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02-21-2002 MINUTES OF THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS § COUNTY OF GUADALUPE § SCHERTZ/SEGUIN LOCAL § GOVERNMENT CORPORATION § On this the 21st day of February 21, 2002, the Schertz/Seguin Local Government Corporation convened at 1:30 p.m. in the City of Schertz Fire Department Training Room, 1400 Schertz Parkway, Schertz, Texas with the following members being present and in attendance: Robin Dwyer President Ramon Cook Vice-President Jim Wolverton Secretary Sydney Bauer Director Gloria Rivera Director Constituting a majority of the persons appointed to the Boazd and a quorum for the - - transaction ofbusiness, and notice of such meeting having been duly given in accordance with the provisions of Texas law. Also in Attendance were Ken Greenwald, Betty Ann Matthies, Dewey P. Cashwell, Jr. and Jack Hamlett. The first order of business was the calling of the meeting to order at 1:30 p.m. by President Robin Dwyer. The second order of business was approval of the minutes for the meeting of January 17, 2002. Director -Bauer inquired why the minutes still say organizational meeting of the Schertz/Seguin Local Government Corporation. That would have been the first meeting, but no longer. The minutes should now say regulaz meeting. Director Bauer moved to approve the minutes, with the aforementioned correction, for the January 17, 2002 meeting.. Secretary Wolverton seconded the motion, which carried with unanimous vote of all Directors present. The third order of business was presentation of the audit for FY 2001 by Nancy Vaughan of Armstrong, Vaughan & Associates. Ms. Vaughan explained she would cover some of the highlights and then answer questions. The Corporation has $31,935 in cash and $53,797,000 in total assets. The ..operations of the Corporation over the last yeaz amounted to a net loss of $168,000. President Dwyer asked the difference between capitalized and uncapitalized. Ms. Vaughan answered capitalized means value over a number of years -depreciation over the life of the assets. Uncapitalized means expenses during a specific time -there is no depreciation. Director Bauer asked what the basis is for amortization. Ms. Vaughan answered it is 30 years. Ms. Vaughan referred to the Management Letter and said she didn't note any internal adjustments. The Corporation, however, is losing some of its history because the software doesn't transfer. Her recommendation is that one City do all of the accounting. Director Bauer asked if she is recommending the Corporation have its own set of software. Ms. Vaughan replied there would still be a learning curve involved. President Dwyer suggested putting discussion of this matter on next month's meeting agenda. Jack Hamlett stated that ~ the finances are handled by Schertz -and the management operations of administrative services are handled by Seguin. Dewey Cashwell mentioned there is another possibility and that is that the City Managers be co-directors. President Dwyer indicated they would have to make changes to their by-laws. He then asked Vijay Jain, Finance Director of City of Schertz, how the idea of co-directors sets with him. Mr. Jain replied he would have to operate two softwazes concurrently. Pat Lindner, lawyer for the Corporation, recommended discussion of this be placed on the next meeting agenda. Director Rivera moved to accept the audit for FY 2001, as presented. Secretary Wolverton seconded the motion, which carried by unanimous vote of all Directors present. The fourth order of business was an update on easement acquisition. Mr. Hamlett reported they are down to the last six pazcels, which means the acquisitions are about 97% or 98% completed. Hopefully, they have only two more condemnations. President Dwyer observed if they have only two cases who intend to appeal, he thinks they are on the downhill side. Vice-President Cook inquired if everything is all cleaz on the Seguin leg. Mr. Hamlett answered they have one left in Seguin and the rest are in Schertz. Most have been very .cooperative. The fifth order of business was presentation of the Executive Director's report. New staff member, Linda Duncan, was introduced. President Dwyer asked what her job entailed. Mr. Hamlett replied her job is to work with the property owners and attend Go-,~za~~ fie'. Underground District meetings. In other. words, to interact with people. President Dwyer welcomed her to the Corporation. The sixth order of business was discussion and possible action on recommendation to partner with the City of Seguin to repair and resurface Sutherland Springs Road. Mr. Hamlett commented the construction has created some problems. They went to the Seguin City Council asking them to approve an overlay. The Council approved $75,000. Director Bauer asked if the contractor would be getting another $25,000 and Clay Roming replied no. The remaining funds are available to the City and it's actually $23,500. Director Bauer commented they may be setting a precedent they don't want to set. It leaves the door open to Schertz and Cibolo. Mr. Roming admitted he could see the concern, but this is not an allocation for road repair. Director Bauer then questioned if this could be done without any liability and Mr. Roming replied yes. President Dwyer stated the way he understands it, they could reallocate funds to a big project versus just a patching job on the road. Vice-President Cook asked what the distance is and Mr. Roming replied its'/4 of a mile. Secretary Wolverton asked Mr. Lindner. about the legality of using bond money. Mr. Lindner indicated he had a copy of the contract with him and be sees no prohibition on either City. He had called Jeffrey Kuhn of Fulbright & Jaworski and Mr. Kuhn was comfortable with the proposal. President Dwyer questioned which contractor this is and Mr. Roming