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SSLGC 09-18-2008MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS § COUNTY OF GUADALUPE § SCHERTZ-SEGUIN LOCAL § GOVERNMENT CORPORATION § On this the 18th day of September 2008, the Schertz-Seguin Local Government Corporation (SSLGC) convened at 1:33 p.m. in the City of Schertz Council Chambers located at 1400 Schertz Parkway, Building #4, Schertz, Texas. The following directors being present and in attendance: Sydney Bauer President Ken Greenwald Vice-President Robin Dwyer Secretary Jim Wolverton Treasurer Patricia Ramirez Director Hal Baldwin Ex-Officio and the following director being absent: Betty Ann Matthies 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: Alan Cockerell Doug Faseler Don Taylor Susan Caddell Johnny Bierschwale Larry Dublin John Schraub John Bailey Georgia Hanks Crockett Camp Bill Klemt John Winkler Patrick Lindner General Manager Seguin City Manager Schertz City Manager Seguin Director of Finance Schertz Assistant City Manager Schertz City Engineer Seguin Water Utility Manager Water Superintendent Administrative Assistant Consultant/Project Manager Hydrologist Consultant Consultant ~,arr) COllrlsel (Davidson & Troilo) The first order of business was the calling of the meeting to order. President Sydney Bauer opened the meeting at 1:33 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 meeting held on August 14, 2008. " Treasurer Jim Wolverton made a motion to approve the minutes as written. Director Patricia Ramirez 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. General Manager Cockerell began by introducing John Bailey, SSLGC's new water superintendent. Mr. Cockerell stated, "Mr. Bailey has numerous years of experience in the water industry and will be a great asset to the Corporation." Mr. Cockerell's written report was included in the board agenda packets. He summarized the water production details included in his report and added that enough rain had occurred in August to curtail lawn watering, therefore, water production was average in comparison to the past four years in August. President Bauer asked for clarification of Chapter 36 of the water code which was included in Mr. Cockerell's report regarding a Guadalupe County Groundwater Conservation District Public Hearing to be held on September 25, 2008. The meeting will be held in Seguin to discuss proposed rule changes. Counsel Patrick Linder defined Chapter 36 of the water code as law regarding the regulation of water resources as applied to groundwater districts. Mr. Cockerell plans to attend the meeting and will update the board with any rule changes. Board members are invited to the Public Hearing and Mr. Cockerell asked how many would like to attend? If more than two attend, the Corporation would have to post the meeting. President Bauer stated that he may possibly attend and Mr. Cockerell stated that Secretary Robin Dwyer may also attend. The fifth order of business was appointment of Impact Fee Advisory Committee member -Alan Cockerell, General Manager. At the request of the Corporation's Executive Committee, the Corporation is planning to adjust how its impact fee is applied to different meter sizes. The Impact Fee Committee will be called together to review impact fee policy and make a recommendation to the board. A vacancy on the Impact Fee Committee was created when Ken Greenwald was appointed to SSLGC's board of directors. The City of Schertz recognized Mr. Steven F. White as a possible candidate for the position. Mr. White who is a longtime Schertz resident is a retired Air Force Master Sergeant. He is active in the City of Schertz as president of the Schertz Economic Development Corporation and has also served as Executive Director for Economic Development. General Manager Cockerell introduced Mr. White and requested that he be appointed to the open position. Treasurer Wolverton made a motion to appoint Mr. Steven F. White to the open position on the Impact Fee Advisory Committee. Vice-President Greenwald seconded the motion. Upon a vote being called, the motion passed by unanimous decision of the voting directors present at the meeting. Secretary Robin Dwyer was not yet present. Secretary Dwyer arrived at 1: 37 p. m. The sixth order of business was approval of Management Services Agreement with Cities of Schertz and Seguin -Susan Caddell, Director of Finance and Alan Cockerell, General Manager. Management Services Agreements are annual agreements between the Corporation and the City of Schertz and the Corporation and the City of Seguin which are renewed at the beginning of each fiscal year. The documents which were included in the board agenda packets have been reviewed by each city and are recommended for approval. The only change in either agreement was with the City of Seguin. It adds General Manager Cockerell to the authorized purchasing list for the City of Seguin so that he can make purchases for the Corporation, if necessary. Treasurer Wolverton made a motion to approve the Management Services Agreement between SSLGC and the City of Schertz contingent