Loading...
HomeMy WebLinkAbout02-11-15 Regular Meeting of the La Porte Area Water AuthorityLA PORTE AREA WATER AUTHORITY AGENDA Notice is hereby given of a Regular Meeting of the La Porte Area Water Authority (LPAWA) to be held on Wednesday, February 11, 2015 beginning at 6:00 pm. in the Downstairs Conference Room of the Public Works Service Center, 2963 North 23rd Street, La Porte, Texas, for the purpose of considering the following agenda items. All agenda items are subject to action. 1. Call to order. 2. Welcome new board member Charlie Perry. 3. Election of officers. 4. Consider approval or other action of minutes from the December 16, 2014 meeting. 5. Consider acceptance or other action of the LPAWA Financial Report for the Year Ended September 30, 2014. 6. Approval or other action of Resolution 2015-01, the proposed updated LPAWA Water Conservation Plan. 7. Approval or other action of Resolution 2015-02, the proposed updated LPAWA Drought Contingency Plan. 8. Discussion related City of Houston True Up related to the Southeast Houston Water Purification Plant expansion. 9. General Manager's Report. 10. 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. 11. 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. CERTIFICATION I certify that a copy of the February 11, 2014, agenda of items to be considered by the La Porte Area Water Authority was posted on the City Hall bulletin board on February 5, 2014. David S. Mick, 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 , 2015. Signature of person removing from bulletin board LA PORTE AREA WATER AUTHORITY .MINUTES December 16, 201.4 1. The meeting was called to order at 6:03 PM by Vice President Kenneth Schlather. Members Present: Vice President Kenneth Schlather, Secretary Doug Martin, Dennis Steger Members Absent: Excused absence: Randy Woodard Others Present: 2015 Board Member Charlie Perry, City of Shoreacres Administrator David Stall, Assistant City Administrator Morgan's Point Brian Schneider, City of La Porte Assistant Water/Wastewater Superintendent Ray Mayo, David Mick, City of La Porte Public Works Director. 2. The board welcomed Charlie Perry, new board member to be seated in 2015. Officer elections were deferred until the first meeting in 2015 after Charlie Perry is sworn into his board position. 4. The July 24, 2014 minutes were reviewed and unanimously approved with Doug Martin malting the motion to approve and. Dennis Steger seconding. 5. David Mick provided a general overview of the process involved in supplying treated water to the Authority with raw water pumped from the Trinity River to the Southeast Water Purification Plant to the La Porte Area Water Authority (LPAWA) to the Cities of LaPorte, Shoreacres and Morgan's Point and constraints inherent with any water supply system. Ray Mayo explained that the LPAWA Water Conservation Plan requires update by the Texas Administrative Code and then presented the proposed changes to the existing plan. The Shoreacres and Morgan's Point representatives noted that the Building Code version adopted by their councils had been updated from the version noted in the updated plan. These items will be addressed in the final version before adoption. There were no other comments fromtheboard members or guests. 6. Ray Mayo and David Mick presented proposed changes to the proposed LPAWA Drought Contingency Plan explaining that the final plans for the Cities of La Porte, Shoreacres, and Morgan's Point would for the most part mirror the LPAWA plan. Items discussed in response to questions/comments fiom board members or guests: each city will likely adopt their own penalty and variance procedures that differ from the proposed LPAWA plan, La Porte staff reduced the Drought Contingency Plan stage triggers by 10% to be more conservative/proactive in enacting the plan. components, David Stall recommended a change in the Stage 4 (Critical) restrictions to include turning off landscape lines as the initial water rationing measure. Those present concurred with the proposed changes and other language suggested to accommodate the board's suggestions. These items will be addressed in the final version before adoption. 7. There were no General Manager comments. Kenneth Schlather asked if there were additional questions or comments fiom the board. There were none. 9_ There being no farther business, the meeting adjourned at 7:34 PM. Secretary PASSED AND APPROVED ON TITIS DAY Arsident 0 rexAs LA PORTE AREA WATER AUTHORITY AGENDA Notice is hereby given of a Regular Meeting of the La Porte Area Water Authority (LPAWA) to be held on Wednesday, February 11, 2015 beginning at 6,00 pm. in the Downstairs Conference Room of the Public Works Service Center, 2963 North 23rd Street, La Porte, Texas, for the purpose of considering the following agenda items. All agenda items are subject to action, 1. Call to order. 2. Welcome new board member Charlie Perry. 3. Election of officers. - 4. Consider approval or other action of minutes from the December 16, 2014 meeting. S. Consider acceptance or other action of the LPAWA Financial Report for the Year Ended September 30, 2014. 6. Approval or other action of Resolution 2015-01, the proposed updated LPAWA Water Conservation Plan. 7. Approval or other action of Resolution 2015-02, the proposed updated LPAWA Drought Contingency Plan. 8. Discussion related City of Houston True Up related to the Southeast Houston Water Purification Plant expansion. 9. General Manager's Report. 10. 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. 11. 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. CERTIFICATION I certify that�q copy of the February 11, 2014, agenda of items to be considered by the La Porte Area Water Authority s p to on t Hall bulletin board on February 5, 2014. id S. Vick, Pub is 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 Halt bulletin board on the day of 2015. Signature of person removing from bulletin board City of La Porte Public Works Department F-staklished 1892 Providing essential public services to the citizens of La Porte in the most efficient and cost effective manner possible. �`4CA6 February 5, 2015 To: La Porte Area Authority Board Members Copy: David Stall, Shoreacres Administrator Brian Schneider, Morgan's Point Assistant Administrator From: David Mick, La Porte Public Works Director RE: February 11, 2015 LPAWA Board Meeting Board Members: A draft financial report is attached for the year ending September 30, 2014 for the board's consideration. The final report will be presented at this February 11 meeting. On January 12 City Council reviewed the LPAWA Water Conservation and Drought Contingency plans considered by this board. The only differences in the January 12 plans reviewed by City Council from the December 16 plans reviewed by the LPAWA board were the highlighted revisions prompted by our discussions during the December 16 LPAWA board meeting. There were no fiuther comments received from City Council. Our recommendation is that the LPAWA consider approving the updated plans by resolution. The City of Houston (COH) released an email August 25, 2014 for true up of the SE Plant expansion. The LPAWA portion of the true up cost was an additional $292,392.64. However, the item was almost immediately set aside by COH pending an audit of the construction costs. The audited totals have not been received as of the date of this email. This will be an item of discussion for the meeting. Attached: December 16, 2015 LPAWA Board Meeting Minutes 2-2-2015 Draft of the LPAWA Financial Report Updated LPAWA Water Conservation Plan Updated LPAWA Drought Contingency PIan 2963 N. 23rd St. m La Porte, Texas 77571 0 (281)471-9650 . www.laportetx.gov LA PORTE AREA WATER AUTHORITY MINUTES December 16, 201.4 The meeting was called to order at 6:03 PM by Vice President Kenneth Schlather. Members Present: Vice President Kenneth Schlather, Secretary Doug Martin, Dennis Steger Members Absent: Excused absence: Randy Woodard Others Present: 2015 Board Member Charlie Perry, City of Shoreacres Administrator David Stall, Assistant City Administrator Morgan's Point Brian Schneider, City of La Porte Assistant Water/Wastewater Superintendent Ray Mayo, David Mick, City of La Porte Public Works Director. 2. The board welcomed Charlie Perry, new board member to be seated in 2015. 3. Officer elections were deferred until the first meeting in 2015 after Charlie Perry is sworn into his board position. 4. The July 24, 2014 minutes were reviewed and unanimously approved with Doug Martin malting the motion to approve and Dennis Steger seconding. 5. David Mick provided a general overview of the process involved in supplying treated water to the Authority with raw water pumped from the Trinity River to the Southeast Water Purification. Plant to the La Porte Area Water Authority (LPAWA) to the Cities of La Porte, Shoreacres and Morgan's Point and constraints inherent with any water supply system. Ray Mayo explained that the LPAWA Water Conservation Plan requires update by the Texas Administrative Code and then presented the proposed changes to the existing plan. The Shoreacres and Morgan's Point representatives noted that the Building Code version adopted by their councils had been updated from the version noted in the updated plan. These items will be addressed in the final version before adoption. There were no other comments from the board members or guests. 6. Ray Mayo and David Mick presented proposed changes to the proposed LPAWA Drought Contingency Plan explaining that the final plans for the Cities of La Porte, Shoreacres, and Morgan's Point would for the most part mirror the LPAWA plan. Items discussed in response to questions/comments from board members or guests: each city will likely adopt their own penalty and variance procedures that differ from the proposed LPAWA plan, La Porte staff reduced the Drought Contingency Plan stage triggers by 10% to be more conservative/proactive in enacting the plan components, David Stall recommended a change in the Stage 4 (Critical) restrictions to include turning off landscape lines as the initial water rationing measure. Those present concurred with the proposed changes and other language suggested to accommodate the board's suggestions. These items will be addressed in the final version before adoption. 