02-19-2015MINUTES 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 February, 2015 the Schertz /Seguin Local Government Corporation (SSLGC) convened
at 1:30 PM at SSLGC Administrative Building located at 108 W. Mountain Street, Seguin, Texas. The following
board members being present and in attendance:
Ken Greenwald President
Robin Dwyer
T. "Jake" Jacobs
Kerry Koehler
Bob Pees
Jim Fowler
Mayor Keil
Vice - President
Secretary
Treasurer
Assistant Secretary
Ex- Officio
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:
Doug Faseler
John Bierschwale
Susan Caddell
Patrick Lindner
Lisa Guardiola
John Winkler
Crockett Camp
Bill Klemt
Sam Willoughby
Emery Gallagher
Alan Cockerell
Regina Franke
City Manager (City of Seguin)
Executive Director (City of Schertz)
Director of Finance (City of Seguin)
General Counsel (Davidson, Troilo, Ream & Garza)
San Antonio Water System (SAWS)
Consultant (Walker Partners)
Consultant
Consultant /Hydrologist
Public Works Director (City of Schertz)
Water Utility Manager (City of Seguin)
General Manager (SSLGC)
Administrative Assistant (SSLGC)
The first order of business was to Carl the _Meeting to Order.
President Ken Greenwald called the meeting to order at 1:34 PM
The second order of business was Public Comment.
President Greenwald honored David Scagliola for his service to the SSLGC Board and presented him the
SSLGC water droplet trophy.
There were no public comments.
The third order of business was of the Minutes for the Board Meeting held January 15, 2015.
Secretary Jacobs made a motion to approve the January 15, 2015 minutes as read. Treasurer Koehler
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
Vice - President Dwyer arrived to the board meeting at 1:45 PM, after the minutes were approved.
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:
➢ Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda packets. Water
production for the month of January was 71.8% of Gonzales County Underground Water Conservation
District's (GCUWCD) monthly allowable.
➢ GCLTWCD
1�loirtlrYMeetitr
The monthly meeting was held February 10, 2015; Mr. Cockerell attended. A copy of the meeting
agenda was included in the board packet. The Board has instructed the District Manager to make the
proposed draft rules available to the public. The document was to be placed on the District's website
on Monday, February 16, 2015. Mr. Cockerell received an email, just prior to the SSLGC board meeting,
advising the proposed rules had just been posted to the District's website for review. Mr. Cockerell
advised that Staff and Legal Counsel would review the proposed rules and respond during the comment
session.
A workshop to answer any questions regarding the proposed rules was scheduled for Monday, March
16, 2005 at 1:00 PM in Gonzales. A public hearing on the proposed rules was scheduled for Wednesday,
March 25, 2015 at 5:30 PM.
➢ GCGCD
Montbly Meett��
The District meeting was held February 12, 2015; Mr. Cockerell attended and the meeting. The agenda
and most recent quarterly report was included in the board packet.
➢ Region L /GMA- 13 /RWA
Region L
The next Region L meeting was February 5, 2015; Mr. Cockerell attended. The agenda was included in
the board packet. Mr. Cockerell advised that there were two positions on the planning group that were
to be filled at the next meeting in April 2015. Information on the application process was included in
the board packet.
Information on projects to be include in the 2016 regional plan and wholesale water provided tables
were included in the board packet.
RIBA:
The meeting was held February 12, 2015. The project list from the Region L meeting was presented
and discussed. SARA provided a legislative update that was included in the board packet.
➢ CVLGC
The CVLGC Board meeting was held on January 22, 2015 in Schertz. Progress was being made with
the planned water supply project to meet the future long term needs. The next board meeting was
scheduled for February 26, 2015 in Cibolo.
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The fifth order of business wag Booth Property Grazing & Hunting Leases — Alan Cockerell, General
Manager.
Mr. Cockerell advised that when SSLGC purchased the Booth property there was an existing grazing lease and
an existing hunting lease. Staff recommended renewing each lease for one year under the same terms, with the
suggestion to extend the grazing lease through March 31, 2016 to sync up both the grazing and hunting leases.
Secretary Jacobs asked why the recommendation was for only one year. Mr. Cockerell advised that this was the
first experience that SSLGC had with a hunting lease and noted that the year would allow for the Staff, Legal
Counsel and Board to consider the potential for hunting leases on other SSLGC owned properties.
