SSLGC 05-21-2009MINUTES 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 May 2009, the Schertz-Seguin Local Government Corporation (SSLGC)
convened at 1:30 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
Patricia Ramirez
Robin Dwyer
Jim Wolverton
Terry Wells
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 provisions of
Texas law. Also in attendance were:
Alan Cockerell
Douglas Faseler
Don Taylor
Johnny Bierschwale
Susan Caddell
John Schraub
John Bailey
Georgia Hanks
Crockett Camp
Bill Klemt
John Winkler
Patrick Lindner
General Manager
Seguin City Manager
Schertz City Manager
Schertz Assistant City Manager
Seguin Director of Finance
Seguin Water Utility Manager
Water Superintendent
Administrative Assistant
Consultant/Project Manager
Hydrologist Consultant
Consultant parr)
COU11se1 (Davidson & Troilo)
The first order of business was the calling of the meeting to order.
President Sydney Bauer called the meeting to order at 1:30 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
Apri116, 2009.
Secretary Robin Dwyer made a motion to approve the April 16, 2009, minutes as written.
Vice-President 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's written report was included in the board agenda packets. He added
the following items to his written report:
o Water Production. Water sales and seasonal pumping are consistent with past years at
this time of year.
o Gonzales County Underground Water Conservation District (GCUWCD). General
Manager Alan Cockerell attended the GCUWCD meeting held May 12, 2009. Normal
business was conducted.
Water level measurements will be taken by GCUWCD General Manager Greg
Sengelmann, Hydrologist Bill Klemt and Mr. Cockerell during the first week of June
2009.
SSLGC legal counsel has submitted arguments against GCUWCD's granting of the
contested case hearing in regard to the Corporation's request for four new well permit
applications and requested the District to reconsider its decision. GCUWCD has 90 days
to respond. The District has requested that all charges from the hearing examiner be paid
by GCUWCD and then reimbursed by SSLGC.
o Guadalupe County Groundwater Conservation District (GCGCD). SSLGC received
approval for seven drilling permits in Guadalupe County. Presently the Corporation has
sufficient water rights for four production permits and intends to submit applications for
those permits in the near future.
o Region L. Mr. Cockerell attended the Region L meeting held May 7, 2009. Handouts
pertaining to presentations given at the meeting were included in the board agenda
packets. The following topics were addressed: "Potential Amendments to the 2006
Regional Water Plan," "Seawater Desalination" and "Brackish Water from the Wilcox."
o Regional Water Alliance. Mr. Cockerell attended the Regional Water Alliance meeting
held May 13, 2009. A copy of HDR's presentation on an interconnection study of
alliance members was included in the board agenda packets.
o Operations Report. Mr. Cockerell reported that the Corporation continues to work with
Peerless Equipment, Ltd., to get well #5 back in service.
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o Preliminary Budget & Water Rates. A proposed water rate schedule was included in
the board agenda packets. The fiscal year 2009/2010 budget and water rates will be
presented to the Board for approval at the June 2009 meeting. Discussion regarding
potential ways to increase revenue was held.
o Other Issues:
Nixon-Smiley High School Scholarships/Project Graduation. SSLGC scholarship
recipients for 2009 are Chester Casas, Jeffrey Medina and Brandon Stone. Mr. Cockerell
plans to attend graduation services on May 22, 2009, to present the scholarships. SSLGC
also contributed to Nixon-Smiley High School's "Project Graduation."
The fifth order of business was presentation of Treasurer's Reuort -Susan Caddell,
Finance Director & Alan Cockerell, General Manager.
A copy of the Treasurer's Report was included in the board agenda packets. The report was
prepared by Director of Finance Susan Caddell and reviewed by General Manager Alan
Cockerell. Mr. Cockerell recommended approval of the following report:
a. Financial Statements for the quarter ended March 31, 2009.
• Revenues, Expenses and Changes in Net Assets -Combined Statements
^ $118,671 (net income)
Includes water sales billed for the first debt service payment made on February 1,
2009, as well as the expenditure for the debt service payment.
