Meeting Minutes 2019-12-11

PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING

DECEMBER 11, 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 December 11, 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, thus constituting a quorum. Also attending all or parts of the meeting were Eli Sasson of Tidwell Wastewater Utility, LLC; Ms. Vivian Cooper and Ms. Mozel Rettig, residents of the District; Mr. Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”), solid waste and recycling collectors for the District; Lieutenant Terry Ganey, Sargent P. Sullivan (Parkway Forest – Night Shift), and Deputy P. Trujillo (Night Shift Deputy), 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 JonesJCarter (“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 Ms. Leslie Bacon and Ms. Brenda Presser of Norton Rose Fulbright US LLP (“NRF”), attorneys 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. There were no comments from the public.

2. Discuss rates for Forest Park Apartments, and take necessary action. Ms. Baconreported that the District is responding to an Open Records request from the attorneys for Forest Park, LLC.

3. Minutes of previous meeting(s). Minutes of the regular meeting on November 13, 2019 previously distributed to the Board, were presented for consideration and approval. 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 minutes of the regular meeting on November 13, 2019, as presented.

4. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who reported on the status of collection and recycling. The Board asked about the holiday collection schedule.

Ms. Presser noted that she received a copy of the schedule from Off Cinco and a request to post on the District’s web site. It was the consensus of the Board that Ms. Presser forward the schedule to Director Balderas for review and further authorization to post on the District’s website.

5. Report from General Manager. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy is attached as Exhibit B. No action was requested of the Board.

6. 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. Ms. Sears reported that alternatives to the bollards are being reviewed. She also noted that illegal activity has decreased and monitoring will continue.

7. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. President McNeil recognized Lieutenant Ganey, who reviewed the Security Report for the month of November 2019, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit D. Discussion ensued regarding number of current contract officers and District’s ability to amend contract at a later date to add additional officers. Lieutenant Ganey noted that a task force will be in place on New Year’s Eve to monitor drivers under the influence.

8. Discuss Harris County Precinct Three Constable contract renewal for 2020-2021 and take any necessary action. The Board discussed the expiration and renewal of the District’s current contract for Precinct Three constables and additional officers for the new term. 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 renew the contract for Precinct Three constables with no changes.

9. 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 November, a copy of which is attached as Exhibit E. Ms. Yanez reported that 3.46% of the District’s 2019 taxes have been collected as of November 30, 2019.

Upon motion by Director Balderas, 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, to authorize the expenditures listed therein, and authorize the District’s delinquent tax attorney to coordinate with MOS to terminate service to delinquent tax accounts ..

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 F.

Upon motion by Director Rettig, seconded by Director Balderas, 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. 10392 to 10445 from the District’s General Operating Fund, and check nos. 1813 through 1816 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.

11. 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 November 2019, a copy is attached as Exhibit G. He noted that 102% of the water pumped was billed for the period from October 15, 2019 to November 15, 2019.

Mr. Browne reviewed maintenance and repairs for November 2019 of the District’s individual and joint facilities.

Mr. Browne reported that 5,581,547 gallons were transferred from Greenwood Utility District (“GUO”) to the Tidwell Lakes Wastewater Treatment Plant for the month of November.

Mr. Browne presented and discussed a proposal from NTS Pumps, Motors & Controls for $7,346.00 for installation of a new exhaust fan and ancillary components to correct air flow at Lift Station No. 1. He stated that additional proposals have been requested and that he anticipate receipt prior to the District’s next meeting. He requested that the Board authorize approval of repairs at Lift Station No., pending receipt of comparable proposals, in an amount not to exceed $7,346.00.

Mr. Browne requested that the Board authorize termination of 205 delinquent accounts in accordance with the District’s Rate Order.

Upon motion by Director Rettig, seconded by Director Balderas, 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 the installation of a new exhaust fan and ancillary components to correct the air flow at Lift Station No. 1 for a cost not to exceed the current proposal of $7,346.

12. Discuss security cameras at the Water Plant and administration building, and take necessary action. Mr. Browne update the Board on the status of a proposal from Zaladium Analytics and compilation of information for a cost estimate. No action is requested on this item at this time.

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 H.

Mr. Jenkins updated the Board on Water Plant Improvements and requested approval of Pay Estimate No. 14 in the amount of $81,163.08. 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 payment of Pay Estimate No. 14 in the amount of $81,163.08 to Tidal

Constructions, Inc. for Water Plant Improvements.

Mr. Jenkins updated the Board on the 2019 Sanitary Sewer Cleaning and Televising videos and reviewed a preliminary draft of recommendations based on the results. He stated that approximately 61 manholes could not be located and recommend that the District’s operator complete a manhole survey and inspection of missing manholes prior to beginning a sanitary sewer rehabilitation project. Mr. Jenkins requested approval of Pay Estimate No. 2 and Final in the amount of $15,342.00 and acceptance of the project. Upon motion by Director Balderas, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve payment of Pay Estimate No. 12 and final in the amount of $15,342.00 and approve acceptance of the project.

Mr. Jenkins discussed the feasibility analysis of the Sunrise Plastics property. No action is requested.

The Board discussed a joint meeting with Greenwood Utility District to review and approve joint budgets on the Wastewater Treatment Plant and Surface Water Treatment facility. Ms. Bacon confirmed that she will coordinate with Mr. Wilson and the Board for Greenwood Utility District to meet prior to or at the beginning of the agenda for Greenwood’s regular meeting on Wednesday,

December 16, 2019 prior to Greenwood’s regular meeting.

A copy of the Engineer’s Report on joint facilities matters from A&S Engineers is attached to the District Engineer’s Report.

14. Report from Financial Advisor. Mr. Blitch reviewed

15. Resolution Approving Preliminary Official Statement; authorize distribution of Preliminary Official Statement and publication of Notice of Sale of the Bonds, and approving other related matters. Mr. Blitch presented to and reviewed with the Board a financial analysis supporting the new bonds, Preliminary Official Statement (“POS”) and Notice of Sale, for the proposed sale of the District’s Unlimited Tax Bonds, Series 2020, copies of which are attached hereto as Exhibit I and 1-1, respectively.

Ms. Bacon reviewed with the Board the Order Adopting and Authorizing Official Notice of Sale and Bid Form, Authorizing Distribution Thereof and of a POS and Authorizing Publication of Notice of Sale (“Authorizing Order”), a copy of which is attached as Exhibit J.

Upon motion by Director Balderas, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve the POS, the Notice of Sale, the Authorizing Order and authorize publication of the Notice of Sale, pending receipt of TCEQ’s certified approval for the issuance of the bonds.

16. Building Superintendent’s Report. No report was received by the Board.

The Board considered special meeting dates for the annual review of consultant contracts. Following discussion, the Board concurred to meet on January 15 at 6: 15 p.m. to review the Tax Assessor/Collector, Bookkeeper, Legal and General Manager’s contracts. The Board agreed to meet on January 22 at 6: 15 p.m. to review the Operator, Engineer and Financial Advisor’s contracts.

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.