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SSLGC 09-20-2007 MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS ~ COUNTY OF GUADALUPE ~ SCHERTZ-SEGUOONLOCAL ~ GOVERNMENT CORPORATION ~ On this the 20th day of September, 2007, the Schertz-Seguin Local Government Corporation convened at 1:37 p.m. in the City of Schertz Council Chambers located at 1400 Schertz Parkway, Building #4, Sc4ertz, Texas. The following directors being present and in attendance: Robin Dwyer Ramon Cook Jim Wolverton Sydney Bauer Ken Greenwald and the following directors being absent: Hal Baldwin Betty Ann Matthies President Vice-President Secretary Treasurer Director 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 proyisions of Texas law. Also in Attendance were: Alan Cockerell Doug Faseler Don Taylor Johnny Bierschwale Susan Caddell Crockett Camp Bill Klemt John Winkler Patrick Lindner General Manager Seguin City Manager Schertz City Manager Assistant City Manager Director of Finance Consultant Hydrologist Consultant Consultant (BmytPartners) Counsel (Davidson & Troilo) The first order of business was the callin2: of the meetin2: to order. President Robin Dwyer opened the meeting at 1 :37 p.m. The .second order of business was public comment. No one addressed the Board during public comment. The third order of business was approval of the minutes for the Board Meetin2: held on AU2:ust 16. 2007. Vice-President Ramon Cook made a motion to approve the minutes as written. Treasurer Sydney Bauer seconded the motion. Upon a vote being called, the motion carried four to zero. Secretary Jim Wolverton abstained as he was not present at the August 16th board meeting. The fourth order of business was presentation of the General Mana2:er's Report- Alan Cockerell. General Mana2:er. A copy of General Manager Alan Cockerell's report was provided in the board agenda packets. Mr. Cockerell asked for questions from board members regarding his written report. He stated that in the future the Operations Report prepared by Water Systems Manager Dan Drugan would be included in his General Manager's Report. He added that although normally Mr. Drugan would be present at the board meetings to answer questions, he was not in attendance at the meeting in progress as he was in the field working with contractors. Mr. Cockerell reported that GCUWCD plans to have a Public Hearing on the adoption of its Management Plan, September 27,2007, at 5:00 p.m. A copy of the preliminary Plan was included in the board agenda packets. Questions from the Board 1) Vice-President Cook referred to agenda item 8 and asked for clarification of water lease contracts represented'in the Gonzales County Well Field handout. He asked if the leases were signed or pending. President Dwyer asked specifically if the Donegan and/or Butcher leases were signed. Mr. Cockerell stated that both leases had been signed. The other leases would be addressed in agenda item 8. With no further questions from the' Board regarding the General Manager's report, President Dwyer moved to agenda item #5. The fIfth order of business was SSLGC FY2007/2008 Water Rates - Alan Cockerell. General Mana2:er. Mr. Cockerell began by stating that the Corporation's water rates had previously been. approved by the Board and by the Schertz and Seguin city councils. He noted that since . then clarification of the rates had been requested 8?d a suggestion made to show debt service contribution separate from the average water rates for both cities. If the change is made, the rates will not have to be approved again by the board or city councils as the average water rates will not change. He referred to Exhibit A which was included in the board agenda packets. He explained that the water rate table on the back of Exhibit A illustrates the debt service contribution broken out of the total water rate and paid on a monthly basis at $132,519.14 by the Cities of Schertz and Seguin. With the debt service payment broken out of the $2.18 per 1,000 gallon rate, the water rate would be $1.02 per 1,000 gallons. However, with.the debt service contribution included, the average water rate would nevertheless be $2.18 per 1,000 gallons. Mr. Cockerell added that Springs Hill's monthly debt service contribution would be $17,641.67 if broken out. . 