PARKWAY UTILITY DISTRICT MINUTES OF BOARD SPECIAL MEETING
JULY 8, 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 special session, at 6:15 p.m. on July 8, 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 were present, except Director Everhart, thus constituting a quorum. Also attending all or parts of the meeting were Mr. Gary Syzek of Systems Project Management, General Manager for the District; Ms. Kaci Schlachter, Mr. Jeffery Bishop, and Mr. Josh Lee of Jones|Carter (“JC”), engineers for the District; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Mr. Isreal Lopez and Mr. Bart Adams with Sustanite Support Services.
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. Discuss concerns with ZeusCon, LLC on the Lift Station No. 2 Expansion Project.
Mr. Wilson opened up the discussion stating that the contract has originally been rewarded to ZeusCon, LLC (“ZeusCon”) as the low bidder. Mr. Wilson stated that the Board has concerns with the lack of experience of Mr. Bishop stated the ZeusCon bid price was $1.16 million and Sustanite Support Services was $1.37 million.
Director Rettig inquired about ZeusCon’s project timeline and why it greatly differs from Sustanite Support Services. Mr. Bishop stated that Sustanite Support Services provided their own buffer due to unknown situations of vendors being able to supply equipment.
Mr. Adams stated that he believes Sustanite Support Servicers will be able to finish the job in 330 days. He stated the company is currently working on 18 projects, but is experienced in this type of work and comfortable with the project.
Director Balderas inquired about possible shortage of crew for the project. Mr. Adams stated that Sustanite Support Services does not have a shortage in man power at this time. President McNeil noted her concerns with JC and its oversight of the project. Extensive discussion ensued. It was the consensus of the Board to proceed with ZeusCon.
3. Discuss engineering matters. Mr. Bishop stated his formal recommendation is to award bid to ZeusCon for they were the most advantageous bidder. He stated there is a $216,000 difference between ZeusCon and Sustanite Support Services. Mr. Bishop stated he believes ZeusCon will give this project complete attention since it is their only project.
Director Balderas inquired about what happens if ZeusCon cannot handle the project.
Mr. Bishop stated that he will be staying on top of the contractor and will provide field inspections and be there hours a day while in construction. He stated that during critical times, he will be in the field more often and be able to catch any issues early.
Director Rettig expressed his concerned about the overall difficulty of the project and the lack of experience of ZeusCon, LLC. Discussion ensued.
Mr. Lee stated that Jones & Carter will work with any contractor in the same manner and the Board can go against Jones & Carter recommendation.
Mr. Wilson suggested scheduling additional meetings with the engineer to discuss project status updates. Mr. Bishop suggested electing a liaison member of the Board to meet with engineer’s more often. Discussion ensued. It was the consensus of the Board to receive consistent progress reports via email.
Mr. Bishop stated that it was budgeted in the bond issue to go on site on average 3-4 hours a day during the project. He stated if he thinks he needs to be on site more often to assist the contractor, he will advise the District early and have a plan in place to address the issue.
President McNeil expressed her concerns with lack of documentation and communication regarding changes.
Ms. Schlachter provided historical background information on Jones & Carter’s completed work for the District since being hired.
Mr. Syzek stated that the joint monthly meetings have been beneficial and informative.
He stated that he maintains communication with the engineers and feel they are heavily engaged in the District.
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 11, 2021.
President, Board of Directors
Secretary, Board of Directors