MINUTES WEST HARRIS COUNTY REGIONAL WATER AUTHORITY. February 12, 2014
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1 MINUTES WEST HARRIS COUNTY REGIONAL WATER AUTHORITY February 12, 2014 The Board of Directors (the Board ) of the West Harris County Regional Water Authority (the Authority ) met in regular session, open to the public, on the 12th day of February, 2014, at the Fry Road Municipal Utility District Administration Building, Saums Road, Katy, Texas 77449, inside the boundaries of the Authority, and the roll was called of the members of the Board: Bruce Parker Larry Weppler Douglas (Cam) Postle Stacey L. Burnett Eric Hansen Mark Janneck Gary Struzick Karla Cannon John Nelson President Vice President Secretary Assistant Vice President Assistant Secretary Director Director Director Director and all of the above were present, except Director Nelson, thus constituting a quorum. Also present at the meeting were Brent Fields of Severn Trent Environmental Services ( Severn Trent ); Wayne Ahrens and Melinda Silva of Dannenbaum Engineering Corporation ( DEC ); Kim Shelnutt of Myrtle Cruz, Inc.; Barbara Payne of Payne Communications; Terrell Palmer of First Southwest Company; and Alex Garcia, Alia Vinson and Linda Sotirake of Allen Boone Humphries Robinson LLP ( ABHR ). Also present at the meeting were those persons included on the attached list. MINUTES OF PREVIOUS MEETING The Board reviewed the minutes of the January 8, 2014, meeting. Following discussion, Director Struzick moved to approve the minutes of the January 8, 2014, meeting, as submitted. The motion was seconded by Director Weppler and passed by unanimous vote. QUESTIONS AND FEEDBACK FROM THE PUBLIC In response to a question from a resident of Harris County Municipal Utility District No. 374 regarding projected rate schedules and updated website information, Director Parker stated that the website is being updated and the Authority discusses proposed rate increases at its townhall meetings
2 In response to a question from a resident of West Harris County Municipal Utility District No. 2 regarding the director appointment process, Mr. Garcia explained the process and timing of appointments. WEBSITE AND CONFERENCES Ms. Payne reported that the website update is almost complete. Ms. Payne reported that she met with the Katy Independent School District teachers and distributed new water conservation materials. She also reported that Alief Independent School District has received conservation materials. Dr. Billings, a director with Chelford One Municipal Utility District, thanked Ms. Payne for her efforts in coordinating with the Alief Independent School District. In response to a question from Director Hansen regarding the new water conservation trailer being taken to Amarillo for a water conservation symposium, Ms. Payne stated that the weather was too bad to travel to Amarillo. AUTHORIZE REDEMPTION OF BONDS Mr. Palmer reviewed the timetable and cost savings for redemption and defeasance of the Authority s Water System Revenue Bonds, Series 2003 (the Bonds ). The Board then considered approving the letter of instruction in connection with the redemption and defeasance of the Bonds. Following discussion, Director Burnett moved to approve the letter of instruction. Director Postle seconded the motion, which carried unanimously. ENGINEER S REPORT Mr. Ahrens presented an engineer s report, a copy of which is attached, and reviewed it with the Board. Mr. Ahrens reviewed with the Board a monthly pumpage report. He pointed out that the pumpage for 2013 through December is approximately 87.4% of that for last year at this date. Mr. Ahrens reported that approximately million gallons per day ( MGD ) of surface water was purchased from the City during January. Mr. Ahrens reported that a representative from DEC attended the Coastal Water Authority ( CWA ) meeting on February 12, He stated that the CWA received the permit from the U. S. Army Corps of Engineers for the Luce Bayou project. Mr. Ahrens reported that the Program Manager submitted the fifth request for release of funds from the Texas Water Development Board s escrow account on January 31,
