PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
MAY 15, 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, May 15, 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: Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”); Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”); Bradley Jenkins and Kaci Schlachter of Jones|Carter (“Engineer” or “JC”); Charlie Chapline of Municipal District Services (“Operator” or “MDS”); Deputy Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Bill Blitch of Blitch Associates, Inc.; Jennifer Day of McCall Gibson Swedlund Barfoot PLLC (“Auditor”); Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”); Gary Syzek of Systems Project Management; and Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”).
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.
Public Comment
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.
AUDITOR’S REPORT
Ms. Day distributed and discussed the District’s draft audit report for the fiscal year ended December 31, 2017 (“FYE 2017 Audit”), and presented a representation letter for execution by the Board. Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the FYE 2017 Audit as presented, subject to a ten (10) day comment period for Directors and consultants to review and provide any additional comments, and authorized submittal of such audit to all regulatory agencies.
Mr. Blitch exited the meeting at this time.
direct waste REPORT
Mr. Singleton presented the Direct Waste Report. Mr. Singleton reported that the volume of garbage on Saturdays is increasing. Mr. Singleton also reported that he will present a bill from the recycling facility regarding the volume of recycling in the District.
Mr. Singleton next reported that he had spoken with Shannon Waugh at Off Cinco regarding publication of information regarding garbage collection on the District website. Discussion ensued regarding a notification of the garbage collection schedule on next month’s water bills.
Director McNeil then asked if the Parkway Forest Homeowners Association contacted Mr. Singleton regarding recycling bins and Mr. Singleton responded that he had not been contacted. Extensive discussion ensued regarding Eco Waste & Recycling bins. Mr. Singleton stated that if he receives one (1) or two (2) requests for recycling bins, Direct Waste will provide such bins, however, if a large number of requests is received, Mr. Singleton will speak with the Board.
Ms. Day and Mr. Singleton exited the meeting at this time.
Patrol Service Report
Deputy Ganey presented and reviewed with the Board the Patrol Service Report for May 2018, a copy of which is attached hereto. Deputy Ganey reported regarding criminal mischief at vacant homes in the District and that theft of lawn equipment has increased. Deputy Ganey noted that school deputies will patrol the District after the end of the current school year.
Deputy Ganey exited the meeting at this time.
Minutes
The President then directed the Board to consider the approval of the minutes of the regular meeting held on April 17, 2018, and the special meetings of April 12, 2018, and April 24, 2018. Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting held on April 17, 2018, and the special meetings of April 12, 2018, and April 24, 2018, as presented.
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 hurricane season begins on June 1 and that recovery from Hurricane Harvey is still in progress.
Mr. Syzek next reported that a representative of the Sheldon Volunteer Fire Department will attend the June crime watch meeting.
Mr. Syzek reminded the Board that the East Reach of the Greens Bayou Coalition will meet on May 16, 2018.
Mr. Syzek provided an update on the status of the master park plan. Mr. Syzek reported that he attended a Precinct One Park Smart workshop.
Mr. Syzek next discussed the walking trail and reported that Storm Water Solutions (“SWS”) applied herbicide to brush along the fence line and it is beginning to take effect. Mr. Syzek indicated that he received a quote from SWS to add crushed granite in various low spots on the walking trail, a copy of which is attached to his report.
Mr. Syzek discussed the status of the Wastewater Treatment Plant (“WWTP”) outfall repair project. Mr. Jenkins stated that he would contact A&S Engineers, Inc. (“A&S”) regarding potential erosion problems.
Mr. Syzek reported that he inspected the Regional WWTP with the MDS plant operator.
Mr. Syzek reported that construction of the District’s Water Plant (“WP”) is ongoing.
Discussion ensued regarding the requirements to provide commercial water service to Sierra Ranch Storage.
Mr. Syzek then presented a Drought Map, a copy of which is attached to his report.
Upon a motion by Director Everhart, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved the quote from SWS in the amount of $2,000 to add crushed granite along low spots on the walking trail, subject to receipt of a Form 1295 Certificate of Interested Parties.
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 96.65% of the 2017 taxes have been collected as of April 30, 2018.
Ms. Yanez next reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report.
Upon a motion by Director Everhart, seconded by Director Rettig, 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 1947 through 1959 from the Tax Account.
