MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
April 12, 2023
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. on April 12, 2023 and via videoconference and teleconference. A roll call was taken of the persons present:
Brenda McNeil, President
Ron Everhart, Secretary
Gloria Woods, Secretary
Cody Pogue, Investment Officer
Shiwann Simpson, Assistant Secretary
All Directors, were presented in person, except Directors Pogue and Woods, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeeper for the District; Ms. Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”), 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 and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Sgt. Hodges of Harris County Precinct 3 Constable’s Office; Mr. John Howell of GMS Group, Financial Advisor for the District; Ms. Jennifer Day of McCall Gibson Swedlund Barfoot, PLLC, auditor for the District; Ms. Glenda Benoit, Ms. Regina Pearrie, residents of the District; and Mr. Abner Lyons with the State of Texas House of Representative District No. 142.
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. He then proceeded with the meeting business:
1. Public Comments (2 minutes each). Ms. Pearrie inquired about the water bill drop box at the District administration building. Mr. Maas reported checks may be dropped off at any time and they are picked up Monday through Friday. Mr. Pearrie also stated that the trash services have improved since last month.
2. Approve the minutes of the meeting on March 8, 2023 and special meeting on March 11, 2023. Minutes of the regular meeting of March 8, 2023 and special meeting of March 11, 2023 were previously distributed to the Board and were presented for consideration and approval. 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 minutes.
3. Discuss Series 2023 Bond Issuance.
a. Receive bids for Unlimited Tax and Revenue Bonds, Series 2023. Mr. Howell presented and reviewed the Preliminary Official Statement for the Series 2023 Bond Issuance, a copy of which is attached hereto as Exhibit “B.” He then reviewed a score card of bids received and recommended awarding sale of the bonds to SAMCO. Mr. Howell stated closing of the bonds will occur on May 10th. Discussion ensued.
b. Award sale for Unlimited Tax and Revenue Bonds, Series 2023. 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 award sale for the Unlimited Tax and Revenue Bonds, Series 2023 to SAMCO.
c. Consider Order Authorizing Waterworks and Sanitary Sewer System Combination unlimited Tax and Revenue Bonds, Series 2023, a Paying Agency Agreement, and another matters in connection therewith. Mr. Wilson presented and reviewed the Order Authorizing Waterworks and Sanitary Sewer System Combination unlimited Tax and Revenue Bonds, Series 2023, a copy of which is attached hereto as Exhibit “C.” 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 adopt the Order Authorizing the Bonds.
4. Approve Audit for Fiscal Year Ending December 31, 2022. Ms. Day reviewed the Board Representation letter and draft audit for fiscal year ending December 31, 2022, a copy of which is attached hereto as Exhibit “D.” She stated the District received an unmodified opinion. Discussion ensued regarding the inclusion of the 2023 bonds with the audit. 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 Audit for Fiscal Year Ending December 31, 2022 subject to the addition of the 2023 bonds.
5. Authorizing filing of Continuing Disclosure Report. Mr. Wilson stated the Continuing Disclosure Report gets filed with the State and shows the financial status of the District. 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 authorize NRF to file on behalf of the District.
6. Report from Acclaim Energy and take any necessary action regarding the management agreement. Mr. Oakley reviewed the updated Energy Management Contract, a copy of which is attached hereto as Exhibit “E.” He reviewed the various fee increases. Discussion ensued regarding energy rates and fees. 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 approve the fee increase within the updated management agreement.
Mr. Oakley provided information regarding the Texas Reliability Coalition Program.
7. Report from Direct Waste Solutions. This item was deferred due to Mr. Singleton not being in attendance at the meeting.
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 as Exhibit “F.”
Mr. Syzek provided an update on the District field inspection with Directors. Director Simpson stated she was appreciative of the insight of what it takes to run the District facilities.
Mr. Syzek provided information regarding a loose donkey in Greenwood UD.
Mr. Syzek reported that natural gas prices have increased and the District currently has eight generators that relay on natural gas. Discussion ensued.
Mr. Syzek reported on a sinkhole in Resilience Trail. Ms. Sears stated safety fencing surrounds the sinkhole until it is filled.
Mr. Syzek discussed the need for security lighting around the perimeter of the water plant.
Mr. Syzek reported the District is sponsoring 129 students at Monahan Elementary for the Water Conservation Program. He stated this is a total of $4,902.
Mr. Syzek reported the City of Houston is terminating its contract with their operating company in Kingwood.
9. Review Letter of Support for Harris County Precinct 1 Project and take any necessary action. The Board reviewed a letter from Harris County Precinct 1 requesting support towards the CE King Parkway Trail Project, a copy of which is attached hereto as Exhibit “G.” Mr. Bishop stated responding with a letter of support will assist the precinct in receiving funds for it shows there is community interest in the project. 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 issuing a letter of support for Harris County Precinct 1 Project.
10. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Sgt. Hodges presented and reviewed security statistics for the month of March. He reviewed various crimes throughout the District.
Sgt. Hodges reported most crime occurs at the apartment complexes within the District. He stated this effects visibility of the deputies throughout the District for most of their time is spent at the complexes. Discussion ensued.
Director Simpson inquired about community engagement with the officers. Sgt. Hodges stated community engagement events occur around the holidays.
