11-11-2013 MinutesMINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 11th day of November, 2013, the Schertz /Seguin Local Government Corporation
(SSLGC) convened at 1:30 PM in the City of Schertz Council Chambers located at 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following directors being present and in attendance:
Ken Greenwald
President
Andrew Koenig
Vice- President.
Larry Dublin
Secretary
Robin Dwyer
Assistant Secretary
Mayor Keil
Ex- Officio
David Scagliola
Ex- Officio
and the following member(s) being absent:
Kerry Koehler
Treasurer
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:
Doug Faseler
City Manager (City of Seguin)
John Bierschwale
Executive Director (City of Schertz)
Susan Caddell
Director of Finance (City of Seguin)
Sam Willoughby
Public Works Director (City of Schertz)
Emery Gallagher
Water Utility Manager (City of Seguin)
Dick O'Neil
General Counsel (Davidson, Troilo, Ream & Garza)
John Winkler
Consultant (Walker Partners)
Billy Phenix
Legislative Consultant
Crockett Camp
Consultant
Bill Kletnt
Consultant /Hydrologist
Alan Cockerell
General Manager (SSLGC)
Shawn Shitmek
Water Superintendent (SSLGC)
Regina Franke
Administrative Assistant (SSLGC)
The first order of business was to Call the Meeting to Order.
President Ken Greenwald called the meeting to order at 1:30 PM
President Greenwald introduced David Scagliola as the new ex- officio from the City of Schertz. He
was selected to replace George Antuna.
The second order of business was Public Comment.
There were no public comments.
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The third order of business was Approval of the Minutes for the Board Meeting held on
October 17, 2013.
Vice - President Koenig made a motion to approve the October 17, 2013 minutes as read.
Secretary Dublin 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 Cockerell's written report was included in the board agenda packets. He added
the following items to his written report;
A Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of October was 54.9% of Gonzales County
Underground Water Conservation District's (GCUWCD) monthly allowable.
GCUWCD
The meeting was November 12, 2013; Mr. Cockerell attended. A copy of the meeting
agenda, as well as, the Investment Report was included in the board packet.
The District will hold a public hearing in January 2014 with the goal of approving the
management plan by February 13, 2014. Mr. Cockerell anticipated a draft copy of the new
management plan would be available by the end of November 2013.
The initial briefing on the District's monitoring plan for DFC compliance was presented by
the District's consultant; SSLGC will continue to monitor the progress.
➢ GCGCD
The meeting was scheduled for November 20, 2013, but it was delayed due to relocation of
the District's office.
The latest notice from TCEQ regarding the POCG landfill application was included in the
board packet, as well as, a letter from Senator Campbell. SSLGC has taken the necessary
steps to be included in any proceedings on this matter.
➢ Region L /GMA -13
R,euion L
The meeting was November 7, 2013; a copy of the agenda was included in the board packet.
Mr. Cockerell noted that Mike Mahoney had submitted his resignation to Region L; the
vacant position for Water District would be addressed at the February meeting.
Mr. Cockerell handed out a revised template; he advised that it was under development
statewide to provide a prioritized list of all projects included in the state water plan.
Mr. Cockerell advised that there was a major issue which had come to light in the planning
process. TWDB would not allow any current or future project to exceed the MAG for any
groundwater district. Included in the board packet was the status report provided to the
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planning group; in the report were bar charts from Guadalupe and Gonzales counties to
demonstrate the problem within GMA -13 /Region L. That issue would affect all districts,
not just the ones shown in the report.
The TWDB rule may require that existing projects be reduced proportionately in the new
plan. That would reduce SSLGC's issued permits to 54 %, as well as, any new projects
would be reduced or have zero firm yield. There could be several negative consequences
caused by this issue and SSLGC will be actively involved in addressing the problem.
➢ CVLGC
The CVLGC meeting was held on October 24, 2013 in Cibolo. The meeting agenda was
included in the board packet. The next meeting was scheduled for early December 2013 in
Converse.
Assistant Secretary Dmyer and Ex- Officio Ked amved at 9.47 PM
The fifth order of business was Presentation of Treasurer's Deport — Susan Caddell, Finance
Director & Alan Cockerell, General Manager.
a. Financial Statements for the quarter ending September 30, 2013.
Included in the board packet were the financial reports for the quarter ended September 30, 2013.
The first two pages were combined statements for all the SSLGC funds, but did not include the
SAWS project funds. Those included the Balance Sheet and the Statement of Revenues, Expenses
and Changes in Net Assets. Page 2 indicated net loss of $307,304.94, which was largely attributable
to spending more bond funds. Beginning with page 3, provided were statements for each fund. On
page 4, was the Statement of Revenues, Expenses and Changes in Net Assets for the Operating
Fund. Near the bottom of the page, was the "Net Income (Loss) Before Transfers" of
$1,091,418.91. This year, the budget included transfers to the Repair/ Replacement Fund of
$175,000 and to the Future Development Fund of $75,000. The bottom of the page indicated net
income of $841,418.91.
