01-16-2014MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS g
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 16th day of January, 2014 the Schertz /Seguin Local Government Corporation (SSLGC)
convened at 1:30 PM in the City of Schertz Council Chambers located at 1400 Schertz Parkway,
Building #4, Schertz, Texas, The following directors being present and in attendance:
Ken Greenwald
Vacant
Larry Dublin
Derry Koehler
Robin Dwyer
Mayor Keil
President
Vice- President
Secretary
Treasurer
Assistant Secretary
Ex- Officio
David Scaghola Ex- Officio
and the following member(s) being absent:
Timothy "Jake" Jacobs 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:
Doug Faseler
John Bierschwale
Susan Caddell
Sam Willoughby
Emery Gallagher
Patrick Lindner
Steven Siebert
John Winkler
Billy Phenix
Crockett Camp
Larry Verner
Bill Klemt
Rhonda Jolly
Randy Wilburn
Bob Thaxton
Robert Brockman
Alan Cockerell
Shawn Shimek
Regina Franke
City Manager (City of Seguin)
Executive Director (City of Schertz)
Director of Finance (City of Seguin)
Public. Works Director (City of Schertz)
Water Utility Manager (City of Seguin)
General Counsel (Davidson, Troilo, steam & Garza)
San Antonio Water System (SAWS)
Consultant (Walker Partners)
Legislative Consultant
Consultant
City Engineer (City of Selma)
Consultant /Hydrologist
Attorney (Representing Wuest Farnily)
Engineer /Attorney (3009 Water Company)
Reporter (Seguin Gazette)
Citizen of Schertz
General Manager (SSLGC)
Water Superintendent (SSLGC)
Administrative Assistant (SSLGC)
The first order of business was to Call the Meeting _to Order.
President Ken Greenwald called the meeting to order at 1:30 PM
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President Greenwald advised that the most recent director appointed by the City of Schertz to the
SSLGC Board, Timothy "Jake" Jacobs, would not be in attendance due to family illness. He was
selected to replace Andrew Koenig, as his term expired December 31, 2013.
The second order of business was Public Comment.
There were no public comments.
The third order of business was Election of Officers.
President Greenwald advised that in Director Jacobs' absence he would recommend that officer
elections be postponed until the next board meeting. There were no objections.
The fourth order of business was Appr aval of the Minutes for the Board Meetin held on
December 19 2013.
Assistant Secretary Dwyer made a motion to approve the December 19, 2013 minutes as
read. Secretary Dublin seconded the motion. Upon a vote being called, the motion carried
by unanimous decision.
The fifth order of business was Presentation of the General Manager's Report --Alan
Cockerell General Manager.
Mr. Cockerell distributed a report by Susan Combs. He advised there was a link contained in the
report where a color version of the report could be obtained.
General Manager Cockerell's written report was included in the board agenda packets. He added
the following items to his written report:
9 Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of December was 79.3% of Gonzales County
Underground Water Conservation District's (GCUWCD) monthly allowable.
Mr. Cockerell noted that SAWS was the largest customer of December 2013 usage; they
received more water that either the City of Schertz or the City of Seguin.
GCUWCD
The Public Hearing was January 7, 2014; Mr. Cockerell attended. He noted that SSLGC had
submitted comments to address the proposed changes to the District's management plan, as
requested. Mr. Cockerell stated that the Board did adopt the revised management plan and
there should be a copy available soon to be circulated.
The meeting was January 14, 2014; Mr. Cockerell attended. A copy of the meeting agenda
was included in the board packet.
➢ GCGCD
There was no meeting in January 2014; the next meeting was scheduled for February 13,
2014.
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Mr. Cockerell advised that the Guadalupe County Judge, Larry Jones, has a monthly meeting
with the mayors of each city within Guadalupe County. Mr. Cockerell had been invited and
planned to attend.
Region L /GMA -13
GAIA -13r
The meeting was scheduled for January 30, 2014 in Pleasanton; Mr. Cockerell planned to
attend. He noted that the DFCs would be discussed and considered. Mr. Cockerell advised
he had received an email that the meeting had been rescheduled to March 2014.
