PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
March 11, 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 March 11, 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 Balderas, thus constituting a quorum. All members of the Greenwood Utility District (“GUD”) were present, except Director Flight, 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 and Deputy P. Trujillo, Harris County Precinct 3 Constable’s Office; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeeper for the District; Mr. David Patterson 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. Bill Blitch of Blitch Associates, Inc., (“Advisor” or “Blitch”) financial advisor for the District and GUD; Ms. Karen Sears of Storm Water Solutions; Mr. Reginald Wilson and Ms. Jaquice Horton of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Mr. Anthony Lasky and Ms. Dietra Bonds of Municipal Accounts and Consulting L.P. (“MAC”), operator for GUD; Mr. Ronald D. Anderson ll of A&S Engineering Inc. (“A&S”), engineer for GUD; and Mr. Elliot M. Barner of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorney for GUD; 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. Joint Discussion with Greenwood Utility District:
A. Discuss Wastewater Treatment Facility capacity and take necessary action; President McNeil requested clarification as to why additional connections have been issued at the Regional Wastewater Treatment Plant by GUD (the “RWWTF”), despite having no available capacity. Discussion ensued. Mr. Wilson stated that NRF will issue an official demand letter to RBAP requesting GUD cease connecting any new parties into the RWWTF. Mr. Wilson stated that he is working with Mr. Barner and A&S to calculate the reimbursement fee for GUD’s excessive use according to the latest lease agreement. President McNeil requested an estimate from Mr. Barner as to how soon GUD would be able to go back to using the waste water utilities plant on Tidwell. Mr. Barner stated that GUD is currently working to secure this alternative option but it will take more time.
President McNeil recognized Mr. Anderson, who reviewed and presented the Engineer’s report for the month of March 2020 for PUD/GUD Joint Facilities, a copy of which is attached hereto as Exhibit “B.” Mr. Anderson stated that he is coordinating with Harris County Flood Control District (“HCFCD”) to discuss the next steps for approval of a proposed solution regarding the outfall erosion issues at the RWWTF and will keep the Board up-to-date with any changes.
B. Update on new Wastewater Treatment Facility and take necessary action; Mr. Anderson updated the Board on the status of design of the Wastewater Treatment Plant. He stated that the site clearing, grubbing and detention design is complete and he expects to present bids at the April Board meeting. Mr. Anderson requested to authorize A&S to advertise the Site Cleaning, Grubbing and Detention project. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize A&S to advertise the Site Cleaning, Grubbing and Detention project.
C. Update on Water Treatment Facility and take necessary action; Mr. Anderson stated that the Hach DDS (“HACH”) flow meters are installed. He stated that the District and GUD will not need to pay the invoice received for the month of February due to operations falling below less than 95 percent.
President McNeil asked Mr. Elliot for an update on Mr. Syzek’s approved clearance to access the Wastewater Treatment Plant (“WWTP”) without prior 24-hour notice to MDS. Mr. Elliot stated that he was not aware of a request for access and would discuss decision with GUD at their next meeting. Mr. Syzek confirmed that his current professional licenses are up-to-date.
Mr. Elliot informed the District regarding the Tidwell Expansion project. He stated that GUD has not received a formal request and has not made any agreements to provide street lighting on Tidwell.
Ms. Bailey presented Mr. Anderson a payment for impact fees to the City of Houston (“COH”) on behalf of the District.
The Board of GUD, Mr. Lasky, Ms. Bonds, Mr. Anderson, and Mr. Barner left the meeting at this time.
3. Minutes of previous meeting(s). Minutes of the special meeting on January 15, 2020 and regular meeting of February 12, 2020 previously distributed to the Board, were presented for consideration and 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 minutes of the special meeting on January 15, 2020 and regular meeting of February 12, 2020 as presented.
4. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who reported on the status of recycling. No action was requested of the Board.
5. 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 COH 96” transmission pipeline break that ruptured during the course of a routine repair on February 27, 2020. He stated that the COH is indicating that the main cause of the pipeline failure is aging infrastructure as the concrete line was over 35-years old. Mr. Syzek reported that District residents did not experience any interruptions of service and did not have to boil water prior to consumption.
Mr. Syzek reported on the intersection of East Little York and Beltway 8. He stated that improvements are ongoing with no clear indication as to what the purpose of the project is. He stated that he is attempting to contact the Adkission Group which is the developer of the project for updates.
Mr. Syzek reported on the HCFCD channel improvements. He stated that he walked the entire HCFCD channel from the new CE King High School to Hidden Meadows in Greenwood and observed an extensive flood control dredging project.
Mr. Syzek reported that he met with MDS to inspect the RWWTF. He stated that he requested MDS to monitor the sewer trunk-line at Sunrise Pines for additional settlement. Mr. Syzek reported that at this time, the settlement appeared to be natural settlement due to the sewer line installation. He stated that he also noticed infiltration into a manhole at Lift Station No. 2.
Mr. Syzek reported on the Forest Park Apartments. He stated that the apartments appear to be ready to begin leasing operations once again as shown on their new website.
Mr. Syzek reported on the Greens Bayou Coalition Meeting. He stated that extensive work has begun with their Bayou Greenways Project.
6. Report from Storm Water Solutions. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy is attached as Exhibit “D.” Ms. Sears informed the Board of a new appointment in her schedule that is right before the District’s monthly meeting. She requested to be placed further down the agenda for future meetings in order to avoid missing her report presentation. No action was requested from the Board.
