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06-23-2016MINUTES OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS COUNTY OF GUADALUPE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION On this the 23 " day of June, 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 Rick Cortez Assistant City Manager (City of Seguin) Dudley Wait Executive Director of Operations (City of Schertz) Jimmy Hooks Assistant Public Works Director (City of Schertz) Susan Caddell Director of Finance (City of Seguin) Patrick Lindner General Counsel (Davidson, Troilo, Ream & Garza) Kelley Vickers Executive Administrator (GCGCD) Betsy Johnson General Counsel (Davidson, Troilo, Ream & Garza) Steven Siebert San Antonio Water System (SAWS) Felix Arambula San Antonio Water System (SAWS) Ben Benzaquen Financial Analysist (SAWS) Mark M`Liney Financial Consultant (SAMCO) Dan Jackson Water Rate Consultant (Willdan) John Winkler Consultant (Walker Partners) Crockett Camp Consultant Bill Klemt Consultant /Hydrologist Emery Gallagher Water Utility Manager (City of Seguin) Johnny Bierschwale Citizen (City of Schertz) Alan Cockerell General Manager (SSLGC) Amber Briggs Assistant General Manager (SSLGC) Shawn Shimek Water System 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 1:30PM. Iof7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM ref The second order of business was Public Comment There were no public comments. The third order of business was of the Minutes for the Beard Meeting held May 19, 2016 Assistant Secretary Pees made a motion to approve the May 19, 2016 minutes. Treasurer Hunt seconded the motion. Upon a vote being called, the motion carried by unanimous decision. Secretary Jacobs arrived after the vote on the May 19, 2096 minutes took place (1:33PM). The fourth order of business was Presentation of the General Manager's Report — Alan Cockerell General Manages 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 May 2016 was 53.3% of Gonzales County Underground Water Conservation District's (GCUWCD) monthly allowable. ➢ GCUWCD Public Hearin A public hearing to receive input on GMA -13 Proposed Desired Future Conditions (DFCs) and Relevant Aquifer Designations (RADs) was held June 14, 2016. The WPA presented a report from Rice University (Groundwater Availability Model Evaluation of Gonzales County, Texas); a copy of the report was included in the board packet. Mr. Klemt addressed the SSLGC Board and advised that it was his professional opinion that there was nothing in the report from Rice University that would assist in the process of determining DFCs. He noted that it was an "academic exercise ". Monthly Meeting The monthly meeting was held June 14, 2016; Mr. Cockerell attended. A copy of the agenda was included in the board packet. All items on the consent agenda passed. A report was provided by Daniel B. Stephens & Associates, Inc. regarding the evaluation of the request by CRWA to relocate five wells from the Brown Trust properties to Wells Ranch. The District requested an item be placed on the next agenda for the board to determine if the CRWA permit amendment request would be considered a major or minor amendment. The Board did not ask the same for the GBRA permit amendment request. Therefore, that amendment would be processed by the District Manager as a minor amendment, in accordance with District rules. The District has submitted a request for replenishment of the mitigation fund based on 2015 production and Mr. Cockerell advised that Staff had included that amount in the FY2016 -2017 SSLGC proposed