on legal review and approval by Counsel Patrick Lindner. Vice-President Greenwald seconded the motion. Upon a vote being called, the motion passed by unanimous decision. Treasurer Wolverton made a motion to approve the Management Services Agreement between SSLGC and the City of Seguin contingent on legal review and approval by Counsel Patrick Lindner. Secretary Dwyer seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The seventh order of business was FY2007/2008 Budget Amendment -Susan Caddell, Director of Finance and Alan Cockerell, General Manager. A proposed amendment to the Corporation's FY2007/2008 operating budget which was included in the board agenda packets is recommended for approval by Ms. Caddell and Mr. Cockerell. The amendment is necessary in order for the Corporation to purchase a new mower and to supplement higher chemical and electricity costs for the fiscal year than expected. Operating revenues from both cities and other customers will cover the overage. Treasurer Wolverton made a motion to amend SSLGC's FY2007/2008 budget as stated in Resolution #SSLGC R08-08. President Bauer seconded the motion. Upon a vote being called, the motion passed by unanimous decision. 3 The eighth order of business was selection of Auditor for FY2008/2009 -Susan Caddell, Director of Finance and Alan Cockerell, General Manager. The City of Seguin solicited proposals for three-year contracts for auditing services for the City of Seguin and SSLGC. A summary of the selection process was included in the board agenda packets. Two firms were selected to be interviewed by an Interview Committee which included Ms. Caddell and Mr. Cockerell. After the interview process in which experience and service provided were considered important credentials, committee members selected Armstrong, Vaughan and Associates. They have conducted annual audits for the Corporation for several years. Several board members and managers expressed concern over the same firm conducting the Corporation's audit for more than five years. Ms. Caddell advised board and staff members that beginning with FY2008/2009 auditing firms are required to follow a new risk assessment standard. Each year they will reassess internal controls and the risk of the entity they are auditing. After discussion, staff requested approval of Resolution #SSLGC R08-09 to authorize General Manager Cockerell to sign an engagement letter for the fiscal year ended September 30, 2008 financial audit with Armstrong, Vaughan and Associates. Treasurer Wolverton made a motion to approve authorization for the General Manager to sign an engagement letter with Armstrong, Vaughan and Associates to perform SSLGC's FY2008/2009 financial audit with the understanding that field representatives would not be the same for the Corporation as the Cities of Schertz and Seguin. Vice-President Greenwald seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The ninth order of business was status of off-weak water sales efforts -Alan Cockerell, General Manager. Mr. Cockerell referred to a handout of an Interlocal Agreement for off-peak water sales between SSLGC and the City of Selma. The Corporation has excess water to sell in off- peak times. The Interlocal Agreement would be an attachment to the contract SSLGC presently has with the City of Selma and allow for off-peak water sales. The original contract limits the City of Selma to 800 ac-ft per year at a take rate of 1,000 gpm. The Interlocal Agreement would allow Selma to take off-peak water (November 1 to March 31) which would not be deducted from the original 800 ac-ft. The Corporation would charge the City of Selma the same rate it charges Springs Hill WSC. Counsel Patrick Lindner had reviewed the changes made by the City of Selma to the off-peak contract and did not find significant differences. Selma did recommend changing the term of the contract to begin October 15, 2008, and end October 14, 2009, however, the water would be taken from November lst to March 31St. The Schertz and Seguin City Councils will also have to approve the agreement. Discussion was held regarding the term of the contract. Board and staff members agreed that the term should end December 31, 2009 instead of October 14, 2009. Mr. Cockerell was directed to discuss the change with the City of Schertz officials. 4 Treasurer Wolverton made a motion for the Corporation to enter into an Interlocal Agreement with the City of Selma for off-peak water sales with the term ending December 31, 2009 contingent on approval by the City Councils of Schertz and Seguin. Director Ramirez seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The tenth order of business was Work Authorization #4 for Environmental Protection Agency (EPA) Risk Management Plan (RMP) - John Winkler, Lockwood, Andrews & Newnam, Inc. (LAN) and Alan Cockerell, General Manager. The Corporation is required by the EPA to maintain a 1tMP for the amount of chlorine on location at its Nixon Water Treatment Plant (WTP). When the EPA conducted an inspection of the WTP on June 19, 2008, the Corporation was fined $640.00, mostly for