11-19-2015MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 19" day of November, 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
Jim Fowler
Mayor Keil
Vice - President
Treasurer
Secretary
Assistant Secretary
Ex- Officio
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)
Dudley Wait
Deputy City Manager (City of Schertz)
Susan Caddell
Director of Finance (City of Seguin)
Sam Willoughby
Public Works Director (City of Schertz)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Felix Arambula, Sr.
Brandon Payne
John Winkler
Crockett Camp
Bill Klemt
Billy Phenix
Emery Gallagher
Alan Cockerell
Shawn Shimek
Regina Franke
San Antonio Water System (SAWS)
San Antonio Water System (SAWS)
Consultant (Walker Partners)
Consultant
Consultant/ Hydrologist
Legislative Consultant
Water Utility Manager (City of Seguin)
General Manager (SSLGC)
Water System Superintendent (SSLGC)
Administrative Assistant (SSI.GC)
The first order of husiness was to Calf the Meeting to Order.
President Ken Greenwald called the meeting to order at 1:30 PM
The second order of business was Public Comment.
There were no public comments.
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The third order of business was of IU Minutes for the Board Meeting held October 15, 2015
Secretary Jacobs made a motion to approve the October 15, 2015 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 n ral Manager's—Re- ort -- Alan C ck r ll
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 October was 75.8% of Gonzales County Underground Water
Conservation District's (GCUWCD) monthly allowable.
➢ GCUWCD
MmLbl
The monthly meeting was held November 10, 2015; Mr. Cockerell attended. A copy of the agenda was
included in the board packet. The Districts manager approved the renewal of the SSLGC well permits
based on new legislation, which became effective on September 1, 2015. The export permits are for 30
years and the production are 5 year permits.
SSLGC made a contribution to the Wester Mitigation Fund based on 2014 production.
The District will conduct a public hearing to accept public comments regarding proposed changes to
rule 16 (Drilling, Completing, Equipping and Reworking Wells) and 21 (Plugging and Capping of Wells).
These proposed changes are to incorporate completion standards for these activities.
➢ GCGCD
Man11�11r ;I'1r:c�i�tp;
The monthly meeting was held November 12, 2015; Mr. Cockerell attended. The agenda and a copy
of the approved FY2015 -2016 budget was included in the board packet. The next meeting was
scheduled for January 14, 2016.
➢ Region L /GMA- 13 /RWA
Region L
The quarterly meeting was November 5, 2015; Mr. Cockerell attended. A copy of the agenda was
included in the board packet. There was continued discussion regarding the CVLGC projects in the
regional plan. The planning group decided not to reconsider the previous vote to remove these projects
from the plan. The 2016 Region L plan, including the prioritization of projects, was approved for
submittal to the TWDB with two dissenting votes casted by Mr. Russell Labus (Evergreen General
Manager) and Ms. Diane Savage (GMA -13 representative).
GAM- 13:
The meeting was November 12, 2015; Mr. Cockerell was unable to attend.
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➢ CVLGC
The CVLGC Board meeting was held October 22, 2015 at 9:00 AM in Cibolo and a copy of the agenda
was included in the board packet. Work continues to finalize a lease template.
The next board meeting was scheduled for December 10, 2015 at 9:00 AM in Schertz.
The fifth order of busine s Presentation of Treasurer's Report — Susan Caddell. Finance Director
Alan Cockerell, General Manager.
a. Financial Statements for the quarter ending March 31, 2015.
Included in the board packet were the financial reports for the year ended September 30, 2015. These
statements are issued prior to any possible audit adjustments may be proposed by our auditors. The first
three pages is the balance sheet for all the SSLGC funds. The two pages following the balance sheet is the
income statement for all the SSLGC funds. Finally, following those statements are the balance sheet and
income statement for the SAWS funds. Behind those, you will find the comparative statement for the
SSLGC Operating Fund as well as the working capital chart.
