MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
March 8, 2023
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 March 8, 2023 and via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Ron Everhart, Secretary
Gloria Woods, Secretary
Cody Pogue, Investment Officer
Shiwann Simpson, Assistant Secretary
All Directors, 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. Charles Graham, and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Captain Ganey of Harris County Precinct 3 Constable’s Office; Mr. Jamal Singleton of Direct Waste Solutions; Mr. John Howell of GMS Group, Financial Advisor for the District; Ms. Stephanie Villanueva of Harris County Precinct 1; Ms. Glenda Benoit and Ms. Regina Pearrie, residents of the District; Greenwood UD Directors Shannon Hall, Mary O’Neil, Robert Primeaux, Gary Flight, and Christina Guerra; and Greenwood Consultants Mr. Johnny Bellamy, Ron Anderson, and Elliot Barner.
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. Graham called the meeting to order. He then proceeded with the meeting business:
1. Public Comments (2 minutes each). Ms. Pearrie inquired about her water bill and the various fees. Mr. Maas provided an explanation and stated some fees vary on how much water is used each month. Ms. Pearrie also discussed the school issue and how the orange barriers are helpful for stopping cars and providing safety, but the children are dragging the barriers to various locations. President McNeil stated the issue will be addressed with Captain Ganey. Director Woods recommended inquiring if the PTA for the school would volunteer as crossing guards.
Ms. Benoit discussed a traffic congestion issue inquiring if additional officers are able to patrol the area. President McNeil stated the constables have been contacted and are figuring out a remedy to the issue.
2. Update on facilities jointly owned with Greenwood Utility District, including:
A. Update on Regional Wastewater Treatment Facilities (“RWWTF”), including:
i. Update on status of RWWTF Expansion Project, including site clearing, grubbing, and detention. Directors and Consultants of both Greenwood UD and Parkway UD introduced themselves to all meeting attendees at this time.
Mr. Anderson provided an update on the progress made on the RWWTF expansion project and recommended payment of pay application No. 22.
Upon motion by Director Guerra, seconded by Director Primeaux, after a full discussion and the question being put to the GUD Board, the Board voted unanimously to authorize payment of pay application no. 22. Upon motion by Director Everhart, seconded by Director Woods, after a full discussion and the question being put to the PUD Board, the Board voted unanimously to authorize payment of pay application no. 22.
ii. Update on status of RWWTF Outfall. Mr. Anderson stating activity is being finished on the main structure.
iii. Review operations, including status of use of permitted capacity. Mr. Anderson stated there is no update at this time.
B. Update On Surface Water Transmission Facility (“SWTF”), including:
i. Update on status of SWTF Project. Mr. Anderson reported that construction activities are continuing and water is to enter the tanks within the next 60 days. He recommended payment of pay application no. 16.
Upon motion by Director Primeaux, seconded by Director Hall, after a full discussion and the question being put to the GUD Board, the Board voted unanimously to authorize payment of pay application no. 16. Upon motion by Director Everhart, seconded by Director Simpson, after a full discussion and the question being put to the PUD Board, the Board voted unanimously to authorize payment of pay application no. 16.
Mr. Anderson reported that design plans have been resubmitted to the City of Houston after incorporating comments.
ii. Review operations, including discuss surface water consumption. Mr. Anderson stated there is no further update at this time.
Mr. Syzek informed Greenwood UD that the Parkway Directors will be touring all facilities on Saturday and anyone is welcome to join.
3. Discuss Director Positions and appoint Vice President. Mr. Graham discussed the current Director positions and the need to appoint a Vice President. Discussion ensued regarding appointing an investment officer and the training necessary for the position.
Upon motion by Director Simpson, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to appoint Brenda McNeil as President, Ron Everhart as Vice President, Gloria Woods as Secretary, Shiwann Simpson as Assistant Secretary, and Cody Pogue as Investment Officer.
4. Approve the minutes of the meeting on February 8, 2023. Minutes of the regular meeting of February 8, 2023 were previously distributed to the Board and were presented for consideration and approval. 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 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.” He stated there were four recycling days averaging 2.7 tons per week.
Mr. Singleton reported on a recent resident move out stating items may be left in the yard but he will monitor and tag if necessary.
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 reported that the soil pile at the Sunrise Pines Trail has been removed. He also stated the damaged fence the District intended to repair was handled by the resident.
Mr. Syzek provided an updated regarding Global New Millennium development including a service station and an apartment complex.
Mr. Syzek reported on Tidwell Lakes construction.
Mr. Syzek reminded the Board of the upcoming facilities tour.
Mr. Syzek provided an update on the WWTP monthly meeting.
Mr. Syzek reviewed a news article regarding a water company falsifying records and report updates.
7. Receive update from Harris County Precinct One regarding community projects and receive update on partnerships with the District (detention basin, walking trails, etc.). Ms. Villenueva provided an update regarding the potential partnership for trails between the Precinct and the Board. She explained the process for approvals and how requests move through leadership to the Commissioner.
Ms. Villanueva provided an update on trails and detention basins north of Tidwell and between Sierra Ranch and Stonefield Terrace. She stated the designs of the detention basins are being evaluated for costs. President McNeil stated the District has already approved the project and is awaiting an agreement. Extensive discussion ensued. President McNeil stated the District wants to provide for the community, but often reaches a standstill with the precinct. Ms. Villanueva recommended submitting a meeting request form to discuss with leadership.
