This presentation provides an overview of services provided by the SJRA Lake Conroe Division and the associated costs. It discusses operations, maintenance, water quality programs, invasive species management, and safety regulation enforcement. It also reviews the sources of revenue that fund these services, including fees from dock licenses, commercial leases, and irrigation permits. The presentation notes that an SJRA Board approved fee increase in 2010 aimed to make projected revenues equal projected expenses.

1. December 20, 2011

2. An SJRA Board of Directors approved revision to the
Lake Conroe Division fee structure became effective
September 1, 2010.
This presentation addresses the following:
 Services provided by the SJRA Lake Conroe
Division and support staff (27 slides)
 Chronology of Events (3 slides)
 Source of revenue to fund those services (4 slides)
 Cost of those services (13 slides)
 Closing (2 slides)

3.  Operations
 Maintenance and Repair
 Water Quality
 Invasive Species Management
 Safety Regulation Enforcement
 Residential/Commercial Licensing

4. Lake Conroe
• 444 Sq Mile Watershed
• 20,985 Surface Acres Water at
Full Pool
• 159 Miles of Shoreline
• 11,350 Feet Long High
Hazard Dam
• 3652 Permitted Docks
• 1855+ Permitted OSSFs
• 7 Major Marinas

5. Service
Gate Outlet
Structure
Earthen
Dam
Earthen
Dam
Service
Lake Conroe Dam Outlet
Pond

6.  Facility/site surveillance
 Lake level, evaporation and
rainfall monitoring and recording
 Watershed conditions monitoring
 Piezometer and relief well monitoring
and recording
 Public Awareness

7. 1998 Flood
Hurricane Ike
Hurricane
Rita

9.  Clean Rivers Program Participation
 Onsite Sanitary Sewage Facility (OSSF)
Program Administration
 Marine Sanitation Certification Program
 Spill Mitigation & Emergency Response
 Water Sampling
 Watershed Mapping

10. OSSF
Program
• Administer
TCEQ Regs
• 2075’ from
NPWS
• 1,767 at end of
2007
• 1,855+
Currently
Licensed
• 1,921 Mapped

11.  Aquatic Plant Management
 Zebra Mussel Management

12.  SJRA Activities
 Monitoring
 Selected Chemical Spraying
 White Amur Management
 Native Plant Nursery & Habitat Restoration
 Active Participation in Texas Aquatic Plant Management Society
(President 2011, Board of Directors)
 Active Participation in Texas Invasive Plant and Pest Council
 Public Awareness
 Significant External Contributions
 Lake Conroe Association
 Montgomery County
 Texas Parks and Wildlife
 US Fish and Wildlife
 Sports Groups

14.  Residential Docks
 Allows residents to construct and maintain docks on property
owned/controlled by the SJRA and convert these public areas to
private “restricted access” use
 Commercial Marinas and Businesses
 Allows commercial enterprises to construct and maintain marinas
and conduct business on property owned/controlled by the SJRA
and convert large areas to private “restricted access” use
 Land Lease Agreements
 Allows citizens to use property owned by the SJRA for private
enterprises
 Single Family Lawn Irrigation
 Allows residents to divert water from Lake Conroe for irrigation
 Commercial Irrigation
 Allows commercial enterprises to divert water from Lake Conroe for
irrigation

15.  3652 Dock Licenses
 Single and Multi-family Docks
 Based on square footage of dock area and dedicated slip
area
 Average 824 sqft
 645 new Dock Licenses Jan. 2008-Nov. 2011
 Aged backlog of 57 past due accounts 2006-2010
 333 past due accounts as of Jan. 1 - Nov. 15, 2011
 Reduced from backlog of 1200 past due accounts in
2007
 Aggressive 30-60-90 day enforcement plan

17. Map Legend:

18.  Monitor access
and navigational
safety
 Ensure docks
don’t extend
across property
lines
 Enforce lake
operational
regulations

20.  71 Commercial accounts
 Marina Leases
 Based on square footage of dock and boat slip area
 7 large marinas
 9 subdivision marinas
 Barges and Excursion Vessels
 Used for commercial purposes
 Rental Vessels
 Includes personal watercraft
 Courtesy Docks

