10-17-2013 MinutesMINUTES OF THE
SCHERTZ /SEQUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ/SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 17th day of October, 2013, the Schertz /Seguin Local Government Corporation
(SSLGC) convened at 1:30 p.m. in the City of Seguin Council Chambers located at 210 E. Gonzales,
Seguin Texas. The following directors being present and in attendance:
Ken Greenwald President
Andrew Koenig Vice - President
Larry Dublin
Secretary
Robin Dwyer
Assistant Secretary
Mayor Keil
Ex- Officio
and the following member being absent:
Kerry Koehler
Treasurer
George Antuna
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:
Doug Faseler
City Manager (City of Seguin)
John Bierschwale
Executive Director (City of Schertz)
Susan Caddell
Director of Finance (City of Seguin)
Sam Willoughby
Public Works Director (City of Schertz)
Emery Gallagher
Water Utility Manager (City of Seguin)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Steve Pena
General Counsel (Davidson, Troilo, Ream & Garza)
Rene Gonzales
San Antonio Water System (SAWS)
John Winkler
Consultant (Walker Partners)
Bill Klemt
Consultant/ Hydrologist
Mark MsLiney
Financial Advisor (Southwest Securities)
David Scagliola
Councilman (City of Schertz)
Alan Cockerell
General Manager (SSLGC)
Shawn Shimek
Water Superintendent (SSLGC)
Regina Franke
Administrative Assistant (SSLGC)
The first order of business was to Call the Meeting to Order.
President Ken Greenwald called the meeting to order at 1:32 PM.
The second order of business was Public Comment.
There were no public comments.
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The third order of business was Approval of the Minutes for the Board Meeting held on
September 19, 2013.
Vice - President Koenig called attention to Agenda Item # 8 in the minutes. The statement,
"President Greenwald deferred item five to Executive Session" should have read as item eight.
Secretary Dublin made a motion to approve the September 19, 2013 minutes, with above
noted correction. Assistant Secretary Dwyer seconded the motion. Upon a vote being
called, the motion carried by a vote of 3 Yay (K. Greenwald, L. Dublin & R. Dwyer) and 1
Abstain due to absence his from the September 19, 2013 meeting (A. Koenig).
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:
Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of September was 65.1% of Gonzales County
Underground Water Conservation District's (GCUWCD) monthly allowable.
GCUWCD
The meeting was October 8, 2013; Mr. Cockerell attended. A copy of the meeting agenda,
as well as, the investment report was included in the board packet. Mr. Cockerell also
advised that he enclosed a copy of the response to the District's letter regarding water
conservation efforts by SSLGC's customers.
➢ GCGCD
Mr. Cockerell attended the meeting October 10, 2013 in Seguin. A copy of the meeting
agenda was included in the board packet. The District also conducted a workshop on
District rules regarding the Wilcox Aquifer. They were considering modification of the
property requirements that require water leases within a certain distance from well sites.
Mr. Cockerell also advised that the District would be relocating their offices to the La Plaza
Building in Seguin, due to closure of the current location for mold issues in the building.
The next meeting was scheduled for November 4, 2013.
➢ Region L /GMA -13.
GMA -13:
A copy of the meeting agenda was included in the board packet. GMA -13 was in the
process of developing the five year update to the Desired Future Conditions (DFC). A draft
explanatory report was provided by the GMA -13 consultant. It was anticipated that a draft
of the DFC for GMA -13 would be adopted by the end of January 2014.
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➢ CVLGC
The CVLGC meeting was September 26, 2013 in Schertz. A copy of the agenda was
included in the board packet. Mr. Cockerell advised that the next board meeting was
scheduled for October 24, 2013 in Cibolo. He would continue to keep the Board updated
on CVLGC progress.
The fifth order of business was CONSIDERATION AND APPROVAL OF A
RESOLUTION BY THE BOARD OF DIRECTORS OF THE SCHERTZ/SEGUIN
LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF
"SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION CONTRACT
REVENUE REFUNDING BONDS, SERIES 2013 930; PROVIDING FOR THE PAYMENT
OF THE PRINCIPAL OF AND INTEREST ON THESE OBLIGATIONS AS PROVIDED
HEREIN, ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING
OBLIGATIONS; PROVIDING THE TERMS AND CONDITIONS OF SUCH BONDS
AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE
ISSUANCE, PAYMENT SECURITY, SALE, AND DELIVERY OF SUCH BONDS,
INCLUDING THE APPROVAL OF THE DISTRIBUTION OF AN OFFICIAL
STATEMENT RELATING THERETO; AUTHORIZING THE EXECUTION OF A
PAYING AGENT/REGISTRAR AGREEMENT, AN ESCROW DEPOSIT LETTER,
AND A BOND PURCHASE CONTRACT; DELEGATING THE AUTHORITY TO
CERTAIN MEMBERS OF THE BOARD OF DIRECTORS AND STAFF TO EXECUTE
CERTAIN DOCUMENTS RELATING TO THE SALE OF THE BONDS; COMPLYING
WITH THE REQUIREMENTS OF THE DEPOSITORY TRUST COMPANY'S LETTER
OF REPRESENTATIONS; AND PROVIDING AN EFFECTIVE DATE — Duane
Westerman, SAMCO & Mark MLiney Southwest Securities
A Resolution # SSLGC R13 -19
Mr. WLiney advised that if SSLGC opted to proceed with the bond refunding, it would not extend
past the original maturity date. Assistant Secretary Dwyer asked if the savings amounts were
inclusive of all the costs associated with the refunding process. Mr. M -Liney responded to the
affirmative. He noted that the resolution would give permission for the financial advisors and bond
counsel to proceed, if they found a buyer, and to also set a threshold minimum amount for savings
that the Board would require. Mr. NPLiney noted that once a buyer was found, both city councils
would be required to approve the sale before they could finalize the transaction.
