PARKWAY UTILITY DISTRICT MINUTES OF WORKSHOP MEETING
AUGUST 21, 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, August 21, 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”); Bradley Jenkins and Kaci Schlachter of Jones|Carter (“Engineer” or “Jones|Carter”); Charlie Chapline of Municipal District Services (“Operator” or “MDS”); Bill Blitch of Blitch Associates, Inc. (“Financial Advisor”); Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”); 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.
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.
DIRECT WASTE REPORT
Mr. Singleton presented the Direct Waste Monthly Recycle Summary, a copy of which is attached hereto. Mr. Singleton reviewed issues with trash collection in the District.
Discussion ensued regarding recycling. Mr. Singleton stated that approximately one-third (1/3) of the District recycles. Mr. Singleton reminded the Board that the cost to recycle is $2.00 per home. In response to a question from Director Balderas about what could be done to promote recycling in the District, Mr. Singleton stated that residents should be educated about what can and cannot be recycled. Director Balderas stated that she wants to educate customers about recycling before canceling recycling service in the District. Discussion ensued about ways to increase participation in recycling. Mr. Barner stated that Off Cinco will attend the September 13, 2018 meeting and recommended publication of recycling information on the District website can be discussed at that time.
Mr. Singleton stated that the cost of a recycling bin is $10 and recommended the District provide information to customers about recycling before placing an order for bins.
Mr. Singleton exited the meeting at this time.
Tax Assessor-Collector’s Report
The Tax Assessor-Collector’s Report was presented by Mrs. Yanez, a copy of which is attached hereto. Mrs. Yanez first reported that 96.90% of the 2017 taxes have been collected as of July 31, 2018.
In response to a question from Mr. Barner regarding Delinquent Tax Reports, Mrs. Yanez stated that she would follow-up with the Delinquent Tax Attorney regarding the status of the reports.
Mrs. Yanez presented the Delinquent Tax Roll, a copy of which is attached to the Tax Assessor-Collector’s Report.
Mrs. Yanez reported certified values totaling $297,876,431 were received from Harris County (the “County”). Mrs. Yanez also reported that $38,194,907 remains uncertified.
Upon a motion by Director Rettig, seconded by Director Balderas, 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 1984 through 1988 from the Tax Account, with check number 1887 being voided.
ENGINEER’S Report
Mr. Jenkins first reported that Reddico Construction (“Reddico”) continues work on the waterline on the east side of Beltway 8 (the “Water Line Loop”). Mr. Jenkins also reported regarding a request from the Sunrise Pines Homeowners Association to repair landscaping in front of Sunrise Pines’ entrance and stated that Reddico agreed to repair and replace the landscaping. Mr. Jenkins went on to report that the Water Line Loop should be completed next month. Mr. Jenkins presented Reddico’s Pay Estimate No. 2 in the amount of $41,566.95, a copy of which is attached to the Engineer’s Report, and recommended payment of same.
Regarding the Water Plant Improvements Project, Mr. Jenkins reported that the contractor, Tidal Construction, Inc. (“Tidal”), delivered the generator on August 3, 2018. Mr. Jenkins presented Tidal’s Pay Estimate No. 6 in the amount of $125,100.00, a copy of which is attached to the Engineer’s Report, and recommended payment of same. Mr. Jenkins also reported that the project is approximately 46 percent (46%) complete by value.
Mr. Jenkins then reported that Chief Solutions (“Chief”) completed televising all sanitary sewer trunk lines and Jones|Carter reviewed all videos. Mr. Jenkins went on to report that he will present Jones|Carter’s findings and recommendations on a rehabilitation project at the September Board meeting. Mr. Jenkins presented Chief’s Pay Estimate No. 1 and Final in the amount of $23,257.50 with a completed Affidavit of Bills Paid and Affidavit of Guarantee, copies of which are attached to the Engineer’s Report, and recommended payment of Pay Estimate No. 1 and Final. Mr. Jenkins requested approval of the Certificate of Acceptance which initiates the one (1) year warranty period.
