Volume 7, No. 8 • August 2014
4410 Fairway Boulevard • Wichita Falls, TX 76308 • P: 940.692.2211 • F: 940.692.2214 www.nthba.com
General Membership Meeting August 7, 2014 Kemp Center for the Arts 1300 Lamar 11:30AM Henry Florsheim President/CEO Wichita Falls Chamber of Commerce
Dates to Remember • August 19, 2014, 5:30 - 7:00PM, Let’s Get Acquainted! - For new members and members who have recently replaced a primary member. Watch for your invitation in the mail. • September 4, 2014 GM Meeting - David Graf, Wichita County Extension Agent • September 25, 2014 Annual Golf Tournament • October 2, 2014 GM Meeting - Guest Speaker Gene Lantrip, TAB Area II Caucus Vice President Installation of 2014/2015 Officers & Directors • November 12, 2014 GM Meeting • November 20, 2014 Builder & Sub-Contractor meeting 5:30-8:30 at the Good Times Party Barn. The program will be Introduction to High Performance Building. Atmos Energy will be preparing a catfish dinner with all the trimmings. • December 11, 2014 Annual Christmas Party All members are encouraged to attend any and all events & meetings conducted by TAB and NAHB. Information can be found at www.texasbuilders.org and www.nahb.org.
New Members Bishop Realtor Group............Ashton Gustafson
Welcome!
Renewals
Charles Barr Homes.........................Charles Barr Dennis Company Homes.................Alan Hinson Door Systems of WF............................Jay Bitsche Energy Cut......................................Ed Mawson, Sr. Guarantee Title....................................Eric Nelson First National Bank of WF..........Wayne Pharries Harmon & Holcomb Homes......Eddie Holcomb Luz Lerma Construction......................Luz Lerma OK Concrete..................................David Litteken Shoops’ Texas Termite......................David Shoop Vic & James Paint Center..................Bruce Jones American National Bank....................Bill Franklin Joe Wood Construction..................Danny Wood Lankmark Title Company..................Cindy David R.J. Wachsman Homes..............Randy Wachsman Stone Lake LLC...............................Bill McGregor
Thanks for Renewing!
August Birthdays Mason Adams........................................................02 R.J. Wachsman.......................................................07 Jean Taylor..............................................................14 Kenneth Burross..................................................19 Sharon Tucker........................................................20 Stan Mountain.......................................................23 Wayne Mansur......................................................23 Eric Nelson............................................................29
Happy Birthday! 2
From the President Dear Fellow Members, Our staff attended the 2014 Sunbelt Builders Show along with the Texas Association of Builders Summer Meetings at the Marriott Resort in San Antonio. Attendees from our association were, Vice President - John Harmon, Executive Officer - Teri Gibson, State Director - Jose Garcia, and myself. The Builders Show was a great success, there were more than 150 vendors displaying at the show, of which 72 were new. There were a wide variety of products from insurance coverage to software to every building product imaginable. The next Sunbelt Show will be at the Gaylord Texan, in Grapevine, at the end of July 2015. Please see Teri for details. I have the honor of serving on the TAB Finance Committee. The Association is on track for its current budget, and probably will end the year a little better than expected. John Harmon is heading our water task force for our association, he will be forthcoming with an update on the TAB Water Task Force meeting, and an update from the State of Texas Water Task Force Meetings. Texas is in a severe drought, which affects each and everyone of us in the building industry. Please say a big Thank-You to John. He has spent countless hours being involved, and keeping our NTHBA members up to date on this matter. We all want to congratulate our State Director, Jose Garcia. He has applied for entry to the TAB for Lifetime Director, this takes a minimum of 7 years as a State Director to apply. Few in our mist have put in as much time for our association as Jose. Remember what we are all about, if you don’t like something, then get involved to make a change. Thanks to all our members who take their time to be active in our association, we appreciate all that you do.