7. There were no General Manager comments. Kenneth Schlather asked if there were additional questions or comments from the board. There were none. There being no further business, the meeting adjourned at 7:34 PM. Secretary PASSED AND APPROVED ON THIS DAY President LA PORTE AREA WATER AUTHORITY HARRIS COUNTY, TEXAS FINANCIAL REPORT For the Year Ended September 30, 20l4 r uraft 2 2215 1 LA PORTE AREA WATER AUTHORITY TABLE OF CONTENTS Exhibit Page Report of Independent Auditors 1 Management's Discussion and Analysis 4 Basic Financial Statements Statement of Net Position B-1 10 Statement of Revenues, Expenses and Changes in Net Position B-2 11 Statement of Cash Flows B-3 12 Notes to the Financial Statements C-1 13 Supplemental Information Supplemental Schedules Included Within this Report 23 Schedule of Service and Rates E 24 Schedule of Enterprise Fund Expenses F 25 Schedule of Temporary Investments G 26 Schedule of Changes in Capital Assets 1 27 Long -Term Debt Service Requirements by Years 1 28 Analysis of Changes in Long -Term Debt K 29 Schedule of Revenues and Expenses -'Five Years L 30 Insurance Coverage M 33 Board Members, Key Personnel and Consultants N 34 Schedule of Revenues and Expenses - 36 Budget and Actual (Budgetary Basis) t t -2 2 U :� (This page intentionally left blank) cift 2-:Z,,,2 ur% REPORT OF INDEPENDENT AUDITORS To the Board of Directors of The La Porte Area Water Authority La Porte, Texas We have audited the accompanying basic financial statements of the La Porte Area Water Authority (the "Authority"), a component unit of the City of La Porte, Texas as of and for the year ended September 30, 2014, and the related notes to the financial statements, as fisted in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fiaud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In malting those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates trade by x3anagem el v g t e o eral r. enta nLji.lcitf-atemeints. RM We believe that th rt i e ave krtained ffrci iaro de a basis for P v our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority, as of September 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 4 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The Texas Supplementary Information unless marked "unaudited" and the Schedule of Revenues and Expenses — Budget and Actual --- (Budgetary Basis), is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Texas City, Texas February 11, 2015 Draft 2-2 20117 �r 2 MANAGEMENT'S DISCUSSION AND ANALYSIS D r"a R 2 4� 1 -i LA PORTE AREA WATER AUTHORITY Management's Discussion and Analysis As management of the La Porte Area Water Authority, we offer readers of the Water Authority's financial statements this narrative overview and analysis of the financial activities of the Water Authority for the fiscal year ended September 30, 2014, Financial Highlights The assets of the La Porte Area Water Authority exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $8,032,040 (net position). Of this amount, $2,227,635, unrestricted net position, may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the Water Authority's fund designation and fund policies. • The government's total net position increased by $534,706. • The Water Authority's total bonded debt decreased $647,312 by during the current fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction of the Water Authority's basic financial statements. The La Porte Area Water Authority is considered a component unit of the City of LaPorte, Texas since the Water Authority provides approximately 86% of its services for the exclusive benefit of the City of La Porte. The Water Authority's basic financial statements are comprised of the fund financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Fund financial statements -- The operations of the Water Authority are recorded in a proprietary (enterprise) fund. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Water Authority, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The statement of net position presents information on all the Water Authority's assets, liabilities and deferred inflows of resources, with the difference between the three reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Water Authority is improving or deteriorating. The statement of revenues, expenses and changes in net position presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiseD'�ae Peofts e .. ct r eiva : es d co : p d � o suppliers). The fund financial e o - d o es 1 1 f th e� o. 4 LA PORTE AREA WATER AUTHORITY Management's Discussion and Analysis (continued) Notes to the Financial Statements -- The notes provide additional information that is essential to a full understanding of the data provided in the fund financial statements. The notes to the financial statements can be found on pages 13-19 of this report. Other Information -- In addition to the basic financial statements and accompanying notes, this report also presents certain supplementary information concerning the Water Authority's operations. Required supplementary information can be found on pages 23-36 of this report. Financial Analysis of the Government's Funds As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the La Porte Area Water Authority, assets exceeded liabilities and deferred inflows of resources by $8,032,040 at the close of the fiscal year. The largest portion of the Water Authority's net position $4,657,245 reflects its investment in capital assets (e.g., water production and distribution system), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide water services to the participants; consequently, these assets are not available for future spending. Although the Water Authority's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. La Porte Area Water Authority's Net position Current and other assets Capital assets Total Assets Current liabilities Noncurrent liabilities Total Liabilities Total Deferred inflows of resources Net Position: Business -Type Activities 2014 2013 $ 3,423,506 6,344,826 9,768,332 698,711 1,032,550 1,731,261 3,105, 935 6,809,826 9,915,661 711,390 1,699,862 2,411,252 5,031 7,075 Net Investment in capital assets 4,657,245 4,479,964 Restricted 1,147,160 1,147,160 Unrestricte 19,ma °, 3 1,870,210 TotaNitio F ft 2 28,2,40 7,497,334 S,.w An additional portion of the Authority's net position (14%) represents resources that are subject to external restrictions for debt service. The remaining balance of unrestricted net position of $2,227,635 represents funds available to meet other ongoing obligations to participants and/or creditors. LA PORTE AREA WATER AUTHORITY Management'sDiseussion and Analysis (continued) Analysis of the Water Authority's Operations — the following table provides a summary of the Water Authority's operations for the year ended September 30, 2014. LaPorte Area Water Authority's Change in Netposition Operating revenues: Charges for Services Total operating revenues Operating expenses: Supplies Purchased water Services and charges Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Change in net position Net Position - Beginning Total Net Position - ending Business -Type Activities 2014 2013 $ 1,195,886 $ 1,213,334 1,195,886 1,213,334 1,015 8,090 8501142 999,647 95,976 95,106 465,000 464,999 1,412,133 1,567,842 (216,247) (354,508) (33,784) (49,204) (250,031) (403,712) 784,737 793,854 534,706 390,142 7,497,334 7,107,192 $ 8,032,040 $ 7,497,334 Total net position increased by $534,706 in 2014. The actual water revenue for fiscal year ended September 30, 2014, of $1,195,886 was $3,785 higher than the amount budgeted of $1,192,101 Jim 11J LA PORTE AREA WATER AUTHORITY Management's Discussion and Analysis (continued) Capital Assets and Debt Administration Capital Assets - The La Porte Area Water Authority's investment in capital assets as of September 30, 2014 amounts to $6,344,826 (net of accumulated depreciation). There were not any additions or retirements of capital assets during the current fiscal year. The only activity is current year depreciation in the amount of $465,000. Capital assets at year end consisted of the following: Ending Balance Water, sewer and drainage facilities Water production and distribution system $ 6,344,826 $ 6,344,826 Additional information of the La Porte Area Water Authority's capital assets can be found in Note 5 on page 16 of this report. Debt Administration — At the end of the fiscal year, the La Porte Area Water Authority had bonded debt payable of secured solely by water and sewer revenues. The revenue bonds have been rated "AA" by Standard & Poor's, Fitch and Moody's rating agencies. Additional information on the Water Authority's long-term debt can be found in Note 7 on page 17-18 of this report. Economic Facts and Next Year's Budgets and Rates The Water Authority has benefited from a strong and expanding economy from the past several years. In the coming fiscal year the Water Authority's budget is expected to remain relatively consistent with prior year. Request for Information This financial report is designed to provide a general overview of the La Porte Area Water Authority's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report of requests for additional information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas, 77571. (This page intentionally left blank) .r ; i n _ all 57-7 v BASIC FINANCIAL STATEMENTS LA PORTE AREA WATER AUTHORITY EXHIBIT B-1 STATEMENT OF NET POSITION Septeinber 30, 20I4 Assets Current assets: Cash $ 856,608 Investments 1,692,952 Accounts receivable, net of allowance for doubtful accounts 182,551 Accrued interest receivable 1,673 Restricted assets: Restricted cash and temporary investments 689,722 Total current assets 3,423,506 Noncurrent assets: Water production and distribution system 15,435,810 Less: accumulated depreciation (9,090,984) Total noncurrent assets 6,344,826 Total Assets 9.76R 112 Liabilities Current liabilities: Accounts payable $ 46,595 Current liabilities (payable from restricted assets): Current portion of revenue bonds 650,000 Accrued interest 2,116 Total current liabilities 698,711 Noncurrent liabilities Revenue bond, net of current portion 1,032,550 Total Liabilities 1,731,261 Deferred Inflows of Resources Deferred gain on refunding 5,031 Total deferred inflows of resources 5.031 Net Position See Notes to the Financial Statements. 10 LA PORTS .AREA WATER AUTHORITY EXHIBITB 2 STATEMENT OF REVENUES, EXPENSES AND CHANGES INNET .POSITION For the Year Ended September 30, 20I4 Operating Revenues Charges for services $ 1,195,886 Total operating revenues 1,195,886 Operating Expenses Supplies 1,015 Purchased grater 850,142 Other services and charges 95,976 Depreciation 465,000 Total operating expenses 1,412,133 Operating income (loss) (216,247) Nonoperating Revenues (Expenses) Interest income 4,854 Interest expense and fiscal charges (38,638) Total nonoperating revenue (expenses) (33,784) Income (loss) before contributions and transfers (250,031) Capital contributions 784,737 Change in net position 534,706 Net Position - Beginning 7,497,334 Total Net Position- Ending $ 8,032,040 See Notes to the Financial Statements. 11 LA PORTS AREA WATER AUTHORITY EXHIBIT B-3 STATEMENT OF CASH FLOWS Year Ended September 30, 2014 Cash Flows from Operating Activities Receipts from customers $ 1,184,749 Payments to suppliers (959,800) Net cash provided by operating activities 224,949 Cash Flows from Capital and Related Financing Activities Payments received from participants for debt service 688,650 Payments received from participants for capital recovery 96,087 Principal payments on revenue bonds (649,356) Interest paid on capital debt (58,650) Net cash provided by capital and related financing activities 76,731 Cash Flows from Investing Activities Sale of investments (343,298) Interest and dividends 4,317 Net cash provided by investing activities (338,981) Net (decrease) in cash and cash equivalents (37,301) Balances - beginning of the year 1,583,631 Balances - end of the year $ 1,546,330 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (216,247) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 465,000 Amortization 17,312 Change in assets and liabilities: Receivables, net (11,137) Deferred gain on refunding 2,044 Accounts payable (32,023) See Notes to the Financial Statements. 