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Cibolo Valley Local Government Corp. Special Joint Workshop Meeting City of Cibolo & City of SchertzENT CORP SPECIAL JOINT WORKSHOP MEETING CIBOLO VALLEY LOCAL GOVERNMENT CORPORATION CITY OF SCHERTZ AND CITY OF CIBOLO CITY COUNCIL 1400 Schertz Parkway, Building #5 - Blue Bonnet Hall Schertz, Texas 78154 January 30, 2020 6:30 PM A ligbt dinner will be rented at 6:00 p.m. 1. Call to Order —Justin Murray, President a. City of Cibolo b. City of Schertz 2. Welcome/Opening Remarks — Slosh Boyle, Mayor of the City of Cibolo & Ralph Gutierrez, Mayor of the City of Schertz 3. Introductions — Justin Murray, President 4. CVLGC Carrizo Project— Justin Murray, President; Amber Briggs Beard, Executive Director, and John Winkler, Walker Partners 5. Summary, Recommendations & Discussions —Justin Murray, President Executive Session Recommended 6. Executive Session: Executive Session pursuant to Texas Gov't. Code Sections 551.071 and 551.072 to discuss items 4 & 5 above, as necessary 7. Consider and Take Action as a Result of Agenda #6 8. Adjournment The listing of an agenda item as a matter to be discussed in open session is not intended to limit or require discussion of that matter in open session if it is otherwise appropriate to discuss the matter in executive session, such as consultation with its attorneys (fex. Govt Code, section 551.071), deliberations regarding real estate (rex. Gov't Code, section 551.072), deliberations regarding a specific officer or employee (Section 551.074), deliberations regarding security (Tex. Gov't Code, section 551.076), and information relating to rick or vulnerability assessment (Tex. Gov't Code, section 418.183(1)). If, during the discussion of any agenda item, a matter is raised that is appropriate for discussion in executive session the Board may, as permitted by law, adjourn into executive session to deliberate on the matter. The posting of an agenda item as a matter to be discussed in executive session is not intended to limit or require discussion of that matter in executive session. The Board may discuss in open session any matter for which notice has been given in this notice of open meeting, including an agenda item posted for executive session. In no event, however, will the Board take action on any agenda item in executive session, whether it be posted for open or executive session discussion. 108 W. MOUNTAIN, SEGUIN. TEXAS 7815.5 PHONE: (630)401-2409 FAX: (639)401-2320 f1►ily,41 Justin Murray, President (CVLGC) Amber Beard, Executive Director (CVLGC) John Winkler, Engineering Consultant (Walker Partners) Organizational Structure Board Members City of Schertz: Justin Murray, Brian Edgington City of Cibolo: Garth Coursen, Lesley Pedde Ex -Officio Members City of Schertz: Michael Dahle City of Cibolo: Ted Gibbs CVLGC Staff Amber Beard, Executive Director Jennifer Jones, Administrative Manager Justin Murray, President CVLGC Consultants: Accounting: Jennifer Reininger, Reininger Business Solutions LLC Engineering: John Winkler, Walker Partners Legal: Art Rodriguez, Russell Rodriguez Hyde & Bullock, LLP Hydro -geological: William B. Klemt Water Lease Services: Rene Moulinet Jr., HRM Land Acquisition Solutions Historical Timeline • 2011: CVLGC formed with the following participating cities: Cibolo, Converse, Schertz, Seguin and Selma • 2012-2013: Seguin and Selma withdrew from CVLGC, the Regional Water System Master Plan started • 2014: Regional Water System Master Plan was finalized, Converse withdrew from CVLGC, Option Agreements for water leases began 2015- 2017: CVLGC Carrizo Project added to Region L Plan (TWDB State Water Plan), securing water leases continued • 2017-2019: 10,998.13 acre-feet/yr. water rights secured, preliminary well sites selected Justin Murray, President History The following water source options were evaluated: • Develop a stand alone project wholly owned and operated by CVLGC • Develop a hybrid project, where portions of the system are owned by CVLGC and portions of other systems are used • Purchase treated wholesale water from another entity A comparison was performed of existing water supplies to future population demands of CVLGC Justin Murray, President o LGC SAN 1. _. Nola: Local Cmlxo for / Gonzales County WSC VVV Not Shl . 7r11 d FYicz ino rnrri7n t Texas PUA M History 5 potential groundwater sources were considered: ■ SSLGC Guadalupe Project-SSLGC was developing up to 6,500 acre feet of groundwater from the Carrizo-Wilcox Aquifer in southeastern Guadalupe County and was willing to sell their interest in the Guadalupe County project ■ Carrizo Aquifer -There was potential to develop a well field in Wilson County from the Carrizo Aquifer. Option 1 was for CVLGC to develop a stand alone project and Option 2 was for CVLGC to develop a joint -use project with SSLGC ■ Wilcox Aquifer - While the Wilcox Aquifer is not as prolific as the Carrizo Aquifer, it was highly underutilized in the study area due to water quality concerns ■ TWA Carrizo Project -Texas Water Alliance (TWA) which is now Alliance Regional Water Authority (ARWA), was permitted to construct a transmission pipeline through the study area with excess water available ■ RWA Brackish Wilcox Water - Regional Water was a proposed regional system in the Wilcox Aquifer in Wilson county with plans to construct a pipeline through the study area. Justin Murray, President History From report dated October 21, 2014 The above values may no longer be accurate due to the date of report Justin Murray, President 10.1.1 Cost Summary QuantityTable Option SSLGC Guadalupe 6,500 S410 1 1 5 7 C'amzoOption 1 10.000 S5 is 4 1 10 C'ar[izo Option ? 