Best regards, Barney Brock NTHBA President
Calendar of Events General Membership............................................August 7, 2014 Meeting...............................................................................11:30AM Housing Hall.........................................................August 12, 2014 of Honor Meeting............................................................10:00AM Publications & Communications......................August 12, 2014 Committee Meeting........................................................11:00AM Parade of Homes &............................................August 13, 2014 Special Events Committee Meeting.............................10:00AM Government Affairs............................................August 14, 2014 Committee Meeting........................................................11:00AM Budgets & By-Laws.............................................August 19, 2014 Committee Meeting..........................................................9:15AM Let’s Get Acquainted!.........................................August 19, 2014 (NTHBA Office)......................................................5:30 - 7:00PM Board of Directors.............................................August 20, 2014 Meeting...............................................................................11:00AM
2013 /2014 Officers & Directors President - Barney Brock Vice President - John Harmon Associate Vice President - Johnny McClane Treasurer - Martin Litteken Secretary - Tim Sawyer Immediate Past President - Steven Hinson Builder Directors David Bedingfield - 1yr Steven Klasse - 1yr Bobby Rowland - 2yr Troy Thompson - 2yr
Assoicate Directors Randy Schaffner - 1yr Sharon Tucker - 2yr
State Director - Jose Garcia Alternate State Director - Steven Hinson Life Director - Chuck Dennis Executive Vice President - Teri Gibson
Meet Your Members HERRING BANK Herring Bank Mortgage is a direct lending residential home loan department with in house underwriting for Herring Bank. We offer a full suite of mortgage programs; which include, but are not limited to FHA, Conventional, VA, USDA, and Jumbo. We have excellent customer service and approval ratings shown by our 5 star Lending Tree Remember and Zillow onlineto reviews, as well as our A+ rating Always do Business with Association Members! by the Better Business Bureau and 5 star Bauer Financial Rating. BRYAN WAGGONER We strive to build upon our 115 year legacy each and every day! Let us earn your business and show you how easy the home buying experience should be and build a relationship for a 3907 Kell BoulevarG ‡ WLFKLWD )DOOV ‡ Texas 76308 lifetime. Herring Bank Mortgage is a member of the FDIC, an (940) 691-3641 Equal Housing Lender and our Herring Bank Mortgage’s Continued on pg 12 )D[ ‡ National Mortgage Licensing System and Registration number is E-Mail bryanl@waggonercarpetone.com 415783. Herring Bank started in Vernon,Texas in 1899 and continues to operate as a local community bank with numerous branches Commercial Services throughout Texas, Oklahoma and Colorado. While the bank is John Thompson primarily owned by the family of its founder, Col. C.T. Herring, Mike Sharp Continues on page 4
3301 Kell Blvd., Wichita Falls, TX 76308
Mark Miller
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the bank has local bank directors, bank staff and shareholders that live and work in the communities they proudly serve. Through local leadership and ownership, Herring Bank has created a legacy of helping customers with their financial needs for over 100 years. Herring Bank offers a full line of consumer and commercial banking services to fit each and every customer’s individual needs. Come see your local Herring Bank team at one of our 13 convenient branches today!
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ABSOLUTE POOLS Absolute Pools is owned and operated by Jason Huchton and Darrell Charles. We are both college graduates with a common vision to build a company based on good old-fashion customer service. We have an extensive background in the pool industry. We are not like your ordinary pool contractor. We worked in the pool industry for several years before starting this company. Continues on page 7
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Facts on the Water Rate Increase By Darron Leiker Wichita Falls City Manager I want to clearly state the facts that recently led the City to propose a water rate increase. The Water Fund is operated as a standalone business or enterprise, meaning that the only revenues we have to operate and maintain three reservoirs, two state-of-art water treatment plants, pumping stations and hundreds of miles of pipelines are from the charges on your water bills. The General Fund (or property tax fund) does not support the Water Fund or vice versa. We do not use the Water Fund revenues to pay for streets, police, fire services, parks, MPEC, etc. As a result of this ongoing record-breaking drought, we have seen our water revenues fall by 45%. Yes, this is a result of conservation, which has obviously been required to help us survive this drought, and we appreciate all of the valiant efforts of the community in this regard. However, we must still maintain and pay for a large water treatment and delivery system, whether we sell one drop of water or not. We have held off increasing water rates during this drought as long as possible (to account for reduced consumption), but we cannot wait any longer because all of our Water System Reserve Funds are depleted. We have had to use these reserves (over $4 million) during the last year to pay for normal operating costs of the Water/Sewer System. We have also deferred over $3 million of normal routine water/sewer line replacement projects during this time. We still have a backlog of $65 million in water lines and $45 million worth of sewer lines that have been identified as needing replaced. Leaky or busted water lines cost us millions of gallons of water annually. You might say: “With most businesses, if their revenues are down they will simply cut their expenses by a like amount to make up this difference. Why can’t the City do this?� Simply put, we are not like a normal business. Almost all of the operating costs of the Water System are FIXED at the same amount and cannot be reduced when we sell less water. For example, we have annual debt service payments for previous water system improvement projects that remain the same regardless of how much water we sell. We must Continues on page 7
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Continue to pray for our members’ health, families, and businesses as well as our armed forces, our country, our country’s leaders, and rain. 5
Five students receive scholarships From the North Texas Home Builders Association
WINDOWS, DOORS AND MORE!
