HomeMy WebLinkAbout02-10-1987 Meeting~ Y
MINUTES
LA PORTE AREA WATER AUTHORITY
FEBRUARY 10, 1987
1. The meeting was called to order at 6:05 P.M.
MEMBERS PRESENT: President Cary Burnley, Vice President Al
Fields, Member Jerry Bramlett.
MEMBERS ABSENT: Secretary Rick Matthews.
OTHERS PRESENT: General Manager Robert T. Herrera, Authority
Attorney John Armstrong, Director of Public Works Steve Gillett,
Director of Community Development John Joerns, Water/Wastewater
Superintendent Buddy Jacobs, Pete Fisher of Moroney, Beissner &
Company, Cecil Allen and Peter Goldsmith of Turner Collie &
Braden, Inc.
2. Motion made and seconded to approve the minutes of the meetings
of November 5, 1986, December 1, 1986, December 17, 1986, and
January 27, 1987. Motion passed unanimously.
3. Item 6 was moved to Item 3 because of previous commitments by
the General Manager.
Presentation of draft contract by attorney delayed due to the
absence of attorney.
The General Manager informed the Board that Public Liability
Errors and Omission Insurance was not in effect for the
Authority board members. He has contacted TML, and has received
verbal approval for the coverages, retroactive to October 1,
1986.
Resolution 87-2, approved by the La Porte City Council on
February g, 1987, allowing the City Manager to negotiate a
contract with the Authority to purchase capacity at the
Southeast Water Purification Plant. (A copy is attached).
The City of Houston has not responded to the contract offer from
the Authority on the purchase of capacity at the Southeast Water
Purification Plant.
4. Presentation by Al Fields of the recent visit by A1, Bob
Herrera, Steve Gillett, and David Fetzer to the Texas Water
Development Fund. Discussed the requirements in order to obtain
funding, including Engineering Report, Environmental Assessment,
and a Water Conservation Plan. Pete Fisher discussed three (3)
amortization schedules for funding from the Texas Water
Development Fund, La Porte Area Water Authority Revenue Bonds,
and City of La Porte Certificates of Obligations. (A copy is
attached). He indicated that the Water Development Fund"s
estimated interest rate at 6.75, including the Funds" handling
charge. The probable interest rate for Authority Revenue Bonds
is 7.75, and 7.25 for Certificates of Obligation issued by the
City of La Porte. Discussion of the three (3) alternatives
followed. Pete Fisher indicated that a letter has been sent to
the Texas Water Development Fund outlining the Authority"s
financial needs, and indicating an interest in this funding
method. (A copy is attached).
5. Turner Collie & Braden presented three (3) alternative
distribution systems, together with total costs, allocated
costs, and cost per thousand gallons. (Copy is attached).
Discussion of charging each customer different per thousand
costs, per their individual transmission needs, or charging an
average cost per thousand, and treat all transmission and
distribution lines as one system. The advantages and
disadvantages were discussed.
Turner Collie & Braden and Moroney Beissner will recalculate
debt service requirements based on 7i6 at 25 years to arrive at
an accurate per thousand cost, both for individual customers and
an average cost.
6. Authority Attorney John Armstrong presented a proposed contract
between the Authority and customers.
The next meeting of the Board, including potential customers, on
February 19, 1987, at 7:00 P.M. at City Hall Council Chambers.
7. There being no further business the meeting was adjourned at
9:20 P.M.
Resp t ully Submitted,
Rick Matthews,Secre ry/Treasurer
PASSED AND APPROV D:
THIS THE AY OF ~~,~j , 19~