Meeting Minutes 2022-03-09

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 March 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, 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 PUD; Ms. Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for PUD; Ms. Kaci Schlachter and Mr. Jeffery Bishop, of Jones|Carter (“JC”), engineers for PUD; Mr. Ron Anderson and Mr. Ainsworth, engineers for GUD; Mr. Gary Syzek of Systems Project Management, General Manager for PUD; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators for PUD; Mr. Johnny Bellamy, operator for GUD; Mr. Jamal Singleton with Direct Waste Solutions; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for PUD; Mr. Elliot Barner, attorney for GUD; Ms. Karen Sears of Storm Water Solutions; and Captain Ganey of Harris County Precinct 3 Constable’s Office.

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. Public Comments. There were no public comments.

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 provided an update on the project and recommended payment of Pay Application No. 10.

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 payment of Pay Application no. 10.

Upon motion by Director Primreaux, seconded by Director Hall, after full discussion and the question being put to the Board, the Board voted unanimously to approve payment of Pay Application no. 10.

ii. Update on status of RWWTF Outfall. Mr. Anderson stated he has reviewed the geotechnical evaluations and has three options for a solution.

Mr. Anderson stated that a portion of the dirt could be excavated and replaced with stabilized sand. He said this option has a total estimated cost of construction of $780,000. Discussion ensued.

Mr. Anderson stated the second option is a hybrid option and has an estimated construction cost of $148,000. He stated soil would be removed at the sinkhole towards the outfall and solidify the end portions with stabilized sand. Mr. Anderson said there is risk for it to wash away again with this option. Discussion ensued.

Mr. Anderson stated the third option would be to do a pipe restoration repair. He said the pipe would be repositioned and backfilled at the point of infiltration and the estimated construction cost would total $69,000. Mr. Anderson advised he would request a price from CSA to complete as a change order. Discussion ensued.

Mr. Anderson recommends repairing the pipe restoration and budget for this every 5-10 years. He said based on financial implications and risks, a repair is the best course of action. Mr. Bishop stated after reviewing the options he believes a point repair will fix the issue and is the most cost effective option. He recommended televising the outfall and then further diagnose. Discussion ensued.

Upon motion by Director Hall, seconded by Director O’Neil, after full discussion and the question being put to the Board, the Board voted unanimously to authorize televising in an amount not to exceed $3,000.

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 authorize televising in an amount not to exceed $3,000.

iii. Review operations, including status of use of permitted capacity. Mr. Anderson stated there is no update at this time and everything is running smoothly.

iv. Review and accept proposal for maintenance of detention pond at RWWTF.

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

i. Update on status of Sixteen-inch (16”) Water Line Along Tidwell Road Project. Mr. Anderson stated he is coordinating possible additional scope items prior to acceptance with City of Houston and will be holding a meeting to discuss further.

ii. Update on status of SWTF Project. Mr. Anderson provided a status update on the project and recommended payment of Pay Application nos. 3 and 4.

Upon motion by Director McNeil, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve payment of Pay Application Nos. 3 and 4.

Upon motion by Director Primreaux, seconded by Director O’Neil, after full discussion and the question being put to the Board, the Board voted unanimously to approve payment of Pay Application Nos. 3 and 4.

iii. Review operations, including discuss surface water consumption. Mr. Anderson stated he was notified by the City of Houston that a reduction in peak flow demand must occur immediately. He stated that a smaller ground storage tank can not operate in the traditional fashion and expansion of the SWTF is recommended to combat possible operational issues in the future.

Mr. Barner stated a discussion with the City of Houston have taken place since August 2021. Extensive discussion ensued regarding possible solutions to the issue.

Mr. Anderson discussed long term fixes such as expanding the plant to get more ground storage facility on the site. He stated he recommends starting the process now and reviewed a copy estimate to perform the expansion.

McNeil and Everhart expressed their frustration with the lack of preparation. Mr. Wilson stated that the City of Houston overissued their capacity and are cutting back and enforcing their contracts.

4. Approve the minutes of the meeting on February 9, 2022. Minutes of the regular meeting of February 9, 2022 were previously distributed to the Board and were presented for consideration and approval. 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 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 9 tons per week over four service recycling days in February.

Director Everhart inquired about any staffing concerns. Mr. Singleton reported there were no issues at this time.

President McNeil inquired about properly bagging trash and informing residents. Mr. Singleton stated he will create a flyer to send to residents.

