MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
August 10, 2022
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 August 10, 2022 via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Alphonso (“Al”) Rettig, Vice President
Ron Everhart, Secretary
Cody Pogue, 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; Mr. Cameron Brownof Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for the District; Mr. Drew Alfordand 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; Captain Ganey of Harris County Precinct 3 Constable’s;Ms. Karen Sears of Storm Water Solutions; Mr. Jamal Singletonof Direct Waste Solutions; Ms. Stephanie Villanueva of Harris County Precinct 1; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Mr. Merrill Willgrubs and Mr. Brad Dill of BD Realty Advisors LLC.
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 July 13, 2022. Minutes of the regular meetingof July 13, 2022 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.
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 2.264 tons per week over fiveservice recycling days in July.
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 provided an update on the Sunrise Pines walking trail stating construction has initiated and concrete is being poured.
Mr. Syzek reported on a storm culvert repair.
Mr. Syzek discussed the monument installation at Resilience Park.
Mr. Syzek discussed potential installation of surveillance cameras around the monument and the District administration building. He stated the cost to install cameras at the entrance of the trail is $2,084 and the cost to install a camera at the administration building is $1,454. Extensive discussion ensued. 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 installation of surveillance cameras at the entrance of the trail and the administration building and to install six surveillance signs with a cost not to exceed $600.
Mr. Syzek stated that Harris County has confirmed the sign at Resilience Trail does not obstruct the pedestrian crosswalk sign.
Mr. Syzek stated there are damaged shrubs at lift station no. 5 in Stonefield Manor. The Board agreed to cut back the dead shrubs and allow time to grow back.
Mr. Syzek reported on Crystal Cove Drive recovery effort stating some homes are being remodeled while others remain abandoned.
Mr. Syzek provided an update regarding lift station no. 2.
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 July Security Report, a copy of which is attached hereto as Exhibit “D”. He reported on various activity that took place throughout the District.
Captain Ganey stated there will be an increase in deputies on school campuses, however it will not affect the patrol contract.
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 stated this document allows the District to make changes to its current coverage if necessary.
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 and make no changes.
8. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Mr. Brown presented to and reviewed with the Board the Tax Assessor-Collector’s Report for June, a copy of which is attached as Exhibit “F.”Mr. Brown reported that 97.01% of the District’s 2021 taxes have been collected as of July 31, 2022.
Mr. Brown presented 5 checks and 2 wires to the Board for review and approval.
Mr. Brown presented and reviewed a copy of the report from the delinquent tax attorney, a copy of which is included in the Tax Assessor’s report. He stated the delinquent tax attorney is requesting to send out water termination letters to delinquent accounts with Board approval.
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 authorize the delinquent tax attorney to send termination letters to delinquent accounts.
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 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 July with the Board.
Ms. Bailey reviewed budget information and the budget comparison through June.
Ms. Bailey 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.
10. Review Investment Policy and accept disclosure statements from bookkeeper and investment officer. Mr. Wilson presented and reviewed the Investment Policy with Resolution, a copy of which is attached hereto as Exhibit “H.” He stated this policy is reviewed annually and contains a list of updated brokers. Upon motion by Director Pogue, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the resolution including the list of updated brokers.
11. 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 2440 active connections.
Mr. Maas reviewed the bill and collections report for June and July with the Board.
Mr. Maas reported that as of today the District has used 42 million gallons of water in the Harris-Galveston County Subsidence District Permit. He stated there have been discussions with the Subsidence District regarding receiving more groundwater credits.
Mr. Maas reviewed the production and sales report and stated the District has 94.33% 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 on a leak adjustment request from a resident stating an adjustment was given however the resident is requesting more. He stated he believes the credit that was given is fair and standard practice and it is not in the best interest of the District to provide additional credit.
Discussion ensued regarding purchasing groundwater credits. Mr. Wilson stated there isno update at this time from subsidence District.
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 Operator’s Reportand to proceed with termination and fees of delinquent accounts.
12. 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 and recommended payment of pay application no. 4. 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 application no. 4.
Mr. Bishop reported on the Water Well No. 1 re-work stating he recommends postponing bidding until the Joint Surface Water Transmission Facility is in operation.
Mr. Bishop reported on the sanitary sewer extension to service Global New Millenniumstating the project is complete and should be closed next month. He recommended payment of pay application no. 1. 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 application no. 1.
Mr. Bishop reported the Global New Millennium` lift station stating the topographic survey and alignment along Tidwell Road has been complete and he awaits the results of the geotechnical investigation
Mr. Bishop reported on the Lift Station No. 2 generator stating Harris County MUD No. 316 is interested in purchasing and is offering $10,000 and will pick up and remove from site at their cost. Discussion ensued. Upon motion by Director Pogue, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the offer from Harris County MUD No. 316.
Mr. Bishop reported on the administration building generator stating NTS plans to make the connections to switch power supply this month.
Mr. Bishop reported on bond application no. 17 stating next month a summary of costs will be presented.
Mr. Bishop reported on Joint Facilities with Greenwood Utility District.
Mr. Bishop stated a construction meeting regarding the surface water transfer facilitystating there is still a delay in receiving parts for the motor control center which is delaying the completion of the project. He presented pay estimates no. 9 and recommend payment. 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. 9.
Mr. Bishop reported on the 16 inch water line along Tidwell Road stating they are awaiting approval from the City of Houston to pen value and commence operations of the new water line.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stated progress is being made and he recommends payment of pay estimate no. 15 in the total amount of $915,165.17. completion date of sept 2023. Upon motion by Director Rettig, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously toauthorize payment of pay estimate no. 15.
(a) Discuss purchased of property for District facilities and take any necessary action.This item was discussed in executive session.
(b) Ratify decision to repair equipment at the joint wastewater treatment plant.Mr. Bishop stated the mechanical auger in the headworks of the original WWTP has failed and is in need of repair. 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 ratify the decision to repair equipment at the joint wastewater treatment plant.
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 accept the engineer’s report.
13. Report from Storm Water Solutions, and take any necessary action. Ms. Searsreviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “K”. Ms. Sears reviewed photographs of the various ponds throughout the District.
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 report.
14. Resolution Reviewing Investment Policy.This item was discussed and approved under agenda item number 10.
15. Building Superintendent’s Report. Director Rettig stated he is continuing to update the building for virtual capabilities.
16. 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 Pogue after full discussion and the question being put to the Board, the Board voted unanimously to enter into Executive Session at 8:03 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, Mr. Alford, Mr. Dill, and Mr. Willgrubs.
17. 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 8:28 p.m. Ms. Koett checked to see if any members of the public wanted to enter the meeting but no one was there.
18. Motions. 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 allow BD Realty to move forward with negotiations as discussed.
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 September 14, 2022.
/s/ Brenda McNeil
President, Board of Directors
ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors
(DISTRICT SEAL)