SSLGC 05-15-2008
MINUTES OF THE
SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS ~
COUl'lTY OF GUADALUPE i
SCHERTZ-SEGUIN LOCAL ~
GOVERNMENT CORPORATION i
On this the 15th day of May 2008, the Schertz-Seguin Local Government Corporation
convened at 1:36 p.m. in the City of Schertz Council Chambers located at 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following directors being present and in
attendance:
Sydney Bauer
Ken Greenwald
Robin Dwyer
Jim Wolverton
Patricia Ramirez
Hal Baldwin
and the following director being absent:
Betty Ann Matthies
President
Vice-President
Secretary.
Treasurer
Director
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:
Alan Cockerell
Doug Faseler
Susan Caddell
Don Taylor
Johnny Bierschwale
John Schraub
Dan Drugan
Georgia Hanks
Crockett Camp
Bill Klemt
John Winkler
Tom Caponi
Patrick Lindner
General Manager
Seguin City Manager
Seguin Director of Finance
Schertz City Manager
Assistant City Manager of Schertz
Seguin Water Utility Manager
Water Systems Manager
Administrative Assistant
ConsultantIProject Manager
Hydrologist Consultant
Consultant (LAN)
Consultant (Bury+Partners)
Counsel (Davidson Be Troilo)
The first order of business was the callin~ of the meetine to order.
President Sydney Bauer opened the meeting at 1 :36 p.m.
The second order of business was 'Public comment.
Mr. Robert Brockman, a Schertz resident, addressed the Board during public comment.
He asked if the Corporation owns or operates a fire hydrant at its Nixon Treatment Plant
and if so, is it black? According to Water Systems Manager Dan Drugan, a fire hydrant is
located along the Corporation's pipeline and it is not black.
The third order of business was aDoroval of the minutes for the board meetin2 held
00 Aori124~ 2008.
Treasurer Jim Wolverton made a motion to approve the minutes as written. Vice-
President Ken Greenwald seconded the motion. Upon a vote being called, the
motion carried by unanimous decision.
The fourth order of business was oresentation of the General Mana2er's Reoort-
Alan Cockerell~ General Mana2er.
Mr. Cockerell's written report was included in the board agenda packets. He updated and
highlighted the following items in his report:
. Gonzales County Underground Water Conservation District (GCUWCD). Mr.
Cockerell handed out the agenda for GCUWCD's May 13,2008 meeting along
with election results for new directors. The only contested position was in
Precinct 4 and Mr. Link Benson won the election. According to GCUWCD's by-
laws, the directors will be sworn in at the next meeting on June 10, 2008, and
officers will be elected.
Mr. Cockerell reported that Caldwell County voters did approve the annexation of
a large area of Caldwell County into the GCUWCD.
. Region L. The agenda for the SCTRWPG meeting held May 1, 2008, and
information regarding replacement of Region L members were included in the
board agenda packets. Ten board member positions will become open in August
2008. If anyone is interested in applying for a position, Mr. Cockerell will be
available to help with the process.
President Bauer reconvened to Agenda Item #2, Public Comment.
President Bauer expressed appreciation to GCUWCD General Manager Barry Miller on
behalf of the Board for Mr. Miller's help in the progress of SSLGC since its inception.
Mr. Miller resigned his position as general manager of GCUWCD in order to pursue
other opportunities.
The fifth order of business was presentation of the Treasurer's Reoort - Susan
Caddell. Finance Director & Alan Cockerell~ General Mana2er.
Financial Statements, Investment Report and Management Services Agreement were
included in the board agenda packets. The reports were prepared by Director of Finance
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Susan Caddell and reviewed by General Manager Alan Cockerell. Mr. Cockerell
recommended approval of the reports.
a. Financial Statements for six months ending March 31, 2008.
. Revenues, Expenses and Changes in Net Assets - Operating Fund (combined
statements)
· $391,032 (net income)
Includes water sales billed for the first debt service payment made
February 1, 2008, as well as, the expenditure for the debt service payment.
. Revenues, Expenses and Changes in Net Assets - Operating Fund
· $144,831 (net income)
Universal City has not purchased water this year. Springs Hill
exceeded its maximum purchase amount of 15,500,000 during the month of
March.