12 LA PORTE AREA WATER AUTHORITY NOTES TO THE FINANCIAL STATEMENTS Note 1 - Creation of Authority EXHIBIT C-I The La Porte Area Water Authority (the "Authority") was created on May 30, 1981 by Chapter 729, rage 2678, Acts of the 67th Legislature of the State of Texas. This bill authorizes the Authority to purchase, construct or otherwise acquire waterworks systems, sanitary sewer systems, storm sewer systems and drainage facilities or parts of such systems of facilities and to operate and maintain such facilities. The Authority is authorized to set rates for services related to the aforementioned systems and facilities, and issue revenue bonds for the purpose of acquiring and maintaining such systems. The Authority comprises approximately 20,600 acres in Harris County, Texas. Note 2 - Summary of Significant Accounting Policies The accounting policies of the Authority conform with generally accepted accounting principles. The following is a summary of the most significant policies: A. Repotting Entity Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants in the publication entitled Audits of State and Local Goyenu-rental Units and by the Financial Accounting Standards Board (when applicable). GASB Statement 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements ("GASB 62'), which incorporates into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict or contradict GASB pronouncements: 1) Financial Accounting Standards Board (FASB) Statements and Interpretations; 2) Accounting Principles Board Opinions; 3) Accounting Research Bulletins of the American Institute of Certified Public Accountants' (AICPA) Committee on Accounting Procedure. Implementation of GASB 62 is reflected in the financial statements and notes to the financial statements. Consideration regarding the potential for inclusion of other entities, organizations or functions in the Authority's financial reporting entity is based on criteria prescribed by generally accepted accounting principles. These same criteria are evaluated in considering whether the Authority is a part of any other governmental or other type of reporting entity. Criteria for determining component unit status under generally accepted accounting principles included considerations pertaining- to organizations for which the primary government is financially accountable and considerations pertaining to other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The La Porte Area Water Authority is considered a component unit of the City of La Porte, Texas by virtue of meeting the criteria noted above. The primary factor in detefTw41c mponent unit status is that the Authority provides ppr acofecdt-dnit. ts2armhi2nitri es exc sr t � ztry of LaPorte. The Authority's fmanci op oedsF Ci 's Co ; prehensive Annual Fnancial Report as nd dCia Po d t asI' iriiary Government" throughout the authority's financial statements. 13 LA PORTE AREA 'WATER AUTHORITY =IIHIT C 1 NOTES TO THE FINANCIAL STATEMENTS (Continued) Note 2 - Summary of Significant Accounting Policies (continued) B. Fund Accounting The operations of the Authority are recorded in an enterprise fund. Enterprise funds are used to account for operations (a) that are financed primarily through user charges or (b) where the governing body has decided that determination of net income is appropriate. The enterprise fund is a proprietary fund type. C. Basis of Accounting Enterprise Funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are presented on the statement of net position is a classified format to distinguish between current and long-term assets and liabilities. Net position is presented in three components: net investment in capital assets; restricted; and unrestricted. Enterprise fund operating statements present increases (e.g., revenues), decreases (e.g., expenses) and changes in net position. Enterprise funds are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized at the time liabilities are incurred. D. Cash Equivalents For purposes of the statement of cash flows, the Authority considers cash held in demand accounts and all short-term investments with a maturity at date of purchase of three months or less to be cash equivalents. E. Physical Facilities and Depreciation Fixed assets, which consist of a water production and distribution system, are shown at original cost. Interest paid during construction of facilities, if any, is also included in this cost. Depreciation has been provided for the Authority's water production and distribution system using the straight-line method over a 30-year estimated useful life. Note 3 - Cash and Cash Equivalents Cash and cash equivalents represent the Authority's equity interest in the City's consolidated cash and cash equivalents account consisting of demand accounts and short-term investments with a maturity at date of purchase of three months or less. State statutes require that all funds in depository institutions be covered by federal depository insurance and/or be secured in the manner provided by law for security of funds. Cash and cash equivalent balances held by the City were entirely covered by federal depository insurance or security as required at September 30, 2014. At year end a and reserve requirements per bond covenants Total Restricted Cash and Temporary Investments as follows: $ 689,722 $ 689,722 14 LA PORTE AREA WATER AUTHORITY EXHIBIT C-I NOTES TO THE FINANCIAL STATEMENTS (continued) Note 4 - Temporary Investments Temporary investments represent the Authority's equity interest in the City's investment pool. At year end a portion of the Authority's cash and temporary investments were restricted as follow: The carrying amount for temporary investments, at September 30, 2014, was $1,692,952, which is fair value. This represents 7.72% of the City's total portfolio. Pooled investments with the City consist of obligations of the United States and its agencies and investment pools in accordance with state statutes and the City's investment policies. Securities are registered and held by their agent in the City's name. Interest earnings are allocated on a pro-rata basis. The investment pool is not registered with the SEC or subject to any regulatory oversight. The fair value of the position in the pool is the same as the value of pool shares. The City has adopted GASB Statement No. 31, which establishes accounting and reporting standards for all of the City's investments. In accordance with Statement No. 31, the City reports all investments at fair value, except for "money market investments" and "2a7-like pools". Money market investments, which are short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs. Investment positions in external investment pools that are operated in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool and LOGIC, are reported using the pools' share price. Interest Rafe Mslc The Authority's investment policy specifies that the maximum stated maturity, from the date of purchase for any individual investment may not exceed 5 years and the maximum dollar -weighted average maturity for the pooled fund group may not exceed 2 years. At year end, the Authority's dollar -weighted average maturity of the investment portfolio was as follows: Investment Type Public funds investment pools Federal Home Loan Mortgage Corporation (FHLMC) Federal National Mortgage Association (FNMA) Federal Farm Credit Bank (FFCB) Farmer Mac(FAMCA) Federal Home Loan Bank (FHLB) Portfolio Weighted Average Maturity Weighted Average Maturity (months) 1.7 28.3 19.7 18.0 1.1 29.6 14.3 15 LA PORTE AREA WATER AUTHORITY EXHIBIT C-1 NOTES TO THE FINANCIAL STATEMENTS (continued) Note 4 - Temporary Investments (continued) Concentration of Credit Risk The Authority's investment policy places no limit on the amount the government may invest in any one issuer. At September 30, 2014, the Authority's investment portfolio consisted of the following investments: Investment Type Public funds investment pools US Agency securities G}editRisk Percentage of Total Portfolio 58% 42% 100% At year end balances in TexPool, a privately managed public funds investment pool was rated AAAm by Standard & Poor's and balances in LOGIC, a privately managed public funds investment pool was rated AAAm by Standard & Poor's. Federal Home Loan Mortgage Corporation notes, Federal Home Loan Banks bonds, Farmer Mac and Federal Farm Credit Bank notes were rated AA+ by Standard & Poor's. All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the Authority's investment policy. Note 5 - Capital Assets An analysis of changes in physical facilities for the year ended September 30, 2014 follows: Beginning Retirements & Ending Balance Additions Adjustments Balance Capital assets being depreciated Water production and distribution system $ 15,435,810 $ $ $ 15,435,810 Less accumulated depreciation for: Water production and distribution system (8,625,984) (465,000) (9,090,984) Total capital assets being depreciated, net 6,809,826 (465,000) 6,344,826 Investment in capital assets feom; Contributions by pay ipa<n ,809, 6 $�w-- PM 46 0 ) $ $ 6,344,826 *D epreciation expense of $465,000 charged to water services fa nctionlprogram. 