MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
SEPTEMBER 11, 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 for Parkway UD (“PUD”) were present, except Director Simpson, thus constituting a quorum. All directors for Greenwood UD (“GUD”) 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 PUD; Ms. Rhonda Gideon of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW”), tax assessor and collector for PUD; Mr. Jeffery Bishop, and Mr. Drew Alford of Quiddity, engineers for PUD; Mr. Gary Syzek of Systems Project Management, General Manager for PUD; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operator for PUD; Ms. Karen Sears of Storm Water Solutions (“SWS”); Mr. Ken Farrar of Best Trash; Mr. John Howell of The GMS Group, L.L.C., financial advisor for PUD; Mr. Reginald Wilson, Mr. Charles Graham, Jr., and Ms. Jessica Leung of Norton Rose Fulbright US LLP (“NRF”), attorneys for PUD; Captain Ganey of Harris County Precinct 3 Constable’s Office (“Constable”); Mr. Ronald Anderson III and Mr. Matt Gilliam of A&S Engineers, Inc. (“A&S”), engineer for GUD; Ms. Shannon Hopp and Mr. Elliot Barner of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorney Greenwood Utility District (“GUD”).
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. 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. Mr. Anderson presented to and reviewed with the Boards Joint Facilities Engineer’s Report, a copy of which is attached hereto as Exhibit “B.” He recommended approval of Pay Application No. 40 to CSA Construction, Inc. in the amount of $360,516.
Upon motion by Director Everhart, seconded by Director Pogue, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve PUD’s pro rate share of Pay Application No. 40 to CSA Construction, Inc. in the amount of $198,680.37.
Upon motion by Director Flight, seconded by Director Hall, after full discussion and the question being put to the GUD Board, the Board voted unanimously to approve GUD’s pro rate share of Pay Application No. 40 to CSA Construction, Inc. in the amount of $61,835.63.
ii. Update on status of RWWTF Outfall. There were no reports.
iii. Review operations, including status of use of permitted capacity. There were no reports.
B. Update on Surface Water Transmission Facility (“SWTF”), including
i. Update on status of SWTF Project. There were no reports.
ii. Review operations, including discuss surface water consumption. There were no reports.
Ms. Hopp reviewed a handout on the Wastewater Treatment Plant (“WWTP”) Event, a copy of which is attached here to as Exhibit “C.” She stated that the proposed dates for the ribbon cutting of the expanded WWTP are the morning of October 12th or October 19th. She stated that PUD and GUD will advertise the event through their separated communication channels. She stated that in order to accommodate the limited parking capacity at the facility, participants will register for specific time slows.
Mr. Syzek reviewed photographs of various past ribbon cutting events, an invitation template, and the planning process.
Ms. Hopp stated that the ceremonial scissors for each district could be displayed along with a photo of the event in their meeting spaces. She said that breakfast refreshments will be available for the event and photos of the project and daily operations will be displayed in the meeting space.
Cpt. Ganey discussed safety issues and traffic control for the event.
Upon motion by Director Everhart, seconded by Director Pogue, after full discussion and the question being put to the PUD Board, the Board voted unanimously to sponsor $500 for refreshment and $500 for the TV.
Upon motion by Director Flight, seconded by Director Hall, after full discussion and the question being put to the GUD Board, the Board voted unanimously to sponsor $1000 for refreshment
3. Approve the minutes of the meeting on August 14, 2024. Minutes of the regular meeting of August 14, 2024 were previously distributed to the PUD 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 PUD Board, the Board voted unanimously to approve the minutes.
4. Consider Financial Advisor’s recommendation for the 2024 tax rate. Mr. Howell presented to and reviewed with the PUD Board a tax rate analysis, a copy of which is attached here to as Exhibit “D.” He recommended publishing a tax rate of $0.70, and setting an Operations and Maintenance tax rate of $0.27 and a Debt Service tax rate of $0.40 – $0.43. He stated that the average homestead would be $33 more than the MUD tax dollars paid this year.
Mr. Howell stated that PUD will be levying a tax against approximately $579 million of taxable value this year, versus $567 million last year. Discussion ensued.
5. Adopt Order Designating Officer to Calculate and Publish Tax Rate. Mr. Wilson presented to and reviewed with the PUD Board the Order Designating Officer to Calculate and Publish Tax Rate, a copy of which is attached hereto as Exhibit “E.”
