Meeting Minutes – January 10, 2024

MINUTES OF MEETING OF BOARD OF DIRECTORS
PARKWAY UTILITY DISTRICT
January 10, 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, 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, except Director Woods, thus constituting a quorum. Also attending all or parts of the meeting were: Ms. Judy Osborn 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 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, Mr. Charles Graham, and Ms. Meghan Tricarico of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; and Mr. Jamal Singleton of Direct Waste Solutions; Sgt. Landon McDonald of Harris County Precinct 3 Constable’s Office; 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. Approve the minutes of the meeting on December 13, 2023 and the special meeting of December 22, 2023. Minutes of the regular meeting of December 13, 2023 and the special meeting of December 22, 2023 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. Report from Direct Waste Solutions. Mr. Singleton presented and reviewed the report. He stated there were five recycling days averaging 2 tons per week.

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 as Exhibit “B.”

Mr. Syzek provided an update regarding the water conservation sponsorship stating the District received 12,768,000 gallons of credit.

Mr. Syzek provided an update regarding the Parkway Forest and Hidden Meadow drainage improvements.

Mr. Syzek provided an update regarding the Tidwell sanitary sewer repairs.

Mr. Syzek provided an update regarding the Greenwood UD groundwater plant no. 2 construction.

Mr. Syzek reported on the joint wastewater treatment plant construction and start up status.

5. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Sgt. McDonald reviewed the security report for the month of December, a copy of which is attached hereto as Exhibit “C.” He reviewed statistics for various crimes throughout the District.

Ms. Sears stated a locked safe was located in the detention pond. Sgt. McDonald stated he will recover and locate the owner based off of the serial number.
Sgt. McDonald discussed the possibility of implementing a bike patrol until along the trails.

6. 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 November a copy of which is attached as Exhibit “D.” Ms. Yanez reported that 15.13% of the District’s 2023 taxes have been collected as of December 31, 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 Simpson, 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 and to authorize the termination of delinquent accounts.

7. Adopt Order Authorizing Exemptions from Taxation. Mr. Wilson presented and reviewed the Order Authorizing Exemptions from Taxation, a copy of which is attached hereto as Exhibit “E.” 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 adopt the order.

8. Adopt Resolution Authorizing Additional Penalty on Taxes, Penalty on interest remaining delinquent on April 1st and July 1st. Mr. Wilson presented and reviewed the Resolution Authorizing Additional Penalty on Delinquent Taxes, a copy of which is attached hereto as Exhibit “G.” Upon motion by Director Simpson, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to adopt the resolution.

9. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Osborn reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “G.”

Ms. Osborn reviewed the various fund balances.

Ms. Osborn presented checks and deposit refunds for Board approval. Discussion ensued regarding the Texcon reimbursement payment.

Ms. Osborn reviewed the schedule of investments through current day.

Ms. Osborn reviewed the Investment report for December with the Board.

Ms. Osborn reported that the next debt service payment is not due until March 1, 2024.

Ms. Osborn reviewed budget information and the budget comparison through December.

Ms. Osborn reported on the Water surface facility with Greenwood and reviewed Parkway Utility District’s portion.

Upon motion by Director Simpson, seconded by Director Pogue, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the bookkeeper’s report.

10. 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 November through December with the Board.

Mr. Maas reviewed the production and sales report and stated the District has 92.13% 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 discussed leak repairs done in the District.

Mr. Maas discussed freeze precautions with the Board.

Mr. Maas reported a notice of violation was issued from the TCEQ regarding chemical monitoring. He stated the violation was issued due to a delay of payment and confirmed that testing was completed and the results were normal. Mr. Maas stated the violation letter needs to be posted at the District admin building and on the District’s website for 30 days. He requested Board authorization to allow the Bookkeeper to pay any unpaid balances in full to keep the account up to date.

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 and to authorize the bookkeeper to pay the outstanding chemical lab balance in full to the TCEQ.

11. 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 mobilization will take place next week.

Mr. Bishop stated he is working on compiling the lead service line inventory of the public and private water system and submit the lead service inventory to TCEQ

Mr. Bishop provided a progress update regarding Water Plant No. 2.

Mr. Bishop reported on the Surface Water Transfer Facility stating the facility is online and operational.

Mr. Bishop reported on the Surface Water Transfer Facility Expansion stating mobilization should occur at the end of the month.

Mr. Bishop provided an update regarding the Wastewater Treatment Plant Expansion project and recommended payment of pay application no. 32. 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 authorize payment of pay application no. 32 to Greenwood Utility District.

Mr. Bishop discussed the Wastewater Treatment Plant Clearing, Grubbing, and Detention project and recommends authorizing change order nos. 3 and 4, final payment, and acceptance of 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 change order nos. 3 and 4, final payment to Texcon Developments, Inc. and acceptance of the project.

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 Engineer’s Report.

12. 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 presented a proposal regarding regrade and repair around the two outfalls. She stated to repair and stabilize with rip rap would cost $27,922 and to concrete pour slope paving would cost $60,950. Discussion ensued. Ms. Sears stated she will provide pictures at next month’s meeting displaying the two various solutions and how it ages over time.

13. Report on Eminent Domain Filing. Mr. Wilson stated the Eminent Domain filing is completed annual and Board authorizing is required to complete the filing on behalf of the District. 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 authorizing filing.

14. Matters pertaining to 2024 Directors Election, including Resolution Authorizing Publication of Notice of Intent not to use an Electronic Voting System. Mr. Wilson presented and reviewed the Resolution Authorizing Publication of Notice of Intent not to use an Electronic Voting System, a copy of which is attached hereto as Exhibit “K.” Mr. Wilson stated that Harris County will not be offering Joint Election services with local government entities and recommends approving the resolution to allow the District to use paper ballots. Discussion ensued. 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 resolution.

Mr. Abnor spoke at this time regarding House Bill 614 which provides protection for homeowners that did not previously exist.

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 February 14, 2024.

President, Board of Directors

ATTEST:

Secretary, Board of Directors

(DISTRICT SEAL)