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07-21-2016MINUTES OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS COUNTY OF GUADALUPE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION On this the 21st day of July, 2016, 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 Vice- President Andrew Hunt Treasurer T. "Jake" Jacobs Secretary Bob Pees 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) John Kessel City Manager (City of Schertz) Rick Cortez Assistant City Manager (City of Seguin) Dudley Wait Executive Director of Operations (City of Schertz) Jimmy Hooks Assistant Public Works Director (City of Schertz) Susan Caddell Director of Finance (City of Seguin) Patrick Lindner General Counsel (Davidson, Troilo, Ream & Garza) Kelley Vickers Executive Administrator (GCGCD) Steven Siebert San Antonio Water System (SAWS) Andrew Friesenhahn Financial Consultant (SAMCO) John Winkler Consultant (walker Partners) David Baldwin Consultant (David Baldwin & Associates) Billy Phenix Legislative Consultant Bill Klemt Consultant /Hydrologist Emery Gallagher Water Utility Manager (city of Seguin) Johnny Bierschwale Citizen (City of Schertz) Alan Cockerell General Manager (SSLGC) Amber Briggs Assistant General Manager (SSLGC) Regina Franke Administrative Assistant (SSLGC) The first order of business was to Cali the Meeting to Order President Ken Greenwald called the meeting to order at 1:30PM. The second order of business was Public Comment There were no public comments. Iof6 SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM rcf The third order of business was of the Minutes for the Board Meeting held June 23, 2016 Assistant Secretary Pees made a motion to approve the June 23, 2016 minutes. Secretary Jacobs seconded the motion. Upon a vote being called, the motion carried by unanimous decision. Vice - President Dryer arrived after the vote on the June 23, 2016 minutes took place (1:35PM). 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 June 2016 was 53.5% of Gonzales County Underground Water Conservation District's (GCUWCD) monthly allowable. ➢ GCUWCD ALOnt l iweatirt The monthly meeting was held July 12, 2016; Miss Briggs attended. A copy of the agenda was included in the board packet. The District took no action in determining whether the CRWA permit amendment request was a major or minor amendment. The lack of action indicated that the District's manager would process it as a minor amendment in accordance with district rules. MonitorrniBell �1erl The meeting was held June 27, 2016; SSLGC representatives attended the meeting along with other permit holders to discuss the installation of monitor wells. Permit holders continue to work with the Gonzales and Guadalupe Districts to identify monitor well locations in the Carrizo outcrop. A follow up meeting was anticipated for later in August. SSLGC is required to install four monitor wells as a condition of the Gonzales permits along with other producers. This activity is planned to implement in two phase and set to begin 2017. GCGCD Eilark rha ems^ Meelin The workshop and meeting were held July 14, 2016; Mr. Cockerell attended. A copy of the agenda was included in the board packet. The District discussed modifications to its rules related to Wilcox well spacing and water right allocation. The desire is to allow more participants in a large scale project but the District decided to delay any modifications to its rules until more data was available. CRWA had drilled one Wilcox well and the rig was moving to a second locations on the Wells Ranch; that would provide much needed data on the aquifer in that area. Region L /GMA- 13 /RWA Region L. Vacancies on the Region L Board are scheduled to be filled August 4, 2016. GA—L4- 3: The comment period for the updated DFCs for GMA -13 remains open until August 1, 2016. 2of6 SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM rcf ➢ CVLGC The next board meeting was scheduled for July 28, 2016 at 9:OOAM in Cibolo. The fifth order of business was SSLGC Parks & Recreation Master Plan Presentation — David Baldwin Inc. Mr. Baldwin provided the following for review. The proposed lake would be 18 -20 feet deep at its deepest and it would be approximately 42 acres. A cost estimate was included in the board packet, but the total estimate for phase 1 was $6.6 million. The sixth order of business was Water Level Measurements — Bill Klemt Mr. Klemt summarized his water level report as follows: Carrizo water levels are generally up in western Gonzales County due to the rains in late fall 2015 and spring 2016. During the period September 2015 — June 2016 Carrizo water levels in the SSLGC Well Field are up ( +22 feet), and the SAWS Well Filed ( +5 feet). Water levels in the Carrizo and Queen City in the vicinity of the SSLGC Well Field indicate Carrizo water levels are about 40 feet below that of the Queen City. However, to date, there is no indication of a hydraulic connection between the Carrizo and Queen City aquifers. The seventh order of business was Approval of Management Services Agreement /City of Seguin — Alan Cpckerell, General Manager ➢ resolution # SSLGC R16 -11 Secretary Jacobs made a motion to approve the MSA between SSLGC and the City of Seguin for FY2016 -2017. Assistant Secretary Pees seconded the motion. Upon a vote being called, the motion carried by unanimous decision. 