PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
APRIL 8, 2020
THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §
The Board of Directors (the “Board”) of Parkway Utility District (the “District”) convened in a regular session, at 6:15 p.m. on April 8, 2020, via teleconference pursuant to Section 551.125, Texas Gov’t Code as modified by the temporary suspension of certain provisions thereof pursuant to guidelines issued by the Texas Attorney General and approved by the Governor for use during the COVID-19 statewide disaster. A roll call was taken of the persons present:
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 Mr. Jamal Singleton of Direct Waste Solutions, Inc. (“Direct Waste”), solid waste and recycling collectors for the District; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), 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, Ms. Kaci Schlachter, and Ms. Katherine Vu of Jones|Carter (“Engineer” or “J|C”), engineers for the District; Mr. Calvin Browne of Municipal District Services (“Operator” or “MDS”), operator for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Mr. Bill Blitch of Blitch Associates, Inc., (“Advisor” or “Blitch”) financial advisor for the District and Greenwood Utility District; Ms. Karen Sears of Storm Water Solutions; Mr. Reginald Wilson and Ms. Jaquice Horton of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Ms. Mary Dubois of Acclaim Energy.
Pursuant to Section 551.054, Texas Gov’t Code, as modified by the temporary suspension of certain provisions thereof, notice of the meeting was posted on the District’s website within the time limits prescribed by law. A certificate of such posting is attached hereto as Exhibit A. The agenda packet was posted on the website as items became available incompliance with the guidelines issued by the Texas Attorney General.
Call to Order. Mr. Wilson called the meeting to order. He noted that the meeting was being held by teleconference in accordance with federal, state and county directives to slow the spread of COVID-19 by avoiding meetings that bring people together. He said the notice of the meeting included a toll-free dial-in number for members of the public to call so they can hear the meeting and address the Board. He noted that the meeting was being recorded and a recording would be available upon public request. Mr. Wilson then set out guidelines for the conduct of the meeting. He asked each speaker to identify themselves before speaking. He then proceeded with the meeting business:
1. Public Comments. There were no comments from the public.
2. Minutes of previous meeting(s). Minutes of the regular meeting of March 11, 2020 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 of March 11, 2020 as presented.
3. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who presented the Direct Waste Solutions Report, a copy is attached as Exhibit “B.” Mr. Singleton reported on status of the recycling, stating that they are collecting approximately 3,300 pounds per week from the 2,331 houses in the District. He also stated that due to the COVID-19 pandemic and the stay home orders, the volume of trash has greatly increased.
4. Presentation by Acclaim Energy. President McNeil recognized Ms. Dubois, who presented to and reviewed with the Board the Acclaim Energy Market Update, a copy is attached here to as Exhibit “C.” She stated that the District’s current contract ends on May 31, 2024.
Ms. Dubois presented information to the Board regarding an option to join an aggregation pool (“pool”), which will require the Board to extend the contract to April 2029. She stated that with joining the pool, the Board will save approximately 15 percent on their energy costs. Ms. Dubois reported that contract price for electricity will not exceed $0.03995, but that the CenterPoint charges will not be included in the price. Discussion ensued.
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: (1) join the electricity aggregation pool with Acclaim Energy; (2) extend their contract to April 30, 2029; and (3) to authorize President McNeil or Director Balderas and Director Rettig, if President McNeil and Director Balderas are not available, to execute the contract, after review by the attorney.
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 “D.”
Mr. Syzek reported on the COVID-19 pandemic, stating that District’s water is save from the virus. He also reported that due to the limited availability of toilet paper, there has been an increase in flushing of the wipes. He stated that as per MDS, the District has not been impacted more than usual with this issue.
Mr. Syzek reported on the walking trail, stating that he met with Stormwater Solutions for an inspection. He reviewed the inspection result, stating that there are some leaks in the irrigation system, weeds that need to be treated, and ATV tire marks in the grass.
Mr. Syzek recognized Ms. Sears, who presented a proposal in the amount of $4,013.28 to repair the irrigation mainline, herbicide the trail, and fill in the low areas in the path with decomposed granite. Discussion ensued.
Mr. Syzek reported on a four foot alligator that was on the walk trail at the detention pond channel. He stated that he had the alligator relocated to the San Jacinto River at a cost of $898. Mr. Syzek reported that the required paperwork was completed and submitted to Texas Parks and Wildlife. Mr. Syzek reported that a second alligator has been seen and that he has already contacted Wildernex for capture and relocation.
Mr. Syzek reported on the Forest Park Apartments, stating that the work should be complete in late summer or early fall.
Mr. Syzek reported on the status of the Parkway Water Plant Construction.
Mr. Syzek reported on the Harris County Tidwell Road widening project, stating that the construction is underway.
Mr. Syzek reported on a broken storm sewer manhole that needs repair. He stated that he will contact Harris County as they are responsible for the storm sewer manholes. Mr. Browne reported that MDS will investigate the broken manhole and erect the emergency fence.
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 proposal from Stormwater Solutions in the amount of $4,013.28 for the repairs at the walking trail.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. There was no report.
7. 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 Assessor-Collector’s Report for March, a copy of which is attached as Exhibit “F.” Ms. Yanez reported that 95.64% of the District’s 2019 taxes have been collected as of March 31, 2020.
Ms. Yanez reported that the Harris County Tax Office has suspended payments for payment plans until the end of June. Ms. Yanez discussed this option with the Board. She stated that the District currently has three payment arrangements. Discussion ensued.
Ms. Yanez reported that as discussed at the last meeting, the Tax Assessor and Collector Agreement was revised. Mr. Wilson reported that he has reviewed the revised Agreement and that he does not have any issues.
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 approve the Tax Assessor and Collector’s Report, authorize payment to the persons and in the amounts provided in the report, and to suspend payments for payment plans until the end of June 2020, and to approve revised Tax Assessor Collector Agreement.
8. 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 Balderas, seconded by Director Rettig, 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. 10628 to 10688 from the District’s General Operating Fund, and check nos. 1828 and 1832 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.
9. Approve Resolution Regarding Delegation of Authority Due to an Emergency. President McNeil recognized Mr. Wilson, who presented to and reviewed with the Board the Resolution Regarding Delegation of Authority Due to an Emergency (“Resolution”), a copy is attached as Exhibit “H.” He stated that the Resolution provides options for check signing in a state of emergency. Discussion ensued.
Upon motion by Director Everhart, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Resolution.
10. 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 March 2020 a copy is attached as Exhibit “I.” He noted that 101% of the water pumped was billed for the period from February 15, 2020 to March 15, 2020.
Discussion ensued regarding the taps issued by Greenwood Utility District.
Mr. Browne reviewed maintenance and repairs for March 2020 of the District’s individual and joint facilities.
Mr. Browne reported that 2,726,788 gallons were transferred from GUD to TLWWTP for the month of February and 4,120,916 gallons were transferred for the month of March.
Mr. Browne reported on the repairs within the month at the lift stations.
Mr. Browne reported that the inspection of the wastewater treatment plant was conducted on March 12, 2020. He stated that there are no major issues to report.
Mr. Browne requested suspension of water service terminations and waiving late penalties during the state of emergency as requested by Judge Lina Hidalgo.
Mr. Brown requested approval to include a message on the water bill regarding the safety of drinking water related to COVID-19 and a note regarding the closure of the payment locations.
Mr. Browne requested approval to update the District website to include a link to the MDS website to provide any updates.
Mr. Browne requested approval to consider allowing MDS to approve and coordinate payment arrangements for those customers who inquire due to the current COVID-19 pandemic.
Mr. Browne provided an update on the steps that MDS is taking to ensure the safety of their employees during the COVID-19 pandemic.
Mr. Brown requested approval to repair the lift pump at lift station no. 5 at a cost of $7,538.31.
Mr. Brown discussed the Consumer Confidence Report and stated that he will request approval at the May meeting.
Mr. Browne presented the options for the surveillance services from SentriForce. He reported that the cost options are either $3,600 a month or $5,400 per month based on the surveillance system that the Board approves. He also stated the contract will require a 30-day termination notice. Discussion ensued regarding the costs of the surveillance systems and the additional costs that the Board will incur. The Board requested that Mr. Browne secure additional proposals.
