09-16-2014MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 16" day of September, 2014 the Schertz /Seguin Local Government Corporation (SSLGC)
convened at 1:30 PM at SSLGC Administrative Building located at 108 W. Mountain Street, Seguin, Texas.
The following directors being present and in attendance:
Ken Greenwald President
Robin Dwyer Vice - President
Kerry Koehler Treasurer
T. "Jake" Jacobs Secretary
David Scagliola Ex- Officio
Mayor Keil 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:
Susan Caddell
Director of Finance (City of Seguin)
Sam Willoughby
Public Works Director (City of Schertz)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Steve Fletcher
San Antonio Water System (SAWS)
Steven Siebert
San Antonio Water System (SAWS)
John Winkler
Consultant (Walker Partners)
Crockett Camp
Consultant
Bill Klemt
Consultant /Hydrologist
Mark M�Liney
Financial Advisor (Southwest Securities)
Duane Westerman
Financial Advisor (SAMCO)
Billy Phenix
Legislative Consultant
Steve White
Director /Treasurer (CVLGC)
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 1:33 PM
The second order of business was Public Comment.
Ex- officio Keil apologized for his three month absence; he explained that he had been attending training
which was required for public officials.
The third order of business was Election of Officers.
President Greenwald advised that with the upcoming bond refunding and in light of Director Dublin's
passing, the Board did not have a Secretary, which was necessary to fully execute documents.
Vice - President Dwyer made a motion to appoint Director Jacobs as Secretary. Treasurer Koehler
seconded the motion. Upon a vote being called, the motion carried by unanimous decision.
The fourth order of business was Approval of the Minutes for the Board Meeting held August 21,
2014.
Vice - President Dwyer made a motion to approve the August 21, 2014 minutes as read. Treasurer
Koehler seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
Mr. Cockerell requested that President Greenwald move Agenda Item # 6 up in the order so that
all the necessary documents could be executed and the Co- financial Advisors could leave to
attend the Schertz and Seguin City Council meetings.
The sixth order of business was CONSIDERATION AND APPROVAL OF RESOLUTION BY
THE BOARD OF DIRECTORS OF THE SCHERTZ /SEQUIN LOCAL GOVERNMENT
CORPORATION AUTHORIZING THE ISSUANCE OF "SCHERTZ /SEQUIN LOCAL
GOVERNMENT CORPORATION CONTRACT REVENUE REFUNDING BONDS, NEW
SERIES 2014 "; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND
INTEREST ON THESE BONDS, THE TERMS AND CONDITIONS OF SUCH BONDS,
AND THE FUTURE ISSUANCE OF ADDITIONAL BONDS ON PARITY THEREWITH;
FORECLOSING THE ABILITY TO ISSUE ADDITIONAL BONDS THAT ARE SENIOR IN
SECURITY AND PRIORITY OF PAYMENT TO THE BONDS AND ADDITIONAL BONDS
HEREAFTER ISSUED ON PARITY THEREWITH; 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; COMPLYING WITH THE
REQUIREMENTS OF THE DEPOSITORY TRUST COMPANY'S LETTER OF
REPRESENTATIONS; AND PROVIDING AN EFFECTIVE DATE — Mark McLinev.
Southwest Securities & Duane Westerinan, SAMCO & W. Jeffrey Kuhn, Fulbright & Jaworski
LLP
➢ Resolution # SSLGC R14 -16
Vice - President Dwyer made a motion to approve a resolution authorizing the issuance of
Schertz /Seguin Local Government Corporation Contract Revenue Refunding Bonds, New Series
2014. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
President Greenwald closed General Session at 1.45 PM to allow for the above documents to be
executed. He reopened General Session at 2.•11 PM.
Mr. Cockerell advised that Staff recommended that the funds required to meet SSLGC's
obligation, for the bond refunding, be taken from the Future Development Fund.
Vice - President Dwyer made a motion to approve the use of monies, in the amount of $285,000,
from the Future Development Fund for SSLGC's cost for the bond refunding. Secretary Jacobs
seconded the motion. Upon a vote being called, the motion carried by unanimous decision
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Mr. Cockerell requested that President Greenwald move Agenda Item # 14 up in the order so that
all the necessary documents could be executed Counselor Lindner could leave the meeting as he
had another committment.
The fourteenth order of business was Gonzales County & Guadalupe County Carrizo and Wilcox
Water Leases — Alan Cockerell, General Manager.
Executive Session Recommended
President Greenwald reserved the right to defer this item to Executive Session if necessary.
Counselor Lindner advised that he did not need to defer this item to Executive Session. He presented
Resolution # SSLGC R14 -17 authorizing the purchase of 1,469 acres of land located in Guadalupe County
from Sarah Booth Family Trust and Mason Booth Family Trust.
Vice - President Dwyer made a motion to approve Resolution # SSLGC R14 -17 to authorize the
purchase of the Booth property of 1,469 acres. Treasurer Koehler 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.
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 August was 80.9% of Gonzales County Underground Water
Conservation District's (GCUWCD) monthly allowable.
Mr. Cockerell noted the following:
The negative amount for SAWS T -2 water was due to increased usage by Schertz and the inability
for the SSLGC system to deliver both SSLGC water and SAWS water from the BPS. The new
pump station at the BPS was not fully functional due to limitations on the surge tank that
protected the pipeline. A new air compressor head had been ordered and would be installed upon
delivery. That would enable the new pump station to operate at full capacity. In the interim,
SSLGC operators had identified methods to monitor and control the delivery of water from the
BPS.