Mr. Jenkins next presented a project memorandum summarizing the scope of work and outlining proposed engineering fees for developing a program for flushing the District’s water lines, a copy of which is attached to the Engineer’s Report. Mr. Jenkins indicated that the estimated engineering fee is approximately $20,000 and will be billed on an hourly basis. Director McNeil inquired regarding the flushing plan and if such plan is being conducted in the most economical method. Mr. Jenkins responded that his recommendation is the best way to conduct the flushing plan and explained the flow rate, closing valves and working through the District’s system. Mr. Jenkins stated that it is in the District’s best interest to have a flushing plan in place. Mr. Chapline stated that the plan is only designed once and then the Operator follows the plan on an annual basis. It was reported that the system is currently purged once per year. Mr. Jenkins discussed his experience with the success of a flushing plan and the method of flushing. Mr. Chapline suggested scheduling the flushing plan and hydrant survey at the same time.
Regarding Sunrise Plastic (“Sunrise”), Mr. Jenkins reported that Jones|Carter met with the owner on August 8, 2018, to discuss the proposed project. Mr. Jenkins next reported that the owner was informed the District will require funds for the waterline project before beginning design of the utility extension. Mr. Jenkins noted that it was his understanding a deposit has not been received to-date. Mr. Barner reported that he is working on an agreement for reimbursement of a portion of the project. Mr. Barner also reported that Sunrise wants a public line and will need to obtain an encroachment agreement with the City of Houston (the “City”).
Mr. Jenkins next reported regarding utility availability requests of Global New Millennium Development (“Global”) and Americas International (“AI”). Mr. Jenkins reported that Jones|Carter informed Global that the District will require a $5,000 deposit to complete an updated analysis of the District’s facilities available to serve the tract. Mr. Jenkins noted that it was his understanding a $5,000 deposit has not been received to-date.
Concerning AI, Mr. Jenkins reported that AI was informed the District will require a $5,000 deposit to complete an updated analysis of the District’s facilities available to serve the tract. Mr. Jenkins noted that it was his understanding a deposit has not been received to-date. Mr. Jenkins also reported that Jones|Carter informed AI that if AI wants sanitary sewer service, AI will need to advance funds to the District to participate in the Wastewater Treatment Plant Expansion Project (“WWTP Project”) and fund the annexation costs. Mr. Jenkins indicated that AI expressed an interest and Jones|Carter is working with the Attorney and AI to move forward.
Next, Mr. Jenkins reported that Jones|Carter has not received revised plans addressing comments regarding the Forest Park Apartments fire line.
Mr. Jenkins then reported that Jones|Carter is preparing calculations and obtaining the required documents for the elevated storage tank alternative capacity request (the “ACR”) beginning work on the water distribution model.
Mr. Jenkins reported that Jones|Carter has commenced preparation of Bond Application Report No. 16 (“BAR 16”) and anticipates submitting to the Texas Commission on Environmental Quality (“TCEQ”) in October. Mr. Jenkins reviewed a draft summary of costs with the Board. Mr. Jenkins stated that he awaits the District’s estimated costs of the WWTP Project from A&S Engineering, Inc. (“A&S”). Mr. Jenkins discussed water impact fees and stated that he awaits calculations from A&S. Discussion then ensued regarding Bond Anticipation Note costs of approximately $16,380. Mr. Jenkins stated that Bill Blitch has run test numbers for BAR 16 and Jones|Carter will have a more detailed analysis at the September Board meeting. In response to a question regarding two (2) year capitalized interest, Mr. Jenkins stated that he hopes to have updated numbers at the September Board meeting. Discussion ensued regarding total WWTP Project costs. Mr. Jenkins stated that such costs are based on flow and the District’s percentage is 60 percent (60%). Mr. Jenkins noted that the figures in his summary are based on figures calculated by A&S.
Mr. Barner provided an update regarding the status of the change in project scope application and discussed his conversation with the TCEQ.
