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HomeMy WebLinkAbout04-12-1988 Meeting LA PORTE AREA WATER AUTHORITY MINUTES APRIL 12, 1988 1. The meeting was called to order at 6:00 P.M, by President, Jerry Bramlett. MEMBERS PRESENT: President Jerry Bramlett, Vice President Rick Matthews, Secretary Claude Graves, Member Mike Wadsworth OTHERS PRESENT: John Joerns, Assistant City Manager; Steve Gillett, Public Works Director; Buddy Jacobs, Assistant Public Works Director; Authority Attorney John Armstrong; Dale Conger of Espey/Huston 2. The minutes of the meeting held on March 15, 1988 were read. Motion was made to approve minutes by Mike Wadsworth and seconded by Claude Graves. Motion was unanimous. 3. Invoice from Espey Huston dated April 12, 1988 in the amount of $38,588.05 was discussed. Motion was made by Claude Graves to pay the invoice in the stated amount. Seconded by Mike Wadsworth. Motion was unanimous. 4. Application to Texas Water Commission for approval of project and bonds was discussed. Authority Attorney John Armstrong stated this should be the last item needed for their approval. Motion was made for a resolution to authorize application to Texas Water Commission for approval of project and bonds was made by Rick Matthews and seconded by Claude Graves. Motion was unanimous. 5. La Porte Area Water Authority Bidder Pre-qualification procedure was discussed. John Armstrong read a letter from the Texas Water Development Board stating their approval of pre-qualification procedures. He discussed the addition of a clause allowing contractors already pre-qualified for City of La Porte projects to be considered pre-qualified for Authority projects. He stated this would not force these contractors to repeat a process already gone through. John Joerns discussed the success realized by the City of La Porte in using a pre-qualification procedure on all City projects in excess of $300,000. Motion was made by Claude Graves for a resolution adopting a bidder pre-qualification procedure for contractors desiring to bid on Authority projects as recommended by staff. Seconded by Rick Matthews. Motion was unanimous. • • Page Two La Porte Area Water Authority Minutes for April 12, 18886. 6. Waterline easement from Height Savings to serve the City of Shoreacres was discussed. Steve Gillett and John Armstrong went over the sections of the offered easement that they felt could cause operational and/or legal problems to the Authority. Steve said that any references in the easement concerning the Authority furnishing water to Heights Savings" property should be deleted. The Authority will furnish water to the City of Shoreacres only from this easement. Additionally, restrictions placed on the Authority"s use of the easement was not acceptable and should be changed. Retained rights by Heights Savings should be cut to surface use only. John Joerns stated that this was an informational item only. No action is required from the Board at this time. Negotiations are continuing with Heights Savings on this easement. 7. Payment of $300.00 permit fee to Southern Pacific Transportation Company for permits to bore under their tracks was discussed. John Joerns stated this was usual practice and recommended payment. Motion was made by Rick Matthews to pay the $300.00 permit fee as recommended by staff. Seconded by Mike Wadsworth. Motion was unanimous. 8. Dale Conger discussed progress of final design. He stated that he should be able to begin bringing plan sheets for Board review in the near future. He requested a letter authorizing Espey Huston to begin the additional aerial and ground survey required by the change in the route of the BayMUD line. This was authorized in the March 15, 1988 meeting; but, they had not received written authorization to do this. Steve Gillett stated he would get a letter to them. Steve stated that the meeting with CWA was productive. A possible hinderance to acquiring the right-of-way could be the fact that they were told all right-of-way requests must go through the City of Houston Right-Of-Way and Legal Departments. He stated this could possibly cause some slowdown in acquiring the right-of-way. Jerry Bramlett asked for approximate cost of right-of-way. John Joerns stated that Sam Dixon had sent a letter earlier stating a cost of approximately $40,000. Approval of the easement has been entered into the minutes of the CWA Board meeting. Total cost has yet to be determined. Problem of pipe material was discussed. Dale stated that a lower class of PVC pipe may have to be specified due