2 I I i :I I i 1 ! Treasurer Bauer asked for clarification of the $.15 cities distribution rate pertaining to Springs Hill. Mr. Cockerell stated that Springs Hill pays a distribution charge for the City of Seguin to deliver its water. The Cities of Selma and Universal City pay the same distribution charge to the City of Schertz for delivery of their water. Counsel Patrick Lindner added that Mr. CockerelPs proposal to segregate debt service from the monthly payments of the water rate is more in line with existing traditional terms of the contract between the Cities of Schertz and Seguin and the Corporation. Both city managers agreed the change to the water rate table shows' more equitable charges for water which are easily understood between the' Cities of Seguin, Schertz, Selma, Universal City and Springs Hill. Counsel Lindner advised board members to concur in clarification of the restatement of the water rates in order to record the information in the minutes. President Dwyer made a motion, for purposes of clarification of the debt service in the water rates, to. approve the modified monthly water usage charge of $1.02 per 1,000 gallons for the Cities of Schertz and Seguin and' to approve each city's monthly debt service contribution of $132,519.14 per month. Vice-President Cook seconded the motion. Upon a vote being called the motion passed by unanimous decision. The sixth order of business was the contract between SSLGC and Crockett Camp - Crockett Camp. Project Mana2:er. Mr. Camp's contract continues on a month to month basis as previously agreed upon until a new contract is ready for negotiation. . No action was taken. The seventh order of business was Water Lease Contracts for Guadalupe Countv- Alan CockerelL General Mana2:er and Patrick Lindner. Le2:al Counsel. Davidson & Troilo. . :President Dwyer deferred agenda item #7 to Executive Session. The ei2:hth order of business was Water Lease Contracts for Gonzales Countv - Alan CockerelL General Mana2:er and Patrick Lindner. Le2al Counsel. Davidson & Trolio. . President Dwyer deferred agenda item #8 to Executive Session. The ninth order of business was the Expansion Project in Gonzales and Guadalupe Counties - Alan Cockerell. General Mana2:er and John Winkler. Burv+Partners. Mr. Cockerell referred to an update in the board packets pertaining to progress on the Guadalupe County project. He stated that preliminary design work is almost completed. Several Technical Memoranda will be finalized as soon as specific locations are identified. Securing water rights and leases continues to be an issue and will be discussed in ag;enda items #7 and #8. Mr. Cockerell asked for questions from the board regarding 3 . Guadalupe County project progress. With none he moved to the following topics on the proj ect: . a) Presentation of GAM Modeling by Randy Larkin (a copy of Mr. Larkin's presentation will be filed at SSLGC's Corporate Office in. Seguin) Mr. Bill Klemt introduced Randy Larkin who gave the following presentation on expansion of additional wells in Gonzales County and groundwater modeling for SSLGC municipal water wells: . The goal of the modeling was to add four new SSLGC wells in Gonz81es County and to model drawdown in the Carrizo Aquifer to 2060. . The methodology was to use the TWDB's Southern Queen City and Sparta groundwater availability model (qcsp s GAM). This model will also be used by the State as a benchmark. . - . The only changes to the existing GAM were to add and update well~ as to pump age and to extend to 2060 with existing inputs. Mr. Larkin referred to a map (or snapshot) of what the m04el looked like before any modeling was done. . SSLGC wells 1-8 were added to the existing GAM. Historical rates from 2002 were used to begin with and then ramped up in stages to 1,000 gpm each in 2011. . Bexar Met wells were added in 2009 at 1,000 ac-ft/year each. Io...c;-: . Rates were updated in eight municipal and private wells in Gonzales County starting in 2008. . Two new SSLGC'wells were added in 2010 at 1,000 gpm each. Two new wells were added in 2012 at 1,000 gpm each. . Methodology used was to maximize the amount of pumpage and give a conservative result. The maximum rate of 1,000 gpm.is used at a constant rate in the revised model run. Mr. Larkin referred to a graph of the SSLGC qC8p _8 GAM run which demonstrated the Carrizo water level elevation in 2002. GAMS are designed to give the change in water level. Mr. Larkin displayed GAM & SSLGC run comparisons from the 2002 Carrizo water level elevation (ft ASL).J The same starting point for calculation of drawdowD. was used. The model~g u::;ed which included contour plots were as follows: . SSLGC qcsp:....s GAM run results in 2060 Carrizo water level elevation 4 . SSLGC qcsp_s GAM run results 2060 Carri:?:o drawdown (ft) from year 2002 . Qcsp_s original GAM 2050 Carrizodrawdown (ft) from 2000 . SSLGC qcsp _s GAM big picture 2060 Carrizo drawdown from 2002 Results of SSLGC modeling were compared to the original GAM and resulted in the following conclusions: . The TWDB approved GAM model was used to simulate the drawdown affects of adding four new SSLGC wells to the year 2060. . The original GAM was updated with current rates. . The calculated. drawdown i~ conservative because pumping is constant in the model. The actual drawdown is likely to be lower. . New SSLGC wells do not significantly change the large