MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
NOVEMBER 13, 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, except Director Woods, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Veronica Hernandez 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, engineer 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 (“SWS”); Mr. Charles Graham, Jr. and Ms. Madeline Lopez of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Captain Ganey of Harris County Precinct 3 Constable’s Office (“Constable”); Ms. Christie Leighton and Mr. Dane Turner of Best Trash (“Best Trash”); and Ms. Jennifer Day with McCall Gibson Swedlund Barfoot, PLLC, auditor 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. The President called the meeting to order and proceeded with the meeting business.
1. Public Comments (2 minutes each). There were no comments.
2. Approve the minutes of the meeting on October 9, 2024. Minutes of the regular meeting of October 9, 2024 were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Pogue, seconded by Director McNeil, 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 ending December 31, 2024. President McNeil recognized Ms. Day, who presented to and reviewed with the Board the McCall Gibson Swedlund Barfoot PLLC Engagement Letter, a copy of which is attached hereto as Exhibit “B.” She stated this agreement covers fiscal year ending December 31, 2024, and she noted the cost to complete the audit will range between $22,000 and $24,000.
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 authorize McCall Gibson Swedlund Barfoot PLLC to prepare the audit for fiscal year ending December 31, 2024.
4. Report from Best Trash. President McNeil recognized Ms. Leighton and Mr. Turner, who reviewed with the Board the Best Trash 2024 Holiday Schedule. She noted that there will not be pick-up service on Christmas Day and New Years Day, and service will resume on Saturday, December 28th, and Saturday January 4, 2025.
President McNeil expressed concern regarding automatic CPI increase without presenting this matter to the Board. She also expressed concern regarding a Best Trash representative not attending the Board meetings. Extensive discussion ensued regarding the District’s contract with Best Trash.
On behalf of Director Woods, President McNeil inquired about issue regarding contacting Best Trash customer service. Mr. Turner stated that if customers leave a voicemail, missed calls are returned the same day.
President McNeil commented that the Board requested for a representative to attend monthly regular meetings. Mr. Turner stated they will arrange for a Best Trash representative attend the Board meetings.
Ms. Leighton and Mr. Turner left the meeting at this time.
Mr. Graham stated he will look into Best Trash contract, and correspondence regarding the CPI increase, and he follow-up with the Board.
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 hereto as Exhibit “C.”
Mr. Syzek reported on the Wastewater Treatment Plant Ribbon Cutting Ceremony, held on October 4th.
Mr. Syzek reported on the Contractor Move-Out Transition from Wastewater Treatment Plant. He noted that CSA will be departing the site this week.
Mr. Syzek reported on the Water Well Sand Production and reviewed the Performance Test Report.
Mr. Syzek discussed the Reid Road MUD 1 Water Tank Explosion.
6. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Cpt. Ganey reviewed the security report for the month of October.
Cpt. Ganey reported various incidents within the past month.
Cpt. Ganey discussed course of action regarding trespassing incident, and dune buggy damage, at Sunrise Pines Detention Pond. Ms. Sears further discussed SWS’ proposal, to repair damages, for 3 days of labor and equipment, 10 loads of select fill, and recreate rutted areas to ensure positive flow to pilot channel, and overseed with Rye and Bermuda grass, for a total of $17,960. Cpt. Ganey discussed prosecution process pertaining to the trespassing incident and dune buggy damage. Extensive discussion ensued. Mr. Graham discussed option to prepare a demand letter to resident and including language to pay restitution. Ms. Sears stated she will provide photos, to review the damages, at the next meeting.
Cpt. Ganey left the meeting at this time.
Discussion ensued regarding next steps pertaining to the Sunrise Pines Detention Pond damages.
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 authorize NRF to coordinate with Cpt. Ganey and prepare demand letter to resident for payment of restitution.
7. 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 October, a copy of which is attached as Exhibit “D.” Ms. Gideon reported that 0.69% of the District’s 2024 taxes have been collected as of October 31, 2024.
Ms. Gideon presented seven checks and two wires to the Board for review and approval.
Ms. Gideon reviewed the delinquent tax report. Upon inquiry by President McNeil, Ms. Gideon stated she will follow-up regarding payment plan for delinquent account holder. Discussion ensued regarding process of terminating delinquent accounts.
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 approve the Tax Assessor and Collector’s Report and to authorize the termination of delinquent accounts.
8. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Hernandez reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “E.”
Ms. Hernandez reviewed the various fund balances.
Ms. Hernandez presented checks and deposit refunds for Board approval.
Ms. Hernandez reviewed the schedule of investments through current day.
Ms. Hernandez reviewed the Investment report for October with the Board.
Ms. Hernandez reviewed budget information and the budget comparison through October.
Ms. Hernandez presented to and reviewed draft #1 of the operating budget for fiscal year ending December 31, 2025.
Upon inquiry by Director Simpson, Mr. Maas discussed grease trap inspections.
Upon inquiry by Ms. Sears, Ms. Hernandez stated check no. 2986, pertaining to Stonefield Manor Trail, will be reflected in the budget next month.
