Meeting Minutes 2021-05-12

PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING

MAY 12, 2021

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 May 12, 2021, 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 for Parkway Utility District (“PUD”) 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. Kaci Schlachter and Mr. Jeffery Bishop, Mr. Erich Peterson 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; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Mr. Jamal Singleton with Direct Waste Solutions; Captain 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 Ms. Jennifer Day of McCall Gibson Swedlund Barfoot, PLLC, auditor 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 public comments.

2. Minutes of previous meeting(s). Minutes of the regular meeting of April 14, 2021 and of the special meeting of April 19, 2021, were previously distributed to the Board and were presented for consideration and approval. 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 minutes.

3. Report from Direct Waste Solutions. Mr. Singleton reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “B.”

Mr. Singleton reported that recycling volume totaled 11.25 tons which equates to 2.8 tons per week over four service recycling days in April.
Mr. Wilson inquired about the switch of heavy trash pick-up from Saturdays to Wednesday. Mr. Singleton stated this change was made abruptly due to high volume. He said there are more resources available to pick up heavy trash on Wednesdays as well as the landfill is open later on weekdays. Mr. Wilson stated a post will be made on the website and the operator will include a memo in the bill to notify residents about the day change for heavy trash pick-up.

Mr. Wilson stated the contract with Direct Waste Solutions is up for renewal and the Board can approve the renewal contract at next month’s meeting.

Discussion ensued regarding what qualifies as heavy trash. Mr. Singleton stated construction debris and large volume of unbundled items will not be picked up.

President McNeil inquired if there has been a reduction in trash pick-up. Mr. Singleton reported that trash pick-up has decreased slightly, but doesn’t foresee the volume of trash returning to what it was before COVID.

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 authorize Direct Waste Solutions to pick up assign heavy trash pick-up on Wednesday’s.

Mr. Maas stated he will place an insert in the next bill due to required information already being in the memo box. Mr. Singleton state he will send Mr. Maas a flyer to use.

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 Bamboo Forest sewer line point repair. He stated that no service was interrupted during the repair.

Mr. Syzek reported on a home in Crystal Cove. He stated Parkway Forest HOA has hired landscaping clean-up crew to clean the area.

Mr. Syzek reported on the Sesco Cement plant clean-up efforts.

Mr. Syzek reported on Harris County Flood Control Channel Upgrades. He stated the main flood control channel is being dredged and deepened.

Mr. Syzek reported on the Sunrise Pines Detention Pond Motor Oil Contamination. He said Stormwater Solutions is working to stabilize the situation and that the area is not large enough to include pollution control.

Mr. Syzek reported that a fire hydrant in the District has been hit by a car but t did not rupture the water main. Mr. Maas reported that repairs have been made. Captain Ganey stated that he has located the case number and will research and follow up.

Mr. Syzek provided an update regarding the office building landscape. He stated to address landscaping updates as necessary.

Mr. Syzek reported on the Wastewater Treatment Plant monthly meeting.

Mr. Syzek reviewed hurricane preparedness and evacuation information from Harris County Judge Lina Hidalgo.

Director Balderas provided additional information regarding the Sesco Cement plant.

5. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey reviewed the Security report for the Month of April 2021 which was previously distributed, a copy of which is attached as Exhibit “D.” Captain Ganey reported on various activity throughout the month.

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 March, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 96.85% of the District’s 2020 taxes have been collected as of April 30, 2021.

Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.

Ms. Yanez reviewed the delinquent tax role.

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.

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 on capital projects fund disbursements.

Ms. Bailey reported that check nos. 11279-11366 were written in prior months and brought back for review.

Ms. Bailey reviewed the schedule of investments through current day.

Ms. Bailey reported that the next debt service payment is September 1, 2021.

Ms. Bailey reviewed the Investment report for April with the Board.

Ms. Bailey reviewed the budget comparison through April. She stated there is a surplus of $823,204.00.

Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.

Ms. Bailey reviewed the Joint Water Plant Facilities budget with the Board.

Director Rettig inquired how to pay for repairs to the District building without using his personal account. Ms. Bailey stated some companies allow payments through accounts. Mr. Maas stated some companies allow payments through the operator. Mr. Maas stated he will discuss further with Director Rettig following the meeting.

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 bookkeeper’s report.

8. 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 March and April with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 98.08% accountability.

Mr. Maas reviewed historical data over a 4 month average.

Mr. Maas stated there were no violations at the wastewater treatment plant.

Mr. Maas stated the Consumer Confidence Report information is located on this month’s bill.

Mr. Maas inquired if the Board would like to proceed with water termination and issuing fees for delinquent accounts. He stated there are currently 13 accounts over $250. Discussion ensued. The Board agreed to reinstate late fees and shut offs.

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 accept the Operator’s Report, to proceed with termination and fees of delinquent accounts.

9. Engineer’s Report, including review of Engineer’s projects, and capital repairs. Mr. Bishop presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as Exhibit “H.”

