MINUTES OF MEETING OF BOARD OF DIRECTORS
PARKWAY UTILITY DISTRICT
SEPTEMBER 9, 2026
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 members of the Board for Parkway Utility District (“District”) were present, thus constituting a quorum. Also attending all or parts of the meeting were: Mr. Gary Syzek of Systems Project Management, General Manager for the District; Ms. Veronica Hernandez of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeepers for the District; Ms. Britni Silva of Assessments of the Southwest (“Tax Assessor-Collector” or “ASW”), tax assessor and collector for the District; Mr. Greg East of Perdue Brandon Fielder Collins Mott, delinquent tax attorney for the District; Mr. Jeffrey Bishop and Mr. James McMath of Quiddity, engineers for the District; Mr. Josh Maas of M. Marlon Ivy & Associates (“MMIA”), operator for the District; Mr. Don Wallin of Storm Water Solutions (“SWS”); Mr. Reginald Wilson, Mr. Charles Graham, Jr., and Ms. Jessica Leung of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Mr. John Howell of The GMS Group, L.L.C., financial advisor for the District; and Ms. Cassandra Dallas and Ms. Liliana Diaz, residents of the District.
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 August 12, 2026. Minutes of the regular meeting of August 12, 2026, were previously distributed to the Board and were presented for consideration and approval. 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 minutes.
3. Consider Financial Advisor’s recommendation for the 2026 tax rate. Mr. Howell presented to and reviewed with the Board tax rate analysis for 2026, a copy of which is attached hereto as Exhibit “B.”
Mr. Howell said that the District will authorize the tax assessor to publish a notice of public hearing for the 2026 tax rate. He said that the Board may only set a tax rate that is equal to or lower than the published tax rate.
Mr. Howell recommended publishing a total tax rate of $0.76 consisting of $0.23 for Operations & Maintenance and $0.53 for Debt Service. He said that taxes paid by the average homestead would be approximately $48 more than last year.
Mr. Howell stated that the District will be levying a tax against approximately $545 million of taxable value this year, which is a decrease from last year’s value of $582 million.
Mr. Howell compared the District’s current and pro-forma cash balances and discussed various future expenditures. He said that he anticipates a lower tax revenue due to the loss of property value.
Mr. Wilson said that the recommendation is for the tax rate publication and further discussions may be conducted at the public hearing at the next meeting. He noted that the financial advisor’s recommendation is conservative and recommended the Board to publish the recommended tax rate.
Mr. Bishop discussed various future projects and annexations and the long term impact on the District’s value. Extensive discussion ensued. Upon inquiry, Mr. Howell said that the maximum tax rate the District can publish without triggering a roll back is $0.79, which means the average homestead will pay approximately $90 more in taxes than last year.
4. Adopt Order Designating Officer to Calculate & Publish Tax Rate. 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 adopt the Order Designating Officer to Calculate & Publish Tax Rate), a copy of which is attached hereto as Exhibit “C” and to publish a total tax rate of $0.79 per $100 assessed valuation ($0.53 for debt and $0.26 for maintenance and operations.
5. Report from Best Trash, discuss amount of trash for the District, discuss amount of recycling for the District, and take any necessary action. There were no reports.
6. Public comments (2 minutes each) (continued). Ms. Diaz thanked the Board for planting trees behind her house, which she believes prevented more flooding since 2001 and Hurricane Harvey. She asked if more trees can be planted at the new pond. Mr. Wilson said that the District only maintains the walking trail but does not own the land. He said that Harris County Flood Control District (“HCFCD”) is the only entity with the authority to plant any trees at the pond. Mr. Wallin said that the public can contact HCFCD by telephone or submit an inquiry on their website.
7. Report from General Manager, authorization of any necessary maintenance, authorizing of purchasing District materials, including but not limited to District signs, and take any necessary action. President McNeil recognized Mr. Syzek, who presented to and reviewed with the Board the District’s General Manager’s Report, a copy is attached hereto as Exhibit “D.”
Mr. Syzek reported on Sierra Ranch Pond and P122 Project status, stating that the channel is completely dry now. He reviewed the September drought map.
Mr. Syzek discussed possible future Resilience Trail extension with the park bond that were approved in the 2018 election.
Mr. Syzek provided updates on Resilience Trail Fenceline Maintenance.
Mr. Syzek provided updates regarding Lift Station No. 1 construction. He said that the crew reported very minimal customer concerns.
Mr. Syzek reported on Exxon Station Storm Water Failure Repair, stating that a significant repair was recently completed.
Mr. Syzek discussed an article from the Texas Water Development Board regarding AI Water Demand Concerns.
8. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. There were no reports.
9. Receive and approve Tax Assessor and Collector’s Report including status of delinquent tax accounts and authorizing the payment of invoices presented, approving tax refunds, and approve moving of accounts to uncollectible roll. Ms. Silva presented to and reviewed with the Board the Tax Assessor-Collector’s Report for August, a copy of which is attached as Exhibit “E.”
Ms. Silva reported that 97.23% of the District’s 2025 taxes have been collected as of August 31, 2026.
Ms. Silva presented 10 checks and two wires to the Board for review and approval.
