MINUTES OF THE SCHERIZ/SEGUIN LOCAL GOVERNMENT CORPORATION THE STATE OF TEXAS COUNTY OF GUADALUPE SCHERIZ/SEGUIN LOCAL S GOVERNMENT CORPORATION S On this the 20th day of March, 2025 the Schertz/Seguin Local Government Corporation (SSLGC) convened at 1:30 PM at SSLGC Administrative Building located at 108 W. Mountain Street, Seguin, Texas. The following board members being present: Jack Hamlett President Richard Braud Vice President Tim Brown Treasurer Heath Anders Secretary Drew Engelke Assistant Secretary Donna Dodgen Ex-Officio (virtual) The following members were absent: Ralph Gutierrez 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 ofTexas law. Also in attendance were: Patrick Lindner General Counsel (Davidson, Troilo, Ream & Garza) Rick Cortes Deputy City Manager (City of Scguin) Steve Williams City Manager (City of Schertz) Larry Busch Public Works (City of Schert) Susan Caddell Finance Director (City of Scguin) Kim Roach Armstrong, Vaughan & Associates Bill Klemt Consultant Derek Klenke Trihydro Nathan Cobler Kimley-Horn Ben Benzaquen SAWS Dan Daniels Citizen Andrew McBride General Manager (SSIGC) Philip DeFrancesco Assistant General Manager (SSLGC) Derrik Wesch Superintendent (SSIGC) Stephen Rendon Operator (SSIGC) Clarissa Barrientes Office Administrator (SSIGC) The first order ofbusiness was to Call the Meeting to Order President Hamlett called the meeting to order at 1:33 PM The second order ofl business was Public Comment Mr. Daniels voiced his concern about the blending of Carrizo water and the river water. 1of4 SSLGC MINUTES 03/20/2025 (4 Pages) SIGNED ORIGINAL(S): 1 Date/Time Printed: 4/15/2025 1:58 PM The third order of business was the Approval of Minutes for the meeting held February 20, 2025 There was a minor modification made to the Mr. Engelke's title - Director to Assistant Secretary. Secretary Anders made a motion to approve minutes with minor modification for the meeting held February 20, 2025. Vice President Braud seconded. Upon a vote being called, the motion carried by unanimous decision. The fourth order of business was Presentation of the General Manager's Report = Andrew McBride, General Manager Mr. McBride and Mr. DeFrancesco updated the Board on the following: > GCUWCD The monthly meeting was held March 11, 2025. A copy oft the agenda was included in the board packet. Mr. McBride attended virtually. The next monthly meeting is scheduled for April 8, 2025. > GCGCD The monthly meeting was held March 13, 2025. A copy ofthe agenda was. included in the board packet. Mr. McBride attended. The next monthly meeting is scheduled for April 10, 2025. Region L The next Region L meeting is scheduled for August 28, 2025. GMA 13 The next GMA meeting is scheduled for April 11, 2025. Water Supply Project Mr. McBride gave an update. > Operations Update Mr. DeFrancesco went over the operations report that was included in the board packet. A Water Production Seasonal pumping and monthly water sales charts were included in the board packets. Water production for the month of February was 63.7% of the Gonzales County Underground Water Conservation District's monthly allowable. Mr: Delrancesco introduced SSLGC's Operator; Stepben Rendon. The fifth order of business was Update Regarding Construction Projects A. Walker Partners at Texas Water Conference, will provide update in April. Mr. McBride gave a brief update. The sixth order of business was Presentation of FY 2023-2024 Audit Report = Kim Roach, Armstrong, Vaughan & Associates Copies of the SSLGC FY2023-2024 Audit Report were included in the board packet. Ms. Roach with Armstrong presented an overview of the report. Highlights of the report were as follows: Ms. Roach began by stating there was a good audit this year with an unmodified opinion. Some adjustments were recommended, nothing out of the ordinary. Ms. Roach advised that SSLGC was in compliance with the Public Investment Act. Ms. Roach called attention to Page 8 of the Audit (Statement of Net Position). Total Assets were $199,000,000 compared to 195,000,000 in FY2022-2023. Total current assets were $16,500,000. Total Restricted. Assets were $29,300,000. Net Property, Plant and Equipment were $153,300,000. 2 of4 SSLGC MINUTES 03/20/2025 (4 Pages) SIGNED ORIGINAL(S): 1 Date/Time Printed: 4/15/2025 1:58 PM Ms. Roach moved to Page 9. Total current liabilities were $8,600,000. Total habilities being 154,000,000 remaining unchanged from the previous year. The unrestricted net position being 25,000,000, comparable to last year. Total Net Position increased from $42,300,000 to $46,700,000. Ms. Roach moved to Page 10 (Statement of Revenues, Expenses, Changes in Net Position). Total Revenues were $20,800,000, an increase of $616,000 from FY2022-2023. Operating Expenses were 7,600,000, an increase of$772,000 from FY2022-2023. Non-Operating Revenues balance was (2,700,000). Overall, Ms. Roach noted a positive change to the Net Position of $4,300,000. The seventh order of business was Comsideration/Approsal of Change Order No. 1 for Professional Engineering Services for the Nockenut Road Site Rehabilitation Project Trihydro Corporation = Andrew McBride, General Manager > Resolution # SSLGC R25-07 Mr. McBride presented the change order. Treasurer Brown made a motion to approve Resolution # SSLGC R25-07. Vice President Braud seconded. Upon a vote being called, the motion carried by unanimous decision. The eighth order of business was Comsideration/Apposal of Change Order No. 2 for the Nockenut Road Site Rehabilitation Project by Texas Chile, Inc - Andrew McBride, General Manager > Resolution # SSLGC R25-08 Mr. McBride presented the change order. Treasurer Brown made a motion to approve Resolution # SSLGC R25-08. Assistant Secretary Engelke seconded. Upon a vote being called, the motion carried by unanimous decision. The nineth order ofl business was Comsideration/Apposal of] Proposal for Security Additions - Gonzales WTP Gate Access Control and Cameras Additions Project by Brycomm = Andrew McBride, General Manager > Resolution # SSLGC R25-09 Mr. McBride presented BryComm's proposal. Vice President Braud made a motion to approve Resolution # SSLGC R25-09. Treasurer Brown seconded. Upon a vote being called, the motion carried by unanimous decision. The tenth order of business was Wholesale Water Contract(s) & Well Permits(s) = Andrew McBride, General Manager No update. The eleventh order ofbusiness was Gonzales County & Guadalupe County Carrizo and Wilcox Water Leases and Property Transactions = Andrew McBride, General Manager Mr. McBride gave an update. The twelfth order of business was Executive Session called under Chapter 551 Government Code, Section 551.071, to seek the advice ofi its attorney on legal matters, and Section 551.072, for Deliberations Regarding Real Estate 3of4 SSLGC MINUTES 03/20/2025 (4 Pages) SIGNED ORIGINAL(S): 1 Date/Time Printed: 4/15/2025 1:58 PM The thirteenth order of business was Consider and Take Action as Result of Agenda Item Number Twelve The fourteenth order of business was Consideration and/or Action on Questions and Possible Items to be placed on the Next Agenda > Next SSLGC Board Meeting is scheduled for Thursday, April 17, 2025. The fifteenth order of business was Adjournment President Hamlett declared the meeting adjourned at 2:08 PM. MINUTES APPROVED THIS 17th DAY OF April 2025. bath-ladars Heath Anders, Secretary Drew Engelke, Assistant Secretary 40 of4 SSLGC MINUTES 03/20/2025 (4 Pages) SIGNED ORIGINAL/S): 1 Date/Time Printed: 4/15/2025 1:58 PM