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02-18-20163 MINUTES OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS GOVERNMENT CORPORATION On this the 18`" day of February, 2016 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 Vice - President Andrew Hunt Treasurer T. "Jake" Jacobs Secretary Bob Pees Assistant Secretary Jim Fowler Ex- Officio Mayor Keil 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 City Manager (City of Seguin) Dudley Wait Executive Director of Operations (City of Schertz) Susan Caddell Director of Finance (City of Seguin) Sam Willoughby Public Works Director (City of Schertz) Jimmy Hooks Assistant Public Works Director (City of Schertz) Richard Lindner General Counsel (Davidson, Troilo, Ream & Garza) Rene Gonzalez San Antonio Water System (SAWS) John Winkler Consultant (Walker Partners) Crockett Camp Consultant Bill Klemt Consultant /Hydrologist Billy Phenix Legislative Consultant Dan Jackson Rate Consultant (WiUdan Financial) Johnny Bierschwale Citizen (City of Schertz) Emery Gallagher Water Utility Manager (City of Seguin) Alan Cockerell General Manager (SSLGC) Amber Briggs Assistant General Manager (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 1:32 PM The second order of-business was Public Comment President Greenwald introduced Mr. Andrew Hunt as the new SSLGC Director from the City of Schertz. There were no public comments. 1of9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORTGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM rcf The third order of business was of the Minutes for the Board Meeting held January 21 2016 Secretary Jacobs made a motion to approve the January 21, 2016 minutes, with the administrative correction in regards to Agenda Item # 14 (move this agenda item below the list of resulted action items from Agenda Item # 13). Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. _The fourth order of business was Officer Elections Mr. Cockerell advised that there was a vacancy for Treasurer, which was due to the appointment of a new director. Vice - President Dwyer made a motion nominate Director Hunt as Treasurer. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fifth order of business was Presentation of the General Manag&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 December was 46.9% of Gonzales County Underground Water Conservation District's (GCUWCD) monthly allowable. SAWS Tier -2 water production was down. The SSLGC system is not designed to prevent Tier -2 production. The SSLGC operators are working to ensure that there is minimal production of Tier -2 water. ➢ GCUWCD Mo/l/b/ meaing: The monthly meeting was held February 9, 2016; Mr. Cockerell attended. A copy of the agenda was included in the board packet. The board discussed designating a new DFC for the district and requested additional modeling by the GMA -13 consultant to assist in that effort. Monitoring of the outcrop appears to be the preferred method by the District. GCUWCD has hired a part time technician, Jim Benedict, to assist with water level measurements and other tasks, as necessary. On February 5, 2016, Mr. Benedict inspected all twelve SSLGC wells to verify that all flow meters are in operation and are consistent with monthly reports submitted to the district. No items of concern were identified. ➢ GCGCD j'1�fo / Mec in -• The monthly meeting was held February 11, 2016; Mr. Cockerell attended. A copy of the agenda was included in the board packet. Springs Hill WSC's application for renewal of its production permit was approved. A copy of the application was included in the board packet. There was much discussion about the District's recommendation to GMA -13 regarding DFC updates. It appears that the District supports an increase of production in the Carrizo /Wilcox Aquifer. 2of9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM ref ➢ Region L /GMA- 13 /RWA Region L: The meeting was held February 11, 2016 at SAWS. Mr. Cockerell and Miss Briggs attended. The following officers were elected: Chairman — Suzanne Scott, River Authorities Vice Chairman — Tim Andruss, Water Districts Secretary — Gary Middleton, Municipalities At Large — Adam Yablonski, Agriculture ® At Large — To be filled later Black & Veatch was selected as the preferred consultant for the 5th round of regional planning. A number of positions on the planning group have terms which expire this year. Solicitations for those positions are to be approved at the next meeting in May 2016. A current list of members and term expiration was included in the board packet. The next meeting was scheduled for May 5`h in San Antonio. GAM-13: The meeting was January 22, 2016; Mr. Cockerell and Miss Briggs attended this meeting in Pleasanton. A copy of the agenda was included in the board packet. Groundwater districts were instructed to provide feedback regarding establishment