HomeMy WebLinkAboutJUL 15 2025 - PACKET
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS CITY HALL 801 MAIN STREET
TUESDAY, JULY 15, 2025 1:30 PM
AGENDA
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL
PROCLAMATIONS
PRESENTATIONS
Communication Update
RECOGNITIONS
PUBLIC COMMENT ON AGENDA/CONSENT
Citizens may speak on the Consent Agenda/Regular Agenda Items 1-7 or any other
topic. Citizens wishing to speak on Item 8 will be given the opportunity to speak
during the Public Hearing.
CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered non-
controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is
required to remove any item for discussion and separate action.)
A.Council to consider approving the July 1, 2025, City Council meeting minutes.
B.Council to consider appointments to the Planning Commission, Animal Care Advisory
Committee, Community Development Advisory Committee, and Parks and Recreation
Advisory Committee.
C.Council to consider an amendment to Resolution 25-020 to authorize the Deputy
Controller, at the City Manager’s request, to apply for and receive funding in an
amount not to exceed $48,000 through the State and Local Cybersecurity Grant
Program, as approved by the Office of the Governor.
D.
Council consider a resolution to authorize the City Manager or his designee to apply
for and receive funding in an amount up to $87,539.17 through the U.S. Department
of Justice Project Safe Neighborhoods Block Grant Program (PSN)
E.Council consider a resolution authorizing the City Manager to enter a contract with
Habitat for Humanity for the use of HOME Investment Partnership funds from the U.S.
Department of Housing and Urban Development (HUD).
F.Council to consider a resolution to authorize the Deputy Controller to apply for and
receive funding in an amount up to $152,779.00 through the U.S. Department of
Justice, Office of Community Oriented Policing Services-Community Policing
Development Microgrants program.
G.Council consider a resolution approving the six (6) month contract to supply asphaltic
concrete for use by the City.
H.Council to consider a resolution to amend Resolution 25-134.
REGULAR AGENDA
1.
Council to consider a resolution authorizing the City Manager to execute an
amendment to the Interim Services Agreement between the City and Stonehenge
Holdings, LLC to expand the scope of work.
2.
Council consider a resolution authorizing the City Manager to execute Change Order
No. 2 to the contract with King Solution Services, LLC, of Houston, TX for the Grand
Avenue & Magnolia Avenue Pipe Bursting Contract – Phase I.
3.
Council consider a resolution authorizing the City Manager to award a contract to
Volta, LLC, of Houston, TX, for the Wastewater Treatment Plant Power Distribution
Switchgear Building Pre-Purchase Project.
4.
Council consider a resolution authorizing the City Manager to execute Change Order
No. 2 to the contract with Norman Highway Constructors, Inc., for the Bridge Repair
Project – Various Locations Citywide (REBID).
5.
Council consider an ordinance authorizing the issuance and sale of City of Beaumont,
Texas, Certificates of Obligation, Series 2025 in an estimated amount not to exceed
$20.5 Million; levying taxes to provide for payment thereof; and containing other
matters related thereto.
6.Council consider an ordinance authorizing the issuance and sale of City of Beaumont,
Texas, Waterworks and Sewer System Revenue Refunding Bonds, Series 2025, in an
estimated amount not to exceed $19.455 Million and containing other matters related
thereto.
7.
Consider an ordinance to amend Section 28.03.023(e) of the City’s Code of
Ordinances to limit the permitted use of gaming sites and gaming machines to
industrial zoning districts.
PUBLIC HEARING
Council to conduct a Public Hearing to receive comments to temporarily waive transit
fares for students
REGULAR AGENDA
8.Council consider a resolution authorizing Zip to temporarily waive transit fares for
students from July 15, 2025 to August 12, 2025.
WORK SESSION
Council to review and discuss Venue Tax and the Tourism Public Improvement
District (TPID)
Council to review and discuss the Downtown Proactive Code Enforcement Update
Council to review and discuss the Rules of Conduct for City Officials (Ethics Policy)
COUNCIL COMMENTS
EXECUTIVE SESSION
To discuss and or deliberate economic development negotiations in accordance with
Section 551.087 of the Government Code to wit; specifically:
“Project Riverfront”
“Downtown Hotel Project”
”Project Cement”
Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
Caleb Fenter and Beaumont Professional Firefighters Local #399
(Intervenors) v. City of Beaumont, Christopher S. Boone, Kenneth
Williams, Roy West, Taylor Neild, Mike Getz, Audwin Samuel, Charles
Durio, Albert Turner, and Randy Feldschau; Cause No. B-210244
ADJOURNMENT
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services
are requested to contact Jacqueline K. Gunner at (409) 880-3782.
A
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Tina Broussard, City Clerk
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider approving the July 1, 2025, City Council
meeting minutes.
BACKGROUND
None
FUNDING SOURCE
None
RECOMMENDATION
Approval of minutes
ATTACHMENTS
Minutes - July 1, 2025
MINUTES OF THE CITY OF BEAUMONT
COUNCIL MEETING
Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Mike Williams, At-Large
Cory Crenshaw, Ward I CITY COUNCIL MEETING Joey Hilliard, Ward II
LaDonna Sherwood, Ward IIIJULY 1, 2025 Chris Durio, Ward IV
Tina Broussard, City Clerk Kenneth R. Williams, City Manager Sharae Reed, City Attorney
The City Council of the City of Beaumont, Texas, met in a regular session in strict compliance
with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on July 1, 2025, at
the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider
the following:
OPENING
Invocation Pledge of Allegiance Roll Call
Proclamations, Presentation and Recognition – Notification System and Emergency
Alert Overview
Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1-8,
& 10 or any other topic. Citizens wishing to speak on Item 9 will be given the opportunity
to speak during the Public Hearing.
Mayor West called the council meeting to order at 1:30 p.m.
Pastor Vernon Tubbs with First Full Gospel Baptist Church gave the invocation. Mayor West led
the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk.
Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio,
Hiliard, Williams, Sherwood and Crenshaw. Also, present were Kenneth R, Williams, City
Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk.
Proclamations, Presentation and Recognition
“National Buffalo Soldiers Month” – July 2025 – Accepting; Roscoe Compton, Jessie
Davis, Eric Baldwin and Jermy McCollum
Recognition – 2025 National Arena League Champions Beaumont Renegades –
Accepting; Rodney Robichau, Managing Partner, Richard Sickler, Assistant GM, Corey
Mayfield, Head Coach, Players and Families of the Beaumont Renegades
Recognition – Save our Sons in Motion, Inc., “Know your County Courthouse Day” –
Accepting; J.D. Roberts, Founder of Save our Sons in Motion, Inc.
Recognition – ExxonMobil 409 Scholars – Accepting; Tyler Gustafson
Minutes – July 1, 2025
Presentation – Zip/Transit Bus Operators who have shown exceptionally safe driving
skills with 500 Days and over 100,000 miles with zero safety violations – Accepting;
Tommy Strange and Torre Neumon
Mayor West read the announcement regarding Executive Session being held after the
conclusion of Councilmember Comments.
Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1-8, &
10 or any other topic. Citizens wishing to speak on Item 9 will be given the opportunity to speak
during the Public Hearing. (Public comments can be heard or seen on the City of
Beaumont’s website at beaumonttexas.gov)
th
Theresa Goodness985 19 St.Beaumont TX
Kate Hambright7 Cheska HollowBeaumont TX
Scott Andrus9065 Landis Rd.Beaumont TX
Stephanie Romero2911 W. Boston Ave.Nederland TX
Kevin Chance932 W. LucasBeaumont TX
Dean Tucker2550 Long Ave.Beaumont TX
Charlie Crabbe928 East Dr.Beaumont TX
Yolanda Reynolds4455 El PasoBeaumont TX
Mike Getz7950 PhelanBeaumont TX
Rose Reindel6550 Lexington Dr.Beaumont TX
Vernon Durden16436 Westbury Rd.Beaumont TX
Addie Allen9695 GrossBeaumont TX
CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered non-
controversial.
The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove
any item for discussion and separate action.)
A.Council to consider approving June 17, 2025, City Council meeting minutes.
B.Council to consider a resolution rejecting all proposals submitted for the Transit
Management Services RFP – Resolution 25-133
C.Council to consider appointments to various boards and commissions – Resolution 25-
134
E.Council to consider a resolution approving the purchase of network equipment from
CDW-G of Vernon Hills, IL for use in multiple departments – Resolution 25-136
Minutes – July 1, 2025
F.Council to consider a resolution approving the purchase of network equipment from
CDW-G of Vernon Hills, IL for use in Public Works – Resolution 25-137
G.Council to consider a resolution authorizing the City Manager to apply for funding under
the U.S. Environmental Protection Agency (EPA) and the Congressionally Mandated
Projects (CMP) grant program – Resolution 25-138
H.Council to consider a resolution approving the purchase of a new ambulance –
Resolution 25-139
Councilmember Sherwood moved to approve the Consent Agenda excluding Item D.
Councilmember Willaims seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
D.Council to consider a resolution authorizing the City Manager to submit a grant
application for the FY 2025 Emergency Supplemental Historic Preservation Fund
(ESHPF) Preservation Grant and execute a contract with the National Park Service to
receive funds for damage repairs to the Temple to the Brave and the Jefferson Theatre.
Mayor Pro Tem Turner moved to approve Consent Agenda Item D. Councilmember
Sherwood seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-135
REGULAR AGENDA
1.Council to consider a resolution authorizing the City Manager to award a contract to King
Solution Services LLC, of Houston, TX, for the Street Rehab Phase VI Sewer Line
Replacement Project.
The Street Rehab Phase VI Sewer Line Replacement Project will rehabilitate existing
sanitary sewer lines via pipe bursting methods and replace or install new manholes along
streets that will be rehabilitated after the sanitary sewer construction.
On April 24, 2025, four (4) bids were received for furnishing all labor, materials, and
equipment for the project. The Engineer’s Estimate for the contract is $1,933,050.00. The
bid totals are indicated in the table below:
Minutes – July 1, 2025
ContractorLocationTotal Bid Amount
DL Glover Pipe Bursting, Spring, TX$1,788,945.00
LLC
King Solution Services, LLCHouston, TX$1,812,155.00
To-Mex Construction, LLCHouston, TX$1,819,570.75
Bull-G Construction, LLCHouston, TX$1,903,435.00
After reviewing the bids and required documents, as well as considering the limited
availability of reference background checks and the evaluation of experience in pipe
bursting, Water Utilities staff recommend awarding the project to the second-lowest
bidder, King Solution Services, LLC, for a total of $1,812,155.00. A total of 270 calendar
days is allocated for substantial completion of the project.
Funds will come from Water Revenue Bonds.
Approval of the resolution.
Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE
IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH KING SOLUTION SERVICES, LLC, OF
HOUSTON, TEXAS, IN THE AMOUNT OF $1,812,155.00, FOR THE STREET REHAB PHASE VI SEWER
LINE REPLACEMENT PROJECT, WITH A TOTAL OF TWO HUNDRED AND SEVENTY (270) CALENDAR
DAYS TO COMPLETE THE PROJECT. Councilmember Hilliard seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-140
2.Council to consider a resolution authorizing the City Manager to award a contract to BDS
Constructors LLC dba MK Constructors, of Vidor, TX for the Citywide Ditching Program
Phase 3.
The Citywide Ditching Program Phase 3 consists of the excavation and removal of excess
material of approximately 355,964 linear feet of existing roadside ditches. Additionally, the
program includes the replacement of 280 driveway culverts. This phase of work will take
place in designated areas within Wards 1, 2, 3, and 4.
On June 12, 2025, four (4) bids were received for the project, which includes furnishing all
necessary labor, materials, and equipment. The Engineer’s Estimate for the project is
$3,078,196.10. The bid totals are shown in the table below:
ContractorLocationBase Bid Amount
BDS Constructors LLC dba MK Vidor, TX$2,523,621.50
Constructors
Eastex Utility ConstructionBeaumont, TX$2,609,555.00
Texas Drainage Inc.Waller, TX$2,935,847.36
Minutes – July 1, 2025
MB Western Construction CoHouston, TX$2,986,927.30
The Public Works Engineering staff recommends that this project be awarded to the
lowest
bidder, BDS Constructors LLC dba MK Constructors, in the amount of $2,523,621.50. A
total of 365 calendar days is allocated for completion of the project.
Funds will come from Certificates of Obligation.
Approval of the resolution.
Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE
AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH BDS CONSTRUCTORS LLC DBA
MK CONSTRUCTORS, OF VIDOR, TEXAS, IN THE AMOUNT OF $2,523,621.50, FOR THE CITYWIDE
DITCHING PROGRAM – PHASE 3, WITH A TOTAL OF THREE HUNDRED AND SIXTY-FIVE (365)
CALENDAR DAYS ALLOCATED TO COMPLETE THE PROJECT. Councilmember Hilliard seconded
the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-141
3.Council to consider a resolution rejecting the bids received for the Wall & Avenue C Lift
Station Rehabilitation Project.
The project would rehabilitate the existing lift station located at the intersection of Wall &
Avenue C. The goal of this rehabilitation is to prevent future flooding issues and improve
the
city’s ability to maintain and operate the lift station.
Fifteen vendors attended the mandatory pre-bid meeting, and the City received two (2)
bids.
However, the submitted bids significantly exceeded the budget allocated for this project.
Therefore, the scope of work will be revised, and the project will re-bid at a later date.
Until a bid is awarded, the bid tabulation will not be made public in order to preclude any
unfair competitive advantage in future bids.
Approval of the resolution.
Mayor Pro Tem Turner moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO REJECT ALL BIDS SUBMITTED FOR THE WALL AND AVENUE C LIFT
STATION REHABILITATION PROJECT. Councilmember Durio seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
Minutes – July 1, 2025
NAYS:NONE
MOTION PASSED
RESOLUTION 25-142
4.Council to consider a resolution authorizing the City Manager to execute Change Order
No. 2, accept maintenance, and authorize final payment to Texas Drainage, Inc., for the
Citywide Ditching Program Phase 2B.
On October 15, 2024, by Resolution No. 24-258, City Council awarded a contract to
Texas
Drainage, Inc., of Waller, Texas, in the amount of $1,275,513.21, for the Citywide Ditching
Program Phase 2B. The work for this phase took place in designated areas of Wards 1
and 4.
There was a previous Change Order No. 1, in the amount of $9,902.20. Proposed
Change Order No. 2, in the amount of ($59,656.96) is required to adjust the estimated
quantities in the contract to reflect the actual quantities used in the completion of the
project. If approved, the adjustment in quantities would result in a final contract amount of
$1,225,758.45.
The project has been inspected by the Engineering Division and found to be complete in
accordance with the provisions and terms set forth in the contract. Acceptance of Change
Order No. 2, maintenance, and final payment in the amount of $90,264.40 is
recommended.
Funds will come from Certificates of Obligation.
Approval of the resolution.
Councilmember Hilliard moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO ACCEPT CHANGE ORDER NO. 2 IN THE AMOUNT OF ($59,656,96),
ACCEPT MAINTENANCE, AND MAKE FINAL PAYMENT TO THE TEXAS DRAINAGE, INC., OF WALLER,
TEXAS IN THE AMOUNT OF $90,246.40, FOR THE CITYWIDE DITCHING PROGRAM PHASE 2 B,
THEREBY INCREASING THE CONTRACT AMOUNT TO $1,225,758.45. Councilmember Sherwood
seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-143
5.Council to consider a resolution authorizing the City Manager to award a contract to
Redzone Robotics, Inc., of Warrendale, PA for the Sanitary Sewer Trunk Main Multi-
Sensor Inspection (MSI) Project.
Minutes – July 1, 2025
The Sanitary Sewer Trunk Main Multi-Sensor Inspection (MSI) project will inspect
approximately 40,000 linear feet of large-diameter sanitary sewers with LiDAR, sonar,
and
CCTV.
On May 15, 2025, four (4) bids were received for furnishing all labor, materials, and
equipment for the project. The Engineer’s Estimate for the contract is $350,000. The bid
totals are indicated in the table below:
ContractorLocationTotal Bid Amount
Redzone Robotics, Inc.Warrendale, PA$294,784.00
Compliance EnviroSystems, LLCBaton Rouge, LA$321,434.00
Hydromax USA, LLCFlower Mound, TX$341,050.00
Specialized Maintenance Services, Inc.Pasadena, TX$344,750.00
Based on a review of the bids and required documents received, Water Utilities staff
recommend awarding the project to the lowest bidder, Redzone Robotics, Inc., in the
amount of $294,784.00. A total of 120 calendar days is allocated for substantial
completion of the project.
Funds will come from Water Revenue Bonds.
Approval of the resolution.
Councilmember Sherwood moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE
AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH REDZONE ROBOTICS, INC., OF
WARRENDALE, PENNSYLVANIA, IN THE AMOUNT OF $294,784.00, FOR THE SANITARY SEWER
TRUNK MAIN MULTI-SENSOR INSPECTION (MSI) PROJECT, WITH A TOTAL OF ONE HUNDRED AND
TWENTY (120) CALENDAR DAYS ALLOCATED TO COMPLETE THE PROJECT. Councilmember
Hilliard seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-144
6.Council to consider a resolution authorizing the City Manager to award a Contract to TRP
Construction Group, LLC of Haltom City, TX for the Citywide Pavement Markings – Phase
IV.
The Citywide Pavement Markings – Phase IV project consists of the removal/installation
of
pavement markings on the following streets: Dowlen Road, Lucas Drive, Northwest
Parkway,
Old Dowlen Road, Pennsylvania Avenue, and Pointe Parkway.
Minutes – July 1, 2025
On April 10, 2025, two (2) bids were received for furnishing all labor, materials, and
equipment for the project. The Engineer’s Estimate is $498,757.80. The bid totals are
indicated in the table below:
ContractorLocationBase Bid Amount
TRP Construction Group, LLCHaltom City, TX$475,497.00
MB Western Construction Co.Houston, TXNon-Responsive
The Public Works Engineering staff recommends that this project be awarded to TRP
Construction Group, LLC, in the amount of $475,497.00. A total of 120 calendar days is
allocated for the completion of the project.
Funds will come from Certificates of Obligation.
Approval of the resolution.
Councilmember Hilliard moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO EXECUTE A CONTACT WITH TRP CONSTRUCTION GROUP, LLC, OF
HALTOM CITY, TEXAS, IN THE AMOUNT OF $475,497.00, FOR THE CITYWIDE PAVEMENT MARKINGS
– PHASE IV, WITH A TOTAL OF ONE HUNDRED AND TWENTY (120) CALENDAR DAYS ALLOCATED TO
COMPLETE THE PROJECT. Councilmember Williams seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-145
7.Council to consider a resolution authorizing the City Manager to award a contract to
ALLCO, LLC., of Beaumont, TX for the Street Rehabilitation Citywide – Phase VI.
The Street Rehabilitation Citywide – Phase VI is comprised of twenty-two (22) roadways
scheduled for rehabilitation that consist of milling existing asphalt pavement, ASB repairs,
curb and gutter repairs, crack and joint sealing existing pavement, base stabilization with
cement or cem-lime slurry, roadway resurfacing pavement with Hot Mix Asphalt Concrete
(HMAC) and new pavement markings, and five (5) roadways scheduled for pavement
preservation that consist of profile milling existing asphalt, spot full depth repair of road
base, and thin overlay resurfacing pavement with HMAC.
On June 12, 2025, two (2) bids were received for the project, which includes furnishing all
necessary labor, materials, and equipment. The Engineer’s Estimate for the project is
$8,393,132.00. The bid totals are shown in the table below:
ContractorLocationBase Bid Amount
ALLCO, LLCBeaumont, TX$6,927,234.95
Texas Materials Group, Inc., dba Gulf Beaumont, TX$7,067,734.50
Coast
The Public Works Engineering staff recommends that this project be awarded to the
lowest
Minutes – July 1, 2025
bidder, ALLCO, LLC., in the amount of $6,927,234.95. A total of 365 calendar days is
allocated for completion of the project.
Funds will come from Certificates of Obligation.
Approval of the resolution.
Mayor Pro Tem Turner moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH ALLCO, LLC., OF BEAUMONT, TEXAS,
IN THE AMOUNT OF $6,927,234.95, FOR THE STREET REHABILITATION CITYWIDE-PHASE VI, WITH
A TOTAL OF THREE HUNDRED AND SIXTY-FIVE (365) DAYS ALLOCATED TO COMPLETE THE
PROJECT. Councilmember Durio seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-146
8. Council to consider a resolution authorizing the City Manager to award a contract to
Legacy Commercial Contractors, LLC, of Dallas, TX, for the Orange Avenue 20” Water
Line Replacement (From Fannin Street to Forsythe Street) Project.
The Orange Avenue – 20” Water Line Replacement (From Fannin Street to Forsythe
Street) will replace the existing 20” cast iron water line with a new 20” Fusible PVC water
line within a casing via directional drilling methods under the CPKC railroad.
On June 5, 2025, five (5) bids were received for furnishing all labor, materials, and
equipment
for the project. The Engineer’s Estimate for the contract is $1,057,299.75. The bid totals
are
indicated in the table below:
ContractorLocationTotal Bid Amount
Legacy Commercial Contractors, LLCDallas, TX$ 606,027.69
Experts Underground SolutionsChannelview, TX$ 884,480.00
SETEX Construction Corp.Beaumont, TX$1,014,047.91
MK Constructors (BDS ConstructorsVidor, TX$1,148,675.00
LLC dba MK Constructors)
Global Drilling, Inc.Winnie, TX$1,565,165.00
Based on a review of the bids and required documents received, Water Utilities staff
agrees with Leavins Engineering & Design LLC (LEAD) and recommends awarding the
project to the
lowest bidder, Legacy Commercial Contractors, LLC, in the amount of $606,027.69. A
total of
42 calendar days are allocated for substantial completion of the project.
Funds will come from Water Revenue Bonds.
Minutes – July 1, 2025
Approval of the resolution.
Mayor Pro Tem Turner moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH LEGACY COMMERCIAL
CONTRACTORS, LLC, OF DALLAS, TEXAS, IN THE AMOUNT OF $606,027.69, FOR THE ORANGE
AVENUE 20’ WATER LINE REPLACEMENT (FROM FANNIN STREET TO FORSYTHE STREET) PROJECT,
WITH A TOTAL OF FORTY-TWO (42) CALENDAR DAYS ALLOCATED FOR SUBSTANTIAL COMPLETION
OF THE PROJECT. Councilmember Sherwood seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-147
PUBLIC HEARING
Council to conduct a Public Hearing to receive comments regarding a grant application to
the FTA for the Fiscal Year 2025 Bus and Bus Facilities Competitive Program to receive
funds for the Zip
Public Hearing Open: 3:51 p.m.
None
Public Hearing Close: 3:55 p.m.
REGULAR AGENDA
9.Council to consider a resolution authorizing the City Manager to submit a grant
application to the Federal Transit Administration (FTA) to receive funds for the Zip.
Administration seeks authorization to submit a grant application to the FY25 Bus and Bus
Facilities Program. To improve our transit system, it is imperative to enhance our bus
stops, realtime tracking technology, and transit facilities. The funding requested to the
FTA will be a total of $2,352,000 (80%), which requires a local match of $588,000 (20%).
Staff contacted
TXDOT and requested a commitment of $588,000.00 in transportation development
credits to partner with us in these needed projects by subsidizing our local match. This
item will come back to the City Council prior to execution of a contract with the FTA. At
that time, staff will know if TXDOT agreed to issue transportation development credits to
subsidize the required local match.
If awarded, grant funds will be used to replace the generator, and procure real-time
tracking
hardware, and install sixty (60) bus shelters and benches. The total cost of said projects
is
$2,940,000.
Minutes – July 1, 2025
Funds will come from the Federal Transit Administration (FTA).
SourceAmount
Federal Transit Administration$2,352,000.00
City Share$ 588,000.00
Total$2,940,000.00
Approve the resolution.
Councilmember Hilliard moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND
HE IS HEREBY AUTHORIZED TO SUBMIT A GRANT APPLICATION AND EXECUTE A CONTRACT WITH
THE FEDERAL TRANSIT ADMINISTRATION (FTA) TO RECEIVE FUNDS FOR THE BEAUMONT ZIP IN THE
AMOUNT OF $2,352,000.00. Mayor Pro Tem Turner seconded the motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO,
HILLIARD, WILLIAMS, SHERWOOD AND CRENSHAW
NAYS:NONE
MOTION PASSED
RESOLUTION 25-148
Council recessed into Executive Session at 3:56 p.m.
EXECUTIVE SESSION
Discuss and or deliberate Economic Development negotiations in accordance with
Section 551.087 of the Government Code to wit; specifically:
“Project Riverfront”
“Downtown Hotel Project”
Consider matters related to contemplated or pending litigation in accordance with Section
551.071 of the Government Code:
Caleb Fenter and Beaumont Professional Firefighters Local #399
(Intervenors) v. City of Beaumont, Christopher S. Boone, Kenneth Williams,
Roy West, Earl White, Taylor Neild, Mike Getz, Audwin Samuel, Charles
Durio, Albert Turner, and Randy Feldschau; Cause No. B-210244
Council reconvened into Regular Session at 6:46 p.m.
Roll Call – All Councilmembers were present
REGULAR AGENDA
10. Council to consider a resolution authorizing the settlement of the lawsuit styled Caleb
Fenter and Beaumont Professional Firefighters Local #399 (Intervenors) v. City of
Minutes – July 1, 2025
Beaumont, Christopher S. Boone, Kenneth Williams, Roy West, Earl White, Taylor Neild,
Mike Getz, Audwin Samuel, Charles Durio, Albert Turner, and Randy Feldschau.
