MINUTES OF MEETING OF BOARD OF DIRECTORS PARKWAY UTILITY DISTRICT
OCTOBER 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 for Parkway Utility District (“District”) were present, except Director Simpson, thus constituting a quorum. No directors of Greenwood Utility District were present. Also attending all or parts of the meeting were: Mr. Gary Syzek of Systems Project Management, General Manager for the District; Captain Herman Sanders of Harris County Precinct 3 Constable’s Office (“Constable”); Ms. Renee Butler of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeepers for the District; Ms. Brittni Silva of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW”), tax assessor and collector for the District; Mr. Jeffery Bishop and Mr. James McMath of Quiddity, engineer 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; 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:
Call to Order. The President called the meeting to order and proceeded with the meeting business.
1. Public Hearing on Tax Rate. 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 convene in public hearing on tax rate.
There were no comments from the public.
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 close the public hearing.
2. Adopt Order Setting Tax Rate and Levying Tax for 2025. Mr. Wilson presented to and reviewed the Order Setting Tax Rate and Levying Tax for 2025, a copy of which is attached hereto as Exhibit “B.”
Mr. Wilson stated that the District’s financial advisor recommended to keep a total tax rate of $0.69, but lowering the debt service tax rate to $0.41 and increasing the maintenance and operation tax rate to $0.28. He stated that the adjustment will lessen then burden on the District’s general operating fund and will generate excess fund to cover costs of future projects.
The Board is in consensus to table discussion until after reviewing the Water Rate Analysis.
3. Public Comments (2 minutes each). There were no comments
4. Approve the minutes of the meeting on September 10, 2025. Minutes of the regular meeting of September 10, 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.
5. Report from Best Trash. President McNeil recognized Mr. Farrar, who reviewed the District’ recycle report for January to September 2025, a copy of which is attached hereto as Exhibit “C.”
6. 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 provided updates on District Building Roof Maintenance, stating that Barriga Roofing has submitted all insurance documents and is in the process of completing repairs to the roof and facia board. He stated that he anticipates the project to be completed by the end of the week.
Mr. Syzek reported on Resilience Trail District Inspection, stating that a tour at Resilience trail was conducted on September 23 with Director McNeil, Ms. Karen Sears and Mr. Ben Collins of SWS, and the General Manager to inspect for potential trail maintenance and improvements. He reviewed photos showing areas of concern including low tree canopies that are interfering pedestrian access, eroded metal trash cans, dead trees, etc.
Mr. Syzek reported on P122 Drainage Improvement Project, stating that the dry weather pattern has allowed work to progress rapidly on the new drainage pond.
Mr. Syzek provided updates on Tidwell Trail, stating that the signage made by Baker Signs should be fabricated and installed in two weeks. He stated that SWS has been keeping up with landscaping for the area the District is responsible for. Discussion ensued regarding Harris County mowing schedule.
Mr. Syzek discussed an article regarding workers found dead in manhole after exposure to toxic gas from sewage.
7. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. The President recognized Captain Sanders, who reviewed the September Constable Reports, a copy of which are attached hereto as Exhibit “E.”
Captain Sanders reported on various activities for the month of September.
Captain Sanders stated that the Constables have been patrolling more frequently and increasing their presence, especially in anticipation of Halloween trick-or-treat traffic.
The President noted that a certified letter has been sent to the trespassers on ATV to recover cost of repair the damaged detention pond. Upon inquiry, Captain Sanders stated that he will follow up on the case and provide updates.
8. 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 September, a copy of which is attached as Exhibit “F.” Ms. Silva reported that 98.31% of the District’s 2024 taxes have been collected as of September 30, 2025.
Ms. Silva presented two checks and one wire to the Board for review and approval.
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.
9. 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.
Ms. Butler reviewed the Investment report for September with the Board.
Ms. Butler reviewed budget information and the budget comparison through August.
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 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 2,444 active connections.
Mr. Maas reviewed the bill and collections report for August 22, 2025, through September 23, 2025, with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 90.45% accountability.
Mr. Maas reviewed historical data over a 4-month average.
Mr. Maas reported no excursions at the wastewater treatment plant.
Mr. Maas reviewed the purchased water report.
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 accept the Operator’s Report.
11. Discuss Texas Commission on Environmental Quality (“TCEQ”) Letter re Proposed Agreed Order. Mr. Maas reviewed a letter from TCEQ regarding a proposed Agreed Order, a copy of which is attached hereto as Exhibit “I.”
