PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
APRIL 10, 2019
THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §
The Board of Directors (the “Board”) of Parkway Utility District (the “District”) met in a regular session, open to the public, at 12843 Tidwell Road, Houston, Texas, at 6:15 p.m. on April 10, 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, thus constituting a quorum. Also attending all or parts of the meeting were Mr. Abner Lyons, Community Liaison for Representative Harold V. Dutton, Jr. District 142; Mr. Bill Blitch of Blitch Associates, Inc., (“Advisor”) financial advisor for the District; Ms. Jennifer Day of McCall Gibson Barfoot and Swelund, auditors for the District; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”), bookkeeper for the District; Ms. Brittany Bogard of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for the District; 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”), operator for the District; Mr. Gary Syzek of Systems Project Management; andMr. Reginald Wilson and Ms. Brenda Presser 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, a copy of the certificates of posting is attached as Exhibit . The following business was transacted:
1. Public Comments. No comments were received by the Board.
2. Minutes of previous meetings. Minutes of the meeting of March 19, 2019, previously distributed to the Board, were presented for consideration and approval. Upon motion by Director Rettig, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes as presented.
3. Report from Direct Waste Solutions. President McNeil reported that Mr. Singleton had a conflict and was unable to attend this meeting. No report was presented to the Board.
4. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Sergeant Ganey was not in attendance; however, the Security Report was previously distributed to the Board. A copy is attached as Exhibit B.
5. Approve audit for December 31, 2018. President McNeil recognized Ms. Day, who presented to and reviewed with the Board a draft audit for the District’s fiscal year ended December 31, 2018, and a draft management letter from McCall Gibson Swedlund & Barfoot, PLLC, copies of which are attached as Exhibit C.
Upon motion by Director Balderas, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize filing of the audit for fiscal year ended December 31, 2018, with the Texas Commission on Environmental Quality, subject to a ten-day review by the District’s consultants.
6. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Bogard presented to and reviewed with the Board the Tax Assessor-Collector’s Report for March, a copy of which is attached as Exhibit D. Ms. Silva reported that 92.95% of the District’s 2018 taxes have been collected as of March 31, 2019.
Upon motion by Director Everhart seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor-Collector’s Report, and to authorize the expenditures listed therein.
7. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Bailey reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit E.
Additional checks written at the meeting from the General Operating Fund include check no. 9957 for $766.72 to reimburse Director Rettig for a new bulletin board at the District’s administration building and check no. 9958 for $33.99 for office expenses incurred by Director Rettig.
Ms. Bailey reported that no invoices were received from Greenwood Utility District because a quorum could not be established for a board meeting.
Upon motion by Director Rettig, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper’s Report, to authorize payment of check nos. 9911 to 9958 from the District’s General Operating Fund and check nos. 1780 through 1782 from the District’s Construction Fund in the amounts and for the purposes listed therein.
8. Review Drought Contingency Plan. Mr. Wilson reported that the Texas Commission on Environmental Quality (“TCEQ”) is requesting that districts review their Drought Contingency Plan and provide updates, if any, to the TCEQ by May 1, 2019. He stated that there are no recommendations to amend the District’s Drought Contingency Plan. Mr. Wilson presented a Resolution Reviewing Drought Contingency Plan and Making any Desirable Changes Thereto for the Board’s approval. A copy is attached as Exhibit E.
Upon motion by Director Rettig, seconded by Director Woods, after full discussion and the question being put to the Board, to approve the Resolution Reviewing Drought Contingency Plan and Making any Desirable Changes Thereto, as presented.
9. Operator’s Report and hearing on delinquent accounts. President McNeil recognized Mr. Browne, who presented to and reviewed with the Board the Operations Report for March 2019, a copy of which is attached hereto as Exhibit F. He noted that 90% of the water pumped was billed for the period from February 15, 2019 to March 15, 2019.
Mr. Browne reviewed maintenance and repairs for March 2019 of the District’s individual and joint facilities.
Mr. Browne reported that flow did not exceed the permitted amount at the Regional Wastewater Treatment Plant and there were no excursions.
Mr. Browne reported a call received from a District resident regarding the status of water quality following the fire at ITC in Deer Park, noting that Director Balderas received a call from a District resident regarding the same. He stated that he posted information on the District’s website notifying customers that the District’s water is safe for consumption and that it was not affected by the fire.
Mr. Browne reported on the uni-directional flushing scheduled for June 17, 2019. The Board requested that an e-blast be distributed to District customers to notify them of the scheduled flushing, and that customers may experience a temporary notable change in the color of the water immediately following the flushing.
He reported that a deposit was received from Forest Park Apartments and that MDS was able to locate the water and sanitary sewer lines to service the apartments.
Mr. Browne requested that the Board authorize termination of 164 delinquent accounts in accordance with the District’s Rate Order and to authorize MDS to the write-off accounts for collection in the amount of $1, 226.03.
Mr. Browne reported that the Consumer Confidence Report was submitted for the Board’s review, a copy of which is attached to the Operations Report. He stated that an electronic copy will be transmitted to NRF for review. He noted that it is due for distribution by July 1, 2019.
Mr. Browne reported that the District is required to review its Identity Theft Prevention Program and recommended a change to discontinue the availability of an unprotected drop box.
