HomeMy WebLinkAboutRES 12-149 RESOLUTION NO. 12-149
WHEREAS,the City of Beaumont,Texas,(the"City")proposes to issue Certificates
of Obligation, Series 2012, in an amount not to exceed $24 Million and Water and Sewer
Revenue Bonds, Series 2012, in an amount not to exceed $21 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 May 23, 2012, 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 10th day of July,
2012.
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GMayor Becky Ames -
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May 23, 2012
City of Beaumont
Attention: Kyle Idayes,City Manager
801 Main Street
Beaumont,Texas 77701
Re: Certificates of Obligation, Series 2012,and Water and Sewer Revenue Bonds,
Series 2012
Bear 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 2012, in the principal amount of approximately$23,000,000 and Water and
Sewer Revenue Bonds, Series 2012,in the principal amount of approximately$20,000,000
(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,(4)review of the disclosures made by the City,(5)preparation and filing of 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 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$17,500.00 per series.
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$2-3,000 per transaction. These expenses are in
EXHIBIT"A"
City of Beaumont
May 23,2012
Page 2 of 2
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,
URG B &TU R,LLP
Benny H. ghes
BHH/lr
cc: Ms. Laura Clark
Chief financial Officer
City of Beaumont
801 Main Street
Beaumont,Texas 77701
ACCEPTED ANDAGREED TO this day of ,2012.
THE CITY OF BEAUMONT,TEXAS
By:
Its: