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REQUEST FOR CITY COL <br />Agenda Date Requested: 9/12/11 <br />Requested By: David Mick <br />Department: Public Works <br />Report: Resolution: Ordinance: <br />City of Houston Summan of Plant Co -Owner <br />Exhibits: Share of Expenses <br />LPAWA, Cite of Pasadena Agreement <br />Aug. 1, 2011 LPAWA Board Minutes <br />INCIL AGENDA ITEM <br />Appropriation <br />Source of Funds: N/A <br />Account Number: <br />Amount Budgeted: <br />Amount Requested: <br />Budgeted Item: YES NO <br />SUMMARY & RECOMMENDATION <br />The La Porte Area Water Authority (LPAWA) was created by the Texas Legislature effective <br />January 1982. The enabling legislation for the LPAWA stipulates that the authority must first <br />secure the approval of the City of La Porte city council before entering into a contract. The <br />enabling legislation also names the City Manager for the City of La Porte as the General <br />Manager for the authority. <br />During their August 1, 2011 meeting, the authority board of directors authorized the LPAWA <br />General Manager to enter into a formal agreement with the City of Pasadena. The purpose of the <br />agreement is to provide a mechanism by which the authority can reimburse the City of Pasadena <br />for the authority's prorated share of costs incurred by Pasadena as they lead the efforts of the SE <br />Houston Water Purification Plant co- owners to: 1) replace the City of Houston as plant operator, <br />and 2) challenge alleged "true -up" amounts billed to the co- owners by the City of Houston. <br />Issues with the City of Houston as plant manager and operator are best summarized by their data <br />provided to the co- owners of the SE Houston plant: <br />Budget Amt (1000 gal) "True Up" Amt (1000 gal) <br />FY Submitted by COH for FY Claimed by COH in 2011 % Increase <br />2007 <br />$ <br />0.5343 <br />$ <br />0.6547 <br />22.5% <br />2008 <br />$ <br />0.5065 <br />$ <br />0.6667 <br />31.6% <br />2009 <br />$ <br />0.4870 <br />$ <br />0.6742 <br />38.4% <br />2010 <br />$ <br />0.4934 <br />$ <br />0.5898 <br />19.5% <br />The approximate cost to each of the co- owners is shown on the attached spreadsheet. (The <br />numbers have been slightly altered since.) The City of Houston is attempting to recover costs <br />for 2009 and 2010 at this time and has invoiced the LPAWA $274,017.63 for 2009 and <br />$138,898.58 for 2010. The audits provided by the City of Houston to justify their invoiced <br />