Minutes of the Texas Water Resources Finance Authority August 18, 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 July 14, 1999 meeting.

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

2. Consider authorizing the Development Fund Manager to negotiate and enter into a written agreement for the Authority to purchase $670,000 City of Hamilton, Texas General Obligation Refunding Bonds, Series 1998, as reissued.

Mr. Greg Olin, Director, Portfolio, Reporting and Systems Management, briefed the Authority on the background of the City of Hamilton bonds and requested that the Authority accept the $620,000 payment on the city's Advance Refunded Bonds, Combination Tax and Revenue Certificates of Obligation, Series 1991 to be used with revenues available in the Authority's portfolio to purchase $670,000 City of Hamilton, General Obligation Refunding Bonds, Series 1998.

In response to questions, Mr. Olin explained that bond counsel would draft the purchase agreement to ensure that adequate terms are included to protect the integrity of the Authority's credit. Mr. Kevin Ward, Deputy Executive Administrator, added that the entity has the right to call the bonds next year. Staff proposes to purchase the 1998 bonds as reissued with proceeds from the refunded bonds.

Mr. Geren asked for a written statement from bond counsel stating that there is no negative effect on the Authority or credit.

Mr. William Madden moved for approval; Mr. Fernandez seconded the motion; it passed unanimously 6-0.

3. Consider extension of existing bond counsel contracts.

Ms. Suzanne Schwartz, General Counsel, asked the Authority to extend the existing bond counsel contracts with McCall, Parkhurst & Horton, L.L.P., Vinson & Elkins, L.L.P., and Wickliff & Hall, P.C. through August 31, 2000 in an amount not to exceed the current contracts. She explained that the original request for proposals provided for potential extensions of three one-year terms. The Attorney General's office has verbally agreed to allow these extensions.

Dr. Barron moved for approval; Mr. Wales Madden seconded the motion; it passed unanimously 6-0.

The meeting was adjourned.

APPROVED and ordered of record this the 15th day of September, 1999.

TEXAS WATER RESOURCES FINANCE AUTHORITY

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