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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 2 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. 3 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. 4 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. 5 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. 6 '. 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 ~ 7 '.