PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
JUNE 19, 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, June 19, 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”); Rhonda Patterson 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”); Sergeant Terry Ganey of the Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Gary Syzek of Systems Project Management; Michael Murr of Murr Incorporated; 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.
Donna Beveridge, President of Stonefield Terrace Homeowners Association (“Stonefield HOA”), updated the Board on construction of the proposed Stonefield park. Ms. Beveridge noted that the park will be open to all District residents and not just resident of Stonefield. Ms. Beveridge stated that $70,000 has been committed for such park. Ms. Beveridge asked that the Board consider removing the hurricane fencing at Stonefield Manor and Van Hut in order to improve access to the proposed park.
Director Woods entered the meeting at this time.
Next, Jerry Bartholomew of Resolution Real Estate (“RRE”) presented information about the Rutherford Apartments 114-unit multi-family complex project (the “Rutherford”). Mr. Bartholomew discussed other RRE developments in the Houston area.
Mr. Jenkins next updated the Board on his meeting with RRE and reported that he has reviewed anticipated wastewater flow and connections. Mr. Jenkins stated that as Greenwood Utility District’s (“Greenwood”) Bypass Project moves forward as anticipated, he has no concerns with wastewater service to the Rutherford.
Ms. Beveridge exited the meeting at this time.
Mr. Barner asked Mr. Bartholomew to explain the process for completing the Rutherford, including the timeline. Mr. Bartholomew responded that the Rutherford will take 18 months to two (2) years. Mr. Jenkins stated that he is comfortable with the District providing service to the Rutherford, subject to the Bypass Project’s completion.
Director Balderas inquired about the definition of “work force housing” and Mr. Bartholomew responded that it is a tax credit development and renters have to have a yearly income of $45,000 to qualify for residency. Mr. Bartholomew added that rent will be approximately $800 per month for a two (2) bedroom apartment. Mr. Bartholomew stated that the project will pay taxes and taxes are not abated. Mr. Bartholomew discussed the support of Commissioner Ellis and local churches for the Rutherford.
As no further public comments were offered, the President instructed the Board to proceed with the agenda.
Patrol Service Report
Deputy Ganey presented and reviewed the Patrol Service Report for June 2018, a copy of which is attached hereto.
Director Everhart stated that a four-wheeler got stuck in the Sunrise Pines detention pond (the “Pond”) which he reported to the Constable on May 20, 2018. Director Everhart discussed the amount of time it took for law enforcement to respond to his call. Deputy Ganey asked Director Everhart to contact him if no one responds to his calls in the future.
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 May 15, 2018, and the special meeting of May 10, 2018. Upon a motion by Director Rettig, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting held on May 15, 2018, and the special meeting of May 10, 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 sign abatement.
Mr. Syzek discussed an open storm sewer street inlet at Van Hut and Crystal Cove and indicated that he reported this matter to Deotis Gay at Harris County Precinct 1 so that they could repair it.
Mr. Syzek next discussed abandoned cars in the District.
Mr. Syzek then discussed damage to the Sunrise Pines’ Pond by all-terrain vehicles. Discussion ensued regarding the installation of bollards and a cable fence on Gardenia Mist. Mr. Syzek presented Storm Water Solutions’ (“SWS”) proposal in the amount of $988 to install bollards and a cable fence, a copy of which is attached to his report. Discussion ensued regarding whether SWS provided a Form 1295 Certificate of Interested Parties.
Mr. Syzek then discussed the District’s membership in the Greens Bayou Coalition (“GBC”) and it was the consensus of the Board that Kelley Snook, Executive Director of GBC, attend the next meeting.
Director Balderas asked Mr. Syzek to take photographs of the fence that Ms. Beveridge discussed during public comment so the Board could review her request further.
Tax Assessor-Collector’s Report
The Tax Assessor-Collector’s Report was presented by Mrs. Patterson, a copy of which is attached hereto. Ms. Yanez first reported that 96.07% of the 2017 taxes have been collected as of May 31, 2018.
