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HomeMy WebLinkAbout07-24-14 Regular Meeting of the La Porte Area Water Authority LA PORTE AREA WATER AUTHORITY MINUTES February 12, 2014 1.The meeting was called to order at 6:02PMbyPresidentDavid Janda. Members Present :President David Janda, MembersDennis Steger,RandyWoodard Members Absent :Excused absence Vice President Kenneth Schlather, Secretary Doug Martin Others Present :General Manager Corby Alexander, Finance Director Michael Dolby, Public Works Director David Mick,City Controller Phyllis Rinehart, Tom Petersonof Null-Lairson, P.C.;Geoffrey Veulemanof Whitley Penn. 2.Randy Woodard moved, Dennis Steger seconded, to re-elect the current officers. David Janda continues as President, Kenneth Schlather as Vice President, Doug Martin as Secretary. Unanimously approved. 3.Randy Woodard moved, Dennis Steger seconded, to accept the July 24, 2013 minutes as written. Unanimously approved. 4.Randy Woodard moved, Dennis Steger seconded, to accept the February 12, 2013 (corrected) minutes as written. Unanimously approved. 5.Tom Peterson of Null-Lairson, P.C. provided the board members with hard copies of a power point presentation summary of the 2013Annual Financial Report for the LPAWA fiscal year ending September 30, 2013 and presented the audit results.In summary, it was a clean auditand the total net position of the LPAWA increased by $390,142 in 2013. After some discussionincluding agreement by Tom Peterson and the board members of a clarification added to page 6 related to the note of increased consumption that was more accurately alag in the City of Houston billing that moved an FY 2012 expense into FY 2013. Randy Woodard moved to approve the 2013Annual Financial Report, Dennis Steger seconded, the 2013Annual Financial Report was unanimously approved. 6.General Manager Corby Alexander thanked the audit team and the Finance Department staff for their work. There were no other reports. 7.David Janda asked if there were additional questions or comments from the board. There were none. 8.There being no further business, the meeting adjourned at 6:22PM. Secretary PASSED AND APPROVED ON THIS DAY President OPERATOR'S AGREEMENT This agreement, entered into this 25thday of AugustJuly,20112014, by and between the La Porte Area Water Authority, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OWNER") and the City of La Porte, Texas, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OPERATOR"). For and in consideration of the mutual undertakings herein contained, Authority and City agree as follows: I. OPERATOR agrees to operate, maintain, repair, and manage OWNER'S property for a term of three (3)years commencing October 1, 20112014with an option to renew this agreement for an additional period of three (3) years, subject to the agreement of both parties. This agreement is subject to termination at any time without cause by either party giving ninety (90) day written notice to the other. II. Operation shall consist of furnishing labor and administrative support services to provide efficient operation, maintenance, and management of OWNER'S transmission system, shown on record construction drawings on file at the La Porte City Hall, and to provide clerical and administrative support for the billing, accounting, and other support needed for efficient operation of OWNER'S transmission system, which includes, but not limited to the following: 1.Provide operating personnel at all times who hold valid water works licenses issued by the Texas Natural Resources Conservation Commissionon Environmental Quality(TCEQ). 2.Provide operating personnel on-call twenty-four (24) hours per day, seven (7) days per week with a twenty-four (24) hour telephone dispatching service and vehicles equipped with two-way radios. 3.Provide clerical and administrative support for billing, accounting, supervisory, and other support as needed for the efficient operation of OWNER'S transmission system. 4.Daily check, at all customer takepoints, (including weekends and holidays): a. All control systems; b. Take meter readings; and c. Check all electrical operations. 5.Collect, on a monthly basis, all necessary water samples as required by local, state, and federal regulations. 6.Run complete chemical analysis of water supply. 7.Prepare, submit, and furnish copy to OWNER all required reports to local, state, andfederal agencies having regulatory powers over OWNER'S transmission system. 8.Furnish monthly operational, fiscal, and budgetary reports to OWNER. 