PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
AUGUST 12, 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 August 12, 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; 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; Ms. Katherine Vu and Mr. Bradley Jenkins of Jones|Carter (“JC”), engineers 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, Mr. Calvin Browne of Municipal District Services (“MDS”), and Mr. Josh Maas and Mr. Mark Ivy with M. Marlon Ivy & Associates (“MMIA”).
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 July 8, 2020, and of the special meeting of July 14, 2020, were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Everhart, 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 July 8, 2020, of the special meeting of July 14, 2020 as presented.
3. Report from Direct Waste Solutions. Mr. Singleton was not present for the meeting. The Direct Waste Solutions Report, a copy is attached as Exhibit “B.”, was previously distributed to the Board for review.
4. 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 July 2020 a copy is attached as Exhibit “C.” He reported the operating capacity is at 79.68% .for the period from June 15, 2020 to July 15, 2020.
Mr. Browne reported that Parkway Utility District has a total of 2,435 connections and Greenwood Utility District has a total of 2,897 connections.
Mr. Browne reported the accountability is at 98%.
Mr. Browne reported that the generator walkway and stairs project is now complete.
Mr. Browne reviewed maintenance and repairs for July 2020 of the District’s individual and joint facilities.
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 6,636,742 gallons were transferred from GUD to TLWWTP for the month of July.
Mr. Browne presented to and reviewed with the Board the Consumer Confidence Report (“CCR”), a copy is attached to the Operator’s Report. He stated documentation showing it has been completed will be sent once MDS receives from the TCEQ.
Mr. Browne reported on the annual fire hydrant inspection. He stated he will provide the fire hydrant inspection report to MMIA which shows which ones need to repaired.
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 reported on the delinquent accounts. He stated there are no existing payment arrangements.
Director Rettig joined the meeting at this time.
Discussion ensued regarding an invoice from MDS.
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 move forward with the air relief in the amount of $6,188.
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 Operator’s Report.
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 “C”
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 stated there will be 25 LED lights and the District’s obligation will be $4.24 per light, per month.
Mr. Syzek reported on the virtual community meeting regarding San Jacinto Watershed Master Drainage plan that occurred on August 13, 2020. He stated the District is not within the boundaries, however Lake Houston occasionally has a direct impact on the District with flooding.
Mr. Syzek reported on the proposed Harris County flood control projects. He stated the projects will be implemented regardless of the District’s participation, but at a slower pace.
Mr. Syzek discussed the walk through that occurred with MMIA and Jones & Carter. Mr. Syzek stated MMIA read over plans, upcoming projects, and toured Lift Station No. 2.
Director Rettig inquired about the MMIA booklet. He stated he does not understand most of the terminology and suggested a special meeting between the Board and MMIA.
Mr. Syzek reported on the various pump failures.
Mr. Syzek reported on the Office landscaping project. He said they are one pallet short of sod.
Mr. Syzek reported on the unauthorized violators on property at Sunrise Pines detention pond. Discussion ensued.
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 $2,705 worth of additional landscape for the office building and to authorize Mr. Syzek to sign paperwork on behalf of the District for the CenterPoint lights.
6. 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 July 2020, a copy of which is attached as Exhibit “D.”
Lieutenant Ganey reported about a weapons disturbance call. He stated that the deputies are currently reviewing video footage and charges are soon to be filed.
Lieutenant Ganey reported on the drive by shooting. He stated that at this time there is no update for there was lack of information given on the call.
Lieutenant Ganey reported on a discharge of firearms incident. He stated that deputies are currently in the process of investigating and putting information together. Lieutenant Ganey stated no one was hurt in the incident.
Lieutenant Ganey reported that two individuals were arrested for outstanding warrants.
Lieutenant Ganey reported on a call that referenced a suspected bomb item. He said it was sparklers that were taped together and the item was found before set off. He also stated that there are no witnesses on who placed it there or know the circumstances surrounding it.
Lieutenant Ganey discussed a 4-wheeler issue that is found all across the county. He stated the 4-wheelers are difficult to catch when they drive down drainage canals, however deputies are issuing citations to those that are caught.
Director Balderas asked for clarification on the drive by shooting.
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 July, a copy of which is attached as Exhibit “E.” Mr. Patterson reported that 97.39% of the District’s 2019 taxes have been collected as of July 31, 2020.
Ms. Yanez presented 3 checks and 2 wires to the Board for review and approval.
Ms. Yanez reported on the delinquent tax role. She stated that Perdue Brandon is currently working on the report.
