HomeMy WebLinkAboutRES 09-302 RESOLUTION NO. 09-302
RESOLUTION APPROVING ENGAGEMENT OF
BOND COUNSEL AND A PLACEMENT AGENT
WHEREAS, The City of Beaumont, Texas (the "City") proposes to sell approximately
$30,000,000 of its City of Beaumont, Texas, Certificates of Obligation, Series 2009 (the
"Certificates");
WHEREAS, in order to proceed with the issuance of the Certificates, the City desires to
authorize the employment of bond counsel and a placement agent;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BEAUMONT, TEXAS:
1. The City is authorized to and hereby employs Orgain, Bell & Tucker, LLP,
Beaumont, Texas, as bond counsel for the issuance of the Bonds, pursuant to the
terms of the engagement letter dated September 28, 2009, presented by Orgain
Bell & Tucker, LLP to the City.
2. The City is authorized to and hereby employs RBC Capital Markets Corporation,
Houston, Texas, as placement agent for the City in connection with the issuance
of the Bonds.
3. The City and its bond counsel and placement agent are authorized to proceed with
taking all action appropriate for the issuance of the Bonds; provided, however,
that the Bonds shall be issued only if the final terms and provisions thereof are
hereinafter approved by the City Council.
PASS AND APPROVED this� day of� d I �Y11 ' 2009.
MAYOR, C OF BEAUMONT
AT EST:
X Uj
Benny H.Hughes
470 Orleans Street I P.O.Box 1751
Beaumont,Texas 77704-1751
® 409838.6412,ext.365 1 Direct 409-951-7465
Fax 409.9517365
Email:BennyHughes @msn.com
Other offices in Houston—The Woodlands
and Silsbee I online at www.obt.com
September 28, 2009
City of Beaumont
Attention: Kyle Hayes, City Manager
801 Main Street
Beaumont, Texas 77701
Re: Bond Counsel Agreement
Dear Mr. Hayes:
This letter will confirm the terms of our engagement as bond counsel to the City of
Beaumont, Texas (the "City") relating to the City's proposed issuance of its Certificates of
Obligation, Series 2009, in the estimated principal amount of$30,000,000 (herein collectively
referred to as the "Certificates").
As bond counsel, the services to be provided by our firm will include (1) preparation and
drafting of all documents customarily prepared by bond counsel in order to issue the Certificates,
(2) preparation and delivery of our firm's opinions relative to the tax-exempt status of the
Certificates and the absence of registration requirements, (3) review of any official statements
used to market the Certificates, as well as preparation of disclosure certificates to be delivered by
the City, (4)review of the disclosure investigations made on behalf of the City, (5) preparation
and filing of all documents necessary to obtain approval of the Attorney General of the State of
Texas and registration of the Certificates with the Comptroller of Public Accounts, (6) review
and examination of all bond insurance agreements, if applicable, and(7) review of any certificate
purchase agreement proposed by the underwriters for the Certificates.
We will provide these services to the City for a fee equal to 15 basis points (i.e. 0.15%)
of the face amount of the Certificates issued, but subject to a minimum fee of$15,000. If the
Certificates are issued in more than one series, then this fee schedule will be applicable to each
series of Certificates that are issued. Payment of the fee will be contingent upon the actual sale
of the Certificates, and the fee will be payable only at the time of delivery of the Certificates.
This fee does not include any fee for co-bond counsel, should the City elect to employ one.
In addition to payment of the fees set forth above, the City will reimburse our firm for the
reasonable and actual out-of-pocket expenses incurred in each financing transaction. Such
expenses typically average approximately $1,500 to $2,000 per transaction. These expenses are
City of Beaumont
September 28, 2009
Page 2 of 2
in addition to the expenses the City will incur for publication costs and the fee payable to the
Texas Attorney General's Office for its examination and approval of the Certificates.
We very much appreciate the opportunity to serve the City in this matter.
Sincerely yours,
ORGAIN B TUCKER, LLP
B ny H. Hu
BHH/lr
ACCEPTED AND AGREED TO this
` day of :Q�e^Ac:r , 2009.
THE CITY OF BEAUMONT, TEXAS
By:
Its:
RESOLUTION NO. 09-302
RESOLUTION APPROVING ENGAGEMENT OF
BOND COUNSEL AND A PLACEMENT AGENT
WHEREAS, The City of Beaumont, Texas (the "City") proposes to sell approximately
$30,000,000 of its City of Beaumont, Texas, Certificates of Obligation, Series 2009 (the
"Certificates");
WHEREAS, in order to proceed with the issuance of the Certificates, the City desires to
authorize the employment of bond counsel and a placement agent;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BEAUMONT, TEXAS:
1. The City is authorized to and hereby employs Orgain, Bell & Tucker, LLP,
Beaumont, Texas, as bond counsel for the issuance of the Bonds, pursuant to the
terms of the engagement letter dated September 28, 2009, presented by Orgain
Bell & Tucker, LLP to the City.
2. The City is authorized to and hereby employs RBC Capital Markets Corporation,
Houston, Texas, as placement agent for the City in connection with the issuance
of the Bonds.
3. The City and its bond counsel and placement agent are authorized to proceed with
taking all action appropriate for the issuance of the Bonds; provided, however,
that the Bonds shall be issued only if the final terms and provisions thereof are
hereinafter approved by the City Council.
PASS AND APPROVED this�L day of �Q/`I 12009.
I&CA4n
MAYOR, C OF 13EAUMONT
AT EST:
ot,
/ w
X
It '/