Meeting Minutes 2019-02-27


FEBRUARY 27, 2019


The Board of Directors (the “Board”) of Parkway Utility District (the “District”) met in a special session, open to the public, at 12843 Tidwell Road, Houston, Texas, at 6:30 p.m. on February 27, 2019, whereupon the roll was called of the Directors, to wit:

Brenda McNeil, President
Alphonso (Al) Rettig, Vice President
Jennifer Balderas, Secretary
Ron Everhart, Assistant Secretary
Gloria Woods, Director

All members of the Board were present, except Directors Rettig and Everhart, thus constituting a quorum. Also attending all or parts of the meeting were Mr. Gary Syzek of Systems Project Management; Mr. Bradley Jenkins and Ms. Kaci Schlachter of Jones|Carter (“Engineer” or “J|C”), engineers for the District; Mr. Calvin Browne of Municipal District Services (“Operator” or “MDS”), operators for the District; Mr. Reginald Wilson and Ms. Shaila Sreedharan of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District.

President McNeil called the meeting to order, and in accordance with notice posted pursuant to law, copies of certificates of posting of which are attached hereto as Exhibit A, the following business was transacted:

Discuss Wastewater Treatment Plant project. Mr. Jenkins reviewed two options outlined on a handout distributed to the Board, a copy is attached as Exhibit B and discussed below.

Mr. Jenkins reported that Option 1 includes continuing with the regional plant that would provide the District capacity and ownership without an additional District plant. He reviewed construction and annual operations costs and noted that a Force Main would need to be installed on Tidwell Road.

Mr. Jenkins reported that Option 2 would reduce the gallons per day (“gpd”) and ownership in the regional wastewater treatment plant, however the District would also construct its own wastewater treatment plant. He reviewed the estimated costs, which include land cost for approximately three to five acres for the new site. Mr. Jenkins discussed the need to obtain a waste discharge permit, location for a new wastewater treatment plant, and a feasibility study to determine location.

Mr. Jenkins noted that both options are similar in costs, there would operational costs for both shared and individual wastewater treatment plants and both have the same deadline of December 2021.

Discussion ensued regarding the waste discharge permit upon identification of a site for a new wastewater treatment plant and possible protests regarding the permit. Mr. Wilson asked whether the 1,125,000 gpd limit could lead to overcapacity in the future if Greenwood Utility District (“GUD”) operates at a higher rate. Mr. Jenkins noted that it could happen and that better communication would be required to prevent such event. Mr. Wilson recommended that the Board keep this in mind when making their decision on whether or not to select Option 1 or Option 2. Discussion ensued regarding GUD’s continued use of capacity, development, and building. Mr. Wilson noted that he has reviewed the lease agreement and that it terminated on December 31, 2017. He has been unable to locate an extended agreement, but has found written communication referencing an extended agreement. President McNeil stated the Board is not interested in entering another lease agreement.

Mr. Wilson noted that there is a conference call on Monday, March 4, 2019, to enter discussion ahead of the proposed Joint Facilities meeting to discuss the next steps for the Wastewater Treatment Plant.

Discussion ensued regarding a package plant for the District and Mr. Jenkins reported that it is not cost effective to the District. He stated that while the costs are lower on the front end, the costs for continued repair and maintenance are higher. Director Balderas stated that she is in favor of Option 2. Mr. Syzek said that he still recommends the package plant for Option 2. Mr. Jenkins stated his concerns that the wall thickness will decrease with the blasting and recoating that will result in modification and he recommends Option 2. Mr. Browne discussed package plant costs and recommended Option 2. Director Balderas asked about a package plant option and Mr. Jenkins stated that it can be done and while the costs are lower, they are not significantly lower. Mr. Wilson says that he likes Option 2 and suggested that the Board authorize J|C to move forward with preparing plans and cost estimates for a feasibility study for Option 2 at a cost of $25,000 for the study, contingent upon discussions of the joint facilities conference call on Monday, March 4, 2019. Upon motion by Director Balderas, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to authorize J|C to proceed with the preparation of plans and cost estimates for a feasibility study for Option 2 at a cost of $25,000 for the feasibility study, contingent upon discussions of the joint facilities conference call on Monday, March 4, 2019.

The Board asked about the sinkhole at the Wastewater Treatment Plant and Mr. Jenkins reported that GUD’s engineer stated that it was a joint separation and there is a contractor looking at it. Repairs have not been made.

President McNeil suggested having a joint powers board for the regional wastewater treatment plant and Mr. Wilson said that it can be written into the contract.

The Board briefly discussed the quorum issues with GUD. Mr. Jenkins mentioned that he spoke with the engineer for the Rutherford Apartments and advised him of the issues regarding capacity. Mr. Jenkins also noted that the Rutherford Apartments project could not proceed until capacity is available.

* * *

The above and foregoing minutes were passed and approved by the Board of Directors on March 19, 2019.

President, Board of Directors

Secretary, Board of Directors

February 27, 2019 Minutes Signature

February 27, 2019 Minutes Signature