SSLGC 11-19-2009MINUTES OF THE
SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
SCHERTZ-SEGUIN LOCAL §
GOVERNMENT CORPORATION §
On this the 19th day of November 2009, the Schertz-Seguin Local Government Corporation
(SSLGC) convened at 1:34 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
Robin Dwyer Secretary
Jim Wolverton Treasurer
Hal Baldwin Ex-Officio
Betty Ann Matthies Ex-Officio
and the following directors being absent:
Patricia Ramirez Vice-President
Andrew Koenig Director
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
Susan Caddell
Don Taylor
Johnny Bierschwale
Emery Gallagher
Georgia Hanks
Larry Dublin
Crockett Camp
Bill Klemt
John Winkler
Patrick Lindner
General Manager
Seguin City Manager
Seguin Finance Director
Schertz City Manager
Schertz Assistant City Manager
Seguin Water Utility Manager
Administrative Assistant
Schertz City Engineer
Consultant/Project Manager
Hydrologist Consultant
COriSUltant (Walker Partners)
COUnsel (Davidson & Troilo)
The first order of business was the Calling of the Meeting to Order.
President Sydney Bauer called the meeting to order at 1:33 p.m.
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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
October 15, 2009.
Secretary Robin Dwyer made a motion to approve the October 15, 2009 minutes 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.
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 pumpage for the month of November 2009 was 59% of
SSLGC's permitted amount as mandated by the Gonzales County Underground Water
Conservation District (GCUWCD). Water production for the month was lower than the
seasonal trend because of the large amount of rain received in the months of September
and October.
o Region L. Mr. Cockerell attended a Region L quarterly meeting in Sari Antonio on
November 5, 2009. He gave a brief summary of several handouts which were included in
the board agenda packets and listed below:
• Description of SSLGC's current project expansion as show in the Regional
Carrizo Plan - Mr. Cockerell is working with consultants to modify the plan to
include wells in Wilson County and potential development of Wilcox wells.
• LCRA-SAWS Water Project - A map was provided at the meeting which shows
the route of SAWS' pipeline going through Guadalupe County. The previous
pipeline route went through Wilson County and terminated in Southern Bexar
County.
• Springs Hill Comments on WMS #17 - Ms. Jeanne Schnuriger, general manager
of Springs Hill Water Supply Corporation, sent a memo to the South Central
Regional Planning Group to suggest an alternate route for the groundwater project
sponsored by GBRA in Eastern Gonzales County. The present route moves water
to San Marcos. Springs Hill, Gonzales County Water Supply and San Jose Water
are requesting that water be directed through Guadalupe County and into Comal
County. Discussion was held regarding the potential costs for the project.
• GBRA Basin Briefing - Mr. Cockerell referred to an agenda for a GBRA Basin
briefing he had attended which was held November 2, 2009, in San Marcos. He
stated that most of the items on the agenda would also be discussed at the
Regional L Meetings.
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o Gonzales County Underground Water Conservation District (GCUWCD). Mr.
Cockerell attended the GCUWCD meeting held November 10, 2009. He highlighted the
following items:
• Canyon Regional Water Authority's permit applications for 3,000 ac-ft were
approved.
• Rule changes were discussed and a workshop was scheduled for November 18,
2009. Mr. Cockerell attended the workshop and is working with general counsel,
consultants and staff to prepare and submit comments to the District for these rule
changes. The District plans to discuss the rule changes at its December 2009
meeting and approve the rules in January 2010.
• Water Level Measurements - At the request of several GCUWCD board members
Greg Sengelmann took water level measurements from several key wells after a
couple of wet months and found they had recovered.
o Guadalupe County Groundwater Conservation District (GCGCD). Mr. Cockerell
noted that GCGCD did not have a meeting during the month of November. Mr. Bill
Klemt gave a brief summary of a drawdown measurement report that he had prepared and
submitted to GCGCD. He stated that the average water-level drawdown for the Wilcox
during the period January 2009 to October 2009 was a little less than 1.0 ft. The average
Carrizo water-level drawdown for the same period was a little more than 1.5 ft. Mr.
