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 June 8, 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. Demetra Berry 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 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; Captain Ganey of Harris County Precinct 3 Constable’s Office; and Mr. Jamal Singleton of Direct Waste Solutions; and Ms. Stephanie Villanueva of Harris County Precinct 1.
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 Woods, seconded by Director Rettig, 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. Ms. Villanueva introduced herself as the new community engagement coordinator that oversees Region 1. She discussed potentially doing a drive through the District to gain familiarity. President McNeil stated she would like to coordinate a time to tour the District and show concerns. President McNeil also inquired about a ribbon cutting ceremony for the opening of the Van Hut Bridge. Ms. Villanueva stated the bridge is currently open but there is no official date for the ribbon cutting at this time.
3. Qualify Directors and Election of Officers. Mr. Wilson stated there were no other applicants in the May 7th Director Election, so Director Woods and Everhart have been reelected for four years. Mr. Wilson stated he recommends keeping the current slate, but appointing Director Woods as Assistant Secretary.
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 qualify Directors, appoint Director Woods as Assistant Secretary, and retain the same slate for all other Directors.
4. Approve the minutes of the meeting on May 11, 2022. Minutes of the regular meeting of May 11, 2022 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.
5. 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 2.5 tons per week over four service recycling days in May.
6. 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 provided an update an reviewed pictures of the Van Hut Bridge.
Mr. Syzek reported on the Resilience Trail signs, stating they will be installed on June 16th. Mr. Syzek reviewed monument cost estimates which include the monument and an observation bench. 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 proceed with the monument and observation bench installation in the amount of $7,965.
Mr. Syzek reviewed pictures of the new warehouse facility at East little York and Beltway 8. Mr. Syzek stated that Parkway Baptist Church is for sale and reviewed pictures of the property.
Mr. Syzek reported on a storm sewer sinkhole at Sunrise Pines stating Storm Water Solutions will conduct a dye test to confirm if there is a breech in the storm pipe.
Mr. Syzek reported on office landscaping improvements.
Mr. Syzek reported on a workshop regarding stormwater conveyance tunnels.
(i) Discuss Water Wise Sponsorship Program and take any necessary action.
Mr. Syzek discussed the Water Wise Sponsorship Program stating the cost to sponsor 157 students at Monahan Elementary School is $5,966. He stated this is a great opportunity to receive additional ground water credits and recommends proceeding. Discussion ensued.
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 proceed with Water Wise Program and sponsor 157 students from Monahan Elementary School.
7. 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 May Security Report, a copy of which is attached hereto as Exhibit “D”. He reported on various activity that took place throughout the District.
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 April, a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 96.52% of the District’s 2021 taxes have been collected as of May 31, 2022.
Ms. Yanez presented 8 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role and a report from the delinquent tax attorney, a copy of which is attached hereto as exhibit _.
Ms. Yanez stated the preliminary values have been received from HCAD in the amount of $500,399,605 which is an increase of 14.13%.
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.
9. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Berry reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “F.”
Ms. Berry reviewed the various fund balances.
Ms. Berry presented checks and deposit refunds for Board approval.
Ms. Berry reported that check no. 1409 is for AWBD Conference expenses.
Ms. Berry reported that the next debt service payment is not due until September 1, 2022.
Ms. Berry reviewed the schedule of investments through current day.
Ms. Berry reviewed the Investment report for May with the Board.
Ms. Berry reviewed budget information and the budget comparison through May.
Ms. Berry reported on the Water surface facility with 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.
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 April and May with the Board.
Mr. Maas reported that as of today the District has 38 million gallons remaining in the Harris-Galveston County Subsidence District Permit.
Mr. Maas reviewed the production and sales report and stated the District has 93.1% 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 the transmission station has been providing water and the District has been using little well water but as of yesterday, the plant pressure has been increased to produce more water. He stated the well will be running more and there may be a need for the District to purchase water credits from other Districts. Discussion ensued.
