MINUTES OF SPECIAL MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
September 13, 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. 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 for Parkway UD (“PUD”) were present, except Director Woods, thus constituting a quorum. All Directors for Greenwood UD (“GUD”) were present, except Director Primeaux, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Tonya Francis of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeeper for PUD; Ms. Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for PUD; Mr. Greg East, Delinquent Tax Attorney 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; Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for PUD; Mr. Jamal Singleton of Direct Waste Solutions; Captain Ganey of Harris County Precinct 3 Constable’s Office; Mr. Gerson Meglar, resident of PUD; Mr. Johnny Bellamy of Municipal District Services ( “MDS”), operator for GUD; Mr. Ronald Anderson III and Mr. Matt Gilliam of A&S Engineers, Inc. (“A&S”), engineer for GUD; Mr. Elliot Barner, of Radcliffe Bobbitt Adams Polley PLLC (“RBAP”), attorney for 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. Mr. Wilson called the meeting to order and proceeded with the meeting business.
1. 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 stated Texcon received the demand letter and has accepted responsibility for the misconstruction of the storm sewer line and agreed to make the necessary adjustments at no additional costs to the Districts.
Mr. Anderson reported that the motor control center equipment was delivered and the electrical sub-contractor has begun the installation process. He stated a full start up is expected for November. Mr. Anderson presented pay application no. 28 and recommended payment.
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 authorize payment of pay application no. 28.
Upon motion by Director O’Neill, seconded by Director Hall, after full discussion and the question being put to the Board, the GUD Board voted unanimously to authorize payment of pay application no. 28.
ii. Update on status of RWWTF Outfall. Mr. Anderson reported that the RWWTF Outfall is almost complete and turf needs to be established.
iii. Review operations, including status of use of permitted capacity. There was no update at this time.
B. Update On Surface Water Transmission Facility (“SWTF”), including:
i. Update on status of SWTF Project. Mr. Anderson stated the plant is up and running and recommends payment of pay application no. 19. Mr. Wilson informed both Boards that there were no change orders for weather delays.
Upon motion by Director Simpson, seconded by Director Pogue, after full discussion and the question being put to the PUD Board, the Board voted unanimously to authorize payment of pay application no. 19.
Upon motion by Director O’Neill, seconded by Director Guerra, after full discussion and the question being put to the GUD Board, the Board voted unanimously to authorize payment of pay application no. 19.
ii. Review operations, including discuss surface water consumption. There was no update at this time.
2. Public Comments (2 minutes each). Mr. Meglar addressed the board regarding a delinquent tax letter he received. Mr. East spoke with Mr. Meglar directly at this time.
3. Approve the minutes of the meeting on August 9, 2023. Minutes of the regular meeting of August 9, 2023 were previously distributed to the Board and were presented for consideration and approval. 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 approve the minutes.
4. Consider Financial Advisor’s recommendation for the 2023 Tax Rate. Mr. Howell presented and reviewed a tax rate analysis, a copy of which is attached hereto as Exhibit “B.” He stated he recommends publishing a tax rate of $0.67. He stated although this is a tax rate reduction, the average tax bill will increase by $69. Mr. Howell stated that the average homestead increased by 10%.
Discussion ensued.
5. Adopt Order Designating Officer to Calculate and Publish Tax Rate. Mr. Wilson presented and reviewed the Order Designating Office to Calculate and Publish Tax Rate, a copy of which is attached hereto as Exhibit “C.”
Upon motion by Director Pogue, seconded by Director Simpson, after full discussion and the question being put to the Board, the Board voted unanimously to publish a total tax rate of $0.67 and to authorize the tax assessor to publish the rate.
6. 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 “D.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.
Ms. Sears reported on the upkeep of Resilience Trail using decomposed granite stating only 100 cubic yards were used which reduced the cost to $31,965. She state a change order has been provided to chows the reduction. Ms. Sears stated with Board authorization, the saved funds may be used to clean out the channel while it is dry. She then presented the two proposals for consideration, copies of which are attached hereto as Exhibits “E-F”.
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 approve the report and proposals.
7. Review and approve Amended District Information Form and Notice to Purchaser.
Mr. Wilson presented and reviewed the Amended District Information Form and Notice to Purchaser, a copy of which is attached hereto as Exhibit “G.” He stated recent legislature requires the District to provide more accurate and detailed information about the financial status of the District along with formatting changes to the Notice to Purchaser.
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 Amended District Information Form and Notice to Purchaser.
8. Report from Direct Waste Solutions. Mr. Singleton presented and reviewed the report, a copy of which is attached hereto as Exhibit “H.” He stated there were four recycling days averaging
2.7 tons per week.