➢ GCUWCD
GCUWCD Rules Meeting
The District conducted a second meeting, August 19, 2014, with all parties that submitted
comments on the District rule changes, at the District's office. SSLGC representatives were in
attendance. The district was in the process of compiling results of both meetings for further
review
Monthly Meeting
The monthly meeting was held September 9, 2014. Mr. Cockerell attended. A copy of the meeting
agenda was included in the board packet. The meeting began again with a public comment
requesting the Board terminate SSLGC's permits due to the Corporation's contract with SAWS.
The Board did not react to the comments and no action was taken.
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➢ GCGCD
Montbly Meeting
The District did not have a meeting this month. The next meeting was scheduled for October 9,
2014. A workshop to discuss potential rule changes was scheduled for October 23, 2014. Both
meetings will be held at the SSLGC office.
➢ Region L /GMA -13
Legion LQuarterly Meeting.
The next Region L meeting was scheduled for November 6, 2014.
➢ CVLGC
The CVLGC Board meeting was held on August 28, 2014 in Schertz. Schertz and Cibolo
continued with the planned water supply project in order to meet their future long term needs.
The next board meeting was scheduled for September 25, 2014 in Cibolo.
The sixth order of business was Extend Audit Services for One Additional Year with Armstrong,
Vaughan & Associates /Audit Engagement Letter — Susan Caddell,, Director of Finance & Alan
Cockerell, General Manager
Mrs. Caddell advised that the City had been working to convert to a new enterprise system and there had
not been adequate to time request proposals for an auditor. She asked that the Board approve the use of
Armstrong, Vaughan & Associates for one additional year. Mrs. Caddell noted that since the Auditors
were considered a Professional Service, the law did not require going out for bids every three years, only
that the City and SSLGC chose to do so in the past.
Vice - President Dwyer made a motion to the use of Armstrong, Vaughan & Associated for one
additional year and authorize the General Manager to sign the engagement letter. Treasurer
Koehler seconded the motion. Upon a vote being called, the motion carried by unanimous
decision.
Agenda Item # 7 moved up to follow Agenda Item # 4.
The eighth order of business was Booster Pump Station (BPS) 36" Piping — John Winkler, Walker
Partners
➢ Task Order # 14 — BPS Piping
Mr. Winkler advised that SAWS had agreed to fund the project. Mr. Cockerell advised that he had this in
writing from Darren Thompson, SAWS.
Vice - President Dwyer made a motion to approve Task Order # 14 — BPS Piping. Treasurer
Koehler seconded the motion. Upon a vote being called, the motion carried by unanimous
decision
The ninth order of business was SSLGC Construction Update /Seguin Connection —John
Winkler, Walker Partners & Alan Cockerell.
Mr. Winkler noted that there had not been much construction activity at the location because the materials
(pipes and fittings) were being fabricated and would be delivered to the site. Mr. Cockerell advised that the
parts had been delivered for the Seguin connection and expected JS Haren to continue their progress.
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Mr. Cockerell stated that the SSLGC Administrative Office Building had been through its accessibility
inspection and the only noted issue was the parking lot. He advised that Staff was working to obtain
quotes for that repair /rehab. There are 270 days allowed for that process.
Mr. Cockerell noted that Staff was working on an invite list for the building dedication which was
scheduled for Wednesday, October 29, 2014 at 6:30 PM. He would continue to work the two cities to
finish up the list and electronic invites would be distributed.
The tenth order of business was SAWS Expansion Project Update — john Winkler. Walker
Partners & Alan Cockerell, General Manager.
Mr. Winkler advised that he and Mr. Cockerell had done a walk through with Pepper- Lawson and there
were still items on the punch list that needed to be resolved.
Vice - President Dwyer asked about the two major items that were discussed at the previous (August) board
meeting. Mr. Winkler advised they were waiting on a part for one of the items and the other (potassium
permanganate system) was functioning but was being tweaked.
The eleventh order of Business was Legislative Update — Billy Phenix, Legislative Consultant &
Alan Cockerell, Executive Director.
Mr. Phenix advised that there was intent to have a sit down meeting with Senator Donna Campbell, but at
present time she was in the midst of studying for her medical boards. He suggested to hold off on
scheduling such a meeting until she was done and could devote her attention to the matters at hand.
Mr. Phenix advised that TWCA working group was potentially leaning more toward long term permitting;
he will continue to update the Board on the matter. He anticipated that this session would prove to be
more positive versus the last 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 of business was Guadalupe Project Wholesale Water Contract s() — Patrick Lindner,
General Counsel.
Executive Session Recommended
President Greenwald deferred item thirteen to Executive Session.
Agenda Item # 14 moved up to follow Agenda Item # 7.
The fifteenth order of business was Executive Session called under Chapter 551 Government
Code, Section 551.471, to seek the advice of its attorney on legal matters, and Section 551.072, fi r
deliberations regarding real estate.
President Greenwald closed General Session at 2:48 PM
Executive Session was held from 3:01 PM to 3:49 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 3:49PM
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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 as a result of Executive Session /Action was taken after Agenda
Item # 7
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 October 16, 2014 in the SSLGC Administrative
Building at 1:30 PM
The eighteenth order of business was Adjournment.
President Greenwald declared the meeting adjourned at 3 :51 PM
MINUTES APPROVED THIS _16`h DAY OF OCTOBER, 2014.
C,
T. «JaW' J
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