3 of 6 SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM ref The eighth order of business was Approval of Management Services Agreement /City of Schertz_— Alan Cockerell, General Manager ➢ Resolution # SSLGC R16 -12 Mr. Cockerell noted that there was a line that was to be taken off from page # 1, last paragraph ("and the SSLGC General Manager. ") Vice - President Dwyer made a motion to approve the MSA between SSLGC and the City of Schertz for FY2016 -2017 as amended. Treasurer Hunt seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The ninth order of business was —Approval of Management rvices reement SSLGC & L C — Alan Cockerell, General Manage ➢ Resolution # SSLGC R16- Assistant Secretary Pees made a motion to approve the MSA between SSLGC and CVLGC for FY2016 -2017. Vice - President Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The tenth order of business was A prove Task Order # 24 —SSLGC CIP Update -_ lc }l3n Winkler Walker Partners & Alan C ckerell General Manage ➢ Task Order _# 24 Task Order # 24 was for Mr. Winkler to provide for the five year update to the SSLGC CIP and it would be funded by the Impact Fee Fund. Vice - President Dwyer made a motion to approve Task Order # 24 and approve funding from the Impact Fee fund. Treasurer Hunt seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The eleventh order of business was SWIFT Funding (Guadalupe Project& Parallel Pipeline — Alan Cockerell, General Manager & Duane Westerman & Mark McLiney, SAMCO Mr. Cockerell advised that this item would be discussed in Executive Session. The twelfth order of business was SSLGC Construction Update — John Winkler, Walker Partners & Alan Cockerell Mr. Cockerell advised of the following: • Chlorine Dioxide (Task Order # 16) Winkler nkler pulled the filter heads in May 2016 and the process appeared to be successful. The operators have dropped the chlorine dioxide feed rate to 0.4 mg /L to see if it would help with the smell concerns from a few of the Schertz residents. To date there were no more recent complaints • Cathodic Protect (Task Order # 17) There were 6 deep bore holes completed for the rectifier systems (all of those were needed for the 42 ") and are awaiting installation of power to start up. There are 35 of the initial 4,000 joints awaiting installation of power to start up. They were all located under roads. SSLGC was working to finish them over the next 3 -4 weeks. Metal Tank Rehabilitation (Task Order # 20) The interior and exterior of the tank at the WTP had been sandblasted and primed. The contractor anticipated completing the final coats in early August and then moving to the BPS tank. • WTP1 Upgrades (Task Order # 21) 4of6 SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM rcf Roblesl has completed the demo and SSLGC Staff would continue to work with the architect on the design. • High Service Pump Controller Upgrade (Task Order # 22) The new starters were scheduled to be delivered in August and the demolition of existing starters would commence at that time. r SSLGC Park & Recreation Master Plan (Task Order # 19) David Baldwin provided an updated plan at the meeting (Agenda Item # 5). The thirteenth order of business was Cibolo Relocation of the 36 inch Pipeline -- John Winkler Walker Partners & Alan Cockerell, General Manager Mr. Cockerell noted that the latest conversation with Cibolo indicated that they may be interested in contracting with SSLGC for Guadalupe project water in the future. They were not willing to enter into a wholesale water contract with delivery beginning in the next couple of years, but would consider a delayed start in the future, with payment for some of the costs in the interim. The fourteenth order of business was Legislative Update — Billy Phenix, Legislative Consultant & Alan Cockerell, General Manager SSLGC provided testimony at the House Natural Resources Committee hearing on June 1, 2016 and the Senate Committee on Agriculture, Water & Rural Affairs on June 20, 2016. SSLGC had been invited to provide testimony at another hearing by the Senate Committee on Agriculture, Water & Rural Affairs on July 25, 2016. Counselor Lindner requested this 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 was Guadalupe Project Wholesale Water Contracts & Well Permit(s) — .Patrick Lindner, General Coun el & Alan Cockerell, General Manager Executive Session Recommended President Greenwald deferred item sixteen to Executive Session. The seventeenth order of business was Gonzales County & Guadalupe County Carrizo and ilc x Water Leases and- PropeM Purchases — Alan Cockerell, General Mana er Executive Session Recommended President Greenwald deferred item seventeen to Executive Session. The eighteenth order of business was Executive Session called under Chapter 551 Governnaent Code, Section 551-0-71, to seek the advice of its attorney on legal matters an Section 5511172 for deliberations regarding real estate President Greenwald closed General Session at 3:03PM. Executive Session was held from 3:153PM to 3:56PM. The nineteenth order of business was Consider and Take Action as Result of Agenda Item Number Fifteen President Greenwald reopened General Session at 3:58PM. 5 of 6 SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM rcf 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 rder of business was Consideration and /or Action on questions and possible items to be placed on the next agenda i The next board meeting was scheduled for Thursday, August 18, 2016, in SSLGC Administrative Building at 1:30PM. Chlorine Dioxide — Permanent System — Direction from Board The twenM- S.rst order of business was Adjournment President Greenwald declared the meeting adjourned at 3:58PM. MINUTES APPROVED THIS 21st DAY OF DULY, 2016, T. "Jak aco[i ty OR 6of6 Bob Pees, Assistant Secretary SSLGC MINUTES 07/21/2016 (6 Pages) SIGNED ORIGINAL(S): 1 Date /Time Printed: 8/12/2016 4:15 PM of