Region L
The next meeting was scheduled for February 6, 2014. Mr. Cockerell advised that he
believed that the Region would finalize the list of water management strategies; Mr.
Cockerell had previously circulated a list to the Board. He noted that SSLGC has two
projects that would be evaluated through the process, the Guadalupe Project and a Brackish
Wilcox Project.
➢ CVLGC
The CVLGC meeting was held on December 10, 2013 in Converse. The meeting agenda
was included in the board packet. The next meeting was scheduled for January 23, 2014 in
Schertz.
Mr. Cockerell advised the Board that there had been three break -ins at the BPS; there would
be measures taken to increase the security at this location.
The sixth order of business was Wholesale Water Provider in Regional Plan for the Cities of
Bulverde Garden Ridge and Selma Alan Cockerell General Manager & Crockett Cam
Consultant.
Mr. Cockerell called attention to the insert included in the board packet, Comparison of Supply and
Demand Projections to Determine Needs which was taken from the 2011 South Central Texas Regional Water
Plan — Volume I — September 2010 by HDR. Mr. Cockerell introduced Mr. Tommy Koch.
Mr. Koch advised he represented the City of Bulverde for the purpose of the board meeting. He
described the area of Bulverde's Extra Territorial Jurisdiction (ETJ) and noted that area to stretch
from Kendall County to FM 3009 and ends up against the City of New Braunfels. Mr. Koch stated
with all the construction in the area, there was a need to regionalize their sewer system. He noted
that Bulverde was listed in the State Water Plan as a Water User Group (WUG). He advised that
they were currently listed as receiving their water from Guadalupe Blanco River Authority (GBRA)
and Texas Water Alliance (WA). Mr. Koch stated that Garden Ridge wanted water out of the
SSLGC system and he was, at this board meeting, to advise that Bulverde did as well. He noted that
currently in the State Water Plan, TWA was listed as a wholesale water supplier to Bulverde. He
stated that TWA preferred that water be delivered to the Schertz area then sent on to Bulverde; that
was already in the plan according to Mr. Koch. How that Carrizo pipeline would go, according to
Mr. Koch, was basically up FM 3009 through Garden Ridge, San Antonio, and Bulverde then make
its way to the Cibolo Watershed. He noted that the area from Selma, past Natural Bridge Caverns,
contained another water company, 3009 Water Company. Mr. Randy Wilburn would speak on their
behalf They have a CCN because SAWS could not provide that area with service, according to Mr.
Koch. He also stated that the all that land was owned by the Wuest family (the same ones that own
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the Natural Bridge Caverns) and Ms. Rhonda Jolly would speak on their behalf. Mr. Koch stated
that his simple request was that it be shown that SSLGC system was the way to move water across
Guadalupe County. More specifically, Mr. Koch advised, the request was that in the regional
planning process, which would last a year, SSLGC would be identified as the wholesale water
supplier for all of Comal County and Cibolo Watershed. He stated that there were no agreements
but that he would ask that a committee be established. The committee would help during the next
four Region L meetings to close the list of potential water management strategies. Mr. Koch noted
that in the TWA plan, the pipeline route which he described was already included. His concern was
that pipeline did not align with the SSLGC pipe system once it traveled south of Selma because
TWA was originally matching the SAWS plan.
Ms. Rhonda Jolly introduced herself as the attorney which represented the Wuest Family. She
advised that they had been receiving information and working to process it, as the information has
been in large volume and delivered quickly. Ms. Jolly stated that she was not authorized, at this
point, to say that they (bluest Family) were behind any project which was currently "on the table ".
She noted that the family does believe in regional water planning and recognized that water projects
could affect their property; they wanted to be team players but they were still in the understanding
and investigation mode. They were not against any information they had received thus far, but
needed more time to learn about the project. She believed that was why Mr. Koch wanted a
subcommittee established, to start making some of the evaluations.
Mr. Randy Wilburn introduced himself as an engineer and attorney. He stated that 3009 Water was
one of his clients. Mr. Wilburn stated that his client, 3009 Water, supported the project /would like
to participate and would like to see it move forward.
