02-20-2014MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION �
On this the 20th day of February, 2014,
the Schertz /Seguin Local Government Corporation
(SSLGC) convened at 1:30 p.m. in the City of
Seguin. Council Chambers located at 210 E. Gonzales,
Seguin Texas. The following directors being
present and in attendance:
Ken Greenwald
President
Kerry Koehler
Treasurer
Larry Dublin
Secretary
T. "fake" Jacobs
Assistant Secretary
Mayor Keil
Ex- Officio
David Scagliola
Ex- Officio
and the following member(s) being absent:
Robin Dwyer
Vice- President
to the Board and a quorum for the transaction of
constituting a majority of the persons appointed
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)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Patrick Shriver
Project Coordinator (SAWS)
John Winkler
Consultant (Walker Partners)
Billy Phenix
Legislative Consultant
Crockett Camp
Consultant
Bill Klemt
Consultant /Hydrologist
Rene Moulinet
Landman (HRM Land Acquisition Solutions, LLC)
Tommy Koch
Consultant
Alan Cockerell
General Manager (SSLGC)
Shawn Shimek
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 1:33 PM
The second order of business was Public Comment.
Director Recognition (Andrew Koenig)
President Greenwald recognized Vice - President Koenig for his commitment to the SSLGC Board
of Directors from December 2009 through December 2013. President Greenwald presented Vice-
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Presented Koenig with a framed proclamation, as well as, a plaque in appreciation for his loyal
service.
There were no public comments.
The third order of business was Election of Officers — Ken Greenwald
President Greenwald advised that there was only truly one position that was vacant, Vice- President,
due to Mr. Koenig's term end. He advised the Board that they could elect that one vacant position
or a full slate of officers. It was unanimously agreed to fill the single vacancy, as well as, any that
were vacated due to this election.
•S Vice - President
Treasurer Koehler made a motion to nominate Director Dwyer as Vice - President. Director
Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
As Director Dwyer's election to the position of Vice- President, Assistant Secretary was left vacant.
4- Assistant Secreta
Treasurer Koehler made a motion to nominate Director Jacobs as Assistant Secretary.
Secretary Dublin seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The fourth order of business was was Approval of the Minutes for the Board Meeting,-held
on janua1y 16 2014.
Treasurer Koehler made a motion to approve the January 16, 2014 minutes as read.
Secretary Dublin seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The fifth order of business was Presentation of the General Manager's Re-port — 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:
➢ Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of January was 67.2% of Gonzales County
Underground Water Conservation District's (GCUWCD) monthly allowable.
GCUWCD
The meeting was February 11, 2014; Mr. Cockerell did not attend, as he was attending Public
Funds Investment Act (PFIA) training in Waco, as required. A copy of the meeting agenda
was included in the board packet. Normal business was conducted. Mr. Cockerell advised
that the District Annual Report and Western Mitigation Fund Annual Report were both
included in the board packet for the Board to review.
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➢ GCGCD
Montlil Meeiin
The meeting was February 13, 2014. Mr. Cockerell attended. A copy of the meeting agenda
was included in the board packet. The District approved legal action to enforce "Rule 8.1
SOLID, HAZARDOUS OR RADIOACTIVE WASTE ".
The next meeting was scheduled for April 10, 2014.
TQQ 2'ublk Hearing
A copy of the public notice was included in the board packet.
➢ Region L /GMA -13
T ERB StakeholderMeetin
The meeting was January 31, 2014. A copy of the meeting agenda was included in the board
packet. Texas Water Development Board (i"WDB) would be gathering input for
development of rules for this program. A letter from TWDB was included in the board
packet with a description of the State Water Implementation Fund for Texas (SWIFT)
process. Mr. Cockerell noted that the rules must be complete by March 2015.