21.  61 Land Lease Agreements With Renewal
Provisions and > 100 Perpetual Agreements
 Use of SJRA property located immediately adjacent
to and between private property and normal pool
 Single Family Residences
 Renegotiated upon transfer
 Commercial Property
 5 year escalation
 20 Year Term

22.  404 Permitted Single Family Lawn Irrigation
Permits as of November 2011
 120 Accounts at end of 2007
 Unpermitted Irrigation Setups Identified
During Dock Monitoring

23.  GIS Database
 Title Company Searches
 MCAD Data Research
 Communication with POAs, ACCs
 Field Verification
 Resources
 Manager
 Administrative Staff
 Field Staff

25.  Property (associated with a dock) is sold
without notification to SJRA
 Renewal is sent to previous owner
 Previous owners often discard renewal notices
 SJRA staff forced to search MCAD database and/or conduct
title search for new owner
 Renewal sent to new owner
 Property owner retains property but relocates
from primary residence (billing address)
without notification to SJRA
 Renewal is sent to previous billing address
 If no forwarding address, SJRA staff forced to search for new
primary residence of property owner

26.  New property owners construct dock or
existing property owners modify (expand)
dock without prior notification of SJRA
 Requires SJRA staff to conduct periodic surveillance of entire
shoreline to identify compliance violations.
 Current marina owners modify (expand)
facilities or change use of facilities without
prior notification of SJRA
 Requires SJRA staff to conduct periodic surveillance to identify
compliance violations.

27.  Residential/Commercial Enterprises do not
respond to initial Renewal Notice
 Requires SJRA Lake Division Operations Manager to send
second notice 30 days after initial notice.
 If no response, requires SJRA Lake Division Manager to send
third notice 60 days after initial notice.
 If no response, requires SJRA to contract with third party
attorney to send final notice 90 days after initial notice.
 If no response, requires SJRA to take legal action.

28.  Updating residential files to capture current
conditions
 Continue unbilled or overdue dock license
backlog reduction
 Continue to identify, research and bill for
unlicensed docks
 Install tags on all docks
 Public Awareness Campaign
 Concerned customer calls due to current
drought conditions

29. Backlog of
Sept 2010
Accounts in
Arrears Peaks
1973
2008
City of Houston Water Customers Subsidize Lake Conroe Services to Local
Residential & Commercial Owners
COH Requests
Subsidies Cease
Rate
Increase
Effective

30. Licensing
COH
System Non-
Financial
compliance
Crisis
Peaks

31. Firm request from COH to Update of Lake SJRA Board approved
cease further subsidizing Division Rate Lake Division Rate
of certain Lake Conroe Structure to SJRA Structure revisions
activities (Feb 9) Board (Feb 19) (June)
Aug. 2010
Dec. 2008
Aug. 2011
Aug. 2009
2008
COH Requests Lake Division FY SJRA Board approved
Subsidies Cease 2010 budget Lake Division FY 2012
includes four budget
Lake Conroe Division separate areas
costs manually SJRA Board approved
separated into four work SJRA Board deferred Lake Division FY 2011
areas based on action on rate structure budget with rate
assumed allocation of increase for FY 2010 revisions effective Sept.
resources (July) 1, 2010

32. The SJRA maintains detailed financial records
down to the individual transaction as required by
GAAP, GASB and TCEQ accounting requirements
and formats. These detailed records have always
existed and are always available for staff to use in
budgeting and auditing. However, governmental
accounting standards do not prescribe that audits
and annual financial statements be prepared in
additional levels of detail due to the cost. Instead
they prescribe reasonable, standard reports and
formats to be used for financial reporting.

33.  Fees
 Contributions by local associations and
individuals
 Contributions by other governmental entities
 City of Houston*
* City of Houston contributes to two-thirds of acceptable
costs associated only with the operations and maintenance
of Lake Conroe Dam. City of Houston strictly prohibits
use of funds from City of Houston water customers to
subsidize activities in and around Lake Conroe that are
perceived to only benefit the residents and recreational
users of Lake Conroe.