amount of water in storage (GAM shows 1,000 ft of Artesian head at the well field in 2060). Board members asked ,the following questions: Was any consideration given to SAWSpumping in the modeling? Mr. Larkin replied, ''no, not in this modeling, but it could be done." What municipal wells were used in the calculations? , Mr. Larkin stated that he has a list which provides names of a number of wells.. General Manager Barry Miller of GCUWCl) added that he had provided a list for consideration of permitted wells which were not included in the original GAM for the SSLGC GAM modeling and had provided an identica1list to SAWS. It included the Gonzales County water supply wells. Mr. Klemt added that water measurements for four wells had been taken September 19th and the average measurement for the wells was 24 feet for the time period of September 2002 through September 2006. An average rise of eight feet for the four wells was calculated. . Does the Artesian head pressure correlate with the drawdown of water? Mr. Larkin said that everything in the GAM model is mostly Artesian. Was the effect of adjacent aquiftrs above and below the SSLGC GAM model included? Mr. Larkin replied, ''yes, because all layers are in the model, however it was not looked at." Mr; Klemt added that pinnpage was the only change made to the model. 'Where was pumpage information for the GAM model obtained? 5 Barry Miller. stated that consideration for parameters for the model included the following: . regional water plan (to what level would SSLGC increase its water pUIilpage and what would its future pumpage be) . pumpage centers . unaccounted for pumpage permitted since the GAM was propagated (regional planning numbers were used for Nixon, Smiley, etc.) When will the GAM information be presented to the Gonzales District? Crockett Camp stated that the data would be presented to the Gonzales District when SSLGC applies for permits. He added that this presentation is for the board's information. The written report is presently in graph form, but because of the preliminary information gained in the model, Mr. Camp will proceed with well applications. b) Approval of additional funds for GAM Modeling by Randy Larkin Mr. Cockerell stated that funds for the modeling had previously been approved in the amount of $10,000. Mr. Larkin had presented.two additional invoices (one provided in the board packet and one handed out) for additional work which was necessary to complete the modeling. These payments would complete SSLGC's obligation at this point. If ad4itional modeling is needed duriJ?g the permitting process, additional funds may be needed. Secretary Wolverton made a motion to give General Manager Alan Cockerell authorization to pay invoices from Randy Larkin in the amounts of $1,265.00 and $2,640.00. Director Ken Greenwald seconded the motion. " Upon a vote being called the motion passed by unanimous decision. c) Approval for Amendment 8 to Agreement for Professional Engineering Services between SSLGC" and Bury+Partners-Public Works, Inc., for new Gonzales County Water Supply Wells Mr. Cockerell referred to Amendment 8 provided in the board agenda packets. Initially the board had approved a contract with Bury+Partners to design one large 3,500 gpm well. In investigating the permitting process and various other factors, it appeared that four smaller 1,000 gpm wells which are similar to the wells SSLGC already has would be more appropriate for expansion than one 3,500 gpm well. If this amendment is approved it will replace the previous amendment for the 3,500 gpm well. Mr. Cockerell continued by reporting that engineering for the four wells is estimated at $617,000. Construction is estimated at $8.8 million dollars. This amendment is for the estimated engineering costs which include the wells and associated piping, TCEQ. permitting and design of the collection lines. The construction cost is provided for the board's information. The money is to assist in the preliminary design phase until" the permits are issued and. design work actually begins. Approximately 40 - 50% of $120,000 allocated to the preliminary design phase would be spent before the permitting process. 