budget. MonitoljUt IF I Meeting The meeting was scheduled for June 27, 2016, to continue to discuss the installation of monitoring wells in the Carrizo outcrop for the purpose of monitoring the DFCs for Gonzales, Guadalupe and Caldwell counties. SSLGC Staff planned to attend. The SSLGC FY2016 -2017 proposed budget 2of7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf included the funding for the drilling of two of the four wells, which were required as part of SSLGC's permits for Wells # 9 through # 12. GCGCD 11ablir 1 l errting� The public hearing was held on June 6, 2016; Mr. Cockerell and Miss Briggs attended. A copy of the notice was included in the board packet. The District voted to increase its permit fees to $0.10/1,000 gallons from the current $0.035/1,000 gallons which was a substantial escalation. This change was scheduled to take effect August 1, 2016. SSLGC made a request that the increase be a modest one. However, the Board indicated that it needed a more significant amount to meet financial obligations, due in large part to the cost of litigation related to the opposition of the landfill. Region L /GMA- 13 /RWA Region L. Vacancies on the Region L Board were addressed in SSLGC Agenda Item # 5. GALA -13: The public hearing was held June 6, 2016; Mr. Cockerell and Miss Briggs attended. A copy of the agenda was included in the board packet. ➢ CVLGC The CVLGC Board meeting and workshop were held May 25, 2016, 5:30PM and 6:30PM respectively in Cibolo. A copy of each of the agendas was included in the board packet. Work continues to execute water leases with landowners. The next board meeting was scheduled for June 23, 2016 at 9:OOAM in Schertz. Vice - President Dwyer arrived after the vote for the minutes and during the General Manager report (l:381'M) The fifth order of business was Approve Resolution in Support of Alan Cockerell to Fill Vacancy on the Region L Board — Alan Cockerell, General Manager ➢ Resolution # SSLGC R16 -08 — Alan CockercHftion L The Guadalupe County Commissioner's Court approved a resolution, which nominated Mr. Cockerell as the County Representative for Region L. Mr. Cockerell noted that the CVLGC Board had approved a resolution earlier today, June 23, 2016, at their board meeting in support of his nomination as well. Vice - President Dwyer made a motion to approve Resolution # SSLGC R16 -08 — Supporting Mr. Alan Cockerell as the nominee for the County Representative for Region L. Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The sixth order of business was Approve Annual &M BudLyet FY2016 -2017 — Alan Cockerell General Manager ➢ Resolution # SSLGC R16 -09 — Annual O &M Budget Mr. Cockerell recommended that Mr. Jackson make his presentation prior to the vote on this item. The Board agreed with the recommendation and Mr. Jackson presented his information in the form of a PowerPoint presentation. 3 of 7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf Treasurer Hunt made a motion to approve Resolution # SSLGC R16 -09 — Annual O &M Budget (FY2016- 2017). Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The seventh order of business was Approve Water Rates FY2016 -2017 — Dan Jackson, Willdan Financial Services & Alan Cockerelh General Man r ➢ Resolution SSLGC R16 -10 -- Annual WatQr Rates Mr. Jackson presented his information in PowerPoint as follows: FY 2017 Water Rate Plan Update Board Presentation ,,l/WILLDAN Economists.- June 232016 drw.1 dr1. .f.2..u. 1.M , t. • For years both SAWS and SSLGC have benefited from SAWS water purchases • Uncedamty of future SAWS Tier 2 purchases have led to significant challenges and reassessments regarding SSLGC's long -term financial forecast e Therefore SSLGC's rate plan must reflect the potential that future savings from SAWS purchases will not be realized F(WIL-D Ecaranatfcan Pigs 2 .&& wldy.2. w.... w.. rwww v..-•.N uw, w a..,. w. w•., r+r r." l.. I.. ?:sc -� �d .nm..._ay_ .M._ 4�5!. ! « +. _'rrt- r- r -rr] -_ _• C ...N. ..F+ -.l w1.. w.- IN w. w! nF.r ,aw ]ml -.. all •4 YlT •1! •SM +.a .la. ]en .,nn .r w w m n. nw nx .r ,v]a ]y, Ir ,.a wo r .>o .v •,� per. ,w n.n �WIl1A1N' Ecaavwis.can Pp. ) ]mx .s/ r]] Ow ON on a.s l0 ]. ar II.. 1R WRIDAN E_ cwn Pp•! :M• tiWarPmr• d....•e. d...2.. da.u•I dyrr. . sv u•,ms ,,,. ,,, • While phaseout of SAWS Tier pureheseswiN result in higher rates, the immediate impact has been mitigated due to several prudent managerial decisions by SSLGC: • Sq.Iw.M r.0,lcllPn n FY 2017 DuOp.] hom aeYW A]rMWI e] xu.nr SIh3]I. S51 • E-1N CO PiPOMhY.r 11.W d.M n 30 Peen wM 1—P•YI nW nNly ,,.. ],.•II Y.— "a n r ... • O.W..q Inp4Pwn.Mn ..I. m.v.. W 2021 ?/WILIDAN'. Ecdm+xe :.•�. 'Gigs E .. N/N1lL0.AN Emmnew can Pigs . MoKnoo Srs,ruowp 52h,00n,000 S]s,m0000 S1Q0PPA0P SS.000000 s ]ou 201e 2010 ]mo 2m1 ]o]) ]ms ]m. ems ]ms .OLFUIny ■C.pMal Wlby .OM- P". d.Aw Ady.L. • Following pages present revised forecast assuming elimination of SAWS T2 purchases In 2016 • Debt service estimates are based on following assumptions' A• SAWS Tnr 2 Nwn.NE. Se Spun wN SoP 2015 abl a Mw d.M flan Oumlak" PINMN 6Mr by 4-1MV e01a . N.N'E.Mf m OUWMp w'.. 601 WIE by SAWS T 2. S.M .W SeMa -a, TNr 2.wnwted Seh.nl Wy. 99% of row ,r.M..rY.. 4of7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM ref d.14.w 1dy«i- verly FrN rrnr,o /Yww M.un poll On rl n. �r n• •1 pwNH Ir1 wr u11 oY l an 1 On 4» l On ol] 1 9 r rm1 —i F —G —R —G ON+YMN hIPn -A 1 arfYe 0 3rrw 1 aww i 1r.H tr / 1yN 1r w «M MM11N0« 1 fY 1 111 1 as1 4 eft t ll.r Ir1s1� pw.p� .Mleru l --,U -n -ti -rt ONN Nr«u h14nMMi 1 11M.IN 1 rIMIM I 11errf 1 3H1.r1 I I1Nro IlrlrnA11p1 1 e 1 1 r/ ON 1 e1r 1 1M �WILIiAII!EClnmrla um 1 Pp•B1 d.Il.w 0 e.,-& • Due primarily to impending reductioniloss of SAWS Tier 2 water, additional rate adjustments recommended beginning October 2016 • FY 2011 budget reductions and debt schedules have worked to minimize the impact of phase out of SAWS Tier 2 water purchases e Full impact of Guadalupe protect not reflected until FY 2022 %1 VAu_; Ronarta._ Palls 13 SSLGC had not had a rate increase in five years. J.w..w 1 dyr14 flint %Nr %ill %1N0 %SNI ilae0rs aYAN a11tlM elarr latlw NMM OgA1 ON•11 Oa•r 0µ1l OWiO 111N111NlMe ONraly YN hrl7r NN OW f f BM 1 Oil } fpr } Ip } +r on on an n.�n,w �m nu ox ox oa = — ule ore oa Ov 0+0 01y 019 OM rw .___.Sf ____._Z� ___— S _____=N _____. ..._..141 DrIl.,sn3lgrMsA1 } 1 I . 1 - 1 . IN11111i liarlrly I1r1, hr l,Or N ow 1 oe2 s oar I urn I fors lo] I +H Lw«Lrw In 9n an on ou on AN Y..terwa l.Yrll I 111111 { $man B MINI 1. MM I VIII/ rf✓1 mo- Eowwr _ PFI 10 "MI "". ft R %rr — 01eP!,s rIr NNrY a1r.! ghA.re NeNr.'e CVMM OM11 ON V pµu _ Irft. gfvi NMa- i1r 1 OIw NYIMM 'NOON nw s oe I ter s ow s fors +m f n4 N. r YY YrNr MHlrsnAl 1 111 I lxl1 1 Z.". I LIAM I ;lyie Nrl Aw 1 Olw �M hr tOr ; 1 001 1 ON On On On rPn aYY/M 1r — iG iii pr nlr M111r1q 1 OMIN 1 N�LM Vj/r}5ul)IN Ewrerrucan Pp112 Secretary Jacobs made a motion to approve Resolution # SSLGC R16 -10 — Annual Water Rates (FY2016- 2017). Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The eighth order of business was SWIFT Punding (G_ upe Project) — Alan Cockerell, General Manager & Duane Westerman & Mark McLin y, SAMCO The closing date would be November 16, 2016. The term which was chosen was a 30 year term. TWDB was in the process of reviewing the submittals. It was determined that the Board would need to take action at their August 18, 2016 board meeting regarding the Funding Agreement. This would be an item placed on the August 2016 board meeting agenda. The ninth order of business was SSLGC Construction Update — John Winkler, Walker Partners & Alan Cockerell, General Manager Mr. Cockerell advised of the following: • Chlorine Dioxide (Task Order # 16) 5 of 7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf er A J.1..IM fl ill %1011 flir fl2Y0 flfNl aNAM NNNw Ms«M eM1<IA. YY1a Wiq O/,r«s1lM M 1 OrN au I or I . f r f oq on 1w f r 1 en wlw a«, r,..•P.Ym ob 9!e on 9:a eie ors el1H a]lwm _ rtl1 —ii on ilI li o_r fO4 3} 314 YN YwwIYOl/wr.p I 1 1 1 I - Yr1ir ONrrwl M M 411001 JYI OE Dn I 091 ] 011 on ] 1 ar] +10 On On rle,lp.rm Or16HWm 015 Ot9 — 019 rtl1 II1 — � -� -1.A ��� -� -1 111 1N ___0IV 1■ !N Wt111rY M13..wr«J s IN%• 1 IOf,MI } 1111r B. IN/11 } rlNr q wILIOAN l ECma�.1 wm PN 11 d.Il.w 0 e.,-& • Due primarily to impending reductioniloss of SAWS Tier 2 water, additional rate adjustments recommended beginning October 2016 • FY 2011 budget reductions and debt schedules have worked to minimize the impact of phase out of SAWS Tier 2 water purchases e Full impact of Guadalupe protect not reflected until FY 2022 %1 VAu_; Ronarta._ Palls 13 SSLGC had not had a rate increase in five years. J.w..w 1 dyr14 flint %Nr %ill %1N0 %SNI ilae0rs aYAN a11tlM elarr latlw NMM OgA1 ON•11 Oa•r 0µ1l OWiO 111N111NlMe ONraly YN hrl7r NN OW f f BM 1 Oil } fpr } Ip } +r on on an n.�n,w �m nu ox ox oa = — ule ore oa Ov 0+0 01y 019 OM rw .___.Sf ____._Z� ___— S _____=N _____. ..._..141 DrIl.,sn3lgrMsA1 } 1 I . 1 - 1 . IN11111i liarlrly I1r1, hr l,Or N ow 1 oe2 s oar I urn I fors lo] I +H Lw«Lrw In 9n an on ou on AN Y..terwa l.Yrll I 111111 { $man B MINI 1. MM I VIII/ rf✓1 mo- Eowwr _ PFI 10 "MI "". ft R %rr — 01eP!,s rIr NNrY a1r.! ghA.re NeNr.'e CVMM OM11 ON V pµu _ Irft. gfvi NMa- i1r 1 OIw NYIMM 'NOON nw s oe I ter s ow s fors +m f n4 N. r YY YrNr MHlrsnAl 1 111 I lxl1 1 Z.". I LIAM I ;lyie Nrl Aw 1 Olw �M hr tOr ; 1 001 1 ON On On On rPn aYY/M 1r — iG iii pr nlr M111r1q 1 OMIN 1 N�LM Vj/r}5ul)IN Ewrerrucan Pp112 Secretary Jacobs made a motion to approve Resolution # SSLGC R16 -10 — Annual Water Rates (FY2016- 2017). Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The eighth order of business was SWIFT Punding (G_ upe Project) — Alan Cockerell, General Manager & Duane Westerman & Mark McLin y, SAMCO The closing date would be November 16, 2016. The term which was chosen was a 30 year term. TWDB was in the process of reviewing the submittals. It was determined that the Board would need to take action at their August 18, 2016 board meeting regarding the Funding Agreement. This would be an item placed on the August 2016 board meeting agenda. The ninth order of business was SSLGC Construction Update — John Winkler, Walker Partners & Alan Cockerell, General Manager Mr. Cockerell advised of the following: • Chlorine Dioxide (Task Order # 16) 5 of 7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf Mr. Winkler pulled the heads in May 2016 and the process appeared to be successful. The operators have dropped the chlorine dioxide to 0.4 mg /L to see if it would help with the smell concerns from a few of the Schertz residents. • Cathodic Protect (Task Order # 17) Installation of the deep bed anodes would begin soon. • Metal Tank Rehabilitation (Task Order # 20) Williams Paint & Sandblasting Co. continued rehab of the tanks. Upon inspection of the tanks, they discovered some holes and a welder would be making those repairs within the next couple of weeks. There were no leaks detected. • WTP1 Upgrades (Task Order # 21) Roblesl was completing the demo and SSLGC Staff would continue to work with the architect on the design. • High Service Pump Controller Upgrade (Task Order # 22) Shop drawings had been approved and the units were being fabricated. • SSLGC Park & Recreation Master Plan (Task Order # 19) Miss Briggs anticipated that Mr. Baldwin would be at the July 21, 2016 board meeting to make a presentation. The tenth order of business was Cibolo Relocation of the 36 inch Pipeline John Winkl r Walker Partners & Alan Cockerel Gen r l Manage Mr. Cockerell advised that Staff was working with the City of Cibolo and their engineers. Mr. Cockerell noted that the City of Cibolo had advised that they would like to meet with the cities ( Schertz & Seguin) to discuss an agreement. Mr. Cockerell advised he was waiting to hear from Cibolo. The ele nth order o£ business was Legislative Update — Billy Phenix�Le- illative C- nsultant & Alan Cockerell, General Manage Mr. Cockerell advised that he and Miss Briggs were in Austin and he offered testimony before the House Natural Resources Committee hearing on June 1, 2016 and the Senate Committee on Agriculture, Water & Rural Affairs on Monday, June 20, 2016 on the topic of DFCs, MAGs and Regional Water Planning. The twelfth order of business was Post Oak Clean Green Inc. (Landfill) — Patrick Lindner General Counsel & John %inkler, Walker Partners Executive Session Recommended President Greenwald deferred item twelve to Executive Session. The thirteenth order of business was Guadalupe Project Wholesale Water Contract(s) & Well Permit(s) --Pa trick Lindner. General Counsel & Alan Cockerell, Genera! Manager Executive Session Recommended President Greenwald deferred item thirteen to Executive Session. The fourteenth order of business was Gonzales County & Guadalupe County Carrizo and Wilcox Water Leases and PwVejV Purchase-, — Alan Cockerell General Manager Executive Session Recommended President Greenwald deferred item fourteen to Executive Session. 6of7 SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf The fifteenth order of business was Executive Session called under ChQter 551 Government Code, Section 551071 to seek the advice of its attorney on legal matters, and S coon 551.072 for deliberations regarding real estate President Greenwald closed General Session at 2:38PM. Executive Session was held from 2:53PM to 3:14PM. The sixteenth order of business was Consider and Take_ Action as Re-suit of Agenda . Item Number Fifteen President Greenwald reopened General Session at 3:15PM, 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 The seventh order of business was Consideration andlor Action on questions and possible items to be placed on the next agenda ➢ The next board meeting was scheduled for Thursday, July 21, 2016, in SSLGC Administrative Building at 1:30PM. ➢ David Baldwin presentation ➢ MSAs (Schertz and Seguin) ➢ Water Level Measurement ➢ Task Order spreadsheet updated ➢ Walker Partners T/O for CIP Update The eighteenth order of business was Adjournment President Greenwald declared the meeting adjourned at 3:17PM. MINUTES APPROVED THIS 21st DAY OF JULY, 2016.. T. "Jake" OR 7of7 Bob Pees, Assistant Secretary SSLGC MINUTES 06/23/2016 (7 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 7/21/2016 10:09 AM rcf