05-24-2017 Joint Minutes CVLGC & CiboloMINUTES
SPECIAL JOINT WORKSHOP MEETING
May 24, 2017
A Special Joint Workshop Meeting was held by the Cibolo Valley Local Government
Corporation ( CVLGC), City of Cibolo and the City of Schertz, on May 24, 2017, at 6:30 p.m., at
the Schertz Civic Center Bluebonnet Hall, 1400 Schertz Parkway -Bldg. 5, Schertz, Texas. The
following members present to -wit:
City of Schertz
Mayor Michael Carpenter
Councilmember Ralph Gutierrez
Councilmember Angelina Kiser
City Manager John Kessel
Executive Director Dudley Wait
Mayor Pro -Tem Cedric Edwards
Councilmember Scott Larson
Councilmember Bert Crawford
City Secretary Brenda Dennis
Asst. Public Works Director Jim Hooks
Councihnembers Mark Davis and Robin Thompson were absent.
City of Cibolo
Mayor Allen Dunn Councilmember Verlin "Doug" Garrett
Councilmember Brian Byrd Councilmember Jim Russell
Councilmember Ted Gibbs Councilmember Glenn Weber
Bob Herrera, City Manager City Secretary Peggy Cimics
Executive Assistant Leigh Ann Rogers Kristopher McDaniel, IT Director
Anna Miranda, Director of Finance
Timothy Fousse, Director of Public Works /Capital Projects
Councilmembers Jennifer Schultes and Jay Hogue were absent.
Cibolo Valley Local Government Corporation:
Justin Murray, Board President Garth Coursen, Board Member
Lesley Pedde, Board Member Steve White, Board Member
Amber Briggs, SSLGC Deputy Executive Director Alan Cockerell, Executive Director
Angie Kleinschmidt, Office Administrator
Mayor Pro -Tem Cedric Edwards - Schertz - Ex- officio
CVLGC Contractors:
John Winkler, Walker Partners
Bill Klemt, Hydro - Geologist Consultant
Art Rodriguez, Russell & Rodriguez LLP
Rene Moulinet, HRM Land Acquisitions Solutions
Guests
Maggie Titterington, President of The Chamber
Richard Dziewit
Glen Outlaw
5 -24 -2017 Minutes Page - 1 -
Call to Order
1. Call meeting to order — Justin Murray — President —CVLGC
President Justin Murray called the Cibolo Valley Local Government Corporation
(CVLGC) to order at 6:31 p.m.
a. City of Cibolo — Mayor Dunn called the City of Cibolo Joint meeting to order at
6:32 p.m.
b. City of Schertz — Mayor Carpenter called the City of Schertz Joint meeting to
order at 6:32 p.m.
2. Welcome /Opening Remarks — Mayor — City of Cibolo & Mayor — City of Schertz
Mayor Dunn and Mayor Carpenter welcomed everyone in attendance this evening
providing brief comments regarding the partnerships with the City of Schertz City of
Cibolo and the Cibolo Valley Local Government Corporation.
3. Introductions — Justin Murray—President—CVLGC
Executive Director Alan Cockerell provided the following regarding the presentation
topics that will be discussed:
Regional Water Planning
CVLGC History
CVLGC Organization 2017
CVLGC Project Concept — Project Description, Project Map
CVLGC Project Financial — Timing, Contribution Projections
CVLGC Demands
Carrizo Aquifer
Groundwater Permitting
Legislative Update
Summary
4. CVLGC Water Development Project in Wilson County — Alan Cockerell, Executive
Director & John Winkler, Walker Partners & Art Rodriguez, General Counsel
Alan Cockerell
® Terms
• ac -ft — acre -feet = 325,851 Gallons
• CVLGC — Cibolo Valley Local Government Corporation
• DFC — Desired Future Condition
• EUWCD — Evergreen Underground Water Conservation District
• GCD — Groundwater Conservation District
5 -24 -2017 Minutes Page - 2 -
• GMA
— Groundwater Management Area
• MAG
— Modeled Available Groundwater
• MOU
— Memorandum of Understanding
• MSA —
Management Services Agreement
• PER —
Preliminary Engineering Report
• Region L — South Central Texas Regional Water Planning Group
• SARA
— San Antonio River Authority
• SSLGC — Schertz/Seguin Local Government Corporation
• WUG
— Water Use Group
• Texas Water Development Board (TWDB)
• Regional Water Planning
- Established in 1997 by 75"' Texas Legislature (SB1)
- Bottom -up approach
- Sixteen Planning Groups
- Approved Bylaws
- Designated Administrator
Basic Planning Parameters
- Water Supply Plan to meet drought of record needs
- 50 year planning horizon
- 5 year planning cycle
- 6 categories of water use
o Municipal, Manufacturing, Mining, Irrigation, Livestock and
Steam - Electric Power
Texas Water Development Board (TWDB) Regional Planning
• South Central Texas Regional Water Planning Group
• Region L
• Comprised of 20.5 Counties
• Administrator: SARA
• Technical Consultant: Black & Veatch
• Quarterly Meetings 2017
■ First Thursday of Feb, May, Aug. & Nov.