6 Mr. Winkler stated that efficiencies in going with four smaller 1,000 gpm wells instead .of the larger 3,500 gpm . well include: (1) parts would be interchangeable, and (2) with smaller wells more room is available as far as required spacing to move the well sites around (the 3;500 gpm well is site specific). The District requires spacing to be at a minimum, 6,000 ft. Mr. Winkler displayed a map to show board members where potential well sites could be located. He reiterated that smaller wells could be moved more easily than a larger one. Operational costs will be higher due to the maintenance of four pumps. Electrical costs will be basically the same. Life expectancy of the wells will be higher because the pumps run in cycles and will not run as long. A suggestion was made by City Manager Doug Faseler to condition the approval of the amendment on beginning only the work which is necessary prior to the pennitting process and to not start another phase until permits have. been issued. Mr. Winkler referred to Part I-B of the amendment and assured the board that another phase would not be started without pennission from board memb~s and the general manager. President Dwyer moved that Amendment 8 to ~e Agreement for Professional Engineering Services between SSLGC and Bury+Partners-Public Works, Inc. for new Gonzales County water supply wells be approved subject to necessary action required under the . Preliminary Design. Phase to present the permits to the GCUWCD. Secretary Wolverton seconded the motion. Vice-President Cook requested that the motion include .... "Preliminary Design Phase, Part i-B...." President Dwyer amended his motion to include. Vice-President Cook's request. Secretary Wolverton seconded the amended motion. Upon a vote being called, the motion carried by unanimous decision. d) Approval for Amendment 9 or 9A. to Agreement for Professional Engineering Services between SSLGC and Bury+Partriers-Public Works, Illc., for Chemical Feed Improvements. . Mr. Cockerell began by stating that he and" the c;ity managers had discussed the issue of chemical feed improvements in the previous city managers' meeting. At that time he did not have complete information. After discussing the matter further with Bury+Partners representatives three options were identified. He added that the objective is to calm down the aggressive nature of the water prior to it entering the. system in order to avoid the maintenance issues the Corporation has been addressing with valves, filter media, etc. A list of options 1,2 and 3 was included in the board agenda packets. . Mr. Cockerell quickly eliminated option 2 as it is close in price to option 3 and has operational issues. He added that option 1 would be to purchase hydrated lime as a pre- mixed slurry and construct a storage tank with related feed equipment. Option 3 would .be to purchase quicklime and construct a dry quicklime storage silo and related feed equipment. Option 1 has the lowest initial costs, but has the highest monthly costs. Other disadvantages with option 1 include: highest annual costs, single source of supply, large number of deliveries during peak usage and purchase of used equipment. Option 3, quicklime, is the preferred system b~cause of its operational advantages and low annual costs. Its main disadvantage is the high initial capital costs. " 7 Two substantial savings from option 3 include large savings in caustic costs of approximately $100, 000 per year and filter replacement costs. Operational and safety issues would be about the same and not be increased with either option. After discussion and because of other obligations of the Corporation, the majority agreed to go with Option 1 because initial costs would be much less than Option 3. A new tank could be purchased rather thail a used tank with Option 1 without substantially raising costs. Bond funds could be used for the improvement. Secretary Wolverton made a motion to approve Option 1 with construction costs of $110,000 and chemical costs of $54,000 per year. Mr. Cockerell requested Secretary Wolverton to include Amendment 9 in his motion. Secretary Wolverton withdrew his original motion and made a motion to approve Amendment 9 to the Agreement for Professional Engineering Services between SSLGC and Bury+Partners-Public Works, Inc., for chemical feed improvements, Option 1,' pre-mixed slurry tank. Director Greenwald seconded the motion. Upon a vote being called, the motion carried by majority vote. President Dwyer vot~d against the motion, citing that although he understood the budget process, Option 1 lilight not be the perfect solution. e) Approval for Amendment 10 to Agreement for Professional Engineering Services between SSLGC and Bury+Partners-Public Works, Inc., for Filter Improvements. Mr. Cockerell began by referring to an outline regarding:fl1ter control system improvements and Amendment 10 for those improvements which were provided in. the board packets. TCEQ requires that each filter has a rate-of-flow controller to make sure that filter loading is limited to 5 gpm per square foot. Although the TCEQ requirement was in place at the time the filters were installed, it was .not identified. When the Corporation installed three new filters, Bury+Partners brought the. regulation to the attention of TCEQ and asked for an exemption. An exemption was not granted for the three new filters and notification was given to Bury+Partners and the Corporation that flow controllers would have to be installed