GUADALUPE-BLANCO RIVER AUTHORITY Minutes of the Board of Directors. The Board of Directors of the Guadalupe-Blanco River Authority met in a regular

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1 GUADALUPE-BLANCO RIVER AUTHORITY Minutes of the Board of Directors The Board of Directors of the Guadalupe-Blanco River Authority met in a regular monthly meeting on May 18, 2005, at the GBRA River Annex Board Room, 905 Nolan, Seguin, Guadalupe County, Texas. Directors present were John P. Schneider, Jr., Stephen F. Wilson, DVM, Myrna P. McLeroy, Frank J. Pagel, Frederick S. Schlather, Jack R. Gary, Margaret M. Grier, and Clifton L. Thomas, Jr. Director Kathleen A. Devine was absent. Also present were W. E. West, Jr., General Manager; Fred M. Blumberg, Deputy General Manager and Chief Operations Officer; Alvin Schuerg, Executive Manager of Finance and Administration; Randy Worden, Executive Manager of Business Development and Resource Management; Gary Asbury, Manager of Project Engineering; Judy Gardner, Manager of Communications and Education; Tommy Hill, Chief Engineer; Debbie Magin, Director of Water Quality Services; John Smith, Operations Manager-Upper Basin; Bryan Serold, Operations Manager-Lower Basin; Tommie Streeter-Rhoad, Economic Development Manager; Todd H. Votteler, Director of Natural Resources and Special Assistant to the General Manager; David Welsch, Director of Project Development; Cricket Dietert, Executive Assistant to the General Manager; Janet Thome, Trust Coordinator; Connie Rothe, Board Relations Assistant; Tammy Beutnagel, Public Communications Assistant; Juan Gonzalez, Web Master; Roger Nevola, legal counsel; Rose Marie Eash representing Dublin and Associates, Inc.; David Engel, representing Engel and Associates, Inc.; Jamie Kathleen Higgins, Cristal Lysette Renteria, Jason Ryan Eddleton, Chelsea Rochelle Humphrey, XLIX 5/18/05 99

2 Meagan Lynn Rosa, Kelly Lauren Ochoa, and Amanda Monique Ojeda, GBRA 2005 scholarship recipients; Mary Ann Rodriquez; Janie Ojeda; Joseph Ochoa; Eva Ochoa; Corey Brysch; Janice Humphrey; Jim Frost representing Frost and Allen; Keith Pyron representing PBS&J; Frank Byrne representing the City of Woodcreek; Greg Bowen representing the Victoria Advocate; and Janet Grafe representing the Seguin Gazette. The meeting was called to order at 10:04 a.m. by Chairman Schneider who took note of the certifications presented by the General Manager that notice of the meeting had been properly posted in the office of the Secretary of State, in the Guadalupe County Courthouse, and at the GBRA main office and river annex in Seguin, Texas, pursuant to Title 5, Chapter 551 of the Government Code. A quorum being present, the following proceedings were had: Director McLeroy led the United States Pledge of Allegiance and the Texas Pledge of Allegiance. The Chairman called for comments from the public. There were no public comments at this time. Chairman Schneider called for Presentation of 2005 annual GBRA Scholarships. Scholarships were presented to Jamie Kathleen Higgins a sophomore at Victoria College, Cristal Lysette Renteria a graduate from Cuero High School, Jason Ryan Eddleton a graduate from Prairie Lea High School, Chelsea Rochelle Humphrey a graduate from Marion High School, Meagan Lynn Rosas a graduate from Refugio High School, Kelly Lauren Ochoa a graduate from Yorktown High School, and Amanda Monique Ojeda a graduate from Jack C. Hays School. XLIX 5/18/05 100

3 The Chairman called for Items from the Chairman 1 - Consideration of and possible action authorizing the expenditure of funds for Directors and staff to attend the Texas Water Conservation Association Mid-Year Conference at Moody Gardens Hotel in Galveston, Texas, June 22-24, Upon motion by Director Wilson, seconded by Director Pagel, the Board unanimously authorized expenditure of funds for Directors and staff to attend the Texas Water Conservation Association Mid- Year Conference. The Chairman then called for Consent Items 2 - Consideration of and possible action approving the April 20, 2005 Board meeting minutes; 3 - Consideration of and possible action approving the monthly financial report for April 2005; 4 - Consideration of and possible action approving the monthly operations report for April 2005; and 5 - Consideration of and possible action approving Directors expense vouchers. Upon motion by Director Gary, seconded by Director Thomas, the Board unanimously approved Consent Items 2, 3, 4, and 5. Next, the Chairman called for Executive Report 6. General Manager West asked the Board if there were any questions regarding the Executive Report. There were no questions. Upon motion by Director Gary, seconded by Director Grier, the Board unanimously accepted the Executive Report. The Chairman called for Action Item 7 - Consideration of and possible action authorizing amendments to the Fiscal Year 2005 Work Plan and Budget. GBRA Board Policy 409 provides that the expenditure of non-budgeted funds requires approval from the GBRA Board of Directors. Policy 409 requires that GBRA describe XLIX 5/18/05 101

