Loading...
12-15-2011MINUTES OF THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS ~ COUNTY OF GUADALUPE ~ SCHERTZ/5EGUIN LOCAL ~ GOVERNMENT CORPORATION ~ On this the 15th day of December, 2011, tlxc Schertz/Segtun Local Govcrzunent Corporation (SSI.,GC) convened at 1:32 p.zn, in the City of Seguin Council Chatz~bers located at 210 l_?. Gonzales, Seguin, Texas. The following meznbcrs being present and in attendance: Ken Greenwald President Robin Dwyer Vice-President 'Iiznothy "jakc" Jacobs 5ecretaz~r Andrew l~oeziig Treasurer The following director arrived (1:35 p.m.) after meeting was called to order and the vote regarding minutes was called (1:33 p.m.): Robin Dwyer Vice-President and the following director/ex-officio being absent: Kerry I~oehler Director Hal Baldwin Ex-Officio Betty Ann Matthies Ex-Officio constituting a majority of the persons appoizxted to the Board and a quorum for the transaction of business, and zaoticc of such meeting having been dul}r graven in accordance witlx the provisions of 'Texas law. Also i~~ attendance were: Susan Caddell Sam Willoughby Larr-1T Busch, ,jz:. Patrick Lindner John Winkler Ca:ockett Camp Bill Kleznt jack Fickessen Alan Cockerell Shawn Slximek Regina l~ranke 1sznery Gallagher r'inance Director Seguin Public Works Directox Schertz City of Schertz Counsel (Davidson & Troilo) Consultant (Walker Partners) Consultant/Project Manager Consultant/I iydrologist I.,egislative Consultant General Manager SSLGC Water System Superintendent SSLGC ~ldzninistrative Assistazat SSLGC Water Utility Manager Seguin The first order of business was to Call the Meeting to Order. President lien Greenwald called the meeting to order at 1:32 p.m. The second order of business was Public Comment. No public cozntnent The third order of business was A roval of the Minutes far the Board Meetin held on November 17 2011. Treasurer Koenig made a motion to approve the November 1'7, 2011 minutes as read. Secretary ,~acobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fourth order of business was Presentation of the General Mana er's Re ort -Alan Cockerell, General Manager. General Manager Aian Cockerell's written report was included iEi the board agenda packets. He added the following items to his written report: - Water Production Seasonal pumping and zxzontl~ly water sales charts were included in the board agenda packets. Water production for the month of November 2011 was at 56.9% of Gonzales County Underground Water Conservation District's (GCUWCI:a) monthly allowable. - GCUWCD CGUWCD Monthly Meeting was held on December 13, 2011; Mr. Cockerell attended. A cagy of the agenda was included in the board pacl~et. He stated there was discussion by dze District regarding use of groundwater for fracturing for the oil and gas industi-~=. Mt. Cockerell stated that District was considering the required registering of wells far fracturing and conversion of some existing domestic/livestock wells for the wine use. He advised that there was no action taken regarding the agenda item which would allow modifzcatioza of permits for entities such as SSLGC to sell rx~ater for use in the fracturing process. 1Vlr. Cockerell advised there were pendizag applications to install disposal wells in Gonzales. 'T'hese wells would be within the Lower Wilcox. Both the Cit}r of Gonzales and GCUWCD plan to oppose the applications due to concerns regarding fresh tivater quality issues. Per a request from the November 17, 2011 SSLGC l3oaxd meeting a discussion regarding the Western. Mitigation l~ua~d was offered. Mr. CocliereIl stated that. a handout was provided at the board meeting. Mr. Greenwald stated that his primary concern was the xcplczaislzzxzent necessity. Mr. Cocltercil advised that there is a replenishix~ezat clause iii our agi:eeinent. He noted that SSLGC still has one payment due C~ctaber 2012 and SAWS also has a financial obligation which has zaat been. paid to date due to pending litigation. Mr. Cockerell advised that at this point the District does not anticipate a need for replenishn~.ent. He leas spoken to both the Mitigation Manager and the District Mataagcx to advise the importance of 2 following the mitigation criteria; he will continue to znoititar the way funds are distributed. Mr. Cockerell stated that a portion a£ the Western Mitigation T'und is spent to plug old wells on the Carrizo and replacing them with new dulled wells to pump from the Queen City Aquifer. This helps alleviate any future issues with tlac Carriza Aquifer. Mr. Grcen~vald reiterated his concern regarding the decisions to repair/mitigate wells which appear to be dilapidated. Mr. Cockerell advised that the District is aware of this concern. SSLGC will continue to monitor the mitigation program. Mr. Cockerell advised the Board that there was a leak in the pipeline. This was due ii part to damage to a brass nipple and plug during the e~:cavation/installation of the cathodic testing stations. The pipeline was shut down/drained and rcpau-ed. By 4:00 a.in. t13e system was back oialinc. There did not appear to be any noticeable issue to customers. The contractors were instrumental iii timely repair as well as Mr. Shiinelc and his operators. Secretary Jacobs offered kudos to the team for their work and commuiucatioia. Mr. Greenwald advised Mr. Cockerell to continue to email him specifically, in situations as this, and