APPROVED 03-16-2017 MINUTESMINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 16`' day of March, 2017 the Schertz /Seguin Local Government Corporation (SSLGC)
convened at 1:32 PM at SSLGC Administrative Building located at 108 W. Mountain Street, Seguin,
Texas with the following board members being present and in attendance:
Robin Dwyer President
Andrew Hunt Treasurer
David Reiley Secretary
Mayor Keil Ex- Officio
Bert Crawford Ex- Officio
The following members were absent:
T. "Jake" Jacobs Vice - President
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:
Rick Cortes
Susan Caddell
Dudley Wait
Jim Hooks
Patrick Lindner
Steven Siebert
Felix Arambula
Craig Hines
John Winkler
Crockett Camp
Bill Klemt
Johnny Bierschwale
Emery Gallagher
Alan Cockerell
Angie Kleinschmidt
Chrissy Glascock
Steve Layton
Clare Layton
Ken Greenwald
Assistant City Manager (City of Seguin)
Director of Finance (City of Seguin)
Executive Director of Operations (City of Schertz)
Public Works (City of Schertz)
General Counsel (Davidson, Troilo, Ream & Garza)
San Antonio Water System (SAWS)
San Antonio Water System (SAWS)
Canyon Regional Water Authority
Consultant (Walker Partners)
Consultant
Consultant /Hydrologist
Citizen (City of Schertz)
Water Utility Manager (City of Seguin)
General Manager (SSLGC)
Office Administrator (SSLGC)
Administrative Tech (SSLGC)
Citizen (City of Schertz)
Citizen (City of Schertz)
Citizen (City of Schertz)
The first order of business was to Call the Meeting to Order
President Dwyer called the meeting to order at 1:44 PM
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The second order of business was Public Comment
Mr. Steve Layton & Mrs. Clare Layton voiced their concern regarding the proposed pipeline route
through Crescent Bend Nature Park.
Mr. Bierschwale commended the SSLGC new website on the City of Seguin's website. Mr. Bierschwale
would like to have a similar link to the City of Schertz's website.
Mayor Keil announced that the City of Seguin would have President Dwyer take over the vacant seat
term of Mr. Pees and will appoint Korey Kirchner to fill the term until the end of 2017.
President Dwyer read the proclamation and presented Mr. Ken Greenwald with a plaque in appreciation
for his years of dedication and service to SSLGC.
Mr. Cockerell introduced SSLGC's new part -time Administrative Technician, Chrissy Glascock.
The third order of business was the A royal of Minutes for the meeting held February 16 2017
Treasurer Hunt made a motion to approve the February 16, 2017 meeting minutes. Secretary
Reiley 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 Manager
Mr. Cockerell's written report was included in the board packet.
Water Production
Seasonal pumping and monthly water sales charts were included in the board packets. Water production
for the month of February was 66.7% of the Gonzales County Underground Water Conservation
District's (GCUWCD) monthly allowable.
• GCUWCD
Mon 0/j. Meeting
The monthly meeting was held March 14, 2017; Mr. Cockerell attended. A copy of the agenda was
included in the board packet.
Pub l , L"(eedi
The district will be conducting a public hearing for proposed changes to the District Rule 16 —
Requirements for Drilling. Completing, Equipping and Reworking Wells and District Rule 21 —
Plugging and Capping of Wells
• GCGCD
11 otr6la y Meeting
The monthly meeting was held March 9, 2017; Mr. Cockerell attended. A copy of the agenda was
included in the board packet. The meeting was spent discussing the issue with groundwater seepage in
the Oak Village North Subdivision. No action was taken by the board.
• Region L /GMA- 13 /RWA
1� to, n L
Mr. Brian Perkins is in the process of collecting inputs from all Water User Groups in the region for
the upcoming planning cycle.
* Operations Report
Mr. Cockerell went over the operations report that was included in the board packet:
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• CVLGC
The monthly meeting was held February 23, 2017 in Schertz. A copy of the agenda was included in the
board packet. Work continues on executing water leases with landowners.
The fifth order of business was Presentation of FY2015 -2016 Audit Report — Nancy Vaughan,
Armstrong, Vaughan & Associates
Copies of the SSLGC FY2015 -2016 Audit Report were provided in the board packets. Ms. Vaughan
with Armstrong, Vaughan & Associates, P.C., presented an overview of the report. Highlights of the
FY2015 -2016 report are as follows:
Ms. Vaughan began by stating there was a good audit this year with a clean opinion.
Ms. Vaughan called attention to Page 9 of the Audit Report (Statement of Net Position). She listed
Total Current Assets to be $14,000,000 compared to $16,000,000 from FY2014- 20156. The Total Restricted
Assets were $6,800,000, which was primarily representative of bond funds, debt service and impact fees
that had not been spent as of September 30, 2016. The balance for Net Property, Plant & Equipment was
noted to be $95,000,000. She called attention to the Lease Acquisition Costs, specifically the original
water leases and noted that they were almost fully amortized.