Director Everhart inquired about requiring a fee from the apartment complexes to compensate for loss of service. Mr. Wilson stated the District could amend the rate order to increase water rates for commercial use to cover the cost of an additional deputy. President McNeil stated she would like to discuss increasing water rates with Greenwood UD at the next joint meeting.
Mr. Lyons inquired if the vacant building at CE King and Tidwell is owned by the constables and recommended a storefront to help with visibility of officers. Sgt. Hodges stated he would discuss with Captain Ganey and follow up.
11. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Yanez presented to and reviewed with the Board the Tax Assessor-Collector’s Report for March a copy of which is attached as Exhibit “H.” Ms. Yanez reported that 94.38% of the District’s 2022 taxes have been collected as of March 31, 2023.
Ms. Yanez presented 14 checks and 2 wires to the Board for review and approval. She stated a few checks were voided due to misprint.
Ms. Yanez reviewed the delinquent tax role.
Upon motion by Director Everhart, seconded by Director Simpson, 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.
12. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Bailey reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “I.”
Ms. Bailey reviewed the various fund balances.
Ms. Bailey presented checks and deposit refunds for Board approval.
Ms. Bailey reported check no. 2001 is for the AWBD conference registration.
Ms. Bailey reported that check no. 2003 to the Attorney General will be voided and reflected on next month’s report.
Ms. Bailey reported the TCEQ check has been prepared for the bond funding.
Ms. Bailey reported that the next debt service payment is not due until September 1, 2023.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reviewed the Investment report for March with the Board.
Ms. Bailey reviewed budget information and the budget comparison through March.
Ms. Bailey reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
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 bookkeeper’s report.
13. 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 “J.”
Mr. Maas reported Parkway currently has 2440 active connections.
Mr. Maas reviewed the bill and collections report for February and March with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 92.5% 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 reviewed a list of collection accounts and requested Board authorization to send 11 accounts to collections.
Mr. Maas reported on a resident water bill adjustment request stating he recommends crediting the water bill to the six month average usage and offer a payment plan. Discussion ensued.
Mr. Maas discussed the leak adjustment policy stating the District currently offers a one-time leak adjustment within a 12 month span, will issue a water credit to the six month average usage, and the resident must show proof of repair. 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 Mr. Maas to issue a leak adjustment without bringing to the Board’s attention to resident’s whose bill is under $500.
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 send the 11 accounts to collections as presented.
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 and to proceed with termination and fees of delinquent accounts.
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 “K.”
Mr. Bishop reported on the Sierra Ranch Stonefield Terrace Section 3 drainage improvement project stating he has received the updated plans and there are no conflicts with water and sewer lines. He stated construction will begin in November.
Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project stating the Joint Participation Interlocal Agreement from Harris County has been reviewed and minor comments have been provided. 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 agreement subject to Harris County incorporating comments in to the agreement.
Mr. Bishop stated he is awaiting revised plans from Harris County regarding the Parkway Forest Storm Sewer and P122-00-00 Channel Improvements Project.
Mr. Bishop reported on the Lead and Copper Rule Revision Requirements stating an inventory of connections will need to be completed by October 2024 to ensure no lead is in any connection.
He stated he will be submitting an application to the Texas Water Development Board for potential funding based on the annual median household income from the US Census Data.
Mr. Bishop reported on the Surface Water transfer Facility stating construction will start in 30 days.
Mr. Bishop reported on the surface water transfer facility expansion project and requested authorization to advertise. He stated he plans to review bids at the June meeting. Upon motion by Director Everhart, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize the engineer to advertise and bid the project.
Mr. Bishop reported on the Wastewater Treatment Plant expansion project and recommended payment of pay estimate no. 23. 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 authorize payment of pay estimate no. 23.
Mr. Bishop stated that lift station no. 1 is needing improvements and he will bring a cost estimate to next month’s meeting to perform a condition inspection. Discussion ensued regarding inspecting lift station nos. 6 and 7 as well. 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 authorize the engineer to inspect lift station no. 6 and 7 and to approve the Engineer’s Report.
15. Approve Interlocal Agreement for the Parkway Forest Subdivision Drainage Improvement Project. This item was approved in the engineer’s report.
16. Approve Resolution Declaring Official Intent to Reimburse for the relocation of District facilities in conflict with the Parkway Forest Subdivision Drainage Improvement Project. Mr. Wilson presented and reviewed a Resolution Declaring Official Intent to Reimburse for the relocation of District facilities in conflict with the Parkway Forest Subdivision Drainage Improvement Project. A copy of the resolution is attached hereto as Exhibit “L.” Upon motion by Director Everhart, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Resolution Declaring Official Intent to Reimburse.
17. 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 “M.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.
Ms. Sears reviewed a proposal for decomposed granite to regrade the trail pathway. Discussion ensued. Upon motion by Director Everhart, seconded by Director Simpson, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the proposal and proceed with updating the walking trail.
At this time, Mr. Lyons introduced himself and his role within with state of Texas House of Representative District No. 142 . He stated his main concern is that tax dollars are being treated fairly. Mr. Lyons stated he would like to review the security report and assist with any issues if needed. He also provided an update regarding property tax plan and stated an HCAD representative is available to attend a future meeting.
President McNeil discussed sending a donation to Hope House Houston Ministry in honor of Jim Ainsworth. 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 make a donation in the amount of $250.
Discussion ensued regarding the memorial service for former Director Al Rettig.
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 May 10, 2023.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)