Meeting Minutes 2022-09-14

MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
September 14, 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 12843 Tidwell Road, Houston, Texas 77044 at 6:15 p.m. on September 14, 2022 and 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

Directors McNeil, Everhart, and Pogue were presented in person, thus constituting a quorum.

Director Woods attended via teleconference and Director Rettig did not attend. 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; 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; Ms. Karen Sears of Storm Water Solutions; Mr. Jamal Singleton of Direct Waste Solutions; and Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Gonzales, member of the public; and Mr. Greg East, delinquent tax attorney 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. 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. This agenda item was deferred due to a quorum of Directors being present in person.

2. Consider the Financial Advisor’s recommendation for the 2022 Tax Rate. Mr. Howell presented and reviewed a tax rate analysis, a copy of which is attached hereto as Exhibit “B.”

He stated he recommends publishing a tax rate of $0.69. He stated although this is a tax rate reduction, the average tax bill will increase by $63. Mr. Howell stated that setting a tax rate of $0.70 would subject the District to a potential rollback election. He also stated that the average homestead increased by 10.24%.

3. Approve the minutes of the meeting on August 10, 2022. Minutes of the regular meeting of August 10, 2022 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Pogue, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes.

4. Order Designating Officer to Calculate and Publish Tax Rates and Taking Other Actions in Connection with the Levy of a Tax for 2022. Mr. Wilson presented and reviewed the Order Designating Office to Calculate and Publish Tax Rate, a copy of which is attached hereto as Exhibit “C.”

Upon motion by Director Pogue, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to publish a total tax rate of $0.69 and to authorize the tax assessor to publish the rate.

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

Mr. Singleton reported that recycling volume totaled 2.2 tons per week over four service recycling days in August.

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 “E.”

Mr. Syzek reported on information from the Harris County Precinct 1 and Harris County Flood Control District meeting. He stated the meeting discussed various storm water and recreational improvements throughout the area.

Mr. Syzek provided an updated regarding the Sunrise Pines trail construction status stating the concrete phase is almost complete.

Mr. Syzek provided an update regarding Resilience Trail stating the additional surveillance cameras have been installed.

Mr. Syzek reported on the Resilience Trail sign in Stonefield Manor. He stated the HOA President plans to remove and replace the sign due to belief it obstructs the view of the pedestrian walk way sign. Mr. Syzek stated approval has been received from Harris County that shows no obstruction of view. Mr. Wilson stated the sign is currently on the Harris County right of way and the HOA does not have the authority to remove the sign. Extensive discussion ensued. Mr. Wilson stated a letter will be drafted and sent to the HOA giving notice that they do not have authority to remove the sign.

Mr. Syzek reported on the new office electricity transfer and control panel stating the breaker will be locked to stay secure.

Mr. Syzek reported that on September 1st blackflow preventors had been stolen. He stated that the issue is not resolved and cages have been installed with warning signs.

Mr. Syzek reported on the drought monitoring stating drought conditions have subsided since August.

7. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey was not present at the meeting therefor a report was not presented.

8. Ratify approval of the Interlocal Agreement for Law Enforcement Services with Harris County. Mr. Wilson presented and reviewed the Interlocal Agreement for Law Enforcement Services with Harris County, a copy of which is attached hereto as Exhibit “F.”

Director Everhart expressed his interest in meeting with the constables to discuss expectations throughout the District. Mr. Wilson stated he will reach out to Captain Ganey to set up a meeting.

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 ratify the approval of the agreement.

9. 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 June, a copy of which is attached as Exhibit “G.” Mr. Brown reported that 97.91% of the District’s 2021 taxes have been collected as of August 31, 2022.

Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.

Ms. Yanez reviewed the delinquent role.

Mr. East presented and reviewed the delinquent tax attorney report, a copy of which is attached hereto as Exhibit “H.” He stated if approved, the operator will tag those residents who have not responded.

Mr. East reported on the Texas Homeowners Assistance Funds stating an information flyer was included in the July bill and the operator will not proceed with termination if the resident applied to the fund.

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 approve the Tax Assessor and Collector’s Report and to authorize termination of the delinquent accounts who did not respond.

10. Public Comments. At this time, a public comment was made. Ms. Gonzales expressed her frustrations with the lack of upkeep and maintenance around the detention ponds. Ms. Sears stated that due to the recent rain events, mowing and maintenance have been delayed but are scheduled for next week. Ms. Gonzales inquired about installation of dog waste stations. Mr. Wilson stated that is a request for the HOA.

11. 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 “I.”

Ms. Bailey reviewed the various fund balances.

Ms. Bailey presented checks and deposit refunds for Board approval.

Ms. Bailey reported that check 1604 is for President McNeil’s AWBD mid-winter conference registration.

