MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
December 14, 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 12843 Tidwell Road, Houston, Texas 77044 at 6:15 p.m. on November 9, 2022 and via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Ron Everhart, Secretary
Cody Pogue, Assistant Secretary
Gloria Woods, Director
All Directors, except Director Pogue, were presented in person, 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. Jeffery Bishop and Mr. Drew Alford 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; Ms. Karen Sears of Storm Water Solutions; Mr. Charles Graham, and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Glenda Benoit, Mr. Albert Benoit, Ms. Regina Pearrie, Mr. Craig Randall, residents of the District; Sgt. Landon McDonald 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. Graham 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. Public Comments. Ms. Benoit inquired about the vacant Director position and when the Board plans to fill it. President McNeil stated the Board is looking to fill the position at the first of the year.
Ms. Benoit inquired about any improvements planned for Parkway Forest. President McNeil stated that there are no improvement projects currently underway for any part of the District.
Mr. Benoit addressed the Board about children’s inability to cross the street safely due to traffic and lack of patrol. He also expressed his frustration towards the constables responses and response times towards issues. President McNeil stated she will discuss with Captain Ganey outside of the meeting.
Mr. Randall stated there is a traffic concern on Fern Forest Drive and would like constables to patrol the area more often. He also expressed his interest in becoming a Director.
2. Approve the minutes of the meeting on November 9, 2022. Minutes of the regular meeting of November 9, 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.
3. Report from Direct Waste Solutions. The Board reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “B.” President McNeil stated the amount of trash pickup remains steady but an increase is expected over the holidays.
4. 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 City of Houston water system failure and boil water notice. He stated the District was required to boil water due to receiving water from the City of Houston.
Mr. Syzek reported on the Sunrise Pines walking trail inspection. He stated the District is responsible for drainage and Storm Water Solutions is researching improvements towards areas of drainage concern.
Mr. Syzek reported on the Harris County Toll Road Authority tollways to trailways project stating he will reach out to see if there is potential for installing a trail around the detention pond adjacent to Sunrise Pines.
Mr. Syzek presented and reviewed a proposal from Yellowstone Landscaping, a copy of which is attached hereto as Exhibit “D.” He stated this company specializes in landscape projects and to maintain the trail surface and surrounding green spaces for Resilience Trail, the cost per year is $23,652. President McNeil expressed her concern with crushed granite as the trail surface and inquired about a concrete trail. Mr. Bishop provided a rough cost estimate, but recommended consulting a landscape architect. Discussion ensued.
Mr. Syzek reported on a Stonefield Liquor Store vandalism incident stating the owner has reached to the Harris County Sheriff’s department and is awaiting response at this time.
Mr. Syzek provided an update on the Wastewater Treatment Plant monthly inspection meeting.
Mr. Syzek reported the Starbucks is now open in the District.
Mr. Syzek provided an update regarding drought monitoring.
5. Review proposal from Yellowstone Landscape regarding maintenance of the trail surface and surrounding green spaces for Resilience Trail, and take any necessary action. This item was reviewed during the General Manager’s report and no action was taken.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Sgt. Landon McDonald presented and reviewed a copy of the November Security Report, a copy of which is attached hereto as Exhibit “E.” and reported on various activity that took place throughout the District. He stated he suspects an increase in crime due to the Holidays, but the constables will increase visibility.
Sgt. McDonald reported that thieves are targeting mailmen to retrieve their master key to open all mailboxes.
Sgt. McDonald stated he will conduct more research regarding the Stonefield Liquor vandalism incident and will see if criminal mischief charges can be issued.
Mr. Benoit inquired again about the traffic issue at the school and the safety of children walking home. President McNeil stated she will address with Captain Ganey outside of the meeting.
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 November a copy of which is attached as Exhibit “F.” Ms. Yanez reported that 2.98% of the District’s 2022 taxes have been collected as of November 30, 2022.
Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval. She stated check no. 2389 was a voided, misprinted check.
Ms. Yanez reviewed the delinquent tax role and the report from the delinquent tax attorney, a copy of which is attached hereto as Exhibit “G.” She provided an update on the status of delinquent accounts and stated after January 1st, delinquent accounts will be tagged and terminated.
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 Tax Assessor and Collector’s Report.