Mr. Maas informed the Board of a delinquent account who continues to break the payment plans.
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 and to proceed with termination and fees of delinquent accounts.
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 “H.”
Mr. Bishop reported that within the next 45 days work on the Sanitary Sewer Rehabilitation Project will be complete. Pay estimate no 3 in the amount of $170,568.00, recommends payment.
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 of Pay Estimate no. 3.
Mr. Bishop reported on the Lift station 2 project stating he recommends payment of pay estimate no. 10. in the amount of $58,505.54. He stated the lift station is now online and the final inspection should take place within the next week or two. 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 payment of Pay Estimate no. 10.
Mr. Bishop reported on the production of sand at the District’s water well stating the production has stabilized and he will continue to monitor bi-weekly.
Mr. Bishop stated there are no updates at this time regarding the annexation of Sunrise Plastics.
Mr. Bishop reported he is currently reviewed site plans for development from Global New Millennium.
Mr. Bishop reported on the sanitary sewer extension to service Global New Millennium stating fully executed contracts have been received. He said a preconstruction meeting was held and a notice to proceed was issued.
Mr. Bishop reported that Mr. Hornberger is entertaining multiple offers on the property and plans to go under contract within the next month to sell the 52 acre property.
Mr. Bishop reported on the Lift Station No. 2 generator stating a District is interested in purchasing and he will present an offer at the July meeting.
Mr. Bishop reported on bond application no. 17 stating the updated summary of costs reflects 1.6 million available in surplus funds. He stated the bond issuance would be $15.75 million which would be a $15 increase to the homestead tax bill.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District.
Mr. Bishop stated a construction meeting regarding the surface water transfer facility stating there is a delay in receiving parts for the motor control center which will delay the completion of the project. He presented pay estimates nos. 6 and 7, in the amount of $19,900 and $92,250, and recommend payment. 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 of pay estimates nos. 6 and 7.
Mr. Bishop reported on the 16 inch water line along Tidwell Road stating the City of Houston needs to further repair the replaced 16-inch gate valve. He stated the contractor is requesting a re-mobilization fee and compensation for the additional bonds required by the City of Houston. Mr. Bishop stated Greenwood UD’s engineer has reached out for an update but has not received a response at this time. Discussion ensued.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stated progress is being made and he recommends payment of pay estimate no. 13 in the amount of $478,758.06.
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 payment of Pay Estimate no. 13.
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 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 “I”.
Reviewed photographs of the various ponds throughout the District.
Ms. Sears presented and reviewed a proposal for a secure padlock to be installed at the Stonefield Manor Drainage Channel, a copy of which is attached hereto as Exhibit “J.” She stated there has been trouble with the locks being cut and this would allow for a cover to be placed over the lock to prevent damage. 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 accept the proposal in the amount of $450.00.
12. Building Superintendent’s Report. Director Rettig stated he is still working with Off Cinco to upgrade the District building with virtual capabilities.
13. Executive session pursuant to Section 551.071, Texas Gov’t Code, to confer with attorney regarding matters where the duty of the attorney to the Board requires confidentiality.
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 enter into Executive Session at 7:49 p.m. pursuant to Section 551.071 Texas Gov’t Code, to discuss a matter in which the duty of the governmental body under the Rules of Professional Conduct requires confidentiality. At this time all persons left the meeting, except the Board members, Mr. Wilson, Ms. Koett, Mr. Syzek, Mr. Bishop, and Ms. Schlachter.
14. Convene in public session. 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 enter into public session at 8:01 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.
At this time, Mr. Wilson reminded the Board about the quarterly meeting with Greenwood and that it is their turn to host. He stated Greenwood UD is currently meeting in person and their meeting is to take place next Wednesday at 6:30 p.m. President McNeil recommended rescheduling the meeting due to a scheduling conflict. Discussion ensued.
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 July 13, 2021.
/s/ Brenda McNeil
President, Board of Directors
ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors
(DISTRICT SEAL)