PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
JANUARY 8, 2020
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 January 8, 2020, 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 Director Woods, thus constituting a quorum. Also attending all or parts of the meeting were Lieutenant Terry Ganey and Deputy J. Trujillo, 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 JoneslCarter (“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; Ms. Karen Sears of Storm Water Solutions; and Mr. 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 A. The following business was transacted:
1. Public Comments. There were no comments from the public.
2. Minutes of previous meeting(s). Minutes of the regular meeting on December 16th and special meeting of December 18, 2019 previously distributed to the Board, were presented for consideration and approval. 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 minutes of the December 16th and special meeting of December 18, 2019, as presented.
3. Report from Direct Waste Solutions. President McNeil stated that Mr. Singleton, was unable to attend the meeting and that he conveyed that there were no issues with holiday collections.
4. Report from General Manager. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy is attached as Exhibit B.
Mr. Syzek reported on an inspection of the Wastewater Treatment Plant and noted that a contractor was in the process of removing heavy foam from the clarifier basin due to a plant issue. Mr. Browne reported on maintenance of the aeration and clarifier chambers that included removal of rags and heavy debris causing excessive foam in the clarifier basin.
Mr. Syzek noted the transition in the District’s general counsel caused the District’s membership renewal with the Greens Bayou Coalition (the “Coalition”) to lapse. He requested the Board’s approval to re-apply for membership for an annual cost of $1,000. Upon motion by Director Balderas, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously in favor of renewing its membership with the Coalition for an Annual Membership fee of $1,000.
5. Report from Storm Water Solutions. President McNeil deferred this item pending arrival of Ms. Sears and moved next to Security Report and Operations Report. Upon the arrival of Ms. Sears, President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy is attached as Exhibit C. No action was requested from the Board.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. President McNeil recognized Lieutenant Ganey, who reviewed the Security Report for the month of December 2019, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit D.
7. Discuss lnterlocal Agreement with Tidwell Lakes and take necessary action. Mr. Jenkins reminded the Board of Mr. Sasson’s previous visits and requests for an agreement with the District to confirm as a back-up source for service in an emergency event. He stated that the Board denied Mr. Sasson’s request pending confirmation that he acquire a generator in compliance with the Texas Commission on Environmental Quality (“TCEQ”) requirements. Discussion ensued regarding transferring ownership and operation of the Tidwell Lakes Wastewater Treatment Plant (“TLWWTP”) to Greenwood Utility District (“GUO”), since GUO has a generator.
8. 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 AssessorCollector’s Report for November, a copy of which is attached as Exhibit E. Ms. Yanez reported that 53.18% of the District’s 2019 taxes have been collected as of December 31, 2019.
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 Tax AssessorCollector’s Report, and to authorize the expenditures listed therein.
9. 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 F.
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 Bookkeeper’s Report, to authorize payment of check nos. 10446 to 10512 from the District’s General Operating Fund, and check nos. 1817 and 1818 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.
10. Operator’s Report and hearing on delinquent accounts. President McNeil reported that Mr. Browne has a conflict and his report will be received out of order from the agenda. She recognized Mr. Browne, who presented to and reviewed with the Board the Operations Report for December 2019, a copy is attached as Exhibit G. He noted that 91 % of the water pumped was billed for the period from November 15, 2019 to December 15, 2019.
Mr. Browne reviewed maintenance and repairs for December 2019 of the District’s individual and joint facilities.
Mr. Browne reported that 2,682,907 gallons were transferred from GUO to TLWVVTP for the month of December. Discussion ensued regarding reduced flows to TLWVVTP. Mr. Wilson reported on information received prior to the meeting from the District’s engineer regarding conflicting formulas for calculation of flows indicating the District’s capacity may have been compromised.
Discussion ensued regarding flows to TLWVVTP, plant issues and subsequent shut down for operational adjustments. During such time 180,000 gpd were going to TLWVVTP and, currently, it is down to 90,000 gpd. Mr. Wilson said that he will initiate a conference call with Messrs. Brown and Jenkins to confirm actual flow, calculation formula, and determine if any capacity has been impeded. He stated that the consultants want to have a level of accuracy prior to assuming false or compromised allegations before meeting with GUD’s consultants.
