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Minutes for DRAINAGE DISTRICT

SPECIAL MEETING - November 10, 2014

BE IT REMEMBERED, that on this 10th day of November A.D., 2014, there was begun and held a SPECIAL MEETING of the Honorable Commissioners’ Court of Hidalgo County, Texas, wherein the following members thereof were present, to-wit:

HONORABLE RAMON GARCIA

HONORABLE A.C. CUELLAR, JR.

HONORABLE HECTOR "TITO" PALACIOS

HONORABLE JOE M. FLORES

HONORABLE JOSEPH PALACIOS
HIDALGO COUNTY JUDGE

COMMISSIONER, PRECINCT NO. 1

COMMISSIONER, PRECINCT NO. 2

COMMISSIONER, PRECINCT NO. 3

COMMISSIONER, PRECINCT NO. 4

and ARTURO GUAJARDO, JR., COUNTY CLERK & EX-OFFICIO CLERK OF THE COMMISSIONERS’ COURT of Hidalgo County, Texas, wherein the following proceedings were had, to-wit:

AGENDA
DRAINAGE DISTRICT 
BOARD OF DIRECTORS
November 10, 2014
1:30 P.M.
                                          

NOTICE is hereby given in accordance with Chapter 551, Texas Government Code, that a SPECIAL MEETING of the Drainage District #1 Board of Directors will be held at the Edinburg Council Chambers 415 W. University Drive, Edinburg, Hidalgo County, Texas. Discussion and possible action relating to the following business will be transacted:

 
1.
 
Roll Call

All members of the Board were counted present.
 
2.
 
Open Forum

No Open Forum discussions.
 
3.
 
Approval of Consent Agenda

The Board moved to approve the Consent Agenda.
 
4.
AI -47221
Approval of Interlocal Cooperation Agreement Between the City Of San Juan And The Hidalgo County Drainage District No. 1 for drainage improvements along Hall Acres Road by installing an overflow valve.     
 

On motion by COMMISSIONER PCT. 3, JOE M. FLORES, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR.,the Board made a UNANIMOUS vote of approval.

Vote: 5 - 0 - Unanimously

 
5.
AI -47264
Approval of Interlocal Cooperation Agreement Between Hidalgo County Irrigation District No. 1 And Hidalgo County Drainage District No. 1 as it relates to irrigation facilities located on the banks of the Rio Grande River near Penitas,TX. (Pump House)
 

On motion by COMMISSIONER PCT. 3, JOE M. FLORES, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

Vote: 5 - 0 - Unanimously

 
6.
AI -47209
A.  Requesting approval to pay Citibank $33.59 as a claim for the purchase of minutes for pre-paid phone used at Willacy County, by M&O employee(s).
  
     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 2, HECTOR “TITO” PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

B.  Requesting approval to pay invoice #97773359 in the amount of $22.00 to McCoy's as a claim; for purchase of cabinet for District's Time Clocks in shop area. (due to account being closed)

     On motion by COMMISSIONER PCT. 3, JOE M. FLORES, seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
7.
AI -47291
A.) Requesting approval to accept and approval to execute final negotiated Agreement for Professional Engineering Services with Dannenbaum Engineering Company - McAllen, L.L.C. Professional Engineers as it relates to Engineering Services required for the Hidalgo County Irrigation District No.1 (Edinburg Pump / Penitas Pump) and Levee Rehabilitation Project. Approved for negotiations by HCDD1 Board of Directors on March 25, 2014.  

     On motion by COMMISSIONER PCT. 3, JOE M. FLORES, seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

B.) Requesting approval of Work Authorization No. 1 with Dannenbaum Engineering Company - McAllen, L.L.C. in the amount of $6,234.78; to Agreement for Professional Engineering Services "Hidalgo County Irrigation District No.1 (Edinburg Pump / Penitas Pump) And Levee Rehabilitation Project". 

     On motion by COMMISSIONER PCT. 2, HECTOR “TITO” PALACIOS, seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

 C.) Requesting approval of Work Authorization No. 2 with Dannenbaum Engineering Company - McAllen, L.L.C. in the amount of $470,638.10; to Agreement for Professional Engineering Services "Hidalgo County Irrigation District No.1 (Edinburg Pump / Penitas Pump) And Levee Rehabilitation Project" as it relates to "Structural Analysis" for Edinburg Pump / Penitas Pump House.  