President McNeil inquired about the repairs at the Regional Wastewater Treatment Plant and asked whether the repairs were associated with flows exceeding permitted amounts for the plant. Mr. Browne explained that the repairs were related to normal “wear and tear” and not associated with excessive flow. He further discussed current issues with flushable wipes, which requires increased maintenance to pull the pumps and extract the wipes to unblock the system. He talked about alternative pumps with a higher capability for breaking down the wipes; however such pumps are available at a higher cost. Discussion ensued to educate customers on the issues caused by flushing wipes. The Board requested that MDS distribute an e-blast and insert a note on the water bill regarding this matter.
Upon motion by Director Rettig, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Operator’s Report; to terminate 164 delinquent accounts in accordance with the District’s Rate Order; to authorize MDS to write-off accounts to collection in the amount of $1,226.03; to approve the Identity Theft Prevention Program with the change recommended by MDS; and to authorize MDS to distribute an e-blast and insert a note on the water bill regarding flushable wipes.
10. Engineer’s Report, including review of Engineer’s projects, and capital repairs. Mr. Jenkins presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as Exhibit G.
Mr. Jenkins updated the Board on Water Plant Improvements and requested approval for payment of Pay Estimate No. 7 in the amount of $23,625.00. He noted that a cost estimate has been requested from the contractor to complete the fence modifications to allow additional parking inside at the plant. He reported that a change order will be presented at next month’s meeting to include the fencing modifications with the Water Plant Improvements project. Discussion ensued about adding a light and parking lot materials to the scope of the modifications as well. The Board asked how many space will be added with the modifications. Mr. Jenkins reported that the plans allow for an additional seven parking spaces. Upon motion by Director Rettig, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve Pay Estimate No. 7 in the amount of $23,625.00.
Mr. Jenkins reported on the results of the inspections of Lift Station Nos. 1, 2, 4 and 5 and reviewed photographs, recommendations, and cost summaries on pages 12 through 48 of the Engineer’s Report. President McNeil asked about a capital improvement plan for budgetary purposes and about the accumulation of repairs and preventative maintenance following rehabilitation. Mr. Browne stated that MDS will implement a maintenance program following rehabilitation that will include cost estimates. Mr. Jenkins recommended rehabilitating Lift Station No. 1 for an estimated cost of $623,000 and rehabilitating and expanding Lift Station No. 2 for an estimated cost of $893,000.
Mr. Jenkins stated that he concurs with approval of Rutherford’s plans, subject to the letter stating that no waste will be discharged into Parkway’s system until the District’s capacity has been returned and that no taps can be made without written approval from the District.
A copy of the draft letter is attached to the Engineer’s Report. Discussion ensued regarding concerns about an alternative plan that would provide the District with security given any issues that may arise with Greenwood Utility District’s (“Greenwood”) flow diversion to Tidwell Lakes Wastewater Treatment Plant. Messrs. Wilson and Jenkins reported on discussions with Greenwood concerning a proposed package plant, which may no longer be a consideration for capacity. Upon motion by Director Rettig, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the letter approving Rutherford’s plans and stating that no waste will be discharged into Parkway’s system until the District’s capacity has been returned and that no taps can be made without written approval from the District
Mr. Jenkins reviewed an updated Summary of Costs for the proposed bond application report that included rehabilitation of Lift Station 1 and rehabilitation and expansion of Lift Station No. 2. Mr. Blitch discussed taxes implications for debt service payments and impact fees that may be due. Discussion ensued. Mr. Blitch stated that he will re-run scenarios with capitalized interest and reduce costs of issuance when the District proceeds with a bond sale. The Board discussed revising the Bond Application Report to remove certain projects that are not critical at this time. Upon motion by Director Balderas, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve adding rehabilitation of Lift Station 1 and rehabilitation and expansion of Lift Station No. 2 to the Bond Application.
Mr. Jenkins discussed and reviewed a proposal to perform an evaluation of Tidwell Lakes Wastewater Treatment Plant. The Board clarified their request for the engineer to walk and view the facility for clarification of activity and stated that an engineering evaluation is not necessary.
Mr. Jenkins reported that A&S has received a quote from Chief Solutions to televise the outfall to determine whether the pipe is causing the depression for a cost of $1,647.00, a copy of which is attached to the Engineer’s Report. The District’s pro rata share is $823.50 and Mr. Jenkins recommended approval. Upon motion by Director Rettig, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to approve the quote from Chief Solutions for $823.50.
Upon motion by Director Rettig, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.
11. Report from Systems Project Management. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s Project Management Report, a copy is attached as Exhibit I.
Mr. Syzek discussed the District sponsoring 119 fourth grade students at Monahan Elementary School for $4,338.34 through the Harris-Galveston Subsidence District’s WaterWise Program. Discussion ensued regarding benefits and prior sponsorship. It was noted that the Board approved sponsorship for the 2019-2020 school year in its approval of the check presented in the bookkeeper’s report.
12. Building Superintendent’s Report. No report.
13. Approve proposal from McDonald & Wessendorff for Cyber Liability policy. The Board discussed the proposal for a Cyber Liability policy and concurred to decline the policy.
14. Discuss Regional Wastewater Treatment Plant. Mr. Wilson reported that it is on hold pending a joint facilities meeting.
15. Other Matters. President McNeil recognized Mr. Lyons, who invited the Board to attend a meeting on Saturday, April 13, 2019 at Sheldon ISD Administration Building to discuss reimbursement to persons that lost or refurbished damaged property resulting from Hurricane Harvey.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned.
* * *
The foregoing minutes were passed and approved by the Board of Directors on May 8, 2019.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)
April 10, 2019 Minutes Signature