PARKWAY UTILITY DISTRICT MINUTES OF BOARD MEETING
SEPTEMBER 9, 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 September 9, 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. All members of the Board for Greenwood Utility District (“GUD”) were present, except Director O’Neill 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; Mr. Greg East of Perdue Brandon Fielder Collins & Mott LLP (Perdue Brandon), delinquent tax attorney 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. Josh Maas and Mr. Mark Ivy with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Ms. Dietra Bonds of Municipal Accounts & Consulting L.P.; (“MAC”), bookkeeper for GUD; Mr. Johnny Bellamy of Municipal District Services ( “MDS”), operator for GUD; Mr. Jim Ainsworth and Mr. Ronald Anderson III of A&S Engineers, Inc. (“A&S”), engineer for GUD; Mr. JT Foster, of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorney for GUD.
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. Joint Discussion with Greenwood Utility District:
a. Discuss Joint Wastewater Treatment Facility and take necessary action.
Mr. Anderson reported on the operations for the Joint Wastewater Treatment Facility. He stated Harris County is to set up a virtual meeting for outfall discussion. He stated a meeting has not been set up at this time and there is no further update as of now.
Mr. Anderson reported on the pre-construction meeting that was held this month regarding clearing and grubbing. He discussed the plant and the sequence of construction. He said he will have more information at a later date regarding what the modifications to the lift stations will be. Mr. Anderson stated there will be a need to drop another ump to bring up the flow when they take the pond away.
Mr. Anderson stated that the operator has engaged someone to enlarge the openings of the windows that were in the clarifier. Once the pond is filled in it will be difficult to fix the windows.
Mr. Anderson stated this will be a preventative maintenance item and a cost effective measure. : revisit and take down part of the clarifier again and inspecting them on a cost effective measure.
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 authorize the operator to move forward with preventative maintenance. Upon motion by Director Guerra seconded by Director Primeaux, after full discussion and the question being put to the Board, the Board voted unanimously to move forward with preventative maintenance.
Mr. Anderson reported on the expansion project. He stated he is needing authorization to proceed with the project and advertise the waste water treatment plan project. President McNeil stated the Parkway Board will discuss this topic further during their meeting and will table for now.
Mr. Ainsworth discussed the flow meter issues and how it continues to not register within tolerance set forth within the contract. He said a conference call was held on September 9, 2020 where the issues were outlined. Hatch discussed that at their cost, they will install a new meter and read for 30 days and if it still does not read correctly the meters will be removed. Extensive discussion ensued between both Boards regarding their hesitations to continue business with Hatch and how there is no trust in their work. Mr. Wilson stated that from a legal standpoint, he recommends proceeding with the 30 additional days to minimize any liability. Members of the Greenwood Board are in favor of giving 30 additional days. All members of the Parkway Board, except Director Rettig, are in favor of giving 30 additional days to Hatch.
b. Discuss Joint Surface Water Plant and take necessary action.
Mr. Bellamy stated that the water plant went in to operations a couple months ago. He stated it is running separately and each district will run for two weeks. He stated this is temporary until the new transmission station comes online. He said that no actions need to be taken at this time.
Mr. Bellamy reported on the advertising for the various projects. He said they are ready to advertise and the surface water plant is getting close to final approval. Parkway will discuss moving forward with bidding later during the meeting. At this time the GUD Directors and consultants exited the meeting.
3. Minutes of previous meeting(s). Minutes of the regular meeting of August 12, 2020, were previously distributed to the Board and were presented for consideration and approval. 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 minutes of the regular meeting of August 12, 2020 as presented.
4. Report from Direct Waste Solutions. . President McNeil recognized Mr. Singleton, who reviewed and presented the Direct Waste Solutions Report, a copy is attached as Exhibit “B.”.
Mr. Singleton reported there were 5 service recycling days. He stated 12 tons of recycling was collected which is about 2 pounds per home.
Director Balderas inquired about heavy trash pickup. Mr. Singleton stated heavy trash pickup still occurs on Saturdays.
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 Office landscaping project. He said 6 pallets of sod were added, the irrigation system was completely rebuilt, and the fence line has been trimmed with the brush being removed.
