Meeting Minutes 2022-07-13

MINUTES OF JOINT FACILITIES MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
July 13, 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 July 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; Mr. Drew Alford 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. 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. Jamal Singleton of Direct Waste Solutions; Ms. Stephanie Villanueva of Harris County Precinct 1; and Mr. Cody Pogue, District Resident.

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 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. There were no public comments.

3. Approve the minutes of the meeting on June 8, 2022 and June 29, 2022. Minutes of distributed to the Board and were presented for consideration and approval. 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 approve the minutes.

4. Discuss and appoint new Board of Director for the District. Mr. Wilson discussed the vacant position on the Board stating that Mr. Pogue has expressed interest. Mr. Pogue introduced himself to the Board and provided background information on his time within the District.

(a) Statement of Oath and Qualification of Director. Mr. Wilson stated that Mr. Pogue has received a new Director packet which contains an Oath of Office and Statement of Officer.

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 appoint Mr. Pogue as a Director to the District.

Director Rettig joined the meeting at this time.

(b) Discuss Director slate and take necessary action. Mr. Wilson recommended leaving the slate as is with appointment Mr. Pogue as Assistant Secretary.

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 appoint Mr. Pogue as Assistant Secretary and leave the remaining Director slate as is.

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 2.98 tons per week over four service recycling days in June.

Director Rettig inquired about trash pick up at the District admin building. Mr. Singleton stated he will pick up on Saturday.

Mr. Singleton stated that trash has increased due to summer months and children being at home from school. He stated the recycling has been held steady.

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 stated that the Van Hut Bridge is now open. Ms. Villanueva stated there is no update at this time regarding a ribbon cutting ceremony.

Mr. Syzek provided information related to the Resilience Trail Signage. He stated that a sign is potentially obstructing the vision of a pedestrian sign. Ms. Villanueva stated she will research the issue and report back. Mr. Syzek stated the stone for the monument is in place at the trail and the mounting should be completed by next week.

Mr. Syzek reported on the North East Exploration Committee and reviewed a projected trail starting at Sunrise Pines.

Mr. Syzek reported on the site meeting that took place with Precinct 1.

Mr. Syzek reviewed pictures from the construction taking place regarding the Global New Millennium Sewer Line Extension.

Mr. Syzek presented and reviewed the Harris-Galveston Subsidence District Interlocal Agreement. He stated the District is being asked to sponsor 160 students in the amount of $6,080 to earn 13,440,000 gallons in ground water credit. 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 Interlocal Agreement with Harris Galveston Subsidence District.

Mr. Syzek reviewed the weather patterns over Texas. He stated that the City of Houston has entered State 1 of their drought contingency plan for water conservation measures.

Mr. Syzek stated the Sahara dust is heading towards the gulf which blocks storm creation.

Mr. Syzek reported on the monthly wastewater treatment plant meeting and plant inspection.

Mr. Syzek reported on a shooting that occurred near Stonefield Trail. He stated he does not have any further update at this time.

(i) Consider acceptance of the Harris-Galveston Subsidence District water conservation interlocal agreement for 2022 through 2023 school year, and take any necessary action. This item was discussed and approved during the General Manager’s report.

7. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. This item was deferred due to Captain Ganey not being on the call.

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 June, a copy of which is attached as Exhibit “D.” Ms. Yanez reported that 96.84% of the District’s 2021 taxes have been collected as of June 30, 2022.

Ms. Yanez presented 6 checks and 2 wires to the Board for review and approval.

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 approve the Tax Assessor and Collector’s Report.

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 “E.”

Ms. Bailey reviewed the various fund balances. She stated the PNC account will be closed out.

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 June with the Board.

Ms. Bailey reviewed budget information and the budget comparison through June.

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 Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the bookkeeper’s report.

Ms. Bailey discussed setting up Director per diem for Mr. Pogue.

10. 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 “F.”

Mr. Maas reported Parkway currently has 2440 active connections.

Mr. Maas reviewed the bill and collections report for May and June with the Board.

Mr. Maas reported that as of today the District has used 30 million gallons of water in the Harris-Galveston County Subsidence District Permit.

Mr. Maas reviewed the production and sales report and stated the District has 92.6% accountability. He stated that Greenwood UD had a main break during this time.

Mr. Maas reviewed historical data over a 4 month average.

Mr. Maas stated there were no violations at the wastewater treatment plant.

Mr. Maas stated that the 16 inch water line has been completed and hopefully will increase the amount of water to be taken from the City of Houston. He stated this would decrease the well run times.

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.

11. 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 “G.”

Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project stating the contractor is planning to remobilize this weekend and that will be the last remaining work to complete.

Mr. Bishop reported on the Lift station 2 project stating the auto transfer switch was struck by lightning. He stated it is operable, but in the event of a power outage, it will need to be switched manually. Mr. Bishop stated the total cost to replace would be around $10,000 for it is not covered under warranty. He stated the operator is working with supplier to obtain the switch.

Mr. Bishop recommended payment of pay estimate no. 11 and change order no. 2 which was prepared to adjust the final quantities for actual work performed on the project. 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 change order no. 2 and payment of the final pay estimate.

Mr. Bishop reported on the production of sand at the District’s water well stating the production has stabilized. He said he has prepared the rework bid package and reviewed a projected timeline of events for 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 advertising and bid for project.

Mr. Bishop provided an update regarding site plans for development from Global New Millennium.

Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating the project is proceeding with excavation and pipe installation.

Mr. Bishop reported on the Lift Station No. 2 generator stating a District is interested in purchasing and he will present an offer at the August meeting.

Mr. Bishop stated that NTS is ready to make the connection switch at the generator at the District administration building.

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

Mr. Bishop stated a construction meeting regarding the surface water transfer facility stating there is still a delay in receiving parts for the motor control center which is delaying the completion of the project. He presented pay estimates no. 8 in the total amount of $177,750.00, and recommend payment. 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 payment of pay estimate no. 8.

Mr. Bishop reported on the 16 inch water line along Tidwell Road stating Reddico has completed the connection and are waiting on the City of Houston to flush the line.

Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stated progress is being made and he recommends payment of pay estimate no. 14 in the total amount of $915,165.17. 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. 14.

Upon motion by Director Rettig, seconded by Director Pogue, after full discussion and the question being put to the Board, the Board voted unanimously to accept the engineer’s report.

12. 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 “H”.

Reviewed photographs of the various ponds throughout the District.

Ms. Sears presented and reviewed a proposal for poly foam injection of a sinkhole at the Sunrise Pine Detention Pond, a copy of which is attached hereto as Exhibit “I.” Discussion ensued.

Upon motion by Director Everhart, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the proposal in the amount of $4,740.

13. Building Superintendent’s Report. Director Rettig stated Comcast has provided new technology equipment at the admin building and he is still working to update the building for virtual capabilities.

14. 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 Woods, after full discussion and the question being put to the Board, the Board voted unanimously to enter into Executive Session at 7:55 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.

14. Convene in public session. Upon motion by Director Rettig, seconded by Director Pogue, after full discussion and the question being put to the Board, the Board voted unanimously to enter into public session at 8:13 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.

15 Motions. 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 engage a broker and move forward with the potential purchase of the church property and begin the necessary phases for the ESA.

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 August 10, 2022.

/s/ Brenda McNeil
President, Board of Directors

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

(DISTRICT SEAL)