Odds are you’ve driven by a water leak in Houston and wondered how much water is being wasted and when it will be fixed. You may have even filed a report with 311 and waited for workers to show up and stop the endless rush of water.
KPRC 2 Investigates has learned many of the contracted workers who drive around the city to fix those leaks may be connected to questionable emergency contracts awarded by the Houston Public Works water department.
That entire process is now under investigation by the Office of the Inspector General. The city isn’t commenting, other than to say one person has been relieved of duty and another supervisor has resigned.
Who’s talking now?
After our investigation last month revealing shady companies with little to no work history and questionable contracts, we started getting calls and emails from city employees and contractors. They are coming forward to share more about the practices inside the Houston water department and how waterline repairs are assigned.
As part of this report, we agreed to conceal the identity of one of those contractors who feared retaliation for sharing what he says he experienced and witnessed while working on waterline repairs. We will refer to them as “the contractor” throughout this report. KPRC 2 Investigates also used city invoices and other documents obtained via the Texas Public Information Act to confirm the contractor’s claims.
Millions of dollars in contracts awarded to some companies with no history of water repair work
As water gushed, flowed, and sprayed from broken city waterlines, emergency money also flowed. Tens of millions of city tax dollars were awarded to a dozen companies, many with no history of waterline repair work. Some of the companies had no work history at all.
“We have received a number of calls. We are vetting them as well,” said Mayor Turner said in August 2023, talking about hiring extra contractors to speed up repairs of the leaking waterlines.
But if anyone had vetted Lu’s Construction they would have noticed its connection to Houston Public Works manager Patrece Lee, the same employee choosing the companies to get the multi-million-dollar repair contracts.
We showed you last month that Lee’s brother is listed on state records as the owner of Lu’s Construction but he didn’t want to talk with us about the $4.5 million contract he received.
“What we find troubling is that your sister works for the city of Houston. Did she give you that contract?” Davis asked Andrew Travis Thomas at his door in early November,
“Um, let me see your card,” Thomas said, answering Davis through a cracked doorway.
New Claims of mismanagement and waste
“When I came in, there were probably 400 active water leaks. It got up to a thousand. The rate that we were repairing them was not what it should have been,” the contractor told investigative reporter Amy Davis.
“Why?” Davis asked.
“City mismanagement and planning,” the contractor said.
He says when the city approved giving $87 million to 12 companies to help with repairs at least half of those businesses didn’t even have employees.
“They were staffed by Patrece,” he said.
Patrece Lee hired not only her own family and friends but also the cousins, brothers, and friends of other city employees.
Cesar Cordova is a Houston Public Works Senior Inspector. In January he posted on Facebook: “Anyone in the water and wastewater industry looking for a career jump? Hit me up I have an opportunity for you.”
Patrece’s husband Brandon Lee, a Houston Public Works maintenance manager replied “Me LOL.”
Just a few months later Cordova’s cousin Joe Garcia started the company, C & J Arsenal. C & J got a city of Houston contract for more than $3 million. And while Garcia billed the city for that contract, he also collected a paycheck working as a subcontractor, doing inspections for another company, Bureau Veritas.
“That sounds like fraud,” the contractor told Amy. “You’re being made to monitor the job that you’re being paid to do. You’re supposed to be a third party... not a part of the party.”
When KPRC 2 Investigates called Cordova to ask what role he played in his cousin getting the emergency contract, he didn’t deny it. When Davis asked if it was true C & J Arsenal stands for “Cesar and Joe,” Cordova hung up.
The contractors hired were not just doing repairs. Hundreds of people were hired to inspect the work of the people doing the repairs. Inspector positions started at $25 an hour.
“We really sat in our trucks, watched YouTube and if we were standing outside, we were standing outside staring at four guys digging a hole. Which turned into multiple 14-hour days, 15-hour days on one job doing nothing,” said the contractor.
Amy: “Does that sound like maybe they didn’t need as many inspectors as they had?”
“This is what was told to us. They were trying to make sure everyone got their hours still. So they were pairing people who were in training for longer than a month. They were putting people back to paired up who needed more training later on.”
He says taxpayers essentially paid double for work. $25 an hour for one guy to inspect the repairs and another $25 for the guy who was shadowing him. Our sources say this was happening for weeks, sometimes months.
City leaders did question the amount of money spent on water leaks
At the October 3rd City Council meeting when council members were asked to approve another $47 million for emergency contracts, council member Sallie Alcorn questioned the large sum.
“All of fiscal year 2023, we spent $36 million,” said Alcorn. “We had a lot of leaks last year too. Am I not looking at the numbers right? Are we spending $80 million this year as compared to $36 million last year? I’m just trying to get clarification.”
Mayor Pro Tem Dave Martin encouraged council to approve the spending, noting that Houston Public Works Director Carol Haddock couldn’t make it to the meeting to provide any further explanation. The funding was approved.
“What was wasteful about the way these repairs were done?” Davis asked the contractor.
“They get about $400 to $500 just for stepping on a job site,” said the contractor.
He says inspectors were dispatched to job sites where work wouldn’t start for days just to take out a road-closed sign on a barrel.
“That’s a $185 charge; and sidewalk signs are $125 each,” he said.
“There were days when I showed up to five jobs and wrote five traffic control, five sidewalk closures, and then we went home.”
Space City Environmental, owned by Patrece’s ex-sister-in-law, was awarded a $3.6 million contract. In one day, Space City charged the city $39,610 for sliding out road and sidewalk closed signs, according to invoices obtained by KPRC 2 Investigates. That didn’t cover any actual repairs.
“Who dropped the ball?” Davis asked the contractor.
“The City of Houston and Public Works Department, I think. Patrece had too much free reign and for some reason had little to no oversight,” the contractor told us.
The city has suspended Lee with pay while the Office of Inspector General Investigates.
Just last week, Lee’s direct supervisor Venus Price resigned.
We know there are still many questionable connections, family members working both for the city and for the companies hired to do the emergency repair work.
‘DRAINED’ Investigation follows the money
Some of you have asked if any of the money can be clawed back or if any of these people will be charged criminally. The city isn’t answering those questions while the investigation is pending. We will follow up and let you know when we get more information.
Investigator Amy Davis, Producer Andrea Slaydon, and the team will continue our ‘DRAINED’ Investigation into water bill issues. Fill out this form if you need help.