02-21-2002
MINUTES OF THE SCHERTZ/SEGUIN
LOCAL GOVERNMENT CORPORATION
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
SCHERTZ/SEGUIN LOCAL §
GOVERNMENT CORPORATION §
On this the 21st day of February 21, 2002, the Schertz/Seguin Local Government
Corporation convened at 1:30 p.m. in the City of Schertz Fire Department Training
Room, 1400 Schertz Parkway, Schertz, Texas with the following members being present
and in attendance:
Robin Dwyer President
Ramon Cook Vice-President
Jim Wolverton Secretary
Sydney Bauer Director
Gloria Rivera Director
Constituting a majority of the persons appointed to the Boazd and a quorum for the - -
transaction ofbusiness, and notice of such meeting having been duly given in accordance
with the provisions of Texas law. Also in Attendance were Ken Greenwald, Betty Ann
Matthies, Dewey P. Cashwell, Jr. and Jack Hamlett.
The first order of business was the calling of the meeting to order at 1:30 p.m. by
President Robin Dwyer.
The second order of business was approval of the minutes for the meeting of January 17,
2002.
Director -Bauer inquired why the minutes still say organizational meeting of the
Schertz/Seguin Local Government Corporation. That would have been the first meeting,
but no longer. The minutes should now say regulaz meeting.
Director Bauer moved to approve the minutes, with the aforementioned correction, for
the January 17, 2002 meeting.. Secretary Wolverton seconded the motion, which carried
with unanimous vote of all Directors present.
The third order of business was presentation of the audit for FY 2001 by Nancy Vaughan
of Armstrong, Vaughan & Associates.
Ms. Vaughan explained she would cover some of the highlights and then answer
questions. The Corporation has $31,935 in cash and $53,797,000 in total assets. The
..operations of the Corporation over the last yeaz amounted to a net loss of $168,000.
President Dwyer asked the difference between capitalized and uncapitalized. Ms.
Vaughan answered capitalized means value over a number of years -depreciation over
the life of the assets. Uncapitalized means expenses during a specific time -there is no
depreciation.
Director Bauer asked what the basis is for amortization. Ms. Vaughan answered it is 30
years.
Ms. Vaughan referred to the Management Letter and said she didn't note any internal
adjustments. The Corporation, however, is losing some of its history because the
software doesn't transfer. Her recommendation is that one City do all of the accounting.
Director Bauer asked if she is recommending the Corporation have its own set of
software. Ms. Vaughan replied there would still be a learning curve involved.
President Dwyer suggested putting discussion of this matter on next month's meeting
agenda.
Jack Hamlett stated that ~ the finances are handled by Schertz -and the management
operations of administrative services are handled by Seguin. Dewey Cashwell mentioned
there is another possibility and that is that the City Managers be co-directors.
President Dwyer indicated they would have to make changes to their by-laws. He then
asked Vijay Jain, Finance Director of City of Schertz, how the idea of co-directors sets
with him. Mr. Jain replied he would have to operate two softwazes concurrently.
Pat Lindner, lawyer for the Corporation, recommended discussion of this be placed on
the next meeting agenda.
Director Rivera moved to accept the audit for FY 2001, as presented. Secretary
Wolverton seconded the motion, which carried by unanimous vote of all Directors
present.
The fourth order of business was an update on easement acquisition.
Mr. Hamlett reported they are down to the last six pazcels, which means the acquisitions
are about 97% or 98% completed. Hopefully, they have only two more condemnations.
President Dwyer observed if they have only two cases who intend to appeal, he thinks
they are on the downhill side.
Vice-President Cook inquired if everything is all cleaz on the Seguin leg. Mr. Hamlett
answered they have one left in Seguin and the rest are in Schertz. Most have been very
.cooperative.
The fifth order of business was presentation of the Executive Director's report.
New staff member, Linda Duncan, was introduced. President Dwyer asked what her job
entailed. Mr. Hamlett replied her job is to work with the property owners and attend Go-,~za~~ fie'.
Underground District meetings. In other. words, to interact with people. President Dwyer
welcomed her to the Corporation.
The sixth order of business was discussion and possible action on recommendation to
partner with the City of Seguin to repair and resurface Sutherland Springs Road.
Mr. Hamlett commented the construction has created some problems. They went to the
Seguin City Council asking them to approve an overlay. The Council approved $75,000.
Director Bauer asked if the contractor would be getting another $25,000 and Clay
Roming replied no. The remaining funds are available to the City and it's actually
$23,500.
Director Bauer commented they may be setting a precedent they don't want to set. It
leaves the door open to Schertz and Cibolo. Mr. Roming admitted he could see the
concern, but this is not an allocation for road repair.
Director Bauer then questioned if this could be done without any liability and Mr.
Roming replied yes. President Dwyer stated the way he understands it, they could
reallocate funds to a big project versus just a patching job on the road. Vice-President
Cook asked what the distance is and Mr. Roming replied its'/4 of a mile.
Secretary Wolverton asked Mr. Lindner. about the legality of using bond money. Mr.
Lindner indicated he had a copy of the contract with him and be sees no prohibition on
either City. He had called Jeffrey Kuhn of Fulbright & Jaworski and Mr. Kuhn was
comfortable with the proposal.
