06-21-82 Meeting of the La Porte Area Water Authority Minutes

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LA PORTE ARE/\ TtfATER AUTHORITY BOARD June 21, 1982 PRESENT: Jack Owen, Jerry Hodge, Martha Eldridge, Al Fields, Pete Fisher, Travis Doughty, John Armstrong, Jerry Bramlett, Cary Burnley. Cary Burnley, President, called the meeting to order at 6:30 P.M. Minutes from the May 17th, meeting were approved as written. Cary Burnley introduced Pete Fisher, who discussed finances and revenue bonds. Mr. Fisher discussed different types of bonds, financial aspect of the Authority, and benefits of bonds. The three (3) methods of selling bonds discussed were, (1) negotiated sale, (2) private placement and, (3) competitive bid. He explained to the Board how interest rates are affected by the life of the bond. The key to selling bonds is how strong the people with contracts are. He explained, to the Board, the importance of a good rating on bonds. Mr. Fisher presented, to the Board, examples of previous bonds sold. He went into some detail about the procedure, from start to finish, for the process of selling bonds. It was noted it might reduce the need for the City of La Porte to sell bonds if the Authority were to sell bonds. Before the Authority would be able to sell bonds, it must have a feasibility study and contracts to sell water. Jerry Bramlett gave a report on the committee preparing specifications for the feasibility study. He presented an outline to the Board, and ask that everyone look it over and make changes and suggestions to him before the next meeting. It was noted that a special workshop could be held, if needed, to go over the outline. Cary Burnley reminded the Board if they got together anytime, not to have more than three Board members present, unless a proper notice is posted. Al Fields gave a report on the committee preparing a list of firms from which to request proposals for a feasibility study. The committee felt we should use the services of the City Attorney for the Board. Mr. Owen stated that the Board could not afford to employ an attorney at this time, however if we needed one, the City could pay expenses and be repaid at a later date. All were in favor of retaining Mr. Askins as attorney for the La Porte Area Water Authority Board. The next item on the agenda were items to be discussed at the next meeting. Jack Owen said he would invite Fritz Lanham, City of Bay town, to the next meeting.