Meeting Minutes 2021-09-08

PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING

SEPTEMBER 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 regular session, at 6:15 p.m. on September 8, 2021 via videoconference and teleconference. A roll call was taken of the persons present:

Brenda McNeil, President
Alphonso (“Al”) Rettig, Vice President
Ron Everhart, Assistant Secretary
Gloria Woods, Director
Vacancy

All members of the Board for Parkway Utility District (“PUD”) were present, thus constituting a quorum. All members of the Board for Greenwood Utility District (“GUD”) 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. Brittany Keeswood of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for the District; Ms. Kaci Schlachter and Mr. Jeffery Bishop, 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; and Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District. Mr. John Howell with The GMS Group, financial advisor for the District; Mr. Adam Bruce of CIA Services, Sunrise Pines HOA representative; Mr. Bubba Jones of MDS, Operator for GUD; Mr. Elliot Barner, of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorneys for GUD; and Ms. Dietra Bonds of Municipal Accounts & Consulting L.P. (“MAC”), bookkeeper for GUD.

In accordance with notice posted pursuant to law, copies of certificates of posting of which are attached hereto as Exhibit “A,” the following business was transacted:

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. Authorize teleconference meeting: Board finding of existence of emergency or public necessity making the convening at one location of a quorum of the government body difficult or impossible and permitting a meeting by teleconference pursuant to Section 551.125 of the Texas Open Meetings Act. Mr. Wilson reported that the suspension of certain portions of the Open Meetings Act expired on September 1st. He stated that the Board may continue with teleconference meetings if the Board makes the necessary findings.

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 find the existence of an emergency or public necessity, i.e., Delta variant of COVID-19, making the convening at one location of a quorum of the government body difficult or impossible and permitting a meeting by teleconference pursuant to Section 551.125 of the Texas Open Meetings Act.

2. Public Comments. Mr. Bruce stated the Sunrise Pines HOA is interested in building a walking trail around the detention basin. He stated the HOA would pay for the trail to be installed and is asking the District to cover the operations and maintenance moving forward. Mr. Bruce stated that the HOA is willing to pay for future improvements but does not want to be obligated to do so.  Discussion ensued.

Director Rettig stated he would like to see what the potential costs would be for the District. President McNeil asked Stormwater Solutions to provide a cost estimate for maintenance of the trail and will discuss more at next month’s meeting.

3. Joint Discussion with Greenwood Utility District:

A. Regional Wastewater Treatment Facilities (“RWWTF”), including:

i. Update on status of RWWTF Expansion Project, including site clearing, grubbing, and detention. Mr. Anderson reported that the project should be completed within the next couple of weeks and closed out by next month.

ii. Review proposal for maintenance of detention pond at RWWTF. Mr. Anderson reported there are no issues and is recommending payment of pay application no. 4 in the amount of $337,961.42.

Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve pay application no. 4.

Upon motion by Director Guerra, seconded by Director Hall, after full discussion and the question being put to the GUD Board, the Board voted unanimously to approve pay application no. 4.

iii. Review operations, including status of use of permitted capacity. There was no update given at this time.

iv. Update on status of RWWTF Outfall. Mr. Anderson reported that the field work has been completed. He stated he will be meeting with PUD engineers for recommendation on how to proceed and approach Harris County Flood Control District. Discussion ensued.

v. Reviewing Operations. Mr. Jones stated there are no issues to report at this time.

vi. Update on status of RWWTF budget for Fiscal Year Ending (“FYE”) December 31, 2022. Ms. Bonds stated the RWWTF is seven months in to budget and is currently at and under budget in most accounts. She stated she will work with the various consultants to review areas where the budget can decrease.

B. Surface Water Transmission Facility (“SWTF”), including:

i. Update on status of Sixteen-inch (16”) Water Line Along Tidwell Road Project. Mr. Anderson reported that the contractor has installed a portion of the line. He also recommended payment of pay application no. 2, with PUD’s portion being $81,924.

Upon motion by Director Rettig, seconded by Director Woods, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve pay application no. 2.

Upon motion by Director Hall, seconded by Director Guerra, after full discussion and the question being put to the GUD Board, the Board voted unanimously to approve pay application no. 2.

ii. Update on status of SWTF Project; Mr. Anderson reported that the notice to proceed has been given and the project is moving forward.

iii. Review operations, including discuss surface water consumption. There was nothing to report on at this time.

iv. Update on status of SWTF budget for FYE December 31, 2022. There was no update at this time.

4. Minutes of previous meeting(s). Minutes of the regular meeting of August 11, 2021 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Rettig, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes.

5. Consider the Financial Advisor’s recommendation for the 2021 Tax Rate. Mr. Howell presented and reviewed the tax rate analysis for the District, a copy of which is attached hereto as Exhibit “B.”

Mr. Howell reported the highest tax rate the District could set is $0.71 without triggering a mandatory election. He stated this would increase the MUD tax dollars by $163 by the average homestead. Mr. Howell stated that a penny is worth $44,000 in revenue to the District and $13 of MUD taxes to the average homestead. Discussion ensued.

Mr. Howell recommended publishing a tax rate of $0.71 with maintenance and operations being set at $0.22 and debt service at $0.49

6. Order Designating Officer to Calculate and Publish Tax Rates and Taking Other Actions in Connection with the Levy of a Tax for 2021. Mr. Wilson presented and reviewed the Order Designating Officer to Calculate and Publish Tax Rate, a copy of which is attached hereto as Exhibit “C.” Upon motion by Director Everhart, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to publish a total tax rate of $0.71 and to authorize Assessments of the Southwest to publish the tax rate.

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

Mr. Singleton reported that recycling volume totaled 9.3 tons which equates to 2 tons per week over four service recycling days in August.