4 the proposed budget amendment and identify the amount and source of funding for the non-budgeted expenditures. The budget amendment includes both revenue as well as expenditure budget amendments. The proposed budget amendments aggregate to a net cash requirement of $520,284. The largest single component of the proposed amendment is in the Guadalupe Valley Hydroelectric Division in the approximate net amount of $335,336 and which resulted from the November 2004 Guadalupe River flood. The funds to pay all additional budget expenditures that are not otherwise covered by additional generation revenue will come from the General Division in the form of interfund loans. These interfund loans will be repaid to the General Division in future years as expeditiously as possible. Upon motion by Director Gary, seconded by Director McLeroy, the Board unanimously approved the Fiscal Year 2005 budget amendment. A copy of the amendment is attached and made a part of these minutes. Next, the Chairman called for Action Item 8 - Consideration of and possible action approving Participation Criteria for Treated Water Service from the Western Canyon Regional Treated Water Supply System. The GBRA Western Canyon Regional Treated Water Supply System will provide treated surface water to customers in Comal and Kendall Counties, as well as some water to Bexar County on a returnable basis. With the project under construction, several existing customers, as well as potential new customers, are pursuing increased commitments or new commitments of water from the system. GBRA staff has discussed issues related to increased or new commitments to customers of the Project. A briefing of issues was presented to the Board at the April 20, 2005 Board meeting. Upon motion by Director XLIX 5/18/05 102

5 Grier, seconded by Director Schlather, the Board unanimously approved the Participation Criteria for Treated Water Service from the Western Canyon Regional Treated Water Supply System. A copy of the Criteria is attached and made a part of these minutes. The Chairman then called for Action Item 9 - Consideration and approval to enter into an Interlocal Agreement with Kerr County, approval for GBRA to be the local sponsor of the project and authorization to expend $61,000 as the 50 percent (50%) local match for the project. Agenda item 9 was pulled from the agenda. There was no discussion or action. The Chairman called for Action Item 10 - Consideration of and possible action approving an Agreement between GBRA and the City of Fair Oaks Ranch for water system improvements to the Fair Oaks Ranch water supply system. GBRA is constructing a portion of the water transmission pipeline for the Western Canyon Regional Treated Water Supply System along the western boundary of Fair Oaks Ranch. The City of Fair Oaks Ranch has prepared plans and obtained funding to construct internal water delivery facilities along the same alignment being utilized by GBRA for the Western Canyon Regional Treated Water Supply System. The City of Fair Oaks Ranch has requested that GBRA authorize its Western Canyon Regional Treated Water Supply System contractor to install facilities for Fair Oaks Ranch concurrent with the facilities being installed for GBRA. Fair Oaks Ranch will reimburse GBRA for all costs associated with its pipeline. Upon motion by Director Gary, seconded by Director Grier, the Board unanimously authorized the General Manager to XLIX 5/18/05 103

6 enter into an Agreement with the City of Fair Oaks Ranch providing for the GBRA to install certain water distribution facilities for the City of Fair Oaks Ranch. A copy of the Agreement is attached and made a part of these minutes. The Chairman then called for Action Item 11 - Consideration of and possible action approving a Resolution by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the IH-35 Water Transmission Main Project in connection therewith, over, across, upon and under certain privately owned and public properties; authorizing all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declaring further negotiations futile; ratifying and affirming all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of GBRA to acquire such property interests; authorizing all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the necessary interests in real property, declaring the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid; said properties to be identified to wit: Tract D-3 Julia Joseph Sawyer, Charles D. Sawyer and Donald J. XLIX 5/18/05 104

7 Sawyer, being approximately acre of permanent easement, and acre of temporary easement, and being part of a called acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 1344, Page 846 of the Deed Records of Hays County, Texas (D.R.H.C.T.), attached as Exhibit A ; Tract D-4 Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.983 acre of permanent easement, and acre of temporary easement, and being a portion out of a acre tract and a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 1344, Page 851 of the Deed Records of Hays County, Texas (D.R.H.C.T.), attached as Exhibit B ; Tract D-4A Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.020 acre of permanent easement, and.027 acre of temporary easement, and being a portion out of a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 1344, Page 854 of the Deed Records of Hays County, Texas (D.R.H.C.T.), attached as Exhibit C ; Tract D-4B Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.985 acre of permanent easement, and.916 acre of temporary easement, and being a portion out of a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to XLIX 5/18/05 105

