PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
FEBRUARY 6, 2018
The Board of Directors (the “Board” or “Directors”) of Parkway Utility District (the “District”) met in special session, at 6:30 p.m., at the District’s office located at 12843 Tidwell Road, Houston, Texas, on Tuesday, February 6, 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. Also attending were Charlie Chapline, Rebecca Marcucci and Jalene Palmer of Municipal District Services (“Operator”); Gary Syzek of Systems Project Management; 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.
Mr. Chapline first presented a spreadsheet regarding facilities damaged by Hurricane Harvey, including costs incurred for repairing such facilities, a copy of which is attached hereto. Mr. Chapline reported that the District’s insurance will pay the expenses for such damages and that the Federal Emergency Management Agency (“FEMA”) is expected to pay the insurance coverage deductible. Discussion then ensued regarding payment for expenses incurred as a result of damages at the Regional Wastewater Treatment Plant (“RWWTP”) and Surface Water Transmission Facility (“SWTF”). Mr. Barner stated that the District’s Bookkeeper should ensure that it obtains information related to the expenses incurred and paid for such damages, including when funds are received from the insurer, the amount of such funds, what the funds are paying for, and where the funds are deposited in the joint RWWTP account. In response to a question, Mrs. Marcucci explained that Greenwood Utility District’s administrative building, which is located at the RWWTP site, has insurance coverage separate from that of the RWWTP and that the District is not paying for damages to such building.
Mrs. Marcucci then presented information regarding various vendors that provide services to MDS related to operation and maintenance of the District’s facilities, a copy of which is attached hereto. Discussion ensued regarding vendors and the administrative fees assessed by MDS related to oversight of such services. Mrs. Marcucci next discussed the requisite equipment purchased by MDS for routine District operations, including meters, meter boxes chemical, etc. Mrs. Marcucci reminded the Board the invoices for such equipment and services are provided to the District’s Bookkeeper and presented to the Board monthly for payment and to not hesitate to ask should the Board have any questions regarding such invoices.
Next, Mrs. Marcucci reviewed the District’s Rate Order, including service rates and groundwater fees. Discussion ensued regarding such rates and fees. Mr. Barner reminded the Board that the District’s Financial Advisor suggested increasing the administrative fee for purchase of surface water from the City of Houston from 10 percent (10%) to 15 percent (15%). It was the consensus of the Board that it review potential increases to such rates and fees in the April regular Board meeting.
Ms. Palmer then reviewed the District’s monthly bills to customers for service and reviewed delinquent fees for late and nonpayment of such bills. Discussion then ensued on the timing of such billings and termination of accounts for nonpayment, including whether or not the deposit amount for customer accounts should be increased. Mr. Chapline then reported that write-offs for 2017 totaled approximately $7,000. Mr. Chapline also reported late payment fees for December totaled $4,100.
Mrs. Marcucci next presented the District’s welcome letter to customers applying for new service; Ms. Palmer explained the process of applying for service. Ms. Palmer suggested that an additional $50 deposit be required every time service is terminated in order to incentivize greater on-time payments. Discussion ensued and it was the consensus of the Board to discuss such deposit further when it considers changes to its Rate Order in the April regular Board meeting. Mrs. Marcucci asked that Mr. Syzek review the Rate Order and provide the Board with additional recommendations.
Discussion then ensued regarding the District’s ongoing efforts to make customers aware of the damages that grease causes to the District wastewater collection and treatment system. In response to a question on whether or not the District could assess additional charges in areas or to multifamily and commercial accounts that were found to be responsible for excessive grease deposits, Mr. Barner reminded the Board that such charges could be assessed, but that the District needs to be able to provide an explanation regarding such additional charges and point to evidence that such excessive deposits were caused by those account holders.
Pursuant to Chapter 551 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 7:59 p.m. to discuss real estate matters and matters within the attorney/client privilege. Present for the Executive Session were the Board of Directors of the District, Mr. Barner and Ms. Brewer.
Reconvene in Open Session
As of 8:12 p.m., the President declared the Executive Session was ended and the public session was resumed.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 20th day of March, 2018.
Secretary, Board of Directors