Meeting Minutes 2020-07-08

PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING

JULY 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 July 8, 2020, via videoconference and 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; Mr. David Patterson of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for the District; 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; Ms. Karen Sears of Storm Water Solutions; Lieutenant Terry Ganey of Harris County Precinct 3 Constable’s Office; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Pastor Jim Miller, of Parkway Baptist Church.

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 June 10, 2020 , of the special meeting of June 17, 2020, and of the special meeting of June 22, 2020 were previously distributed to the Board, were presented for consideration and approval. Upon motion by Director Woods, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the regular meeting of June 10, 2020, of the special meeting of June 17, 2020, and of the special meeting of June 22, 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 that due to the COVID-19 pandemic and the stay home orders, the volume of recycling has increased.
Director Balderas inquired about the trash complaint email she sent to Mr. Singleton. Mr. Singleton did not receive the email and Director Balderas will resend.

4. 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 “C”
Director Rettig join the teleconference at this time.

Mr. Syzek reported on the Wastewater Treatment Plant. He said the plant had its final inspection. My Syzek also reported that the plant is currently blending water and there have been minimal water quality complaints.

Mr. Syzek reported on the Lift station No 2 expansion. He said a follow up meeting took place on June 26, 2020 where the church laid out their requests for the property.

Mr. Syzek discussed influential non-profits who are looking for donations.

Mr. Syzek reported on the District office landscaping beautification project and how there is about another week’s worth of work to do.

Mr. Syzek reported on the Tidwell road street light installation. He said that Centerpoint will pay for the installation if the District covers the monthly up keep costs.

Mr. Syzek reported that waste water treatment facilities are being sampled to get information as to where the highest concentration of COVID-19 is located.

Director Balderas discussed how the Parkway building sign will need to be updated to reflect the new District operator once chosen.

5. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Lieutenant Ganey presented and reviewed with the Board the Security report for the Month of June 2020, a copy of which is attached as Exhibit “D.”

Lieutenant Ganey reported there were four stolen vehicles and several motor burglaries. The person responsible was arrested and two accomplices have been charged.

Lieutenant Ganey reported he has received a lot of COVID-19 related calls regarding lack of social distancing and failure to wear masks.

6. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Mr. Patterson presented to and reviewed with the Board the Tax Assessor-Collector’s Report for March, a copy of which is attached as Exhibit “E.” Mr. Patterson reported that 97.12% of the District’s 2019 taxes have been collected as of June 30, 2020.

Mr. Patterson presented 9 checks and 1 wires to the Board for review and approval.

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 Tax Assessor and Collector’s Report.

7. 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.”

Ms. Bailey presented checks 10619 through 10789 for review and approval of the Board.

Ms. Bailey reviewed the budget comparison for the month.

Ms. Bailey reviewed the expenses and stated there is a surplus of $557,606.

Ms. Bailey reported that the water and sewer revenues came in. She said there was one reimbursement for the AWBD conference.

Ms. Bailey reported there are three checks for review.

Upon motion by Director Balderas, 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 checks to the persons, and for the purposes listed therein.

8. 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 June 2020 a copy is attached as Exhibit “G.” He reported the operating capacity is at 79.68% .for the period from May 15, 2020 to June 15, 2020.

Mr. Browne reported that Parkway Utility District has a total of 2,435 connections and Greenwood Utility District has a total of 2,896 connections.

Mr. Browne reported on the Surface Water Treatment Plant. Mr. Browne stated that operational changes were done due to the plant being online.

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

Mr. Browne reported that 6,432,692 gallons were transferred from GUD to TLWWTP for the month of June.

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 reported how there is a storm man hole directly outside of administrating building. Mr. Browne said Harris County viewed the manhole and completed the repairs.

Mr. Browne the water plant pumped out 14.1 million gallons in the month of June and 15 million gallons were billed. Mr. Browne said the accountability is at 105%.

Mr. Browne reported on the Waste Water Treatment Plant. He stated there was blockage on the flood line. Mr. Browne said it was addressed and is now up and running again.

Mr. Browne reported that 9 biological samples were taken and all came back negative.

