MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
November 9, 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 November 9, 2022 and via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Ron Everhart, Secretary
Cody Pogue, Assistant Secretary
Gloria Woods, Director
Directors McNeil, Everhart, Pogue, and Woods were presented in person, 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; Mr. Jeffery Bishop and Mr. Drew Alford 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; Mr. Reginald Wilson, Mr. Charles Graham, and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Glenda Bennet, Ms. Regina Barrie, Mr. Craig Randall, Ms. Lisa Stewart, residents of the District; Lieutenant Landon McDonald of Harris County Precinct 3 Constable’s Office.
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. Public Comments. Ms. Barrie expressed her concern with the odor from the lift station on Tidwell Road. Ms. Maas stated he will check to make sure it is functioning properly and will make adjustments if needed. Ms. Barrie also gave thanks to the deputies for cleaning the graffiti so quickly following last month’s meeting.
Ms. Stewart concurred that there is a strong odor coming from the lift station. She also stated the debris in the various detention ponds have not been removed and the trees need to be trimmed.
Ms. Sears stated the area manager has been made away and clean up will occur tomorrow. Mr. Syzek stated that a tree trimming proposal will be presented to the Board later for consideration.
Ms. Stewart inquired about dog waste bins and Mr. Wilson informed her this is not a District responsibility and she should reach out to her HOA.
Mr. Randall expressed his frustration with trash being left in the streets and inquired about recycling bins. President McNeil stated that a resident will need to purchase their own recycling bin for it is not provided by the trash company. Mr. Singleton stated he will speak with his crew tomorrow regarding trash in the streets.
Ms. Bennett concurred that trash is being left in the streets in Parkway Forrest and that trash cans are not being brought back to the curb. Mr. Singleton stated he will address with the crew.
Ms. Barrie expressed her frustration with the lack of visibility of the constables patrolling the District. Lt. McDonald stated each constable car is equipped with a GPS system that tracks active and idle time as well as the location of the officer. He stated if an officer is idle for an extended period of time it is most likely due to them completing a report from a previous call. Lt. McDonald informed the residents that they are able to request additional patrol through the website.
2. Approve the minutes of the meeting on October 12, 2022. Minutes of the regular meeting of October 12, 2022 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Pogue, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes.
3. Authorize Auditor to prepare audit for fiscal year ended December 31, 2022. Mr. Wilson stated that the District entered in to a three year commitment with McCall Gibson Swedlund Barfoot PLLC and no action is needed at this time.
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 2.2 tons per week over five service recycling days in October.
Mr. Singleton reported on a heavy trash incident stating that all contents of a house were placed outside and would require heavy debris removal. He stated at this time all of the items have been removed.
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 reported on the Van Hut Bridge ribbon cutting ceremony.
Mr. Syzek reported on Resilience Trail Maintenance and upkeep needs stating Storm Water Solutions has recommended hiring a separate contractor solely for upkeep of the trail. Discussion ensued.
Mr. Syzek reported on Sunrise Pines walking trail stating a final walkthrough will take place next week. Mr. Syzek also discussed a tree grant program from Apache. He stated application are no longer being accepted and will pick back up in June of 2023.
Mr. Syzek provided an update from the AWBD Parks Committee meeting.
Mr. Syzek reported on Stonefield Villas Prospective Drainage Pond Location stating it will be discussed further in the Engineer’s Report.
Mr. Syzek reported on a water bill adjustment request from Stonefield Liquor. He stated
with Board authorization a credit of $583.83 would be given towards the bill. 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 a bill adjustment.
Mr. Syzek stated the Harris-Galveston Subsidence District received an award for the Water Smart program
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Lt. Landon McDonald introduced himself to the Board stating he is an investigator in crime and analysis. He presented and reviewed a copy of the October Security Report, a copy of which is attached hereto as Exhibit “D” and reported on various activity that took place throughout the District.
Lt. McDonald expects crime activity to rise over the next two months due to the holidays
however he is confident in the number of constables in the District to handle the activity.
Director Everhart inquired about Sheldon ISD’s contract with the constables. Lt. McDonald reported that the constables are responsible for the children during school time and on school property.
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 October a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 98.79% of the District’s 2021 taxes have been collected as of October 31, 2022.
Ms. Yanez presented 9 checks to the Board for review and approval.
Ms. Yanez reviewed the delinquent role.
Upon motion by Director Woods, seconded by Director Pogue, 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 reviewed the various fund balances.
Ms. Bailey presented checks and deposit refunds for Board approval.
Ms. Bailey stated the check to AT&T will be voided and with Board authorization she will stop payment.
Ms. Bailey reported that the next debt service payment is not due until March 2023. Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for October with the Board.
Ms. Bailey reviewed budget information and the budget comparison through October. She also reviewed a copy of a draft budget for 2023 for Board review, stating it will need to be adopted at next month’s meeting.
Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
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 approve the bookkeeper’s report and to stop payment to AT&T.
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 September and October with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 93.47% accountability.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas stated there were no violations at the wastewater treatment plant.
