PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
AUGUST 14, 2019
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 August 14, 2019, 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. Also attending all or parts of the meeting were Ms. Nancy Ashworth, representative of the Forest Park Apartments; Mr. Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”), solid waste and recycling collectors for the District; Sargent Terry Ganey, Harris County Precinct 3 Constable’s Office; Mr. Bill Blitch of Blitch Associates, Inc., (“Advisor”) financial advisor for the District; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”), bookkeeper for the District; Ms. Delia Yanez 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 “JIC”), engineers for the District; Mr. Calvin Browne of Municipal District Services (“Operator” or “MOS”), operator for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Ms. Karen Sears of Storm Water Solutions; and Mr. Reginald Wilson and Ms. Brenda Presser of Norton Rose Fulbright US LLP (“NRF”), attorney for the District.
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. President McNeil opened the floor for comments and no comments were received by the Board.
2. Minutes of previous meeting(s). Minutes of the special meeting on July 8, and regular meeting on July 10, 2019, previously distributed to the Board, were presented for consideration and approval. Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the special meeting on July 8, and regular meeting on July 10, 2019, as presented. Director Woods was not present during the vote, but a quorum was established.
Following the vote Director Woods entered the meeting.
3. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who reported on the status of recycling. No action was requested of the Board.
4. Report from Systems Project Management. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s Project Management Report, a copy is attached as Exhibit B.
President McNeil reported on the Board’s vIsIon for the consultants to work together cohesively for the best interests of the District. She discussed restructuring Mr. Syzek’s title to General Manager to act as the Board’s liason for coordination with the District’s consultants to communicate to the Board activities and updates on District facilities, projects and activities. President McNeil acknowledged MDS’s participation in meeting with Mr. Syzek once a month to review facilities and report matters to the Board that may be of interest or concern between meetings. Mr. Syzek expressed his appreciation in the Board’s confidence in his capabilities and accepted the Board’s request for him to be General Manager.
Upon motion by Director Everhart, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to accept the General Manager’s report.
5. Report from Storm Water Solutions. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy is attached as Exhibit C. No action was requested of the Board.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. President McNeil recognized Sargent Ganey, who reviewed the Security Report for the month of July 2019, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit D.
Sargent Ganey reported on coordination with Precinct One on addressing nuisance abatement and reminded the Board that Precinct Three officers are certified in nuisance abatement and are available to assist residents and the Board with related issues.
7. Discuss additional security cameras at the Water Plant. Mr. Wilson reported on discussion last month to obtain additional proposals for comparison in costs and services. Mr. Browne reported that he is in process of obtaining proposals and requested the Board’s consideration to table this to next month. The Board concurred to table this matter, as requested.
8. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Yanez presented to and reviewed with the Board the Tax AssessorCollector’s Report for July, a copy of which is attached as Exhibit E. Ms. Yanez reported that 97.94% of the District’s 2018 taxes have been collected as of July 31, 2019.
Upon motion by Director Rettig seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax AssessorCollector’s Report and to authorize the expenditures listed therein.
9. Review Investment Policy and accept related party disclosures. Mr. Wilson presented and requested the Board’s approval of a Resolution Reviewing Investment Policy and Making any Desirable Changes Thereto, a copy of which is attached hereto as Exhibit F. He noted that the District’s policy is consistent with state law, and that NRF recommends no changes. 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 Resolution Reviewing Investment Policy and Making any Desirable Changes Thereto and accept the related party disclosures.
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. 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 Bookkeeper’s Report, to authorize payment of check nos. 10145 to 10209 from the District’s General Operating Fund, and check nos. 1796 through 1801 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.
11. Discuss modified rates for Forest Park Apartments, and receive update on occupancy. President McNeil recognized Ms. Ashworth, of the Forest Park Apartments (“Forest Park”), who presented to the Board a cost analysis of other properties similar in comparison to the Forest Park Apartments. She noted that other properties are being charged at multi-family rates and Forest Park Apartments is being charged at commercial rates. Mr. Wilson reported on last month’s discussion about reviewing the Rate Order to determine the District’s stance on rates for multi-family properties. Mr. Browne reported on the current rates for multi-family and commercial rates. Discussion ensued regarding an assessment of the multi-family rates. President McNeil stated that the Board will review to determine appropriate rates for multi-family structures.
