02-10-2011 SSLGCMINUTES OF THE
SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
SCHERTZ/SEGUIN LOCAL §
GOVERNMENT CORPORATION §
On this the 10th day of February, 2011, the Schertz/Seguin Local Government Corporation
(SSLGC) convened at 1:38 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
Jim Wolverton
Andrew Koenig
Kerry Koehler
Betty Ann Matthies
President
Vice-President
Secretary
Treasurer
Director
Ex-Officio
and the following director being absent:
Hal Baldwin 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
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 COU11sel (Davidson & Troilo)
Hydrologist Consultant
Consultant (Walker Partners)
Consultant/Project Manager
Administrative Assistant
The first order of business was the Calling of the Meeting to Order.
President Ken Greenwald called the meeting to order at 1:38 p.m.
The second order of business was Public Comment.
Mayor Betty Ann Matthies introduced SSLGC's newest board member, Mr. Kerry Koehler. He
was selected by the Seguin City Council to replace SSLGC Board Director and Secretary Patricia
Ramirez. Ms. Ramirez had recently resigned due to her move out of the Schertz city limits.
Seguin's City Council unanimously approved Mr. Koehler's appointment at. their January 18,
2011 City Council Meeting. Mr. Koeher is active in several civic organizations in Seguin and is
the owner of Westerholm-Koehler Insurance Agency.
The third order of business was Election of Officers -Ken Greenwald, Board President.
General Counsel Patrick Lindner advised board members they could nominate and elect a
secretary to fill the vacant position or at their discretion nominate and elect a whole new slate of
officers.
Vice-President Robin Dwyer made a motion to fill the vacant position of secretary only.
Director Jim Wolverton seconded the motion. Upon a vote being called, the motion carried
by unanimous decision.
Treasurer Andrew Koenig made a motion to nominate Jim Wolverton as secretary of
SSLGC's board of directors. Vice-President Dwyer seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
SSLGC's slate of officers is as follows: (the only change being the position of secretary)
President -
Vice-President-
Secretary -
Treasurer -
Ken Greenwald
Robin Dwyer
Jim Wolverton
Andrew Koenig
The fourth order of business was Oil ~i Gas Leasing Program Implementation -Attorney
Bill Knobles.
At the advice of General Counsel Patrick Lindner, President Greenwald deferred Agenda Item #4
to Executive Session. Board members would proceed with Agenda Item #5 through Item #13
and return to Agenda Item #4 after executive session.
The fifth order of business was Anuroval of the Minutes for the Board Meeting held on
January 13, 2011.
Secretary Wolverton made a motion to approve the January 13, 2011 minutes as written.
Treasurer Koenig 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
added the following items to his written report:
• Mr. Cockerell announced that SSLGC Administrative Assistant Georgia Hanks had
submitted her resignation and her last day would be March 4, 2011. He added that the
process of interviewing for the position had begun and hopefully, the position would be
filled by March 4th. If not, Ms. Hanks would stay long enough to ensure a smooth
transition for a new employee.
• Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of January 2011 was at 53.6% of Gonzales
County Underground Water Conservation District's (GCUWCD) monthly allowable.
Mr. Cockerell noted that water pumpage for the City of Schertz was abnormally low.
Schertz Public Works Director Sam Willoughby has been notified. He is in the process
of determining whether or not water meters are performing accurately. If necessary,
adjustments will be made on the City of Schertz February water statement.
• GCUWCD
General Manager Cockerell attended the monthly meeting on February 8, 2010. A copy
of the agenda was handed out to board members. Mr. Cockerell added the following
comments regarding the agenda items to his written report:
o Agenda Item #7. GCUWCD Director Link Benson requested an extension to
complete installation of his irrigation well and was granted a 120 day extension.
o Agenda Item #8. The City of Smiley requested to re-equip its well #3 from 200
gpm to 400 gpm and the request was approved.
o GCUWCD has received contested case hearings for the following outstanding
permit applications: 19 for Hays Caldwell, 11 for Canyon Regional Water
Authority (CRWA) and 37 for Texas Water Association. Presently, contested
case hearings have not been ordered and GCUWCD is considering a workshop in
order for each of the three producers to present an overview of its project. The
workshop would provide GCUWCD directors and the public an opportunity to
better understand each project. Notifications will be sent to all who requested
contested case hearings so that they may attend the workshop.
o GCUWCD approved five companies to work on wells for the Western Mitigation
Fund. The companies will charge a standard rate authorized by GCUWCD. A
part-time manager for the Western Mitigation Fund should be selected within the
next few months.
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® Guadalupe County Groundwater Conservation District (GCGCD)
In the future, GCGCD plans to hold quarterly meetings. The next scheduled meeting is
March 10, 2011. A copy of the schedule was included in the board agenda packets.
Mr. Cockerell added that CRWA had submitted a petition to appeal approval of "Desired
Future Conditions" adopted by GMA-13.
