Meeting Minutes 2021-08-11

PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING

AUGUST 11, 2021

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 August 11, 2021, at 12843 Tidwell Road, Houston, Texas 77044 and via videoconference and teleconference pursuant to Section 551.125, Texas Gov’t Code as modified by the temporary suspension of certain provisions thereof pursuant to guidelines issued by the Texas Attorney General and approved by the Governor for use during the COVID-19 statewide disaster. A roll call was taken of the persons present:

Brenda McNeil, President
Alphonso (“Al”) Rettig, Vice President
Jennifer Balderas, Secretary
Ron Everhart, Assistant Secretary
Gloria Woods, Director

All members of the Board for Parkway Utility District (“PUD”) were present, except Director Woods, 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 Jones|Carter (“JC”), engineers for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Ms. Karen Sears of Storm Water Solutions; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Mr. Jamal Singleton with Direct Waste Solutions; Captain Ganey of Harris County Precinct 3 Constable’s Office; and Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District.

Pursuant to Section 551.054, Texas Gov’t Code, as modified by the temporary suspension of certain provisions thereof, notice of the meeting was posted on the District’s website within the time limits prescribed by law. A certificate of such posting is attached hereto as Exhibit A. The agenda packet was posted on the website as items became available incompliance with the guidelines issued by the Texas Attorney General.

Call to Order. Mr. Wilson called the meeting to order. He noted that the meeting was being held by teleconference in accordance with federal, state and county directives to slow the spread of COVID-19 by avoiding meetings that bring people together. He 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. He asked each speaker to identify themselves before speaking. He then proceeded with the meeting business:

1. Public Comments. There were no public comments.

2. Minutes of previous meeting(s). Minutes of the special meeting of July 8, 2021, and the regular meeting of July 14, 2021 were previously distributed to the Board and were presented for consideration and approval. 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 minutes.

3. 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 11.83 tons which equates to 2.3 tons per week over five service recycling days in July.

Mr. Singleton reminded the Board at the last meeting they had agreed upon a one year extension to the contract.

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 contract with Direct Waste Solutions for August 1, 2021 through July 31, 2022.

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 provided an update on construction throughout the District and provided pictures in his report for reference.

Mr. Syzek reported on the Wastewater Treatment Plant monthly meeting stating there has been steady progress with construction.

Mr. Syzek stated the detention pond has been reseeded and it has been growing well since the freeze.

Mr. Syzek stated the fire extinguishers are due for inspection.

Mr. Syzek reported on office landscaping upkeep.

Mr. Syzek reported that five entry way signs have been replaced along the trail.

Mr. Syzek reported on a possible walking trail partnership with Sunrise Pines HOA.

President McNeil stated at next month’s meeting she will invite the manager to discuss how to proceed moving forward.

Mr. Syzek reported on the Apache Corporation Tree Grant Program.

Mr. Syzek reported on unauthorized ATV activity throughout the District.

Mr. Syzek reported on a car break in at the administration building. Captain Ganey reported that the vehicle has been used in three other thefts around the District. He stated he is currently working on identifying the individual. President McNeil inquired about the necessity for the District to put up signs about securing your belongings and the area being under surveillance. Captain Ganey stated he will create signs and present at next month’s meeting.

Mr. Syzek reported on the Water Wise Interlocal Agreement stating the cost to sponsor 160 students is $6,080 and the District receives credit for 13,440,000 gallons. 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 proceed with the water wise program.

5. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey reviewed the Security report for the Month of July 2021 which was previously distributed, a copy of which is attached as Exhibit “D.” Captain Ganey reported on various activity throughout the month.

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 June, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 97.78% of the District’s 2020 taxes have been collected as of July 31, 2021.

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

Ms. Yanez reviewed the delinquent tax role.

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 Tax Assessor and Collector’s Report and move the three delinquent accounts to the uncollectible role.

7. 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 reported on capital projects fund disbursements.

Ms. Bailey reported that the next debt service payment is September 1, 2021.

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

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

Ms. Bailey reviewed the budget comparison through July. She stated there is a surplus of $740,000.00.

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

Ms. Bailey stated that the District needs an updated Depository Pledge Agreement with

Central Bank for sweep accounts and all other checking accounts. Mr. Wilson stated this will be on next month’s agenda.

8. Review Investment Policy and accept disclosure statements from Bookkeeper. Mr. Wilson presented and reviewed the Investment Policy, a copy of which is attached hereto as Exhibit “G.” He stated there are no recommended changes to the policy this year and the qualified brokers list has been updated. 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 resolution reviewing the investment policy and updated list of qualified brokers.

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 “H.”

Mr. Maas reported Parkway currently has 2439 active connections.

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

Mr. Maas reviewed the production and sales report and stated the District has 93.92% accountability.

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

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

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 accept the Operator’s Report, to proceed with termination and fees of delinquent accounts.

10. 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 Sanitary Sewer Rehabilitation Project stating a preconstruction meeting was held and a notice to proceed with the contractor was issued.

Mr. Bishop reported on the Lift station 2 project stating two preconstruction meetings were held. He said that limits of construction have been marked and substantial completion is dated for May 7th.

Mr. Bishop reported on the Bond Application Report no. 17 stating he is proceeding with the report and in the next month there will be further updated cost summary.

Mr. Bishop reported he is currently preparing the emergency response plan for the America’s Water Infrastructure Act.

Mr. Bishop reported on detention facilities that the District is responsible for maintenance. He reviewed a map outlining the detention facilities at Stonefield Manor. He stated there is growth between the chain link fence and the resident fences. Mr. Wilson stated it may be beneficial to have Stormwater Solutions review and present a price point to control the vegetation and get on a maintenance schedule. Ms. Sears stated that the herbicide treatment has been done and improvements will be seen soon.

Mr. Bishop reported on Sunrise Pond vegetation stating trees are growing between fences. Mr. Wilson recommends Stormwater Solutions reach out to the residents to inform them on the potential construction should the trees be removed. Ms. Sear stated she can send the notification to residents via a letter and in person.

Mr. Bishop reported on the surface water transfer facility stating the pre-construction meeting is scheduled for August 12th.

Mr. Bishop reported on the 16 inch surface water line on Tidwell road project. He stated there is a permit requirement because this will be a city owned and maintained line. Mr. Bishop stated the bonding company will issue a writer that names the City of Houston as a party to the agreement and there is no cost associated with this. 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 add the City of Houston the agreement and bonds as necessary and to authorize pay estimate no. 1 in the amount of the District share of $38,144.38.

Mr. Bishop reported on the Wastewater Treatment Plant Expansion project and recommends payment of pay estimate No. 3. 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. 3 in the amount of the Districts share of $110,330.44.

Mr. Bishop reported on the wastewater treatment plant outfall depression stating the geotechnical consultant has completed the investigation and report. He said that he needs to get a current topographic survey to analyze the data in the best long term solution. Mr. Bishop stated the survey work takes around 30-45 days to complete. 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 proceed with a topographic survey in the amount of $4,775.00.

Mr. Wilson stated the Board would potentially like to build a new, multipurpose, administration building on the east side of the beltway and to include in the bond issue. Mr. Bishop stated he does not see this as possible for the land will be a large portion of the cost and the total project would be well over $500,000.

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 Engineer’s Report.

11. Report from Storm Water Solutions, and take any necessary action. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “J.” Ms. Sears reported on maintenance in the detention ponds.

Ms. Sears stated that in the future work will need to be done on the pilot channels.

12. Discuss appointing a new Director and take any necessary action. Mr. Wilson reported that Director Balderas has resigned and the Board has 60 days to replace the Director. He stated that at next month’s meeting election of officers and discussion of candidates will take place.

13. Building Superintendent’s Report. Mr. Wilson discussed the possibility of meeting in person after September 1, 2021. The Board decided to meet virtually in September and discuss future meeting locations.

Discussion ensued regarding working with the website administrator to make the building capable for video and teleconferences.

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 September 8, 2021.

President, Board of Directors

ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)