16 LA PORTE AREA WATER AUTHORITY EXHIBIT G1 NOTES TO THE FINANCIAL STATEMENTS (continued) Note 6 - Southeast Water Purification Plant The Authority and the City of Houston, Texas have entered into a Cost Sharing Water Project Contract (the "Contract") wherein the Authority, the Cities of La Porte, Morgan's Point and Shoreacres agree to jointly finance the construction and operation of the Southeast Water Purification Plant (Southeast Plant). Under the terms of the Contract, the Authority purchased 4.2 million gallons per day production and 5.25 million gallons per day pumping capacity. The Cities of LaPorte, Morgans Point and Shoreacres have agreed to demand and pumping allocations of the Authority's purchase of water from the Southeast Plant. The required funds for the undivided interest in the Southeast Plant and the construction of a transmission and distribution system to transport water from the Southeast Plant were provided by issuance of $9.8 million revenue bonds. The water rate to be set by the Authority will not be less than an amount sufficient to provide for payment of all expenses in producing, treating and pumping the water in connection with transmission and distribution systems and to provide payment for the interest and principal of all bonds when the bonds become due and payable. Note 7 - Contract Revenue Bonds Payable, Debt Service Requirements and Bond Resolution Requirements On May 13, 2010, the La Porte Area Water Authority issued $4.085 million in Contract Revenue Refunding Bonds, Series 2010, with an average interest rate of 2.773% to purchase U.S. Government State and Local Government Series securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of $2.95 million of unlimited tax bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the statement of net position. The bonds are payable from the net revenue of the Authority. The bonds are in $5,000 denominations. Interest is payable on March 15 and September 15 of each year to maturity. The Authority is in compliance with all significant requirements and restrictions contained in the bond resolution. None of the Refunded Bonds are outstanding at September 30, 2015. Bonds payable at September 30, 2014, are comprised of the following issue. Interest Amount Interest Maturity Payment Outstanding Rate Date Date $ 1,640,000 2.25-4.00% March 15, 2017 March 151 September 15 Bonds payable activity for the year ended September 30, 2014 was as follows: rat'itgz & 5ing Amounts Due Within Bonds and Notes Payable Balance Additions Adjustments Balance One Year Contract Revenue Refunding $ 2,270,000 $ $ (630,000) $ 1,640,000 $ 650,000 Premium on bonds 59,862 (17,312) 42,550 $ 2,329,862 $ $ (647,312) $ 1,682,550 $ 650,000 17 LA PORTE AREA WATER AUTHORITY NOTES TO THE FINANCIAL STATEMENTS (continued) EXHIBIT C I Note 7 - Contract Revenue Bonds Payable, Debt Service Requirements and Bond Resolution. Requirements (continued) As of September 30, 2014, the debt service requirements on contract revenue bonds outstanding for the next five fiscal years are as follows: Due During Fiscal Year Annual Requirement for All Bond Series Ending Total Total Total 9/30 Principal Interest Requirements 2015 650,000 41,838 �$ 691,838 2016 670,000 22,850 692,850 2017 320,000 6,400 326,400 $ 1,640,000 $ 71,088 $ 1,711,088 Note 8 - Fund Net Position The Authority provides surface water to the City of LaPorte, Texas (the "City") and the Cities of Shoreacres and Morgan's Point in order for these entities to comply with certain requirements imposed by the Harris County Subsidence District. The City retains the rights to approximately 86% of the water capacity of the Authority with the Cities of Shoreacres and Morgan's Point retaining the rights to the remaining 14%. The City, Shoreacres and Morgan's Point have agreed to service the debt on the Authority's contract revenue bonds and to fund operations of the Authority in relation to their capacity rights and to purchase water based on actual consumption. As part of the debt service requirements, the participants are billed to build a reserve for future debt service requirements as set forth in the contract revenue bonds of the Authority. During the year, the Authority's billings were applied as follows: Water Supplied and Operating costs(User fees) $ 1,081,189 Debt Service Billings/ Charges 688,650 Capital recovery billings 96,087 Total Billings $ 1,865,926 Note 9 - Risk Management The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Authority participates (through an endorsement on the City of La Porte's contract) along with other entities in the Texas Municipal League's Intergovernmental Risk Pool. The pool purchases commercial insurance at group rates for participants in the pool. Neither the o 'ty r e as a . nal7as r res o € t e p , outside of payment of insurance prerni s. th u - ority ."i . tl re c urance coverage or had settlements that ed e oun - , thehree atl s. 18 LA PORTE AREA WATER AUTHORITY EXHIBIT C X NOTES TO THE FTNANCTAL STATEMENTS (continued) Note 10 - Economic Dependency The Authority receives all of its support from three municipalities, with the City of La Porte being the largest contributor at approximately 86%. In addition, the Authority contracts with the City of La forte to provide administrative oversight acid operate the Authority's transmissions system. ---- 7 S Y 3 t i � � 3 r✓� f .y 19 ('This page intentionally left blank.) 20 SUPPLEMENTARY INFORMATION 21 (This page ietionZ/Z blank 22 LA PORTE AREA WATER AUTHORITY SUPPLEMENTAL SCHEDULES INCLUDED WITHIN THIS REPORT September 30, 2014 (Schedules included are checked or explanatory notes provided for omitted schedules.) ® D. Notes Required by the Water District Accounting Manual See "Notes to the Financial Statements (Exhibit C-1)," Pages 13-19 ® E. Schedule of Services and Rates ® ' F. Schedule of Enterprise Fund Expenses ® G. Schedule of Temporary Investments ❑ H. Analysis of Taxes Levied and Receivable (No tax levy) ® I. Schedule of Changes in Fixed Assets ® J. Long -Term Debt Service Requirements, by Years ® K. Analysis of Changes in Long -Term Debt ® L. Statement of Revenues and Expenses, Enterprise Fund -- Five Years ® M. Insurance Coverage ® N. Board Members, Key Personnel and Consultants ❑ O. Statement of Revenues, Expenses and. Changes in Working Capital - Budget and Actual, Non-GAAP Presentation 23 LA PORTE AREA WATER AUTHORITY SCHED ULE E SCHEDULE OF SERVICE AND RATES Year ended September 30, 2014 1. Set vices provided by the District: Retail Water X Wholesale Water Drainage Retail Sewer Wholesale Sewer Irrigation Parks/Recreation Fire Protection Security Solid Waste/Garbage Flood Control Roads Participates in joint venture, regional system, and and/or wastewater service (other than emergency interconnect) Other 2. Total Water Consumption during the Fiscal Year: (You may omit this information if your district does not provide water) Gallons pumped into system: 1,527,987,000 Water Accountability Ratio: (Gallons billed/Gallons pwnpcd) Gallons balled to customers: 1,411,381,000 92.4% 3. Standby fees: Does the District assess standby fees? Yes No X 4. Location of District: County in which the District is located: Harris County Is the District located entirely within one county? Yes X No Is the District located within a City? Entirely Partly X Not at all City in which District is located Morgan's Point, Shoreacres and La Porte Is the Authority located within a city's extra territorial jurisdiction (ETJ)? Entirely Partly --A Not at all City in which Authority is located Morgan's Point, Shoreacres and La Porte Is the general membership of the Board appointed by an office outside the Authority? Yes X No If yes, by LaPorte 2015 !j' � y^ � ram; Dal'aaft �s=� " 24 LA PORTE AREA WATER AUTHORITY SCHEDULE OF ENTERPRISE FUND EXPENSES September 30, 2014 Professional Fees Auditing Other Purchased Service for Resale Bulb water purchase Contracted Services Management/operation (primary goveiTment) Administrative Expenses Supplies Other administrative Other Expenses Depreciation Total Expenses Number of persons employed by the District $ 6,000 3,039 850,142 66,644 1,015 20,293 465,000 $ 1,412,133 SCHEDULE F 25 LA PORTE AREA WATER AUTHORITY SCHEDULE OF TEMPORARYINVESTMENTS Year ended September 30, 2014 Equity interest in City of La Porte's investment pool Interest Maturity Rate* Date 0.84% Demand SCHEDULE G Accrued Pace Interest Amount Receivable $ 1,692,952 $ 1,673 Pooled investments with the City of La Porte consist of obligations of the United States and its agencies and investment pools in accordance with state statutes and the City of La Porte's investment policies. *Approximate return for September 2014. 26 LA PORTE AREA WATER AUTHORITY SCHED ULE OF CHANGES IN CAPITAL ASSETS Year ended September 30, 20I4 Capital assets being depreciated Water production and distribution system Less accumulated depreciation for: Water production and distribution system Total capital assets being depreciated, net Investment in capital assets from: Contributions by participants See Accompanying Auditor's Report. Beginning Balance $ 15,435,810 $ SCHEDULE I Retirements & Ending Additions Adjustments Balance $ $ 15,435,810 (8,625,984) (465,000) (9,090,984) 6,809,826 (465,000) 6,344,826 $ 6,809,826 $ (465,000) $ $ 6,344,826 27 LA PORTE AREA WATER AUTHORITY LONG-TERMDEBT SERVICE REQUIREMENTS BY YEARS September 30, 2014 Due During SCL£EDULE T Fiscal Year Annual Requirement for All Bond Series Ending Total Total Total 9/30 Principal Interest Requirements 2015 650,000 41,838 $ 691,838 2016 670,000 22,850 692,950 2017 320,000 6,400 326,400 $ 1,640,000 $ 71,088 $ 1,711,088 See Accompanying Auditor's Report. 28 LA PORTE AREA WATER AUTHORITY SCHEDULE K ANAL ySIS OF CHANGES INLONG--TERM DEBT Year evaded September 30, 2014 Series 2010 Total Interest -rate 2.25 % to 4.0% Date interest payable 03/15;09/15 Maturity dates 03/15/11-03/15/17 Bonds outstanding at beginning of year $ 2,270,000 $ 2,270,000 Retirements (630,000) (630,000) Refunded Issued Bonds outstanding at end of year $ 1,640,000 $ 1,640,000 Interest paid $ 38,638 $ 38,638 Puing A enVRe istrar Refunding Bonds Series 2010 the Bank of New York Mellon Trust Company, N.A. ---- Dallas, Texas Contract Tax Revenue Refunding Bond Authority Bonds* Bonds Bonds Amount authorized by voters $ - N/A N/A Amount issued - - 4,085,000 Remaining to be issued $ - $ - $ - * Includes all bonds secured with tax revenues. Bonds in this category may also be secured with other revenues in combination with taxes. Cash d to ue It b es as o e or ' 2 0 1 0 4 2 5,2,282 Average annual debt service payment (principal and interest) for remaining term of all debt $ 427,772 29 LA PORTE AREA WATER AUTHORITY SCHEDULE OFRE VENUES AND EXPENSES -FIVE YEARS September 30, 2014 AMOUNTS 2014 2013 2012 2011 2010 Operating Revenues User fees $ 1,195,886 $ 1,213,334 $ 1,294,479 $ 1,246,186 $ 962,843 Operating Expenses Supplies Purchased water Services and charges Depreciation Total Operating Expenses Operating Loss Nonoperating Revenues (Expenses) Interest income Interest expense Net nonoperating Revenues Income (loss) Before Contributions and Operating Transfers Capital Contributions Net Income (Loss) No restatement for years 2011 - 2004 See Accompanying Auditor's Report, 1,015 8,090 4,207 5,343 7,050 850,142 999,647 1,264,050 1,006,229 818,482 95,976 95,106 107,012 81,110 89,202 465,000 464,999 462,938 460,877 461,465 1,412,133 1,567,842 1,838,207 1,553,559 1,376, I99 (216,247) (354,508) (543,728) (307,373) (413,356) 4,854 4,362 5,945 25,167 29,957 (38,638) (53,566) (128,217) (112,713) (243,859) (33,784) (49,204) (122,272) (87,546) (213,902) (250,031) (403,712) (666,000) (394,9I9) (627,258) 794,737 793,854 752,242 791,435 860,304 $ 534,706 $ 390,142 $ 86,242 $ 396,516 $ 233,046 30 SCHEDULE L PERCENT OF TOTAL REVENUES 2014 2013 2012 2011 2010 100.00% 100.00% 100.00% 100.00% 100.00% 0.08% 0.67% 0.32% 0,43% 0.73% 71.09% 82,39% 97,65% 90.74% 85.01% 8.03% 7,84% 8.27% 6.51% 9.26% 38.88% 38.32% 35.76% 3698% 47.93% 118.07% 129.22% 142.00% 124.67% 142.93% -18.07% -29.22% -42,00% -24,67% -42,93% 0.41% 0.36% 0.46% 2.02% 3.11% -3.23% -4.4I% -990% -9.04% -25.33% -2.84% -4.06% -9.45% -7.03% -22.23% -20,91% -33.27% -51.45% -31.69% -65.15% 65.62% 65.43% 58.11% 63.51% 89.35% 44.71% 32.15% 6,66% 31.81% 24.20% .i' • � � � %� Fn -�-3 is i�s - - \ -• 31 (This page intentionally left blank.) 