to unavailability of C-900 PVC pipe in larger sizes. This would have to be done or PVC pipe would have to be eliminated in the sizes above 12rr, Page Three La Porte Area Water Authority Minutes for April 12, 1988 9• John Joerns updated Board on status of acquiring an easement from the Harris County Flood Control District along Big Island Slough. He stated that staff has established a good relationship with them and are close to finalizing an agreement on the sections needed. He stated that a meeting with the Grays has been held on the possibility of acquiring the remainder of the easement required in Fairmont Park. He discussed the possibility of an existing easement in this area and that this possibility was being researched. He discussed a meeting held with the PPG Plant Manager. The Plant Manager requested information to take with him to the corporate offices for a meeting and stated that he would support the granting of a;proposed easement along Bay Area Blvd. to the. Authority. He stated that the La Porte City Council authorized the City Manager to enter into negotiations with the Authority for use of office space at Public Works Building. Bob Herrera will approach the Board soon to negotiate this item. 10. President Jerry Bramlett stated he had nothing to report at this time. 11. There being no further business to discuss, the motion to adjourn was made by Rick Matthews and seconded by Mike Wadsworth. Motion was unanimous and the meeting was adjourned at 7:00 P.M. Respectfully Submitted _ ~ ~, Claude Graves, Secretary/Treasurer PASSED AND APPROVED: ON THIS DAY s \, , 19 ~~ (! ~ ,. • LA PORTE AREA WATER AUTHORITY Certificate for Resolution Authorizing Application to the Texas Water Commission for Approval of Project and Bonds I, the undersigned, Secretary of the Board of Directors of La Porte Area Water Authority (the "Author- ity"), hereby certify as follows: 1. The Board of Directors of the "Board") convened in special session, ope and duly noticed in accordance with V.A.T.C.S., as amended, at its regular inside the Authority on April 12, 1988, duly constituted officers and members of wit: Authority (the n to the public Art. 6252-17, meeting place and all of the the Board, to- Jerry Bramlett President Rick Matthews Vice President Claude Graves Secretary Mike Wadsworth Director were present, constituting a quorum. 2. Among other business transacted at such meeting, a written RESOLUTION AUTHORIZING APPLICATION TO THE TEXAS WATER COMMISSION FOR APPROVAL OF PROJECT AND BONDS (the "Resolution") was duly introduced for the con- sideration of the Board. It was then duly moved and seconded that the Resolution be adopted; and, after discussion, said motion, carrying with it the adoption of the Resolution, prevailed by the following votes. AYES: All Present NOES: None 3. A true, full and correct copy of the Resolu- tion adopted at such meeting as the same appears of record in the official minutes thereof on file in the offices of the Authority is attached to and follows this Certificate; and the above and foregoing is a true, full and correct excerpt form the minutes of said meeting relating to the adoption of the Resolution. ~_~ ~~~ 4. The persons named in the first numbered paragraph of this Certificate were, on the date of said meeting, the duly chosen, qualified and acting officers and members of the Board, and each was duly and suffi- ciently notified in advance of the time, place and purpose of such meeting. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE AUTHORITY this the 12th day of April, 1988. Secretary, oard of Directors, La Porte Area Water Authority [SEAL) ~~ r• RESOLUTION AUTHORIZING APPLICATION TO THE TEXAS WATER COMMISSION FOR APPROVAL OF PROJECT AND BONDS WHEREAS, La Porte Area Water Authority (the "Au- thority") is in the process of purchasing an undivided interest in the Southeast Water Purification Plant (the "Southeast Plant") under construction by the City of Houston and is planning the construction of a transmission system (the "Transmission System") and a distribution system (the "Distribution System") to transport water from the Southeast Plant to the customers of the Authority; and WHEREAS, the Board of Directors of the Authority desires to issue bonds to pay for its undivided interest in the Southeast Plant and additional bonds to pay the costs of acquisition and construction of the Transmission System and the Distribution System; and WHEREAS, pursuant to Section 54.516, Texas Water Code, as amended, the Authority is required, when it desires to issue bonds, to