Meeting Minutes 2024-06-12

MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
June 12, 2024

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. A roll call was taken of the persons present:

Brenda McNeil, President
Ron Everhart, Vice President
Gloria Woods, Secretary
Cody Pogue, Investment Officer
Shiwann Simpson, Assistant Secretary

All directors were present, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Leigh Vitols of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeepers for the District; Ms. Rhonda Gideon of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW), 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. Marlon Ivy with M. Marlon Ivy & Associates (“MM/A”), operator for the District; Ms. Karen Sears of Storm Water Solutions; Mr. Reginald Wilson, and Ms. Jessica Leung of Norton Rose Fulbright US LLP (“NRF’), attorneys for the District; Mr. Jamal Singleton of Direct Waste Solutions; Sgt. McDonald of Harris County Precinct 3 Constable’s Office, Mr. Harold Dutton, Texas House of Representatives representing District 142, Mr. Dane Turner with Best Trash, and Ms. Peggy Smith, Ms. Denise Alexander, Ms. Debra Atkins, Ms. Phyllis Randall, and Ms. Gloria Benoit, residents of 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 and proceeded with the meeting business.

1. Public Comments (2 minutes each).

Ms. Smith expressed concerns about vehicles speeding in school zones and pedestrian safety. She said that drivers neglect stop signs and there are a lack of traffic signs within the District. Mr. Wilson said that the issues will be addressed during the Constables Report.

Ms. Alexander echoed Ms. Smith’s comment and noted that there is a lack of roadway visibility at the Parkway Forest subdivision.

Ms. Atkins noted that drivers were running the stop signs in the school pick up area at the Crystal Cove Drive and Van Hut Lane intersection. Mr. Wilson stated that the area is controlled by the school district and suggested Ms. Atkins to reach out to them.

Ms. Randall inquired about the Constables’ efforts in addressing street blockage by abandoned cars. Mr. Wilson stated that the issue will be addressed during the Constables Report.

Ms. Benoit inquired about the Constable patrol schedule during the summer. Mr. Wilson stated that the Constables are contractually required to allocated 70% of their patrol time within the District.

2. Approve the minutes of the meeting on May 8, 2024. Minutes of the regular meeting of May 8, 2024 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. Presentation of Certificates of Election to Directors McNeil and Simpson. Mr. Wilson presented their Certificates of Elections to Directors McNeil and Simpson.

4. Qualify Directors Elected for Term beginning May 2024. Mr. Wilson stated that the re-elected directors had qualified for their new terms of office.

5. Election of Officers. Mr. Wilson stated that the Board can elect to change the director positions or retain the same slate of officers. 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 retain the same slate of officers.

6. Consider approval of HGSD Water Conservation lnterlocal Agreement. Mr. Syzek presented to and reviewed with the Board the HGSD Water Conversation lnterlocal Agreement (“lnterlocal Agreement”). He said that the District has sponsored the HGSD Water Conservation School Program in previous years. He said that the District can earn groundwater credits from sponsoring for the 2024-2025 school year, which is essential to the District especially during droughts. Upon motion by Director Simpson, seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to approve the lnterlocal Agreement.

7. Report from Direct Waste Solutions. Mr. Singleton presented and reviewed the report, a copy of which is attached hereto as Exhibit “B.”

Mr. Singleton presented to and reviewed with the Board a Consent to Assignment for Recycle and Solid Waste Collection and Disposal Services (“Consent to Assignment”). He stated that Direct Waste Solutions is acquired by Best Trash and introduced Mr. Turner, a representative of Best Trash. Mr. Wilson said that he had reviewed the contract and sent his comments to Best Trash to ensure all parties are in agreement with the terms. Extensive discussion ensued.

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 Consent to Assignment, subject to final review.

8. Consider approval of Consent to Assignment for Recycle and Solid Waste Collection and Disposal Services. This item has been approved during the Direct Waste Solutions Report.

9. Report from General Manager. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy is attached hereto as Exhibit “C.”

Mr. Syzek presented to and reviewed with the Board a proposal and a conceptual plan from Texas Groundworks Management, Inc. (“TGM”), in the amount of $12,855.76, for landscape design services for the District office, a copy of which is attached hereto as Exhibit “D.” He stated that TGM performed a walk-through and recommended replacement of dead shrubs, live oak tree trimming, and irrigation system repair. The Board agreed to review the proposal.

Mr. Syzek reported on damages related to the Derecho event. He noted that Rivera East and Normandy and 1-10 areas suffered from the most damages including fallen trees on properties and down power lines causing blockages on roadways. He noted that there were power outages in older neighborhoods since they were serviced by surface line instead of buried lines in the new developments.

Mr. Syzek provided an update on the Tidwell Basin and Trail, stating that the concrete trail system is still under construction.

Mr. Syzek provided an update on the Joint Wastewater Treatment Plant Contractor Meeting.

Mr. Syzek reported on the most recent Texas drought report.

Mr. Syzek reported on the Seawater Desalination Feasiblility Study

10. Report by Harris County Precinct Three Constable, including community Crime

Watch, and action relating to Security. Sgt. McDonald reviewed the security report for the month of May, a copy of which is attached as Exhibit “E.”

Sgt. McDonald reported various incidents within the past month.

