Meeting Minutes – October 9, 2024

MINUTES OF MEETING OF BOARD OF DIRECTORS
PARKWAY UTILITY DISTRICT
OCTOBER 9, 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 Directors Everhart and Simpson, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Renee Butler 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, 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 (“SWS”); Ms. Jessica Leung of Norton Rose Fulbright US LLP (“NRF”), paralegal for the District; Captain Ganey of Harris County Precinct 3 Constable’s Office (“Constable”); Ms. Christie Leighton of Best Trash; and Mr. Greg East of Perdue, Brandon, Fielder, Collins & Mott L.L.P.

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. Convene Public Hearing on Proposed Tax Rate for 2024. Ms. Gideon said that after discussing with the District’s financial advisor, they recommended lowering the tax rate for debt service to $0.42, which will bring the total tax rate to $0.69. There were no comments from the public. The President closed the hearing.

2. Adopt Order Setting Tax Rate and Levying Tax for 2024. The Board reviewed the Order Setting Tax Rate and Levying Tax, a copy of which is attached hereto as Exhibit “B.”

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 adopt the Order Setting Tax Rate and Levying Tax for 2024, with a total rate of $0.69 consisting of $0.42 for debt service and $0.27 for maintenance and operation expenses.

3. Review and Approve Amended District Information Form and Notice to Purchaser. Ms. Leung presented and reviewed the Amended District Information Form, a copy of which is attached hereto as Exhibit “C.”

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 approve and authorize the filing of the Amended District Information Form.

4. Public Comments (2 minutes each). There were no comments.

5. Approve the minutes of the meeting on September 11, 2024. Minutes of the regular meeting of September 11, 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.

6. Report from Best Trash. Ms. Leighton reported that she has checked the call/email log and has not received any comments regarding trash pick-up services. The President said that the Board also hasn’t received any comments from the residents.

Ms. Leighton stated that the CPI adjustment was automatically applied on every anniversary date following the terms on the contract. The President commented that the CPI adjustment was not mentioned when the contract was assigned to Best Trash. Extension discussion ensued.

The President commented that the Board requested for a representative to attend monthly regular meetings. Ms. Leighton stated that she will be attending the next meeting.

7. 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 “D.”

Mr. Syzek reported on the Ribbon Cutting Ceremony, stating that Cpt. Ganey was not able to obtain permission from the school district, so language on the flyer regarding additional parking at CE King Middle School will be removed. He stated that the Constables will still be directing traffic.

Mr. Syzek reported on pre-ribbon cutting preparations.

Mr. Syzek reported on office parking lot tree trimming, stating that Texas Groundworks provided a proposal in an amount of $2,760, and SWS provided a proposal in an amount of $. He recommended approving the quote from Storm Water Solutions.

Mr. Syzek reported on Tidwell Lakes new access road to Beltway 8.

Mr. Syzek reported on Global New Millennium Construction.

Mr. Syzek reported on Tidwell Basin Construction, stating that he met with a representative of Harris County Flood Control. He stated that the construction is close to completion.

Mr. Syzek reported o Parkway Forest Harris County road repairs,.

Mr. Syzek reported on Resilience Trail, stating that the community walking trail is gaining popularity. He reviewed with the Board Google Maps reviews.

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 approve the office parking lot tree trimming proposal from SWS in the amount of $2,700.

8. 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 September.

Cpt. Ganey reported various incidents within the past month.

Cpt. Ganey stated that the Constables are working on a new interactive and color-coded map to show incidents and crimes within the District and within Harris County.

9. 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 September, a copy of which is attached as Exhibit “E.” Ms. Gideon reported that 98.21% of the District’s 2023 taxes have been collected as of September 30, 2024.

Ms. Gideon presented 3 checks and 2 wires to the Board for review and approval.

Mr. East reviewed the delinquent tax report.

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 and to authorize the termination of delinquent accounts.

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

Ms. Butler reviewed the various fund balances.

Ms. Butler presented checks and deposit refunds for Board approval.

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

Ms. Butler reviewed the Investment report for September with the Board.

Ms. Butler reviewed budget information and the budget comparison through September.

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.

11. 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 “G.”

Mr. Maas reported Parkway currently has 2441 active connections.

Mr. Maas reviewed the bill and collections report for August 22nd through September 23rd with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 90.66% accountability.

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

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

12. Approve Professional Service contract with M. Marlon Ivy & Associates, Inc. Mr. Maas reviewed with the Board the Professional Service Contract with M. Marlon Ivy & Associates, Inc. (“Contract”), 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 accept the Operator’s Report.

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 Contract.

13. 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 Sunrise Plastic Enterprise stating that Sunrise Plastics is working to provide the necessary documentation to proceed with the annexation process and site plans to receive water services.

Mr. Bishop reported on the Global New Millenium Development, stating that the only remaining item for the extension of Tidwell Road is for the developer to receive Harris County approvals.

He stated that the developer awaits plan approval and plat recordation for the site development.

Mr. Bishop provided updates on the Global New Millenium lift station and force main stating that Quiddity plans to submit to TCEQ, Harris County, and City of Houston this month for plan review.

Mr. Bishop reported on the Sierra Ranch and Stonefield Terrace Section 3 Drainage Improvement Project, stating that the project includes the addition of inlets adjacent to existing inlets on the streets of Sierra Ranch, upsizing existing storm sewer lines, and acquisition of the landscape reserve in the middle of the Villas subdivision to provide a small detention pond that is to be maintained by the District. He said that Harris County acquired the land from the HOA and plans to begin construction in December 2024.

Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project, stating that Harris County continues with construction along Parkway Forest Drive and the project will conclude in late October, if weather condition allows.

Mr. Bishop reported on Parkway Forest Storm Sewer and 9122-00-00 Channel Improvements Project, stating that Quiddity awaits further information from Harris County as it relates to the timing of the project and when Parkway’s share will be due. He stated that plans have been approved but County staff awaits their management’s approval to proceed with bidding. He stated that the estimated cost for Parkway’s share of the utility relocations is approximately $45,000.

Mr. Bishop reported on Water Plant No. 2, stating that Quiddity submitted plans to TCEQ, Harris County, and City of Houston this month. He stated that the engineering costs for the project have been funded with existing bond funds and the construction costs will be funded in a future bond issue as part of Bond Application Report No. 17.

Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating Quiddity is proceeding with design phase services for the lift station replacement project.

Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating that Gemini Contracting Services, Inc. completed the coating application for the Ground Storage Tanks, Booster Pump Station, and Hydropneumatic Tank. He stated that there is no Pay Application this month.

Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project, stating that the contractor completed the digester conversion and is working to complete site restoration. He recommended payment of the District’s pro-rate share of pay application no. 41 to CSA Construction, Inc. in the amount of $80,956.59.

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 Engineer’s Report and to authorize payment of pay application no. 41 to CSA Construction, Inc. in the amount of $80,956.59.

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

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 November 13, 2024.

President, Board of Directors

ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)