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SSLGC 11-20-2008MINUTES OF THE SCHERTZ-SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS § COUNTY OF GUADALUPE § SCHERTZ-SEGUIN LOCAL § GOVERNMENT CORPORATION § On this the 20th day of November 2008, the Schertz-Seguin Local Government Corporation (SSLGC) convened at 1:37 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 Hal Baldwin Betty Ann Matthies President Vice-President Secretary Treasurer Ex-Officio Ex-Officio and the following director being absent: Patricia Ramirez Director 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 General Manager Doug Faseler Seguin City Manager Don Taylor Schertz City Manager Susan Caddell Seguin Director of Finance Johnny Bierschwale .Schertz Assistant City Manager Larry Dublin Schertz City Engineer John Schraub Seguin Water Utility Manager John Bailey Water Superintendent Georgia Hanks Administrative Assistant Crockett Camp Consultant/Project Manager Bill Klemt Hydrologist Consultant John Winkler Consultant ~Arr) Patrick Lindner COU11sel (Davidson & Troilo) Paul Gonzales Counsel (Davidson & Troilo) Steven White Impact Fee Committee Member Sam Willoughby Schertz Public Works Director i The first order of business was the calling of the meeting to order. President Sydney Bauer opened the meeting for a Public Hearing at 1:37 p.m. The second order of business was a Public Hearing on proposed impact fee modifications. President Bauer opened the Public Hearing to hear citizens present evidence for or against the proposed impact fee modifications and/or the land use assumptions and capital improvements plan. No one addressed the Board during the Public Hearing. President Bauer closed the Public Hearing and opened General Session at 1: 38 p. m. The third order of business was public comment. Counsel Patrick Lindner introduced a new member to the firm of Davidson & Troilo, Paul Gonzales, to the board of directors and staff. The fourth order of business was approval of the minutes for the board meeting held on October 16, 2008. Board members held a brief discussion in reference to Hydrologist Consultant Bill Klemt's report on page five of the minutes. Treasurer Jim Wolverton made a motion to approve the minutes as written. Secretary Robin Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The fifth order of business was presentation of the General Manager's report - Alan Cockerell, General Manager. General Manager Cockerell's written report was included in the board agenda packets. Water Production. Mr. Cockerell summarized the water production details included in his report. Due to extreme dry weather, water usage was the highest for the month of October in past history for the Corporation. The cities of Schertz and Seguin continue to experience comparatively even water sales. Region L Meeting. At the November 6, 2008 meeting, Mr. Bill West gave a presentation on the GBRA Mid-Basin project in Gonzales County. The project is in the early planning stage and will be included for evaluation in the 2011 Regional plan. Guadalupe County Groundwater Conservation District (GCGCD). At the November 13, 2008 meeting, proposed rule changes were approved. A copy of the approved rules can be made available by the Corporation and are on GCGCD's website, GCGCD.org. Mr. Ron Naumann made a request for Mr. Cockerell to provide a written plan of the Corporation's Guadalupe project to the District, and give verbal updates at future meetings. Although SSLGC's plan is included in the state water plan, Mr. Cockerell plans to give his first verbal report at GCGCD's January meeting and will provide a written plan when the time is appropriate. Canyon Regional Water Authority is included on GCGCD's agenda every month and gives verbal reports of the status of its projects. a Operations Report. • SSLGC's newest operator, Richard Castillo, passed the "Class D" water operators license test on his first attempt. • Twenty-nine 7,000 gallon tanker loads of sludge were removed from discharge ponds for the first time this year. This expense will continue to be included in the Corporation's operations budget in the future. The sludge was applied to the surface of SSLGC's licensed sludge disposal area. Soil samples of the area are required annually by TCEQ. The sixth order of business was a water lease between Guadalupe County and SSLGC -Alan Cockerell, General Manager and Patrick Lindner, Davidson & Troilo. Counsel Patrick Lindner reported to board members and staff that the Guadalupe County Commissioners Court had voted to enter into a water lease contract with SSLGC. SSLGC's standard contract form would be used with the exception that SSLGC would not be required to pay the usual signing bonus or pre-production royalty payments. He added that Guadalupe County had already paid impact fees to the Corporation for its construction of a new elections office in Seguin. Counsel Lindner requested a motion to approve the water lease, allowing for water impact fees which would normally be paid by Guadalupe County to the Corporation for new construction to be offset equal to the signing bonus and royalty payments the Corporation would normally pay to Guadalupe County for the water lease. Counsel Lindner stated that a proposal had been made to also consider waiving future impact fees to counties and cities as they are for school districts. Mr. Lindner recommended, pending fixrther discussion with the Schertz city council about statutory obligations of cities and counties to pay impact fees at all, to address each request on a case by case basis and not address a blanket exemption at the meeting in progress. President Bauer made a motion to approve the water lease contract