on the original six filters also. They did not give a deadline as to when the filter controls had to be installed. Mr. Winkler added that he had been working with Tonka representatives and costs may be lowered considerably. Mr. Cockerell suggested delaying the agenda item until the next board meeting when information regarding compliance, procedures and costs woul,d be mOre complete. After discussion, board members agreed with Mr. Cockerell's suggestion. President Dwyer made a motion for John Winkler with Bury+Partners to continue to work with Tonka, the fJIter manufacturer, to come up with the best and most optimal system for f"Ilter . replacement in order to satisfy TCEQ regulations. Secretary Wolverton seconded the motion. Upon a vote being called the motion pa.ssed by unanimous decision. 8 f) Detailed Update of Construction Expenses Mr. Cockerell referred to detailed balance sheets pertaining to construction and future development funds which were provided in the board agenda packets. He and Director of Finance Susan Caddell had worked together to construct the balance sheets in order to give board members a good indication of the Corporation's construction fund balances. He added that the construction fund was basically secured bond money and the future development fund showed where funds have been accumulating as of August 31, 2007. In conjunction with the construction :fQnd and future development fund data, Bury+Partners developed a ledger sheet to show work in progress of detailed expenses and encumbered funds. Mr. Winkler gave a short presentation of items on the ledger sheet. No action was taken. This information for the expansion project will be updated and provided to board members on a monthly basis. g) Filter Media Replacement A one sheet summary of filter media replacement was provided in the board agenda packets. With the implementation of the quicklime feed system, new- filters should perform as expected and the media should not degrade prematurely. New.media for existing filters also gives higher capacity for filters which will be an improvement to the existing filters. Plans are to install three filters the winter of 2007/2008 and three filters the winter of 2008/2009. Detailed cQsts are not known at this time, but an estimate of $150,000 per filter with a total cost of $900,000 has been discussed. Mr. Winkler advised board members that when analyses were run the first time on the exiting six filters, they showed the media to be in marginal condition and that degradation of the media was occurring. When analyses were run a second time, to make sure tests were accurate, the media was rated poor. Mr. Cockerell suggested that the board adopt the 'schedule to rehabilitate the filters and said that Bury+Partners will provide a contract amendment detailing the costs at the next' board meeting. He added that because existing filters were being improved, bond monies could be used to pay for the project. President Dwyer made a motion to adopt the schedule to rehabilitate f"Ilters the winter of 2007/2008 and winter of 2008/2009. Treasurer Bauer seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The tenth order of business was presentation of Consultant Report - Crockett Camp. Project Mana2:er. Mr. Camp asked to refer his report, agenda item #10 to Executive Session. The eleventh order of business was presentation of Consultant's report- Bill Klem!. Consultant. Mr. Klemt stated that water levels had been measured and his formal report would be presented at the next board meeting. 9 The twelfth order of business was evaluation of city emplovee~ SSLGC General Mana2:er - John Bierschwale. Assistant City Mana2:er of Schertz. A City of Schertz employee performance evaluation form was provided to each board member in his board agenda packet. Mr. Bierschwale requested that the forms be completed by the next board meeting. He added that Mr. Cockerell's evaluation date is 'October 11,2007, and that he would be receiving a cost ofliving increase of 3.4% from the City of Schertz. President Dwyer directed board members to return the completed evaluations to Mr. Bierschwale by October 11,2007. President Dwyer closed General Session at 3:32 p.m. The thirteenth order of business was Executive Session called under Chapter 551 Government Code. Subsection 551.071. to seek the advice of its attorney on le2:al matters relatin2: to the Board of Directors' ri2:hts and liabilities under certain contracts. Section 551.072. to deliberate the purchase of and/or sale of certain real estate and Section 551.074. for deliberations re2:ardin2: a specific officer or employee. Executive Session was held from 3:44 p.m. to 4:39 p.m. The fourteenth order of business was to consider and take action as a result of A2:enda Item #13. President Dwyer opened General Session at 4:40 p.m. No action was