Ms. Hernandez presented two additional checks from the general fund, check no. 3015 to SWS for $21,000 and check no. 3016 to SWS for $2,700, the Board approval.
Ms. Hernandez also presented two additional checks from the capital projects fund, check no. 1229 to A&S Engineering for $2,699.48 and check no. 1230 to A&S Engineering $2,705.91.
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 approve the bookkeeper’s report.
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 “F.”
Mr. Maas reported Parkway currently has 2,441 active connections.
Mr. Maas reviewed the bill and collections report for September 23, 2024 through October 21, 2024 with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 90.94% accountability.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas stated there was one excursion at the wastewater treatment plant.
Mr. Mass reviewed with the Board the 26 uncollectible accounts, totaling $7,978.84, for consideration to be sent to collections. He noted that any account under $50 will not be sent to collections.
Upon inquiry by President McNeil, Mr. Maas discussed the excursion at wastewater treatment plant was due to a low pH level.
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 accept the Operator’s Report and authorize MMIA to send uncollectible accounts to collections.
10. Consider amendments to Rate Order and take any necessary action. Mr. Graham presented to and reviewed with the Board the amendments to Rate Order as recommended by the Operator.
He noted the administrative fee of $20 will be added to a customer’s bill for notice of disconnection, and the $50 charge to a customer’s account for any returned check.
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 amendments to Rate Order.
11. 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 stated there was no update regarding Sunrise Plastic Enterprise at this time.
Mr. Bishop reported on the Global New Millenium Development, stating that the developer received Harris County approvals for site development, but plat recordation remains outstanding. He also stated that the developer is waiting on Harris County approvals for the extension of Tidwell Road.
Mr. Bishop provided updates on the Global New Millenium lift station and force main, stating that Quiddity is coordinating plan review with TCEQ, Harris County, and City of Houston.
Mr. Bishop provided an update regarding 9025 Pineland Road, stating that Quiddity was notified that the seller chose to go a different route and is no longer requesting capacity and feasibility study.
Mr. Bishop reported on the Sierra Ranch and Stonefield Terrace Section 3 Drainage Improvement Project, stating that he contacted Harris County and construction will be moving forward by the end of the year.
Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project, stating that Mr. Alford attended the pre-substantial completion inspection on October 28th and a punch list was issued to the contractor.
Mr. Bishop reported on Parkway Forest Storm Sewer and 9122-00-00 Channel Improvements Project, stating that Harris County is moving forward with bidding, which is scheduled to open November 18th. He stated that Quiddity will have information pertaining to construction schedule, and the District’s share for utility relocation, by January 2025.
Mr. Bishop reported on Water Plant No. 2, stating that plans were submitted to TCEQ, Harris County, and City of Houston for review.
Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating that Quiddity is proceeding with design phase services.
Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating that stating that Gemini Contracting Services, Inc. completed the electrical modification. He presented Pay Application No. 6 for $59,400, of which the District’s pro-rata share is $29,700, and Pay Application No. 7 for $23,625, of which the District’s pro-rata share is $11,812.50, for the Board’s 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 payment of Pay Application No. 6, of which the District’s pro-rata share is $29,700, and payment of Pay Application No. 7, of which the District’s pro-rata share is $11,812.50.
Mr. Bishop discussed the proposed single-family residential and multi-family development for 9911 CE King Parkway. He reviewed the analysis of the feasibility for the District to provide public water and sanitary sewer service to the approximate 151-acre mixed use tract. He noted the estimated 1,050 Equivalent Single Family Connections, for potentially 378,000 gallons per day average daily flow (“gdp ADF”). Mr. Bishop stated that the District can serve 302,400 gdp ADF, but the property owner would need to pay the District to obtain surface water, through Greenwood UD, from City of Houston, and the property owner would be responsible for the cost of the additional 302,400 gdp ADF surface water capacity. He noted a significant extension of waterline is needed. Mr. Bishop then discussed providing sewer service. He noted that another lift station and a 6,200 linear ft force main would be required. Mr. Bishop proceeded to review Preliminary Land Plan and Public Utility Layout exhibits. He discussed the proposed tax value of the development would be $232,000,000, and he further discussed the potential defined area boundary for the tract and development. Mr. Bishop proceeded to review the Summary of Preliminary Cost Estimates. Extensive discussion ensued.
Mr. Bishop stated Quiddity and NRF could arrange for a conference call with 9911 CE King Parkway property owner to discuss requirements for the potential development.
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 Engineer’s Report.
12. Approve Storm Sewer Easement for proposed storm outfall. Mr. Graham presented to and reviewed with the Board Storm Sewer Easement (“Easement”), a copy of which is attached hereto as Exhibit “H.”
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 Easement.
13. 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 “I.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.
Discussion ensued regarding repairing damages at Sunrise Pines Detention Pond.
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 SWS proposal for $17,960 and authorize SWS to start on repairs at Sunrise Pines Detention Pond.
Discussion ensued regarding No Trespassing signage at Sunrise Pines Detention Pond. It was the consensus of the Board to replace any missing No Trespassing signage.
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 December 11, 2024.
President, Board of Directors
ATTEST:
Secretary, Board of Directors