of updated DFCs. The next meeting was scheduled for February 25, 2016 in Pleasanton. ➢ CVLGC The CVLGC Board meeting was held January 28, 2015 at 9:00 AM in Cibolo and a copy of the agenda was included in the board packet. Work continues to finalize a lease template. The next board meeting was scheduled for February 25, 2016 at 9:00 AM in Schertz The sixth order of business was Presentation of Treasurer's Report — Susan Caddell, Finance Director & Alan Cockerell General Mana ee a. Financial statements for the quarter ending December 31, 2015 Mrs. Caddell offered her report as follows: Attached were the financial reports for the three months ended December 31, 2015. The first three pages were the balance sheets for all the SSLGC funds. The two pages following the balance sheet were the income statements for all the SSLGC funds. Finally, following those statements were the balance sheet and income statement for the SAWS funds. Behind those, was the comparative statement for the SSLGC Operating Fund, as well as, the working capital chart. First, was a review the balance sheet for the SSLGC funds. The first column was for the Operating Fund. That fund consists of cash and investments of $3,836,938.37. The second column was for the balance of the bonds which were issued for the purchase of the Booth property. There was a balance of cash and investments of $38,642.31. The third column was for the Interest and Sinking Fund. The cash and investment balance in that fund was $1,795,394.98 with receivables of $1,561,415.57. The fourth column was for the Repair and Replacement Fund. The cash and investment balance was now $7,415,639.84. The fifth column was for the Future Development Fund. The cash and investment balance was $1,318,363.41. The sixth column was for the Impact Fund. The cash and investment 3 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM rcf balance in this fund was $4,087,251.32. Some of the cash balance in that fund would be used to help offset the debt service payments the corporation would need to make up, without SAWS purchasing the excess water. The seventh column was for the Reserve Fund. The required amount to maintain in the Reserve Fund according to bond covenants was $1,275,621.10. The cash and investment balance in that fund was $1,283,255.43. The eighth column was the 2010 Bond Fund. The cash and investment balance in that fund was $1,165,427.29. There remained $806,291.00 in outstanding purchase orders for that fund. In review of the income statement for the SSLGC funds, the first column was the Operating Fund. The net income before transfers was $841,553.01. After the budgeted transfers to the Repair and Replacement Fund and the Future Development Fund, the net income was $383,733.76. The second column was income statement for the bond proceeds and expenditures from the bonds issued in January of 2015. The third column was I &S Fund. No bond payments had been made yet, so the only expense was for fiscal agent fees. The fourth column was for the Repair and Replacement Fund. The expenditure for Improvements other than Buildings was $759,392.20 for the cathodic protection project and $13,500 for engineering services for tank rehabilitation. The amount for Heavy Equipment was for the purchase of the vacuum truck. The fifth column is the Future Development Fund. The expenditure for $19,687.50 was for the parks master plan. The expenditure for $661,412 was for the purchase of the Parker property. The sixth column was the Impact Fund. For the year, we had received a total of $228,890 in impact fees. The eighth column was for the 2010 Bond Fund. Provided was a report, at the back, with an accounting of the expenditures of the bond funds since we received the proceeds at the board meeting. The total column indicates net income of $1,681,607.08. As indicated earlier, the reports following the SSLGC Fund reports were those for the SAWS Funds. The Comparative Income Statement for the Operating Fund were located towards the back of the report. Revenue had decreased by $90,106.99. That was largely due to Universal City taking very little water. Consumption overall had increased by 236,186,000 gallons. After December 31, SAWS would no longer be purchasing our excess water. In addition, Converse's contract expired November 30, 2015. Expenditures have increased by $292,615.91, with the largest being in professional services of $152,349.83 due to the landfill opposition. The net income before transfers decreased from last year by $382,722.90. Finally, was the working capital trend chart. Working capital had increased since September 30, 2015, by $1,713,598. That usually occurs the quarter prior to the bond payments from the contributions from the participants for these payments. Secretary Jacobs made a motion to approve SSLGC's financial statements for the quarter ended December 31, 2015. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. b. Investment report for the quarter ending December 31, 2015 Mrs. Caddell presented the Investment Report for October 1, 2015 through December 31, 2015. Interest earnings for the quarter ended December 31, 2015 were $ 10,225. Vice - President Dwyer made a motion to accept SSLGC's Investment Report for quarter ended December 31, 2015. Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. 4 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM rcf c. Reimbursement to the City of Seguin in accordance with the Management Services Agreement for the quarter ending December 31, 2015 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, 2015 through December 31, 2015, as indicated in the first column on the report, were $2,280,310.64. This being the first quarter of the fiscal year, the second column is the same as the first column. All categories were currently under budget. In accordance with the MSA between SSLGC and the City of Seguin, The City requested reimbursement for the expenditures for the first quarter of FY2016 in the amount of $2,280,310.64. Assistant Secretary Pees made a motion to approve the reimbursement to the City of Seguin in accordance with the Management Services Agreement of $2,280,310.64. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The seventh order of business was SSLGC Water Rate an $ et FY2 1 - 2017 -- Alan Cockerell & Dan Jackson, ViVilldan Financial S,grvices & john Winkler, Walker Partner' Mr. Jackson gave the following Power Point presentation: Water Rate Plan NOW Volnmo $can nnop Board Presentation IVWILLDAN I Ewranitit .Can Felonry 102070 al y�wiunwl s•x xxn +�^. .•nwaY.f+at +a— dLaw.Idy.f. 30' 1W- now wn.aeiad ea.17. u—fel W. t.. Cake a!N GaaWU.pa systems e Ceusea rapc0an in GUaOelupetl�l semceantl nskpmnmm • Guadalupe project to complete one year later. in 2019 ♦ Co— that SAWS will net purchase —se water in future Y... • Fallowing pages will illustrate Scenario 2- impact ornon- purch,w of —as Water by SAWS d f in - v✓wnuzv+I Emmnnwn v +w�x.n•aWSrlOfaleee dr..w.lda.l. rNwiuwxl E��'�.vwx a.x.x vp.� ¢Arxuv'wuccrrocxxvae .r�..Ara�.�r• +.ser..xMe o. Vl,—I v✓lnun.wl E r.e.a ___ .lLA..a.1 dy.Ja 7 --a—.Teo—ea +tar.. e.x M1P are mn . pn w yyw�uowlE�..exxx .rw. .�xa ¢n..as...~..tlx. roexr d.Aw. ♦dy.J. nilllllll d.. ♦dy.r. .y�Ht_ovs,I Ea,..,.: P_ a r.¢..axw- n-a..roowx.. P, 5 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM ref a {dy.rx The eighth order of business was Water Level Measurements — Bill Klemt, Cons ultant / Hyd rope o logis t Mr. Klemt summarized his report as follows: Carrizo water level declines of 50 to 60 feet, for the period Aug- Sept /02 — September 2015, have been mapped in the SAWS, SSLGC, and Nixon well field areas of Gonzales County. This large area of water -level decline was encompassed by the 50 foot drawdown contour. Water levels in the Wilcox and Queen City aquifers appear to be recovering, at least over the short term. Water levels in the Queen City indicate, over a 15 year period, a very small decline. In his opinion there does not appear to be a hydraulic connection between the Carrizo, Wilcox, Queen City, or Sparta aquifers. The ninth order of business was Consider Nominations Submitted for Naming the SSLGC Facilities — Alan Cockerell, General Mang= ➢ Resolution # SSLGC R16- 1 The Board approved a naming policy November 19, 2015, with the intent to review the submissions annually but with no dedicated date defined as the review date. There is no way of knowing when submissions would be made. There were two proposals, one from each of the City of Schertz and Seguin. The City of Schertz requested that the New SSLGC High Service Booster Pump Station building be named in honor of the late Mayor Baldwin. The City of Seguin requested that the New Terminus 3 building at the Seguin Water Plant be named in honor of the late Councilman Rodger Weyel. Staff request approval of Resolution # SSLLGC R16 -01 to honor each of the Cities' requests. Assistant Secretary Pees made a motion to approve Resolution # SSLGC R16 -01. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The tenth order of business was SWIFT Funding (Guadalupe Project) — Alan Cockerell, [:eneral Manager & Duane Westerman, SAMCU & Mark M °L.iney, SAMCO Mr. Cockerell advised that this was a standing agenda item and at this time there was no action requested. The eleventh order of business was SSLGC Cgnstruction Update — John Winkler Walker Partners & Alan Cockerell, General. Mana er Chlorine Dioxide (Task Order # 16) SSLGC is in the process of updating its monitoring plan to submit to TCEQ for approval. Additional installation of SCADA connections also have to be completed before the system is placed online. It is anticipated that SSLGC will start this system up in the next several weeks. 