submit in writing to the Texas Water Commission an application for the investigation of the pro- ject proposed to be purchased or constructed and of the Authority's bonds proposed to be issued, together with a copy of the engineer's report and a copy of the data, plats, profiles, maps, plans and specifications prepared in connec- tion with such project; and ~~ • WHEREAS, the Board of Directors of the Authority desires to secure the approval and consent of the Texas Water Commission to (i) the construction of the Southeast Plant and the purchase by the Authority of an interest therein, (ii) the acquisition and construction of the Transmission System and the Distribution System and (iii) the issuance of said bonds to provide for the payment of the costs thereof; therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF LA PORTE AREA WATER AUTHORITY: Section 1: That the President and Secretary of the Board of Directors of the Authority are hereby autho- rized and directed to make application to the Texas Water Commission (the "Commission") pursuant to Section 54.516 of the Texas Water Code, as amended, for an investigation and report upon the feasibility of the Authority's purchasing an undivided interest in the Southeast Plant and acquiring and constructing the Transmission System and the Distribution System, and to request the Commission to approve the bonds of the Authority in the aggregate principal amount of $9,800,000 to be issued for the purpose of paying the above costs and for other proper purposes. Section 2: That the Authority hereby assures the Commission that the Authority will abide by the terms and conditions prescribed by the Commission. 023DESAP/024C01 _2_ • /. Section 3: That Authority's engineers are authorized and directed to prepare and engineering report in such form as may be required by the Commission and submit the same to the Commission in support of such application and to do any and all things necessary and proper in connection therewith. Section 4: That the President and Secretary of this Board of Directors, the Authority's General Counsel, Knox W. Askins, J.D., P.C., and the Authority's Bond Counsel, Baker & Botts, are hereby authorized and directed to do any and all things necessary and proper in connection with such application. PASSED AND APPROVED this the 12th day of April, 1988. Pr si n , Board of Directors La Porte Area Water Authority ATTEST: Secretary, Board of Directors La Porte Area Water Authority [SEAL] 023DESAP/024C01 -3- ~~ ,• LA PORTE AREA W:yTER AUTHORITY '~- APPLICATION FOR APPROVAL B1 TEXAS WATER COMMISSION OF AUTHORITY'S PROJECT AND BONDS TO THE HONORABLE TEXAS WATER COQ'-MISSION: La Porte Area Water Authority (the "Authority") in Harris County, Texas, files and presents this application pursuant to Section 54.516 of the Texas Water Code, and re- quests the Commission to take such action thereon as provid- ed by said Section and other appropriate laws of this State. The Authority seeks approval of $9,800,000 aggre- gate principal amount of its re~•enue bonds (the "Bonds"), to be issued without the holding of an election pursuant to the special act creating the Authority, Chapter 729, pages 2,678 et seq., Acts of the 67th Legislature of the State of Texas, Regular Session, 1981, (the "Act") for the purpose of (i) purchasing an undivided interest in the Southeast Water Purification Plant (the "Southeast Plant") under construc- tion by the City of Houston, Texas, and paying expenses incidental thereto, (ii) paying the costs of acquisition and construction of a transmission system and a distribution system to transport water from the Southeast Plant to the customers of the Authority and (iii) paying such other expenses of the Authority as may properly be paid from the proceeds of the Bonds. The BonCS will bear interest at a net effective interest rate not exceeding the maximum rate ~~ ~ ~ ~ permitted by law and will mature serially in accordance with the schedule annexed hereto as Exhibit A. In connection therewith, the Authority submits in writing this application for investigation, together with a copy of its Engineer's Report, copies of data, profiles, maps, plans and specifica- tions prepared in connection therewith and copies of other pertinent documents required by the Rules and Regulations of the Commission. The Authority was created on or about June 16, 1981, pursuant to the Act, and embraces the territory de- scribed in the Act. Upon completion of the Southeast Plant, and the construction of certain transmission and distribution lines, surface