MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
October 11, 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, Vice President
Gloria Woods, Secretary
Cody Pogue, Investment Officer
Shiwann Simpson, Assistant Secretary
All Directors for Parkway UD were present, 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 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; Mr. Jamal Singleton of Direct Waste Solutions; 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 and proceeded with the meeting business.
1. Public Comments (2 minutes each). There were no public comments.
2. Convene Public Hearing on Proposed Tax Rate for 2023. Mr. Wilson reminded the Board a total tax rate of $0.67 was published which is the highest tax rate the District is able to set. Discussion ensued. There were no comments from the public, so the President formally closed the hearing.
3. Adopt Order Setting Tax Rate and Levying Tax for 2023. Mr. Wilson presented and reviewed the Order Setting Tax Rate and Levying Tax, a copy of which is attached hereto as Exhibit “B.”
Upon motion by Director Pogue, seconded by Director Everhart, 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 2022, with a total rate of $0.67 consisting of $0.40 for debt service and $0.27 for maintenance and operation expenses.
4. Approve Amended District Information Form. Mr. Wilson presented and reviewed the Amended District Information Form, a copy of which is attached hereto as Exhibit “C.”
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 approve the Amended District Information form and authorize filing.
5. Approve the minutes of the meeting on September 13, 2023. Minutes of the regular meeting of September 13, 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.
6. Report from Direct Waste Solutions. Mr. Singleton presented and reviewed the report, a copy of which is attached hereto as Exhibit “D.” He stated there were five recycling days averaging 2.3 tons per week.
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 as Exhibit “E.”
Mr. Syzek spoke on the Director Rettig Administration Building Dedication Ceremony.
Mr. Syzek discussed the October 5th rainfall event and provided an update regarding drought conditions and the drought contingency plan.
Mr. Syzek provided an update regarding cancelling the Comcast account. He stated Comcast is willing to remove $700 from the final invoice if all equipment is returned. Discussion ensued.
Upon motion by Director Everhart, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to pay the final invoice in the amount of $1,219.83, return all Comcast equipment, and cancel the account.
8. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. This item was deferred.
9. 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 September a copy of which is attached as Exhibit “F.” Ms. Yanez reported that 96.73% of the District’s 2022 taxes have been collected as of September 30, 2023.
Ms. Yanez presented 8 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
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.
10. 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 “G.”
Ms. Francis reviewed the various fund balances.
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 September with the Board.
Ms. Francis reported that the next debt service payment is not due until March 1, 2024.
Ms. Francis reviewed budget information and the budget comparison through September.
Ms. Francis reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.
Upon motion by Director Simpson, seconded by Director Woods, 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 “H.”
Mr. Maas reported Parkway currently has 2441 active connections.
Mr. Maas reviewed the bill and collections report for August and September with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 90.3% 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 reported on two customers requesting a leak adjustment. He stated the District currently offers a $500 credit towards leak adjustments, but the customers are requesting more.
Discussion ensued. The Board agreed to offer the customers a payment plan but to only offer a $500 credit towards the bills.
Mr. Maas reported on potential legal issue with a customer on Nature Trail. He stated a repair was made to a service line blow out, the resident had a leak within their home, and faulting the operator. Mr. Maas stated MMIA will handle, but he wanted to bring to the Board’s attention.
Upon motion by Director Simpson, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator’s Report.
12. 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 the water well no. 1 re-work stating the surface water transmission facility is now online and he recommends proceeding with the advertisement and bidding of the well re-work. He reminded the Board that the cost of the project is funded with existing bond funds. Upon motion by Director Everhart, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to authorize advertisement and bidding of water well no. 1 re-work.
Mr. Bishop provided an update regarding the Sunrise Plastic Enterprise potential annexation. He stated he awaits the submittal of documents from Sunrise Plastics to finalize the annexation application and documents.
Mr. Bishop reported on Global New Millennium Development stating they are continuing with the design for the initial phase Gas Station, Burger King, and Tidwell Road extension. He stated he completed the review of recently submitted plans, provided comments, and recently met to clarify all comments.
Mr. Bishop stated as part of the Global New Millennium development, Harris County is requiring the extension of Tidwell Road, east of the Beltway and a detention pond to serve the extension is necessary. He stated Harris County requires the detention pond to be owned by Parkway UD. Mr. Bishop reported back in 2021, the direction was provided to the developer that the maintenance and associated cost will be the developer’s responsibility, but the District would take ownership subject to a maintenance and operations agreement. Mr. Bishop stated the Board may consider taking over maintenance and operation of the detention pond in lieu of the maintenance agreement but require the developer to deposit funds in advance for a set duration to cover costs. Discussion ensued. Mr. Wilson then reviewed a detention pond maintenance agreement, a copy of which is attached hereto as Exhibit “J.” 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 detention pond maintenance agreement subject to final input from Consultants.
Mr. Bishop provided an update regarding the Tidwell Road Basin and Storm Sewer Improvement Project stating he is awaiting an update from Harris County regarding the schedule for proceeding with construction and estimated completion date.
Mr. Bishop reported on the Capital Improvement Plan stated a five year cash flow forecast has been prepared given the District’s current assessed valuation, tax rate, budget, and capital improvements to be potentially funded from the District’s general operating fund.
Mr. Bishop reported on the Surface Water Transfer Facility stating testing has been completed and the facility is placed online. He stated final payment is to be recommended at next month’s meeting.
Mr. Bishop reported on the Surface Water Transfer Facility Expansion stating the contractor is proceeding with submittals and material procurement and will share the construction schedule with the Board upon receipt.
Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project and recommended payment of pay application no. 29. He stated payment will be made to Greenwood UD and Greenwood UD will issue the full payment to the contractor. Upon motion by Director Simpson, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to authorize payment of pay application no. 29.
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.
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 “K.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed and reported on total rainfall from September.
Ms. Sears discussed the benefits to installing concrete side slopes at the Sunrise Pines detention pond and stated she will bring a cost estimate to next month’s meeting.
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 November 8, 2023.
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(DISTRICT SEAL)