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08-20-2015MINUTES OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS COUNTY OF GUADALUPE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION On this the 20`' day of August, 2015 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 board members being present and in attendance: Ken Greenwald President Robin Dwyer Kerry Koehler T. "Jake" Jacobs Bob Pees Vice - President Treasurer Secretary Assistant Secretary Jim Fowler 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: Doug Faseler City Manager (City of Seguin) Susan Caddell Director of Finance (City of Seguin) Sam Willoughby Public Works Director (City of Schertz) Patrick Lindner General Counsel (Davidson, Troilo, Ream & Garza) Steven Siebert San Antonio Water System (SAWS) Robert Herrera City Manager (City of Cibolo) Tim Fousse Public Works Director (City of Cibolo) John Winkler Consultant (Walker Partners) Crockett Camp Consultant Bill Klemt Consultant /Hydrologist Billy Phenix Legislative Consultant Alan Cockerell General Manager (SSLGC) Emery Gallagher Water Utility Manager (City of Seguin) Regina Franke Administrative Assistant (SSLGC) The first order of business w s 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. President Greenwald welcomed Mr. Herrera and Mr. Fousse from the City of Cibolo. There were no public comments. Treasurer Koehler urrzved ut prior to the vote for the minutes. The third order of business was of the Minutes for the Board Meeting held ➢ July 16,2015 (Regular) ➢ July 23, 2015 (Special Secretary Jacobs made a motion to approve both the July 16, 2015 and July 23, 2015 minutes as read Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. Vke- President Divyer aynved at 1 :36PM, after the »ote for the rninntes. The fourth order of business was Presentation of the ,General Manager's Report — Alan Cockerell, General Manag,�er. 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 July was 74.9% of Gonzales County Underground Water Conservation District's (GCUWCD) monthly allowable. ➢ GCUWCD Afont)ly MeetErr _ The monthly meeting was held August 11, 2015; Mr. Cockerell attended. A copy of the meeting agenda was included in the board packet. He advised that it was brought to the board's attention that the revised rules had not been posted as required (20 days). The revised rules that were approved by the board on July 23, 2015 have been rescinded and would be reposted. Another public hearing and meeting was scheduled for September 29, 2015. Mr. Cockerell noted that the settlement agreement, in regards to an alleged violation of the District's rules by SSLGC, was executed and returned to the District with the requested payment. Confirmation of receipt dated August 6, 2015 was received. ➢ GCGCD AlonthI Metz : The meeting was held August 13, 2015; Mr. Cockerell attended. The agenda was included in the board packet. The District approved the SSLGC Wilcox permits. Robert Raetzsch was sworn in as representative for District 3. The election notice for Districts 3, 4 & 6 was included in the board packet. The filing deadline was Monday, August 24, 2015. The next meeting was scheduled for September 10, 2015. ➢ Region L /GMA- 13 /RWA lie ion LZ G`' A -13: The 2016 Initially Prepared Plan (IPP) is available on the Region L website: regionitexas.org. A Region L public comments workgroup meeting was scheduled for August 19, 2015 to consider all the public comments that were submitted; Mr. Cockerell was invited and attended. The next Region L meeting is scheduled for September 3, 2015, Mr. Cockerell requested legal advice, regarding this agenda item, be deferred to Executive Session. 2of7 President Greenwald deferred agenda item 4d to Executive Session. ➢ CVLGC The CVLGC Board meeting was held July 30, 2015 at 9:00 AM in Schertz and a copy of the agenda was included in the board packet. Also, included was a copy of an article from the Wilson County Nems. The next board meeting was scheduled for August 27, 2015 at 9:00 AM in Cibolo. The fifth order of business was Cibolo Relocation of the-36-inch Pipeline john Winkler,, Walker Partners & Alan Cockerell General Marla er & Representatives, City-of Cibolo A portion of the SSLGC 36 inch pipeline will need to be relocated due to a drainage project by the City of Cibolo. A strip map of the project was included in the board packet along with Mr. Winkler's preliminary schedule and cost estimate. Mr. Herrera and Mr. Fousse displayed a large map to the Board and discussed the preliminary proposed logistics of the relocation. Mr. Herrera requested that the SSLGC Board allow Mr. Winkler and Mr. Cockerell to continue to work and negotiate with the City of Cibolo on this matter. The anticipation was that more refined terms and plans would be brought back to the SSLGC Board for consideration at a later date. The Board voiced no opposition for Mr. Winkler and Mr. Cockerell continuing the discussion and negotiations with the City of Cibolo regarding this proposed relocation. The sixth order of business was Approval of SSLGC CVLGC Management Services Agrgement MSA — Alan Cockerell General Manage ➢ Resolution # SSLGC RLS -17 There was a copy of the proposed MSA included in the board packet; Mr. Cockerell advised that the only changes were the dates. Staff requested approval. Secretary Jacobs made a motion to approve the Management Services Agreement (MSA) between the SSLGC and CVLGC (Resolution # SSLGC R15 -17). Treasurer Koehler seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The seventh order of business was Presentation of Treasurer's Report — Susan Caddell Finance Director & Alan Cockerell General Manag.