water will be the primary source of supply for customers of the Authority. Currently, groundwater is the source of supply for customers of the Authority. Currently herewith, the Authority is filing with the Commission a certified copy of the Act. The Authority covers substantially the same territory as the City of La Porte, Texas. Because the Authority was created pursuant to the Act, which was supported by the City of La Porte, an ordinance of the City Council of the City of La Porte consenting to creation of the Authority was not required. Partial payments to any contractor or contractors performing the work to be financed with the proceeds from 023DESAQ/024C01 _2_ . ~ • • the Bonds (and with whom the Authority has a contract) will comply with the requirements of Section 54.228 of the Texas Water Code, as amended. ~- It is essential to the Authority's improvement program and progress and is in the best interest of the Authority that the Bonds be approved by the Commission at this time. WHEREFORE, the Authority prays that the Commission investigate, report upon and approve (1) said Engineer's Report and the data, profiles, maps, plans and specifications prepared in connection therewith; (2) the Engineer's and Authority's estimates of costs; (3) the issuance of the Bonds described above; and (4) the Authority's proposed improve- ments and project. The Authority further prays that the Commission make a full written report thereon, file the same in its office and furnish a copy of same to the Board of Directors of the Authority, that the Commission do all other things required of it by law and particularly Section 54.516 of the Texas Water Code in connection with this Application, 023DESAQ/024C01 _3_ • ~Y and that the Authority have any other relief to which it may be entitled. DATED this 12th day of April, 1988. LA PORTE AREA WATER AUTHORITY By Pr Board of Directors ATTEST: ~- .~~~~- Secretary, Board of Directors [SEAL ] ~023DESAZ/024C01 -4- :'. • ~• LA FORTE AREA WATER AUTBORITY ' 59,800,000 HATER SUPPLY CONTRACI REVENUE BONDS • SERIES 1997 AND 1988 CO?~INED DEBT SERVICE SCHEDULE ~~~d DATE PRINCIPAL COUPON INTEREST PERIOD TOTAL FISCAL TOTAL r Y~ 6/ 1/16 27,671.23 27,671.25 ~ 12/ 1/16 __--785000_00 27,671.25 812,671.25 840,342.50 -------------- -------------- 9,600,000.00 13,493,089.17 23,295,089.17 ACCRUED • 9,800,000.00 13,495,089.17 23,295,089.17 ~~ ..~~~~ DATED 12/ 1/87 HIl'H DELIVERY OF 12/ 1/87 BOND YEARS 199,590.000 AVERAGE COUPON 6.761 AVERAGE LIFE 20.366 N I C ; 6.761405 Z USING 100.0000000 PREPARED BY HORONEY, BEISSNER ~ CO., INC. RUNDATE: 11-24-1987 9 10:15:11 FILENAME: LPAHA KEY: SER 87&88 • . L_ri !-'t~lh::'1' k~~ f~F:~~^~ WA"f'~F ~Ul'~f-IC.~fr::I ~'C`r' i:~~Cl='Iwi~IL' ~: °fUf~:L~ IT:I'~1='i:]i~~:"i° fMxf-'~t~iU T'1"l.JF::f.:_~ "I"(:] T?r'~'TE e t~i~:::~ ~ Flu ~i-~~t~ ~ r~le:c-wry: }: I~Ir~, iw W~'~ i~::. C:1 .. W . k~Uf~::t1G:`~ ~f='f.~iw I F~L :al::F~:V T ~~ f.~;3 is ~ I I4i..1..~:E.~..1.. i"•'ir:fJh='CiSETi f='~=~`~'t'iL:l'~I..( a F~.. I t~l ~ L Li C ~a T ~~~ i`~I :~3F'~~i:~ I ~L ~L1=:U 1: ~:;fwt:~ o `~c3, £3Ci:. F,,.~. _t~_{..{~'~:~ r-1 ~?, faUf~:4'I~~Y ? ~~i:i, ':9[.,:.i . ' 'T 1~ 1 C-3 . i `~~iUhUE~`v ~•i•- ii~_.,.1'~.tr~_-~8 :~~', a, i'~::~,q.. C3t:3 _I..[l..f.~'~i._ E~kF='LI~I1) r`91= "f~:-•~: f='I'T:C~F'(:7;~Iwt:i f°'Fi`rl"il'~I~I"I° ;~.~'.`:,t,, t3t3:i .::•'_'Ci • ESPEY, ~~~ HUSTON & ASSOCIATES, INC. , 5 ` :~ Engineering & Environmental Consultants ti ~ ; 1„ '`~`'~, tk ~,` 27 April 1988 Invoice No. 88-03-0376 Job No. 10790 Terms: NET 30 Days LA PORTE AREA WATER AUTHORITY ATTN: BOB HERRERA GENERAL MANAGER LPAWA P.O. BOX 1115 LA PORTE TX 77571 LA PORTE AREA WATER AUTHORITY DISTRIBUTION SYSTEM REMITTANCE PAGE TOTAL -Current Invoice: $37,300.29 TOTAL -ACCOUNT BALANCE: $37,300.29 TOTAL AMOUNT ENCLOSED: $ (50110) MAY ' 719~d Please return this page with payment to ensure prompt & accurate credit. 