• Revenues, Expenses and Changes in Net Assets -Operating Fund
^ -$4,371 (loss in net income)
The largest expenditure for this fund is for water leases which is 38% of total
expenditures. In April $55,960 of attorney fees was moved from the Operating Fund
to the Bond Fund. These expenditures are associated with well permits in Gonzales
County. When this amount is deducted, the Operating Fund will show an actual
income of approximately $50,000.
• Balance Sheet -Construction Fund
^ $3,645,738 (cash on hand)
Outstanding purchase orders amount to $2,610,000.
• Revenues, Expenses and Changes in Net Assets -Interest & Sinking Fund
^ $710,268 (net income)
Includes I & S rates paid by participating entities for the first and second quarter. It
also includes the first bond payment which was made February 1, 2009, in the
amount of $2,107,623.
Balance Sheet -Repair & Replacement Fund
^ $611,148 (cash balance)
Bond covenants require this balance to be $500,000. The water rate includes $.15
per thousand gallons to be put into this fund in order to build it up for lines and
facilities.
• Revenues, Expenses and Change in Net Assets -Future Development Fund
^ $130,127 (net income)
Includes expenditures of $67,561 for bonus water lease payments and land purchases.
• Revenues, Expenses and Change in Net Assets -Impact Fund
^ $176,267 (net income)
Includes impact fees of $173,310.
• Revenues, Expenses and Change in Net Assets -Operating Fund (comparative
statement)
^ -$149,201 (net decrease in net income from FY2007-2008)
The largest increase in expenditures is $249,132 in water leases.
• Working Capital Trend Chart
^ -$1,919,935 (net decrease in working capital since last quarter)
The first bond payment was made February 1, 2009 in the amount of
$2,107,623.
b. Investment Report for the quarter ended March 31, 2009.
Ms. Caddell presented the Investment Report for January 1 -March 31, 2009. Interest earnings
for quarter ending March 31, 2009, were approximately $15,000.
c. Reimbursement to the City of Seguin in accordance with the Management Services
Agreement for the quarter ended March 31, 2009.
Ms. Caddell presented the expenditure information for the quarter January 1 -March 31, 2009.
The total amount of reimbursement the City of Seguin requests from SSLGC for the second
.quarter of FY2008-2009 is $836,972.
Treasurer Wolverton made a motion to approve the Treasurer's Report, Agenda Item 5,
Sections a, b and c (financial statements, investment report and reimbursement to the City
of Seguin) for the quarter ended March 31, 2009. Secretary Dwyer seconded the motion.
Upon a vote being called, the motion carried by unanimous decision.
Ms. Caddell concluded her presentation by referring to a 2007 Revenue Bond Schedule which
itemized expenditures and outstanding purchase orders and was included in the board agenda
packets. A brief discussion was held regarding outstanding purchase orders.
The sixth order. of business was legislative update -General Counsel Patrick Lindner,
Davidson & Troilo.
President Bauer deferred Agenda Item #6 to Executive Session.
The seventh order of business was Guadalupe County expansion proiect -Alan Cockerell,
General Manager.
President Bauer deferred Agenda Item #7 to Executive Session.
The eighth order of business was Gonzales County expansion project -Alan Cockerell,
General Manager.
President Bauer deferred Agenda Item #8 to Executive Session.
Mr. Cockerell reported that the Corporation had received approximately 35 requests for bid
proposals on the Ashley/Ritchie grazing leases. The deadline for submitting proposals is 5:00
p.m. on June 10, 2009. A proposal will be presented to the Board for approval at the June 18~'
meeting.
President Bauer closed General Session at 2: 07 p. m.
The ninth 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.
President Bauer opened Executive Session at 2:10 p. m.
Executive Session was held from 2:10 p. m. to 3:22 p. m.
The tenth order of business was to consider and take action as a result of Agenda Item #9.
President Bauer opened General Session at 3:22 p. m.
No action was taken as a result of Executive Session.
The eleventh 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 twelfth order of business was adjournment.
President Bauer declared the meeting adjourned at 3:28 p.m.
The next regular meeting was scheduled June 18, 2009, in Seguin.
MINUTES APPROVED THIS ~ ~ DAY OF ~;/~~.. , 2009.
Robin Dw
Secretary