APPROVED 02-16-2017 MINUTESMINUTES 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 February, 2017 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:
Robin Dwyer President
Andrew Hunt Treasurer
David Reiley
Mayor Keil
Secretary
Ex- Officio
The following members were absent:
Bob Pees Assistant Secretary
T. "Jake" Jacobs Secretary
Bert Crawford 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
Susan Caddell
Doug Faseler
Dudley Wait
Jim Hooks
Patrick Lindner
Steven Siebert
Humberto Ramos
John Winkler
Crockett Camp
Bill Klemt
Johnny Bierschwale
Emery Gallagher
Alan Cockerell
Amber Briggs
Angie Kleinschmidt
Assistant City Manager (City of Seguin)
Director of Finance (City of Seguin)
City Manager (City of Seguin)
Executive Director of Operations (City of Schertz)
Public Works (City of Schertz)
General Counsel (Davidson, Troilo, Ream & Garza)
San Antonio Water System (SAWS)
Canyon Regional
Consultant (Walker Partners)
Consultant
Consultant /Hydrologist
Citizen (City of Schertz)
Water Utility Manager (City of Seguin)
General Manager (SSLGC)
Assistant General Manager (SSLGC)
Office Administrator (SSLGC)
The first order of business was to Call the Meeting to Order
President Dwyer called the meeting to order at 1:40 PM
The second order of business was Public Comment
Mayor Keil announced the resignation of Bob Pees. Mayor Keil noted that the City of Seguin would
work to fill the position of Mr. Pees.
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There were no public comments.
The third order of business was the Approval of Minutes for the meeting held January 19, 2017.
Secretary Reiley made a motion to approve the January 19, 2017 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 Mana er's Repo rt —Alan
Cockerell, General Manager
Mr. Cockerell's written report was included in the board packet. Mr. Cockerell also announced the
relaunch of City of Seguin's website. Mr. Cockerell noted that Ms. Kleinschmidt would act as
administrator for the SSLGC site:
• Water Production
Seasonal pumping and monthly water sales charts were included in the board packets. Water production
for the month of January was 63.2% of the Gonzales County Underground Water Conservation
District's (GCUWCD) monthly allowable.
• GCUWCD
MonLb4 rl!Iee in
The monthly meeting was held February 14, 2017; Mr. Cockerell attended. A copy of the agenda was
included in the board packet.
• GCGCD
Montfil ry 1!Ieeia+i
The monthly meeting was held February 9, 2017; Ms. Briggs attended. A copy of the agenda was
included in the board packet. Also included in the board packet was GCGCD Winter Newsletter.
• Region L /GMA- 13 /RWA
lid urrt rL.
The quarterly meeting was held February 2, 2017; Mr. Cockerell attended. A copy of the agenda was
included in the board packet.
• Operations Report
Mr. Cockerell went over the operations report that was included in the board packet:
0 CVLGC
The monthly meeting was held January 26, 2017 in Schertz. A copy of the agenda was included in the
board packet. 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 December 31, 2016
Included in the board packet were the financial reports for the end of the first quarter, December 31,
2016. 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 $3,499,384.68. The second column
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was for the balance of the SWIFT funds. Mrs. Caddell noted that the corporation was initially given
$350,000 with the issuance of the SWIFT bonds. Also noted was that the corporation will receive a
portion of the remainder of the bond funds once the environmental /archaeological is complete. The
third column was for the Interest and Sinking Fund. The cash and investment balance in this fund is
$1,782,216.21 with receivables of $1,912,775.14. The fourth column was for the Repair and
Replacement Fund. The cash and investment balance is now $6,846,289.01. The fifth column was for
the Future Development Fund. The cash and investment balance is $2,021,285.77. The sixth column
was for the Impact Fund. The cash and investment balance in this fund is $4,081,453.23. 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 $1,287,115.42. The
eighth column is the 2010 Bond Fund. The cash and investment balance in this fund is $400,363.68.
Mrs. Caddell advised that we still have $254,002.91 in outstanding purchase orders for this fund. The
ninth column was for the Rate Stabilization Fund. This fund has been established to provide funds in
order to prepare for volatile periods, which can greatly affect the rates the customers pay.
Mrs. Caddell reviewed the income statement for the SSLGC funds. The first column was the Operating
Fund. The net income before transfers is $450,349.24. After the budgeted transfers to the Repair and
Replacement Fund and the Future Development Fund, the net income is $50,349.24. The second
column was income statement for the SWIFT funds. The only expenditures are for legal services in
relation to the bond funds. The third column was I &S Fund. No bond payments have been made yet,
so the only expense you will find is that for fiscal agent fees. The fourth column is for the Repair and
Replacement Fund. The expenditure for Improvements other than Buildings includes $109,715.32 for
the cathodic protection project and $70,917.06 for the tank rehabilitation project. The fifth column is
'the Future Development Fund. The expenditure for $2,198.88 is for preliminary expenses in regards
to the SWIFT funding. The expenditure for $38,745.00 is the remaining funds from the 2015 Bond
Funds transferred to the Future Development Fund for the chlorine dioxide project. The sixth column
is the Impact Fund. The expenditure of $1,400 is for the CIP update. 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. Finally, the ninth column is interest
earnings in the Rate Stabilization Fund. The total column indicates net income of $3,234,461.11.