Reg on LQuarterly Meeting:
The meeting was February 6, 2014. A copy of the meeting agenda was included in the board
packet. New officers were elected as follows:
• Chair — Con Mims
• Vice Chair - Tim Andruss
• Secretary — Gary Middleton
• At Large — Donna Balin
• At Large — Vacant, will elect at the next meeting
Mr. Cockerell noted that the prioritization of projects in the 2011 Region L plan was
discussed and a work group had been formed to provide a recommendation on all 329
suggested projects at the next planning group meeting in May 2014.
The meeting took an interesting twist, according to Mr. Cockerell, Guadalupe - Blanco River
Authority (GBRA) circulated an analysis of SAWS's strategic objectives. Mr. Cockerell
noted that the handout did not refer to SAWS in a favorable manner. A copy was included
in the board packet.
Mr. Cockerell advised that there was a vacancy on the planning group due to the resignation
of Mr. Mike Mahoney. He stated that there would be a solicitation to fill that vacancy with a
deadline of March 28, 2014.
The Carrizo Aquifer Workgroup provided a recommendation that was approved by the
planning group. A copy of the presentation was included in the board packet, as well as, a
memo from TWDB regarding the role of Modeled Available Groundwater (MAG) in
regional water planning.
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Mt. Cockerell advised that this was a critical year of the planning cycle since all of the
proposed plans would be evaluated and reviewed by the planning group. A list of potential
issues for the 2016 plan was included in the board packet.
Ike &tonal Water Alliance Quarterly Meeting.'
The meeting was February 13, 2014. A copy of the meeting agenda was included in the
board packet. A review of the Region L meeting was conducted along with water
management strategies and schedules. Information on a Central Texas Water Conversation
Symposium, scheduled for February 25, 2014, was included in the board packet.
➢ CVILGC
The CVLGC meeting was held on January 23, 2014 in Schertz. The meeting agenda and a
copy of approved Resolution CVLGC2014 -03, regarding Regional Water System Projects,
were included in the board packet. The next meeting was scheduled for February 27, 2014
in Cibolo.
The fifth order of business was Presentation of Treasurer's Report — Susan Caddell Finance
Director & Alan, Cockerell General Mana er.
a. Financial Statements for the quarter ending December 31, 2013.
Included in the board packet were the financial reports for the three months ended December 31,
2013. The first two pages were combined statements for all the SSLGC funds, but did not
include the SAWS project funds. They included the Balance Sheet and the Statement of
Revenues, Expenses and Changes in Net Assets. Page 2 indicated net income of $2,488,509.67,
which was largely due to the fact we had received revenue in the I &S Fund of $2,363,793.16, but
had not made a bond payment before December 31. Beginning with page 3, provided were
statements for each fund. On page 4, were the Statement of Revenues, Expenses and Changes in
Net Assets for the Operating Fund. SSLGC was beginning to receive water sales revenues from
SAWS in the amount of $333,783.20. Near the bottom of the page, was "Net Income (Loss)
Before Transfers" of $335,134.19. This year, the budget included transfers to the
Repair /Replacement Fund of $800,000 and to the Future Development Fund of $500,000. Those
transfers were divided into monthly transfers. The bottom of the page indicated net income of
$10,134.19.
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. This included the I &S rates paid by participating
entities. The first bond payment had yet to be made through December 31, yet revenue was
being received resulting in net income of $2,363,793.16. The first bond payment was made on
February 1 in the amount of $1,774,261.88.
On page 7, was the Balance Sheet for the Repair and Replacement Fund. The cash balance was
$1,769,99796. On page 8, was the transfer from the Operating Fund, as mentioned earlier.
There had been no expenses charged to this fund for the first three months of the fiscal year.
On page 9 and 10, was 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
$1,203,387.60. On page 10, was the transfer from the Operating Fund, as mentioned earlier.
There had been no expenses charged to that fund for the first three months of the fiscal year.
