02-18-2010 MinutesMINUTES OF THE
SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
SCHERTZ-SEGUIN LOCAL §
GOVERNMENT CORPORATION §
On this the 18th day of February, 2010, the Schertz-Seguin Local Government Corporation
(SSLGC) convened at 1:35 p.m. in the City of Seguin Council Chambers located at 210 E.
Gonzales, Seguin, Texas. The following members being present and in attendance:
__ Ken Greenwald
~ Robin Dwyer
Patricia Ramirez
Andrew Koenig
Jim Wolverton
Betty Ann Matthies
Hal Baldwin
President
Vice-President
Secretary
Treasurer
Director
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
Doug Faseler
Johnny Bierschwale
Susan Caddell
Georgia Hanks
Shawn Shimek
Patrick Lindner
Bill Klemt
John Winkler
Crockett Camp
Jack Fickessen
General Manager
City Manager of Seguin
Assistant City Manager of Schertz
Finance Director of Seguin
Administrative Assistant
Water System Superintendent
Legal COU11se1 (Davidson & Troilo)
Hydrologist Consultant
COriSUltant (Walker Partners)
Consultant/Project Manager
Legislative Consultant
The first order of business was the Calling of the Meeting to Order.
Vice-President Patricia Ramirez called the meeting to order at 1:35 p.m.
The second order of business was Public Comment.
No one addressed the Board during public comment.
The third order of business was Presentation to Sydney Bauer on Behalf of Board of
Directors and Staff for His Contribution to SSLGC.
General Manager Alan Cockerell recognized outgoing Board Member and President Syd Bauer
and his wife Dorothy.
On behalf of SSLGC's board of directors and the Cities of Schertz and Seguin, presentations
were made to Mr. Bauer for his service and contribution to SSLGC.
A Proclamation of Appreciation, an award detailing Mr. Bauer's years of service and a collection
of momentous items from Schertz were given to him from Mayor Baldwin, board members and
staff along with sincere thanks and expressions of appreciation for his contribution to the future
of Guadalupe County. Mr. Bauer has been involved with SSLGC since its inception in 1998 and
is now an honorary member of SSLGC's board of directors.
Mr. Bauer thanked board members and the Cities of Schertz and Seguin for the privilege of
being a part of a project which has touched the lives of Schertz and Seguin citizens.
Secretary Robin Dwyer moved to adopt the Proclamation honoring Syd Bauer. Director
Andrew Koenig seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
As part of the discussion on the motion, each board member individually thanked Mr. Bauer for
the time and effort he had provided them and the Corporation over the years.
Vice-President Ramirez adjourned General Session at 1:55 p. m. fog a brief recess and reopened
it at 2:10 p. m.
The fourth order of business was Election of Officers -Patricia Ramirez. Vice-President.
Nominations were requested for president.
Jim Wolverton made a motion to nominate Ken Greenwald for president. Robin Dwyer
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
Nominations were requested for vice-president.
Jim Wolverton made a motion to nominate Robin Dwyer for vice-president. Andrew
Koenig seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
Nominations were requested for secretary.
Jim Wolverton made a motion to nominate Patricia Ramirez for secretary. Robin Dwyer
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
Nominations were requested for treasurer.
Robin Dwyer made a motion to nominate Andrew Koenig for treasurer. Jim Wolverton
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
Elected SSLGC officers for February 2010 -February 2013 are as follows:
Ken Greenwald President
Robin Dwyer Vice-President
Patricia Ramirez Secretary
Andrew Koenig Treasurer
President Ken Greenwald presided over the remainder of the board meeting.
The fifth order of business was Annroval of the Minutes for the Board Meeting held on
January 21; 2010.
Treasurer Andrew Koenig made a motion to approve the January 21, 2010 minutes as
written. Vice-President Dwyer seconded the motion. Upon a vote being called, the motion
carried by unanimous decision.
The sixth order of business was Presentation of the General Manager's Report -Alan
Cockerell, General Manager.