. Revenues, Expenses and Changes in Net Assets - Construction Fund
· -$685,212 (loss)
. Revenues, Expenses and Changes in Net Assets - Interest & Sinking
· $696,055
Includes I & S rates paid by participating entities for the first two quarters and
first bond payment of the year in the amount of $2,089,536.
. Revenues, Expenses and Changes in Net Assets - Repair & Replacement
Fund
· $123,506
. Revenues, Expenses and Change in Net Assets - Future Development Fund
· $46,874
. Revenues, Expenses and Change in Net Assets - Impact Fund
· $64,977
. Revenues, Expenses and Change in Net Assets - Operating Fund
(comparative stateinent)
· $82,081 (net income)
. Working Capital Trend Chart
· -$1,798,701 (working capital)
First bond payment made February 1, 2008.
b. Investment Report for the quarter ending March 31, 2008.
Ms. Caddell presented the Investment Report for January 1, 2008, through March 31,
2008. Interest earnings are down from the previous quarter by approximately $30,000.
Average interest rates are down approximately 1.2 percent for the quarter.
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c. Reimbursement to the City of Seguin in accordance with the Management
Services Agreement for the quarter ending March 31,2008.
Ms. Caddell presented the expenditure information for the quarter January 1, 2008,
through March 31, 2008. The total amount of reimbursement requested by the City of
Seguin for the second quarter of 2008 is $615,161.
Secretary Robin Dwyer made a motion to authorize reimbursement to the City of
Seguin in the amount of 5615,161 in accordance with the Management Services
Agreement. Vice-President Ken Greenwald seconded the motion. Upon a vote
being called, the motion carried by unanimous decision.
The sixth order of business was ap~roval of Master A~reement and associated Work
Authorizations (#1~ #2 & #3) between SSLGC and Lockwood~ Andrews & Newnam~
Incoroorated tLAN) - John Winlder~ PE and Alan Cockerell. General Manfleer.
A proposed Master Agreement and three Work Authorizations presented by John
Winkler, PE, for professional engineering setvices by LAN were included in the board
agenda packets. Mr. Cockerell stated that staff and legal counsel for the Corporation
have reviewed the Master Agreement and associated Work Authorizations #1, #2 and #3
and request authorization from the Board for him to execute the documents. President
Bauer requested that the Master Agreement be approved separate from the Work
Authorizations as it is the basis for future actions or work orders.
Secretary Dwyer requested clarification of Paragraph 8.2, Reuse of Documents, from Mr.
Wmkler. Mr. Wmkler explained that Paragraph 8.2 declares if the Corporation reuses
documents in the.future and LAN is not involved in the project, LAN would not be held
liable for problems which may occur. Counsel Patrick Lindner added that he and Mr.
Winkler had already discussed the issue and he did not require any changes in the
paragraph because it is a ''Hold Harmless" statement and as it is written the Corporation
has the right to reuse any of the documents.
Treasurer Wolverton made a motion to 'enter into a Master Agreement with
Lockwood, Andrews & Newnam, Incorporated. Director Pat Ramb"ez seconded the
motion. Upon a vote being caned, the motion carried by unanimous decision.
For the benefit of the Board, Mr. Cockerell reviewed Work Authorizations #1, #2 and #3
as listed below:
. #1 - Gonzales Well Field Expansion (wells #9 through #12) - $585,000
. #2 - Gonzales Water Treatment Plant Improvements - $154,000
. #3 - Ground Storage Tank Expansions - $272,000
Secretary Dwyer expressed concern regarding the Corporation entering into the
authorizations before well permits have been requested or received. After discussion
regarding the process and change of terminology in the documents, most of the board
members agreed the work authorizations were necessary before permit application. Mr.
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Winkler added that he works closely with General Manager Cockerell, and only after
approval of each phase does his company go forward with the next phase of the project.
Treasurer Wolverton made a motion to approve Work Authorization #1 with
Lockwood, Andrews & Newnam, Incorporated, in the lump sum of 5585,000. Vice-
President Greenwald seconded the motion. Upon a vote being called, the motion
carried by majority vote. Secretary Dwyer voted against the mption.