9.Prepare operation line-item budget estimate for OWNER'S approval prior to the termination of this Agreement. 10.Perform preventive maintenance as required by equipment manufacturers' operating manuals, provided by OWNER. 11.Maintain required records of water system operations. 12.Report to OWNER system improvements and/or major repairs needed. 13.Prepare, mail, and collect monthly bills for water consumed by all customers, in accordance with the Accounting Policy Statement attached hereto as Exhibit "A". 14.Process invoices for materials, supplies, and services necessary to operate the water supply system. 15.Provide necessary office space in its facilities for a master control center needed for the control, historical recording, and reporting of the water transmission system. III. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $61,61967,007, payable monthly, in a sum th equal to 1/12 of the Annual Fee, on or before the 15day of each month that this Agreement remains in effect. The Annual Fee shall be binding on the Operator and the Owner for the first year of the Agreement, that is from October 1, 20112014through September 31,20122015. Beginning October 1, 20122015, and in subsequent years thereafter, there shall be an annual cost of living adjustment of the Annual Fee. The annual cost of living adjustment shall be calculated by multiplying the Annual Fee by a fraction, the denominatorof which shall be the April 20112014Consumer Price Index for All Urban Consumers (CPI-U), all items, U.S. City Average, and the numerator shall be the CPI-U for all items,U.S. City Average for April 20122015, and subsequent dates of adjustment.The Base Month/Year for the Annual CPI calculation is April 2001(CPI-U = 176.90) with the Operator’s Fee beginning October 1, 2001 equal to $50,000. IV. OPERATOR will procure, to OWNER'S account, supplies, materials, equipment, and services, utilizing funds allocated in OWNER'S approved budget, attached hereto as Exhibit "B", for the routine operation of OWNER'S transmission system. OPERATOR shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the operation of the transmission system. V. Repairs, adjustments, and operation of the system outside of the scope of services outlined in Section II of this Agreement will be billed to OWNER on an actual cost basis. Whenever possible, OPERATOR will obtain advance approval from OWNER prior to beginning non-routine work; however, OPERATOR is authorized to proceed, unless specifically directed otherwise, in those cases deemed necessary by the OPERATOR. VI. OPERATOR will exercise good judgement in the replacement of equipment under this Agreement. OWNER will not hold OPERATOR responsible for guarantees or warranties for such equipment. The OPERATOR will make responsible efforts to secure normal guarantees to OWNER. VII. OPERATOR is retained by OWNER only for the purpose and to the extentset forth in this Agreement, and his relation to OWNER, during the period of this Agreement, is that of an independent entity, and he shall be free to dispose of such portion of his entire time not required to satisfy the terms of this Agreement in any manner he deems advisable. OPERATOR shall not be considered an employee of OWNER. VIII. OPERATOR agrees that all customers of OWNER will receive equal treatment under the terms of this Agreement. IX. OPERATOR shall be required to operate within the current guidelines of its governing body and shall notify OWNER of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. X. OPERATOR hereby assumes entire responsibility and liabilityfor any and all damage or injury of any kind or nature whatever (including death resulting therefrom) to all persons, whether employees of OPERATOR or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the maintenance and operation of OWNER'S transmission system provided for in this Agreement and if any person shall make a claim for any damage or injury (including death resulting therefrom) as hereinabove described, whether such claim may be based uponthe OWNER'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part of the OWNER, the OPERATOR agrees to indemnify and save harmless the OWNER, its agents, servants, andemployees from and against any and all loss, expense, damage, or injury that the OWNER may sustain as a result of any such claims and the OPERATOR agrees to assume, on behalf of the OWNER, the defense of any action at law or in equity, which may be brought against the OWNER upon such claim and to pay on behalf of the OWNER, upon its demand, the amount of any judgement