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05-19-2016MINUTES OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS COUNTY OF GUADALUPE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION On this the 191h day of May, 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 Bob Pees Assistant Secretary Jim Fowler Ex- Officio Mayor Keil Ex- Officio and the following member(s) being absent: T. "Jake" Jacobs Secretary 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) John Kessel City Manager (City of Sehertz Dudley Wait Executive Director of Operations (City of Sehertz) Susan Caddell Director of Finance (City of Seguin) Patrick Lindner General Counsel (Davidson, Troilo, Ream & Garza) Felix Arambula San Antonio Water System (SAWS) Brandon Payne San Antonio Water System (SAWS) John Winkler Consultant (Walker Partners) Crockett Camp Consultant Bill Klemt Consultant /Hydrologist Billy Phenix Legislative Consultant 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 CA1 the Meeting tee 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. 1 o 7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM rcf The third order of business was of the Minutes for the Board Meeting held April 21, 2016 Assistant Secretary Pees made a motion to approve the April, 212016 minutes. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fourth order of business was Presentation of the General Manaar's Report Alan Cockerell, General Mannger 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 April was 39.8% of Gonzales County Underground Water Conservation District's (GCUWCD) monthly allowable. ➢ GCUWCD Manlhly Aleeli)U: The monthly meeting was held May 10, 2016; Mr. Cockerell attended. A copy of the agenda was included in the board packet. All items on the consent agenda passed. The District will host a public hearing on June 14, 2016 to receive input on GMA -13 Proposed Desired Future Conditions (DFCs) and Relevant Aquifer Designations (RADs). Motrltnrfjlg Well Meetix The meeting was held May 16, 2016, to discuss the installation of monitoring wells in the Carrizo outcrop to monitor the DFCs for Gonzales, Guadalupe and Caldwell counties. GCGCD Morz&,y Meelar�p The meeting was held May 13, 2016; 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. Region L /GMA- 13 /RWA ge 011 , The meeting was held May 5, 2016; Mr. Cockerell and Miss Briggs attended. A copy of the agenda was included in the board packet, as well as two TWDB presentations. There was a large amount of information in the first presentation. The main two points were as follows: ❖ The synchronization of the DFC process with the regional planning process ❖ A new interactive website for the state water plan The second presentation focused on the change from municipal to utility water planning. Thirteen positions on the planning group would expire this year, as indicated on the member list included in the board packet. The planning group authorized the administrator to solicit nominations to fill the vacancies by August 2016. 2of7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3 :42 PM rcf GAM-13: The meeting was held April 27, 2016; Mr. Cockerell and Miss Briggs attended the meeting in Pleasanton. A copy of the public comment form for the 90 day comment period was included in the board packet. ➢ CVLGC The CVLGC Board meeting was held April 28, 2016, 2016 at 9:00 AM in Schertz 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 May 25, 2016 at 5:30 PM in Cibolo with a workshop scheduled to follow at 6:30 PM. The fifth order of business was Approve DPC Unit Price /Annual Contract — Susan Caddell, Director of Finance & Alan Cockerell, General Manager ➢ Resolution # SSLGC R16 -07 — DPC Contract Mr. Cockerell advised a contract renewal was necessary. The City of Seguin bid out this chemical contract and DPC offered the lowest price. In accordance with the City of Seguin's Purchasing Policy, this contract must be approved by the SSLGC Board. Assistant Secretary Pees made a motion to approve Resolution # SSLGC R16 -07 — DPC Contract. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The sixth order of business was Presentation of Treasurer's Report — Susan Caddell, Finance Director & Alan Cockerell, General Manager a. Financial statements for the quarter ending March 31, 2016 Mrs. Caddell offered her report as follows: Attached were the financial reports for the six months ended March 31, 2016. 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, were the comparative statement for the SSLGC Operating Fund, as well as the working capital chart. Mrs. Caddell reviewed the balance sheet for the SSLGC funds. The first column was for the Operating Fund. This fund consisted of cash and investments of $3,946,530.30. The second column was for the balance of the bonds that was issued for the purchase of the Booth property. There was a balance of cash and investments of $38,662.93. The third column was for the Interest and Sinking Fund. The cash and investment balance in that fund was $854,134.42, with receivables of $319,114.44. The fourth column was for the Repair and Replacement Fund. The cash and investment balance was $6,735,853.25. The fifth column was for the Future Development Fund. The cash and investment balance was $1,518,259.24. The sixth column was for the Impact Fund. The cash and investment balance in that fund was $3,736,043.53. 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 $1,284,336.10. The eighth column was the 2010 Bond Fund. The cash and investment balance in that fund was $646,738.15. There remained $426,076.16 in outstanding purchase orders for that fund. 3 of 7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM ref Mrs. Caddell continued by the review of the income statement for the SSLGC funds. The first column was the Operating Fund. The net income before transfers was $1,298,864.85. After the budgeted transfers to the Repair and Replacement Fund and the Future Development Fund, the net income was $383,226.35. 