Meeting Minutes – January 8, 2025

MINUTES OF MEETING OF BOARD OF DIRECTORS
PARKWAY UTILITY DISTRICT
JANUARY 8, 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 Director Woods, 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. Rhonda Gideon 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; and
  • Mr. Ken Farrar of Best Trash (“Best Trash”).

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:

1. Call to Order.
The President called the meeting to order and proceeded with the meeting business.

2. Public Comments (2 minutes each).
There were no comments.

3. Approve the minutes of the meeting on December 11, 2024.
Minutes of the regular meeting of December 11, 2024, were previously distributed to the Board and were presented for consideration and approval. 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 minutes.

4. Report from Best Trash.
President McNeil recognized Mr. Farrar, who stated that a customer left a note on the trash can, but the crew mistook it as trash and removed it. He stated that Best Trash addressed the issue, replaced the trash can, and advised the customer to refrain from leaving notes on trash cans without informing the crew.

The President stated that a resident called Best Trash and didn’t receive a call back. Mr. Farrar stated that he would look into the incident.

5. Report from General Manager.
President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy of which is attached hereto as Exhibit “B.”

  • Mr. Syzek presented to and reviewed with the Board a quote for planting four 30-gallon live oak trees with an irrigation system and water tap along Sunrise Trail in the amount of $4,417.
  • Mr. Syzek provided status on Tidwell Basin New Walking Trail, stating that the trail is completed and is in use. He stated that winter rye grass has been planted and seems to grow well with the warmer temperatures.
  • Mr. Syzek reported on Harris County Storm Sewer Manhole repair, stating that the storm sewer issue located at Gardenia Mist and Dawson Hill in Sunrise Pines will be forwarded to Harris County.
  • Mr. Syzek provided an update on Storm Sewer Failure and Street Sinkage, stating that repair is ongoing at the sinkage at Deep Valley and Enchanted Path.
  • Mr. Syzek reported on Stonefield Liquor Water Leak, stating that the business has had two previous leaks due to theft of the backflow device and malicious vandalism. He stated that the business owner is requesting leniency due to another leak, which has been repaired.

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 the operator to repair water line leakage at Tidwell Plaza.

Mr. Syzek discussed Water Fluoridation and reviewed the District’s Drinking Water Quality Report.

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 quote for planting four 30-gallon live oak trees with an irrigation system and water tap along Sunrise Trail in the amount of $4,417.

6. Approve Order Adopting and Authorizing Official Notice of Sale and Bid Form, Authorizing Distribution Thereof and of a Preliminary Official Statement, Authorizing Publication of Notice of Sale, and other matters related to sale and issuance of the District’s Unlimited Tax Bonds, Series 2025.
Mr. Howell presented to and reviewed with the Board Notice of Sale and Preliminary Official Statement for the issuance of the District’s Unlimited Tax Bonds, Series 2025 (“2025 Bonds”), and the cash flow sheet.

Mr. Howell stated that the Texas Commission on Environmental Quality (“TCEQ”) approved the sale of the District’s bonds in February 2023. He stated that the District issued the 1st batch of bonds in May 2023, and the District is ready to sell the 2nd batch of bonds for the remainder amount of $9,945,000.

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 Order Adopting and Authorizing Official Notice of Sale and Bid Form, Authorizing Distribution Thereof and of a Preliminary Official Statement, Authorizing Publication of Notice of Sale, and other matters related to sale and issuance of the District’s Unlimited Tax Bonds, Series 2025, a copy of which is attached hereto as Exhibit “C.”

7. 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 December, a copy of which is attached hereto as Exhibit “D.”

Cpt. Ganey reported various incidents within the past month.

Discussion ensued regarding the All-Terrain Vehicle (“ATV”) trespassing incident. Mr. Graham stated that NRF is awaiting the police report to send along with the demand letter. Director McNeil stated that the residents were driving ATVs along the walking trail and around the neighborhood, which poses safety issues. Director Everhart noted that the residents have also been driving the ATVs at night when visibility is low.

8. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills.
Ms. Gideon presented to and reviewed with the Board the Tax Assessor-Collector’s Report for November, a copy of which is attached as Exhibit “E.” Ms. Gideon reported that 13.51% of the District’s 2024 taxes have been collected as of December 31, 2024.

Ms. Gideon presented two checks and two wires to the Board for review and approval.

Ms. Gideon reviewed the delinquent tax report.

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.

9. Adopt Order Authorizing Exemptions from Taxation.
Mr. Graham presented to and reviewed with the Board the Order Authorizing Exemptions from Taxation, a copy of which is attached hereto as Exhibit “F.” 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 Order Authorizing Exemptions from Taxation.

10. Adopt Resolution Authorizing Additional Penalty on Taxes, Penalty and Interest remaining delinquent on April 1st (personal property) and July 1st (other property).
Mr. Graham presented to and reviewed with the Board the Resolution Authorizing Additional Penalty on Taxes, Penalty and Interest remaining delinquent on April 1st and July 1st, 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 approve the Resolution Authorizing Additional Penalty on Taxes, Penalty and Interest remaining delinquent on April 1st and July 1st.

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

Discussion ensued regarding amending the budget for the fiscal year ending December 31, 2025, to include a trail system maintenance budget in the amount of $40,000.

Ms. Butler reviewed the various fund balances.

Ms. Hernandez presented checks and deposit refunds for Board approval.

Ms. Butler reviewed the schedule of investments through the current day. She stated that the next bond payment is due in March.

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

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

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 and to approve amending the budget for the fiscal year ending December 31, 2025, as discussed.

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 “I.”

  • Mr. Maas reported Parkway currently has 2,441 active connections.
  • Mr. Maas reviewed the bill and collections report for November 22, 2024, through December 23, 2024, with the Board.
  • Mr. Maas reviewed the production and sales report and stated the District has 97.36% accountability.
  • Mr. Maas reviewed historical data over a 4-month average.
  • Mr. Maas reported one excursion at the wastewater treatment plant.

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 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 “J.”

  • 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 only remaining item for the extension of Tidwell Road is for the developer to receive Harris County approvals. He stated that the developer obtained the necessary County approvals for the site development, but plat recordation remains outstanding. He stated that the plat cannot be recorded until the County approves the Tidwell Road Extension design. He stated that Quiddity is awaiting receipt of Tidwell Road Extension’s County approval from the developer’s engineer to proceed with the conditional plan approval of site development authorized by the Board at the last meeting.
  • 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 Quiddity met with the property owner and is proceeding with preparing a list of action items and documents needed from the owner to proceed with a development and annexation agreement. He stated that the attorney will be contacting the 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 Harris County held a pre-construction meeting on December 19th, and Precise Services, Inc. plans to mobilize this month.
  • 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 is currently addressing external review comments. 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 that Quiddity is proceeding with design phase services.
  • Mr. Bishop reported on the Surface Water Transfer Facility Expansion, stating that Gemini Contracting Services, Inc. completed startups of the hydro-pneumatic tank and ground storage tank but awaits components to the additional booster pump to complete its startup and finish the project. He stated that the parts have been ordered, but an estimated time of delivery has not been provided.
  • Mr. Bishop reported on the Wastewater Treatment Plant Expansion, stating that CSA Construction, Inc. completed the project and is working to have their final close-out documents submitted. He stated that he anticipates the Districts to issue final payment at the next meeting.

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.

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 “K.” Ms. Sears reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.

Ms. Sears reported Sunrise Pines outfall washouts, stating that SWS will move forward with the proposal to address the washout issues. She stated that the District can consider installing concrete pipes to avoid similar issues in the future.

Discussion ensued regarding signage for Sunrise Pines and Stonefield Manor detention ponds.

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 12, 2025.

President, Board of Directors
ATTEST:
Secretary, Board of Directors