08-19-2010 MinutesMINUTES OF THE
SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
SCHERTZ-SEGUIN LOCAL §
GOVERNMENT CORPORATION §
On this the 19~' day of August, 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
Jim Wolverton
Betty Ann Matthies
Hal Baldwin
and the following director being absent:
President
Vice-President
Secretary
Director
Ex-Officio
Ex-Officio
Andrew Koenig Treasurer
constituting a majority of the persons appointed to the Board and a quorum for the transaction of
business, and notice bf such meeting having been duly given in accordance with the provisions
of Texas law. Also in attendance were:
Alan Cockerell
Doug Faseler
Don Taylor
Johnny Bierschwale
Susan Caddell
Shawn Shimek
Emery Gallagher
Sam Willoughby
Patrick Lindner
Bill Klemt
John Winkler
Crockett Camp
Georgia Hanks
General Manager
City Manager of Seguin.
City Manager of Schertz
Assistant City Manager of Schertz
Finance Director of Seguin
Water System Superintendent
Seguin Water Utility Manager,
__ ___
Schertz Public Works Director
Legal COUSlsel (Davidson & Troilo)
Hydrologist Consultant
COriSUltant (Walker Partners)
Consultant/Project Manager
Administrative Assistant
1
The first order of business was the Calling of the Meeting to Order.
President Ken Greenwald 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 Annroval of the Minutes for the. Board Meeting held on
July 15, 2010.
Secretary Patricia Ramirez made a motion to approve the July 15, 2010 minutes as written.
Director Jim Wolverton seconded the motion. Upon a vote being called, the motion carried
by unanimous decision.
The fourth 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
added the following items to his written report:
• Water Production
Seasonal pumping and monthly water sales charts were included in the agenda packets.
Due to recent rainfall, water production and sales were lower than historical amounts for
the month of July at 66.5% of Gonzales County Underground Water Conservation
District's (GCUWCD) monthly allowable.
• Guadalupe County Groundwater Conservation District (GCGCD)
General Manager Cockerell attended the monthly meeting on August 12, 2010. He
reported that after a long Executive Session, the GCGCD Board did not take action on the
proposed rule changes. They plan to schedule another Public Hearing in the near future
to again address the rule changes before taking any action.
Mr. Cockerell called attention to a diagram of the Springs Hill WSC (SHWSC) system as
it relates to the Canyon Regional Water Association (CRWA) well field. The diagram
which was handed out by SHWSC at GCGCD's August 12th board meeting was included
in the board agenda packets.. Water from CRWA's Wells Ranch project is transported
through SHWSC's system to the Leissner School Road booster pump station. Due to the
_ _ _ limitation of SHWSC's distribution system, a maximum of 2_.5 MGD can be_produced by
CRWA and SHWSC, collectively. SHWSC is using 1.0 MGD, therefore, only 1.5 MGD
is transported to East Central WSC. The Wells Ranch treatment plant has a capacity of
6.9 MGD and its production is greatly. restricted by the limited capacity of SHWSC's
distribution system.
• Region L
Mr. Cockerell attended the August 5, 2010 meeting in San Antonio. The Board approved
the 2011 regional plan which will be submitted to the Texas Water Development Board.
An industry representative position has become available for the Region L Planning
Group and Mr. Cockerell said that recommendations would be appreciated. The deadline
for submitting nominations is September 24, 2010.
• Operations Report
Well #1 was placed back in service on August 18th. Operators found leaking around the
well head and the pump installer has been asked back to inspect it. The well is
operational and all wells are in service.
Bryan Construction completed the repair on the retention pond. Another leak was
discovered on the caustic line. Operators installed a temporary by-pass line until a
permanent repair can be completed by the contractor. The contractor is waiting for
components from Hanson Pipe which should arrive later this month.
The fifth order of business was Armstrong, Vaughan & Associates, P.C., Audit
Engagement Authorization -Alan Cockerell, General Manager, and Susan Caddell,
Director of Finance.
SSLGC has contracted with Armstrong, Vaughan & Associates for its annual audit. This is the
third of a three-year contract. Mr. Cockerell asked for Board approval to sign the engagement
letter which was included in the board agenda packets.
Director Wolverton made a motion to authorize General Manager Cockerell to sign the
audit engagement letter between SSLGC and Armstrong, Vaughan & Associates. Vice-
President Dwyer seconded the motion. Upon a vote being called, the motion passed by
unanimous decision.
The sixth 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 nine months ended June 30, 2010.
• Revenues, Expenses and Changes in Net Assets -Combined Statements
^ $1,513,504 (net income)
• Revenues, Expenses and Changes in Net Assets -Operating Fund
^ $44,419 (net income)
Schertz and Seguin are very close in water usage.
• Construction Fund Balance Sheet -Cash on Hand
^ $2,454,531
$2,000,000 remains in outstanding purchase orders.