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Pages 11 and 12 were the statements for the Impact Fund. The cash balance in that account, as
of December 31, was $2,396,891.53. The Statement of Revenues, Expenses and Changes in Net
Assets for that fund indicated $29,246 of water impact revenue. On the Balance Sheet for that
fund was $13,597.54 in a deferred revenue account. According to the accrual accounting
policies followed by SSLGC, revenue was not recognized until the work had 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 December 31. Those were
payments made by the City of Seguin. When the City of Schertz submits payment to that fund,
their work was already 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
$1,281,867.13. On Page 14, were the interest earnings for those three months.
Pages 15 and 16 were statements for the 2010 Construction Fund. The cash balance in that fund,
as of December 31, 2013, was $2,763,499.69. The amount of $1,866,776.04 remained in
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 I8 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 had increased by $188,240.74. That was due to SAWS
beginning to purchase SSLGC excess water. Not including SAWS and Springs Hill usage,
consumption had decreased by 96,873,000 gallons. Expenditures had increased by $168,446.32,
with the largest being in utilities services of $72,863. Net income before transfers increased
from last year by $19,794.42, while net income after transfers decreased by $242,705.58. There
were transfers of $156,250 and $106,250 more to the Repair/Replacement Fund and Future
Development Fund, respectively.
Finally, page 22 was the working capital trend chart. Working capital had increased since
September 30, 2013, by $2,457,526. While revenue had been received in the I &S Fund, a bond
payment had not made before December 31.
Secretary Dublin made a motion to approve SSLGC's financial statements for the quarter
ended December 31, 2013. Assistant Secretary Jacobs seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending December 31, 2013.
Mrs. Caddell presented the Investment Report for October 1, 2013 through December 31, 2013-
Interest earnings for the quarter ended December 31, 2013 were $ 4,682.
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Assistant Secretary Jacobs made a motion to accept SSLGC's Investment Report for quarter
ended December 31, 2013. Secretary Dublin 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 319 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 October 1, 2013 through
December 31, 2013, as indicated in the first column on the report, were $1,526,597. The second
column, year to date expenditures was the same as the first column as this was the first quarter of
FY2014. Mrs. Caddell advised that one item was over budget. Office Space Rental was not in the
original FY2013 -14 O & M Budget, as Staff thought they would be in the new office building by
October 1, 2013. Once SSLGC has moved out of the current rented office, Staff will work with
Mrs. Caddell to make an internal budget adjustment to balance that item.
Secretary Dublin made a motion to approve the reimbursement to the City of Seguin in
accordance with the Management Services Agreement of $1,526,597. Treasurer Koehler
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
The seventh order of business was U12date SSLGC Risk Management Plan (RMP) — John
Winkler Walker Partners.
➢ Task Order # 13
Mr. Cockerell advised that this was a requirement every five years we were at that five year mark.
He noted that Task Order # 13 was for Mr. Winkler, Walker Partners to provide the engineering
services on the proposed SSLGC -RMP. Staff recommended approval.
Assistant Secretary Jacobs made a motion to approve Task Order # 13 in the amount of
$7,800. Secretary Dublin seconded the motion. Upon a vote being called, the motion
carried by unanimous decision.
The eighth order of business was Water Level Measurements — Bill Klemt
Consultant/Hydrologist.
Mr. I,'Iemt's report was included in the board packet. His summary was as follows:
On January 2 & 3, 2014 water levels were measured in observation wells which are located in the
vicinity of the SSLGC well field in Gonzales County. Water levels were measured in Guadalupe
County on January 22, 2014. The tables included in Mr. Klemt's written report show the records of
wells measured in Gonzales and Guadalupe Counties. Maps included in the board packet as part of
Mr. Klemes report show the following: Figure 1), Location of wells; Figure 2), Carrizo water level
drawdowns for the period August- Sept /02 to January 2014; and Figure 3), Altitude of Carrizo water
levels, January 2014.
