PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
NOVEMBER 10, 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 November 10, 2021 via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Alphonso (“Al”) Rettig, Vice President
Ron Everhart, Assistant Secretary
Gloria Woods, Director
Vacancy
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; 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; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Ms. Jennifer Day with McCall Gibson Swedlund Barfoot, PLLC, auditor 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. Wilson 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. She then proceeded with the meeting business:
1. Authorize teleconference meeting: Board finding of existence of emergency or public necessity making the convening at one location of a quorum of the government body difficult or impossible and permitting a meeting by teleconference pursuant to Section 551.125 of the Texas Open Meetings Act. Upon motion by Director Everhart, seconded by Director Woods after full discussion and the question being put to the Board, the Board voted unanimously to find the existence of an emergency or public necessity, i.e., Delta variant of COVID-19, making the convening at one location of a quorum of the government body difficult or impossible and permitting a meeting by teleconference pursuant to Section 551.125 of the Texas Open Meetings Act.
2. Public Comments. There were no public comments.
3. Approve the minutes of the meeting on October 13, 2021. Minutes of the regular meeting of October 13, 2021 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Woods, 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.”
Mr. Singleton reported that recycling volume totaled 11.32 tons which equates to 2.26 tons per week over five service recycling days in October.
Mr. Singleton discussed the upcoming holiday schedule regarding trash and recycling pick up. He stated pick up will not be effected for Thanksgiving. Mr. Singleton stated that recycling and trash will be picked up the Wednesdays following Christmas and New Years Day. President McNeil discussed sending an e-blast out and posting on the District website to notify residents.
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 Houston Parks Board stating the final community meeting will be December 7th at 6:00 p.m. He stated this meeting will present recommended trail priorities.
Mr. Syzek reported that the google search platform has been updated to read Resilience Trial. He stated that signage and logo design are currently being created.
Mr. Syzek reported that the Sunrise Pines outfall repair is now complete.
Mr. Syzek reported that several pipelines are under a sink hole at Tidwell Road. He stated a work crew is to evaluate the source of the failure and he is awaiting the findings.
Mr. Syzek provided a general status update regarding the Joint Wastewater Treatment Plant Construction project.
Mr. Syzek stated that the Water Wise Program with Harris Galveston Subsidence District will not hold in person presentations this fall and will revisit next spring.
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 October 2021 which was previously distributed, a copy of which is attached as Exhibit “D.” Captain Ganey reported on various activity throughout the month.
Captain Ganey reported that the security signage should be installed next week throughout the District.
7. Discuss the intent to renew Contract Patrol Program Agreement and take any necessary action. Mr. Wilson presented and reviewed the memorandum regarding the intent to renew the Contract Patrol Program Agreement, a copy of which is attached hereto as Exhibit “E.” He state this document is to make note if the District would like to make changes to its current coverage. Mr. Wilson stated that rates will remain the same as the previous year.
Upon motion by Director Rettig, seconded by Director Woods after full discussion and the question being put to the Board, the Board voted unanimously to approve the intent to renew Patrol Program Agreement at the same rate.
8. 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 September, a copy of which is attached as Exhibit “F.” Ms. Yanez reported that 98.99% of the District’s 2020 taxes have been collected as of October 31, 2021.
Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role and provided an update on delinquent accounts from the delinquent tax attorney report, a copy of which is attached hereto as Exhibit “G.” She stated that the delinquent tax attorney is recommending the 16 personal property accounts be moved to the uncollectible role with Board authorization.
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 Tax Assessor and Collector’s Report and to move the 16 delinquent accounts to the uncollectible role.
9. 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 reviewed the various fund balances.
Ms. Bailey reported that the next debt service payment is not due until March 1, 2022.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for October with the Board.
Ms. Bailey reviewed the budget comparison through October.
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 Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the bookkeeper’s report.
10. 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. Maas reported Parkway currently has 2439 active connections.
Mr. Maas reviewed the bill and collections report for September and October with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 98.35% 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 Woods, 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 and to credit the resident’s account for their average bill.
11. 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 “J.”
Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project stating the contractor has completed the pre-repair cleaning and televising with work to begin on November 8th.
Mr. Bishop reported on the Lift station 2 project. He stated that there was excess ground water that needed to be pumped out. Mr. Bishop stated that the water had a tint to it and after research and dye testing, it was determined that the existing wet well is leaking. He stated that an additional month of bypass pumping was needed which resulted in change order no. 1 in the amount of $40,073.48. Extensive discussion ensued. Director Everhart expressed his great concern with the change order and does not approve with moving forward. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted 3-0 to approve change order no. 1. Director Everhart opposed. 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 payment of pay estimate no. 3 in the amount of $81,336.56.
Mr. Bishop reported on the potential annexation of Sunrise Plastics. He stated he is proceeding with the annexation application. Mr. Bishop also stated that a public water line will be required.
Mr. Bishop reported on Global New Millennium stating there is no update at this time and he is waiting for development plans to be submitted.
Mr. Bishop stated he is currently proceeding with the sanitary sewer extension to service Global New Millennium.
Mr. Bishop stated he met with Mr. Hornberger to discuss his interest in selling approximately four to five acres for a proposed water plant and future administration building.
Discussion ensued regarding possible areas.
Mr. Bishop reported on the Bond Application Report no. 17 stating the unknown cost for the water plant site is too large which is why he is unable to give a cost summary at this time.
Mr. Bishop stated he will provide more information regarding repurposing the generator for the administration building at next month’s meeting.
Mr. Bishop reported the emergency response plan for the America’s Water Infrastructure Act will be ready for review at next month’s meeting.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District. He stated the surface water transfer facility contractor has mobilized.
Mr. Bishop reported on the 16 inch water line along Tidwell Road stating the contractor has completed construction of the tie in to Harris County and installed the remaining linear footage of the water line. He stated that due to the timing of the road expansion, the connection point was required to be deeper than identified in the plans and required remobilization to completed. Mr. Bishop recommended payment to Reddico Construction Company for the change order in the amount of 36,339.79. 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 3-0 to approve the change order. Director Everhart opposed.
Mr. Bishop reported that punch list repair items have been completed at the wastewater treatment plant.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project recommending payment of pay estimate no. 6. 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 payment of pay estimate no. 6 in the amount of $75,136.31.
Mr. Bishop reported on the wastewater treatment plant outfall depression. Director Rettig expressed his concerns.
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 engineer’s report.
12. Report from Storm Water Solutions, and take any necessary action. The Board reviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “K.”
Mr. Wilson presented and reviewed the various proposal to handle the nutria damage in the District, copies of which are attached hereto as Exhibits “L-N.”
Mr. Syzek stated that there is no guarantee that any of the methods will remove all nutria moving forward. Discussion ensued regarding the various proposals and how to move forward with treating then nutria issue. 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 move forward with the proposal to lethal trap and remove the nutria.
13. Review updated Storm Water Solutions Service Agreement, and take any necessary action. Mr. Wilson presented and reviewed the updated Storm Water Solutions Service Agreement, a copy of which is attached hereto as Exhibit “O.”
Mr. Wilson stated he has reviewed the agreement and the maintenance schedules have been adjustment. He stated that the prices remain the same.
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 updated Storm Water Solutions Service Agreement.
14. Authorize auditor to prepare audit for fiscal year ended December 31, 2021. Ms. Day presented and reviewed the auditor engagement letter, a copy of which is attached hereto as Exhibit “P.”
Ms. Day stated this letter is to engage services for the fiscal years ending in 2021, 2022, and 2023. She also reviewed the fee range for each year.
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 appoint McCall Gibson as the auditor for the years 2021, 2022, and 2023.
15. Discuss 2022 Director Election, consider joint election with Harris County, and appoint Election Agent. Mr. Wilson presented and reviewed the Appointment of Agent for 2022 Director Election document, a copy of which is attached hereto as Exhibit “Q.”
He stated that if no one runs, the election will be canceled. Mr. Wilson recommended partnering and holding a joint election with Harris County for it would be a significant cost savings to the District. President McNeil expressed her concern with holding a joint election. Mr. Wilson provided clarification on how a joint election would run. Discussion ensued.
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 appoint Ms. Koett as the election agent.
16. Building Superintendent’s Report. Director Rettig expressed his concern about returning to the office for in person meetings. Mr. Wilson stated that mask and vaccinations cannot be mandated. Discussion ensued regarding future meetings.
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 December 8, 2021.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)