President Dwyer questioned which contractor this is and Mr. Roming replied McLean
Construction. Mr. Roming then added there might be a similar road in Schertz. John
Bierschwale added that road in Schertz might be Live Oak Road.
Mr. Hamlett stressed again they are not allocating more money. This is subject to
McLean Construction accepting the stipulation.
Vice-President Cook moved to approve the partnering with the City of Seguin to repair
and resurface Sutherland Springs Road .subject to McLean Construction accepting the
stipulation. Secretary Wolverton seconded the motion, which carried by unanimous vote
of all Directors present.
The seventh order of business was discussion and possible action authorizing
reimbursement to the City of Seguin for hours incurred by Ruben Perez from October 1,
2001 through January 31, 2002.
Director Rivera moved to approve reimbursement to the City of Seguin for the -hours
incurred by Ruben Perez from October 1, 2001 through January 31, 2002. Director
Bauer seconded the motion, which carried by unanimous vote of all Directors present.
The eighth order of business was presentation of the Engineer's Report and discussion
and action in response to the report.
Mr. Roming said the Board may wonder what the Transportation Act has to do with this
project. It is because this is an underground form of transportation. Mr. Roming had
distributed some information to those present. He reported that all well collection is
complete. All wells have passed the pressure tests. They still need to disinfect the lines.
The contractor did not submit a payment request at the end of January, so it will be
submitted in February.
President Dwyer inquired about progress on ground condition and IVIr. Roming replied
90%. Mr. Roming also mentioned they keep ignoring him on clean up. They found
twenty joints or pipes that were damaged. President Dwyer asked if the damage was in
the joints and 1Vir. Roming replied no, it was in the length of the pipe. Mr. Roming
referred. to a pipeline project where it was necessary to send the pipe to the lab in case
there were defects. They may have to do the same thing for this project. They don't
want to find defects when they go to the pressure testing.
Ken Greenwald asked if they still have -some of the lines taken out. Mr. Roming replied
yes -but all were damaged. There was a brief discussion about this with both President
Dwyer and Director Bauer encouraging Mr. Roming to pursue the resolve of this
situation.
Mr. Roming reported meeting with McLean Construction on January 28`h and they
currently have a projected completion date of August 26`x. There is no doubt we are
looking at a July/August/September completion date.
Mr. Roming also mentioned they had. ordered valves from. Abco who went on str~ce last
June and they are still on strike. President Dwyer .asked if they could get another
company. Mr. Roming replied no -this is absolutely the correct valve for this project.
There is an alternative valve that could be delivered in 8-10 weeks and Abco says they
can deliver.
President Dwyer briefly mentioned they had received lots of bad publicity about. the
bridge and finishing of the walkway.
Mr. Roming stated the. ground storage tank is complete and he will ask them to repaint
the floor.
Regarding the wells, Bill Klemt related that 1, 3 and 6 passed. They still need some
work done on 5 and 4. They will start the final pumping tests on 2 next week. Mr.
Roming pointed out three wells are complete, which they could use today.
There was a brief discussion about security and regarding that subject, Vice-President-
Cook inquired if camera ID had been approached. Mr. Roming admitted it's a
possibility.
Mr. Lindner suggested the Boazd, upon recommendation of Mr. Roming, Mr. Cashwell
and himself, appropriate an Executive Director to take what action is necessary ., even if
it's termination, to require McLean Construction to honor their contract.
~~ie~,.
Director Bauer moved that the Board .~pg~c~~ an Executive Director to require that
McLean Construction honor their contract. Director River seconded the motion, which
carried by unanimous vote of all Directors present.
The ninth order of business was presentation of the Consultant's Report and discussion
and action in response to the report.
Crockett Camp emphasized he was intent on getting the project fmished in a timely
manner. They held a meeting last week and discussed possibilities . They are thinking
about the future and have to be prepared for demands sooner or later. Mr. Hamlett
acknowledged they meet regularly on that. President Dwyer asked if they had discussed
how the Corporation might pay for these demands. Mr. Hamlett commented he is willing
to go back to City Council.
Secretary Wolverton asked if-SAWS efforts would mess us up. Mr. Camp replied SAWS
is looking at 30,000 feet. We need to secure our position (20,000 feet). They are not
active in the same area we aze, so he doesn't think they will be confrontational to us.
Director Rivera reminded the. Board the Regional Plan calls for only 16,000 feet, so
30,000 is excessive.
Vice-President Cook asked if their location is down from us or even with us. Mr. Camp
answered they aze below us.
The tenth order of business was an Executive Session, but there was no need to hold one.
As a result of that, there was no need for item 11 - action as a result of the Executive
Session.
President Dwyer asked about agenda items for the next meeting. Mr. Lindner said they
need an election of officers. The current officers can be re-elected.
President Dwyer noted the next meeting would be March 21~` at 1:30 p.m. in Seguin.
There being no further business to discuss, President Dwyer adjourned the meeting at
3:03 p.m.
NIINUTES APPROVED this the -day of , 2002.
Signatures of all Directors
Robin V. Dwyer, President
Ramon J. Cook, Vice-President
Jim Wolverton, Secretary
Sydney Bauer, Director
Gloria Rivera, Director