02-08-12 Regular Meeting of the La Porte Area Water Authority

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LA PORTE AREA WATER AUTHORITY MINUTES AUGUST 1, 2011 The meeting was called to order at 6:00 PM by President David Janda. Members Present: President David Janda, Vice President Kenneth Schlather, Secretary Steve Valerius, Members Dennis Steger, Randy Woodard (6:15) Members Absent: None Others Present: General Manager Ron Bottoms (6:07), Public Works Director David Mick, Asst. Public Works Director Don Pennell, Director of Finance Michael Dolby, City Controller Phyllis Rinehart, and Morgan's Point Asst. City Administrator Brian Schneider (6:02). 2. The minutes from the meeting held February 2, 2011 were reviewed. Motion by Steve Valerius to approve minutes with corrections as noted, second by Dennis Steger motion was unanimous. 3. Consider approval of the Operator's Agreement between the City of La Porte and the La Porte Area Water. It was noted by David Mick that the current rate was based on the 2008 agreement with CPI-U calculations added for the next three years. Motion by Steve Valerius, second by Kenneth Schlather to approve Operator's agreement. Motion was unanimous. 4. Request was made by David Mick to skip Item number 4 on the agenda and return to it after review of items 5, 6, and 7 on the agenda. All members agreed. 5. Overview of items 5 and 6, City of Houston true up payment for 2009 and 2010 was presented by David Mick. After some discussion as to would it be better for the Water Authority to pay or not pay the request by the City of Houston and question as to if the "loser" would pay all of the legal fees if the outcome was decided in court, what court this dispute would be heard in, there was a request by Kenneth Schlather to explore the possibilities of the legal outcome. 6. David Mick presented agenda item 7, the Inter -local Agency Agreement as proposed by the City of Pasadena for reimbursement to the City of Pasadena for expenses related to the potential change in the SE Houston Water Plant Operator, Manager, and legal expenses related to true up charges with recommendation by the City of La Porte Asst. City Attorney. Approximate costs associated with Operations and management is $395,000 for an engineering firm to assist with new contracts for plant operator and manager. $10,000 for and independent audit. Other associated fees. La Porte Area Water Authority cost would be 8 percent of the total amount. Motion was made by Steve Valerius to approve the agreement with an added provision that the associated legal and engineering expenses not exceed either 10 percent prorated share or $50,000 and the LPAWA to be represented on the internal co -participant committee reviewing the true up cost, operational and management changes, second by Dennis Steger. Motion was unanimous. 7. General Manager Ron Bottoms and Michael Dolby presented highlights of agenda item 4 the proposed 2011-2012 LPAWA operating budget and recommendation to add $50,000 in legal expenses and cost associated with potential change in SE Houston Water Plant operation and/or manager. Motion by Steve Valerius to approve budget with noted changes, second by Kenneth Schlather motion was unanimous. 8. Agenda item 8, General Managers Report, Ron Bottoms had no other comments. Board comments none 10. There being no further business, the meeting adjourned at 7:00 PM