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SSLGC 11-15-2007 MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS ~ COUNTY OF GUADALUPE ~ SCHERTZ-SEGUIN LOCAL ~ GOVERNMENT CORPORATION ~ On this the 15th day of November 2007, the Schertz-Seguin Local Government Corporation convened at 1 :32 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 Jim Wolverton Robin Dwyer Patricia Ramirez Betty Ann Matthies Hal Baldwin Vice-President Secretary Treasurer Director 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 Johnny Bierschwale Susan Caddell John Schraub Dan Drugan Georgia Hanks Crockett Camp Bill Klemt John Winkler Patrick Lindner General Manager Seguin City Manager Schertz Assistant City Manager Seguin Director of Finance Seguin Water Utility Manager Water Systems Manager Administrative Assistant ConsultantlProject Manager Hydrologist Consultant Consultant (Bury+Partners). Counsel (Davidson & Troilo) Tbe first order of business was the callin2: of the meetin~ to order. Vice-President Sydney Bauer opened the meeting at 1 :32 p.m. The second order of business was public comment. Mayor Hal Baldwin introduced Patricia Ramirez who was appointed by the Schertz City Council to the Schertz-Seguin Local Government Corporation board of directors. Ms. 1 Ramirez is a registered professional engineer. She was formerly employed as an engineer with the Texas Department of Transportation. The third order of business was apl'roval of the minutes for the board meetin2 held on October 18. 2007. Treasurer Jim Wolverton made a motion to approve the minutes as written. Secretary Ken Greenwald seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fourth order of busiuess was director appointment - Don TaYlor. City Mana2er. City of Schertz. Mayor Baldwin introduced new Director Patricia Ramirez during Public Comment. The fifth order of business was election of officers - Patrick Lindner. ~al Counsel. Davidson & Troilo. Legal Counsel Patrick Lindner recommended to board members that individuals be nominated and elected to specific offices as vacancies became available. Secretary Wolverton made a motion to nominate Vice-President Svdnev Bauer for president. Director Robin Dwyer seconded the motion. noon a vote bein2 called. the motion oassed by unanimous decision. With the election of Vice-President Bauer as president, the office of vice-president became vacant. Secretarv Wolverton made a motion to nominate Ken Greenwald for vice-oresident. A second to the motion was not made and President Bauer called for other nominations. With Done bein2 made. a vote was caned. The motion Dassed by majority decision of four to one. Director Dwyer voted a2ainst the motion. With the election of Secretary Greenwald as vice-president, the office of secretary became vacant. Secreta" Wolverton made a motion to nominate Robin Dwyer for secretary. President Bauer seconded the motion. noon a vote bein~ called. the motion oassed by unanimous decision. . The office of treasurer held by Jim Wolverton remained the same. Elected SSLGC officers for 2008 - 2010 are as follows: Sydney Bauer President Ken Greenwald Vice-President Robin Dwyer Secretary Jim Wolverton Treasurer 2 The siXth order of business was vresentation of the General Manae:er's Report- Alan Cockerell_ General Manae:er. General Manager Cockerell stated that his report was provided in the board agenda packets. He added the following items which were not included in his report: . Municipality, River Authority and Water District positions for planning group members are available within Region L. SSLGC Counsel Patrick Lindner with Davidson & Troilo is interested in the Municipality position. . A copy of the agenda for the GCUWCD meeting held November 13, 2007, was handed out to board members. GCUWCD has ordered public hearings for the inclusion of part of Caldwell County into GCUWCD. Hearings will be held in Caldwell County on December 6, 2007, and in Gonzales County on December 11, 2007. . A SAWS contested case hearing mediation session will be held November 27, 2007. Counsel Patrick Lindner, Consultant Crockett Camp, Hydrologist Bill Klemt and General Manager Cockerell will attend as delegates to represent SSLGC. ~ A cast iron pump was pulled at well #8 due to water leaking from oil tubing at the wellhead. The pump will be replaced with a stainless steel pump which is expected to be delivered in January or February. The cast iron pump will be repaired and used as an emergency spare. . Mr. Cockerell corrected his written report by stating that six instead of seven of the Corporation's eight wells are currently in service. Oil tubing