Klemt stated that water levels were performing as predicted with little impact from
SSLGC's well field.
o Operations Report. Mr. Cockerell reported that SSLGC operators are in the final stages
of performing annual filter regeneration. Manways are opened and filters recharged.
One well is out of service due to an issue with a motor. The motor has been pulled and
sent in to be refurbished.
The fifth order of business was Presentation of Treasurer's Report -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:
Ms. Caddell noted that the statements were compiled before the audit and do not include
depreciation or possible audit entries.
a. Financial Statements for the year ended September 30, 2009.
• Revenues, Expenses and Changes in Net Assets -Combined Statements
^ $698,397 (net income)
Revenues, Expenses and Changes in Net Assets -Operating Fund
^ $353,850 (net income)
The largest expenditure for this fund is water leases which is 38% of total
expenditures.
• Construction Fund Balance Sheet -Cash on Hand
^ $3,107,938
$2,300,000 remains in outstanding purchase orders.
• Revenues, Expenses and Changes in Net Assets -Interest & Sinking Fund
^ $814,366 (net income)
This statement only shows interest payments. The principal payments were taken out
of the Balance Sheet from the Revenue Bonds Payable account for each issue. Total
principal payments for the year were $805,000.
• Repair & Replacement Fund Balance Sheet -Cash Balance
^ $875,716
Bond covenants require the balance to be $500,000.
• Revenues, Expenses and Changes in Net Assets -Future Development Fund
^ $347,776 (net income)
During the fiscal year $105,518 was spent for water lease bonus payments and land
purchases.
• Revenues, Expenses and Changes in Net Assets -Impact Fund
^ $386,039 (net income)
$381,771 was received in impact fees.
• Revenues, Expenses and Changes in Net Assets -Operating Fund (comparative
statement)
^ $179,847 (net income)
• Working Capital Trend Chart
^ -$240,278 (decrease in working capital)
More bond proceeds were spent and the second bond payment for the
fiscal year was made.
President Bauer made a motion to approve SSLGC's financial statements for the quarter
ending September 30, 2009. Secretary Dwyer seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending September 30, 2009.
Ms. Caddell presented the Investment Report for July 1, 2009, through September 30, 2009.
Interest earnings for the quarter ending September 30, 2009, were $6,269. The average interest
rate for the quarter was .2627%.
Secretary Dwyer made a motion to approve SSLGC's investment report for the quarter
ending September 30, 2009. Treasurer Wolverton seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
c. Reimbursement to the City of Seguin in accordance with the Management Services
Agreement for the quarter ending September 30, 2009.
Ms. Caddell presented the expenditure information for the quarter July 1, 2009, through
September 30, 2009. The total amount of reimbursement from SSLGC requested by the City of
Seguin for the fourth quarter of 2009 is $878,410. Ms. Caddell added that SSLGC was under
budget for the fiscal year 2008-2009 by $340,143.
Secretary Dwyer made a motion to authorize SSLGC to reimburse the City of Seguin in the
amount of $878,410 for the quarter ending September 30, 2009, in accordance with the
Management Services Agreement. Treasurer Wolverton seconded the motion. Upon a
vote being called, the motion carried by unanimous decision.
The sixth order of business was Approval of SSLGC's Investment Policy, Resolution
SSLGC R09-07, in order to conform to the Public Funds Investment Act, Texas
Government Code, Chapter 2256 -Susan Caddell, Director of Finance and Alan Cockerell,
General Manager.
SSLGC's Investment Policy was included in the board agenda packets. The policy, along with
the Public Funds Investment Act, requires the policy to be reviewed and approved annually by
the Board of Directors. Ms. Caddell noted that staff did not recommend any modifications from
the previous year. She asked for board approval of the Investment Policy, Resolution SSLGC
R09-07.
