and construction debris by Harris County (the “County”). Director Rettig stated that collection of storm and construction debris is an ongoing problem since Hurricane Harvey (“Harvey”). Ms. Hayes reported that each week Eco is collecting heavier than usual garbage. Ms. Hayes offered to prepare a proposal providing heavy garbage collection options and costs for the Board’s consideration. Discussion then ensued about hanging door tags at houses with curbside debris. Mr. Chapline recommended that Eco provide verbiage for the door tags and MDS will assign one (1) MDS employee to hang the door tags.
Upon a motion by Director Everhart, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board authorized distribution of door hangers to affected customers and directed Eco and MDS to coordinate an appropriate language for such hangers.
Patrol Service Report
Deputy Ganey presented and reviewed with the Board the Patrol Service Report for December 2017, a copy of which is attached hereto. Deputy Ganey discussed the Environmental Crime Unit that was formed to combat the illegal dumping of trash, tires, liquids and other solid waste in north Harris County.
Ms. Dubois exited the meeting at this time.
INTERLOCAL AGREEMENT FOR LAW ENFORCEMENT SERVICES
The Board next discussed approving the Interlocal Agreement for Law Enforcement Services between the County and the District (the “Agreement”), for patrol services for 2018. Mr. Barner presented the Agreement for approval and execution, which is for a term of one (1) year, effective beginning March 1, 2018, and ending on February 28, 2019, a copy of which is attached hereto.
Upon motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Agreement effective March 1, 2018 through February 28, 2019.
Deputy Ganey exited the meeting at this time.
The President then directed the Board to consider the approval of the minutes of the special meetings held on December 5, 2017 and December 6, 2017, the workshop meeting held on December 14, 2017, and the regular meeting held on December 19, 2017. Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the minutes of the special meetings held on December 5, 2017 and December 6, 2017, the workshop meeting held on December 14, 2017, and the regular meeting held on December 19, 2017, as presented.
Systems Project Management Report
Mr. Syzek presented the Systems Project Management Report, a copy of which is attached hereto. Mr. Syzek first provided an update regarding traffic signal installation in the District and reported that he is coordinating the ribbon-cutting ceremony with Precinct One (1) on February 20, 2018, between 3:30 p.m. and 4:30 p.m.
Next, Mr. Syzek reported that the two (2) oak trees from behind the Administration Building were relocated to the Stonefield Terrace Subdivision playground pocket park.
Mr. Syzek then presented a proposal from LHD Tree Service (“LHD”) for tree trimming at the Administration Building in the amount of $2,550. Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board accepted LHD’s proposal for tree trimming at the Administration Building in the amount of $2,550, subject to receipt of a Form 1295 Certificate of Interested Parties and requisite insurance certificate.
Mr. Syzek next reported that the Greens Bayou Coalition meeting was canceled due to inclement weather. Mr. Syzek discussed landscape architects.
Mr. Syzek then informed the Board that Monahan Elementary School does not have available time for a Water Wise presentation during the current school year. It was the consensus of the Board to sponsor a school in the District that wants a Water Wise presentation.
Mr. Diaz exited 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 50.60% of the 2017 taxes have been collected as of December 31, 2017.
Ms. Yanez next reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report.
Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented; and authorized payment of checks numbered 1923 through 1928 from the Tax Account, with check number 1864 being voided.
Mr. Sherrington next reviewed the Engineer’s Report, a copy of which is attached hereto. Mr. Sherrington first reported that S-H received approval of the Beltway 8 Waterline Extension Project from the Texas Commission on Environmental Quality (“TCEQ”) and the Texas Department of Transportation (“TxDOT”). Mr. Sherrington also reported that S-H is in the process of obtaining approvals from the City of Houston (the City”) and the County. Mr. Sherrington discussed the tentative advertising and bid schedule.
Mr. Sherrington reported that S-H received and forwarded Texas Engineering and Mapping Co. (“TEAM”) information to Center Point Energy (“CP”) to complete CP’s Consent to Encroachment survey. Mr. Sherrington next reported that S-H received TEAM’s invoice No. 8697 in the amount of $750 and forwarded such invoice to the Bookkeeper.