Secretary Dublin made a motion to approve the Resolution # SSLGC R13 -19, with a target
net savings of $275,000. Vice - President Koenig seconded the motion. Upon a vote being
called, the motion carried by unanimous decision. (2:04 PDA)
The sixth order of business was Water Level Measurements — Bill Klemt, Geologist.
Mr. Klemt's report was included in the board packet. His summary was as follows:
Water levels changed very little in the minor aquifers. Within the immediate SSLGC Well-Field
Area, for the period Aug /Sept 2002 to September 2013, the average Carrizo Water -level decline is
on the order of 4.03 feet /year. In the general area of western Gonzales County, water levels are
declining at an average rate of about 2.34 feet /year. Water levels continue to decline modestly in the
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Carrizo outcrop areas of Guadalupe and Gonzales Counties. In the future, it is expected that
SSLGC, SAWS and CRWA will increase pumpage above the present day level. When this happens,
average water -level declines per year will increase and then gradually decrease over time.
The seventh order of business was SAWS Expansion Project Update —John Winkler, Walker
Partners & Alan Cockerell, General. Manager
➢ Resolution # SSLGC R13 -20
Mr. Cockerell advised that, in the initial construction of the pipeline, the plans were changed that
called for an upgrade in the size of the pipe from a 30 inch to 36 inch. That modification was never
made. Mr. Cockerell stated that the change was required to handle the volume of water that would
need to pass through the pipeline at that point. He noted that currently, SAWS had the Change
Order # 1 for review. Mr. Winkler added that this was a change that SAWS was funding as part of
the contract terms.
Assistant Secretary Dwyer made a motion to approve Resolution # SSLGC R13 -20.
Secretary Dublin seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
Mr. Cockerell advised that Mr. Winker had sent Pepper- Lawson a letter addressing issues, including
the concrete pours. Mr. Winkler and Mr. Cockerell had met the previous week with Pepper -
Lawson. They offered their assurance to Mr. Winkler and Mr. Cockerell that all issues would be
corrected.
Counselor Lindner requested that this item be deferred to Executive Session.
President Greenwald deferred item seven to Executive Session.
The eighth order of business Old Fire House in downtown Seguin for administrative offices
- Alan Cockerell, General Manager
Mr. Cockerell advised that the roof replacement was complete. Parsons was scheduled to repair the
flashing on the cornice before by Friday, October 18, 2013. Mr. Cockerell also stated that the
HVAC replacement /repair was nearing completion, and the RFPs for the remaining renovations
were due October 24, 2013 by 2:00 PM. Mr. Cockerell advised that he hoped to be in the building
by January 2014, but he would have a better estimation once the RFPs were received.
The ninth order of business was Authorize SSLGC Executive Committee to select and
=rove the contractor and authorize General Manger to sign the contract for The Old Fire
House —SSLGC New Administration Building.
➢ Resolution # SSLGC R13 -21
Mr. Cockerell stated that he hoped to move forward as soon as possible with the remaining
renovations. As the due date for the proposals would fall in- between board meeting dates, to save
time, Mr. Cockerell recommended that the Board consider allowing the Executive Committee to
review and award the contract, as well as, grant permission for the General Manager to sign the
contract.
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Secretary Dublin made a motion to approve Resolution # SSLGC R13 -21. Assistant
Secretary Dwyer seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The tenth order of business was Legislative Update — Billy Phenix, Legislative Consultant &
Alan Cockerell, General Manager
Mr. Cockerell advised that Mr. Phenix had provided a draft of a plan to work on during the interim
with Mr. Camp, Mr. Cockerell, Counselor Lindner and himself. Updates would be provided as
applicable.
The eleventh order of business was Status Update BPS Ground Storage Tank - Preload
Representative & Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item eleven to Executive Session.
The twelfth order of business was Wholesale Water Contract(s)— Patrick Lindner, General
Counsel & Alan Cockerell General Manage
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session.
The thirteenth order of business was Gonzales County & Guadalupe County Carrzo and
Wilcox Water Leases — Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session.
The fourteenth order of business was Executive Session called under Chapter 551
Government Code, Section. 551.071, to seek the advice of its attorney on legal matters, and
Section 551.072, for deliberations regarding real estate.
President Greenwald closed General Session at 2:30 PM
Secretary Dublin l ft the meeting 2:30 PM
Executive Session was held from 2:45 PM to 3,35 PM
The fifteenth order of business was Consider and Take Action as Result of Agenda Item
Number fifteen.
President Greenwald reopened General Session at 3:36 PM
Agenda Item # 7
Assistant Secretary Dwyer made a motion to authorize Counselor Lindner to notify Surety
Company regarding the lack of supervision and defective work by Pepper- Lawson. Vice -
President Koenig seconded the motion. Upon a vote being called, the motion carried by
unanimous decision
Agenda Item # 11
No actions requested /No action taken
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Agenda Item # 12
No actions requested /No action taken
Agenda Item # 13
Assistant Secretary Dwyer made a motion to authorize Mr. Walter Tacquard, III and the
General Manager to use the Guadalupe Water Lease template drafted by Counselor Linder.
Vice- President Koenig seconded the motion. Upon a vote being called, the motion carried
by unanimous decision
The sixteenth order of business was Consideration and /or Action on Questions and
_Possible Items to be placed on the Next Agenda.
➢ The next scheduled board meeting was Thursday, November 21, 2013 at 1:30 PM in Schertz.
➢ Financial Reports Q4- FYE2013
The seventeenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:40 p.m.
MINUTES APPROVED THIS 213` DAY OF NOVEMBER, 2013.
Larry Dublin, Secretary
Or
Robin Dwyer, Assistant Secretary
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