As indicated earlier, the reports following the SSLGC Fund reports are those for the SAWS I &S Fund.
Also included in the board packet was the Comparative Income Statement for the Operating Fund
towards the back of the report. Revenue has decreased by $746,286.27. This is largely due to the
reduction in sales to SAWS. In addition, consumption for the Cities of Schertz and Seguin has
decreased by 89,181,000 gallons. Expenditures have decreased by $355,082.50, with the largest being
in utilities services of $169,148.09. Our net income before transfers decreased from last year by
$391,203.77.
Finally, the working capital trend chart was enclosed. Working capital has increased since September
30, 2016, by $3,281,728. This usually occurs the quarter prior to the bond payments from the
contributions from the participants for these payments.
Treasurer Hunt made a motion to approve SSLGC'S financial statements for the quarter ended
December 31, 2016. Secretary Reiley seconded. Upon a vote being called the motion carried by
unanimous decision.
b. Investment report for the quarter ending December 31, 2016
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Mrs. Caddell presented the Investment Report for October 1, 2016 through December 31, 2016.
Interest earnings for the quarter ended December 31, 2016 were $37,824
Treasurer Hunt made a motion to approve SSLGC'S investment report for the quarter ended
December 31, 2016. Secretary Reiley 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 December 31, 2016
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 October 1, 2016 through December 31,
2016, as indicated in the first column on the report, are $1,885,296.87. The second column was the
same as the first as this was the first quarter of the fiscal year. All accounts are currently under budget.
According to the Management Services Agreement between the SSLGC and the City of Seguin, the City
of Seguin was requesting reimbursement for the expenditures for the first quarter of fiscal year 2017
for $1,885,296.87.
Treasurer Hunt made a motion to approve SSLGC'S investment report for the quarter ended
December 31, 2016. Secretary Reiley seconded. Upon a vote being called the motion carried by
unanimous decision.
The sixth order of business was Water Level Measurements — Bill Klemt
Bill Klemt has provided a water level measurement report based on the latest measurements
The seventh order of business was Approval of Caustic Soda price increase with DPC Industries
— Alan Cockerell, General Manager
➢ RESOLUTION #SSLGC #R17 -01
Mr. Cockerell advised that supplier, DPC Industries requested a price increase prior to their year
anniversary of $0.03 a dry pound. Mr. Cockerell noted that this increase was due to consolidation in
the industry, reduction of imports and the increase of exports.
President Dwyer made a motion to approve Resolution #SSLGC R17 -01 Price Increase of
Caustic Soda with DPC Industries. Treasurer Hunt seconded. Upon a vote being called the
motion carried by unanimous decision.
The eighth order of business was SSLGC Construction Update -- ohn Winkler Walker Partners
& Alan Cockerell, General Manager
Executive Session Recommended
Counselor Lindner advised that this item to be discussed in Executive Session.
President Dwyer deferred item eight to Executive Session
The ninth order of business was Parallel Pipeline Project Update — An bet Brigp, Assistant
General Manager & Alan Cockerell, General Manager
Executive Session Recommended
Counselor Lindner advised that this item to be discussed in Executive Session.
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President Dwyer deferred item nine to Executive Session.
The tenth order of business was Legislative Update —Alan Cockerell, General Manager
Mr. Cockerell spoke on current legislative activity. Mr. Cockerell announced that Representative Lyle
Larson was named Chairman of the House National Resource Committee.
The eleventh order of business Post Oak Clean Green, Inc. (Landfill) — Patrick Lindner,
General Counsel & John Winkler Walker Partners & Alan Cockerel General Manage
No action requested /No action taken
The twelfth order of business was Wholesale Water Contract(s) & Well Permits — Patrick
Lidner, General Counsel & Alan Cockerell, General Manager
No action requested /No action taken
The thirteenth order of business was Gonzales Coun & Guadalupe Counly Carrizo and
Wilcox Water Leases and Pronegy Purchases — Alan Cockerell, General Manager
No action requested /No action taken
The fourteenth order of business was Executive Session tailed under Chapter 551 Government
Code, Section 551.071, to seek the advice of its attorney on legal ratter , and Section 551.072,
for Deliberations Regarding Real Estate
President Dwyer closed General Session at 2:25 PM.
Executive Session was held from 2:35 PM to 3:09 PM.
The fifteenth order of business was Consider and Take Action as Result of Agenda Item
Number Fourteen
President Dwyer reopened General Session at 3:11 PM.
Agenda Item #8
No action requested /No action taken
Agenda Item #9
No action requested /No action taken
The sixteenth 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 Thursday, March 16, 2017, in SSLGC
Administrative Building at 1:30PM.
➢ Annual Audit Review — Armstrong, Vaughan & Associates
The eighteenth order of business was Adjournment
President Dwyer declared the meeting adjourned at 3:15 PM.
MINUTES APPROVED THIS � DAY OF a4 C 'ZLA f
David Reiley, Secretary
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