Upon motion by Director Everhart, seconded by Director Pogue, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve publishing a total tax rate of $0.70 per $100 assessed valuation ($0.27 for Operations and Maintenance and $0.43 for Debt Service) and to authorize the tax assessor to publish the tax rate.
6. Review and approve Amended District Information Form and Notice to Purchaser. The Board is in consensus to defer this item.
7. Report from Best Trash. Mr. Farrar presented to and reviewed with the PUD Board 2024 Automatic Adjustment Letter, a copy of which is attached hereto as Exhibit “F.” He stated that the CPI-U data indicates an increase of 6.3% but the CPI is capped at 5%. He stated that the current rate of $19.25 for curbside service with recycling will change to $20.21 per month per residence.
He stated that the new rates will take effect the billing cycle of August 2024 and continue through July 2025.
Mr. Wilson noted that the automatic CPI adjustment of 5% is allowed by the contract with Direct Waste Solutions, which was assigned to Best Trash. He reiterated the PUD Board’s request for a representative from Best Trash to attend regular meetings to answer any resident questions that may arise. Discussion ensued.
The Board agreed for Ms. Christie Leighton to attend the next meeting to further discuss the CPI adjustment.
8. 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 “G.”
Mr. Syzek reported on WWTP Inspection, stating that the only main job left to do will be the demolition of the old MCC panel in the operator’s building and minor water leak repairs. He stated that after Hurricane Beryl, the outfall pipe has remained in place and not damaged, but there were some bank sloping that had washed away and CSA and A&S are aware. Mr. Bishop stated that upon inspection, he doesn’t think immediate attention is needed other than minor touch-ups.
Mr. Syzek reported on Texas Groundworks Office Landscaping Project. He said that it’s is now very late in the growing season and recommend tabling the item till early Spring 2025.
Upon motion by Director Pogue, seconded by Director Woods, after a full discussion and the question being put to the PUD Board, the Board voted unanimously to authorize the General Manager to proceed with the tree trimming of all live oaks surrounding the office property in an amount not exceeding $2,760.
9. 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 August, a copy of which is attached hereto as Exhibit “H.”
Cpt. Ganey reported various incidents within the past month.
10. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Gideon presented to and reviewed with the PUD Board the Tax Assessor-Collector’s Report for August, a copy of which is attached as Exhibit “I.” Ms. Gideon reported that 98.04% of the District’s 2023 taxes have been collected as of August 31, 2024.
Ms. Gideon presented 8 checks and 2 wires to the Board for review and approval.
Ms. Gideon reviewed the delinquent tax report.
Ms. Gideon reviewed the Delinquent Tax Attorney Report, stating that the Board’s authorization is required to proceed with water termination on those accounts who failed to respond.
Upon motion by Director Woods, seconded by Director Pogue, after a full discussion and the question being put to the PUD Board, the Board voted unanimously (1) to approve the Tax Assessor and Collector’s Report; (2) to authorize the termination of delinquent accounts; (3) to approve the Delinquent Attorney Report; and (4) to authorize the delinquent tax attorney to proceed with termination of the delinquent accounts who failed to respond.
11. 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 “J.”
Ms. Vitols reviewed the various fund balances.
Ms. Vitols presented checks and deposit refunds for Board approval.
Ms. Vitols reviewed the schedule of investments through current day.
Ms. Vitols reviewed the Investment report for August with the Board.
Ms. Vitols reviewed budget information and the budget comparison through August.
Upon motion by Director Woods, seconded by Director Pogue, after a full discussion and the question being put to the PUD 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 “K.”
Mr. Maas reported Parkway currently has 2441 active connections.
Mr. Maas reviewed the bill and collections report for July 23rd through August 22nd with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 90.67% accountability. He stated that the flushing for GST and surface line has completed, so the Water Plant is back online. He stated MMIA will continue monitoring.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas stated there was no excursion at the wastewater treatment plant.
Mr. Maas reported that a customer reached out regarding sewer back up issues during the Hurricane Beryl event in July. He stated that the customer did not reach out to the operators until August because they were out of town. He stated that MMIA is investigating the cause by isolating the line, draining the system and televising the line while the operators came across 2 blockages that paused the televising progress. He recommended the Board to authorize MMIA to proceed with repairs for the 2 blockages and to put PUD’s insurance on notice.
