Item Coversheet


Meeting Date: 3/26/2019

Item Creation Date: 2/8/2019

HPW - 20DWO35 2019 O&M Budget - Coastal Water Authority (CWA) - Luce Bayou System Project

Agenda Item#: 8.


RECOMMENDATION from Director Houston Public Works for approval of the 2019 Operations and Maintenance Budget for the LUCE BAYOU SYSTEM PROJECT operated by the Coastal Water Authority - $1,751,000.00 - Enterprise Fund


Approve the 2019 Operations and Maintenance Budget for the Luce Bayou System Project in the amount of $1,751,000.

The Coastal Water Authority (“CWA”) operates the raw surface water transportation system for the City of Houston (“City”) and provides conveyance for many governmental and industrial users. CWA plays an essential role in the City’s program of increased surface water use.

On January 30, 2009, the City and CWA entered in to a Projects Contract (“Projects Contract”) approved by City Council on January 28, 2009 by Ordinance No. 2009-0053, pursuant to which the Parties agreed to cooperate in the planning, design, property acquisition, construction, and financing of the Luce Bayou lnterbasin Transfer Project (“Luce Bayou System Project”). The City and CWA entered into an Operating Contract (“Operating Contract”) approved by City Council on November 4, 2015 by Ordinance 2015-1072, pursuant to which CWA agreed to operate and maintain the Luce Bayou System Project and to transport, convey, and deliver the water of the City, for and on behalf of the City, through the Luce Bayou System Project on an annual cost basis.

Section 205 of the Operating Contract requires CWA to prepare and submit to the City an annual operating budget setting forth in detail proposed expenditures for the operation, maintenance, administration, capital improvements, and renovation and repair costs associated with the Luce Bayou System Project. CWA presented the City with the proposed 2019 operations and maintenance (“O&M”) budget for the Luce Bayou System Project in the amount of $1,751,000. This budget reflects a funding increase of $579,500 as compared to the 2018 budget that was approved by City Council on January 24, 2018, Motion Number 2018 0044. Houston Public Works met with CWA officials to review the submitted budget and concluded that the budget presented by CWA is reasonable given the work proposed.

The funds are allocated in the HPW budget according to CWA’s annual budget submittal during the month of October. CWA’s Fiscal Year 2019 starts on January 1, 2019 and ends on December 31, 2019. Six months of CWA’s budget are allocated to the City’s FY19 Budget (January 2019 to June 2019), and the remaining six months are allocated to the City’s FY20 Budget (July 2019-December 2019). Payments made to CWA are based upon documented actual monthly O&M expenditures.

It is recommended that City Council approve the 2019 CWA O&M budget for the Luce Bayou System Project in the amount of $1,751,000.

Funding for this item is included in the FY19 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.





Carol Ellinger Haddock, P.E., Director

Houston Public Works

Prior Council Action:

Motion No. 2018-0044, January 24 2018

Ordinance No. 2015-1072, November 4, 2015

Ordinance No. 2009-0053, January 28, 2009

Amount and Source of Funding:

$1,751,000.00 From Fund No. 8300 - Water and Sewer System Operating Fund


$875,500.00  Allocation for FY19 (January 2019 - June 2019)

$875,500.00  Allocation for FY20 (July 2019 - December 2019)

Contact Information:

Sharon Citino, Planning Director

Houston Water

Phone: 832-395-2712

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