PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
APRIL 17, 2018
The Board of Directors (the “Board” or “Directors”) of Parkway Utility District (the “District”) met in regular session, at 6:30 p.m., at 12843 Tidwell Road, Houston, Texas, on Tuesday, April 17, 2018, pursuant to notice of said meeting posted in accordance with Chapter 551 of the Texas Government Code; whereupon the roll was called of the members of the Board, to-wit:
Brenda McNeil – President
Alphonso P. Rettig, Jr. – Vice President
Jennifer Balderas – Secretary
Ron Everhart – Assistant Secretary
Gloria M. Woods – Director
All members of the Board were present. Also attending were: Jorge Diaz of McLennan & Associates, L.P. (“Bookkeeper”); Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”); Charlie Chapline of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”); Gary Syzek of Systems Project Management; Shannon Waugh of Off Cinco; Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons listed on the attached Attendance Roster.
The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board of Directors was present, called the meeting to order and declared it open for such business as may come before it.
The President first opened the meeting to public comment. As no public comments were offered, the President instructed the Board to proceed with the agenda.
Patrol Service Report
Deputy Ganey presented and reviewed with the Board the Patrol Service Report for March 2018, a copy of which is attached hereto. Deputy Ganey reported that burglaries in the District have decreased.
Deputy Ganey exited the meeting at this time.
PROPOSALS FOR ENGINEERING SERVICES
Wallace Trochesset and Jimmy Flowers of LJA Engineering (“LJA”) introduced themselves to the Board. Mr. Trochesset provided the history of LJA and stated that LJA’s office is located within close proximity to the District in East Houston.
Mr. Flowers explained the duties that LJA provides to water district clients.
Director Balderas entered the meeting at this time.
A lengthy discussion ensued.
Messrs. Trochesset and Flowers exited the meeting and Ms. Madrigal and Mr. Kurzy entered the meeting at this time.
Mr. Kurzy then explained the duties that AEI Engineering, LLC provides.
A lengthy discussion ensued.
Ms. Madrigal and Mr. Kurzy exited the meeting at this time.
direct waste REPORT
Mr. Singleton presented the Direct Waste Report and discussed garbage collection on March 30 and 31, 2018. Mr. Singleton next discussed the areas of Sunrise Pines where recycling collection was missed.
Discussion ensued regarding the status of the Exclusive Residential Refuse Service Contract between the District and Direct Waste. Mr. Barner indicated that a few minor changes need to be made to the contract.
Next, the Board discussed including a notice of the new garbage and recycling collection days on water bills, and providing information to the neighborhood homeowners associations. Mr. Chapline recommended including a flier with the water bills at a cost of approximately $300. Mr. Chapline stated that he will coordinate with Mr. Singleton regarding the bill insert. Mr. Singleton stated that he will provide photographs of acceptable recycling items.
Discussion then ensued regarding heavy trash pickup and collection of storm and construction debris. The importance of heavy trash collection only on Saturdays and no other days was discussed.
Systems Project Management Report
Mr. Syzek presented the Systems Project Management Report, a copy of which is attached hereto. Mr. Syzek first provided an update regarding nuisance abatement.
Mr. Syzek reported that Harris County posted warning signs that signs cannot be posted in the County’s right-of-way at the intersection of Tidwell Road and C. E. King Parkway.
Mr. Syzek next discussed walking trail spring maintenance and brush along the fence line of the walking trail. Mr. Syzek indicated that he would remind Storm Water Solutions to apply herbicide to the fence line.
Mr. Syzek discussed the Water Plant Improvement Project and his inspection of the Regional WWTP.
Mr. Syzek then reminded the Board of the Greens Bayou Coalition East Reach meeting on April 18, 2018, the Park-Smart Precinct One Plan at the San Jacinto College North Campus on April 18, 2018, the Association of Water Board Directors Spring Breakfast on April 20, 2018 and a panel discussion at the Hess Club on May 18, 2018 regarding Hurricane Harvey Recovery.
DISTRICT PROJECT Report
Mr. Barner first discussed CES Utilities, Inc.’s (“CES”) completion of the ten-inch (10″) Force Main and twelve-inch (12″) Waterline Project along Deep Valley. The final payment was released to Jason Murray of CES.
Brian Cunningham of Project Surveillance, Inc. (“PSI”) reported regarding the Water Plant Improvements Project. Scott Moreau of Tidal Construction, Inc. (“Tidal”) updated the Board on the status of the project and inquired regarding when the Operator can cut-off water for the project. Discussion ensued regarding a three (3) month downtime and that the District will have two (2) sources of water, from the City of Houston and the interconnect with Greenwood Utility District (“Greenwood”). Mr. Moreau reported that electrical gear will arrive in August and installation of such gear should take three (3) months. Mr. Moreau also reported that he has received no drawings related to the change in project. Mr. Chapline indicated that he would like to meet with Tidal and PSI regarding the project.
Mr. Cunningham then described PSI’s services and stated that PSI would like to continue working with the District.
Mr. Moreau exited the meeting at this time.
There was nothing new to report regarding the Beltway 8 Waterline Extension to Sunrise Pines Project.
Mr. Barner updated the Board regarding the Cleaning and Televising 24-inch (24″) Trunk Sanitary Sewer Project and reported that he had spoken with Chief Solutions, Inc.
Tax Assessor-Collector’s Report
The Tax Assessor-Collector’s Report was presented by Ms. Yanez, a copy of which is attached hereto. Ms. Yanez first reported that 95.14% of the 2017 taxes have been collected as of March 31, 2018.
