PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
FEBRUARY 20, 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 Tuesday, February 20, 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: 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, Charlie Chapline and Austin Muse of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Danielle Smith of Eco Waste and Recycling (“Eco”); Gary Syzek of Systems Project Management; Michael Murr of Murr Incorporated; 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.
Public Comment
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.
Eco Waste & Recycling REPORT
Ms. Smith then presented the Eco Monthly Report, a copy of which is attached hereto.
Minutes
The President then directed the Board to consider the approval of the minutes of the regular meeting held on January 24, 2018, the workshop meeting held on January 11, 2018, and the special meetings of January 10, 2018, January 22, 2018 and January 23, 2018. Upon a 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 regular meeting held on January 24, 2018, the workshop meeting held on January 11, 2018, and the special meetings of January 10, 2018, January 22, 2018 and January 23, 2018, as presented.
Systems Project Management Report
Mr. Syzek presented the Systems Project Management Report, a copy of which is attached hereto. Mr. Syzek first reported that the ribbon-cutting ceremony (the “Ceremony”) with Harris County Precinct No. 1 (“Precinct 1”) to honor those responsible for traffic signal installation along Tidwell Road at its intersections with Van Hut Lane and Deep Valley Drive is scheduled for March 8, 2018, at 4:00 p.m. Mr. Syzek recommended that the District provide notice to customers about the Ceremony through the District’s website. Mrs. Marcucci added that MDS could send an e-blast to subscribers. Director McNeil offered to contact the District’s community improvement associations too. It was the consensus of the Board to take the above-mentioned actions to make customers aware of the Ceremony.
Mr. Murr entered the meeting at this time.
Mr. Syzek next reported that Precinct 1 has conducted additional storm debris collection throughout the District although Precinct 1 had initially committed to only three (3) sweeps following Hurricane Harvey.
Mr. Syzek then reported that LHD Tree Service (“LHD”) completed the spring pruning of all the trees around the Administration Building and Seaback Maintenance finished restoring the mulch beds, as well as adding a barrier to keep the mulch from escaping the beds during rain events.
Mr. Syzek discussed traffic flow along the Beltway 8 service road. Discussion ensued regarding distribution of a petition to the Harris County Toll Road Authority (“HCTRA”) for installation of a traffic signal at the Beltway 8 service road and the future East Little York Road intersection. Mr. Syzek added that Dru Gutierrez from Precinct 1 suggested that HCTRA was the appropriate entity to petition for such signal. It was the consensus of the Board to prepare a petition to HCTRA and circulate amongst the Directors, neighborhood homeowners associations and Mr. Syzek; such petition would also be placed on the District’s website. Mr. Syzek indicated that he will obtain the name of a contact person at HCTRA. Mr. Syzek added that he will request a collision count and number of citations issued from Deputy Ganey in order to include such information with the petition to the HCTRA.
Mr. Syzek then reported regarding a new multi-family development proposed for the U.S. Homes tract near Tidwell Road and C.E. King Boulevard. Mr. Sherrington reported he would discuss such development and the request for service in more detail during his report.
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 84.51% of the 2017 taxes have been collected as of January 31, 2018.
Ms. Yanez next reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report. Ms. Yanez noted that delinquent tax notices were mailed.
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 1929 through 1935 from the Tax Account, with check number 1864 being voided.
Adopt Order Determining Ad Valorem Tax Exemptions
Mr. Barner first presented the Order Determining Ad Valorem Tax Exemptions, a copy of which is attached hereto, and the Board considered approval of tax exemptions for the 2018 tax year, including homestead exemptions, exemptions for residents 65 years of age and older, and exemptions for disabled residents, as reflected in same. Mr. Barner reported that last year, the Board granted a homestead exemption of twenty percent (20%) of the appraised value or $5,000, whichever is greater, and a $10,000 exemption for disabled persons and for persons 65 years of age or older; and stated that the District’s Financial Advisor and Tax Assessor-Collector recommended keeping the same exemptions for 2018. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Order Determining Ad Valorem Tax Exemptions.
Adopt Resolution Implementing Penalty on 2017 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes
Mr. Barner then explained that pursuant to the Texas Property Tax Code, the District may levy an additional twenty percent (20%) penalty on 2017 personal property taxes that remain delinquent as of April 1, 2018, and delinquent 2017 real property taxes that remain delinquent as of July 1, 2018, to fund the legal costs of collection, if the Board has entered into an agreement with an attorney for the collection of delinquent taxes and if proper notice of such penalty is provided to property owners. Mr. Barner explained that the District has such an agreement with its Delinquent Tax Attorney, and follows the notice requirements of the Tax Code; therefore, by adopting a Resolution Implementing Penalty on 2017 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes, the District is legally able to collect such additional penalties on the delinquent 2017 personal property taxes as of April 1, 2018, and the real property taxes as of July 1, 2018. Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Resolution Implementing Penalty on 2017 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes, a copy of which is attached hereto.