Mr. Sherrington then reported that S-H sent CES Utilities, Inc. (“CES”) a letter itemizing the remaining punch list items for the ten-inch (10″) Force Main and
twelve-inch (12″) Waterline Project along Deep Valley (the “Force Main and Waterline Project”) and CES responded by email. Mr. Sherrington indicated that S-H will follow-up with CES. Mr. Sherrington went on to report that Sean Humble met with District resident, Michelle Green, on January 12, 2018, regarding repairs to her yard. Mr. Sherrington informed the Board that S-H instructed CES in writing to furnish and place sand and sod to level out low places in Ms. Green’s yard. Mr. Sherrington added that CES responded to S-H that CES met with Ms. Green on June 26, 2017, repairs to Ms. Green’s yard were completed in June 2017 and Ms. Green’s current issues are related to installation of a new mailbox not related to work performed by CES.
Mr. Sherrington reported that S-H received Source Point Solutions, LLC’s Invoice No. 54222 in the amount of $1,524 and forwarded such invoice to the Bookkeeper.
Mr. Sherrington updated the Board regarding the Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project and reported that S-H received bids from two (2) contractors for such project. Mr. Sherrington presented the Bid Tabulation, a copy of which is attached hereto, and reported that Chief Solutions, Inc. (“Chief”) was the low bidder in the amount of $23,090.00. Mr. Sherrington next reported that since the Board requested that S-H only obtain quotes, S-H did not expend additional labor and expense to prepare a set of bid documents required by the County for review and approval. Mr. Sherrington went on to report that the contractor will need a set of plans approved by the County in order to obtain the necessary permit for working within the County’s right-of-way along Tidwell Road. Discussion ensued.
Regarding the Water Plant Improvements Project, Mr. Sherrington reported that Tidal Construction, Inc. (“Tidal”) commenced work on the parking lot, the foundation for the natural gas generator, site drainage and removal of the bolted galvanized tank.
Mr. Sherrington next reported that Mr. Humble attended a construction progress meeting with Tidal and Project Surveillance, Inc., the inspector, at the project site on January 12, 2018. Mr. Sherrington presented the meeting minutes, a copy of which is attached to his report, to the Board. Mr. Sherrington noted that Tidal will not be in a position to schedule taking down the plant until the electrical submittal has been submitted, reviewed and approved. Mr. Sherrington reported that S-H received Tidal’s Pay Estimate No. 1 in the amount of $55,350 and recommended payment of same to Tidal.
Mr. Sherrington next reported that Sunrise Holding Company, LLC’s (“Sunrise”) engineer submitted revised drawings previously approved by the County to S-H for review and approval. Mr. Sherrington informed the Board that S-H suggested Sunrise engage S-H for design of the extension of the District’s water and wastewater collection facilities from Sierra Ranch to Sunrise’s tract. Mr. Sherrington noted that S-H provided Sunrise the opportunity to hire S-H’s surveyor to obtain the topographic information to facilitate the design of the facilities or contract through S-H.
Mr. Sherrington then reported that in response to a request by the owner of
5.842-acres of land located at the northeast quadrant of C. E. King Boulevard and Tidwell Road, S-H prepared and submitted the District’s form letter providing procedures for obtaining approval of civil engineering site plans.
Mr. Sherrington then reported that S-H received a request from a broker to annex three (3) parcels of land located on the east side of Beltway 8, south of Little York and north of the Hornberger tracts. Mr. Sherrington went on to report that S-H informed the broker that the District plans to annex land in the vicinity of the three (3) parcels and is prepared to provide utilities at the rate of 12 equivalent single-family connections per acre. Mr. Sherrington also reported that S-H informed the broker that funds would have to be deposited with the District’s Bookkeeper for an annexation feasibility analysis. Mr. Sherrington added that to-date he has not heard back from the broker.
Messrs. Sherrington and Barner next discussed the visibility at the entrance to Sunrise Pines Subdivision. S-H explained that clearing and grubbing the entrances will occur when the Beltway 8 water line extension commences.
Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved Tidal Pay Estimate No. 1 in the amount of $55,350; and 3) awarded the contract for Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project to Chief, subject to receipt of a Form 1295 Certificate of Interested Parties.
Ms. Yanez 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 8.07 months’ operating reserve.
Regarding check number 8927, Mrs. Marcucci recommended holding the deposit refund check payable to Pulte Homes LP.