6. 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 meeting with Harris County Precinct 1 to discuss the Sierra Ranch detention pond. He also reviewed various drainage projects.

Mr. Syzek stated that Harris County Flood Control District has inquired about hosting community engagement meetings.

Mr. Syzek discussed signage at the Resilience Trail. He showed various design examples. Discussion ensued. Mr. Syzek stated to design and create the signs will cost $975 each and $400 each to install. He suggested at minimum three signs. Mr. Syzek stated he will work with Director Woods and Rettig regarding finalization of the sign designs.

Mr. Syzek discussed including a monument plaque at the Resilience Trail. He stated that embedding in stone will cost $2,000 to $3,000. He stated he will provide more information at next month’s meeting.

Mr. Syzek reported on an abandoned home that is beyond repair within the District. He stated Harris County may need to get involved.

Mr. Syzek provided an update on the monthly contractor meeting.

7. 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 February Security Report, a copy of which is attached hereto as Exhibit “D”. He reported on various activity that took place throughout the District.

Director Rettig inquired how the District’s crime rate compares to others. Captain Ganey reported the District is seeing a reduction in crime rate.

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 February, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 93.41% of the District’s 2021 taxes have been collected as of February 28, 2022.

Ms. Yanez presented 15 checks and 2 wires to the Board for review and approval.

Ms. Yanez reviewed the delinquent tax role and the report from the delinquent tax attorney, a copy of which is attached hereto as Exhibit “F.” She stated there is no action needed at this time.

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. Authorize delinquent tax attorney to enforce the collection of delinquent taxes pursuant to contract. There was no action needed at this time.

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 “G.”

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 September 1, 2022.

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

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

Ms. Bailey reviewed the budget comparison through February.

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.

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 “H.”

Mr. Maas reported Parkway currently has 2440 active connections.

Mr. Maas reviewed the bill and collections report for January and February with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 92.2% 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 the TCEQ inspection has been completed and a list of various repair items was addressed.

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 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 “I.”

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. 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 payment of Pay Estimate No. 1.

Mr. Bishop reported on the Lift station 2 project and recommends payment of pay estimate no. 7 in the amount of $153,884.56 Upon motion by Director Everhart, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize pay estimate no. 7.

Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.

Mr. Bishop stated he received the metes and bound description for new site for Global New Millennium and a deed and easement language will be drafted.

Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating he received the final estimate of construction costs and recommends advertising the project.

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 authorize advertisement of the  project.

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 reported on the repurposing of the generator for the administration building.

Mr. Bishop stated other bids were received for electrical modifications but were higher that NTS. HE stated a notice to proceed was issued to NTS.

Mr. Bishop reported on the Bond Application Report no. 17 stating there is no update at this time.

Mr. Bishop stated that he received the GM Services report and there is an uptick in sand production. He stated that the sand production has more than doubled since last February. Mr. Bishop stated that the leaking of sand could cause issues with the water well. He stated he will continue to monitor the situation.

Mr. Bishop reported on Joint Facilities with Greenwood Utility District.

Mr. Bishop reported additional information on the 16 inch water line along Tidwell Road.

He stated that what was designed and approved by the City was constructed and afterwards was told to build differently. Mr. Bishop stated that what was originally approved is correct and what is suggested now is incorrect. He stated he does not recommend the District should rebuild or pay for it.

Upon motion by Director Everhart, seconded by Director Rettig, 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 “J”.

Reviewed photographs of the various ponds throughout the District.

14. Adopt Order Declaring Unopposed Candidates Elected to Office. Mr. Wilson presented and reviewed the Order, a copy of which is attached hereto as Exhibit “K.”

Upon motion by Director Everhart, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to adopt the order.

15. Building Superintendent’s Report. Director Rettig stated the computer and printer are outdated at the District admin building. 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 Director Rettig to purchase a computer and printer for the District admin building at a cost not to exceed $1,500.

16. Authorize filing on Comptroller database under SB625. Mr. Wilson stated this is an annual filing requirement and will be completed on behalf of the District.

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 filing.

Mr. Wilson discussed the potential for a walking trail around Sierra Ranch detention pond. He stated that Stormwater Solutions will bring a proposal for maintenance of the area on a monthly and annual basis and present at next month’s 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 Rettig, 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 9:11 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 Rettig, 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 9:33 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.

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 April 13, 2021.

/s/ Brenda McNeil
President, Board of Directors

ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors

(DISTRICT SEAL)