888 West Belt Drive South, Suite 200 Houston, Texas 77042 (713) 781-8800 ~EY, HUSTON & ASSOCIATES, IN~ 27 April 1988 Page 1 of 4 Invoice No. 88-03-0376 Job No. 10790 Terms: NET 30 Days LA PORTE AREA WATER AUTHORITY ATTN: BOB HERRERA GENERAL MANAGER LPAWA P.O. BOX 1115 LA PORTE TX 77571 (50110) LA PORTE AREA WATER AUTHORITY DISTRIBUTION SYSTEM INVOICE SUMMARY (From 03/27/88 to 04/23/88) Task 11 -LPAWA FINAL DES Task 21 -SURVEY Task 23 - GEOTECHNICAL TOTAL DUE THIS INVOICE Amt Due: $ 30, 844.04 Amt Due: 1, 800.00 Amt Due: 4, 656.25 TOTAL -Previous Invoices TOTAL -Billed to Date Less Payments/Credits as of 4/25/88 NEW BALANCE DUE: $ 37,300.29 181,616.42 $218,916.71 181,616.42 $ 37,300.29 Please retain this page for your records ~EY, HUSTON & ASSOCIATES, IN~ Invoice No. 88-03-0376 Project 10790 -CONGER, DALE D. 27 April 1988 LA PORTE AREA WATER AUTHORITY Page DISTRIBUTION SYSTEM 2 of 4 TA5K 11 LPAWA FINAL DES Total Contract Amount $114, 661.00 Percent Complete - (72%) $ 82, 555.92 Less Previous Invoiced Amount 51,711.88 TOTAL DUE This Phase $30, 844.04 ~EY, HUSTON & ASSOCIATES, IN~ Invoice No. 88-03-0376 Project 10790 -CONGER, DALE D. 27 April 1988 LA PORTE AREA WATER AUTHORITY Page 3 of 4 DISTRIBUTION SYSTEM TASK 21 SURVEY LABORCosts Salary Costs -TOTAL $ 0.00 X Contract Multiplier 2.50000 Labor Costs -SUB-TOTAL 0.00 Survey Costs 3-man Crew - 24.0 hrs @ $75.00 1, 800.00 Labor costs -TOTAL $ 1, 800.00 TOTAL DUE This Task $ 1, 800.00 ~EY, HUSTON & ASSOCIATES, IN~ Invoice No. 88-03-0376 Project 10790 -CONGER, DALE D. 27 April 1988 LA PORTE AREA WATER AUTHORITY Page 4 of 4 DISTRIBUTION SYSTEM TASK 23 GEOTECHNICAL LABORCosts PURCHASED SERVICES Other Services -TOTAL Purchased Services -TOTAL TOTAL DUE This Task 4,656.25 4,656.25 $ 4,656.25 ESPEY, HUSTON & ASSOCIATES, INC. Engineering & Environmental Consultants 26 May 1988 Invoice No. 88-04-0369 Job No. 10790 Terms: NET 30 Days LA PORTE AREA WATER AUTHORITY (50110) ATTN: BOB HERRERA GENERAL MANAGER LPAWA P.O. BOX 1115 LA PORTE TX ?7571 LA PORTE AREA WATER AUTHORITY DISTRIBUTION SYSTEM REMITTANCE PAGE TOTAL -Current Invoice: $28, 534.59 TOTAL -ACCOUNT BALANCE: $65, 834.88 TOTAL AMOUNT ENCLOSED: $ • Please return this page with payment to ensure prompt & accurate credit. 888 West Belt Drive South, Suite 200 Houston, Texas 77042 (713) 781-8800 ~EY, HUSTON & ASSOCIATES, IN• 26 May 1988 Page 1 of 4 Invoice No. 88-04-0369 Job No. 10790 Terms: NET 30 Days LA PORTE AREA WATER AUTHORITY ATTN: BOB HERRERA GENERAL MANAGER LPAWA P.O. BOX 1115 LA PORTE TX 77571 (50110) LA PORTE AREA WATER AUTHORITY DISTRIBUTION SYSTEM INVOICE SUMMARY (From 04/24/88 to 05/21/88) Task 11 -LPAWA FINAL DES Task 21 -SURVEY Task 23 - GEOTECHNICAL TOTAL DUE THIS INVOICE Amt Due: $ 22,932.20 Amt Due: 4,450.32 Amt Due: 1,152.07 TOTAL -Previous Invoices (Incl. Credit Amounts) TOTAL -Billed to Date Less Payments/Credits as of 5/26/88 NEW BALANCE DUE: $ 28,534.59 218,916.71 $247,451.30 181,616.42 $ 65,834.88 Please retain this page for your records ~EY, HUSTON & ASSOCIATES, IN~ Invoice No. 88-04-0369 Project 10790 -CONGER, DALE D. 26 May 1988 LA PORTE AREA WATER AUTHORITY Page 2 of 4 DISTRIBUTION SYSTEM TASK 11 LPAWA FINAL DES Total Contract Amount GEC. Percent Complete - ~ 2 ~ ~d~ Less Previous Invoiced Amount '~' $114,661.00 $105,488.12 $ 82,555.92 $ 22,932.20 TOTAL DUE This Phase $22,932.20 ~EY, HUSTON & ASSOCIATES, IN~ Project 10790 -CONGER, DALE D. LA PORTE AREA WATER AUTHORITY DISTRIBUTION SYSTEM Invoice No. 88-04-0369 26 May 1988 Page 3 of 4 TASK 21 SURVEY LABORCosts Salary Costs -TOTAL X Contract Multiplier Labor Costs -SUB-TOTAL Survey Costs 3-man Crew - 56.0 hrs @ $75.00 Labor costs -TOTAL $ 100.13 ~~~~~ 250.32 4,200.00 $ 4,450.32 TOTAL DUE This Task $ 4,450.32 ~'EY, HUSTON & ASSOCIATES, INi Invoice No. 88-04-0369 Project 10790 -CONGER, DALE D. 26 May 1988 LA PORTE AREA WATER AUTHORITY Page 4 of 4 DISTRIBUTION SYSTEM TASK 23 GEOTECHNICAL LABORCosts PURCHASED SERVICES Other Services -TOTAL $ 1,152,0? Purchased Services -SUB-TOTAL 1,152.07 Purchased Services -TOTAL $ 1,152.07 TOTAL DUE This Task $ 1,152.07 Project 10790 -TOTAL AMOUNT DUE $ 38,395.29 • • KNOX W. ASKINS, J. D., P. C. _ ATTORNEY AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 JOHN D. ARMSTRONG, J.D. LA PORTE, TEXAS 77571-1218 ASSOCIATE June 3, 1988 Mr. Bob Herrera General Manager La Porte Area Water Authority P.O. Box 1115 La Porte, Texas 77572-1115 TELEPHONE 713 471-1886 RE: La Porte Area Water Authority Annexation of Bayshore Municipal Utility District (BAYMUD) Dear Bob: You have asked that I advise you concerning the authority of the La Porte Area Water Authority to annex the Bayshore Municipal Utility District. As you know, BAYMUD some time ago submitted a petition tc the La Porte Area Water Authority that requested annexation of the District by the Authority. The petition in my estimation complies with V.T.C.A., Water Code, Section 54.711 through 54.721. The question has been raised in my mind regarding the validity of the annexation procedure, due to the fact that a Texas Water Commission lawyer that I spoke to in Austin indicated to me in the past that the La Porte Area Water Authority would not have the power to proceed to annex a freshwater supply district. However, I have