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07-24-14 Regular Meeting of the La Porte Area Water Authority
1111111111 goy,. oA 7 WkIl IN jr,19111,1 fi-1101"301M #17MITUM936MOT = "FEN U =qo WOMWEZ Imam= OWEN E, NVEMMUMMMOM ir V-TV�A 11 NEW Call to order. 2. Consider approval or other action of minutes from the February 12, 2014 meeting. 3. Consider approval or other action of the renewal of the Operators Agreement between the LPAWA and the City of La Porte. 4. Consider approval or other action of Fir'' 20,14 — 2015 L,PAWA Operating Budget. 5. General Manager's Report. 6. Board Comments — Matters appearing on the: Recognition of community members, city employees, and upcoming events; Inquiry of staff regarding specific factual information or existing policy. a. Matters appearing on agenda. b. Inquiry of staff requiring a statement of specific factual information or a recitation of existing policy. 7. Adjournment. In compliance with the American with Disabilities Act, the City of La Porte will provide reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received 24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. I certify that a copy of the July 24, 2014, agenda of items to be considered by the La Porte Area Water Po Authority X01's the Hall bulletin board on or before July 18, 2014. : ' , � Public Works Director I certify that the attached notice and agenda of items to be considered by the La Porte Area Water Authority was removed by me from the City Hall bulletin board on the — day of 2014. Signature of person removing from bulletin board LA PORTE AREA WATER AUTHORITY MINUTES February 12, 2014 1. The meeting was called to order at 6:02 PM by President David Janda. Members Present: President David Janda, Members Dennis Steger, Randy Woodard 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 Peterson of Null-Lairson, P.C.; Geoffrey Veuleman of 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 2013 Annual Financial Report for the LPAWA fiscal year ending September 30, 2013 and presented the audit results. In summary, it was a clean audit and the total net position of the LPAWA increased by $390,142 in 2013. After some discussion including 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 a lag in the City of Houston billing that moved an FY 2012 expense into FY 2013. Randy Woodard moved to approve the 2013 Annual Financial Report, Dennis Steger seconded, the 2013 Annual 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 6:22 PM. Secretary PASSED AND APPROVED ON THIS DAY President OPERATOR'S AGREEMENT This agreement, entered into this day of l �/, �2O 1120 I ! , 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, ;7Odd 2(H1 with 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 h(r.; t7�i r-ci 4'es'e, eR Commission of v t.y rl . 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, 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 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. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $44—,-4 ..' 0 / , 0 0 V , payable monthly, in a sum equal to 1/12 of the Annual Fee, on or before the 15th day 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, 0 d 201� through September 31, H2O 1..;') O I _, Beginning October 1, ; O. �2') O : 'U�, 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 denominator of which shall be the April 7Oid 20I Consumer 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 0 01U, and subsequent dates of adjustment. Th(", 'or. IJ-(,: �:.. a �. �� i�,� �� t.r> >L,0.. 00O... 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 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 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 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 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. ATTEST: Patrice Fogarty, City Secretary ATTEST: CITY OF LA PORTE Louis R. Rigby, Mayor LA PORTE AREA WATER AUTHORITY Secretary David Janda, President OPERATOR'S AGREEMENT This agreement, entered into this 25th day 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. OPERATOR agrees to operate, maintain, repair, and manage OWNER'S property for a term of three (3) years commencing October 1, 2014 with 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 Commission on 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, 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 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. 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 to 1/12 of the Annual Fee, on or before the 15 h day 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, 2014 through 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 denominator of which shall be the April 2014 Consumer 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 2015, 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 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 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 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 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 David Janda, President ATTEST: Doug Martin, Secretary 7/3/2014 City of La Porte La Porte Area Water Authority Fund (016) Summary Working Capital 9130113 Plus Estimated 13-14 Revenues Less Estimated 13-14 Expenses and Commitments Equals Estimated Working Capital 9130114 Plus 14-15 Revenues: Water Revenue Billing for Capital Reserve Interest Total Revenues Equals Total Resources Less 14-15 Expenses: Operations Total Expenses Equals Estimated Working Capital 9130115 Revenues Expenses Revenues over Expenses Targeted working capital - 60 to 90 days Estimated working capital - 868 days Goal: $278,502 I Day = $3,094 1,183,912 95,447 5,000 1,129,481 Estimated Projected 2013-14 2014-15 $ 1,217,218 $ 1,284,359 1,080,171 1,129,481 $ 137,047 $ 154,878 $ 2,394,445 1,217,218 1,080,171 2,531,492 1,284,359 3,815,851 1,129,481 $ 2,686,370 x W 3 H W El a F H H U a' m W F U FC W a � F �m x r h Fr H U a' W U FC w Z F � W H I r Cl F F w W H a O W U N x mx xF a' H 03 w 3 F 3 � O H H H H '> F F W m M FC a wH � o El N a z W W a' F a F Px F F FC w w a c7 I U W q M pq o w w N 0 m F a m w m a' a' W m ra Fx mF FC U a� O O O O O O O O o O O O o H H N O W O H 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H H N O W O 0 0 0 o in W W rn r N 0 o in �n o000 0 0 o rn rn o 0 0 0 0 FI F FI F F F 0 0 0 0 }G o }G }G 0 o W o W W F n F F M a H Cl 0 0 0 0 0 rn 0 F z w � a m H 3 Z W �:) 0 0 a a a H F W 7 F z w \ 0 a w m w H x m El 7 Px F w w x 0 r 0 U k H U O W F m H 11 H F n W F a m a \ 0? w a x w\ a mF F F W m F W H 'E! 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