     On motion by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., seconded by COMMISSIONER PCT. 3, JOE M. FLORES, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

2013 BOND SERIES


D.) Requesting approval to accept and approval to execute final negotiated Agreement for Professional Engineering Services with LeFevre Engineering & Management Consulting, L.L.C. as it relates to Professional Engineering Services for Pct. 4 Rural Drainage Kenyon / Mile 17 1/2 Area Drainage Improvements. Approved for negotiations by HCDD1 Board of Directors on February 11, 2014.  

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 2, HECTOR “TITO” PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
E.) Requesting approval of Work Authorization No. 1 with LeFevre Engineering & Management Consulting, L.L.C. in the amount of $78,662.50; to Agreement for Professional Engineering Services "Pct. 4 Rural Drainage Kenyon / Mile 17 1/2 Area Drainage Improvements" as it relates to Engineering Design Services. 

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

F.) Requesting approval of Work Authorization No. 2 with LeFevre Engineering & Management Consulting, L.L.C. in the amount of $19,665.63; to Agreement for Professional Engineering Services "Pct. 4 Rural Drainage Kenyon / Mile 17 1/2 Area Drainage Improvements" as it relates to Surveying Services within project area.  

     On motion by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 – Unanimously
 
G.) Requesting approval of Work Authorization No. 3 with LeFevre Engineering & Management Consulting, L.L.C. in the amount of $3,600.00; to Agreement for Professional Engineering Services "Pct. 4 Rural Drainage Kenyon / Mile 17 1/2 Area Drainage Improvements" as it relates to Geotechnical Services within project area. 

     On motion by COMMISSIONER PCT. 2, HECTOR “TITO” PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
H.) Requesting approval of Change Order No. 2 decrease in the amount of $2,000.00 with GP7 Construction, Inc. for Construction Contract No. HCDD1-13-021-04-29A "FM 495 - Trenton Road Field Crossing".  

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
8.
AI -47275
Approval to process payment of two (2) claims to Neuhaus & Co:
A.  PO#622836 in the amount of $801.24 for purchase of incorrect filters

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 3, JOE M. FLORES, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously

B.  PO#622060 in the amount of $535.50 for increase to repairs of herbicide rig

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
9.
AI -47290
Request approval to select a Bond Underwriter for the District's 2014 Refunding Bond Series from a list of underwriters provided by the Financial Advisor.

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval to rank the underwriters from a list provided by the Financial Advisoras follows:
                           1. SAMCO
                           2. Raymond James 
                           3. BOSC.

     Vote: 5 - 0 - Unanimously

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval to negotiate with the highest ranked underwriter, SAMCO.

     Vote: 5 - 0 - Unanimously

 
10.
AI -47317
Request approval to issue manual payment on the following items after review and audit procedures have been completed:

A. Retainage Release in the amount of $38,583.84 for Texas Cordia Construction, LLC for Construction Project no. HCDD1-13-014-11-26 Alamo Expressway Drain/Border Crossing Improvements.

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS , seconded by COMMISSIONER PCT. 3, JOE M. FLORES, the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
B. Application for Payment No. 3 in the amount of $54,978.87 from GP7 Construction, Inc. for Construction Project no. HCDD1-13-021-04-29A.

     On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval.

     Vote: 5 - 0 - Unanimously
 
11.
AI -47319
Request approval for Budget Amendment from District's CIP 2008 Bond Series Fund (132) in the amount of $476,872.88 for funding of Work Authorization No. 1 in the amount of $6,234.78 and Work Authorization no. 2 in the amount of $470,638.10  from Dannenbaum Engineering Company-McAllen, L.L.C. related to Hidalgo County Irrigation District No. 1 (Edinburg Pump/Penitas Pump) and Levee Rehabilitiation Project. 
 

On motion by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., seconded by COMMISSIONER PCT. 3, JOE M. FLORES, the Board made a UNANIMOUS vote of approval.