Mr. Koch summarized that they would like to show SSLGC as the wholesale water supplier when
HDR does the analysis for the State Water Plan. He would like to be able to write a letter to Region
L stating that they (this Comal group of cities) would like to list SSLGC as the wholesaler to move
the water through their county. Mr. Koch stated that TWA would say that they were in total
support that SSLGC would be the wheeling entity to move water from TWA to Selma.
Assistant Secretary Dwyer asked Mr. Koch if what they wanted was primarily for Region L to be
able to add an additional wholesale water supplier, other than TWA and GBRA, who was currently
supplying water to Bulverde and Boerne. Mr. Koch stated that other WUGs would list their
preferred. wholesale water suppliers; the people of Comal County and Cibolo Watershed would like
to name SSLGC as the wholesale water supplier. Assistant Secretary Dwyer asked if Mr. Koch
meant an additional one or the one. Mr. Koch advised the one. He also stated that SSLGC would
need to get water from somewhere and that would be from TWA. Ms. Jolly added that her clients
were not as solid in the statement of "only" wholesale water provider; they needed more time to
decide what, how much, or if they would participate.
Mr. Cockerell, to clarify, asked if the WUGs would be the ones that approached Region L with that
request; no formal action by the SSLGC Board was being requested. Mr. Koch advised that the
WUGs had initially intended to notify Region L that SSLGC would be the wholesale water provider
but they did not want to "blindside" SSLGC without first having discussed the matter with SSLGC.
The Board asked what action Mr. Koch was requesting. Mr. Koch advised that, prior to the May
2014 Region L meeting, he wanted a committee established that would help ensure that this strategy
would make it through the approval process.
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Assistant Secretary Dwyer advised he was not ready to recommend any action until the Board had a
chance to consult legal counsel in Executive Session.
Mr. Cockerell stated that there was already a committee which he and Mr. Camp are a part of, he
could update the Board as necessary.
The seventh order of business was The South Texas Eagle Ford Shale Play — Bill 1Klemt
Consultant /Hydrologist.
After a request was made by Secretary Dublin at the December 19, 2013 board meeting, Mr. Klemt
provided a summary of articles he'had read regarding the effects of fracking.
Secretary Dublin asked if there was enough separation, both physically and geologically, that there
were no threats to the aquifers. Mr. Klemt stated that, in his opinion, he believed that was primarily
true, but that there were always exceptions.
The eighth order of business was SAWS Expansion Project Update — John Winkler, Walker
Partners & Alan Cockerell General Manager.
Mr. Cockerell introduced Mr. Steven Seibert, SAWS.
Mt. Cockerell advised that included in the Board packet was a copy of the letter SAWS received
from TCEQ allowing for interim approval of the SAWS wells. He noted that next Tuesday, January
21, 2014, he would be meeting with SAWS about starting those wells. They will perform a 30 day
test, initially.
Mr. Cockerell stated that during SAWS's performance testing on the Schertz Pump Station, SAWS
reversed the flow of water back to Schertz to evaluate the emergency connection. Staff applied a
credit to SAWS's invoice for that return water.
Mr. Cockerell stated that Pepper- Lawson had made good progress, however they were still behind.
He and Mr. Winkler would be meeting with them on Tuesday, January 21, 2014.
Mr. Cockerell reminded the Board that they had approved the Well field Operations Agreement
with SAWS and a budget adjustment, at the December 19, 2013. He advised that council approval
would be requested by each, the City of Seguin and the City of Schertz.
The ninth order of business was SSLGC Construction Update/Seguin Connection —John
Winkler Walker Partners & Alan Cockerell.
Mr. Cockerell stated that he wanted to teaddress the Seguin Connection that was discussed at the
December 19, 2013 board meeting. During that meeting the Board had requested further research.
Mr. Cockerell stated that he and Mr. Winkler had discussed this with the appropriate staff from the
City of Seguin and they agreed with Mr. Winkler's design and recommendations. Mr. Cockerell
advised that Staff was not requesting any action at this time from the Board. He simply wanted to
inform the Board and if there were any objections, those could be addressed. Mr. Cockerell advised
Staff would move forward with advertising for bids.