10,000 S4.22 I4 3 9 Wilcox Brackish Water 5000 55.02 3 4 3 10 TWACartizo 15000 S5.89 > 3 4 1' RWA Brackish Water 11.600 S6.54 6 5 5 16 The above values may no longer be accurate due to the date of report Justin Murray, President History Summary The SSLGC Guadalupe Project was initially offered for sale to CVLGC, as the project was further evaluated, both member entities of SSLGC did not agree to sell their interest in the project. Therefore a second option to purchase water from the project was assessed by CVLGC. After the assessment, the Guadalupe Project was the best scoring project, however the Guadalupe Project lacked any ownership of the assets. The City of Cibolo and the City of Schertz both desired to have ownership in the water project. Due to lack of ownership in the Guadalupe project, the next best scoring project was selected, Carrizo Option 2 which was the development of a joint -use Carrizo CVLGC/SSLGC project. Justin Murray, President CCN Discussion 1 i John Winkler, Walker Partners GREEN VPLLFY SGG y 6 '; • I \ Corral \ \\'� � >' . , � ✓� , fes,-t�,^. ,,r ,. ✓ . �. ` ' .%yrfi �• Y nrvoc CIM,G f Be%2! GREEN VALLEY SLY) L l `\ 1✓� �,1 "\`.` ' �. �^ c, �j 1, 6000 ]000 0 a 8.000 ' J './'l ` �w.•cwrwawu t k.^.....a.f �.�, ..o r..ra�w., 71 Schertz Historical Annual Water Use 7,000 5,250 CD U. 3,500 U 1,750 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2016 2019 Year Water Supply — Schertz Usage John Winkler, Walker Partners Cibolo Historical Annual Billed Consumption 6,000 5,000 4,000 v m y 3,000 U Q 2,000 1,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Water Supply — Cibolo Usage John Winkler, Walker Partners Projections by the City of Cibolo 8,000 6,000 d d 4,000 2,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 M Water under Contract — TCEQ Req'd Reserves (0.42) — Consumption (wllosses) TCEQ Req'd Reserves (0.60) John Winkler, Walker Partners Combined Water Supply Projections Year City of Cibolo Available Supply (ac-ft/yr) City of Cibolo Surplus or Deficit (ac-ft/yr) City of Schertz Available Supply (ac-ft/yr) City of Schertz Surplus or Deficit (ac-ftlyr) 0.42 gpm 0.6 gpm dim 0.6 gpm 2020 4,983 3,106 2,240 6,704 666 2030 4,983 2,648 1,730 9,140 1,640 2040 4,983 2,383 1,360 9,140 640 2050 4,983 1,883 -1,850 9,140 -660 2060 4,983 1,383 -2,700 9,140 -1,660 2070 4,983 783 -3,900 9,140 -2,490 John Winkler, Walker Partners Schertz & Cibolo - Supply and Demand Projections Based on TCEQ Requirements 12,000 } LL 8,000 4,000 a John Winkler, Walker Partners 00 00 00 00 00 00 00 2020 2030 2040 2050 2060 2070 � Schertz Demand Cibolo Demand --Schertz Supply --Cibolo Supply Schertz And Cibolo Water Demand Projections 2014 vs 2020 16,000 12,000 `a d 8,000 a ' 4,000 d V 7 4,000 1 2020 John Winkler, Walker Partners 0 10 2030 •Schertz 2014 2040 —Schertz 2019 2050 •Cibolo 2014 2060 Cibolo 2019 2070 Schertz Annual Demand 20,000 15,000 d y 10,000 5,000 Gonzales/Guadalu 0 Gonzales/Guadalupe/Wilson 2010 2!]2G 2040 2050 2060 2070 Year � Water Supply —CVLGC Projection —TWDB Projection John Winkler, Walker Partners Cibolo Annual Demand 20.000 15.000 v L 10.000 5,000 2010 2020 2030 2040 2050 2060 2070 Year � Water Supply — CVLGC Projection —TWDB Projection John Winkler, Walker Partners i L T C 0 (Q 41 ` G im O g, f � rJ N � J Q: > 0 ti o .N - a - EE 'F ii Ti /. Amber Beard, Executive Director v fl00twr( J, Over 90% completion- easement acquisition for the 36" Parallel Pipeline � QICCAYpIl1Ea Gbolo Valley Lo .ovemmenl Corp, WILSNr� Project - Current 10,998.13 acre-feet/yr. water rights secured • Water leases secured with 89 landowners involving 158 tracts of land • Water lease payments total $274,953 annually • Preliminary sites for 6 wells identified Amber Beard, Executive Director Strategy • The City of Cibolo is currently projected to need additional water in the 2030 decade to satisfy TCEQ requirements • The City of Schertz is currently projected to need additional water towards the end of the 2030 decade • CVLGC will continue to evaluate the CVLGC Carrizo Project in terms of future water needs/project timing and assess other cost-effective alternatives to meet demand • CVLGC will work towards executing a contract with SSLGC to treat and transport water and the option agreements for the project's well sites will be secured when project timing is determined Amber Beard, Executive Director Project Summary • Each city has contributed $100,000 to the project for FY2019-20 • Seeking agreement that maintaining the current path on this project until needed is the direction council's want to take • Next steps: ■ Periodically evaluate the economics of this project vs. other projects ■ Minimize costs while preserving the investment • Look for potential customers which may accelerate timing/reduce idle investment Amber Beard, Executive Director