08-01-11 Regular Meeting of the La Porte Area Water Authority

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Memo To: La Porte Area Water Authority Board Prom: David Mick, Public Works Director CC: Icon Bottoms, Don Pennell, Michael Dolby Date: July 21, 2011 Re: Background Information for August 1, 2011 Agenda Items LPAWA Board: Thank you for your time and consideration of the items on the August 1 agenda. We have a lot to discuss at this next meeting. Please don't hesitate to forward any comments or questions as they come up when you review this packet. Agenda Item 3: Consider approval of an operator's agreement between the City of La Porte and the LPAWA. The curj ,nt agreement expired July 1. The new agreement is attached (Appendix A). There are no changes to the agreement other than the dates and cost adjusted for the epi -u as provided in the prior agreement(s). Agenda Item 4: Consider approval of FY 2011 -2012 LPAWA Operating Budget. The City of Houston (COH) submitted a budget rate of $0.635411000- gallons for the upcoming fiscal year (Appendix B). This new rate is 29% higher than the budget rate provided by COH two -years ago. The proposed budget for the three member cities is provided in (Appendix C) for FYI 1-12. FY10 -11 is also provided for comparison. While the COH budget rate increase is significant, it was largely offset this year by a decrease in both the projected O &M cost and the capital recovery fee. The City of La Porte's cost is projected to increases 3% this next fiscal year. The cost to Morgan's Point will decrease slightly due to atr expected decrease in water usage. The Shoreacreas cost is estimated to increase 22% this next year to accommodate a new concrete plant, Agenda Items 5 and 6: Discuss City of Houston 2009 and 2010 True Up Payment Request and provide the General Manager with Direction. in January of this year, COH provided a prel'uninary accounting of their proposed "true up" billings for the Fiscal Years 2007, 2008, 2009, and 2010. After some discussion at their February 2 meeting, the LPAWA Board directed the General Manager to weric through the co- owners committee and to follow the lead of the City of Pasadena as the largest water consumer other tban COH. The co- owners committee minus COH bas met a 1 City of La Porte Public Works . Memo To: La Porte Area Water Authority Board Prom: David Mick, Public Works Director CC: Icon Bottoms, Don Pennell, Michael Dolby Date: July 21, 2011 Re: Background Information for August 1, 2011 Agenda Items LPAWA Board: Thank you for your time and consideration of the items on the August 1 agenda. We have a lot to discuss at this next meeting. Please don't hesitate to forward any comments or questions as they come up when you review this packet. Agenda Item 3: Consider approval of an operator's agreement between the City of La Porte and the LPAWA. The curj ,nt agreement expired July 1. The new agreement is attached (Appendix A). There are no changes to the agreement other than the dates and cost adjusted for the epi -u as provided in the prior agreement(s). Agenda Item 4: Consider approval of FY 2011 -2012 LPAWA Operating Budget. The City of Houston (COH) submitted a budget rate of $0.635411000- gallons for the upcoming fiscal year (Appendix B). This new rate is 29% higher than the budget rate provided by COH two -years ago. The proposed budget for the three member cities is provided in (Appendix C) for FYI 1-12. FY10 -11 is also provided for comparison. While the COH budget rate increase is significant, it was largely offset this year by a decrease in both the projected O &M cost and the capital recovery fee. The City of La Porte's cost is projected to increases 3% this next fiscal year. The cost to Morgan's Point will decrease slightly due to atr expected decrease in water usage. The Shoreacreas cost is estimated to increase 22% this next year to accommodate a new concrete plant, Agenda Items 5 and 6: Discuss City of Houston 2009 and 2010 True Up Payment Request and provide the General Manager with Direction. in January of this year, COH provided a prel'uninary accounting of their proposed "true up" billings for the Fiscal Years 2007, 2008, 2009, and 2010. After some discussion at their February 2 meeting, the LPAWA Board directed the General Manager to weric through the co- owners committee and to follow the lead of the City of Pasadena as the largest water consumer other tban COH. The co- owners committee minus COH bas met a 1