Sgt. McDonald addressed residents’ comments regarding drivers neglecting traffic control and patrol schedule during the summer, stating that Harris County Precinct 3 services a large area and 70 active contracts. He stated that the Constables are aware of the issues and has been focusing their efforts in controlling morning and evening traffic on Tidwell Road.

Sgt. McDonald addressed residents; comments regarding street blockages by abandoned vehicles. He urged the residents to report such events via an online abandoned vehicle form.

Sgt. McDonald addressed residents’ comments regarding dispatching additional patrol deputies, stating that the Constables provide vacation or disability check services to residents who requested check-in calls or deputy dispatches at specific times and/or locations.

The President stated that the abandoned vehicle online form and the Constables’ phone number will be posted on the website.

11. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Gideon presented to and reviewed with the Board the Tax Assessor-Collector’s Report for May, a copy of which is attached as Exhibit “F.” Ms. Gideon reported that 96.72% of the District’s 2023 taxes have been collected as of May 31, 2024.

Ms. Gideon presented 7 checks and 2 wires to the Board for review and approval.

Ms. Gideon reviewed the delinquent tax report.

Upon motion by Director Simpson, 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 the termination of delinquent accounts.

12. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Vitols reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “G.”

Ms. Vitols reviewed the various fund balances.

Ms. Vitals presented checks and deposit refunds for Board approval. She stated that the report reflected 2 voided checks because payments have already been made directly to the contractor. Mr. Wilson noted that the Joint Committee approved the District’s payment to Greenwood UD, who pays the contractor on behalf of both districts at a previous joint meeting.

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

Ms. Vitals reviewed the Investment report for May with the Board.

Ms. Vitals reviewed budget information and the budget comparison through May.

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 bookkeeper’s report.

13. Operator’s Report from M. Marlon Ivy & Associates. Mr. Ivy presented and reviewed with the board the Operator’s Report, a copy of which is attached hereto as Exhibit “GH

Mr. Ivy reported Parkway currently has 2441 active connections.

Mr. Ivy reviewed the bill and collections report for April through May with the Board.

Mr. Ivy reviewed the production and sales report and stated the District has 104.30% accountability.

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

Mr. Ivy stated there was no excursion at the wastewater treatment plant.

Mr. Ivy reported that there were no damages nor service interruptions to the facilities from the Derecho storm events.

Upon motion by Director Simpson , seconded by Director Everhart, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator’s Report.

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 “I.”

Mr. Bishop provided an update regarding the water well no. 1 re-work stating that the contractor, C&C Water has installed the necessary equipment to seal the potential area of the sand production and is awaiting the delivery of the pumping equipment. He said that the contractor has re-mobilized to complete the final stages of the re-work prior to the equipment’s arrival. He said that the current schedule is to have the well back online at the end of June.

Mr. Bishop reported on the Global New Millenium Development, stating that Quiddity received revised development plans for the private portion of the development and Tidwell Road Extension and issued plan review letters. He stated that construction is underway by the developer and advised the District will not install taps or complete inspections until plans are approved.

Mr. Bishop provided updates on the Global New Millenium lift station and force main. He said that Quiddity is proceeding with the design of Lift Station No. 8 and force main now that the private development site design has progressed.

Mr. Bishop reported on the Sierra Ranch and Stonefield Terrace Section 3 Drainage Improvement Project, stating that Harris County acquired the land from the HOA an plans to begin construction in August 2024.

Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project, stating that Harris County continues with installation of box storm piping along Tidwell road and is moving towards construction along Parkway Forest Drive.

Mr. Bishop reported on Parkway Forest Storm Sewer and 9122-00-00 Channel Improvements Project, stating that Quiddity reviewed revised plans and have no objections to the proposed improvements and waterline relocation.

Mr. Bishop stated all necessary documents have been submitted and await TCEQ’s review.

Mr. Bishop reported on Water Plant No. 2, stating the design is underway. He said that the District needs to adopt a Sanitary Control Order, a copy of which is attached hereto as Exhibit “J.”

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 adopt the Sanitary Control Order.

Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating Quiddity completed a structural modal analysis to confirm the existing dry pit wet well is acceptable for use as a wet well. He said that Quiddity evaluated the most cost effective solutions and long term benefits for the District. He recommended to proceed with a replacement project similar to what was completed at Lift Station No. 2, which entails constructing a new wet well and abandoning the existing lift station wet well and dry well. He stated that with the existing surplus funds from the current bond issue and capital project funds, savings on the detention and drainage pond, there will be sufficient funds for this project without impacting the operation funds. Discussion ensued. Upon motion by Director Everhart, seconded by Director Simpson, after full discussion and the question being put to the Board, the Board voted unanimously to authorize Change in Scope for Lift Station No. 1 Replacement.

Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating that Gemini Contracting Services, Inc. has completed the construction of the Hydropneumatic Tank foundation and the Ground Storage Tank assembly has begun.

Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project and recommended payment of the District’s pro-rate share of pay application no. 37 to CSA Construction, Inc. in the amount of $184,614.09. 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 authorize payment of pay application no. 37 to CSA Construction, Inc. in the amount of $184,614.09.

Upon motion by Director Simpson, seconded by Director Woods, after 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 presented to and reviewed with the Board a proposal from Stonefield Manor for tree trimming and vegetation removal. The Board requested Ms. Sears to present an itemized proposal at the next meeting for consideration.

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 July 10, 2024.

President, Board of Directors
ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)