8 Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 329, Page 405 of the Deed Records of Hays County, Texas (D.R.H.C.T.), attached as Exhibit D ; Tract D-4C Chase Baromeo, being approximately.328 acre of permanent easement and.181 acre of temporary easement, and being a portion out of eight (8) acres out of the J.B. Eaves Survey, Abstract No. 166, Hays County, Texas describe din Volume 290, Page 395, Deed Records, Hays County, Texas, attached as Exhibit E ; Tract D-5A Austin Blue Sky Investments, Inc., a Texas Corporation, being approximately.117 acre of permanent easement, and.117 acre of temporary easement, and being a portion out of a acre tract of land in the George Herder Survey, Abstract No. 239 in Hays County, Texas described in deed recorded in Volume 2580, Page 566 of the Deed Records of Hays County, Texas, attached as Exhibit F ; Tract D-7 John D. Cavness, Jr., Dorene Ray, Trustee for the Dorene Ray Trust, and Denise Cavness, Trustee for the Denise Cavness Trust, being approximately acre of permanent easement, and acre of temporary easement, and being a portion out of a acre tract of land in the Trinidad Varcinas Survey, Abstract No. 465, and the George Herder Survey, Abstract No. 239 in Hays County, Texas described in deed recorded in Volume 1047, Page 667, Volume 1047, Page 662, Volume 2080, Page 653, and Volume 2062, Page 661 of the Deed Records of Hays County, Texas, attached as Exhibit G ; and Tract D-9 John D. Cavness, Jr., Dorene Ray, Trustee for the Dorene Ray Trust, and Denise Cavness, Trustee for the Denise Cavness Trust, being approximately.235 acre of permanent easement, and.256 XLIX 5/18/05 106

9 acre of temporary easement, and being a portion out of a acre tract of land in the Trinidad Varcinas Survey, Abstract No. 465, and the George Herder Survey, Abstract No. 239 in Hays County, Texas described in deed recorded in Volume 1047, Page 667, Volume 1047, Page 662, Volume 2080, Page 653, and Volume 2062, Page 661 of the Deed Records of Hays County, Texas, attached as Exhibit H. Water supply agreements for delivery of treated water service by Guadalupe- Blanco River Authority (GBRA) from the IH-35 Water Transmission Main Project have been executed between the City of Kyle, the City of Buda, GoForth Water Supply Corporation, and GBRA. Proceedings in eminent domain are necessary to acquire certain properties for the IH-35 Transmission Water Main Project. Efforts to negotiate for the acquisition of some of these properties have been unsuccessful. The Board was informed that a settlement has been reached on Tract D-3 Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately acre of permanent easement, and acre of temporary easement, and being part of a called acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 1344, Page 846 of the Deed Records of Hays County, Texas (D.R.H.C.T.); Tract D-4 Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.983 acre of permanent easement, and acre of temporary easement, and being a portion out of a acre tract and a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed XLIX 5/18/05 107

10 recorded in Volume 1344, Page 851 of the Deed Records of Hays County, Texas (D.R.H.C.T.); Tract D-4A Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.020 acre of permanent easement, and.027 acre of temporary easement, and being a portion out of a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 1344, Page 854 of the Deed Records of Hays County, Texas (D.R.H.C.T.); and Tract D-4B Julia Joseph Sawyer, Charles D. Sawyer and Donald J. Sawyer, being approximately.985 acre of permanent easement, and.916 acre of temporary easement, and being a portion out of a acre tract of land in the Jesse B. Eaves Survey No. 5, Abstract No. 166 in Hays County, Texas conveyed to Julia J. Sawyer, Charles D. Sawyer, and Donald J. Sawyer by deed recorded in Volume 329, Page 405 of the Deed Records of Hays County, Texas (D.R.H.C.T.) and staff requested the tracts be removed from the Resolution. Upon motion by Director Gary, seconded by Director McLeroy, the Board unanimously approved a Resolution, as amended, by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the IH-35 Water Transmission Main Project in connection therewith, over, across, upon and under certain privately owned and public properties; authorized all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and XLIX 5/18/05 108

11 temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declared further negotiations futile; ratified and affirmed all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of GBRA to acquire such property interests; authorized all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the necessary interests in real property, declared the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid. A copy of the Resolution as amended is attached and made a part of these minutes. Next, the Chairman called for Action Item 12 - Consideration of and possible action approving a Resolution by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the Western Canyon Regional Treated Water Delivery Project or System in connection therewith, over, across, upon and under certain privately owned real properties; authorizing all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declaring further negotiations futile; ratifying and affirming all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of XLIX 5/18/05 109

