PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
OCTOBER 14, 2020
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 October 14, 2020, 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 were present, except Director Balderas, 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. Katherine Vu and Mr. Bradley Jenkins 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; Lieutenant Terry Ganey of Harris County Precinct 3 Constable’s Office; Ms. Leslie Bacon and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators 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 comments from the public.
2. Public hearing on Tax Rate.The President opened discussion on the proposed tax rate for 2020.
There were no public comments so the President closed the hearing.
3. Adopt Order Setting Tax Rate and Levying Tax for 2020. Mr. Howell reviewed. Ms. Bacon presented and reviewed with the Board the Order Setting Tax Rate and Levying Tax for 2020, a copy of which is attached here to as Exhibit “B”.
Mr. Howell recommended changing the tax rate to a total of $0.72. He stated this would increase money generated in the general fund He said it would be a reduction in the tax rate, but the average homeowner would be paying $37.00 more in MUD taxes.
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 adopt the Order Setting Tax Rate and Levying Tax for 2020, with a total rate of $0.72 consisting of $0.50 for debt service and $0.22 for maintenance and operation expenses.
4. Approve Amended District Information Form. Ms. Bacon presented and reviewed with the Board the Amended District Information Form, a copy of which is attached here to as Exhibit “C”. Ms. Bacon reported that this document is recorded in the Harris County Real Property Records to provide notice to purchases of property in the District of the current tax rate in the District.
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 Amended District Information Form.
5. Minutes of previous meeting(s). Minutes of the regular meeting of September 9, 2020 and of the special meeting of September 30, 2020, were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Everhart, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes of the regular meeting of September 9, 2020 and of the special meeting of September 30, 2020 as presented.
6. Report from Direct Waste Solutions. . President McNeil recognized Mr. Singleton, who reviewed and presented the Direct Waste Solutions Report, a copy is attached as Exhibit “D.” Mr. Singleton reported there were 12 tons of recycling was collected which is about 2 pounds per home. He said he expects an uptick during the holiday’s due to packages arriving.
Mr. Singleton stated there has been a slight reduction in trash.
Director Rettig discussed trash pick-up at the administration building. He stated that moving forward he would call Mr. Singleton when trash needs to be picked up from the building.
7. 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 “E”
Mr. Syzek reported on the recent Wastewater Treatment Plant inspection. He stated the detention pond will no longer be available due to the lift pump expansion. He said there are provisions to add a 5th lift pump to keep up with heavy flows
Mr. Syzek provided an update on the new detention pond for the facility.
Mr. Syzek reported on the Tidwell road expansion. He stated that cranes are working on a new bridge and there is a plan to relocate the fence next week.
Mr. Syzek reported that a hike and bike trail is going to be installed from Tidwell to Garret Road. It will be no cost to the District.
Mr. Syzek reported on the Tidwell road street light installation. He reported that the street
lights should be installed within four weeks and will be lit up at night.
Mr. Syzek reported on the Parkway Water Plant surveillance system. He stated he is pleased with the quality of the images and there is software available for the smartphone. Mr. Syzek reported on the unauthorized violators on property at Sunrise Pines detention pond. He stated that bollards have been installed put in to prohibit intruders.
Mr. Syzek reported on the Tidwell Lakes water plant. He stated it is secured with a padlock and in case of emergency it is able to be unlocked.
Mr. Syzek reported on a large 72 inch pipe that serves Stonefield. He said that over time it has corroded and Stormwater Solutions is continuing to review it.
Mr. Syzek reported on the Lake Jackson Amoeba. He stated it is only dangerous if introduced in to the nasal cavity. He said you can drink the water and have no problems. Mr. Syzek stated that Parkway was not required to sample for it. He stated that measures are currently in place to ensure this doesn’t happen again.
8. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Lieutenant Ganey presented and reviewed with the Board the Security report for the Month of September 2020, a copy of which is attached as Exhibit “F.”
Lieutenant Ganey reported there were 2 reports of motor vehicle burglary which was lower than in past months.
Lieutenant Ganey reported there were 2 traffic stops that resulted in arrests being made.
Lieutenant Ganey reported there were 2 reports of vehicles stolen.
Lieutenant Ganey stated that with school back in session, he has seen a decline in crime.
9. 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 August, a copy of which is attached as Exhibit “G.” Ms. Yanez reported that 98.02% of the District’s 2019 taxes have been collected as of September 30, 2020.
Ms. Yanez presented 9 checks and 1 wire 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.
10. 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 stated that checks 10897 through 10967 were written in prior months and brought back for review. She stated that check 10967 was to Parkway Baptist Church regarding the deed.
Ms. Bailey reported that check 10975 was to AWBD for the parks committee meeting.
Ms. Bailey stated that check 10976 was for AWBD registration for Director Woods.
Ms. Bailey stated that the debt service and capital project had a small amount of interest.
Ms. Bailey reviewed the Investment report for September with the Board.
Ms. Bailey reviewed the budget comparison through September. She stated there is a surplus of $400,000.
