victoria county groundwater conservation...

Victoria County Groundwater Conservation District

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Directors:

Mark Meek

President

Jerry HrochVIce-President

Barbara DIetzel

SecretaryThurman Clements

Kenneth Eller

THE STATE OF TEXAS

VICTORIA COUNTY

The Board of Directors of the Victoria County Groundwater Conservation Districtconvened a meeting at the Dr. Pattie Dodson Health Center, 2805 N. Navarro St., Room108, Victoria, Victoria County, Texas, 77901 on August 17, 2018 at 9:00 AM.

Meeting Attendance:Precinct 1:

Precinct 2:

Precinct 3:

Precinct 4:

At Large:General Manager:Legal Counsel:

Mr. Jerry Hroch, Vice President PresentMr. Thurman Clements, Jr., Director PresentMrs. Barbara Dietzel, Secretary PresentMr. Mark Meek, President PresentMr. Kenneth Eller, Director PresentMr. Timothy Andruss PresentMr. James Allison Present

Agenda Items -

1. Call the meeting to order and welcome guests.

Meeting Discussion: Mr. Meek called the meeting to order at 9:00 AM.The following guests were present: Mr. Kevin Janak and Ms. Anna Daniels.

Board Action: None.

2. Receive public comments.

Meeting Discussion: None.

Board Action: None.

3. Consideration of and possible action on matters related to GroundwaterManagement including the permitting efforts and activities of the District.

3.2 PRC-20180727-10 - ADW-20180702-01/AOW-20180702-02

Transcontinental Gas Pipeline Company LLC

2805 N. Navarro St. Suite 210, Victoria. TX 77901, Phone (361) 579-6863, FAX (361) 579-0041VCGCD Minutes - August 17, 2018 of 11


Meeting Discussion: Mr. Andruss explained that Mr. Doug TIse forTranscontinental Gas Pipeline Company, LLC seeks, under applications ADW-20180702-01 and AOW-20180702-02 a drilling permit and production permitauthorizing construction of a well and the production of groundwater forcommercial operations, drinking water, and sanitary uses at rates not to exceed25 gallons per minute or 10 acre-feet per year. The proposed well will be locatedon a 60-acre tract of land near the intersection of Highway 185 and Bayer Road inVictoria County, Texas.

The applications associated with this permitting request case are consideredadministratively complete and contain sufficient information evaluate the requestrelative to the Rules of the District. Provided the resulting permits are properlyconditioned, the drilling and proposed operation of the subject well would satisfythe requirements as established within the Rules of the District.

The District posted a public notice regarding this permitting case at the CountyClerk's Office on August 6, 2018. The District published a public notice for thispermitting case on August 7, 2018, in the Victoria Advocate Newspaper. TheDistrict has not received notice of intent to contest the permitting case as ofAugust 16, 2018.

Board Action: Mr.Clements moved to 1) cancel the permit hearing and proceedwith the case as an uncontested permit request; and 2) issue a drilling permitto Transcontinental Gas Pipeline Company, LLC under application ADW-201080702-01 with the requirement that the proposed well be offset from thenearest property line by 50 feet and 3) issue a production permitto Transcontinental Gas Pipeline Company, LLC under application AOW-20180702-02 with the following conditions in accordance with the Rules of theDistrict:

Authorized Purpose of Use: commercial operations, drinking water, and sanitaryuses;

Authorized Maximum Rate of Production per Minute: 25 gallons per minute;Authorized Maximum Rate of Production per Year: 10 acre-feet per year;Expiration Date: July 31, 2023. Mr. Eller seconded the motion. The following votewas made:

Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

4. Consideration of and possible action on matters related to GroundwaterProtection including complaints, investigations, violations and enforcementrelated to disposal and injection wells, contamination and waste, and permitting.



4.1 - Review of Protested Fluid injection Permitting CasesMeeting Discussion: Mr. Andruss explained the District currently has six activeprojects related to the evaluation of potential risk to groundwater resources byfluid injection (RRC Injection Well Applications) open.

Mr. Wickham is presently evaluating two fluid injection permit applications:

1. VCGCD - Adm - PPM - Consultant Service Request - PRJ-20180424:1445 -

CSR-20180720:1638 - Golder Associates - Evaluate Potential Risk re FluidIniection Frostwood Enerav. McFaddin(3600) Well 156 - 48508 - Active

2. VCGCD - Adm - PPM - Consultant Service Reouest - PRJ-20180424:1521 -

CSR-20180731:0829 - Golder Associates - Evaluate Potential Risk re Fluid

Iniection Frostwood Enerov. Bloominqton (4200 Catahoula). Stubblefleld. Well

3R - 48599 - Active

Board Action: None.