Mrs. Bailey inquired regarding payment of Tidal’s Pay Estimate No. 6 and stated that she would write a check for the Board’s signatures at tonight’s meeting.
Upon a motion by Director Balderas, seconded by Director Woods, 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) approved Reddico Pay Estimate No. 2 in the amount of $41,566.95;
3) approved Tidal Pay Estimate No. 6 in the amount of $125,100.00;
4) approved Chief Pay Estimate No. 1 and Final in the amount of $23,257.50;
5) approved Chief Certificate of Acceptance and authorized the Board President to execute same; and
6) authorized Jones|Carter to proceed with preparation of a flushing plan.
Mr. Blitch exited the meeting at this time.
Bookkeeper’s Report
The Bookkeeper’s Report and Investment Report were presented to and reviewed with the Board by Mrs. Bailey, copies of which are attached hereto. Mrs. Bailey reported that the District has approximately 7.80 months’ operating reserve.
Mrs. Bailey next reported that a check was received from the Federal Emergency Management Agency (“FEMA”) in the amount of $22,500 for District Office repairs. Mr. Chapline updated the Board regarding the District’s remaining FEMA claims.
Mr. Barner presented a check to Mrs. Bailey for Greenwood Utility District’s (“Greenwood”) WWTP capacity.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board: 1) approved the Bookkeeper’s Report, as presented; 2) authorized payment of checks numbered 9353 through 9417 from the General Fund; and 3) authorized payment of checks numbered 1744 through 1750 from the Capital Projects Fund.
Operator’s Report
The Operator’s Report was presented by Mr. Chapline, a copy of which is attached hereto.
Mr. Chapline reported that there are 2,425 connections in the District. Mr. Chapline next reported that the District accounted for 108.9% 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 a wash-out at Lift Station No. 4 (“LS4”) on Van Hut Lane that is forming a sinkhole. Mr. Chapline reported that LS4 was dye-tested and televised earlier in the day and when the videos are received, he will meet with Jones|Carter to determine the best course of action. Mr. Chapline stated that he will investigate whether CES Utilities worked in the problem area. Mr. Chapline noted that the sinkhole is on the opposite of the street from the walking trail.
Mr. Chapline then reported concerning the Write-Off List dated July 25, 2018, identifying one (1) account totaling $74.43 for the Board’s approval.
Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due August 9, 2018, is attached to the Operator’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 Operator’s Report, as presented; and authorized write-offs and terminations.
Parkway/Greenwood Joint Facilities report
Mr. Barner reviewed the Joint Facilities Report, a copy of which is attached hereto. Mr. Barner first reported regarding updated water and sewer projections and indicated that the revised capacity for Phase I of the WWTP Project, based upon the increased requirements for the District, brings the total to 1.875 MGD. Mr. Jenkins stated that the District’s share of the revised capacity is 1.125 MGD. Discussion ensued regarding the respective allocation of capacity. Mr. Jenkins stated that the Hornberger tracts were not included in the projections originally provided to A&S by the District’s previous engineer. Mr. Jenkins next stated that AI has to inform Jones|Carter of its intentions by the end of this week and pay a $5,000 deposit.
Regarding the WWTP Agreement, Mr. Barner reported that A&S will be finalizing the percentage of capacities allocation for Phase I and Phase II of the WWTP Project to Mr. Barner to include in such agreement.
Mr. Barner next reported that the District and Greenwood have funds available for design of the WWTP Project and due to the significant increase in scope, a revised proposal and construction cost estimate will be presented at the September Board meeting. Mr. Barner stated that funds will be released from the Series 2006 escrow and used for design of the WWTP Project. Mr. Jenkins stated that the WWTP Project construction costs will be included in BAR No. 16.
Mr. Barner next updated the Board regarding the Outfall Repair Project and reported that vegetation on the surface area was established and inspected by the Harris County Flood Control District (“HCFCD”) on August 16, 2018. Mr. Jenkins reported that he met with A&S regarding the wash-out near the Outfall Area and indicated that HCFCD approved the repairs made to the area. Director Balderas inquired regarding whether heavy rainfall events in the next few years will affect the area. Mr. Barner responded that the area will need to be monitored.
