05-15-2014MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE'STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 15th day of May, 2011 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
President
Robin Dwyer
Vice - President
Larry Dublin
Secretary
Kerry Koehler
Treasurer
T. "Jake" Jacobs
Assistant Secretary
Mayor Keil
Ex- Officio
David Scagliola
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:
John Bierschwale
Executive Director (City of Schertz)
Susan Caddell
Director of Finance (City of Seguin)
Emery Gallagher
Water Utility Manager (city of Seguin)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Steven Siebert
San Antonio Water System (SAWS)
John Winkler
Consultant (Walker Partners)
Billy Phenix
Legislative Consultant
Bill Klemt
Consultant /Hydrologist
Crockett Camp
Consultant
Robert Brockman
Citizen 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.
Ex- officio Mayor Keil advised that he would be attending professional development training for the
next 3 months, which were scheduled the same day as the SSLGC Board Meetings; he would not be
present for those board meetings.
Mr. Robert Brockman asked why Schertz blended the SSLGC Carrizo water with the Edwards
Aquifer water. Mr. Cockerell advised that the wells need to be utilized occasionally to keep them in
good functioning order. The notation in Mr. Cockerell's report is reflective of record keeping.
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The third order of business was Amroval of the Minutes for the Board Meeting held on
April 17, 2014.
Assistant Secretary Jacobs made a motion to approve the April 17, 2014 minutes as read.
Treasurer Koehler 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:
➢ Water Production
Seasonal pumping and monthly water sales charts were included in the board agenda
packets. Water production for the month of April was 65.2% of Gonzales County
Underground Water Conservation District's (GCUWCD) monthly allowable.
➢ GCUWCD
Monthl y Meeting
The monthly meeting was held May 13, 2014. Mr. Cockerell attended. A copy of the
meeting agenda was included in the board packet.
SSLGC Staff and Consultants had begun to compile comments for changes to the District's
rules. The District would receive comments on the requested changes to the existing rules
until May 30, 2014. The District's legal counsel and manager would then draft proposed
rules for the District Board to consider. After the Board approved the proposed rules, a
public comment hearing would be held and the Board would then act on adoption the
updated rules.
➢ GCGCD
Monthly Meeting
The monthly meeting was held May 8, 2014. Mr. Cockerell attended. A copy of the meeting
agenda was included in the board packet. Mr. Cockerell advised that normal business was
conducted.
➢ Region L /GMA -13
Region L Quarterly Meeting — May 1, 2014:
R e oind WlateY- Ilia rice.Quarterly Meet trg — May 8, 2014;
Mr. Cockerell attended both of the meetings. He noted that draft DFC's are being
developed to be presented to each groundwater district.
The next GMA -13 meeting was rescheduled for June 19, 2014.
➢ CVLGC
The CVLGC Board meeting was held on April 24, 2014 in Cibolo. The meeting agenda was
included in the board packet. The next meeting, which will be a combined workshop, was
scheduled for May 22, 2014 in Cibolo at 6:30 PM.
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The fifth order of business was Presentation of Treasurer's Report — Susan Caddell, Finance
Director & Alan Cockerell, General Manager.
a. Financial Statements for the quarter ending March 31, 2014.
Included in the board packet were the financial reports for the six months ended March 31, 2014.
The first two pages were combined statements for all the SSLGC funds, but did not include the
SAWS project funds. They included the Balance Sheet and the Statement of Revenues, Expenses
and Changes in Net Assets. Page 2 indicated net income of $2,842,844.35. Beginning with page 3,
provided were statements for each fund which provided further detail. On page 4, were the
Statement of Revenues, Expenses and Changes in Net Assets for the Operating Fund. The water
sales revenue from SAWS was in the amount of $1,395,853.01. This year, the budget included
transfers to the Repair /Replacement Fund of $800,000 and to the Future Development Fund of
$500,000. Those transfers were divided into monthly transfers. The bottom of the page indicated
net income of $745,853.01.
On page 5 and 6, were the Balance Sheet and Statement of Revenues, Expenses and Changes in Net
Assets for the Interest and Sinking Fund. This included the I &S rates paid by participating entities.
The first bond payment was made on February 1 in the amount of $3,117,180.63.
On page 7, was the Balance Sheet for the Repair and Replacement Fund. The cash balance was
$1,916,976.74. On page 8, was the transfer from the Operating Fund, as mentioned earlier. The
expenditures listed were those for the repairs to pumps # 1 and # 4.