Ms. Villanueva reported on the extension of CE King stating grant money was not received and it will be an expensive project.
8. 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 February Security Report, a copy of which is attached hereto as Exhibit “D.”
Captain Ganey provided additional information regarding the school issue previously discussed under public comments. He stated that the barrels were placed by Harris County Road and Bridge and it is not a precinct responsibility. Captain Ganey suggested that residents meet with the School Board to express their concern of students safety. He stated due to the shortage of officers, he is unable to schedule an officer to work the area surrounding the school full time. Director Simpson concurred that concerned residents should reach out to the School Board regarding children’s safety leaving the school. Discussion ensued.
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 February a copy of which is attached as Exhibit “E.” Ms. Yanez reported that 87.99% of the District’s 2022 taxes have been collected as of February 28, 2023.
Ms. Yanez presented 12 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role which includes 2022 outstanding accounts.
Ms. Yanez presented and reviewed a report from the delinquent tax attorney, a copy of which is attached hereto as Exhibit “F.” She stated no action is needed at this time.
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.
10. Authorize delinquent tax attorney to enforce the collection of delinquent taxes pursuant to contract. This item was deferred.
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 “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, 2023.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for February with the Board.
Ms. Bailey reviewed budget information and the budget comparison through January.
Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
Director Woods inquired about the Sunrise Plastic fees listed in the report. Mr. Bishop stated it is a summary of what has been expended and there have not been any recent expenditures.
Director Simpson inquired about AT&T invoices. Mr. Maas stated there are two invoices listed for one account. He stated the building may have two different phone lines.
Upon motion by Director Simpson, seconded by Director Woods, 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 “H.”
Mr. Maas reported Parkway currently has 2440 active connections.
Mr. Maas reviewed the bill and collections report for January and February with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 94% accountability.
Mr. Maas reported on the Harris-Galveston County Subsidence District stating over 3 million gallons remained at the end of the permit cycle and it has been renewed.
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 Greenwood UD water well is up and running and they have taken the lead and increased pressure.
Mr. Maas reported that the well motor went down and a rental unit is on site. He stated the transformer has also blown. Mr. Maas recommended repair of the well motor in the amount of $27,085. Discussion ensued.
Mr. Maas reported on a manhole at Tidwell and Parkway Forest stating the walls are deteriorating and will soon fail. He stated he strongly recommends proceeding with rehabilitating the manhole in the amount of $19,960. Discussion ensued regarding surveying the other manholes in the District to ensure no additional repairs are needed.
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 Operator’s Report, and to proceed with termination and fees of delinquent accounts, proceed with repair of the well motor, and repair of the manhole.
13. Discuss Series 2023 Bond Issuance, Consider and Approve Order Adopting and Authorizing Official Notice of Sale and Bid Form, Authorizing Distribution Thereof and of a Preliminary Official Statement and Authorizing Publication of Notice of Sale, and any other related matters. Mr. Howell discussed issuing $8.225 million principal of bonds and reviewed the debt service cash flow. Mr. Howell then presented and reviewed the notice of sale with the Board stating two bond insurance companies will bid for the opportunity to insure the bonds.
Mr. Howell presented and reviewed the preliminary official statement and requested Board authorization to advertise the sale of bonds, publish the notice of sale, and distribute the preliminary official statement. A copy of the Order is attached hereto as Exhibit “I.” Discussion ensued.
Upon motion by Director Woods, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the order adopting and authorizing the official notice of sale and bid form, and to authorize the distribution of the preliminary official statement and publication of the notice of sale.
14. Receive and approve Engineer’s Report, including approval of pay estimates and authorize action relating to plans and projects, including conveyances of real property and/or District facilities. Mr. Bishop presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as Exhibit “J.”
Mr. Bishop stated he has received, reviewed, and provided comments for a classroom addition at the Cravens Early Childhood Academy.
Mr. Bishop reported on the Sierra Ranch Stonefield Terrace Section 3 drainage improvement project stating he has received the updated plans and there are no conflicts with water and sewer lines.
Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project stating the project is currently on hold and he is attempting to coordinate with Harris County Flood Control Drainage District to determine the impact of the costs related to relocating water lines. He stated the County’s engineer is estimating a total cost of $200,000 and the county will need a commitment letter to proceed with the project. Discussion ensued. President McNeil continued to express her frustrations with the lack of communication and follow through from the County.
Mr. Bishop stated he is awaiting revised plans from Harris County regarding the Parkway Forest Storm Sewer and P122-00-00 Channel Improvements Project. He anticipates there are utility conflicts with the District’s water and sanitary sewer lines that will require relocation at the District’s expense but the plans are not far enough along at this time. 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 proceed with issuing a commitment letter regarding the relocation of water lines for the Tidwell Road Basin and Storm Sewer Improvement Project.
Upon motion by Director Simpson, 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.
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 “K”. Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.
Ms. Sears inquired about mowing throughout the District and the need to increase. Discussion ensued.
Ms. Sears provided an overview on the services Storm Water Solutions provides.
16. Authorize filing on Comptroller database under SB625. Mr. Graham stated this item is completed annually and is informative to the District. 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 authorize the SB625 filing.
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 April 12, 2023.
President, Board of Directors
Secretary, Board of Directors