12 GBRA to acquire such property interests; authorizing all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the necessary interests in real property; declaring the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid; said properties to be identified to wit: Tract I-5 Jerry Hicks and Esther Hicks, being approximately.173 acre of permanent easement and.423 acre of temporary easement, and being out of a acre tract of land as recorded and conveyed to Jerry S. Hicks and Esther W. Hicks in Warranty Deed with Vendor s Lien recorded in Volume 10329, Pages of the Official Public Records of Real Property of Bexar County, Texas, being out of the W.H. Hughes Survey No. 173, Abstract No. 340, County, Block 4707 of Bexar County, Texas, attached as Exhibit A ; Tract I-6 Jerry S. Hicks and Esther W. Hicks, being approximately.151 acre of permanent easement and.240 acre of temporary easement, and being out of Lot 1, Block 4 Hicks Property Subdivision recorded in Volume 9559, Page 89 of the Deed and Plat Records of Bexar County, Texas, attached as Exhibit B ; and Tract K-19 Obie N. Marlar & Carolyn H. Marlar, being approximately.453 acre of permanent easement and.453 acre of temporary easement, and being out of a acre tract recorded and conveyed to Obie N. Marlar & Carolyn H. Marlar, in Volume 6125, Pages of the Official Public Records of Real Property Records in Bexar County, Texas, out of the L. Bulverde Survey Number 195, Abstract 51, County Block 4860 and G. Herrera Survey Number 192, Abstract 307 XLIX 5/18/05 110

13 of Bexar County, Texas, attached as Exhibit C. Water supply agreements for treated water service by GBRA from the Western Canyon Regional Treated Water Supply Project have been executed with San Antonio Water System, San Antonio River Authority, the City of Boerne, the City of Fair Oaks Ranch, the City of Bulverde, Tapatio Springs Resorts/Kendall Water Utility, Cordillera Ranch and Johnson Ranch. Proceedings in eminent domain are necessary to acquire certain properties for the Western Canyon Regional Treated Water Supply Project. Efforts to negotiate for the acquisition of these properties have been unsuccessful. Upon motion by Director Grier, seconded by Director Wilson, the Board unanimously approved a Resolution by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the Western Canyon Regional Treated Water Delivery Project or System in connection therewith, over, across, upon and under certain privately owned real properties; authorized all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declared further negotiations futile; ratified and affirmed all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of GBRA to acquire such property interests; authorized all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the XLIX 5/18/05 111

14 necessary interests in real property; declared the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid. A copy of the Resolution is attached and made a part of these minutes. The Chairman then called for Action Item 13 - Consideration of and possible action approving a Resolution by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the Western Canyon Regional Treated Water Delivery Project or System in connection therewith, over, across, upon and under certain privately owned real properties; authorizing all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declaring further negotiations futile; ratifying and affirming all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of GBRA to acquire such property interests; authorizing all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the necessary interests in real property; declaring the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid; said properties to be identified to wit: Tract J-3 Thomas Anthony Wirth, Jr., Clark Pennington XLIX 5/18/05 112

15 Wirth, Holly Marie Hindt, Brian Ray Hindt, Lawrence Anthony Hindt, Sandra Hindt Dibrell, Ferdinand Leo Wirth, III, Lisa Wirth Brown, Carol Lee Wirth, as Custodian for Catherine Montague Stewart under the Texas Uniform Gift to Minors Act; Thomas A. Wirth, Sr., as Custodian for Katherine Elizabeth Wirth under the Texas Uniform Gift to Minors Act; Thomas A. Wirth, Sr., as Custodian for Emily Perryman under the Texas Uniform Gift to Minors Act; and Thomas A. Wirth, Sr., as Custodian for Laura Lynn Wirth under the Texas Uniform Gift to Minors Act, being approximately.479 acre of permanent easement and.453 acre of temporary easement, and being out of a acre tract as recorded and conveyed to Wirth Heirs Joint Venture in Document Number of Official Records of Comal County, Texas, out of the Guadalupe Herrera Survey No. 192, Abstract No. 206 of Comal County, and the Agapito Gaytan Survey No. 94, Abstract No. 174, attached as Exhibit A; and Tract J-3A_Thomas Anthony Wirth, Jr., Clark Pennington Wirth, Holly Marie Hindt, Brian Ray Hindt, Lawrence Anthony Hindt, Sandra Hindt Dibrell, Ferdinand Leo Wirth, III, Lisa Wirth Brown, Carol Lee Wirth, as Custodian for Catherine Montague Stewart under the Texas Uniform Gift to Minors Act; Thomas A. Wirth, Sr., as Custodian for Katherine Elizabeth Wirth under the Texas Uniform Gift to Minors Act; Thomas A. Wirth, Sr., as Custodian for Emily Perryman under the Texas Uniform Gift to Minors Act; and Thomas A. Wirth, Sr., as Custodian for Laura Lynn Wirth under the Texas Uniform Gift to Minors Act, being approximately acre of permanent easement and.799 acre of temporary easement, and being out of a acre tract as recorded and XLIX 5/18/05 113