She moved to Page 10, Total Current Liabilr.'lic.r were $4,800,000 and $100,000,000 Long Term Liabilities
resulting in Total Liabilities being $105,000,000 leaving SSLGC with $12,000,000 in Total Net Position.
Ms. Vaughan advised that there was a negative in Net Investment in Capital Assets. That number
represents the total capital assets less the liabilities that were issued to fund those (infrastructure less
the debt). The reason it was negative was because the depreciation charges on the capital assets were
accelerating faster that the principal pay down of the debt; she expected that would reverse at some
point. The UnresIn'tted Net Ilosilion was $9,800,000 compared to $9,800,000 of that total net position
in FY2014 -2015.
Ms. Vaughan moved on to Page 11. The Total Operating Revenues were $16,000,000 compared to the
previous year's $17,000,000. The reason for such a large increase was due, in large part, to water sales
to SAWS. The Total Operations & Maintenance of $4,500,000 which was up from $4,700,000 in FY2014-
2015. After depreciation the Opeinting Income (Loss) was $6,700,000. The Non - operating Expenses were
mostly interest and debt issuance costs this year. Ms. Vaughan noted this yielded a total positive change
to the Net Position of $2,400,000.
Ms. Vaughan called attention to the Governance Letter. Ms. Vaughan advised that the one audit
difference was that expenses were underestimated by $32,000 as vacation accruals are note billed as part
of the Management Services Agreement until paid. Also, construction in progress was understated by
$160,000 related to retainage that was not recorded on multiple projects. Ms. Vaughan also advised
that SSLGC was in compliance regarding the Public Funds Investments Act (PFIA).
Secretary Reiley made a motion to accept the FY2015 -2016 Audit Report as presented by Ms.
Nancy Vaughan of Armstrong, Vaughan & Associates, P.C. Treasurer Hunt seconded the
motion. Upon a vote being called the motion carried by unanimous decision.
The sixth order of business was SSLGC Construction Update — John Winkler Walker Partners
& Alan Cockerell, General Manager
Cathodic Protection System Phase 1(TO #17): The system is complete and a final continuity check
is being conducted.
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• Cathodic Protection Phase 2 (TO #25): Walker Partners continues to evaluate issues identified with
the existing pipeline easements. Numerous missing gates and new fences need to be addressed along
with structures that have been placed on the pipeline easement.
• Metal Tank Rehabilitation (TO #20): Williams is finished with the BPS tank. Documentation was
sent to TCEQ in response to the complaint that was filed by a neighbor regarding blasting material
leaving the site. TCEQ has indicated that they are satisfied with our response and no further action is
needed.
• WTP1 Upgrades (TO #21): The contractor has begun construction.
The seventh order of business was Parallel Pipeline Project Update — Alan Cockerel General
Manager
Mr. Cockerell advised we had received approximately 90% of the right of entries.
The eighth order of business was Legislative Update -- Alan Cockerell,_ General Manager
Mr. Cockerell spoke on current legislative activity.
The ninth order of business Post Oak Clean Green, Inc. (Landfill) — Patrick Lindner, General
Counsel &John Winkler, Walker Partners & Alan Cockerell, General Manager
No action requested /No action taken
The tenth order of business was Wholesale Water Contracts & Well Permits -- Patrick Lidner.
General Counsel & Alan Cockerell, General Manager
No action requested /No action taken
The eleventh order of business was Gonzales Co unty & Guada.lupe County Carrizo and Wilcox
Water Leases and Property Purchases — Alan Cockerell, General Manager
No action requested /No action taken
The twelfth order of business was General Manager's Evaluation — Dudiey Waits Executive
Director of Operations (City of Schertz)
No action requested /No action taken
The thirteenth 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 551.072
for Deliberations Regarding Real Estate
President Dwyer closed General Session at 2:51 PM.
Executive Session was held from 3:04 PM to 3:20 PM.
The fourteenth order of business was Consider and Take Action as Result of Agenda Item
Number Thirteen
President Dwyer reopened General Session at 3:20 PM.
The fifteenth order of business was Consideration and/or Action on Questions nd Possible
Items to be placed on the Next Agenda
➢ The next board meeting is scheduled for Thursday, April 20, 2017 in SSLGC Administrative
Building at 1:30PM.
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The sixteenth order of business was Adjournrnent
President Dwyer declared the meeting adjourned at 3:22 PM.
Y74oMINUTES APPROVED THIS q) ' "` DAY OF
W
David Reiley, ecretary
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