32 LA PORTE AREA WATER AUTHORITY .INSURANCE COVERAGE Seplember30, 20.i4 Type of Coverage Comprehensive General and Contractual Liability Bodily Iqjury and Property Damage: Per occurrence Aggregate Deductible Pollution Liability Errors and Omissions** Per act Aggregate Deductible Automobile Liability Each occurrence Each person Deductible SCHEDULE'M Amount of Policy CIause From/To Coverage Insurer Name Insurance 10/01/13- $ - Texas Municipal League None 10/01/14 Intergovernmental Risk Pool* 2,000,000 4,000,000 5,000 10/01/13- 2,000,000 Texas Municipal League 10/01/14 Intergovernmental Risk Pool* 10/01113- Texas Municipal League 10/01/14 Intergovernmental Risk Pool* 3,000,000 6,000,000 5,000 10/01/13- Texas Municipal League 10/01/14 Intergovernmental Risk Pool* 1,000,000 25,000 1,000 "Directors are covered under the errors and omission policy. See Accompanying Auditor's Report. None None None 33 EA FORTE AREA WATER AUTHORITY SCHEDULEN BOARD MEMBERS, KEY PERSONNEL AND CONSUL TAIVTS Page I of .2 September 30, 2074 Authority's Mailing Address: City of La Porte Michael Dolby 604 W. Fairmont Parkway LaPorte, Texas 77571 Authority's Business Phone Number: (281) 471-5020 Term of Office/ Appointed/ Expense Resident of Name and Address Expires Reimbursements Title at Year End Authority Board Members David Janda 8/30/2014 President 3601 East Desert Dr. Yes Position 4 LaPorte, TX 77571 8/31/2016 Doug Martin 6/11/2012 Secretary 1103 Oak Leaf Yes Position 3 LaPorte, TX 77571 8/31/2015 Randy Woodard 8/30/2013 Member 2601 S. Broadway Yes Position 1 LaPorte, TX 77571 8/31/2015 Ken Schlather 8/30/2014 Vice President 9811 Catlett Yes Position 5 LaPorte, TX 77571 8/31/2016 Dennis H. Steger 8/30/2013 Member 3201 Bayshore Dr. Yes Position 2 LaPorte, TX 77571 8/31/2015 Key Administrative Personnel Corby Alexander General Manager Michael Dolby Director of Finance Note: No director has an business or family relationship (as defined by the Texas Water Code) with major landowners ' e u i r y AuthQ i s co 10 See Accompanyin tto 's ' — r . 015 34 LA FORTE AREA WATER AUTHORITY BOARD MEMBERS, KEYPERSONNEL AND CONSULTANTS September 30, 2014 Fees and Expense Name and Address Date Hired Reimbursements COHNIMa711S City of La Porte 604 W. Faurnont Parkway La Porte, TX 77571 Whitley Penn, LLP 2000 Loop 197 North, Suite 200 Texas City, Texas 77590 The Bank of New York Global Corporate Trust 2001 Bryan Street, 10th floor Dallas, TX 75201 See Accompanying Auditor's Report. ul a SCHED ULE N Page 2 of 2 Title 1981 $65,339 Management/Operator 2012 $6,000 Auditor 1999 $0 Paying Agent 35 LA PORTE AREA WATER AUTHORITY WATER CONSERVATION PLAN A. BACKGROUND In 1981 the State of Texas created the La Porte Area Water Authority for the purpose, among others, of acquiring, treating, and delivering water to member water districts and industries throughout Southeast Harris County. The Authority has the right to serve any utility within a thirty (30) mile radius of the Authority's boundary.- The present area within the Authority's boundary encompasses approximately 20,600 acres. The La Porte Area Water Authority is a co -participant and cost -sharing partner in the City of Houston Southeast Water Purification Plant. The authority is contracted for 3.9 % of demand allocation factor that is currently equal to 7.8 million gallons per day. The Authority's customers include the cities of La Porte, Morgan's Point, and Shoreacres. Since the early 1960's per capita water usage in the State of Texas has increased about four (4) gallons per person, per decade. More important, per capita water use during droughts is usually about one-third greater than during periods of average precipitation. Many communities throughout the United States have used conservation measures to successfully cope with various water and wastewater problems. Reduction in water use as much as 25% or more have been achieved, but the normal range is from 5 to 15%. As a result of reduced water use, wastewater flows have also been reduced by 5 to 10%. B. PURPOSE AND INTENT The purpose of a Water Conservation Plan is to reduce the quantity required for each water using activity, insofar as is practical, through the implementation of efficient water use practices. The plan defines objectives and specific targets to reduce the loss and waste of water resources and improve efficiency in the use of water. The purpose of this report is to present the data collected, alternatives, and elements selected for the La Porte Area Water Authority Water Conservation Plan and to provide procedures and information for the implementation of the plan. Nine (9) principal water conservation methods to be considered in preparing a water conservation plan are as follows: Education and Information Plumbing codes for new construction Retrofit programs Conservation oriented water rate structures Universal metering and meter repair and replacement Water conserving landscaping Leak detection and repair Recycling and reuse Means of implementation and enforcement 2 C. PUBLIC PARTICIPATION PUBLIC AT LARGE: LA PORTE The City of La Porte holds regular City Council meetings on the second and fourth Monday of each month. The meetings are open to the public, and citizens are free to speak on any subject during the portion of the meeting designated for this purpose. LA PORTE AREA WATER AUTHORITY The La Porte Area Water Authority -holds Board meetings as needed to conduct Authority business. The meetings are open to the public, and citizens are free to speak to the Authority at these meetings. MORGAN'S POINT: The City of Morgan's Point holds regular City Council meetings on the second Tuesday of each month. The meetings are open to the public, and citizens are free to speak. SHOREACRES: The City of Shoreacres holds regular City council meetings on the second and fourth Monday of every month. The meetings are open to the public, and citizens are free to speak. D. SPECIAL INTEREST GROUPS LA PORTE a. La Porte-Bayshore Chamber of Commerce b. Homeowner's Associations c. Various civic and religious organizations MORGAN'S POINT: a. La Porte-Bayshore Chamber of Commerce b. Port of Houston Authority c. Various civic and religious organizations SHOREACRES: a. La Porte-Bayshore Chamber of Commerce b. Houston Yacht Club c. Various civic and religious organizations E. SYSTEM AUDIT 1 PROBLEMS System Audit: a. Average, seasonal, peak use patterns. Figures 1 through 4 best illustrates average, seasonal, and peak use patterns. Figures 1 through 3 are for individual entities, with Figure 4 representing the total Authority. Historical use data indicates that the La Porte Area Water Authority follows most entities in having higher average water use in the summer months from lawn watering. The peak to average use ratio (average daily summer use divided by average annual daily use) is 1.23 for the Authority. This ratio is relatively low because of the very humid climate and high average rainfall the area receives. Unaccounted water volumes and likely causes. Figures 1 through 4 illustrates the relationship between water production and sales for each individual entity and the Authority as a whole. The difference between production and sales can typically be attributed to all or some of the following: 1. Flushing of water mains 2. Fire fighting 3. Inaccurate metering 4. System leaks 5. Unauthorized water use 6. Unmetered water use C. Adequacy of treatment, storage, and distribution system. The cities of La Porte, Morgan's Point, and Shoreacres presently obtain 90% of their water supply from surface water supplied by the La Porte Area Water Authority. The surface water is purchased by the Authority from the City of Houston's Southeast Water Purification Plant. The remaining 10% of their water needs are supplied from groundwater wells. The water is tested on a regular basis in accordance with all state and federal regulations. The Cities of La Porte, Morgan's Point and Shoreacres currently have adequate storage facilities required to meet the state's "Minimum Water Quantity Requirements for Public Water Supply Systems". d. Limit of existing supply/potential new sources. It is apparent from the systems audit that all three (3) entities are very capable of providing water to their customers from groundwater sources. In addition, the distribution and transmission systems are adequate to supply their needs for several years. With the conversion to surface water, the adequacy of groundwater supplies to meet peak load demands in any drought contingencies that might occur are apparent. However, due to the constraints imposed by the Harris -Galveston Subsidence District on groundwater withdrawal, these sources will only be used to supply peak demand in possible drought contingencies. e. Wastewater collection and treatment system. Currently, only the City of Morgan's Point treats 100% of their own wastewater. The City of La Porte treats 92.7% of their own wastewater. The remainder of the La Porte wastewater flows and the flow from the City of Shoreacres are pumped to a regional wastewater facility owned by the Gulf Coast Waste Disposal Authority. 2. System Problems: The La Porte Area Water Authority currently has no serious water supply problems. The storage and distribution systems are adequate to supply surface water to its customers through the La Porte Area Water Authority from the City of Houston Southeast Water Purification Plant. F. ALTERNATIVES: Water conservation methods are typically divided into two (2) categories, Demand Management Methods and Supply Management Methods. Demand Management Methods deal with water use on the downstream side of a customer meter. Demand management provides for education or incentives to reduce the water use by the consumer. This method of conservation generally results in a decrease in water revenues because less water is purchased from the City. Supply Management Methods deals with the utility's water system upstream of the customer's meter. The goal of supply management is to improve efficiency and reduce waste within the production treatment, and distribution system. Supply management usually results in decreased costs to the utility as water losses in the system are reduced. 