Mr. Syzek reported that Stonefield Terrace has upgraded their park, adding more equipment and installed a crosswalk and parking lot.
Mr. Syzek reported that all generators are on standby and ready should there be another hurricane warning.
Mr. Syzek reported on various apartment complexes throughout the District and in Greenwood.
Mr. Syzek reported on the Tidwell road expansion activity.
Mr. Syzek reported on the Tidwell road street light installation. He said that CenterPoint is ready to put in the street lights and it will cost the District $100 per month to power the lights.
Mr. Syzek reported on the maintenance of Sierra Ranch detention pond. He stated the county is trying to mow more frequently.
Mr. Syzek reported on the unauthorized violators on property at Sunrise Pines detention pond. Discussion ensued.
Director Everhart provided an update on a heated discussion taking place on the Nextdoor Neighbor Application. He stated that someone took a large back of roofing nails and dumped it on the trail. He stated the discussion taking place on the application is becoming violent and the exact location of the roofing nails has not been determined yet.
Mr. Syzek reported on the Parkway Water Plant surveillance system. He said that all materials have been shipped and installation will begin soon.
Mr. Syzek reported on the Tidwell Lakes water plant. He stated he is concerned that the interconnect valve that controls the water going to the development is easily accessible. Mr. Syzek suggests it be secured with a padlock and for MMIA to secure the valve.
Mr. Syzek reported that waste water treatment plants are being used to sample for COVID-19 hot spots.
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 August 2020, a copy of which is attached as Exhibit “D.”
Lieutenant Ganey reported on an aggravated robbery and stated that it is currently being investigated.
Lieutenant Ganey reported on the ATV issues in the District. He stated that the night shift officer has a 4 wheel drive pick up to try and stop the ATVs. He said that Harris County will not accept criminal charges if there is no property damage from the ATV.
Director Balderas reported that there is an issue in Sunrise Pines with drivers running stop signs. Lieutenant Ganey stated he will look in to this and will put an email out to the deputy.
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 August, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 97.66% of the District’s 2019 taxes have been collected as of August 31, 2020.
Ms. Yanez presented 7 checks and 2 wires to the Board for review and approval.
Upon motion by Director Everhart, 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.
Mr. East presented the Perdue Brandon delinquent tax role. He stated that water termination letters have been sent out. Mr. East is asking for board approval to proceed with the tagging and termination of the accounts that have not responded to the delinquent letter.
Mr. East recommends not proceeding with termination of account number eleven on the delinquent list due to a disability.
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 authorize the operator to proceed with terminating service of those accounts who did not respond to the delinquent letter with the exception of account number 11.
8. Adopt Order Designating Officer to Calculate and Publish tax Rate for 2020. The President recognized Mr. Howell, who presented to and reviewed with the Board a Tax Rate Study, a copy of which is attached here to as Exhibit “F”.
Mr. Howell recommends publishing a tax rate of $0.726 with maintenance and operations at a $0.186 tax rate and debt service at a $0.540 tax rate.
Mr. Wilson then presented to the Board the Order Designating Officer to Calculate and Publish Tax Rates and Taking Other Action in Connection with the Levy of a Tax for 2020, a copy of which is attached hereto as Exhibit “G”. Mr. Wilson informed the Board this order authorizes the tax assessor to publish the proposed tax rate and the date and time of the District’s meeting.
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 order and publish a proposed tax rate of $0.726.
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 “H.”
Ms. Bailey reported on reimbursement for the AWBD conference totaling $90.
Ms. Bailey stated that the debt service and capital project had a small amount of interest.
Ms. Bailey stated that checks 10779 through 10908 were written in prior months but being brought back for review.
Ms. Bailey stated that check 10932 is where the deposit refund checks begin.
Ms. Bailey reviewed the Investment report for August with the Board.
Ms. Bailey reviewed the budget comparison through August. She stated there is a surplus of $351,812.
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 checks to the persons, and for the purposes listed therein.
10. Operator’s Report from M. Marlon Ivy & Associates. Mr. Ivy and Mr. Maas presented and reviewed with the board the Operator’s Report, a copy of which is attached hereto as “Exhibit I”.
Mr. Ivy reported Parkway currently has 2438 active connections. He stated this count differs from the previous operator’s report, but is current and correct.