with Guadalupe County and to off-set the signing bonus and pre-production royalty payments from the Corporation to Guadalupe County equal to impact fees paid from Guadalupe County to the Corporation in this case. Vice-President Greenwald seconded the motion. Upon a vote being called, the motion carried by majority decision. Treasurer Wolverton abstained. The seventh order of business was an amendment to SSLGC's impact fee, Resolution #SSLGC R08-13- Alan Cockerell, General Manager. General Manager Cockerell gave a brief review of the impact fee amendment, Resolution # SSLGC R08-13, and requested a motion to approve it. Treasurer Wolverton made a motion to approve an amendment to SSLGC's water impact fee to change the base meter size used to calculate water impact fees from 3/4 inch to 5/8 inch, Resolution # SSLGC R08-13. Secretary Dwyer seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The eighth order of business was presentation of the Treasurer's Report -Susan Caddell, Director of Finance and Alan Cockerell, General Manager. A copy of the Treasurer's Report was included in the board agenda packets. The report was prepared by Director of Finance Susan Caddell and reviewed by General Manager Alan Cockerell. Mr. Cockerell recommended approval of the following report: a. Financial Statements for the year ended September 30, 2008. • Revenues, Expenses and Changes in Net Assets -Combined Statements ^ $235,155 (net income) Revenues, Expenses and Changes in Net Assets -Operating Fund ^ $174,003 (net income) Universal City has not purchased water this year. During the months of March and June, Springs Hill exceeded its minimum purchase amount of 15,500,000 gallons. • Revenues, Expenses and Changes in Net Assets -Construction Fund ^ -$1,318,988 • Revenues, Expenses and Changes in Net Assets -Interest & Sinking Fund ^ $801,375 (net income) Includes I & S rates paid by participating entities and bond payments. • Revenues, Expenses and Changes in Net Assets -Repair & Replacement Fund ^ $241,313 (net income) • Revenues, Expenses and Change in Net Assets -Future Development Fund ^ -$37,220 • Revenues, Expenses and Change in Net Assets -Impact Fund ^ $374,673 (net income) • Revenues, Expenses and Change in Net Assets - Operating Fund (comparative statement) ^ $138,049 (net increase from FY2007-2008) • Working Capital Trend Chart ^ -$801,459 (decrease in working capital since last quarter) b. Investment Report for the quarter ended September 30, 2008. Ms. Caddell presented the Investment Report for July 1, 2008, through September 30, 2008. Interest earnings for quarter ending September 30, 2008, are $47,666 compared to $49,555 last quarter. SSLGC's portfolio has fallen as interest rates continue to fall. Secretary Robin Dwyer made a motion to approve the Investment Report for the quarter ending September 30, 2008. Vice-President Greenwald seconded the motion. 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, 2008. Ms. Caddell presented the expenditure information for the quarter July 1, 2008, through September 30, 2008. The total amount of reimbursement from SSLGC requested by the City of Seguin for the fourth quarter of 2008 is $937,503. Secretary Robin Dwyer made a motion to authorize SSLGC to reimburse the City of Seguin in the amount of $937,503 in accordance with the Management Services Agreement. Secretary Wolverton seconded the motion. Upon a vote being called, the motion carried by unanimous decision. The ninth order of business was Gonzales County Water Treatment Plant (WTP) filter rehabilitation, phase II -Alan Cockerell, General Manager and John Winkler, LAN. General Manager Cockerell referred to a time-line which was included in the board agenda packets and provided a summary of the status of the filter rehabilitation project. Two filters have been shut down and cleaned out. Sandblasting should be completed and a primer coat applied on one filter the week of November 23, 2008. The project is slightly ahead of schedule. However, the project contractor advised Mr. Cockerell that materials ordered from Tonka may be delayed and he was working to get the issue solved. Consultant John Winkler stated that the filter rehabilitation project along with the previous lime slurry project should expand the life of the filters significantly, and rehabilitation of the filters should not have to occur again for approximately 10 years. The tenth order of business was Guadalupe County expansion protect -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #10 to Executive Session. The eleventh order of business was Gonzales County expansion project -Alan Cockerell, General Manager. President Bauer deferred Agenda Item #11 to Executive Session. President Bauer closed General Session at 2:19 p. m. The twelfth order of business was Executive Session called under Chapter 551 Government Code, Subsection 551.071, to seek the advice of its attorney on legal matters relating to the Board of Director's rights 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 regarding a specific officer or employee. Executive Session was held from 2:21 p. m. to 3: 04 p. m. The thirteenth order of business was to consider and take action as a result of Agenda Item #12. President Bauer opened General Session at 3:04 p. m. No action was taken as a result of agenda item #12. The fourteenth order of business was additional Board of Directors discussion and/or comments. No additional discussion was held. The fifteenth order of business was adiournment. President Bauer declared the meeting adjourned at 3:05 p.m. The next regular meeting was scheduled December 18, 2008, in Seguin. MINUTES APPROVED THIS _ ~~ DAY OF 1/~Ce~~1~ , 2008. Robin Dwyer Secretary