PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
DECEMBER 19, 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 December 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. 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; and Mr. Josh Maas and Mr. Marlon Ivy with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Mr. Jamal Singleton, with Direct Waste Solutions; and Minister Robert Wynn, with Mission Fellowship, resident of 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. Minister Wynn stated this is the first time he has attended a meeting and he plans to just listen in.
2. Minutes of previous meeting(s). Minutes of the regular meeting of November 11, 2020, were previously distributed to the Board and 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 November 11, 2020.
3. 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 4 recycling days this past month and almost 2.5 pounds of recycling per home.
Mr. Singleton stated that he expects higher numbers in January with the rise in packages and deliveries.
Director Rettig stated he will contact Mr. Singleton when it is necessary to pick up trash at the administration building.
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.”
Mr. Syzek reported on the walking trail in Stonefield. He stated that some areas are needing repair work and there is a possible irrigation leak.
Mr. Syzek reported that the trail signs are weathered and need to be replaced. Mr. Maas stated that he is working with a company to provide a template and will present at next month’s meeting.
Mr. Syzek reported that the inlet pipe in the storm detention pond is heavily silted. He said the pipe is still functional and serves the water plant for site drainage. Mr. Syzek stated that Stormwater Solutions will provide more info on what is involved with clearing out the pipe.
Mr. Syzek reported on Nutria in the Sunrise Pines detention pond that is causing damage. He stated that Stormwater Solutions has a contractor that can trap and relocate the Nutria.
Mr. Syzek reported on the monthly inspection in the District.
Mr. Syzek reported on security cameras at the water plant. He stated he is pleased with the quality of the images and there have been no issues.
Mr. Syzek reported on the Wastewater Treatment Plant. He stated the detention pond will no longer be available due to the lift pump expansion. He said a 5th lift pump has been added to keep up with heavy flows.
Mr. Syzek reported on the Tidwell road expansion. He stated that construction work is being done on a new elevated bridge. .
Mr. Syzek stated that Harris County Flood Control District is hosting a workshop open to the public regarding the Lower Greens Bayou feasibility study. He stated that there will be a discussion about future projects and ways to minimize flooding.
Mr. Syzek reported on waste water testing for COVID-19. He stated water testing is now being done in schools and senior living facilities.
Director Rettig inquired about construction progress taking place in Greenwood.
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 November 2020, a copy of which is attached as Exhibit “D.”
Lieutenant Ganey reported on drive by shootings. He state the shooting occurred at a vacant house in to the garage door. He also stated that similar instances have been occurring in the Greenwood area.
Director Rettig inquired about an uptick in gang related incidents. Lieutenant Ganey stated he is doing more research to see if these shootings are gang related and that he is also working with school resource officers that work closely with gang related issues.
President McNeil discussed the gunshots at the gas station at Tidwell Road in the Sierra Ranch area. Lieutenant Ganey stated that the night shift has been covering it.
President McNeil stated that a car has hit a streetlight pole. Lieutenant Ganey will research activity for December and see if anything has been reported.
Minister Wynn inquired about the religious check portion of the report. Lieutenant Ganey stated that this shows that the deputy is checking the location.
Lieutenant Ganey inquired about having access to the security camera footage. He stated he would have a visual on the location and be able to have deputies respond accordingly. Director Rettig expressed his concerns on this matter. The Board decided to table this discussion and not move forward with allowing Lieutenant Ganey access.
6. 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 October, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 1.39% of the District’s 2020 taxes have been collected as of November 30, 2020.
Ms. Yanez presented 3 checks and 2 wires to the Board for review and approval. Ms. Yanez stated that check 2210 is a voided check.
Ms. Yanez reviewed the delinquent tax role from the delinquent tax attorney. She stated that 19 water terminations were sent out and all were paid in full.
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 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 reported that the debt service fund had a small amount of interest. Ms. Bailey reported that checks 11053-11068 are for review.
Ms. Bailey reported that the next debt service payment is March 1, 2021. Ms. Bailey reviewed the Investment report for November with the Board.
Ms. Bailey reviewed the budget comparison through November. She stated there is a surplus of $414,000.00.
Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
Ms. Bailey reviewed the proposed budget for fiscal year ending December 31, 2021.
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 Bookkeeper’s Report, to authorize payment of checks to the persons, and for the purposes listed therein.
8. Adopt budget for fiscal year ending December 31, 2021. Ms. Bailey presented and reviewed the proposed budget in the Bookkeeper’s Report.
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 adopt the budget for fiscal year ending December 31, 2021.
9. Operator’s Report from M. Marlon Ivy & Associates. Mr. Maas presented and reviewed with the board the Operator’s Report, a copy of which is attached hereto as “Exhibit G”.
Mr. Maas reported Parkway currently has 2439 active connections.
Mr. Maas reviewed the bill and collections report for October and November with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 99.48% accountability.
Mr. Mass reviewed the historical data entry which shows a four month average.