3 Mr. Ahrens reported that an Open House at the Authority s Pump Station will be held on February 22, Mr. Ahrens reported that the Program Management staff is in the process of determining the easements that must be acquired for the Second Source Pipeline project and the 2025 CIP projects. Mr. Ahrens then reported that the Program Management staff is in the process of updating the Authority GIS to include the status of easements being acquired within the Authority s groundwater reduction plan area. Mr. Ahrens also reported that the Program Management staff is working with the Authority operators to include maintenance data in the Authority GIS. Mr. Ahrens reported that the Program Management staff is working on the Texas Commission on Environmental Quality case-by-case generation permit to allow participation in the ERCOT 30-minute response program. Mr. Ahrens then reported that the Program Management staff is revising the Groundwater Reduction Plan as required by the Harris Galveston Subsidence District ( HGSD ). Mr. Ahrens also reported that Directors Parker, Hansen, and Struzick, Mr. Garcia, Ms. Vinson, the Program Manager and Deputy Program Manager attended the City of Houston (the City ) Advisory Committee meeting held on February 7, He stated that the next City Advisory Committee meeting is scheduled for April, Mr. Ahrens reviewed a letter, dated February 4, 2014, from the Program Manager to the Harris County Flood District requesting that the Authority be allowed to install a pressure monitoring antenna within an existing Authority easement in the Brays Bayou right-of-way. Mr. Ahrens reported that a Joint Facilities Committee meeting was held with the North Fort Bend Water Authority on January 10, Mr. Ahrens also reported that the North Fort Bend Water Authority sent a notice regarding the increased cost of the Joint Facility Bellaire Pump Station. Mr. Ahrens reported that the sale of 100,000 gallons of Type A credits to Almeda United Methodist Church in the amount of $ and 2,380,000 gallons of Type A credits to W&P Development Corp. in the amount of $12, have been finalized
4 REGION H WATER PLANNING GROUP ( REGION H ) Mr. Ahrens reported that a representative from DEC attended a Region H meeting on January 21, 2014, to discuss the process of ranking projects. Mr. Ahrens then reported that a representative from DEC attended a Region H meeting on February 5, He stated that Region H discussed the expedited water management strategies and the prioritization process Mr. Ahrens reported that the next Region H meeting is scheduled for May 7, REIMBURSEMENT TO DISTRICTS There was no discussion on this matter. STATUS OF CONSTRUCTION PROJECTS Mr. Ahrens provided an update regarding the status of Contracts 39 and 40. He noted that due to a conflict with a storm sewer crossing, Contract 39 could be delayed beyond the required completion date. PAY ESTIMATES AND CHANGE ORDERS Mr. Ahrens recommended approval of Pay Estimate No. 6 in the amount of $865, for Contract 39 and Pay Estimate No. 7 in the amount of $852, for Contract 40. Upon a motion made by Director Struzick and seconded by Director Burnett, the Board voted unanimously to approve the above mentioned pay estimates, as recommended. ENGINEERING SERVICES CONTRACTS AND WORK AUTHORIZATIONS Mr. Ahrens reported that IDS Engineering Group submitted 90% plans for review on December 2, 2013, for Contract 49. Mr. Ahrens then reported that Costello, Inc. was issued the Notice to Proceed with the design of Contract 33, and Lockwood, Andrews & Newnam, Inc. was issued the Notice to Proceed with the design of Contract 34 on January 16, Mr. Ahrens then requested that the Board approve Amendment No. 4 to the contract with V&A Consulting Engineers, Inc. and Addendum No. 3 to the contract with Houston Title Holdings Ltd. d/b/a/ Abstract Services of Houston. Director Cannon moved to approve Amendment No. 4 and Addendum No. 3. Director Weppler seconded the motion, which carried unanimously
5 Mr. Ahrens then requested that the Board approve the following work authorizations: (1) work authorization no. 18 for V&A Consulting Engineers, Inc. in the amount of $19, to provide corrosion engineering services for Contract 33; (2) work authorization no. 19 for V&A Consulting Engineers, Inc. in the amount of $27, to provide corrosion engineering services for Contract 34; (3) work authorization no. 23 for Rapid Research, Inc. in the amount of $ to provide a title report for one parcel; (4) work authorization no. 24 for Rapid Research, Inc. in the amount of $ to provide a title report for one parcel; (5) work authorization no. 30 for Houston Title Holdings Ltd. d/b/a/ Abstract Services of Houston in the amount of $ to provide a title report for one parcel; (6) work authorization no. 31 for Houston Title Holdings Ltd. d/b/a/ Abstract Services of Houston in the amount of $12, to provide a title reports for 34 parcels; (7) work authorization no. 4 for Integra Realty Resources-Houston, LLC in the amount of $3, to provide appraisal services; (8) work authorization no. 1 for Fox Appraisal Company, LLC in the amount of $3, to provide a market study for proposed easements for Contract 49; (8) work authorization no. 2 for Fox Appraisal Company, LLC in the amount of $3, to provide a market study for proposed easements for Contract 33; and (10) work authorization no. 3 for Fox Appraisal Company, LLC in the amount of $3, to provide a market study for proposed easements for Contract 34. Following discussion, Director Weppler moved to approve the following work authorizations: work authorization no. 18 for V&A Consulting Engineers, Inc. in the amount of $19,750.00; (2) work authorization no. 19 for V&A Consulting Engineers, Inc. in the amount of $27,864.00; (3) work authorization no. 23 for Rapid Research, Inc. in the amount of $325.00; (4) work authorization no. 24 for Rapid Research, Inc. in the amount of $ (5) work authorization no. 30 for Houston Title Holdings Ltd. d/b/a/ Abstract Services of Houston in the amount of $325.00; (6) work authorization no. 31 for Houston Title Holdings Ltd. d/b/a/ Abstract services of Houston in the amount of $12,850.00; (7) work authorization no. 4 for Integra Realty Resources-Houston, LLC in the amount of $3,250.00; (8) work authorization no. 1 for Fox Appraisal Company, LLC in the amount of $3,800.00; (8) work authorization no. 2 for Fox Appraisal Company, LLC in the amount of $3,800.00; and (10) work authorization no. 3 for Fox Appraisal Company, LLC in the amount of $3, Director Janneck seconded the motion, which carried unanimously. AUTHORIZE PREPARATION OF GROUNDWATER PUMPAGE REPORT DUE TO HGSD UNDER SECTION 6.2(B) OF SUBSIDENCE DISTRICT RULES Mr. Ahrens requested that the Board authorize preparation of the 2013 groundwater pumpage report due to the HGSD under Section 6.2(b) of Subsidence District Rules. Following discussion Director Janneck moved to authorize preparation of groundwater pumpage report due to the HGSD under Section 6.2(b) of Subsidence District Rules. Director Cannon seconded the motion, which carried unanimously
6 REALTY INTEREST ACQUISITION AND CONVEYANCE, INCLUDING ACCEPT, CONVEY, MODIFY, OR RELEASE EASEMENTS, EASEMENT AGREEMENTS, ASSIGNMENTS OF EASEMENTS, AND DEEDS Mr. Garcia stated that ABHR represents the Authority and Mayde Creek Municipal Utility District ( Mayde Creek ). He requested that the Board approve a legal conflicts waiver with respect to a Water Line and Meter Easement from Mayde Creek. Director Postle moved to approve the legal conflicts waiver. Director Struzick seconded the motion, which carried unanimously. Ms. Vinson then requested that the Board accept Water Line and Meter Easements from Ricewood Municipal Utility District and Mayde Creek, a Water Line Easement from Cypress-Fairbanks Independent School District, Amendments of Easements from Harris County Municipal Utility District No. 284, Mark Lum, Warren Clayton Burton, Wayne Lapham, P. John Burke, Jr., and George W. Richards. Following discussion, Director Postle moved to accept Water Line and Meter Easements from