Upon motion by Director Woods, seconded by Director Pogue, 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 on the Sanitary Sewer Rehabilitation Project stating the last submittal from the contractor has been received and a final inspection for work completed was conducted on November 3rd. Mr. Bishop recommended paying for the work documented and closing the contract. He stated certain work was completed but did not get documented and therefore does not recommend payment for those items. Mr. Bishop stated non-payment for the non-documented items will not be an issue in the future. Extensive discussion ensued.
Mr. Bishop reported on Global New Millennium Development stating the gas station and Burger King are under design. He stated he received a request for water and sewer capacity for a multi-family development and development plans should be ready be then end of the first quarter of 2023. Mr. Bishop recommended issuing a letter of no objection with the contingency they can’t make the connection until the lift station is on line and wet haul will be done at their expense. 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 capacity request upon contingencies discussed.
Mr. Bishop provided an update regarding the Global New Millennium lift station and force main project.
Mr. Bishop reported on the Tenaris Coiled Tubes Tract and discussed potential financing options for the use of surplus bonds. Mr. Wilson presented and reviewed the Resolution Declaring Official Intent to Reimburse Expenditures, a copy of which is attached hereto as Exhibit “I.” He stated the purpose of the document is to allow the District to reimburse itself with future bond issuances if needed. Mr. Wilson also presented and reviewed the Application for Approval by TCEQ for use of Surplus Funds, and the Order Authorizing Application for Approval by TCEQ for use of Surplus Funds, copies of which are attached hereto as Exhibits “J-K.” Upon motion by Director Pogue, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to (1) approve the Resolution Declaring Official intent to Reimburse Expenditures; (2) approve the application for Approval by TCEQ for use of Surplus Funds; (3) approve the Order Authorizing the Application for Approval by TCEQ for use of Surplus funds; and (4) authorize the use of earnest money for the purchase of the Tenaris Coiled Tubes Tract.
Mr. Bishop reported that the wetlands assessment and the ESA have been completed on the tract and results state that it is not connected to a natural waterway and the site can be cleared with no issues.
Mr. Bishop reported on Sierra Ranch and Stonefield Terrance Section 3 Drainage Improvement Project. He stated Harris County is proposing draining improvements which include an additional storm sewer and inlets along with a detention pond and outfall. Mr. Bishop stated Harris County is requesting for the District to maintain the proposed detention pond and the project would not proceed without the District’s inclusion. Ms. Sears presented a cost estimate of less than $10,000 a year to maintain. Upon motion by Director Pogue, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to maintain the proposed detention pond subject to an interlocal agreement between the District and Harris County.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project and recommends payment of pay estimate no. 17. 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 authorize payment of pay estimate no. 17.
Discussion ensued regarding odor from the lift station. Mr. Maas stated the odor is less severe as before but will inspect the lift station.
Upon motion by Director Pogue, seconded by Director Woods, after a full discussion and
the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.
11. Consider potential maintenance agreement with Harris County regarding Stonefield Terrace Section 3 Detention Pond. This item was presented and approved in the Engineer’s Report.
12. Approve Resolution Authoring Application for Approval by TCEQ for Use of Surplus Funds. This item was presented and approved in the Engineer’s Report.
13. Approve Resolution Declaring Official Intent to Reimburse Expenditures. This item was presented and approved in the Engineer’s Report.
14. Authorize funds to be transferred for the purchasing of the Tenaris Tracts. This item was presented and approved in the Engineer’s Report.
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 reported that the debris will be removed from the various detention ponds tomorrow and has received confirmation from the area manager.
Ms. Sears presented a proposal for erosion along the Stonefield Manor drainage channel, a copy of which is attached hereto as Exhibit “M.” She stated recent rain events have washed the area out and the proposal is to repair and refill the areas. Discussion ensued.
Ms. Sears reviewed a general maintenance schedule for the trail system, a copy of which is attached hereto as Exhibit “N.” She recommended adding an additional $19,000 to the budget the proposed budget previous presented includes this increase. Discussion ensued.
Ms. Sears discussed maintenance of the pilot channels and requested adding an additional $30,000 towards the budget for Storm Water Solutions to include completing the various required work. Extensive discussion ensued.
Ms. Sears presented and reviewed a proposal for tree trimming along the maintenance channels stating the total cost is $28,000. 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 proposal and authorize the tree trimming.
Upon motion by Director Pogue, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the proposal for the erosion repair at the Stonefield Manor drainage channel.
16. Other. Mr. Wilson spoke about Director Rettig’s passing and offered his condolences. He also stated this opens a vacancy to the Board.
Mr. Rettig stated he received a response to the demand letter that was sent to Stonefield Terrance HOA. He stated the response letter is invalid for the HOA could not provide proof of authorization to remove the sign from Harris County. Mr. Wilson stated an additional 30 day period will be given for payment.
Mr. Wilson introduce Mr. Graham to the Board stating he is a new attorney for NRF. He stated Mr. Graham will be covering for him while he is on paternity leave.
President McNeil discussed the Director email system stating it is outdated and can be upgraded for a cost of $15 per month. She stated another option is to utilize Google Workspace at a cost of $25 a month. 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 December 14, 2022.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)