11-17-2016MINUTES OF THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS
COUNTY OF GUADALUPE
SCHERTZ /SEGUIN LOCAL
GOVERNMENT CORPORATION
On this the 17`x' day of November, 2016 the Schertz /Seguin Local Government Corporation (SSLGC)
convened at 1:32 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
T. "Jake" Jacobs
Bob Pees
Andrew Hunt
Mayor Keil
Jim Fowler
There were no members absent:
Vice - President
Secretary
Assistant Secretary
Treasurer
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:
Rick Cortez
Assistant City Manager (City of Seguin)
Dudley Wait
Executive Director of Operations (City of Schertz)
Jim Hooks
Public Works (City of Schertz)
Susan Caddell
Director of Finance (city of Seguin)
Patrick Lindner
General Counsel (Davidson, Troilo, Ream & Garza)
Steven Siebert
San Antonio Water System (SAWS)
Felix Arambula
San Antonio Water System (SAWS)
John Winkler
Consultant (Walker Partners)
Crockett Camp
Consultant
Bill Klemt
Consultant /Hydrologist
Billy Phenix
Legislative Consultant
Emery Gallagher
Water Utility Manager (City of Seguin)
Alan Cockerell
General Manager (SSLGC)
Amber Briggs
Assistant General Manager (SSLGC)
Angie Kleinschmidt
Office Administrator (SSLGC)
Johnny Bierschwale
Citizen (City of Schertz)
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
Mr. Greenwald awarded Mr. Fowler's years of service as Ex Officio with a plaque.
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The third order of business was the Approval of Minutes for the meetings held Se tember 15
2016
Vice - President Dwyer made a motion to approve the October 20, 2016 meeting minutes.
Treasurer Hunt 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
Mr. Cockerell's written report was included in the board packet. He added the following to his written
report:
• Water Production
Seasonal pumping and monthly water sales charts were included in the board packets. Water production
for the month of October was 52.6% of the Gonzales County Underground Water Conservation
District's (GCUWCD) monthly allowable.
• GCUWCD
ktonthIj IVUceft
The monthly meeting was held November 16, 2016; Ms. Briggs attended. A copy of the agenda was
included in the board packet. All items on the consent agenda passed.
• GCGCD
1Ylontl�ly &Ieefieg
The meeting was held November 11, 2016; Mr. Cockerell attended. A copy of the agenda was included
in the board packet.
• Region L /GMA- 13 /RWA
Re „_imL
Alan attended this meeting and a copy of the agenda is included in your packet. The county
representative was filled by Judge Pat Calhoun of Gohad County.
GAL4 -13
The next GMA -13 meeting is scheduled for November 21”
r CVLGC
The next CVLGC Board Meeting is scheduled for December 8, 2016. Work continues on executing
water leases with landowners.
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 September 30, 2016
Included in the board packet were the financial reports for the year ended September 30, 2016. These.
These statements are prior to any possible audit entries proposed by our auditors and do not include
depreciation. The first three pages are the balance sheets for all the SSLGC funds. The two pages following
the balance sheet are the income statements 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 $3,777,048.70. The second column is
for the balance ofthe bonds thatwas issued for the purchase ofthe Booth property. There is a balance of
cash and inves tments of$ 3 8,7 86.22. The third column is for the Interest and Sinking Fund. Thecashand
investment balance in this fund is $877,050.22. The fourth column is for the Repair and Replacement
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Fund. The cash and investment balance is now $6,856,838.39. The fifth column is for the Future
Development Fund. The cash and investment balance is $1,917,177.84. The sixth column is for the Impact
Fund. The cash andinvestment balance in this fund is $3,870,827.58. 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 $1,286,349.08. The eighth column is the
2010 Bond Fund. The cash and investment balance in this fund is $434,007.68. We still have
$282,511.82 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 $2,314,181.42. After the budgeted transfers to the Repair and
Replacement Fund and the Future Development Fund, the net income is $82,904.42. At the board
meetingin May, the boardvoted to approve an additional transfer of $400,000 to the Repair and Replacement
Fund in accordance with our Fund Balance Policy. The second column is the income statement for the bond
proceeds and expenditures from the bonds issuedinJanuary of2015. The third column is I &S Fund. Total
bondpayments made this year were $5,019,437.50. The fourth column is for the Repair and Replacement
Fund. The expenditure for Improvements other than Buildings is for the cathodic protection
project and for engineering services for tank rehabilitation. The amount for Heavy Equipment is
for the purchase of the vacuum truck. The fifth column is the Future Development Fund. The
expenditure for professional services is for the parks master plan and legal fees for the SWIFT
funding projects. The legal fees for the SWIFT funding projects will be reimbursed when we
receive the funds. The expenditure for $661,412.00 was for the purchase of the Parker property.
