05-24-2018 Minutes Joint MeetingMINUTES
SPECIAL. JOINT WORKSHOP MEETING
May 24, 2018
A Special Joint Workshop Meeting was held by the Cibolo Valley Local Government
Corporation ( CVLGC), City of Cibolo and the City of Schertz, on May 24, 2018, at 6:30 p.m., at
Cibolo Council Chambers, 200 South Main Cibolo Texas. The following members present to-
wit:
City of Schertz
Mayor Pro -Tem David Scagliola
Councilmember Ralph Gutierrez
Councilmember Mark Davis
Councilmember Angelina Kiser
Councilmember Bert Crawford
Acting City Manager Brian James
Executive Director Dudley Wait
City Secretary Brenda Dennis
Asst. Public Works Director Jim Hooks
Councilmembers Scott Larson and Cedric Edwards were absent.
City of Cibolo
Mayor Stosh Boyle
Councilmember Verlin "Doug" Garrett Councilmember Brian Byrd
Councilmember Ted Gibbs Councilmember Jim Russell
Councilmember Jay Hogue Councilmember Joel Hicks
Bob Herrera, City Manager City Secretary Peggy Cimics
Police Chief Bryan Hugghins
Timothy Fousse, Director of Public Works /Capital Projects
Councilmember Jennifer Schultes was absent
Cibolo Valley Local Government Corporation:
Justin Murray, Board President
Lesley Pedde, Board Member Steve White, Board Member
Alan Cockerell, Executive Director Amber Beard, Deputy Executive Director
Angie Kleinschmidt, Office Administrator
Garth Coursen, Board Member was absent.
CVLGC Contractors:
John Winkler, Walker Partners
Bill Klemt, Hydro - Geologist Consultant
Art Rodriguez, Russell Rodriguez Hyde Bullock, LLP
Crockett Camp
Guests:
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Ken Greenwald
Richard Braud
MITI
1. Call meeting to order — Justin Murray—President—CVLGC
President Justin Murray called the Cibolo Valley Local Government Corporation
(CVLGC) to order at 6:31 p.m.
a. City of Cibolo — Mayor Boyle called the City of Cibolo Joint meeting to order at
6:32 p.m.
b. City of Schertz — Mayor Pro -Tem Scagliola called the City of Schertz Joint
meeting to order at 6:32 p.m.
2. Welcome /Opening Remarks — Mayor — City of Cibolo & Mayor — City of Schertz
Mayor Boyle and Mayor Pro -Tem Scagliola welcomed everyone in attendance this
evening providing brief comments regarding the partnerships with the City of Schertz
City of Cibolo and the Cibolo Valley Local Government Corporation.
3. Introductions — Justin Murray — President —CVLGC
CVLGC Executive Director Alan Cockerell provided the following presentation topics
that will be discussed:
Regional Water Planning
CVLGC History
CVLGC Organization 2018
CVLGC Project Concept — Project Description, Project Map
CVLGC Project Financial — Timing, Contribution Projections
John Winkler, PE — Walker Partners provided the following regarding presentation topics
that will be discussed.
CVLGC Demands
Carrizo Aquifer
Counselor Art Rodriguez, Russell Rodriguez Hyde Bullock, LLP provided the following
regarding presentation topics that will be discussed.
Groundwater Permitting
Legislative Update
CVLGC Justin Murray provided the following summary:
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Summary
4. CVLGC Water Development Project in Wilson County — Alan Cockerell, Executive
Director & John Winkler, Walker Partners & Art Rodriguez, General Counsel
Alan Cockerell
® Terms
• ac -ft —
acre -feet = 325,851 Gallons
• CVLGC
— Cibolo Valley Local Government Corporation
• DFC —
Desired Future Condition
• EUWCD — Evergreen Underground Water Conservation District
• GCD —
Groundwater Conservation District
• GMA
— Groundwater Management Area
• MAG
— Modeled Available Groundwater
• MOU
— Memorandum of Understanding
• MSA —
Management Services Agreement
• PER —
Preliminary Engineering Report
• Region
L — South Central Texas Regional Water Planning Group
• SARA
— San Antonio River Authority
• SSLGC — Schertz /Seguin Local Government Corporation
• WUG
— Water Use Group
• Texas Water Development Board (TWDB)
• Regional Water Planning
- Established in 1997 by 75t' Texas Legislature (SB1)
- Bottom -up approach began in 1998
- Sixteen Planning Groups
- Approved Bylaws
- Designated Administrator
Basic Planning Parameters
- Water Supply Plan to meet drought of record needs
- 50 year planning horizon
- 5 year planning cycle
- 6 categories of water use
o Municipal, Manufacturing, Mining, Irrigation, Livestock and
Steam - Electric Power
Texas Water Development Board (TWDB) Regional Planning
® South Central Texas Regional Water Planning Group
• Region L
• Comprised of 20.5 Counties
• Administrator: SARA
• Technical Consultant: Black & Veatch
• Quarterly Meetings 2018
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■ First Thursday of Feb, May, Aug. & Nov.