12. 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 July 2019, a copy is attached as Exhibit H. He noted that 95% of the water pumped was billed for the period from June 15, 2019 to July 15, 2019.
Mr. Browne reviewed maintenance and repairs for July 2019 of the District’s individual and joint facilities.
Mr. Browne reported that 4,828,933 gallons were transferred from Greenwood Utility District (“GUO”) to the Tidwell Lakes Wastewater Treatment Plant for the month of July.
Mr. Browne requested that the Board authorize termination of 173 delinquent accounts in accordance with the District’s Rate Order.
Mr. Browne discussed the results of the annual fire hydrant inspections, a copy is attached as Exhibit H-1. He requested approval to perform recommended repairs for an estimated cost of $4,600.00, and replace 41 reflectors for an estimated cost of $471.50. He stated that he does not recommend water blasting and repainting the 2,013 hydrants and noted that this task can wait about a year.
Mr. Browne reported that the 200 HP well motor is in need of repairs and explained that the well pump provides back-up water when the District is not receiving surface water. He presented and reviewed a proposal from CC Water Services LLC (“CC”), a copy is attached to the Operations Report, to perform repairs on the well pump for an estimated cost of $12,385.00. He stated the proposal from CC includes estimated costs for equipment, labor, repairs and inspection and they estimate that the repairs will take approximately two to three weeks to complete. Mr. Browne next presented a proposal from Alsay, Incorporated (“Alsay”) to perform repairs for an estimated cost of $17,820.00, which does not include labor and transportation to and from site, which is estimated to cost an additional $2,040.00. He reported that Alsay included in their proposal an estimated cost for a new three-gallon oil reservoir with two oil drippers, one manual and the other solenoid operated, with heaters for approximately $1,800.00. Mr. Browne stated that Alsay provides a one-year warranty on materials and workmanship. He stated that Alsay also provided an estimated cost for replacement of the well pump motor in lieu of repairs to the existing well pump motor, which would cost approximately $22,010.00 and comes with a two and one-half year warranty.
Discussion ensued regarding warranty from CC. Upon motion by Director Rettig, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the proposal from CC to make repairs to the well motor for an estimated cost of $12,385.00, pending confirmation that CC will provide a one-year warranty for repairs on the well motor.
Mr. Browne reviewed a proposal from Elite Pumps & Mechanical Services LLC to coat Lift Station Nos. 1 and 2 appurtenances, including parts and labor for an estimated cost of $62,350.00. Discussion ensued regarding bidding requirements and coating integrity pursuant to the engineer’s specifications. Mr. Jenkins noted that the proposed coating items are included in the bond application for Lift Station No. 2. Mr. Wilson discussed two options for the Board’s consideration: (1) have the engineers prepare a packet and advertise for bids; or (2) have the engineers send the specifications to the Operator for the contractor to follow for this project. Following a discussion, the Board concurred to table action on this matter pending the Operator’s receipt of specification from the Engineer and re-determination of the scope of the project.
Upon motion by Director Everhart, seconded by Director Rettig, 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 and authorize MOS to send to collections delinquent accounts in the aggregate amount of $6,287.91.
13. 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 /.
Mr. Jenkins updated the Board on Water Plant Improvements and requested approval of Pay Estimate No. 11 in the amount of $110,156.22. Mr. Jenkins presented Change Order No. 2 to elevate the Motor Control Center Building (“MCC”) and the Generator Foundation. He reported that the contractor will absorb the cost to elevate the MCC because it was constructed approximately one foot and nine inches below the design. He stated that the Generator Foundation was constructed correctly. Mr. Jenkins stated that the booster pump foundations were constructed pursuant to design, but could be raised approximately six-inches to be at the same level as the MCC and Generator Foundation. He recommended elevating the booster pump foundations and noted that the approximate cost has been requested from the contractor. Director Rettig asked how the new concrete will bond with existing cured cohcrete. Mr. Jenkins responded that the contractor must engage a structural engineer to desi.gn a plan to adhere the existing floor with the new concrete floor and tie into the existing floor. President McNeil asked if there will be additional warranties for the modified flooring and Mr. Jenkins reported that the warranty will be the same for the modified flooring as for the entire project, which is one year. Discussion ensued. Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve Pay Estimate No. 11 in the amount of $110,156.22 and authorize the contractor to elevate the floor of the MCC building by constructing an interior concrete floor at the contractor’s expense.