The lawsuit styled Caleb Fenter and Beaumont Professional Firefighters Local #399
(Intervenors) v. City of Beaumont, Christopher S. Boone, Kenneth Williams, Roy West,
Earl White, Taylor Neild, Mike Getz, Audwin Samuel, Charles Durio, Albert Turner, and
Randy Feldschau; Cause No. B-210244, was presented and discussed in Executive
Session held on July 1, 2025. The City Attorney is requesting authority to settle this suit in
accordance with the settlement agreement.
Funds will come from the General Liability and General Fund.
Councilmember Durio moved to table this item. Councilmember Sherwood seconded the
motion.
AYES:MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO AND
SHERWOOD
NAYS:COUNCILMEMBERS HILLIARD, WILLIAMS AND CRENSHAW
MOTION PASSED
COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen on the
City of Beaumont’s website at beaumonttexas.gov)
With there being no other business to come before Council, the meeting adjourned at 7:00 p.m.
Roy West, Mayor
Tina Broussard, City Clerk
Minutes – July 1, 2025
B
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Sharae Reed, City Attorney
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider appointments to the Planning Commission,
Animal Care Advisory Committee, Community Development
Advisory Committee, and Parks and Recreation Advisory
Committee.
BACKGROUND
Mayor Roy West appoints Carol Dixon to the Planning Commission to fill the unexpired term of
Erika Harris as an alternate.
Mayor Roy West appoints Taylor Westphal to the Animal Care Advisory Committee to fill the
unexpired term of Maryjane Benning as the Humane Society representative, and Lisa Bond to fill
the unexpired term of Debbie Rogers as the Resident-at-Large.
Mayor Pro Tem Albert Turner appoints Gabriel Crosby to the Community Development Advisory
Committee to fill the unexpired term of Milton Hill.
Councilwoman LaDonna Sherwood appoints Isiah Tyson to the Parks and Recreation Advisory
Committee to fill the unexpired term of Latoya Young.
The terms for all the above appointees shall begin on July 15, 2025, and expire on September 30,
2025.
FUNDING SOURCE
None.
RECOMMENDATION
None.
ATTACHMENTS
C
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Angela Wright, Chief Technology Officer
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider an amendment to Resolution 25-020 to
authorize the Deputy Controller, at the City Manager’s request, to
apply for and receive funding in an amount not to exceed $48,000
through the State and Local Cybersecurity Grant Program, as
approved by the Office of the Governor.
BACKGROUND
The State and Local Cybersecurity Grant Program (SLCGP) is funded through a Congressional
appropriation to the U.S. Department of Homeland Security (DHS). The City is seeking $48,000
in grant funding to support the engagement of a Cybersecurity Consultant for the creation and
enhancement of cybersecurity policies. This initiative will support the drafting of policies
aligned with regulatory frameworks and industry best practices. The grant requires a 20% local
match, totaling $9,600, with the federal share covering $38,400. At the request of the Office of
the Governor, this amendment authorizes the Deputy Controller, at the City Manager’s request,
to apply for and receive the funds under the SLCGP.
FUNDING SOURCE
General Fund Contract Services
RECOMMENDATION
Approval of the Resolution
ATTACHMENTS
Resolution 25-020
D
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Tim Ocnaschek, Chief of Police
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution to authorize the City Manager or his
designee to apply for and receive funding in an amount up to
$87,539.17 through the U.S. Department of Justice Project Safe
Neighborhoods Block Grant Program (PSN)
BACKGROUND
On February 6, 2024, Resolution NO. 24-039, City Council approved the submission of a grant
application to the Office of the Governor’s Public Safety Office requesting $70,000 to fund
overtime for personnel in an effort to reduce violent crime. The original grant was awarded on
December 12, 2024. Following the identification of $17,539.17 in unspent funds by the Public
Safety Office, the Eastern District of Texas selected the City of Beaumont to receive a
supplemental award. This increased the total grant amount to $87,539.17. The additional funding
will further support the City’s efforts to deploy personnel during critical times and locations,
enhancing public safety and violence reduction initiatives.
FUNDING SOURCE
No local match is required.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
E
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Demi Engman, Director of Planning and Community Development
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution authorizing the City Manager to enter
a contract with Habitat for Humanity for the use of HOME
Investment Partnership funds from the U.S. Department of Housing
and Urban Development (HUD).
BACKGROUND
The City of Beaumont receives an annual allocation of HOME Investment Partnership funds
from the U.S. Department of Housing and Urban Development (HUD). Federal regulations
require that a minimum of fifteen percent (15%) of the City's total HOME fund allocation be
awarded to Community Housing Development Organizations (CHDOs) for eligible CHDO
activities.
Two hundred seventy-nine (279) vendors were notified via email as well as advertising on the
City web page and in the local newspaper. Four (4) proposals were submitted. A committee of
three (3) was selected to review the responses. Habitat for Humanity of Jefferson County
received the highest ranking. Scoring summary is attached.
Habitat for Humanity, a certified CHDO, is seeking to increase neighborhood stability by
providing affordable home ownership opportunities for low-income households. Habitat for
Humanity proposes to use $80,321 (2024 HOME CHDO Reserve Funds) and $208,879 (2024
HOME Entitlement Funds) for the construction of two single family homes to be sold to low-
income households. Any and all income received by Habitat for Humanity from the development
of these properties must be used to further the organization’s affordable housing activities.
Housing Division staff will be responsible for monitoring Habitat for Humanity for HOME
Program compliance.
FUNDING SOURCE
2024 HOME Program
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
Scoring Detail - HOME Program
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F
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Tim Ocnaschek, Chief of Police
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider a resolution to authorize the Deputy Controller
to apply for and receive funding in an amount up to $152,779.00
through the U.S. Department of Justice, Office of Community
Oriented Policing Services-Community Policing Development
Microgrants program.
BACKGROUND
The Police Department seeks authorization to apply for funding through the U.S. Department of
Justice Office of Community Oriented Policing Services (COPS) FY25 Community Policing
Development (CPD) Microgrants Program. This competitive grant program supports innovative
projects that advance community policing strategies nationwide.
The proposed application requests funding for the acquisition of two advanced forensic and
chemical detection tools: a Latent Fingerprint Detection Tablet, $76,730, and a Handheld Mass
Spectrometry (Mass Spec) Chemical Detection System, $76,049. These technologies will
significantly enhance the department’s investigative capabilities, particularly in the areas of
crime scene processing and hazardous substance identification. The Latent Fingerprint
Detection Tablet will allow for rapid, on-site identification of latent prints, improving the
efficiency and accuracy of evidence collection. The Handheld Mass Spec Chemical Detection
System will enable officers to quickly and safely identify unknown substances in the field,
supporting both public safety and officer safety during potentially hazardous incidents.
FUNDING SOURCE
No local match is required.
RECOMMENDATION
Approval of Resolution.
ATTACHMENTS
None.
G
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution approving the six (6) month contract
to supply asphaltic concrete for use by the City.
BACKGROUND
The Public Works Department purchases approximately seven hundred fifty (750) tons of
asphaltic concrete for various projects. The initial term of the contract is for six (6) months. At
the end of the initial term, the City may renew the contract for two (2) additional six (6) month
terms at the prices quoted.
There is only one (1) provider of hot-mix asphaltic concrete in the local area. Texas Materials
Group dba Gulf Coast, who holds the current contract, responded with a qualified bid of
$96,500.00. This is an increase of just over 5% from the previous bid submission. Bid tabulation
is attached.
FUNDING SOURCE
General Fund.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
Bid Tabulation - Asphaltic Concrete
DF0625-21 - Page 1
$96,500.00
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City of Beaumont, Texas eBidsPurchasingDwayne Oxnerdwayne.oxner@beaumonttexas.gov(409) 880-3175
wĻƭƦƚƓƭĻ {ǒĬƒźƷƷĻķ
6/26/2025 08:44:56 AM (CT)
TX
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DF0625-21Six (6) Month Contract for Road Materials - Asphaltic ConcreteThe City of Beaumont is requesting bids for a six (6) month contract to supply asphaltic concrete to be used
by 6/5/2025 12:22:55 PM (CT)6/26/2025 02:00:00 PM (CT)/źƷǤ Beaumont
9ǝĻƓƷ bǒƒĬĻƩ9ǝĻƓƷ źƷƌĻ9ǝĻƓƷ 5ĻƭĭƩźƦƷźƚƓLƭƭǒĻ 5ğƷĻ/ƌƚƭĻ 5ğƷĻwĻƭƦƚƓķźƓŭ {ǒƦƦƌźĻƩ Texas Materials Group, Inc., dba Gulf Coast tƌĻğƭĻ ƓƚƷĻʹ \[źƓĻƭ wĻƭƦƚƓķĻķ ğƓķ wĻƭƦƚƓƭĻ ƚƷğƌ ƚƓƌǤ
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H
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Sharae Reed, City Attorney
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider a resolution to amend Resolution 25-134.
BACKGROUND
Council adopted Resolution 25-134 approving Mayor West's appointment of Jeromy Burberl to
fill the unexpired term of Joey Hilliard. The resolution did not specify which board Mr. Buberl
was appointed to and misspelled his last name. Thus, an amendment is required to include the
following language: "Mayor West appoints Jeromy Buberl to the Board of Adjustment to fill the
unexpired term of Joey Hillard."
The adoption of this resolution shall not impact the term of the appointment.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
1
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Sharae Reed, City Attorney
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council to consider a resolution authorizing the City Manager to
execute an amendment to the Interim Services Agreement between
the City and Stonehenge Holdings, LLC to expand the scope of
work.
BACKGROUND
On October 29, 2024, Council adopted Resolution 24-283 authorizing the City Manager to
execute an agreement with Stonehenge Holdings, LLC. On April 29, 2025, Council adopted
Resolution 25-090, amending the agreement to extend the deadline for deliverables from July
2025 to November 30, 2025. After further discussion, the parties have agreed to expand the
scope of work and increasing the amount of fees for the original agreement requiring a second
amendment.
FUNDING SOURCE
General Fund.
RECOMMENDATION
None.
ATTACHMENTS
2
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution authorizing the City Manager to
execute Change Order No. 2 to the contract with King Solution
Services, LLC, of Houston, TX for the Grand Avenue & Magnolia
Avenue Pipe Bursting Contract – Phase I.
BACKGROUND
On November 19, 2024, by Resolution No. 24-304, City Council awarded a contract to King
Solution Services, LLC, of Houston, TX in the amount of $2,954,370.00 for the Grand Avenue
& Magnolia Avenue Pipe Bursting Contract – Phase I.
Previous Change Order No. 1, in the amount of $57,700.00 is attached for your reference.
Proposed Change Order No. 2, in the amount of $156,000.00, is needed to add one (1) additional
bid item to the contract due to unforeseen site conditions and the instability of the underlying soil
beneath the pavement. An additional 25 calendar days are requested for the additional work.
If approved, the new contract amount would be $3,168,070.00.
FUNDING SOURCE
American Rescue Fund and Water Revenue Bonds.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
Proposed Change Order No. 2
3
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution authorizing the City Manager to award
a contract to Volta, LLC, of Houston, TX, for the Wastewater
Treatment Plant Power Distribution Switchgear Building Pre-
Purchase Project.
BACKGROUND
The Wastewater Treatment Plant Power Distribution Switchgear Building Pre-Purchase Project
is the pre-purchase, pre-fabrication, and placement of the new switchgear building at the
Wastewater Treatment Plant to replace the damaged switchgear and move the remaining
electrical components in the electrical room to a freestanding building.
On May 1, 2025, two (2) bids were received for furnishing all labor, materials, and equipment
for the project. The Engineer’s Estimate for the contract is $1,472,575.00. The bid totals are
indicated in the table below:
Option 1Option 2Days
ContractorLocation
Volta, LLCHouston, TX$1,988,259.00$1,859,433.00378
Blackstar Diversified
Enterprises, LLCNew Orleans, LA$2,322,605.00$2,290,596.00252
Based on a review of the bids and required documents received, Water Utilities staff agrees with
EPIC Engineering LLC, and recommends awarding the project to the lowest bidder, Volta, LLC
in the amount of $1,859,433.00. A total of 378 calendar days is allocated for substantial
completion of the project.
FUNDING SOURCE
Water Revenue Bonds.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
WWTP Power Distribution Switchgear Building
4
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Amalia Villarreal, P.E., CFM, Director of Public Works
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution authorizing the City Manager to
execute Change Order No. 2 to the contract with Norman Highway
Constructors, Inc., for the Bridge Repair Project – Various
Locations Citywide (REBID).
BACKGROUND
On November 19, 2024, by Resolution No. 24-302, City Council awarded a contract to Norman
Highway Constructors, Inc., of Orange, in the amount of $1,679,207.00, for the Bridge Repair
Project – Various Locations Citywide (REBID).
Previous Change Order No. 1, in the amount of $6,800.00, is attached for your review.
Proposed Change Order No. 2, in the amount of $14,431.96, is necessary due to an unforeseen
site condition discovered after the removal of the asphalt overlay on the west side of the bridge
on N Circuit Drive. The originally planned Multi-Layer Polymer Overlay is very thin and would
not transition effectively from the asphalt on N Circuit to the bridge deck.
This Change Order addresses the work required to remove an additional five (5) inches of
existing asphalt from the west side of the bridge, twenty-five (25) feet from the abutment. It also
includes placing a thicker asphalt overlay that tapers down from the existing asphalt to ensure a
minimum of two (2) inches of asphalt overlay on the bridge deck, while seamlessly tying into the
existing asphalt on the east side of the bridge. Additionally, this work will involve modifications
to the curb along each side of the bridge to accommodate the extra asphalt overlay.
If approved, Change Order No. 2 will result in a new contract amount of $1,700,438.96, and an
additional five (5) calendar days will be added to the contract.
FUNDING SOURCE
Certificates of Obligation.
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
Bridge Repair CO2
5
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Duncan Brown, Assistant Chief Financial Officer
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider an ordinance authorizing the issuance and sale of
City of Beaumont, Texas, Certificates of Obligation, Series 2025 in
an estimated amount not to exceed $20.5 Million; levying taxes to
provide for payment thereof; and containing other matters related
thereto.
BACKGROUND
At the May 20, 2025 City Council meeting, the City Council authorized a resolution for the City
to publish the requirement for the issuance of Certificates of Obligation (COs). This allowed
the City to be in compliance with Texas law to provide a 45-day notice period prior to approval
of the issuance. This funding for the issuance of Certificates of Obligation was included in the
City’s current fiscal year’s adopted budget. This funding will be used to pay for capital projects
that include the construction of public works-related projects, more specifically, the construction
and improvement of parks and park facilities, as well as roads and the drainage system.
This Ordinance approves the issuance of the Certificates of Obligation, Series 2025. It authorizes
the senior City staff to execute the final pricing documents at the time the COs are actually sold
in the market. This Ordinance limits the final par amount of the Certificates of Obligation to
$20.5MM and a final maturity not to exceed March 1, 2045.
We expect to sell the Certificates of Obligation in the next two weeks. This Ordinance would
provide the City with flexibility when entering the market.
Delivery and receipt of the proceeds by the City are expected before the end of August.
FUNDING SOURCE
Principal and interest are paid from the Debt Service Fund which is supported by property taxes.
RECOMMENDATION
Approval of ordinance.
ATTACHMENTS
Series 2025 Certificates of Obligation Ordinance
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS§
COUNTY OF JEFFERSON§
I, the undersigned City Clerk of the City of Beaumont, Texas (the “City”), hereby certify as
follows:
1.The City Council of the City convened in regular meeting on July 15, 2025, at the
place stated in the notice of such meeting given as stated below, and the roll was called of the duly
constituted official and members of said City Council, to wit:
Roy WestMayor
Albert TurnerMayor Pro Tem
Mike WilliamsCouncilmember
Cory CrenshawCouncilmember
Joeseph HilliardCouncilmember
LaDonna SherwoodCouncilmember
Charles DurioCouncilmember
And all of said persons were present except ______________ and __________, thus
constituting a quorum. Whereupon, among other business, the following was transacted at said
meeting: a written
AN ORDINANCE OF THE CITY OF BEAUMONT, TEXAS, AUTHORIZING THE ISSUANCE
AND SALE OF CITY OF BEAUMONT, TEXAS, CERTIFICATES OF OBLIGATION, SERIES
2025 IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,500,000;
AUTHORIZING EACH OF THE MAYOR, THE MAYOR PRO TEM, THE CITY MANAGER
AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES,
PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING
THERETO; LEVYING A TAX IN PAYMENT THEREOF; MAKING OTHER PROVISIONS
REGARDING SUCH CERTIFICATES OF OBLIGATION, INCLUDING AUTHORIZING THE
PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL
STATEMENTS, ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT
THERETO; AWARDING THE SALE OF THE CERTIFICATES; AUTHORIZING THE
EXECUTION AND DELIVERY OF ONE OR MORE PURCHASE AGREEMENTS;
AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR
AGREEMENT; AUTHORIZING AND CONFIRMING THE ENGAGEMENT OF CERTAIN
PROFESSIONALS IN CONNECTION WITH THE ISSUANCE OF THE CERTIFICATES OF
OBLIGATION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND
ENACTING OTHER PROVISIONS RELATING THERETO.
was duly introduced for the consideration of said City Council and read in full. It was then duly
moved and seconded that said ordinance be adopted; and after due discussion, such motion, carrying
#524273699_v1
with it the adoption of said ordinance, prevailed and carried by the following vote:
AYES: 5
NOES: 0
ABSTENTIONS: 0
2.That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting
described in the above and foregoing paragraph is attached to and follows this certificate; that said
ordinance has been duly recorded in said City Council’s minutes of said meeting; that the above and
foregoing paragraph is a true, full, and correct excerpt from the said City Council’s minutes of said
meeting pertaining to the adoption of said ordinance; that the persons named in the above and
foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City
Council as indicated therein; that each of the officers and members of said City Council was duly and
sufficiently notified officially and personally, in advance, of the date, hour, place, and purpose of the
aforesaid meeting, and each of said officers and members consented, in advance, to the holding of
said meeting for such purpose; that said meeting was open to the public as required by law; and that
public notice of the date, hour, place and subject of said meeting was given as required by the Texas
Open Meetings Act.
SIGNED AND SEALED this July 15, 2025.
_________________________________
City Clerk
\[SEAL\]
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#524273699_v1
ORDINANCE NO. 24-034
AN ORDINANCE OF THE CITY OF BEAUMONT, TEXAS, AUTHORIZING THE ISSUANCE
AND SALE OF CITY OF BEAUMONT, TEXAS, CERTIFICATES OF OBLIGATION, SERIES
2025 IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,500,000;
AUTHORIZING EACH OF THE MAYOR, THE MAYOR PRO TEM, THE CITY MANAGER
AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES,
PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING
THERETO; LEVYING A TAX IN PAYMENT THEREOF; MAKING OTHER PROVISIONS
REGARDING SUCH CERTIFICATES OF OBLIGATION, INCLUDING AUTHORIZING THE
PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL
STATEMENTS, ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT
THERETO; AWARDING THE SALE OF THE CERTIFICATES; AUTHORIZING THE
EXECUTION AND DELIVERY OF ONE OR MORE PURCHASE AGREEMENTS;
AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR
AGREEMENT; AUTHORIZING AND CONFIRMING THE ENGAGEMENT OF CERTAIN
PROFESSIONALS IN CONNECTION WITH THE ISSUANCE OF THE CERTIFICATES OF
OBLIGATION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND
ENACTING OTHER PROVISIONS RELATING THERETO.
******
WHEREAS, under the provisions of Subchapter C, Chapter 271, Texas Local Government Code,
as amended (the “Act”), the City of Beaumont, Texas, is authorized to issue certificates of obligation for
the purposes specified in this Ordinance and for the payment of all or a portion of the contractual
obligations for professional services, including that of engineers, attorneys, and financial advisors in
connection therewith, and to sell the same for cash as herein provided; and
WHEREAS, the City is authorized to provide that such obligations will be payable from and
secured by the levy of a direct and continuing ad valorem tax, within the limits prescribed by law, against
all taxable property within the City, in combination with a limited pledge of a subordinate lien on the net
revenues of the City’s waterworks and sewer system in an amount not to exceed $10,000.00 as authorized
by the Act and Chapter 1502, Texas Government Code; and
WHEREAS, the City shall by this Ordinance, in accordance with the provisions of Chapter 1371
and 1502, Texas Government Code, as amended, delegate to a Pricing Officer (hereinafter designated) the
authority to determine the principal amount of Certificates to be issued and negotiate the terms of sale
thereof; and
WHEREAS, the City Council hereby finds and determines that it is a public purpose and in the
best interests of the City to (1) issue the Certificates with such terms to be included in a pricing certificate
(the “Pricing Certificate”) to be executed by the Pricing Officer, all in accordance with the provisions of
Chapters 1371 and 1502, Texas Government Code, as amended; and
WHEREAS, the City Council has found and determined that it is necessary and in the best
interests of the City and its citizens that it issue such certificates of obligation authorized by this
Ordinance; and
WHEREAS, pursuant to a resolution heretofore passed by this governing body, notice of
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intention to issue certificates of obligation of the City payable as provided in this Ordinance was
published in the Examiner, a newspaper of general circulation of the City in accordance with the laws of
the State of Texas; and
WHEREAS, no petition of any kind has been filed with the City Clerk, any member of the City
Council, or any other official of the City, protesting the issuance of such certificates of obligation; and
WHEREAS, this City Council is now authorized and empowered to proceed with the issuance of
said certificates of obligation and to sell the same for cash; and
WHEREAS, the meeting at which this Ordinance is considered is open to the public as required
by law, and public notice of the time, place, and purpose of said meeting was given as required by
Chapter 551, Texas Government Code, as amended; now therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
ARTICLE I.
DEFINITIONS AND OTHER PRELIMINARY MATTERS
Section 1.01.Definitions.
Unless otherwise expressly provided or unless the context clearly requires otherwise in this
Ordinance, the following terms shall have the meanings specified below:
"Business Day" means any day which is not a Saturday, Sunday or legal holiday, or day on which
banking institutions in the State of Texas or the city in which the Designated Payment/Transfer Office is
located are generally authorized or obligated by law or executive order to close.
"Certificate" means any of the Certificates.
"Certificate Date" means the date designated as the initial date of the Certificates by Section
3.01(a) of this Ordinance.
"Certificates" mean the certificates of obligation authorized to be issued by Section 3.01 of this
Ordinance and designated as "City of Beaumont, Texas, Certificates of Obligation, Series 2025."
"City" means the City of Beaumont, Texas.
“City Manager” means the City Manager or the Interim City Manager of the City.
"Closing Date" means the date of the initial delivery of and payment for the Certificates.
"Code" means the Internal Revenue Code of 1986, as amended, including applicable regulations,
published rulings, and court decisions.
"Designated Payment/Transfer Office" means (i) with respect to the initial Paying Agent/Registrar
named herein, its office in Dallas, Texas, or at such other location designated by the Paying Agent/Registrar
and (ii) with respect to any successor Paying Agent/Registrar, the office of such successor designated and
located as may be agreed upon by the City and such successor.
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"DTC" means The Depository Trust Company of New York, New York, or any successor
securities depository.
"DTC Participant" means brokers and dealers, banks, trust companies, clearing corporations and
certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance
and settlement of securities transactions among DTC Participants.
"Event of Default" means any event of default as defined in Section 10.01 of this Ordinance.
"Fiscal Year" means such fiscal year as shall from time to time be set by the City Council.
"Initial Certificate" means the initial certificate authorized by Section 3.01 of this Ordinance.
"Interest and Sinking Fund" means the interest and sinking fund established by Section 2.02 of
this Ordinance.
"Interest Payment Date" means the date or dates on which interest on the Certificates is scheduled
to be paid until their respective dates of maturity or prior redemption, such dates being March 1 and
September 1, commencing March 1, 2026.
"MSRB" means the Municipal Securities Rulemaking Board.
"Net Revenues" means the revenues of the System in an amount not to exceed $10,000.00
remaining after payment of all operation and maintenance expenses thereof.
“Ordinance” as used herein and in the Certificates means this ordinance authorizing the
Certificates.
"Owner" means the person who is the registered owner of a Certificate or Certificates, as shown
in the Register.
"Paying Agent/Registrar" means initially UMB Bank, N.A., Houston, Texas, or any successor
thereto as provided in this Ordinance.
“Paying Agent/Registrar Agreement” means the Paying Agent/Registrar Agreement between the
Paying Agent/Registrar and the City relating to the Certificates.
“Pricing Certificate" shall mean a certificate or certificates to be signed by a Pricing Officer of
the City pursuant to Section 3.02 hereof and delivered to the City Clerk, in substantially the form attached
hereto as “Exhibit A.”
"Pricing Officer(s)" shall mean the Mayor, Mayor Pro Tem, City Manager, or Chief Financial
Officer of the City.
"Project" means the purposes for which the Certificates are issued as set forth in Section 3.01.
"Record Date" means the 15th day of the month preceding such interest payment date.
"Register" means the bond register specified in Section 3.08(a) of this Ordinance.
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"Representation Letter" means the Blanket Letter of Representation between the City and DTC.
"Rule" means SEC Rule 15c2-12, as amended from time to time.
"SEC" means the United States Securities and Exchange Commission.
"Special Payment Date" means the Special Payment Date prescribed by Section 3.05(b) of this
Ordinance.
"Special Record Date" means the Special Record Date prescribed by Section 3.05(b) of this
Ordinance.
"System" as used in this Ordinance means the City's combined waterworks and sewer system,
including all present and future additions, extensions, replacements, and improvements thereto.
"Unclaimed Payments" means money deposited with the Paying Agent/Registrar for the payment
of principal of, redemption premium, if any, or interest on the Certificates as the same becomes due and
payable or money set aside for the payment of Certificates duly called for redemption prior to maturity
and remaining unclaimed by the Owners of such Certificates for ninety (90) days after the applicable
payment or redemption date.