spoken with other specialists in the field, including another Texas Water Commission lawyer, who indicated to me that the La Porte Area Water Authority would have the authority, pursuant to State law, to annex the territory encompassing BAYMUD. In my opinion, Chapter 54 of the Water Code, and the La Porte Area Water Authority enabling act, Vernon's Texas Session Laws, 67th Legislature, Chapter 729, Page 2678 (the "Authority Act") clearly provide that the La Porte Area Water Authority has the power to annex the territory encompassing BAYMUD, and clearly sets forth a procedure for the annexation. I have, by previous opinion letters submitted to you, spelled out the steps required in the Water Code and in the Authority act. I understand that the sole reason for adding the land encompassed within BAYMUD to the boundaries of the La Porte Area Water Authority, is to provide that BAYMUD would have a Director seated on the Board of the La Porte Area Water Authority, said Director qualifying under Section 10(b) of the Authority Act. Even if a Director qualified from the territory to be added to the boundaries of the Authority by the Authority's annexation of BAYMUD, if the City of La Porte subsequently annexed BAYMUD, then the Director added would automatically be dis- qualified from continuing his service on the Board of Directors. • • Page 2 Mr. Bob Herrera June 3, 1988 I am informed that the City Council of the City of La Porte has expressed an intent to annex BAYMUD on or about January 1, 1989. Thus, the benefits of seating a Director on the La Porte Area Water Authority from BAYMUD would be short lived at best. In addition, if I am incorrect in my assessment of the La Porte Area Water Authority's ability to annex BAYMUD, and a Director is seated on the Board of the La Porte Area Water Authority, without appropriate legal qualification, such an act could cloud the ability of the Authority to appropriately enter into contracts, sell bonds, or take other powers consistent with the Authority act. Thus, I conclude that the La Porte Area Water Authority is empowered by law to annex BAYMUD, but I further conclude that the benefits of such an action are to the La Porte Area Water Authority, the City of La' Porte, and BAYMUD, dubious at best, and I submit that the potential disadvantages outweigh the potential advantages of such an action. Finally, the status of the City of Shoreacres comes into question, and depends on the actions' of the La Porte Area Water Authority regarding the annexation of BAYMUD. The Authority boundaries are set forth in Section 3 of the Authority Act. It takes an act of annexation by the La Porte Area Water Authority, consistent with Section 8 of the Authority Act, to add land to said boundaries. BAYMUD will not be added to the boundary of the La Porte Area Water Authority if and when the City of La Porte annexes BAYMUD, until the La Porte Area Water Authority annexes BAYMUD. The City of Shoreacres will not be eligible for annexation into the boundaries of the La Porte Area Water Authority until a boundary of the Authority and a boundary of Shoreacres are contiguous and adjacent, pursuant to Section 8 of the Authority Act. Thus, for Shoreacres to be annexed into the La Porte Area Water Authority, BAYMUD would first have to be annexed into La Porte Area Water Authority, extending a boundary of the La Porte Area Water Authority to a point adjacent to the City of Shoreacres boundaries. Respect~ull~ ~.y~bmitted, JoB~ D. ~rmstrong JDA:rad BAYMUD ANNEXATION PROCEDURE LA PORTE AREA WATER AUTHORITY 1. BAYMUD submits annexation petition to La Porte Area Water Author- ity Board of Directors. 2. La Porte Area Water Authority Board accepts petition and certifies it at regular called meeting, annexation hearing called by the Board to be held within thirty (30) days. 3. La Porte Area Water Authority Board posts notice of the public hearing on annexation: a. Notice of the hearing posted in three (3) public places within the current boundary of the La Porte Area Water Authority at least fourteen (14) calendar days prior to annexation hearing. 4. 5. 6. 