Adopt Resolution Authorizing Petition Challenging Appraisal Records
Mr. Barner next presented the Resolution Authorizing Petition Challenging Appraisal Records, a copy of which is attached hereto. Mr. Barner explained that in order for the District’s Tax Assessor-Collector to represent the District in challenging appraisal records with the Harris County Appraisal District (“HCAD”), such resolution must be approved. Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Resolution Authorizing Petition Challenging Appraisal Records.
Engineer’s Report
Mr. Sherrington next reviewed the Engineer’s Report, a copy of which is attached hereto. Mr. Sherrington first reported that S-H received twelve (12) bids for the Beltway 8 Waterline Extension to Sunrise Pines project. Mr. Sherrington presented the Bid Tabulation and Recommendation to Award, copies of which are attached hereto, and reported that Reddico Construction Co., Inc. (“Reddico”) was the low bidder in the amount of $601,706.80.
Regarding the ten-inch (10″) Force Main and twelve-inch (12″) Waterline Project along Deep Valley (the “Force Main and Waterline Project”), Mr. Sherrington reported that CES Utilities, Inc. (“CES”) informed S-H that CES completed its work on the Force Main and Waterline Project. Mr. Sherrington next reported that he prepared Change Order No. 3 which represents back charges for irrigation repairs, videos of lines needing additional work and to balance CES’ bid versus actual quantities. Mr. Sherrington then reported that S-H received CES Pay Estimate No. 9 and Final from CES, a copy of which is attached hereto, in the amount of $49,933.16 which includes Change Order No. 3. Mr. Sherrington recommended that the Board instruct the Bookkeeper to hold final payment to CES until S-H has verified that CES has no outstanding liens. In response to a question, Mr. Sherrington stated that he is unaware of any resident issues related to clean-up. Mr. Sherrington went on to state that he and Sean Humble will not release the check to CES until a favorable response regarding the project is received.
Mr. Sherrington updated the Board regarding the Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project and reported that S-H prepared and submitted drawings of the project to Harris County (the “County”) for review and approval in order to obtain the necessary permit for working within the County’s right-of-way along Tidwell Road. Mr. Sherrington next reported that S-H issued the Notice of Award to Chief Solutions, Inc. (“Chief”). Mr. Sherrington went on to report that Chief executed the contract and furnished its bonds and certificate of insurance which have been sent to the Attorney for review and approval. Mr. Sherrington also reported that S-H will conduct the pre-construction conference with Chief, the inspector, and District Operator, at which time S-H will issue the Notice to Proceed to Chief.
Regarding the Water Plant Improvements Project, Mr. Sherrington reported that Tidal Construction, Inc. (“Tidal”) completed work on the parking lot and the foundation for the second hydro-pneumatic tank. Mr. Sherrington also reported that Tidal is working on the natural gas generator foundation and the new Permaglass ground storage tank. Mr. Sherrington went on to report that Tidal awaits the subcontractor to issue its submittals for S-H’s review and approval before replacing the existing gate with an automated gate. Mr. Sherrington added that S-H received Tidal’s Pay Estimate No. 2 in the amount of $64,350 and recommended payment of same to Tidal.
Mr. Sherrington then reported that due to recent flooding in the District, S-H modified the design for the Water Plant Improvement Project to raise the foundation for the motor control center, booster pumps and generator to 20-inches (20″) based on the six to eight-inches (6″ – 8″) of water that entered the District Administration Building during Hurricane Harvey. Mr. Sherrington added that Tidal is aware of the modifications and is working with S-H to achieve the goal.
Mr. Sherrington also reported that S-H received, reviewed and approved A&R Engineering and Testing Inc.’s Invoice No. 18C10318-02 in the amount of $882.75 and forwarded such invoice to the Bookkeeper.
Mr. Sherrington went on to report that S-H received, reviewed and approved Project Surveillance, Inc.’s Invoice No. 10985 in the amount of $3,346 and forwarded such invoice to the Bookkeeper.
Mr. Sherrington then reported that S-H received a letter dated February 5, 2018, from the Texas Commission on Environmental Quality (the “TCEQ”) declaring the District’s request for a Change in Project Scope to be administratively complete. Mr. Sherrington added that he expects to receive TCEQ approval soon.