522 Beverly Drive Wichita Falls, Texas 76309 61% /2*2 2/1/< SGI 30
723-1436
Scholarships were presented to five recipients at the July General membership Luncheon of the North Texas Home Builders Association held Thursday, July 10, at the Kemp Center for the Arts. Scholarship Committee Chairman Doug McCulloch said the Alwaysprogram Remember to do Business Association Members! scholarship was established in 2010 when the with North Texas Home Builders Association saw an opportunity to help students who BRYAN WAGGONER are interested in the building or construction industry reach their educational goals. 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308 “The members of the North Texas Home Builders Association believe this scholarship program not only benefits our industry but also the Texoma Community by bringing more young people into the building profession. “Since it was established in 2010 our members have graciously supported the scholarship fund through many fund raising events sponsored by the NTHBA. With great pride we are happy to say to date we have given more than $43,000 in scholarships.� This year’s recipients are Abigail Lam, Austin Daniel, Bryce Tucker, Edgar Gonzales, and Mindy Schroeder. &
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Abigail Lam Abigail Lam is a 2014 graduate of Wichita Falls High School. She had a grade point average of 4.788 on a 4.0 scale. She was president of the Key Club, senior class representative of Student Council, vice president of Spanish Club, and vice president of National Honor Society. Outside of school, Lam is active in her church Bible study, leading a weekly children’s Bible study for 4th-6th graders. She also volunteers monthly at Faith Mission and twice a year for Christmas In Action. As a Pink Darling volunteer, she has worked more than 500 hours at URHCS. Lam will be studying finance at the University of Texas at Austin with a goal of becoming a loan officer and serving the North Texas area builders in their financing needs. She is no stranger to the building industry, with her father being a third-generation builder.
NMLS: 463255
www.snbt.net
Austin Daniel Austin Daniel is 2014 graduate from Electra High School, where he maintained a 3.0 grade point average with dual credits in college courses. He was active in football, baseball and track throughout his high school years. Outside of high school, he enjoys playing the bass guitar for the song service at the Rock Crossing Cowboy Church. He also is helping his church remodel their facilities. Daniel will be studying at Midwestern State University this fall. Eventually he hopes to transfer to Texas Tech University to earn his degree in structural engineering. He has received hands-on experience working with his uncle who is a successful general contractor and owner of Electra Construction Company and his father, Loyd, who is the job superintendent. Following graduation from college, Daniel plans to return Wichita Falls and be a builder. Martin Litteken, Jr., P.E.
Bryce Tucker Bryce Tucker currently attends Midwestern State University studying mechanical engineering. He carries a 4.0 grade point average taking a full schedule at MSU while managing the family farming responsibilities once done by his late father.
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2406 Kell Boulevard Wichita Falls, Texas 76309-5326 Phone: (940) 322-6450 Fax: (940) 723-6006
(940)763-2265
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meet a myriad of unfunded federal and state mandates, such as the number of plant operators that must be on site at the plants 24 hours per day, 7 days per week, and 365 days per year.These operators ensure that water quality and safety standards are met, regardless of how much water is moving through the system. We also must continue to maintain and repair water/sewer lines and other system infrastructure even in times when water sales are below normal. So, unlike other business enterprises, we have very little discretion to lower costs just because we are earning less money on the amount of product we are selling. We are not a widget factory, where if the number of widget orders fall, we can throttle back the widget assembly line, buy less raw material and eliminate workers, to close the deficit. In fact, the opposite is true. During this drought we’ve had to spend more money to treat and sell less water. We’ve also seen more leaks and water main breaks. In addition, we have covenants to our bond holders that require the City to establish water rates sufficient to meet debt service coverage requirements. Our debt service is the annual payment of principal and interest for major water system improvements that were made over the last 10 years to improve our water supply and treatment capabilities such as the Lake Kemp Supply Project, Reverse Osmosis and Microfiltration Treatment, and other Conventional Treatment Improvements. Failing to comply with these covenants would increase our future interest costs by lowering our credit rating. With current conservation measures in place, we will not be meeting these requirements unless we increase water rates. Also, the proposed rate adjustment is needed to pay for bonds that will be required for the Indirect Potable Reuse Project. This is a new project that is estimated to cost $30 million to construct a permanent pipeline and pump station to convey treated effluent from our River Road Wastewater Treatment Plant to Lake Arrowhead. This important project is estimated to save nearly 10 million gallons of water per day. Finally, our proposed rate adjustment will set aside $1 million annually to begin a war chest to help pay for a future water supply project to shore up the amount of dependable water we have for our citizens. At this time, several long term water supply projects are being evaluated to determine which one is the most cost effective and provides the best dependable water supply. Regardless of the project that ultimately becomes our next supply, this rate increase will be needed to help with the cost of that project. So just how much will the proposed rate increase cost? It will result in an approximate $14 per month increase to the average residential water customer (based on 6 units or 4,488 gallons used). So for about 46 cents more per day, we can address the critical issues I’ve outlined above. We all would agree that water is not a discretionary item. It is necessary to sustain life and protect property, and helps maintain the quality of life that we all expect. Compare your water bill to your monthly cell phone, home or business phone, Internet service, cable or satellite television bills, and then ask yourself how our water prices stack up and which is more important. For less than one penny, you can buy 3 gallons of highly purified drinking water, delivered to your home or business, available for use around the clock, which also protects your property in case of fire. A lot of people wouldn't even question the price of bottled water at over $1 per bottle, per 16 ounce ($4 per gallon), that they had to go and pick up while using $3.50 per gallon gasoline. Our city’s potable water is a bargain for a commodity that we cannot live without.
THIS IS OUR MISSION TO YOU Absolute Pools is an exceptional pool company that focuses on achieving the best quality custom swimming pool in the industry. Using the latest technology available, we insure customer satisfaction. Absolute Pools continuously studies the direction of the market to remain at the forefront of the industry. Our customers can expect the highest level of professionalism, and rest assured that they will never be disappointed. Through hands-on service throughout the development of the pool, quality workmanship will be insured. Not only does Absolute Pools insure the best quality product, we warranty each specific task performed throughout the construction process. Our superior service enables Absolute Pools to be a step above the rest of the industry. We understand that a quality built pool, with proper maintenance, will last a lifetime. Absolute Pools desires to achieve excellence. We dedicate professional attention to each specific need of our customer. This insures our desires are met, and most importantly the desires of our customers are met. Feel free to contact us at any time by one of the following methods: Office Number - 940-228-3964, Jason Huchton 214-801-0002 or Email - jasonhuchton@yahoo.com, Darrell Charles 940-902-1205 or Email absolutepoolsdc@yahoo.com, Fax Number - 940-759-2330