Mr. Jenkins reported that proposals were requested from three contractors for installation of crushed concrete for additional parking at the Water Plant Site. He stated that Tidal Construction submitted the lowest bid in the amount of $12,760.00 for installation of crushed concrete. The cost of installation of crushed concrete and installation of a louver in the chemical building is included in Change Order No. 5 for a total cost of $14,530.00. Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve Change Order No. 5 for an increase in the contract amount of $14,530.00 for installation of crushed concrete for additional parking and installation of a louver in the chemical building.
Mr. Jenkins reported that JJC is preparing the metes and bounds description for conveyance of property from Parkway Baptist Church to the District for expansion of Lift Station No. 2.
Mr. Jenkins reported that Global New Millennium Development (“GNM”) is requesting the Board’s approval to install a temporary septic system to serve a gas station and Burger King until the Wastewater Treatment Plant expansion is complete. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question put to the Board, the Board voted unanimously to approve the installation of a temporary septic system requested by GNM.
Mr. Jenkins reported on a request for service from The Tabernacle of Praise Church, who is interested in constructing a water well to serve their property. He requested authorization to respond that the District does not have available capacity for service. Discussion ensued regarding the District’s ability to provide capacity within the District and tracts to the east side of Beltway 8. 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 authorize JIC to respond that the District does not have capacity to serve the church.
Mr. Jenkins discussed cost estimate updates to Bond Application Report No. 16 (“BAR 16”). Mr. Blitch discussed a proposed issuance of a Bond Anticipation Note (“BAN”) to meet the District’s deadline to pay disincentive impact fees to the City of Houston without penalties. The costs for issuance of the BAN will be included in BAR 16. Director Rettig departed the meeting and a quorum remained. Mr. Jenkins reported that a revised cost estimate was received on the Surface Water Transfer Facility and the District’s share increased by approximately $136,785. In addition, Mr. Jenkins updated the Board that the Wastewater Treatment Plant Design is nearing 60% and the District’s pro-rata share of the project decreased from 55.50% to 55.11 %, however, the District’s costs increased by $991,462.00 due to the rising cost of construction across the industry. The revised costs have been included in BAR 16. Discussion ensued regarding selling bond amounts to meet project costs and TCEQ approval. The Board considered holding a special meeting to further discuss submission of BAR 16. It was the consensus of the Board to poll the absent directors for availability to establish a quorum for a meeting on Tuesday, August 20, 2019 at 6:15 p.m.
Mr. Jenkins reported on a meeting with GUD’s engineer to discuss flow monitoring methodology and GUD’s engineer received a proposal from Hach Company for installation of a flow meter at the influent lines adjacent to the WWTP. He stated the purpose of the flow meters is to measure the flow from each District for monitoring the sanitary sewer coming from each District. The cost to install each meter is approximately $1,800.00 and the lease is $1,100.00 per meter per month for 12 months and guarantees 95% accuracy. Discussion ensued. Upon motion by Director Everhart seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the proposal submitted by Hach Company for installation and 12-month lease for the influent meter on the District’s line, subject to GUO also installing the same meter on their line and paying the lease.
A copy of the Engineer’s Report on joint facilities matters from A&S Engineers is attached to the District Engineer’s Report under Exhibit I.
14. Report from Financial Advisor. Mr. Blitch stated that he has no further comments.
15. Building Superintendent’s Report. No report was received by the Board.
16. Approve lnterlocal Agreement with HGSD for the WaterWise Program for the 2019-2020 school year. Mr. Wilson presented and reviewed an lnterlocal Agreement between the District and the Harris-Galveston Subsidence District (“HGSD”) regarding participation in sponsorship of the Water Wise Program. He reported that the Water Wise Program is a conservation education program taught to students at local elementary schools. HGSD is asking for sponsorship of students at Monahan Elementary. 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 lnterlocal Agreement, as presented.
17. Review new legislation for water districts. Mr. Wilson referenced the legislative summary distributed to the Board, a copy is attached as Exhibit K. He briefly discussed the changes in tax law pertaining to the maintenance and operations tax, updates to requirements for the District’s web site, election information, and the focus on transparency.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned.
The foregoing minutes were passed and approved by the Board of Directors on September 11, 2019.
August 14, 2019 Minutes Signature