■ SAWS Customer Service Building
• www.regionitexas.org
• Current Planning Cycle
0 2017 State Water Plan is Interactive:
https : / /2017.texasstatewatgrplan.orp,/statewide
o Fifth Planning Cycle (2017 -2021)
Changed to Utility Based Planning
5 -24 -2017 Minutes Page - 3 -
® CVLGC History
2011
o CVLGC formally created and first official board meeting with Cibolo,
Converse, Schertz, Seguin, and Selma
2012
• Walker Partners began development of a regional water system master
plan which included a water study for each city
• Seguin and Selma withdrew due to different focus concentrations
2013
o Responded to HDR Survey to collect population and water use data for
Region L (With assistance from Walker Partners)
2014
• Selected most feasible project for CVLGC Customers
Carrizo- Wilcox well field in Eastern Wilson County
• Converse withdrew from CVLGC
• Approved Business Plan for Water Supply Project
• Began Option Agreements with Wilson County landowners
2015 -2017
• Project included in Region L Plan as Recommended Strategy
• Began Water Lease Agreements with willing landowners
• Negotiated common water lease template with large landowner group
® CVLGC Organization 2017
City of Cibolo & City of Schertz
Governed by a Board of Directors Appointed by Each City Council
• Two Directors from each City
• One Ex- Officio from each City
Utilize SSLGC Staff for Administration (MSA)
Board Meets Monthly (Fourth Thursday)
Contracts with the Following:
• Armstrong, Vaughn & Associates, PC — Auditor
• Art Rodriguez, Russell & Rodriguez LLP - Attorney
• Bill Klemt — Hydro - Geologist
• John Winkler, Walker Partners — Engineering
• SAMCO Capital Markets Inc. — Financial Advisors
• HRM Land Acquisition Solutions, LLC — Land Agents
o Crockett Camp —Project Manager
® CVLGC Project
Water Supply Project Required for Long Range Needs
Project Included in 2016 Region L Plan & 2017 State Water Plan
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Acquiring Project Water Rights with Willing Landowners
• Provide Income Stream for Landowners
• Lease one ac -ft/ac annually from Carrizo- Wilcox Aquifer
• Land Owner to maintain Water Rights in other Stratas, as allowed by
EUWCD
Project Summary:
• Carrizo- Wilcox well field in Eastern Wilson County
• 10,000 ac -ft/yr Capacity with Six Wells
• Need to acquire additional water rights to meet continuous requirement of
12,000 Acres
• Purchase Well Sites and Lease Water Rights
• Water Production Projected to Begin in 2024 (under evaluation)
• Contract with SSLGC to Treat & Transport
• Water Chemistry Compatible with SSLGC
o Water Lease Status
o Currently have water leases for approximately 75% of required acreage
0 72 property owners
• CVLGC Project Costs — City Contributions
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CVLGC Project ownership
• Water will be produced and delivered by CVLGC to the SSLGC Guadalupe facility
• Water will be treated and transported by SSLGC to customer delivery points
• CVLGC will own wellfield and transmission line to proposed SSLGC Guadalupe
facility
• CVLGC will contract for treatment and pipeline capacity of SSLGC system
CVLGC Project Cost
City Contributions
2015 Approved Business Plan
Water Rights & Property
FY2015-2016 $750,000
ArquvBtiat
FY2036 -2017 $300,000
Project DevelopMent
FY2017 -2018 $300,000 S112M'
FY2018 -?020 5401),000'
Design &Acquisition
FY20202022 $400,000'
Construction FY20222024 $900,000" $30.1M'
'Under evaluation in new planning cycle. Projected water needs in 2030 decade.
Mr. Cockerell recognized and introduced Mr. John Winkler, PE, with Walker Partners
who provided the following information and answered questions:
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Recoverable Storage
Wilson counts
• Carrizo- tWcox Agttifers
• 1.50 A il]ion Ac -Ft in Storage (Source:
T D, B)
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• CSC = 10,000 Ac-Ft /Yr
• 50 years of pumpage
• $77 Million paid to Wilson County
Landowners
■ CVLGC Pumpage ■ Remaining Storage
President Murray introduced Counselor Art Rodriguez, Russell & Rodriguez, LLP who
provided the following information:
Adjudicative Hearing
- Notice
- Contested vs. Uncontested
- Pre- Hearing Conference
Parties
Simplification of issues
Amended application
Admissions or stipulations
Schedule Discovery
Set witness lists
Pre -filed testimony
Procedures governing hearing on the merits
Hearing on the Merits
- Testimony and Exhibits Pre -Filed
- Hearings Examiner reports findings to Board within 30 days
- Submit Exceptions to Report
- Board acts within 60 days
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An update was provided on the following bills:
Legislative Update
• HB 31
• HB 1318
y
• HB 2377
• HB 2378/SB 774
• HB 3028
• SB 862
- SB 1392
- SJR 36'::�
5. Summary, Recommendations & Discussions — Justin Murray President — CVLGC
Mr. Justin Murray, Board President of CVLGC provided summary remarks which
included answering questions:
- City of Cibolo & City of Schertz
- Water supply project selected for long range needs:
* 10,000 ac- ft. /yr. Carrizo- Wilcox well field in Eastern Wilson County
*Phased approach in accordance with state water planning requirements
* Water Production initially projected to begin in 2024
*Business Plan is under evaluation to match updated water needs
- Project included in 2016 Region L Plan & 2017 State Water Plan
- Significant progress in acquiring water rights with willing landowners
- Project Funding:
* Request $300,000 contribution from each City in FY2017/2018
5 -24 -2017 Minutes Page - 10 -
6. Adjournment
President Murry, Mayor Carpenter and Mayor Dunn provided their thanks for attendance
as well as commented on the joint partnership together.
President Justin Murray adjourned the joint meeting at 7:33 p.m., followed by Mayor
Dunn and Mayor Carpenter adjourning their joint meeting.
R. Carpenter, Mayor City of Schertz
AT t 44 La
11 — enda Denms, City Secretary
5 -24 -2017 Minutes page - 11 -