® Region L
A copy of Region L's February 3, 2011 agenda was included in the board agenda
packets. Mr. Cockerell added the following:
o Previous officers were re-elected.
o Three vacant positions were filled. GCUWCD General Manager Greg
Sengelmann and EAA General Manager Carl Dreher were appointed for the water
district positions and Hays County Commissioner Will Conley was appointed to
the county position. Thirteen positions will be open later in the year and
solicitation for these positions will begin in May.
o Executive director Kevin Ward of the Texas Water Development Board has
resigned and an interim executive director has been appointed. Managed
Available Groundwater statistics (MAG's) will be available later in the year.
Total pumping amounts, including exempt amounts, will be provided to each
underground water district. A public meeting will be scheduled in conjunction
with the May St" meeting to solicit input for the next regional planning cycle.
SSLGC's Guadalupe County project is included in the regional plan, but the
possibility of its Wilson County project is not. SSLGC plans to work and develop
more of the Wilson County project and include it in the next planning cycle.
Discussion was held at the meeting regarding proposed legislation regarding
groundwater. Senator Frazier's bill pertaining to water rights and how they are
associated with property rights has created much debate. The EAA has its own
legislation, but utilizes legislation from Chapter 36 of the Water Development
Code. The organization plans to move legislation from Chapter 36 to an EAA
bill.
The seventh order of business was Banking Services Contract -Susan Caddell, Finance
Director and Alan Cockerell, General Manager.
Ms: Caddell reported that she had submitted "request for proposals" (RFP's) for a banking
services contract to various banking organizations within the city for the City of Seguin, Seguin
Economic Development Corporation and SSLGC as required every five years by the Texas
Local Government Code, Section 105.107. Three responses were received, but two actually
responded to the RFP, American Bank of Texas; N.A. and Wells Fargo Bank and Trust.' After
presentations were made by American Bank of Texas and Wells Fargo Bank and Trust, a
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committee comprised of the assistant city manager, director of finance, assistant director of
finance, bookkeeper, director of economic development and general manager of SSLGC,
selected Wells Fargo for the banking services contract. An analysis of the banking services
contract for SSLGC was included in the board agenda packets. It included a comparison of the
two banks and their respective services. Mrs. Caddell and staff requested approval of the
banking services contract with Wells Fargo Bank and Trust.
Secretary Wolverton made a motion to accept the recommendation of Mrs. Caddell and
staff to proceed with a banking services contract with Well Fargo Bank and Trust.
Treasurer Koenig seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The eighth 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 5 and 6, 2011, by Mr. Klemt, General Manager
Cockerell and GCUWCD General Manager Greg Sengelmann. Mr. Klemt referred to several
figures of maps in his report which show location of wells measured (Figure 1), Canizo water-
level drawdowns for the period August-September/02 to January 2011 (Figure 2), and altitude of
Carrizo water levels, January 2011 (Figure 3).
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 annual water-level decline for the period
August-September/02 to January 2011 of approximately 22 ft. The largest measured decline
(32.0 ft) was obtained from well #18. The other three wells had declines ranging from
approximately 17 to 21 ft. With regard to the above four wells, for the period January 2010 to
January 2011, the average water-level rise was approximately 0.4 ft. The average water level
decline of 45 wells measured during January 2010 and January 2011 was approximately 0.3 _ft.
Most of these are artesian wells. Wells (#'s 1, 8a and 13) which are in the water-table (outcrop)
portion of the aquifer indicate the average water level decline is approximately 0.8 ft. during the
period January 2010 to January 2011. There appears to be very little change of water levels in
the vicinity of the SSLGC well field and in southwest Gonzales County where the aquifer is
under artesian conditions for the period January 2010 to January 2011. Water levels are
declining modestly in the outcrop in order to support Carrizo artesian withdrawals in the down-
dip areas.
Mr. Klemt noted that the average water level rise for Queen City wells (#'s 18c, l8e and 23e) in
.the vicinity of SSLGC's well field for the period January 2010 to January 2011 is about 0.2 ft.
As of January 2011, water levels in the Carrizo were approximately 20 feet below that of the
Queen City in the vicinity of the SSLGC well field. Prior to Aug-Sept/02, water. levels in the
s
Carrizo were above those of the Queen City. Water levels in the Sparta well (15h) indicate a
water level rise of 0.6 ft. for the one year period.
Mr. Klemt reported that HDR's 2005 GAM and SCCS study and the Texas Water Development
Board's Carrizo GAM studies are model studies of the Carrizo in the SSLGC area of interest.
These studies. use average annual estimates of pumpage and recharge in order to predict annual
water level draw downs. With respect to modeling and measured water-level data, there is some
agreement as to declining water levels due to pumpage. However, with regard to leakage,
measured water levels do not support the leakage assumptions which are built into both the
GAM and SCCS models.
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.
The ninth order of business was Legislative Update -Jack Fickessen; Legislative
Consultant.
Mr. Cockerell stated that a list of Texas Senate Committees for the 82"d Legislature had been
included in the board agenda packets. A list of Natural Resources Committee appointments was
handed out to board members.
Mr. Fickessen provided a brief summary of events currently taking place in Austin which
included discussions of the budget deficit and redistricting.
The tenth order of business was Gonzales County Lx~ansion Proiect -Alan Cockerell,
General 1Vlanager.
