Meeting Minutes 2019-11-13

PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING

NOVEMBER 13, 2019

THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §

The Board of Directors (the “Board’) of Parkway Utility District (the “Districf’) met in a regular session, open to the public, at 12843 Tidwell Road, Houston, Texas, at 6: 15 p.m. on November 13, 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 Ms. Regina Pearrie and Ms. Glenda Benoit, residents of the District; Mr. Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”), solid waste and recycling collectors for the District; Lieutenant Terry Ganey, Sargent P. Sullivan (Parkway Forest – Night Shift), and Deputy P. Trujillo (Night Shift Deputy), Harris County Precinct 3 Constable’s Office; Mr. Bill Blitch of Blitch Associates, Inc., (“Advisor”) financial advisor for the District; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”), bookkeeper for the District; Ms. Delia Yanez 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 “JIC”), engineers for the District; Mr. Calvin Browne of Municipal District Services (“Operator” or “MOS”), operator for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Mr. Michael Trager of Zaladium Analytics; and Mr. Reginald Wilson and Ms. Jane Maher 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 A. The following business was transacted:

1. Public Comments. President McNeil opened the floor for comments. Ms. Pearrie expressed concern about her 2018 to 2019 tax bill increase. Mr. Wilson informed Ms. Pearrie that part of the increase is due to the appraised value of her property increasing. Mr. Blitch stated that this year the District’s tax rate increased due to the District’s upcoming bond sale. President McNeil informed Ms. Pearrie that she can protest her value with Harris County.

2. Minutes of previous meeting(s). Minutes of the regular meeting on October 9, 2019, previously distributed to the Board, were presented for consideration and approval. 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 the minutes of the regular meeting on October 9, 2019 as presented.

3. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who presented to and reviewed the Monthly Recycle Summary, a copy of which is attached hereto as Exhibit B.

No action was requested of the Board.

4. Report from Systems Project Management. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy is attached as Exhibit C. He reviewed photos of the street storm sewer inlets that feed into the Harris County owned Sierra Ranch detention pond and stated that there are large amounts of grass clippings that have been dumped in the inlets. He stated that he can provide the address to Mr. Browne. Mr. Browne stated he can send the information to Harris County to clean.

Mr. Wilson informed the Board that the attorney for the Forest Park Apartments reached out to NRF. He stated that he informed the attorney that the Board would be adjusting the multi-family water and sewer rates during this meeting.

5. Report from Storm Water Solutions. Mr. Syzek stated that Storm water Solutions would provide a report at the December meeting.

6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. President McNeil recognized Sargent Ganey, who reviewed the Security Report for the month of October 2019, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit D. He reported on officer’s shifts and coverage for the District.

7. Discuss Harris County Precinct Three Constable contract renewal for 2020-2021 and take any necessary action. Mr. Wilson reviewed a Memorandum from Constable Sherman Eagleton, Precinct 3 regarding the intent to renew the contract patrol program, a copy of which is attached hereto as Exhibit E. He stated that the Board will need to provide any changes to the contract before February 11. It was the consensus of the Board to discuss the Memorandum at the December meeting.

8. Discuss additional security cameras at the Water Plant. Mr. Browne introduced Mr. Trager to the Board. Mr. Trager presented a pamphlet of the different camera systems offered by Zaladium, a copy of which is attached hereto as Exhibit F. Discussion ensued. It was the consensus of the Board to have Mr. Trager tour the District property and provide a cost estimate.

9. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Yanez presented to and reviewed with the Board the Tax Assessor-Collector’s Report for October, a copy of which is attached as Exhibit G Ms. Yanez reported that 0.05% of the District’s 2019 taxes have been collected as of October 31, 2019.

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 Tax Assessor­Collector’s Report and to authorize the expenditures listed therein.

10. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Osborne reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit H. She reviewed the proposed operating budget for 2020 and stated that the budget will need to be approved at the December meeting. Mr. Wilson informed the Board that another feasibility study might need to be done for the Sunrise Plastics annexation. He stated that recommendations will be presented at the December meeting.

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 the Bookkeeper’s Report, to authorize payment of check nos. 10327 to 10390 from the District’s General Operating Fund, and check nos. 1806 to 1812 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.

11. 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 October 2019, a copy is attached as Exhibit/. He noted that 100% of the water pumped was billed for the period from September 15, 2019 to October 15, 2019.

Mr. Browne reviewed maintenance and repairs for October 2019 of the District’s individual and joint facilities.

Mr. Browne reported that 291,000 gallons were transferred from Greenwood Utility District (“GUO”) to the Tidwell Lakes Wastewater Treatment Plant for the month of October.

Mr. Browne stated that a new lift pump will need to be installed at Lift Station No. 6. He recommended that the Board replace the lift pump with a Flyght N-lmpeller. He stated that the Flyght N-lmpeller is more efficient at handling rags.

Mr. Browne requested that the Board authorize termination of 195 delinquent accounts in accordance with the District’s Rate Order.

Upon motion by Director Rettig, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to terminate delinquent accounts in accordance with the terms of the District’s Rate Order and to approve the installation of a Flyght N­lmpeller lift pump at Lift Station No. 6 in the amount of $9,531.00.

12. 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 J.

Mr. Jenkins discussed the water plant improvements and presented Pay Estimate No. 13 in the amount of $149,184.90 for the Board’s approval. He stated that the contractor, Tidal Construction, Inc., has requested to reuse the roof panels. It was the consensus of the Board to authorize Tidal Construction, Inc., to reuse the roof panels with minor chips but to replace the roof panels with major chips. Upon motion by Director Woods, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve Pay Estimate No. 13 in the amount of $149,184.90 and to authorize Tidal Construction, Inc., to reuse the roof panels with minor chips but to replace the roof panels with major chips.

Mr. Jenkins requested that the Board approve the revised agreement for the Wastewater Treatment Plant influent meters. 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 revised agreement for the Wastewater Treatment Plant influent meters.

Mr. Jenkins reported that there is EZ tag store going in north of Hornberger on tract 3. He stated that the EZ tag has expressed interest in the District providing water and later providing sewage.

He stated that he can coordinate with Mr. Wilson on a plan to present to the Board at the December meeting.

Mr. Jenkins presented a budget worksheet of the District and joint facilities projects, a copy of which is attached hereto as Exhibit K.

A copy of the Engineer’s Report on joint facilities matters from A&S Engineers is attached to the District Engineer’s Report under Exhibit L.

13. Receipt of bids for the Bonds Application Note and take any necessary action for approval. Mr. Wilson presented to the Board a letter from the City of Houston regarding the request to extend the deadline for the District to pay the impact fees, a copy of which is attached hereto as Exhibit M. He stated that the deadline has been extended from December 31, 2019 to March 31, 2020 and that the District no longer needs to sell a Bond Anticipation Note.

14. Report from Financial Advisor. Mr. Blitch stated that he will start preparing the Preliminary Official Statement.

15. Revise Rate Order. Mr. Wilson presented to and reviewed with the Board a revised Rate Order that reduces the multi-family water and sewer rates, a copy of which is attached hereto as Exhibit N. 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 the amendments to the Rate Order.

16. Building Superintendent’s Report. No report was received by the Board.

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 December 11, 2019.