On page 5 and 6, were the Balance Sheet and Statement of Revenues, Expenses and Changes in Net
Assets for the Interest and Sinking Fund. Those included the I &S rates paid by participating
entities. The first bond payment for the year was paid on February 1 in the amount of
$2,651,080.63. The interest payments are included in the Statement of Revenue, Expenses and
Changes in Net Assets while the principal payments are included in the balance of each of the bonds
payable accounts in the Balance Sheet. The final bond payment for the fiscal year was made on
August 1 in the amount of $1,947,180.63.
On page 7, was the Balance Sheet for the Repair and Replacement Fund. The cash balance was
$1,569,822.31. On page 8, was the transfer from the Operating Fund as mentioned earlier. There
were no expenses charged to this fund for this fiscal year.
On page 9 and 10, were the Balance Sheet and Statement of Revenues, Expenses and Changes in
Net Assets for the Future Development Fund. The cash balance in this account was $1,078,261.09.
On page 10, was the transfer from the Operating Fund as mentioned earlier. The expenses for land
and building were related to the purchase and renovation of the new administrative building.
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Pages 11 and 12 were the statements for the Impact Fund. The cash balance in this account as of
September 30 was $2,340,573.22. The Statement of Revenues, Expenses and Changes in Net Assets
for this fund indicated $391,924.96 of water impact revenue. The expenses in the amount of
$3,100.00 were for the capital improvement plan. On the Balance Sheet for this fund was
$10,985.54 in a deferred revenue account. According to the accrual accounting policies followed by
SSLGC, revenue is not recognized until the work has been completed. Payment was required from
customers before the water connection was made. This amount had been paid for a connection, but
the work was not completed as of September 30. Those were payments made by the City of Seguin.
When the City of Schertz submitted payment to this fund, their work had already been completed.
Pages 13 and 14 were statements for the Reserve Fund. The required amount to maintain in the
Reserve Fund according to bond covenants was $1,275,621.10. The cash balance was
$1,281,725.55. On Page 14, were the interest earnings for the year.
Pages 15 and 16 were statements for the 2010 Construction Fund. The cash balance in this fund as
of September 30, 2013 is $3,253,492.71. There was still $1,916,074.34 of outstanding purchase
orders. The Statement of Revenues, Expenses and Changes in Net Assets showed the interest
earning and the expenditures for the administration building, filter expansion, and Seguin crossing.
Beginning on page 17, were the statements for the SAWS project. Pages 17 and 18 were the
statements for the Construction Fund for the SAWS project, while pages 19 and 20 were the
statements for the I & S Fund. These statements were not included in the combined statements on
pages 1 and 2.
On page 21, was the Comparative Statement of Revenues, Expenses and Changes in Net Assets for
the Operating Fund. Revenue has decreased by $24,408.63. Overall consumption has decreased by
2,601,750. Expenditures had increased by $392,189.13, with the largest being in water leases of
$251,953.93. Net income before transfers decreased from last year by $416,597.76, while net
income after transfers decreased by $366,597.76.
Finally, page 22 was the working capital trend chart. Working capital had decreased since June 30,
2013, by $1,556,810. This was largely due to the fact that our second bond payment had been made
and we had been spending more bond funds.
Mr. Cockerell mentioned processing transfers to Emergency Repair and Replacement Fund. Any
adjustments and transfers would be decided after the audit report was completed.
Secretary Dublin made a motion to approve SSLGC's financial statements for the quarter
ended September 30, 2013. Vice - President Koenig seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending September 30, 2013.
Mrs. Caddell presented the Investment Report for July 1, 2013 through September 30, 2013.
Interest earnings for the quarter ended September 30, 2013 were $6,876.
Assistant Secretary Dwyer made a motion to accept SSLGC's Investment Report for quarter
ended September 30, 2013. Vice - President Koenig seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
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c. Reimbursement to the City of Seguin in accordance with the Management Services
Agreement for the quarter ending September 30, 2013.
Included in the board packet was a list of expenditures from the Operations and Maintenance
budget which was paid by the City of Seguin. The expenditures for July 1, 2413 through September
30, 2013, as indicated in the first column on the report, were $1,424,957. The second column, year
to date expenditures, was $4,929,948. A few line items were over budget, but all categories were
under budget.
