HomeMy WebLinkAboutRES 10-178 RESOLUTION NO. 10 - 178
WHEREAS, the City of Beaumont, Texas (the "City") proposes to issue up to
$35,000,000 of Waterworks and Sewer Revenue Bonds, Multiple Series 2010(the"Bonds");
WHEREAS, in order to proceed with the issuance of the Bonds, 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 June 8,2010, presented by Orgain, Bell&Tucker, LLP,to the City,
attached hereto as Exhibit "A."
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.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of July,
2010.
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-b6yor Becky Ames -
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Tina Boussard
City Clerk N4 : -��
ORG,AIN BELL&TUCKER,LLP
k,rTO RN EYS AT LAW
Berry H.Hughes
470 Orleans SUeet I P.O.Box 1751
SOMMt,Texas 77704-1751
409.838.6412,exi.365 E Direct 409.951.7465
Fex 40S 061.7365
ER46 bhhOObLCom or BennyHUghes @msn.corn
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and Shale I o1"st www.obt,com
June 8,2010
City of Beaumont
Attention: Kyle Hayes, City Manager
801 Main Street
Beaumont, Texas 77701
Re: Waterworks and Sewer Revenue Bonds,Multiple Series 2010
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 Waterworks and
Sewer Revenue Bonds,Multiple Series 2010, in the principal amount of up to$35,000,000
(herein collectively referred to as the"Bonds").
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 Bonds,(2)
preparation and delivery of our firm's opinions relative to the tax-exempt status of the Bonds and
the absence of registration requirements,(3)review of any official statements used to market the
Bonds, as well as preparation of disclosure Bonds 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
Bonds with the Comptroller of Public Accounts,(6)review and examination of all bond
insurance agreements, if applicable, and(7)review of any Bond purchase agreement proposed
by the underwriters for the Bonds.
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 Bonds issued, but subject to a minimum fee of$15,000. If the Bonds
are issued in more than one series, then this fee schedule will be applicable to each series of
Bonds, and the fee will be payable only at the time of delivery of the Bonds. 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
EXHIBIT "A"
City of Beaumont
June 8, 2010
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 Bonds.
We very much appreciate the opportunity to serve the City in this matter.
Sincerely yours,
OR E & TUCKER,LLP
Benny H. H es
BHHAr
ACCEPTED ANDAGREED TO this day of 2010.
THE CITY OF BEAUMONT, TEXAS
By:
Its: