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 May 11, 2022 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, Mr. Jeffery Bishop and Mr. Jayson Taylor, of Quiddity, 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”), operator for the District; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Karen Sears of Storm Water Solutions; and Captain Ganey of Harris County Precinct 3 Constable’s Office; and Mr. Ron Anderson, Engineer for Greenwood Utility 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. 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 Everhart, 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 April 13, 2022. Minutes of the regular meeting of April 13, 2022 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.
4. Report from Direct Waste Solutions. The Board reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “B.”
Director Rettig stated he will discuss trash pickup at the District building with Mr. Singleton.
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 requested discussion about sponsorship for the water wise program be put on the June agenda.
Mr. Syzek reported on the District Administration Building landscaping upkeep.
Mr. Syzek discussed the Resilience Trail signage stating it will be complete by May 20th.
Discussion ensued regarding the addition of a bench, monument, and concrete pad. Mr. Syzek said the total cost would be $7,965. 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 addition of a bench, monument, and concrete pad subject to finalization of language on the monument.
Mr. Syzek discussed Sierra Ranch Pond stating a meeting is being arranged with Precinct 1 to discuss interest in providing a walking trail. Discussion ensued.
Mr. Syzek provided an update regarding the Harris County Bridge construction at Van Hut.
Mr. Syzek provided an update regarding a nuisance abatement issue within the District.
Mr. Syzek provided an update regarding Texas current drought situation.
Mr. Syzek discussed collection system inflow and infiltration awareness.
Mr. Syzek provided an update regarding the Starbucks construction stating the project should be complete late fall or early winter.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey presented and reviewed a copy of the April Security Report, a copy of which is attached hereto as Exhibit “D”. He reported on various activity that took place throughout the District.
Director Everhart inquired about the ATV laws. Discussion ensued.
7. 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 April, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 95.85% of the District’s 2021 taxes have been collected as of April 30, 2022.
Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
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.
8. 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 “F.”
Ms. Bailey stated that Ms. Demetra Berry will be taking over for the District beginning next month.
Ms. Bailey reviewed the various fund balances.
Ms. Bailey presented checks and deposit refunds for Board approval.
Ms. Bailey reported that the next debt service payment is not due until September 1, 2022.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for April with the Board.
Ms. Bailey reviewed budget information and the budget comparison through April.
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.
9. 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 “G.”
Mr. Maas reported Parkway currently has 2440 active connections.
Mr. Maas reviewed the bill and collections report for March and April with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 92.6% 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 the quarterly write offs stating these are accounts no longer within the District that still owe a balance. He requested Board authorization to turn over to a collection agency at no cost to the District.
Mr. Maas stated that removing rocks and installing sod at the District administration building would cost $1,850. Discussion ensued regarding relocation of the rocks.
(i) Approve Consumer Confidence Report. Mr. Maas reviewed the Consumer Confidence report, a copy of which is attached hereto as Exhibit “H.” He stated it will be distributed to residents beginning June 30th.
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 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, send delinquent accounts to the collection agency, approve the consumer confidence report, and proceed with removing rocks and installing sod at the District administration building.
10. 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 that within the next 30 days work on the Sanitary Sewer Rehabilitation Project will be complete.
Mr. Bishop reported on the Lift station 2 project stating he recommends payment of pay estimate no. 9. in the amount of $95,342.61. He stated that the completion date is scheduled for May 21, 2022. 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 authorize payment of pay estimate no. 9.
Mr. Bishop stated the District’s water well is producing a high level of sand indicating an issue in the well and it is continuing to be monitored.
Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.
Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating he no longer recommends awarding contract to Green Dream. He stated he recommends awarding bid to ISJ Underground Utilities, LLC who is the next lowest bidder. 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 unanimously to award bid to ISJ Underground Utilities, LLC and authorize execution to contract subject to attorney review.