Upon motion by Director Pogue, seconded by Director Simpson, after full discussion and the question being put to the Board, the Board voted unanimously to approve the Direct Waste Solution
Report.
9. 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 “I.”
Mr. Syzek discussed holding a ceremony for former Director Al Rettig on September 23rd at 9:00 a.m. He stated the plaque has been installed on the admin building and will be unveiled at the ceremony. Discussion ensued.
Mr. Syzek reported on pilot channel clearing stated during this dry period it is easier to clean out. Discussion ensued regarding a channel that may have future erosion that needs to be looked at.
Mr. Syzek discussed the former surface water transfer facility no. 1 demolition.
9. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey reviewed security statistics for the month of August. A copy of the report is attached hereto as Exhibit “J.” He reviewed various crimes throughout the District. He stated there has been an increase in activity, but it is common when school starts.
Captain Ganey stated law enforcement is suffering and the police force is understaffed.
He stated the constables are trying to increase visibility to decrease crime, but it is difficult doing so while understaffed. Discussion ensued.
Captain Ganey stated that law enforcement is present in each school and he believes it has been a positive effect towards community involvement.
Upon motion by Director Pogue, seconded by Director Simpson, after full discussion and the question being put to the Board, the Board voted unanimously to accept the security report.
10. 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 August a copy of which is attached as Exhibit “K.” Ms. Yanez reported that 96.39% of the District’s 2022 taxes have been collected as of August 31, 2023.
Ms. Yanez presented 11 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
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.
Mr. East presented and reviewed a report from the delinquent tax attorney, a copy of which is attached hereto as Exhibit “L.” He recommended proceeding with water termnation on those accounts who failed to respond. Mr. East stated that Mr. Meglar has filed a correction with HCAD and he does not recommend termination of services.
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 delinquent tax attorney report, and 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. Francis reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “M.”
Ms. Francis reviewed the various fund balances.
Ms. Francis stated a stop payment was issued for check no. 2193 due to the check being lost in the mail. She stated the check was reissued.
Ms. Francis presented checks and deposit refunds for Board approval.
Ms. Francis reviewed the schedule of investments through current day.
Ms. Francis reviewed the Investment report for August with the Board.
Ms. Francis reported that the next debt service payment is not due until March 1, 2024 and the September 2023 payment was processed.
Ms. Francis reviewed budget information and the budget comparison through August.
Ms. Francis reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
Mr. Syzek inquired about lift station no. 1 gas billing. Mr. Maas stated due to power outages the generator was running so the amount is accurate.
Upon motion by Director Pogue, 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.
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 “N.”
Mr. Maas reported Parkway currently has 2440 active connections.
Mr. Maas reviewed the bill and collections report for July and August with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 92.0% 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 well report which is completed twice a year.
Director Everhart discussed tanker trucks illegally filling up at a fire hydrant within the District. Mr. Maas stated there are no transit meters issued right now and monitoring the hydrants is
difficult to police.
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.
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 “O.”
Mr. Bishop provided an update regarding the Sunrise Plastic Enterprise potential annexation. He stated the development is currently designing the proposed site utilities including the on-site private detention pond and abandonment of the septic system. Mr. Bishop stated he still awaits the submittal of documents to finalize the annexation application.
Mr. Bishop stated he received updated plans for the site development and road extension modified plans for the extension with Global New Millennium and plans to complete his review soon.
Mr. Bishop stated there is no update at this time regarding the Sierra Ranch and Stonefield Terrace Section 3 drainage improvement project.
Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project stating Harris County awarded the project to the 2nd low bidder, Precise Services, Inc. in the amount of $6,210,562.30. He stated the District’s portion will be approximately 136,000 and he awaits an invoice from Harris County for the required funds for the project.
Mr. Bishop reported the EPA and TCEQ adopted revisions to the Lead and Copper Rule which require the District to perform a lead service line inventory of the public and private water system
and submit the lead service line inventory to TCEQ by October 16, 2024. He stated he plans to present a recommendation at next month’s Board meeting for completing this requirement.
Mr. Bishop stated the lift station inspection are complete. He stated rehabilitation of Lift Station no. 1 is high priority. He stated modifications to the underground infrastructure can be made.
He stated this rehabilitation is within the capital improvement plan and will cost approximately $1.5 million. Discussion ensued.
Mr. Bishop reported that the remaining lift station have minor improvements that do not need to be addressed at this time.
Mr. Bishop reviewed the capital improvement plan and a slate of projects that are on the horizon.
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.
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 11, 2023.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)