Mr. Cockerell requested approval of two change orders which were submitted by Harris Road
Company. He explained that change order #1 is due to a change in route of the access road to
the treatment plant. It involves timing and no cost is involved. Change order #2 is for
improvements to CR114 and clearing of the surge tank location with an increase in costs of
$145,423.99.
Secretary Wolverton made a motion to approve Harris Road Company's change order #1.
Treasurer Koenig seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
Vice-President Dwyer made a motion to approve Harris Road Company's change order #2
with an increase in costs of $145,423.99. Secretary Wolverton seconded the motion. Upon
a vote being called, the motion carried by unanimous decision.
Mr. Cockerell continued with an updated status report on the Gonzales County expansion
project:
o The pumping tests on well #10 are complete. Three wells are drilled and pumping tests
complete. _ Test results on all three wells are good.
o Drilling is complete on well #11. After a log was performed at what was believed to be a
sufficient depth, a decision was made to drill deeper to get past a Carrizo sand package
and a uranium layer. Another log was performed the morning of the meeting in progress
and results were good.
o Road and pipeline construction is progressing as expected.
The eleventh order of business was Formation of Cibolo Valley Local Government
Corporation -Crockett Camp, Consultant/Proiect Manager.
In Mr. Camp's absence, General Manager Cockerell provided board members with a brief status
report on the Cibolo Valley Local Government Corporation (CVLGC). A meeting was held
February 8, 2011. Five cities are committed to the project: Schertz, Seguin, Cibolo, Converse
and Selma. Schertz, Cibolo and Converse have selected directors for the new corporation.
Seguin and Selma are in the process. Staggering four-year terms have been established for
directors. An organizational meeting of CVLGC will be scheduled soon and Mr. Cockerell will
continue to keep board members informed of its progress.
The twelfth order of business was SAWS Capacity Reservation Fee -Alan Cockerell,
General Manager.
President Greenwald gave a brief overview of the press conference for the contract signing
between SSLGC and SAWS.
Mr. Cockerell referred to a presentation by SAWS Manager of Engineering and Water Resources
Gary Guy and an article referring to the SAWS' Carrizo Aquifer Deal in the San Antonio
Exp~•ess News. Both provided highlights of the affiliation between SAWS and SSLGC.
Mr. Cockerell reported that SAWS would be paying a capacity reservation fee of $538,000, due
in two equal payments on. March 1 and October 1. In review, Mr. Cockerell stated that when
SAWS begins taking water it will pay a similar amount which will be applied to debt service in
order to reduce the debt service to each city. He added that both the cities of Schertz and Seguin
have requested to receive this initial capacity reservation fee from SSLGC as a refund for monies
provided for the Corporation at the beginning of the SSLGC project. He requested direction
from the Board.
Secretary Wolverton made a motion to split the $538,000 capacity reservation fee from
SAWS evenly between the City of Schertz and City of Seguin. Vice-President Dwyer
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
Before going into executive session, Counsel Bill Knobles introduced two ~°epresentatives for
RAMBAR Industries, Ms. Brittany Wagener and Mr. Adolfo Campero, Jr. with Campero and
Associates, P. C.
President Greenwald closed General Session at 2:25 p.m.
The thirteenth order of business was Executive Session called under Chapter 551
Government Code, Section 551.071, to seek the Advice of its Attorney on Leal Matters
and Section 551.072, for Deliberations Regarding Real Estate.
President Greenwald opened Executive Session at 2:35 p.m.
Executive Session was held from 2:35 p.m. unti13:00 p.m.
The fourteenth order of business was to Consider and Take Action as a result of Agenda
Item Thirteen.
President Greenwald opened General Session at 3:00 p.m. .
As a result of Executive Session:
Agenda Item # 4
Counsel Bill Knobles requested approval of oil and gas leases with RAMBAR Industries for 21
individual SSLGC properties and separate escrow agreements concerning each tract of land
along with memorandums to be filed for record.
Vice-President Dwyer made a motion to approve an oil and gas lease and escrow agreement
#1, an excess water purchase agreement, and authorize the executive committee to make
any needed changes toward negotiated addendums to the excess water purchase agreement.
Treasurer Wolverton seconded the motion.
Befog°e a vote was taken, Counsel Knobles requested a change to the motion.
Vice-President Dwyer amended his motion to approve each individual oil and gas lease and
separate escrow agreement concerning each individual tract of real property in Gonzales
County which is the subject of the agreement to the parties and reflected in the summary of
mineral ownership report along with memorandums to be filed for record. Secretary
Wolverton seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The fifteenth order of business was Consideration and/or Action on Questions and Possible
Items to be placed on the Next Agenda.
Mr. Cockerell reminded board members that the regularly scheduled March 17th board meeting
would be held during Spring Break and asked if anyone was interested in moving the meeting up
one week to March 10th. After discussion, all agreed to keep the March 17th date.
No additional discussion was held.
The next regular board meeting was scheduled March 17, 2011, at 1:30 p.m. in Schertz, Texas.
The sixteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:07 p.m.
MINUTES APPROVED THIS ~ DAY OF ~!~/~C -~ , 2011.
i~
im O. Wolverton
Secretary, Board of Directors