PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
DECEMBER 18, 2018
THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §
The Board of Directors (the “Board” or “Directors”) of Parkway Utility District (the “District” or “Parkway”) met in regular session, at 6:30 p.m., at 12843 Tidwell Road, Houston, Texas, on Tuesday, December 18, 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 (Al) Rettig, Vice President
Jennifer Balderas, Secretary
Ron Everhart, Assistant Secretary
Gloria Woods, Director
All members of the Board were present. Also attending were: Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan11); Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”); Bradley Jenkins, Kaci Schlachter and Bethany Miller of JoneslCarter (“Engineer” or “JoneslCarter”); Charlie Chapline and Rebecca Marcucci of Municipal District Services (“Operator” or “MDS”); Gary Syzek of Systems Project Management; Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons 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.
PUBLIC COMMENT
The President first opened the meeting to public comment.
Nancy Ashworth, with BH Management (“BH”), introduced herself and explained that Forest Park Apartments (“Forest Park”) had previously requested that the Board adjust Forest Park’s water and wastewater bill. Ms. Ashworth went on to explain that damages to Forest Park caused by Hurricane Harvey have resulted in an occupancy rate of 15%. Ms. Ashworth further explained that since the District’s water and sewer rate for multi-family service is based on the number of units in a multi-family complex and not the number of occupied units, Forest Park cannot afford to pay the water and wastewater bill from the District. An extensive discussion ensued regarding: 1) the District’s billing for multi-family service; 2) billing methodology in other municipal utility districts; 3) the District’s options for providing an adjustment to billing for Forest Park; and 4) a review of multi-family billing rates in Parkway.
Mr. Chapline suggested that the Board could make a determination that Forest Park’s available units were less than the total amount of units actually within Forest Park until such time Concerning the Lift Station No. 4 Emergency Sanitary Sewer Manhole Replacement Project, Mr. Jenkins presented Pay Estimate No. 2 and Final with the completed Affidavit of Bills Paid and Affidavit of Guarantee in the amount of $9,999.25 and recommended payment of same.
Next, Mr. Jenkins reported that the inspection of Lift Station Nos. 1, 2, 4 and 5 is scheduled for December 19, 2018, and he anticipates completing the inspection report in February 2019.
Mr. Jenkins next reported that JoneslCarter has completed the draft Flushing Plan for the flushing of the District’s water distribution system and MDS is reviewing such draft.
Mr. Jenkins then reported that a letter was sent on behalf of the District to Sunrise Plastic’s Enterprise, a copy of which is attached to his report, approving the sanitary tie-in to the District’s manhole on Dennis Way. Mr. Jenkins added that the letter requires the developer to submit construction plans for District review prior to final approval.
Mr. Jenkins next reported that JoneslCarter continues to work on the feasibility study for Global New Millennium (“Global”).
Regarding the Forest Park Fire Line, Mr. Jenkins reported that he awaits revised plans addressing JoneslCarter’s comments of the plan review.
Regarding the Rutherford Park Apartments (“Rutherford”), Mr. Jenkins reported that he has reviewed plans and submitted his comments to Rutherford’s engineer. Mr. Syzek further reported that he had been told that Rutherford’s contractor damaged a curb along Tidwell Road. In response to a question from the Board, Mr. Syzek stated that he would take pictures of such damage and provide such pictures to Rutherford.
Mr. Jenkins then reported that JoneslCarter is working on the water distribution model and will perform field testing for the Elevated Storage Tank Variance Alternate Capacity Request once the new booster pumps are operational.
Mr. Jenkins reported that JoneslCarter has completed preparation of Bond Application Report No. 16 (the “BAR”) and has provided same to Mr. Barner. Mr. Barner explained that he has reviewed the BAR and that there are some other items to be discussed before the BAR can be completed.
Mr. Jenkins reported that the Texas Commission on Environmental Quality approved the District’s Application for Approval of a Change in Project Scope and Approval to Release $1,469,704 from Escrow, a copy of which is attached hereto.
Mr. Jenkins presented JoneslCarter’s revised rate schedule and explained such rates.