1. DEMAND MANAGEMENT ALTERNATIVES a. Education and Information: The most readily available and lowest cost method of promoting water conservation is to inform water users about ways to save water inside homes and other buildings, in landscaping and lawn uses, and in recreational uses. An effective education and information program can be easily and inexpensively administered by the La Porte Area Water Authority. Materials available from the American Water Works Association, Texas Water Development Board, and other like associations are made available to its customers, through hand outs, mail outs, and other sources. The La Porte Area Water Authority's users can utilize their individual websites to provide links to informative sources concerning water conservation. The cities of La Porte, Morgan's Point and Shoreacres currently participate in the Harris -Galveston Coastal Subsidence District's program for education of elementary school students in the importance and methods of water conservation. Each city sponsors the program by funding the program for the students in the school district. b. Plumbing Codes: Water saving plumbing codes for new construction and for replacement of plumbing in existing structures may be adopted. The standards recommended by the Texas Water Development Board represent readily available technologies and do not involve additional costs when compared with "standard" fixtures. Water conserving plumbing codes are adopted for this cause. The cities of La Porte, Morgan's Point and Shoreacres utilize standard codes whenever possible. Individual ordinances also may codify particular requirements. C. Retrofit Programs: The Cities makes information available through its education programs for plumbers and customers to use when purchasing and installing plumbing fixtures, lawn watering equipment, or water using appliances. Information regarding retrofit devices such as low -flow shower heads or toilet dams that reduce water use by replacing or modifying existing fixtures or appliances should also be provided. d. Water Rate Structures: A water conservation oriented rate structure usually takes the form of an increasing block rate, although continuously increasing rate structures, peak or seasonal load rates, excess use fees, and other rate forms can be used. The increasing block rate structure is the most commonly used water conservation rate structure. Separate rate structures are usually used for commercial, institutional, and industrial customers. All entities use some form of increasing block rate structure. e. Water Conserving Landscaping: In order to reduce the demands placed on a water system by landscape watering, the city or utility should consider methods that either encourage,. by education and information, or require, by code or ordinance, water conserving landscaping by residential customers and commercial establishments engaged in the sale or installation of landscape plants or watering equipment. Because the La Porte Area Water Authority is located on the Gulf Coast, it has a very high annual average rainfall. The need for outdoor watering is not as high as for and climates. Agricultural land in the area is not irrigated. Although not made a specific section of the Conservation Plan, water conserving landscaping information will be made available through the Information/Education Section. 2. SUPPLY MANAGEMENT ALTERNATIVES a. Universal Metering: All public water supply utilities should master meter their water sources. In addition, all users, including the utility itself, should be metered. A regularly scheduled maintenance program of meter repair and replacement also needs to be established to ensure that proper metering is taking place. Metering and meter repair and replacement, can be used in conjunction with other programs such as leak detection and repair and, thereby, save significant quantities of water. Nearly all sales in the various entities are metered. Currently, all cities have some form of regular meter repair and replacement program. All production meters for each city are tested yearly. b. Leak Detection and Repair: A continuous leak detection, location, and repair program can be an important part of a water conservation plan. Utility employees for the La Porte Area Water Authority periodically check for leaks when reading meters and while performing regular maintenance. Major leaks are usually quickly detected by either city employees or customers and are repaired immediately. Soil in the area is generally clay and, therefore, leaks show up at the ground surface quite readily. Leak detection technology is also available in the form of electronic sonic devices. c. Recycling and Reuse'. A city or utility should evaluate the potential of recycling and reuse because these methods may be used to increase water supplies in the utility's service area. Reuse can be especially important where the use of treated effluent from an industry or a municipal system or agricultural return flows replace an existing use that currently requires fresh water from a city's or utility's supply. Recycling of in - plant process or cooling water can reduce the amount of fresh water required by many industrial operations. Currently, La Porte has a water reuse program. Because of its size and daily flows, the reuse of treated effluent for processed water has proven quite economical for the City of La Porte. The City of La Porte's Municipal Golf Course along with one of the City parks, Little Cedar Bayou, are irrigated with plant effluent. This reuse program results in a savings of approximately 100,000,000 gallons of potable water per year. 7 G. PLAN OBJECTIVES d• To reduce water consumption from levels that would prevail without conservation efforts •«• To reduce the loss and waste of water �.• To improve efficiency in the use of water -:• To implement a system to quantify the effects of the plan In accordance with 30 TAG Chapter 288.2, the following five and ten year targets have been established: See Attached Table THE. REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK CD 0 w O CD (D O O CD T�^ ia% W (O (D W.P C � N 11 -' n N � co N CD .p OD � C W (D ju-� ,� 0 -P.,-4 ;m o o cc � o tD ' G) N O p C:�w 0 o °i N CO H N C) Z w CD M ■ 1 D z MA 0 0 mn 0 X m X n C z G) cn D m as 0 0 cn m C 0 z n z H. PLAN DESCRIPTION Based on the evaluation of alternatives available to the La Porte Area Water Authority for conserving water, the following elements have been selected as those best suited to the needs of the Authority for water conservation: Continuing Public Education and Information Water conserving plumbing code for new construction Retrofit programs Water rate structures Supply Management Universal metering Meter repair and replacement Leak detection and repair Recycling/reuse CONTINUING PUBLIC EDUCATION AND INFORMATION A program of public education and information to promote water conservation by the public has been instituted. The program includes the following: •A Conservation messages printed on customer's water bills, city websites and community newsletters. ❖ The Cities provide support to the Harris -Galveston Coastal Subsidence District's "Water Conservation Education Program" that provides water conservation information to the residents through their elementary school children, ❖ New customers are provided water conservation literature at the time they initially sign up for service. The public education program covers the water saving methods such as those listed in Appendix A, "Water Conservation Literature". The La Porte Area Water Authority places special emphasis on the need to insulate pipes to prevent freezing in cold weather, retrofitting of plumbing fixtures and devices, and landscaping conservation methods. The energy savings associated with a water conservation program are also be emphasized. Publications and materials for the program are obtained from: Texas Water Development Board, Texas Commission on Environmental Quality, American Water Works Association; Texas Water Utilities Association, American Public Works Association, and the Environmental Protection Agency. 2. WATER CONSERVING PLUMBING CODE The City of La Porte has adopted the Uniform Plumbing Code (2012 version 3. RETROFIT PROGRAMS The La Porte Area Water Authority makes information available through its education program for plumbers and customers to use when purchasing and installing plumbing fixtures, lawn watering equipment, or water using appliances. Information regarding retrofitting devices such as low -flow shower heads or toilet dams that reduce water use by replacing or modifying existing fixtures or appliances will also be provided. 4. UNIVERSAL METERING The La Porte Area Water Authority currently meters all water sales from its system. In addition, in response to requirements by the Harris -Galveston Coastal Subsidence District, all wells are currently metered at the well head. Well production meters are tested for accuracy based on Subsidence District criteria. Meters for purchased surface water are tested on an annual basis. The source water meters are maintained within an accuracy of plus or minus 3%. The program of universal metering will continue and is made a part of the Water Conservation Plan. 5. WATER RATE STRUCTURES The cities of La Porte, Shoreacres and Morgan's Point Authority have adopted Increasing Block Rate structures. Examples of the current water rate structures are attached in Appendix B and are made part of the Water Conservation Plan. 6. METER REPAIR AND REPLACEMENT The City of La Porte currently owns and operates equipment for small meter testing. The testing of large meters is conducted by contract forces. The meter repair and testing program is structured per AWWA recommendations as follows: 1. Major Production meters - test once per year 2. Minor Production meters -- test every 3 years 3. Meters larger than four inch -- random testing every 5 years 4. Meters larger than one inch - random testing every 7 years 5. Meters smaller than one inch - random testing every 10 years In addition, the Authority, through its individual customers, will verify that each meter in the system is properly sized for the average volume of water being used in accordance with the manufacturers' specification for the meter. Based on testing and field evaluation, meters in all cities are repaired or replaced as needed. 7. LEAK DETECTION AND REPAIR The cities currently have individual leak detection programs which will be maintained. These programs include: Monthly water use accounting by the operations staff which identifies high water usage after the service meters which may indicate [eaks. 10 b. Visual inspections by utility employees who keep a constant watch out for abnormal conditions indicating leaks or illegal connections. c. Visual inspections of storm water outfalls are conducted during periods of dry weather to locate leaks that may be entering storm drain systems. Maintaining an adequate maintenance staff, inventory of repair parts and equipment necessary to repair any leaks. e. An annual water accounting or audit is considered be part of the program. Sources of water loss, once located, are immediately corrected. Data from the audit is used to monitor and evaluate system conditions. RECYCLINGIREUSE The City of La Porte is the only entity within the La Porte Area Water Authority with a major capability of reuse and recycling of treated effluent. Current use includes the recycling of approximate one million gallons per month at the La Porte Wastewater Treatment Plant used in process water, belt press operation and washdown. Additionally, as indicated above, recycled water is made available and used by the La Porte Municipal Golf Course and the Little Cedar Bayou Park for irrigation purposes. The amount will vary of course during seasonal and various weathers. Morgan's Point utilizes reuse for process water at their wastewater plant. No recycling or reuse is anticipated for Shoreacres at this time. H. RECORDS MANAGEMENT SYSTEM The La Porte Area Water Authority maintains a records management system to monitor and track customer account information and usage data for deliveries and sales. The data for water produced is monitored and recorded to