MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
FEBRUARY 12, 2025
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, except Directors Woods and Simpson, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Renee Butler of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeepers for the District; Ms. Brittany Silva of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW”), tax assessor and collector for the District; Mr. Jeffery Bishop of Quiddity, engineer 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. Charles Graham, Jr. 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”); Mr. John Howell of The GMS Group, financial advisor for the District; Mr. Ken Farrar of Best Trash (“Best Trash”); Mr. Dan McDonald of McDonald & Wessendorff Insurance; and Mr. Abner Lyons, District Liaison for House Representative Harold V. Dutton, Jr.
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. Approve the minutes of the meeting on January 8, 2025. Minutes of the regular meeting of January 8, 2025, were previously distributed to the Board and were presented for consideration and approval. 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 approve the minutes.
3. Renew District Insurance (Expires March 29, 2025). Mr. McDonald presented to and reviewed with the Board an Insurance Renewal Proposal (“Proposal”), a copy of which is attached hereto as Exhibit “B.” He stated that the premium has increased to $31,876.00 due to the increase in value from $11,250,000 to $11,750,000 per the ERV. He stated that there are no other changes from the previous year.
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 Proposal.
4. Resolution Authorizing Indemnification of Directors. Mr. Graham presented to and reviewed with the Board the Resolution Authorizing Indemnification of Directors (“Resolution”), a copy of which is attached hereto as Exhibit “C.” 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 Resolution.
5. Review Bids and Award Sale of $9,945,000 Combination Unlimited Tax and Revenue Bonds, Series 2025. Mr. Howell reviewed with the Board bids of $9,945,000 Combination Unlimited Tax and Revenue Bonds, Series 2025 (“Bonds”) and recommended awarding the sale of the Bonds to Raymond James & Associates, Inc., Dallas, TX. 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 award the sale of the Bonds to Raymond James & Associates, Inc., Dallas, TX.
6. Approve Order Authorizing $9,945,000 Combination Unlimited Tax and Revenue Bonds, Series 2025. Mr. Graham reviewed with the Board the Order Authorizing $9,945,000 Combination Unlimited Tax and Revenue Bonds, Series 2025 (“Bond Order”). Upon motion by Director Everhart, seconded by Director Pogue, after full discussion and the question being put to the Board, the Board voted unanimously (1) to adopt the Bond Order; (2) to approve all documents relating to the bond sale; and (3) to authorize attorney and financial advisor to take all necessary actions to deliver the Bonds to the initial purchaser.
7. Report from Best Trash. President McNeil recognized Mr. Farrar, who reported that the months of January and February have been quiet. He reported a customer complaint was received regarding garbage not getting picked up, and a crew was sent the next day to pick up the garbage.
The President stated that she received two customer complaints that no response was received when customers called the Best Trash phone number. Mr. Farrar stated that customers can also reach out to a representative via email, which is on Best Trash’s website. He stated that he will reflect the Board’s concerns to the management.
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 “D.”
Mr. Syzek reported on Sierra Ranch Storm Sewer Precinct 1 Project, stating that utility staking is currently underway in the Sierra Ranch neighborhood. He stated that this project precedes the actual storm sewer upgrades proposed by Harris County.
Mr. Syzek reported on Stonefield Villas Detention Pond Project, stating utility staking is also underway in Stonefield Terrace near the proposed storm drainage facility.
Mr. Syzek provided an update on Gardenia Mist Dawson Hill Storm Sewer failure and Street Sinkage, stating that Harris County Precinct 1 has been contracted to address the failed storm sewer located at the corner of Gardenia Mist and Dawson Hill which creates pedestrian hazards due to a sidewalk failure.
Mr. Syzek provided an update on Sunrise Trail Tree Planting and Irrigation, stating that the operator located a landscaping contract to replace live oak trees near the bench areas and to install irrigation to keep those trees watered during the summer months.
Mr. Maas reviewed with the Board a quote for live oak replacement and irrigation from Hauser Land Services in the amount of $21,034.06. The Board is in consensus to defer discussion to the next meeting.
Mr. Syzek reported on Deep Valley Street Repairs, stating that the failed storm sewer and street sinkage repairs have begun at Deep Valley and Enchanted Path. He stated that further repairs caused a road closure along Deep Valley near Monahan School.
Mr. Syzek discussed an article regarding “forever chemicals” in drinking water. Mr. Maas stated that no significant amount of contamination has been discovered at the District’s facilities and no new regulations have been implemented that may affect the current operations.
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 January, a copy of which is attached hereto as Exhibit “E.”
Cpt. Ganey reported various incidents within the past month.
Cpt. Ganey reported that he received a copy of the police report regarding the All-Terrain Vehicle (“ATV”) trespassing event and he is working on releasing the full police report to the attorney.
Mr. Graham stated that he hasn’t received any response after sending the demand letter. Discussion ensued regarding measures to track down and hold the ATV drivers accountable for trespassing. Discussion ensued.
10. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Silva presented to and reviewed with the Board the Tax Assessor-Collector’s Report for January, a copy of which is attached as Exhibit “F.” Ms. Silva reported that 62.58% of the District’s 2024 taxes have been collected as of January 31, 2025.
Ms. Silva presented nine checks and two wires to the Board for review and approval.