On page 9 and 10, was the Balance Sheet and Statement of Revenues, Expenses and Changes in Net
Assets for the Future Development Fund. The cash balance in this account was $1,328,487.57. On
page 10, was the transfer from the Operating Fund, as mentioned earlier. There had been no
expenses charged to that fund for the first six months of the fiscal year.
Pages 11 and 12 were the statements for the Impact Fund. The cash balance in that account, as of
March 31, was $2,553,893.65. The Statement of Revenues, Expenses and Changes in Net Assets for
that fund indicated $179,028.04 of water impact revenue. On the Balance Sheet for that fund was
$21,756.54 in a deferred revenue account. According to the accrual accounting policies followed by
SSLGC, revenue was not recognized until the work had been completed. Payment was required
from customers before the water connection was made. This amount had been paid for a
connection, but the work was not completed as of March 31. Those were payments made by the
City of Seguin. When the City of Schertz submits payment to that fund, their work was already
completed.
Pages 13 and 14 were statements for the Reserve Fund. The required amount to maintain in the
Reserve Fund, according to bond covenants, was $1,275,621.10. The cash balance was
$1,281,956.55. On Page 14, were the interest earnings for those six months.
Pages 15 and 16 were statements for the 2010 Construction Fund. The cash balance in that fund, as
of March 31, 2014, was $2,571,118.83. The Statement of Revenues, Expenses and Changes in Net
Assets showed the interest earning and the expenditures for the administration building, filter
expansion, and Seguin crossing.
Beginning on page 17, were the statements for the SAWS project. Pages 17 and 18 were the
statements for the Construction Fund for the SAWS project, while pages 19 and 20 were the
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statements for the I & S Fund. These statements were not included in the combined statements on
pages 1 and 2.
On page 21, were the Comparative Statement of Revenues, Expenses and Changes in Net Assets for
the Operating Fund. Revenue had increased by $1,095,071.63. That was due to SAWS purchase
SSLGC excess water. Not including SAWS and Springs Hill usage, consumption had decreased by
132,661,500 gallons. Expenditures had increased by $483,179.21, with the largest being in utilities
services of $273,893. Net income before transfers increased from last year by $611,892.42, while net
income after transfers also increased by $86,892.42. That was largely due to the purchases of was by
SAWS.
Finally, page 22 was the working capital trend chart. Working capital had decreased since December
31, 2013, by $1,078,485. That was largely due to the first bond payment on February 1.
Secretary Dublin made a motion to approve SSLGC's financial statements for the quarter
ended March 31, 2014. Assistant Secretary Jacobs seconded the motion. Upon a vote being
called, the motion carried by unanimous decision.
b. Investment Report for the quarter ending March 31, 2014.
Mrs. Caddell presented the Investment Report for January 1, 2014 through March 31, 2014. Interest
earnings for the quarter ended March 31, 2014 were $ 3,610.
Secretary Dublin made a motion to accept SSLGC's Investment Report for quarter ended
March 31, 2014. Vice - President Dwyer 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 December 31, 2013.
Included in the board packet was a list of expenditures from the Operations and Maintenance
budget which was paid by the City of Seguin. The expenditures for January 1, 2014 through March
31, 2014, as indicated in the first column on the report, were $1,706,322. The second column was
the expenditures through the first six months. Mrs. Caddell advised that one item was over budget.
Office Space Rental was not in the original FY2013 -14 O & M Budget, as Staff thought they would
be in the new office building by October 1, 2013. Once SSLGC has moved out of the current
rented office, Staff will work with Mrs. Caddell to make an internal budget adjustment to balance
that item.
Assistant Secretary Jacobs made a motion to approve the reimbursement to the City of
Seguin in accordance with the Management Services Agreement of $1,706,322. Secretary
Dublin seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
The sixth order of business was Water Rates /Budget /Reserve Fund — Alan Cockerell,
General Manger.
Mr. Cockerell advised that there had been discussions about initiating a Reserve Fund. Mrs. Caddell
advised that the City of Seguin had a policy and that SSLGC could mirror that same policy. She
stated that the Board would need to decide what amount they wanted to designate for that fund.
Vice - President Dwyer asked what the standard amount was to maintain stability for the
Corporation. Mrs. Caddell advised that it should be at least an amount that would sustain SSLGC
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for 90 days, but it could be 6 month, 12 months etc. Mrs. Caddell stated that she and Mr. Cockerell
could discuss this with Mr. Dan Jackson and get his recommendation. Mr. Cockerell noted that
Staff would prepare a resolution to present to the Board at the June 2014 meeting for approval.
