SSLGC 04-16-2009MINUTES 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 April, 2009, the Schertz-Seguin Local Government Corporation (SSLGC)
convened at 1:35 p.m. in the City of Seguin Council Chambers located at 210 E. Gonzales,
Seguin, Texas. The following members being present and in attendance:
Sydney Bauer
Patricia Ramirez
Robin Dwyer
Jim Wolverton
Terry Wells
Betty Ann Matthies
Hal Baldwin
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 provisions
of Texas law. Also in attendance were:
Alan Cockerell
Don Taylor
Doug Faseler
Susan Caddell
John Bailey
Georgia Hanks
Sam Willoughby
Paul Gonzalez
Bill Klemt
John Winkler
Crockett Camp
General Manager
City Manager of Schertz
City Manager of Seguin
Finance Director of Seguin
Water Superintendent
Administrative Assistant
Schertz Public Works Director
Legal COlll1Se1 (Davidson & Troilo)
Hydrologist Consultant
Consultant
Consultant/Project Manager
The first order of business was the calling of the meeting to order.
President Sydney Bauer called the meeting to order at 1:35 p.m.
The second order of business was uublic 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
March 26, 2009.
Secretary Robin .Dwyer made a motion to approve the minutes of the March 26, 2009,
meeting as written. Treasurer Jim Wolverton 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 agenda packets. He highlighted the
following items in his report:
• Gonzales County Underground Water Conservation District (GCUWCD)
General Manager Alan Cockerell attended a GCUWCD Public Hearing on Apri19, 2009.
The Public Hearing was held to receive comments from interested parties on
GCUWCD's Management Plan. GCUWCD's new plan does not include a managed
amount of available groundwater. After discussing the issue with the Water
Development Board, the District deferred this issue until the new "Desired Future
Conditions" (RFC's) are set. The District will approve permits on the basis of GAM
modeling and the 100 ft. drawdown in 50 years.
Mr. Cockerell attended the regular meeting of GCUWCD on April 14, 2009. He handed
.out the agenda for the meeting and called attention to the following agenda items:
o Agenda Item #5 -Discuss and consider renewal of a drilling production permit
filed by SSLGC for its well #8. The well permit was renewed. Mr. Cockerell
added that SSLGC's permit for well #7 expires in July and a request for renewal
has already been submitted. Permits for wells 1-6 will expire in October of 2009.
GCUWCD's rules have changed and presently permits are renewed by Board
action every five years.
o Agenda Item #6 -Discuss and consider adopting the revised Management Plan.
The new Management Plan was adopted.
o Agenda Item #8 -Discuss and consider approving a contract for services with
Daniel B. Stevens & Associates. The contract with Daniel B. Stevens &
Associates was approved for the services of Andy Donnelly who was previously
employed by the Water Development Board to perform future GAM modeling for
GCUWCD.
After the regular meeting of the GCUWCD, a Public Hearing was held to consider
issuance of SSLGC's four well permits and transportation permit. The permits were not
approved. The GCUWCD granted a Contested Case Hearing and party status to four
parties: 1) Water Protection Association; 2) San Antonio Water System; 3) Gonzales
Ranch, LLC; and 4) Dorothy Ploeger. Mr. Cockerell noted that GCUWCD's district
a
manager did not oppose SSLGC's permit applications, but he will be a part of the
Contested Case Hearing according to the District's rules. Mr. Cockerell stated that he
had requested Gonzales County landowners who have water leases with the Corporation
to attend the Public Hearing. Several of these landowners attended the Public Hearing
and showed strong support for SSLGC. He added that the Mayor of Smiley attended the
Public Hearing and said that he did not oppose SSLGC's permits as long as water was
available and that the decision of available water should be left up to the District. The
Mayor concluded that he understood SSLGC's plan included 20,000 acre-ft and it had
invested a considerable amount of capital in the project. He felt the GCUWCD Board
should allow the Corporation to complete its project.
• Guadalupe County Groundwater Conservation District (GCGCD) -The GCGCD held its
regular meeting on April 9, 2009. SSLGC's request for a well field application (eight
drilling permits) and GCGCD's establishment of permit application fees were included
on the agenda. Drilling permits were set at $100; productions permits were set at $500;
and if additional expenses are incurred additional charges maybe applied. Mr. Cockerell
will ask GCGCD General Manager Ron Naumann to clarify additional charges.
• Operations -Discussion was held regarding water leaks on the Corporation's pipeline
and well heads. Mr. Cockerell stated that the Corporation has a good network of property
owners who advise it of water leaks on easements located on their properties.
Well #5 has a small leak on its well head and has not been running. Peerless
representatives are scheduled to repair it the week of Apri120~'. They have received parts
for well #1 and plan to work on both wells during the same time frame.
• TCEQ Violation Notice - Mr. Cockerell reported that SSLGC has received a Notice of
Violation for failing to submit Disinfectant Level Quarterly Operating Reports
(DLQOR's) for the 4~' quarter of 2008. He added that the notice was for a reporting
violation only. All test results had been completed and were within TCEQ requirements.
The Corporation was not aware that it had to report DLQOR's because it is a wholesale
provider and its customers are required to report this information on a quarterly basis.
After conferring with TCEQ representatives, he found that the TCEQ requires the
Corporation to provide these reports because it has a separate water supply number than
its customers. A copy of the notice was sent to SSLGC's wholesale customers. The
issue has been addressed and future reports will be provided to the TCEQ as required.
Secretary Dwyer noted that the technical memorandum from Consultant John Winkler regarding
SSLGC's potential Guadalupe well field which was included in the board agenda packets did not
appear to have all of its pages. Mr. Cockerell will provide the_ complete memorandum to the
Board members at a later date.
