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SSLGC 12-17-2009MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS § COUNTY OF GUADALUPE § SCHERTZ-SEGUIN LOCAL § GOVERNMENT CORPORATION § On this the 17th day of December, 2009, the Schertz-Seguin Local Government Corporation (SSLGC) convened at 1:32 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 Andrew Koenig Betty Ann Matthies and the following director being absent: President Vice-President Secretary Treasurer Director Ex-Officio Hal Baldwin 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 Johnny Bierschwale Susan Caddell Emery Gallagher Larry Dublin Georgia Hanks Shawn Shimek Patrick Lindner Bill Klemt John Winkler Crockett Camp Jack Fickessen General Manager City Manager of Schertz City Manager of Seguin Assistant City Manager of Schertz Finance Director of Seguin Seguin Water Utility Manager City Engineer of Schertz Administrative Assistant Water System Superintendent Legal COU11se1 (Davidson & Troilo) Hydrologist Consultant COriSUltant (walker Partners) Consultant/Proj ect Manager Legislative Consultant The first order of business was the Calling of the Meeting to Order. President Sydney Bauer called the meeting to order at 1:32 p.m. The second order of business was Public Comment. General Manager Alan Cockerell introduced SSLGC's two newest employees, Gabriel Vega and Lucas Knight. Mr. Cockerell commented that with the addition of the two operators, SSLGC is now fully staffed. The third order of business was Approval of the Minutes for the Board Meeting held on November 19, 2009. Treasurer Jim Wolverton made a motion to approve the November 19, 2009 minutes as written. Director Andrew Koenig 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 Alan Cockerell's written report was included in the board agenda packets. He highlighted the following items in his report: • Water Production Water production for the month of November was 73% of SSLGC's monthly allowable as mandated by the Gonzales County Underground Water Conservation District (GCUWCD). • GCUWCD Mr. Cockerell attended a Rules Workshop on November 18, 2009. SSLGC representatives submitted comments to GCUWCD on the potential rule changes. Within the next few weeks the District plans to send out a public notice for a hearing to approve the rule changes. A 20 day notice period is required by Chapter 36 of the Texas Water Code. The District may not get the rule changes approved by its January 2010 meeting and a Special Called meeting may be necessary. Mr. Cockerell noted that an article was written to the editor of the Gonzales InquireN stating the belief that groundwater availability modeling is predictive and not based on real science because not enough testing which would validate the modeling has been conducted. The author of the article suggested that GCUWCD grant permits based on groundwater modeling cautiously and conservatively. SSLGC is fortunate to have been in production a number of years and has real data to support its position that SSLGC's water production has had little effect on the aquifer. This data is similar to the information the groundwater models provide. • Region L Region L had a special meeting on December 3, 2009. Mr. Cockerell was unable to attend the meeting due to the SAWS contested case hearing he attended in Gonzales. At the meeting, Region L representatives approved to move forward with the initial prepared plan and intend to have it approved at the February 2010 meeting. Mr. Cockerell is working with HDR and Consultant John Winkler to define an alternate plan for an SSLGC well field in Wilson County. The fifth order of business was Contract between SSLGC and Bill HIemt, Hydrologist Consultant -Alan Cockerell, General Manager. Mr. Cockerell requested approval of a two-year contract with Mr. Bill Klemt for hydrologist consulting services. He noted that the only change from the previous contract was an increase in rate from $65.00/hr to $70.00/hr. Treasurer Wolverton made a motion for SSLGC to enter into atwo-year contract with Bill HIemt. Secretary Robin Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The sixth order of business was Legislative Update -Jack Fickessen, Consultant. Mr. Fickessen discussed interim committee charges which have been issued to the Senate and House Committees on Natural Resources. Both the, Senate and House committees will work on basically the same issues which are identical to the issues the Corporation has had regarding groundwater regulations and permitting processes. A summary of interim committee charges for the Texas House of Representatives 81St Legislature was included in the board agenda packets. The seventh 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 expansion project. Completion of final designs has been delayed a couple of months due to Mr. Winkler's involvement in depositions and contested case hearings in Gonzales County. Additional meetings will be held in order for SSLGC operators to participate in design issues pertaining to specific operations of the Guadalupe facility. Mr. Cockerell called attention to a schedule of SSLGC's water lease payments for Guadalupe and Gonzales counties which was included in the agenda packets. Also included in his report is the following information: ~:• Old Gonzales leases are for SSLGC's existing eight wells under the old rules of two ac- ft/acre permitted at 12,901 ac-ft/yr. The total amount in this category will decrease by half after the conversion that takes place in 2014 3 • New Gonzales leases are for the four new wells at one ac-ft/acre to be permitted at 6,452 ac-ft/yr along with additional property to be obtained for conversion to one ac-ft/acre in 2014 (additional acres will need to be leased before 2014) •3 Guadalupe leases are for 3,757 ac-ft/yr The eighth order of business was Gonzales County Expansion Proiect -Alan Cockerell, General Manager. President Bauer deferred agenda item eight to Executive Session. Before going into Executive Session, Mr. Cockerell announced that the City of Schertz had appointed Mr. Ken Greenwald to serve on SSLGC's board of directors due to the expiration of President Bauer's term. Officers will be elected at the January 21, 2010 board meeting in Schertz. Board members and staff thanked President Bauer for his leadership and invited him to attend the February 201 D board meeting in Seguin. President Bauer closed General Session at 1:52 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 1: SS p. m. Executive Session was held from 1: SS p. m. to 2:51 p. m. The tenth order of business was to Consider and Take Action as a result of Agenda Item Nine. President Bauer reopened General Session at 2: SI 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 next regular board meeting was scheduled January 21, 2010, at 1:30 p.m. in Schertz, Texas. The twelfth order of business was Adjournment. President Bauer declared the meeting adjourned at 2:52 p.m. MINUTES APPROVED THIS ~ ~ DAY OF V G~~~~ , 2010. Secretary