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HomeMy WebLinkAbout08-16-1988 Meeting•+ • LA PORTE AREA WATER AUTHORITY MINUTES AUGUST 16, 1988 1. The meeting was called to order at 6:00 p.m. by Vice President Richard Matthews. MEMBERS PRESENT: Vice President Richard Matthews, Secretary Claude Graves, and Member Mike Wadsworth. MEMBERS ABSENT: President Jerry Bramlett OTHERS PRESEAIT: Robert Herrera, General Manager; John Joerns, Assistant City Manager; Steve Gillett, Director of Public Works; Buddy Jacobs, Assistant Public Works Director; John Armstrong, Authority Attorney; Dale Conger of Espey/Huston; David Swartz of Baker & Botts; David Fetzer of Maroney & Beissner; Mayor John Grimes, City of Morgan"s Point. 2_. The minutes of the meeting held on July 18, 1988 were read. Motion was made to approve minutes by Claude Graves and seconded by Mike Wadsworth. Motion was unanimous. 3. Espey Huston invoice in the amount of $4,640.16 was discussed. Steve Gillett explained the difference of $152.47 shown on prior reports. He stated this was an over-charge for moving Bay MUD take point. This has been corrected. Claude Graves questioned the $40,700 for Geotech instead of $37,000 as in the contract. Steve Gillett will look into this matter. Motion was made to pay the Espey Huston invoice by Claude Graves and seconded by Mike Wadsworth. Motion was unanimous. 4. Resolution authorizing issuance and sale of $5,000,000 Contract Revenue Bonds was discussed by Bob Herrera. David Swartz of Baker & Botts and John Armstrong, Authority Attorney answered questions from members of the Board on bond documents. David Swartz went through bond documents anu indicated changes made since Board had seen the draft documents. Page Two Minutes August 16, 1988 Claude Graves questioned the deposits into the Bond Fund, the dates and the amounts. David Swartz discussed this matter with the Board. Interest payments will start June 1, 1989. The payments have to be made beginning this date with deposits being made on a six (6) month basis instead of monthly. By June 1, 1989 the Water Authority will have earned some interest and will also have proceeds from the second issuance of bonds. That is what will be used to make the June 1, 1989 payment even though participants have not begun to purchase water at that time. David Swartz stated the timeline he understood was that this needed to be back to the Texas Water Development Board within the next two (2) weeks. After it is signed it will be sent to the Attorney General"s office after the Texas Water Development Board reviews. David Swartz commented the Attorney General"s stated they were very busy right now and would not review until it was signed. Discussion was held on cash flow. It was suggested that possibly a special called meeting be held and Pete Fisher would do a complete print out. Claude Graves stated that at some point he would also like to see an analysis of a pay out based on sale of water, John Joerns and David Fetzer of Maroney & Beissner arrived for the Board meeting at 6:45 P.M. David Fetzer discussed the history of purchasing capacity in Southeast Water Purification Plant. He discussed the bond issue and the method of receiving the funds. He discussed the various dates that payments were due and the amounts needed for these payments. He discussed the possibility of requiring contracting parties to meet interest payments prior to receiving water. Board requested a cash flow projection prior to approving the resolution. David Fetzer stated he could have by Monday, August 22, 1988 The Board tabled this item and will call special meeting to be held at the Public Works Service Center on Monday, August 22, 1988 at 6:00 P.M. ~~. Page Three • • Minutes August 126, 1988 5. ENGINEER"S REPORT: Dale Conger discussed the status of plans and specifications. He stated Espey Huston has received comments from several agencies and is in the process of responding to these comments. Dale Conger discussed extension of deadline date on the Prequalification Specifications that were mailed out; will be extending deadline to September 20, 1988• Steve Gillett discussed meeting with CWA on August 15, 1988. He identified the new contact person for Houston as Mr. Showri. Steve Gillett brought to attention the correction that Espey Huston will have to make on their next invoice regarding the Geotechnical Authorization, however the $37,000 is their not to exceed figure. Bob Herrera discussed the assistance of Mr. Ron Neighbors of Harris-Galveston Coastal Subsidence District in expediting dealing with the City of Houston. Mr. Neighbors has suggested that the Authority meet with CWA and their Engineer to iron out the right-of-way problems. Due to prior commitments, Claude Graves had to leave the meeting at 7:25 P.M. 6. There being no quorum after that time, the meeting was adjourned at 7:25 P.M. Respectfully Submitted, Claude Graves, Secretary/Treasurer PASSED AND APPROVED: ON THS DAY ~~ ~ ~-- , 19