Secretary Dwyer moved that the board of directors had resolved that the Investment Policy
had been reviewed and no modifications were recommended to the existing policy. He
made a motion to adopt SSLGC's Investment Policy in accordance with the Public Funds
Investment Act, Texas Government Code, Chapter 2256 (SSLGC R09-07). Treasurer
Wolverton seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The seventh order of business was Approval of SSLGC's Brokers/Dealers List, Resolution
SSLGC R09-08 -Susan Caddell, Director of Finance and Alan Cockerell, General
Manager.
SSLGC's Brokers/Dealers List was included in the board agenda packets. According to
SSLGC's Investment Policy the list is required to be reviewed and approved by the Board of
Directors annually. Ms. Caddell stated that she had added a couple of new brokers/dealers to the
list, but they would have to review and sign the Investment Policy before their offerings for
investment could be considered. She asked for board approval of the Brokers/Dealers List,
Resolution SSLGC R09-08.
Treasurer Wolverton made a motion to approve SSLGC's Brokers/Dealers list, Resolution
SSLGC R09-08. Secretary Dwyer seconded the motion. Upon a vote being called, the
motion carried by unanimous decision.
The eighth order of business was Restructure of Mitchell Biggs Note -Alan Cockerell,
General Manager and Susan Caddell, Director of Finance.
Mr. Cockerell reported that Mr. Biggs had requested a reduction in his monthly payment.
SSLGC's executive committee had reviewed the request and recommended a loan modification
agreement for six months beginning with the December 2009 payment. The payment would be
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reduced from $1,200 to $800 for the six month period as requested. A revised amortization
schedule was included in the board agenda packets. Mr. Cockerell asked for approval from the
board to ask General Counsel Patrick Lindner to prepare a modification agreement, effective
December 2009.
Secretary Dwyer made a motion to approve the modification of Mr. and Mrs. Mitchell
Biggs' note from $1,200 to $800 per month for six months. Treasurer Wolverton seconded
the motion. Upon a vote being called, the motion carried by unanimous decision.
The ninth order of business was Legislative Update -Jack Fickessen, Legislative
Consultant.
In Mr. Fickessen's absence Counsel Patrick Lindner reported that House and Senate Natural
Resources committees will be given assignments to look at specific issues (e.g., groundwater
legislation) in the next two to three weeks and Mr. Fickessen plans to monitor this process. Mr.
Cockerell added that Mr. Fickessen had attended a Gonzales County workshop on potential
changes to GCUWCD rules November 18th and had met with Mr. Cockerell, counsel and
consultants before the meeting in progress to prepare comments to the rule changes.
The tenth order of business was Guadalupe County Expansion Proiect -Alan Cockerell,
General Manager.
Mr. Cockerell reported that John Winkler with Walker Partners continues to work on design and
construction plans for the Guadalupe County project. He had met with SSLGC staff on
November 3, 2009, to review specific design and construction plans. Follow-up meetings will be
scheduled in the future.
The eleventh order of business was Well Mitigation -Alan Cockerell, General Manager.
At the request of Secretary Dwyer, President Bauer deferred agenda item eleven to Executive
Session.
The twelfth order of business was Settlement Agreement with WPA -Patrick Lindner,
General Counsel and Alan Cockerell, General Manager.
President Bauer deferred agenda item twelve to Executive Session.
The thirteenth order of business was Gonzales County Expansion Proiect -Alan Cockerell,
General Manager.
President Bauer deferred agenda item thirteen to Executive Session.
President Bauer closed General Session at 2:10 p. m.
The fourteenth 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 2:12 p. m.
Executive Session was held from 2:12 p. m. to 2: 46 p. m.
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The fifteenth order of business was to Consider and Take Action as a Result of Agenda
Item #14.
President Bauer opened General Session at 2: 46 p. m.
No action was taken as a result of Executive Session.
The sixteenth 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 seventeenth order of business was Adjournment.
President Bauer declared the meeting adjourned at 2:48 p.m.
The next regular meeting was scheduled December 17, 2009, in Seguin.
MINUTES APPROVED THIS
DAY OF y~ eC~~ '<~~009.
0 e vl/
R in Dwyer
Secretary