“Underwriters” The engagement of TRB Capital Markets (d/b/a Estrada Hinojosa), to
serve as the senior underwriter, and SAMCO Capital Markets, Inc. to serve as the co-managers,
in connection with the issuance and sale of the Certificates is hereby approved.
Section 1.02.Findings.
The declarations, determinations, and findings declared, made, and found in the preamble to this
Ordinance are hereby adopted, restated, and made a part of the operative provisions hereof.
Section 1.03.Titles and Headings.
The titles and headings of the Articles and Sections of this Ordinance have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not in any way modify
or restrict any of the terms or provisions hereof and shall never be considered or given any effect in
construing this Ordinance or any provision hereof or in ascertaining intent if any question of intent should
arise.
Section 1.04.Interpretation.
(a)Unless the context requires otherwise, words of the masculine gender
shall be construed to include correlative words of the feminine and neuter genders and vice versa,
and words of the singular number shall be construed to include correlative words of the plural
number and vice versa.
(b)This Ordinance and all the terms and provisions hereof shall be liberally
construed to effectuate the purposes set forth herein.
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ARTICLE II.
SECURITY FOR THE CERTIFICATES; INTEREST AND SINKING FUND
Section 2.01.Tax Levy.
(a)Pursuant to the authority granted by the Texas Constitution and the laws
of the State of Texas, there shall be levied and there is hereby levied for the current year and for
each succeeding year thereafter while any of the Certificates or any interest thereon is outstanding
and unpaid, an ad valorem tax on each one hundred dollars valuation of taxable property within
the City, at a rate sufficient, within the limit prescribed by law, to pay the debt service
requirements of the Certificates, being (i) the interest on the Certificates, and (ii) a sinking fund
for their redemption at maturity or a sinking fund of 2% per annum (whichever amount is
greater), when due and payable, full allowance being made for delinquencies and costs of
collection.
(b)The ad valorem tax thus levied shall be assessed and collected each year
against all property appearing on the tax rolls of the City most recently approved in accordance with
law, and the money thus collected shall be deposited as collected to the Interest and Sinking
Fund.
(c)Said ad valorem tax, the collections therefrom, and all amounts on
deposit in or required hereby to be deposited to the Interest and Sinking Fund are hereby pledged
and committed irrevocably to the payment of the principal of and interest on the Certificates
when and as due and payable in accordance with their terms and this Ordinance.
(d)The City hereby covenants and agrees that the Net Revenues are hereby
irrevocably pledged equally and ratably to the payment of the principal of and interest on the
Certificates, as the same becomes due. The Net Revenues shall be deposited into the Interest and
Sinking Fund at such time as the Net Revenues are to be applied to the payment of the
Certificates.
(e)If the liens and provisions of this Ordinance shall be released in a manner
permitted by Article XIII hereof, then the collection of such ad valorem tax may be suspended or
appropriately reduced, as the facts may permit, and further deposits to the Interest and Sinking
Fund may be suspended or appropriately reduced, as the facts may permit. In determining the
aggregate principal amount of outstanding Certificates, there shall be subtracted the amount of
any Certificates that have been duly called for redemption and for which money has been
deposited with the Paying Agent/Registrar for such redemption.
Section 2.02.Interest and Sinking Fund.
(a)The City hereby establishes special funds or accounts to be designated
"City of Beaumont, Texas, Certificates of Obligation, Series 2025 Interest and Sinking Fund"
(the "Interest and Sinking Fund"), said funds to be maintained at an official depository bank of
the City separate and apart from all other funds and accounts of the City.
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(b)Money on deposit in or required by this Ordinance to be deposited to the
Interest and Sinking Fund shall be used solely for the purpose of paying the interest on and
principal of the Certificates when and as due and payable in accordance with their terms and this
Ordinance.
Section 2.03.Pledge of Revenues.
The Net Revenues to be derived from the operation of the System in an amount not to exceed Ten
Thousand Dollars ($10,000.00) are hereby pledged to the payment of the principal of and interest on the
Certificates as the same come due; provided, however, that such pledge is and shall be junior and
subordinate in all respects to the pledge of the Net Revenues to the payment of all outstanding obligations
of the City and any obligation of the City, whether authorized heretofore or hereafter, which the City
designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates.
The City also reserves the right to issue, for any lawful purpose at any time, in one or more installments,
bonds, certificates of obligation and other obligations of any kind payable in whole or in part from the Net
Revenues, secured by a pledge of the Net Revenues that may be prior and superior in right to, on a parity
with, or junior and subordinate to the pledge of Net Revenues securing the Certificates.
ARTICLE III.
AUTHORIZATION; GENERAL TERMS AND PROVISIONS REGARDING THE
CERTIFICATES
Section 3.01.Amount, Purpose, Sale, and Authorization.
(a)The City's certificates of obligation to be designated "City of Beaumont, Texas,
Certificates of Obligation, Series 2025," shall be dated September 1, 2025, and are hereby
authorized to be issued and delivered in accordance with the Constitution and laws of the State of
Texas, specifically §271.041-063, Local Government Code, V.T.C.A, as amended, in the
principal amount not to exceed $20,500,000.00, for the purpose of paying contractual obligations
to be incurred for the purpose of (1) the construction of public works, more specifically, the
construction of roads and drainage improvements and any items related thereto, and (2) payment
of professional services incurred in connection with item 1.
(b)The issuance of the Certificates is hereby authorized under and in accordance
with the provisions hereof, the officers of the City are each hereby authorized to execute, attest,
and affix the City's seal to the Certificates and to deliver the Certificates to the Attorney General
of the State of Texas for approval, the Comptroller of Public Accounts for registration and the
Paying Agent/Registrar for authentication, and thereafter to deliver such Certificates to the
Underwriter pursuant to the Purchase Agreement authorized in Section 6.01 herein.
Section 3.02.Sale of Certificates.
As authorized by Chapter 1371 Texas Government Code, as amended, the Pricing Officers are
hereby authorized to act on behalf of the City in selling and delivering the Certificates and carrying out
the other procedures specified in this Ordinance, including any additional designation or title by which the
Certificates shall be known, the number of subseries of Certificates to be issued and the principal amount
of each subseries, the price at which each series of the Certificates will be sold, the manner in which the
Certificates should be delivered, the date or dates (which may be different dates for each series of the
Certificates) on which the Certificates shall be sold, the form in which the Certificates shall be issued
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whether as current interest certificates, as compound interest certificates, or as a combination of current
interest certificates and compound interest certificates, any additional designation or title by which the
Certificates shall be known, the year or years in which each series of the Certificates will mature, the
principal amount to mature in each of such years, the aggregate principal amount of each series of the
Certificates, the rate of interest to be borne by each such maturity, the first interest payment date or
compounding date, as the case may be, the dates, prices, and terms, if any, upon and at which each series
of the Certificates shall be subject to redemption prior to maturity at the option of the City, as well as any
mandatory sinking fund redemption provisions, or make-whole provisions, and such officers are also
hereby authorized to act on behalf of the City in approving all other matters relating to the issuance, sale
and delivery of the Certificates and the purchase of a bond insurance policy or policies for all or any
portion of the Certificates, all of which shall be specified in one or more purchase agreements (the
“Purchase Agreement”) for the Certificates substantially in the form approved by the Pricing Officers, in
accordance with the terms below:
(a)the price to be paid for each series of the Certificates shall not be less
than 90% of the aggregate original principal amount of the current interest certificates
plus accrued interest, if any, thereon from their date to their delivery;
(b)the true interest cost rate for any series of Certificate issued under this
Ordinance shall not exceed 15%, which rate is not in excess of the maximum rate allowed
under Section 1204.006, Texas Government Code;
(c)the aggregate principal amount of each subseries of the Certificates shall
not exceed the maximum amount authorized in Section 3.01;
(d)no Certificate shall mature later than September 3, 2063;
(e)each series of the Certificates to be issued, prior to delivery, must have
been rated by a nationally recognized rating agency for municipal securities in one of the four
highest rating categories for long-term obligations; and
(f)Any finding by the Pricing Officer(s) relating to the sale and delivery of
the Certificates shall have the same force and effect as a finding or determination made by the
City Council.
The authority granted to the Authorized Officer in this Section shall expire on a date one year from the
date of this Ordinance unless otherwise extended by the City by separate action.
Section 3.03.Date, Denomination, Maturities, and Interest.
The Certificates shall be initially issued bearing the numbers, in the principal amounts and
bearing interest at the rates and mature as set forth in the Pricing Certificate and may be transferred and
exchanged as set out in this Ordinance. Certificates delivered in the transfer of or in exchange for other
Certificates shall be numbered in order of their authentication by the Paying Agent/Registrar, shall be in
the denomination of $5,000.00 or integral multiples thereof, and shall mature on the same date and bear
interest at the same rate as the bond or certificates in lieu of which they are delivered. The Certificates
shall be numbered separately from one upward, except the Initial Certificate, which shall be numbered T-
1.
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Section 3.04.Redemption Prior to Maturity.
The Certificates are subject to optional redemption and mandatory redemption as set forth herein.
(a)Optional Redemption.The Certificates maturing on or after March 1,
2034, are subject to redemption at the option of the City on March 1, 2035, or on any date
thereafter, in whole or in part, at a redemption price of par plus accrued interest to the date of
redemption. The City, at least forty-five (45) days before the redemption date, unless a shorter
period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying
Agent/Registrar of such redemption date and of the principal amount of Certificates to be
redeemed.
(b)Mandatory Sinking Fund Redemption.
(i)The Certificates designated as “Term Certificates” in the form of
certificate as set forth in Article V herein (“Term Certificates”), are subject to scheduled
mandatory redemption and will be redeemed by the City, in part at a price equal to the
principal amount thereof, without premium, plus accrued interest to the redemption date,
out of moneys available for such purpose in the Debt Service Fund, on the dates and in
the respective principal amounts as set forth in the form of certificate contained in the
Pricing Certificate.
(ii)Prior to each scheduled mandatory redemption date, the Paying
Agent/Registrar shall select for redemption by lot, or by any other customary method that
results in a random selection, a principal amount of Term Certificates equal to the
aggregate principal amount of such Term Certificates to be redeemed, shall call such
Term Certificates for redemption on such scheduled mandatory redemption date, and
shall give notice of such redemption, as provided in Pricing Certificate.
(iii)The principal amount of the Term Certificates required to be redeemed
on any redemption date pursuant to subparagraph (a) of this Subsection (c) shall be
reduced, at the option of the City, by the principal amount of any Term Certificates
which, at least forty-five (45) days prior to the mandatory sinking fund redemption date
(i) shall have been acquired by the City at a price not exceeding the principal amount of
such Term Certificates plus accrued interest to the date of purchase thereof, and delivered
to the Paying Agent/Registrar for cancellation, or (ii) shall have been redeemed pursuant
to the optional redemption provisions hereof and not previously credited to a mandatory
sinking fund redemption.
Notice of Redemption. Notice of any redemption shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage prepaid, at least thirty (30) days
prior to the date fixed for any such redemption, to the registered owner of each Bond, or
portion thereof to be redeemed, at its address as it appeared on the Register on the close
of business on the business day next preceding the date of mailing such notice; provided,
however, that the failure to send, mail, or receive such notice, or any defect therein or in
the sending or mailing thereof, shall not affect the validity or effectiveness of the
proceedings for the redemption of any Bond. By the date fixed for any such redemption,
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due provision shall be made by the City with the Paying Agent/Registrar for the payment
of the required redemption price for this Bond or the portion hereof which is to be so
redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice
of redemption is given, and if due provision for such payment is made, all as provided
above, this Bond, or the portion thereof which is to be so redeemed, thereby
automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest
after the date fixed for its redemption, and shall not be regarded as being outstanding
except for the right of the registered owner to receive the redemption price plus accrued
interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds
provided for such payment. The Paying Agent/ Registrar shall record in the Register all
such redemptions of the principal of this Bond or any portion hereof. If a portion of any
Bond shall be redeemed, a substitute Bond or Certificates having the same maturity date,
bearing interest at the same rate, in any denomination or denominations in any integral
multiple of $5,000.00, at the written request of the registered owner, and in aggregate
principal amount equal to the unredeemed portion thereof, will be issued to the registered
owner upon the surrender thereof for cancellation, at the expense of the City, all as
provided in the Ordinance. The City, at least forty-five (45) days before the redemption
date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall
notify the Paying Agent/Registrar of such redemption date and of the principal amount of
Certificates to be redeemed.
(c)Conditional Redemption. The City reserves the right in the case of an optional
redemption to give notice of its election or direction to redeem Certificates conditioned upon the
occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned
upon the deposit of money and/or authorized securities, in an amount equal to the amount
necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may
be authorized by law, no later than the redemption date or (ii) that the City retains the right to
rescind such notice at any time prior to the scheduled redemption date if the City delivers a
certificate of the City to the Paying Agent/Registrar instructing the Paying Agent/Registrar to
rescind the redemption notice, and such notice and redemption shall be of no effect if such
moneys and/or authorized securities are not so deposited or if the notice is rescinded. The
Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of
redemption to the affected owners. Any Certificates subject to conditional redemption where
redemption has been rescinded shall remain outstanding, and the rescission shall not constitute
an Event of Default. Further, in the case of a conditional redemption, the failure of the City to
make money and/or authorized securities available in part or in whole on or before the
redemption date shall not constitute an Event of Default.
(d)Defeasance. The City may defease the provisions of this Ordinance and
discharge its obligation to the Owners of any or all of the Certificates to pay principal, interest and
redemption premium, if any, thereon in any manner permitted by law, including by depositing with
the Paying Agent/Registrar, or if authorized by Texas law, with any national or state bank having
trust powers and having combined capital and surplus of at least $50 million, or with the State
Treasurer of the State of Texas either: (a) cash in an amount equal to the principal amount and
redemption premium, if any, of such certificates being defeased plus interest thereon to the date of
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maturity or redemption; or (b) pursuant to an escrow or trust agreement, cash and/or direct bonds of,
or bonds the principal of and interest on which are guaranteed by or secured by the pledge of direct
bonds of the United States of America, in principal amounts and maturities and bearing interest at
rates sufficient to provide for the timely payment of the principal amount and redemption premium,
if any, of such certificates being defeased plus interest thereon to the date of maturity or redemption;
provided, however, that if any of such certificates being defeased are to be redeemed prior to their
respective dates of maturity, provision shall have been made for giving notice of redemption as
provided in this Ordinance. Upon such deposit, such certificates being defeased shall no longer be
regarded to be outstanding or unpaid. Any surplus amounts not required to accomplish such
defeasance shall be returned to the City.
Section 3.05.Medium, Method, and Place of Payment.
(a)The principal of and interest on the Certificates shall be paid in lawful
money of the United States of America.
(b)Interest on the Certificates shall be payable to the Owners as shown in
the Register at the close of business on the Record Date; provided, however, that in the event of
nonpayment of interest on a scheduled Interest Payment Date, and for thirty (30) days thereafter, a
new record date for such interest payment (a "Special Record Date") will be established by the
Paying Agent/Registrar if and when funds for the payment of such interest have been received
from the City. Notice of the Special Record Date and of the scheduled payment date of the past due
interest (the "Special Payment Date," which shall be at least fifteen (15) days after the Special
Record Date) shall be sent at least five Business Days prior to the Special Record Date by United
States mail, first class, postage prepaid, to the address of each Owner of a Certificate appearing in
the Register at the close of business on the last Business Day next preceding the date of mailing
of such notice.
(c)Interest shall be paid by check, dated as of and mailed on the Interest
Payment Date, and sent United States mail, first class, postage prepaid, by the Paying
Agent/Registrar to each Owner, at the address thereof as it appears in the Register, or by such
other customary banking arrangement acceptable to the Paying Agent/Registrar and the Owner;
provided, however, that the Owner shall bear all risk and expense of such alternative banking
arrangement. At the option of an Owner of at least $1,000,000.00 principal amount of
Certificates, interest may be paid by wire transfer to the bank account of such Owner on file with
the Paying Agent/Registrar.
(d)The principal of each Certificate shall be paid to the Owner thereof on
the due date, whether at the maturity date or the date of prior redemption thereof, upon presentation
and surrender of such Certificate at the Designated Payment/Transfer Office.
(e)If the date for the payment of the principal of or interest on the
Certificates is not a Business Day, then the date for such payment shall be the next succeeding
Business Day, and payment on such date shall have the same force and effect as if made on the
original date payment was due and no additional interest shall be due by reason of nonpayment on
the date on which such payment is otherwise stated to be due and payable.
(f)Unclaimed Payments of amounts due hereunder shall be segregated in a
special escrow account and held in trust, uninvested by the Paying Agent/Registrar, for the
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account of the Owner of the Certificates to which such Unclaimed Payments pertain.
Subject to Title 6 of the Texas Property Code, any Unclaimed Payments remaining
unclaimed by the Owners entitled thereto for three (3) years after the applicable payment
or redemption date shall be applied to the next payment or payments on the Certificates
thereafter coming due and, to the extent any such money remains three years after the
retirement of all outstanding Certificates, such money shall be paid to the City to be used
for any lawful purpose. Thereafter, neither the City, the Paying Agent/Registrar, nor any
other person shall be liable or responsible to any Owners of such Certificates for any
further payment of such unclaimed money or on account of any such Certificates, subject
to Title 6 of the Texas Property Code.
Section 3.06.Execution and Registration of Certificates.
(a)The Certificates shall be executed on behalf of the City by the Mayor or
Mayor Pro Tem and the City Clerk, by their manual or facsimile signatures, and the official seal
of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the
Certificates shall have the same effect as if each of the Certificates had been signed manually and
in person by each of said officers, and such facsimile seal on the Certificates shall have the same
effect as if the official seal of the City had been manually impressed upon each of the Certificates.
(b)In the event that any officer of the City whose manual or facsimile
signature appears on the Certificates ceases to be such officer before the authentication of such
Certificates or before the delivery thereof, such manual or facsimile signature nevertheless shall be
valid and sufficient for all purposes as if such officer had remained in such office.
(c)Except as provided below, no Certificate shall be valid or obligatory for
any purpose or be entitled to any security or benefit of this Ordinance unless and until there
appears thereon the Certificate of Paying Agent/Registrar substantially in the form provided
herein, duly authenticated by manual execution by an officer or duly authorized signatory of the
Paying Agent/Registrar. It shall not be required that the same officer or authorized signatory of
the Paying Agent/Registrar sign the Certificate of Paying Agent/Registrar on all of the
Certificates. In lieu of the executed Certificate of Paying Agent/Registrar described above, the
Initial Certificate delivered at the Closing Date shall have attached thereto the Comptroller's
Registration Certificate substantially in the form provided in the Form of Certificates, manually
executed by the Comptroller of Public Accounts of the State of Texas (the “Comptroller”), or by
his duly authorized agent, which certificate is evidence that such Initial Certificate has been duly
approved by the Attorney General of the State of Texas (the “Attorney General”) and that it is a
valid and binding obligation of the City, and has been registered by the Comptroller.
(d)On the Closing Date, one Initial Certificate representing the entire
principal amount of all Certificates, payable in stated installments to the Underwriters, or its
designee, executed by the manual or facsimile signatures of the Mayor or Mayor Pro Tem and
City Clerk of the City, approved by the Attorney General, and registered and manually signed by
the Comptroller, will be delivered to the Underwriters or its designee. Upon payment for the
Initial Certificate, the Paying Agent/Registrar shall cancel the Initial Certificate and deliver to
DTC on behalf of the Underwriters one registered definitive Certificate for each year of maturity
of the Certificates in the aggregate principal amount of all Certificates for such maturity,
registered in the name of Cede & Co., as the nominee of DTC.
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Section 3.07.Ownership.
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(a)The City, the Paying Agent/Registrar and any other person may treat the
person in whose name any Certificate is registered as the absolute owner of such Certificate for
the purpose of making and receiving payment of the principal thereof, for the further purpose of
making and receiving payment of the interest thereon, and for all other purposes (except interest
will be paid to the person in whose name such certificate is registered on the Record Date or
Special Record Date, as applicable), whether or not such Certificate is overdue, and neither the
City nor the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary.
(b)All payments made to the Owner of a Certificate shall be valid and
effectual and shall discharge the liability of the City and the Paying Agent/Registrar upon such
Certificate to the extent of the sums paid.
Section 3.08.Registration, Transfer and Exchange.
(a)So long as any Certificates remain outstanding, the City shall cause the
Paying Agent/Registrar to keep at the Designated Payment/Transfer Office a register (the
"Register") in which, subject to such reasonable regulations as it may prescribe, the Paying
Agent/Registrar shall provide for the registration and transfer of Certificates in accordance with
this Ordinance.
(b)The ownership of a Certificate may be transferred only upon the
presentation and surrender of the Certificate at the Designated Payment/Transfer Office with such
endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar. No
transfer of any Certificate shall be effective until entered in the Register.
(c)The Certificates shall be exchangeable upon the presentation and
surrender thereof at the Designated Payment/Transfer Office for a Certificate or Certificates of
the same maturity and interest rate and in any denomination or denominations of any integral
multiple of $5,000 and in an aggregate principal amount equal to the unpaid principal amount of
the Certificates presented for exchange. The Paying Agent/Registrar is hereby authorized to
authenticate and deliver Certificates exchanged for other Certificates in accordance with this
Section.
(d)Each exchange Certificate delivered by the Paying Agent/Registrar in
accordance with this Section shall constitute an original contractual obligation of the City and
shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate
or Certificates in lieu of which such exchange Certificate is delivered.
(e)No service charge shall be made to the Owner for the initial registration,
subsequent transfer, or exchange for a different denomination of any of the Certificates. The
Paying Agent/Registrar, however, may require the Owner to pay a sum sufficient to cover any tax
or other governmental charge that is authorized to be imposed in connection with the registration,
transfer, or exchange of a Certificate.
(f)Neither the City nor the Paying Agent/Registrar shall be required to
issue, transfer, or exchange any Certificate called for redemption, in whole or in part, within
forty-five (45) calendar days prior to the date fixed for redemption; provided, however, such
limitation shall not be applicable to an exchange by the Owner of the uncalled principal balance of
a Certificate.
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Section 3.09.Cancellation.
All Certificates paid or redeemed before scheduled maturity in accordance with this Ordinance,
and all Certificates in lieu of which exchange Certificates or replacement Certificates are authenticated
and delivered in accordance with this Ordinance, shall be cancelled and proper records shall be made
regarding such payment, redemption, exchange or replacement. The Paying Agent/Registrar shall dispose
of cancelled Certificates in accordance with the Securities Exchange Act of 1934.
Section 3.10.Temporary Certificates.
(a)Following the delivery and registration of the Initial Bond and pending
the preparation of definitive Certificates, the proper officers of the City may execute and, upon
the City’s request, the Paying Agent/Registrar shall authenticate and deliver, one or more
temporary Certificates that are printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination, substantially of the tenor of the definitive Certificates
in lieu of which they are delivered, without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers of the City executing such temporary
Certificates may determine, as evidenced by their signing of such temporary Certificates.
(b)Until exchanged for Certificates in definitive form, such Certificates in
temporary form shall be entitled to the benefit and security of this Ordinance.
(c)The City, without unreasonable delay, shall prepare, execute and deliver
to the Paying Agent/Registrar the Certificates in definitive form; thereupon, upon the presentation
and surrender of the Certificates in temporary form to the Paying Agent/Registrar, the Paying
Agent/Registrar shall cancel the Certificates in temporary form and shall authenticate and deliver
in exchange therefor Certificates of the same maturity and series, in definitive form, in the
authorized denomination, and in the same aggregate principal amount, as the Certificates in
temporary form surrendered. Such exchange shall be made without the making of any charge
therefor to any Owner.
Section 3.11.Replacement Certificates.
(a)Upon the presentation and surrender to the Paying Agent/Registrar of a
mutilated Certificate, the Paying Agent/Registrar shall authenticate and deliver in exchange
therefor a replacement Certificate of like tenor and principal amount, bearing a number not
contemporaneously outstanding. The City or the Paying Agent/Registrar may require the Owner
of such Certificate to pay a sum sufficient to cover any tax or other governmental charge that is
authorized to be imposed in connection therewith and any other expenses connected therewith.
(b)In the event that any Certificate is lost, apparently destroyed or
wrongfully taken, the Paying Agent/Registrar, pursuant to the applicable laws of the State of
Texas and in the absence of notice or knowledge that such Certificate has been acquired by a
bona fide purchaser, shall authenticate and deliver a replacement Certificate of like tenor and
principal amount, bearing a number not contemporaneously outstanding, provided that the Owner
first:
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(i)furnishes to the Paying Agent/Registrar satisfactory evidence of his or
her ownership of and the circumstances of the loss, destruction or theft of such
Certificate;
(ii)furnishes such security or indemnity as may be required by the Paying
Agent/Registrar to save it and the City harmless;
(iii)pays all expenses and charges in connection therewith, including, but not
limited to, printing costs, legal fees, fees of the Paying Agent/Registrar and any tax or
other governmental charge that is authorized to be imposed; and
(iv)satisfies any other reasonable requirements imposed by the City and the
Paying Agent/Registrar.
(c)If, after the delivery of such replacement Certificate, a bona fide
purchaser of the original Certificate in lieu of which such replacement Certificate was issued
presents for payment such original Certificate, the City and the Paying Agent/Registrar shall be
entitled to recover such replacement Certificate from the person to whom it was delivered or any
person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the City or the Paying Agent/Registrar in connection therewith.
(d)In the event that any such mutilated, lost, apparently destroyed or
wrongfully taken Certificate has become or is about to become due and payable, the Paying
Agent/Registrar, in its discretion, instead of issuing a replacement Certificate, may pay such
Certificate if it has become due and payable or may pay such Certificate when it becomes due and
payable.