7. b. Notice of the hearing posted at the offices of the Bayshore Municipal Utility District at least fourteen (14) calendar days prior to annexation hearing. c. Notice of the hearing published in the Bayshore Sun at least fourteen (14) calendar days prior to the hearing. Hearing on annexation held in the City Hall of the City of La Porte. At close of hearing, La Porte Area Water Authority Board enters an order in the minutes of the meeting annexing the land described in the petition. a. Majority of La Porte Area Water Authority Board signs the order. Secretary of the Board attests the order. Order annexing BAYMUD filed and recorded in Harris County Deed Records. La Porte Area Water Authority Board sends copy. of order to Texas Water Commission within thirty (30) days of annexation hearing. ~~ • RESOLUTION NO. 88- 2 A RESOLUTION REQUIRING THE PRE-QUALIFICATION OF CONTRACTORS ON LA PORTE AREA WATER AUTHORITY CONSTRUCTION PROJECTS HAVING AN ESTIMATED COST OF GREATER THAN THREE HUNDRED THOUSAND DOLLARS ($300,000.00); REQUIRING FILINGS OF CONTRACTOR'S STATEMENTS WITH THE LA PORTE AREA WATER AUTHORITY; PROHIBITING CONTRACTORS FROM SUB- CONTRACTING MORE THAN FIFTY PERCENT (50$) OF WORR ON LA PORTE AREA WATER AUTHORITY PROJECTS WITHOUT PRIOR WRITTEN CONSENT; REQUIRING ATTENDANCE AT A PRE-BID CONFERENCE AS A PREREQUISITE TO SUBMITTING A BID; PROVIDING FOR PUBLICATION OF NOTICE; APPROVING AND ADOPTING FORMS FOR THE PRE-QUALIFICATION OF CONTRACTORS; DEFINING "BIDDING CAPACITY"; ADOPTING DISQUALIFICATION STANDARDS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LA PORTE AREA WATER AUTHORITY: Section 1. The Board of Directors of the La Porte Area Water Authority has determined, and does hereby find, determine, and declare that it is in the best interest of the La Porte Area Water Authority that all Contractors desiring to bid on La Porte Area Water Authority construction projects having an owner's estimated construction cost of greater than Three Hundred Thousand Dollars ($300,000.00), must pre-qualify by filing a satisfactory Contractor's Statement, on the forms attached hereto, with the Construction Project Manager, La Porte Area Water Authority, no later than thirty days prior to the date bids are to be opened, if a Contractor is to be eligible to bid. Thereafter, a new contractor's Statement shall be filed with the Authority annually. Contractors who are pre-qualified in accordance with City of La Porte Ordinances 1476 and 1476-A do not need to additionally pre-qualify under the terms of this resolution. The financial information contained in such Contractor's Statement is deemed confidential; shall not be disclosed by Authority to the public or to other contractors; and shall be deemed exempt from disclosure under the Open Records Act, Art. 6252-17a, V.A.T.S., in accordance with Texas Attorney General's Opinion No. ORD-309, 1982. The Board of Directors of the La Porte Area Water Authority finds that disclosure of the financial information is likely to have either of the following effects: (1) to impair the Authority's ability to obtain necessary information in the future; or (2) to cause substantial harm to the ,competitive position of the person from whom the information was obtained. `• • RESOLUTION N0. 88-_, Page 2 Section 2. Contractors entering bids on La Porte Area Water Authority construction projects shall not subcontract more than fifty percent (50$) of the work on the project, without first obtaining the express written consent of the La Porte Area Water Authority. Section 3. All Contractors (or a representative of the contractor) desiring to bid on La Porte Area Water Authority construction projects must attend a pre-bid conference; otherwise, such Contractor's bid will be returned by the Authority unopened. Section 4. Public notice of prequalification of bidders by the La Porte Area Water Authority, shall be published in like manner as invitations to bidders, and shall not be a substitute for publishing the actual invitation to bidders on each project. Section 5. The Board of Directors of the La Porte Area Water Authority approves and adopts the forms for Contractor's Statements, attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 6. The La Porte Area Water Authority is interested in determining a Contractor's "Bidding Capacity" for the purpose of issuing proposals and awarding contracts. "Bidding Capacity" is determined by multiplying the positive net working capital, as hereinafter defined, by a factor determined by the La Porte Area Water Authority. Only those statements reflecting a positive net working capital position will be considered satisfactory for prequalification purposes. "Positive Net Working Capital" generally is represented by the excess of current assets over current liabilities, as shown by a balance sheet examined by an independent Certified Public Accountant. Section 7. The Board of Directors of the La Porte Area Water Authority adopts following standards for disqualification of Contractors: I. AUTOMATIC DISQUALIFICATION A. Company has no Positive Net Working Capital. B. Company submits consolidated Statements. • ~ • RESOLUTION N0. 88-_, Page 3 C. Failure to complete Statements in all detail. D. Company or personnel on Federal Job Debarment list. E. Company or personnel on Justice Department list of unacceptable contractors; i.e. convicted of anti-trust violations. F. Failure to complete Statements in a truthful manner. II. OTHER CONSIDERATIONS FOR POSSIBLE DISQUALIFICATION A. Companies with pending litigation may be disqualified for duration of litigation as deemed to the advantage of the Authority by the Authority's Construction Project Manager. B. Default on contract, or forfeiture of bid bonds or performance bonds. C. Performance record of poor workmanship on previous projects. D. Performance record of failure to complete warranty work. E. Bankruptcy or financi al reorganization. Sec tion 8. The Board of Directors of the La Porte Area Water Authority officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the Board of the Authority was posted at a place convenient to the public at the City Hall of the City of La Porte, Texas for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this resolution and the subject matter thereof has been discussed, considered and formally acted upon. The Board further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 9. This Resolution shall take effect and be in force from and after its passage and approval PASSED. AND APPROVED this the 1~., day of , 1988. ATTE ~T: ~ ~~ ~~ ~~c~~z~ Claude r es, ecretary APP ~O~ G L PORTE AREA WATER AUTHORITY By: Jerr Br e , President Jt~fn~ D. Armstrong, At~tor WARNING TO BIDDERS The signatory of this Contractor's Statement guarantees, as evidenced by the sworn affidavit required herein, the truth and accuracy of all statements and of all answers to the interrogatories hereinafter made. Before a contractor shall be considered eligible to bid on owner's work of estimated construction cost of greater than , he must have filed a satisfactory contractor's statement on this form, with the La Porte Area Water Authority. This statement shall be made as of the last day of any month, and must be on file in the offices of the La Porte Area Water Authority, at least thirty (30) days prior to the date bids are to be opened, if a contractor is to be eligible to bid. A new Contractor's Statement shall be made annually. If a contractor has a satisfactory Contractor's Statement on file, he will be eligible to bid for a period of twelve (12) months from the date of the Contractor's Statement; however, the La Porte Area Water Authority reserves the right to require a new contractor's statement at any time. A contractor will be granted a three month grace period to prepare and submit a new Contractor's Statement, provided he notifies the construction manager in writing, prior to the date his Contractor's Statement expires, of his intention to requalify. It is clearly understood that if discrepancies are found in his Contractor's Statement, the same will be considered unsatisfactory, and the contractor will be ineligible to bid until such discrepancies are satisfactorily explained to the construction project manager. In compiling the Contractor's Statement, all items must be filled in and all schedules must be completed in detail. If separate schedules are used, they must be specifically identified as to which schedule in the Contractor's Statement they support. FAILURE TO COMPLETE ALL ITEMS AND ALL SCHEDULES IN DETAIL WILL DISQUALIFY THE CONTRACTOR, AND THE CONTRACTOR WILL BE INELIGIBLE TO BID UNTIL A PROPERLY COMPLETED CONTRACTOR'S STATEMENT HAS BEEN FILED WITH the La Porte Area Water Authority. If there is nothing to report in certain items or schedules, then make the notation "None". The amount as shown for each item must be actual, as taken from company's books and verified, and must not be "approximate" amounts. A CONTRACTOR SUBMITTING A BID ON OWNER'S WORK SHALL ENTER A BID WHICH STRICTLY CONFORMS TO THE PLANS AND SPECIFICATIONS OF THE PROJECT AS ISSUED BY THE PROJECT'S ENGINEER(S). CONTRACTORS ENTERING BIDS ON OWNER'S WORK SHALL NOT SUBCONTRACT MORE THAN 50$ OF WORK ON THE PROJECT, WITHOUT FIRST OBTAINING THE EXPRESS WRITTEN CONSENT OF THE LA PORTE AREA WATER AUTHORITY. All contractors (or a representative of the contractor) desiring to bid on owner's work must attend a pre-bid conference; otherwise, their bid will be returned unopened. No plans and specifications shall be issued by the engineer(s) after the pre-bid conference.