Mr. Jenkins then reported that installation of the WWTP fine screen (the “Screen”) is ongoing due to a manufacturer error in the channel calculation and such error was discovered during the initial start-up of the Screen. Mr. Jenkins discussed the mistake made by the manufacturer and stated that modifications to the fine screen will be made at no cost to the District and Greenwood.
It was reported that the preliminary engineering work on the WWTP design is ongoing. It was also reported that the TPDES WWTP discharge permit is required to be amended because of the increase in Phase I of the WWTP Project. A&S is working on a revised design and construction schedule that will presented at the September Board meeting.
Mr. Barner reported that work on the management of identified poorly draining areas with Wetlands Professional Services has commenced and is ongoing.
Mr. Barner updated the Board about a meeting with the City regarding the District’s request for an increase of surface water received from the City and upsizing the line and segment for which the District and Greenwood are responsible. Mr. Barner reported that the surface water line that runs down Tidwell Road needs to be enlarged. Mr. Barner also discussed Sheldon Independent School District’s (“SISD”) plans for a water line along C.E. King Parkway and Tidwell Road. Discussion ensued regarding SISD tying into the line and if the line needs to be enlarged, then SISD be required to pay a portion of the costs. Discussion also ensued regarding the City’s Impact Fees and including such fees in BAR No. 16.
Mr. Jenkins updated the Board regarding the Tidwell Road Improvement Project.
Mr. Barner stated that if the status of any projects change, the Board will be notified by email as those updates arise.
GREENS BAYOU COALITION (“GBC”)
Mr. Barner reminded the Board that Kelly Snook discussed the GBC’s voluntary donation program at the August 21, 2018 Board meeting. Mr. Barner explained the plan, the use of funds for Greens Bayou projects and matching funds. Mr. Barner stated that the Board needs to decide if they want to participate in such program and use of the funds collected. It was the consensus of the Board to postpone discussion of this item.
Attorney’s Report
Mr. Barner explained the policies and procedures for new development in the District and recommended increasing the impact fee to $5,000. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board amended the policies and procedures for new development in the District by increasing the impact fee to $5,000.
Mr. Barner next presented the Amended Resolution Requesting Release of Escrowed Funds and Change in Scope, a copy of which is attached hereto. Upon a motion by Director Balderas, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board adopted the Amended Resolution Requesting Release of Escrowed Funds and Change in Scope.
At this time, Mr. Chapline presented Electronic Lockbox Payment Service Documents with Central Bank, including a Resolution Approving ELP Payment Services, an Addendum to MDS Service Agreement, Central Lockbox Processing Agreement and Notice of Termination of Compass Bank Agreement, copies of which are attached hereto, for the Board’s consideration. Mr. Chapline recommended moving the electronic lockbox to Central Bank and discussed the benefits of entering into an agreement with Central Bank, including faster posting of customer payments and elevating the level of service. Mr. Chapline noted no charges or services fees will be incurred by the District to make the change.
Mr. Barner then discussed the Depository Pledge Agreement with Central Bank.
Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board:
- adopted the Resolution Approving ELP Payment Services with Central Bank;
- approved the Addendum to MDS Service Agreement;
- approved the Central Lockbox Processing Agreement;
- authorized notice of Termination of the Compass Bank Agreement; and
- approved the Depository Pledge Agreement with Central Bank.
ELECTION AGENDA
Mr. Barner reported that ballot language for the November 6, 2018 Park Bond Election (the “Election”) was submitted to the County.
Mr. Barner next discussed a joint election agreement with the County and payment of a 60 percent (60%) deposit to the County. Mr. Barner stated that the joint election agreement and the estimate of election costs have not yet been received from the County.
Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the agreement with the County, subject to the Attorney’s review, and payment of a 60 percent (60%) deposit to the County.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
August 21, 2018 Minutes Signature