Mrs. Caddell first reviewed the balance sheet for the SSLGC funds. The first column is for the Operating
Fund. This fund consists of cash and investments of $4,685,392.71. The second column is for the balance
of the bonds that was issued for the purchase of the Booth property. There is a balance of cash and
investments of $38,618.95. The third column is for the Interest and Sinking Fund. The cash and investment
balance in this fund is $717,593.20 with receivables of $288,536.74. The fourth column is for the Repair
and Replacement Fund. The cash and investment balance is now $8,235,550.43. The fifth column is for
the Future Development Fund. The cash and investment balance is $1,793,959.68. 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 is for the Impact Fund. The cash and investment balance in this fund is
$3,895,802.61. The seventh column is for the Reserve Fund. The required amount to maintain in the
Reserve Fund according to bond covenants is $1,275,621.10. The cash and investment balance in this fund
is $1,282,805.99. The eighth column is the 2010 Bond Fund. The cash and investment balance in this
fund is $1,400,519.53. We still have $489,478.69 in outstanding purchase orders for this fund.
Mrs. Caddell reviewed the income statement for the SSLGC funds. The first column is the Operating Fund.
The net income before transfers is $4,183,647.52. As you recall, the board voted on a budget amendment
during the May meeting. This 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. This 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 is $2,439,510.48. The second column is
income statement for the bond proceeds and expenditures from the bonds issued in January. The third
column is I &S Fund. You will find the interest for the bond payments in the expenditures. All principal
payments have been taken out of each individual Bonds Payable account in the Balance Sheet. The fourth
column is for the Repair and Replacement Fund. The expenditure for L &I Maint. -Dist. System is for repairs
to pumps #1 and #4. The expenditure for Improvements other than Buildings is $224,613.35 for the
cathodic protection project and $2,700 for engineering services for tank rehabilitation. The fifth column is
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 $1,054,828.74 is the down payment and monthly payments for the Booth property. The
sixth column is the Impact Fund. For the year, we have received a total of $878,039.54 in impact fees. The
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eighth column is for the 2010 Bond Fund. She has 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 total column
indicates net income of $5,416,340.85.
As indicated earlier, the reports following the SSLGC Fund reports are those for the SAWS Funds. Mrs.
Caddell has 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.
You will find the Comparative Income Statement for the Operating Fund towards the back of the report.
Revenue has increased by $1,578,363.10. This is largely due to SAWS now purchasing our excess water.
Not including SAWS and Springs Hill usage, consumption has decreased by 38,161,000 gallons. This is
largely due to the Universal City taking more water in FY14. They took 79,768,400 gallons more in FY14.
Expenditures have increased by $1,137,235.55, with the largest being in utilities services of $488,427.82.
Our net income before transfers increased from last year by $710,127.55.
Finally, you will find the working capital trend chart. Working capital has increased slightly since June 30,
2015, by $197,853.
Assistant Secretary Pees made a motion to approve SSLGC's financial statements for the quarter ended
September 30, 2015. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion
carried by unanimous decision.
b. Investment Report for the quarter ending September 30, 2015.
Mrs. Caddell presented the Investment Report for July 1, 2015 through September 30, 2015. Interest earnings
for the quarter ended September 30, 2015 were $ 6,363.
Vice - President Dwyer made a motion to accept SSLGC's Investment Report for quarter ended
September 30 2015. Secretary Jacobs 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 September 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 July 1, 2015 through September 30, 2015, as indicated in
the first column on the report, were $2,534,158.15. The second column was the expenditures for the fiscal year.
All categories were currently under budget. In the first column was a ($22,648.39) for the GCUWCD account.
This was due to the fact that the payment to the District to the Western Mitigation Fund in the amount of
$62,285 was incorrectly charged to this account in a previous quarter. That payment has been correctly
transferred to the GCUWCD Mitigation Fund Payment account.
In accordance with the MSA between SSLGC and the City of Seguin, The City requested reimbursement for
the expenditures for the fourth quarter of FY2015 in the amount of $2,534,158.15.
Secretary Jacobs made a motion to approve the reimbursement to the City of Seguin in accordance
with the Management Services Agreement of $2,534,158.15. Vice - President Dwyer seconded the
motion. Upon a vote being called, the motion carried by unanimous decision.
The sixth order of business was Approve Calendar of Board Meetings for 2016 — Alan Cackerell,
General Manager
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Mr. Cockerell advised that the schedule of the third Thursday of each month was what Staff continued with
in this 2016 calendar of board meeting.