Mrs. Patterson next reported that notices regarding late fees for non-payment of 2017 taxes were mailed to property owners in May 2018.
Mrs. Patterson then reported that the Delinquent Tax Roll is attached to the Tax Assessor-Collector’s Report.
Mrs. Patterson presented the Annual Escheated Funds Report, a copy of which is attached hereto.
Upon a motion by Director Balderas, 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 1960 through 1968 from the Tax Account.
Mrs. Patterson exited the meeting at this time.
ENGINEER’S Report
Mr. Jenkins first reported that Reddico Construction (“Reddico”) completed clearing of the water line easements areas and staking for construction of the Beltway 8 Water Line Loop (the “Water Line Loop”). Mr. Jenkins next reported that Reddico anticipates commencement of construction of the water line in the next few weeks and the completion date is July 31, 2018.
Regarding the Water Plant Improvements Project, Mr. Jenkins reported that the contractor, Tidal Construction, Inc. (“Tidal”), is 95% complete with construction of the ground storage tank and was instructed to delay taking the facilities offline until September 2018. Mr. Jenkins also reported that Jones|Carter is completing an analysis of the remaining work to be performed. Mr. Jenkins presented Tidal’s Pay Estimate No. 5 in the amount of $402,466.50 and recommended payment. Discussion ensued regarding capacity in the Water Plant to which Mr. Jenkins stated capacity in such plant is sufficient. Mr. Jenkins also reported that he is still looking at raising the floor elevation of the motor control center and will present more information at the July 17, 2018 Board meeting.
Mr. Jenkins then reported that Chief Solutions will begin work on the cleaning and televising the 24-inch wastewater line along Tidwell in the next few weeks. Mr. Jenkins went on to report that Jones|Carter spoke with the Harris County Permitting Department and no permits will be required for such work.
Concerning the Rutherford, Mr. Jenkins recommended moving forward with the project, subject to Greenwood’s Bypass Project to Tidwell Lakes discussed earlier in the meeting.
Mr. Jenkins reported that Jones|Carter met with Greg Roberston of Sunrise Plastic on May 30, 2018, and reviewed the proposed facilities to provide water and sanitary sewer service. Mr. Jenkins noted that annexation of the Sunrise Plastic tract is pending. Mr. Jenkins presented a preliminary cost estimate for extending the District’s water line from Crystal Cove Drive to Green River Drive, and an exhibit showing water line and a proposed private pump station and force main, copies of which are attached to the Engineer’s Report. Mr. Jenkins recommended Sunrise Plastic put up funds to proceed with the project. Mr. Barner updated the Board about his discussion with Mr. Jenkins and Ms. Schlachter and placing the wastewater line in the public right-of-way. Discussion ensued regarding private lift station and force main pumping into the public wastewater line.
Next, Mr. Jenkins reported that Harris County (the “County”) plans to expand C. E. King Parkway from Tidwell Road to Beltway 8 and that Jones|Carter received a request for record drawings of the District’s utilities.
Mr. Jenkins then reported that Sheldon Independent School District (“SISD”) is proposing a water line along C. E. King Parkway and Tidwell Road (the “Water Line Project”). Mr. Jenkins went on to report that SISD claims that the water line will be dedicated to the City of Houston (the “City”) near the transmission line that provides surface water to the District and Greenwood. Mr. Jenkins further reported that Jones|Carter reviewed the plans and prepared a list of review comments on behalf of the District. Mr. Jenkins discussed a letter and written comments to the Water Line Project from Mr. Barner, Jones|Carter and A&S Engineers, Inc. (“A&S”). Mr. Barner explained that the Water Line Project as proposed would affect service to the Districts and that he was urging the County to deny approval.
Mr. Jenkins reported that the District is required by the Texas Commission on Environmental Quality (the “TCEQ”) to have either an elevated storage tank or receive approval for an exception for over 2,500 equivalent single-family connections (“ESFCS”). Mr. Jenkins presented a memorandum that summarizes the scope of work and outlines the proposed engineering fees for a study, a copy of which is attached to the Engineer’s Report. Mr. Jenkins requested the Board’s authorization to complete such study and elevated storage tank alternative capacity request (the “ACR”) application for an amount of $50,000. Mr. Barner stated that the engineering fees for obtaining the ACR can be placed in the next bond issue. Discussion ensued.