replied McLean Construction. Mr. Roming then added there might be a similar road in Schertz. John Bierschwale added that road in Schertz might be Live Oak Road. Mr. Hamlett stressed again they are not allocating more money. This is subject to McLean Construction accepting the stipulation. Vice-President Cook moved to approve the partnering with the City of Seguin to repair and resurface Sutherland Springs Road .subject to McLean Construction accepting the stipulation. Secretary Wolverton seconded the motion, which carried by unanimous vote of all Directors present. The seventh order of business was discussion and possible action authorizing reimbursement to the City of Seguin for hours incurred by Ruben Perez from October 1, 2001 through January 31, 2002. Director Rivera moved to approve reimbursement to the City of Seguin for the -hours incurred by Ruben Perez from October 1, 2001 through January 31, 2002. Director Bauer seconded the motion, which carried by unanimous vote of all Directors present. The eighth order of business was presentation of the Engineer's Report and discussion and action in response to the report. Mr. Roming said the Board may wonder what the Transportation Act has to do with this project. It is because this is an underground form of transportation. Mr. Roming had distributed some information to those present. He reported that all well collection is complete. All wells have passed the pressure tests. They still need to disinfect the lines. The contractor did not submit a payment request at the end of January, so it will be submitted in February. President Dwyer inquired about progress on ground condition and IVIr. Roming replied 90%. Mr. Roming also mentioned they keep ignoring him on clean up. They found twenty joints or pipes that were damaged. President Dwyer asked if the damage was in the joints and 1Vir. Roming replied no, it was in the length of the pipe. Mr. Roming referred. to a pipeline project where it was necessary to send the pipe to the lab in case there were defects. They may have to do the same thing for this project. They don't want to find defects when they go to the pressure testing. Ken Greenwald asked if they still have -some of the lines taken out. Mr. Roming replied yes -but all were damaged. There was a brief discussion about this with both President Dwyer and Director Bauer encouraging Mr. Roming to pursue the resolve of this situation. Mr. Roming reported meeting with McLean Construction on January 28`h and they currently have a projected completion date of August 26`x. There is no doubt we are looking at a July/August/September completion date. Mr. Roming also mentioned they had. ordered valves from. Abco who went on str~ce last June and they are still on strike. President Dwyer .asked if they could get another company. Mr. Roming replied no -this is absolutely the correct valve for this project. There is an alternative valve that could be delivered in 8-10 weeks and Abco says they can deliver. President Dwyer briefly mentioned they had received lots of bad publicity about. the bridge and finishing of the walkway. Mr. Roming stated the. ground storage tank is complete and he will ask them to repaint the floor. Regarding the wells, Bill Klemt related that 1, 3 and 6 passed. They still need some work done on 5 and 4. They will start the final pumping tests on 2 next week. Mr. Roming pointed out three wells are complete, which they could use today. There was a brief discussion about security and regarding that subject, Vice-President- Cook inquired if camera ID had been approached. Mr. Roming admitted it's a possibility. Mr. Lindner suggested the Boazd, upon recommendation of Mr. Roming, Mr. Cashwell and himself, appropriate an Executive Director to take what action is necessary ., even if it's termination, to require McLean Construction to honor their contract. ~~ie~,. Director Bauer moved that the Board .~pg~c~~ an Executive Director to require that McLean Construction honor their contract. Director River seconded the motion, which carried by unanimous vote of all Directors present. The ninth order of business was presentation of the Consultant's Report and discussion and action in response to the report. Crockett Camp emphasized he was intent on getting the project fmished in a timely manner. They held a meeting last week and discussed possibilities . They are thinking about the future and have to be prepared for demands sooner or later. Mr. Hamlett acknowledged they meet regularly on that. President Dwyer asked if they had discussed how the Corporation might pay for these demands. Mr. Hamlett commented he is willing to go back to City Council. Secretary Wolverton asked if-SAWS efforts would mess us up. Mr. Camp replied SAWS is looking at 30,000 feet. We need to secure our position (20,000 feet). They are not active in the same area we aze, so he doesn't think they will be confrontational to us. Director Rivera reminded the. Board the Regional Plan calls for only 16,000 feet, so 30,000 is excessive. Vice-President Cook asked if their location is down from us or even with us. Mr. Camp answered they aze below us. The tenth order of business was an Executive Session, but there was no need to hold one. As a result of that, there was no need for item 11 - action as a result of the Executive Session. President Dwyer asked about agenda items for the next meeting. Mr. Lindner said they need an election of officers. The current officers can be re-elected. President Dwyer noted the next meeting would be March 21~` at 1:30 p.m. in Seguin. There being no further business to discuss, President Dwyer adjourned the meeting at 3:03 p.m. NIINUTES APPROVED this the -day of , 2002. Signatures of all Directors Robin V. Dwyer, President Ramon J. Cook, Vice-President Jim Wolverton, Secretary Sydney Bauer, Director Gloria Rivera, Director