has been ordered for well #6. When the tubing arrives in two - three weeks a stainless steel pump will be installed at well #6 and it will be put back into service. After discussion, board members agreed another stainless steel pump should be ordered and paid for out of the Repair and Replacement Fund. Secretary Dwyer made a motion for General Manager Cockerell to order a stainless steel pump which will be paid for out of the Repair and Replacement Fund. Vice- President Greenwald seconded the motion. Upon a vote being called, the motion passed by unanimous decision. The seventh order of business was ofT-peak water sales - Alan Cockerell_ General Mana~er. Mr. Cockerell referred toa proposal provided in the board agenda packets which describes a program to increase the use of water during off-peak months and increase revenues to SSLGC. The program would allow existing customers to purchase water from SSLGC in the off-peak season (November to March) at a cost of $2.33 per 1,000 gallons. Water purchased during this period would not count against the customer's yearly allowable 800 acre-feet per year. The customer c~uld use more Carrizo water in 3 the winter months and reserve Edward's rights along with Carrizo allocation for summer peak: usage. Mr. Cockerell stated that Schertz and Seguin city managers and SSLGC staff support the program and requested approval from board members to approach existing customers. If an agreement is made it would initially be presented to the board for approval and continue to be presented for approval on an annual basis. Treasurer Jim Wolverton made a motion to 2:ive the 2:eneral mana2er and city mana2ers authorization to proceed with the pr02ram to solicit existinS! customers for potential added water sales durinS! off-peak months. Vice-President Greenwald seconded the motion. Upon a vote beine called. the motion passed bv unanimous decision. The ei2hth order of business was presentation of the Treasurer's Report - Susan CaddelL Finance Director. a. Financial Statements for the quarter ending September 30, 2007. Ms. Caddell presented the Financial Reports as of September 30, 2007. The reports were included in the board agenda packets. Account balances are as follows: . Combined Statement Revenues, Expenses and Changes in Net Assets · $6,793,933 - Includes $7,500,000 of bond proceeds. . Revenues, Expenses and Changes in Net Assets - Operating Fund · $174,287 - Includes sale of Vickery property. Before the sale of the land and a transfer to the Repair. and Replacement Fund, the Operating Fund had net operating income of $35,954. . Revenues, Expenses and Changes in Net Assets - Construction Fund · $6,527,284 . Revenues, Expenses and Changes in Net Assets - Interest & Sinking Fund · $543,462 - Includes I&S rates paid by participating entities for the year and includes both bond payments. . Revenues, Expenses and Changes in Net Assets - Repair & Replacement Fund · -$314,068 (loss) . Revenues, Expenses and Change in Net Assets - Future Development Fund · -$139,174 (loss) . Revenues, Expenses and Change in Net Assets - Impact Fund · $2,142 For year ended September 2007, revenue has decreased by $72,134 and expenditures have decreased by $222,758 in comparison to year ended September 2006. In 2006 a net loss of $190,915 was shown compared to a net gain in 2007 of $174,287. Expenditures decreased in 2007 due to the large amount of rain and decreases in utilities and chemicals. Working capital has decreased since June 30, 2007, by $1,923,590 due to the use of bond funds and second bond payment for the fourth quarter. 4 Secretary Dwyer made a motion to accept the Treasurer's Report as presented. Treasurer Wolverton seconded the motion. Upon a vote being called, the motion carried by unanimous decision. b. Investment Report for the quarter ending September 30, 2007. Ms. Caddell stated that investment interest rates are declining and are below 5% for the current quarter. Interest earned and accrued this period is $114,548. Vice--President Greenwald made a motion to accept the Investment Report as presented. Treasurer Wolverton seconded the motion. Upon a vote being caDed, the motion carried by unanimous decision. c. Reimbursement to the City of Seguin in accordance with the Management Services Agreement for the quarter ending Septem.ber 30,2007. Ms. Caddell stated that expenditures for July 1,2007, through September 30,2007, total $767,156. The year-to-date expenditures are $2,160,715. Expenditures budgeted for FY2006/2007 were $2,448,226. The Corporation ended FY2006/2007 under budget by $287,511. Total reimbursement due to the City of