Mr. Jenkins next reported that Global New Millennium Development (“Global”), located at Tidwell Road and Beltway 8, submitted an inquiry for available water and wastewater capacity on May 23, 2018. Mr. Jenkins stated that Global was advised Jones|Carter is currently evaluating water and wastewater capacities.
Mr. Jenkins reported that the District received an inquiry of available water and wastewater capacity from Terra Associates, Inc. (“Terra”) for a 24.65-acre multi-family development at the northwest corner of East Little York and Beltway 8. Mr. Jenkins stated that Terra was advised Jones|Carter is currently evaluating water and wastewater capacities. Mr. Jenkins explained the equivalent single-family connection analysis. Extensive discussed ensued.
Regarding the Forest Park Apartment fire line, Mr. Jenkins reported that Jones|Carter received a set of plans on June 8, 2018, for review and he expects to complete review of the plans this week.
Mr. Jenkins next reported that Jones|Carter and Mr. Barner are preparing a change in project scope application to reallocate the construction funds for the Wastewater Treatment Plant Expansion Project to engineering funds. Mr. Jenkins added that Jones|Carter is including an escrow release in the application for the release of funds for the surface water transmission facility land costs. Mr. Jenkins stated that the application should be submitted before the July Board meeting.
Upon a motion by Director Balderas, seconded by Director Everhart, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, and acted on the following:
1) approved Tidal Pay Estimate No. 5 in the amount of $402,466.50;
2) authorized Jones|Carter to prepare a commitment letter to the Rutherford, subject to Greenwood bypassing wastewater from the Rutherford to Tidwell Lakes;
3) request funds from Sunrise Plastic for the public water line; and
4) authorized Jones|Carter to complete the ACR application at a cost of $50,000.
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 7.53 months’ operating reserve.
In response to a question regarding the Sunrise Plastic water line, Mr. Jenkins stated that the $200,000 figure includes engineering fees.
In response to Director Balderas’ question regarding the Annual Energy Billings, Mr. Chapline stated that the Lift Station No. 10 generator run time was too long. Mr. Chapline reported that MDS is reviewing logs and an email will be sent to the Board upon review of such logs.
Ms. Bailey last discussed issuing the unclaimed property report and explained that this is a report that is required to be filed with the State each year regarding customer funds that have remained uncollected for three (3) years.
Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board: 1) approved the Bookkeeper’s Report, as presented; 2) authorized payment of checks numbered 9210 through 9279 from the General Fund; 3) authorized payment of checks numbered 1734 through 1738 from the Capital Projects Fund; and 4) authorized the Bookkeeper to file the unclaimed property report.
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 102.4% 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 that the District used 6,000,000 gallons of groundwater over the amount allocated by the Harris-Galveston Subsidence District (the “HGSD”). The HGSD has informed the District that groundwater credits must be used to pay for the disincentive fees incurred by the District and Greenwood during the period of time when the surface water transmission facility was out of service due to Hurricane Harvey. Mr. Chapline went on to report that the Advisory Committee is sympathetic due to Hurricane Harvey and he will know more in approximately three (3) weeks.
Mr. Chapline then reported concerning the Write-Off List dated May 23, 2018, identifying four (4) accounts totaling $377.69 for the Board’s approval.
Mr. Chapline next reported that the Delinquent Letter Accounts Listing Due June 18, 2018, is attached to the Operator’s Report.
The Board directed Mr. Chapline to delay installation of bollards and gates at Gardenia Mist and Ryan Ridge.
Regarding the status of the District’s Federal Emergency Management Agency (“FEMA”) claims, Mr. Chapline reported that the claim for installation of a back-up generator is pending and reimbursement for the District Administration Building is moving fairly quickly.
Upon a motion by Director Rettig, seconded by Director Balderas, 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.
Mr. Murr entered the meeting at this time.
Parkway/Greenwood Joint Facilities report
Concerning the updated water and wastewater projects, Mr. Jenkins presented a memorandum from A&S detailing the District/Greenwood WWTP Flowrate Analysis (the “Analysis”), a copy of which is attached to the Joint Facilities Report. Mr. Jenkins reminded the Board that design of WWTP expansion was approved at the May 15, 2018 Board meeting. Mr. Jenkins explained the Analysis and discussed potential tracts for future annexation by the District. Mr. Jenkins reported that the District needs approximately 781,005 gallons per day estimated on current WWTP flow.
Mr. Jenkins next updated the Board regarding the Outfall Repair Project and reported that A&S awaits establishment of vegetation before it can be accepted with the Harris County Flood Control Department.
Mr. Jenkins then reported that the WWTP fine screen has been installed and should be operational by the end of the week.
Mr. Barner stated that he awaits a letter from the City regarding the status of the request for an increase of surface water received from the City.
Mr. Barner discussed Greenwood’s Bypass Project and the A&S capacity lease letter. Mr. Jenkins and Ms. Schlachter indicated their agreement with A&S’ numbers. Mr. Jenkins stated that completion of the Bypass Project will reduce flow to the WWTP.
Mr. Jenkins presented the proposal and cost estimate for design of the Surface Water Transmission Facility – Phase I, a copy of which is attached to the Joint Facilities Report. Mr. Jenkins stated that Jones|Carter has reviewed the design. Upon a motion by Director Rettig, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board authorized A&S to begin design of the Surface Water Transmission Facility – Phase I; and authorized Jones|Carter to advise A&S of increased flow to 781,000 gallons.
BUILDING SUPERINTENDENT’S REPORT
Director Rettig had nothing new to report.
DISTRICT WEBSITE REPORT
Mr. Barner discussed his communications with Off Cinco regarding the District website.
PARK PLAN
Mr. Murr presented a story board and recreational opportunities, copies of which are attached hereto, for the District’s proposed park plan (the “Park Plan”). Mr. Murr discussed Phase I of the Park Plan, including areas to include and the budget for the Park Plan. Mr. Murr asked the Directors for ideas of what they want included in Phase I.
Discussion ensued regarding the number of town hall meetings to discuss the Park Plan with the public. Mr. Murr recommended one (1) town hall meeting. Director Balderas indicated that she would like to schedule a special meeting to discuss the Park Plan in more detail.
Mr. Barner reported that the park bond election should be called at the July 17, 2018 Board meeting and the District needs to move forward with scheduling a special meeting with Mr. Murr to plan how it wishes to inform voters of the Park Bond election. It was the consensus of the Board to schedule a special meeting on Wednesday, June 27, 2018, at 6:00 p.m. Mr. Jenkins stated that he will put together information to include in the Order Calling Park Bond Election.
Mr. Murr then discussed maintenance of the wetlands outdoor classroom (the “Classroom”) and the need for other entities’ participation in the Classroom. It was reported that park bond funds cannot be used for maintenance of the Classroom.
Director Everhart stated that he is interested in trails and pavilions. The Board discussed its interest in recreational fields. Discussion ensued regarding the amount of park bonds to request authorization from the voters.
Attorney’s Report
Mr. Barner presented an authorization letter to AT&T regarding an account number for internet service at the District Administration Building.
EXECUTIVE SESSION
Pursuant to Chapter 551 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 9:16 p.m. to discuss real estate matters and matters within the attorney/client privilege. Present for the executive session were the Board of Directors, Mr. Barner and Ms. Brewer.
RECONVENE IN OPEN SESSION
As of 9:21 p.m., the President declared the Executive Session was ended and the public session was resumed. Upon a motion by Director Everhart, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the counter-offer to the County according to the terms discussed in closed session.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
PASSED AND APPROVED this the 17th day of July, 2018.
Secretary, Board of Directors
June 19, 2018 Minutes Signature