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SSLGC 07-16-2009MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS § COUNTY OF GUADALUPE § SCHERTZ-SEGUIN LOCAL § GOVERNMENT CORPORATION § On this the 16th day of July 2009, the Schertz-Seguin Local Government Corporation (SSLGC) convened at 1:37 p.m. in the City of Schertz Council Chambers located at 1400 Schertz Parkway, Building #4, Schertz, Texas. The following directors being present and in attendance: Sydney Bauer Patricia Ramirez Robin Dwyer Jim Wolverton Hal Baldwin Betty Ann Matthies President Vice-President Secretary Treasurer Ex-Officio Ex-Officio constituting a majority of the persons appointed to the Board and a quorum for the transaction of business, and notice of such meeting having been duly given in accordance with the provisions of Texas law. Also in attendance were: Alan Cockerell Douglas Faseler Don Taylor John Schraub Georgia Hanks Sam Willoughby Larry Dublin Bill Klemt John Winkler Patrick Lindner Jack Fickessen General Manager Seguin City Manager Schertz City Manager Seguin Water Utility Manager Administrative Assistant Schertz Public Works Director Schertz City Engineer Hydrologist Consultant ConSUltant (Walker Partners) COU11sel (Davidson & Troilo) Legislative Consultant The first order of business was the calling of the meeting to order. President Sydney Bauer called the meeting to order at 1:37 p.m. The second order of business was public comment. Mayor Betty Ann Matthies announced that Mr. Andrew Koenig has been selected by the City of Seguin to replace Director Terry Wells. Mr. Wells had recently resigned due to his move to Austin. The Seguin City Council is expected to approve Mr. Koenig's appointment to SSLGC's board of directors at the July 21, 2009 council meeting. Mr. Koenig is a graduate of Texas Lutheran College and is aself-employed financial advisor with Raymond James Financial Services, Incorporated. The third order of business was approval of the minutes for the board meeting held on June 18, 2009. Treasurer Jim Wolverton made a motion to approve the June 18, 2009 minutes as written. Vice-President Patricia Ramirez seconded the motion. Upon a vote being called, the motion carried by unanimous decision of those members present. SecNetary Robin Dwyer arNived at 1:40 p.m. The fourth order of business was presentation of the General Manager's report - Alan Cockerell, General Manager. General Manager Cockerell's written report was included in the board agenda packets. He added the following items to his written report: o Water Production. Water pumpage for the month of June 2009 was 99.7% of SSLGC's permitted amount. The Corporation is allowed to pump up to 125% of its monthly allotment. One of the criteria for entering into Stage I of SSLGC's Drought Contingency Plan is for its water pumpage to approach 100% of the permitted amount. Mr. Cockerell stated that although the Corporation's pumpage is near 100% of its permitted amount, at this time he does not recommend going into Stage I of the Contingency Plan. Water usage for the month of June is consistent with previous years in June. The Corporation is apparently benefiting from media reports of water conservation restrictions from surrounding areas like San Antonio. Citizens of Schertz appear to be following San Antonio's Stage I guidelines and watering their lawns at the appropriate times during the week and not watering on weekends. o Gonzales County Underground Water Conservation District (GCUWCD). General Manager Alan Cockerell attended the GCUWCD meeting held July 14, 2009. He highlighted the following agenda items: Agenda Item 4 -Discuss potential amendments and additions to District rules. District Manager Greg Sengelmann is in the process of collecting data to possibly make changes to District rules, e.g., clarification of mitigation and modeling requirements, transportation permits and how they relate to production permits, production restrictions based on drawdown levels, measurements, permit notices and hearing procedures. He plans to add rules for historic usage, an outline of requirements for monitoring wells, rules for brackish water permits and rules for water well completion. Mr. Cockerell is currently working with SSLGC counsel and consultants to prepare the Corporation's recommendations for rule changes to the District. City Manager Don Taylor directed Mr. Cockerell to have SSLGC's executive committee review the Corporation's recommendations before submitting them to GCUWCD. Agenda Item 5 -Discuss Gonzales County Groundwater Projects Workgroup for Region L. Mr. Cockerell referred to a handout of the workgroup agenda which was included in the board agenda packets. He has been asked to attend this workshop which will be held September 15, 2009, in San Antonio to discuss issues and provide input to GCUWCD. GCUWCD plans to request that the workshop be moved to Gonzales County. Mr. a Cockerell noted that the agenda uses acronyms which refer to Guadalupe County in error. The workshop will include only Gonzales County. Agenda Item 11-Public Comment. Mr. Cockerell referred to a letter to the editor of The Gonzales Inquirer from the City of Nixon Mayor Don Chessher which was included in the board agenda packets. The letter was titled "Secret Meetings to Give Away Our Water." It criticized elected officials of GCUWCD for having secret meetings and not representing voters' interests. Board members of the GCUWCD were extremely unhappy with the remarks made in the letter. They clarified their position to Mayor Chessher and denied having secret meetings. Mayor Chessher agreed to publish a retraction in the Gonzales Inquirer and Cow Country Courier. o Other Issues. Mr. Sengelmann also presented water level measurement information at GCUWCD's board meeting. Mr. Klemt will discuss the data later at the meeting in progress during discussion of Agenda Item #5. Mr. Cockerell reported a leak on the water line going to the City of Schertz which is between the Booster Pump Station and I-10 at the intersection of Longhorn and Gold Dust. The drain valve appears to be leaking. Operators are working with Holloman representatives. They have isolated the area of the leak and are in the process of draining the line in order to make repairs. The fifth order of business was Water Level Measurements -Bill HIemt, Hydrologist Consultant. Mr. Cockerell handed out water level measurement data which was provided by District Manager Greg Sengelmann at GCUWCD's board meeting July 14, 2009. He remarked that the data demonstrates that the information the Underground District has collected is consistent with Mr. Klemt's information. Mr. Klemt directed attention to maps