The sixth column is the Impact Fund. For the year, we have received a total of $873,732 in impact
fees. The eighth column is for the 2010 Bond Fund. I have provided a report, at the back, with
an accounting of the expenditures of the bond funds since we received the proceeds at the board
meeting. The total column indicates net loss of $23,652.13.
As indicated earlier, the reports following the SSLGC Fund reports are those for the SAWS
Funds.
You will find the Comparative Income Statement for the Operating Fund towards the back of
the report. Revenue has decreased by $1,570,151.23. This is largely due to the reduction in sales
to SAWS. The revenue from the water sales to SAWS has reduced by $1,091,734.97.
Expenditures have decreased by $42,160.63, with the largest decrease being in utilities services of
$233,318.30. Our largest increase in expenditures was in salaries of $113,522.39. Our net income
before transfers decreased from last year by $1,527,990.60.
Finally, you will find the working capital trend chart. Working capital has decreased since June
30, 2016, by $971,433. This trend is due to the fact we made our final bond payment for the fiscal
year.
Assistant Secretary Pees made a motion to approve SSLGC'S financial statements for the
quarter ended September 30, 2016. Secretary Jacobs seconded. Upon a vote being called the
motion carried by unanimous decision.
b. Investment report for the quarter ending September 30, 2016
Mrs. Caddell presented the Investment Report for July 1, 2016 through September 30, 2016. Interest
earnings for the quarter ended September 30, 2016 were $29,927
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Secretary Jacobs made a motion to approve SSLGC'S investment report for the quarter ended
September 30, 2016. Vice President Dwyer seconded. 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 September 30, 2016
Included in the board packet was a list of expenditures from the Operations and Maintenance budget
which is paid by the City of Seguin. The expenditures for July 1, 2016 through September 30, 2016, as
indicated in the first column on the report, were $2,131,832.66. The second column is the expenditures
for the fiscal year. All categories are currently under budget.
In accordance with the MSA between SSLGC and the City of Seguin, the City of Seguin is requested
reimbursement for the expenditures for the fourth quarter of fiscal year 2016 in the amount of
$2,131,832.66.
Vice President Dwyer made a motion to approve SSLGC'S investment report for the quarter
ended September 30, 2016. Secretary Jacobs seconded. Upon a vote being called the motion
carried by unanimous decision.
The sixth order of business approve calendar of Board. Meetings for 2017 — Alan.
Cockerell, General Manager
Vice President Dwyer made a motion to approve 2017 Board Meeting Calendar. Assistant
Secretary Pees seconded. Upon a vote being called the motion carried by unanimous decision.
The seventh order of business was discussion and action authorizing the General Manager to
enter into contracts for Right of Way Acquisition Services — Amber Brigs, Assistant General
Manager & Alan Cockerell, General Manager
Vice President Dwyer made a motion to approve authorizing the General Manager to enter into
contracts for the Right of Way Acquisition Services. Secretary Jacobs seconded. Upon a vote
being called the motion carried by unanimous decision.