Mr. Bishop presented a Policy Concerning Existing Facility Removal and Replacement for the Sanitary Sewer Rehabilitation Project for Board consideration. He stated this policy addresses that notices will be given if someone has a conflict and that the District is not responsible for replacing items within the District’s easement. Discussion ensued. 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 adopt the Sanitary Sewer Rehabilitation Policy.

Mr. Bishop stated he prepared a bid package for the Sanitary Sewer Rehabilitation project and recommends authorization to advertise for bids. Upon motion by Director Woods, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the advertisement of bids.

Mr. Bishop reported on the Lift station 2 project stating it has been submitted to the City of Houston for final approval. He said he is proceeding to advertise for bids and will present recommendation of award at the June meeting.

Mr. Bishop reported that Sunrise Plastic Enterprise is interested in moving forward with annexation.

Mr. Bishop provided an update on Global New Millennium stating they are proceeding with site design and anticipates submitting initial plans for the District’s review soon.

Mr. Bishop stated that Hornberger Tracts are not inclined to proceed with annexation until the tracts are under contract for development.

Mr. Bishop reported that the TCEQ approved the District’s request to re-rate the water plant to serve a portion of the undeveloped property outside the District’s boundary. He stated a second water plant will be required to service the ultimate planned development.

Mr. Bishop reported that he is preparing updated Summary of Cost options for a potential Bond Application Report to be prepared and submitted to the TCEQ.

Mr. Bishop stated an inspection was completed on Sierra Ranch to address maintenance concern and improve drainage. He stated the results showed the facility is in acceptable condition.

Mr. Bishop stated he received a request from Harris County’s consultant for utility information in relation to a proposed drainage improvements project south of Crystal Cove Drive. He said he is awaiting further information.

Mr. Bishop stated he attended a conference call with consultants for the U.S. Corps of Engineers and the Mr. Syzek regarding a Watershed Assessment in the Houston region.

Mr. Bishop reported on the surface water transfer facility stating Greenwood Utility District has resubmitted plans and advertisement began on May 6, 2021. He said bids will be presented at the June meeting.

Mr. Bishop reported that construction is currently underway for the 16 in water line along Tidwell Road. He sated he is meeting with Harris County regarding the waterline connection across the bridge on May 13, 2021..

Mr. Bishop reported on wastewater treatment plant expansion stating that the contractor is proceeding with site preparation. He also said that the existing sanitary sewer influent line is in conflict with a proposed by-pass plan that would require an 11-foot diameter manhole rather than the 4-foot diameter manhole that was originally bid. The additional cost for this work is $19,632.00.

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 authorize change order No. 1 in the amount of $19,632.00.

Mr. Bishop reported on the wastewater treatment plant outfall depression stating a pipe has collapsed. He said the geotechnical analysis is complete and will discuss findings at the June meeting.

Mr. Bishop reviewed a budget worksheet of the District and joint facility projects.

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.

10. Discuss District policy concerning existing facility removal and replacement for Sanitary Sewer Rehabilitation, and take any necessary action. This item was discussed and approved in 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 “I.”

Ms. Sears reported on maintenance in the detention ponds.

Ms. Sears reviewed a proposal for nutria damage repair at the Sunrise Pines Detention Pond, a copy of which is attached hereto as Exhibit “J.” Discussion ensued.

Ms. Sears reviewed a proposal regarding herbicide and vegetation trimming at Stonefield Manor Detention Pond, a copy of which is attached hereto as Exhibit “K.” Discussion ensued.

Ms. Sears reviewed a proposal for crushed granite installation along the pathway at Stonefield Manor Detention Pond, a copy of which is attached hereto as Exhibit “L.” Discussion ensued.

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 approve all three proposals.

12. Approve Audit for Fiscal Year Ending December 31, 2020. Ms. Day reviewed with the Board the draft audit for fiscal year ending December 31, 2020, a copy of which is attached here to as Exhibit “M.” Discussion ensued.

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 audit for fiscal year ended December 31, 2020, subject to any further consultant comments.

13. Approve and authorize filing of Annual Continuing Disclosure Report. Mr. Wilson stated that the Annual Continuing Disclosure Report provides current bond holders with an update on where the District is financially.

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 and authorize filing of the Annual Continuing Disclosure Report.

14. Building Superintendent’s Report. Director Rettig stated he is currently working on the hot water installation.

15. Executive Session pursuant to Section 551.076 of the Open Meetings Act to discuss security devices or security audits. Upon motion by Director Balderas, seconded by Director Rettig, after full discussion and the question being put to the Brewer, the Board voted unanimously to enter into Executive Session at 8:26 p.m. pursuant to Section 551.071 Texas Gov’t Code, to confer with their Engineer on a matter in which the duty of the Engineer to the governmental body under the Rules of Professional Conduct requires confidentiality. At this time all persons left the meeting, except the Board members, Mr. Wilson,, Ms. Koett, Mr. Bishop, and Ms. Schlachter.

16. Convene in public session. 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 enter into public session at 8: 41 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.

17. Authorize certification to EPA of completion of Risk and Resiliency Report. 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 authorize certification to EPA of completion of Risk and Resiliency. Director Brown left the call during executive session.

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 June 9, 2021.

President, Board of Directors
ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)