provided by Mr. Sengelmann which showed regional water levels for Gonzales County. Many of the water levels measured by SSLGC in the western region are included in this data. Water levels were measured in the western region June 1-2, 2009, and in the eastern region June 29 and 30, 2009. Mr. Klemt stated that the data provided a good regional look at Gonzales County, portions of Caldwell County and the water level surface of the Carrizo. Mr. Cockerell stated that some people believe that the Carrizo, Wilcox and Queen City aquifers are connected. He added that although there may be some leakage, the data reflects that the Corporation's pumping in the Carrizo is not affecting the Queen City and Wilcox aquifers from its well field. Mr. Klemt reported that Mr. Sengelmann had taken over the Texas Water Development Board monitoring program. The data he has provided shows the difference between a sand aquifer like the Carrizo and a karst aquifer like the Edwards. The Carrizo has a vast amount of water storage because of its sandy composition. Dry or wet weather does not affect the Carrizo as it does the Edwards. Mr. Klemt's written report for Gonzales County was included in the board agenda packets. He summarized his report as follows: 3 Carrizo water levels were measured in water-level observation wells which are located in the vicinity of SSLGC's well field on June 2 and 3, 2009, by Mr. Klemt, General Manager Cockerell and GCUWCD General Manager Greg Sengelmann. Mr. Klemt referred to several maps in his report which showed location of wells measured, altitude of Carrizo water levels and Carrizo water level drawdowns for the period Aug-Sept/02 to June /09. The four Carrizo wells which are located within SSLGC's well field area have an average water-level decline of about 29 ft for this period. The average annual water-level decline for the same period is approximately 4.3 ft per year. For the period Aug-Sept/02 to September/08, the average water-level decline was 31 ft and 5.2 ft, respectively. The June 2009 water-level rebounds are due to less water demands on the aquifer. Water levels in the Klecka Carrizo and three Queen City water wells were measured in June 2009. These wells are located within SSLGC's well field and are close together. The table Mr. Klemt provided indicates that pumpage from SSLGC's Carrizo well field has little or no effect on water levels in the Queen City Aquifer. Mr. Klemt compared HDR's 2005 GAM simulated water-level drawdowns which should be about 45 feet at this time with SSLGC's average measured Aug-Sept/02 to June 2009 water-level drawdowns of approximately 29 feet. He reported that actual purnpage from the well field is about 25 percent less than simulated pumpage which in theory would reduce simulated drawdowns to a little over 30 feet and indicates simulated and measured water-level drawdowns are in agreement. Mr. Klemt reported that in his opinion the aquifers continue to perform as predicted as a result of pumpage from the SSLGC well field. The sixth order of business was the Fly Estate Grazing Lease -Alan Cockerell, General Manager. SSLGC owns one-half interest in this undivided property which consists of 180 acres. Mr. Michael St. John who owns the other half has requested to lease the Corporation's portion of the property for grazing at $20 an acre. He asked for several changes to the lease which included: a, 0 7 year lease instead of a 5 year o Remove SSLGC's right to permit farming, hunting or fishing o Remove SSLGC's right to cancel lease at any time with 30 days notice Mr. Cockerell reported that Counsel Patrick Lindner had reviewed the contract and found no issues with it. He requested the Board's approval of a seven year lease for the Corporation's portion of the property with Mr. St. John at $20 per acre. During discussion several board members voiced concern about the change requested regarding SSLGC's right to permit farming, hunting or fishing and Counsel Lindner agreed to review the contract again. Secretary Robin Dwyer made a motion to approve the grazing lease with Mr. St. John subject to the Corporation not waiving its right to participate in hunting or fishing lease issues. Treasurer Wolverton seconded the motion. Upon a vote being called, the motion carried by unanimous decision. 4 The seventh order of business was legislative update -Jack Fickessen, Consultant. On General Counsel Patrick Lindner's recommendation, President Bauer deferred Agenda Item #7 to Executive Session. The eighth order of business was Guadalupe County expansion project -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #8 to Executive Session. The ninth order of business was Gonzales County expansion project -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #9 to Executive Session. President Bauer closed General Session at 2: 30 p. m. The tenth order of business was Executive Session called under Chapter 551 Government Code, Subsection 551.071, to seek the advice of its attorney on legal matters relating to the Board of Director's rights and liabilities under certain contracts, Section 551.072, to deliberate the purchase of and/or sale of certain real estate and Section 551.074, for deliberations regarding a specific officer or employee. President Bauer opened Executive Session at 2:42 p. m. Executive Session was held from 2:42 p. m. to 3:23 p. m. The eleventh order of business was to consider and take action as a result of Agenda Item #10. President Bauer opened General Session at 3:23 p. m. The twelfth order of business was consideration and/or action on questions and possible items to be placed on the next agenda. Mr. Cockerell provided follow-up information to the Corporation's approved FY2009-2010 budget. He referred to a handout of the Corporation's projected revenues and expenses. It showed revenues generated from water sales and the accounts the monies are attributed to, and operating and maintenance expenditures which were taken from the FY2009-2010 operating budget. The summary illustrated that based on projected revenues and expenses for the year the Corporation would have $1,165,814 in net income at the end of the year. Additional income was derived from monies which are included in the budget for the Repair/Replacement and Future Development funds of which no expenses are presently taken out. Also, grazing and rental income was not considered when the water rates were developed. No additional discussion was held. The thirteenth order of business was adjournment. President Bauer declared the meeting adjourned at 3:27 p.m. The next regular meeting was scheduled August 20, 2009, in Seguin. MINUTES APPROVED THIS °~~~` t DAY OF ~ , 2009. Robin'Dv~ Secretary