�r. a. Financial Statements for the quarter ending June 30, 2015. Included in the board packet were the financial reports for the nine months ended June 30, 2015. The first three pages were the balance sheet for all the SSLGC funds. The two pages following the balance sheet were the income statement for all the SSLGC funds. Finally, following those statements were the balance sheet and income statement for the SAWS funds. Behind those, were the comparative statement for the SSLGC Operating Fund, as well as, the working capital chart. First, Mrs. Caddell reviewed the balance sheet for the SSLGC funds. The first column was for the Operating Fund. That fund consisted of cash and investments of $3,274,431.51. The second column was for the balance of the bonds that was issued for the purchase of the Booth property. There was a balance of cash and investments of $38,602.28. The third column was for the Interest and Sinking Fund. The cash and investment balance in this fund was $1,447,087.39 with receivables of $374,972.64. The first bond payment was made on February 1 in the amount of $2,134,575. The fourth column was for the Repair and Replacement Fund. The cash and investment balance was now at $8,073,922.64. Of that amount, $3,000,000 is allocated for the Cathodic Protection project. The fifth column was for the Future 3of7 Development Fund. The cash and investment balance was $1,669,124.22. The down payment and monthly payments for the Booth property has been reimbursed by the bond proceeds in the amount of $1,104,328.74. The sixth column was for the Impact Fund. The cash and investment balance in this fund was $3,446,546.27. The seventh column was for the Reserve Fund. The required amount to maintain in the Reserve Fund according to bond covenants was $1,275,621.10. The cash and investment balance in that fund was $1,282,575.59. The eighth column was the 2010 Bond Fund. The cash and investment balance in that fund was $1,608,389.94. We still have $733,981 in outstanding purchase orders for that fund. Mrs. Caddell moved on to review the income statement for the SSLGC funds. The first column was the Operating Fund. The net income before transfers was $3,049,336.91. The board had voted on a budget amendment during the May meeting. That amendment was to transfer the funds originally budgeted in the Operating Fund for the Cathodic Protection project of $2,130,999 to the Repair and Replacement Fund. In addition, the board also voted to transfer the funds above the three- months operating minimum requirement to be held in retained earnings. That additional transfer was $3,192,159. The total transfer to the Repair and Replacement Fund went from $800,000 to $6,123,158. After the budgeted transfers to the Repair and Replacement Fund and the Future Development Fund, the net loss was $3,248,821.09. The second column was income statement for the bond proceeds and expenditures from the bonds issued in January. The third column was I &S Fund. The first bond payment has been made. The interest for that payment in the expenditures. The fourth column is for the Repair and Replacement Fund. The expenditure for L &I Maint.- Dist. System was for repairs to pumps #1 and #4. The fifth column was the Future Development Fund. The expenditure for $285,000 was the amount needed for the contribution towards the refunding of old bonds in order to achieve the greatest savings over the life of the bonds. The expenditure for $1,054,328.74 was the down payment and monthly payments for the Booth property. The sixth column was the Impact Fund. For the first nine months, we have received a total of $509,944 in impact fees. The eighth column was for the 2010 Bond Fund. Mrs. Caddell provided a report, at the back, with an accounting of the expenditures of the bond funds since SSLG received the proceeds at the board meeting. The total column indicated net income of $5,218,486.84. As shown earlier, the reports following the SSLGC Fund reports were those for the SAWS Funds. Mrs. Caddell provided a report, at the back, with an accounting of the expenditures of the bond funds since SSLGC received the proceeds at the board meeting. The Comparative Income Statement for the Operating Fund could be found towards the back of the report. Revenue had increased by $913,507.31. That was largely due to SAWS now purchasing our excess water. Not including SAWS and Springs Hill usage, consumption has decreased by 56,022,000 gallons. That was due to the heavy rains received in May and June. Expenditures have increased by $427,674.66, with the largest being in utilities services of $366,722.93. Net income before transfers increased from last year by $754,832.65. Working capital had increased since March 31, 2015, by $1,747,607. That was due to the fact SSLGC's second bond payment was not been made until August 1, while the payments had been coming in from the entities for that payment. Vice - President Dwyer made a motion to approve SSLGC's financial statements for the quarter ended June 30, 2015. Treasurer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. b. Investment Report for the quarter ending June 30, 2015. 4of7 Mrs. Caddell presented the Investment Report for April 1, 2015 through June 30, 2015. Interest earnings for the quarter ended June 30, 2015 were $ 4,603. Vice - President Dwyer made a motion to accept SSLGC's Investment Report for quarter ended June 30, 2015. Treasurer Koehler 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 (MSA) for the quarter ending June 30, 2015. 