Assistant Secretary Pees made a motion to approve extend /renew both of the leases for one year and
to sync both leases to terminate on the same date, March 31, 2016. Treasurer Koehler seconded the
motion. Upon a vote being called, the motion carried by unanimous decision.
The sixth order of business was Water Level Measurements — Bill Klemt„ Hydro- geologist
Mr. Klemt's report was included in the board packet. His summary was as follows:
Carrizo water declines of 20, 50, and 60 feet, for the period Aug /Sept 2002 — January 2015, have been mapped
in the CRWA, SAWS and SSLGC well field areas of Gonzales and Guadalupe Counties, respectively.
Within the immediate SSLGC Well Filed of Gonzales County, for the period A /Sept 2002 to January 2015, the
average annual Carrizo water -level decline is on the order of -4.8 feet per year. However, in the general area of
western Gonzales County and southern Guadalupe County, water levels are declining at an average rate of
about -3 feet per year for this same period of time. These water -level declines, in addition to the drought are
due largely to pumpage in the SSLGC, SAWS and CRWA well fields.
The seventh order of business was ADDrove New Financial Advisoty Contract/Authorize L& MI
Counsel to terminate any existing Financial Advisory Contract — Alan Cockerell, General Manager &
Patrick Lindner, General Counsel
➢ Resolution # SSLGC R15 -03
Mr. Cockerell advised that Mr. Mark M£Liney had resigned from Southwest Securities and was now working
with SAMCO Capital Markets. The previous Financial Advisory Contract had existed between SSLGC and
both SAMCO Capital Markets and Southwest Securities. The new Financial Advisory Contract would be
under the same terms but would not include Southwest Securities.
Assistant Secretary Pees made a motion to approve Resolution # SSLGC R15 -03 to approve the New
Financial Advisory Contract, authorize SSLGC General Manager to executed said contract, and
authorize General Counsel to terminate any existing Financial Advisory Contracts. Vice - President
Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision
The eighth order of business was Discuss Cathodic Protection /Parallel Pipeline — Alan Cockerell,
General Manager &John Winkler, Walker Partners
There is a 42" pipeline from the NWTP to the Valve Vault in Seguin, a 36" pipeline through the BPS to Schertz
and 30" that goes to the City of Seguin. Staff recommended to start with the 42" pipeline because the 36" will
need easements to be paralleled as part of the Guadalupe Project. It makes more sense to pair the Cathodic
Protection Project with paralleling the 36" line; all the digging for construction on the parallel line and the
Cathodic Protection system can be done in tandem so the contractors are not disturbing the land twice. Mr.
Cockerell recommended to begin with the 42" segment first. He suggested to then work to obtain more
easements along the 36" pipeline area. The 30" could be in conjunction with either the 42" or 36" depending
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on Board preference. Mr. Cockerell advised that the believed the next step would be for Mr. Winkler to
provide a task order for Board approval to move forward with his design, cost estimate and bidding process.
Ex- officio Fowler asked how many owners /easements would be necessary. Mr. Winkler advised that there
were 93 different owners.
Ex- officio Keil asked how long it would take to complete the first phase as well as obtain the easements to
parallel the 36" pipeline. Mr. Winkler advised that the first phase on the 42" would take 6 -7 months. Ex- officio
Keil did not want to delay the pursuit of the easements in the name of keeping peace.
The overall consensus was that it would make sense to work on the 42" and 30" segments at the same time b/c
there were no plan to parallel those sections.
Ex- officio Fowler asked if there was a fee for the ROW acquisition. Mr. Cockerell advised that the appraisal
should be a factor but at times there can be negotiations.
Mr. Cockerell asked for direction from the Board. The Board directed Mr. Winkler to provide a task order for
Phase 1 (42" and 30 ") and then a separate task order for the pursuit of the easements to parallel the 36" pipeline
to present for Board approval.
The ninth order of business was SSLGC Construction U12date — John Winkler, Walker Partners &
Alan Cockerell.
The Seguin Connection: A walk through yielded a small punch list (paint pipe, clean up, etc.). The connection
appears to be operating well with better control.
BPS Piping ( Wauters Engineering): There has been a pre -con meeting at the BPS and Wauters has started to
order the materials which will take approximately 11 weeks to receive.
Repair 42" CSC Waterline ( Matous Construction): Work is complete and looks good /properly repaired. There
was a lot of calcium deposits which Matous removed.
The tenth order of business was SAWS Expansion Project Update —john Winkler, Walker Partners
& Alan Cockerell, General Mangier.
Mr. Cockerell advised that there were issues with the raw water coming into the plant. He stated that he will
be taking samples next week to send off for analysis. There were some issue with corrosion; Mr. Winkler will
present a Technical Memo on Chlorine Dioxide System. Mr. Cockerell advised that all would be done to
clean up the issue but anticipated that there would always be issues with bacteria. He hopes that the Chlorine
Dioxide System will be the correct treatment.
Mr. Winkler advised that he recommended that SSLGC move forward with a pilot (testing) which would
include rental of the equipment and a temporary set up of the Chlorine Dioxide System and treatment which
would be for 90 days. In the event that this would prove to be the successful treatment for this issue, SSLGC
would then need to purchase the unit. The estimated 90 day pilot costs would be e $160,000 and the separate
costs estimate for the permanent installation would be $260,000. Mr. Winkler suggested that SSLGC consider
a $200,000 estimate for the pilot and a $300,000 estimate for the permanent installation, to be on the safe side
and allow for any potential issues.
Mr. Winkler did note that the potable water was good /safe, this was just a bacteria corrosion issue that affects
the treatment plant.
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Vice - President Dwyer asked when this began. Mr. Winkler advised August 2014; there was no evidence of
this issue with past filters. Vice - President asked what this had to do with stainless steel and could plastic be
used in its place. Mr. Winkler advised that this bacteria attacks stainless but noted that the high temperature
would mean that plastic would not be a viable product /substitute. Mr. Winkler recommended the 90 day
pilot and would determine, after results, if SSLGC should proceed with the permanent system. He would
update the Board accordingly.
Vice.- President Dwyer asked if Mr. Winkler considered this an emergency and Mr. Winkler answered to the
affirmative.
Mr. Cockerell advised that SAWS had agreed to split these costs (1 /2) with SSLGC.
Vice - President Dwyer made a motion to approve the pilot program for the Chlorine Dioxide System.
Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
The eleventh order of business was Legislative Update — Billy Phenix, Legislative Consultant & Alan
Cockerell, General Manager.
Counselor Lindner requested this agenda item be deferred to Executive Session.
President Greenwald deferred item eleven to Executive Session.
The twelfth order of business was Status Update SAWS Expansion /Pepper- Lawson regarding
Liquidated Damages and Action in Response to Same — Patrick Lindner, General Counsel & Tohn
Winkler, Walker Partners & Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session
The thirteenth order of Business was Status Update BES Gr and Storage Tank Preload and Action
in R s once to Same — Patrick General Counsel & John Winkler Walker Partners & Alan
Cockerell,, General Manager.
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session
The _fourteenth order of business was Guadalu a Project Wholesale Water Contract (s) — Patrick
Lindner, General Counsel.
Executive Session Recommended
President Greenwald deferred item fourteen to Executive Session.
The fifteenth of business was Gonzales County & Guadalupe County Carrizo and Wilcox Water Leases
and Prol2eM Purchases —Alan Cockerelb General Manager.
Executive Session Recommended
President Greenwald deferred item fifteen to Executive Session.
The sixteenth order of business was Executive Session called under Chapter 551 Government Code,
Section 551.071, to seek the advice of its attorney on legal matters, and Section 551.472, for deliberations
re ag rding real estate.
President Greenwald closed General Session at 2.47 PM
Executive Session was held from 2 :59 PM to 3:50 PM
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The seventeenth order of business was Consider and Take Action as Result of Agenda., Item Number
sixteen.
President Greenwald reopened General Session at 3:51 PM
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 eighteenth order of business was Consider and/or Action on questions and possible items to be
placed on the next agenda.
❖ The next board meeting was scheduled for Thursday, March 19, 2015 in the SSLGC Administrative
Building at 1:30 PM
❖ Modified T/O for Engineer Fees due to Pepper- Lawson delays — Walker Partners
❖ Chlorine Dioxide Trial T/O — Walker Partners
GCUWCD Rules
The nineteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:52 PM
MINUTES APPROVED THIS 19a` DAY OF MARCH, 2015.
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D-W'!L'Vnn PHIMJ: 3;
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Bob Pees, Assistant Secretary
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