DATE
TIME
LOCATION
1/21/2016
1:30 PM
108 W. MOUNTAIN
2/18/2016
1:30 PM
108 W. MOUNTAIN
3/17/2016
1:30 PM
108 W. MOUNTAIN
4/21/2016
1:30 PM
108 W. MOUNTAIN
5/19/2016
1:30 PM
108 W. MOUNTAIN
6/16/2016
1:30 PM
108 W. MOUNTAIN
7/21/2016
1:30 PM
108 W. MOUNTAIN
8/18/2016
1:30 PM
108 W. MOUNTAIN
9/15/2016
1:30 PM
108 W. MOUNTAIN
10/20/2016
1:30 PM
108 W. MOUNTAIN
11/17/2016
1:30 PM
108 W. MOUNTAIN
12/15/2016
1:30 PM
108 W. MOUNTAIN
Vice - President Dwyer made a motion to approve the 2016 calendar of board meetings as presented.
Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The seventh order of business was SSLGC Parks & Rec Master Plan —John Winkler, Walker Partners
& Alan Cockerell, General Manager
Mr. Cockerell advised that Mr. Baldwin and Mr. Vicic had presented all the potential items for the master
plan. They wanted to give the Board "the big picture" of what the possibilities were for this property. Mr.
Cockerell asked the Board for direction regarding where they wanted to begin; he understood that they were
interested in the more immediate /modified (phase 1) of a project. Something that would provide for more of
a day use with the larger lake and wetlands, a picnic area, a pavilion, non - powered boating, fishing, nature
trails and potential use of the Henry House property as a management office, public restrooms and
maintenance building. The entrance would be accessible from CR 127 for this phase of the plan. It would
also theoretically mirror what Seguin has in Nolte Island, with the possibly of the pavilion area to be rentable
as a venue. Per Board discussion, Mr. Cockerell and Mr. Winkler would work with Mr. Baldwin to continue
along this described Phase 1 path with the other additional facilities being a possibility in the future, including
overnight camping and the ultimate phase to include RV facilities, etc.
The eighth order of business was —Approve Task Order # 21 WTP Office and Work Area - John
Winkler Walker Partner
➢ Task Order # 21
Mr. Cockerell called attention to a list of task orders and their status, which was included in the board packet,
for the Board's information.
This had been one of the items that had been discussed during budget time, but there were other
issues /projects that were more immediate. Mr. Cockerell advised that the operators have no enclosed place
to eat their lunch, there is no breakroom. They also share one restroom. The only place to eat away from the
insects and a more controlled climate indoors would be the lab area and that was not an optimum situation.
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This task order included the cost for an architect. Secretary Jacobs asked if that would be one part that could
be eliminated from the process to cut costs. Vice - President Dwyer, Mr. Cockerell and Mr. Winkler advised
that the architect was an important part of this process. Mr. Cockerell noted that this was the same one
which was used for the remodel of the SSLGC Administrative Building and Staff was pleased with her quality
of work.
Secretary Jacobs made a motion to approve Task Order # 21 and funding for this task order from the
2010 SSLGC Bond Fund in an estimated amount of $607,000. Vice - President Dwyer seconded the
motion. Upon a vote being called, the motion carried by unanimous decision.
The ninth order of business Approve Task Order # 22 WTP Soft Starts — John Winkler, Walket
Partners.
Mr. Cockerell noted that as previously discussed the Variable Frequency Drives (VFDs) would require an
upgrade which was expensive and the plant does not operate where a VFD is necessary. The life of the new
Soft Start Drives would be approximately 15- 20 years. The costs to replace the current VFDs with the new
Soft Start Drives was estimated to be approximately the same as upgrading to the VFD and the Soft Start
Drives were a more optimum type of drive for the way the plant operates.
Vice - President Dwyer made a motion to approve Task Order # 22 and funding for this task order from
the 2010 SSLGC Bond Fund. Treasurer Koehler seconded the motion. Upon a vote being called, the
motion carried by unanimous decision.
The tenth order of business was Approve Contractor for Tank Rehab 2 — 2.5 million gallon metal
tanks —,John Winkler, Walker Partners & Alan Cockerell, General Manager
Mr. Winkler advised that the bids came in at a favorable amount. Williams Painting & Sandblasting Inc. came
is as the lowest bid and Mr. Winkler spoke to previous clients and they were happy with their quality of work.
