Meeting Minutes – February 14, 2024

MINUTES OF MEETING OF BOARD OF DIRECTORS
PARKWAY UTILITY DISTRICT
February 14, 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, at 12843 Tidwell Road, Houston, Texas 77044 at 6:15 p.m. 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 for Parkway UD were present, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Judy Osborn of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeeper for the District; Ms. Delia Yanez and Ms. Rhonda Gideon of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW”), 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. Reginald Wilson, Mr. Charles Graham, and Ms. Madeline Lopez of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Mr. Jamal Singleton of Direct Waste Solutions; Sgt. Landon McDonald of Harris County Precinct 3 Constable’s Office; and Ms. Sheila Thomas, member of the public.

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). There were no public comments.

2. Approve the minutes of the meeting on January 10, 2024. Minutes of the regular meeting of January 10, 2024 were previously distributed to the Board and were presented for consideration and approval. 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 approve the minutes.

3. Report from Direct Waste Solutions. Mr. Singleton presented and reviewed the report. He stated there were four recycling days averaging 10 tons per week.

4. 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 “B.”

Mr. Syzek discussed break-ins at water plants located in Montgomery County. He reviewed the current security system at the District facilities.

Mr. Syzek reported on the District’s control and monitoring systems, stating the systems can only be controlled by MMIA personnel.

Director Simpson entered the meeting at this time.

Mr. Syzek reported on the Forest Park Apartment Meter Vault Leak.

Mr. Syzek provided an update regarding the Parkway Forest and Hidden Meadow drainage improvements.

Mr. Syzek reported on the joint wastewater treatment plant construction and start up status.

Mr. Syzek review pros and cons of dripping faucets during a freeze.

5. 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 January, a copy of which is attached hereto as Exhibit “C.” He reviewed statistics for various crimes throughout the District. Discussion ensued regarding vehicles that are targeted for burglaries.

6. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Yanez announced that this is the last Board meeting she will be attending, and she introduced

Ms. Gideon from ASW.

Ms. Gideon presented to and reviewed with the Board the Tax Assessor-Collector’s Report for January a copy of which is attached as Exhibit “D.” Ms. Gideon reported that 65.82% of the District’s 2023 taxes have been collected as of January 31, 2023.

Ms. Gideon presented 9 checks and 2 wires to the Board for review and approval.

Ms. Gideon reviewed the delinquent tax role.

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 approve the Tax Assessor and Collector’s Report and to authorize the termination of delinquent accounts.

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

Ms. Osborn reviewed the various fund balances.

Ms. Osborn presented checks and deposit refunds for Board approval. She noted check no. 2515 was voided.

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

Ms. Osborn reviewed the Investment report for January with the Board.

Ms. Osborn reported that the next debt service payment is not due until March 1, 2024.

Ms. Osborn reviewed budget information and the budget comparison through January.

Ms. Osborn announced that this may be the last Board meeting she will be attending, and she discussed coverage from McLennan office.

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 bookkeeper’s report.

8. 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 “F.”

Mr. Maas reported Parkway currently has 2441 active connections.

Mr. Maas reviewed the bill and collections report for December through January with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 95.5% accountability.

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 Ms. Thomas had a leak repaired at her residence, and MMIA offered her a payment plan and a $500 credit. Ms. Thomas explained to the Board how she discovered the leak and her correspondence with MMIA regarding her water bill. Mr. Wilson stated the Board will consider this matter and she will be contacted tomorrow regarding the Board’s decision. Ms. Thomas left the meeting at this time. Mr. Maas reviewed Ms. Thomas’ normal water usage and noted her customer status is in good standing. Mr. Maas also stated that since the repair, her water usage is back to normal. Discussion ensued. 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 write-off Ms. Thomas’ outstanding balance.

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 accept the Operator’s Report.

9. 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 “G.”

Mr. Bishop provided an update regarding the water well no. 1 re-work stating the contractor has pulled the pumping equipment and motor from the well, and they have conducted the initial camera survey. He stated Quiddity is reviewing the camera survey to determine necessary repairs.