Next, Mr. Barner discussed joint facility invoices from FSG Information Systems, LP. Discussion ensued regarding available interest earnings and interest earned from the District’s bonds. Mr. Barner asked that the Operator and Engineer review projects for which the available earnings could be applied. Mr. Barner indicated that such money should be used on projects that have already been approved by the TCEQ. It was also noted that once the Force Main and Waterline Project is finalized, there should be approximately $100,000 in surplus funds.
Upon a motion by Director Balderas, 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 8877 through 8942 from the General Fund; and
2) authorized payment of checks numbered 1703 through 1706 from the Capital Projects Fund.
The Operator’s Report was presented by Mr. Chapline and Mrs. Marcucci, a copy of which is attached hereto. Mr. Chapline first presented a Harvey spreadsheet. It was the consensus of the Board to first review the information presented and then schedule a special meeting to discuss such information in more detail. Next, Mrs. Marcucci discussed recurring monthly costs, as well as billing and delinquent customer bills, which are audited by MDS and the Bookkeeper.
Mr. Chapline reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 91.6% of water billed to customers.
Repairs and preventative maintenance performed at the water plant, water distribution system, sanitary and storm sewer collection systems, and lift station were next discussed, including repair of the clarifier drive and motor at the wastewater treatment facilities. It was noted that repair of the clarifier drive and motor is included in the Harvey claims since such repairs, along with replacement of the generator and transfer switch, were damaged by Harvey.
Mrs. Marcucci then reported concerning the Write-Off List dated December 27, 2017, identifying two (2) accounts totaling $185.48 for the Board’s approval. Mrs. Marcucci noted that during 2017, there were approximately $7,000 in write-offs and added that deposits were applied to such written-off accounts. In response to a question, Mr. Chapline stated that $7,000 in write-offs is not bad due to the size of the District and the number of rental properties in the District. Mrs. Marcucci added that due to Harvey, write-offs may increase in 2018.
Mrs. Marcucci next reported that the Delinquent Letter Accounts Listing Due January 16, 2018, is attached to the Operator’s Report.
Mr. Chapline stated that he would like to schedule a special meeting to review District operations matters and that MDS would circulate an email about dates for such meeting.
Director Rettig inquired regarding grease problems and Mr. Chapline responded that only two (2) grease-related instances occurred in 2017.
It was next reported that signage at the joint facilities showing the names of the District and Greenwood Utility District (“Greenwood”) would be approximately $60 per sign.
Upon a motion by Director Rettig, 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 Joint Facilities report
Mr. Sherrington stated that a Joint Facilities Report would not be presented at tonight’s meeting since it was discussed at the joint meeting with Greenwood on January 23, 2018.
Ms. Hayes exited the meeting at this time.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig reported that internet service to the Administration Building will be reconnected tomorrow. Discussion ensued regarding cleaning and sealing the floor.
Mr. Chapline asked Director Rettig about maintenance records for the Administration Building and Ms. Bailey stated that she would provide information to Mr. Chapline.
DISTRICT WEBSITE REPORT
Director Balderas had nothing new to report.
Regarding the Sunrise Plastic annexation, Mr. Barner requested that the Board accept the Petition for Annexation of Land and approve the Petition for Consent to the City, copies of which are attached hereto. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board accepted the Petition for Annexation of Land and approved the Petition for Consent to the City.
Director Balderas exited the meeting at this time.
Mr. Barner next reminded the Board that he had requested comments to the Regional Wastewater Facilities Agreement with Greenwood.
Mr. Barner then presented a premium summary related to renewal of the insurance policy with McDonald & Wessendorff Insurance and noted a premium decrease in the amount of $373.
MAY 2018 DIRECTORS ELECTION
Mr. Barner presented a One-Time Rental of Equipment, Sale of Services and License of Software agreement for the rental of iVotronic equipment for the Election from Election Systems and Software (the “ES&S Agreement”), a copy of which is attached hereto.
Mr. Barner presented an Order Calling the May 5, 2018 Directors Election (the “Order”) for the Board’s review and approval, a copy of which is attached hereto.
Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the ES&S Agreement and adopt the Order.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 20th day of February, 2018.
Secretary, Board of Directors