Upon motion by Director Balderas, seconded by Director Rettig, 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.
8. Discuss status of tax values, publication of proposed tax rate, SB 2 district designation, and take any necessary action. Mr. Wilson stated that this item will be discussed more in detail on next month’s agenda. He said the district currently has estimated values but Mr. Howell is working on the certified value. Mr. Wilson said Parkway is a developing district and has more flexibility to move up in tax if needed.
9. 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 reported on check 10854 stating it was in regards to AWBD registration for President McNeil and Director Woods. The total for two registrations was $338.00.
Ms. Bailey reviewed the summary of payments to vendors.
Ms. Bailey reported that the next debt service payment is due September 1, 2020.
Ms. Bailey reviewed the budget comparison for July which is a seven month comparison.
Ms. Bailey reviewed the expenses and stated there is a surplus of $529,576.
President McNeil inquired about the AWBD check. Ms. Bailey stated this was for registration of the virtual conference. She said that the in person conference registration was already refunded.
Ms. Bailey stated the amount of the check was for registration of both President McNeil and Director Woods.
President McNeil inquired about the invoice from MDS. Ms. Bailey stated she will look in to how the bill can be paid between different funds.
Upon motion by Director Woods, 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 checks to the persons, and for the purposes listed therein.
10. Review Investment Policy and accept disclosure statements from bookkeeper and investment officer(s). Mr. Wilson presented and reviewed with the Board a copy of the Investment Policy, a copy of which is attached hereto as Exhibit “G”.
Mr. Wilson discussed that the investment policy is reviewed each year. He said at this time there are no recommended changes and the policy includes a list of updated brokers. Mr. Wilson stated that due to the list of updated brokers, a motion is needed by the Board to accept the policy.
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 Resolution Reviewing the Investment Policy.
11. Operator’s Report from M. Marlon Ivy & Associates. Mr. Ivy and Mr. Maas stated at this time they do not have a report to give. Mr. Ivy stated that they would like to provide the Board an update on how the transition has been going.
Mr. Ivy stated that customer’s account numbers will change with next billing cycle. He stated that store pays went live August 12, 2020 and that credit card payments are in progress.
Mr. Ivy reported on delinquent accounts. He stated there are currently 33 accounts. Mr. Ivy said there has been one request for a payment plan. Upon motion by Director Balderas, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to continue suspension of termination and late fees and to allow MMIA to work with payment plans for residents.
Discussion ensued regarding customer calls.
The Board discussed setting a special Meeting to meet with MMIA to discuss terminology.
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 Operator’s Report.
12. 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 water plant improvements: He stated a final pay estimate will be discussed at next month’s meeting.
Mr. Jenkins reported on the sanitary sewer rehab. He said that the remainder of the project has been postponed until the Waste Water Treatment Plant bid.
Mr. Jenkins reported that there is no update with Sunrise Plastic Enterprise.
Mr. Jenkins reported on the elevated storage tank variance- alternate capacity request. He said they are working to schedule field testing for the ACR this month now that the new booster pumps are operational.
Mr. Jenkins stated that the manhole repairs have been provided to MMIA and a proposal will be given soon to get started on the work.
Mr. Jenkins reported on Global New Millennium and the District’s involvement with the detention pond. Extensive discussion ensued regarding the District’s liability. Upon motion by Director Balderas, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to allow Mr. Jenkins and Mr. Wilson to draft a detention pond maintenance agreement to send to Global new Millennium.
Mr. Jenkins continues to recommend no payment until all issues are resolved with Hatch. Mr. Jenkins stated Jones & Carter would like to write a letter on behalf of the District. 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 allows Jones & Carter to draft a letter on behalf of the District to remove the meters.
Mr. Jenkins reported on the Lift station 2 project. He stated that conveyance documents have been sent to the church to be signed. Upon motion by Director Balderas, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the engineer and operator to move forward with Lift Station No. 2 upon receipt of conveyance documents.
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 Engineer’s Report.
13. 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 reported on maintenance in the detention ponds.
Ms. Sears reported that herbicide treatment is needed along the walking trail and along the fence line. 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 herbicide treatment along the walking trail and fence line:
14. Building Superintendent’s Report. Director Rettig reported on the Parkway Building. Discussion ensued regarding locks and alarms for the building. At this time, the Board does not feel it is necessary to make any changes.
Discussion ensured between Board members regarding the rocks in front of the office in the parking lot.
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 September 9, 2020.
President, Board of Directors
ATTEST: Secretary, Board of Directors
(DISTRICT SEAL)