ENGINEER’S Report
Mr. Jenkins first reported that Jones|Carter held a pre-construction meeting on May 14, 2018, and the Notice to Proceed was issued for the Second Water Distribution Line to Service Sunrise Pines. Mr. Jenkins noted that work should begin later this month. Mr. Jenkins reviewed the project memorandum, a copy of which is attached to his report, that summarizes the scope of work and outlines the proposed engineering fees.
Regarding the Water Plant Improvements Project, Mr. Jenkins reported that Jones|Carter met with the contractor, Tidal Construction, Inc. (“Tidal”), and the District Operator at the project site to discuss the status of construction. Mr. Jenkins reported that Joners|Carter is completing an analysis of capacity and will be analyzing some of the remaining proposed work. Mr. Jenkins went on to report that the original project schedule anticipated taking the WP offline during the peak water usage and Jones|Carter recommends delaying the project so the WP will not be taken down until September 2018. Director O’Neill inquired regarding whether the delay would affect the cost of the project and Mr. Jenkins responded that he does not see an issue. Mr. Jenkins reviewed the project memorandum, a copy of which is attached to his report, that summarizes the scope of work and outlines the proposed engineering fees.
Mr. Jenkins then discussed the Cleaning and Televising of the 24-Inch Sanitary Sewer Project and reported that the contractor, Chief Solutions, anticipates beginning construction by the end of the month. Mr. Jenkins reported that the pre-construction meeting is scheduled for May 21, 2018. Mr. Jenkins reviewed the project memorandum, a copy of which is attached to his report, that summarizes the scope of work and outlines the proposed engineering fees.
Mr. Jenkins discussed his conversation with the contractor of a construction project located behind O’Reilly’s Auto Parts. Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized Jones|Carter to investigate the issuance of a utility commitment.
Mr. Barner next discussed an inquiry from a multifamily residential developer developing the U. S. Homes tract. Discussion ensued. Ms. Bailey reported that the $1,500 for a feasibility study was deposited to the District in January or February 2018. It was the consensus of the Board to have Messrs. Barner and Jenkins coordinate further discussion with the developer.
Upon a motion by Director Woods, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented; and authorized proceeding with construction phase services of the following projects: 1) Second Water Distribution Line to Serve Sunrise Pines, 2) Improvements to the District’s WP, and 3) Cleaning and Televising of the 24-Inch Sanitary Sewer.
Bookkeeper’s Report
The Bookkeeper’s Report and Investment Report were presented to and reviewed with the Board by Ms. Bailey, copies of which are attached hereto. Ms. Bailey reported that the District has approximately 7.50 months’ operating reserve.
In response to a question regarding Lift Station No. 10 energy bills, Mr. Chapline indicated that he would investigate such energy bills and report back to the Board.
Upon a motion by Director Everhart, seconded by Director Balderas, 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 9145 through 9209 from the General Fund; and
2) authorized payment of checks numbered 1730 through 1733 from the Capital Projects Fund.
Ms. Yanez exited the meeting at this time.
Operator’s Report
The Operator’s Report was presented by Mr. Chapline, a copy of which is attached hereto.
Mr. Chapline reported that there are 2,426 connections in the District. Mr. Chapline next reported that the District accounted for 87% 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 updated the Board regarding water received from the City of Houston (the “City”) and informed the Board that a meeting with the City is scheduled for May 16, 2018, to look at the metering station.
Mr. Chapline then reported concerning the Write-Off List dated April 25, 2018, identifying 11 accounts totaling $4,666.71 for the Board’s approval.
Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due May 15, 2018, is attached to the Operator’s Report.
Regarding the status of the District’s Federal Emergency Management Agency (“FEMA”) claims, Mr. Chapline reported that he participates in conference calls with FEMA on a weekly basis. Mr. Chapline added that claims have been submitted for the District Administration Building and pumping.
Mr. Chapline then discussed the Operator’s Emergency Response Procedure and indicated that he had nothing to review with the Board at this time. Mr. Jenkins stated that Jones|Carter will review the Emergency Preparedness Plan and any changes will be brought to the Board’s attention.
Mr. Chapline presented the 2017 Consumer Confidence Report (“CCR”), a copy of which is attached hereto. Discussion ensued concerning the process for distributing the CCR. Mr. Barner stated that a specific URL link for the CCR created by Off Cinco can be included on the District website and on utility bills.
Upon a motion by Director Rettig, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented, and authorized write-offs and terminations.
Upon an amended motion by Director Balderas, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board: 1) approved the Operator’s Report, as presented; 2) authorized write-offs and terminations; and 3) authorized distribution of the CCR, pending preparation and creation of a URL.