Ms. Silva recognized Mr. East, who reviewed the Delinquent Tax Report, a copy of which is attached hereto as Exhibit “F.” He said that Ms. Dallas has agreed to enter into a payment plan, if the Board approves. He requested the Board’s authorization to tag eligible accounts for water termination.
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; to approve the payment plan, as discussed; and to authorize the delinquent tax attorney to tag eligible accounts for water termination.
10. Receive and approve Bookkeeper’s Report, authorize payment of bills, amend budget, if appropriate, Investment Report, and take any necessary action. Ms. Hernandez reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “G.”
Ms. Hernandez reviewed the various fund balances.
Ms. Hernandez presented checks and deposit refunds for Board approval.
Ms. Hernandez reviewed the schedule of investments through current day.
Ms. Hernandez reviewed the Investment report for August with the Board.
Ms. Hernandez reviewed the District’s cash information.
Ms. Hernandez reviewed budget information and the budget comparison.
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.
11. Receive and approve Operator’s Report, including action on customer matters, and system repairs and maintenance, authorization of any necessary maintenance, and action to adjust accounts and/or terminate delinquent accounts or send accounts to collection. 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 July 23, 2026, through, August 24, 2026, with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 80.99% 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 purchased water report.
Mr. Maas reviewed with the Board water analysis and treatment recommendations from Water System Engineering (“WSE”) in the amount of $191,600. He said that the cause of red water is because the well has been under-utilized now that the District uses more surface water. He said that the District has surplus funds from the Lift Station project to perform the recommended treatments, which is anticipated to be a one-time project. Mr. Wilson said that projects over $100,000 are typically performed by the engineers, however, since this issue is classified as an emergency that involves drinking water quality, he recommended the Board to move forward with the recommended treatments. Discussion ensued regarding increasing the well usage and financing the recommended treatments.
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 treatment recommendations from WSE in the amount of $191,600.
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.
12. Discuss amending Rate Order and take any necessary actions. Mr. Wilson said that the Board decided not to participate in the Household Hazardous Waste Program, so sewer rate adjustment is not required. No action was taken at this time.
13. Receive and approve Engineer’s Report, take any necessary action concerning on-going construction within the District, consider pay estimates, authorize additional construction bid advertisement if necessary, and if timely, award contracts on additional District Improvements, consider any change orders, consider capacity commitments, consider approval of job assignment proposal(s); discuss engineering services, discuss annexation agreements, take any necessary action in connection with engineering matters. Mr. Bishop presented to and reviewed with the
Board the Engineer’s Report, a copy of which is attached as Exhibit “I.”
Mr. Bishop reported on Global New Millenium Lift Station and Force Main (Lift Station No. 8). He stated that nine bids were received and he recommended awarding the project to the lowest bidder, Northtex Construction, LLC in the amount of $3,019,332.90.
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 awarding the project to the lowest bidder, Northtex Construction, LLC in the amount of $3,019,332.90.
Mr. Bishop reported on the 40-acre Hornberger Tracts, stating that the annexation and agreement agreements are being circulated for execution. He said that Quiddity plans to proceed with the annexation process once all necessary legal documents are received.
Mr. Bishop reported on 9025 Pineland Road, stating that Quiddity is proceeding with the annexation process and plan to submit the annexation consent application to the City of Houston. Mr. Wilson said that the documents were received today and the next step is to approve the consent application.
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 authorize Quiddity to submit the annexation consent application to the City of Houston.
Mr. Bishop reported on Water Plant No. 2. He said that the contractor, Zeuscon, is constructing the concrete foundation of the ground storage tank, and the well driller, Weisinger, is continuing to complete the water well. He recommended approval of Pay Estimate No. 4 in the amount of $434,520.
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 Pay Estimate No. 4 to Zeuscon in the amount of $434,520.
Mr. Bishop reported on Lift Station No. 1 Rehabilitation, stating that IECON, Inc., continues to complete the wet well. He recommended approval of Pay Estimate No. 1 in the amount of $387,858.25.
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 Pay Estimate No. 1 to IECON, Inc in the amount of $387,858.25.
Mr. Bishop provided updates on the Texas Water Development Board Water Supply Infrastructure Grant. He said that a significant amount of applications were submitted for the available funding of $1 billion.
Mr. Bishop reported on Lift Stations No. 4 and 5 Inspection, stating that the inspections of Lift Stations No. 1, 2, 3, 6 and 7 were completed as part of the District’s capital improvement plan (“CIP”). He requested the Board’s authorization to proceed with inspections of Lift Stations No. 4 and 5.
Mr. Bishop requested the Board’s authorization to proceed with inspection of Water Plant No. 1 as part of the District’s CIP.
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 Quiddity to proceed with inspections of Lift Stations No. 4 and 5.
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 Quiddity to proceed with inspection of Water Plant No. 1 (hydro tank).
Upon motion by Director Pogue, seconded by Director Simpson, 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 to discuss maintenance of District facilities, authorization of any necessary maintenance, and take any necessary action. Mr. Wallin presented to and reviewed with the Board Storm Water Solutions Report, a copy of which is attached hereto as Exhibit “J.”
Mr. Wallin reviewed photographs of the various ponds throughout the District and discussed services completed and upcoming services needed.
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 14, 2026.
President, Board of Directors
ATTEST:
Secretary, Board of Directors