Meeting Minutes 2022-04-13

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 April 13, 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 Quiddity, 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”), operator 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; 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 Woods, seconded by Director Rettig, 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. Approve the minutes of the meeting on March 9, 2022. Minutes of the regular meeting of March 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.

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 9.9 tons per week over four service recycling days in March.

5. 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 community engagement meeting for Lower Greens Bayou Project.

Mr. Syzek reported on subdivision drainage improvement projects.

Mr. Syzek reported on groundwater credits availability stating there are early impacts from a dry Spring.

Mr. Syzek reviewed a proposal of costs from Baker Signs for the trail signage. Discussion ensued. 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 proceed with payment to Baker Signs.

Mr. Syzek inquired about a monument plaque at the entrance of the trail. Discussion ensued regarding the message on the plaque. Director Rettig expressed his concern regarding potential vandalism.

Mr. Syzek reported on the various site inspection tours.

Mr. Syzek reported on the Harris County Van Hut Bridge construction status.

Mr. Syzek reported that Starbucks is being built at Tidwell Lakes.

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

Captain Ganey reported there is a rise in catalytic converter thefts.

7. 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 95.31% of the District’s 2021 taxes have been collected as of March 31, 2022.

Ms. Yanez presented 13 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.

8. Review and approve amendment to Tax A/C Contract. Ms. Yanez presented and reviewed the fifth amendment to the to the Tax Assessor and Collector contract, a copy of which is attached hereto as Exhibit “F.” She stated this amendment goes in to effect May 1, 2022.

Ms. Yanez reviewed the changes in various fees.

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 amendment to the Tax Assessor’s Contract.

9. 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 March with the Board.

Ms. Bailey reviewed the budget comparison through March.

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

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 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 February and March 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 the ground storage tank was taken offline due to a leak. He stated as of today it has been repaired.

Mr. Maas reported that a developer was previously hooked up to a fire hydrant on the District line for pave work on the Beltway. He stated that a temporary meter has now been set up and the developer will be back billed form the previously used water.

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 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 and recommend payment in the amount of $55,263.60 for pay estimate no. 2. He stated the construction contract included approximately $95,000 for pipe replacement and unforeseen work items for segments of sanitary sewer pipe. Mr. Bishop stated it was determined that rehabilitation was not necessary and the total contract amount will be reduced to remove these items of work. Mr. Bishop stated the completion date of April 30th will not be met and a letter was issued to the contractor advising the requirement of the contract and requested an updated schedule of completion. 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. 2.

Mr. Bishop reported on the Lift station 2 project stating it is ahead of schedule and shows completion for May 9th. He recommended payment of pay estimate no. 8. 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. 8.

Mr. Bishop stated the District’s water well is producing a high level of sand indicating an issue in the well and it is continuing to be monitored. He stated he recommends keeping the well in service throughout the summer months with plans to take the well offline beginning in October for investigation and re-work. Mr. Bishop reviewed a cost estimate and scope memo for the project. He stated his plan is to prepare the necessary bid package, advertise for bids, and execute contracts to issue a Notice to Proceed at the end of September with direction to take the well offline in October.

Discussion ensued regarding funding of the project. 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 preparation for the water well rework project.

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

Mr. Bishop stated he is waiting to receive the executed deed and easement from Global New Millennium.

Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating he received bids and recommends awarding bid in the amount of $132,398.80 to Green Dream International, LLC. 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 award construction contract to Green Dream International.

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

Mr. Bishop stated NTS has mobilized and is waiting on electrical items to be received.

Mr. Bishop reported on Parkway Forest Subdivision Drainage Improvements stating he received design plans from Harris County to review for conflicts of the District’s existing water and sanitary sewer facilities. He stated he will provide comments this month and the plans align with Harris County Flood Control District drainage study to provide drainage along Tidwell Road, upsize underground storm sewer conveyance facilities, and improve channel P122-00-00.

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

Mr. Bishop reported on the surface water transfer facility expansion and recommends payment of pay estimate no. 5. 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 reported on the surface water transfer facility expansion stating there has been an increase in the preliminary cost estimate. He stated there is potential to include in the Bond Application Report. Discussion ensued. Mr. Wilson reported the contract states meters will be on both ends. President McNeil expressed her concerns with meter reading between the two districts. 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 design in the amount of $1,400,000 contingent upon negotiations.

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

He stated that the City will take care of their own water valve and the project is soon to be finished. He stated all issues are resolved at this time.

Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stated progress is being made and he recommends payment of pay estimate no. 11. 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. 11.

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 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.

Ms. Sears stated that to complete annual maintenance at the Sierra Ranch Detention Pond would cost the District around $18,000. Discussion ensued.

14. Review and Consider Storm Water Solutions price increase and take any necessary action. Ms. Sears presented and reviewed annual maintenance cost increases, a copy of which can be attached hereto as Exhibit “K.” She stated the total annual increase is $11,771.

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 price increase from Storm Water Solution.

15. Review Water Conservation Plan and Drought Contingency Plan. Mr. Wilson stated this agenda item is to confirm preparation for the summer months. Mr. Maas stated there are no changes to the plans at this time.

16. Building Superintendent’s Report. Director Rettig spoke on the need to update the security system at the admin building.

17. Approve Audit for fiscal year ended December 31, 2021. Ms. Day presented and reviewed a copy of the draft audit, a copy of which is attached hereto as Exhibit “L.” She stated there are no issues to be address and an unmodified opinion has been given.

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 audit.

18. Approve Continuing Disclosure Filing. Mr. Wilson stated this report is filed through the MSRB to inform bond holders of the financial stability of the District. 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 filing.

19. 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 8:58 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.

20. Convene in public session. Upon motion by Director Rettig, seconded by Director Everahart, after full discussion and the question being put to the Board, the Board voted unanimously to enter into public session at 9:21 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.

21. 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 offer Tenaris the amount discussed in executive session.

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 May 11, 2021.

/s/ Brenda McNeil
President, Board of Directors

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

(DISTRICT SEAL)