MINUTES WEST HARRIS COUNTY REGIONAL WATER AUTHORITY November 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 November, 2014, at the Fry Road Municipal Utility District Administration Building, 20111 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 Gary Struzick Eric Hansen Mark Janneck Michael Thornhill Karla Cannon John Nelson President Vice President Secretary Assistant Vice President Assistant Secretary Director Director Director Director and all of the above were present, thus constituting a quorum. Also present at the meeting were Bryan Thomas of Severn Trent Environmental Services ( Severn Trent ); Wayne Ahrens and Melinda Silva of Dannenbaum Engineering Corporation ( DEC ); Mary Jarmon of Myrtle Cruz, Inc.; and Alex Garcia, 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 October 8, 2014, meeting. Following discussion, Director Struzick moved to approve the minutes of the October 8, 2014, meetings, as revised. The motion was seconded by Director Nelson and passed by unanimous vote. QUESTIONS, FEEDBACK FROM THE PUBLIC There was no discussion on this matter. CUSTOMER APPEALS No appeals were made or presented. 516585
TOWN HALL MEETINGS, WEBSITE, WATER CONSERVATION PROGRAM AND TRAILERS, ATTENDANCE AT CONFERENCES AND MEMBERSHIP IN ORGANIZATIONS, NEWSLETTERS AND MAILOUTS Mr. Ahrens reported that the Townhall meeting was held on November 10, 2014. ENGINEERING MATTERS 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 2014 through September is approximately 88.63% of that for last year at this date. Mr. Ahrens reported that approximately 24.39 million gallons per day ( MGD ) of surface water was purchased from the City during October, 2014. Mr. Ahrens then reported that a representative from DEC attended the Coastal Water Authority ( CWA ) meeting on November 12, 2014. Mr. Ahrens also reported that the Texas Water Development Board s ( TWDB ) Director Bruun and key staff met jointly with the Authorities and the City of Houston (the City ) today, to discuss funding options for the Northeast Water Purification Plant ( NEWPP ) expansion. Mr. Ahrens reported that DEC is working on the automated meter reading pilot program. Mr. Ahrens then reported that DEC is in the process of updating the Authority GIS to include maintenance tracking and other improvements. Mr. Ahrens then requested that the Board authorize payment in the amount of $289,446.00 to the Harris Galveston Subsidence District ( HGSD ) for the Aggregated Water Well Permit Fee for the permit term from December 1, 2014, to November 30, 2015. He stated that the check is reflected on the bookkeeper s report for approval. REQUESTS FOR SURFACE WATER CONVERSION No requests were submitted. REGION H WATER PLANNING GROUP ( REGION H ) 2015. Mr. Ahrens reported that the next Region H meeting is scheduled for February 4, 516585-2-
REIMBURSEMENTS TO UTILITY DISTRICTS No requests were submitted. WATER SUPPLY CONTRACT WITH THE CITY Mr. Ahrens and Mr. Garcia reported on negotiations with the City regarding the NEWPP expansion. JOINT WATER LINE PROJECTS There was no discussion on this matter. GROUNDWATER REDUCTION PLAN ( GRP ) Mr. Ahrens reported that the Program Manager submitted the amended GRP to the HGSD on July 10, 2014. CREDITS FOR ALTERNATIVE WATER SUPPLY USE There was no discussion on this matter. CONSTRUCTION PROJECTS Mr. Ahrens stated that he had nothing new to report on the construction projects. ENGINEERING SERVICES CONTRACTS AND WORK AUTHORIZATIONS Mr. Ahrens reported that IDS, the engineer for Contract 49, expects to submit plans for signatures the week of November 24, 2014. Mr. Ahrens reported that Costello, Inc., the engineer for Contract 33, has completed 30% plans for the segment of line along Greenhouse Road between Tuckerton Road and Towne Lake Parkway. Mr. Ahrens then reported that Lockwood, Andrews & Newnam, Inc., the engineer for Contract 34, expects to submit plans to the Texas Commission on Environmental Quality for approval the week of December 1, 2014. Mr. Ahrens reported that Brown & Gay Engineers, Inc., the engineer for Contract 22D, expects to submit 30% complete plans by December 22, 2014. Mr. Ahrens recommended that the Board approve the agreement with Constellation Energy for the participation in the 30-minute demand response program. Following discussion, Director Weppler moved to approve the agreement with 516585-3-
Constellation Energy. unanimously. Director Cannon seconded the motion, which carried Mr. Ahrens requested that the Board approve work authorization no. 21 to V&A Consulting Engineers, Inc. in the amount of $18,891.00 to perform corrosion engineering services for Contract 22D. Following review and discussion, Director Struzick moved to approve work authorization no. 21 to V&A Consulting Engineers, Inc. Director Weppler seconded the motion, which passed unanimously. Mr. Ahrens requested that the Board approve supplement no. 1 to work authorization no. 8 to Cotton Surveying Company to amend the termination date of work from October 31, 2014, to March 31, 2015. Following review and discussion, Director Nelson moved to approve supplement no. 1 to work authorization no. 8 to Cotton Surveying Company. Director Cannon seconded the motion, which passed by a vote of seven for the motion with Directors Postle and Weppler abstaining. Mr. Ahrens then reported he approved the following work authorizations: (1) work authorization no. 10 for Lupher, LLC in the amount of $14,900.00 to provide surveying services for three easements; (2) work authorization no. 7 for Fox Appraisal Company, LLC in the amount of $7,200.00 to prepare summary appraisal reports for three easements; (3) work authorization no. 45 for Title Houston Holdings Ltd. d/b/a Abstract Services of Houston in the amount of $1,600.00 to provide abstracting services for 16 easements; and (4) work authorization no. 