The eighth order of lousiness was discussion on recycling backwash _ John Winkler, Walker
Partners & Alan Cockerell, General Manager
A request has been made to further investigate the recycling of backwash water. In the past two years,
243 million gallons (747 ac -ft) were discharged comprising 1.6% of total production. Potential options
for beneficial use will be discussed at the meeting. Mr. Winkler explained financial capacity and the
board suggested SSLGC get with TCEQ for recommendations
The ninth order of business was Approve Resolution SSLGC R16 -21: Contractor for Chemical
A dition and Plant Improvements for the Water Treatment Plant in Mixon. T xas —John
Winkler, Walker Partners & Alan Cockerell, General Manager
John Winkler provided an analysis and recommendation for the bids that were received. A bid
tabulation is included in board packet.
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Vice President Dwyer made a motion to approve Resolution SSLGC R16 -21: Contractor for
Chemical Addition and Plant Improvements for the Water Treatment Plant in Nixon, Texas.
Assistant Secretary Pees seconded. Upon a vote being called the motion carried by unanimous
decision.
The tenth order of business was Approve Task Order #25 — Walker Partners — Cathodic
Protection Phase 2 — John Winkler, Walker Partners & Alan Cockerell, General Manager
John Winkler provided a task order for the cathodic protection project on the 36 inch pipeline from
Seguin to Schertz. This task order will begin the design process for this project.
Treasurer Hunt made a motion to approve Task Order #25 for Cathodic Protections Phase 2 —
Walker Partners. Vice President Dwyer seconded. Upon a vote being called the motion carried
by unanimous decision.
The eleventh order of business was SSLGC Construction Update — John Winkler, Walker
Partners and Alan Cockerell, General Manager
➢ Cathodic Protection Project (TO #17): All deep bed anodes and rectifiers are installed on 42"
section and waiting on power to place them into service. GVEC is in the process of supplying
power to those locations.
➢ Metal Tank Rehabilitation (TO #20): The contractor has been unresponsive to requests for a
start date for the BPS tank. The SSLGC attorney has sent notification to the contractor
requesting immediate action. A copy of the letter is included in your board packet.
➢ WTP1 Upgrades (TO #21): A recommendation will be presented to the board in agenda item
#9
➢ High Service Pump Controller Upgrade (TO #22): Contractor replaced E -stops on four high
service pumps to be compatible with new controllers. All four starters have been replaced and
are in operation. Smith Pump has conducted an analysis of well #4 to determine the cause of
it pulling higher than normal amperage.
The twelfth order of business was Legislative Update — Biliy Phenix, Legislative Consultant
& Alan Cockerell, General Manager
Mr. Phenix provided an update for the meeting on current legislative activity.
The thirteenth order of business was Parallel Pipeline Project — Amber Briggs, Assistant
General Manager & Alan Cockerell, General Manager
No action requested /No action taken
The fourteenth order of business Post Oak Clean Green Inc. Landfill — Patrick Lindner
General Counsel & John Winkler, Walker Partners & Alan Cockerell, General Manager
No action requested /No action taken
The fifteenth order of business was Whole Water Contracts & Well Permit (s) — Patrick Lidner
General Counsel & Alan Cockerell, General Manager
No action requested /No action taken
The sixteenth order of business was Gonzales County & Guadalupe County Carrizoaand Wilcox
Water Leases and Property Purchases — Alan Cockerell, General Manager
No action requested /No action taken
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The seventeenth order of business was Executive Session called under Chapter 551
Government Code, Section 551.071, to seek the advice of its attorney on legal ma_ttera amend
Section 551.072, for Deliberations Regarding Real Estate
President Greenwald closed General Session at 2:28 PM.
Executive Session was held from 2:43 PM to 3:33 PM.
The eighteenth order of business was Consider and Take Action as Result of Agenda Item
Number Twelve
President Greenwald reopened General Session at 3:37PM.
There was no action taken during the Executive Session.
The nineteenth order of business was Consideration and /or Action on Questions and Possible
Items to be Placed on the Next Agenda
There was no action taken.
The twentieth order of business was Adjournment
President Greenwald declared the meeting adjourned at 3:04 PM.
MINUTES APPROVED THIS DAY OF
W,
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Bob Pees, Assistant Secretary
SSLGC MINUTES 11/17/2016 (6 Pages) SIGNED ORIGINAL(S): 1
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