PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
February 12, 2020
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 February 12, 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, thus constituting a quorum. Also attending all or parts of the meeting were Mr. Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”), solid waste and recycling collectors for the District; Lieutenant Terry Ganey, Harris County Precinct 3 Constable’s Office; 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 “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, General Manager for the District; Mr. Reginald Wilson and Ms. Brenda Presser of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Ms. Ooten and Mr. Post of Sentri-Force, security systems.
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. Ms. Benoit addressed the Board regarding a shoe on a power line at Deep Valley and Tidwell and reported on gang activity occurrences. Mr. Syzek stated that he will help resolve the issue with the removal of the shoe. Lt. Ganey reported they have not received any reports of increased gang activity. She reported on a shoe at another location and a marking on an electrical pole.
Ms. Mosley requested an adjustment on an unusually high water bill. Mr. Browne reported that no leak was detected outside the home. He noted that he had a discussion with Ms. Mosley recommending a payment plan. Mr. Browne also suggested proposed issues with the interior of the home that may be causing the excess reading. Ms. Mosely assured the Board that there is no leak on the interior of the home. Director Balderas noted that adjustments cannot be made under the provisions of the Rate Order, but that only the sewer costs can be adjusted. Mr. Wilson stated that this matter can be further decided under the Operator’s Report.
2. Minutes of previous meeting(s). Minutes of the regular meeting on January 8, 2020 and special meeting of January 22, 2020 previously distributed to the Board, were presented for consideration and approval. Mr. Wilson noted that minutes of a special meeting of January 15, 2020, are being prepared and will be distributed for the Board’s review prior to its next meeting.
Upon motion by Director Rettig, seconded by Director Wood, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the regular meeting on January 8, 2020 and special meeting of January 22, 2020, with modification to page 3 of the January 8, 2020 minutes.
3. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who reviewed the Monthly Recycle Summary for December and January, copies are attached as Exhibit B.
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 C.
Mr. Syzek reported on the Tidwell Sidewalk Extension partnership with Harris County, Precinct 1. He stated the construction cost of the 3,640 feet long, six feet wide sidewalk project is estimated to be $315,650.50 and Harris County is open to sharing the costs of this project with the District.
Mr. Syzek noted a Community Meeting hosted by Senator Carol Alvarado regarding General Land Office funds for special purpose districts.
Mr. Syzek presented and amendment to the Board regarding is contract, a copy of which is attached hereto as Exhibit C-1. Upon motion by Director Rettig, seconded by Director Woods, after the question being put to the Board, the Board voted unanimously to approve the amendment.
5. Report from Storm Water Solutions. No report was presented to 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 January 2020, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit D.
Lt. Ganey discussed a PEP – Patrol Enhancement Program. Additional non-contract officers will be able to patrol for an additional 4 hours comp time and increase law enforcement presence to combat theft of motor vehicles. He asked about an insert into the water bill to encourage contact to implement a defense strategy. Discussion ensued. No further action was taken by the Board.
7. Discuss Interlocal Agreement with Tidwell Lakes and take necessary action. Mr. Wilson reported this item was requested by Mr. Eli Sasson and reminded the Board of previous conversations with Mr. Sassoon that the Board will not proceed without proof of a generator.
8. Adopt Order Authorizing Exemption From Taxation. The Board discussed exemptions from taxation. Mr. Wilson noted that the District currently authorizes a 20% homestead exemption and an exemption in the amount of $10,000 of appraised value to individuals who are disabled or 65 years of age and older. 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 an Order Adopting Tax Exemption for Individuals who are Disabled or are 65 years of Age or Older granting a $10,000 exemption and 20% general homestead exemption, a copy of which is attached as Exhibit E .
9. Adopt Resolution Authorizing Additional Penalty on Delinquent Taxes. 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 adopt the Resolution Authorizing 20% Additional Penalty on Delinquent Taxes remaining delinquent on April 1, 2019 for personal property, and remaining delinquent on July 1, 2019 for other property, a copy of which is attached hereto as Exhibit F.
10. 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 January, a copy of which is attached as Exhibit G. Ms. Yanez reported that 65.56% of the District’s 2019 taxes have been collected as of January 31, 2020. Upon motion by Director Balderas, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector’s Report and authorize payment to the persons and in the amounts provided in the report.
Ms. Yanez presented a Fourth Amendment to Agreement for Services of Tax Assessor/Collector, a copy is attached as Exhibit G-1. Discussion ensued. The Board concurred to defer action pending additional information.
11. 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 H.
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 Bookkeeper’s Report, to authorize payment of check nos. 10513 to 10570 from the District’s General Operating Fund, and check nos. 1819 and 1824 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.
12. Approve Amendment to Agreement for Services for Bookkeeper. Ms. Bailey presented an Amendment to Agreement for Services for Bookkeeper, a copy is attached as Exhibit I. Upon motion by Director Everhart, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Amendment to Agreement for Services for Bookkeeper.
13. 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 January 2020 a copy is attached as Exhibit J. He noted that 93% of the water pumped was billed for the period from December 15, 2019 to January 15, 2020.
Mr. Browne reviewed maintenance and repairs for January 2020 of the District’s individual and joint facilities.
Mr. Browne reported that 2,731,780 gallons were transferred from GUD to TLWWTP for the month of January.
Mr. Browne requested that the Board authorize termination of 167 delinquent accounts in accordance with the District’s Rate Order and write off accounts to the collection agency in the aggregate amount of $1,124.01.