he twill be responsible for distribution of necessary notification. Mr. Greenwald stated that this is an cxainple of the necessity £or a parallel laic. - GCGCD The regular meeting was held Novcinber l0, 2011 and Mr. Cockerell attended. .A copy of the meeting agenda was included in the board packet. Newly elected dv:ectors were installed by Guadalupe Couzlty Judge Mire Wiggins. A verbal update on CVLGC and SSLGC was given at the meeting. - Region L/GMA-13 Mr. Cockerell attended the hearing in Pleasanton for DFC petitions filed by HCPUA and CRWA. Both petitioners and GMA represeiatatives made presentations. Written evidence may be subnutted within ten business days after the hearing. A time schedule for consideration of these petitions is included in the TWDl3 memo included in your packet. The fifth order of business was Oil & Gas Leasing Program/Water Contracts Bill. Knobles, SUecial Counsel & Crockett Camp, Proiect Manager./Cons~rltant, Iiacluded in the board pacl~ct was an eix~ail from Mr. I~lobles ~:egarding tl~e latest activity. Mr. Cockerell stated that there has been discussion with Mr. Ramirez {previously Rambar); at this point there is nothing to present to the Board for approval. Mr. Cockerell will continue to keep the Board apprised of any developments. The sixth order of business was SSLGC Construction Update -- Tohn Winkler, Walker Partners & Alan Cockerell, General Manager. Mr. Cockerell stated that Harris Road Construction has coinplctcd its construction contract. Change order # 3 is included in the hoard pacl~et in the amount. of $16.38.25 for Board aplroval resulting in a total contract price of X4,492,380.03. 3 Vice-President Dwyer made a motion to approve Change Order # 3 for Harris Road Company with the net increase of $1638.25. Secretary Jacobs seconded the motion. Upon a vn#e being called, the motion carried by unanimous decision. Mr. CockereIl advised that all four new wells are completed and the roofs have been pouted on the tanks at the Ni~:on Plant and the BPS. Rockin' Q Construction and Llk Engineering are progressing with installation of cathodic test stations along the pipeline. Alsay is now in the process of installing the stainless steel pumps and well heads in the original wells. Well # 2 will be pulled and a new slab wi]1 be poured. The seventh order of business was Re air of HSP # 2 at the Booster Pum Station and Re- alignment of HSP # 3 - A~uroval of Einer~encv Repair/Replacement Funds up to $38,000 - Sinith Puma Company, Inc. -Alan Cockerell, General Manager. - Resolution # SSLGC R11-23 Mr. Cockerell stated that Szrzith Pump has repaired HSP # 3. During installation of HSP # 3 Smith Pump determined realignment was necessary. HSP # 2 has been pulled to be repaired/replaced; realigmzent cost. was included in the quote for II.SP # 2. These were repairs/replacements ~vliicl~ were not included in tl~c Czperations Budget. Mr, Cockerell requests that the Board approve use of Emergency Repair/Replacement h'unds up to X38,000 for said repairs. Vice-President Dwyer made a motion to approve use of monies by 55LGC in the Emergency Repair/Replacement Fund for the purpose of restoration of BPS HSP # 2 and re-alignment of HSP # 3 in the amount up to $38,000. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The ei hth order of business was SAWS Ex ansion Prn'ect - oho Winkler Walker Partners. Mr. Winkler advised he inet with the operators December 6, 2011. to discuss drarxrizags. He anticipates a late I•;ebruazy 2012 or early March 2012 bid date. Mr. Cockerell advised that Mr. Guar fnentioned that S11WS may have aza interest in contracting with SSI.GC to operate the well field on a daily basis. There have not been any specifics discussed; this is a preliminary consideration. Mr. Wielder advised that such a responsibility will require a 24-hour operation and more operators will be necessary. The ninth order of business was Schertz- Se uin Local Government Co oration Investment Palic -Public Funds Investment Act Texas Gnvernnnerat Code Cha ter 225G - Susan Caddell; Finance Director and Alan Cockerell, General Manager. - Resolution # SSLGC R11-20 Included in the board packet was a copy of SSLGC's Investment Policy. Mrs. Caddell advised that this policy, alozag with tl~c Public Funds Investment 11ct, requires the investment policy to be reviewed and approved annually by the SSLGC Board of Directors. During the past legislative session, HB 2226 brought about same changes to Governmczat Code, Secktan 2256, which is the section that is related to authorized investments for governtx~ental entities. Modifications to the investment policy are recoznznendcd as follows: • I'agc 3- The weighted average mahzrity has been chazaged to be consistent with other areas of the investment policy. The term for atwo-year period has been clarified. 