Based on that information, Mr. Winkler recommended Williams Painting & Sandblasting Inc.
Secretary Jacobs made a motion to approve Resolution # SSLGC R15 -24- Approve Contractor for Tank
Rehab not to exceed $559,673 and funding for this contract from the SSSLG Repair /Replacement
Fund. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
The eleventh order of business was SSLGC n truc 'on Update — John Winkler, Walker Partners &
Alan Cockerell, General Manager
➢ Chlorine Dioxide
Mr. Winkler advised that chemicals were pending delivery.
➢ Preload
Repaired leak on inlet pipe and pitting. They are now in the process of replacing the skirting
around the tank. The rains have slowed their completion. Mr. Cockerell is hopeful they will
complete the contract soon.
➢ Cathodic Protect
Mr. Cockerell advised that the contractors are progressing. They started at the NWTP and have
made it through the Edward Mattson property. The contractors are working together and are
averaging approximately 30 joints per day (approx. 1,000 feet per day or 1 mile per day). Mr.
Winkler advised that the next step for him and Mr. Cockerell would be a meeting with the
contractors and the City of Seguin regarding the Sutherland Spring Road area.
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The twelfth order of business was Cibolo Relocation of The 36 inch Pipeline — John Winkler, Walk r
Partners & Alan Cockerell, General Manager
Mr. Cockerell advised there was no action requested. Mr. Winkler noted that he continued to wait on data
from the City of Cibolo.
The thirteenth order of business was Policy tQ name Facilities in Honor — Alan Cockerell General
Manager
➢ Resolution # SSLGC R -25 — Facility Naming Policy
Mr. Cockerell advised that is had been brought to Staffs attention that there may be some interest in the
naming of buildings in the name of some individuals who have passed. This policy was taken from a
combination of the City of Seguin's and City of Schertz's policies and forms. The discussion yielded the
intent to review these annually.
Assistant Secretary Pees made a motion to approve Resolution # SSLGC R15- 25- Facility Naming
Policy as amended to review the applications annually. Treasurer Koehler seconded the motion. Upon
a vote being called, the motion carried by unanimous decision.
The fourteenth order of business was Legislative Update — Billy Phenix Legislative C n t & Alan
Cockerell, General Manager
Counselor Lindner requested that this agenda item be deferred to Executive Session.
President Greenwald deferred item fourteen to Executive Session
The fifteenth order of business was Post Oak Clean Green, Inc. (Landfill) — Patrick Lindner, General
Counsel & John Winkler, Walker Partners
Executive Session Recommended
President Greenwald deferred item fifteen to Executive Session
The sixteenth order of business Guadalupe Project Wholesale Water Contract(s) & Well Permits
Patrick Lindner, General Counsel Alan Cockerell, General M naer
Executive Session Recommended
President Greenwald deferred item sixteen to Executive Session
The seventeenth order of business was Gonzales Co my & Guadalupe County Carrizo and Wilcox
Water Leases and Property Purchases — -Alan Cockerell, General Manager
Executive Session Recommended
President Greenwald deferred item seventeen to Executive Session
The eighteenth order of business Executive Session called under C ter 551 Government Code
Section 551 071, to seek the advice of its attorney on regal matters, and S ction 551.(172, far $eliberatir�ns
regarding real estate
President Greenwald closed General Session at 2.50PM
Executive Session was held from 3:01 PM to 3:18 PM
The a Consider an Take Action as Result f Agenda Men Number
seventeen.
President Greenwald reopened General Session at 3:18 PM
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Agenda Item #11
No action requested /No action taken
Agenda Item #14
No action requested /No action taken
Agenda Item #15
No action requested /No action taken
Agenda Item #16
No action requested /No action taken
Agenda Item #17
No action requested /No action taken
The twentieth order of business was Consideration andlor Action on questions and possible items to
be Placed on the next agenda.
•S The next board meeting was scheduled for Thursday, December 17, 2015 in the SSLGC Administrative
Building at 1:30 PM
❖ Discuss SWIFT Funding
The hventy-first-or-der of business was Adjournment.
President Greenwald declared the meeting adjourned at 3:23PM
MINUTES APPROVED THIS 17`h DAY OF DECEMBER, 2015.
OR
T. "Jake" Jaco , Secrsu*- Bob Pees, Assistant Secretary
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