HomeMy WebLinkAbout09-07-16 Regular Meeting of the La Porte Area Water Authority MinutesLA PORTE AREA WATER AUTHORITY
MINUTES
September 07, 2016
The meeting was called to order at 6:02 PM by President Ken Schlather.
Members Present: Ken Schlather, President; Doug Martin, Vice President; Charlie Perry, Secretary; Randy
Woodard Position I
Members Absent: Excused absence: Stephen Barr Position 2;
Others Present: Corby Alexander, General Manager; Sharon Valiante, La Porte Public Works Director;
Michael Dolby, La Porte Finance Director;
2, Tire February 10, 2016 minutes were reviewed and unanimously approved with Doug Martin making the motion
to approve and Charlie Perry seconding.
Ken Schlatber opened up the floor to Sharon Valiante to present the proposed FY 17 Operating Budget for the
LPAWA; CM Corby Alexander reviewed Fund Summary (pg. 5-10 & 5-11); discussion following: 1.
Woodard -- Clarification of water rate set by City of Houston not by LPAWA, Alexander & Dolby --- City of
La Porte absorbing cost increase and not passing along to customers; up to each jurisdiction in LPAWA to
make that choice (noting in the covenants restricts City from absorbing the cost increase); Woodard,
Alexander, & Dolby -- discussion relating to accounting practices in relation to CIP improvements and bonds;
i.e., looking forward in next 5 years — LPAWA has Capital Recovery set aside for this; . Doug Martin made
the motion to approve budget as presented with Randy Woodard seconding the motion. The motion was
unanimously approved.
Sharon Valiante provided the board an update on the status of the contested City of Houston FY 16 budget
and the FY 15 True -up. The City of Houston and the co -participants bad progressed to mediation for the
budget dispute and other operating issues without a final resolution and decided to go back to the table to
continue negotiations. As of September 7°i, the Co -Participants met with the City of Houston and made a
counter offer to the City of Houston to reduce the FY 16 City of Houston's Aug I offer from $16,026,077 to
$15,264,768, which basically removes a "redundant" overhead charge. Sharon explained that the goal of the
negotiations was to get City of Houston nailed down on methodology that was acceptable to both parties so
that this could be applied to the FY 16 budget and in the same way to the FY 15 True -Up and in any succeeding
year's budgets. She also explained that the City of Houston did not have anyone in authority at the meeting
to accept or reject the counter offer. Discussion followed with questions from Randy Woodard regarding the
possibility of seeing actual budget numbers for the SEWPP plant for the year's in dispute. In addition Randy
requested to see an Income Statement, a Balance Sheet, and actual budget breakdown of expenditures for the
SEWPP. Sharon Valiante agreed to follow up. Randy will be notified when the information is available.
5. Ken Schlather opened up the floor to Sharon Valiante to present the information regarding the Co -Participants
action on disputing the FY 17 adopted City of Houston budget. Sharon explained that this item was to be
presented at the LPAWA Board meeting for the board to take action on at a meeting that had previously been
scheduled for August 101, but that meeting had to be rescheduled because of attendance conflicts. The next
available date that the board meeting was scheduled for happened to be the same date as the scheduled meeting
between the Co -Participants and the City of Houston where the action to dispute was to be formerly done.
Sharon informed the board that the Co -participants meet with the City of Houston had taken place earlier in
the day. The meeting was held at 1:30 PM where the Co -participants informed the City of Houston that they
were formerly disputing the FY 17 adopted budget. This action was taken by the Co -Participants with the
LPAWA City of La Porte staff representing in favor of the dispute. She further explained that the vote in
favor of the dispute was based on the history regarding the FY 15 True -Up and the FY 16 Budget disputes.
She explained to the board that bad an option to rescind the vote, but recommended to the board that they
ratify the vote in favor of dispute of the FY 17 City of Houston budget that was taken earlier in the day. Doug
Martin motioned to ratify the vote in favor of dispute, Charlie Perry seconded; motion passed.
Additional discussion from Randy Woodard, Corby Alexander on the FY 17 adopted budget centered on cost
allocations and agreements in place that allow City of Houston to prepare the budget as presented. Sharon
Valiante also presented the positions of both parties, City of Houston -- operators agreement is no longer
applicable because they gave notice of termination, so they can basically charge an admin fee (33.9%) that is
in accordance with their current practice with other SWPP's; Co -Participants — agree Operating agreement
expired, but the initial cost sharing agreement in place which reverts the admin fee to 9% with a CPI adjustment
from year to year.
6. Corby Alexander indicated that he had no additional comments.
7. There were no additional comments from the Board.
S. There being no further business, the meeting adjourned at 6:50 PM, Doug Martin motioned, Charlie Perry
seconded.
September 07, 2016; LPAWA Minutes Page 2/2
Secretary
PASSED AND APPROVED
ON THIS DAY
sident