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Tucker also continues to stay active in the community with Downtown Proud, Don’t Mess with Texas Trash-Off, National Multiple Sclerosis Society, WFFD Operation Santa, Charlie Volunteer Fire Department Pecan Festival, Petrolia Festival & Motorcycle Run, Charlie Peach Festival, Special Olympics, Midwestern State University Engineering Day, and Race for the Cure. Tucker plans to continue the family’s custom of farming while using his engineering degree in home building as well as constructing structures used in the farming industry such as barns, corrals and barn homes that are becoming increasingly popular. Edgar Gonzales Edgar Gonzales is a 2014 graduate of Wichita Falls High School where he maintained a 2.7 grade point average. He got practical experience in the construction field by attending the construction class at the Carrigan Center where they were involved with the community helping Habitat for Humanity and the Fantasy of Lights. Gonzales will be attending the Texas State Technical College where he will study construction technology. With this degree, Gonzales plans to return to Wichita Falls and put the knowledge to work in the construction industry. He also wants to be a good role model for the Hispanic Community and later give back by helping create organizations that can assist financially so young men and women can further their education. Mindy Schroeder Mindy Schroeder will be graduating in December from Midwestern State University with a degree in marketing. She maintains a 4.0 grade point average. While attending MSU, Mindy has been nominated for the Hardin Scholar award, is a student ambassador, is on the President’s Honor Roll, and is a President’s Distinguished Scholar. While a full-time student at MSU Schroeder volunteers and participates in many activities in the community as well as at school. These include: being a Mustang Rally Host and Student Orientation Counselor, helping with the Fantasy of Lights Workshop, a tour host for Discover MSU, and a Peer Counselor. Schroeder helped with the President’ Excellence Award Dinner, the MSU Homecoming Fish Fry, the MSU phone-a-thon, the area food bank, and the Sikes Lake Clean-Up. She is planning to remain in the Wichita Falls area and follow in her Shown after the scholarship family’s footsteps in the building presentations, are, from left: Scholarship Committee industry. Schroeder plans to use Chairman Doug McCulloch, her marketing degree as a tool to Austin Daniel, Edgar Gonzales, become successful in real estate as Abigail Lam, Bryce Tucker, Mindy Schroeder, and NTHBA a woman builder.
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Vice President Report The Sunbelt Builder Show in San Antonio had a successful run July 23-24, 2014. The TAB Summer Board Meetings were in conjunction with the show beginning with the HOMEPAC FUNdango on Tuesday night which featured a live band, food, drinks and a Championship Washer Tournament. The tournament had two flights one with the champions from area HBA’s who held a tournament locally and then a buy in flight where anyone could join. Although none of the teams from the North Texas Home Builders Association won; we at least got our feet wet enough to consider having our own washer tournament in the near future. I attended many of the Committee meetings as well as the Water Task Force meeting. Tuesday I attended the Government Relations Committee meeting along with Jose Garcia and Teri Gibson which dealt with issues moving toward the legislation in 2015. It sounds like a bill will be introduced that will address mechanic liens regarding contractor-subcontractor issues. There is the November election that is set to change the landscape post Governor Perry. We will elect a new Governor, Lt. Governor and 1/3 of the senate for the 1st time in 12 years. With that many changing faces it will be an interesting legislative session in regards to who is friendly with the building industry. I also attended the HOMEPAC Trustees Committee meeting along with Jose Garcia. This committee allocates funds to be distributed for the upcoming elections. The NTHBA is one of the leading associations state wide with over 297% of our goal for 2014. This is a great job and will go far in continuing to get officials elected that have the home building interest at heart and will listen to the requests of TAB and the NTHBA. Wednesday I met with the Energy Code Task Force which made recommendations to the Code & Standards Committee to help address the Energy Codes that are being considered for adoption in 2015. These energy codes will be 50% stricter then the codes adopted in 2006 and 35% stricter than 2009 codes. This process will take 1 ½ years to implement and be adopted by the state. To help better inform our members the NTHBA will be giving an update on the Energy Code and High Performance Building November 20, 2014. There will be more information coming to you in the next few reporters. On Thursday, I met with the Water Task Force committee and the Texas Water Distribution Board Chairman. The water funding is moving along state wide and showed ready projects will begin summer 2015. I have met in the past month with a drought projection meeting that states we are in the 4th year of a 10yr drought. North Texas is considered to be in the worse drought on record. The good news is we have started the recovery. Conservation has led to daily usage of 11-12 million gallons per day. Wichita Falls was able to get its temporary direct reuse project approved by TCEQ and it came online to place 5 million gallons a day back into the system. State wide Continues on page 12