Mr. Browne reported on the annual fire hydrant inspection. He said there are no repairs that are recommended, but some repairs that need to be done. Mr. Browne said this will need to be coordinated with the incoming operator.

Mr. Browne reported that the District facilities are being prepared for hurricane season. Steps being taking to ensure we are prepared for the 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 reported on the sanitary sewer repair manholes. He stated the repairs have not started and will need to coordinate with the incoming operator.

Mr. Browne reported on the delinquent accounts. He stated there are no existing payment arrangements and there are high balances on the termination list. Discussion ensued regarding deferring termination and late fees until the August meeting.

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 accept the Operator’s Report, and to defer termination and late fees until the August meeting.

9. 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 reported on the sanitary sewer rehab. He said that the remainder of the project has been postponed until August.

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 asks for the Board’s approval of Pay Estimate 21 in the amount of $119,488.67. Upon motion by Director Woods, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve Pay Estimate 21.

Mr. Jenkins stated that the manhole repairs need to be started on as soon as possible.

Mr. Jenkins reported on Lift Station No. 2. He said that he is ready to proceed with the design of the expansion. 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 proceed with the design of expansion.

Mr. Jenkins reported on drainage improvements. He said a letter was sent to Harris County explaining Parkway will not participate in the cost and to have the county proceed with the projects.

Mr. Jenkins reported on the Waste Water Treatment Plan. And approval from Harris County and the City of Houston with Proceeding of construction for clearing and grubbing of retention. Upon motion by Director Balderas, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to approve the execution of construction contracts, subject to Mr. Wilson’s review of the contracts and bonds.

Mr. Jenkins reported that Greenwood Utility District’s engineers have prepared a letter to send to Hatch regarding the meter reading and refusal of pay. Mr. Jenkin’s continues to recommend no payment until all issues are resolved.

Mr. Jenkins reported that the Emergency Plan will need to be updated once a new operator is chosen.

Upon motion by Director Woods, seconded by Director Balderas, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.

10 Discuss purchase of property for Lift Station No. 2, and take any necessary action.

Mr. Jenkins reported that Parkway Baptist Church decided on $17,948.00 for full compensation.

Discussion ensued regarding the inclusion of restriping the parking lot in the appraisal. Pastor Miller agreed to Parkway’s proposal of $17,948.00.

Mr. Jenkins reported that Parkway Baptist Church would like to have input in the selection of fences and for the fencing to not block the line of site of driving for safety and hazard issues. Parkway Baptist Church also requests the planting of plants and shrubbery for aesthetics.

Upon motion by Director Balderas, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to move forward with the preparation of legal documents to present to Parkway Baptist Church’s attorney and with the purchasing of Lift Station No. 2.

11. Report from Storm Water Solutions, and take any necessary action. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions.

Ms. Sears reminded the Board that the detention pond permit renews in August and the quality permit renews in October.

Ms. Sears reported on maintenance in the detention ponds.

Discussion ensued regarding the spotting of alligator number four from people on the trails. The alligator has not been captured as of yet.

12. Discuss new Operator proposals, and take any necessary action. Mr. Wilson reported that MDS has submitted its resignation letter effective July 24, 2020. He said that he has received four different proposal from prospective Operators. Mr. Wilson suggest a special meeting take place to have each company give its proposal.

Discussion ensued amongst the Board regarding which proposals they would prefer to hear from. The Board narrowed it down to three operators. A Special Meeting was been set for Tuesday, July 14, 2020 at 6:00 p.m., to hear the proposals and engage a new operator for the District. This meeting will be held via Zoom videoconference.

13. Designation of representative for AWBD Simply Voting. Mr. Wilson reported that the AWBD conference is being held virtually this year. He said that AWBD is asking each District to appoint someone who can vote for the Board online, on behalf of the District. 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 appoint President McNeil as the AWBD voting representative.

16. Building Superintendent’s Report. Director Rettig was unable to report due to technical difficulties with the sound and microphone on his computer.

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 August 12, 2020.

President, Board of Directors
ATTEST: Secretary, Board of Directors

(DISTRICT SEAL)