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

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LA PORTE AREA WATER AUTHORITY BOARD Corrected Minutes June 21, 1982 PRESENT: Jack Owen, City Manager, Jerry Hodge, Director of Public Works, Martha Eldridge, Al Fields, Pete Fisher, Travis Doughty, John Armstrong, Assistant City Attorney, 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 ofa 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 asked that everyone look it over and make changes and suggestions to him before the next meeting. It was noted that a special workshop could beheld, if needed, to go over the outline. Cary Burnley reminded the Board if they got together anytime, not to have more than two (2) Board members present, :unl-ess 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 recommended the Board to use the services of the. City Attorney. Mr. Owen stated thai:, 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. The committee'srecommendation was voted upon and passed. 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. It was also suggested that some of the Board members visit Bay town, Huntsville and Texas City's plants, to see their operation. Jerry Hodge was asked to handle this by the next meeting. Jerry Hodge was also requested to arrange a second meeting to CIWA for the second Tuesday in August.