not having an updated RMP. Work Authorization #4 which was included in the board agenda packets provides for LAN to prepare the necessary analysis and documentation required by the EPA for the RMP. Mr. Cockerell recommended approval of Work Authorization #4 from LAN in the amount of $3,500 to update and resubmit the Corporation's 1ZMP. Secretary Dwyer made a motion to approve Work Authorization #4 from LAN in the amount of $3,500 to update and resubmit SSLGC's RMP to the EPA. Vice- President Greenwald seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The eleventh order of business was approval for purchase of three stainless steel umps -John Winkler, LAN and Alan Cockerell, General Manager. Mr. Cockerell referred to a bid tabulation from proposed vendors which was included in the board agenda packets. The Corporation had requested bid proposals for three new Goulds stainless steel pumps which would complete the installation of all stainless steel pumps for its eight wells. Three bids were received. Pump & Power Equipment submitted the most favorable bid of $77,717.00. Funds for the purchase were included in the FY 2008/2009 operating budget. Consultant John Winkler and SSLGC staff recommended approval of the purchase. Secretary Dwyer made a motion to approve authorization for the General Manager to purchase three stainless steel pumps from Pump & Power Equipment in the total amount of $77,717.00. Director Ramirez seconded the motion. Upon a vote being called, the motion passed by unanimous decision. General Manager Cockerell reconvened to Agenda Item #9, Status of Off-Peak Water Sales Efforts Assistant City Manager John Bierschwale left the meeting in progress to call the City of Selma to confirm a change of date for the term of the Inter-Local Agreement with SSLGC for off-peak water sales. Selma officials agreed to the change and the Corporation will move ahead with negotiations and present the Agreement to the City Councils of Schertz and Seguin for approval. s The twelfth order of business was Gonzales County Water Treatment Plant (WTP) Improvement Project -Tom Caponi, Burn+Partners & Alan Cockerell, General Manager. General Manager Cockerell presented the status of the WTP Improvement Project. The information was included in his Manager's Report. He and Consultant Tom Caponi have made a final walk-through of the WTP. All systems for filter rehabilitation, installation of rate-of--flow controllers and lime slurry are operational. Although no major issues remain, retainage will be paid to Bryan Construction when the last few minor issues are resolved. Caustic use has decreased by 50% as expected. Treasurer Wolverton asked General Manager Cockerell to evaluate the present hardness of the Corporation's water in relation to past analyses and compared to other water systems. Consultant John Winkler stated he would provide that information. Mr. Cockerell added that filters #1 and #3 at the WTP have been rehabilitated. The Corporation is presently in the process of soliciting bids to rehabilitate the remaining four filters this winter. A recommendation will be presented to the Board at the October 2008 meeting. The thirteenth order of business was Guadalupe County Expansion Project -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #13 to Executive Session. The fourteenth order of business was Gonzales County Expansion Project -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #14 to Executive Session. The fifteenth order of business was evaluation of General Manager -Johnny Bierschwale, Assistant City Manager. President Bauer deferred Agenda Item #15 to Executive Session. President Bauer closed General Session at 2:24 p. m. The sixteenth order of business was Executive Session called under Chapter 551 Government Code, Subsection 551.071, to seek the advice of its attorney on legal matters relating to the Board of Director's rights 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 regarding a specific officer or employee. Executive Session was held from 2: 37 p. m. to 3: 30 p. m. The seventeenth order of business was to consider and take action as a result of Agenda Item #16. President Bauer opened General Session at 3: 30 p. m. As a result of Executive Session Counsel Patrick Lindner requested the Board to consider a motion to authorize the General Manager to sign an Earnest Money Contract with Edward Blumberg and the Booth Trust, and to sign a Water Lease with the Booth Trust. Secretary Dwyer made a motion to approve authorization for the General Manager to sign an Earnest Money Contract with Edward Blumberg and the Booth Trust, and to sign a Water Lease with the Booth Trust. Treasurer Wolverton seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The eighteenth order of business was additional Board of Directors discussion and/or comments. No additional discussion was held. The nineteenth order of business was adjournment. President Bauer declared the meeting adjourned at 3:31 p.m. The next regular meeting was scheduled October 16, 2008, in Seguin. MINUTES APPROVED THIS ~ ~~ DAY OF ©~ ~1~ 2008. Nva.a v~sai J