Mr. Maas reported there are no permit violations at the Wastewater Treatment Plant.
Mr. Maas recommends performing quarterly and annual service for the generators. He presented and reviewed a proposal for the various prices of the quarterly and annual visits, a copy of which is attached hereto as Exhibit “H”. Discussion ensued.
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, to proceed with providing door hangers to promote communication between the resident and the operator, and to proceed with quarter and annual check of generators.
10. 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 sanitary sewer rehab. He said the District is able to proceed and will get an updated cost estimate and present at next month’s meeting.
Mr. Jenkins reported on the Lift station 2 project. He stated the easement will be forwarded to legal so that they may begin preparing conveyance documents.
Mr. Jenkins stated there is nothing new to report on Global New Millennium and the District’s involvement with the detention pond.
Mr. Jenkins reported he has received the amended permit for the water well.
Mr. Jenkins reminded the Board that Greenwood has agreed they owe overage to Parkway.
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 he is working to complete the request to rerate the waste water plant. He stated if approved, the District would be able to serve the undeveloped property outside the District’s boundaries.
Mr. Jenkins reported on expansion alternatives. He discussed with Greenwood’s engineer about purchasing the package plant. Greenwood’s engineer stated that plans to discuss the potential sale will take place at the December Board meeting, but the recommendation will be not to sell the design at this time. Mr. Jenkins does not recommended starting the process of a package plant for it will take up to a year to complete.
Mr. Jenkins stated that in October 2018 the America’s Water Infrastructure Act was signed in to law. He said that this act requires public drinking water systems to develop a risk assessment and emergency response plan. He stated he is in the process of putting proposals together and will have a client memo to review and approve at next month’s meeting.
Mr. Jenkins reported on the joint facilities between Parkway Utility District and Greenwood Utility District.
Mr. Jenkins reported on the Wastewater Treatment Plant clearing, grubbing, and detention. He recommends payment of Pay Estimate Number 2 in the amount of $128,672.46 with Parkway’s portion being half of that amount. 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 approve payment of Parkway’s portion of Pay Estimate Number 2.
Mr. Jenkins reported on the Wastewater Treatment Plant expansion. He said the low bid was submitted by CSA Construction which included a base bid and an alternate. Mr. Jenkins stated he recommends to add alternate number 1. He said that the District’s share is a little over $9 million. Upon motion by Director Rettig, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to reward bid to CSA Construction, authorize the execution of the construction contract, and authorize the issuance of notice to proceed.
Mr. Jenkins recommends terminating the contract with Hach. He stated that the contractor received data and it remained to be inaccurate. 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 terminate the contract with Hach.
Mr. Jenkins discussed a monthly fee to provide construction phase services. He stated the fee of $7,000.00 includes weekly site visits through the construction period. The Board decided to table this discussion and revisit at the start of next year.
Mr. Jenkins reviewed the budget worksheet and the Jones Carter hourly rate schedule. He stated the rate schedule is subject to change every January and is increasing this year to include new categories. He stated there is no action needed, but he wanted to keep the Board informed.
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 Engineer’s Report.
11. 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 “J”.
Ms. Sears reported on maintenance in the detention ponds.
Ms. Sears provided more information on the Nutria issues. She stated Nutria has become a problem in a number of Districts. She stated that she can provide a proposal at next month’s meeting from A ALL Animal Control to resolve the issue.
Ms. Sears reported that the Herbicide treatment was completed.
Ms. Sears provided an update on the tree in the Sunrise Pines detention pond. She stated she has been unsuccessful reaching the residents by phone. She said the resident’s door will be tagged to start a conversation and discuss options with the tree.
Director Rettig inquired about the feral hogs in the area. Discussion ensued.
12. Amend Rate Order. Mr. Wilson discussed the potential to amend the rate order to give
Parkway Baptist Church its own separate category. Mr. Maas stated that the church is currently being charged commercial rates. He said he recommends amending the rate order to categorize religious organizations as residential. He stated that by amending the rate order Parkway Baptist Church would have nearly 50% savings.
Director Balderas inquired about future potential bigger religious organizations to come in. Discussion ensued.
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 amend the rate order.
13. Authorize auditor to prepare audit for fiscal year ended December 31, 2020. Mr. Wilson presented and reviewed the signed audit engagement letter with McCall Gibson Swedlund Barfoot, PLLC, a copy of which is attached hereto as Exhibit “K”. He stated the District signed a three year contract. Mr. Wilson stated no action needs to be taken at this time and the Board will revisit the contract next year.
14. Building Superintendent’s Report. Director Rettig stated he wishes to step down as the building superintendent due to potential police involvement. He stated he no longer feels comfortable as a Director. Extensive discussion ensued. Mr. Wilson stated that Director Rettig will need to submit a letter of resignation to the attorney should he want to step down as director.
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 January 13, 2021.
/s/ Brenda McNeil
President, Board of Directors
/s/ Jennifer Balderas
Secretary, Board of Directors