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 February 9, 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, except Director Rettig, 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; 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; 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 Everhart, 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. Discuss Series 2022 Refunding Bonds Issuance. Mr. Howell reviewed results from the refunding and stated that the total savings is around $1.195 million. Mr. Wilson stated closing is set for March 17, 2022.
3. Public Comments. Mr. Ochoa provided information regarding the Fair Chance Act.
4. Approve the minutes of the meeting on January 12, 2022. Minutes of the regular meeting of January 12, 2022 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Woods, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes.
5. 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 10.5 tons which equates to 2.1 tons per week over five service recycling days in January.
6. Review and approve revision to the Sunrise Pines HOA Maintenance Agreement.
Mr. Wilson stated it was decided that concrete would be used on the trail rather than crushed gravel.
President McNeil discussed the additional of softscaping to the agreement. The Board decided to table discussion on the agreement and would approve at a later meeting when the revisions have been included in to the agreement.
7. 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 Van Hut Bridge extension stating the project is scheduled to be completed in early summer.
Mr. Syzek reported that Red Hawk Group warehouse development is under structural construction.
Mr. Syzek reported on Sierra Ranch signage.
Mr. Syzek reported on the Sunrise Pines Detention Pond tree removal and how there is no indication of nutria at this time.
Mr. Syzek provided an update regarding the wastewater treatment plant inspection and tour. He stated there are supply chain concerns but the project remains on a good schedule.
Mr. Syzek provided an update regarding Lift station 2 construction inspection.
Mr. Syzek discussed draining issues in Parkway Forest stating Harris County Flood Control has been made aware of the issue. Discussion ensued.
Mr. Syzek reported that Dr. Tina Peterson is now the executive director of the Harris County Flood Control District.
8. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey presented and reviewed a copy of the January Security Report, a copy of which is attached hereto as Exhibit “D”. He reported on various activity that took place throughout the District.
9. 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 January, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 62.64% of the District’s 2021 taxes have been collected as of January 31, 2022.
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 Everhart, 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.
10. 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 reviewed the various fund balances.
Ms. Bailey presented checks and deposit refunds for Board approval.
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 January with the Board.
Ms. Bailey reviewed the budget comparison through January.
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 Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the bookkeeper’s report.
11. 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 December and January with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 93.6% 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 Woods, 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 and to credit the resident’s account for their average bill.
12. 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 reported on the progress made on the Sanitary Sewer Rehabilitation Project stating the estimated completion date is June 2022 but could potentially be earlier.
Mr. Bishop reported on the Lift station 2 project and recommends payment of pay estimate no. 6 in the amount of $103,793.40. 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 pay estimate no. 6.
Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.
Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating he will recommend advertising the project for bid at the next meeting.
Mr. Bishop reported on the Hornberger tract stating multiple developers are wanting to put in an offer. He stated there is no formal request for capacity and Hornberger has not accepted an offer at this time.
Mr. Bishop provided information regarding a single family development, 32 acre tract at East Little York. He stated no action is needed at this time.
Mr. Bishop reported on the repurposing of the generator for the administration building.
Mr. Bishop recommends moving forward with NTS to complete the electrical modifications. Discussion ensued regarding seeking additional quotes to reviews. 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 MMIA to seek out two additional quotes and to approve a cost not to exceed $40,000.
Mr. Bishop reported on the Bond Application Report no. 17 stating there is no update at this time.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District.
Mr. Bishop reported on the surface water transfer facility stating a price has been received from the contractor to change the fence to black vinyl coated chain link with tan privacy slats in the amount of $18,224.22. Mr. Bishop stated that Greenwood Utility District has approved this change. Discussion ensued regarding the color of the privacy slats. 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 approve the change order and change the color of the privacy slats to dark green.
Mr. Bishop reported on the 16 inch water line along Tidwell Road stating the point of connection at the City’s distribution connection has a 16” gate valve that is inoperable and the City’s inspector is requesting additional blow-off valves be constructed on the waterline before issuing the City’s approval. He said the additional blow-off valves being required by the inspector were not required by the City for approval of the waterline design and is trying to get clarification from the City on a resolution.
Mr. Bishop reported on the wastewater treatment plant stating there are concerns regarding the steepness of the slopes. He stated he recommends moving forward with the installation of weep holes along the pilot channel. 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 approve change order no. 3 regarding the installation of weep holes.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project recommending payment of pay estimate no. 9. 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 payment of pay estimate no. 9.
Mr. Bishop reported on the wastewater treatment plant outfall depression.
Mr. Bishop reported that Jones and Carter is rebranding and changing their name to Quiddity Engineering.
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 accept the engineer’s report.
13. Report from Storm Water Solutions, and take any necessary action. Ms. Sears reviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “I”.
Reviewed photographs of the various ponds throughout the District.
14. Consider Renewal of District Insurance. Mr. Wilson presented and reviewed the insurance renewal proposal, a copy of which is attached hereto as Exhibit “J.” He stated that the increase in premium is due to the increase in value in the District.
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 approve the renewal proposal for 2022-2023.
15. Adopt Order Calling Director Election. Mr. Wilson presented and reviewed the Order Calling Director Election, a copy of which is attached hereto as Exhibit “K.” Ms. Koett reminded Director Woods and Director Everhart to complete and submit their Director applications. Discussion ensued.
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 adopt the Order
16. Building Superintendent’s Report. There was nothing to report at this time.
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 Woods, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to enter into Executive Session at 8:00 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 Woods, after full discussion and the question being put to the Board, the Board voted unanimously to enter into public session at 8:33 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 Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to release appraisal reports to Tenaris Property and negotiate up to dollar a amount set by the board.
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 March 9, 2021.
/s/ Brenda McNeil
President, Board of Directors
ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors
(DISTRICT SEAL)