Secretary Dublin asked about the connection which was attached to the Seguin River Bridge. Mr.
Cockerell stated that it would be evaluated as a separate project. Mr. Winkler noted that initially it
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was part of the project, but that it was anticipated there may be more intense discussions necessary
and did not want to delay progress of the connection.
The tenth order of business was —Approve to Award Contract — Renovation of the Old
Firehouse SSLGC New Administrative Office — Alan Cockerell General Mana er.
r Resolution # SSLGC R14 -01
Mr. Cockerell stated that one of the submitters (contractors) was not licensed to perform work in
the City of Seguin which was stated as a requirement in the Request for Proposals.
Assistant Secretary Dwyer made a motion to reject any bid that did not comply with the bid
specifications; specifically any contractors that did not have a license to perform work in the
City of Seguin. Secretary Dublin seconded the motion. Upon a vote being called, the
motion carried by unanimous decision.
Mr. Cockerell stated that there were three contractors which the Board would consider, The Koehler
Company, Sullivan Contracting and T & F Construction. Of those three, T & F Construction had
the highest rating based on the evaluation process/ criteria. The price was 40% of the rating criteria.
Assistant Secretary Dwyer asked if they were bound to use the subcontractors which they listed in
their submittal. Mr. Cockerell advised that as far as he understood that was correct.
Secretary Dublin made a motion to approve the Resolution # SSLGC R14 -01 to Award the
Contract for Renovations of the Old Firehouse /SSLGC New Administrative Office to T & F
Construction Company, Inc. in the amount of $199,900 and Authorize the General Manager
to sign said contract. Treasurer Koehler seconded the motion. Upon a vote being called,
the motion carried by unanimous decision.
The eleventh order of business was Legislative Update — Billy Phenix, Legislative
Consultant & Alan Cockerell Executive Director.
Counselor Lindner recommended Executive Session.
President Greenwald deferred item eleven to Executive Session.
The twelfth order of business was Status Update BPS Ground Storage Tank Preload
Patrick Lindner General Counsel & John Winkler Walker Partners & Alan Cockerell
General Manager.
Executive Session Recommended
President Greenwald deferred item twelve to Executive Session.
The thirteenth order of business was Wholesale Water Contract(s) -- Patrick Lindner,
General Counsel.
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session.
The fourteenth order of business was Gonzales Coun1y & Guadalu a Counn Carrizo and
Wilcox Water Leases — Alan Cockerell General Manager.
Executive Session Recommended
President Greenwald deferred item fourteen to Executive Session.
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The fifteenth order of business was Executive Session called under Chapter 551 Government
Code Section 551.071 to seek the advice of its attorne y on legal matters and Section
551.072 for deliberations regarding real estate.
President Greenwald closed General Session at 2:30 PM
Executive Session was held from 2:42 PM to 3:25 PM
The sixteenth order of business was to Consider and Take Action as Result of Agenda Item
Number fifteen.
President Greenwald reopened General Session at 3:26 PM
Agenda Item # 6:
Assistant Secretary Dwyer made a motion that SSLGC not be listed as the sole source
wholesale water provider for the Cities of Bulverde, Garden Ridge and Selma. Secretary
Dublin seconded the motion. Mr. Cockerell added for clarification, that SSLGC could be
listed as a wholesale water provider, but not as the sole source wholesale water provider to
each of the Cities of Bulverde, Garden Ridge and Selma. Upon a vote being called, the
motion carried by unanimous decision.
Agenda Item # 11:
No action requested /No action taken
Agenda Item # 12:
No action requested /No action taken
Agenda Item # 13:
No action requested /No action taken
Agenda Item # 14:
No action requested /No action taken
The seventeenth order of business was Consideration and/or Action on Questions and
Possible Items to be placed on the Next Agenda.
❖ The next board meeting was scheduled for February 20, 2014 in the City of Seguin at 1:30
PM
The sixteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:26 PAI
MINUTES APPROVED THIS 20TH DAY OF FEBRUARY 2014.
OR
Secretary, Board of Directors
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Assistant Secretary, Board of Directors