Seguin for quarter ending September 30, 2007, is $767,156. Treasurer Wolverton made a motion to reimburse $767,156 to the City ofSesmin in accordance with the Mana~ement Services A2reement. Secretary Dwver seconded the motion. U\lon a vote bein2 called, the motion carried by unanimous decision. The ninth order of business was Resolution SSLGC R07-15 to review and aoorove SSLGC's Investment Policv in order to conform to the Public Funds Investment Act, Texas Government Code, Chaoter 2256 - Susan Caddell, Finance Director and Alan Cockerell. General Mana2er. An annual review of the Corporation's Investment Policy is required by the Public Funds Investment Act, Government Code, Chapter 2256. Ms. Caddell stated that no changes had been made since the last review and presently none are recommended. She requested approval from the Board of the Corporation's Investment Policy. Secreta" Dwver made a motion to aporove Resolution SSLGC R07-15 to acceot the Investment Policy as reviewed with no modifications. Vice--President Greenwald seconded the motion.. Uoon a vote bein1! called. the motion oassed bv. unanimous decision. The tenth order of business was Resolution SSLGC R07.16 to review and aoprove SSLGC's BrokerslDealers List - Susan Caddell. Finance Director and Alan Cockerell, General Mana2er. According to SSLGC's Investment Policy, its BrokerslDealers List is required to be reviewed and approved by the board of directors annually. Ms. Caddell stated that one change had been made to the list. The representative from Vining-Sparks has retired and 5 \ a new representative, Michael Smith, has been assigned to SSLGC. The Investment Policy approved by the board of directors during the meeting in progtess will be sent to Mr. Smith with Vining-Sparks for review. He will complete a new certification page and questionnaire. After receipt of these, documents, the Corporation may purchase investments from Vining-Sparks. With that change, Ms. Caddell recommended approval of SSLGC R07-16 to adopt the BrokersfDealers List. President Bauer made a motion to approve Resolution SSLGC R07-16 to adopt the BrokerslDealers List accordinf to SSLGC's Investment Policv with the chao2e of representation for Vinin2...Sparks. Vice-President Greenwald seconded the motion. Upon a vote beinS! caBed. the motion passed bv nnanimous decision. The eleventh order of business. was the contract between SSLGC and Crockett Camp - Crockett Camp. Consultant. " Mr: Camp's contract continJles on a month to month basis as previously agreed upon until a new contract is ready for negotiation. The twelfth order of business was Water Lease Contracts for Guadalupe County- Alan Cockerell. General Mana2er and Patrick Lindner. Le2:al'CounseL Davidson & Troilo. ' President Bauer deferred agenda item # 12 to Executive Session. The thirteenth order of business was Water Lease Contracts for Gonzales Coun~ - Alan CockerelL General Mana2:er and Patrick Lindner. Le2al CounseL Davidson & Trolio. President Bauer deferred agenda item #13 to :axecutive Session. The fourteenth order of business waS the Expansion Proiect in Guadalupe County - ' Alan Cockerell. General Mana2er and John Winkler. Bury+Partners. Mr. Cockerell reported that design activities on the project are presently on hold due to a natural break between the initial design phase and the detailed design phase for construction. The Corporation is presently in the process of securing additional water rights. . The fifteenth order of business was the Expansion Project in.Gonzales County - Alan Cockerell. General Mana2:er and John Winkler.. Bnrv+Partners. At the last SSLGC board meeting, the board of directors approved amendments to the Corporation's initial contract with Bury+Partners for activities which consist of purchasing equipment for filter media, rate of flow controllers and lime slurry tank:. Procurement documents were prepared and due diligence given by Bury+Partners for equipment for each project. Afte,! the documents were reviewed by legal counsel and approved by the general xnanager, they were provided to prospective suppliers for bids. Bid tabulation sheets were provided in the boaid agenda packets. a. Filter Media Replacement - According to the bid tabulation sheet, three bids were received. Safety' and storage issues were discussed. 