Upon a motion by Director Rettig, seconded by Director McNeil, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved Pay Estimate No. 5 and Final and the Certificate of Acceptance for the Second Water Distribution Line to Serve Sunrise Pines Project; and 3) approved Pay Estimate No. 2 and Final and Certificate of Acceptance for the Lift Station No. 4 Emergency Sanitary Sewer Manhole Replacement Project.
BOOKKEEPER’S REPORT
The Bookkeeper’s Report and Investment Report were presented to and reviewed with the Board by Mrs. Bailey, copies of which are attached hereto. Mrs. Bailey reported that the District has approximately 6.79 months’ operating reserve.
Ms. Bailey next informed the Board that Mr. Barner had sent her a copy of the TCEQ’s letter approving the District’s most recent application for Change in Project Scope and Request for Release of $1,469,704 from Escrow. Ms. Bailey informed the Board that such funds, once release from escrow, could be deposited into the District’s general operating fund.
Ms. Bailey then presented the general operating fund budget and the Order Adopting Budget for Fiscal Year Ending (“FYE”) December 31, 2019, a copy of which is attached hereto.
Upon a motion by Director Balderas, seconded by Director Rettig, 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 9631 through 9701 from the General Funds
2) authorized payment of checks numbered 1760 through 1761 from the Capital Project Funds
3) approved the Order Adopting Budget for FYE December 31, 2019; and
4) adopted a resolution declaring intent to reimburse certain expenditures paid out of the Operating Fund
OPERATOR’S REPORT
The Operator’s Report was presented by Mr. Chapline, a copy of which is attached hereto.
Ms. Yanez exited the meeting at this time.
Mr. Chapline first reported that there are 2,425 connections in the District. Mr. Chapline next reported that the District accounted for 102% of water billed to customers.
Mr. Chapline went on to discuss repairs and preventative maintenance performed on the WTP, water distribution and sanitary sewer collection systems.
Mr. Chapline then presented the Write-Off List dated November 21, 2018, identifying ten (10) accounts totaling $1,943.88 for the Board’s approval.
Mr. Chapline next presented the Delinquent Letter Accounts Listing Due December 18, 2018, a copy of which is attached to the Operator’s Report. A discussion then ensued regarding postponement of terminations during the Holiday. It was the consensus of the Board to defer terminations until January 8, 2019.
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 effective for January 8, 2019.
PARKWAY/GREENWOOD UTILITY DISTRICT (“GREENWOD”) JOINT FACILITIES REPORT
Mr. Jenkins then presented the Joint Facilities Report, a copy of which is attached hereto. Mr. Jenkins reported that he met with A&S Engineers, Inc. (“A&S”) last week.
Mr. Jenkins reported that further modifications to the RWWTP’s fine screen (the “Screen”) have been made in the hopes of improving the Screen’s operation, which is frequently disrupted by large debris collected from both the District and Greenwood’s collection systems.
Next, Mr. Jenkins introduced Bethany Miller to explain certain elements of the A&S’ Preliminary Engineering Report (the “PER”) for the RWWTP Expansion Project. Ms. Miller reported that the PER has been completed and has been under review by JoneslCarter. Ms. Miller noted that A&S and JoneslCarter have identified three (3) items that need further discussion and comment from the Boards: 1) screening; 2) de-watering; and 3) disinfection.
Ms. Miller first explained various mechanical fine screen technologies that could be utilized at the RWWTP. Ms. Miller then advised the Board that JoneslCarter recommended the externally fed drum screen technology. An extensive discussion ensued regarding the effectiveness of such technology and the operations and maintenance costs for each technology discussed.
Ms. Miller next discussed current sludge-hauling methods and alternatives for de-watering sludge at the RWWTP. Ms. Miller advised the Board that JoneslCarter recommended continuing to use the mobile de-watering method. An extensive discussion ensued regarding such methods and the capital costs and operation and maintenance costs for each method discussed.
Ms. Miller then discussed current the disinfection chemical process and alternatives for the R WWTP. Ms. Miller explained that both gaseous and liquid chlorine disinfection systems are commonly used and that there are benefits to both processes. An extensive discussion ensued regarding both gaseous and liquid disinfection systems and the costs and regulatory requirements for such systems.