Mr. Sherrington next reported that he met with a representative of Sunrise Holding Company, LLC’s (“Sunrise”) on February 13, 2018. Mr. Sherrington informed the Board that Sunrise wishes to wait on the design and extension of the District’s water distribution and wastewater collection facilities from Sierra Ranch to Sunrise’s tract until the annexation has occurred. Mr. Sherrington also reported that Sunrise wants S-H to approve Sunrise’s civil site design drawings so the District’s Operator can inspect the private facilities during its construction.
Mr. Sherrington then reported that the owner of the 5.842-acres of land located at the northeast quadrant of C. E. King Boulevard and Tidwell Road deposited a $1,500 check with the District’s Bookkeeper for the S-H’s review and approval of the civil site design for a 114 unit multi-family development. Mr. Sherrington went on to report that S-H provided copies of the District’s original utilities design drawings along Tidwell Road and C. E. King Boulevard to the civil site engineer.
Next, Mr. Sherrington reported that he is investigating the clearing of a 13.7-acre tract on Beltway 8.
Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, and acted on the following:
1) awarded the contract for the Beltway 8 Waterline Extension to Sunrise Pines project to Reddico;
2) approved CES Change Order No. 3 and CES Pay Estimate No. 9 and Final, and to hold the check subject to verification that CES has no outstanding liens and receipt of a favorable response regarding the project;
3) authorized execution of the contract for Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project with Chief; and
4) approved Tidal’s Pay Estimate No. 2 in the amount of $64,350.
Patrol Service Report
Deputy Ganey presented and reviewed with the Board the Patrol Service Report for January 2018, a copy of which is attached hereto.
Deputy Ganey existed 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 7.66 months’ operating reserve.
Upon a motion by Director Balderas, seconded by Director Woods, 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 8943 through 9017 from the General Fund; and
2) authorized payment of checks numbered 1707 through 1717 from the Capital Projects Fund.
Operator’s Report
The Operator’s Report was presented by Mr. Chapline and Mrs. Marcucci, a copy of which is attached hereto.
Mr. Chapline reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 90.1% 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.
Mr. Chapline reported that there was one (1) permit excursion at the WWTP related to a daily E. coli sample.
Mrs. Marcucci then reported concerning the Write-Off List dated January 24, 2018, identifying four (4) accounts totaling $1,708.60 for the Board’s approval. Mrs. Marcucci noted that one (1) of the accounts with a delinquent balance of $1,243.86 moved from the property due to Hurricane Harvey.
Mrs. Marcucci next reported that the Delinquent Letter Accounts Listing Due February 20, 2018, is attached to the Operator’s Report.
Ms. Yanez exited the meeting at this time.
Director Rettig inquired regarding grease problems and Mr. Chapline responded that there was one (1) grease-related instance during the previous month. Discussion ensued regarding televising the lines and educating the District’s customers on an annual basis about the disposal of grease into the District’s sanitary sewer system. Mrs. Marcucci indicated that the Operator will revisit the District map and list of areas with grease-related issues, including those on Cinder Cone, Deep Valley, Van Hut and Hunter’s Field Lane. Mr. Chapline reported that he will present costs regarding customer education and televising the lines at the next Board meeting. Mr. Chapline next stated that he will also present information to the Board regarding the Sanitary Sewer Overflow Initiative at the next Board meeting.
At this time, Mrs. Marcucci presented proposed changes to the District’s Rate Order, a copy of which is attached hereto, and reviewed same with the Board. Discussion ensued.
Discussion next ensued regarding the proposed Rutherford development. Director McNeil asked Mr. Sherrington about his communications with Mr. Bartholomew and expressed her concerns about the new development.
Upon a motion by Director Balderas, seconded by Director Woods, 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 presented the Joint Facilities Report, a copy of which is attached hereto.
Mr. Sherrington first reported that he provided the Attorney with his comments to the Amended and Restated Regional Wastewater Facilities (“RWWTP”) Agreement with Greenwood Utility District (“Greenwood”).
Mr. Sherrington next discussed rehabilitation of the RWWTP discharge pipe and reported that RAC Industries, LLC planned to remobilize the site on February 19, 2018, to place additional fill material as required by Harris County Flood Control District.
Concerning the proposed expansion of the RWWTP, Mr. Sherrington reported that he attended a preliminary design discussion meeting with two (2) engineers from A&S Engineers, Inc. (“A&S”) and the District Operator on February 6, 2018. Mr. Sherrington also reported that the meeting was very informative and well received by the attendees. Mr. Sherrington added that a copy of the meeting minutes will be transmitted to the Directors and Consultants subsequent to the meeting.