Parkway/Greenwood Joint Facilities report
Mr. Jenkins first stated that Ms. Schlachter will handle the District’s day-to-day work with oversight. The Joint Facilities Report was then presented, a copy of which is attached hereto.
Mr. Jenkins reported that his office received all plans from Sherrington-Humble and the transfer of records is moving in a favorable direction.
Mr. Jenkins discussed the WWTP and the Operator’s work to keep the facilities within permit requirements. Mr. Jenkins reported that Jones|Carter received the influent data analysis from A&S and it appears that the existing WWTP is overloaded both hydraulically and organically and recommended executing the proposal from A&S to begin the engineering design and analysis. Mr. Jenkins added that the first engineering service required will be a geotechnical investigation to test soil conditions on the site. Mr. Jenkins explained that such step is necessary for any project with structural facilities to complete the structural engineering design. Extensive discussion ensued.
Mr. Jenkins next stated that the Engineer and Attorney will work on an agreement regarding the District’s fair share of capacity. Mr. Barner discussed the District’s share of geotechnical expenses. Mr. Barner also discussed Mr. Radcliffe’s conversation with the Texas Commission on Environmental Quality (“TCEQ”) regarding the use of surplus funds for the District’s share of design expenses.
Discussion ensued regarding TCEQ rules related to the timeline for design and construction. Director McNeil stated that she must be assured that Jones|Carter will work on the District’s behalf. Mr. Jenkins stated that Jones|Carter will be heavily involved in the review of the project.
Upon a motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved commencement of the geotechnical investigation and to begin design of the WWTP Expansion to 1.45 MGD.
Mr. Barner reported that he received the final order regarding acquisition of property for the Surface Water Transmission Facility and that the final order will be sent to the TCEQ.
Mr. Jenkins discussed the outfall repair project and expressed his concerns regarding erosion at the site.
Mr. Jenkins reported that the scheduled delivery date of the fine screen is June 15, 2018, and it will take one (1) to two (2) days to install the fine screen.
Regarding the status of increased water received from the City, Mr. Barner reported that he requested an update from the City. Mr. Barner also updated the Board regarding the Tidwell Road Widening Project.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig had nothing new to report.
DISTRICT WEBSITE REPORT
Director Balderas discussed the logo survey requested by Off Cinco.
It was reported that information regarding Jones|Carter was added to the District website.
Attorney’s Report
Mr. Barner updated the Board regarding the Sunrise Plastic annexation and reported that the legal description has been revised to remove the additional acreage not owned by Sunrise Pines.
Mr. Barner reported that the District Directory and the TCEQ District Information Form have been updated to reflect new terms of office and District email addresses.
Discussion ensued regarding the Bookkeeper establishing a new account for internet service at the District Administration Building.
Mr. Barner reported that he continues to prepare the draft Amended and Restated Wastewater Treatment Plant Agreement.
Mr. Barner reported that Arbitrage Compliance Reports were distributed to the Board and asked Board to contact him if they have any questions.
Next, Mr. Barner presented a Resolution Authorizing Application to TCEQ for Declaration of Surplus Funds and Change in Project Scope, a copy of which is attached hereto. Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the Resolution, as presented.
Mr. Barner then presented an Order Changing Meeting Place Outside the District (the “Order”), a copy of which is attached hereto, to remove Sherrington-Humble’s office as a District meeting place and to add Jones|Carter’s office as a District meeting place. Upon a motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Order.
May 5, 2018 Directors Election
Director McNeil executed and delivered the Certificates of Election for Directors Balderas, Everhart and Woods, copies of which are attached hereto.
Mr. Barner presented the Director Qualification Affidavits, copies of which are attached hereto, to Directors Balderas, Everhart and Woods, who executed same, thereby verifying their qualifications to serve as Directors of the District.
Mr. Barner next presented Directors Balderas, Everhart and Woods with their sworn Statements of Elected/Appointed Officer, copies of which are attached hereto, as required by the Texas Constitution, which statements were then duly executed by Directors Balderas, Everhart and Woods.
Mr. Barner then presented the Oaths of Office to Directors Balderas, Everhart and Woods, copies of which are attached hereto, which were then executed by Directors Balderas, Everhart and Woods.
Mr. Barner inquired if the Board would like to change the slate of the officers at this time. The Board stated that they would like to keep all officers the same.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 19th day of June, 2018.
Secretary, Board of Directors