Meeting Minutes 2020-05-13

PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING

May 13, 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 May 13, 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 and Ms. Katherine Vu of Jones|Carter (“JC”), 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; Lieutenant Terry Ganey of Harris County Precinct 3 Constable’s Office; Mr. Reginald Wilson and Ms. Shaila Sreedharan of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Jennifer Day of McCall Gibson Swedlund Barfoot PLLC, auditor for the District; and Mr. Howard Manson Today’s Integration, Inc.

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 April 8, 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 April 8, 2020 as presented.

3. Approve audit for fiscal year ending December 31, 2019. President McNeil recognized Ms. Day, who presented to and reviewed with the Board the audit for fiscal year ended December 31, 2019, a copy is attached as Exhibit “C.” She stated that the District was issued an unmodified opinion and that there were no issues to report.

Ms. Day reviewed the expenditures and revenues within the fiscal year.

Ms. Day reported that two notes were added, one regarding the District’s bonds and the second note regarding the COVID-19 pandemic.
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 audit, as presented.

4. Report from Direct Waste Solutions. President McNeil recognized Mr. Singleton, who presented the Direct Waste Solutions Report, a copy is attached as Exhibit “C.” Mr. Singleton reported on status of the recycling, stating that they are collecting approximately 4,700 pounds per week from the approximate 2,300 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. Discussion ensued regarding the possible decrease in trash as Houston re-opens.

Mr. Singleton requested approval of a monthly surcharge of $2,913.75 during the COVID-19 pandemic crisis. He stated that the surcharge will ensure that there are no interruptions in trash collection.

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 monthly surcharge of $2,913.75.

5. 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 April 2020, which was previously distributed to the Board. A copy of the Security Report is attached as Exhibit “D.” He reported on the officer’s shifts and coverage for the District, stating that the patrols have increased.

President McNeil inquired on the reports from damage to the detention basin. Lieutenant Ganey reported that he has the information. Mr. Wilson sated that the information can be sent to NRF and a letter requesting payment will be sent. He stated that the Operator or Storm Water Solutions will need to provide a cost estimate for the repair.

6. 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 “E.”

Mr. Syzek reported on the walking trail, stating that Storm water Solutions made the repairs to the leaks on the trail. He reported that Storm Water Solutions is adding crushed granite to the trails, wherever necessary, and applying herbicide along the curbs.

Mr. Syzek reported on the status of the Parkway Water Plant Construction.

Mr. Syzek reported that hurricane season is less than 30 days away. He reported that predictions favor a highly active season due to many factors.

Mr. Syzek reported on the Forest Park Apartments, stating that the work should be complete in late summer or early fall. He stated that three units have been rented.

Mr. Syzek reported on the Rutherford Park Apartments, stating that they are waiting for CenterPoint electrical service and should be open mid to late summer.

Mr. Syzek reported on the Harris County Tidwell Road widening project, stating that the construction is ongoing.

Mr. Syzek reported that there are numerous studies underway exploring the capabilities of monitoring incoming wastewater flows into treatment plant facilities to determine COVID-19 hotspots.

Mr. Syzek reported that the Houston Food Bank held a successful food drive at the Parkway Baptist Church.

Mr. Syzek reviewed the ongoing action items. He stated that the alligator hunter was not able to locate the second alligator that was sighted at the walking trail pond. He reported that he will continue to assess the situation, as needed. Mr. Syzek reported that Director Rettig is exploring air conditioner repair options for the District office. Mr. Syzek reported that the Operator has reached out to Harris County regarding repair of the damaged sanitary sewer manhole.

President McNeil discussed the damage to the detention basin with Ms. Sears. She stated that there were trucks that got stuck in the detention basin and there was damage as they were removed.

Ms. Sears reported that she will evaluate the damage and provide a cost estimate for the repair.

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 96.13% of the District’s 2019 taxes have been collected as of April 30, 2020.

Ms. Yanez reported that the 2020 preliminary value for the District is $423,356,187 without protests.

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, and to authorize payment to the persons and in the amounts provided in the report.

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 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. 10689 to 10736 from the District’s General Operating Fund, and check nos. 1833 and 1835 from the District’s Capital Projects Fund in the amounts, to the persons, and for the purposes listed therein.

9. 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 “H.” He noted that 87% of the water pumped was billed for the period from March 15, 2020 to April 15, 2020.

Mr. Browne reviewed maintenance and repairs for April 2020 of the District’s individual and joint facilities.

Mr. Browne reported that 5,459,492 gallons were transferred from GUD to TLWWTP for the month of April.

Mr. Browne reported on the repairs and maintenance within the month at the lift stations.

Mr. Browne reported that the District facilities are being prepared for hurricane season.

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. Browne requested the continuation of suspension of water service terminations and waiving late penalties during the state of emergency as requested by Judge Lina Hidalgo.