Ms. Yanez next reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented; and authorized payment of checks numbered 1941 through 1946 from the Tax Account.
Michael Murr entered the meeting at this time.
The Bookkeeper’s Report and Investment Report were presented to and reviewed with the Board by Mr. Diaz, copies of which are attached hereto. Mr. Diaz reported that the District has approximately 7.90 months’ operating reserve.
Mr. Diaz next discussed the insurance premium for the joint facilities and verified that Greenwood’s calculations of the District’s percentage of such premium are correct. Mr. Barner stated that the District will not be billed for its percentage of the premium until May 2018.
Upon a motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented, and acted on the following:
1) authorized payment of checks numbered 9083 through 9144 from the General Fund; and
2) authorized payment of checks numbered 1725 through 1729 from the Capital Projects Fund.
Ms. Yanez exited the meeting at this time.
The Operator’s Report was presented by Mr. Chapline, a copy of which is attached hereto.
Mr. Chapline first reported that he had spoken with District customer, Catheline Fuselier, regarding her account. Mr. Chapline presented a history ledger of Ms. Fuselier’s account, a copy of which is attached to his report, and recommended adjusting the account to the monthly average.
Mr. Chapline presented the Consumer Confidence Report (“CCR”), a copy of which is attached hereto.
Discussion next ensued about scheduling a special meeting to discuss the Operator’s recommended amendments to the District’s Rate Order.
Mr. Chapline then presented the results of televising three (3) segments. Discussion ensued.
Mr. Chapline reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 90% of water billed to customers.
Repairs and preventative maintenance performed at the water plant, water distribution system, sanitary and storm sewer collection systems, and lift station were next discussed.
Mr. Chapline then reported concerning the Write-Off List dated March 21, 2018, identifying four (4) accounts totaling $726.14 for the Board’s approval.
Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due April 17, 2018, is attached to the Operator’s Report.
Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board: 1) approved the Operator’s Report, as presented; 2) approved adjusting Ms. Fuselier’s account to the average; and 3) authorized write-offs and terminations.
Parkway/Greenwood Joint Facilities report
Mr. Barner presented the Joint Facilities Report, a copy of which is attached hereto.
Mr. Barner discussed the Amended and Restated Wastewater Treatment Plant Agreement with Greenwood and stated that he will revise such agreement to address how costs are attributed to Phases I and II of the Regional Wastewater Treatment Plant Expansion Project.
Mr. Barner reported that he received the final order regarding acquisition of property for the Surface Water Transmission Facility and that the next step will be for the Engineers to begin discussion on design of such facilities.
Mr. Murr presented his proposal, a copy of which is attached hereto, and recommended preparing a Master Plan in anticipation of the November 2018 Park Bond Election (“Park Bond Election”). Mr. Murr discussed preparing sketches, renderings and schedules for presentation at town hall meetings.
Mr. Murr next discussed scheduling and compensation of his services. Mr. Murr noted that if the Park Bond Election fails, that his contract will end and the plans will belong to the District.
Mr. Murr recommended scheduling one (1) or two (2) community meetings and publishing drawings on the District’s website. Mr. Murr added that he will attend the District’s monthly meetings and special meetings, if necessary.
In response to a question regarding whether there is time to prepare for a November 2018 Park Bond Election, Mr. Barner stated that there is still time to prepare for such Election, however, work will need to be done quickly. Mr. Barner discussed Election deadlines.
Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board accepted Murr Incorporated’s proposal.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig had nothing new to report.
DISTRICT WEBSITE REPORT
Ms. Waugh presented Off Cinco’s Service Agreement, a copy of which is attached hereto, and suggested increasing Off Cinco’s monthly fee to $425 per month. Discussion ensued regarding document monitoring.
Ms. Waugh next discussed additional email accounts for the Directors at a cost of $25 per month. Mr. Barner discussed water district email accounts. Discussion then ensued regarding text messaging services and Ms. Waugh noted there is no limit to the number of text messages.
Ms. Waugh stated that Off Cinco now provides printing services.
Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved: 1) increasing Off Cinco’s monthly fee to $425; 2) pay per use text alerts at a $50 per month base fee; 3) five (5) additional email accounts at a cost of $25 per month; and 4) three (3) logo design options at a cost $225.
Mr. Barner updated the Board regarding the Sunrise Plastic annexation and stated that he will prepare an addendum to the agreement. Mr. Barner added that an updated survey of the property will need to be prepared.
Mr. Barner then presented a proxy for the election of members of the board of directors of the Build America Mutual Assurance Company (“BAM”). It was the consensus of the Board to decline execution of the proxy or election of any members to the BAM board.
The Board next considered renewal of the District’s annual membership in the Greens Bayou Coalition (“GBC”) as a Professional Member for 2018-2019 in the amount of $1,000. Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board authorized its annual membership renewal in GBC as a Professional Member for 2018-2019.
The President then directed the Board to consider the approval of the minutes of the regular meeting held on March 20, 2018, and the special meetings of March 6, 2018, March 8, 2018 and March 29, 2018. Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting held on March 20, 2018, and the special meetings of March 6, 2018, March 8, 2018 and March 29, 2018, as presented.
DATES FOR SPECIAL MEETING
Discussion ensued regarding a date for a special meeting to consider proposals for engineering services, review the Financial Advisor’s residential water rate study and review Rate Order amendments recommended by the Operator. It was the consensus of the Board to schedule a special meeting on Tuesday, April 24, 2018, at 6:30 p.m.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 15th day of May, 2018.
Secretary, Board of Directors