Mr. Maas presented to and reviewed with the PUD Board an exhibit for CPI adjustment, a copy of which is attached hereto as Exhibit “L.”.
Upon motion by Director Pogue, seconded by Director Woods, after full discussion and the question being put to the PUD Board, the Board voted unanimously to accept the Operator’s Report.
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 “M.”
Mr. Bishop provided an update regarding the water well no. 1 re-work stating that the contractor, C&C Water has completed the well rework and placed the well online. He recommended approval of Pay Application No. 1 and Final, in the amount of $253,951, and Change Order No. 1, which reduces the cost of the project by $132,600.
Upon motion by Director Everhart, seconded by Director Pogue, after full discussion and the question being put to the PUD Board, the Board voted unanimously (1) approve Pay Application No. 1 and Final, in the amount of $253,951; (2) to approve Change Order No. 1; and (3) to approve acceptance of the Project.
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 Quiddity received revised plans for the public and private portion of the development. He stated that the only remaining item for the extension of Tidwell Road is for the developer to receive Harris County approvals.
Mr. Bishop provided updates on the Global New Millenium lift station and force main stating 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 Hornberger Tracts, stating that Quiddity has been receiving a lot of plans for low density developments which is beneficial to PUD.
Mr. Bishop provided updates on 9911 CE King Parkway, stating that Quiddity received a request to conduct a feasibility study for PUD to serve 1,050 connections of a 151 acre tract at 991 CE
King Parkway. He recommended PUD to proceed with the feasibility study, at the expense of the developer.
Upon motion by Director Everhart, seconded by Director Woods, after full discussion and the question being put to the PUD Board, the Board voted unanimously to authorize proceeding with the feasibility study, at the expense of the developer.
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. He stated that the project will conclude in the late October.
Mr. Bishop reported on Parkway Forest Storm Sewer and P122-00-00 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 Parkway’s share of the utility relocations is approximately $45,000.
Mr. Bishop reported on Water Plant No. 2, stating that Quiddity is proceeding with design phase services for the new site and water plant facility. 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 presented to and reviewed with the PUD Board the Quiddity Schedule of Hourly Rates and Reimbursable Expenses effective August 2024, a copy of which is attached hereto as Exhibit “N.”
Upon motion by Director Pogue, seconded by Director Everhart, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve the Engineer’s Report.
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 “O.” Ms. Sears reviewed photographs of the various infrastructures throughout the District and discussed services completed and upcoming services needed.
Ms. Sears presented to and reviewed with the Board a proposal to serve Stonefield Manor Detention Pond Rehab Stonefield Manor Walking Path in the amount of $46,050. She stated the last rehab was completed 18 months ago. She stated that the amount of crushed granit has been tripled to counter the high traffic on the walking path.
Upon motion by Director Everhart, seconded by Director Woods, after full discussion and the question being put to the PUD Board, the Board voted unanimously to approve the proposal to serve Stonefield Manor Detention Pond Rehab Stonefield Manor Walking Path in the amount of $46,050.
15. Ratify 2024-2024 Security Contract. Mr. Wilson presented to and reviewed with the PUD Board the Interlocal Agreement for Law Enforcement Services with Harris County, a copy of which is attached hereto as Exhibit “P.” He stated that the agreement has been approved at the last meeting and needs to be ratified.
Upon motion by Director Pogue, seconded by Director Everhart, after a full discussion and the question being put to the PUD Board, the Board voted unanimously to ratify the Interlocal Agreement for Law Enforcement Services with Harris County.
16. Resolution Requesting Extension of Time to Sell Bonds. Mr. Wilson presented to and reviewed with the Board Resolution Requesting Extension of Time to Sell Bonds (“Resolution”), a copy of which is attached hereto as Exhibit “Q.” He stated that a portion of PUD’s bonds approved in 2023 have not been sold and the TCEQ’s approval is needed to extend the time to sell the bonds until February 2026.
Upon motion by Director Woods, seconded by Director Pogue, after a full discussion and the question being put to the PUD Board, the Board voted unanimously to approve the Resolution.
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 October 9, 2024.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)