16 conveyed to Wirth Heirs Joint Venture in Document Number of Official Records of Comal County, Texas, out of the Guadalupe Herrera Survey No. 192, Abstract No. 206 of Comal County, and the Agapito Gaytan Survey No. 94, Abstract No. 174, attached as Exhibit B ; and J-3B Thomas A. Wirth, being approximately.608 acre of permanent easement and.387 acre of temporary easement, and being out of a acre tract as recorded and conveyed to Thomas A. Wirth in document number of Official Records of Comal County, Texas, out of the Guadalupe Herrera Survey No. 192, Abstract 206, of Comal County, Texas, attached as Exhibit C. Water supply agreements for treated water service by GBRA from the Western Canyon Regional Treated Water Supply Project have been executed with San Antonio Water System, San Antonio River Authority, the City of Boerne, the City of Fair Oaks Ranch, the City of Bulverde, Tapatio Springs Resorts/Kendall Water Utility, Cordillera Ranch and Johnson Ranch. Proceedings in eminent domain are necessary to acquire certain properties for the Western Canyon Regional Treated Water Supply Project. Efforts to negotiate for the acquisition of some of these properties have been unsuccessful. The Board was informed that a settlement has been reached on J-3B Thomas A. Wirth, being approximately.608 acre of permanent easement and.387 acre of temporary easement, and being out of a acre tract as recorded and conveyed to Thomas A. Wirth in document number of Official Records of Comal County, Texas, out of the Guadalupe Herrera Survey No. 192, Abstract 206, of Comal County, Texas, and staff requested the tract be removed from the Resolution. Upon motion by Director Grier, XLIX 5/18/05 114

17 seconded by Director Schlather, the Board unanimously approved a Resolution, as amended, by the Board of Directors of Guadalupe-Blanco River Authority declaring a public necessity for the acquisition of certain water pipeline easements and temporary construction easements and certain fee estates for the Western Canyon Regional Treated Water Delivery Project or System in connection therewith, over, across, upon and under certain privately owned real properties; authorized all appropriate action by the General Manager, staff, and retained attorneys and engineering and technical consultants in the institution and prosecution of condemnation proceedings to acquire any such needed fee estates and easements and temporary construction easements and related rights of ingress and egress that cannot be acquired through negotiation; declared further negotiations futile; ratified and affirmed all acts and proceedings heretofore done or initiated by employees, agents, and attorneys of GBRA to acquire such property interests; authorized all other lawful action necessary and incidental to such acquisitions or eminent domain proceedings to survey, specify, define, and secure the necessary interests in real property; declared the sections of the Resolution to be severable one from the other in the event any section of this Resolution is determined to be invalid. A copy of the Resolution as amended is attached and made a part of these minutes. Chairman Schneider restated for the record that the GBRA Board is extremely sensitive to personal property rights and that the GBRA staff makes every effort to negotiate a settlement before requesting authorization to initiate condemnation proceedings. XLIX 5/18/05 115

18 The Chairman called for Action Item 14 - Consideration of and possible action authorizing the General Manager to negotiate and enter into a contract with the lowest responsible bidder or reject all bids for the IH-35, Phase 3 Water Transmission Project. Bid documents and specifications were developed and properly advertised. Bids were received from Key Enterprises, Inc., Lewis Contractors, Inc., S.J. Lewis Construction, and Keystone Construction. Bids were publicly opened May 6, Upon motion by Director Gary, seconded by Director Pagel, the Board unanimously authorized the General Manager to enter into a contract for $3,927, with Key Enterprises, of Austin, Texas, the lowest qualified bidder for the construction of the IH-35 Project-Phase 3, Water Transmission Main and to approve a five percent (5%) contingency fee ($196,368.65) to be utilized by staff for unknown items that may occur during construction. Total authorization is for $4,123, Next, the Chairman called for Action Item 15 - Consideration of and possible action authorizing the General Manager to negotiate and enter into a contract with the lowest responsible bidder or reject all bids for the Dunlap Wastewater Treatment Plant 0.95 mgd expansion. Due to the growth in the area southwest of New Braunfels, an expansion of the Dunlap Wastewater Treatment Plant is required. The existing 0.16 MGD plant capacity must be expanded to 0.95 MGD to handle GBRA s contract with Legend Pond Subdivision developer and to provide for future growth. GBRA has received the draft permit for the treatment plant and anticipates receiving the final permit within 9 weeks. GBRA has voluntarily asked for a phosphorus limitation within the permit. The engineering consultants, Turner, Collie and Braden, XLIX 5/18/05 116