(e)Each replacement Certificate delivered in accordance with this Section
shall constitute an original additional contractual obligation of the City and shall be entitled to the
benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu
of which such replacement Certificate is delivered.
Section 3.12.Book-Entry Only System.
(a)The definitive Certificates shall be initially issued in the form of a
separate single fully registered Certificate for each maturity. Upon initial issuance, the ownership
of each such Certificate shall be registered in the name of Cede & Co., as nominee of DTC, and
except as provided in Section 3.10 hereof, all of the outstanding Certificates shall be registered in
the name of Cede & Co., as nominee of DTC.
(b)With respect to Certificates registered in the name of Cede & Co., as
nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or
obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant
holds an interest in the Certificates, except as provided in this Ordinance. Without limiting the
immediately preceding sentence, the City and the Paying Agent/Registrar shall have no
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or
any DTC Participant with respect to any ownership interest in the Certificates, (ii) the delivery to
any DTC Participant or any other person, other than an Owner, as shown on the Register, of any
notice with respect to the Certificates, including any notice of redemption, or (iii) the payment to
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any DTC Participant or any other person, other than an Owner, as shown in the Register
of any amount with respect to principal of, premium, if any, or interest on the
Certificates. Notwithstanding any other provision of this Ordinance to the contrary, the
City and the Paying Agent/Registrar shall be entitled to treat and consider the person in
whose name each Certificate is registered in the Register as the absolute Owner of such
Certificate for the purpose of payment of principal of, premium, if any, and interest on
the Certificates, for the purpose of giving notices of redemption and other matters with
respect to such Certificate, for the purpose of registering transfer with respect to such
Certificate, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay
all principal of, premium, if any, and interest on the Certificates only to or upon the order
of the respective Owners, as shown in the Register as provided in this Ordinance, or their
respective attorneys duly authorized in writing, and all such payments shall be valid and
effective to fully satisfy and discharge the City’s obligations with respect to payment of
principal of, premium if any, and interest on the Certificates to the extent of the sum or
sums so paid. No person other than the Owner, as shown in the Register, shall receive a
certificate evidencing the obligation of the City to make payments of amounts due
pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of
written notice to the effect that DTC has determined to substitute a new nominee in place
of Cede & Co., and subject to the provisions in this Ordinance with respect to interest
checks or drafts being mailed to the registered Owner at the close of business on the
Record Date, the word “Cede & Co.” in this Ordinance shall refer to such new nominee
of DTC.
(c)The Representation Letter previously executed and delivered by the City,
and applicable to the City’s obligations delivered in book entry only form to DTC as securities
depository, is hereby ratified and approved for the Certificates.
Section 3.13.Successor Securities Depository; Transfer Outside Book-Entry-Only System.
In the event that the City determines that it is in the best interest of the City and the beneficial
owners of the Certificates that they be able to obtain certificated Certificates, or in the event DTC
discontinues the services described herein, the City shall (i) appoint a successor securities depository,
qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended,
notify DTC and DTC Participants of the appointment of such successor securities depository and transfer
one or more separate Certificates to such successor securities depository; or (ii) notify DTC and DTC
Participants of the availability through DTC of certificated Certificates and cause the Paying
Agent/Registrar to transfer one or more separate registered Certificates to DTC Participants having
Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to
being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in
the name of the successor securities depository, or its nominee, or in whatever name or names Owners
transferring or exchanging Certificates shall designate, in accordance with the provisions of this
Ordinance.
Section 3.14.Payments to Cede & Co.
Notwithstanding any other provision of this Ordinance to the contrary, so long as the Certificates
are registered in the name of Cede & Co., as the nominee of DTC, all payments with respect to principal
of, premium, if any, and interest on such Certificates, and all notices with respect to such Certificates
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shall be made and given, respectively, in the manner provided in the Representation Letter of the City to
DTC.
Section 3.15.Successor Securities Depository; Transfer Outside Book-Entry Only System.
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In the event that the City or the Paying Agent/Registrar determines that DTC is incapable of
discharging its responsibilities described herein and in the representation letter of the City to DTC, and
that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain
certificated Certificates, or in the event DTC discontinues the services described herein, the City or the
Paying Agent/Registrar shall (i) appoint a successor securities depository, qualified to act as such under
Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants
of the appointment of such successor securities depository and transfer one or more separate Certificates
to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through
DTC of Certificates and transfer one or more separate Certificates to DTC Participants having Certificates
credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being
registered in the Register in the name of Cede & Co., as the nominee of DTC, but may be registered in the
name of the successor securities depository, or its nominee, or in whatever name or names Owners
transferring or exchanging Certificates shall designate, in accordance with the provisions of this
Ordinance.
Section 3.16.Payments to Cede & Co.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificates
are registered in the name of Cede & Co., as the nominee of DTC, all payments with respect to the
principal of, premium, if any, and interest on such Certificates, and all notices with respect to such
Certificates, shall be made and given, respectively, in the manner provided in the representation letter of
the City to DTC.
ARTICLE IV.
PAYING AGENT/REGISTRAR
Section 4.01.Appointment of Initial Paying Agent/Registrar.
UMB Bank, N.A., Houston, Texas is hereby appointed as the initial Paying Agent/Registrar for
the Certificates. The Paying Agent/Registrar Agreement submitted to this City Council, the form of which
is attached hereto as “Exhibit B,” is hereby approved. The Mayor is hereby authorized to amend,
complete or modify such agreement as necessary and is further authorized to execute such agreement and
the City Clerk is hereby authorized to attest such agreement.
Section 4.02.Qualifications.
Each Paying Agent/Registrar shall be a commercial bank, a trust company organized under the
laws of the State of Texas, or any other entity duly qualified and legally authorized to serve as and
perform the duties and services of paying agent and registrar for the Certificates.
Section 4.03.Maintaining Paying Agent/Registrar.
(a)At all times while any of the Certificates are outstanding, the City will
maintain a Paying Agent/Registrar that is qualified under Section 4.02 of this Ordinance. The
Mayor is hereby authorized and directed to execute an agreement with the Paying
Agent/Registrar specifying the duties and responsibilities of the City and the Paying
Agent/Registrar. The signature of the Mayor shall be attested by the City Clerk of the City.
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(b)If the Paying Agent/Registrar resigns or otherwise ceases to serve as
such, the City will promptly appoint a replacement, provided, that no such resignation shall be
effective until a successor Paying Agent/Registrar has been appointed and has accepted the duties
of Paying Agent/Registrar for the Certificates.
Section 4.04.Termination.
The City, upon not less than sixty (60) days’ notice, reserves the right to terminate the
appointment of any Paying Agent/Registrar by delivering to the entity whose appointment is to be
terminated written notice of such termination, provided, that no such termination shall be effective until a
successor Paying Agent/Registrar has been appointed and has accepted the duties of Paying
Agent/Registrar for the Certificates.
Section 4.05.Notice of Change to Owners.
Promptly upon each change in the entity serving as Paying Agent/Registrar, the City will cause
notice of the change to be sent to each Owner by United States mail, first class, postage prepaid, at the
address thereof in the Register, stating the effective date of the change and the name and mailing address
of the replacement Paying Agent/Registrar.
Section 4.06.Agreement to Perform Duties and Functions.
By accepting the appointment as Paying Agent/Registrar and executing the Paying
Agent/Registrar Agreement, the Paying Agent/Registrar is deemed to have agreed to the provisions of this
Ordinance and that it will perform the duties and functions of Paying Agent/Registrar prescribed thereby.
Section 4.07.Delivery of Records to Successor.
If a Paying Agent/Registrar is replaced, such Paying Agent/Registrar, promptly upon the
appointment of the successor, will deliver the Register (or a copy thereof) and all other pertinent books
and records relating to the Certificates to the successor Paying Agent/Registrar.
ARTICLE V.
FORM OF THE CERTIFICATES
Section 5.01.Form Generally.
(a)The Certificates, including the Registration Certificate of the
Comptroller of Public Accounts of the State of Texas, the Certificate of the Paying
Agent/Registrar, and the Assignment form to appear on each of the Certificates, (i) shall be
substantially in the form set forth in this Article, with such appropriate insertions, omissions,
substitutions, and other variations as are permitted or required by this Ordinance, and (ii) may
have such letters, numbers, or other marks of identification (including identifying numbers and
letters of the Committee on Uniform Securities Identification Procedures of the American
Bankers Association) and such legends and endorsements (including any reproduction of an
opinion of counsel) thereon as, consistently herewith, may be determined by the City or by the
officers executing such Certificates, as evidenced by their execution thereof.
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(b)Any portion of the text of any Certificates may be set forth on the reverse
side thereof, with an appropriate reference thereto on the face of the Certificates.
(c)The definitive Certificates, if any, shall be typewritten, photocopied,
printed, lithographed, or engraved, and may be produced by any combination of these methods or
produced in any other similar manner, all as determined by the officers executing such
Certificates, as evidenced by their execution thereof.
(d)The Initial Certificate submitted to the Attorney General of the State of
Texas may be typewritten and photocopied or otherwise reproduced.
(e)Form of the Certificates.
The form of the Certificates, including the form of the Registration Certificate of the Comptroller
of Public Accounts of the State of Texas, the form of Certificate of the Paying Agent/Registrar and the
form of Assignment appearing on the Certificates, shall be substantially as follows:
REGISTEREDREGISTERED
No. ____________$__________
United States of America
State of Texas
CITY OF BEAUMONT, TEXAS
CERTIFICATES OF OBLIGATION
SERIES 2025
INTEREST RATE:MATURITY DATE:CERTIFICATE DATE:CUSIP NUMBER:
_____%____September 1, 2025__________
The City of Beaumont, Texas (the "City"), in Jefferson County, State of Texas, for value
received, hereby promises to pay to
\[____________________________\]
or registered assigns, on the Maturity Date specified above, the sum of ____ MILLION DOLLARS
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unless this Certificate shall have been sooner called for redemption and the payment of the principal
hereof shall have been paid or provided for, and to pay interest on such principal amount from the later of
Closing Date or the most recent interest payment date to which interest has been paid or provided for until
payment of such principal amount has been paid or provided for, at the per annum rate of interest
specified above, computed on the basis of a 360-day year of twelve 30-day months, such interest to be
paid semiannually on March 1 and September 1 of each year, commencing March 1, 2025.
The principal of this Certificate shall be payable without exchange or collection charges in lawful
money of the United States of America upon presentation and surrender of this Certificate at the corporate
trust office in Houston, Texas (the "Designated Payment/Transfer Office"), of UMB Bank, N.A., as
Paying Agent/Registrar, or, with respect to a successor paying agent/registrar, at the Designated
Payment/Transfer Office of such successor. Interest on this Certificate is payable by check dated as of the
interest payment date, and will be mailed on or before such interest payment date, by United States mail,
first class, postage prepaid, by the Paying Agent/Registrar to the registered owner at the address shown on
the registration books kept by the Paying Agent/Registrar, or by such other customary banking
arrangements acceptable to the Paying Agent/Registrar and the person to whom interest is to be paid;
provided, however, that such person shall bear all risk and expense of such other customary banking
arrangements. For the purpose of the payment of interest on this Certificate, the registered owner shall be
the person in whose name this Certificate is registered at the close of business on the "Record Date,"
which shall be the last business day of the month preceding such interest payment date; provided,
however, that in the event of nonpayment of interest on a scheduled interest payment date, and for thirty
(30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been
received from the City. Notice of the Special Record Date and of the scheduled payment date of the past
due interest (the "Special Payment Date," which date shall be fifteen (15) days after the Special Record
Date) shall be sent at least five (5) Business Days (as hereinafter defined) prior to the Special Record Date
by United States mail, first class, postage prepaid, to the address of each registered owner of a Certificate
appearing on the books of the Paying Agent/Registrar at the close of business on the last Business Day
next preceding the date of mailing of such notice.
If the date for the payment of the principal of or interest on this Certificate is not a Business Day,
the date for such payment shall be the next succeeding day which is not a Saturday, Sunday or legal
holiday, or day on which banking institutions in the State of Texas or the city in which the Designated
Payment/Transfer Office of the Paying Agent/Registrar is located are generally authorized or obligated by
law or executive order to close (a "Business Day"), and payment on such date shall for all purposes be
deemed to have been made on the original date payment was due.
This Certificate is dated September 1, 2025, and is one of a series of fully registered Certificates
specified in the title hereof issued in the aggregate principal amount of $____, issued pursuant to a certain
ordinance of the City (the "Certificate Ordinance") and the pricing certificate executed pursuant to the
Certificate Ordinance (together with the Certificate Ordinance, the “Ordinance”) for the purpose of
providing funds for certain projects approved by the City and to pay the costs of issuing the Certificates.
The Certificates maturing on and after March 1, 2034, are subject to redemption at the option of
the City on March 1, 2033, or on any date thereafter at a price of par plus interest accrued to the date of
redemption. If less than all of the Certificates are to be redeemed pursuant to an optional redemption, the
City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the
Paying Agent/Registrar to call by lot the Certificates, or portions thereof, within such maturity or
maturities and in such principal amounts, for redemption.
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\[Certificates maturing on March 1, 20__ (the “Term Certificates”) are subject to mandatory
sinking fund redemption prior to their scheduled maturity, and will be redeemed by the City, in part at a
redemption price equal to the principal amount thereof, without premium, plus interest accrued to the
redemption date, on the dates and in the principal amounts shown in the following schedule:
$ Term Certificates Maturing March 1, 20__
Mandatory Redemption DatePrincipal Amount
___________$_______
___________ (maturity)$_______
The Paying Agent/Registrar will select by lot or by any other customary method that results in a
random selection the specific Term Certificates (or with respect to Term Certificates having a
denomination in excess of $5,000.00, each $5,000.00 portion thereof) to be redeemed by mandatory
redemption. The principal amount of Term Certificates required to be redeemed on any redemption date
pursuant to the foregoing mandatory sinking fund redemption provisions hereof shall be reduced, at the
option of the City, by the principal amount of any Term Certificates which, at least forty-five (45) days
prior to the mandatory sinking fund redemption date (i) shall have been acquired by the City at a price not
exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase
thereof, and delivered to the Paying Agent/Registrar for cancellation, or (ii) shall have been redeemed
pursuant to the optional redemption provisions hereof and not previously credited to a mandatory sinking
1
fund redemption.\]
Notice of such redemption or redemptions shall be given by United States mail, first class,
postage prepaid, not less than thirty (30) days before the date fixed for redemption, to the registered owner
of each of the Certificates to be redeemed in whole or in part. In the Ordinance, the City reserves the right
in the case of an optional redemption to give notice of its election or direction to redeem Certificates
conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is
conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount
necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be
authorized by law, no later than the redemption date or (ii) that the City retains the right to rescind such
notice at any time prior to the scheduled redemption date if the City delivers a certificate of the City to the
Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such
notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited
or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of
a conditional notice of redemption to the affected Owners. Any Certificates subject to conditional
redemption where redemption has been rescinded shall remain Outstanding, and the rescission of such
redemption shall not constitute an event of default. Further, in the case of a conditional redemption, the
failure of the City to make money and/or authorized securities available in part or in whole on or before
the redemption date shall not constitute an event of default.
Any notice so mailed shall be conclusively presumed to have been duly given, whether or not the
registered owner receives such notice. Notice having been so given and subject, in the case of an optional
redemption, to any rights or conditions reserved by the City in the notice, the Certificates called for
redemption shall become due and payable on the specified redemption date, and notwithstanding that any
Certificate or portion thereof has not been surrendered for payment, interest on such Certificate or portion
thereof shall cease to accrue.
1
Delete if Term Certificates are not issued.
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As provided in the Ordinance, and subject to certain limitations therein set forth, this Certificate
is transferable upon surrender of this Certificate for transfer at the Designated Payment/Transfer Office of
the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the
Paying Agent/Registrar; thereupon, one or more new fully registered Certificates of the same stated
maturity, of authorized denominations, bearing the same rate of interest, and for the same aggregate
principal amount will be issued to the designated transferee or transferees.
Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer, or exchange
any Certificate called for redemption, in whole or in part, within forty- five (45) calendar days prior to the
date fixed for redemption; provided, however, such limitation shall not be applicable to an exchange by
the owner of the uncalled principal balance of a Certificate.
The City, the Paying Agent/Registrar, and any other person may treat the person in whose name
this Certificate is registered as the owner hereof for the purpose of receiving payment as herein provided
(except interest shall be paid to the person in whose name this Certificate is registered on the Record Date
or Special Record Date, as applicable) and for all other purposes, whether or not this Certificate is
overdue, and neither the City nor the Paying Agent/Registrar shall be affected by notice to the contrary.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Certificate and the series
of which it is a part is duly authorized by law; that all acts, conditions, and things required to be done
precedent to and in the issuance of the Certificates have been properly done and performed and have
happened in regular and due time, form, and manner as required by law; and that ad valorem taxes upon
all taxable property in the City have been levied for and pledged to the payment of the debt service
requirements of the Certificates within the limit prescribed by law; that, in addition to said taxes, further
provisions have been made for the payment of the debt service requirements of the Certificates by
pledging to such purpose Net Revenues, as defined in the Ordinance, derived by the City from the
operation of its combined waterworks and sewer system in an amount limited to $10,000.00; that when so
collected, such taxes and Net Revenues shall be appropriated to such purposes; and that the total
indebtedness of the City, including the Certificates, does not exceed any constitutional or statutory
limitation.
IN WITNESS WHEREOF, the City has caused this Certificate to be executed by the manual or
facsimile signature of the Mayor of the City and countersigned by the manual or facsimile signature of the
City Clerk of the City, and the official seal of the City has been duly impressed or placed in facsimile on
this Certificate.
City ClerkMayor
City of Beaumont, TexasCity of Beaumont, Texas
\[SEAL\]
(f)Form of Comptroller's Registration Certificate. The following
Comptroller's Registration Certificate may be deleted from the definitive Certificates if such
certificate on the Initial Certificate is fully executed.
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OFFICE OF THE COMPTROLLER§
OF PUBLIC ACCOUNTS§REGISTER NO. _____________
OF THE STATE OF TEXAS§
I hereby certify that there is on file and of record in my office a certificate of the Attorney
General of the State of Texas to the effect that this Certificate has been examined by him as required by
law, that he finds that it has been issued in conformity with the Constitution and laws of the State of
Texas, and that it is a valid and binding obligation of the City of Beaumont, Texas, and that this
Certificate has this day been registered by me.
Witness my hand and seal of office at Austin, Texas, __________.
Comptroller of Public Accounts
of the State of Texas
\[SEAL\]
(g)Form of Certificate of Paying Agent/Registrar. The following Certificate
of Paying Agent/Registrar may be deleted from the Initial Certificate if the executed
Comptroller's Registration Certificate appears thereon.
CERTIFICATE OF PAYING AGENT/REGISTRAR
The records of the Paying Agent/Registrar show that the Initial Certificate of this series of
Certificates was approved by the Attorney General of the State of Texas and registered by the
Comptroller of Public Accounts of the State of Texas, and that this is one of the Certificates referred to in
the within-mentioned Ordinance.
UMB Bank, N.A., as Paying Agent/Registrar
By:
Authorized Signatory
Dated:
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(h)Form of Assignment.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (print or
typewrite name, address and Zip Code of transferee):
(Social Security or other identifying number: __________) the within Certificate and all rights hereunder
and hereby irrevocably constitutes and appoints _____________________ attorney to transfer the within
Certificate on the books kept for registration hereof, with full power of substitution in the premises.
Dated:
NOTICE: The signature on this Assignment must
correspond with the name of the registered owner as
it appears on the face of the within Certificate in
every particular and must be guaranteed in a manner
acceptable to the Paying Agent/Registrar.
Signature Guaranteed:
Authorized Signatory
(i)The Initial Certificate shall be in the form set forth in paragraphs (a), (b)
and (d) of this Section, except for the following alterations:
(i)immediately under the name of the Certificate, the headings "INTEREST
RATE" and "MATURITY DATE" shall both be completed with the words "As shown
below" and the words "CUSIP NUMBER" deleted; and
(ii)in the first paragraph of the Certificate, the words "on the Maturity Date
specified above," shall be deleted and the following will be inserted: "on March 1 in each
of the years, in the principal installments and bearing interest at the per annum rates in
accordance with the following schedule:
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PrincipalInterest
YearsInstallmentsRate
(Information to be inserted from the
schedule in Pricing Certificate)
Section 5.02.CUSIP Registration.
The City may secure identification numbers through the CUSIP Service Bureau Division of
Standard & Poor's Corporation, New York, New York, and may authorize the printing of such numbers
on the face of the Certificates. It is expressly provided, however, that the presence or absence of CUSIP
numbers on the Certificates shall be of no significance or effect as regards the legality thereof and neither
the City nor the attorneys approving said Certificates as to legality are to be held responsible for CUSIP
numbers incorrectly printed on the Certificates.
Section 5.03.Legal Opinion.
The approving legal opinion of Holland & Knight LLP, bond counsel, may be printed on the
reverse side of or attached to each Certificate over the certification of the City Clerk of the City, which
may be executed in facsimile.
ARTICLE VI.
SALE AND DELIVERY OF CERTIFICATES, DEPOSIT OF PROCEEDS; OFFICIAL
STATEMENT
Section 6.01.Sale of Certificates.
(a)The Certificates are hereby officially sold and awarded to and shall be
delivered to the Underwriters at the price and on the terms specified in the Purchase Agreement
and for the price set out in the Pricing Certificate. The form, terms and provisions of the Bond
Purchase Agreement are hereby approved and the City Manager is hereby authorized and directed
to execute and deliver such Purchase Agreement upon completion of the terms thereof in
accordance with the Pricing Certificate. It is hereby officially found, determined and declared
that the terms of this sale are the most advantageous reasonably obtainable. The Certificates shall
initially be registered in the name of the representative of the Underwriters, or its designee. The
Mayor and all other officers, agents and representatives of the City are hereby authorized to do
any and all things necessary or desirable to satisfy the conditions to and to provide for the
issuance and delivery of the Certificates.
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(b)All officers of the City are authorized to execute such documents,
certificates and receipts, and to make such elections with respect to the tax-exempt status of the
Certificates, as they may deem appropriate in order to consummate the delivery of the
Certificates.
(c)The obligation of the Underwriters to accept delivery of the Certificates
is subject to the Underwriters being furnished with the final, approving opinion of Bond Counsel
for the City, which opinion shall be dated and delivered on the Closing Date.
Section 6.02.Control and Delivery of Certificates.
(a)The Mayor of the City is hereby authorized to have control of the Initial
Certificate and all necessary records and proceedings pertaining thereto pending investigation,
examination, and approval of the Attorney General of the State of Texas, registration by the
Comptroller and registration with, and initial exchange or transfer by, the Paying Agent/Registrar.
(b)After registration by the Comptroller, delivery of the Certificates shall be
made to the Underwriters under and subject to the general supervision and direction of the Mayor,
against receipt by the City of all amounts due to the City under the terms of sale.
(c)All officers of the City are authorized to execute such documents,
certificates and receipts and to make such elections with respect to the tax-exempt status of the
Certificates, as they may deem necessary to consummate the delivery of the Certificates.
Section 6.03.Deposit of Proceeds.
Proceeds from the sale of the Certificates shall, promptly upon receipt by the City, be applied as
set out in the Officer’s Pricing Certificate.
Section 6.04.Official Statement.
The form and substance of the Preliminary Official Statement and any addenda, supplement or
amendment thereto, is hereby ratified and approved, and is confirmed as deemed final within the meaning
and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the Securities Exchange Act of 1934. The
City hereby authorizes the preparation of a final Official Statement to add the terms of the Underwriters’
bid and other relevant information. The use of such final Official Statement in the reoffering of the
Certificates by the Underwriters is hereby approved and authorized. The proper officials of the City are
authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein,
dated as of the date of payment for and delivery of the Certificates.
ARTICLE VII.
INVESTMENTS
Section 7.01.Investments.
(a)Money in the Interest and Sinking Fund created by this Ordinance and
any of the funds to be deposited pursuant to Section 6.03 hereof, at the option of the City, may be
invested in such securities or obligations as permitted under applicable law as in effect on the date
of the investment.
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(b)Any securities or obligations in which such money is so invested shall be
kept and held in trust for the benefit of the Owners and shall be sold and the proceeds of sale shall
be timely applied to the making of all payments required to be made from the fund from which the
investment was made.
Section 7.02.Investment Income.
(a)Interest and income derived from investment of the Interest and Sinking
Fund shall be credited to such fund.
(b)Interest and income derived from investment of the funds to be deposited
pursuant to Section 6.03 hereof shall be credited to the account where deposited until the
acquisition or construction of the Projects is completed and thereafter, to the extent such interest
and income are present, such interest and income shall be deposited to the Interest and Sinking
Fund.
ARTICLE VIII.
PARTICULAR REPRESENTATIONS AND COVENANTS
Section 8.01.Payment of the Certificates.
On or before each Interest Payment Date or any redemption date for the Certificates and while any
of the Certificates are outstanding and unpaid, there shall be made available to the Paying
Agent/Registrar, out of the Interest and Sinking Fund, money sufficient to pay such interest on and
principal of the Certificates as will accrue or mature on the applicable Interest Payment Date, maturity
date or date of prior redemption. Such transfer of funds shall be made in such a manner as will cause
immediately available funds to be deposited with the Paying Agent/Registrar not later than the close of
business on the Business Day next preceding the date of payment for the Certificates.
Section 8.02.Other Representations and Covenants.
(a)The City will faithfully perform, at all times, any and all covenants,
undertakings, stipulations, and provisions contained in this Ordinance and in each Certificate; the
City will promptly pay or cause to be paid the principal of and interest on each Certificate on the
dates and at the places and manner prescribed in such Certificate; and the City will, at the times and
in the manner prescribed by this Ordinance, deposit or cause to be deposited the amounts of
money specified by this Ordinance.