34.  SJRA Board approved fee increase
 Approved June 2010
 Approved Budget August 2010
 Effective September 1, 2010
 Approximately 50% increase
 Residential dock licenses implemented as current
licenses expire throughout the year
 Commercial leases implemented as current contracts
(5 year) expire
 Goal : Projected Revenue = Projected Expenses

35. Item Current Rate Proposed Term Approved Rate in FY 2011
Per Unit
Single Family Residential $500 20 year agreement with $500
Use Agreement annual escalation option
and renegotiated upon
transfer, annual fee
Commercial Use $0.25 20 year agreement with $0.375
Agreement annual escalation option,
annual fee
Residential Dock License $0.125 Annual $0.188
Fee
$40 Min. $60 Min.
Commercial License Fee $250 Annual $375
Commercial Lease Fee $0.25/sf Annual $0.375/sf
Excursion Vessel and $125 Annual $250
Commercial Barge
License Fee
Rental Vessel License Fee $50 Annual $100
On-Site Sewage Facility $200 One Time $300
(OSSF) Permit
OSSF Reinspection Fee $50 Each Time $260
OSSF Transfer Fee $50 Each Time $100
Marine Sanitation $30 Bi-annually $50
Certification Fee
Single Family Residential $120 Annual 6 month $150
Lawn Irrigation Fee
(April-September)

36.  Wages and Benefits
 Professional Fees
 Purchased and Contracted Services
 Supplies, Materials & Utilities
 Rentals
 Maintenance, Repairs & Parts
 General & Administrative
 Capital Improvements

37. Residential/Commercial OSSF License & Operation &
Boatslips Including Permitting & Aquatic Plant Maintenance
Total Backlog Water Quality Management (includes Admin)
Division Manager 20% 10% 20% 50%
Deputy Division Manager 20% 50% 10% 20%
Ops/Maintenance Manager 10% 20% 20% 50%
Aquatic Plant Mngnt Tech 30% 20% 30% 20%
Admin Assistant I 50% 15% 0% 35%
Admin Assistant II 60% 0% 0% 40%
Senior Maintenance Tech 0% 0% 20% 80%
Maintenance Tech I 0% 0% 10% 90%
Maintenance Tech I 0% 0% 50% 50%
Intern 25% 25% 25% 25%
General Manager 5% 5% 5% 10%
Deputy General Mgr – Ops 1% 3% 1% 5%
Deputy General Mgr - Admin 10% 5% 5% 10%
Controller 3% 2% 2% 2%
Accountant 12% 6% 6% 10%
Accountant Assistant I 15% 10% 5% 10%
Accountant Assistant II 12% 6% 6% 10%
Accountant Assistant III 20% 20% 20% 10%
Accounting Admin Assistant 20% 10% 10% 10%
Office Manager 3% 3% 3% 3%
Benefits Coordinator 3% 3% 3% 3%
HR/Admin Support Admin 5% 5% 4% 5%
IT Manager 5% 5% 5% 5%
IT Tech 5% 5% 5% 5%
IT System Admin 5% 5% 5% 5%
IT/Communication 5% 5% 5% 5%
IT L1 3% 2% 2% 3%
Receptionist 10% 5% 10% 5%
Safety Specialist 3% 2% 2% 8%
Wages $176,358 $140,853 $144,989 $291,018
Wages W/Benefits $1,144,500 $268,064 $214,097 $220,383 $442,347

38. Operation &
Residential/Comme OSSF License & Maintenance
rcial Boatslips Permitting & Aquatic Plant (includes
Total Including Backlog Water Quality Management Admin)
OUTSIDE SERVICES
EMPLOYED
LEGAL SERVICES $24,000 $16,000 $2,000 $2,000 $4,000
AUDITING $7,600 $2,400 $1,400 $1,400 $2,400
MANAGEMENT AUDIT $0
ENGINEERING $297,500 $297,500
CRANE INSPECTIONS $7,500 $7,500
CONFINED SPACE
INSPECTIONS $7,000 $7,000
WASTE DISPOSAL SERVICES $4,000 $4,000
STATE FEES $2,500 $500 $1,000 $1,000
PATROLLING SERVICES $150,000 $150,000
EMPLOYEE TESTING- NEW $300 $100 $50 $50 $100
RECRUITING EXPENSES $1,000 $300 $200 $200 $300
JANITORIAL SERVICES $4,000 $4,000
RAIN GAUGING FEES $1,200 $1,200
STREAM GAUGING & WATER
QUALITY - USGS CO-OP $58,000 $20,000 $38,000
WATER QUALITY TESTING $20,000 $20,000
TOTAL OUTSIDE SERVICES
EMPLOYED $584,600 $19,300 $24,650 $4,650 $536,000

