Minutes of the Texas Water Resources Finance Authority July 16, 2003

Vice Chairman Bill Meadows called to order the meeting of the Texas Water Resources Finance Authority at 9:30 a.m. in Room 118 of the Stephen F. Austin Building, Austin, Texas. The following Board members were present, constituting a quorum:

Bill Meadows, Vice Chairman Thomas Weir Labatt III, Secretary/Treasurer Wales H. Madden, Jr., Member Jack Hunt, Member

Chairman D.V. Guerra, Jr. and Member E.G. Rod Pittman were absent.

Persons attending were among those present at the Texas Water Development Board meeting of the same date.

The Authority then considered items on the formal agenda in the following order.

1. CONSIDER APPROVAL OF THE Minutes of the JUNE 18, 2003 MEETING.

Mr. Labatt moved to approve the minutes as submitted; Mr. Hunt seconded the motion; it passed unanimously 4-0.

2. CONSIDER AUTHORIZING THE TRANSFER OF FUNDS FROM THE REVENUE FUND OF THE Texas Water Resources Finance Authority (AUTHORITY) TO THE AUTHORITY’S OPERATING FUND FOR THE PAYMENT OF Texas Water Development Board EXPENSES IN SERVICING THE AUTHORITY’S PORTFOLIO.

Mr. Gerald Slater, Portfolio Manager, reported the staff recommendation for the transfer of funds ($443,852) to cover costs to administer the Authority’s portfolio of political subdivision bonds for FY 2004, $221,926 on or before August 14, 2003 and $221,926 on or before February 14, 2004.

Mr. Madden moved to approve the staff recommendation; Mr. Hunt seconded the motion; it passed unanimously 4-0.

3. CONSIDER SELECTION OF FIRMS TO NEGOTIATE FOR BOND COUNSEL SERVICES.

General Counsel Suzanne Schwartz explained the process for selection of bond counsel. She said staff recommended that the firm of McCall, Parkhurst & Horton L.L.P. be selected to serve as bond counsel to TWRFA and that the Executive Administrator be authorized to negotiate a contract with the firm.

Mr. Madden moved to approve the staff recommendation; Mr. Labatt seconded the motion; it passed unanimously 4-0.

The meeting adjourned at 9:40 a.m.

APPROVED and ordered of record this the 20th day of August, 2003.

Texas Water Resources Finance Authority

_______________________________________ D.V. Guerra, Jr., Chairman

ATTEST:

____________________________________ Thomas Weir Labatt III, Secretary/Treasurer