(b)The City is duly authorized under the laws of the State of Texas to issue
the Certificates; all action on its part for the creation and issuance of the Certificates has been
duly and effectively taken; and the Certificates in the hands of the Owners thereof are and will be
valid and enforceable obligations of the City in accordance with their terms.
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ARTICLE III.
PROVISIONS CONCERNING FEDERAL INCOME TAX EXCLUSION
Section 3.01.Provisions Concerning Federal Income Tax.
(a)General. The City intends that the interest on the Certificates be
excludable from gross income for federal income tax purposes pursuant to sections 103 and 141
through 150 of the Internal Revenue Code of 1986, as amended (the “Code”), and the applicable
Treasury Regulations (the “Regulations”). The City covenants and agrees not to take any action,
or omit to take any action within its control, that if taken or omitted, respectively, would (i) cause
the interest on the Certificates to be includable in gross income, as defined in section 61 of the
Code, for federal income tax purposes or (ii) result in the violation of or failure to satisfy any
provision of Section 103 and 141 through 150 of the Code and the applicable Regulations. In
particular, the City covenants and agrees to comply with each requirement of this Article;
provided, however, that the City will not be required to comply with any particular requirement
of this Article if the City has received an opinion of nationally recognized bond counsel
(“Counsel’s Opinion”) that (i) such noncompliance will not adversely affect the exclusion from
gross income for federal income tax purposes of interest on the Certificates or (ii) compliance
with some other requirement set forth in this Article will satisfy the applicable requirements of
the Code and the Regulations, in which case compliance with such other requirement specified in
such Counsel’s Opinion will constitute compliance with the corresponding requirement specified
in this article.
(b)No Private Use or Payment and No Private Loan Financing. The City
covenants and agrees that it will make such use of the proceeds of the Certificates, including
interest or other investment income derived from Certificates proceeds, regulate the use of
property financed, directly or indirectly, with such proceeds, and take such other and further
action as may be required so that the Certificates will not be “private activity bonds” within the
meaning of section 141 of the Code and the Regulations promulgated thereunder. Moreover, the
City will certify, through an authorized officer, employee or agent, based upon all facts and
estimates known or reasonably expected to be in existence on the date the Certificates are
delivered, that the proceeds of the Certificates will not be used in a manner that would cause the
Certificates to be “private activity bonds” within the meaning of section 141 of the Code and the
Regulations promulgated thereunder.
(c)No Federal Guarantee. The City covenants and agrees not to take any
action, or knowingly omit to take any action within its control, that if taken or omitted,
respectively, would cause the Certificates to be “federally guaranteed” within the meaning of
section 149(b) of the Code and the applicable Regulations thereunder, except as permitted by
section 149(b)(3) of the Code and such Regulations.
(d)No Hedge Bonds. The City covenants and agrees not to take any action,
or knowingly omit to take any action within its control, that if taken or omitted, respectively,
would cause the Certificates to be “hedge bonds” within the meaning of section 149(g) of the
Code and the applicable Regulations thereunder.
(e)No Arbitrage. The City covenants and agrees that it will make such use
of the proceeds of the Certificates, including interest or other investment income derived from
Certificate proceeds, regulate investments of proceeds of the Certificates, and take such other and
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further action as may be required so that the Certificates will not be “arbitrage bonds”
within the meaning of section 148(a) of the Code and the applicable Regulations
promulgated thereunder. Moreover, the City will certify, through an authorized officer,
employee or agent, based upon all facts and estimates known or reasonably expected to
be in existence on the date the Certificates are delivered, that the proceeds of the
Certificates will not be used in a manner that would cause the Certificates to be “arbitrage
bonds” within the meaning of section 148(a) of the Code and the applicable Regulations
promulgated thereunder.
(f)Arbitrage Rebate. If the City does not qualify for an exception to the
requirements of section 148(f) of the Code relating to the required rebate to the United States, the
City will take all necessary steps to comply with the requirement that certain amounts earned by
the City on the investment of the “gross proceeds” of the Certificates (within the meaning of
section 148(f)(6)(B) of the Code), be rebated to the federal government. Specifically, the City
will (i) maintain records regarding the investment of the gross proceeds of the Certificates as may
be required to calculate the amount earned on the investment of the gross proceeds of the
Certificates separately from records of amounts on deposit in the funds and accounts of the City
allocable to other bond issues of the City or moneys that do not represent gross proceeds of any
obligations of the City, (ii) determine at such times as are required by applicable Regulations, the
amount earned from the investment of the gross proceeds of the Certificates which is required to
be rebated to the federal government, and (iii) pay, not less often than every fifth anniversary date
of the delivery of the Certificates, or on such other dates as may be permitted under applicable
Regulations, all amounts required to be rebated to the federal government. Further, the City will
not indirectly pay any amount otherwise payable to the federal government pursuant to the
foregoing requirements to any person other than the federal government by entering into any
investment arrangement with respect to the gross proceeds of the Certificates that might result in
a reduction in the amount required to be paid to the federal government because such
arrangement results in a smaller profit or a larger loss than would have resulted if the arrangement
had been at arm’s length and had the yield on the issue not been relevant to either party.
(g)Information Reporting. The City covenants and agrees to file or cause to
be filed with the Secretary of the Treasury, not later than the 15th day of the second calendar
month after the close of the calendar quarter in which the Certificates are issued, an information
statement concerning the Certificates, all under and in accordance with section 149(e) of the Code
and the applicable Regulations promulgated thereunder.
(h)Record Retention. The City will retain all pertinent and material records
relating to the use and expenditure of the proceeds of the Certificates until three years after the
last Certificate is redeemed, or such shorter period as authorized by subsequent guidance issued
by the Department of Treasury, if applicable. All records will be kept in a manner that ensures
their complete access throughout the retention period. For this purpose, it is acceptable that such
records are kept either as hardcopy books and records or in an electronic storage and retrieval
system, provided that such electronic system includes reasonable controls and quality assurance
programs that assure the ability of the City to retrieve and reproduce such books and records in
the event of an examination of the Certificates by the Internal Revenue Service.
(i)Registration. The Certificates will be issued in registered form.
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(j)Deliberate Actions. The City will not take a deliberate action (as defined
in section 1.141-2(d)(3) of the Regulations) that causes the Certificates to fail to meet any
requirement of section 141 of the Code after the issue date of the Certificates unless an
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appropriate remedial action is permitted by section 1.141-12 of the Regulations and an
opinion of Bond Counsel is obtained that such remedial action cures any failure to meet
the requirements of section 141 of the Code.
(k)Continuing Obligation. Notwithstanding any other provision of this
Ordinance, the City obligations under the covenants and provisions of this Article X will survive
the defeasance and discharge of the Certificates for as long as such matters are relevant to the
exclusion from gross income of interest on the Certificates for federal income tax purposes.
ARTICLE X.
DEFAULT AND REMEDIES
Section 10.01.Events of Default.
Each of the following occurrences or events for the purpose of this Ordinance is hereby declared
to be an Event of Default:
(a)the failure to make payment of the principal of, redemption premium, if
any, or interest on any of the Certificates when the same becomes due and payable; or
(b)default in the performance or observance of any other covenant,
agreement, or obligation of the City, which default materially and adversely affects the rights of
the Owners, including but not limited to their prospect or ability to be repaid in accordance with
this Ordinance, and the continuation thereof for a period of sixty (60) days after notice of such
default is given by any Owner to the City.
Section 10.02.Remedies for Default.
(a)Upon the happening of any Event of Default, any Owner or an
authorized representative thereof, including but not limited to a trustee or trustees therefor, may
proceed against the City for the purpose of protecting and enforcing the rights of the Owners under
this Ordinance by mandamus or other suit, action or special proceeding in equity or at law in any
court of competent jurisdiction for any relief permitted by law, including the specific performance
of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be
unlawful or in violation of any right of the Owners hereunder or any combination of such
remedies.
(b)It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all Owners of Certificates then outstanding.
Section 10.03.Remedies Not Exclusive.
(a)No remedy herein conferred or reserved is intended to be exclusive of
any other available remedy, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or under the Certificates or now or hereafter
existing at law or in equity; provided, however, that notwithstanding any other provision of this
Ordinance, the right to accelerate the debt evidenced by the Certificates shall not be available as a
remedy under this Ordinance.
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(b)The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
ARTICLE XI.
DISCHARGE
Section 11.01.Discharge.
The Certificates may be defeased, refunded or discharged in any manner permitted by applicable
law.
ARTICLE XII.
CONTINUING DISCLOSURE UNDERTAKING
Section 12.01.Annual Reports. The City shall provide annually to the MSRB, within six (6)
months after the end of each Fiscal Year, financial information and operating data with respect to the City
of the general type included in the final Official Statement, being the information described in “Exhibit
C” hereto. Any financial statements so to be provided shall be (i) prepared in accordance with the
accounting principles described in “Exhibit C” hereto, and (ii) audited, if the City commissions an audit
of such statements and the audit is completed within the period during which they must be provided. If
the audit of such financial statements is not complete within such period, then the City shall provide
notice that audited financial statements are not available and shall provide unaudited financial statements
for the applicable Fiscal Year to the MSRB. Thereafter, when and if audited financial statements become
available, the City shall provide such audited financial statements as required to the MSRB.
(a)If the City changes its Fiscal Year, it will notify each the MSRB of the
change (and of the date of the new Fiscal Year end) prior to the next date by which the City
otherwise would be required to provide financial information and operating data pursuant to this
Section.
(b)The financial information and operating data to be provided pursuant to
this Section may be set forth in full in one or more documents or may be included by specific
reference to any document (including an official statement or other offering document) that
theretofore has been provided to the MSRB or filed with the SEC.
Section 12.02.Material Event Notices. (a) The City shall notify the MSRB, in a timely manner
(not in excess of ten business days after the occurrence of the event), of any of the following events with
respect to the Certificates, if such event is material within the meaning of the federal securities laws:
(i)principal and interest payment delinquencies;
(ii)nonpayment related defaults;
(iii)unscheduled draws on debt service reserves reflecting financial
difficulties;
(iv)unscheduled draws on credit enhancements reflecting financial
difficulties;
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(v)substitution of credit or liquidity providers, or their failure to perform;
(vi)adverse tax opinions or events affecting the tax exempt status of the
Certificates;
(vii)modifications to rights of Owners;
(viii)bond calls;
(ix)defeasance;
(x)release, substitution, or sale of property securing repayment of the
Certificates;
(xi)rating changes;
(xii)bankruptcy, insolvency, receivership, or similar event of the obligated
person;
Note to paragraph (xii): For the purposes of the event identified in paragraph (xii) of this
section, the event is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent, or similar officer for an obligated person in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or
federal law in which a court or governmental authority has assumed jurisdiction over
substantially all of the assets or business of the obligated person, or if such jurisdiction
has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority,
or the entry of an order confirming a plan of reorganization, arrangement or liquidation
by a court or governmental authority having supervision or jurisdiction over substantially
all of the assets or business of the obligated person.
(xiii)the consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the obligated person,
other than in the ordinary course of business, the entry into a definitive agreement to
undertake such an action, or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material; and
(xiv)the appointment of a successor or additional trustee or the change in the
name of the trustee, if material.
(xv)the incurrence of a financial obligation of the City, if material, or
an agreement to covenants, events of default, remedies, priority rights, or other similar
terms of a financial obligation of the City, any of which affect security holders, if
material; and
(xvi)a default, event of acceleration, termination event, modification of terms,
or other similar events under the terms of a financial obligation of the City, any of which
reflect financial difficulties.
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(b)The City shall notify the MSRB, in a timely manner, of any failure by the
City to provide financial information or operating data in accordance with Section 12.01 of this
Ordinance by the time required by such Section.
(c)The City reserves the right to file all information and notices required
under this Article through the facilities of DisclosureUSA or any other central post office
approved by the SEC for such purpose.
Section 12.03.Limitations, Disclaimers, and Amendments.
The City shall be obligated to observe and perform the covenants specified in this Article for so
long as, but only for so long as the City remains an "obligated person" with respect to the Certificates
within the meaning of the Rule, except that the City in any event will give notice of any redemption calls
and any defeasances that cause the City to be no longer an "obligated person."
The provisions of this Article are for the sole benefit of the Owners and beneficial owners of the
Certificates, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable
right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial
information, operating data, financial statements, and notices that it has expressly agreed to provide
pursuant to this Article and does not hereby undertake to provide any other information that may be
relevant or material to a complete presentation of the City's financial results, condition, or prospects or
hereby undertake to update any information provided in accordance with this Article or otherwise, except
as expressly provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Certificates at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR
BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR
TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE
CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN
CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO
AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE.
(a)No default by the City in observing or performing its obligations under
this Article shall constitute a breach of or default under the Ordinance for purposes of any other
provisions of this Ordinance.
(b)Nothing in this Article is intended or shall act to disclaim, waive, or
otherwise limit the duties of the City under federal and state securities laws.
(c)The provisions of this Article may be amended by the City from time to
time to adapt to changed circumstances that arise from a change in legal requirements, a change
in law, or a change in the identity, nature, status, or type of operations of the City, but only if (i)
the provisions of this Article, as so amended, would have permitted an underwriter to purchase or
sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking
into account any amendments or interpretations of the Rule to the date of such amendment, as
well as such changed circumstances, and (ii) either (A) the Owners of a majority in aggregate
principal amount (or any greater amount required by any other provisions of this Ordinance that
authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (B)
an entity or individual person that is unaffiliated with the City (such as nationally recognized bond
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counsel) determines that such amendment will not materially impair the interests of the
Owners and beneficial owners of the Certificates. The provisions of this Article may also
be amended from time to time or repealed by the City if the SEC amends or repeals the
applicable provisions of the Rule or a court of final jurisdiction determines that such
provisions are invalid, but only if and to the extent that reservation of the City's right to do
so would not prevent underwriters of the initial public offering of the Certificates from
lawfully purchasing or selling Certificates in such offering. If the City so amends the
provisions of this Article, it shall include with any amended financial information or
operating data next provided in accordance with Section 13.01 an explanation, in
narrative form, of the reasons for the amendment and of the impact of any change in the
type of financial information or operating data so provided.
ARTICLE IV.
ENGAGEMENT OF PROFESSIONALS
The City Council hereby confirms the prior engagement of (1) Holland & Knight LLP, as Bond
Counsel to the City and (2) RBC Capital Markets, LLC, as Financial Advisor to the City, in connection
with the issuance and sale of the Certificates and (3) the engagement of TRB Capital Markets (d/b/a
Estrada Hinojosa), to serve as the senior underwriter, and Samco Capital Markets, Inc. to serve as the co-
manager, in connection with the issuance and sale of the Certificates.
ARTICLE V.
MISCELLANEOUS
Section 5.01.Changes to Ordinance.
Bond Counsel is hereby authorized to make any changes to the terms of this Ordinance if
necessary or desirable to carry out the purposes hereof or in connection with the approval of the issuance
of the Certificates by the Attorney General of Texas.
Section 5.02.Partial Invalidity.
If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be
invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision
shall not affect any of the remaining provisions of this Ordinance.
Section 5.03.Repealer.
All ordinances or resolutions, or parts thereof, heretofore adopted by the City and inconsistent
with the provisions of this Ordinance are hereby repealed to the extent of such conflict.
Section 5.04.Individuals Not Liable.
No covenant, stipulation, obligation, or agreement herein contained shall be deemed to be a
covenant, stipulation, obligation, or agreement of any member of City Council or agent or employee of
City Council or of the City in his or her individual capacity and neither the members of City Council nor
any officer thereof, nor any agent or employee of City Council or of the City, shall be liable personally on
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the Certificates, or be subject to any personal liability or accountability by reason of the issuance thereof.
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Section 14.05.Related Matters.
To satisfy in a timely manner all of the City’s obligations under this Ordinance, the Mayor or
Mayor Pro Tem, the City Clerk, and all other appropriate officers and agents of the City are hereby
authorized and directed to do any and all things necessary and/or convenient in order to consummate the
delivery of the Certificates, pay the costs of issuance on the Certificates, and effectuate the terms and
purposes of this Ordinance.
Section 14.06.Force and Effect.
This Ordinance shall be in full force and effect from and after its final passage, and it is so
ordained.
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th
PASSED APPROVED and ADOPTED on first and final reading this 15 day of July 2025, with
________ members voting yes, ______ members voting no, and ______ members abstaining
________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Approved as to Form
___________________________
Sharea Reed, City Attorney
Signature Page to Ordinance
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EXHIBIT A
FORM OF
PRICING CERTIFICATE
CITY OF BEAUMONT, TEXAS
CERTIFICATES OF OBLIGATION, SERIES 2025
THIS PRICING CERTIFICATE is executed as of _________, 2025 by the
____________________, Beaumont Texas (the “City”) pursuant to the authorization contained in the
Ordinance of the City Council of the City adopted on July 15, 2025, (the “Ordinance”), authorizing the
issuance of the captioned series of certificates and delegating to the undersigned the authority to agree to
and stipulate certain terms and provisions thereof, all of which are set forth herein.
Capitalized terms used in this Pricing Certificate shall have the meanings assigned to them in the
Ordinance.
1.Principal Amount, Numbers, Interest Rates and Maturities. The Certificates shall be
issued in the total authorized principal amount of $___________. The Certificates shall bear interest from
September __, 2025 (the “Closing Date”) and mature on March 1 in each of the years, in the principal
installments and shall bear interest at the per annum rates set out in the following schedule:
PrincipalInterestPrincipalInterest
YearAmountRateYearAmountRate
____$_____ _____%____$_____ _____%
____ ______________ __________
____ ______________ __________
____ ______________ __________
____ ______________ __________
____ ______________ __________
____ ______________ __________
____ ______________ __________
____ ______________ __________
2.Purchase Price. The sale of the Certificates is authorized pursuant to the form of
Purchase Agreement approved in the Ordinance at the following price:
PRINCIPAL AMOUNT$
Plus Original Issue Premium
Less Original Issue Discount
Less Underwriter’s Discount
PURCHASE PRICE$
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3.The undersigned hereby finds, determines, and declares, that in accordance with the
requirements of the Ordinance, this Pricing Certificate complies with and satisfies the terms and
provisions of Sections 3.01 and 3.02 of the Ordinance in accordance with the delegation contained
therein.
4.Deposit of Proceeds.
a.All amounts received on the Closing Date as accrued interest on the
Certificates from the Certificate Date to the Closing Date, shall be deposited to the Interest and
Sinking Fund.
b.$________ shall be deposited in the funds for the purposes as described
in Section 3.01 of the Ordinance.
c.The remaining balance shall be used to pay the costs of issuing the
Certificates; provided that any amount representing a rounding or contingency amount shall be
applied solely to pay the costs of issuance of the Certificates. Amounts remaining after payment
of costs of issuance shall be deposited to the Interest and Sinking Fund and applied to the
payment of debt service on the Certificates.
5.The undersigned hereby finds, determines, and declares that the terms of sale of the
Certificates are in the City’s best interests and are the most advantageous and reasonable attainable by the
City.
<EXECUTION PAGE FOLLOWS>
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EXECUTED as of this __________________________, 2025.
______________________________________
\[Title\]
#524273699_v1
EXHIBIT B
FORM OF
PAYING AGENT/REGISTRAR AGREEMENT
\[Attached\]
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PAYING AGENT/REGISTRAR AGREEMENT
between
CITY OF BEAUMONT, TEXAS
and
UMB BANK, N.A.
Pertaining to
City of Beaumont, Texas
Certificates Of Obligation, Series 2025
Dated as of August ___ 2025
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TABLE OF CONTENTS
Page
Recital..............................................................................................................................................1
EXECUTION ................................................................................................................................12
Annex A - Schedule of Fees for Service as Paying Agent/Registrar
i
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PAYING AGENT/REGISTRAR AGREEMENT
THIS PAYING AGENT/REGISTRAR AGREEMENT (or this “Agreement”), dated as of
April 3, 2025, is by and between CITY OF BEAUMONT, TEXAS (the “Issuer”) and UMB
BANK, N.A. (the “Bank”), a national banking association duly organized and existing under the
laws of the United States of America.
WHEREAS, the Issuer has duly authorized and provided for the issuance of its City of
Beaumont, Texas Certificates of Obligation, Series 2025 (the “Certificates”), to be issued as
registered securities without coupons; and
WHEREAS, all things necessary to make the Certificates the valid obligations of the
Issuer, in accordance with their terms, will be taken upon the issuance and delivery thereof;
WHEREAS, the Issuer desires that the Bank act as the Paying Agent of the Issuer in
paying the principal, redemption premium, if any, and interest on the Certificates, in accordance
with the terms thereof, and that the Bank act as Registrar for the Certificates; and
WHEREAS, the Issuer has duly authorized the execution and delivery of this Agreement,
and all things necessary to make this Agreement the valid agreement of the Issuer, in accordance
with its terms, have been done;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE I
APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR
Section 1.1.Appointment.
(a)The Issuer hereby appoints the Bank to act as Paying Agent with respect to the
Certificates in paying to the Owners of the Certificates the principal, redemption premium, if
any, and interest on all or any of the Certificates.
(b)The Issuer hereby appoints the Bank as Registrar with respect to the Certificates.
(c)The Bank hereby accepts its appointment, and agrees to act as the Paying Agent
and Registrar.
Section 1.2.Compensation.
(a)As compensation for the Bank’s services as Paying Agent/Registrar, the Issuer
hereby agrees to pay the Bank the fees and amounts set forth in Annex A.
(b)In addition, the Issuer agrees to reimburse the Bank upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Bank in accordance
with any of the provisions hereof, including the reasonable compensation and the expenses and
disbursements of its agents and counsel.
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ARTICLE II
DEFINITIONS
Section 2.1.Definitions.
The terms “Agreement,” “Bank,” “Certificates,” and “Issuer” have the meanings assigned
them in the recitals hereto. Capitalized terms used herein and not defined herein shall have the
meanings assigned in the Certificate Ordinance (as hereinafter defined). For all purposes of this
Agreement, except as otherwise expressly provided or unless the context otherwise requires, the
following terms have the following meanings when used in this Agreement:
“Bank Office” means the Bank’s office in Dallas, Texas. The Bank will notify the Issuer
in writing of any change in the location of the Bank Office.
“Certificate Ordinance” means the ordinance of the City Council of the Issuer authorizing
the issuance and delivery of the Certificates and the pricing certificate executed pursuant thereto.
“Financial Advisor” means RBC Capital Markets, Inc., and its successor in that capacity.
“Issuer Request” and “Issuer Order” means a written request or order signed in the name
of the Mayor of the Issuer, or any other authorized representative of the Issuer and delivered to
the Bank.
“Owner” means the Person in whose name a Certificate is registered in the Register.
“Paying Agent” means the Bank when it is performing the functions associated with the
terms in this Agreement.
“Person” means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, unincorporated organization, or government or any agency or political
subdivision of a government.
“Predecessor Certificates” of any particular Certificate means every previous Certificate
evidencing all or a portion of the same obligation as that evidenced by such particular Certificate
(and, for the purposes of this definition, any Certificate registered and delivered under
Section 4.06 in lieu of a mutilated, lost, destroyed or stolen Certificate shall be deemed to
evidence the same obligation as the mutilated, lost, destroyed or stolen Certificate).
“Record Date” has the meaning assigned in the Certificate Ordinance.
“Register” means a register in which the Registrar shall provide for the registration and
transfer of Certificates.
“Responsible Officer” means, when used with respect to the Bank, the officer or officers
of the Bank within the corporate trust department having direct responsibility for the
administration of this Agreement.
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“Stated Maturity” means the date or dates specified in the Certificate Ordinance as the
fixed date on which the principal of the Certificates is due and payable or the date fixed in
accordance with the terms of the Certificate Ordinance for redemption of the Certificates, or any
portion thereof, prior to the fixed maturity date.
ARTICLE III
PAYING AGENT
Section 3.1.Duties of Paying Agent.
(a)The Bank, as Paying Agent and on behalf of the Issuer, shall pay to the Owner, at
the Stated Maturity and upon the surrender of the Certificate or Certificates so maturing at the
Bank Office, the principal amount of the Certificate or Certificates then maturing, and
redemption premium, if any, provided that the Bank shall have been provided by or on behalf of
the Issuer adequate funds to make such payment.
(b)The Bank, as Paying Agent and on behalf of the Issuer, shall pay interest when
due on the Certificates to each Owner of the Certificates (or their Predecessor Certificates) as
shown in the Register at the close of business on the Record Date, provided that the Bank shall
have been provided by or on behalf of the Issuer adequate funds to make such payments. The
Paying Agent/Registrar shall make such payments in accordance with the Certificate Ordinance
by computing the amount of interest to be paid each Owner, preparing the checks, and mailing
the checks (or other payment method allowed under the terms of the Certificate Ordinance) on
each Interest Payment Date addressed to each Owner’s address as it appears in the Register at the
close of business on the Record Date.
Section 3.2.Payment Dates.
The Issuer hereby instructs the Bank to pay the principal of, redemption premium, if any,
and interest on the Certificates at the dates specified in the Certificate Ordinance.
ARTICLE IV
REGISTRAR
Section 4.1.Transfer and Exchange.
(a)The Bank is hereby appointed “Registrar” for the purpose of registering and
transferring the Certificates as herein provided. The Bank agrees to maintain the Register while
it is Registrar. The Bank shall keep the Register at the Bank Office, and subject to such
reasonable written regulations as the Issuer may prescribe, which regulations shall be furnished
to the Bank herewith or subsequent hereto by Issuer Order, the Bank shall provide for the
registration and transfer of the Certificates.
(b)The Certificates shall be subject to transfer and exchange as set forth in the
Certificate Ordinance.
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Section 4.2.The Certificates.
