04-21-2016MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 21`t day of April, 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
Andrew Hunt
T. "Jake" Jacobs
Bob Pees
Jim Fowler
Mayor Keil
Vice - President
Treasurer
Secretary
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
City Manager
Rick Cortez
Assistant City Manager (City of Seguin)
Dudley Wait
Executive Director of Operations (City of Schertz)
Susan Caddell
Director of Finance (City of Seguin)
Jimmy Hooks
Assistant Public Works Director (City of Schertz)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Duane Westerman
Jeff Kuhn
Steven Seibert
Charles Kucherka
John Winkler
Crockett Camp
Financial Consultant (SAMCO)
Bond Counsel (Norton Rose Fulbright)
San Antonio Water System (SAWS)
P.E. (Frees and Nichols)
Consultant (Walker Partners)
Consultant
Bill Klemt
Consultant /Hydrologist
Billy Phenix
Legislative Consultant
Johnny Bierschwale
Citizen (City of Schertz)
Craig Hines
Canyon Regional Water Authority (CRWA)
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 1:30 PM
The second order of business was Public Comment
There were no public comments.
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The third order of business was of the Minutes for the Board Meeting held March 17, 2016
Assistant Secretary Pees made a motion to approve the March 17, 2016 minutes. Treasurer
Hunt 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 Man r
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 March was 45.1% of Gonzales County Underground Water
Conservation District's (GCUWCD) monthly allowable.
SAWS has committed to 2,500 ac -ft /yr for calendar year 2017.
➢ GCUWCD
Mart h_ y t1?ee &_-
The monthly meeting was held April 12, 2016; Mr. Cockerell attended. A copy of the agenda was
included in the board packet. All items on the consent agenda passed. The Board has scheduled a
workshop to discuss the designation of a new DFC for the District on April 21, 2016. Monitoring of
the outcrop continued to appear as the preferred method by the District.
GBRA and CRWA both submitted requests for minor permit amendments and copies of their
requests to the District were included in the board packet. No action was taken at the meeting. Mr.
Cockerell advised that the removal of the contiguous rule may have spurred this request.
➢ GCGCD
M(1wl)ly A!ieC lJ1Pr
The meeting was held April 14, 2016. Mr. Cockerell & Miss Briggs attended; a copy of the agenda
was included in the board packet. The District had proposed rule changes and had provided a draft
copy. SSLGC staff would review the proposed changes and make comments, as appropriate. The
proposed public hearing on the rule changes was postponed due to a disagreement among board
members.
➢ Region L /GMA- 13 /RWA
There was no meeting this month. The next meeting will be May 5, 2016 in San Antonio.
GMA -93:
The meeting was scheduled for April 27, 2016; Mr. Cockerell and Miss Briggs planned to attend the
meeting in Pleasanton. The new DFCs were expected to be approved at that meeting.
➢ CVLGC
The CVLGC Board meeting was held March 24, 2016 at 9:00 AM in Cibolo and a copy of the agenda
was included in the board packet. Work continues to execute water leases with landowners.
The next board meeting was scheduled for April 28, 2016 at 9:00 AM in Schertz
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The fifth order of business was Budget Amendment — Susan Caddell Director of Finance &
Alan Cockerell, General Manager
➢ Resolution # SSLGC R16 -04 — Budget Amendment
Mrs. Caddell advised that the SSLGC Operating Capital Fund Policy dictated that SSLGC would
maintain a three month operating balance. It was discussed and agreed at a previous board meeting
that once the annual audit was completed and accepted, the Board would consider a transfer of
retained earnings, to the SSLGC Repair /Replacement Fund, in the amount that exceeded that three
month policy requirement.
Vice - President Dwyer made a motion to approve Resolution # SSLGC R16 -04 — Budget
Amendment for the transfer of $400,000 from SSLGC retained earnings to the SSLGC
Repair/ Replacement Fund. Assistant Secretary Pees seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
The sixth Qrder of business was CONSIDERATION AND APPROVAL OF A
RESOLUTION REQUEaING FINANCIAL ASSISTANCE FROM THE FOLLOWING
TEXAS WATER DEVELOPMENT BOARD PROGRAMS: (1) STATE WATER
IMPLEMENTATION FUND FOR TEXAS IN AN ESTIMATED AMOUNT OF
$36,000,000 AND 2 TEXAS WATER DEVELOPMENT BOARD L AN
PARTICIPATION IN AN ESTIMATED AMOUNT OF $30,500,000, _BOTHFOR THE
PURPOSE OF PLANNING DESI-GMNG, AND CONSTRUCTING UTILITY SYSTEM
IMPROVEMENTS IN ACCORDANCE WITH THE IMPLEMENTATION OF THE
STATE WATER PLAN; AUTHORIZING THE SCHER'TZ ISEGUIN LOCAL
GOVERNMENT CORPORATION'S CO- FINANCIAL ADVISORS, BOND COUNSEL,
AND ENGINEERS TO COORDINATE THE SUBMISSION OF THE APPLICATION
TO THE TEXAS WATER DEVELOPMENT BOARD; AND OTHER MATTERS IN
CONNECTION THEREWITH — Alan Cockerell, General_Manager & Duane Westerman &
Mark Mcliney, SAMCO
➢ Resolution # SSLGC R16 -05.
Mr. Cockerell advised that the application submission deadline was May 11, 2016. He noted that this
submission does NOT obligate SSLGC to the funding agreement. Mr. Cockerell anticipated that the
funding agreement would be presented in August/ September 2016 time frame. At that point SSLGC
would review and make the determination whether or not to participate. Mr. Kuhn advised that both
of the cities, in addition to SSLGC, would be required to take formal actions regarding the funding
agreement, as the SWIFT agreement would obligated them, as well. Mr. Westerman explained that
they were all working on rate studies and gathering additional information to offer more data and
figures to the Board and City Councils which would allow for a more informed decision. The action
being requested under this agenda item was for the Board to give permission for SSLGC to submit
the application for the funding.
Assistant Secretary Pees advised that he had three points he would requested be considered prior to
the agreement to accept the funding:
1.) Establishing definite water rates for Guadalupe Project water
2.) Consider the Gonzales Project and Guadalupe Project as two separate projects and treat
them as such on rate making and other matters
3.) Discuss expectations of CVLGC as it relates to treatment and transportation of their water
and their project
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Vice - President Dwyer made a motion to approve Resolution # SSLGC R16 -05. Treasurer
Hunt seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
The seventh order of business was CONSIDERATION AND APPROVAL BY THE BOARD
OF DIRECTORS OF THE SCHERTZ/SEGUIN LOCAL GOVERNMENT
CORPORATION APP iNTING SAMCO CAPITAL MARKETS. INC., AS ITS
FINANCIAL ADVISOR AND NORTON ROSE F LBRIGHT US LLP AS ITS B D
COUNSEL, WITH RESPECT TO TEXAS -WATER DEVELOPMENT BOARD'S STATE
WATER IMPLEMENTATION FUND FOR TEXAS PROGRAM, AND AUTHORIZING
THE GENERAL MANAGER TO EXECUTE THE NECESSARY ENGAGEMENT
AGREEMENTS WITH THESE PROFESSIONALS — Alan Cockerell, General Manager &
Duane Westerman & Mark Mclniney, SAMCO
➢ Resolution # SSLGC R16 -06
The SSLGC Board approval of this resolution would authorize the appointments of SAMCO Capital
Markets, Inc. as Financial Advisor and Norton Rose Fulbright, LLP as Bond Counsel, with respect to
the TWDB SWIFT program and authorize the General Manager to sign the necessary Engagement
Agreements with the above named professionals.
Assistant Secretary Pees made a motion to approve Resolution # SSLGC R16 -06. Secretary
Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
The eighth order of business was SSLGC Construction Update — John Winkler, Walker
Partners & Alan CockerelI, General ManaMt
Miss Briggs advised of the following:
* Chlorine Dioxide (Task Order # 16)
The system was placed online on March 8, 2016 and was expected to continue for 45 -60 days. Mr.