4.2 - Enforcement Case EC-20180706:1502

Meeting Discussion: Mr. Andruss explained that the District has identified aninstance in which a water well driller appears to have failed to provide the Districtwith notice of intent to place casing as required by the Rules of the District. Inparticular, it appears that Mr. Kenneth Friedel of Friedel Drilling Company appearsto have failed to provide sufficient notice of intent to place the casing in well NW-000998 drilled in February 2017 in accordance with item 4 of Rule 4.2: PermittingPolicies and Procedures relate to Drilling Permits based on the evidence gatheredas part of investigation INV-20170223-01.

This is the only potential violation related to item 4 of Rule 4.2 associated with Mr.Friedel to occur since April 15, 2016, the date the requirement to provided noticewas incorporated into the Rules of the District.

Board Action: Mr. Eller moved to 1) to find that Mr. Kenneth W. Friedel violatedthe Rules of the District and offer to settle the violation without fine contingent onacknowledgment of the violation by Mr. Friedel. Mr. Clements seconded themotion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

4.3 - Review of Active Groundwater Protection Investigations

2805 N. Navarro St. Suite 210, Victoria, TX 77901, Phone (361) 579-6863, FAX (361) 579-0041VCGCD Minutes - August 17, 2018 of 11


Meeting Discussion: Mr. Andruss explained that the District presently has 6active investigation related to possible groundwater contamination or water qualitydegradation.

An investigation related to a property on FM 616 was recently opened in responseto iandowner expressing concern regarding discolored water found in bathroomfixtures and captured weil water with unidentified suspended particles producedfor his house well. The District has working to gather information to confirmcontamination of the groundwater at the site. The matter has also beeninvestigated by the Railroad Commission which concluded that there was noevidence of impacts on the water well caused by oil and gas activity. Thelandowner has shared water quality lab reports with the District as well as theinvestigation report from the Railroad Commission as well as submitted aninformation request for water quality information the District has gathered as partof the investigation.

Board Action: Mr. Eller moved to authorize the General Manager to fon^/ard theinvestigation data to Mr. Wickham for his review and recommendation regardingadditional investigation to perform, if any. Mr. Clements seconded the motion. Thefoilowing vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Ciements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

5. Consideration of and possibie action on matters reiated to GroundwaterMonitoring.

5.1 - Drought MonitoringMeeting Discussion: Mr. Andruss explained the U.S. Drought Monitor, producedthrough a partnership between the National Drought Mitigation Center at theUniversity of Nebraska-Lincoln, the United States Department of Agriculture, andthe National Oceanic and Atmospheric Administration, indicates that no portion ofVictoria County is experiencing dry or drought conditions as of August 14, 2018.

Board Action: None.

6. Consideration of and possibie action on matters reiated to GroundwaterConservation.

6.1 - RAP WaterWise Report

2805 N. Navarro St. Suite 210. Victoria, TX 77901, Phone (361) 579-6863, FAX (361) 579-0041VCGCD Minutes - August 17, 2018 of 11


Meeting Discussion: Mr. Andruss explained that on July 20, 2018, the Districtreceived the summary report developed by Resource Action Programs (RAP) forthe 2017-2018 school year. Three schools participated in the program with acombined participant count of 176 persons during the 2017-2018 schoolyear. The program continues to report positive metrics related to implementationand awareness of conservation measures and implementation impacts.

Board Action: None.

7. Consideration of and possible action on matters related to GroundwaterResource Planning including Groundwater Management Area 15 Joint Planningand regional water planning.

7.1 - Report on Water Planning MeetingsMeeting Discussion: Mr. Andruss explained that Groundwater ManagementArea 15 met on July 12 in Goliad. During the meeting, TWDB informed themembers that the internal team tasked with revising the model has been reformedand anticipates completing the model revision prior to the deadline to adopt a newDFC. The members of the GMA selected LRE Water as the preferred respondentto the GMA 15 request for proposal for technical services to support thedevelopment of a new DFC.

The next meeting of South Central Texas Regional Water Planning Group(Region L) is November 1, 2018. The planning group will begin the time-consuming processes of evaluating water management strategies for the 2021regional water plan at the November 2018 meeting.

Board Action: None.

7.2 - GBRA Permit Amendment

Meeting Discussion: Mr. Andruss explained that on July 30, 2018, the Districtreceived a notice of hearing from TCEQ regarding a proposed amendment of asurface water permit. Certificate of Adjudication No. 18-3863. The proposedamendment is extensive including changes to the authorized uses, places of use,addition of an exempt interbasin transfer, and addition of an 247-mile diversionsegment from Comal County to Calhoun/Refugio Counties. A preliminary hearingwill be conducted by SOAH on August 29, 2018 in Austin, Texas.