needed as a result of Executive Session. " The fifteenth order of business was election of SSLGC Board Officers as reauired bv Bvlaws - Patrick Lindner. Le2:al CounseL Davidson & Troilo. Counsel Patrick Lindner began by stating that according to SSLGC's Bylaws, officers should be elected every three years. He added that an officer could be removed at any time with or without cause. Mr. Cockerell read from the Bylaws, "an officer shall serve for three year terms or until his or her successor is elected or appointed." He added that a list of the directors and officers and their titles and terms was provided in the board agenda packets. A slate of officers had been elected June 27, 2002, 'and Treasurer Bauer had been appointed January 26,2006. Mr. Cockerell suggested that the whole slate of officers be elected during the present meeting so that the election of officers would ,not be staggered. Secretary Wolverton directed Administrative Assistant Georgia Hanks to keep track of the date for the election of officers so that the election could be held every three years as required by the Corporation's Bylaws.. Treasurer Bauer made a motion to .re-elect the whole slate of officers in place. President Dwyer seconded the motion. Upon a vote being called the motion failed with Vice-President Cook, Secretary Wolverton and Director Greenwald voting against the motion. 10 Director Greenwald made a motion to nominate Vice-President Cook for president. Secretary Wolverton seconded the motion. Upon a vote being called the motion carried three to two. Vice-~resident Cook, Secretary Wolverton and Director Greenwald voted for the motion. Secretary Wolverton made a motion to nominate Treasurer Bauer for Vice- President. Vice-President Cook seconded the motion. President Dwyer asked for any additional nominations. With no other nominations from the board, President Dwyer asked Treasurer Bauer if he would be willing to serve if elected. Treasurer Bauer said yes. Upon a vote being called the motion passed by unanimous decisicjn. . Secretary Wolverton made a motion to nominate Director Greenwald for Secretary. Vice-President Cook seconded the motion. President Dwyer asked for any other nominations for secretary. With no other nominations by the board and with a vote being called the motion passed by unanimous decision. Vice-President Cook made a motion to nominate Secretary Wolverton as Treasurer. Director Greenwald seconded the motion. President Dwyer asked for any additional nominations. With no other nominations by the. board and with a vote being called the motion passed by unanimous decision. The new slate of officers included the following: Ramon Cook President Sydney Bauer Vice-President Ken Greenwald Secretary Jim Wolverton Treasurer Counsel Lindner advised the board that the change ill officers. would take effect immediately. The sixteenth order of business was additional Board of Directors discussion and/or comments. Counsel Lindner reminded board members that items for discussion not on the agenda should, be given to Ms. Hanks prior to the meeting in order for the item to be added. Agenda item 16 is for additional disCussion or comments for items already on the agenda. Vice-President Cook referred to ~genda item 9g, filter media replacement, i.e., changing out of the filter material to increase the efficiency of the filters. He asked if additional filters for the completion of the entire 20,000 ac-ft. would be needed. If new material is put in place and the new treatment process is installed and if it extends the life of the material, does it also increase the volume of water pushed through the filter? Mr. Winkler addressed the question by stating that one of the issues of the plain greensand in the existing media is a limitation in pressure differential across the media, i.e., 8 psi. Thisylimits the amount of water that can be run through a filter. The greensand plus proposed to replace the media with will allow 15 psi which will push more water through the 11 filters. Presently the filters are rated at 5 gpm per square ft. TCEQ wanted to limit the filters at 5 gpm per square ft, however, in reality the filters are getting approximately 3.2 gpm per square ft because of the 8 psi limitation. Increased pressure across the :filter will allow treatment of water from additional wells without adding additional filters. Vice- President Cook then asked if the new flow meters and valves in the lines of the filters would make permitting easier. Mr. Winkler answered affinnatively. No additional new discussion and/or comments were discussed. The seventeenth order of business was adjournment. President Dwyer declared the meetingadjourn~d at 4:51 p.m. The next regular meeting was scheduled October 18, 2007, in Seguin. /f~ DAY OF ~ MINUTES APPROVED TillS 2007. 41ft} ~~ Ken Greenwald . Secretary 12