6 .. ' Bury+Partners and the Corporation recommended that the bid be awarded to Hungerford & Terry, Inc., for $165,910.50. Treasurer Wolverton made a motion to award the contract for filter media reDlacemeni to HUDS!erford & Terrv. Incorporated.. Vice-President Greenwald seconded the motion.. Uoon a. vote OOinS! called. the motion passed by unanimous decision. . . . b. Rate of Flow Controllers.... TCEQ requires that rate of flow controllers be placed in front of all filters. According to the bid tabulation sheet, one bid was received from Tonka Equipment Company. Bury+Partners researched pricing from other companies and Tonka was the least expensive. Tonka manufactured the filters, therefore the rate of' flow controllers will be compatible with the existing valves, pneumatic system and filter control panel. Bury+Partners and the Corporation recommended that the bid be awarded to TonkaEquipment Company for $117,750.00. Secreta" Dwver made a motion to purchase filter control eouipment from Tonka EQuipment Comnany in the amount ofS117.750.00. . Treasurer Wolverton seconded . the m~tlOIi. Uoon a vote heinS! called. the mo~on passed by unanimous decision. ' c. Lime siurry Tank - According to the bid tabulation sheet, one bid was received from RDP Technologies, Inc., in the amount of $131,000.00. The delivered price of the existing tank is $60,000.00. However, the total price has increased due to additional equipment the Corporation will need for the project. Mr. Cockerell and Tom Caponi with Bury+Partners plan to trav€?l to Atlanta to visually inspect the tank. The tank has never been used, therefore a one-year warranty will be ill effect. Bury+Partners and the Corporation recommended that the bid be awarded to RDP technologies, Inc., for $131,000.00, and that the staff be allowed to evaluate alternative and more cost-effective methods to control the system . than the control panel proposed by RPP. Secreta" Dwver made a motion to award the bid for the lime slurry tank and prospective controls to RDP Technolosries. Inc.. in the amount of $131.000.00. Vice- President Greenwald seconded the motion~ Upon a vote bein2: called. the motion passedbv unanimous decision. . The sixteenth order of business was presentation of Consultant .Report - .Crockett Camp~ Consultant. . Mr. Camp deferred agenda item #16 to Executive Session. . The seventeenth order of business was presentation ,of Consultant's report - Bin Klemi Consultant. . Mr. Klemt reported the following information: 7 . Bexar M~t and Canyon Regional plan to drill test wells on the Wells Ranch. The information will be provided to GCGCD. . Information pertaining to a Gonzales Water Supply Corporation well located approximately 14 miles east of the Corporation's well field has been received. The data indicates the Carrizo in that area does not reflect the permeability and transmissivity found around the Corporation's well field. . Mr. Klemt, Barry Miller with GCUWCD and General Manager Cockerell plan to go to Pleasanton to review Ground Availability Model Runs (GAM Runs). This work is done in order for Districts to predict Desirable Future Conditions (DFC). President Bauer closed General Session at 2:27p.m. The ei2hteenth order of business was Executive Session called under Chapter 551 Government Code. Subsection 551.071. to seek the advice of its attorney on 1e2a1 matters relatin2 to the Board of Director's ri2hts and liabilities under certain contracts. Section 551.072. to deliberate the purchase of and/or sale of certain real estate. and Section 551.074. for deliberations ret!ardin2: a specific officer or emplovee. Executive Session was held from 2:37 p.m. to 3 :02 p.rn. The nineteenth order of business was to consider and take action as a result of Agenda Item #18. President Bauer opened General Session at 3:03 p.m. As a result of Executive Session: A2:enda Item 12 - Water Lease Contracts for Guadalul}e County Secretary Dwyer made a motion to approve a water lease agreement with Roger Baenzinger at the maximum anowable rate set by the GCGCD. President Bauer seconded the motion. Upon a vote being caned, the motion carried by four to zero. Treasurer Wolverton abstained. No action was taken on Agenda Item 13 or Agenda Item 16 as a result of Executive Session. The twentieth order of business was additional Board of Directors discussion and/or comments. Mayor Hal Baldwin suggested a tour of SSLGC's facilities be scheduled for council members and new board member Patricia Ramirez. He will advise Mr. Cockerell of potential dates in the near future. Secretary Dwyer welcomed Director Ramirez and said he would be available if she had questions or needed briefing on issues pertaining to SSLGC. 8 The seventeenth order of business was adjournment. President Bauer declared the meeting adjourned at 3:05 p.m. The next regular meeting was scheduled December 20, 2007, in Seguin. MINUTES APPROVED THIS 2007. ~obin Dwyer Secretary ~aUt DAY OF 1J~w 9 :"