General Manager Alan Cockerell's written report was included in the board agenda packets. He
highlighted the following items in his report:
• Water Production
Water production for the month of January was 60.5% of SSLGC's monthly allowable as
mandated by the Gonzales County Underground Water Conservation District
(GCUWCD). The seasonal trend is as expected for this time of year.
Region L
Mr. Cockerell referred to a map which was included in the agenda packets which showed
all recommended projects that are included in the Initially Prepared Plan (IPP) for Region
L. The IPP was approved at Region L's January 2010 meeting. The IPP can be viewed
at the Region L website: http://regionltexas.org/. It provides specific details of the
various plans. Mr. Cockerell called attention to the upper right hand corner of the map
which listed water management strategies requiring further study and fielding,
specifically Regional CarrizoBrackish Wilcox SSLGC Expansion. Mr. Cockerell asked
HDR to change the project to read Regional Carrizo Project in Wilson County for
SSLGC. This project is not in the IPP, but should be included in the future.
The Regional Planning Group has scheduled the following Public Hearings:
April 12 in Victoria
April 13 in San Antonio
April 15 in San Marcos
A comment period will commence after these hearings and the Plan should be approved
late in the fall of 2010. The approved Plan will be submitted to the state January 2011.
The State will compile plans during the remainder of 2011 and publish a State Water Plan
in 2012.
• GMA-13
A GMA-13 meeting is scheduled February 19, 2010, in Pleasanton. Discussions in
regard to setting DFC's will continue.
• Guadalupe County
Mr. Cockerell attended a meeting February 11, 2010. Normal business was conducted.
• GCUWCD
Mr. Cockerell attended the monthly meeting February 9, 2010. A second Public Hearing
on rule changes will be held February 18, 2010, at 5:30 p.m. in Gonzales. A comment
period will follow and rule changes may be approved in March. One significant change
may be an increase in the monthly pumping restriction from 125% to 150%.
The seventh order of business was Purchase of SSLGC Vehicle -Alan Cockerell, General
Manager.
A bid tabulation for a replacement vehicle for the general manager was provided to board
members. The City of Seguin recommended purchasing a 2010 Ford Explorer from Griffith
Ford for $21,430.78. A vehicle in the amount of $25,000 was included in SSLGC's current
approved budget. Mr. Cockerell requested approval to purchase the vehicle.
Director Wolverton made a motion to accept the bid for a vehicle from Griffith Ford in the
amount of $21,430.78. Secretary Ramirez seconded the motion. Upon a vote being called,
the motion carried by unanimous decision.
The eighth order of business was Presentation of Treasurer's Report -Susan Caddell,
Finance Director & Alan Cockerell, General Manager.
A copy of the Treasurer's report was included in the board agenda packets. The report was
prepared by Director of Finance Susan Caddell and reviewed by General Manager Alan
Cockerell. Mr. Cockerell recommended approval of the following report:
a. Financial Statements for the year ended December 31, 2009.
• Revenues, Expenses and Changes in Net Assets -Combined Statements
^ $1,480,028 (net income)
Includes water sales billed for the first debt service payment made February 1, 2010.
• Revenues, Expenses and Changes in Net Assets -Operating Fund
^ $2,815 (net income)
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Schertz and Seguin are very close in water usage.
• Construction Fund Balance Sheet -Cash on Hand
^ $2,914,854
$2,355,000 remains in outstanding purchase orders.
Revenues, Expenses and Changes in Net Assets -Interest & Sinking Fund
^ $1,296,689 (net income)
Includes I&S rates paid by participating entities for the first quarter, but does not
include bond payments. The first bond payment was made February 1, 2010, in the
amount of $2,124,742.
• Repair & Replacement Fund Balance Sheet -Cash Balance
^ $979,929
Bond covenants require the balance to be $500,000.
• Revenues, Expenses and Changes in Net Assets -Future Development Fund
^ $90,644 (net income)
• Revenues, Expenses and Changes in Net Assets -Impact Fund
^ $128,415 (net income)
The Impact Fund is available for new construction or expansion and in some cases
debt service.