Board Action: None.

8. Consideration of and possible action on matters related to Groundwater Policyincluding the Management Plan of the District and the Rules of the District.




Board Action: None.

9. Consideration of and possible action on matters related to GroundwaterResearch.


Board Action: None.

10. Consideration of and possible action on matters related to Program andProject Management.


Board Action: None.

11. Consideration of and possible action on matters related to PerformanceManagement including management goals and objectives of the District.


Board Action: None.

12. Consideration of and possible action on matters related to MeetingManagement including minutes of previous meetings.

12.1 - Minutes of Previous MeetingMeeting Discussion: Mr. Andruss explained that the minutes for the meetingheid on July 20, 2018, were sent to the board members prior to the meeting.

Board Action: Mr. Eller moved to accept and approved the meeting minutesfor July 20, 2018, as drafted. Mr. Clements seconded the motion. The followingvote was made:

Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Elier, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

13. Consideration of and possible action on matters related to FinancialManagement including the annual budget of the district, financial reports of thedistrict, bills and invoices of the district.

13.1 - Financial Reports and Records



Meeting Discussion: Mr. Andruss explained that the financial reports for July2018 have been compiled, reviewed, and sent to the board members prior to themeeting. All accounts reconcile with internal records. All expenditures are relatedto business of the District and properly authorized.

Board Action: Mr. Eller moved to accept and approve the financial records forJuly 2018. Mr. Clements seconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith four (4) ayes and zero (0) nays, the motion passed.

13.2 - Unpaid Accounts PayabieMeeting Discussion: Mr. Andruss explained that the District has threeoutstanding accounts payable invoices for which the District has received thegoods and services billed for under the invoices.

Board Action: Mr. Eller moved to authorize the general manager to pay thefollowing items: VCGCD - Adm - FM - Accounts Payable - ACCTP-20180717-01 -$20.000.00 - FY2018 Huisache ET Study - U. 8. Geological Survey - Unpaid

VCGCD - Adm - FM - Accounts Payable - ACCTP-20180808-02 - $907.50 -

Barbara Dietzel - Unpaid

VCGCD - Adm - FM - Accounts Payable - ACCTP-20180808-03 - $885.00 -

Barbara Dietzel - Unoaid. Mr. Clements seconded the motion. The following votewas made:

Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary Not VotingPrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith four (4) ayes and zero (0) nays, the motion passed.

13.3 - FY19 Budget 2018 Tax Rate and Appraisal RoilMeeting Discussion: Mr. Andruss explained that on August 2, 2018, the Districtpublished the property tax rate notice for Tax Year 2018. The notice identified thefollowing tax rates for tax year 2018: Effective Tax Rate of $0.00865/$100 value,Rollback Tax Rate is $0.00934/$100 value. The notice inciuded an estimate ofunencumbered funds expected at the end of the fiscal year of $203,054 in theoperating fund and $2,158,212.

Following the publishing of the notice, a draft budget was developed. Theexpense budget request for fiscal year 2018 - 2019 was limited to ensure totalbudgeted expenses ($670,187.08) would not exceed budgeted revenue($682,598.95) with a projected $12,411.87 contribution to the Reserve Fund. See



page 26 of theVCGCD - Budget Request FY2019 - Budget Worksheet -20180816.pdf.

For the purposes of developing the management request, the budgeted taxrevenue during FY 2018 - 2019 Is $593,405.00 based on a tax rate of$0.00843/$100 value (I.e., 2017 Tax Rate). The balance of projected revenue Isderived from District Fees ($74,193.54) and Interest Income ($15,000.00).

The management request includes several notable components Including 1) acompensation step Increase for an aquifer monitoring technician, 2) 3% cost-of-llvlng adjustment for all employees based on the Bureau of Labor Statistics July2018 Consumer Price Index Report, 3) reduction of the District's health benefitcontribution rate, 4) the addition of election administration services to the list Itemsto which the reserve funds are committed, 5) a substantial reduction In the level ofbookkeeping support, and 6) no new scientific Investigations being Initiated duringthe fiscal year.