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. That included the first bond payment in the amount of $3,356,781.25. The fourth column was for the Repair and Replacement Fund. The expenditures for Improvements other than Buildings was $1,703,786.12 for the cathodic protection project and $16,800 for engineering services for tank rehabilitation. The amount for Heavy Equipment was for the purchase of the vacuum truck. The fifth column was the Future Development Fund. The expenditure for $24,662.50 was for the parks master plan. The expenditure for $661,761.34 was for the purchase of the Parker property. The sixth column was the Impact Fund. For the year, SSLGC had received a total of $402,003 in impact fees. The eighth column was for the 2010 Bond Fund. ,Mrs. Caddell provided a report, with accounting of the expenditures of the bond funds since SSLGC had received the proceeds. The total column indicated a net loss of $154,533.42. As indicated earlier, the reports following the SSLGC Fund reports were those for the SAWS Funds. Mrs. Caddell advised that the Comparative Income Statement for the Operating Fund was towards the back of the report. Revenue had decreased by $567,898.42. That was largely due to the reduction in sales to SAWS. The revenue from the water sales to SAWS had reduced by $530,251.78. Consumption overall had increased by 10,497,000 gallons. Expenditures had increased by $496,327.60, with the largest being in professional services of $202,894.54 due to the landfill opposition. The net income before transfers decreased from last year by $1,064,226.02. Finally, Mrs. Caddell called attention to the working capital trend chart. Working capital had decreased since December 31, 2015, by $3,848,747. The first bond payment was made in January in the amount of $3,356,781.25. In addition, SSLGC was spending more funds from the Repair and Replacement Fund. Vice - President Dwyer made a motion to approve SSLGC's financial statements for the quarter ended March 31, 2016. Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. b. Investment report for the quarter ending March 31, 2016 Mrs. Caddell presented the Investment Report for January 1, 2016 through March 31, 2016. Interest earnings for the quarter ended March 31, 2016 were $ 20,056. Vice - President Dwyer made a motion to accept SSLGC's Investment Report for quarter ended March 31, 2016. Treasurer Hunt 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 March 31, 2016 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 January 1, 2016 through March 31, 2016, as indicated in the first column on the report, were $2,033,396.06. All categories were currently under budget. 4 of 7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM rcf In accordance with the MSA between SSLGC and the City of Seguin, The City requested reimbursement for the expenditures for the second quarter of FY2016 in the amount of $2,033,396.06. Vice - President Dwyer made a motion to approve the reimbursement to the City of Seguin in accordance with the Management Services Agreement of $2,033,396.06. Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The seventh order of business was SWIFT Funding - (Guadalupe Project) — Alan Cockerell, General Manager & Duane Westerman & Mark Mc6iney. SAMC O Mr. Cockerell advised that the application had been submitted and was deemed administratively complete. He noted that as they requested more specific information or documents, Staff would supply that data. Mr. Cockerell explained that the TWDB would expect a decision on which term SSLGC would looking for, whether it be the 20, 25, or 30 year term and this would need to be stated no later than June 15, 2016. He advised that Staff would consult with the Financial Advisor and the Advisory Committee to make that determination. The eighth order of business was SSLGC Construction Update — John Winkler, Walker Partners & Alan ockerell, General Manager Mr. Cockerell advised of the following: • Chlorine Dioxide (Task Order # 16) The Chlorine Dioxide system temporarily went down early Tuesday morning (May 10, 2016) during the electrical arc flash. The system was restored the following afternoon. Mr. Winkler plans to pull the filter headers for inspection within the next few weeks. • Cathodic Protect (Task Order # 17) Crews continue to work in the areas containing large amounts of concrete. Installation of the deep bed anodes should begin after 30 days. • Metal Tank Rehabilitation (Task Order # 20) Williams Paint & Sandblasting Co. continued the sand blasting of the metal tank at the Nixon Plant. Approximately half of the tank's exterior had been blasted. • WTP1 Upgrades (Task Order # 21) Demolition had begun in the plant's former caustic and potassium permanganate areas. The project was expected to be completed within in the next couple of weeks. • High Service Pump Controller Upgrade (Task Order # 22) Winkler nkler had approved the shop drawings. The final drawings had been sent back to the manufacturer to begin production. • SSLGC Park & Recreation Master Plan (Task Order # 19) SSLGC Staff met with David C. Baldwin, Inc. on May 10, 2016. A revised Phase 1 Master Plan was expected to be presented at the July 21, 2016 board meeting. The ninth order of business was Cibolo Relocation of the 36 inch Pipeline - 1ohDV1iinkler, Walker Partners & Alan Cockerell, General Manager Mr. Cockerell advised that Staff was working with the City of Cibolo and their Engineers. The City of Cibolo hoped to have an agreement by the June 16, 2016 SSLGC board meeting. The tenth order of busines was Legislative Update Billy Phenix, Legislative Consultant & Alan Cockerell, General Manager Counselor Lindner requested that this agenda item be deferred to Executive Session. 5 of 7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM rcf President Greenwald deferred item ten to Executive Session. The eleventh order of business was Post Oak Clean Green, Inc. (Landfill) — Patrick Lindnet, 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 Contracts) & Well Permit(s) -- 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 Le' and Proper1y Purchases Alan Cock rell General Man er 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 OMrati_ons- Schertz Executive Session Recommended President Greenwald deferred item fourteen to Executive Session. The fifteenth order of b siness was Executive Session called under Chax}ter 551 GmTrnment Code, Section 551.071, to seek the_adAce of its attorney on legal matters, and Section 551.072, for deliberations reLyardinLy real estate. and Section -551.074, deliberations regardinLy a specific officer of empinyee President Greenwald closed General Session at 2:24 PM Executive Session was held from 2:37 PM to 3:35 PM The sixteenth order of business was Consider and Take Action as Result of Al;enda Item Number Fifteen President Greenwald reopened General Session at 3:35 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 Agenda Item #13 No action requested /No action taken Agenda Item #14 No action requested /No action taken 6of7 SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM ref The seventh 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, June 16, 2016 in SSLGC Administrative Building at 1:30 PM ➢ Approve Budget and Water Rates FY2016 -2017 The eighteenth order of business was Adjournment President Greenwald declared the meeting adjourned at 3:37PM MINUTES APPROVED THIS 23`d DAY OF JUNE, 2616. OR 7 of 7 Bob Pees, Assistant Secretary SSLGC MINUTES 05/19/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 6/22/2016 3:42 PM rcf