31 for Rapid Research in the amount of $1,050.00 to provide abstracting services for three easements. ENVIRONMENTAL PERMITTING, COMPLIANCE, MITIGATION AND RELATED AGREEMENTS There was no discussion on this matter. REALTY INTEREST ACQUISITION AND CONVEYANCE, INCLUDING ACCEPT, CONVEY, MODIFY, OR RELEASE EASEMENTS, EASEMENT AGREEMENTS, ASSIGNMENTS OF EASEMENTS, AND DEEDS Mr. Ahrens requested that the Board approve the Right-of Entry Agreement from Exxon Mobil Pipeline along the second source corridor area between IH-45 and IH-59. Following discussion, Director Hansen moved to approve the Right-of Entry Agreement from Exxon Mobil Pipeline. Director Janneck seconded the motion, which carried unanimously. The Board considered approval of the Temporary Construction Easement from Westfield Homeowners Association ( Westfield ) for Contract 49 and a side-letter with Westfield. Following review and discussion, Director Postle moved to approve the 516585-4-
Temporary Construction Easement from Westfield and the side-letter with Westfield. Director Janneck seconded the motion, which carried unanimously. The Board then considered approval of Water Line Easement from KB Home Holdings, Inc. for Parcel 49-3. Following review and discussion, Director Weppler moved to approve the Water Line Easement from KB Home Holdings, Inc. Director Cannon seconded the motion, which carried unanimously. ENCROACHMENTS OF EASEMENTS OR OTHER REALTY INTERESTS, INCLUDING ACCEPT, CONVEY, MODIFY, OR RELEASE ENCROACHMENT AGREEMENTS Mr. Ahrens reported on the status of an encroachment agreement and amended easement documentation expected from Colwell Electric Company, Incorporated. Following discussion, Director Weppler moved, and Director Cannon seconded, to proceed to obtain the encroachment agreement and the amended easement documentation, which motion carried unanimously. LEGAL SERVICES AGREEMENT The Board considered engaging a law firm in connection with certain legal matters related to the supplement to the Water Supply Contract with the City of Houston for the expansion to the Northeast Water Purification Plant (the Matter ). Discussion ensued regarding the escrow provisions of the draft supplement. Following discussion, Director Weppler moved to authorize Director Parker to select a law firm for the Matter and approve and execute an engagement agreement with the firm. Director Cannon seconded the motion, which carried unanimously. LEGAL CONFLICTS WAIVER Mr. Garcia reminded the Board that ABHR represents Harris County Municipal Utility District No. 374 ( MUD 374 ) and the Authority. He reviewed legal conflicts waivers with respect to the preparation and review of certain easements from MUD 374. Following review and discussion, Director Postle moved to approve the legal conflicts waivers. Director Janneck seconded the motion, which carried unanimously. BOOKKEEPER S REPORT Ms. Jarmon 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. 8356 in the amount of $801.98 payable to Mark Janneck, check no. 8357 in the amount of $3,960.00 payable to Brown & Kornegay, LLP, check no. 8358 in the amount of $14,900.00 payable to Lupher, LLC, check no. 8359 in the amount of $1,050.00 payable to Rapid Research, Inc., check no. 516585-5-
8360 in the amount of $820.56 payable to Eric Hansen, and check no. 1040 in the amount of $24,936.79 payable to Norton Rose Fulbright. Following review and discussion, Director Hansen moved to approve the bookkeeper s report, the above-described checks, the disbursements reflected in the bookkeeper s report, and the investment report. Director Struzick seconded the motion, which carried by a vote of eight for the motion, with Director Postle abstaining. Ms. Jarmon reported that a check in the amount of $11,600.00 was received from Travelers for the cathodic protection rectifier. PENALTIES AND INTEREST FOR DELINQUENT FEES/CUSTOMER APPEALS REGARDING PAYMENT, SERVICE, OR OTHER MATTERS Mr. Garcia reviewed the Settlement Agreement with Karen Rosales F/K/A Karen Schulte and Schulte Enterprises, Ltd. (the Settlement Agreement ) Following review and discussion, Director Weppler moved to approve the Settlement Agreement. Director Janneck seconded the motion, which carried unanimously. Ms. Jarmon reported that Loc Dac Nguyen owes delinquent pumpage fees. Upon a motion made by Director Hansen and seconded by Director Thornhill, the Board voted unanimously to authorize Blank Rome LLP to pursue collection of the matter. OPERATOR S REPORT Mr. Thomas presented copies of the operator s report and reviewed it with the Board, a copy of which is attached. Mr. Thomas reported on maintenance and repairs at the Pump Station, the valve survey and scheduled repairs. AUTHORIZE RENEWAL OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC LETTER OF CREDIT ( LOC ) The Board considered renewal of the CenterPoint Energy Houston Electric, LLC Letter of Credit with Central Bank. Following discussion, Director Postle moved to authorize renewal of the Letter of Credit with Central Bank. Director Cannon seconded the motion, which carried unanimously. ADOPT RESOLUTION AUTHORIZING CAPITAL ADVANCE AND REIMBURSEMENT PROCEDURE Mr. Garcia reviewed with the Board the Resolution Authorizing Capital Advance and Reimbursement Procedure ( Resolution ). Following review and discussion, 516585-6-
Director Weppler moved that the Board approve the Resolution. Director Nelson seconded the motion, which carried unanimously. 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 did not convene in executive session. There being no further matters to come before the Authority, the meeting was adjourned. (SEAL) Secretary, Board of Directors 516585-7-
LIST OF ATTACHMENTS TO MINUTES Minutes Page list of persons present at the November 12, 2014, meeting...1 engineer s report...2 bookkeeper s report...6 operator s report...6 516585-8-