Upon a motion by Director Balderas, seconded by Director Woods, after full discussion and with all Directors present voting aye, the Board approved use of: 1) externally fed drum screen technology; 2) the mobile de-watering method; and 3) the gaseous chlorine disinfection system.
Mr. Jenkins reminded the Board the final report on the management of identified poorly draining areas near the R WWTP has been completed and that a summary of such report has been provided to the Board. Messrs. Jenkins and Mr. Barner added that the entire 200-page report is available for anyone that requests a copy.
Mr. Jenkins then presented A&S’s proposal for design of a 16″ surface water line along Tidwell Road. Messrs. Jenkins and Barner reminded the Board such line was required in order to receive the additional surface water from the City of Houston (the “City”), which is needed by Parkway and Greenwood. An extensive discussion ensued regarding the need for such line and the timing of such line’s design and construction, as well the effect of a delay in completion of such line on the District’s ability to receive additional surface water from the City. Upon a motion by Director Everhart, seconded by Director Balderas, after full discussion and with four (4) Directors present voting aye, and Director Rettig abstaining, the Board approved the A&S’ proposal for Professional Engineering Services of the Waterline Upgrade Along Tidwell Road, a copy of which is attached hereto.
Mr. Jenkins updated the Board regarding the Tidwell Road Improvement Project and discussed the summary of funding for different portions of the project. Mr. Barner reported that Harris County (the “County”) rejected the District’s and Greenwood’s counter-offer for the County’s purchase of an easement for the RWWTP site for the road widening project. Mr. Barner explained the final offer on the easement of $1.25.
Mr. Jenkins then requested that the Board schedule a special meeting to discuss the Global New Millennium Feasibility Study and the Capital Improvement Plan.
Mr. Barner next reminded the consultants and the Board that the budgets for the RWWTP and the SWTF needed to be approved for FYE 2019 and asked the consultants and the Board if there were any additional comments or questions about such budgets. Mr. Barner recommended that if there were no such questions, then the Board could entertain a motion to approve such budgets. Upon a motion by Director Balderas, seconded by Director Rettig, after full discussion and with all Directors present voting aye, the Board approved the Order Adopting Budget for RWWTP for the FYE December 31, 2019, a copy of which is attached hereto. Upon a motion by Director Everhart, seconded by Director Balderas, after full discussion and with all Directors present voting aye, the Board approved the Order Adopting Budget for SWTF for the FYE December 31, 2019, a copy of which is attached hereto.
ATTORNEY’S REPORT
Mr. Barner discussed comments to the Amended and Restated WWTP Agreement with Greenwood and inquired if a special meeting is necessary to review such agreement. Director Woods indicated that she has made comments to the agreement and recommended a special meeting to discuss the agreement. Mr. Barner discussed comments he has received to-date and asked the Board to provide further questions and comments to him by phone or by email prior to such special meeting.
Mr. Barner discussed Senate Bill 1812, which requires the District to file an annual eminent domain report with the State Comptroller.
Mr. Barner presented the Amended District Information Form (“ADIF”), a copy of which is attached hereto, and explained that the ADIF was revised to include park bond authority.
Mr. Barner then presented the 2019 Annual Agenda, 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: 1) authorized Mr. Barner to file the annual eminent domain report on behalf of the District; 2) approved the ADIF and authorized filing same in the Real Property Records of Harris County, Texas; and 3) acknowledged receipt of the 2019 Annual Agenda.
ANNUAL REVIEW OF CONSULTANTS’ CONTRACTS
Mr. Barner asked the Board for available dates to review the District’s consultants’ contracts. It was the consensus of the Board to schedule special meetings for such reviews as follows: 1) MDS on January 7, 2019, at 6:30 p.m.; 2) JoneslCarter on January 9, 2019, at 6:30 p.m., including the GNM Feasibility Study; 3) Blitch Associates, Inc., McLennan, and Gary Syzek on January 16, 2019, at 6:30 p.m.; and RBAP on January 21, 2019, at 6:30 p.m.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.
December 18, 2018 Minutes Signature