8. 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 “H.”
Ms. Bailey reviewed the various fund balances.
Ms. Bailey presented checks and deposit refunds for Board approval.
Ms. Bailey reported that check no. 1800 is to the TCEQ for the water system fee permit renewal.
Ms. Bailey reported that the next debt service payment is not due until March 2023.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for November with the Board.
Ms. Bailey reviewed budget information and the budget comparison through November. She also presented the draft budget stating she received all needed information and the budget shows a net revenue of $900,028.
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 and adopt the budget for fiscal year ending December 31, 2023.
9. 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 “I.”
Mr. Maas reported Parkway currently has 2440 active connections.
Mr. Maas reviewed the bill and collections report for October and November with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 92.75% 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 Greenwood UD water well failed and has been pulled. He said the well will be down for around three weeks and Parkway will need to take the lead during this time.
Mr. Maas stated he has reached out to the Harris Galveston Subsidence District notifying them of the issue and requested to amend the permit for an additional 10 million gallons. Discussion ensued.
Mr. Maas reviewed the findings from the fire hydrant survey. He stated that 12 hydrants require repairs. 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 repair of the fire hydrants.
Mr. Maas Reviewed a letter from a resident regarding fees associated with the payment options provided. A copy of the letter is attached hereto as Exhibit “J.” Mr. Maas reviewed in detail the various payment methods and fees associated with each method stating the processing company receives the funds from the fees, not the District nor the Operating company. Mr. Maas stated some of his Boards absorb the fees. President McNeil expressed her hesitation with absorbing the fee based on previous experiences. Discussion ensued.
Director Everhart stated that Monahan Elementary is interested in participating in the Water Wise Program.
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, and to proceed with termination and fees of delinquent accounts.
10. Amend Rate Order and Notice to Customers regarding billing and service during extreme weather emergency. Mr. Maas reported that State legislation has been updated regarding extreme weather emergencies. He stated residents must be notified of the update by January 31st and requests Board approval to send a letter with their bill.
Mr. Graham presented and reviewed an amendment to the rate order which discusses procedures related to an extreme weather emergency. A copy of the update is attached hereto as Exhibit “K.”
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 the operator to notify residents of the extreme weather emergency update and to approve the amended the rate order.
11. 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. 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 change order no. 1, authorize payment of pay estimate no. 5 and final, and to accept the project.
Mr. Bishop provided an update regarding the Global New Millennium lift station and force main project stating he has received plans and is expecting work to begin early next year.
Mr. Bishop reported on the Tenaris Coiled Tubes Tract stating he is coordinating with Stewart Title to schedule closing on the Tenaris Tract. He recommend the Board approve the purchase of the Tract and authorize Director McNeil to execute the necessary documents for acquisition. 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 final purchase of Tenaris Tract and authorize Director McNeil to sign as signatory.
Mr. Bishop recommend proceeding with a land title and topographic survey of the Tenaris tract. 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 a land title and topographic survey.
Mr. Bishop reported on Bond Application Report No. 17 and Surplus Funds Application stating it has been declared administratively complete and both have entered the technical review process.
Mr. Bishop reported on the surface water transfer facility and recommends payment of pay estimate no. 13. He stated the MCC will be delivered early January. 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 payment of pay estimate no. 13.
Mr. Bishop reported on the surface water transfer facility expansion project stating he is reviewing plans and will send minor comments.
Mr. Bishop reported on the Wastewater Treatment Plant Expansion Project stating the current estimated completion date is October 2023 and he recommends payment of pay estimate no. 19.
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 payment of pay estimate no. 19.
Mr. Bishop reported on the Wastewater Treatment Plant Outfall Depression stating he received the pricing and scope of work from CSA Construction and recommended the work be included as a change order to the current construction cost. 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.
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 Engineer’s Report.
12. Approval final transfer for purchasing of Tenaris tract and any related necessary action. This item was discussed during 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 “M”. Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed.
At this time, Ms. Simpson introduced herself to the Board and expressed her interest in becoming a Director.
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 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 8:46 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. Graham, and Ms. Koett.
15. Convene in public session. 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 public session at 8:51 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.
16. Motions. 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 reject the settlement
offer and authorize the attorney to send a response letter.
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 January 11, 2023.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)