Mr. Browne reported that the suction valve on lift pump no. 1 at Lift Station No. 2 needs to be replaced. He reviewed and requested approval of a quote from Elite Pumps & Mechanical Services LLC for $3,830.00 for replacement of the suction valve.
Mr. Browne reported on issues with lift pump no. 1 at Lift Station No. 4 and presented and discussed two options. He reported that Option No. 1 includes repair of the lift pump for a cost of $7,314.20 and Option No. 2 is for replacement at a cost of $21,795.60. He stated that MDS recommends repair rather than replacement of the lift pump.
Mr. Browne requested the Board’s approval of a Resolution Approving Submittal of the Water Smart Application for Inclusion in the Association of Water Board Directors Water Smart Partners Program.
Mr. Browne reported that the 200 HP Well Pump Motor at the Water Plant was pulled and evaluated. He stated the repair cost is estimated to be $23,500.00 and replacement is about $24,935.00.
MDS recommends replacement.
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, and approve submission of the Water Smart application.
14. Discuss security cameras at the Water Plant and administration building, and take necessary action. Mr. Browne reported that representatives from SentriForce are in attendance to discuss security at the District’s facilities. Ms. Ooten introduced herself and her colleague, Mr. Post, and reported that they performed a site survey to determine security breaches. She discussed a new product for surveillance that provide a thermal heat detection. Ms. Ooten noted that Sentri-Force coordinates with law enforcement upon detection and determination of a breach in security, install and manage the equipment with 24/7 surveillance and attention, service their own equipment, and live monitoring. Sentri-Force’s protocol is to call law enforcement, establish a point of contact, and provide video retrieval to law enforcement.
Mr. Browne suggested that Sentri-Force be given an opportunity to assemble a proposal pursuant to the District’s needs and Board’s preference for combined District Administration Building and Water Plant facility, as well as separate proposals to discuss during March’s meeting.
15. 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 K.
Mr. Jenkins updated the Board on Water Plant Improvements and requested approval of Pay Estimate No. 16 in the amount of $27,832.14. He reported that a quote received for installation of a small gate for walk-in access and modifications to the existing pipe gate was substantially more than anticipated. He recommended soliciting for bids for this project. Mr. Jenkins reported that steps and the landing access were not included in the design for the raised Motor Control Center building (“MCC”). The cost for design by J/C was at no cost to the District, however, the quote was substantially higher than anticipated and he recommended installation by a separate contractor. Mr. Jenkins stated that original plans included installation of a generator platform to access the generator; however, the generator platform was removed by addendum prior to the project being bid. He recommended that installation of the generator platform be completed by a separate contractor. Upon motion by Director Everhart, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to approve payment of Pay Estimate No. 16 in the amount of $27,832.14 to Tidal Constructions, Inc. for Water Plant Improvements and authorize solicitation of bids for a small access gate and pipe gate modification, steps and landing access for the MCC building, and the addition of a generator platform.
Mr. Jenkins reviewed discussions with Greenwood Utility District (“GUD”) regarding calculations for capacity and GUD’s engineers responded that such calculation require review by GUD’s attorneys. Discussion ensued with respect to adding this matter as an agenda item for the next Joint meeting with GUD.
Mr. Jenkins discussed with GUD’s engineers regarding expansion and moratorium on taps and GUD’s consultants would not comment. He told GUD that a package plant will need to be installed or hauling should be performed by GUD. GUD’s consultants noted that they would discuss options for GUD’s board.
Clean Water State Revolving Fund Application – (TWBD funds): Mr. Jenkins reported a cost of approximately $2,500 and is due March 3, 2020. It was the consensus of the Board to decline making an application for such funds.
Director Everhart inquired about the geological study of Sunrise Pines Section one and whether the required specifications were met. He recommended that J|C contact the previous engineer for documentation.
A copy of the Engineer’s Report on joint facilities matters from A&S Engineers is attached to the District Engineer’s Report.
Upon motion by Director Rettig, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the Engineer’s Report.
Director Balderas was not present for the vote, but a quorum was established.
16. Discuss insurance renewal. The Board considered renewal of insurance with McDonald and Wessendorff Insurance, a copy of which is attached as Exhibit L. Discussion ensued. 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 the insurance proposal as presented.
17. Indemnification of Directors. Mr. Wilson stated that to the extent that the directors and officer’s insurance policy does not cover losses of directors carrying out their lawful duties in good faith, then the District can indemnify the directors for losses to the extent of available surplus funds. He requested approval of a Resolution Authorizing Indemnification of Directors, a copy is attached as Exhibit M. Upon motion by Director Rettig, seconded by Director Everhar, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Resolution Authorizing Indemnification of Directors.
18. Report on Eminent Domain annual filing. Mr. Wilson stated that the District is required to file an annual report by February 1, 2020, with the Texas Comptroller of Public Accounts related to its eminent domain powers. He reported there are no changes from last year’s report and that NRF has filed the report on the District’s behalf. No action was requested of the Board.
19. 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.
20. Approve Resolution Appointing Agent for the 2020 Directors Election. Mr. Wilson suggested that the Board appoint an agent to replace Ms. Presser. He 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 appoint Jane Maher as the District’s agent and approve the Resolution Appointing Agent for the 2020 Directors Election, a copy is attached as Exhibit N.
21. Approve Order Calling Directors Election. Mr. Wilson presented an Order Calling Directors o the Board a Resolution Authorizing Publication of Notice of Intent Not to Use An Electronic Voting System, a copy is attached as Exhibit O. 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 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 P.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned.
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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
(DISTRICT SEAL)