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HomeMy WebLinkAbout04-18-1989 Meeting~ ~ LA PORTE AREA WATER AUTHORITY MINUTES APRIL 18, 1989 1. The meeting was called to order at 6:05 P.M. by President Jerry Bramlett. MEMBERS PRESENT: President Jerry Bramlett, Vice President Richard Matthews, Secretary Claude Graves, Member Mike Wadsworth. MEMBERS ABSENT: None OTHERS PRESENT: Bob Herrera, General Manager; John Joerns, Assistant City Manager; John Armstrong, Authority Attorney; Jeff Litchfield, Director of Finance; Buddy Jacobs, Assistant Director of Public Works; Bill Pace and Robert Ray, Espey Huston & Associates, Inc. 2. The minutes from the March 7, 1989 regular meeting were read. Motion was made to accept the minutes as presented by Vice President Richard Matthews and seconded by Secretary Claude Graves. Motion was unanimous. 3. Bob Herrera reported he had visited with Gary Miglicco, managing partner for Peat Marwick Main & Company. Mr. Herrera reported the audit is complete and Peat Marwick Main & Company should be making a presentation at the next Board meeting. The opening letter that indicates their findings was passed on to the City of La Porte and the Director of Finance has reviewed it. Mr. Herrera stated in review this is a final payment of two thousand five hundred dollars ($2,500.00) with a prior payment of two thousand dollars ($2,000.00) already approved. The original contract stated four thousand dollars ($4,000.00) with expenses not to exceed five hundred dollars ($500.00). Motion was made by Vice President Richard Matthews and seconded by Member Mike Wadsworth to approve payment of Peat Marwick Main & Company invoice in the amount of two thousand five hundred dollars ($2,500.00). Motion was unanimous. 4. Buddy Jacobs reported on the invoice from Espey Huston & Associates, Inc. He stated this payment would final out the bidding phase of the contract. Motion was made by Vice President Richard Matthews to approve payment of Espey Huston & Associates, Inc. invoice in the amount of two thousand two hundred ninety-three dollars and twenty-one cents ($2,293.21), seconded by Member Mike Wadsworth. Motion was unanimous. • • Page Two Minutes April 18, 1989 5. An amended resolution authorizing the issuance and sale of four million eight hundred thousand dollar ($4,800,000.00) contract revenue bonds was discussed. Authority Attorney John Armstrong stated bond counsel felt the need to restate the resolution. After bond counsel forwarded the completed package to the Attorney General and funding had already occurred, the Texas Water Development Board indicated they needed one change in the resolution. Mr. Armstrong reported there is one new section relating to the investment of arbitrage and has no impact on current funds. Bob Herrera discussed arbitrage. Vice President Richard Matthews made motion to approve an amended and restated resolution authorizing the issuance and sale of $4.8 million contract revenue bonds, Series II 1888 and authorizing an agreement with the paying agent/registrar, seconded by Member Mike Wadsworth. The motion was unanimous. 6. A resolution appointing a trustee for the Authority was discussed. General Manager Bob Herrera reported he had visited with Bayshore National Bank and they were inquiring how the transactions were going to be handled, what type of collateral is going to be required by the Authority, and how investments will be managed. Mr. Herrera discussed the need for a trustee (City of La Porte Finance Director), someone who is in the banking industry profession. Mr. Herrera stated there are several things that are going to take place in order to keep the Authority monitoring any arbitrage dilemma. Right now the Authority is doing that under the guise of the City of La Porte, Mr. Herrera reported. Mr. Herrera introduced Jeff Litchfield, Finance Director for the City of La Porte. Mr. Litchfield talked about arbitrage. He explained in the past, governmental entities could sell tax-exempt bonds at a low interest rate, pay 5~ in and after receiving their money could go out and invest it at 7% and 8~ and catch a nice interest gap. Mr. Litchfield reported the Authority presently has bonds at a 6.48 rate and will be unable to invest at an interest rate that exceeds that figure. Mr. Litchfield stated the City of La Porte has a depository agreement with Bayshore National Bank for 2.5 million dollars of collateral (securities purchased) and all of the City~s money is covered under that umbrella. He stated Bayshore National Bank would not allow the Finance Director to put the Authority"s money under this umbrella without a resolution. The present resolution is for two (2) years with an option. Mr. Litchfield stated this could change if the depository is switched. One method of investment discussed would be SLGS (State and Local Government Securities) which can be ordered at any interest rate. • • Page Three Minutes April 18, 1989 Vice President Richard Matthews made motion to approve the resolution of the La Porte Area Water Authority, appointing the City of La Porte, a municipal corporation, as the agent and trustee of the La Porte Area Water Authority"s funds, under the terms and provisions of the depository agreement between the City of La Porte and Bayshore National Bank of La Porte, dated October 1, 1988, seconded by Secretary Claude Graves. Motion was unanimous. 7. Bill Pace of Espey, Huston & Associates, Inc. introduced Robert Ray, construction inspector, to the Board. Mr. Ray briefed the Board on construction progress to date. He reported that the estimated finish date is December 29, 1989. Mr. Ray commented on the efficiency and safety awareness of the contractor. 8. General Manager Bob Herrera discussed the letter he received from Janet Gray Wahrlich concerning the Big Island Slough easement. Mr. Herrera stated the Authority has an executed easement that has been reviewed by the City Attorney and a check for one thousand eight hundred four dollars and eighty-five cents ($1,804.85) will be sent to Fairmont Park Joint Venture as moved by Vice President Richard Matthews at the October 18, 1988 meeting of the Authority. Bob Herrera reported John Armstrong, Authority Attorney, has reviewed the letter sent back by PPG agreeing to do several things for the City of La Porte in which the City of La Porte would execute the Bay Area Boulevard easement to the La Porte Area Water Authority. Mr. Herrera reported PPG preferred not to deal with multiple jurisdictions, but had no problem with dedicating the easement to the City of La Porte and the City authorizing the Authority. The Board expressed their concern over the failure to get the needed approval from the Coastal Water Authority. There was discussion by the Board regarding the different avenues that could be taken to get CWA"s endorsement. 9. President Jerry Bramlett urged the CWA easement. Mr. Herrera received something from CWA in forth on the issue. John Armstrong reported easement. He stated he possibility of engaging work for the Authority. receive an answer soon. condemnation rights reg haste on the outstanding issue of stated that if the Board had not the next week, they would move on the status of the Shoreacres" had discussed with Shoreacres the a land acquisition agent to do the leg Mr. Armstrong stated he expected to He stated the Authority does have arding this easement. • Page Four Minutes April 18, 1989 10. There being no further business, motion was made by Vice President Richard Matthews and seconded by Secretary Claude Graves to adjourn. Motion was unanimous. The meeting was adjourned at 7:21 P.M. Claude Graves, Secretary/Treasurer PASSED AND APPROVED: ON THIS DAY ~ , 1g~~ Jer Bra et , President