HomeMy WebLinkAbout09-10-15 Regular Meeting of the La Porte Area Water Authority minutes (2)LA YORTE A72FA WATER Ai1THORITY
1VIIIV UTES
September 10, 2015
1 _ The meeting was called to order at 6:00 PM by President Kenneth Schlather.
Members Present. Kenneth Schlather, President; Doug Martin, Vice President; Charlie Perry, Secretary; Randy
Woodard
Members Absents Excused absence: Dennis Steger
Others Presents Corby Alexander, General Manager; David Mick, La Porte Public Works Director
2_ The August 06, 2015 minutes were reviewed and unanimously approved with Doug Martin making the motion
to approve and Randy Woodard seconding.
3_ David Mick provided the background to the February 28, 2015 invoice submitted by the City o£Houston £or the
Southeast Water Purification Plant ICSEWPP) improvement and expansion project bid in 2007 and constructed
primarily from 2008 tbrough 201 O with some minor construction and warranty work continuing to 2012. The
expansion project true -up invoice is in the amount $293,763.82_ The LPAWA share estimated in 2007 was
$891,540 less a $304,980 credit for oversized items previously funded by LPAWA recouped from those entities
that are participating in the 80 mgd expansion_ The project, designed to increase the capacity of the SEWPP
from 120 mgd to the current capacity o£ 200 mgd, was bid at approximately $168-million with a Final cost of
$171-million_ Total change orders amounted to less than 2% of the contract amount_ The co -owning entities
that participated in the plant expansion portion of the project contributed additional funds at the start of the
project equal to a 5% contingency_ Those entities are receiving money back_ The co -owning entities such as
the La Porte Area Water Authority that did not participate in the plant expansion but did participate in the cost
of e..ha.acetaents to the previously existing 120 mgd portion of the plant owed additional funds_ Staff received
additional information From the City of Houston on several occasions, with the final su13mittal received
September 4, 2015, as needed for staff to be comfortable recommending payment_ Motion to approve staff s
request to pay the $293,763.82 trace -up invoice was made by Randy Woodard with Charlie Perry seconding.
Motion was approved unanimously_
4_ David Mick presented the background information to the FY 16 Southeast Water Purification Plant �SEWPP�
budget dispute_ Continuing discussions initiated in the prior meeting_ As the Managing Owner, the City o£
Houston prepares the annual budget £or the SEWPP_ The contract between the co -owners provides a process
for disputing portions of the annual budget provided that: 1) more than 50% of the plant co -owners, with the
vote weighted by the percentage of water consumed over a 12-month period, are in agreement with the dispute,
and 2) the disputed line items are not necessary £or the regulatory compliance, health, safety or security. The
board reviewed a summary of budget line items likely to be contested by a majority of the co -owners- The
disputed amount may be as high as $O.1102/1000 gallons pending fa>_rther information From the City o£Houstoa_
Sta£F is recommending joining with other co -owners in disputing the FY 16 budget line items totaling
$0.1102/1000 gallons. Staff' also recommends increasing the LPAWA FY 16 budget line item For Other
Professional Services by $15,000 For a total budget of $25,000 for consulting and legal Fees that may be
associated with the dispute_ Staff s best estimate o£ the worst -case cost exposure to the LPAWA in terms o£
legal and consulting fees is $75,000 should the dispute goes tl r gb a Full trial. Motion to dispute the FY 16
SEWPP budget and to increase the Other Professional Services budget by $15,000 was made by Randy Woodard
and seconded by Doug Martin. The motion was unanimously approved-
S
. Corby Alexander indicated that he had no additional comments.
6. There were no additional comments concerning the authority from the board.
7_ There being no further business, the meeting adjourned at 6:12 PM_
September 10, 2015 LPAWA Minutes Page 2/2
Secretary
PASSED AND APPROVED
ON THIS DAY
As4ident