Ms. Silva reviewed the delinquent tax report.
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.
11. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Butler reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “G.”
Ms. Butler reviewed the various fund balances.
Ms. Butler presented checks and deposit refunds for Board approval.
Ms. Butler reviewed the schedule of investments through current day. She stated that the next bond payment due in March will be processed at the end of this month.
Ms. Butler reviewed the Investment report for January with the Board.
Ms. Butler reviewed budget information and the budget comparison through January.
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 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 “H.”
Mr. Maas reported Parkway currently has 2,441 active connections.
Mr. Maas reviewed the bill and collections report for December 23, 2024, through January 23, 2025, with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 91.11% accountability.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas reported no excursion at the wastewater treatment plant.
Mr. Maas reviewed the TCEQ Exit Interview Form regarding potential violations and/or records requested, stating that the operators reported to Texas Commission of Environmental Quality (“TCEQ”) 2 years ago that the District is building a new plant and the District received alleged violations due to administrative reasons. He stated that TCEQ has been notified the District is also selling more bonds and the operators are working with TCEQ to provide all necessary documents to resolve the alleged violations.
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.
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 “I.”
Mr. Bishop stated Sunrise Plastic Enterprise (“Sunrise”) is working to provide the necessary documentation to proceed with the annexation process and site plans to receive water services.
Mr. Bishop reported on Global New Millennium Development, stating that the developer received Harris County approvals for the road extension. He stated that the developer obtained the necessary County approvals for the site development, but plat recordation remains outstanding. He stated that Quiddity released the conditional approval.
Mr. Bishop reported on Global New Millennium Lift Station and Force Main (Lift Station No. 8), stating that plans have been submitted and approved by TCEQ. He stated that Quiddity is addressing comments from the City of Houston and Harris County.
Mr. Bishop reported on 9911 CE King Parkway Development (Mulch Matters), stating that the attorney is preparing a list of documents and a potential timeline for the developer’s use in planning for consideration of the development. He stated that the attorney is also working to contact City of Houston regarding additional surface water availability.
Mr. Bishop reported on the Sierra Ranch and Stonefield Terrace Section 3 Drainage Improvement Project, stating that the project includes adding inlets next to existing ones on Sierra Ranch streets, upsizing storm sewer lines, and acquiring the landscape reserve in the Villas subdivision to create a small detention pond, which the District will maintain. He stated that Precise Services, Inc. is mobilizing this week.
Mr. Bishop reported on the Tidwell Road Basin and Storm Sewer Improvement Project, stating that Precise Services, Inc. continues to address the punch list and expects the project to be completed this month.
Mr. Bishop reported on Parkway Forest Storm Sewer and 9122-00-00 Channel Improvements Project, stating that the project bid results have been received by Harris County, and ECON Development, Inc. is the low bidder being recommended for the project. He stated that Parkway’s share of the utility relocations is approximately $40,000. He stated that the project is expected to begin early this year, with Parkway’s share of the utility relocations being requested following the Commissioner’s Court awarding the project on January 9th.
Mr. Bishop reported on Water Plant No. 2, stating that Quiddity addressed external review comments and resubmitted for final approval.
Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating that Quiddity is proceeding with design phase services.
Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating that stating that Gemini Contracting Services, Inc. completed startups of the hydro-pneumatic tank and ground storage tank. He stated that the Booster Pump start-up is complete and the facility is online. He stated that the final close documents is expected to be submitted next month.
Mr. Bishop reported on the Wastewater Treatment Plant Expansion, stating that CSA Construction, Inc. completed the project. He recommended approval of the District’s pro-rata share of Final Pay Application No. 42 in the amount of $279,029.20, and Change Order No. 4, a credit of $126,321.00.
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 District’s pro-rata share of Final Pay Application No. 42 in the amount of $279,029.20 and to approve Change Order No. 4 and Acceptance of Project.
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 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 “J.” 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 No Motorized Vehicles and Trail Rules Signage to Serve Stonefield Manor and Sunrise Pines Detention Ponds in the amount of $4,830 (“Signage Proposal”).
Ms. Sears reviewed a proposal for Sunrise Pines Detention Pond Repair Washout Areas below 4 Backslope Interceptor Outfall Pipes in the amount of $14,395 (“Washout Repair Proposal”).
Ms. Sears reviewed a proposal for Stonefield Manor Detention Pond sediment buildup removal from in front of two main outfalls in the amount of $15,215 (“Sediment Removal Proposal”).
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 approve the Signage Proposal.
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 Washout Repair Proposal.
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 approve the Sediment Removal Proposal.
15. Approve Audit Management Representation Letter re Bonds, Series 2025. Mr. Graham presented to and reviewed with the Board the Audit Management Representation Letter regarding $9,945,000 Combination Unlimited Tax and Revenue Bonds, Series 2025 (“Representation Letter”), a copy of which is attached here to as Exhibit “K.” 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 approve the Representation Letter.
16. Public Comments (2 minutes each) (Continued). The President recognized Mr. Lyons, who stated that House Representative Dutton would like to invite two representatives of the District to connect with the Chief of Staff in Austin.
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 March 12, 2025.
President, Board of Directors
ATTEST:
Secretary, Board of Directors