Revenues, Expenses and Changes in Net Assets -Interest & Sinking Fund
^ $1,408,205 (net income)
Includes I&S rates paid by participating entities for the first through third quarters.
Also includes first bond payment made February 1St in the amount of $2,124,742.
The next bond payment was made August 1St in the amount of $1,265,854.
• Repair & Replacement Fund Balance Sheet -Cash Balance
^ $1,109,091
Bond covenants require the balance to be $500,000.
• Future Development Fund Balance Sheet -Cash Balance
^ $990,654
• Impact Fund Balance Sheet -Cash Balance
^ $1,141,822
Of this amount, $1,000,000 was applied towards the projects that were included
in the 2010 Utility Revenue Bonds.
• Revenues, Expenses .and Changes in Net Assets -Operating Fund (comparative
statement)
^ $44,419 (net income)
• Working Capital Trend Chart
^ Working capital has increased since March 31, 2010, by
$633,037
This is a trend that occurs the quarter before the next bond payment.
Vice-President Dwyer made a motion to approve SSLGC's financial statements for the
quarter ending June 30, 2010. Secretary Ramirez seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending June 30, 2010.
Ms. Caddell presented the Investment Report for April 1, 2010, through June 30, 2010. Interest
earnings for the quarter ending June 30, 2010, were $4,212.
Vice-President Dwyer made a motion to approve SSLGC's investment report for the
quarter ending June 30, 2010. Secretary Ramirez 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 June 30, 2010.
Ms. Caddell presented the expenditure information for the third quarter April 1, 2010, through
June 30, 2010. The City of Seguin has requested reimbursement of $829,915 from SSLGC for
the third quarter of FY2009-2010. Ms. Caddell added that SSLGC was under budget for the
third quarter of FY2009-2010 by $1,734,323.
Director Wolverton made a motion to authorize SSLGC to reimburse the City of Seguin in
the amount of $829,915 for the quarter ending June 30; 2010, in accordance with the
Management Services Agreement. Vice-President Dwyer seconded the motion. Upon a
vote being called, the motion carried by unanimous decision.
Before proceeding to Agenda Item #7, Mr. Cockerell called attention to a spreadsheet showing
the status of the construction fund. It was included in the agenda packets.
The seventh order of business was Legislative Update -Alan Cockerell, General Manager.
In Mr. Fickessen's absence, Mr. Cockerell reported that Mr. Fickessen was presently following
up on a Bureau of Economic Geology study regarding the Carrizo Aquifer. The group had a
public meeting earlier in the year and had requested stakeholder input from industry
representatives. SSLGC had provided its input. This group is charged with providing a report
regarding the southern portion of the Carrizo to the legislature. Mr. Fickessen will provide more
information as time gets closer to the next legislative session.
The eighth order of business was Oil and Gas Leasing Program Implementation -Alan
Cockerell, General Manager.
Mr. Cockerell reported that he had engaged Attorney Bill Knobles of Seguin to represent SSLGC
with oil and gas leasing. Mr. Knobles is in the process of working with several entities that may
have an interest in SSLGC's oil and gas mineral rights and will provide the- Corporation with any
offers he receives.
The ninth order of business was Guadalupe County Expansion Proiect -Alan Cockerell,
General Manager.
President Greenwald deferred agenda item nine to Executive Session.
The tenth order of business was Gonzales County Expansion Proiect -Alan Cockerell,
General Manager.
Mr. Cockerell reported that the bid process for the following projects will commence the month
of August:
o Construction of roads and collection lines
o Well pumps and equipment including the placement of existing stainless steel pumps that
were received earlier this year
o Cathodic protection survey of existing pipeline
Bids will be requested for storage tanks and SCADA improvements in early fall.
President Greenwald deferred additional discussion regarding .the Gonzales County
Expansion project to Executive Session.
President Greenwald closed General Session at 2: 00 p. m.
The eleventh order of business was Executive Session called under Chanter 551
Government Code, Section 551.071, to seek the Advice of its Attorney on Leal Matters
and Section 551.072, for Deliberations Re~ardin~ Real Estate.
President Greenwald opened Executive Session at 2:10 p. m.
Executive Session was held from 2:10 p. m. to 2:32 p. m.
The twelfth order of business was to Consider and Take Action as a result of Agenda Item
Eleven.
President Greenwald reopened General Session at 2:32 p. m.
No action was taken as a result of Executive Session.
The thirteenth order of business was Consideration and/or Action on Questions and
Possible Items to be placed on the Next Agenda.
No additional discussion was held.
The next regular board meeting was scheduled September 16, 2010, at 1:30 p.m. in Schertz,
Texas.
The fourteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 2:35 p.m.
MINUTES APPROVED THIS ~ DAY OF , 2010.
Patricia Ramirez
Secretary