Mr. Cockerell advised that Mr. Dan Jackson was working to update his model and planned to attend
the June executive committee meeting and board meeting. Mr. Cockerell showed a brief
presentation which Mr. Jackson has supplied. There were options, which Mr. Jackson's presentation
Offered; he would elaborate on these options at the June board meeting. Mr. Cockerell advised that
he anticipated a proposed draft of the O & M Budget and Water Rates would be presented at the
June board meeting.
The seventh order of business was Riverbank Pipeline Repair — Alan Cockerell, General
Manager & John Winkler, Walker Partners.
➢ Resolution # SSLGC R14 -05 (no resolution)
Mr. Cockerell advised that years of wear, as well as the various floods, had caused erosion to the area
around the pipeline. The initial plan was to stabilize the pipeline and potentially plant some
vegetation to help provide a more aesthetically pleasing area around the concrete /pipeline. Mr.
Faseler advised that he would not be concerned with the vegetation at this point.
Mr. Cockerell advised that there had only been one bid so Staff did not prepare a resolution for the
May board meeting. He noted that he anticipated another quote, but if it was in the range of the
amount of the J.S. Haren quote, he would proceed with J.S. Haren. Mr. Cockerell stated that they
are currently working on the Seguin Connection /Terminus # 3 and there was contingency money in
that contract; he and Mr. Winkler were hoping the cost for the Riverbank Repair could be funded
within that contingency amount. The Board did not object to this plan of action.
The eighth order of business was SSLGC Capital Projects Alan Cockerell, General
Manager & John Winkler, Walker Partners.
Mr. Cockerell called attention to the CIP Improvements (Updated 17 April 2014). He stated that he
was working with Dan Jackson to incorporate the Cathodic Protection in the FY2014 -2015 O & M
Budget. Mr. Cockerell stated that there was adequate money in the Impact Fees fund to pay for the
SE Schertz Quadrant Improvements. He also noted that the Rehabilitation of the Existing Ground
Steel Storage Tanks could possibly be funded by the remaining 2010 Bond Fund.
President Greenwald asked about the WTP Offices. Mr. Cockerell stated that Staff and Mr. Winkler
were noticing some small items that could be added, as well as offices for the Operations Staff. Mr.
Cockerell and Mr. Winkler did not want to do anything at the plant, at this point, that would impede
the progress of the current construction by Pepper- Lawson.
These items would continue to be discussion items at future board meetings.
The- ninth order of business was SAWS Expansion Project Update — John Winkler, Walker
Partners & Alan Cockerell, General Manager.
Mr. Winkler also advised that Pepper- Lawson was working, but he was not confident that they
would complete the project on time, as they are currently behind schedule. Mr. Winkler's rough
estimation was 30 -45 more days (June July) to complete.
The tenth order of business was SSLGC Construction Update /Seguin Connection — John
Winkler, Walker Partners & Alan Cockerell.
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➢ Change Order # 2 — ( T & F Construction)
Mr. Cockerell stated that the remodel of the Old Fire House /SSLGC Administrative Building was
progressing as scheduled. He noted that there were some items that required modification to
accommodate the ADA requirements and to repair /replace the exterior trim and caulk around the
windows. This would require a change order in the amount of $7,993.
Assistant Secretary Jacobs made a motion to approve T & F Construction Change Order # 2
Amended in the amount of $7,993. 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 and
Action in Response to Same — 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 County & Guadalupe County Carrizo and
Wilcox Water Leases — Alan Cockerell, General Manager.
Executive Session Recommended
President Greenwald deferred item fourteen to Executive Session.
The fifteenth order of business was GBRA Bond Validation Lawsuit — Patrick Lindner,
General Counsel.
Executive Session Recommended
President Greenwald deferred item fifteen to Executive Session.
The sixteenth 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 2:32 PM
Executive Session was held from 2:37 PM to 3:50 PM
Assistant Secretary Jacobs left the meeting at 3:45 PM.
The seventeenth order of business was to Consider and Take Action as Result of Agenda
Item Number sixteen.
President Greenwald reopened General Session at 3:51 PM
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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
Agenda Item # 15:
No action requested /No action taken
The eighteenth 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 June 19, 2014 in the City of Seguin at 1:30 PM
❖ Discuss OHV park
The nineteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:52 PM
MINUTES APPROVED THIS 19TH DAY OF JUNE, 2014.
Larry Dublin, Secretary
T. "Jake" ac
yR9C�
sistant Secretary
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