MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
October 5, 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 special session, at 12843 Tidwell Road, Houston, Texas 77044 at 6:15 p.m. on October 5, 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 Woods were presented in person, thus constituting a quorum.
Directors Rettig and Pogue did not attend. Also attending all or parts of the meeting were: 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. Reginald Wilson, Mr. Charles Graham, and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Mr. John Howell, financial advisor 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. President McNeil called the meeting to order then proceeded with the meeting business:
1. Public Comments. There were no public comments.
2. Discuss Bond Issuance and take any necessary action. Mr. Bishop stated this bond issuance has been discussed for over a year and a half and since initial discussion, costs have rose exponentially. He reviewed a summary of costs that was presented at the previous month’s meeting and discussed various ways to decrease the total bond issuance amount. Mr. Bishop stated this bond issuance will fund facilities for future developments.
Mr. Howell voiced his concerns regarding the Hornberger tracts. Mr. Wilson stated the District will receive taxable value on the tracts if annexed, which will not put the burden of payment for the bond issuance on the residents. He stated should Mr. Hornberger not want to annex the tracts, the District has the ability to service the tracts as an out of District customer and could amend the rate order fee to cover the cost lost from taxable value. Extensive discussion ensued regarding a potential annexation agreement with Mr. Hornberger.
Mr. Bishop discussed a potential timeline of events for the issuance. He stated the District has the ability to complete all projects besides the construction of a water plant for around $7 million.
The Board discussed asking the TCEQ for approval of all $18.5 million, but phasing out the construct the water plant.
3. Order Authorizing Application for Approval of Bond Issue by the TCEQ. The Board reviewed the Order Authorizing Application for Approval of Bond Issue by the TCEQ, a copy of which is attached hereto as Exhibit “B.”
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 adopt the Order with an amount not to exceed $18.5 million.
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 October 12, 2022.
/s/ Brenda McNeil
President, Board of Directors
/s/ Ron Everhart
Secretary, Board of Directors