Mr. Ivy reviewed the bill and collections report for July and August with the Board.
Mr. Ivy reviewed the production and sales report and stated the District has 93.66% accountability.
Mr. Ivy reported on the subsidence district permit.
Mr. Ivy reported on historical information. He stated this item will begin to provide more information in later months.
Mr. Ivy reported on various items from the MDS final operation’s report.
Mr. Ivy reported on delinquent accounts. He stated there are currently 47 accounts over 120 days and 34 accounts over 90 days. Mr. Ivy suggests sending late bills and tagging doors subject to termination. He stated the purpose of the door tags are to keep residents as current as possible.
Director Balderas discussed issues being brought up on the Nextdoor Neighbor application. She stated that there are discussions taking place where people are stating their water bill has increased due to the new operator. Mr. Ivy stated if a customer feels their bill is too high, they will go out and reread the meter and have a conversation with the customer.
Mr. Ivy stated that the new bills reflect the new account number. He also said that the meters were reread and none were out of range.
President McNeil inquired about MMIA’s access to the waste water treatment plant. Mr. Ivy stated there have been no issues with gaining access to the plant. Mr. Maas has been to all facilities numerous times with no issues.
Mr. Jenkins stated the transmission station needs to be the highest priority in the District. He said that as of now there has been no authorization for the engineer to be on property. Mr. Jenkins said he needs direction from the Board on how often they would like the engineer on site. He said no construction has started yet, the project has just been bid. Mr. Jenkins said the engineers have had significant involvement through the design process. Extensive discussion ensued regarding engineer’s involvement on the construction site. Upon motion by Director Everhart, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the transmission line and surface water bid, and to proceed with advertising the waste water treatment plant for bid.
Upon motion by Director Everhart, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator’s Report and proceed with providing door hangers to promote communication between the resident and the operator.
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 Parkway Water Plant and stated there are no issues.
Mr. Jenkins reported on the water plant improvements: He stated the contractor still has minor punch list items to complete and $95,000 is in holding until completed. He said a final pay estimate will be discussed once the items are completed. .
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 on the Lift station 2 project. He stated that conveyance documents have been sent to the church to be signed but still waiting to receive the executed documents.
Mr. Jenkins reported on Global New Millennium and the District’s involvement with the detention pond. He stated that an agreement is being prepared which states the District will not have to pay for any of the maintenance of the pond.
Mr. Jenkins reported on the water well permit. He stated the district is permitted to pump 34.4 million gallons and currently the District is within 5 to 6 million of going over. He said the plan is to use credits that have been banking through the water conservation program to get the permit amended to 50 million gallons.
Mr. Jenkins reminded the Board that Greenwood has agreed they owe overage to Parkway.
Mr. Jenkins reported on Joint facilities. He said that the surface water transfer facility has already been discussed and has been authorized to be bid as well as the water line upgrade.
Mr. Jenkins reported on the emergency preparedness plan stating it is working to be updated. Mr. Jenkins said that other items will need to be discussed within the next couple of months regarding requirements.
Mr. Jenkins reported that at next month’s meeting he will provide alternative construction management for all projects.
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 Engineer’s Report.
12. Report from Storm Water Solutions, and take any necessary action. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy of which is attached hereto as “Exhibit K”. .
Ms. Sears reported on maintenance in the detention ponds.
Ms. Sears stated a permit renewal for Stonefield Manor detention pond is scheduled for next month.
Ms. Sears reported that the herbicide treatment has been completed along the pathway and the chainlink fence.
Ms. Sears presented and reviewed with the Board a bollard installation proposal, a copy of which is attached hereto as Exhibit “__”. She said this proposal is for the installation of 6-7 bollards along the property line at the lift station at Sunrise Pines for a cost of $2,350.00.
Director Balderas inquired about bollards being installed on resident property lines. Ms. Sears stated that no bollards will be installed on a resident’s property.
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 proposal.
13. Building Superintendent’s Report. Director Rettig reported on the Parkway Building. He stated there is a water heater that could be connect to provide hot water for the building. Discussion ensued. The bboard decided to not connect the water heater.
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 October 14, 2020.
President, Board of Directors
ATTEST: Secretary, Board of Directors