Board Minutes | Texas Water Development Board

Minutes of the Texas Water Resources Finance Authority October 17, 2001

Chairman Jack Hunt called to order the meeting of the Texas Water Resources Finance Authority at 8:35 a.m. in the International Room 1.102, International Trade and Technology Building, The University of Texas - Pan American in Edinburg, Texas. The following Board members were present, constituting a quorum:

  • Jack Hunt, Chairman
  • Wales H. Madden, Jr., Secretary/Treasurer
  • William B. Madden, Member
  • Bill Meadows, Member
  • Noe Fernandez, Member

Vice Chairman Kathleen White was absent.

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 15, 2001 MEETING.

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

2. CONSIDER AUTHORIZING THE EXECUTIVE ADMINISTRATOR TO EXECUTE CONTRACTS FOR BOND COUNSEL SERVICES.

General Counsel Suzanne Schwartz discussed staff efforts to negotiate contracts for bond counsel services. She said staff was unable to satisfactorily conclude negotiations with Vinson & Elkins. She recommended that staff formally end negotiations with that firm and realign the selection of counsel for the Authority and the Texas Water Development Board as follow:

McCall Parkhurst & Horton: Development Funds I & II, the Texas Water Resources Finance Authority, and the Drinking Water State Revolving Fund;

Andrews & Kurth: Clean Water State Revolving Fund; and

Delgado, Acosta, Braden & Jones: Agricultural Water Conservation Bonds, co-counsel for Development Funds I & II, and other issues as directed.

Ms. Schwartz responded to a question from Mr. Meadows, that she believed the decision did not sacrifice any quality in professional service.

Mr. William Madden moved to approve the staff recommendation; Mr. Meadows seconded the motion; it passed unanimously 5-0.

3. CONSIDER AUTHORIZING STAFF TO PROCEED WITH A REQUEST FOR QUALIFICATIONS AND SELECTION PROCESS FOR FINANCIAL ADVISOR.

Ms. Nancy Marstiller, Director of Debt Management, said the Authority's/Board's current contract with financial advisor First Southwest Company will expire on November 30, 2001. The contract was executed in 1995 and extended in 1999. Although staff is pleased with the services of First Southwest Company, Ms. Marstiller said it was prudent to occasionally evaluate the services of other firms. She recommended approval of the request for qualifications and said a recommendation will be made to the Authority/Board in December.

In response to question from Mr. William Madden, Ms. Marstiller said firms on the agency's current underwriters list would be among those given the opportunity to respond. If they choose to apply and are selected, that firm would be removed from the underwriting team.

Mr. Meadows moved to approve the staff recommendation; Mr. Wales Madden seconded the motion; it passed unanimously 5-0.

4. CONSIDER AUTHORIZING AN EXTENSION OF THE EXISTING FINANCIAL ADVISOR CONTRACT.

Ms. Marstiller recommended approval of the three (3) month extension with First Southwest Company until February 28, 2002 to guarantee continuation of financial advisory services until a new contract is executed. First Southwest Company is currently involved in the Board's application process to the Bond Review Board for a $25 million allocation of the private activity bond cap and with the Clean Water State Revolving Fund Series 2002 bonds.

Mr. William Madden moved to approve the staff recommendation; Mr. Meadows seconded the motion; it passed unanimously 5-0.

The meeting adjourned at 8:45 a.m.

APPROVED and ordered of record this the 12th day of December, 2001.

Texas Water Resources Finance Authority

_______________________________________
Jack Hunt, Chairman
ATTEST:

___________________________________
Wales H. Madden, Jr., Secretary/Treasurer

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