PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
JULY 14, 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 July 14, 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, 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 regular meeting of June 9, 2021, and the special meetings of June 16, 2021 and June 30, 2021 were previously distributed to the Board and were presented for consideration and approval.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 minutes.
3. 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 “B.” Ms. Yanez reported that 97.46% of the District’s 2020 taxes have been collected as of June 30, 2021.
Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
Mr. Wilson reported on House Bill 872 stating it will remove the names of delinquent accounts on the report effective September 1.
Upon motion by Director Balderas, 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.
4. Report from Direct Waste Solutions. Mr. Singleton reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “C.”
Mr. Singleton reported that recycling volume totaled 11.37 tons which equates to 2.8 tons per week over four service recycling days in June.
Director Rettig inquired if there have been any issues with heavy trash pickup. Mr.
Singleton stated there have been no major issues reported.
a. Consider and approve agreement with Direct Waste Solutions. Mr. Wilson stated he informed Mr. Singleton that the Board would like to move forward with a year engagement with Direct Waste Solutions. He stated the last agreement has expired. Mr. Singleton stated Direct Waste Solutions typically enters in to a longer term, but he can revisit the financial situation of the Board in a year. Upon motion by Director Rettig, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the contract agreement with Director Waste Solutions for one year.
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 “D.”
Mr. Syzek reported on the Harris County Flood Control Ditch stating work is being done in the channel. He also reviewed construction pictures.
Mr. Syzek reported on a tree conflict in Sunrise Pines Pond. He stated that Stormwater Solutions has located tree contractor and the tree has since been removed. Mr. Syzek stated there are a number of trees located along the fence perimeter which could lead to future problems. Mr. Wilson stated if the trees are on the District easement, the resident is responsible for replacing the fence, but if not, the District could be responsible for repairs.
Mr. Syzek stated that all signs along the walking trail need to be evaluated and updated.
Mr. Syzek reported on the Rutherford Park and Forest Park Apartment occupancy. He said that Rutherford Park is close to being at full capacity and he has had no recent contact with Forest Park.
Mr. Syzek reported on the Tidwell Road traffic switch pattern stating lanes have switched during construction.
Mr. Syzek reported on the Wastewater Treatment Plant monthly meeting. He stated the contractor had around $45,000 worth of materials stolen.
Mr. Syzek reported on home development in Tidwell Lakes.
Mr. Syzek reported that the Subsidence District wants the District participate in a sponsorship for the Water Wise Program which will earn the District more groundwater credits. The Board will discuss further at next month’s meeting.
Mr. Syzek presented a presentation overview from the Lower Greens Bayou workshop, a copy of which is attached hereto as Exhibit “E.
6. 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 June 2021 which was previously distributed, a copy of which is attached as Exhibit “F.”
Captain Ganey reported on various activity throughout the month.
Captain Ganey reported he is starting an initiative and targeting aggressive drivers due to the increase of road rage incidents.
Mr. Syzek inquired about paper temporary tags and what the increase is due to. Captain Ganey stated that dealerships are allowing customers to keep their tags which allows or illegal distribution.
Director Balderas inquired about police activity in Sunrise Pines on July 1st. Captain Ganey stated he will look in to it and report back.
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 “G.”
Ms. Bailey reported on capital projects fund disbursements.
Ms. Bailey reported that check nos. 11407-11429 were written in prior months and brought back for review.
Director Rettig inquired about the Comcast account. Ms. Bailey stated she is working on getting the account out of Director Rettig’s name.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reported that the next debt service payment is September 1, 2021.
Ms. Bailey reviewed the Investment report for June with the Board.
Ms. Bailey reviewed the budget comparison through June. She stated there is a surplus of $708,329.00.
Ms. Bailey reported on the Water surface facilitywith 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.
8. 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 May and June with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 93.19% 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 AT&T services all lift station and water plant phone lines. He stated that switching to a Verizon cell phone base will lower the phone bill substantially. Mr. Maas stated that he has not experienced any major issues with the cell phone usage and that installation of the Verizon units will take place next week.
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.
9. 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 bid was awarded to Texas Pride Utilities, LLC. Mr. Bishop stated that after execution of the contract, a preconstruction meeting will occur. Upon motion by Director Woods, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize execution of the
contract with Texas Pride Utilities, LLC.
Mr. Bishop reported on the Lift station 2 project the contract was awarded to ZeusCon, LLC. He stated the contract has been reviewed and he is requesting authorization to execute and to proceed with scheduling a pre-construction meeting. Upon motion by Director Balderas, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted 2-3 to
authorize execution of contracts with ZeusCon, LLC. President McNeil, Director Everhart, and Director Rettig opposed. The motion failed due to lack of majority. Mr. Bishop stated that the District needs to be in contract by July 27, 2021. The Board agreed to discuss further at the end of the engineer’s report.
Mr. Bishop reported on the water plant improvement project one year warranty inspection stating there were no deficiencies found.
Mr. Bishop reported on the Bond Application Report no. 17 stating there are four options that will utilize $1.6 million of surplus funds. He stated option one is to construct a new water plant that includes a water well, surface water connection, and to pay for the required lift station with a force main.
Mr. Bishop stated he does not recommend this option.
Mr. Bishop stated the second option is the same as option one but does not include a water well. He stated the cost increase to the average homestead is $140 and he recommends this option.
Mr. Bishop stated option three is for a minimalistic water plant.
Lastly, Mr. Bishop stated that option four is for a water plant with a water well but not a lift station or force main. He stated the lift station and force main are necessary and required but will be the obligation of the developer.
Mr. Bishop stated that the numbers are updated for 2021 and that the land has not yet been determined for the project. President McNeil stated she wants to review what the cost of land would be and wants to ensure the District is spending conservatively.
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 authorize the preparation of the bond application report.
Mr. Bishop reported he is currently preparing the emergency response plan for the America’s Water Infrastructure Act.
Mr. Bishop reported on the surface water transfer facility stating agreements have been executed with R&B Group, Inc. and a pre-construction meeting will be held at the end of July with an issue to proceed early August.
Mr. Bishop stated the 16 inch surface water line on Tidwell road project should be completed early August.
Mr. Bishop reported on the Wastewater Treatment Plant Expansion project and recommends payment of pay estimate No. 2. He stated there have been numerous material testing and there are no pending change orders or requests. 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 to CSA Construction, Inc. in the amount of $230,049.21.
Mr. Bishop reported on the wastewater treatment plant outfall depression stating the geotechnical consultant has completed the report. He said he is currently reviewing the report and creating recommendations to discuss with A&S and the operators potential solutions.
Mr. Bishop reviewed a budget worksheet of the District and joint facility projects.
Discussion ensued regarding execution of the ZeusCon, LLC contract. President McNeil expressed her concern with the lack of experience from the company and her lack of trust in the engineer.
Director Everhart inquired how the engineer can provide reassurance with moving forward with ZeusCon, LLC. Mr. Bishop provided background information on the company and provided assurance. Upon motion by Director Woods, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize execution of the ZeusCon, LLC contract.
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.
a. Discuss bond proposals and take necessary action. This item was discussed in detail during the engineer’s report.
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 due to the rain, the nutria repair, granite installation on the walking trail, and herbicide treatment have all been delayed.
11. Building Superintendent’s Report.Director Rettig discussed WiFi issues at the District administration building. He stated he needs the Comcast account to no longer list his name.
Mr. Wilson stated that the executive order that allowed District to meet virtually will end on September 1st. He stated there is an option for a hybrid meeting and the Board can discuss further at next month’s meeting.
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 August 11, 2021.
President, Board of Directors
Secretary, Board of Directors