• Revenues, Expenses and Changes in Net Assets -Operating Fund (comparative
statement)
^ -$76,707 (decrease in net income)
• Working Capital Trend Chart
^ 1,352,819 (increase in working capital)
Revenue was billed for the first bond payment, but payment did not occur until
February 1, 2010.
Director Wolverton requested that Mrs. Caddell separate Guadalupe and Gonzales water lease
information in future fmancial statements.
Mrs. Caddell changed page 2, paragraph 5, line 2 of her written fmancial statement from,
"Working capital has increased since September 30, 2008...." to "Working capital has increased
since September 30, 2009...."
Director Wolverton made a motion to approve SSLGC's financial statements for the
quarter ending December 31, 2009. Vice-President Dwyer seconded the motion. Upon a
vote being called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending December 31, 2009.
Ms. Caddell presented the Investment Report for October 1, 2009, through December 31, 2009.
Interest earnings for the quarter ending December 31, 2009, were $5,123.
Vice-President Dwyer made a motion to approve SSLGC's investment report for the
quarter ending December 31, 2009. Director Wolverton seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
c. Reimbursement to the City of Seguin in accordance with the Management Services
Agreement for the quarter ending December 31, 2009.
Ms. Caddell presented the expenditure information for the quarter October 1, 2009, through
December 31, 2009. The City of Seguin has requested reimbursement of $786,685 from SSLGC
for the first quarter of FY2009-2010. Ms. Caddell added that SSLGC was under budget for the
first quarter of FY2009-2010 by $3,313,139.
Vice-President Dwyer made a motion to authorize SSLGC to reimburse the City of Seguin
in the amount of $786,685 for the quarter ending December 31, 2009, in accordance with
the Management Services Agreement. Secretary Ramirez seconded the motion. Upon a
vote being called, the motion carried by unanimous decision.
Mrs. Caddell called attention to a construction schedule which was included in the board agenda
packets and stated that approximately $500,000 is available in the fund.
The ninth order of business was Water Level Measurements for Gonzales County -Bill
Klemt, Hydrologist Consultant.
Mr. Klemt's written report on water level measurements for Gonzales County was included in
the board agenda packets. He summarized his report as follows:
Carrizo water levels were measured in water-level observation wells which are located in the
vicinity of SSLGC's well field on January 4 and 5, 2010, by Mr. Klemt, General Manager
Cockerell and GCUWCD General Manager Greg Sengelmann. Mr. Klemt referred to several
figures of maps in his report which showed location of wells measured, Carrizo water-level
drawdowns for the period August-September/02 to January 2010, Carrizo water-level
drawdowns for the period August-September 2002 to September 2009 and altitude of Carrizo
water levels, January 2010.
The four Carrizo wells which are located within SSLGC's well field area, SSLGC (#18), Wilson
(#19), SSLGC (#22) and SSLGC (#23), had an average water-level recovery of about 16 ft for
the period September/09 to January/10. The average annual water-level decline for the period
August-September/02 to January 2010 was approximately 23 ft. The largest measured decline
(33.58 ft) was obtained from well #18. The other three wells had declines ranging from
approximately 18 to 21 ft.
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Water levels in the Carrizo (#18) and three Queen City water wells were measured in January
2010 as a part of the Carrizo water-level studies in Gonzales County. 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 (2002 - 2010) with SSLGC's average measured August-September/02 to January
/10 water-level drawdowns of approximately 23 feet. He reported that actual pumpage from the
well field is about 10 - 15 percent less than simulated pumpage which in theory would reduce
simulated drawdowns to about 39 - 40 feet and continues to indicate that the TWDB GAM is
over predicting water-level drawdowns in southwest Gonzales County.
Mr. Klemt reported that in his opinion, based on water levels measured in the Carrizo and Queen
City aquifers in southwestern Gonzales County since the year 2000, the aquifers continue to
perform as predicted as a result of pumpage from the SSLGC well field.
Mr. Klemt was asked to describe the process he used to measure a well. He reported that a steel
tape with chalk is dropped into the well. He knows approximately how far to extend the tape
into the well and does not weight it. When the tape is withdrawn the level of the well is easily
observed because of the chalk.