39. OSSF License Operation &
Residential/Com & Permitting Maintenance
mercial Boatslips & Water Aquatic Plant (includes
Total Including Backlog Quality Management Admin)
OPERATING SUPPLIES & EXPENSE
OFFICE SUPPLIES & PRINT $12,000 $4,000 $2,000 $2,000 $4,000
OTHER OFFICE EXPENSE $2,000 $600 $400 $400 $600
TRAVEL $4,000 $1,400 $600 $600 $1,400
AUTOE & TRUCK
EXPENSE $15,000 $4,000 $2,000 $2,000 $7,000
POSTAGE $4,000 $2,000 $1,000 $500 $500
SMALL TOOLS PURCH $2,000 $2,000
TRAINING-EXTERNAL $5,000 $1,000 $2,000 $2,000
TRAINING - EXTERNAL-IT $5,000 $1,000 $2,000 $2,000
TRAINING-INTERNAL $1,200 $400 $200 $200 $400
MANAGERS EXPENSE $1,200 $400 $200 $200 $400
FUEL $43,000 $10,000 $6,000 $7,000 $20,000
MEMBERSHIPS & SUBS $2,400 $800 $400 $400 $800
SUPPLIES $20,000 $6,000 $2,000 $2,000 $10,000
UTILITIES $50,000 $10,000 $10,000 $10,000 $20,000
UTILITIES-LP GAS $1,500 $500 $200 $300 $500
LABORATORY EXPENSES $1,500 $1,500
SAFETY $18,100 $5,000 $2,000 $2,000 $9,100
HEALTH PROGRAM EXP $600 $200 $100 $100 $200
COMPUTER HARDWARE $20,000 $8,000 $2,000 $2,000 $8,000
SOFTWARE & SUPPORT $12,000 $4,500 $1,500 $1,500 $4,500
NETWORK COMM $9,000 $3,000 $1,000 $1,000 $4,000
LOCAL PHONE SERVICE $3,600 $2,000 $600 $1,000
LONG DISTANCE PHONE $600 $200 $100 $100 $200
WIRELESS SERVICES $6,000 $2,000 $1,000 $1,000 $2,000
INSURANCE PREMIUMS $14,600 $14,600
AUTO INSURANCE EXP $7,700 $2,000 $1,000 $1,000 $3,700
TOTAL OPERATING
SUPPLIES AND EXPENSE $262,000 $67,000 $37,800 $38,300 $118,900

40. Operation &
Residential/Comme OSSF License & Maintenance
rcial Boatslips Permitting & Aquatic Plant (includes
Total Including Backlog Water Quality Management Admin)
RENTALS
EQUIPMENT RENTALS $10,000 $10,000
OFFICE RENT $7,200 $3,000 $1,200 $1,000 $2,000
RENT-U.S. FOREST LANDS- $18,000 $18,000
TOTAL RENTALS $35,200 $3,000 $1,200 $1,000 $30,000
MAINTENANCE, REPAIRS & PARTS
EXPENSE
OFFICE FURN & EQUIP $6,000 $3,000 $1,000 $1,000 $1,000
INSTRUMENTATION $12,000 $12,000
OFFICE FURNITURE,
FIXTURES $2,000 $1,000 $300 $200 $500
BUILDINGS & GROUNDS $30,000 $10,000 $2,000 $3,000 $15,000
MACHINERY,TOOLS & EQUIP $10,000 $10,000
DAM MAINTENANCE $700,000 $700,000
CHEMICALS / AQUATIC
PLANT MANAGEMENT $250,000 $250,000
AQUATIC WEED CONT $0
STREETS & ROADS $5,000 $5,000
AYER ISLAND MAINT $15,000 $15,000
SECURITY REPAIRS $15,000 $15,000
TOTAL MAINT. REPAIRS &
PARTS EXPENSE $1,045,000 $14,000 $3,300 $254,200 $773,500
G & A EXPENSE ALLOCATED $460,695