Mr. Maas stated that three years ago, TCEQ performed an inspection at the Water Plant and noted some deficiencies, which had then been repaired/corrected. Water well capacity, Jeff: ACR, made a response, sent to TCEQ in April 2023. In Sept sent letter, still believe district is short, fine $440. Want to draft letter referencing april letter, believe dist is in compliance. Recommend against to sign the agreed order. Compiling a packet to show all documentation sent years ago proving the dist is in compliance.
Mr. Wilson: TCEQ’s point is not accurate. Do not want to create future issues in anticipation of all future projects.
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 NRF and MMIA to prepare and submit a rebuttal letter and supporting documents to TCEQ.
12. Consider for approval Merchant Agreement for electronic payments. Mr. Maas reviewed the Merchant Attestation and Amendment of Agreement and ECP Addendum Terms (“Merchant Agreement”), a copy of which is attached hereto as Exhibit “J.”
Been using AVR, have been bought out, and not on par performance. Changing billing software, need to get new credit card agreement with Chase.
Move to new company, same cost, same fees to customers. 2 things that affect, bill will look different. Everybody needs to re-sign up for auto-payment.
Post on website regarding upcoming change. Email blasts.
Wilson, recommend waiving late fees for customers due to billing system transition. Set a time frame.
10/23 last bill on AVR portal. November bill will be with new billing system. Waive nov/dec. Delinquent letter and door hangers will still be sent and hung.
The President discussed a hiccup AVR had that posted incorrect late payment notices on accounts. Upon inquiry, Mr. Maas stated that he will look into whether the account/bill corrections will be carried over to the new billing system.
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 Merchant Agreement; to authorize the operator to notify customers by posting on the District’s website and sending email blast; and to approve waiving late fees for November billing cycles.
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 “K.”
Mr. Bishop reported on Water Plant No. 2, stating that preliminary approval of the re-plat from City of Houston and Harris County have been received. He stated that Quiddity plans to record the re-plat this month and the bidding is anticipated to begin once plan approval is received. He stated that advertise for 2 weeks, but recommend 4-5 weeks given the project amount.
Anticipates bids by December meeting.
Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating that final approval from Harris County and Harris County Flood Control District have been received, with approval from City of Houston pending. He stated that bidding is anticipated to begin once plan approval is received.
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 and to approve execution of the re-plat for Water Plant No. 2.
14. Received and approve Water Rate Analysis to determine whether current rates a adequate for the production of water and wastewater services. Mr. Bishop presented to and reviewed with the Board the District’s Water Rate Analysis, a copy of which is attached hereto as Exhibit L.
Mr. Bishop reviewed the District’s various streams of income for operations and maintenance.
Mr. Bishop review various proposed rate structure adjustments and their impacts on the District’s projected revenue and operating fund reserve.
Mr. Wilson discussed the maximum tax rates the District can set without triggering a tax election.
Discussion ensued regarding potential sources of funding for future projects. Ms. Butler noted that the District has a significantly lower minimum water rate than the current market and there is a budgeted deficit for the upcoming fiscal year with the current rates. Mr. Syzek and Mr. Maas concurred.
Mr. Maas noted that the District’s sewer rate covers garbage collection and recycling rates. He stated that the current water and sewer rates are $15 and $8 (excluding garbage collection), respectively, which are significantly lower than other utility districts and are insufficient to generate adequate income for the District.
15. Review Rate Order to discuss water and waste water rates and take any necessary action. The Board is in consensus to table further discussion on water and wastewater rates to the next meeting.
16. Adopt Order Setting Tax Rate and Levying Tax for 2025 (continued). 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 2025, with a total tax rate of $0.69, consisting of $0.41 for debt service and $0.28 for maintenance and operation expenses.
17. Report from Storm Water Solutions, and take any necessary action. Ms. Sears presented to and reviewed with the Board a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “M.”
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 confined space entry inspection of flap gate in Stonefield Manor Drainage Channel in the amount of $850, a copy of which is attached hereto as Exhibit “N.”
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 proposal for confined space entry inspection of flap gate in Stonefield Manor Drainage Channel in the amount of $850.
18. Discuss proposals from Off Cinco and Infinity Services, LLC and take any necessary action. The Board reviewed website service proposals from Off Cinco and Infinity Services, LLC.
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 website service yearly review from Off Cinco.
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 October 8, 2025.
President, Board of Directors
ATTEST:
Secretary, Board of Directors