that may be entered against the OWNER in any such action. XI. Before commencing the work, the OPERATOR shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws of the State of Texas. The OPERATOR agrees that nothing contained in this paragraph shall limit or release the OPERATOR from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the OWNER. If the OPERATOR fails to procure and maintain at least the above insurance, the OWNER shall have the right to procure and maintain the said insurance for and in the name of the OPERATOR, and the OPERATOR shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. XII. The OPERATOR for the Contract Price herein provided for, hereby agrees to pay and shall hold the OWNER harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. XIII. If either the OPERATOR or OWNER believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or such other time limits as may beexpressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. XIV. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OF LA PORTE Louis R. Rigby, Mayor ATTEST: Patrice Fogarty, City Secretary LA PORTE AREA WATER AUTHORITY By: David Janda, President ATTEST: Steve ValeriousDoug Martin, Secretary OPERATOR'S AGREEMENT This agreement, entered into this 25thday of August,2014, by and between the La Porte Area Water Authority, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OWNER") and the City of La Porte, Texas, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OPERATOR"). For and in consideration of the mutual undertakings herein contained, Authority and City agree as follows: I. OPERATORagrees to operate, maintain, repair, and manage OWNER'S property for a term of three (3)years commencing October 1, 2014with an option to renew this agreement for an additional period of three (3) years, subject to the agreement of both parties. This agreement is subject to termination at any time without cause by either party giving ninety (90) day written notice to the other. II. Operation shall consist of furnishing labor and administrative support services to provide efficient operation, maintenance, and management of OWNER'S transmission system, shown on record construction drawings on file at the La Porte City Hall, and to provide clerical and administrative support for the billing, accounting, and other support needed for efficient operation of OWNER'S transmission system, which includes, but not limited to the following: 1.Provide operating personnel at all times who hold valid water works licenses issued by the Texas Commissionon Environmental Quality(TCEQ). 2.Provide operating personnel on-call twenty-four (24) hours per day, seven (7) days per week with a twenty-four (24) hour telephone dispatching service and vehicles equipped with two-way radios. 3.Provide clerical and administrative support forbilling, accounting, supervisory, and other support as needed for the efficient operation of OWNER'S transmission system. 4.Daily check, at all customer takepoints, (including weekends and holidays): a. All control systems; b. Take meter readings; and c. Check all electrical operations. 5.Collect, on a monthly basis, all necessary water samples as required by local, state, and federal regulations. 6.Run complete chemical analysis of water supply. 7.Prepare, submit, and furnish copyto OWNER all required reports to local, state, and federal agencies having regulatory powers over OWNER'S transmission system. 8.Furnish monthly operational, fiscal, and budgetary reports to OWNER. 9.Prepare operation line-item budget estimate for OWNER'S approval prior to the termination of this Agreement. 10.Perform preventive maintenance as required by equipment manufacturers' operating manuals, provided by OWNER. 11.Maintain required records of water system operations. 12.Report to OWNERsystem improvements and/or major repairs needed. 13.Prepare, mail, and collect monthly bills for water consumed by all customers, in accordance with the Accounting Policy Statement attached hereto as Exhibit "A". 14.Process invoices for materials, supplies, and services necessary to operate the water supply system. 15.Provide necessary office space in its facilities for a master control center needed for the control, historical recording, and reporting of the water transmission system. III. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $67,007, payable monthly, in a sum equal th to 1/12 of the Annual Fee, on or before the 15day of each month that this Agreement remains in effect. The Annual Fee shall be binding on the Operator and the Owner for the first year of the Agreement, that is from October 1, 2014through September 31, 2015. Beginning October 1, 2015, and in subsequent years thereafter, there shall be an annual cost of living adjustment of the Annual Fee. The annual cost of living adjustment shall be calculated by multiplying the Annual Fee by a fraction, the denominatorof which shall be the April 2014Consumer Price Index for All Urban Consumers (CPI-U), all items, U.S. City Average, and the numerator shall be the CPI-U for all items,U.S. City Average for April2015, and subsequent dates of adjustment.The Base Month/Year for the Annual CPI calculation is April 2001 (CPI-U = 176.90) with the Operator’s Fee beginning October 1, 2001 equal to $50,000. IV. OPERATOR will procure, to OWNER'S account, supplies, materials, equipment, and services, utilizing funds allocated in OWNER'S approved budget, attached hereto as Exhibit "B", for the routine operation of OWNER'S transmission system. OPERATOR shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the operation of the transmission system. V. Repairs, adjustments, and operation of the system outside of the scope of services outlined in Section II of this Agreement will be billed to OWNER on an actual cost basis. Whenever possible, OPERATOR will obtain advance approval from OWNER prior to beginning non-routine work; however, OPERATOR is authorized to proceed, unless specifically directed otherwise, in those cases deemed necessary by the OPERATOR. VI. OPERATOR will exercise good judgement in the replacement of equipment under this Agreement. OWNER will not holdOPERATOR responsible for guarantees or warranties for such equipment. The OPERATOR will make responsible efforts to secure normal guarantees to OWNER. VII. OPERATOR is retained by OWNER only for the purpose and to the extent set forth in this Agreement, and his relation to OWNER, during the period of this Agreement, is that of an independent entity, and he shall be free to dispose of such portion of his entire time not required to satisfy the terms of this Agreement in any manner he deems advisable. OPERATOR shall not be considered an employee of OWNER. VIII. OPERATOR agrees that all customers of OWNER will receive equal treatment under the terms of this Agreement. IX. OPERATOR shall be required to operate within the current guidelines of its governing body and shall notify OWNER of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. X. OPERATOR hereby assumes entire responsibility and liability for any and all damage or injury ofany kind or nature whatever (including death resulting therefrom) to all persons, whether employees of OPERATOR or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the maintenance and operation of OWNER'S transmission system provided for in this Agreement and if any person shall make a claim for any damage or injury (including death resulting therefrom) as hereinabove described, whether such claim may be based upon the OWNER'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part of the OWNER, the OPERATOR agrees to indemnify and save harmless the OWNER, its agents, servants, and employees from and against any and all loss, expense, damage, or injury that the OWNER may sustain as a result of any such claims and the OPERATOR agrees to assume, on behalf of the OWNER, the defense of any action at law or in equity, which may be brought against the OWNER upon such claim and to pay on behalf of the OWNER, upon its demand, the amount of any judgement that may be entered against the OWNER in any such action. XI. Before commencing the work, the OPERATOR shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws of the State of Texas. The OPERATOR agrees that nothing contained in this paragraph shall limit or release the OPERATOR from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the OWNER. If the OPERATOR fails to procure and maintain at least the above insurance, the OWNER shall have the right to procure and maintain the said insurance for and in the name of the OPERATOR, and the OPERATOR shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. XII. The OPERATOR for the Contract Price herein provided for, hereby agrees to pay and shall hold the OWNER harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. XIII. If either the OPERATOR or OWNER believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or such other time limits as may be expressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. XIV. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall begoverned by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OF LA PORTE Louis R. Rigby, Mayor ATTEST: Patrice Fogarty, City Secretary LA PORTE AREA WATER AUTHORITY By: David Janda, President ATTEST: Doug Martin, Secretary 7/3/2014 City of La Porte La Porte Area Water Authority Fund (016) Summary Working Capital 9/30/13$2,394,445 Plus Estimated 13-14 Revenues1,217,218 Less Estimated 13-14 Expenses and Commitments1,080,171 Equals Estimated Working Capital 9/30/142,531,492 Plus 14-15 Revenues: Water Revenue1,183,912 Billing for Capital Reserve95,447 Interest5,000 Total Revenues1,284,359 Equals Total Resources3,815,851 Less 14-15 Expenses: Operations1,129,481 Total Expenses1,129,481 Equals Estimated Working Capital 9/30/15$2,686,370 EstimatedProjected 2013-142014-15 Revenues$1,217,218$1,284,359 Expenses1,080,1711,129,481 Revenues over Expenses$137,047$154,878 Targeted working capital - 60 to 90 days Estimated working capital - 868 days Goal: $278,502 1 Day = $3,094 0100 0100200 0 0 0000 LAST YEARS BUDGET ESTIMATE REQUESTED CITY MANAGER CITY MANAGER ACCOUNT NUMBER ACCOUNT DESCRIPTION ACTUALS 2013-14 2013-14 2014-15 ADJUSTMENTS REVIEW016-7075-533.10-67 PARS - RETIREMENT 0 0 0 0 0 016-7075-533.20-01 OFFICE 0 100 50 100 0 016-7075-533.20-02 POSTAGE 0 0 0 0 0 016-7075-533.20-15 OTHER SUPPLIES 0 100 50 100 0 016-7075-533.20-90 MACHINERY/TOOLS/EQUIPMENT 8,090 3,500 2,795 8,200 0 8,016-7075-533.20-93 COMPUTER EQUIPMENT 0 0 0 0 0 016-7075-533.30-20 TRAINING/SEMINARS 0 0 0 0 0 016-7075-533.40-01 OFFICE EQUIPMENT 0 0 0 0 0 016-7075-533.40-02 MACHINERY/TOOLS/EQUIP 6,305 16,000 15,000 10,000 0 10, PREPARED 07/03/14, 09:02:07 BUDGET PREPARATION WORKSHEET PAGE 1 RESULTS OF DEPARTMENT REVIEW WITH CITY MANAGER 1002,7958,200 15CM CONSUMABLE ITEMS 10014ES SOME ITEMS MISCODED 2,79515CM (3)PRESSURE TRANSDUCERS (SPARE) 3,000(1)UPS SYSTEM (R)CONTINUE STANDARIZATION OF EQUIP. 1,000(1) ELECTRONIC VALVE CONTROLLER (SPARE) 3,200(1) CONTROL VALVE PILOT CONTROL (R) 1,00014ES SOME ITEMS FOUND MISCODED 15,00015,000 LEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMT INSTRUMENT REPAIRS AND VALVE REPLACEMENT ** JOURNAL ENTRY TO FOLLOW **** JOURNAL ENTRY TO FOLLOW ** PAPER TOWELS / LIGHT BULBS FUND 016 LA PORTE AREA WATER AUTH DEPT 70 PUBLIC WORKS DIV 75 LPAWA * 000048 0000 0 0900 0 0 LAST YEARS BUDGET ESTIMATE REQUESTED CITY MANAGER CITY MANAGER ACCOUNT NUMBER ACCOUNT DESCRIPTION ACTUALS 2013-14 2013-14 2014-15 ADJUSTMENTS REVIEW016-7075-533.40-12 WATER LINES 1,017 6,000 5,000 5,000 0 5,016-7075-533.40-60 TECHNOLOGY LEASE FEES 1,058 700 700 2,048 0 2,016-7075-533.40-65 COMPUTER MAINTENANCE FEES 0 0 0 0 0 016-7075-533.50-01 ACCOUNTING 6,000 6,000 6,000 6,000 0 6,016-7075-533.50-03 LEGAL 0 0 0 0 0 016-7075-533.50-06 FISCAL SERVICES 0 0 0 0 0 016-7075-533.50-07 OTHER PROFESSIONAL SERVIC 13,810 1,700 1,700 1,900 0 1,016-7075-533.50-22 TREATMENT PLANT CONSTRUCT 0 0 0 0 0 016-7075-533.50-23 LPAWA PHASE I LEGAL 0 0 0 0 0 PREPARED 07/03/14, 09:02:07 BUDGET PREPARATION WORKSHEET PAGE 2 RESULTS OF DEPARTMENT REVIEW WITH CITY MANAGER 5,0002,048 15CM INCREASE DUE TO ANTICIPATED REPAIRS TO 10,00010,00015CM TRANSMISSION LINE REPAIRS 5,00015CM SCADA SERVER - LAPTOP W/ AIR CARD 2,04814ES 8 METER TESTS SCHEDULED FOR JULY 2014 1,7001,70015CM ANNUAL METER TESTING 1,9001,900 LEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMTLEVEL TEXT TEXT AMT CONTROL VALVES AND RELATED EQUIP. FUND 016 LA PORTE AREA WATER AUTH DEPT 70 PUBLIC WORKS DIV 75 LPAWA 0 0 0 0 0 0305 0 0007481 LAST YEARS BUDGET ESTIMATE REQUESTED CITY MANAGER CITY MANAGER------------ ------------ ------------ ------------ -------------- ------------ ACCOUNT NUMBER ACCOUNT DESCRIPTION ACTUALS 2013-14 2013-14 2014-15 ADJUSTMENTS REVIEW016-7075-533.90-70 DEBT SERVICE PRINCIPAL 0 0 0 0 0 016-7075-533.90-71 DEBT SERVICE INTEREST 0 0 0 0 0 016-7075-533.90-81 REBATE TO MEMBER CITIES 0 0 0 0 0 016-7075-533.99-97 REQ FOR SPECIAL PROGRAMS 0 0 0 0 0 016-7075-570.90-73 UNDERWRITERS DISCOUNT 0 0 0 0 0 016-7075-680.90-01 ADMN TRANS TO FUND 001 0 0 0 0 0 016-7075-680.90-14 ADMN TRANS TO FUND 014 1,305 1,305 1,305 1,305 0 1,016-7075-680.90-38 ADMN TRANS TO FUND 038 0 0 0 0 0 016-7075-680.90-39 ADM TRANS TO FUND 39 0 0 0 0 0 016-7075-680.90-72 OPERATORS AGREEMENT 65,033 65,339 65,339 67,007 0 67,* LPAWA 1,567,264 1,138,431 1,080,171 1,125,221 4,260 1,129, PREPARED 07/03/14, 09:02:07 BUDGET PREPARATION WORKSHEET PAGE 4 RESULTS OF DEPARTMENT REVIEW WITH CITY MANAGER CMA 10,000- 15CM UNFORSEEN REPAIRS AND EXPENSES 25,00015,000 LEVEL TEXT TEXT AMT FUND 016 LA PORTE AREA WATER AUTH DEPT 70 PUBLIC WORKS DIV 75 LPAWA *