41. Operation &
Residential/Comme OSSF License & Maintenance
rcial Boatslips Permitting & Aquatic Plant (includes
Total Including Backlog Water Quality Management Admin)
CAPITAL OUTLAY
MOWING EQUIPMENT $13,000 $13,000
ALERT SYSTEM HARDWARE
UPGRADE $50,000 $50,000
FUEL SHED $30,000 $30,000
SECURITY IMPROVE $25,000 $25,000
PICKUP $25,000 $25,000
DOCUMENT MANAGEMENT
SYSTEM INFRASTRUCTURE $12,000 $4,000 $2,000 $2,000 $4,000
ACCOUNTING SOFT W $10,000 $4,000 $1,500 $1,500 $3,000
TOTAL CAPITAL OUTLAY $165,000 $8,000 $3,500 $3,500 $150,000
TOTAL EXPENSES $379,364 $284,547 $522,033 $2,050,747

42.  Expenses
 Wages/Benefits = $ 702,544
 Outside Services = $ 48,600
 Operating Supplies and Expenses = $ 143,100
 Rentals = $ 5,200
 Maintenance, Repairs & Parts = $ 271,500
 Capital Outlay= $ 15,000
 Total = $1,185,944
 Revenue
 Residential = $ 340,851
 Commercial = $ 200,352
 Total = $ 541,103
 Deficit = $ 644,841

43.  Starting revenue (FY 2008 Residential) = $340,851
 Rate increase = $170,425
 695 docks x 824 sf x $ 0.188/sf = $107,664
 Subtotal $ 618,940
 Starting revenue (FY 2008 Commercial) = $200,352
 Rate increase = $100,176
 Additions of licensed dock area (Approx.) $125,000
 Subtotal $ 425,528
 Starting revenue (FY 2008 Irrigation) = $10,826
 Rate Increase = $ 5,413
 276 x $150 = $41,400
 Subtotal $ 57,639
 TOTAL $ 1,102,107
 Allowance for bad debt (assumed collection rate less than 90%
and limited lawn irrigation) $ 152,407
 Total FY 2012 (assumed 90% collection rate and limited lawn irrigation) $ 949,700

44. 18.9%
Increase
2004 thru
Oct. 2011
• Previous Rate Structure Increase – June 24, 2004

45. $1,000,000
$900,000
Permits, Licenses & Fees -
Aggressive
$800,000 Collection Residential
of Accounts
Permits, Licenses & Fees -
$700,000 in
Arrears, ID Commercial
of non-
$600,000 licensed Marine Sanitation
docks and
Inspections
$500,000 OSSF Licenses
$400,000
Invasive Species
$300,000 Management
Lawn Irrigation Fees
$200,000
Total
$100,000
$0
FY 2008 FY 2009 FY 2010 FY 2011

46.  Labor $ 424,153
 Professional Fees $ 68,600
 Purchased and Contracted Services $ 34,096
 Supplies, Materials & Utilities $ 180,493
 Rentals $ 40,800
 Maintenance, Repairs & Parts $ 113,650
 Employee Benefits $ 202,864
 General & Admin. Expenses $ 159,698
 Total Expenses $1,224,354
 Capital Improvements $ 8,333
 Total $1,232,687

47.  Permits, Licenses & Fees - Residential $ 518,700
 Permits, Licenses & Fees – Commercial $ 426,000
 Invasive Species Management $ 5,000
 City of Houston Share of Lake Conroe * $ 183,103
 Total $1,132,093
* COH share of Non-Operations and Maintenance costs
proposed by SJRA

48. Resolving Non-
compliance Issues
Resolving Accounts
in Arrears
Basic Core
Sources

49.  Continued management of and limits on non-
operations/maintenance costs
 FY 2008 (budgeted) Expenses = $1,185,944
 FY 2012 (budgeted) Expenses = $1,232,687

50.  SJRA has consistently & reliably operated & maintained Lake
Conroe Dam in a safe, appropriate, and professional manner .
 From 1973 thru 2010 COH water customers (residents) subsidized
services provided to Lake Conroe residents.
 The dock licensing program has transformed from an initial “honor
system” to a more resource intensive program, including
enforcement, due to lack of compliance.
 The cost of the program has increased due to these resource
requirements.
 SJRA effort to bring non-compliant residential and commercial
enterprises into compliance generated non-reoccuring revenue in
FY 2008 thru FY 2011.
 Without this non-reoccuring revenue, SJRA would have realized
net losses.
 SJRA Board delayed Rate Structure increase from 2008 until 2010.