4 • Pages 5 and 6 -The allowable investrnents related to certificates of deposits and investment pools has been clarified and expanded. • Page 10 -The inatuxity fox allowable collateral has been increased to 2 years to be less restrictive. • Page 11 and 12 - A procedure for monitoring the rating changes of investments has been established. • Page 16 and 17 -The certification page has been updated with a new certification page. The previous page has been used for several years and is outdated. The new page was taken fioin the Center fox Public Management wcbsite. They conduct Public Funds Invcstinent Act seminars throughout the state of Texas. Mrs. Caddell advised that SSLG Financial Advisor, Duane Westerman, has reviewed the Investment Policy and it does conform to the Public Funds lnvestinent .Act. Secretary Jacobs made a motion to approve the SSLGC Investment Policy in order to conform to Public Funds Investment Ac#, Texas Government Code Annotated, Chapter 2256. Treasurer Koenig seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The tenth order of business was Schertz-Se urn Local Government Cor oration's Broker Dealer list -Susan Caddell Finance Director and Alan Cockerell General Mana er. Y Resolution #SSLGC R11-21 Included iii the board pacl~et was a list of brokers/dealers the Corporation is authorized to engage in invcsttx~ent transactions. Mrs. Caddell advised that according to the Schertz-Seguiir Local Government Corporation's Investment Policy, this list is requv-ed to be reviewed and approved by the Board each year. Once the Board o£ Directors has reviewed and approved the investment policy, we will foitivard a copy of that policy to each of these brokers. 'They will have to complete a questionnaire to sign off on a certification page. Once tlxc questionnaire has been returned and certificatian page has been returned, their offerings will be considered far invest.~nent. Treasurer Koenig made a naation to adopt the list of Brokers/Dealers authorized to engage in Investment Transactions with SSLGC in order to conform to Public Funds Investment Act. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The eleventh order of business was Converse Re Tonal Water Su 1 contract -~ Amendment # 2, Alan Cockerell, General Manager. Mr. Cockerell stated that all involved parties requested that this be pulled fxatn the agenda. Thep required more titxre fox all test data to be evaluated; this will be on the January 19, 2012 agenda. The twelfth order of business was contract re ardin Bill Klemt -Alan Cockerell General Manager. Resolution #SSLGC R11-22 s Mr. Cockerell advised that there were only minor changes to included Cibalo Valley Local Government Corporation. His rate has did not change. Mr. Cockerell stated that there will be a reimbursezxaent resolution where CVLGC will reimburse SSLGC for appropriate expenditures including any work done by Mr. T~lcint for CVLGC. Vice-President Dwyer made a motion to approve the Consultant Agreement between Mr. William B, Klemt and SSLGC for the term of 24 months. Andrew Koenig seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The thirteenth order of business was Le islative Udate - ack Fickesson Le islative Consultant. Mr. Fickessen advised of the deadlines to file. 1-lc stated that there would be twenty-seven new house members and four new senate members. Mr. Fickessen advised that there would be some new rifle changes; as well as the process its which DFCs are determined. MAG will be redefined {managed will change to inadel). b1e stated there will be a new re-write regarding groundwater inanageinent plans. Mr. I~'ickesscn asked if the SSLGC Board would have an interest iii having someone to represent them as a stakeholder to assist in the zule making process. He advised this would be a great opportunity for SSLGC to have a voice in the process. At the Board's request Mr. Fickessen will proceed. The fourteenth order of business was CVLGC -Alan Cackeroll General Mana er. Mr. Cockerell stated tlxat the last meeting was December 8, 2011 and the next. meeting is scheduled for Januafy 21, 2012. Mr. Cockerell advised there was a workshop during the Dcceixiber CVLGC Board meeting. He informed the SSLGC Board that he would appreciate feedback on toning to schedule a joint meeting between SSLGC az~d CVLGC Boards to discuss the Guadalupe Project. The fiftoenth order of business was Discussion and action re ardin contract to su 1 water for drillin and roduction u uses and authorizin certain action relatin to rho contract - Crockett Cam Project Mana er Consultant & Patrick Lindner General Counsel. Mr. Cackerell stated that there have been no new developments and no actioia is requested. The sixteenth order of business was Gonzales Coun Water Leases -Crockett Cam Project Manager/Consultant. Mr. Cockerell stated that there have been no new dcvelopinents and no action is requested. The seventeenth order of business was Executive Session callod under Cha ter 551 Government Code Section 551.071 to seek the advice of its attorne on le al matters and Section 551..072 for deliberations re ardin real estate and Section 551.074 Deliberations reg_ardin~ a specific officer or employee. No items for Executive Session. The ei hteenth order of business was Consider and Take Action as Result of enda Item Number seventeen. No action necessar~r; no ]-?xecutivc Session. 6 he nineteenth order of business was Consideration and/ ' or Actiari, an , ~,luestions and Passible fteins to be placed an the Next Agenda. Mr. Greenwald recognized and thaiil~ed Vice-l'residezxt T]wSTcr for his service. No additional discussion was held. The next regular board meeting was scheduled for ranuar}r 19, 2012 at 1:30 p.rn. in Schertz, Texas. The twentieth order of business was Adjournment. President Green~~~al~ clecluyed the meeting r~djoi~~ned ~f~ 2:32/~.nl. MIN~JTES APPROVED THIS 19th DAY /~:f~; Timothy "Jalk Jacn Secretary, B~drd nf~' ectors