Mr. Sherrington also informed the Board that he had met with Ronald Anderson from A&S onsite at the RWWTP today and received the A&S proposal for design of the RWWTP expansion (the “Proposal”). Mr. Sherrington reminded the Board that as previously discussed with both the Board and Greenwood’s Board of Directors, such Proposal included engineering consulting services that S-H would provide to A&S on behalf of the District in order to ensure the District’s concerns for such design were addressed properly. Mr. Barner added that he received the Proposal via email from A&S that afternoon and could not recommend approval of the Proposal at this time because of the timing of its receipt. Mr. Barner further stated that he would update the Board at the next meeting after he had sufficient time to review the Proposal.
Mr. Sherrington then discussed his concerns regarding the County Tidwell Road Improvements project, including the District’s 12-inch (12″) water line on the north side of Tidwell Road. Mr. Sherrington recommended the Board authorize the Operator to excavate and locate the exact depth of the 12-inch (12″) water line to determine if the line needs to be relocated prior to the County’s installation of the proposed culvert.
Mr. Sherrington discussed the Joint Facilities Report prepared by A&S, a copy of which is attached hereto, and noted there were no action items for the Board on such report.
Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Joint Facilities Report and authorized the Operator to excavate the 12-inch (12″) water line on Tidwell Road.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig reported that he continues his attempts for internet service to the Administration Building. Director Rettig also reported that the floors will be cleaned and sealed on February 22, 2018.
Attorney’s Report
Mr. Barner first reported that he received Mr. Sherrington’s comments to the Amended and Restated RWWTP Agreement with Greenwood.
Regarding the Sunrise Plastic annexation, Mr. Barner explained that he is working with the Engineer regarding additional land to be included in the Sunrise Plastic annexation.
Mr. Barner discussed renewal of the insurance policy with SIG/McDonald & Wessendorff Insurance (“McDonald”) and optional workers compensation, peace officer bond and cyber liability policies. Mr. Barner reported that workers compensation coverage is not needed and peace officer coverage is not necessary. Mr. Barner also reported that in his opinion, the District’s Consultants should have their own cyber liability insurance coverage. Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board agreed to renew the policy with McDonald with a premium of $14,185.
The Board then discussed attendance at the Association of Water Board Directors (“AWBD”) Spring Breakfast and AWBD Summer Conference. Upon a motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized all Directors to attend the AWBD Spring Breakfast on April 20, 2018, in Houston, Texas and AWBD Summer Conference in San Antonio, Texas, June 21 through June 23, 2018, on behalf of the District.
Director Balderas exited the meeting at this time.
Next, Mr. Barner requested the Board ratify approval of the Center Point Energy Consent to Encroach Agreement, which is required for the Beltway 8 water line project. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board ratified approval of the Center Point Energy Consent to Encroach Agreement.
Mr. Barner then reported that Senate Bill 625, 85th Texas Legislature, requires the implementation of a Special Purpose District Public Information Database. Mr. Barner explained that the Texas State Comptroller’s (the “Comptroller”) office is creating the required database and is, therefore, requiring the annual filing of certain financial and tax-related information by all Special Purpose Districts. Mr. Barner noted that such information must be filed with the Comptroller annually by May 1, 2018. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board authorized the Attorney to file the required financial and tax-related information with the Comptroller by May 1, 2018.
Mrs. Marcucci exited the meeting at this time.
MURR INCORPORATED PRESENTATION
Mr. Murr first discussed the services provided by Murr Incorporated.
Mr. Murr next discussed the November 2018 Park Bond Election and stated that he has experience in preparing park plans. Mr. Murr proposed preparing a park plan, drawings and renderings for presentation at town hall meetings. Mr. Murr stated that his proposal will be emailed to Mr. Barner. Mr. Barner stated that he will review the proposal and forward it to the Board. Mr. Murr stated that the fee for his services is $1,250 per month. Mr. Murr recommended scheduling special meetings to discuss the use of the park bond proceeds. Mr. Sherrington added that in the event the Park Bond Election passes, the District will have to request authorization from the TCEQ to issue any authorized bonds.
MAY 2018 DIRECTORS ELECTION
Mr. Barner explained that since the incumbent Directors are unopposed, the District is not required to hold a May 5, 2018 Directors Election. Mr. Barner stated that an Order Declaring Unopposed Candidates Elected to Office and Canceling Election will be presented at the March regular Board meeting.
Mr. Barner reminded the Board of the special joint meeting at Greenwood’s Administration Building on February 21, 2018, to discuss the recent condemnation hearing held for acquisition of the surface water facilities site.
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
Feburary 20, 2018 Minutes Signature