enable accurate tracking of monthly or daily water usage. Water loss form the transmission system is monitored on a monthly schedule. The La Porte Area Water Authority does not operate a surface water reservoir. Therefore an operations plan is not a component of this water conservation plan. IMPLEMENTATION 1 ENFORCEMENT The General Manager of the La Porte Area Water Authority acts as the Administrator of the Water Conservation Program. The Administrator oversees the execution and implementation of all elements of the program. He is also responsible to oversee the keeping of adequate records for program verification. Each entity is responsible for furnishing all information needed and requested by the Authority. The program will be enforced through adoption of the Water Conservation Plan by Ordinance or Resolution. The Ordinances and Resolution are found in Appendix C. In addition, the entities of the La Porte Area Water Authority have adopted a water conserving plumbing code. The appropriate plumbing code listings are found in Appendix D. 11 Each entity will provide certified copies of all ordinances and resolutions concerning water rates, plumbing codes, and other regulatory documents necessary for the administration of this plan, including all updates. J. CONTRACT REQUIREMENTS Upon contract renewal or contract extension with The La Porte Area Water Authority each wholesale customer shall develop and implement a water conservation plan or institute water conservation measures using the applicable elements of Title 30, Chapter 288, Subchapter A. if the customer intends to re- sell the water, then each successive wholesale customer shall also implement applicable water conservation measures. This requirement shall be made part of every water supply contract. K. COORDINATION WITH REGIONAL WATER PLANNING GROUPS The service area of the La Porte Area Water Authority is located within Region H of the regional water planning area. The La Porte Area Water Authority has provided a copy of this Water Conservation Plan to the Texas Water Development Board. L. PLAN REVIEW AND UPDATE This water conservation plan will be reviewed and updated, as appropriate, based on an assessment of previous five-year and ten-year targets and any other new or updated information. The La Porte Area Water Authority will review and update the next revision of its Water Conservation Plan every five years to coincide with the regional water planning group. Future amendments or updates will be evaluated by the General Manager to determine if a substantial modification exists that would warrant additional review by the Board. 12 Revised 2014 LA PORTE AREA WATER AUTHORITY DROUGHT CONTINGENCY PLAN A. INTRODUCTION Drought, or a number of other uncontrollable circumstances, can disrupt the normal availability of community or utility water supplies. Even though a city may have an adequate water supply, the supply could become contaminated, or a disaster could destroy the supply. System treatment, storage, or distribution failures can also present a city or utility with an emergency demand management situation. It is important to distinguish drought contingency planning from water conservation planning. While water conservation involves implementing permanent water use efficiency or reuse practices, drought contingency plans establish temporary methods or techniques designed to be used only as long as an emergency exists. The La Porte Area Water Authority is required by amended Title 30 Texas Administrative Code, Chapter 288 to develop, update and maintain a Drought Contingency Plan. All future wholesale water contracts (new, renewed or extension) shall include a provision for all water distributed during a period of water shortage to be divided in accordance with the Texas Water Code, section 11.039. The intent of this Drought Contingency Plan is to institute temporary measures to minimize the adverse impacts of water supply shortage or other water supply emergency conditions. The Plan defines procedures to manage and conserve the available water supply with particular regard for domestic water use, sanitation and fire protection. REQUIRED ELEMENTS 1. Public Involvement 2. Trigger Conditions to begin and end each stage 3. Specific Targets for Water Use Reduction 4. Drought Stages and Notification Procedures 5. Information and Education 6. Implementation 7. Coordination with Regional Water Planning Groups 8. Enforcement 9. Variances 10. Plan Review and Update Revised 2014 B. PUBLIC INVOLVEMENT Opportunity for the public to provide input into the revisions of the drought plan will be provided by means of notice of scheduled meeting of the La Porte Area Water Authority Board of Directors and regularly scheduled City Council meetings for each entity served by the LPAWA. C. DEFINITIONS For the purposes of this Plan, the following definitions shall apply: Aesthetic water use: water use for ornamental or decorative purposes such as fountains, reflecting pools, and water gardens. Commercial and institutional water use: water use which is integral to the operations of commercial and nonprofit establishments and governmental entities such as retail establishments, hotels and motels, restaurants, and office buildings. Conservation: those practices, techniques, and technologies that reduce the consumption of water, reduce the loss or waste of water, improve the efficiency in the use of water or increase the recycling and reuse of water so that a supply is conserved and made available for future or alternative uses. Customer any person, company, or organization using water supplied by the City of La Porte. Domestic water use: water use for personal needs or for household or sanitary purposes such as drinking, bathing, heating, cooking, sanitation, or for cleaning a residence, business, industry, or institution. Even number address: street addresses, box numbers, or rural postal route numbers ending in 0, 2, 4, 6, or 8 and locations without addresses. Industrial water use: the use of water in processes designed to convert materials of lower value into forms having greater usability and value. Landscape irrigation use: water used for the irrigation and maintenance of landscaped areas, whether publicly or privately owned, including residential and commercial lawns, gardens, golf courses, parks, and rights -of -way and medians. Non -essential water use: water uses that are neither essential nor required for the protection of public, health, safety, and welfare, including: (a) irrigation of landscape areas, including parks, athletic fields, and golf courses, except otherwise provided under this Plan; (b) use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle; 2 Revised 2014 (c) use of water to wash down any sidewalks, walkways, driveways, parking lots, tennis courts, or other hard -surfaced areas; (d) use of water to wash down buildings or structures for purposes other than immediate fire protection; (e) flushing gutters or permitting water to run or accumulate in any gutter or street; (f) use of water to fill, refill, or add to any indoor or outdoor swimming pools or Jacuzzi -type pools; (g) use of water in a fountain or pond for aesthetic or scenic purposes except where necessary to support aquatic life; (h) failure to repair a controllable leak(s) within a reasonable period after having been given notice directing the repair of such leak(s); and (i) use of water from hydrants for construction purposes or any other purposes other than fire fighting. Odd numbered address: street addresses, box numbers, or rural postal route numbers ending in 1, 3, 5, 7, or 9. D. SYSTEM CONSTRAINTS The La Porte Area Water Authority (LPAWA) is composed of three (3) entities - the cities of La Porte, Morgan's Point, and Shoreacres. The Authority purchased production capacity from the City of Houston's Southeast Water Purification Plant. In addition, the Authority purchased pumping capacity, or peaking capacity, at 1.25 times the production capacity. Listed below is the production and pumping capacity for each entity, together with total capacity. CUSTOMER PRODUCTION PUMPING CAPACITY CAPACITY (MGD) (MGD) La Porte 6.925 8.65625 Morgan's Point 0.550 0.68750 Shoreacres 0.325 0.40625 TOTAL 7.800 9.75000 In addition, each entity has the ability to supply its entire water supply through groundwater production from wells. After 1990, the Harris -Galveston Coastal Subsidence District decreed that no more than ten per cent (10%) of each entity's yearly water production can be produced from groundwater. Although additional pumping capacity is planned for peak purposes, groundwater production will be utilized for peaking purposes whenever possible. Temporary reductions or disruptions in surface water supply can be offset by increased groundwater withdrawals. Careful monitoring and management of groundwater withdrawal is necessary to avoid exceeding the yearly ten per cent (10%) limit above. Long-term reductions or disruptions in surface water supply would require special permission from the Subsidence District to exceed allowable groundwater withdrawal. It is anticipated that conservation measures would be required by the District to allow increased groundwater withdrawal 3 Revised 2014 E. TRIGGER CONDITIONS The La Porte Area Water Authority is the contracting party with the City of Houston Southeast Water Purification Plant. The General Manager of the La Porte Area Water Authority or his/her designee shall monitor water supply and demand conditions on a weekly basis and shall determine when conditions warrant initiation or termination of each stage of the Plan. The General Manager will then notify each entity through its Chief Executive Officer. The trigger conditions described below reflect system capacity limits and will be measured as one system, rather than individual triggers for each entity. Production amounts are based on a seven (7) day average daily demand. 1. Mild Conditions (Stage 1) a. Surface water demand approaching 6,825,000 gallons/day (70% of the pumping capacity owned by the Authority at the Southeast Water Purification Plant). Or, b. Production at the Southeast Water Purification Plant reduced to a point such that the aggregate surface water demand of the Authority is 70% of the reduced pumping capacity. c. Stage 1 may be rescinded when the trigger conditions have ceased to exist. Rescinding any level of the Plan is at the discretion of the General Manager. 2. Moderate Conditions (Stage 2) a. Surface water demand approaching 7,800,000 gallons/day (80% of the pumping capacity owned by the Authority at the Southeast Water Purification Plant). Or, b. Production at the Southeast Water Purification Plant reduced to a point that the aggregate demand of the Authority is 80% of the reduced pumping capacity. c. Stage 2 may be rescinded when the trigger conditions have ceased to exist. Upon termination of Stage 2, Stage 1 becomes operative. Rescinding any level of the Plan is at the discretion of the General Manager. 3. Severe Conditions (Stage 3) a. Surface water demand approaching 8,775,000 gallons/day (90% of the pumping capacity owned by the Authority at the Southeast Water Purification Plant). Or, Revised 2014 b. Production at the Southeast Water Purification Plant reduced to a point such that the aggregate surface water demand of the Authority is 90% of the reduced pumping capacity. c. Stage 3 may be rescinded when the trigger conditions have ceased to exist. Upon termination of Stage 3, Stage 2 becomes operative. Rescinding any level of the Plan is at the discretion of the General Manager. 4. Critical Conditions (Stacie 4) a. Surface water demand exceeds 9,750,000 gallons/day. Or, b. Production at the Southeast Water Purification Plant reduced to a point such that the aggregate surface water demand of the Authority exceeds the reduced production, including complete failure of the plant to produce any water. Or, c. Disaster or damage causing system failure in the LPAWA transmission system that significantly curtails available water supply. d. Stage 4 may be rescinded when the trigger conditions have ceased to exist. Upon termination of Stage 4, Stage 3 becomes operative. Rescinding any level of the Plan is at the discretion of the General Manager. F. DROUGHT STAGES AND NOTIFICATION PROCEDURES Execution of all water demand management measures shall be in accordance with the Texas Water Code, section 11.039. The water available shall be divided among all customers pro rata, according to the amount each is entiltled to, per the contract currently in effect at the time of the trigger condition. The following actions shall be taken by the LPAWA when trigger conditions are reached: 1. Mild Conditions (Stacie 1) a. Inform the public through available media sources that a trigger condition has been reached, and that they should look for ways to voluntarily reduce water use. Specific steps which can be taken will be provided through the news media. b. Update drought plan status with Texas Commission on Environmental Quality. Utilize current electronic reporting method or other methods as directed by TCEQ. c. Notify major commercial and industrial water users of the situation and request voluntary conservation efforts. Revised 2014 d. Publicize the following voluntary lawn watering schedule: Customers with even numbered street addresses may water on even numbered days of the month. Customers with odd numbered street addresses may water on odd numbered days of the month. Watering shall only occur between the hours of 6-10 a.m. and 6-10 p.m. e. During winter months, request water users to insulate pipes rather than running water to prevent freezing. 2. Moderate Conditions (Stage 2 a. Continue implementation of all relevant actions in preceding phase. b. Mandatory Restrictions on non — essential water uses shall be implemented: Residential car washing, window washing or pavement washing shall only occur between the hours of 6-10 a.m. and 6-10 p.m. This will not apply to commercial window/ pavement cleaning activities or commercial car wash facilities. This restriction will not apply when washing commercial vehicles are necessary for public health and welfare, such as garbage trucks, refuse containers or transporters of food or perishable items. c. The following mandatory lawn watering schedule shall be implemented: Customers with even numbered street addresses may water on even numbered days of the month. Customers with odd numbered street addresses may water on odd numbered days of the month. Watering shall only occur between the hours of 6-10 a.m. and 6-10 p.m.This will not apply to landscape irrigation by use of drip irrigation systems, reclaimed water or watering with a bucket. d. Notification shall be made to the Executive Director of the Texas Commission on Environmental Quality, within 5 business days of the implementation of any mandatory provisions of the Drought Contingency Plan. e. Update drought plan status with Texas Commission on Environmental Quality. Utilize current electronic reporting method or other methods as directed by TCEQ. 3. Severe Conditions (Stage 3) a. Continue implementation of all relevant actions in preceding phase; b. The following public water uses, not essential for public health or safety, are prohibited: 1. Street, sidewalk or driveway washing 2. water hydrant flushing 3. filling pools 4. athletic field watering 6 Revised 2014 5. aesthetic water uses c. Notification shall be made to the Executive Director of the Texas Commission on Environmental Quality, within 5 business days of the implementation of any mandatory provisions of the Drought Contingency Plan. d. Update drought plan status with Texas Commission on Environmental Quality. Utilize current electronic reporting method or other methods as directed by TC EQ. 4. Critical Conditions (Stage 4) a. Continue implementation of all relevant actions in preceding phase. b. Petition the Harris -Galveston Coastal Subsidence District for appropriate increase in allowable groundwater withdrawal. c. Ration or terminate water service to selected portions of the system according to the following order: Services that serve landscape irrigation only or aesthetic uses 2. None residential customers outside the city limits in compliance with the provisions of individual water service agreements 3. Industrial 1 Institutional Users 4. Commercial Users 5. Residential Users 6. Public Health and Safety Facilities d. Notification shall be made to the Executive Director of the Texas Commission on Environmental Quality, within 5 business days of the implementation of any mandatory provisions of the Drought Contingency Plan. e. Update drought plan status with Texas Commission on Environmental Quality. Utilize current electronic reporting method or other methods as directed by TCEQ. G. SPECIFIC TARGETS FOR WATER USE REDUCTION a. Mild Condition Goal —To achieve a voluntary 10 percent reduction in daily water use. b. Moderate Condition Goal - To achieve a 15 percent reduction in daily water use. c. Severe Condition Goal - To achieve a 25 percent reduction in daily water use. 7 Revised 2014 d. Critical Condition Goal — To achieve a 30 percent reduction in daily water use. H. I NFORMATIONIEDUCATI ON The purpose and effect of the Drought Contingency Plan will be communicated to the public through an article or notice in a local newspaper, La Porte, Morgan's Point and Shoreacres city website(s), and other media outlets such as marquee message boards, email, text, social media, and programmed phone alerts. Throughout the period of a trigger condition, regular updates will appear in the various media outlets referenced herein to explain and educate the public on the purpose, cause, and methods of conservation for that condition. When a trigger condition is reduced or expired, the same media outlets used for notification will be used to update the public and TCEQ. 1. IMPLEMENTATION The plan shall be approved by the Board of the La Porte Area Water Authority and implemented by Ordinance of the City Councils of La Porte, Morgan's Point and Shoreacres. A copy of the adoption documents are found in Appendix A. J. COORDINATION WITH REGIONAL WATER PLANNING GROUPS The La Porte Area Water Authority is located within Region H of the regional water planning area. The LPAWA has provided a copy of this Drought Contingency Plan to the Texas Water Development Board. K. ENFORCEMENT No person shall knowingly or intentionally allow the use of water from the LPAWA for residential, commercial, industrial or any other purpose in a manner contrary to any provision of the plan, or in an amount in excess of that permitted by the drought response stage in effect. First time offenders of the ordinance shall be issued a written warning. Any City employee designated by the Chief Executive Officer of each entity may issue a written warning to a person he/she reasonably believes to be in violation of the drought restrictions in effect within that entity. The written warning shall be prepared in duplicate and include the date, name and address of the alleged violator and the nature of the violation. Any person who violates this plan after they have received one written warning shall be notified that the water service will be terminated. Services discontinued under such circumstances shall be restored only upon payment of the normal reconnection fees currently in effect within the entity at the time of the violation. ie .La Porte Area Water Authority may estOki! sFi separate fines Revised 2014 L. VARIANCES 1. The General Manager may, in writing, grant temporary variance for existing water uses otherwise prohibited under this Plan if it is determined that failure to grant such variance would cause an emergency condition adversely affecting the health, sanitation, or fire protection for the public or the person requesting such variance and if one or more of the following conditions are met: (a) Compliance with this Plan cannot be technically accomplished during the duration of the water supply shortage or other condition for which the Plan is in effect. (b) Alternative methods can be implemented which will achieve the same level of reduction in water use. 2. Persons requesting an exemption from the provisions of this Ordinance shall file a petition for variance with the city within 5 days after the Plan or a particular drought response stage has been invoked. All petitions for variances shall be reviewed by the General Manager, or his/her designee, and shall include the following: (a) Name and address of the petitioner(s). (b) Purpose of water use. (b) Specific provision(s) of the Plan from which the petitioner is requesting relief. (c) Detailed statement as to how the specific provision of the Plan adversely affects the petitioner or what damage or harm will occur to the petitioner or others if petitioner complies with this Ordinance. (d) Description of the relief requested. (e) Period of time for which the variance is sought. (g) Alternative water use restrictions or other measures the petitioner is taking or proposes to take to meet the intent of this Plan and the compliance date. (h) Other pertinent information. 3. Variances granted by the La Porte Area Water Authority shall be subject to the following conditions, unless waived or modified by the General Manager: (a) Variances granted shall include a timetable for compliance. (b) Variances granted shall expire when the Plan is no longer in effect. (c) No variance shall be retroactive or otherwise justify any violation of this Plan occurring prior to the issuance of the variance. 1 Revised 2014 M. PLAN REVIEW AND UPDATE Once a year, the La Porte Area Water Authority will examine the production requirements and ability to maintain these requirements to determine if trigger conditions need to be re- established. Consideration should be given to each city's usage in relation to the aggregate usage, and any anticipated increase in production at the Southeast Water Purification Plant. The LPAWA will review and update the plan every five years to coincide with the regional water planning group. (Reference: Title 30 TAC Chapter 288.22(c)) Revision Schedule March 2019 March 2024 March 2029 10