HomeMy WebLinkAbout02-11-15 Regular Meeting of the La Porte Area Water Authority a
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LA PORTE AREA WATER AUTHORITY
AGENDA
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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. I
3. Election of officers.
4. Consider approval or other action of minutes from the December 16,2014 meeting.
6. 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 copyof the Februar 11,2014,agenda of items to be considered by the LaPorte Area Water
Authority s p to on t t;+ Iall bulletin board on February 5,2014.
id S. NfIck, Pubic 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
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
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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
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(This page intentionally left blank)
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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
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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
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MANAGEMENT'S DISCUSSION AND ANALYSIS
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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
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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
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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.
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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
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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.
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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.
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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
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