3
The fifth order of business was Election of Officers - Sydney Bauer, President of Board.
Due to the departure of Director Ken Greenwald, the position of vice-president of SSLGC's
board of directors was left vacant. President Sydney Bauer requested nominations for this
position. .
Secretary Dwyer made a motion to nominate Director Patricia Ramirez for the position of
vice-president of the board of directors of SSLGC. Treasurer Wolverton seconded the
motion. Secretary Dwyer made a motion that nominations cease and that Ms. Ramirez be
approved by acclamation. With no further nominations, a vote was called and the motion
carried by unanimous decision.
The sixth order of business was Drought Contin~ency & Water Emergency Resuonse Plan,
Resolution SSLGC R09-O1-Alan Cockerell, General Manager.
General Manager Cockerell gave a brief summary of the Corporation's Drought Contingency
and Water Emergency Response Plan which was included along with Resolution SSLGC R09-O1
in the board agenda packets. The Texas Administrative Code requires that wholesale water
suppliers have a drought contingency plan. Mr. Cockerell prepared the plan by following the
basic requirements of the Texas Administrative Code and plans to build on those guidelines in
the future. The Corporation's goal is to encourage the conservation and proper use of water and
~to notify its customers when use of their alternate water sources or restrictions may be needed.
Mr. Cockerell noted that although stages of water conservation are included in the plan, the
Corporation as a wholesale water provider will not publicize the stages of water restriction to the
public. The customers of the Corporation, e.g., the Cities of Seguin and Schertz, have Drought
Contingency Plans and will publicize the various stages of water restriction to their customers.
The Corporation monitors its monthly permitted amount of water on a weekly basis in order not
to exceed its monthly permitted usage of 125% and remain compliant with GCUWCD's rules
and regulations.
The TCEQ and Water Development Board require that water restriction conditions are addressed
in contracts with customers. Although these conditions are not addressed in contracts SSLGC
presently has with its customers, pro-rata allocation conditions will be included in any new
contracts acquired by SSLGC. Secretary Dwyer added that in regard to existing contracts the
Corporation has with its customers, the Corporation could fall back on Force Majure clauses
which were included in the contracts in case of emergencies beyond its control. Mr. Cockerell
concluded that SSLGC would send its Drought Contingency and Water Emergency Response
Plan to all of its customers when the Plan is approved.
Mr. Cockerell stated that General Counsel for the Corporation Patrick Lindner had reviewed the
Plan and found no issues with it. He requested approval of Resolution SSLGC R09-O1.
Secretary Dwyer made a motion to adopt SSLGC's Drought Contingency and Water
Emergency Response Plan to promote the responsible use of water as stated in Resolution
SSLGC R09-Ol. Vice-President Patricia Ramirez seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
The seventh order of business was Water Conservation Plan, Resolution SSLGC R09-02 -
Alan Cockerell, General Manager.
Mr. Cockerell reported that although many entities combine drought contingency and water
conservation plans, the TCEQ and Water Development Board require two separate plans. Again
he followed the requirements of the Texas Administrative Code to prepare the Corporation's
Water Conservation Plan. Successive contracts between SSLGC and its customers are required
to address target objectives of the Plan. Mr. Cockerell gave a brief summary of the goals of the
Corporation which were addressed in its Plan. Discussion was held regarding the relationship
between the Corporation and its customers in regard to water conservation and the monitoring of
its system.
Treasurer Wolverton made a motion to approve SSLGC's Water Conservation Plan,
Resolution SSLGC R09-02. Secretary Dwyer seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
The eighth order of business was Gonzales County WTP Filter Rehabilitation Proiect,
Phase II -Alan Cockerell, General Manager.
Mr. Cockerell reported that a fmal walk-through was conducted with Lockwood, Andrews and
Newnam and Associated Construction Partners representatives on Apri18, 2009. The contractor
has completed the job and all filters are in service. The fmal retainage payment will be held until
two minor items are completed.
The ninth order of business was Legislation Update -Counsel Patrick Lindner, Davidson
& Troilo.
President Bauer deferred agenda item nine to Executive Session.
The tenth order of business was Guadalupe County Expansion Proiect -Alan Cockerell,
General Manager.
President Bauer deferred agenda item ten to Executive Session.
The eleventh order of business was Gonzales County Expansion Proiect -Alan Cockerell,
General Manager.
President Bauer deferred agenda item eleven to Executive Session.
President Bauer closed General Session at 2:18 p. m.
The twelfth order of business was Executive Session called under Chanter 551 Government
Code, Subsection 551.071, to seek the advice of its attornev 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 2:19 p:m. to 3:25 p.m.
The thirteenth order of business was to consider and take action as a result of Agenda Item
Twelve.
President Bauer reopened General Session at 3: 26 p. m.
As a result of Executive Session and based on recommendations from Counsel Paul Gonzales,
the following motion was made:
Agenda Item 11-Gonzales County Expansion Project
Secretary Dwyer made a motion to authorize and endorse additional action by SSLGC
staff and counsel, consistent with confidential and privileged attorney-client consultations
in executive session, relating to the Gonzales County Expansion Project. Treasurer
Wolverton seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The fourteenth order of business was Consideration and/or Action on questions and
possible items to be placed on the next agenda.
No additional discussion was held.
The next regular board meeting was scheduled May 21, 2009, at 1:30 p.m. in Schertz, Texas.
The fifteenth order of business was adiournment.
President Bauer declared the meeting adjourned at 3:27 p.m.
MINUTES APPROVED THIS d~~5~
DAY OF ~ , 2009.
el~
Robi Dwyer
Secretary