The Issuer shall provide an adequate inventory of unregistered Certificates to facilitate
transfers. The Bank covenants that it will maintain the unregistered Certificates in safekeeping
and will use reasonable care in maintaining such unregistered Certificates in safekeeping, which
shall be not less than the care it maintains for debt securities of other governments or
corporations for which it serves as registrar, or which it maintains for its own securities.
Section 4.3.Form of Register.
(a)The Bank as Registrar will maintain the records of the Register in accordance
with the Bank’s general practices and procedures in effect from time to time. The Bank shall not
be obligated to maintain such Register in any form other than a form which the Bank has
currently available and currently utilizes at the time.
(b)The Register may be maintained in written form or in any other form capable of
being converted into written form within a reasonable time.
Section 4.4.List of Owners.
(a)The Bank will provide the Issuer at any time requested by the Issuer, upon
payment of the cost, if any, of reproduction, a copy of the information contained in the Register.
The Issuer may also inspect the information in the Register at any time the Bank is customarily
open for business, provided that reasonable time is allowed the Bank to provide an up-to-date
listing or to convert the information into written form.
(b)The Bank will not release or disclose the content of the Register to any person
other than to, or at the written request of, an authorized officer or employee of the Issuer, except
upon receipt of a subpoena or court order or as otherwise required by law. Upon receipt of a
subpoena or court order the Bank will notify the Issuer so that the Issuer may contest the
subpoena or court order.
Section 4.5.Cancellation of Certificates.
All Certificates surrendered to the Bank for payment, redemption, transfer, exchange, or
replacement, shall be promptly cancelled by it upon the making of proper records regarding such
payment, transfer, exchange or replacement. The Issuer may at any time deliver to the Bank for
cancellation any Certificates previously certified or registered and delivered which the Issuer
may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly
cancelled by the Bank. All cancelled Certificates held by the Bank shall be disposed of pursuant
to the Securities Exchange Act of 1934.
Section 4.6.Mutilated, Destroyed, Lost, or Stolen Certificates.
(a)Subject to the provisions and conditions of this Section 4.6, Sections 3.09, 3.10
and 3.11 of the Certificate Ordinance, the Issuer hereby instructs the Bank to deliver fully
registered Certificates in exchange for or in lieu of mutilated, destroyed, lost, or stolen
Certificates as long as the same does not result in an over issuance.
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(b)The Issuer hereby accepts the Bank’s current blanket bond for lost, stolen, or
destroyed Certificates and any future substitute blanket bond for lost, stolen, or destroyed
Certificates that the Bank may arrange, and agrees that the coverage under any such blanket bond
is acceptable to it and meets the Issuer’s requirements as to security or indemnity. The Bank
need not notify the Issuer of any changes in the security or other company giving such bond or
the terms of any such bond, provided that the amount of such bond is not reduced below the
amount of the bond on the date of execution of this Agreement. The blanket bond then utilized
by the Bank for lost, stolen, or destroyed Certificates by the Bank is available for inspection by
the Issuer on request.
Section 4.7.Transaction Information to Issuer.
The Bank will, within a reasonable time after receipt of written request from the Issuer,
furnish the Issuer information as to the Certificates it has paid pursuant to Section 3.1;
Certificates it has delivered upon the transfer or exchange of any Certificates pursuant to
Section 4.1; and Certificates it has delivered in exchange for or in lieu of mutilated, destroyed,
lost, or stolen Certificates pursuant to Section 4.6 of this Agreement.
ARTICLE V
THE BANK
Section 5.1.Duties of Bank.
The Bank undertakes to perform the duties set forth herein and in accordance with the
Certificate Ordinance and agrees to use reasonable care in the performance thereof. The Bank
hereby agrees to use the funds deposited with it for payment of the principal of, redemption
premium, if any, and interest on the Certificates to pay the Certificates as the same shall become
due and further agrees to establish and maintain all accounts and funds as may be required for
the Bank to function as Paying Agent.
Section 5.2.Reliance on Documents, Etc.
(a)The Bank may conclusively rely, as to the truth of the statements and correctness
of the opinions expressed therein, on certificates or opinions furnished to the Bank.
(b)The Bank shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the
pertinent facts.
(c)No provisions of this Agreement shall require the Bank to expend or risk its own
funds or otherwise incur any financial liability for performance of any of its duties hereunder, or
in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is
not assured to it.
(d)The Bank may rely and shall be protected in acting or refraining from acting upon
any ordinance, resolution, certificate, statement, instrument, opinion, report, notice, request,
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direction, consent, order, certificate, note, security, or other paper or document believed by it to
be genuine and to have been signed or presented by the proper party or parties. Without limiting
the generality of the foregoing statement, the Bank need not examine the ownership of any
Certificates but is protected in acting upon receipt of Certificates containing an endorsement or
instruction of transfer or power of transfer which appears on its face to be signed by the Owner
or an attorney-in-fact of the Owner. The Bank shall not be bound to make any investigation into
the facts or matters stated in an ordinance, resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, certificate, note, security, or other paper or
document supplied by Issuer.
(e)The Bank is also authorized to transfer funds relating to the closing and initial
delivery of the Certificates in the manner disclosed in the closing memorandum as prepared by
the Issuer’s Financial Advisor or other agents. The Bank may act on a facsimile or e-mail
transmission of the closing memorandum acknowledged by the Financial Advisor or the Issuer
as the final closing memorandum. The Bank shall not be liable for any losses, costs or expenses
arising directly or indirectly from the Bank’s reliance upon and compliance with such
instructions.
(f)The Bank may consult with counsel, and the written advice of such counsel or any
opinion of counsel shall be full and complete authorization and protection with respect to any
action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon.
(g)The Bank may exercise any of the powers hereunder and perform any duties
hereunder either directly or by or through agents or attorneys of the Bank.
Section 5.3.Recitals of Issuer.
(a)The recitals contained herein and in the Certificate Ordinance shall be taken as the
statements of the Issuer, and the Bank assumes no responsibility for their correctness.
(b)The Bank shall in no event be liable to the Issuer, any Owner or Owners, or any
other Person for any amount due on any Certificate except as otherwise expressly provided
herein with respect to the liability of the Bank for its duties under this Agreement.
Section 5.4.May Hold Certificates.
The Bank, in its individual or any other capacity, may become the Owner or pledgee of
Certificates and may otherwise deal with the Issuer with the same rights it would have if it were
not the Paying Agent/Registrar, or any other agent.
Section 5.5.Money Held by Bank.
(a)Money held by the Bank hereunder need not be segregated from any other funds
provided appropriate accounts are maintained.
(b)The Bank shall be under no liability for interest on any money received by it
hereunder.
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(c)Subject to the provisions of Title 6, Texas Property Code, any money deposited
with the Bank for the payment of the principal, redemption premium, if any, or interest on any
Certificate and remaining unclaimed for three years after final maturity of the Certificate has
become due and payable will be paid by the Bank to the Issuer, and the Owner of such
Certificate shall thereafter look only to the Issuer for payment thereof, and all liability of the
Bank with respect to such monies shall thereupon cease.
(d)The Bank will comply with the reporting requirements of Chapter 74 of the Texas
Property Code.
(e)The Bank shall deposit any moneys received from the Issuer into a trust account
to be held in a paying agent capacity for the payment of the Certificates, with such moneys in the
account that exceed the deposit insurance, available to the Issuer, provided by the Federal
Deposit Insurance Corporation to be fully collateralized with securities or obligations that are
eligible under the laws of the State of Texas and to the extent practicable under the laws of the
United States of America to secure and be pledged as collateral for trust accounts until the
principal and interest on the Certificates have been presented for payment and paid to the owner
thereof. Payments made from such trust account shall be made by check drawn on such trust
account unless the owner of such Certificates shall, at its own expense and risk, request such
other medium of payment.
Section 5.6.Indemnification.
To the extent permitted by law, the Issuer agrees to indemnify the Bank and its officers,
directors, employees, and agents and save and them harmless from and against, any and all
actions or suits, whether groundless or otherwise, and from any and against any and all loss,
liability, or expense incurred without negligence, bad faith or willful misconduct on their part
arising out of or in connection with its acceptance or administration of the Bank’s duties
hereunder, and under Article IV of the Certificate Ordinance, including the cost and expense
(including the reasonable counsel fees and expenses outside counsel engaged by the Bank; the
Issuer shall not be responsible for the salary, expenses or any costs associated with counsel
employed by the Bank or any affiliate, subsidiary or parent of the Bank) of defending itself
against any claim or liability in connection with the exercise or performance of any of its powers
or duties under this Agreement.
Section 5.7.Interpleader.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim,
demands or controversy over its persons as well as funds on deposit in a court of competent
jurisdiction within the State of Texas; waive personal service of any process; and agree that
service of process by certified or registered mail, return receipt requested, to the address set forth
in this Agreement shall constitute adequate service. The Issuer and the Bank further agree that
the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction within
the State of Texas to determine the rights of any person claiming any interest herein.
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ARTICLE V
MISCELLANEOUS PROVISIONS
Section 5.1.Amendment.
This Agreement may be amended only by an agreement in writing signed by both of the
parties hereof.
Section 5.2.Assignment.
This Agreement may not be assigned by either party without the prior written consent of
the other.
Section 5.3.Notices.
Any request, demand, authorization, direction, notice, consent, waiver, or other document
provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or
delivered to the Issuer or the Bank, respectively, at the addresses shown below:
(a)if to the City of Beaumont, Texas
Issuer:801 Main St.
Beaumont, Texas 77701
Attention:Mayor
(b)if to the UMB Bank, N.A.
Bank:555 San Felipe Street, Suite 870
Houston, Texas 77056
Attention: Corporate Trust Department
Section 5.4.Bank to Give Notice of Change.
The Bank hereby agrees that it will give notice to the Issuer, the Owners and the
Municipal Securities Rulemaking Board of (a) any change in the name of the Bank after the date
hereof, (b) any change in the location of the Bank Office or a change in the mailing address of
the Bank, and (c) any merger or other change in the corporate structure affecting the name,
location and address of the Bank, in each case within ten (10) business days of the effective date
of such change.
Section 5.5.Anti-Boycott Verification.
The Bank represents that, solely for purposes of compliance with Chapter 2270 of the
Texas Government Code, neither the Bank nor any wholly owned subsidiary, majority-owned
subsidiary, parent company or affiliate of the Bank (i) boycotts Israel or (ii) will boycott Israel
through the term of this Agreement. The terms “boycotts Israel” and “boycott Israel” as used in
this paragraph have the meanings assigned to the term “boycott Israel” in Section 808.001 of the
Texas Government Code, as amended.
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Section 6.6.Iran, Sudan and Foreign Terrorist Organizations.
The Bank represents that, as of the date of this Agreement, solely for purposes of
compliance with Chapter 2252 of the Texas Government Code, neither the Bank nor any wholly
owned subsidiary, majority-owned subsidiary, parent company or affiliate of the Bank is an
entity listed by the Texas Comptroller of Public Accounts under Sections 2252.153 or 2270.0201
of the Texas Government Code.
Section 6.7.Anti-Boycott of Energy Companies.
The value of the Agreement is less than $100,000. Because the value of this Agreement is
less than $100,000, it is not subject to a written verification as required under Section 2276.002
(as added by Senate Bill 13 in the 87th Texas Legislature, Regular Session), Texas Government
Code.
Section 6.8.Anti-Boycott Firearm Industry.
The value of the Agreement is less than $100,000. Because the value of this Agreement is
less than $100,000, it is not subject to a written verification as required under Section 2274.002
(as added by Senate Bill 19 in the 87th Texas Legislature, Regular Session), Texas Government
Code, as amended.
Section 6.9.Statute of Limitations.
The Bank agrees the liability for breach of any such verifications in Sections 6.7 & 6.08
during the term of the contract shall survive until barred by the statute of limitations, and shall not be
liquidated or otherwise limited by any provision of the contract, notwithstanding anything in this
Agreement to the contrary.
Section 6.10.Effect of Headings.
The Article and Section headings herein are for convenience only and shall not affect the
construction hereof.
Section 6.11.Successors and Assigns.
All covenants and agreements herein by the Issuer shall bind its successors and assigns,
whether so expressed or not.
Section 6.12.Separability.
If any provision herein shall be invalid, illegal, or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.
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Section 6.13.Benefits of Agreement.
Nothing herein, express or implied, shall give to any Person, other than the parties hereto
and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim
hereunder.
Section 6.14.Entire Agreement.
This Agreement and the Certificate Ordinance constitute the entire agreement between
the parties hereto relative to the Bank acting as Paying Agent/Registrar, and if any conflict exists
between this Agreement and the Certificate Ordinance, the Certificate Ordinance shall govern.
Section 6.15.Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of which shall constitute one and the same Agreement.
Section 6.16.Termination.
(a)This Agreement will terminate on the date of final payment by the Bank issuing
its checks for the final payment of principal, redemption premium, if any, and interest of the
Certificates.
(b)This Agreement may be earlier terminated upon 60 days written notice by either
party; provided, that, no termination shall be effective until a successor has been appointed by
the Issuer and has accepted the duties imposed by this Agreement. A resigning Paying
Agent/Registrar may petition any court of competent jurisdiction for the appointment of a
successor Paying Agent/Registrar if an instrument of acceptance by a successor Paying
Agent/Registrar has not been delivered to the resigning Paying Agent/Registrar within 60 days
after the giving of notice of resignation.
(c)The provisions of Section 1.02 and of Article V shall survive and remain in full
force and effect following the termination of this Agreement.
Section 6.17.Merger, Conversion, Consolidation or Succession.
Any corporation into which the Bank may be merged or converted or with which it may
be consolidated, or any corporation resulting from any merger, conversion, or consolidation to
which the Bank shall be a party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Bank shall be the successor of the Bank hereunder without the
execution or filing of any paper or any further act on the part of either of the parties hereto;
provided, however, that the resulting entity must qualify to serve as the Paying Agent/Registrar
under the terms of the Ordinance and Texas law. In case any Certificate shall have been
registered, but not delivered, by the Bank then in office, any successor by merger, conversion, or
consolidation to such authenticating Bank may adopt such registration and deliver the Certificate
so registered with the same effect as if such successor Bank had itself registered such Certificate.
The Bank shall notify the Issuer of any changes described in this paragraph in accordance with
Section 6.4.
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Section 6.18.Governing Law.
This Agreement shall be construed in accordance with and governed by the laws of the
State of Texas.
Section 6.19.Electronic Means.
The Bank shall have the right to accept and act upon instructions, including funds transfer
instructions (“Instructions”) given pursuant to this Agreement and delivered using Electronic
Means (“Electronic Means” shall mean the following communications methods: e-mail,
facsimile transmission, secure electronic transmission containing applicable authorization codes,
passwords and/or authentication keys issued by the Bank, or another method or system specified
by the Bank as available for use in connection with its services hereunder.); provided, however,
that the Issuer shall provide to the Bank an incumbency certificate listing officers with the Issuer
to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such
Authorized Officers, which incumbency certificate shall be amended by the Issuer, whenever a
person is to be added or deleted from the listing. If the Issuer elects to give the Bank Instructions
using Electronic Means and the Bank in its discretion elects to act upon such Instructions, the
Bank’s understanding of such Instructions shall be deemed controlling. The Issuer understands
and agrees that the Bank cannot determine the identity of the actual sender of such Instructions
and that the Bank shall conclusively presume that directions that purport to have been sent by an
Authorized Officer listed on the incumbency certificate provided to the Bank have been sent by
such Authorized Officer. The Issuer shall be responsible for ensuring that only Authorized
Officers transmit such Instructions to the Bank and that the Issuer, and all Authorized Officers
are solely responsible to safeguard the use and confidentiality of applicable user and
authorization codes, passwords and/or authentication keys upon receipt by the Issuer. The Bank
shall not be liable for any losses, costs or expenses arising directly or indirectly from the Bank’s
reliance upon and compliance with such Instructions notwithstanding such directions conflict or
are inconsistent with a subsequent written instruction. To the extent allowed by law, the Issuer
agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to
the Bank, including without limitation the risk of the Bank acting on unauthorized Instructions,
and the risk of interception and misuse by third parties; (ii) that it is fully informed of the
protections and risks associated with the various methods of transmitting Instructions to the Bank
and that there may be more secure methods of transmitting Instructions than the method(s)
selected by the Issuer; (iii) that the security procedures (if any) to be followed in connection with
its transmission of Instructions provide to it a commercially reasonable degree of protection in
light of its particular needs and circumstances; and (iv) to notify the Bank immediately upon
learning of any compromise or unauthorized use of the security procedures.
Section 6.20.Resignation or Removal of the Bank.
Any time, other than on a day during the forty-five (45) day period preceding any
payment date for the Issuer’s Certificates, the Bank may resign by giving at least forty-five (45)
days’ prior written notice to the Issuer; and the Bank’s agency shall be terminated and its duties
shall cease upon expiration of such forty-five (45) days or such lesser period of time as shall be
mutually agreeable to the Bank and the Issuer; provided, however, that no such termination shall
be effective until a successor paying agent/registrar has assumed the duties of paying
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agent/registrar for the Certificates. The Issuer agrees that it will use commercially responsible
efforts to engage a replacement paying agent/registrar following the receipt of such notice. At
any time, following at least forty-five (45) days’ prior written notice (or such lesser period of
time as shall be mutually agreeable to the Bank and the Issuer) from the Issuer, the Bank may be
removed from its agency. Such removal shall become effective upon the expiration of the forty-
five (45) day or agreed upon lesser time period, and upon payment to the Bank of all amounts
payable to it in connection with its agency, provided, however, that no such termination shall be
effective unless a successor paying agent/registrar has assumed the duties of paying
agent/registrar with respect to the Certificates. In such event, the Bank shall deliver to the Issuer,
or to the Issuer’s designated representative, all Certificates and cash belonging to the Issuer and
shall furnish to the Issuer, or to the Issuer’s designated representative, the register and all other
pertinent books and records relating to the Certificates, including reasonably detailed information
regarding the status of the Issuer’s outstanding Certificates and copies of other pertinent records
then in the Bank’s possession, reasonably requested by the Issuer.
\[Signature Pages to Follow\]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first written above.
CITY OF BEAUMONT, TEXAS
By:
Mayor
ATTEST:
By:
City Clerk
Signature Page to Paying Agent/Registrar Agreement
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UMB BANK, N.A.,
as Paying Agent/Registrar
By:
Title:
Signature Page to Paying Agent/Registrar Agreement
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ANNEX A
SCHEDULE OF FEES FOR SERVICE AS PAYING AGENT/REGISTRAR
\[Attached\]
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EXHIBIT C
DESCRIPTION OF ANNUAL DISCLOSURE OF FINANCIAL INFORMATION
The following information is referred to in Article XII of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided annually in
accordance with such Article are as specified (and included in the Appendix or other headings of the
Official Statement referred to) below:
1.The portions of the financial statements of the City appended to the Official Statement as
Appendix B, but for the most recently concluded Fiscal Year.
2.The quantitative financial information and operating data with respect to the City of the
general type included in the main text of the Official Statement but more specifically included
in the tables under the headings “INVESTMENT AUTHORITY AND INVESTMENT
OBJECTIVES OF THE CITY” “CITY TAX DEBT except under the heading “-Estimated
Overlapping Debt”),” “TAX DATA,” “SELECTED FINANCIAL DATA,” and
“APPENDIX B”
Accounting Principles
The accounting principles referred to in such Article are the accounting principles described in
the notes to the financial statements referred to in Paragraph 1 above, as such principles may be changed
from time to time to comply with State law.
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TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Duncan Brown, Assistant Chief Financial Officer
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider an ordinance authorizing the issuance and sale of
City of Beaumont, Texas, Waterworks and Sewer System Revenue
Refunding Bonds, Series 2025, in an estimated amount not to exceed
$19.455 Million and containing other matters related thereto.
BACKGROUND
The City is currently moving forward with refinancing Waterworks and Sewer System Revenue
Bonds, Series 2015A. This issuance is not providing new project proceeds. The bonds are being
issued for the purpose of refinancing the existing bonds in order to achieve debt service savings.
The Series 2025 Waterworks and Sewer System bonds will maintain the same final maturity as
the bonds being refunded. The Ordinance will require a present value savings on the refunding of
at least 3% of the principal amount refunded.
The ordinance authorizes City staff to execute the final pricing documents once the bonds are
sold and conditions are met. The Ordinance provides the City with flexibility when entering the
bonds market.
Delivery and receipt of the proceeds by the City are expected before the end of August 2025.
FUNDING SOURCE
Principal and interest is paid from the Water Utilities Fund which is supported by revenues of the
waterworks and sewer system.
RECOMMENDATION
Approval of resolution.
ATTACHMENTS
Waterworks and Sewer System Revenue Refunding Bonds Ordinance
CERTIFICATE FOR ORDINANCE
THE STATE OF TEXAS§
COUNTY OF JEFFERSON §
I, the undersigned City Clerk of the City of Beaumont, Texas (the “City”), hereby certify as
follows:
1.The City Council of the City convened in regular meeting on July 15, 2025, at the place
stated in the notice of such meeting given as stated below, and the roll was called of the duly constituted
official and members of said City Council, to wit:
Roy WestMayor
Albert TurnerMayor Pro Tem
Mike WilliamsCouncilmember
Cory CrenshawCouncilmember
Joeseph HilliardCouncilmember
LaDonna SherwoodCouncilmember
Charles DurioCouncilmember
And all of said persons were present, thus constituting a quorum. Whereupon, among other
business, the following was transacted at said meeting: a written
ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF
BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM
REVENUE REFUNDING BONDS, SERIES 2025 IN THE AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $19,455,000; IN ONE OR
MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED;
AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND
THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS,
INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN
OTHER MATTERS RELATING THERETO; PROVIDING FOR THE
PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING
SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND
DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL
STATEMENTS AND AUTHORIZING THE PREPARATION AND
DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND
MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE
BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE
OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND
INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF
ONE OR MORE ESCROW AGREEMENTS; AUTHORIZING THE
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PURCHASE OF AND SUBSCRIPTION FOR CERTAIN ESCROWED
SECURITIES; AUTHORIZING ESCROW VERIFICATION AND
ENGAGEMENT OF AN ESCROW AGENT; AUTHORIZING THE
EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR
AGREEMENT AND OTHER RELATED DOCUMENTS; AND MAKING
OTHER PROVISIONS REGARDING SUCH BONDS
was duly introduced for the consideration of said City Council and read in full. It was then duly moved
and seconded that said ordinance be adopted; and after due discussion, such motion, carrying with it the
adoption of said ordinance, prevailed and carried by the following vote:
AYES:All those present voted “aye”
NOES:
ABSTENTIONS:
2.That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting
described in the above and foregoing paragraph is attached to and follows this certificate; that said
ordinance has been duly recorded in said City Council’s minutes of said meeting; that the above and
foregoing paragraph is a true, full, and correct excerpt from the said City Council’s minutes of said
meeting pertaining to the adoption of said ordinance; that the persons named in the above and foregoing
paragraph are the duly chosen, qualified, and acting officers and members of said City Council as
indicated therein; that each of the officers and members of said City Council was duly and sufficiently
notified officially and personally, in advance, of the date, hour, place, and purpose of the aforesaid
meeting, and each of said officers and members consented, in advance, to the holding of said meeting for
such purpose; that said meeting was open to the public as required by law; and that public notice of the
date, hour, place and subject of said meeting was given as required by the Texas Open Meetings Act.
SIGNED AND SEALED this July 15, 2025.
______________________________________
City Clerk
City of Beaumont, Texas
(SEAL)
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ORDINANCE NO. 25-____
ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF
BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM
REVENUE REFUNDING BONDS, SERIES 2025 IN THE AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $19,455,000; IN ONE OR
MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED;
AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND
THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS,
INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN
OTHER MATTERS RELATING THERETO; PROVIDING FOR THE
PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING
SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND
DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL
STATEMENTS AND AUTHORIZING THE PREPARATION AND
DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND
MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE
BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE
OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND
INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF
ONE OR MORE ESCROW AGREEMENTS; AUTHORIZING THE
PURCHASE OF AND SUBSCRIPTION FOR CERTAIN ESCROWED
SECURITIES; AUTHORIZING ESCROW VERIFICATION AND
ENGAGEMENT OF AN ESCROW AGENT; AUTHORIZING THE
EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR
AGREEMENT AND OTHER RELATED DOCUMENTS; AND MAKING
OTHER PROVISIONS REGARDING SUCH BONDS
THE STATE OF TEXAS§
COUNTY OF JEFFERSON§
THE CITY OF BEAUMONT§
WHEREAS, The City of Beaumont, Texas (the “City”) is authorized, pursuant to
Chapters 1371 and 1502, Texas Government Code, as amended, to issue bonds, without election,
payable from the net revenues of its waterworks and sewer system to provide money for
acquisitions, purchases, expansions, extensions, construction, reconstruction, renovation,
equipping, and improvement of such system; and
WHEREAS, the City now desires to issue bonds in order to provide funds to finance the
expansion, repair, renovation and related improvements to the City’s waterworks and sewer
system; and
WHEREAS, by this Ordinance the City Council of the City (the “City Council”) is
authorizing the issuance of its bonds in the principal amount not exceed $19,455,000 for the
purpose of refunding the City’s outstanding obligations identified and described on Schedule I
attached hereto and incorporated herein by reference for all purposes (the “Refunded Bonds”);
and
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WHEREAS, the City shall by this Ordinance, in accordance with the provisions of
Chapter 1207, 1371 and 1502, Texas Government Code, as amended, delegate to a Pricing
Officer (hereinafter designated) the authority to determine the principal amount of Bonds to be
issued and negotiate the terms of sale thereof and to select the specific maturities, in whole or in
part, of the Refunded Bonds to be refunded; and
WHEREAS, the City Council hereby finds and determines that it is a public purpose and
in the best interests of the City to (1) issue the Bonds with such terms to be included in a pricing
certificate (the “Pricing Certificate”) to be executed by the Pricing Officer, all in accordance with
the provisions of Chapters 1371 and 1502, Texas Government Code, as amended; and
WHEREAS, the City Council hereby finds that it may purchase a credit agreement in the
form of a municipal bond insurance policy or policies with respect to the Bonds if it deems such
purchase is cost effective; and
WHEREAS, the bonds to be issued pursuant to the terms and provisions of this
Ordinance will be secured by a pledge of and lien on the Net Revenues (as hereinafter defined);
and
WHEREAS, the City is a home-rule municipality that: (i) adopted its charter under
Section 5, Article XI, Texas Constitution; (ii) has a population of more than 50,000 and (iii) has
outstanding long-term indebtedness that is rated by a nationally recognized rating agency for
municipal securities in one of the four highest rating categories for a long-term obligation.