8. 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 “E.”

Mr. Syzek reported on the Lower Greens Bayou Feasibility study workshop. He stated the final workshop will take place on Monday, September 20th.

Mr. Syzek reviewed Sesco Concrete historical photos stating that Sesco has inquired about water and sewer service from the District. He stated the company is currently shut down.

Mr. Syzek reported on the Lift station no. 2 inspection stating concrete has been poured.

Mr. Bishop stated the pouring of the wet well walls is not the most critical piece, rather the process of sinking the wet well is critical, but in this project what is most difficult and critical will be the exploration digging and switching services and by pass pumping from the old lift station to the new one. He stated that all pieces of this project are critical.

Mr. Syzek reported on a construction debris issue with the Church stating that the Operator’s have handled the issue.

Mr. Syzek reported the that Harris County Flood Control District drainage improvement project is close to completion.

Mr. Syzek reported that the five year fence restoration is complete in Stonefield Terrace.

Mr. Syzek reported that a concrete pour will happen soon at the joint wastewater treatment plant site.

Mr. Syzek reported on a settlement with Kimberly Clark regarding flushable wipe products. He stated improvements will be made on the disintegration of the product.

9. 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 August 2021 which was previously distributed, a copy of which is attached as Exhibit “F.” Captain Ganey reported on various activity throughout the month.

Road rage incidents are more frequent. Enforcement has been picked up and there is zero tolerance for aggressive driving.

Rettig: signs around the neighborhood. Ganey: will send signs to the attorney for review.

10. 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 June, a copy of which is attached as Exhibit “G.” Ms. Yanez reported that 98.29% of the District’s 2020 taxes have been collected as of August 31, 2021.

Ms. Yanez presented 3 checks and 2 wires to the Board for review and approval.

Ms. Yanez reviewed the delinquent tax role and provided an update on delinquent accounts from the delinquent tax attorney report, a copy of which is attached hereto as Exhibit “H.” Ms. Yanez stated authorization is need to proceed with termination on accounts that failed to respond.

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 and to authorize termination of delinquent accounts who failed to respond.

11. 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 “I.”

Ms. Bailey reported that checks 11476-11487 were written in prior months.

Ms. Bailey reported that check 11600 is for the AWBD mid-winter conference registration.

Mr. Bailey reported that check 11649 was for an emergency repair for a leak at the administration building.

Ms. Bailey reported on capital projects fund disbursements.

Ms. Bailey reported that the debt service payment was made on September 1, 2021 and the next payment is not due until March 1, 2022.

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

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

Ms. Bailey reviewed the budget comparison through August.

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

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 and to authorize the transfer of District accounts from BBVA to Central Bank.

12. Discuss and consider authorization to move District accounts currently with BBVA to Central Bank, and approval of all required documentation and actions related thereto, and take any necessary actions. This item was discussed and approved in the Bookkeeper’s Report.

13. 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 “J.”

Mr. Maas reported Parkway currently has 2439 active connections.

Mr. Maas reviewed the bill and collections report for July and August with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 93% 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 reported that a fire hydrant test will be completed within the next month or two.

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, to proceed with termination and fees of delinquent accounts.

14. 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 “K.”

Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project stating notices were provided to residents and he is currently working to get a detailed schedule.

Mr. Bishop reported on the Lift station 2 project stating the project is running smoothly and recommends payment of pay application no. 1. Upon motion by Director Woods, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to approve pay estimate no. 1 in the amount of $89,438.56.

Mr. Bishop reported on the water plant no. 1 and water well semi annual testing. He stated high levels of sand were produced and he will continue to monitor and take action if necessary.

Mr. Bishop recommends completing the testing every 3 months for preventative maintenance. 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 move forward with completing testing every three months upon recommendation of the engineer.

Mr. Bishop reported on the potential annexation of Sunrise Plastics. He stated it would bring in $65,000 of revenue to the District. President McNeil stated she wants to capitalize on all opportunities and move forward with the process. 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 the engineer and attorney to move forward with the annexation of Sunrise Plastics.

Mr. Bishop stated he has spoken with the developer for Global New Millennium and a meeting will take place on September 7th to discuss site plans and lift station requirements. President McNeil stated she feels the District needs to expand across the Beltway. Discussion ensued. 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 the engineer to contact Global New Millennium and Hornberger to decide the best land for a water plant and to look for additional land for a new District administration building.

Mr. Bishop inquired if the Board was interested in serving water and sewer to Sesco Cement Company. He stated it would be low usage and high taxable value. 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 move forward with a feasibility study for Sesco Cement Company and have Sesco cover the cost of the study.

Mr. Bishop reported that the Harris County Toll Road Authority has asked for water services but have made no formal request at this time. He stated they are tax exempt and there would not be a need for annexation.

Mr. Bishop reported on the Bond Application Report no. 17 stating he is proceeding with the report and in the next month there will be further updated cost summary.

Mr. Bishop reported he is currently preparing the emergency response plan for the America’s Water Infrastructure Act.

15. 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 “L.” Ms. Sears reported on maintenance in the detention ponds.

Ms. Sears presented and reviewed a proposal to remove the trees along the Sunrise Pines fence line, a copy of which is attached hereto as Exhibit “M.” She stated the total amount to remove all trees is $2,700. Ms. Sears stated she can reach out to residents along the property line and make aware of the potential removal of trees.

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 move forward with the removal of trees subject to notifying the residents and where the trees are in relation to the property line.

16. Election of Officers. This agenda item was tabled.

17. Discuss appointing a new Director and take any necessary action. This item was tabled.

18. Building Superintendent’s Report. There was nothing to report at this time.

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 October 13, 2021.

President, Board of Directors
ATTEST:
Secretary, Board of Directors

(DISTRICT SEAL)