Minutes of the Texas Water Resources Finance Authority June 18, 2003

Chairman D.V. Guerra, Jr. called to order the meeting of the Texas Water Resources Finance Authority at 9:00 a.m. in Room 118 of the Stephen F. Austin Building, Austin, Texas. The following Board members were present, constituting a quorum:

D.V. Guerra, Jr., Chairman Thomas Weir Labatt III, Secretary/Treasurer Wales H. Madden, Jr., Member Jack Hunt, Member E.G. Rod Pittman, Member

Vice Chairman Bill Meadows was not present. Persons attending were among those present at the Texas Water Development Board meeting of the same date.

The Authority then considered items on the formal agenda in the following order.

1. CONSIDER APPROVAL OF THE MINUTES OF THE MAY 21, 2003 MEETING.

Mr. Labatt moved to approve the minutes as submitted; Mr. Hunt seconded the motion; it passed unanimously 5-0.

2. CONSIDER AUTHORIZING THE DEVELOPMENT FUND MANAGER TO PUBLISH A REQUEST FOR QUALIFICATIONS FOR THE SELECTION OF A NEW UNDERWRITING TEAM FOR FUTURE AUTHORITY NEGOTIATED BOND ISSUES AND RELATED TRANSACTIONS.

Development Fund Manager Nancy Marstiller stated that the staff and Board’s financial advisor, First Southwest Company, have crafted the Request for Qualifications (RFQ) that will be sent out, as well as reviewed the Board/Authority’s Underwriting Policies and Procedures, and recommend slight modifications. She said that responses from the RFQ are due on July 10. Ms. Marstiller gave a brief history of current underwriting teams’ services to the Board/Authority. She stated that the new firms selected must have senior management experience, must provide meaningful contributions to the team while serving in a co-management position, must have knowledge of the Board’s loan programs, and must provide an adequate sales force.

Mr. Hunt moved to approve the recommendation; Mr. Pittman seconded the motion; it passed unanimously 5-0.

The meeting adjourned at 9:06 a.m.

APPROVED and ordered of record this the 16th day of July, 2003.

Texas Water Resources FINANCE AUTHORITY

_______________________________________ D.V. Guerra, Jr., Chairman

ATTEST:

____________________________________ Thomas Weir Labatt III, Secretary/Treasurer