■ SAWS Customer Service Building
o www.regionitexas.org
• Current Planning Cycle
o Fifth Planning Cycle (2017 -2021)
Changed to Utility Based Planning
2017 State Water Plan is Interactive
https : / /2017.texasstatewaterplan.org /statewide
Uvalde I Medina
Regional Water Planning Area
L - South Central Texas
Kendall Hays
A
Corral Caldwell :.
:c o
G
F
Guadalupe E
Bexar Gonzales
If
■
Wilson
Dewitt
Zavala I Frio I Atascosa 1< Karnes
Dimmit
LaSalle
Goliad
Victoria
Refugio
d
• CVLGC History
2011
o CVLGC formally created and first official board meeting with Cibolo,
Converse, Schertz, Seguin, and Selma
2012
• Development of a regional water system master plan, including a water
study for each city
• Seguin and Selma withdrew due to different focus concentrations
5 -24 -2418 Minutes Page - 4 -
2013
o Responded to HDR Survey to collect population and water use data for
Region L (With assistance from Walker Partners)
2014
• Selected most feasible project for CVLGC Customers
Carrizo- Wilcox well field in Eastern Wilson County
• Converse withdrew from CVLGC
• Approved Business Plan for Water Supply Project
• Began Option Agreements with Wilson County landowners
2015 -2017
• Project included in Region L Plan as Recommended Strategy
• Began Water Lease Agreements with willing landowners
• Negotiated common water lease template with large landowner group
® 2015 -2017
• Project included in State Water Plan as Recommended Strategy
• Secured water rights with willing landowners
10,994 acres leased at 1 ac -ft per surface acre - 10,994 acre- feet /year
® CVLGC Organization 2018
City of Cibolo & City of Schertz
Governed by a Board of Directors Appointed by Each City Council
• Two Directors from each City
• One Ex- Officio from each City
Utilize SSLGC Staff for Administration (MSA)
Board Meets Monthly (Fourth Thursday)
Contracts with the Following:
• Armstrong, Vaughn & Associates, PC — Auditor
• Art Rodriguez, Russell Rodriguez Hyde Bullock, LLP - Attorney
• Bill Klemt — Hydro- Geologist
• John Winkler, Walker Partners — Engineering
• SAMCO Capital Markets Inc. — Financial Advisors
• HRM Land Acquisition Solutions, LLC — Land Agents
• Crockett Camp — Project Manager
• Dan Jackson, Willdan Financial Services — Rate Consultant
® CVLGC Project
Water Supply Project Required for Long Range Needs
Project Included in 2016 Region L Plan & 2017 State Water Plan
Acquiring Project Water Rights with Willing Landowners
o Provide Income Stream for Landowners
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• Lease one ac -ft/ac annually from Carrizo- Wilcox Aquifer
• Land Owner to maintain Water Rights in other Stratas, as allowed by
EUWCD
Project Summary:
• Carrizo- Wilcox well field in Eastern Wilson County
• 10,000 ac -ft/yr Capacity with Six Wells
• Lease contiguous water rights
• Purchase Well sites
• Water Production Projected to begin in 2026
• Contract with SSLGC to Treat & Transport
• Water Chemistry Compatible with SSLGC
o Water Lease Status
o Acquire 10,994 ac ft/yr contiguous water rights
0 81 property owners
• CVLGC Project Costs — City Contributions
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CVLGC Project Ownership
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• Water will be produced and delivered by CVLGC to the SSLGC Guadalupe facility
• Water will be treated and transported by SSLGC to customer delivery points
• CVLGC will own wellfield and transmission line to proposed SSLGC Guadalupe
facility
• CVLGC will contract for treatment and pipeline capacity of SSLGC system.