Now, Therefore
BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS:
1.Findings and Determinations. It is hereby found and determined that the matters
and facts contained in the preamble to this Ordinance are hereby found to be true and correct.
2.Definitions. Throughout this ordinance the following terms and expressions as
used herein shall have the meanings set forth below:
The term “Additional Parity Bonds” shall mean any credit agreement created pursuant to
Section 27 herein or additional bonds issued with the same priority lien as the Bonds.
The term “Average Annual Debt Service Requirements” shall mean the average annual
debt service for the Parity Bonds.
The term “Blanket Issuer Letter of Representations” means the Blanket Issuer Letter of
Representations between the City and DTC.
The term “Bond Insurer” shall mean any third party financial institution that provides a
credit agreement in the form of a municipal bond insurance policy as provided herein.
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The term “Bond Register” shall mean the books of registration kept by the Registrar in
which are maintained the names and addresses of, and the principal amounts of the Bonds
registered to, each Owner.
The terms “Bonds” shall mean the City of Beaumont, Texas Waterworks and Sewer
System Revenue Refunding Bonds, Series 2025.
The term “Business Day” shall mean any day which is not a Saturday, Sunday, a day on
which banking institutions in the city where the principal corporate trust office of the Paying
Agent/Registrar or Bond Insurer, if any, is located, are authorized or required by law or
executive order to close, or a legal holiday.
The term “City” shall mean The City of Beaumont, Texas.
The term “Closing Date” means the date of the initial delivery of and payment for the
Bonds.
The term “Code” means the Internal Revenue Code of 1986, as heretofore and hereafter
amended and, with respect to a specific section thereof, such reference shall be deemed to
include (a) the Regulations promulgated under such section, (b) any successor provision of
similar import hereafter enacted, (c) any corresponding provision of any subsequent Internal
Revenue Code, and (d) the Regulations promulgated under the provisions described in (b) and
(c).
The term “Comptroller” means the Comptroller of Public Accounts of the State of Texas.
The term “DTC” means The Depository Trust Company of New York, New York, or any
successor securities depository.
The term “DTC Participant” means brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations on whose behalf DTC was created to hold securities
to facilitate the clearance and settlement of securities transactions among DTC Participants.
The term “Gross Revenues” shall mean all revenues, income and receipts of every nature
derived or received by the City from the operation and ownership of the System (but excluding
any utility deposits) and the interest income from the investment or deposit of money in the
Revenue Fund, and the Interest and Sinking Fund.
The term “Insurance Policy” shall have the meaning assigned to that term in Section 27
of this Ordinance.
The term “Insured Bonds” shall mean the Bonds during the time period in which the
payment of principal and interest in connection with such bonds is guaranteed by the Bond
Insurer.
The term “Interest Payment Date”, when used in connection with any Bond, shall mean
March 1 and September 1 of each year, beginning March 1, 2025 and continuing thereafter until
maturity or earlier redemption of such Bond.
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The term “Issuer” shall mean the City.
The term “Maintenance and Operation Expenses” shall mean the reasonable and
necessary expenses of operation and maintenance of the System, including all salaries, labor,
materials, repairs and extensions necessary to render efficient service, and all payments under
contracts, now or hereafter defined as operating expenses by the Legislature of the State of
Texas. Depreciation shall never be considered as a Maintenance and Operation Expense.
The term “MSRB” shall mean the Municipal Securities Rulemaking Board.
The term “Net Revenues” shall mean all Gross Revenues remaining after deducting the
Maintenance and Operation Expenses.
The term “Ordinance” as used herein and in the Bonds shall mean this ordinance
authorizing the Bonds and all amendments and supplements hereto.
The term “Outstanding” shall mean, in connection with the Bonds, any Bonds that remain
outstanding until maturity, refunding or defeasance.
The term “Owner” shall mean any person who shall be the registered owner of any
Bonds.
The term “Parity Bonds” shall mean the Bonds, the City’s outstanding Waterworks and
Sewer System Revenue Bonds, Series 2014A and 2014B, the City’s Waterworks and Sewer
System Revenue Refunding Bonds, Series 2015A, the City’s Waterworks and Sewer System
Revenue Bonds, Series 2017, the City’s Waterworks and Sewer System Revenue and Refunding
Bonds, Series 2020A, the City’s Waterworks and Sewer System Revenue Refunding Bonds,
Taxable Series 2020B, the City’s Waterworks and Sewer System Revenue Refunding Bonds,
Taxable Series 2022, the City’s Waterworks and Sewer System Revenue Bonds, Series 2023, the
City’s Waterworks and Sewer System Revenue Bonds, Series 2024 and any Additional Parity
Bonds.
The term “Paying Agent” for the Bonds shall mean the Registrar.
The term “Pricing Certificate” shall mean a certificate or certificates to be signed by the
Mayor, the City Manager or the Chief Financial Officer of the City pursuant to Section 5 hereof
and delivered to the City Clerk, in substantially the form attached hereto as Exhibit A.
The term “Pricing Officer” shall mean the Mayor, City Manager, or Chief Financial
Officer of the City.
The term “Record Date” shall mean, for any Interest Payment Date, the fifteenth (15th)
calendar day of the month next preceding each Interest Payment Date.
The term “Registrar” shall mean UMB Bank, N.A., Houston, Texas, and its successors in
that capacity.
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The term “Regulations” means the applicable proposed, temporary or final Treasury
Regulations promulgated under the Code or, to the extent applicable to the Code under the
Internal Revenue Code of 1954, as such regulations may be amended or supplemented from time
to time.
The term “Reserve Fund Requirement” shall mean an amount equal to the average annual
principal and interest requirement on the Parity Bonds, which may be determined and
redetermined each year by the City but in no event less frequently than upon the issuance of each
series of Parity Bonds.
The term “Rule” shall mean SEC Rule 15c-12, as amended from time to time.
The term “SEC” shall mean the United States Securities and Exchange Commission.
The term “Special Project” shall mean, to the extent permitted by law, any property,
improvement or facility declared by the City not to be part of the System and substantially all of
the costs of the acquisition, construction and installation of which is paid from proceeds of a
financing transaction other than the issuance of bonds payable from ad valorem taxes or Net
Revenues of the System, and for which all maintenance and operation expenses are payable from
sources other than revenues of the System, but only to the extent that and for so long as all or any
part of the revenues or proceeds of which are or will be pledged to secure the payment or
repayment of such costs of acquisition, construction and installation under such financing
transaction.
The term “System” shall mean all properties, facilities, improvements, equipment,
interests and rights constituting the waterworks and sewer system of the City, including all future
extensions, replacements, betterments, additions, improvements, enlargements, acquisitions,
purchases and repairs to the System, but excluding all Special Projects.
The term “Underwriter” shall mean the underwriting syndicate identified in the Pricing
Certificate.
3.Authorization. The Bonds shall be issued in fully registered form in the total
authorized aggregate principal amount not to exceed NINETEEN MILLION FOUR HUNDRED
FIFTY-FIVE THOUSAND AND NO/100 DOLLARS ($19,455,000) for the purpose of
providing funds to (i) a portion of the City’s outstanding waterworks and sewer system bonds
(the “Refunded Bonds”) and (ii) pay costs of issuance of the Bonds.
4.Designation, Date, and Interest Payment Dates. The Bonds shall be designated as
“THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE
REFUNDING BONDS, SERIES 2025” and shall mature no later than 2050. The Bonds shall be
dated, mature, bear interest from the dates and at the rates per annum, and be payable on the
dates and in the principal amounts as set forth in the Pricing Certificate.
5.Sale of Bonds. As authorized by Chapters 1207, 1371 and 1502, Texas
Government Code, as amended, the Pricing Officers are hereby authorized to act on behalf of the
City in selling and delivering the Bonds and carrying out the other procedures specified in this
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Ordinance, including any additional designation or title by which the Bonds shall be known, the
number of subseries of Bonds to be issued and the principal amount of each subseries, the price
at which each series of the Bonds will be sold, the manner in which the Bonds should be
delivered, the date or dates (which may be different dates for each series of the Bonds) on which
the Bonds shall be sold, the form in which the Bonds shall be issued whether as current interest
bonds, as compound interest bonds, or as a combination of current interest bonds and compound
interest bonds, any additional designation or title by which the Bonds shall be known, the year or
years in which each series of the Bonds will mature, the principal amount to mature in each of
such years, the aggregate principal amount of each series of the Bonds, the rate of interest to be
borne by each such maturity, the first interest payment date or compounding date, as the case
may be, the dates, prices, and terms, if any, upon and at which each series of the Bonds shall be
subject to redemption prior to maturity at the option of the City, as well as any mandatory
sinking fund redemption provisions, or make-whole provisions, and such officers are also hereby
authorized to act on behalf of the City in approving all other matters relating to the issuance, sale
and delivery of the Bonds and the purchase of a bond insurance policy or policies for all or any
portion of the Bonds, all in accordance with the terms below:
(a)the price to be paid for each series of the Bonds shall not be less than 90% of the
aggregate original principal amount of the current interest bonds plus accrued interest, if any,
thereon from their date to their delivery;
(b)none of the Bonds shall bear interest at a rate greater than 6% per annum or in
excess of the maximum rate allowed by Chapter 1204, Texas Government Code;
(c)the aggregate principal amount of each subseries of the Bonds shall not exceed
the maximum amount authorized in Section 3, and the sum of the principal amount of each
series, plus net premium generated, plus any available funds of the City, if any, shall equal an
amount sufficient to provide for the redemption of the Refunded Bonds as identified in the
Officer’s Pricing Certificate, to pay costs of issuance of the Bonds, and (if necessary) a deposit to
the reserve fund;
(d)each series of the Bonds to be issued, prior to delivery, must have been rated by a
nationally recognized rating agency for municipal securities in one of the four highest rating
categories for long-term obligations;
(e)to the extent the City shall purchase any Insurance Policy (one or more) issued by
one or more Bond Insurers such policy or policies shall be determined to be most cost effective
to the City for the Bonds and shall result in a net interest rate savings to the City which is greater
than the costs of the premium of such policy or policies, as may be certified in the Officer’s
Pricing Certificate; and
(f) in connection with each series of Bonds issued in whole or in part for refunding
purposes, the refunding of the Refunded Bonds shall produce a net present value debt service
savings of at least 4.50% of the principal amount of the Refunded Bonds being refunded with
such series of Bonds; and
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Any finding by the Mayor, City Manager or the Chief Financial Officer relating to the
sale and delivery of the Bonds and the purchase of bond insurance shall have the same force and
effect as a finding or determination made by the City Council.
6.Bond Numbers and Denominations.Each series of Bonds shall be numbered from
R-1 and upward (except the Initial Bond, which shall each be numbered I-1), and may be transferred
and exchanged as set out in this Ordinance. Such Bonds shall mature on September 1 in each of the
years and in the amounts set forth in the Initial Bond. The Bonds delivered in transfer of or in
exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall
be in the denomination of $5,000 or integral multiples thereof, and shall mature on the same date
and bear interest at the same rate as the Bonds or Bonds in lieu of which they are delivered.
7.Execution of Bonds; Seal. The Bonds shall be signed by the Mayor or Mayor Pro
Tem and countersigned by the City Clerk or Deputy City Clerk, by their manual, lithographed, or
facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile
thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the
Bonds had been signed manually and in person by each of said officers, and such facsimile seal
on the Bonds shall have the same effect as if the official seal of the City had been manually
impressed upon each of the Bonds. If any officer of the City whose manual or facsimile
signature shall appear on the Bonds shall cease to be such officer before the authentication of
such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall
nevertheless be valid and sufficient for all purposes as if such officer had remained in such
office.
8.Approval by Attorney General; Registration by Comptroller. The Bonds to be
initially issued shall be delivered to the Attorney General of Texas for approval and shall be
registered by the Comptroller of Public Accounts of the State of Texas. The manually executed
registration Bond of the Comptroller of Public Accounts substantially in the form provided in the
Pricing Certificate shall be attached or affixed to the Bonds to be initially issued.
9.Authentication. Except for the Bonds to be initially issued, which need not be
authenticated by the Registrar, only such Bonds which bear thereon a certificate of
authentication, substantially in the form provided in Section 19 of this Ordinance, manually
executed by an authorized representative of the Registrar, shall be entitled to the benefits of this
Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of
authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the
Registrar hereunder.
10.Payment of Principal and Interest. The Registrar is hereby appointed as the
paying agent for the Bonds. The principal of and premium, if any, on the Bonds shall be
payable, without exchange or collection charges, in any coin or currency of the United States of
America which, on the date of payment, is legal tender for the payment of debts due the United
States of America, upon their presentation and surrender as they respectively become due and
payable, whether at maturity or by prior redemption, at the principal corporate trust office of the
Registrar. The interest on each Bond shall be payable by check on the Interest Payment Date,
mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the
Record Date, to the address of such Owner as shown on the Bond Register. Any accrued interest
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payable at maturity on a Bond shall be paid upon presentation and surrender of such Bond at the
principal corporate trust office of the Registrar.
If the date for payment of the principal of or interest on any Bond is not a Business Day,
then the date for such payment shall be the next succeeding Business Day, and payment on such
date shall have the same force and effect as if made on the original date such payment was due.
11.Successor Registrars. The City covenants that at all times while any Bonds are
outstanding it will provide a legally qualified bank, trust company, financial institution or other
agency to act as Registrar for the Bonds. The City reserves the right to change the Registrar for
the Bonds on not less than 60 days written notice to the Registrar, so long as any such notice is
effective not less than 60 days prior to the next succeeding principal or interest payment date on
the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar
shall deliver the Bond Register or copies thereof to the new Registrar, and the new Registrar
shall notify each Owner, by United States mail, first class postage prepaid, of such change and of
the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be
deemed to have agreed to the provisions of this Section.
12.Special Record Date. If interest on any Bond is not paid on any Interest Payment
Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establish a new
record date for the payment of such interest, to be known as a Special Record Date. The
Registrar shall establish a Special Record Date when funds to make such interest payment are
received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior
to the date fixed for payment of such past due interest, and notice of the date of payment and the
Special Record Date shall be sent by United States mail, first class, postage prepaid, not later
than five (5) days prior to the Special Record Date, to each affected Owner of record as of the
close of business on the day prior to the mailing of such notice.
13.Ownership; Unclaimed Principal and Interest. The City, the Registrar and any
other person may treat the person in whose name any Bond is registered as the absolute owner of
such Bond for the purpose of making and receiving payment of principal of and premium, if any,
or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and
neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All
payments made to the person deemed to be the owner of any Bond in accordance with this
Section 13 shall be valid and effectual and shall discharge the liability of the City and the
Registrar upon such Bond to the extent of the sums paid.
Amounts held by the Registrar which represent principal of and interest on the Bonds
remaining unclaimed by the Owner after the expiration of three years from the date such
amounts have become due and payable shall be reported and disposed of by the Registrar in
accordance with the applicable provisions of Texas law, including Title 6 of the Texas Property
Code, as amended.
14.Registration, Transfer, and Exchange. So long as any Bonds remain outstanding,
the Registrar shall keep the Bond Register at its principal corporate trust office and, subject to
such reasonable regulations as it may prescribe, the Registrar shall provide for the registration
and transfer of Bonds in accordance with the terms of this Ordinance. If the Registrar does not
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maintain its principal offices in the State of Texas, the City agrees to keep a Bond Register at its
offices which is identical to the Bond Register maintained by the Registrar and the Registrar will
notify the City as to any changes in the Bond Register within 1 business day.
Each Bond shall be transferable only upon the presentation and surrender thereof at the
principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an
assignment duly executed by the registered Owner or his authorized representative in form
satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the
Registrar shall authenticate and deliver in exchange therefor, within three (3) business days after
such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees,
in authorized denominations and of the same type, maturity and aggregate principal amount and
bearing interest at the same rate as the Bond or Bonds so presented.
All Bonds shall be exchangeable upon presentation and surrender thereof at the principal
corporate trust office of the Registrar for a Bond or Bonds of the same type, maturity and interest
rate and in any authorized denomination, in an aggregate amount equal to the unpaid principal
amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby
authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this
Section 14. Each Bond delivered in accordance with this Section 14 shall be entitled to the
benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which
such Bond is delivered.
The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection with the transfer
or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall
be paid by the City.
Neither the City nor the Registrar shall be required to transfer or exchange any Bond called
for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption;
provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner
of the unredeemed balance of a Bond called for redemption in part.
15.Mutilated, Lost, or Stolen Bonds. Upon the presentation and surrender to the
Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a
replacement Bond of like maturity, interest rate, and principal amount, bearing a number not
contemporaneously outstanding. If any Bond is lost, apparently destroyed, or wrongfully taken,
the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or
knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the
Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and
principal amount, bearing a number not contemporaneously outstanding.
The City or the Registrar may require the Owner of a mutilated Bond to pay a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection
therewith and any other expenses connected therewith, including the fees and expenses of the
Registrar. The City or the Registrar may require the Owner of a lost, apparently destroyed or
wrongfully taken Bond, before any replacement Bond is issued, to:
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(1)furnish to the City and the Registrar satisfactory evidence of the
ownership of and the circumstances of the loss, destruction or theft of such Bond;
(2)furnish such security or indemnity as may be required by the Registrar and
the City to save them harmless;
(3)pay all expenses and charges in connection therewith, including, but not
limited to, printing costs, legal fees, fees of the Registrar and any tax or other
governmental charge that may be imposed; and
(4)meet any other reasonable requirements of the City and the Registrar.
If, after the delivery of such replacement Bond, a bona fide purchaser of the original
Bond in lieu of which such replacement Bond was issued presents for payment such original
Bond, the City and the Registrar shall be entitled to recover such replacement Bond from the
person to whom it was delivered or any person taking therefrom, except a bona fide purchaser,
and shall be entitled to recover upon the security or indemnity provided therefor to the extent of
any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith.
If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or
is about to become due and payable, the City in its discretion may, instead of issuing a
replacement Bond, authorize the Registrar to pay such Bond.
Each replacement Bond delivered in accordance with this Section 14 shall be entitled to
the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of
which such replacement Bond is delivered.
16.Cancellation of Bonds. All Bonds paid in accordance with this Ordinance, and all
Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in
accordance herewith, shall be cancelled and destroyed upon the making of proper records
regarding such payment. The Registrar shall furnish the City with appropriate Bonds of
destruction of such Bonds.
17.Book-Entry System. (a) Notwithstanding any other provision hereof, upon initial
issuance of the Bonds but at the sole election of the Underwriter, the ownership of the Bonds shall
be registered in the name of Cede & Co., as nominee of DTC, and except as otherwise provided in
this Section, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee
of DTC. The definitive Bonds shall be initially issued in the form of a single separate Bond for each
of the maturities thereof. If the Underwriter shall elect to invoke the provisions of this Section, then
the following provisions shall take effect with respect to the Bonds.
(b)With respect to Bonds registered in the name of Cede & Co., as nominee of DTC,
the City and the Registrar shall have no responsibility or obligation to any DTC Participant or to
any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without
limiting the immediately preceding sentence, the City and the Registrar shall have no
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or
any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any
DTC Participant or any other person, other than an Owner of a Bond, as shown on the Register,
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of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment
to any DTC Participant or any other person, other than an Owner of a Bond, as shown in the
Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds.
Notwithstanding any other provision of this Ordinance to the contrary, the City and the Registrar
shall be entitled to treat and consider the person in whose name each Bond is registered in the
Register as the absolute Owner of such Bond for the purpose of payment of principal of,
premium, if any, and interest on the Bonds, for the purpose of all matters with respect to such
Bond, for the purpose of registering transfers with respect to such Bond, and for all other
purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on
the Bonds only to or upon the order of the respective Owners, as shown in the Register as
provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such
payments shall be valid and effective to fully satisfy and discharge the City’s obligations with
respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid. No person other than an Owner as shown in the Register, shall receive a
Bond evidencing the obligation of the City to make payments of amounts due pursuant to this
Ordinance. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., the word “Cede & Co.” in this
Ordinance shall refer to such new nominee of DTC.
(c)In the event that the City in its sole discretion determines that the beneficial
owners of the Bonds be able to obtain Bonds, or in the event DTC discontinues the services
described herein, the City shall (i) appoint a successor securities depository, qualified to act as
such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify
DTC and DTC Participants, as identified by DTC, of the appointment of such successor
securities depository and transfer one or more separate Bonds to such successor securities
depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability
through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having
Bonds credited to their DTC , as identified by DTC. In such event, the Bonds shall no longer be
restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but
may be registered in the name of the successor securities depository, or its nominee, or in
whatever name or names Owners transferring or exchanging Bonds shall designate, in
accordance with the provisions of this Ordinance.
(d)The execution and delivery of the Blanket Letter of Representations is hereby
ratified and approved and the Mayor is hereby authorized and directed to execute a new Blanket
Letter of Representations, if required, with such changes as may be approved by the Mayor or
City Manager of the City.
(e)Notwithstanding any other provision of this Ordinance to the contrary, so long as
any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with
respect to principal of, premium, if any, and interest on such Bonds, and all notices with respect
to such Bonds, shall be made and given, respectively, in the manner provided in the Blanket
Letter of Representations.
18.Redemption and Defeasance.
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(a)Optional Redemption. The Bonds shall be subject to redemption prior to the
stated maturity, at the option of the City at such times, in such amounts, in such manner and at
such redemption prices as may be designated and provided for in the Pricing Certificate.
(b)Partial Redemption.If less than all of the Bonds are to be redeemed pursuant to
this Section, the City shall determine the maturity or maturities and the amounts thereof to be
redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions
thereof, within such maturity or maturities and in such principal amounts for redemption at the
close of business on the Business Day next preceding the date of mailing such notice.
(c)Notice of Redemption. Notice of any redemption shall be sent by the Paying
Agent/Registrar by United States mail, first-class postage prepaid, at least 30 days prior to the
date fixed for any such redemption, to the registered owner of each Bond, or portion thereof to
be redeemed, at its address as it appeared on the Register on the close of business on the business
day next preceding the date of mailing such notice; provided, however, that the failure to send,
mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not
affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the
date fixed for any such redemption, due provision shall be made by the City with the Paying
Agent/Registrar for the payment of the required redemption price for this Bond or the portion
hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption.
If such notice of redemption is given, and if due provision for such payment is made, all as
provided above, this Bond, or the portion thereof which is to be so redeemed, thereby
automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after
the date fixed for its redemption, and shall not be regarded as being outstanding except for the
right of the registered owner to receive the redemption price plus accrued interest to the date
fixed for redemption from the Paying Agent/Registrar out of the funds provided for such
payment. The Paying Agent/ Registrar shall record in the Register all such redemptions of
principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed, a
substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any
denomination or denominations in any integral multiple of $5,000, at the written request of the
registered owner, and in aggregate principal amount equal to the unredeemed portion thereof,
will be issued to the registered owner upon the surrender thereof for cancellation, at the expense
of the City, all as provided in the Ordinance.
Bonds may be redeemed only in integral multiples of $5,000. If a Bond subject to
redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed,
but only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the
Registrar, in accordance with Section 14 hereof, shall authenticate and deliver in exchange
therefor a Bond(s) of like maturity and interest rate in an aggregate principal amount equal to the
unredeemed portion of the Bond(s) so surrendered.
The City, at least 45 days before the redemption date, unless a shorter period shall be
satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such
redemption date and of the principal amount of Bonds to be redeemed.
With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the
principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received
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by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may
state that said redemption is conditional upon the receipt of such moneys by the Paying
Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any
prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such
notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying
Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the
effect that the Bonds have not been redeemed.
(d)Conditional Redemption. The City reserves the right in the case of an optional
redemption to give notice of its election or direction to redeem Bonds conditioned upon the
occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned
upon the deposit of moneys and/or authorized securities, in an amount equal to the amount
necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may
be authorized by law, no later than the redemption date or (ii) that the City retains the right to
rescind such notice at any time prior to the scheduled redemption date if the City delivers a
certificate of the City to the Paying Agent/Registrar instructing the Paying Agent/Registrar to
rescind the redemption notice, and such notice and redemption shall be of no effect if such
moneys and/or authorized securities are not so deposited or if the notice is rescinded. The
Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of
redemption to the affected owners. Any Bonds subject to conditional redemption where
redemption has been rescinded shall remain outstanding, and the rescission shall not constitute
an Event of Default. Further, in the case of a conditional redemption, the failure of the City to
make moneys and/or authorized securities available in part or in whole on or before the
redemption date shall not constitute an Event of Default.