19 completed plans and specifications in March and the Request for Bids was published on April 11, Seven general contractors requested plans and specifications. On May 5, 2005, bids were opened with 3 contractors submitting bids. The staff recommended the construction contract be awarded to Bryan Construction Company and accept their Base Bid plus alternates 1, 2 and 4 for a total contract amount of $3,319, Alternate Bid Item 3, Sludge Dewatering Facility, can be delayed for several years. Alternate Bid Item 5 will not be accepted. Upon motion by Director Gary, seconded by Director Wilson, the Board unanimously awarded the construction contract for the GBRA Dunlap Wastewater Treatment Plant 0.95 Expansion to the lowest responsible bidder, Bryan Construction Company of Bryan, Texas, in the amount of $3,319, The Chairman called for Action Item 16 - Consideration of and possible action authorizing the General Manager to negotiate and enter into a contract with the lowest responsible bidder or reject all bids for the San Marcos Pipeline - Raw Water Transmission Pipeline Relocation. Mr. Randall Morris is developing the Cottonwood Creek Subdivision approximately five miles south of the City of San Marcos on Highway 123. The construction of a new street, Monterrey Oaks, will cross the existing GBRA/San Marcos Raw Water Transmission Pipeline. To accommodate the crossing, the 30-inch diameter pipeline must be lowered five to six feet. GBRA has agreed to relocate the pipeline provided Mr. Morris pays for all engineering and construction costs. Bids were provided to Mr. Morris for acceptance or rejection. Funds for the construction will be placed into an escrow account or a Letter of Credit XLIX 5/18/05 117

20 provided prior to construction. Construction documents were completed in April and an Invitation to Bid published. Bids were publicly opened on May 17, Upon motion by Director Gary, seconded by Director Thomas, the Board unanimously awarded the GBRA San Marcos Pipeline Raw Water Transmission Pipeline Relocation to Lewis Contractors of Austin, Texas, the lowest responsible bidder, in the amount of $157,500, contingent upon acceptance of the bid by the developer. The Chairman called for Action Item 17 - Consideration of and possible action adopting a Resolution in support of the recommendations of the Regional Wastewater Facility Planning Study, Eastern Hays County, Texas. GBRA and Hays County obtained a Texas Water Development Board Grant to perform a Regional Wastewater Feasibility Study for Eastern Hays County, Texas. The firm of PBS&J, the selected consultant, performed the study and ascertained the current land use, development, and population densities in the study area, delineated areas to be served by wastewater treatment facilities and those that are currently being served by septic tanks, and investigated the benefits and opportunities for regionalization of wastewater treatment facilities. Mr. Keith Pyron of PBS&J gave a presentation on the study results. The final report recommends the development of a water quality protection plan that considers economic, environmental and policy aspects. The key elements of the plan include smaller regional facilities that minimize the cost of wastewater pumping and provide service to more locations; treatment of wastewater to a higher level than would normally be required for discharge to intermittent streams in the area; an emphasis on wastewater reuse to both minimize downstream effects on ponds and receiving creeks XLIX 5/18/05 118

21 and minimize potable water demands; and public operation of the regional facilities to provide a high level of confidence that the facilities will be well operated and maintained. Upon motion by Director Gary, seconded by Director Grier, the Board unanimously accepted the recommendations of the Regional Wastewater Feasibility Study for Eastern Hays County, Texas and adopted the Study. Next, the Chairman called for Action Item 18 - Consideration of and possible action authorizing the General Manager to complete negotiations and execute an Option Agreement with the Luling Foundation for the purchase of Water Appropriation Permit No A. GBRA is diverting and treating water for the cities of Luling and Lockhart under a water right owned by GBRA (Certificate of Adjudication ). Certificate authorizes GBRA to divert up to 2,800 acrefeet of water per year (2.5 mgd) from the San Marcos River at the Luling Water Treatment Plant. As the two cities grow, and if GBRA wants to maximize the long-term utility of the recently completed Luling-Lockhart Pipeline Project, GBRA will eventually need additional water rights. The capacity of the pipeline from Luling to Lockhart is approximately 1.5 mgd. Since 2002 GBRA has been discussing with the Luling Foundation the lease or purchase of the Foundation s water right (Water Appropriation Permit No A). The permit authorizes the Foundation to divert up 1,022 acrefeet of water per year (0.91 mgd) from the San Marcos River for municipal, industrial and agricultural (irrigation) purposes at five different diversion points, one of which is just upstream of GBRA s diversion point for the Luling Water Treatment Plant. The Board of Directors of the Foundation has decided to sell the water right to GBRA under XLIX 5/18/05 119

