Meeting Minutes 2023-02-08

MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
February 8, 2023

THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §

Brenda McNeil, President
Ron Everhart, Secretary
Cody Pogue, Assistant Secretary
Shiwann Simpson, Assistant Secretary
Gloria Woods, Director

All Directors, 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; Captain Ganey and Sgt. Hodge of Harris County Precinct 3 Constable’s Office; Mr. Jamal Singleton of Direct Waste Solutions; and Mr. Eric Badertscher with Off Cinco, website administrator for the District.

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 (2 minutes each). There were no public comments at this time.

2. Qualify Director. Mr. Graham stated that all necessary paperwork has been received and Ms. Simpson is qualified to be an Assistant Director on the Board.

3. Approve the minutes of the meeting on January 11, 2023. Minutes of the regular meeting of January 11, 2023 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Simpson, seconded by Director Everhart, 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.” He stated there were four recycling days averaging 2.5 tons per week. Mr. Singleton discussed the recycling agreement and pick up schedule in the District. Discussion ensued.

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 various maintenance needed at the District Administration Building. Reported on District Office Maintenance needed. He stated he will present quotes for work at next month’s meeting.

Mr. Syzek reported on Resilience Trail maintenance stating granite restoration is needed at this time if the Board decides not to proceed with a concrete conversion. Ms. Sears stated she will provide a quote at next month’s meeting.

Mr. Syzek reported on the recent tornadic activity stating the District was not impacted.

Mr. Syzek reported that a child care center will be occupying the vacant bank building at the entrance of Sierra Ranch.

Mr. Syzek reported on water accountability and billing accuracy stating the importance of testing large meters for accuracy. Mr. Maas stated meters are tested in July.

Mr. Syzek provided an update on the Wastewater Treatment Plant.

Mr. Syzek discussed scheduling a Director District tour.

6. 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 “D.” Ms. Yanez reported that 62.31% of the District’s 2022 taxes have been collected as of January 31, 2023.

Ms. Yanez presented 11 checks and 2 wires to the Board for review and approval. She stated check no. 2410 was voided due to a misprint.

Ms. Yanez reviewed the delinquent tax role.

Upon motion by Director Woods, seconded by Director Pogue, 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.

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 January Security Report, a copy of which is attached hereto as Exhibit “E.” Captain Ganey noted there has been a spike in burglary of motor vehicles.

Captain Ganey spoke on the traffic issue at the school that has been brought to his attention. He stated he has done his due diligence to ensure safety of the children, but does not see an issue taking place. President McNeil concurred stating she has driven the area numerous times and has not seen a traffic issue or safety concern. Discussion ensued.

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 “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, 2023.

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

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

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

Ms. Bailey reported that the budget was amended based on the numbers received for water and sewer revenue from Greenwood UD.

At this time, Mr. Graham discussed joint facility meetings with Greenwood UD. President McNeil stated the meetings should be occurring quarterly and the two Districts have not met in months. Mr. Graham stated he will discuss with Greenwood UD’s attorney and set up quarterly meetings.

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

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 “G.”

Mr. Maas reported Parkway currently has 2440 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 90.88% accountability.

Mr. Maas reported on the Harris-Galveston County Subsidence District stating 9.6 million gallons remain as of January 31st and the permit will renew at the end of February. as of 31st. permit will renew at the end of the month.

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 there are 41 accounts he is recommending to send to collections. He stated these accounts have cancelled their accounts but still owe the District money.

Mr. Maas recommended the District decrease the threshold amount for disconnects. Discussion ensued.

Upon motion by Director Pogue, seconded by Director Simpson, 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, to send accounts over $75 to collections, and to proceed with disconnect on accounts who owe $50 or are 60 days delinquent.

10. 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 “H.”

Mr. Bishop reported on Water Well No. 1 re-work stating he is continuing to monitor and the readings are holding level.

Mr. Bishop reported on Sunrise Plastic Enterprise stating he is awaiting submittal of documents to finalize the annexation application.

Mr. Bishop reported on Global New Millennium Development stating plans for the overall site have not been received, but should be ready for review by the end of the first quarter.

Mr. Bishop reported on the Tenaris Coiled Tubes Tract stating that the topographic and land title survey has been completed and provided to all necessary parties. He stated he is awaiting further instruction from the legal team at this time.

Mr. Bishop reported on Bond Application Report No. 17 and Surplus Funds Application stating approvals have been received and more information will be provided by the District’s Financial Advisor at next month’s meeting. Upon motion by Director Woods, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the Financial Advisor to proceed with working with rating agencies and the bond insurance company for the upcoming bond issuance.

Mr. Bishop reported on Harris County Flood Control Drainage District Improvement Projects stating there is a conflict with the water line and force main crossing Tidwell Road. He stated the County’s revised plans call for it to be relocated at the expense of the District. Mr. Bishop stated there has been no communication regarding this update. President McNeil expressed her frustrations with the lack of communication and follow through from the County and Precinct No. 1. She is hesitant about funding the relocation of District facilities for the Drainage Improvement Projects. Extensive discussion ensued regarding the risk of declining to fund. Mr. Maas reported that it is standard for the District to be responsible for relocating lines if you build on the Harris County Road right of way. Upon motion by Director McNeil, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the attorney and engineer to respond to the county.

Mr. Bishop reported on the surface water transfer facility and recommends payment of pay estimate no. 15. Upon motion by Director Pogue, 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. 15.

Mr. Bishop reported on the surface water transfer facility expansion project stating Greenwood UD’s engineer is working to complete their design.

Mr. Bishop reported on the Wastewater Treatment Plant Expansion Project stating he recommends payment of pay estimate no. 21. Upon motion by Director Pogue, 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. 21.

Upon motion by Director Simpson, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.

11. 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”. Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.

Ms. Sears stated a resident’s fence is down at the Sunrise Pines detention pond due to work being done on the trees stump. She presented a proposal in the amount of $1,650 to repair the fence. Discussion ensued.

Ms. Sears presented a proposal to regrade the backslope swells in the amount of $6,300.

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 proposals and proceed with the fence repair and the regrading of the backslopes.

12. Renew District Insurance (ex: March 29, 2023). Mr. Graham presented and reviewed the insurance proposal, a copy of which is attached hereto as Exhibit “J.” He stated the increase in premium is due to an increase in property value within the District.

Upon motion by Director Pogue, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to renew the District’s insurance.

13. Indemnification of Directors. Mr. Graham presented and reviewed the Resolution Authorizing Indemnification of Directors, a copy of which is attached hereto as Exhibit “K.”

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 resolution.

14. Discuss Director Emails with website provider and take any necessary action. Mr. Badertscher discussed various email provider options for the Directors and explained what the increase in pricing includes. He stated the Board currently uses GoDaddy which is phasing out and will soon merge with Microsoft. Discussion ensued.

Upon motion by Director Pogue, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to continue to use GoDaddy as the Board’s email provider.

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 March 8, 2023.

President, Board of Directors

ATTEST:
Secretary, Board of Directors

(DISTRICT SEAL)