PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
MARCH 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, March 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, except for Director Balderas. Also attending were: Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”); Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”); 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”); Danielle Smith 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.
Donna Beveridge and Channing James, representatives of the Stonefield Terrace Homeowners Association (“STHOA”), requested the Board’s assistance with a landscape design plan for a STHOA park (the “Park”). Ms. Beveridge next presented a conceptual rending of the Park. Discussion ensued. Mr. Syzek suggested planting trees donated by the Apache Corporation. Mr. Barner informed Ms. Beveridge that the Board is currently in the process of engaging a landscape architect and would discuss the Park and STHOA’s request further.
Next, Catheline Fuselier stated that she received a $744 utility bill. Ms. Fuselier informed the Board that upon receipt of the bill, she spoke with her landlord since she was not living in the house while repair work was performed due to Hurricane Harvey. Mr. Chapline reported that Ms. Fuselier’s account had a $0 balance during the months of October through December because water service was off. However, service was re-activated in December. Mr. Chapline went on to report that in February, the meter registered 56,000 gallons and there was no evidence of an external leak. Mr. Chapline explained that the District incurs costs to provide water service to the District’s customers and it is the Board’s decision to reduce the water bill or offer a payment plan. Mr. Barner asked Ms. Fuselier to allow the Board time to make a decision regarding her account.
As no further 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. Mr. Barner asked that Ms. Smith explained Eco’s most recent delayed in solid waste collection. Ms. Smith responded that two (2) trucks were out of service and that Eco had to collect on Tuesday morning to complete Mondays scheduled collection.
Patrol Service Report
Deputy Ganey presented and reviewed with the Board the Patrol Service Report for February 2018, a copy of which is attached hereto. Deputy Ganey reported that abandoned vehicles are being moved from the District and contract deputies will take a class on vehicle abatement.
Deputy Ganey exited the meeting at this time.
The President then directed the Board to consider the approval of the minutes of the regular meeting held on February 20, 2018, the workshop meeting held on February 8, 2018, and the special meeting of February 6, 2018. Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting held on February 20, 2018, the workshop meeting held on February 8, 2018, and the special meeting of February 6, 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 regarding the ribbon-cutting ceremony (the “Ceremony”) on March 8, 2018.
Mr. Syzek next reported that Precinct 1 will lead a volunteer drive to repair the medians along Tidwell Road that were damaged by high profile rescue vehicles during Hurricane Harvey.
Mr. Syzek then reported that Apache Corporation has approved a grant of 100 five (5) gallon trees to the District.
Mr. Syzek discussed the number of signs at the intersection of Tidwell Road and C. E. King Parkway. Ms. Beveridge stated that she has spoken to Deotis Gay with Harris County, Precinct 1, regarding installation of a “do not post” sign at the intersection.
Mr. Syzek reported that the Harris County Flood Control District has repaired three (3) damaged storm drainage outfall pipes that are located near the Greenwood Utility District (“Greenwood”) off-site lift station.
Mr. Syzek presented information regarding the Association of Water Board Directors (“AWBD”) Spring Membership Breakfast on April 20, 2018.
Ms. Beveridge, Mr. James, Ms. Travers and Ms. Fuselier 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 94.16% of the 2017 taxes have been collected as of February 28, 2018.
Ms. Yanez next reported that the Delinquent Tax Roll and Delinquent Tax Report are attached to the Tax Assessor-Collector’s Report. Ms. Yanez noted that the Delinquent Tax Roll includes 2017 delinquent taxes. Ms. Yanez also reported that the Delinquent Tax Attorney asked the Operator to tag three (3) properties where property owners made commitments to pay delinquent taxes, but failed to pay as promised, and service will be terminated on March 27, 2018, if such taxes are not paid.
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 1936 through 1939 from the Tax Account.
Mr. Barner next reviewed the Engineer’s Report, a copy of which is attached hereto. Mr. Barner first reported that the award letter was issued to Reddico Construction Co., Inc. (“Reddico”) for the Beltway 8 Waterline Extension to Sunrise Pines Project. Mr. Barner reported that bonds and insurance need to be reviewed.
Regarding the ten-inch (10″) Force Main and twelve-inch (12″) Waterline Project along Deep Valley (the “Force Main and Waterline Project”), Mr. Barner reported that a memorandum was sent to CES Utilities, Inc. and once CES has satisfactorily addressed project deficiencies, the Bookkeeper will release the final payment to CES.
Mr. Barner updated the Board regarding the Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project.
Regarding the Water Plant Improvements Project, Mr. Barner reported that Tidal Construction, Inc. (“Tidal”) is installing the twelve-inch (12″) waterline along the east side of the District Administration Building to the twelve-inch (12″) distribution line in the Tidwell Road right-of-way. Mr. Barner also reported that an application was made to CenterPoint Energy for the gas service line to run the new generator.
Mr. Barner reported that Texas Engineering and Mapping Invoice No. 8818 in the amount of $750 was received, reviewed, approved and forwarded to the Bookkeeper for payment.
Mr. Barner next reported that A&R Engineering and Testing Inc.’s Invoice No. 18C10318-03 in the amount of $751.25 was received, reviewed, approved and forwarded to the Bookkeeper for payment.
Mr. Barner then reported that Project Surveillance, Inc.’s Invoice No. 11015 in the amount of $3,340 was received, reviewed, approved and forwarded to the Bookkeeper for payment.
Mr. Barner presented Tidal’s Pay Estimate No. 3 in the amount of $40,500 for the Board’s approval.