Upon motion by Director Woods, seconded by Director Rettig, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Bookkeeper’s Report, to authorize payment of checks to the persons, and for the purposes listed therein.
11. 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. Ivy reported Parkway currently has 2438 active connections.
Mr. Ivy reviewed the bill and collections report for August and September with the Board.
Mr. Ivy reviewed the production and sales report and stated the District has 96.64% accountability.
Mr. Ivy reported that on October 4th he was called out to lift station no. 4 due to a pump failure. He said the pump is needing to be repaired. He said the repair would cost $13,290.00 and to replace the pump would cost $18,600.00. Mr. Ivy recommends repairing the pump due to it being only three years old.
Mr. Ivy stated that there have been no shut off of delinquent accounts at this time. He said that late bills and door hangers are being distributed and shut offs will be discussed at next month’s meeting.
Mr. Ivy stated that he received no calls from any residents regarding the amoeba. He stated that he will post a bulletin on the website to make residents aware of the precautions taken to have safe water.
Discussion ensued regarding a potential special meeting to discuss operator terms.
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, proceed with providing door hangers to promote communication between the resident and the operator, to authorize MMIA to repair the pump at lift station no. 4 in the amount of $13,290.00, and to post the bulletin on the website.
12. Engineer’s Report, including review of Engineer’s projects, and capital repairs. Mr. Jenkins presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as “Exhibit J.”
Mr. Jenkins reported on the water plant improvements: He stated the contractor still has minor punch list items to complete and $95,000 is in holding until completed. He said a final pay estimate will be discussed once the items are completed. .
Mr. Jenkins reported on the sanitary sewer rehab. He said that the remainder of the project has been postponed until the Waste Water Treatment Plant bid.
Mr. Jenkins reported on the Lift station 2 project. He stated that the property has been conveyed to the District.
Mr. Jenkins reported on the water well permit. He stated the district is permitted to pump 34.4 million gallons and currently the District is within 5 to 6 million of going over. He said the permit should be approved soon.
Mr. Jenkins stated there is nothing new to report on Global New Millennium and the
District’s involvement with the detention pond at this time.
Mr. Jenkins reported on water plant facilities. He stated that he looked at historical water usage over 36 months and the actual usage is 190 gallons a day per connection which is lower than the standard 360 TCEQ minimum. Mr. Jenkins is asking the Board to consider authorizing Jones and Carter to conclude a request to rerate the capacity of the water plant. He stated this might allow the District to serve additional development. 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 Jones and Carter to include the historical water usage date in the request to rerate the District’s water plant.
Mr. Jenkins reported on the emergency preparedness plan stating it is working to be updated. Mr. Jenkins said that other items will need to be discussed within the next couple of months regarding requirements.
Mr. Jenkins discussed water plant expansion alternatives. He stated the District could expand on the the existing water plant site. He said that construction cost to expand the plant would be over a million dollars which doesn’t include impact fees or surface water line extension to the property. Mr. Jenkins stated he has concerns on serving all the properties from a pressure standpoint should the District expand its existing water plant.
Mr. Jenkins stated the District could build another water plant. He said construction would cost over 4 million which doesn’t include any fees.
Mr. Jenkins stated the District could also construct a package plant to get capacity before the regional plant is finished. He stated the cost for the plans of a package plant would be around $150-200,000.
Mr. Jenkins reminded the Board that Greenwood has agreed they owe overage to Parkway.
Extensive discussion ensued regarding the various options for capacity.
Mr. Jenkins discussed the reasoning for a 5th pump at the lift station at the joint water plant. He stated action is needed for the proposal of $22,925 for the additional water pump. Mr. Jenkins stated that Parkway will pay half. Extensive discussion ensued. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted 4-1 to authorize the payment of the invoice to the extent it is permitted by law from interest earnings, if it cannot be from interest earnings it will be from the general fund. Director Everhart opposed.
Mr. Jenkins stated that Greenwood Utility District’s engineer is currently advertising the project, and plans to hold a mandatory pre-bid meeting on November 5th. He stated that bids will be received on December 3, 2020.
Mr. Jenkins discussed oversite of construction facilities: He stated that when the engineers are onsite observing a project, they are out there 20 hours a week. He stated that there could be a field projective representative and construction manager make a visit one a week. He stated that would save the District money. Extensive discussion ensued 13. 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 “K”.
Ms. Sears reported on maintenance in the detention ponds.
Ms. Sears stated a the permit has been renewed for Stonefield Manor detention pond and maintenance has been completed.
Ms. Sears discussed outfalls and stated that there are 10-12 that need to be repaired.
She said that a proposal will be brought forth at the next meeting.
14. Building Superintendent’s Report. Director Rettig stated he had nothing to report on the building but reminded everyone to Vote.
Mr. Syzek discussed the proposal from Texas GroundWorks Management regarding trimming the trees and spraying herbicide, a copy of which is attached hereto as Exhibit “L”. He stated that the tree trimming would cost $8,000 and the herbicide would cost $1,400 for a total of $9,400. 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 approve the proposal.
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 November 11, 2020.
President, Board of Directors
ATTEST: Secretary, Board of Directors