Mr. Browne requested approval to authorize MDS to coordinate payment arrangements for inquiring customers during the COVID-19 pandemic.

Mr. Browne requested approval to repair the lift pump at lift station no. 3 at a cost of $7,559.

Mr. Browne presented to and reviewed with the Board the Consumer Confidence Report (“CCR”), a copy is attached to the Operator’s Report.

Mr. Browne introduced Mr. Manson, who presented to and reviewed the Board the proposal from Today’s Integration for the camera monitoring system, a copy is attached to the Operator’s Report. Extensive discussion ensued regarding the location the cameras, the number of cameras, the initial installation and the recurring fees, and the contract. The Board agreed to defer action in order to allow the Board time to review the contract.

The Board and Mr. Browne extensively discussed Board concerns about the Operator invoices.

Upon motion by Director Woods, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to: (1) accept the Operator’s Report; (2) continue suspend water terminations and late penalties to delinquent accounts during the current state of emergency; (3) authorize MDS to approve and coordinate modified payment arrangements; (4) approve the CCR; and (5) approve the repair of the lift pump at lift station no. 3 at a cost of $7,559.

10. Discuss security cameras at the Water Plant and administration building, and take necessary action. This item was discussed during the Operations report.

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 “I.”

Mr. Jenkins reported on the Water Plant improvements. He stated that the contractor, Tidal Construction, has completed all work, demobilized, and CenterPoint completed the setup of a new electrical meter. He stated that the power should be re-established within the week. Mr. Jenkins presented Pay Estimate No. 19 and recommend payment in the amount of $53,874.00.

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. 19 in the amount of $53,874.

Mr. Jenkins reported on the 2019 sanitary sewer cleaning and televising, stating that J|C prepared two cost estimates for a sanitary sewer rehabilitation project. He presented the first cost estimate included only the high priority items and the second cost estimate is for all recommended repairs. Mr. Jenkins also stated that he requested a proposal from MDS For manhole repairs and recommended that the Board proceed with the manhole repairs. He stated that he also recommends to postpone the remaining sanitary sewer rehabilitation work until after the wastewater treatment plant project is bid. Discussion ensued.

The Board agreed to postpone the sanitary sewer rehabilitation until after the wastewater treatment plant project is bid. 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 the Operator to request bids for the manhole repair.

Mr. Jenkins reported on Lift Station No. 2. He stated that as requested at the April meeting, he obtained additional bids for the appraisal of the church property. Mr. Jenkins reviewed the three bids from Integra Realty Resources in the amount of $2,750; Whitney & Associates in the amount of $3,000; and Alliance Realty Advisors in the amount of $4,950. Mr. Jenkins recommended that the Board approve the bid from the low bidder. 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 bid from Integra Realty Resources in the amount of $2,750 for the appraisal of the church property.

Mr. Jenkins reported that he received an optional survey request from the Texas Water Development Board for their preparation of the 2021 Regional water plan. The Board declined to complete the survey.

Mr. Jenkins reported that he received the attached letter from the Harris County Engineering Department requesting the District’s participation in proposed drainage improvements in the District, as well as the supporting drainage analyses used to determine the need for such projects. He stated that the drainage improvements will be completed, and Harris County is requesting funding from the District to expedite the projects. He stated that he is working with NRF on how to proceed. Discussion ensued and the Board agreed that they will not be able to contribute to the project.

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.- agree that greenwood owes District for incorrect billing

Mr. Jenkins reported that Greenwood Utility District and JC reviewed the invoices for the regional wastewater treatment plant operations and maintenance costs and that they are both in agreement that Greenwood Utility District owes the District $23,029.31 for incorrect billing from 2010 through 2019.

Mr. Jenkins reported that NRF requested payment from Greenwood Utility District for the capacity overage penalty charges owed to the District for capacity used though the end of February in the amount of $48,422.61. He stated that it is his understanding that flow to the Tidwell Lakes wastewater treatment plant has capacity overage penalty charges owed to the District for capacity used through the end of February. Mr. Wilson reported that the Greenwood Utility District agreed to make the payment if the Board can provide a breakdown of the costs. He stated that the requested information was provided and approved.

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. Discussion ensued regarding the 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 Ron, 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. Ms. Sears reported on the April 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.

Discussion ensued regarding the truck damage at the detention basins.

13. Other Matters. The Board scheduled a special meeting for Thursday, May 21 at 6:00 p.m.

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 on the air conditioning units, stating that he received a proposal in the amount of $12,000 for a replacement. He stated that there are two air conditioning units and the replacement air conditioner will connect both units. Discussion ensued and the Board requested to add the approval of the air condition to the special meeting agenda.

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 June 10, 2020.

President, Board of Directors
ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)