7. 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 February 2020, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit “E.” He and Deputy Trujillo reported on officer’s shifts and coverage for the District.
8. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Mr. Patterson presented to and reviewed with the Board the Tax Assessor-Collector’s Report for February, a copy of which is attached as Exhibit “F.” Mr. Patterson reported that 93.61% of the District’s 2019 taxes have been collected as of February 29, 2020.
Upon motion by Director Rettig, seconded by Director Woods, 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.
9. Approve Fourth Amendment to Agreement for Services for Tax Assessor/Collector Services. President McNeil recognized Mr. Patterson, who discussed any concerns the Board may have regarding the proposed amendments to the Tax Assessor/Collector Services agreement. Mr. Patterson stated that the proposed amendment included two additional service options. He stated that the first proposed amendment option for the Boards review is a new service called Positive Pay, offered through Wells Fargo, which systematically compares checks presented for payment to issued-check files to detect fraudulent activity. He stated that the District would be changed a service fee of $35 per month with no additional fee to be collected from the Tax Assessor Collector. He stated that the second proposed amendment includes sign up for website hosting through Off Cinco for additional fee. Mr. Wilson confirmed that the District already has an agreement with Off Cinco that manages the website.
Upon motion by Director Rettig, seconded by Director Woods, 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 Tax Assessor/Collector services to add the Wells Fargo Positive Pay account monitoring service fee for $35 per month.
10. 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 “G.”
Mr. Patterson left the meeting at this time.
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 Bookkeeper’s Report, to authorize payment of check nos. 10571 to 10627 from the District’s General Operating Fund, and check nos. 1825 and 1827 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 February 2020 a copy is attached as Exhibit “H.” He noted that 93% of the water pumped was billed for the period from January 15, 2020 to February 15, 2020.
Mr. Browne reviewed maintenance and repairs for February 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 179 delinquent accounts in accordance with the District’s Rate Order and write off accounts to the collection agency in the aggregate amount of $300.84.
Mr. Browne presented a contract from SentriForce for five years of surveillance services at $2,381.50 per month and a one-time installation cost of $270.63. Mr. Browne requested additional time to discuss amendments to the agreement prior to the Boards approval.
Mr. Browne reported that the Identity Theft Prevention Program annual review is complete and ready for the Boards approval.
Mr. Browne requested approval for repairs to the infiltrating manhole located at 12634 Enchanted path at a cost of $3,800.
Mr. Browne reported on the installation of the Water Plant walkway gate and relocating the pipe gate that is currently blocking the keypad by entrance, for a total amount of $2,500. Mr. Browne stated that with the Boards approval MDS can install the walkway gate and reposition the pipe gate.
Upon motion by Director Rettig, seconded by Director Woods, 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, approve the Identity Theft Prevention Program annual review, approve repairs to the infiltrating manhole located at 12634 Enchanted path at a cost of $3,800, approve the installation of the Water Plant walkway gate and relocating the pipe gate for a total cost of $2,500.
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 “I.”
Mr. Jenkins reported on the Water Plant improvements. He stated that the contractor, Tidal Construction, is coating the booster pump piping, and J|C is working with MDS and CenterPoint to setup new electrical and natural gas meters. Mr. Jenkins stated that he received Pay Estimate No. 17 and recommending payment in the amount of $93,996.54.
Mr. Jenkins reported on Lift Station No. 2. He stated that it is the understanding of J|C that NRF sent conveyance documents to Parkway Baptist Church. He stated that J|C has attempted to reach out but have not heard back from Pastor Jim Miller. Mr. Jenkins stated that J|C is ready to begin the design for the lift station expansion when authorized. Discussion ensued. President McNeil stated that she would try to reach out to the church to follow up.
Mr. Jenkins reported that Sunrise Plastic Enterprise stated that they will submit the additional deposit required to move forward with the annexation once they obtain approval for the sanitary sewer plans.
Mr. Jenkins reported on a request received from the developer of the Global New Millennium regarding an opportunity for the District to maintain the detention pond required to be constructed for the development of Tidwell Road on the East side of the Beltway. Discussion ensued. There was no action taken by the Board at this time.
Mr. Blitch left the meeting at this time.
Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the Engineer’s Report, approve Pay Estimate No. 17 to Tidal Construction in the amount of $93,996.54.
13. Discuss security cameras at the Water Plant and administration building, and take necessary action. This item was discussed during the Operations report.
14. Building Superintendent’s Report. There were no updates to report.
15. Discuss Cyber Security Training; Mr. Wilson presented to and reviewed with the Board the Cybersecurity Training Memorandum, a copy of which is attached hereto as Exhibit “J.” He reported that as per the Texas legislature, the cybersecurity training is required for all directors annually, with the first deadline of June 14, 2020. Discussion ensued regarding the available options for the training.
16. Approve Certification and Order Declaring Unopposed Candidates Elected to Office and Cancelling Elections. Mr. Wilson presented to and reviewed with the Board the Order Declaring Unopposed Candidates Elected to Office (“Order”), a copy of which is attached hereto as Exhibit “K.” He stated that District’s election is cancelled and that Directors McNeil and Rettig are unopposed and will be re-elected to office. Upon motion by Director Woods, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to adopt the Order and approve the Certification Of Unopposed Status For The Directors.
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 April 8, 2020.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)