Meeting Minutes – August 14, 2024

MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT

AUGUST 14, 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 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 the District; Ms. Brittany Keeswood 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”); Mr. Reginald Wilson, and Ms. Jessica Leung of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Captain Ganey of Harris County Precinct 3 Constable’s Office (“Constable”); Ms. Shannon Hopp, paralegal of Greenwood Utility District (“Greenwood UD”); and Mr. Darius Provost-Evans, Ms. Joan Spence, and Ms. Pamela Smith-Robinson, campaign team for Darius Provost Evans.

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). Mr. Provost -Evans introduced himself and stated that he is running for Sheldon ISD School Board in the November election.

Ms. Hop stated that Greenwood UD is hosting a community engagement event at the Wastewater Treatment Plant before the November election, and inquired about the Board’s level of interest in contributing.

2. Approve the minutes of the meeting on July 17, 2024. Minutes of the regular meeting of July 17, 2024 were previously distributed to the Board and were presented for consideration and approval. 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 minutes.

3. Report from Best Trash. There were no reports. The Board agreed to share garbage and recycling collection procedural information with all HOA within the Districts and request to have the information posted on their websites.

4. 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 “B.”

Mr. Syzek reported on Hurricane Beryl’s impact on District facilities, stating that all facilities have backup generators available and were utilized for over 6 days. He stated that storm debris pickup by Harris County is delayed due to the scale of the damages. Mr. Wilson stated that NRF spoke with Harris County regarding storm debris pickup and the County stated that pickup can take up to 90 days due to the scale of the damages.

Mr. Syzek reported on Texas electricity grid collapse.

Mr. Syzek reported on 8547 Doskocil Street drainage issue, stating that Quiddity reached out to the County to initiate a service order to jet clean the storm drain lines.

Mr. Syzek reported on street sinkage at Enchanted Path and Deep Valley, stating that the operator conducted a sewer dye test and the results were positive in the storm sewer collection system.

He said that Harris County has been made aware.

Mr. Syzek reported on Tidwell Basin Project, stating that construction is ongoing.

Mr. Syzek reported on Global New Millenium Construction Project.

Mr. Syzek reported on Joint Wastewater Plant, stating that the construction is very close to completion.

5. 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 July.

Cpt. Ganey reported various incidents within the past month.

Mr. Wilson stated that Jill Harrison of the Constable is drafting the security contract for 2024-2025. He stated that the 2024-2025 rates for 4 officers to devote 70% of their working time to provide law enforcement services to the District is $86,870, an 9.4% increase from the 2023-2024 rates of $81,480. Upon motion by Director Everhart, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the 2024-2025 security contract, subject to ratification at the next meeting.

6. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Keeswood presented to and reviewed with the Board the Tax Assessor-Collector’s Report for July, a copy of which is attached as Exhibit “C.” Ms. Keeswood reported that 97.84% of the District’s 2023 taxes have been collected as of July 31, 2024.

Ms. Keeswood presented 7 checks and 2 wires to the Board for review and approval.

Ms. Keeswood reviewed the delinquent tax report.

Upon motion by Director Pogue, seconded by Director Woods, 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.

7. 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 “D.”

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 July with the Board.

Ms. Vitols reviewed budget information and the budget comparison through July.

Upon motion by Director Pogue, 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.

8. 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 “E.”

Mr. Maas reported Parkway currently has 2441 active connections.

Mr. Maas reviewed the bill and collections report for June 24th through July 23rd with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 90.42% accountability.

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

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

Mr. Mass reported on water valve survey, stating that the operators are working on the survey in phases over the next few months to minimize disruption to regular water supply. Discussion ensued.

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.

9. 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 “F.”

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 back online. He stated that Quiddity plans to recommend payment and close out documentation at next month’s meeting.

Mr. Bishop provided an update regarding Sunrise Plastic Enterprise stating that Quiddity is awaiting the submittal of documents form Sunrise Plastic to finalize the annexation application and documents.

Mr. Bishop reported on the Global New Millenium Development, stating that Quiddity is awaiting resubmission of reviewed plans for the public and private portion of the development.

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 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 October 2024. He stated that Quiddity submitted a request to Precinct 1 Commissioner’s office to inspect and jet the storm sewer line in Sierra Ranch following the recent rain events. He stated that Harris County completed the inspection and jetting on August 5th and reported no obstructions were found.

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 Quiddity awaits an update from Harris County on the expected completion date.

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 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 reported on the Surface Water Transfer Facility Expansion, stating that Gemini Contracting Services, Inc. continues with the construction of the Ground Storage Tank and Hydro-pneumatic Tank. He recommended payment of the District’s pro-rate share of Pay Application No. 5 in the amount of $63,675. 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 payment of the District’s pro-rate share of Pay Application No. 5 in the amount of $63,675.

Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project and recommended payment of the District’s pro-rate share of pay application no. 39 to CSA Construction, Inc. in the amount of $344,932.79. 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 authorize payment of pay application no. 39 to CSA Construction, Inc. in the amount of $344,932.79.

Discussion ensued regarding signages at the Wastewater Treatment Plant (“WWTP”). The Board agreed for the engineer and attorney to speak with Greenwood Utility District regarding listing both Districts’ names on the signage now that the Surface Water Plant and the WWTP are separated.

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.

10. 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 “G.” Ms. Sears reviewed photographs of the various ponds 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 Herbicide Treatment for Pathway and Chain Link Fence in the amount of $1,328.75, a copy of which is attached hereto as Exhibit “H.”

Ms. Sears presented to and reviewed with the Board a proposal to serve Stonefield Manor Herbicide Treatment for Rip Rap areas in the Stonefield Terrace Drainage Channel in the amount of $1,328.75, a copy of which is attached hereto as Exhibit “I.”

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 (1) the proposal to serve Stonefield Manor Herbicide Treatment for Pathway and Chain Link Fence in the amount of $1,328.75, and (2) the proposal to serve Stonefield Manor Herbicide Treatment for Rip Rap areas in the Stonefield Terrace Drainage Channel in the amount of $1,328.75.

A proposal from Texas Groundworks Management, Inc. (“TGM”) 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 designate Directors McNeil and Everhart to approve the revised proposal from TGM, in an amount not exceeding $20,000.

11. Resolution Reviewing Investment Policy. Mr. Wilson presented to and reviewed with the Board the Investment Policy, a copy of which is attached hereto as Exhibit “J,” stating that the Board is required to review the Investment Policy annually. He stated that at this time there are no recommended changes and the list of qualified brokers has been updated.

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 adopt the Resolution Reviewing Investment Policy.

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 September 11, 2024.

President, Board of Directors

ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)