PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
JANUARY 12, 2022
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 January 12, 2022 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. 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, of Jones|Carter (“JC”), engineers for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Mr. Jamal Singleton with Direct Waste Solutions; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Ms. Karen Sears of Storm Water Solutions; Mr. John Howell with GMS Group, Financial Advisor for the District; Captain Ganey of Harris County Precinct 3 Constable’s Office; Mr. Ryan LeMoine of ZuesCon, LLC; and Mr. Julian Ochoa of Harris County Precinct 1.
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 and 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. She 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. 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 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. LeMoine presented a change order request for the lift station project. He stated that the he projects this being the final change order and the project should finish prior to summer. Discussion ensued.
3. Approve the minutes of the meeting on December 8, 2021. Minutes of the regular meeting of December 8, 2021 were previously distributed to the Board and were presented for consideration and approval. 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 approve the minutes.
4. 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 9.95 tons which equates to 2.48 tons per week over four service recycling days in December.
President McNeil inquired about trash volume. Mr. Singleton stated trash volume was larger during the holiday weeks, but is back to normal volumes at this time.
5. Report from General Manager, and take any necessary action. 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 Harris County Van Hut Bridge expansion.
Mr. Syzek provided an update regarding construction of East Little York Road Extension to Beltway 8.
Mr. Syzek provided an update on the Lift station no. 2 wet well.
Mr. Syzek reported on the wastewater treatment plant monthly inspection. He reviewed pictures of the progress being made.
Mr. Syzek reported on various topics discussed during the Houston Parks Board workshop.
Mr. Syzek reported that the Omicron variant has been detected in nearly every Harris County wastewater treatment facility.
Mr. Ochoa of Harris County Precinct 1 introduced himself at this time and stated he is now the community engagement coordinator for Commissioner Rodney Ellis’s Office.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey presented and reviewed the security report for the month of December, a copy of which is attached hereto as Exhibit “D.” He reported on various security events throughout the District.
Director Rettig expressed his concern regarding fast drivers throughout the District.
7. Discuss Series 2022 Refunding Bonds Issuance.
a. Discuss and approve form of Preliminary Official Statement for Series 2022
Refunding Bonds. Mr. Howell presented and reviewed the Preliminary Official Statement for the Series 2022 Refunding Bonds, a copy of which is attached hereto as Exhibit “E.”
b. Discuss and approve parameters for Series 2022 Refunding Bonds. Mr. Howell presented and reviewed a refunding analysis for the issuance of 2022 refunding bonds, a copy of which is attached hereto as Exhibit “F.” Extensive discussion ensued.
c. Authorize Financial Advisor to begin negotiations. 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 (i) approve the parameters, (ii) approve the preliminary official statement, (iii) Approve Samco and Hilltop Securities as the Underwriters, and (iv) approve Roboert Thomas CPA to complete the verification report.
8. 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 September, a copy of which is attached as Exhibit “G.” Ms. Yanez reported that 18.36% of the District’s 2021 taxes have been collected as of December 31, 2021.
Ms. Yanez presented 7 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
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 the Tax Assessor and Collector’s Report.
9. Adopt Order Authorizing Exemptions from Taxation. Mr. Wilson presented and reviewed the Order Authorizing Exemptions from Taxation, a copy of which is attached hereto as Exhibit “H.”
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 adopt the order.
10. Adopt Resolution Authorizing Additional Penalty on Taxes, Penalty on interest remaining delinquent on April 1st and July 1st. Mr. Wilson presented and reviewed the Resolution Authorizing Additional penalty on Delinquent Taxes, a copy of which is attached hereto as Exhibit “I.”
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 adopt the resolution.
11. Receive and approve Bookkeeper’s Report, payment of bills, and Investment Report. Ms. Bailey reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “J.”
Ms. Bailey reviewed the various fund balances.
Ms. Bailey reported that the next debt service 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 December with the Board.
Ms. Bailey reviewed the budget comparison through December.
Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
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 the bookkeeper’s report.
12. Receive and approve Operator’s Report, including action on customer matters, and system repairs and maintenance. Mr. Maas presented and reviewed with the board the Operator’s Report, a copy of which is attached hereto as Exhibit “K.”
Mr. Maas reported Parkway currently has 2439 active connections.
Mr. Maas reviewed the bill and collections report for November and December with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 91.65% accountability.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas stated there were no violations at the wastewater treatment plant.
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, and to proceed with termination and fees of delinquent accounts.
13. Receive and approve Engineer’s Report, including approval of pay estimates and authorize action relating to plans and projects, including conveyances of real property and/or District facilities. Mr. Bishop presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as Exhibit “L.”
Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project stating the project is on track and moving forward.
Mr. Bishop reported on the Lift station 2 project providing an update on work completed.
He presented pay estimate no. 5 in the amount of $49,369.57 and recommends payment. 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 payment of pay estimate no. 5.
Mr. Bishop stated a change order request was made for additional time and money to cover the equipment and labor for lost time due to the sewage matter. Mr. Bishop stated this is a formal request from the contractor, however payment is not recommended. He stated the scope of work related to this issue has been accounted for in the contract. Discussion ensued.
Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.
Mr. Bishop stated there were no updates at this time regarding Global New Millennium.
Mr. Bishop stated he is currently proceeding with the sanitary sewer extension to service Global New Millennium and the first round of the design has been submitted to the City of Houston and Harris County.
Mr. Bishop reported on the Tenaris Coiled Tubes Tract stating the appraisal was completed and will be discussed in executive session at the conclusion of this meeting.
Mr. Bishop reported on the repurposing of the generator for the administration building suggesting abandoning the existing power service and connecting to the water plant. He stated he will have a firm recommendation and path moving forward at the February meeting.
Mr. Bishop stated new lead and copper rules took effect on December 16, 2021 with a compliance date of 2024. He stated that there will be new testing requirements and notices and implementation will be discussed at the upcoming AWBD conference.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District.
Mr. Bishop reported on the surface water transfer facility and recommends payment of pay estimate no. 2 in the amount of $108,399.60. 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 authorize payment of pay estimate no. 2.
Mr. Bishop reported on the 16 inch water line along Tidwell Road stating the final pay application will be presented at the February meeting and the project is essentially complete.
Mr. Bishop reported that the final walk through was completed at the wastewater treatment plant and he anticipates close out documents to be presented at the February Board meeting.
Mr. Bishop reported on the wastewater treatment plant detention pond maintenance. He stated he received a proposal from Stuckey’s in the amount of $7,920 annually with Parkway’s share being 50%. Mr. Bishop stated he recommends approval of the proposal. 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 the proposal.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project recommending payment of pay estimate no. 8 in the amount of Parkway’s share being $328,117.37.
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 authorize payment of pay estimate no. 8.
Mr. Bishop reported on the wastewater treatment plant outfall depression stating he has received the exhibits from Greenwood’s engineer and has responded with comments. Mr. Bishop said he is working on scheduling a meeting with the engineer.
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 engineer’s report.
14. Report from Storm Water Solutions, and take any necessary action. Ms. Sears presented and reviewed the report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “M.” Ms. Sears reviewed pictures of the various detention ponds.
Discussion ensued regarding ongoing nutria issues and damage. Ms. Sears stated it would cost $1400-1500 to set out traps for two weeks. 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 proceed with trapping nutria.
Ms. Sears reported that tree trimming and removal along the fence line at Sunrise Pines is scheduled for completion within the next two weeks.
15. Report on Eminent Domain Filing. Mr. Wilson stated the eminent domain filing occurs annually and is completed on behalf of the Board. He stated that the District did not exercise it’s authority and there is no action required at this time.
16. Building Superintendent’s Report. Director Rettig stated there was nothing to report at this time.
Mr. Wilson presented and reviewed the Interlocal Agreement for Law Enforcement Services, a copy of which is attached hereto as Exhibit “N.” He stated the contract is for March 1 through September 1 2022 due to a change in fiscal year dates. Director Everhart inquired about additional options for security. Mr. Wilson stated he will reach out to Captain Ganey to set up a special meeting to discuss deputies and security issues.
Mr. Wilson reported that Sunrise Pines HOA would like to revise the maintenance agreement and state the trail is made of concrete and not crushed gravel. The Board decided to defer approval of the revision until the February meeting.
17. Executive session pursuant to Section 551.071, Texas Gov’t Code, to confer with attorney regarding matters where the duty of the attorney to the Board requires confidentiality.
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 enter into Executive Session at 8:36 p.m. pursuant to Section 551.071 Texas Gov’t Code, to discuss a matter in which the duty of 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. Syzek, Mr. Bishop, and Ms. Schlachter.
18. Convene in public session. Upon motion by Director Everhart, seconded by Director McNeil, after full discussion and the question being put to the Board, the Board voted unanimously to enter into public session at 9:01 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.
19. Motions. Upon motion by Director Everhart, seconded by Director McNeil, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the engineer to proceed with negotiations for the purchase of Tenaris Property.
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 February 9, 2022.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)