Mr. Barner reported that it has been determined that the District’s pedestrian bridge is not presently included in the District’s existing insurance coverage.
Mr. Barner discussed the Forest Park Apartments and reported that the civil site engineer has provided a means to download design drawings after receiving review comments from the City of Houston and CenterPoint Energy, although such comments have not been received from Harris County to-date.
Regarding the 5.842-acres of land located at the northeast quadrant of C. E. King Boulevard and Tidwell Road, Mr. Barner reported that no one has contacted his office to-date.
Mr. Barner then reported regarding a utility inquiry tract of land located at the northwest quadrant of Beltway and Little York Road. Mr. Barner noted that this is the same tract of land previously inquired about by UTI-Patterson. The requestor was informed that the District is preparing to install a twelve-inch (12″) public waterline which could possible serve the tract, although there are no current plans that would enable the District to provide wastewater collection services to such tract.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, and approved Tidal’s Pay Estimate No. 3 in the amount of $40,500.
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 8.26 months’ operating reserve.
Director Rettig inquired regarding payment to AT&T for office internet service. Ms. Bailey responded that she would check with Judy Osborn in her office regarding such payment and report back to the Board. Discussion ensued.
Upon a 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 9018 through 9082 from the General Fund; and
2) authorized payment of checks numbered 1718 through 1724 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 reported regarding a request for relief from District customer, Rosa Clay, for a high water bill as a result of a water leak due to freezing weather. The Board asked Mr. Chapline to offer Ms. Clay a payment plan and a $70 credit since the water did not enter the sewer system.
Mr. Chapline reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 90.2% 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 discussed electrical issues due to construction at the Water Plant which resulted in low water pressure.
Mr. Chapline reported that there was one (1) permit excursion at the WWTP.
Mr. Chapline next discussed televising three (3) line segments and reported that he will present a report of the findings to the Board.
Mrs. Marcucci then reported concerning the Write-Off List dated February 27, 2018, identifying nine (9) accounts totaling $1,350.78 for the Board’s approval.
Mrs. Marcucci next reported that the Delinquent Letter Accounts Listing Due March 20, 2018, is attached to the Operator’s Report.
Mr. Chapline reported that also attached to his report is the Identity Theft Prevention Program Annual Review and stated that the District has had no issues related to this matter other than a general recommendation that the District discontinue the availability of an unprotected drop box.
It was recommended that the Board delay amending the Rate Order at this time. Discussion ensued regarding the City of Houston rate increase and scheduling a special meeting to discuss the Rate Order.
Ms. Yanez exited the meeting at this time.
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, authorized write-offs and terminations and approved cleaning and televising three (3) line segments.
Parkway/Greenwood Joint Facilities report
Mr. Barner presented the Joint Facilities Report, a copy of which is attached hereto, and discussed his conversation with A&S Engineers, Inc. (“A&S”) about scheduling a meeting with the Board to provide a comprehensive review of the Wastewater Treatment Plant (“RWWTP”). Discussion ensued regarding the scheduling of such meeting.
Mr. Barner next discussed rehabilitation of the RWWTP discharge pipe and recommended the Board’s concurrence to approval and payment by Greenwood of RAC Industries, LLC’s (“RAC”) Pay Estimate No. 4 in the amount of $18,050.00.
Upon a motion by Director Everhart, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board concurred with Greenwood’s payment of RAC’s Pay Application No. 4 in the amount of $18,050.00 for the RWWTP discharge pipe project.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig reported that he continues his attempts for internet service to the Administration Building and discussed his conversations with AT&T. Ms. Bailey stated that she will contact Director Rettig before making the next payment to AT&T.
Regarding the Sunrise Plastic annexation, Mr. Barner discussed the discrepancy in acreage on the map and information received from Sunrise Plastic. Mr. Barner reported that Sunrise Plastic is trying to acquire property by adverse possession.
Mr. Barner inquired regarding the Board’s interest in participating in the WaterSmart program and Mr. Chapline presented a Resolution Approving Submittal of the WaterSmart Application for Inclusion in the AWBD WaterSmart Partners Program.
Next, Mr. Barner discussed the Murr Incorporated Proposal for Preparation of Bond Election Park Plan and Design (the “Proposal”) and scope of work. Mr. Barner asked the Board if they would like additional time to review the Proposal. Mr. Barner next asked Mr. Syzek how long it customarily takes Mr. Murr to prepare a master park plan and Mr. Syzek responded that it takes approximately 30 to 45 days to prepare such plan. Discussion ensued regarding the District residents’ wish list. It was the consensus of the Board to invite Mr. Murr to attend a future meeting to discuss the Proposal with the Board. Mr. Barner indicated that he would follow-up with Mr. Murr.
Authorize notice of termination of Professional Engineering Services Agreement with Sherrington-Humble, LLC (THE “ENGINEER’S AGREEMENT”)
Discussion ensued regarding termination of Engineer’s Agreement.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized termination of the Professional Engineering Services Agreement with Sherrington-Humble, LLC.
Mr. Barner explained that the Board needed to authorize RBAP to request statements of qualifications (“SOQ”). Discussion ensued on what firms the District shall request SOQ from.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized the Attorney to request SOQ for engineering services.
MAY 2018 DIRECTORS ELECTION
Mr. Barner presented the Order Declaring Unopposed Candidates Elected to Office and Canceling the Election, a copy of which is attached hereto. Upon motion by Director Everhart, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board adopted the Order Declaring Unopposed Candidates Elected to Office and Canceling the Election, for the Directors Election scheduled for May 5, 2018.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 17th day of April, 2018.
Secretary, Board of Directors