22 the terms of a Proposal Outline dated May 6, The purchase of this water right will provide a source of water for continued use for the City of Lockhart of the new pipeline, even after the City of Luling is fully utilizing the GBRA water rights currently supplying the Luling Water Treatment Plant. At some point an expansion of the Luling Water Treatment Plant would be required to treat all of the water available under the existing water right and the one GBRA would be purchasing from the Foundation. By executing an Option Contract, GBRA will be agreeing to file an application with the Texas Commission on Environmental Quality to amend the Foundation s water right so that water can be diverted at the Luling Water Treatment Plant. If GBRA is satisfied with the amended water right, GBRA would then enter into a lease-purchase agreement with the Luling Foundation. The amended water right would authorize GBRA to divert and treat at the Luling Water Treatment Plant up to 0.91 mgd of water (in addition to the current authorization of 2.5 mgd) for use for the Cities of Lockhart and/or Luling. Upon motion by Director Schlather, seconded by Director McLeroy, the Board unanimously authorized the General Manager to complete negotiations and execute an Option Agreement with the Luling Foundation for the purchase of Water Appropriation Permit No A. The Chairman then called for Action Item 19 - Consideration of and possible action ratifying the leases with BexarMet Water District and Canyon Lake Water Supply Corporation relating to the temporary supply of water by GBRA to the City of Bulverde and possibly other users. General Manager West briefed the Board on negotiations with BexarMet Water District and Canyon Lake Water Supply Corporation XLIX 5/18/05 120

23 relating to the lease of pipeline capacity. Upon motion by Director Grier, seconded by Director Gary, the Board unanimously ratified the form of proposed leases with BexarMet Water District and Canyon Lake Water Supply Corporation relating to the temporary supply of water by GBRA to the City of Bulverde and possibly other users. A copy of the leases are attached and made a part of these minutes. The Chairman called for Action Item 19a Consideration of and possible action authorizing the General Manager to complete settlement negotiations with BexarMet Water Supply District and Canyon Regional Water Authority with final agreements to be ratified by the GBRA Board in June No action was taken at this time. Next, the Chairman called for Action Item 20 - Consideration of and possible action authorizing the General Manager to evaluate actions of the 79 th Legislature, Regular Session, affecting the Lower Guadalupe Water Supply Project and to take all actions the General Manager deems necessary or appropriate in response to such Legislative actions. A time line of historic legislative and water related activities was discussed including Senate Bill 1477, a Memorandum of Understanding with San Antonio Water System and San Antonio River Authority, the drought of 1996, Senate Bill 1 and the State water planning process, the Region L Plan, a contract entered into in May 2001 with San Antonio Water System and San Antonio River Authority, Senate Bill 2 adopted in May 2003, and Senate Bill 3 pending in the Legislature. General Manager West briefed the Board on a side-by-side XLIX 5/18/05 121

24 comparison of Senate Bill 1477 to the proposed Article 5 of Senate Bill 3. Discussion was also had regarding the groundwater section of Senate Bill 3. No action was taken. The Chairman called for Discussion Item 21 - Discussion regarding Base Flow Report, Water Quality Index, and condition of the Guadalupe Basin. The reports were discussed. Next, the Chairman called for Discussion Item 22 - Discussion regarding the Service Contract for operation of the San Marcos Water Treatment Plant. Discussion was had regarding a service contract between GBRA and the City of San Marcos for operation of the San Marcos Water Treatment System, including the water treatment plant and the City s wells. GBRA staff has met with the City of San Marcos to discuss the contract. The service contract will be presented for approval at the June or July Board meeting. The Chairman then called for Discussion Item 23 - Discussion regarding economic development activities. Tommie Streeter-Rhoad made a presentation to the Board on GBRA s economic development activities. The Board was briefed on rural development activities in the following counties: Kendall County - work with City and County Officials, Greater Boerne Chamber of Commerce, Kendall County Fair Association, Cibolo Nature Center, and an Economic Development Summit; Comal County - Bulverde/Spring Branch Library, Bulverde/Spring Branch Chamber of Commerce, Taste of the Hills, Jumbo Evans Sports Park, St. Jude s Ranch for Children, Canyon Lake Chamber of Commerce, Randolph Air Force Base Fire Works, CRRC, Habitat for Safe Seniors, Greater New Braunfels Chamber of Commerce, XLIX 5/18/05 122