Mr. Browne reported that MDS relocated the pipe gate as requested by the Board.
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: (1) accept the Operator’s Report; (2) suspend water terminations and late penalties to delinquent accounts during the current state of emergency; (3) approve a bill message regarding the safety of drinking water related to COVID-19 and a note regarding the closure of the payment locations; (4) approve placing a link to the MDS website on the District’s website; (5) authorize MDS to approve and coordinate payment arrangements for those customers who inquire due to the current COVID-19 pandemic; and (6) approve the repair of the lift pump at lift station no. 5 at a cost of $7,538.31.
11. 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 “J.”
Mr. Jenkins reported on the Water Plant improvements. He stated that the contractor, Tidal Construction, has completed coating all of the piping, and that J|C is working with MDS and CenterPoint to setup a new electrical meter. He reminded the Board that J|C requested proposals from the contractor for the MCC steps and generator platform, and based on the additional work requested by the contractor, he recommends that the District proceed with the proposal provided by the District’s operator at last month’s meeting in the amount of $27,250. Mr. Jenkins presented Pay Estimate No. 18 and recommend payment in the amount of $36,405.00.
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 Pay Estimate no. 18 in the amount of $36,405 and to approve the proposal from NTS in the amount of $27,250 for the MCC steps and generator platform.
Mr. Jenkins reported on the 2019 sanitary sewer cleaning and televising, stating that J|C is reviewing the manhole inspection completed by MDS and that they will present recommendations for the sanitary sewer rehabilitation at the May meeting.
Mr. Jenkins reported on Lift Station No. 2. He stated that it is the understanding of J|C that NRF sent conveyance documents to Parkway Baptist Church. He stated that J|C has attempted to reach out but have not heard back from Pastor Jim Miller. Mr. Jenkins reported that he received a proposal from Integra Realty Resources to complete an appraisal of the property to expand lift station no. 2 at a cost of $2,750. Discussion ensued regarding the proposal. The Board requested that J|C obtain additional proposals for an appraisal.
Mr. Jenkins reported that there is no update with Sunrise Plastic Enterprise.
Mr. Jenkins reported that there are no updates regarding the elevated storage tank variance- alternate capacity request.
Mr. Jenkins reported that Greenwood Utility District reviewed invoices dating back to 2010 regarding the wastewater treatment plant operations and maintenance costs. He stated that the he is reviewing the analysis that was completed by the Greenwood Utility District bookkeeper.
Mr. Jenkins reported that NRF requested payment from Greenwood Utility District for the capacity overage penalty charges owed to the District for capacity used through the end of February. Mr. Wilson discussed the letter with the Board.
Mr. Jenkins reported that he met with the Greenwood Utility District engineer to discuss the expansion of the wastewater treatment plant and other District projects. He reported on the discussions regarding the following items: (1) the surface water transfer facility; (2) the surface waterline upgrade; (3) the wastewater treatment plant design; (4) the wastewater treatment plant outfall depression; and (5) the wastewater treatment plant influent meters.
Mr. Jenkins reported that a budget worksheet was prepared for the District and joint facilities projects.
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 accept the Engineer’s Report.
12. Report from Storm Water Solutions. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy is attached as Exhibit “K.” Ms. Sears reported on the March maintenance that was completed at the Stonefield Manor detention pond and the Sunrise Pond detention pond. She also reported that there are no major issues to report.
13. Discuss security cameras at the Water Plant and administration building, and take necessary action. This item was discussed during the Operations report.
14. Cybersecurity Training reminder. Mr. Wilson reminded the Board that the cybersecurity training is due by June 14, 2020.
15. Building Superintendent’s Report.. Director Rettig reported that a lot of the building maintenance has been delayed due to the dust, etc. from the water plant construction.
Director Rettig also reported that one of the air conditioning units needs repair and that it will cost approximately $12,000 for repair. Discussion ensued regarding the issues and repairs to the air conditioner. Director Rettig reported that he will prepare a proposal to include all of the items that need to be repaired and/or replaced at the building and will present at a future meeting.
16. Other Matters. Discussion ensued regarding when the physical meetings will resume.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned.
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The foregoing minutes were passed and approved by the Board of Directors on May 13, 2020.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)