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6701 Seymour Hwy. Wichita Falls, TX 76310
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My how time flies, I can’t believe it is already time for the changing of the guards. The persons listed below have been nominated and approved by the North Texas Home Builders Board of Directors to be presented and voted on by the General Membership. The Policies and Procedures state the nominations are to be presented at the August monthly General Membership Meeting and allow nominations from the floor. We have posted them here to allow you time to review them. Remember this is your opportunity to let your voice be heard if you have someone you would like to see fill these positions be prepared to make nominations at the August 7, 2014 General Membership Meeting. Immediate Past President, Life Director and those who have a single asterisk by their name (directors completing the second year of their original two year term) written in red cannot be changed. All others can be changed by new nominations and the voting at the September 4, 2014 General Membership Meeting. Officers: President – John Harmon Vice President – Eddie Holcomb Associate Vice President – Tim Sawyer Treasurer – Martin Litteken Secretary – Randy Schaffner Immediate Past President – Barney Brock Builder Directors: Troy Thompson * Steven Hinson* (Bobby Rowland asked to be replaced.) David Bedingfield ** Steve Lane** Associate Directors: Sharon Tucker * Cindy David** State Directors: Jose Garcia – Jose will be applying for TAB life director in September 2014 (Congratulations Jose) Barney Brock –Alternate Chuck Dennis Life Director Executive Vice President: Teri Gibson One Year Term * Two Year Term **
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2014 TAB Star Awards In 1992, the Texas Association of Builders launched the Texas Star Awards - the only statewide tribute to excellence in the home building industry. The 2014 Star Awards showcases the outstanding work of builders, remodelers, architects, Barney & Diane Brock, Teri designers, sales professionals, Gibson, and John & Shannon Harmon attending the Star marketing professionals, construction Awards at the Sunbelt Show. professionals and industry leaders in Texas and the Southwest! Over 500 entries were submitted for consideration in the 2014 Star Awards. Entries were judged by a distinguished panel of industry experts from across the nation during an intense two-day judging period. With more than 75 categories to choose from and hundreds of entries each year, it is an impressive feat to be identified as a finalist. We are proud to be able to recognize one of our own. Congratulations to Barney Brock & Lance Friday Homes as a TAB Star Award Finalist for Custom Builder - Best Kitchen $275-$500K for 1730 Woodridge! Lance Friday Homes was among an elite group of competition that included Jamestown Estate Homes from Houston, TX, Casa Sereno Homes LLC from Austin, TX, and Couto Homes from Granbury, TC who took this year’s Star Award. Thanks again Barney for representing Wichita Falls in the 2014 Star Awards!
1204 28th Street Wichita Falls
(940) 766-3291
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Texas 76308
Lane Landes, Owner
tco@wf.net
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Wichita Falls is the leader in this concept and with the drought we are in, Wichita Falls has already started the process for the permanent reuse project redirecting the water back into Lake Arrowhead rather than dump into the Wichita River and on into Lake Texoma.
Some interesting facts on the state of Texas and its future are the infrastructure will be the key to growth of Texas in the next 50 years. Better roads and water supply will be the key to addressing the surge in growth that is projected. In 1960 there were 9 million people in Texas, 2014 – 26 million and in 2050 they project there will be 47 million. Today they believe there are 1000 people per day moving into Texas. With this in mind the House & Senate Joint Committee are moving to do research on water desalination. All signs show that climate/weather driven solutions to water needs in Texas in the next 50 years are not the answer. No matter how many reservoirs are built they still would be vulnerable to drought. Therefore, desalination seems to be the future answer to water for Texas. There are thousands of projects throughout the world that are successfully desalinating water today. The main drawback is the cost is 3-4 times more expensive than conventional projects. Cost for water will be more expensive in the future, but the needs of thirsty Texans will be met with desalination of brackish ground water and sea water. This is the future and more information will be coming soon. “Do what you can, with what you have, where you are!” Theodore Roosevelt