Winkler will inspect the headers during that time to determine if it has been successful.
* Cathodic Protect (Task Order # 17)
There were three components remaining to be bonded. One of the air release valves, where there was
a large amount of concrete underneath the original vaults, and two bends where there was a
significant amount of concrete on top of the pipeline. There were three areas where the joint was
directly beneath a road /driveway and was not encased. SSLGC has been working on solutions to the
issues.
Metal Tank Rehabilitation (Task Order # 20)
Williams Paint & Sandblasting had begun sandblasting the tank at the NWTP.
* WTP1 Upgrades (Task Order # 21)
SSLGC had requested proposals from contractors on March 24, 2016 for the SSLGC WTP Former
Caustic Rooms Demolition Project. A pre - proposal conference was held April 6, 2016 with proposals
being due April 14, 2016. There were three submissions for the project. The lowest priced proposal
was from Roblesl, LLC for $22,700. Staff planned to proceed with this contractor and demolition
project.
* High Service Pump Controller Upgrade (Task Order # 22)
Mr. Winkler was reviewing the shop drawings for the fabrication of materials.
* SSLGC Park & Recreation Master Plan (Task Order # 19)
Mr. Baldwin continues to work on a revised Master Plan design. Mr. Winkler had begun working on
an enlargement of the Phase 1 lake area.
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The ninth order of business was Cibolo Relocation of the 3G inch Pipeline — John Winkler,
Walker Partners & Alan Cockerell, General Manager
Mr. Cockerell advised that he had not received any official plan from the City of Cibolo. Mr. Winkler
maintained that he recommended SSLGC pipeline be relocated as part of this project.
The tenth order of business was Legislative Update -- Sill y Phenix, Legislative Consultant &
Alan Cockerell, General Manager
Counselor Lindner requested that this agenda item be deferred to Executive Session.
President Greenwald deferred item ten to Executive Session.
The eleventh order of business was Post Oak Clean Green, Inc. (Landfill) — Patrick Lindner,
General Counsel & john Winkler, Walker Partners
Executive Session Recommended
President Greenwald deferred item eleven to Executive Session.
The twelfth order of business was Guadalupe Project Wholesale Water Contract(s) & Well
Permito) — Patrick Lindner, General Counsel &Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session.
The thirteenth order of business was Gonzales County & Guadalupe County Carrizo and
Wilcox Water Leases and Property Purchases —Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session.
The fourteenth order of business was General Manager's Evaluation — Dudley Wait,
Executive Director of Operations- Schertz
Executive Session Recommended
President Greenwald deferred item fourteen to Executive Session.
The fifteenth order of business was Executive _Session called under Chanter 551 Government
Code, Secti n 551071, to Seek the advice of its attorney on legal matters, and Section 551072,
for deliberations regarding real estate, and Section 551.074, delibera 'ons regarding a specific
officer of employee
President Greenwald closed General Session at 2:05 PM
Executive Session was held from 2:18 PM to 3:04 PM
The sixteenth order of business was Consider and Take Action as Result of Agenda Item
Number Fifteen
President Greenwald reopened General Session at 3:05 PM
Agenda Item #10
No action requested /No action taken
Agenda Item #11
No action requested /No action taken
Agenda Item #12
No action requested /No action taken
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Agenda Item #13
No action requested /No action taken
Agenda Item #14
No action requested /No action taken
The seventh order of business was Consideration andlor_ Action _on anestinn5 and passible
items to be placed on the next agenda
➢ The next board meeting was scheduled for Thursday, May 19, 2016 in SSLGC
Administrative Building at 1:30 PM
➢ General Manager Evaluation
➢ Relocation of the pipeline — Cibolo (possible Task Order for relocation)
The eighteenth order of business was Adjournment
President Greenwald declared the meeting adjourned at 3:06PM
MINUTES APPROVED THIS 191h DAY OF MAY, 2016.
W,
T. "Jake" Jacobs, Secretary
'r
B& Pees, Assistant Secretary
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