Mr. Bishop stated he received the executed deed and easement from Global New Millennium and has prepared the necessary cost estimate at $3.2 million with an estimated duration of 570 days for design and construction. 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 the design of lift station no. 8 and force main.
Mr. Wilson reported on the Tenaris Coiled Tubes Tract stating they have accepted and contracts are being prepared.
Mr. Bishop reported on progress made regarding repurposing the generator for the administration building.
Mr. Bishop reported on bond application no. 17 stated he is working with the District’s financial advisor and will presented a recommendation at next month’s meeting.
Mr. Bishop reported on Parkway Forest Subdivision Drainage Improvements. He stated he received plans from Harris County to review for conflicts of the District’s existing water and sanitary sewer facilities and he has provided comments to the County. Mr. Bishop reported that the proposed storm sewer improvements appear to be in conflict with the District’s surface waterline and the force main in conflict will need to be re-routed. Mr. Bishop stated that Harris County intends to provide the necessary water and sewer relocations as part of their project.
Mr. Bishop stated he received an additional plan set for expansion of HCFCD Channel P122-00-00 and he plans to review and provide comments to Harris County this month.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District.
Mr. Bishop stated a construction meeting regarding the surface water transfer facility is to take place on May 25th. He provided an update regarding the CenterPoint gas line stating is planning to be abandoned.
Mr. Bishop reported additional information on the 16 inch water line along Tidwell Road.
He stated the City of Houston has replaced the 16-inch gate valve on their waterline and the contractor, Reddico Construction Company, is preparing to re-mobilize and complete the tie-in to the existing waterline. He stated the contractor is requesting a re-mobilization fee and compensation for the additional bonds required by the City of Houston that were not disclosed at the time of bid. Mr. Bishop stated he is awaiting documentation from the contractor and Greenwood UD’s engineer for consideration by both Districts.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stated progress is being made and he recommends payment of pay estimate no. 12 in the amount of $362,825.66.
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 authorize payment of pay estimate no. 12.
Mr. Bishop stated that Greenwood Utility District’s engineer coordinated to have the outfall pipe televised for further investigation. He stated he plans to review the videos once provided to Greenwood’s engineer.
Mr. Anderson reported on the surface water transfer facility expansion stating the cost estimates have been updated to account for additional electrical pricing. He presented a proposal for considering to proceed with the design of the expansion. Discussion ensued. 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 authorize design of the surface water transfer facility expansion.
President McNeil expressed her frustration regarding the pending change order no. 2 stating she was disappointed the Board was not notified sooner.
(i) Review and approve Lift Station 2 Replacement meter. Mr. Bishop presented and reviewed an Addendum to Sales Confirmation Account Number Change related to the Lift Station No. 2 Replacement Meter, a copy of which is attached hereto as Exhibit “J.” He stated this addendum is to update the account numbers with Acclaim Energy. 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 Lift Station No. 2 Replacement Meter.
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 accept the engineer’s report.
11. Report from Storm Water Solutions, and take any necessary action. Ms. Sears reviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “K”.
Reviewed photographs of the various ponds throughout the District.
Mr. Bishop inquired about the irrigation tap and meter at the Sunrise Pines Park. Mr. Wilson stated the only item the HOA’s only expense is construction of the trail. Mr. Bishop stated he will inform the HOA that the irrigation tap and meter is a MUD expense and the MUD will be billed.
12. Building Superintendent’s Report. Director Rettig spoke on the need to update the conference room at the admin building regarding technology equipment and virtual meeting capabilities.
Mr. Wilson stated the if the conference room is updated within the next month, the District can move forward with holding meetings in a hybrid format. He stated that at least three Directors will need to be present in person and the remaining Directors and Consultants may attend virtually. 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 proceed with Off Cinco updating the conference room for virtual meeting capabilities in an amount not to exceed $5,000.
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 May 11, 2021.
/s/ Brenda McNeil
President, Board of Directors
ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors
(DISTRICT SEAL)