PARKWAY UTILITY DISTRICT MINUTES OF BOARD SPECIAL MEETING
MAY 21, 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 special session, at 6:00 p.m. on May 21, 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
Gloria Woods, Director
All Board members were present, thus constituting a quorum. Also attending all or parts of the meeting were Mr. Reginald Wilson, Ms. Shaila Sreedharan, and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District.
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. Discuss District consultants and take any necessary action. President McNeil stated that she would like to discuss her concerns with the District Engineer, Operator, and the Financial Advisor.
She stated that she wants to ensure that the District consultants are working with the District’s best interest in mind. Discussion ensued regarding the upcoming construction of the wastewater treatment plant and the bond sale.
The Board inquired on the District’s 2020 preliminary value. Mr. Wilson stated that they should receive it at the June Board meeting. Discussion ensued regarding concerns the tax value and possible effects on the value due to COVID-19. Mr. Wilson stated that if there is an effect to the District’s tax value, it will not be reflected until 2021.
Director Everhart joined the meeting via teleconference at this time.
The Board discussed its concerns with the District Operator. President McNeil stated that Municipal District Services (“MDS”) is restricting the Mr. Syzek’s, District General Manager, access to the joint wastewater treatment plant. Extensive discussion ensued regarding the MDS protocol to access the wastewater treatment plant and the previous encounters with MDS staff regarding the Board’s concerns.
The Board then discussed the option of a new operator. Mr. Wilson reported that if the Board moves forward to engage a new operator, they would still have to work with MDS, as they were selected as the operator of the joint wastewater treatment plant. Additional discussion ensued regarding the access restrictions for Mr. Syzek. Mr. Wilson stated that Mr. Syzek is not being denied access, MDS is requesting notice of when he will be there in case of any issues that could occur.
The Board and Mr. Wilson then discussed joint wastewater treatment plants ownership concerns. Mr. Wilson reported that Greenwood Utility District and Parkway Utility District are joint owners. He further noted that either district would need the other to sign off on before moving forward with decisions.
The Board also discussed past and present relationship between Parkway Utility District and Greenwood Utility District.
The Board requested a special meeting to meet with MDS.
Mr. Wilson next discussed the Board’s concerns with the Jones Carter (“JC”). The Board stated that they are upset regarding the turnover of the engineers. Discussion ensued regarding the status of their engineers.
The Board requested a special meeting with the JC.
Brief discussion ensued regarding the Board’s issues with the financial advisor. The Board requested a special meeting with the financial advisor.
3. Review and approve proposal for a/c repair in the District administration building. Director Rettig reported on the District administration building repairs. He stated he received an estimate on various renovations that need to be completed. He stated that the AC replacement will cost $8,975, and a dropdown staircase allowing safer access to the roof will cost $1,300. Director Rettig reported that painters came to the administration building on May 18, 2020, and proposed $360 for the exterior painting of the administration building. He stated that he purchased the paint at cost of $410. Director Rettig reported that the roof repairs will cost $400.
Director Rettig stated that the building has a water heater that is not connected and that it would be extremely expensive to hook up. At this time, the board decided not to connect the water heater.
President McNeil stated the bookkeeper verified the budget for the administration building in the amount of $10,000.
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 the repairs as discussed at a cost not to exceed $15,000.
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 June 10, 2020.
President, Board of Directors
Secretary, Board of Directors