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LA PORTE AREA WATER AU'T'HORITY
<br /> MINUTES
<br /> August 06,2015
<br /> l. The meeting was called to order at 6:00 PM by President Kenneth Schlather.
<br /> Members Present: Kenneth Schlather,President;Doug Martin,Vice President;Charlie Perry,Secretary;Randy
<br /> Woodard
<br /> Members Absent: Excused absence:Dennis Steger
<br /> Others Present: Corby Alexander, General Manager;Michael Dolby,La Porte Finance Director;David Mick,
<br /> La Porte Public Works Director;Brian Schneider, City Administrator Morgan's Point
<br /> 2. The Febrary 11, 2015 minutes were reviewed and unanimously approved with Randy Woodard making the
<br /> motion to approve and Doug Martin seconding.
<br /> 3. Michael Dolby,La Porte Finance Director,presented the proposal for the Authority to buy down the remaining
<br /> portion of the bond debt utilizing the Authority's Cash reserve, currently estimated at $2,668,785.46, to fund
<br /> debt service expenses estimated as follows: $16,450.50(2015),$692,850.00(2016),and$326,400(2017). The i
<br /> cash reserve estimate for 2017 after the debt service payments is$1,665,040.22. David Mick also advised the
<br /> Board that there is a$300,000 invoice from the City of Houston for the most recent Southeast Water Treatment
<br /> Plant(SEWPP) expansion that is still under consideration. The cash reserve balance projection for 2017 may
<br /> be adjusted downward by up to $300,000 depending on the final disposition of the invoice. The result of this
<br /> action would be that the member cities would not be billed for the yearly debt service. For FY 2016,the yearly
<br /> debt service totals were$593,495 (City of La Porte), $55,289 (City of Morgan's Point), and $44,065 (City of
<br /> Shoreacres). A motion by Charlie Perry with a second by Doug Martin agreeing that the La Porte Water
<br /> Authority would fund the remaining debt payments as outlined on behalf of the member cities was unanimously
<br /> approved.
<br /> 4. David Mick presented the proposed FY 2016 Authority Budget. Budget amount requested for FY 2016 is
<br /> $1,149,726, a$20,245 increase(1.79%) over the current year budget. David Mick also updated the Board on
<br /> recent events related to the SEWPP plant operations and billings and the potential need for the Authority to join
<br /> other co-owners of the SEWPP to dispute portions of the FY 2016 budget prepared by the City of Houston. The
<br /> dispute may involve the need for attorney fees that are not yet budgeted. Mr.Mick also noted that the final City
<br /> of Houston (COH) budget cost that will be billed to the Authority is $0.6072/1000 gallons which is a slight
<br /> increase over the COH preliminary budget estimate of$0.6035/1000 gallons. Upon completing the presentation,
<br /> Mr.Mick recommended that the Authority consider budget approval with caveats that the charges to the member
<br /> cities reflect the final cost of$0.6072/1000 gallons provided by COH,a$10,000 budget increase to 50-07 Other
<br /> Professional Services for potential legal fees associated with the budget dispute with COH,and a corresponding
<br /> $10,000 budget decrease to line item 80-21 Machinery/Tools/Equipment. Doug Martin made a motion to
<br /> approve the budget with changes noted by David Mick,Charlie Perry seconded the motion,and the motion was
<br /> approved unanimously.
<br /> 5. Corby Alexander thanked the board and alluded to the City of Houston(COH)budget considerations and future
<br /> discussions planned among the co-owners of the Southeast Water Purification Plant (SEWPP). David Mick
<br /> provided the Board Members with a letter prepared by the co-owner's legal counsel,Ron Freeman, and signed
<br /> by the largest three co-owning entities, Pasadena, Clear Lake Water Authority, and the Gulf Coast Water
<br /> Authority. The co-owners plan to meet August 17,2015 to determine future steps forward and the potential for
<br /> disputing portions of the FY 2016 budget prepared by COH. Staff plans to schedule another meeting with this
<br /> LPAWA board within the next month to provide additional information.
<br /> 6. There were no additional comments concerning the authority from the board.
<br /> 7. There being no further business,the meeting adjourned at 6:55 PM.
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