PARKWAY UTILITY DISTRICT MINUTES OF BOARD SPECIAL MEETING
JUNE 17, 2020
THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §
The Board of Directors (the “PUD Board”) of Parkway Utility District (the “District”) met in a special session jointly with Greenwood Municipal Utility District Board of Directors (“GUD Board”) (collectively the “Boards”) at 6:30p.m. on June 17, 2020, via 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 were present. All members of the Board for Greenwood Utility District (“GUD”) were present, thus constituting a quorum. Also attending all or parts of the joint meeting were Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper”), bookkeeper for the District; Mr. Bradley Jenkins and Ms. Katherine Vu of Jones|Carter (“Engineer” or “J|C”), engineers for the District; Mr. Calvin Browne of Municipal District Services (“Operator” or “MDS”), operator for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District, Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Mr. Bill Blitch of Blitch Associates, Inc., (“Advisor”) financial advisor for GUD, Ms. Dietra Bonds of Municipal Accounts & Consulting L.P.; (“MAC”), bookkeeper for GUD; Ms. Brittni Silvia of Assessments of the Southwest “ASV'”) tax assessor/collector for GUD; Mr. Johnny Bellamy of Municipal District Services ( “MDS”), operator for GUD; Mr. Jim Ainsworth and Mr. Ronald Anderson III of A&S Engineers, Inc. (“A&S”), engineer for GUD; Lieutenant Terry Ganey of Harris County Constable’s Office, Precinct No. 3 (the “Constable”); Mr. Elliot M. Barner, of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorney for GUD, and Ms. Melanie Greer, member of the public.
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. Barner 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. Barner 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. Ms. Greer commented on a traffic related issue located near her home. She asked for someone to be in contact with her after the meeting so that she can offer suggestions.
2. Discuss Joint Wastewater Treatment Facility and take necessary action. Mr. Barner recognized Mr. Anderson, who presented the operations report for the Joint Waste Water Treatment Facility.
Mr. Anderson reported on the outfall repair. He noted that due to COVID-19, a meeting has not been set up with J|C and flood control to discuss further repairs of the outfall area.
Mr. Anderson reported on the design of the treatment plant. The plan has been resubmitted to Harris County for final approval of clearing and grubbing. The project came in at $716,000.00. Upon review of the bid, one line item regarding fencing was incorrect by $40,000.00; it should read $50,000.00. Line items 68-74 are considered extra work items totaling around $80,000.00. With the inclusion of the extra items, Texcon remains the low bidder. Mr. Anderson recommended proceeding with Texcon as the contractor in starting the bonds and insurance process. He also recommended allowing Texcon to do a change order to recoup the $40,000.00 instead of adding it as an amendment to the bid.
Mr. Wilson stated that the “PUD Board” has already reviewed the recommendations and made a determination to proceed with the bid. Mr. Barner called for a motion by the GUD Board to authorize the bid pursuant to the engineer’s recommendation. Upon motion by Director Primeaux, seconded by Director O’Neil, after a full discussion and the question being put to the Board, the Board voted unanimously to proceed with the bid.
Mr. Anderson reported on the hatch flow meters. He said the meters are on their third calibration and with each calibration the numbers have gotten worse. The numbers should read in a 5% range. The first calibration was 7%, the second was 10%, and the third read was 14%. Mr. Anderson recommended not paying the invoicing until the flow meters are accurately calibrated. Mr. Anderson also recommended writing a letter to the manufacturer explaining how the boards will not pay the invoices due to the company not meeting the contract that all parties have signed.
Director Guerra inquired whether the company would be charging extra for the multiple calibrations. Mr. Anderson informed the boards that all calibrations are in the original contract amount.
Mr. Jenkins recommended giving a time frame to fix the issue and then to terminate the contract if not fixed.
Director McNeil inquired about the cost of the installation of the meters. Mr. Anderson reported that neither boards have paid an invoice to date.
Extensive discussion ensued regarding the credibility of the company and the contract that is currently set in place. Mr. Wilson suggested reviewing the contract and writing a letter requesting a deadline to correct their wrong before terminating the contract.
Mr. Browne and Mr. Bellamy reported on the overall operations of the facility.
Mr. Browne reported on the flow being transferred from Greenwood Waste Water Treatment Plant on a monthly basis. He said the flow is currently helping with the capacity.
Mr. Wilson led a discussion about access for Mr. Syzek to the Regional Waste Water Treatment facility. Mr. Wilson noted that Greenwood does not have an issue with Mr. Syzek having access, Greenwood wants a policy in place where there is notice of Mr. Syzek being on the site. Mr. Wilson noted that initially a 24-hour window was set between MDS and Mr. Syzek, but Mr. Browne is okay with reducing the notice. Mr. Wilson also offered the suggestion of setting up specific times during the week where Mr. Syzek can access the plant to complete his report.
Director Everhart expressed his frustrations with Mr. Syzek giving notice to access the plant. He suggested giving a 4-hour notice. Director Rettig also expressed his frustration and believes Mr. Syzek should not be required to give any notice to access the plant.
Director Primeaux said GUD is the manager of the property and they would like to have notice of when Mr. Syzek is on the property for liability purposes.
Mr. Barner discussed that no one is denying anyone access to the plant. Mr. Barner said that boards rely on the operator to develop policies and procedures for access to the plant and has no issue with shortening the time frame of notice. Mr. Barner said these policies and procedure apply to anyone who accesses the plant, not just Mr. Syzek.
Discussion ensued amongst the PUD Board regarding Mr. Syzek’s credentials.
Mr. Syzek commented on how he manages three other MUDs with MDS. He said one MUD is in similar joint facility like Parkway and Greenwood. Mr. Syzek has full and free access to that plant.
Extensive discussion ensued amongst both boards regarding the difference of opinion in allowing Mr. Syzek access to the plant. It was decided that Mr. Wilson and Mr. Barner will discuss outside of the meeting, a plan to present to the board for review at their next meeting. The plan will include policies and procedures for the plant regarding access. From there, there boards will come to a compromise.
3. Discuss Joint Surface Water Plant and take necessary action.
Mr. Anderson had no updates regarding the operation of the Joint Surface Water Plant.
Mr. Anderson reported on the transmission facility. He said he received Harris County comments and the comments are currently being reviewed for objections to the pond resize and reconfiguration.
Mr. Anderson reported on the surface water increase, road widening project, and temporary water lines. Mr. Anderson said the City of Houston will not proceed with getting approval of the 16 inch alignment until the county projects gets signed off. Mr. Anderson stated that the county project has been resubmitted for approval.
Mr. Anderson reported on the surface water increase through the line. He said the application has been submitted to the City of Houston. The City of Houston received the application and the cost is in their system to generate a formal approval letter.
Mr. Anderson reported on the Tidwell road improvements. Mr. Anderson reported there were few line take downs. Mr. Anderson said there are a few more tie ins and realignments along Tidwell happening in the next couple of months. He will share info as received.
Director McNeil inquired about low water pressure. Mr. Bellamy reported with more people staying home and it being the start of the summer, the pressure may lower, but adjustments are made as needed.
Mr. Jenkins reported that the Parkway water plant is placed on line and is distributing water from the plant. Mr. Jenkins said that adjustments to the altitude valve is scheduled next week in order to ensure correct usage of surface water from both districts.
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 July 8, 2020.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)