Director Everhart asked whether there was report of a repaired sinkhole two doors down from his address. He noted that recently MOS stated there were no issues following a report of a sinkhole.
He stated that he and his neighbors are expending funds to repair driveways after reporting sinkholes at different addresses on Lauren Forest that have not been identified by MOS. He requested that the engineer to determine the compaction specification for the construction of water sanitary sewer and drainage facilities in Sunrise Pines in 2006. He also requested that NRF review archived minutes regarding discussion and/or Board action on this matter.
Mr. Browne requested that the Board authorize termination of 239 delinquent accounts in accordance with the District’s Rate Order.
Upon motion by Director Balderas, seconded by Director Rettig, 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.
11. Discuss security cameras at the Water Plant and administration building, and take necessary action. Mr. Browne updated the Board on the status of a proposal from Zaladium Analytics and compilation of information for a cost estimate and inability to obtain a commitment. Mr. Wilson offered to research for additional proposals.
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 H.
Mr. Jenkins updated the Board on Water Plant Improvements and requested approval of Pay Estimate No. 15 in the amount of $32,418.27. He also requested the Board’s approval of Change Order No. 7 in the amount of $6,850.00 to recoat the water well piping to coincide with the ancillary improvements. 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 approve payment of Pay Estimate No. 15 in the amount of $32,418.27 and Change Order No. 7 in the amount of $6,850.00 to Tidal Constructions, Inc. for Water Plant Improvements and re-coating of the water well piping.
Sunrise Plastic Enterprise is requesting approval of their sanitary sewer plans and have agreed to submit the additional deposit required to proceed with the annexation.
A copy of the Engineer’s Report on joint facilities matters from A&S Engineers is attached to the District Engineer’s Report.
13. Review bids and award the sale of the Bonds. Mr. Blitch reviewed the bid results and reported that six bids were received, and recommended that the Board accept the low bid from Raymond James and Associates, Inc. (“Raymond James”) at a net effective interest rate of 2.832087%. A copy of the bid results is attached as Exhibit I. He reported that Assured Guaranty Municipal Corp. (“AGM”) will insure the Bonds.
Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to accept the bid from Raymond James for a net effective interest rate of 2.832087%.
Mr. Blitch discussed funding options through the Texas Water Development Board (“TWDB”). He asked the Board if they were interested in the Engineer preparing a proposal of projects and costs to prepare an application to TWBD. He discussed a timeline for preparation and submission, and, If approved, funding will occur at the end of this year. No action was taken by the Board.
14. Adopt Order Authorizing $16,750,000 Unlimited Tax Bonds, Series 2020, a Paying Agency Agreement, authorize the Board of Directors to sign all documents relating to the bond sale and authorize attorney and financial advisor to take all necessary actions to deliver the Bonds to the initial purchaser, and any other matters in connection there with and other matters in connection therewith. The President recognized Mr. Wilson, who presented to and reviewed with the Board the Order Authorizing Unlimited Tax Bonds, Series 2020, a Transfer and Paying Agency Agreement, and Other Matters in Connection Therewith (the “Order”), a copy of which is attached hereto as Exhibit J.
Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to adopt the Order.
15. Building Superintendent’s Report. No report was received by the Board. Director Rettig noted that he will have something to present to the Board next month.
16. Approve Resolution Appointing Agent for the 2020 Directors Election. 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 Resolution Appointing Agent for the 2020 Directors Election, a copy is attached as Exhibit K.
17. Approve publication of notice of exemption from use of voting machine. Mr. Wilson presented to the Board a Resolution Authorizing Publication of Notice of Intent Not to Use An Electronic Voting System, a copy is attached as Exhibit L. He stated that the District is exempt from using an electronic voting system if the most recent Directors Election was not held because the candidates were unopposed or if there were less than 250 voters that voted in the last Directors Election. He also noted that a notice of the District’s intent to not use an electronic voting system must be published in a newspaper of general circulation in the District.
Upon motion by Director Balderas, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve and authorize posting of the Notice of the Deadline to File an Application, and to approve and authorize publication of notice of the District’s intent to not use a voting machine system, copies of which are attached hereto as Exhibit.
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 February 12, 2020.
President, Board of Directors
ATTEST: Secretary, Board of Directors
January 8, 2020 Minutes Signature