Within the immediate SSLGC Well Field area, for the period Aug /Sept 2002 to January 2014, the
average annual Carrizo water level decline is on the order of -3.6 feet per year. However in the
general area of western Gonzales County, water levels are declining at an average rate of -2.1 feet per
year for this same period of tune. Water levels continue to decline modestly in the Carrizo outcrop
areas of Guadalupe and western Gonzales Counties. In the future, it is expected that SSLGC,
SAWS and CRWA will increase pumpage above the present day level. When this happens, average
water level declines per year will increase and then gradually decrease over time.
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The ninth order of business was SAWS Expansion Project U12date — John Winkler, Walker
Partners & Alan Cockerell General Mana er.
Mr. Winkler stated that he and Mr. Cockerell attended the monthly meeting with Pepper-Lawson the
past Tuesday, February 18, 2014 at the Nixon Plant. Mr. Winker noted that Pepper - Lawson was
making good progress but were still behind. They approximate 30 days but Mr. Winkler estimated
closer to 45+ days. He advised that all the major concrete pours were done.
Mr. Cockerell noted that next Wednesday, February 26, 2014, Pepper - Lawson had a scheduled shut
down to allow for the tie in at the Nixon Plant. He had notified cities. Mr. Cockerell advised that
there should not be any delivery issues, but would not be able to replenish from the plant until the
tie in was completed. The estimated time to complete was twenty -four hours. Mr. Cockerell did not
expect any issues with SSLGC customers during this process.
The tenth order of business was SSLGC Construction Update — John Winkler, Walker
Partners & Alan Cockerell.
Mr. Cockerell stated that demo work had begun at the Old Fire House /New SSLGC Admin
Building. He advised that the only known issue to date was the bathroom stalls were too small and
would need to be adjusted. Mr. Cockerell would be working with the contract to remedy that issue.
The eleventh order of business was Legislative Update — Bill Phenix Legislative
Consultant & Alan Cockerell Executive Director.
Counselor Lindner recommended this item be deferred to Executive Session.
President Greenwald deferred agenda item eleven to Executive Session.
The twelfth order of business was Status Update BPS Ground Storage Tank Preload and
Action in Response to Same — Patrick Lindner General Counsel & ohn Winkler Walker
Partners & Alan Cockerell General Manager
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session.
The thirteenth order of business Guadalu a Project Wholesale Water Contract(s) — Patrick
Lindner General Counsel & Alan Cockerell General Mana er.
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session.
The fourteenth order of business was Gonzales Cougn & Guadalu a Coun Carrizo and
Wilcox Water Leases — Patrick Lindner General Counsel & Alan ockerell General
Manager.
Executive Session Recommended
President Greenwald deferred item fourteen to Executive Session.
The fifteenth order of business was Briefing by Legal Counsel on Co oration Water Rig
hts
Patrick Lindner General Counsel.
Executive Session Recommended
President Greenwald deferred item fifteen to Executive Session.
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The sixteenth order of business was Executive Session called under Chapter 551
Government Code Section 551.071 to seek the advice of its attorne on legal matters n
Section 551.072 for deliberations regarding real estate.
President Greenwald closed General Session at 2:27 PM
Executive Session was field from 2:37 PM to 3:25PM
The seventeenth order of business was to Consider and Take Action as Result of Agenda
Item Number fifteen.
President Greenwald reopened General Session at 3:26 ['M
Agenda Item # 11
No action requested /No action taken
Agenda Item # 12:
No action requested /No action taken
Agenda Item # 13:
No action requested /No action taken
Agenda Item # 14:
No action requested /No action taken
Agenda Item # 15:
No action requested /No action taken
The eight eenth order of business was Consideration and/or Action an uestions and
Possible Items to be placed on the Next Agenda.
❖ The next board meeting was scheduled for March 20, 2014 in the City of Schertz at 1:30 PM
The nineteenth order of business was Ad'ournment.
President Greenwald declared tl)e meeting adjourned at 3:27 PM
MINUTES APPROVED THIS 2021 DAY OF MARCH 2014.
r
OR
Larry Dublin, Secretary
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T. "Jake" Jacobs, Assistant Secretary