25 annual Legislative Conference, Sophienburg Museum, Comal County Sheriff s Posse, and Comal County Public School Foundation; Hays County - Wimberley Chamber of Commerce, Village of Wimberley, Blue Hole Project, San Marcos Chamber of Commerce, and Hays County Youth Livestock Association; Caldwell County - work with City and County Officials at the City of Lockhart and Luling, Lockhart Chamber of Commerce, Chisholm Trail Round-Up, Luling Chamber of Commerce, Luling Watermelon Thump, Luling Area Oil Museum, Luling Economic Development Corporation, and Luling Main Street Program; Guadalupe County - Seguin Chamber of Commerce, Buck Fever, Seguin Economic Development Corporation, Seguin Main Street Program, The Silver Center (VA Clinic), Hospice of Guadalupe Valley Hospital, Guadalupe County Fair Association, and Guadalupe County Youth Livestock Show; Gonzales County - Belmont Volunteer Fire Department, work with City and County Officials, Gonzales Chamber of Commerce, Come and Take It Association, Gonzales Historic Homes Association, Gonzales Learning Center, Gonzales Foster Children s Christmas, and Independence Park; DeWitt County - Cuero Chamber of Commerce, Cuero Senior Citizen s Center, Chisholm Trail Heritage Museum, DeWitt Technology Center, DeWitt County Historical Association, Dewitt and Cuero Development Corporation, and Yoakum City Officials; Victoria County - Victoria Chamber of Commerce, Macaronifest, Economic Development Corporation, Riverside Stadium, Victoria County Sheriff s Department, Victoria Police Department, and University of Houston at Victoria; Calhoun County - Port Lavaca Chamber of Commerce, Crabfest, Port Lavaca Economic Development Corporation, and Calhoun County Fair XLIX 5/18/05 123

26 Association; and Refugio County - The Wetlands Connection Center, Refugio Chamber of Commerce, Community Development Foundation, City of Tivoli officials, and City of Austwell officials. The Board was also informed on several special projects including the Texas Water Safari, Zedler Mill, Zedler Mill Classic Texas Canoe Racer s Association, MTV music video at Zedler Mill, the Canyon Reservoir Gorge Project, the Roland and Viola Bindseil Park, and the Fannin Volunteer Fire Department. The Board was informed of several prospective projects including a river trail, tree farm, and aluminum can refund program. Next, the Chairman called for Discussion Item 24 - Discussion regarding GBRA s Our Day to Shine and Relay for Life. Connie Rothe made a presentation to the Board regarding GBRA s Our Day to Shine. The Cuero Senior Citizen s Center was the 2005 project. The Center serves over 400 people in the community. The Board was also briefed on the Rely for Life 2005 event. The Chairman called for Items from the General Manager 25 - Discussion regarding the 79 th Legislative Session. General Manager West informed the Board on legislative activities including proposed water bills and groundwater issues. Next, the Chairman called for Items from the General Manager 26 - Discussion regarding Senate Bill 1 planning and water resource issues. The Board was briefed on a schedule of Plan activities and upcoming public hearings. The Chairman then called for Items from the General Manager 27 - Discussion regarding the Edwards Aquifer Authority and South Central Texas Water Advisory Committee. There was no discussion on this item. XLIX 5/18/05 124

27 The Chairman called for Items from the General Manager 28 - Status report regarding the Guadalupe-Blanco River Trust. The Board was informed on activities of the Trust including a Land Conservation Workshop held in Kerrville, the Whitmire Project activities, and the next meeting scheduled for June 7, The Chairman recessed the open meeting at 12: 25 p.m. The Chairman closed the open meeting and convened the meeting in Executive Session at 12:45 p.m. The meeting reconvened in open session at 2:15 p.m. The Chairman called for Action Item 19a Consideration of and possible action authorizing the General Manager to complete settlement negotiations with BexarMet Water Supply District and Canyon Regional Water Authority with final agreements to be ratified by the GBRA Board in June Upon motion by Director Grier, seconded by Director Schlather, the Board unanimously authorized the General Manager to complete settlement negotiations with BexarMet Water District with final agreements to be ratified by the GBRA Board of Directors. There being no further business to be brought before the Board, the meeting was adjourned, subject to call by the Chairman. Chairman Secretary XLIX 5/18/05 125