Vote: 5 - 0 - Unanimously

 
12.
AI -47324
Request Approval of Budget Amendment from District's CIP 2013 Bond Series Fund (133) in the amount of $98,295.42 to fund budget shortfall for Construction Contract no. HCDD1-14-027-10-14 NMD Weir No. 1 w/ Foremost Paving, Inc. BOD 10-14-2014. 
 

On motion by COMMISSIONER PCT. 3, JOE M. FLORES, seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Board made a UNANIMOUS vote of approval.

Vote: 5 - 0 - Unanimously

 
13.
AI -47337
A.  Approval to rescind action taken on 3/11/14 as it relates to item 4 (AI 43483) and place Administration of the financial personnel back under the District Manager

Judge Garcia noted that the reasoning behind the decision was for transparency, avoidance of conflict of interest and independence.  Mr. Godfrey Garza explained to the Board that that there have been problems with the processing of the Drainage District, not the auditing, but because it does not work the way it is structured it was almost impossible to continue as such.  He stated that the Board has the authority to move the auditing services in another direction. Commissioner Joseph Palacios, as Liason of the Drainage District, stated that the issues are personnel issues causing a hold up on operations. Judge Garcia reminded the Board that if the problems are personnel issues, there is a Grievance Procedure in place which avoids being accused of violating anyone's due process rights and stated that policy needs to be followed. Judge Garcia mentioned that the following Item requests that only the 2013 Bond Series be audited via the Auditor's office stated that if the Auditor is going to audit, he should be auditing the entire aspect of the department.  Mr. Garza replied that he had no issue with that and would like for the auditor to audit all  the accounts of the District. He would like for all bills go the the Auditor for process of payment. Mr. Eufracio, County Auditor, stated that he would have no problem with the decision, but he would need to be given the authority to supervise the employees.  The Board agreed that the current  Districts financial staff be assigned to the Auditor.

B.  Approval to engage the services of the Hidalgo County Auditor's Department for the financial auditing of the District's 2013 Bond Series through the District's Interlocal Agreement dated 9/23/14

     On motion by COMMISSIONER PCT.4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Board made a UNANIMOUS vote of approval of Item A to assign all current Drainage Districts financial personnel, as well as Ms. Lora Briones to the County Auditor, Mr. Eufracio and Item B for auditing to include all other Drainage District accounts and audit them the same as done for the County.

     Vote: 5 - 0 - Unanimously
 
14.
 
Closed Session:
Board of Directors may go into Closed Session pursuant to Chapter 551, Texas Government Code, Sections 551.071 & 551.072 to discuss the following:

NO ACTION taken on this Item.
 
A.
 
Real Estate Acquisition
 
B.
 
Pending and/or Potential Litigation

NO ACTION taken on Items 14.A and 14.B.
 
15.
 
Open Session:
 
A.
 
Real Estate Acquisition
 
B.
 
Pending and/or Potential Litigation

NO ACTION taken Items 15.A and 15.B.
 
16.
 
Closed Session:
Board of Directors may reconvene into Closed Session for the discussion regarding the agenda items listed

NO ACTION taken on this Item.
 
17.
 
Open Session:
Board of Directors may reconvene into Open Session for the discussion regarding the agenda items listed

NO ACTION taken on this Item.
 
18.
 
Adjourn
 

On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 3, JOE M. FLORES, the Board made a UNANIMOUS vote of approval.

Vote: 5 - 0 - Unanimously

There being no further business to come before said

Court, the meetings of the Commissioners' Court and the

Drainage District #1 Board are now hereby adjourned.


Dated this the 10th day of November, 2014

ARTURO GUAJARDO, JR., County Clerk
Hidalgo County, Texas


By: ______________________________
Virginia Jones, Deputy


I, ARTURO GUAJARDO, JR., County Clerk attest that this is an accurate accounting of a proceeding of the Commissioners’ Court held on November 10, 2014.

Signed this 10th day of November 2014




ATTEST:
ARTURO GUAJARDO, JR.
County Clerk and Ex-Officio Clerk
Of the Commissioners’ Court of
Hidalgo County


By: ____________________________
(Seal) Virginia Jones, Deputy