Ms. Bailey reported that the September 1st debt service payment was made and the next payment is not due until March 2023.

Ms. Bailey reviewed the schedule of investments through current day.

Ms. Bailey reviewed the Investment report for August with the Board.

Ms. Bailey reviewed budget information and the budget comparison through August.

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

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 approve the bookkeeper’s report.

12. 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 “J.”

Mr. Maas reported Parkway currently has 2440 active connections.

Mr. Maas reviewed the bill and collections report for July and August with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 94.59% accountability.

Mr. Maas sated the permit has been amended for an additional 20 million gallons. He stated the District has used 43,730,000 gallons as of now.

Mr. Maas reviewed historical data over a 4 month average.

Mr. Maas stated there were no violations at the wastewater treatment plant.

Mr. Maas requested an agenda item for next month’s meeting regarding reviewing the contract with the District and fee updates. He stated he will send to Directors for their review prior to the next meeting.

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 Operator’s Report and to proceed with termination and fees of delinquent accounts.

13. 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 “K.”

Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project and recommended payment of pay application no. 4. Discussion ensued regarding manhole rehabilitation.

Mr. Bishop provided an update regarding Global New Millennium development.

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 that the Global New Millennium sanitary sewer line is now complete and will recommend final payment at next month’s meeting.

Mr. Bishop reported on the Lift Station No. 2 generator and presented a Bill of Sale and check in the amount of $10,000 from Harris County MUD No. 316.

Mr. Bishop reported on the administration building generator stating all work is now complete.

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

Mr. Bishop stated a construction meeting regarding the surface water transfer facility stating there the motor control center should be received by December 1st with a January project completion date. He presented pay estimate no. 10 and recommend payment. 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 authorize payment of pay estimate no. 10.

Mr. Bishop reported on the 16 inch water line along Tidwell Road stating they are awaiting approval from the City of Houston to open value and commence operations of the new water line. He presented pay estimates no. 4 and final pay estimate no. 5 and recommended payment. 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 authorize payment of pay estimate no. 4 and final pay estimate no. 5.

Mr. Bishop reported on the Wastewater Treatment Plant expansion project. He stating the electrical items are delayed, but progress is being made and he recommends payment of pay estimate no. 16. 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 authorize payment of pay estimate no. 16.

Mr. Bishop stated he received the revised change order amount from CSA for the additional structural walkway supports, additional handholes for the transducers and floats at the new lift station, and 24” couplings for the large diameter lines at the headworks. He stated the total amount is $38,855.76 which is a significant reduction from the originally proposed $99,000 change order.

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 authorize payment of the change order.

Mr. Bishop reported on bond application no. 17 and reviewed summary of costs for consideration. He stated the District is in need of a lift station, force main, sewer line, and additional water plant and that in early 2021 it would be a $9 million bond issuance. Mr. Bishop stated that since then, the rework of the water well and expansion of surface water transfer facility has been included and the pricing has increased exponentially. He stated that an application can be submitted to the TCEQ to use the remainder of the surplus funds in the amount of $1.5 million. Mr. Bishop then reviewed the list of projects stating the cost for a new water plant is now over $1 million. He stated that the project can be scaled down to bring down the costs. Extensive discussion ensued. The Board agreed to table discussion and discuss further at next month’s meeting.

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 approve the engineer’s report.

14. Order Authorizing Application for Approval of Bond Issue by the TCEQ. This item was tabled and will be discussed at next month’s meeting.

15. 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 “L”. Ms. Sears reviewed photographs of the various ponds throughout the District.

Ms. Sears presented and reviewed a proposal to replace the safety bars on the interceptor at Stonefield Manor Detention Pond in the amount of $1,650. She started this installation will included new safety bars and two vertical bars.

Ms. Sears reported that it is still growing season and maintenance and mowing has not been complete due to the recent rain events. She stated that the maintenance work will begin tomorrow.

Ms. Sears reported on an issue with the interceptors at Sunrise Pines stating the issue has been resolved.

Ms. Sears stated she will present a tree trimming proposal at a future meeting for the trees around the trail.

Upon motion by Director Everhart, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the report and proposal for the safety bar interceptor in the amount of $1650.

16. Building Superintendent’s Report. McNeil will follow up regarding the virtual capability at the District building.

17. 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 Everhart, 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 8:21 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, and Mr. Bishop.

17. Convene in public session. Upon motion by Director Pogue, 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 8:29 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 Pogue, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to move forward with the purchase of Tenaris Tract.

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 October 12, 2022.

/s/ Brenda McNeil
President, Board of Directors

ATTEST:
/s/ Ron Everhart
Secretary, Board of Directors

(DISTRICT SEAL)