In addition, as part of the preparation of the management request, a review of theTODRS plan provisions for plan year 2019 was completed. Based on the review,a limited adjustment to the plan provisions related to retirement eligibility wouldIncrease the benefit value to staff as well as benefit the District by reducing theunfunded liability. Specifically, reducing the "Age 60 (Vesting)" retirementeligibility from 10 year to 5 years and reducing the "At Any Age" retirement from30 years of service to 20 years of service would reduce the unfunded actuarialliability from $7,893 to $5,966 without changing the total contribution rate. It IsImportant to recognize that a reduction to any retirement eligibility can not bereversed.

Board Action (1): Mr. Eller moved to adopt the management request for theFiscal Year 2018 - 2019 Budget as the District's Fiscal Year 2018 - 2019 Budgetby order. Mr. Hroch seconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara DIetzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

Board Action (2): Mr. Eller moved to adopt a tax rate for Tax Year 2018 equal tothe 2017 Tax Rate of $0.00843/$100 value by order. Mr. Clements seconded themotion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara DIetzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director Aye



With five (5) ayes and zero (0) nays, the motion passed.

Board Action (3): Mr. Eller moved to approve the 2018 appraisal roll. Mr.Clements seconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

Board Action (4): Mrs. Dietzel moved to approve a revision of the TCDRS planprovisions by reducing the "Age 60 (Vesting)" retirement eligibility from 10 year to5 years and reducing the "At Any Age" retirement from 30 years of service to 20years of service. Mr. Eller seconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director NayPrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith four (4) ayes and one (1) nay, the motion passed.

Board Action (5): Mr. Eller moved to authorize the Presiding Officer and GeneralManager to complete all tasks to implement the approved budgetary changes. Mr.Hroch seconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

14. Consideration of and possible action on matters related to elections includingagreements related to elections administration.

14.1 - General Elections

Meeting Discussion: Mr. Andruss explained that the time period to file anapplication for a position on the ballot for the upcoming general election will closeon August 31, 2018.

If the District receives more than one application for any one position, the Districtwill have contested race and will call the election by order.

If the District does not receive more than one application for any one position, theDistrict will not have a have a contested race and will cancel the election by order.

2805 N. Navarro St. Suite 210. Victoria, TX 77901, Phone (361) 579-6863, FAX (361) 579-0041VCGCD Minutes - August 17, 2018 of 11


At August 16, 2018, the District had not received more than one application forany one position.

Due to the regular meeting schedule of the District, the District's August meetingoccurs before the deadline for filing an application for a place on the ballot. Thenext regular meeting of the District is scheduled to occur on September 21,2018. Unless resolved during this meeting, the Board would need to convene aspecial meeting in early September to consider and approve an order eithercalling or cancelling the election.

In the event that a contested race exists, the District can either administer theelection or have the election administered by the Victoria County ElectionsAdministrator. In the past, the District contracted with the Victoria CountyElections Administrator to administer elections on the District's behalf. The

Victoria County Elections Administrator, Ms. Vicki Vogel, provided an agreementrelated to the administration of the upcoming general election for consideration bythe Board.

Board Action: Mr. Eller moved to 1) authorize the Board Secretary to certify tothe Board President whether a contested race exists and which races are

contested; 2) authorize the Board President to approve the necessary orders,including alternate orders, related to the calling and cancellation of the electionbased certification made by the Board Secretary after the close of the filing period;and 2) authorize the Board President to execute the agreement presented bythe Victoria County Elections Administrator, contingent upon approval of theagreement by legal counsel, if necessary. Mr. Clements seconded the motion.The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

15. Consideration of and possible action on matters related to Office Managementincluding personnel and staffing.


Board Action: None.

16. Consideration of and possible action on matters related to legal counselreport.




Board Action: None.

17. Adjourn.


Board Action. Mr. Eller moved to adjourn the meeting at 11:30 A.M. Mr. Hrochseconded the motion. The following vote was made:Precinct 1: Mr. Jerry Hroch, Vice President AyePrecinct 2: Mr. Thurman Clements, Jr., Director AyePrecinct 3: Mrs. Barbara Dietzel, Secretary AyePrecinct 4: Mr. Mark Meek, President AyeAt Large: Mr. Kenneth Eller, Director AyeWith five (5) ayes and zero (0) nays, the motion passed.

Prepared by: Donna Yanta, Administrative AssistantVictoria County Groundwater Conservation District Official

THE ABOVE AND FOREGOING MINUTES WERE READ AND APPROVED ON THIS

THE DAY OF

Director of the Victoria County Groundwater Conservation District

ATTEST:

Director of the Victoria County Groundwater Conservation District

2805 N. Navarro St. Suite 210, Victoria. TX 77901. Phone (361) 579-6863, FAX (361) 579-0041VCGCD Minutes - August 17, 2018 oi

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