Meeting Minutes 2021-12-08

PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING

DECEMBER 8, 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 December 8, 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; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Karen Sears of Storm Water Solutions.

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. He 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 Rettig, 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 November 10, 2021. Minutes of the regular meeting of November 10, 2021 were previously distributed to the Board and were presented for consideration and approval. 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 minutes.

4. 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 “B.” Ms. Yanez reported that 1.90% of the District’s 2021 taxes have been collected as of November 30, 2021.

Ms. Yanez presented 4 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 “C.” She stated there are no action items at this time.

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 Tax Assessor and Collector’s Report.

5. Discuss and approve Walking Trail Agreement with Sunrise Pines HOA. Mr. Wilson presented and reviewed the Agreement for Construction and Maintenance of a Walking trail with Sunrise Pines HOA, a copy of which is attached hereto as Exhibit “D.” He stated the District would maintain the walking trail. Discussion ensued.

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 Walking Trail Agreement with Sunrise Pines HOA.

6. Report from Direct Waste Solutions. Mr. Singleton reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “E.”

Mr. Singleton reported that recycling volume totaled 11.37 tons which equates to 2.84 tons per week over four service recycling days in November.

Mr. Singleton reviewed the upcoming holiday schedule and stated a notice will be posted to the District website.

Director Rettig inquired about recycling bins. Mr. Singleton stated a resident is able to purchase a bind directly from Direct Waste Solutions or they can purchase from their local hardware store.

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 report from Direct Waste Solutions.

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 “F.”

Mr. Syzek discussed signage and branding of Resilience Trail. He provided sample logos and stated a decision can be made at a later meeting.

Mr. Syzek reported on the Northeast Trails Exploration Workshop.

Mr. Syzek reviewed photos of the pond from the Sunrise Pines detention pond meeting.

Mr. Syzek reported on a sinkhole at Tidwell road stating the County has responded and applied asphalt to repair.

Mr. Syzek reported on District signage damage stating the operator will repair the sign.

Mr. Syzek reported on the monthly inspection at the plant. He reviewed pictures of progress being made.

Mr. Syzek stated that the Omicron variant of COVID is being tested in the waste water stream. He stated that at this time it has not been found in Houston waste water, but testing will continue.

8. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. This item was deferred due to Captain Ganey not being on the call.

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 “G.”

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 November with the Board.

Ms. Bailey reviewed the budget comparison through November.

Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.

Ms. Bailey presented and reviewed the draft budget for fiscal year ending December 31, 2022 with the Board.

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 bookkeeper’s report and the budget for fiscal year ending December 31, 2022.

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 “H.”

Mr. Maas reported Parkway currently has 2439 active connections.

Mr. Maas reviewed the bill and collections report for October and November with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 93.4% 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 reviewed a list of write off accounts for collections, a copy of which is attached hereto as Exhibit “I.” He stated that moving forward the list will be reviewed quarterly.

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 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 and approve write offs.

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 project is on track and moving forward.

Mr. Bishop reported on the Lift station 2 project and recommends payment of oay estimate no. 4 in the amount of 99,135.48. Upon motion by Director Everhart, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve pay estimate no. 4.

Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.

Mr. Bishop stated there were no updates at this time regarding Global New Millennium.

Mr. Bishop stated he is currently proceeding with the sanitary sewer extension to service Global New Millennium.

Mr. Bishop stated he has received multiple calls from real estate brokers inquiring about the potential development of Mr. Hornberger’s tract. He stated there has been no further discussion regarding a water plant site with Mr. Hornberger.

Mr. Bishop reported on the Tenaris Coiled Tubes Tract. He reviewed a proposed 3.4 acre tract and recommend the District have an appraisal completed on the tract to begin the process of submitting an offer to purchase. Mr. Wilson stated the cost may be paid out of the general operating fund. 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 authorize the appraisal by Integra Realty Resources.

Mr. Bishop reported on the repurposing of the generator for the administration building. Mr. Bishop stated the electrician is preparing a cost estimate and he is working with CenterPoint to determine if the existing gas service line is adequate to serve both generators or if an additional servicee line would be necessary.

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 reported the emergency response plan for the America’s Water Infrastructure Act has been completed and the District operator has a copy of the plan. Discussion ensued regarding the past freeze and what changes are being made moving forward to be better prepared.

Mr. Bishop reported on Joint Facilities with Greenwood Utility District.

Mr. Bishop reported on the surface water transfer facility and recommends payment of pay estimate no. 1 in the amount of $102,978.990 with Parkway’s share being $51,489.45. He stated completion is projected for June 2022. 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 authorize payment of pay estimate no. 1.

Mr. Bishop reported on the 16 inch water line along Tidwell Road stating the contractor has completed construction and the City of Houston required a 30 days pressure test prior to taking bacteriological tests. Mr. Bishop recommends payment of pay estimate no. 3 in the amount of $92,312.99 with Parkway’s share being $46,156.49. 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 authorize payment of pay estimate no. 3.

Mr. Bishop reported that the final walk through was completed at the wastewater treatment plant and he anticipates close out documents to be presented at the January Board meeting.

Mr. Bishop reported on the Wastewater Treatment Plant expansion project recommending payment of pay estimate no. 7. 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 authorize payment of pay estimate no. 7.

Mr. Bishop reported on the wastewater treatment plant outfall depression. He stated he is waiting on exhibits from A&S and will present at a later meeting.

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 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.” Ms. Sears stated that nutria trapping has been completed for two weeks. She said she has not received any correspondence from residence regarding the trees at Sunrise Pines detention pond. Ms. Sears stated that tree trimming and removal will begin in January.

Director Everhart stated he has been notified about continued nutria issues at the Sunrise Pines detention pond.

13. Discuss 2022 Director Election and consider joint election with Harris County. Mr. Wilson strongly recommended the District hold a joint election with Harris County. Discussion ensued.

Upon motion by Director Everhart, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to proceed with a joint election with Harris County.

14. Building Superintendent’s Report. Director Rettig stated he needs to make new keys for the admin building.

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 January 12, 2021.

President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)