Minutes of the Texas Water Resources Finance Authority September 15, 1999

Chairman Charles Geren called to order the meeting of the Texas Water Resources Finance Authority in Room 118 of the Stephen F. Austin Building, Austin, Texas. The following Board members were present, constituting a quorum:

Charles Geren, Chairman Noe Fernandez, Vice Chairman Wales H. Madden, Jr., Secretary/Treasurer William B. Madden, Member Elaine Barron, Member Jack Hunt, Member .

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 AUGUST 18, 1999 MEETING.

Mr. Hunt motioned to approve the minutes as submitted; Mr. William Madden seconded the motion; it passed unanimously 6-0.

2. CONSIDER EXTENSION OF THE CURRENT FINANCIAL ADVISORY CONTRACT WITH FIRST SOUTHWEST COMPANY UNTIL NOVEMBER 30, 2001.

Ms. Nancy Marstiller, Director, Debt Management, stated that during First Southwest Company's four year tenure they have assisted the Board/Authority on 13 separate bond transactions totaling $1,842,840,000 in an exemplary manner. In addition they have assisted staff in several "Request for Proposals" from underwriting firms in 1996 and in 1998 as well as an Auction Agent for TWRFA, and a Liquidity Provider for the Variable Rate Demand Bond State Revolving Fund. Staff recommended a two (2) year extension of the Financial Advisory Agreement with First Southwest Company.

Mr. Wales Madden moved to extend the contract; Mr. William Madden seconded the motion; it passed unanimously 6-0.

The meeting was adjourned. APPROVED and ordered of record this the day of , 1999.

TEXAS WATER RESOURCES FINANCE AUTHORITY

Charles L. Geren, Chairman ATTEST: Wales H. Madden, Jr., Secretary/Treasurer