Ricewood Municipal Utility District and Mayde Creek, a Water Line Easement from Cypress-Fairbanks Independent School District, Amendments of Easements from Harris County Municipal Utility District No. 284, Mark Lum, Warren Clayton Burton, Wayne Lapham, P. John Burke, Jr., and George W. Richards. Director Struzick seconded the motion, which carried unanimously Mr. Ahrens reported that the Program Management staff is working with the property owners along the Second Source East-West alignment to define all over and across easements. ENCROACHMENTS OF EASEMENTS OR OTHER REALTY INTERESTS, INCLUDING ACCEPT, CONVEY, MODIFY, OR RELEASE ENCROACHMENT AGREEMENTS Mr. Ahrens reported that the City has requested an encroachment permit for the Exxon pipeline crossings of the City right-of-way. PENALTIES AND INTEREST FOR DELINQUENT FEES/CUSTOMER APPEALS REGARDING PAYMENT, SERVICE, OR OTHER MATTERS There was no discussion on this matter. BOOKKEEPER S REPORT Ms. Shelnutt reviewed the bookkeeper s report, the investment report, a budget comparison, and the disbursements in the bookkeeper s report submitted for the Authority s review. She then reviewed check no in the amount of $5, payable to JLM Financial I Ltd, check no in the amount of $21, payable to Tran System, and check no in the amount of $ payable to Precision Printing
7 Mr. Ahrens pointed out the check no payable to CenterPoint should be paid from the operating fund. Following review and discussion, Director Burnett moved to approve the bookkeeper s report, the above-described checks, the disbursements reflected in the bookkeeper s report, and the investment report. Director Hansen seconded the motion, which carried by a vote of seven for the motion, with Director Postle abstaining. ASSOCIATION OF WATER BOARD DIRECTORS ( AWBD ) WINTER CONFERENCE, REIMBURSEMENT OF ELIGIBLE EXPENSES, AND ATTENDANCE AT SUMMER CONFERENCE The Board considered approving reimbursement to the directors for expenses incurred in attending the AWBD winter conference and authorizing attendance of its members at the AWBD summer conference. After discussion, Director Cannon moved to approve reimbursement of the AWBD winter conference expenses and to authorize attendance of the Board members at the AWBD summer conference. The motion was seconded by Director Janneck and carried by unanimous vote. OPERATOR S REPORT Mr. Fields presented copies of the operator s report and reviewed it with the Board, a copy of which is attached. Mr. Fields reported on maintenance and repairs at the Pump Station. He noted that a vehicle hit the cathodic protection station in the Bridgeland/Blackhorse developments area and that V&A Consulting Engineers would be making the repairs. Discussion ensued regarding repairs of the gate valve at the Shell station at the northwest corner of Greenhouse Road and Clay Road. CONVENE EXECUTIVE SESSION TO DISCUSS THE PURCHASE, EXCHANGE, LEASE, OR VALUE OF REAL PROPERTY AND CONSULTATION WITH ATTORNEY REGARDING ANY PENDING OR CONTEMPLATED LITIGATION OR SETTLEMENT OFFERS The Board concurred to convene in executive session pursuant to Section , Texas Government Code, to conduct a private consultation with its attorney regarding contemplated litigation pertaining to United Equities, Inc. The Board entered executive session at 7:13 p.m. RE-CONVENE IN OPEN SESSION AND AUTHORIZE APPROPRIATE ACTION At 7:34 p.m., the Board then reconvened in open session. Director Hansen moved to authorize Director Parker to authorize (i) Charles McFarland of Joyce, McFarland + McFarland LLP to take any legal action necessary to prevent the
8 unauthorized use of the Authority s storm sewer line and (ii) Director Parker to approve and execute a letter agreement with United Equities, Inc. There being no further matters to come before the Authority, the meeting was adjourned. (SEAL) Secretary, Board of Directors
9 LIST OF ATTACHMENTS TO MINUTES Minutes Page list of persons present at the February 12, 2014, meeting...1 engineer s report...2 bookkeeper s report...7 operator s report
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