HomeMy WebLinkAboutRES 10-286 RESOLUTION NO.10-286
WHEREAS,the City of Beaumont,Texas(the"City")proposes to issue up to$36 Million
of Certificates of Obligation, Series 2011 and General Obligation Refunding Bonds, Series
2011 in the amount up to $17.5 Million (the "Bonds"); and,
WHEREAS, in order to proceed with the issuance of the Bonds, the City desires to
authorize the employment of bond counsel;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and,
1. That 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 October 7, 2010, presented by Orgain, Bell &Tucker, LLP,
to the City, attached hereto as Exhibit "A;" and,
2. That the City and its bond counsel 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 2nd day of
November, 2010.
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October 7,2010
City of Beaumont
Attention: Kyle Hayes,City Manager
801 Main Street
Beaumont,Texas 77701
Re: Certificates of Obligation,Series 2011,and General Obligation Refunding Bonds,
Series 2011
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 2011,in the principal amount of up to$35,000,000 and C3eueral Obligation
Refnding Bonds,Series 2011,in the principal amount up to$17,500,000(hack collectively
referred to as the"Bonds'.
As bond counsel,the services to be provided by our firm will include(1)preparation and
draiiing 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
EXHIBIT "A°
City of Beaumont
October 7,2010
Page 2 of 2
expenses typically average approximately$2,000 per transaction. These expenses are 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,
ORG &TUGxER,LLP
my H. glies
BH ffAr
ACCEPTED ANDAGREED TO this day of ,2010.
THE CITY OF BEAUMONT,TEXAS
By:
Its.
ORGAIN BELL&TUCKER,LLP
ATTURNF VS AT LAW
Benny H.Hughes
470 Orleans Street I P.O.Box 1751
Beaumont,Texas 77704-1751
409.838.6412,ext.365 1 Direct 409.951.7465
Fax 409.951.7365
Email:bhh@obtcom or SennyHughes @msn.com
Other offices in Houston-The Woedends
and Silsbee I or*ne at www.obt.com
October 7, 2010
City of Beaumont
Attention: Kyle Hayes, City Manager
801 Main Street
Beaumont, Texas 77701
Re: Certificates of Obligation, Series 2011, and General Obligation Refunding Bonds,
Series 2011
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 2011, in the principal amount of up to $35,000,000 and General Obligation
Refunding Bonds, Series 2011, in the principal amount up to $17,500,000 (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
City of Beaumont
October 7, 2010
Page 2 of 2
expenses typically average approximately$2,000 per transaction. These expenses are 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,
ORG & TUCKER, LLP
B y H. ghes
BHH/lr
ACCEPTED ANDAGREED TO this day of Lw-,r Lo-,r 2010.
THE CITY OF BEAUMONT, TEXAS
I
By:
Its: &ILI