General Manager Cockerell referred to Work Authorization #2 and reported that in
summary, it was a project for operational improvements referenced in the Master Plan
which includes four filters at the treatment plant. He requested approval for Work
Authorization #2 in the amount of $154,000.
Trea.surer Wolverton JDade a motion to approve Work Authorization #2 with
Lockwood, Andrews & Newnam, Incorporated, in the amount of 5154,000. Director
Ramirez seconded the motion. Upon a vote being called, the motion carried by
unanimous decision.
General Manager Cockerell referred to Work Authorization #3 and reported it was for
engineering included in the Master Plan to constrnct water storage improvements at the
Gonzales Water Treatment Plant and Booster Pump Station. He added that one change
would be made to Work Authorization #3. A six million gallon ground storage tank
would be installed at the Booster Pump Station instead of a four million gallon ground
storage tank listed in the document.
Treasurer Wolverton made a motion to enter into a contract, Work Authorization
#3, with Lockwood, Andrews & Newnam, Incorporated, in the amount of 5272,000.
Before the motion was seconded Secretary Dwyer called attention to the scope of
professional services, Exhibit A, page 1 of 3, for Work Authorization #2 and Work
Authorization #3. The data was the same in each document.
After discussion and for lack of a second to the motion, President Bauer elected to forgo
Work Authorization #3 until the June 26, 2008 board meeting.
The seventh order of business was Gonzales Couutv WTP Imorovement Proiect -
Tom Caooni. Burv+Partners & Alan Cockerell. General Mana2er.
General Manager Cockerell gave an overview of the status of the Water Treatment Plant
Improvement Project which included filter media replacement, rate of flow controllers
and the lime slurry tan1e The information was included in his Manager's Report. He
added that as of May 16, 2008, all eight filters will be back in service.
The eie:hth order of business was Guadaluoe Countv EXDansion Proiect - Alan
CockereU.General~anae:er.
President Bauer deferred Agenda Item #8 to Executive Session.
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The ninth order of business was Gonzales County Exoansion Proiect - Alan
Cockerell~ General Mana2er.
. Resolution authorizing the filing of applications for new well permits in Gonzales
County
President Bauer deferred Agenda Item #9 to Executive Session.
The tenth order of business was oresentation of Consultant Report - Crockett
Camo~ Consultant.
President Bauer deferred Agenda Item #10 to Executive Session.
Mayor Hal Baldwin left the meeting at 2:20 p.m.
The eleventh order of business was oresentation of Consultant Report - Bill Klemt~
Hvdrolo2ist Consultant.
President Bauer deferred Agenda Item #11 to Executive Session.
President Bauer closed General Session at 2:28p.m.
The twelfth order of business was Executive Session called under Chaoter 551
Government Code;, Subsection 551.071~ to seek the advice of its attornev on le2al
matters relatin2 to the Board of Director's ri,hts and liabilities under certain
contracts and Section 551.072. to deliberate the purchase of and/or sale of certain
,
real estate.
Executive Session Was' heldfrom 2:42 p.m. to 3:25p.m.
The thirteenth order of business was to consider and take action asa result of
A.2enda Item #12.
President Bauer opened General Session at 3:26p.m.
As a result of Executive Session:
Agenda Item 9 - Gonzales County Expansion Project
. Resolution authorizing the filing of applications for new well permits in GOnzales
County.
Secretary Dwyer made a motion to adopt Resolution #SSLGC ROs..Ol to authorize
the fIling of applications for new well permits in Gonzales County. Treasurer
Wolverton seconded the motion. Upon a vote being called, the motion passed by
unanimous decision. '
No action was taken regarding Agenda Item 8 - Guadalupe Guunty Expansion Project.
Agenda Item 10 - Presentation of Consultant Crockett Camp's Report, or Agenda Item
# 11 - Presentation of Consultant Bill Klemt's Report.
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The fourteenth order of business was additional Board of Directors discussion
and/or comments.
Discussion to determine the date for the next board meeting was held. The date was
changed from June 19, 2008, to June 26, 2008.
No additional new discussion and/or comments were discussed.
The fifteenth order of business was adjournment.
President Bauer declared the meeting adjourned at 3 :29 p.m.
The next regular meeting was scheduled June 26, 2008 in Seguin.
MINUTES APPROVED THIS 2fe,M
2008.
DAY OF ~
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