CVLGC PROJECT C®ST /CITY CONTRIBUTI ®NS
2018 Proposed Business Plan
Water Righ
Property Acq
)n
FY 2017 -2018
FY2018 -2019
$300,000
$600,000
Permit Application & FY2019 -2020 $500,000
Approval
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FY 2020 -2021
$450,000
FY2021 -2022
$450,000 $12M
Design, Acquisition &
FY2022 -2023
$450,000
TCEQ Approval
FY2023 -2024
$450,000 $30M
FY2024 -2025
$900,000
Contract Award &
Construction
FY2025 -2026
$900,000
Production
FY2026 -2027
Revenue from Water Sales
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Mr. Cockerell recognized and introduced Mr. John Winkler, PE, with Walker Partners
who provided the following information and answered questions:
12,000
9,000
m
d
aD
CL
6,000
ii
W
`�' 3,000
0
2020 2030 2040 2050 2060 2070
n Schertz ■ Cibolo
Councilmember Ralph Gutierrez, City of Schertz arrived at 6:59 p.m.
5 -24 -2018 Minutes Page - 8 -
2,438
2,$75
2,005
1,518
7,700
5,900
4,200
985
3,600
1,300
2020 2030 2040 2050 2060 2070
n Schertz ■ Cibolo
Councilmember Ralph Gutierrez, City of Schertz arrived at 6:59 p.m.
5 -24 -2018 Minutes Page - 8 -
Ogallala
Pecos Valley
Hueco - Mesilla Bolsons
Edwards - Trinity (Plateau)
Edwards (Baicones Fault Zone)
Solid indicates outcrop areas (the part of an
aquifer that lies at the land surface).
Hatched indicates subsurface areas (the part of an
aquifer that lies or dips below other formations).
------4l_ _41-M-1 _4
W-W
and
Seymour
Trinity
Carrizo- Wilcox
Gulf Coast
Artesian
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FIGURE 3.- Geolooic cross section C -C' Wilson County. Tex.
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krvl
0
I
t
Recoverable Storage
Wilson County
• Carrizo- Wilcox Aquifers
• 150 A illionAc -Ft in storage (source:
IWDB)
• CVLGC = 10,000 Ac -Ft /yr
• 50 years of pumpage
• $77 Million paid to Wilson County
Landolners
■ CVLGC Pumpage ■ Remaining Storage
President Murray introduced Counselor Art Rodriguez, Russell Rodriguez Hyde Bullock,
LLP who provided the following information:
Adjudicative Hearing
- Notice
- Contested vs. Uncontested
- Pre - Hearing Conference
Parties
Simplification of issues
Amended application
Admissions or stipulations
Schedule Discovery
Set witness lists
Pre -filed testimony
Procedures governing hearing on the merits
Hearing on the Merits
- Testimony and Exhibits Pre -Filed
- Hearings Examiner reports findings to Board within 30 days
- Submit Exceptions to Report
- Board acts within 60 days
5 -24 -2018 Minutes
Page -11-
An update was provided on Legislative Consideration:
• Vesting Rule Provisions on date of Application
• Provide Certainty in Administrative Review Processes
• Eliminating /Amending Transportation Permit Requirements
• Treat Exporters Same as Others
• Limitations on Moratoriums
S. Summary, Recommendations & Discussions — Justin Murray—President —CVLGC
Mr. Justin Murray, Board President of CVLGC provided summary remarks which
included answering questions:
- City of Cibolo & City of Schertz
- Water supply project selected for long range needs:
*10,000 ac- ft. /yr. Carrizo- Wilcox well field in Eastern Wilson County
*Phased approach in accordance with state water planning requirements
* Water Production initially projected to begin in 2026
*Business Plan is under evaluation to match updated water needs
- Project included in 2016 Region L Plan & 2017 State Water Plan as
Recommended strategy
- Acquire Water Rights with Landowners (10,994 ac- ft/yr)
- Project Funding:
* Request $600,000 contribution from each City in FY2018/2019
6. Adjournment
President Murray, Mayor Pro -Tem Scagliola and Mayor Boyle provided their thanks for
attendance as well as commented on the joint partnership together.
Mayor Pro -Tem Scagliola, Mayor Boyle and President Justin Murray adjourned the joint
meeting at 7:40 p.m. ,��' /
R. Carpenter, Mayor City of Schertz
ATTEST:
5 -24 -2018 Minutes Page -12 -
Brenda Dennis, City Secretary
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