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 April 1, 2015 through June 30, 2015, as indicated in the first column on the report, were $1,962,996.65. The second column was the expenditures for the first nine months of the year. All categories were currently under budget. In accordance with the MSA between SSLGC and the City of Seguin, The City requested reimbursement for the expenditures for the second quarter of FY2015 in the amount of $1,962,996.65. Secretary Jacobs made a motion to approve the reimbursement to the City of Seguin in accordance with the Management Services Agreement of $1,962,996.65. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The ei hth order of bilsiness was A rave the e f LGC im act Fee Fund s a portion of the debt service payment due FY2015 -2016 ➢ Resolution # SSLGC X1545 As discussed at the July 23, 2015 Special called board meeting, due to SAWS actions regarding excess water for FY2015 -2016, Staff requested to use a monies from the SSLGC Impact Fee Fund to satisfy a portion of the FY2015 -2016 debt service. The amount requested, $550,000, represents approximately 16% of the Impact Fee Fund balance. Staff recommended approval. Vice - President Dwyer made a motion to approve the use of SSLGC Impact Fee Funds in an amount not to exceed $550,000 (Resolution # SSLGC R15 -15) Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The ninth order of business was A royal of Task Order # 20 —Tank Paint' rehab — John Winkler, Walker Partners & Alan Cockerell, General Manager ➢ Task Order # 20 Mr. Cockerell explained that the tanks had been in service for quite some time and were due for maintenance /rehab /painting. Some issues existed with one of the tanks regarding a gap between the tank and roof which needed to be addressed. This task order would allow for Mr. Winkler to start the bid process for the tank rehab. Staff recommended approval. Mr. Cockerell also noted that this would be funded from the Repair /Replacement Fund. Assistant Secretary Pees made a motion to approve Task Order # 20 and amended his original motion to include the funding for this task order would come from the Repair /Replacement Fund. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. 5 of 7 The tenth order of usiness was SSLGC Constructi n U date — John Winkler Walker Partners & Alga Cockerell, General Manager ➢ Resolution # SSLGC R15 -16 -2010 Bond Fund — Cathodic Protection When the Board approved the FY2014 -2015 Budget, the use of the 2010 Bond funds was discussed in the amount of $573,001, to aid in funding the installation of the Cathodic Protection System. Staff recommended approval. Vice - President Dwyer made a motion to approve the use of 2010 Bond funds in an amount not to exceed $573,001, to aid in funding the installation of the Cathodic Protection System (Resolution # SSLGC R15 -16). Treasurer Koehler seconded the motion. Upon a vote being called, the motion carried by unanimous decision. On August 24, 2015 Mr. Winkler and Mr. Cockerell hosted a pre - construction meeting with both Corrpro and Field Construction and issued a notice to proceed for the Cathodic Protection System Project. Walker Partners has worked with Wauters Engineering to resolve the punch list items. Mr. Cockerell planned to notify Preload that they were allowed to proceed with completing their contract and would advise them that there was a leak at the inlet piping that needed to be evaluated as part of their contract. Mr. Cockerell advised that Ramming would be performing the parking lot rehab at the SSLGC Administrative Building. A Purchase Order was generated, and it was anticipated that the restoration would be completed by the September 17, 2015 board meeting. SSLGC continues to wait for TCEQ approval of the Chlorine Dioxide System. The eleventh order of business was Legislative Update — Billy Phenix, Legislative Consultant & Alan Cockerell, General Manager Counselor Lindner requested this agenda item be deferred to executive session for legal advice. President Greenwald deferred item eleven to Executive Session The twelfth order of business was Pot Oak Clean-Green., Inc. Landfill — Patrick Lindner G neral uns e 1. & John Witilder, Walker Partners Executive Session Recommended President Greenwald deferred item twelve to Executive Session The thirteenth order of business was Guadalupe Pr ject Wholesale Water —Contract(s)) &Well Permit(s) — Patrick Lindner General Counsel & Alan Cockerell General Manage Executive Session Recommended President Greenwald deferred item thirteen to Executive Session The fourteenth order of business was Gonzales Coumy & Guadalupe County Carrize and Wilcox Water Leases and Property Purchases — Alan Cockerell General Manager Executive Session Recommended President Greenwald deferred item fourteen to Executive Session 6of7 The fifteenth order of business 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 :54 PM Executive Session was held firm 3:10 PM to 3.38 PM The sixteenth order of business was Consider and Take Action as Result of Agenda Item Number fifteen. President Greenwald reopened General Session at 3 :53 PM The seventeenth order of business was Consideration and/or Action on questions and possible item to be placed on the next agenda. ❖ The next scheduled was scheduled for Thursday, September 17, 2015 in the SSLGC Administrative Building at 1:30 PM ❖ Budget Adjustment for Vacuum Truck Agenda Item # 4d No action requested /No action taken 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 eighteenth order of business was Adjournment. President Greenwald declared the meeting adjourned at 3:39PM MINUTES APPROVED THIS 17`h DAY OF SEPTEMBER, 2015. le OR o `` T. "Jake" Jacobs, Secretary Bob Pees, Assistant Secretary 7 of 7