The tenth order of business was Legislative Update -Jack Fickessen, Consultant.
Mr. Fickessen reported that the Lieutenant Governor had not replaced the chairman of the Senate
Natural Resources Committee who plans to retire and most likely will not until after the primary
election which takes place March 2, 2010. The House of Representatives Natural Resources
Committee plans to hold a hearing of the groundwater conservation districts as part of the
interim charges in Austin on April 15 and Apri129, 2010. The agenda has not been set, but Mr.
Fickessen will advise General Manger Cockerell when he receives the information.
Speaker Strauss sent out a memorandum to create a House Select Committee on Special Purpose
Districts which may include, but not be limited to, hospitals, crime protection agencies,
emergency service, health service, water districts, and waste water districts. Special purpose
districts are defined as districts created for any special purpose and are sometimes set up to
benefit rural areas. Mr. Fickessen will provide more information as he receives it.
The House of Representatives Natural Resources Committee plans to hold a Public Hearing on
February 3, 2010, to discuss Interim Charge Number 2 in relation to the following:
o Effects of current and proposed federal initiatives that could impact the implementation
of the State Water Plan; and
o Policies and investments developed by other states dealing with water issues similar to
the State of Texas.
Regarding Agenda Item #11 and #12, Mr. Cockerell reported that due to scheduling conflicts
and illness the Planning Meeting scheduled for February 17, 2010, had been changed to March
9, 2010, in Schertz. It will now coincide with the March Executive Committee Meeting.
Alternatives for both Guadalupe and Gonzales Counties along with evaluations of cost scenarios
for all options will be discussed.
The eleventh order of business was Guadalupe County Expansion Protect -Alan
Cockerell, General Manager.
Mr. Cockerell stated that final design and construction plans for this project should be completed
by the end of March 2010 and submitted to TCEQ for design review.
The twelfth order of business was Gonzales County Expansion Protect -Alan Cockerell,
General Manager.
President Greenwald deferred agenda item twelve to Executive Session.
The thirteenth order of business was Approve Settlement Agreement with Water
Protection Association and Dorothy Ploeger, and Authorize Settlement with Gonzales
Ranch -Patrick Lindner, General Counsel.
President Greenwald deferred agenda item thirteen to Executive Session.
President Greenwald closed General Session at 2: 35 p. m.
The fourteenth 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 Greenwald opened Executive Session at 2: 40 p. m.
Executive Session was held from 2: 40 p. m. to 3: 27 p. m.
The fifteenth order of business was to Consider and Take Action as a result of Agenda Item
Fourteen.
President Greenwald reopened General Session at 3: 27 p. m.
As a result of Executive Session Counsel Patrick Lindner recommended the following:
o Motion to approve the Settlement Agreement with the Water Protection Association and
Dorothy Ploeger as written at the mediation which occurred on February 3, 2010.
Vice-President Dwyer made a motion to approve the Settlement Agreement reached at the
mediation with the Water Protection Association and Dorothy Ploeger as drafted on
February 3, 2010. Director Wolverton seconded the motion. Upon a vote being called the
motion carried by unanimous decision.
o Motion to authorize the Executive Committee to consider and act upon any settlement
offers made by Mr. Steelhammer of Gonzales Ranch before the next board meeting.
Secretary Ramirez made a motion to authorize the Executive Committee to consider and
act upon settlement offers which may be made by Mr. Steelhammer of Gonzales Ranch.
Treasurer Koenig seconded the motion. Upon a vote being called the motion carried by
majority vote. Director Wolverton voted against the motion.
The sixteenth order of business was Consideration and/or Action on questions and uossible
items to be placed on the next agenda.
Mr. Cockerell handed out a letter from the Mayor of Smiley thanking the Corporation for its
participation in the Nixon-Smiley Youth Show.
No additional discussion was held.
The next regular board meeting was scheduled March 18, 2010, at 1:30 p.rn. in Schertz, Texas.
The seventeenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:35 p.m.
MINUTES APPROVED THIS /~~ DAY OF ~~~~C~1~~ v , 2010.
Patricia Ramirez
Secretary