Mr. Bishop reported on the Global New Millenium lift station and force main, stating Quiddity expects to submit to agencies for plan review this month. He stated he met with a Villas at Stonefield HOA member regarding the necessary force main sanitary sewer easement. Mr. Bishop stated Quiddity is preparing the metes and bounds description for the easement limits for legal. He further reported that they received an updated proposal plat following the developer’s review from the County, and the building lines were extended from 25 feet to 80 feet. He noted this requires abandoning the deed and easement for the lift station site, and execution of a new deed and access easement, with slightly relocating the proposed lift station. 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 authorize deed and easement abandonment and execution of replacement warranty deed and easement for the lift station site.

Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project, stating the contractor installed the waterline to be relocated and is preparing to complete the necessary testing and disinfection before completing the tie-in. He stated the tie-ins will be coordinated with the District’s Operator.

Mr. Bishop reported on the Parkway Forest Storm Sewer and P122-00-00 Channel Improvements Project, stating Quiddity received, reviewed, and returned the enclosed comments to the County for their latest plan submittal.

Mr. Bishop stated he is working on compiling the lead service line inventory of the public and private water system and submit the lead service inventory to TCEQ.

Mr. Bishop reported on the Lift Station No. 1 Rehabilitation and reviewed a scope memo to proceed with the design of the rehabilitation project with anticipation of construction beginning in January 2025. 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 Quiddity to proceed with Lift Station No. 1 Rehabilitation Project.

Mr. Bishop reported on the Surface Water Transfer Facility, stating R&B Group, Inc. completed the punch list items and the project is ready to close-out. He presented Pay Application No. 20 and Final, with the District’s share of $84,082.14. Upon motion by Director Woods, seconded by Director Pogue, after full discussion and the question being put to the Board, the Board voted unanimously to authorize payment to R&B Group, Inc. for $84,028.14.

Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating Gemini Contracting Services, Inc. is on site and poured the foundation for the new hydro-pneumatic tank. He noted the contractor is also working on the foundation for the ground storage tank. Mr. Bishop reviewed the wastewater treatment plant photos.

Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project and recommended payment of pay application no. 33. 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 authorize payment to CSA Construction, Inc. for $55,160.98.

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 Engineer’s Report.

10. 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 “H.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.

Ms. Sears reviewed proposals to repair washout areas around the outfalls at the Sunrise Pines Detention Pond. 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 proposal to regrade and repair washout areas and stabilize with rip rap at Sunrise Pines Detention Pond.

11. Review District Insurance. Mr. Wilson presented to and reviewed with the Board the McDonald & Wessendorff Insurance 2024-2025 proposal, a copy of which is attached hereto as Exhibit “I.” Upon motion by Director Simpson, seconded by Director Pogue, after full discussion and the question being put to the Board, the Board voted unanimously to approve the McDonald & Wessendorff Insurance 2024-2025 proposal.

12. Resolution Authorizing Indemnification of Directors. Mr. Wilson presented to and reviewed with the Board a Resolution Authorizing Indemnification of Directors, a copy of which is attached hereto as Exhibit “J.” He noted that this item is discussed annually in conjunction with renewal of the District’s insurance policy, and stated that to the extent that Directors are acting in good faith in carrying out their duties, the District will indemnify Directors from current surpluses for losses in connection with law suits and damages that are not covered by the Director’s and officer’s insurance policy. 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 Resolution Authorizing Indemnification of Directors.

13. Matters pertaining to 2024 Directors Election, including Order Calling Directors Election. Mr. Wilson presented to and reviewed with the Board the Order Calling Directors Election to be held on May 4, 2024, a copy of which is attached hereto as Exhibit “K.” He noted that Harris County will not be hosting a joint election in May 2024, and, if contested, the District will need to host their own election. 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 adopt the Order Calling Directors Election to be held on May 4, 2024.

Mr. Wilson announced that Ms. Tricarico has departed NRF, and Ms. Lopez will be covering the District’s meetings in the interim.

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 March 13, 2024.

President, Board of Directors

ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)