Secretary Dublin made a motion to approve the reimbursement to the City of Seguin in
accordance with the Management Services Agreement of $1,424,957. Assistant Secretary
Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
The sixth order of business was SAWS Expansion Project Update — John Winkler, Walker
Partners & Alan Cockerell, General Manager.
Mr. Cockerell stated that SAWS had started the 30 day performance test at the Schertz Pump
Station.
Mr. Cockerell advised he had a conference call that included Counselor Lindner and the Surety
Company. He said that Pepper- Lawson had committed to completing the project as contracted;
they were working to improve on the 20+ days which they are behind schedule.
Mr. Winkler and Mr. Cockerell had a communication meeting scheduled for Wednesday, November
20, 2013 with Pepper - Lawson and a mediator. Mr, Cockerell noted that it appeared that lately
Pepper- Lawson had been striving for quality; he would continue to monitor this and advise the
Board.
Mr. Cockerell noted that he had been working on the Well Field Operations agreement with SAWS;
he anticipated a final draft to be ready for consideration at the December 19, 2013 board meeting.
The seventh order of business was SSLGC Construction Update — John Winkler, Walker
Partners & Alan Cockerell.
Mr. Cockerell advised that the SSLGC filter expansion was almost complete.
The eighth order of business was Old Fire Station in downtown Seguin for administrative
office — Alan Cockerell, General Manager.
➢ Resolution # SSLGC R13 -22
Mr. Cockerell advised the Board that there had only been one bid submitted for the renovations to
the Fire Station. He had worked with the architect to reduce the scope of the project (primarily the
parking lot work and perimeter brick fence /wall). Mr. Cockerell stated that he intended to repast
the RFP in the Seguin Gazette, Schertz Herald and would also advertise in the San Marcos Record.
The cities of San Marcos and Seguin have a reciprocal agreement in regards to being licensed as a
general contractor in the City of Seguin. He hoped the second posting would draw in more bids for
comparison.
Secretary Dublin made a motion to approve the Resolution # SSLGC R13 -22 to reject the
bid from Koehler Company. Assistant Secretary Dwyer seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
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The ninth order of business was Legislative Update — Billy Phenix Legislative Consultant &
Alan Cockerell, Executive Director.
Y Resolution # SSLGC R13 -23
Mr. Phenix advised that he was working to secure a meeting date with the TWDB. He would keep
Mr. Cockerell informed and he would be invited to attend the meeting.
Mr. Cockerell advised that Mr. Phenix's agreement expired October 31, 2013. Mr. Cockerell had
spoken to Mr. Phenix and consulted with the Executive Committee. The recommendation from the
Executive Committee was to renew Mr. Phenix's Legislative Consultant Agreement for a term of 24
months with no substantive changes. The new agreement would begin November 1, 2013 and
continue through October 31, 2015. The resolution would also authorize the General Manager to
sign the agreement.
Assistant Secretary Dwyer made a motion to approve the Resolution # SSLGC R13 -23 to
renew the Legislative Consultant Agreement for Billy Phenix and authorize the General
Manager to execute the agreement. Vice- President Koenig seconded the motion. Upon a
vote being called, the motion carried by unanimous decision.
The tenth order of business Wholesale Water Contract(s) — Patrick Lindner, General
Counsel.
Executive Session Recommended
President Greenwald deferred item ten to Executive Session.
The eleventh order of business was Status Update BPS Ground Storage Tank, Patrick
Lindner, General Counsel & John Winkler, Walker Partners & Alan Cockerell, General
Manager.
Executive Session. Recommended
President Greenwald deferred item eleven to Executive Session.
The twelfth order of business was Gonzales County & Guadalupe County Carrizo and
Wilcox Water Leases — Alan _Cockerell, General Manager.
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session.
The thirteenth order of business was Executive Session called under Chapter 55
Government Code, Section 551.071, to seek the advice of its attorney on legal matters, and
Section 551.072, for deliberations regarding real estate.
President Greenwald closed General Session at 2:22 PM
Executive Session was held from 2:32 PM to 3:02 PM
The fourteenth order of business was to Consider and Take Action as Result of Agenda
Item Number thirteen.
President Greenwald reopened General Session at 3:03 PM
Agenda Item # 10
No action requested /No action taken
Agenda Item # 11:
No action requested /No action. taken
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Agenda Item # 12:
No action requested /No action taken
The fifteenth order of business was Consideration and /or Action on Questions and Possible
Items to be placed on the Next Agenda.
❖ The next board meeting was scheduled for December 19, 2013 in the City of Seguin at 1:30
PM
❖ SAWS Well Field Agreement
The sixteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:04 PM
MINUTES APPROVED THIS 19TH DAY OF DECEMBER, 2013.
OR
Larry Dublin
Secretary, Board of Directors
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Robin Dwyer
Assistant Secretary, Board of Directors