6of9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/201611:35 AM rcf da.wlJy.L d IJyW. d IJ.s..f� NxAeesdoost �,.lv qs: a. 1llw _pna -at l! a so hWilyumeswWooaaarl are retlucetl msl fvv l,Op] when Mr I,= r �m s�ls r i.. nv m m •.r �m m � n w r w w gallons will increase it increase wnr Impad of SAWS non - purchase of T2 water is toi ' —. — ene..•r.uwo. In n nw rrNl "r rngrael ar0 dlpa [uINNApill svArenln (IaCk dnp SAWS TW I j rm •v nr nw in ru in • Impad of SAWS non - purchase of G,,d,lupe water is to _ signif ntly Increase operating and debt service cost for m 5u0,°°' ,1O""' •P1A1 re —rengc alomer(s) p/rwuoaHl �mome�, Frenq lr.r..rs+na.r v✓wmn�wla�mn� ..w • swww••>iwr,..enw.r v✓,wulur�l aoonw a., re• r mr.w.... "--- e... -a The eighth order of business was Water Level Measurements — Bill Klemt, Cons ultant / Hyd rope o logis t Mr. Klemt summarized his report as follows: Carrizo water level declines of 50 to 60 feet, for the period Aug- Sept /02 — September 2015, have been mapped in the SAWS, SSLGC, and Nixon well field areas of Gonzales County. This large area of water -level decline was encompassed by the 50 foot drawdown contour. Water levels in the Wilcox and Queen City aquifers appear to be recovering, at least over the short term. Water levels in the Queen City indicate, over a 15 year period, a very small decline. In his opinion there does not appear to be a hydraulic connection between the Carrizo, Wilcox, Queen City, or Sparta aquifers. The ninth order of business was Consider Nominations Submitted for Naming the SSLGC Facilities — Alan Cockerell, General Mang= ➢ Resolution # SSLGC R16- 1 The Board approved a naming policy November 19, 2015, with the intent to review the submissions annually but with no dedicated date defined as the review date. There is no way of knowing when submissions would be made. There were two proposals, one from each of the City of Schertz and Seguin. The City of Schertz requested that the New SSLGC High Service Booster Pump Station building be named in honor of the late Mayor Baldwin. The City of Seguin requested that the New Terminus 3 building at the Seguin Water Plant be named in honor of the late Councilman Rodger Weyel. Staff request approval of Resolution # SSLLGC R16 -01 to honor each of the Cities' requests. Assistant Secretary Pees made a motion to approve Resolution # SSLGC R16 -01. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The tenth order of business was SWIFT Funding (Guadalupe Project) — Alan Cockerell, [:eneral Manager & Duane Westerman, SAMCU & Mark M °L.iney, SAMCO Mr. Cockerell advised that this was a standing agenda item and at this time there was no action requested. The eleventh order of business was SSLGC Cgnstruction Update — John Winkler Walker Partners & Alan Cockerell, General. Mana er Chlorine Dioxide (Task Order # 16) SSLGC is in the process of updating its monitoring plan to submit to TCEQ for approval. Additional installation of SCADA connections also have to be completed before the system is placed online. It is anticipated that SSLGC will start this system up in the next several weeks. 6of9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/201611:35 AM rcf • Preload The tank is back in service and Preload has completed its work. There is a specific agenda item to close out this contract. • Cathodic Protect (Task Order # 17) The contractors continue progress along the pipeline. They have completed bonding of joints along the 42 inch pipeline and the 30 inch pipeline to Seguin. Repairs have been conducted at several locations where minor corrosion has occurred from the old clips, which were welded to the top of the metal pipe couplings. This repair activity was anticipated to continue for the new couple of weeks. An agreement had been reached with the City of Seguin on repair of Sutherland Springs Road. A separate item was on the agenda for this issue. • Metal Tank Rehabilitation (Task Order # 20) Contract documents had been received by Williams Painting & Sandblasting, Inc for execution. A pre - construction meeting would be scheduled later this month. • WTP1 Upgrades A follow -up meeting with the architect was conducted on February 3, 2016 to review initial concept designs for this project. A separate demolition plan was being developed to simplify the construction activity. An update will be given at the board meeting. 0 High Service Pump Controller Upgrade (Task Order # 22) Proposals were received and a separate item was on the agenda to approve a contractor for that project. • SSLGC Park & Recreation Master Plan (Task Order # 19) A follow -up meeting was conducted on January 26, 2016 with Baldwin and Associates. Board inputs were discussed and they were taken on a tour of the GBRA Nolte Island facility. It was suggested that SSLGC would prefer to have similar pavilion and facilities, with the addition of a lake. Work was progressing on the design for the largest lake possible that the area will allow (44.5 acres). John Winkler had completed preliminary calculations, which suggested the SSLGC discharge water should be able to keep a sufficient water level in the reservoir. The twelfth order of business was Approve h n e Order # 1 and Final Payment t-Q Preloa r he Ground Storage Improvements Contract — Jnhn Winkler Walker Partners &Alan Cockere_ ll, General Manager ^ ➢ Changg Order # 1-- Preload Vice - President Dwyer made a motion to approve Change Order # 1— Preload (for a decrease in the amount of $10,751.07) and provide final payment on the contract. Treasurer Hunt seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The thirteenth order of business was Approve Contractor for SSLGC WTP Soft Starts — John Winkler Walker Partners & Alan Cockerel! General Mana r Assistant Secretary Pees made a motion to approve Alterman, Inc. (Resolution # SSLGC R16- 02), which would be funded by SSLGC Repair and Replacement account, in the amount of $360,000. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fourteenth order of business was Approve Interlocal Agreementbetween SSLGC and the i of Seguin — Alan Cockerefl, General Manage 7 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM rcf The agreement is a mutual agreement between SSLGC and the City of Seguin regarding the resurfacing of Sutherland Springs Road and repair of Water Tower Road due to the installation of the Cathodic Protection System. The City of Seguin's City Council approved this agreement at the February 2, 2016 city council meeting. Vice - President Dwyer made a motion to approve the Interlocal Agreement between SSLGC and the City of Seguin. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fifteenth order of business was Approve Change Order # 1 - Field Construction - Cathodic Protection System - John Winkler Walker Partners & Alan Cockerell, General Manager This change order was to include the change in the contract to reflect the Sutherland Springs Road and Water Tower Road project. Assistant Secretary Pees made a motion to approve Change Order # 1 - Field Construction for an increase in the amount of $78,372.27 which will be funded by the 2010 Bond fund. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The sixteenth order of business was Cibolo Relocation of the 36 inch Pipeline - John Winkler, Walker Partners & Alan Cockerell, General Manager Mr. Cockerell advised that this is a standing agenda item. No action was requested. The seventh order of business was Legislative Update - Billy Phenix, �Lepisl ive Consultant & Alan Cockerell, General Manager Counselor Lindner requested that this agenda item be deferred to Executive Session. President Greenwald deferred item seventeen to Executive Session The eighteenth order of business was Post Oak Clean Green, Inc. (Landfill) - Patrick Lindner Geng-ral. Cuunsel & John Winkler, Walker Partners Executive Session Recommended President Greenwald deferred item eighteen to Executive Session The nineteenth order of business was Guadalupe Project Wholesale 'r4'±Jater Contract(s) & Well Permit (s) - Patrick Lindner General Counsel & Al n o kerell General Manage Executive Session Recommended President Greenwald deferred item nineteen to Executive Session The twentieth order of business was Gonzales County & Guadalupe County Carrizo and Wilcox Water Leases and Propegy Purchases - Alan Cockerell, General Manager Executive Session Recommended President Greenwald deferred item twenty to Executive Session The en -first order f business was Executive Session called under Chapter 551 Government Code, Section 551071, to seek the advice of its attorney on legal matters, and Section 551.072, far deliberations regarding real estate President Greenwald closed General Session at 3:35 PM Executive Session was held from 3:50 PM to 4:15 PM 8 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 3/16/2016 11:35 AM rcf The twenty- second order of business was Consider and T_ e Action as Result f Agenda Item Number Twenty -one President Greenwald reopened General Session at 4:16 PM Agenda Item #17 No action requested /No action taken Agenda Item #18 No action requested /No action taken Agenda Item #19 No action requested /No action taken Agenda Item #20 No action requested /No action taken The twenty_ third 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 Thursday, March 17, 2016 in SSLGC Administrative Building at 1:30 PM ➢ Depository Bank ➢ Walker Partner Task Order for the Discharge Permit Renewal ➢ Annual Audit The twenty- fQurh order of business was Adjournment President Greenwald declared the meeting adjourned at 4:18PM MINUTES APPROVED THIS 17`h DAY OF MARCH, 2016. T. "Jake" Jacobs, Secretary 9 of 9 SSLGC MINUTES 02/18/2016 (9 Pages) Date /Time Printed: 3/16/2016 11:35 AM rcf OR Bob Pees, Assistant Secretary SIGNED ORIGINAL(S): 1