(e)Defeasance. The City may defease the provisions of this Ordinance or any
ordinance applicable to any Parity Bonds being defeased and discharge its obligation to the Owners
of any or all of the Bonds, or any or all Parity Bonds to pay principal, interest and redemption
premium, if any, thereon in any manner permitted by law, including by depositing with the Paying
Agent/Registrar, or if authorized by Texas law, with any national or state bank having trust powers
and having combined capital and surplus of at least $50 million, or with the State Treasurer of the
State of Texas either: (a) cash in an amount equal to the principal amount and redemption premium,
if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; or
(b) pursuant to an escrow or trust agreement, cash and/or direct bonds of, or bonds the principal of
and interest on which are guaranteed by or secured by the pledge of direct bonds of the United
States of America, in principal amounts and maturities and bearing interest at rates sufficient to
provide for the timely payment of the principal amount and redemption premium, if any, of such
bonds being defeased plus interest thereon to the date of maturity or redemption; provided,
however, that if any of such bonds being defeased are to be redeemed prior to their respective dates
of maturity, provision shall have been made for giving notice of redemption as provided in this
Ordinance or ordinance applicable to the Parity Bonds being defeased. Upon such deposit, such
bonds being defeased shall no longer be regarded to be outstanding or unpaid. Any surplus amounts
not required to accomplish such defeasance shall be returned to the City.
19.Form. The Form of Bond as set forth in the Pricing Certificate is hereby approved.
The form of the Bonds, including the form of the Registrar’s Authentication Certificate, the form of
Assignment, and the form of Registration Bond of the Comptroller of Public Accounts of the State
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of Texas which shall be attached or affixed to the Bonds initially issued shall be, respectively,
substantially as set forth in the Pricing Certificate, with such additions, deletions and variations as
may be necessary or desirable and not prohibited by this Ordinance.
20.Legal Opinion; CUSIP Numbers. The approving opinion of Holland & Knight
LLP, Houston, Texas, Bond Counsel, and CUSIP Numbers may be printed on the Bonds, but
errors or omissions in the printing of such opinion or such numbers shall have no effect on the
validity of the Bonds.
21.(a)Pledge and Source of Payment. The City hereby covenants and agrees
that all Gross Revenues of the System shall, as collected and received by the City, be deposited
and paid into the special funds established in this Ordinance, and shall be applied in the manner
hereinafter set forth, in order to provide for (i) the payment of all Maintenance and Operation
Expenses and (ii) the payment of principal, interest and any redemption premiums on the Bonds,
and all expenses of paying, securing and insuring the same.
The Bonds are special obligations of the City payable solely from and secured by a lien
on and pledge of the Net Revenues of the System, which Net Revenues shall, in the manner
hereafter provided, be set aside for and are hereby pledged by the City to the payment of the
Bonds and any Parity Bonds. The Bonds do not constitute a legal or equitable pledge, charge,
lien or encumbrance upon any property of the City or the System, except with respect to the Net
Revenues. THE HOLDER OF THIS OBLIGATION IS NOT ENTITLED TO DEMAND
PAYMENT OF THIS OBLIGATION OUT OF ANY MONEY RAISED BY TAXATION.
IT IS ORDERED AND DIRECTED that this Ordinance pledging Net Revenues for the
payment of the Bonds to the extent provided herein be filed and recorded in the records of the
City as necessary to cause the pledge to be valid under Section 1201.44 of the Government Code
of Texas. At any time while any of the Bonds are outstanding, if it is determined by the City or
demanded by the holder of any Bonds that further action by the City is required to make the
pledge valid or maintain the validity of the pledge, the City covenants and hereby directs the
officers of the City to make such filings, including but not limited to appropriate filings under
Chapter 9 of the Business and Commerce Code of Texas as are necessary to make the pledge
valid or continue its validity.
(b)Rates and Charges. So long as any Parity Bonds remain outstanding, there shall
be fixed, charged and collected rates and charges for the use and services of the System, which
may be fully sufficient at all times:
(i)to pay all Maintenance and Operation Expenses; and
(ii)to produce Net Revenues in each fiscal year at least equal to 110 percent
of the principal and interest requirements scheduled to occur in such fiscal year on all
Parity Bonds then outstanding, but in no event less than the amount required to establish
and maintain the Interest and Sinking Fund, and, to the extent that funds for such purpose
are not otherwise available, to pay all other outstanding obligations payable from the Net
Revenues of the System as and when the same become due.
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The City covenants that it will not grant or permit any free service from the System
except for public buildings and institutions operated by the City.
(d)Special Funds. The following special funds shall be maintained and accounted
for as hereinafter provided so long as any of the Parity Bonds remain outstanding:
(i)Waterworks and Sewer System Revenue Fund (the “Revenue Fund”);
(ii)Waterworks and Sewer System Revenue Bond Interest and Sinking Fund
(the “Interest and Sinking Fund”); and
(iii)Waterworks and Sewer System Bond Reserve Fund (the “Reserve Fund”).
The Revenue Fund shall be maintained as a separate account on the books of the City.
The Interest and Sinking Fund and the Reserve Fund shall be maintained at an official depository
bank of the City, separate and apart from all other funds and accounts of the City, and shall
constitute trust funds which shall be held in trust for the benefit of the holders of the Parity
Bonds, and the proceeds of which (except for interest income, which shall be transferred to the
Revenue Fund) shall be and are hereby pledged to the payment of the Parity Bonds. All of the
funds named above shall be used solely as provided in this Ordinance so long as any Parity
Bonds remain outstanding.
(e)Flow of Funds. All Gross Revenues of the System shall be deposited as collected
into the Revenue Fund. Moneys from time to time on deposit to the credit of the Revenue Fund
shall be applied as follows in the following order of priority:
(i)First, to pay Maintenance and Operation Expenses and to provide by
encumbrance for the payment of all obligations incurred by the City for Maintenance and
Operation Expenses which may include an operating reserve equal to one month’s
estimated Maintenance and Operation Expenses.
(ii)Second, to make all deposits into the Interest and Sinking Fund required
by this Ordinance and any ordinance authorizing the issuance of any outstanding
Additional Parity Bonds and to pay any amounts due to any bond insurer of Parity Bonds.
(iii)Third, to make all deposits into the Reserve Fund required by this
Ordinance and any ordinance authorizing the issuance of Additional Parity Bonds.
(iv)Fourth, for any lawful purpose, including transfers to the General Fund as
permitted by law. Such permitted transfers to the General Fund are hereby expressly
authorized by this Ordinance and the purposes for which such surplus revenues may be
used shall include, but not be limited to, payment of any other debt, expense, or
obligation of the City.
Whenever the total amounts on deposit to the credit of the Interest and Sinking Fund and
the Reserve Fund shall be equivalent to the sum of the aggregate principal amount of all
outstanding Parity Bonds plus the aggregate amount of all interest accrued and to accrue thereon,
no further payments need be made into the Interest and Sinking Fund, and the Reserve Fund.
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(f)Interest and Sinking Fund. On or before the last Business Day of each month so
long as any Parity Bonds remain outstanding, after making all required payments and provision
for payment of Maintenance and Operation Expenses, there shall be transferred into the Interest
and Sinking Fund from the Revenue Fund the following amounts:
(i)Such amounts, in approximately equal monthly installments, as will be
sufficient to pay the interest scheduled to become due on the Parity Bonds on the next
interest payment date; and
(ii)Such amounts, in approximately equal monthly installments, as will be
sufficient to pay the next maturing principal of the Parity Bonds, including the principal
amounts of, and any redemption premiums on, any Parity Bonds payable as a result of the
exercise or operation of any redemption provision contained in this Ordinance or in any
ordinance authorizing the issuance of Parity Bonds.
Moneys deposited to the credit of the Interest and Sinking Fund (except for interest
income, which shall be transferred to the Revenue Fund) shall be used solely for the purpose of
paying principal (either at maturity or prior redemption or to purchase Parity Bonds in the open
market to be credited against mandatory redemption requirements), interest and redemption
premiums on the Parity Bonds, plus all bank charges and other costs and expenses relating to
such payment, on a pro rata basis among all series of Parity Bonds. On or before each principal
and/or interest payment date for the Parity Bonds, the City shall transfer from the Interest and
Sinking Fund to the paying agents for the Parity Bonds an amount equal to the principal, interest
and redemption premiums payable on the Parity Bonds on such date, together with an amount
equal to all bank charges and other costs and expenses relating to such payment. The paying
agents for the Parity Bonds shall totally destroy all paid Parity Bonds and coupons (if any) and
shall provide the City with an appropriate Bond of destruction.
(g)Reserve Fund. Unless the Reserve Fund is fully funded, on or before the last
Business Day of each month so long as any Parity Bonds remain outstanding, after making all
required payments and provision for payment of Maintenance and Operation Expenses, and after
making the transfers into the Interest and Sinking Fund required in the preceding Section, there
shall be transferred into the Reserve Fund from the Revenue Fund an amount at least equal to
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one-sixtieth (1/60) of the average annual principal and interest requirements on the Parity
Bonds, so that the Reserve Fund shall contain, in no more than 60 months after the issuance of
each such issue of Parity Bonds, money and investments in an aggregate amount at least equal to
the average annual principal and interest requirements on all Parity Bonds then outstanding.
After such amount has accumulated in the Reserve Fund and so long thereafter as such Fund
contains such amount, no further deposits shall be required to be made into the Reserve Fund,
and any excess amounts may be transferred to the Revenue Fund. But if and whenever the
balance in the Reserve Fund is reduced below such amount, monthly deposits into such fund
th
shall be resumed and continued in amounts at least equal to one-sixtieth (1/60) of the average
annual principal and interest requirements on the Parity Bonds until the Reserve Fund has been
restored to such amount; provided however, if a Reserve Fund Policy has been obtained by the
City pursuant to the next paragraph below, then the provisions of such next paragraph shall
govern and control with respect to replenishment of amounts drawn under the Reserve Fund
Surety Policy. The Reserve Fund shall be used to pay the principal of and interest on the Parity
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Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund
for such purpose and it may be used finally to pay and retire the last Parity Bonds to mature or be
redeemed.
To the extent permitted by law, the City expressly reserves the right at any time to satisfy
all or any part of the amounts required to be on deposit in the Reserve Fund (the “Reserve Fund
Requirement”) by obtaining for the benefit of the Reserve Fund one or more Reserve Fund
Surety Policies (a “Reserve Fund Surety Policy”). The purchase of such Reserve Fund Surety
Policy is approved, and the Mayor, Mayor Pro-Tem, City Manager, Chief Financial Officer, City
Clerk, Deputy City Clerk, and all other appropriate officers and agents of the City are each
authorized to execute such documents, including but not limited to a reimbursement agreement,
to grant a subordinated pledge and lien on the Net Revenues as security for the payment of
amounts due under the reimbursement agreement (which grant if made is hereby approved), and
to do any and all things necessary or desirable to obtain such a Policy if in the discretion of the
acting official deems its acquisition in the best interests of the City. In the event the City elects
to substitute at any time a Reserve Fund Surety Policy for any funded amounts in the Reserve
Fund, it may apply any bond proceeds thereby released, to the greatest extent permitted by law,
to any purposes for which the bonds were issued, and if all such purposes have been satisfied, to
the payment of debt service on such bonds, and it may apply any other funds thereby released to
any of the purposes for which such funds may lawfully be applied including the payment of debt
service on the Parity Bonds. A Reserve Fund Surety Policy shall be an insurance policy or other
similar guarantee in a principal amount equal to the portion of the Reserve Fund Requirement to
be satisfied which is issued by a financial institution or insurance company with a rating for its
long term unsecured debt or claims paying ability of at least an investment grade category by two
major municipal securities evaluation sources. The premium for any such policy shall be paid
from bond proceeds or other funds of the City lawfully available for such purpose. The City
reserves the right to fund any increase in the Reserve Fund Requirement caused by the issuance
of Additional Parity Bonds by the purchase of a Reserve Fund Surety Policy in the amount of
such increase or by making transfers from the Revenue Fund to the Reserve Fund, in
approximately equal monthly installments, in amounts sufficient to accumulate the increase in
the Reserve Fund Requirement within sixty (60) months of the issuance of such Additional
Parity Bonds. If the Reserve Fund contains only cash and the balance in the Reserve Fund is
reduced below the Reserve Fund Requirement at any time, the City shall make monthly transfers
from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in
amounts sufficient to restore the balance in the Reserve Fund to the Reserve Fund Requirement
within twelve (12) months of the date on which the balance in the Reserve Fund was so reduced.
If the Reserve Fund contains a Reserve Fund Surety Policy (and no cash) and a draw is made
against such policy, the City shall make monthly transfers from the Revenue Fund, in
approximately equal monthly installments, in amounts sufficient to reimburse the amount drawn
under such policy within twelve (12) months. If the Reserve Fund contains a combination of
cash and a Reserve Fund Surety Policy, and the balance in the Reserve Fund is reduced below
the Reserve Fund Requirement by a combination of cash withdrawals and draws against the
Reserve Fund Surety Policy, the City shall make monthly transfers from the Revenue Fund, in
approximately equal monthly installments, in amounts sufficient to restore the cash balance in
the Reserve Fund and reimburse the amount drawn under such policy within twelve (12) months,
with reimbursement to be made for all amounts drawn under such policy before any cash
deposits are made into the Reserve Fund. Any reimbursement of amounts drawn against a
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Reserve Fund Surety Policy shall be limited to the amounts actually paid under such policy, and
the City shall have no obligation to make any reimbursement payment with respect to any such
policy except as provided herein.
Notwithstanding anything to the contrary contained herein, the requirement set
forth above in this subsection to maintain the Reserve Fund Requirement in the Reserve
Fund shall be suspended for such time as the Net Revenues for each Fiscal Year are equal
to at least 1.30 times the Average Annual Debt Service Requirements. In the event that the
Net Revenues for any Fiscal Year are less than 1.30 times the Average Annual Debt Service
Requirements, the City will be required to commence making Required Reserve Fund
Deposits, as provided above, and to continue such Required Reserve Fund Deposits until
the earlier of (i) such time as the Reserve Fund contains the Reserve Fund Requirement or
(ii) the Net Revenues in each of two consecutive years have been equal to not less than 1.30
times the Average Annual Debt Service Requirements.
During such time as the Reserve Fund contains the Reserve Fund Requirement or
the obligation to maintain the Reserve Fund Requirement has been suspended pursuant to
the paragraph above, the City may, at its option, withdraw all surplus funds in the Reserve
Fund and deposit such surplus in the Interest and Sinking Fund or otherwise use such
amount in any manner permitted by law.
(h) Deficiencies in Funds. If in any month there shall not be deposited into any Fund
maintained pursuant to this Section 21 the full amounts required herein, amounts equivalent to
such deficiency shall be set apart and paid into such Fund or Funds from the first available and
unallocated money in the Revenue Fund, and such payment shall be in addition to the amounts
otherwise required to be paid into such Funds during the succeeding month or months. To the
extent necessary, the rates and charges for the System shall be increased to make up for any such
deficiencies.
(i)Investment of Funds; Transfer of Investment Income. Money in each Fund
maintained pursuant to this Section of this Ordinance may, at the option of the City, be invested
as permitted by law, provided that all such deposits and investments shall be made in such
manner that the money required to be expended from any Fund will be available at the proper
time or times. Any obligation in which money is so invested shall be kept and held in the Fund
from which the investment was made. All such investments shall be promptly sold when
necessary to prevent any default in connection with the Parity Bonds. All interest and income
derived from such deposits and investments shall be transferred or credited as received to the
Revenue Fund, and shall constitute Gross Revenues of the System; provided, however, to the
extent such interest and income is derived from bond proceeds, such interest and income shall
not constitute Gross Revenues of the System and shall only be used for the purposes for which
the bond proceeds may be used.
22.Additional Bonds.
(a)Additional Parity Bonds. In addition to the right to issue bonds of inferior lien as
authorized by law, the City reserves the right to issue, for any lawful purpose, including the
refunding of any previously issued, Parity Bonds or any other bonds or obligations of the City
20
issued in connection with the System, one or more series of Additional Parity Bonds payable
from, and secured by a lien on and pledge of, the Net Revenues of the System, on a parity with
the Bonds and any other Additional Parity Bonds then outstanding; provided, however, that no
Additional Parity Bonds may be issued unless:
(i)The City shall not hereafter issue any additional obligations possessing a
lien on the Net Revenues of the System superior to that to be possessed by the Parity
Bonds;
(ii)The Additional Parity Bonds mature on September 1, and interest is
payable on March 1 and September 1;
(iii) The Interest and Sinking Fund and the Reserve Fund contain the amount
of money then required to be on deposit therein;
(iv)For either the preceding Fiscal Year or any consecutive 12-month calendar
period ending no more than 90 days prior to adoption of the ordinance authorizing such
Additional Parity Bonds, Net Revenues were equal to at least 125% of the average annual
principal and interest requirements on all Parity Bonds that will be outstanding after the
issuance of the series of Additional Parity Bonds then proposed to be issued, as certified
by the City’s Finance Officer or by an independent certified public accountant or firm of
independent certified public accountants; or
(v) If the City cannot meet the test described in (iv) above, but a change in the
rates and charges applicable to the System becomes effective at least sixty (60) days prior
to the adoption of the ordinance authorizing Additional Parity Bonds and the City’s
Finance Officer certifies that, had such change in rates and charges been effective for the
preceding fiscal year or 12 consecutive calendar month period ending no more than 90
days prior to adoption of said ordinance, the Net Revenues for such period would have
met the test described in (iv) above.
(b)Subordinate Lien Obligations. The City reserves the right to issue, for any lawful
purpose, bonds, notes or other obligations (including but not limited to reimbursement
agreements undertaken to obtain reserve fund security policies) secured in whole or in part by
liens on and pledges of the Net Revenues that are junior and subordinate to the lien on and
pledge of Net Revenues securing payment of the Parity Bonds. Such subordinate lien
obligations may be further secured by any other source of payment lawfully available for such
purposes.
(c)Special Project Bonds. The City reserves the right to issue revenue bonds secured
by liens on and pledges of revenues and proceeds derived from Special Projects.
23.Covenants and Provisions Relating to all Parity Bonds.
(a)Punctual Payment of Parity Bonds. The City will punctually pay or cause to be
paid the interest on and principal of all Parity Bonds according to the terms thereof and will
faithfully do and perform, and at all times fully observe, any and all covenants, undertakings,
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stipulations and provisions contained in this Ordinance and in any ordinance authorizing the
issuance of Additional Parity Bonds.
(b)Maintenance of System. So long as any Parity Bonds remain outstanding, the
City covenants that it will at all times maintain the System, or within the limits of its authority
cause the same to be maintained, in good condition and working order and will operate the same,
or cause the same to be operated, in an efficient and economical manner at a reasonable cost and
in accordance with sound business principles. In operating and maintaining the System, the City
will comply with all contractual provisions and agreements entered into by it and with all valid
rules, regulations, directions or order of any governmental, administrative or judicial body
promulgating same, noncompliance with which would materially and adversely affect the
operation of the System.
(c)Sale or Encumbrance of System. So long as any Parity Bond remains
outstanding, the City will not sell, dispose of or, except as permitted in this Ordinance, further
encumber the System; provided, however, that this provision shall not prevent the City from
disposing of any portion of the System which is being replaced or is deemed by the City to be
obsolete, worn out, surplus or no longer needed for the proper operation of the System. Any
agreement pursuant to which the City contracts with a person, corporation, municipal corporation
or political subdivision to operate the System or to lease and/or operate all or part of the System
shall not be considered as an encumbrance of the System.
(d)Insurance. The City further covenants and agrees that it will keep the System
insured with insurers of good standing against risks, accidents or casualties against which and to
the extent insurance is customarily carried by political subdivisions of the State of Texas
operating similar properties, to the extent that such insurance is available. The cost of all such
insurance, together with any additional insurance, shall be a part of the Maintenance and
Operation Expenses. All net proceeds of such insurance shall be applied to repair or replace the
insured property that is damaged or destroyed, or to make other capital improvements to the
System, or to redeem Parity Bonds.
(e)Accounts, Records and Audits. So long as any Parity Bonds remain outstanding,
the City covenants and agrees that it will maintain a proper and complete system of records and
accounts pertaining to the operation of the System in which full, true and proper entries will be
made of all dealings, transactions, business and affairs which in any way affect or pertain to the
System or the Gross Revenues or the Net Revenues thereof. The City shall after the close of
each of its Fiscal Years cause an audit report of such records and accounts to be prepared by an
independent certified public accountant or independent firm of certified public accountants.
Each year promptly after such audit report is prepared, the City shall furnish a copy thereof
without cost to the Municipal Advisory Council of Texas and any holders of Parity Bonds who
shall request same. All expenses incurred in preparing such audits shall be Maintenance and
Operation Expenses.
(f)Competition. To the extent it legally may, the City will not grant any franchise or
allow for the acquisition, construction or operation of any competing facilities which might be
used as a substitute for the System and will prohibit the operation of any such competing
facilities.
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(g)Pledge and Encumbrance of Net Revenues. The City covenants and represents
that it has the lawful power to pledge the Net Revenues to the payment of the Parity Bonds and
has lawfully exercised such power under the Constitution and laws of the State of Texas. The
City further covenants and represents that, other than to the payment of the Parity Bonds, the Net
Revenues are not and will not be pledged to the payment of any debt or obligation of the City, or
in any other manner encumbered unless such pledge or encumbrance is junior and subordinate to
the lien and pledge securing payment of the Parity Bonds.
(h)Remedies. This Ordinance shall constitute a contract between the City and the
holders of the Parity Bonds from time to time outstanding, and shall remain in effect until the
Parity Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall
have been made as provided herein. In the event of a default in the payment of the principal of
or interest on any of the Parity Bonds or a default in the performance of any duty or covenant
provided by law or in this Ordinance, the holder or holders of any of the Parity Bonds, as
appropriate, may pursue all legal remedies afforded by the Constitution and laws of the State of
Texas to compel the City to remedy such default and to prevent further default or defaults.
Without in any way limiting the generality of the foregoing, it is expressly provided that any
holder of any of the Parity Bonds may at law or in equity, by suit, action, mandamus, or other
proceedings, enforce and compel performance of all duties required to be performed by the City
under this Ordinance, including the making and collection of reasonable and sufficient rates and
charges for the use and services of the System, the deposit of the Gross Revenues thereof into the
special funds as herein provided, and the application of such Gross Revenues and Net Revenues
in the manner required in this Ordinance. Acceleration of payment of principal of or interest on
the Parity Bonds shall not be a remedy of default.
(i)Legal Holidays. In any case where the date fixed for payment of interest on or
principal of the Parity Bonds or the date fixed for redemption of any Parity Bonds shall be a legal
holiday or a day on which a paying agent for the Parity Bonds is authorized by law to close, then
payment of interest or principal by such paying agent need not be made on such date but may be
made on the next succeeding business day with the same force and effect as if made on the date
fixed for such payment and no interest shall accrue for the period from such date to the date of
actual payment.
(j)Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City shall most effectively approximate such
required publication and the giving of such notice in such manner shall for all purposes of this
Ordinance be deemed to be in compliance with the requirements for publication thereof.
24.Further Proceedings. After the Bonds to be initially issued shall have been
executed, it shall be the duty of the Mayor and other appropriate officials and agents of the City
to deliver the Bonds to be initially issued and all pertinent records and proceedings to the
Attorney General of the State of Texas, for examination and approval. After the Bonds to be
initially issued shall have been approved by the Attorney General, they shall be delivered to the
Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the
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Bonds to be initially issued, the Comptroller of Public Accounts (or the Comptroller’s bond clerk
or an assistant bond clerk lawfully designated in writing to act for the Comptroller) shall
manually sign the Comptroller’s Registration Certificate prescribed herein and the seal of said
Comptroller shall be impressed or placed in facsimile, thereon.
25.Engagement of Professionals. The City Council hereby (i) confirms the engagement
of RBC Capital Markets, LLC, as Municipal Advisor, to the City, (ii) confirms the engagement
of Holland & Knight LLP, as bond counsel to the City, and (iii) approves the underwriting
syndicate as identified in the Pricing Certificate.
26.Proceeds of Sale. Proceeds from the sale of the Bonds, together with other funds
of the City, if any, shall, promptly upon receipt by the City, be applied as set forth in the Pricing
Certificate. Any proceeds remaining after the accomplishment of such purposes, including
interest earnings on the investment of such proceeds, shall be deposited to the Interest and
Sinking Fund.
27.Bond Insurance. (a) In order to obtain the lowest attainable interest rates on the
Bonds, the Pricing Officers are authorized to enter into a credit agreement with one or more
Bond Insurers to obtain one or more bond insurance policies with respect to all or a portion of
the Bonds as set forth in the Pricing Certificate. The Pricing Officers are authorized to execute
and the City Clerk is authorized to attest and affix the City’s seal to any documents required in
connection with the purchase of any such policy or policies. The City hereby agrees to provisions
set forth in the Pricing Certificate. Any reimbursement of amounts drawn against such insurance
policy shall be limited to the amounts actually paid under such policy, and the City shall have no
obligation to make any reimbursement payment with respect to any such policy except as
provided therein. Such amounts shall be limited to the extent permitted by law and subject to
annual appropriation by the City.
28.Paying Agent/Registrar Agreement. The paying agent/registrar agreement (the
“Paying Agent Agreement”) by and between the City and the Paying Agent, a form of which is
attached to the Pricing Certificate, is hereby approved, together with such changes or revisions as
may be necessary to accomplish the refunding or benefit the City, an is hereby authorized to be
executed by the Mayor or Mayor Pro Tem and City Clerk for and on behalf of the City.
29.Official Statement. The Preliminary Official Statement and the Official Statement
prepared in the initial offering and sale of the Bonds have been and are hereby authorized, approved
and ratified as to form and content. The use of the Preliminary Official Statement and the Official
Statement in the reoffering of the Bonds by the Underwriter is hereby approved, authorized and
ratified. The proper officials of the City are hereby authorized to execute and deliver a Bond
pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein,
dated as of the date set forth herein.
30.No Personal Liability. No recourse shall be had for payment of the principal of or
interest on any Bonds or for any claim based thereon, or on this Ordinance, against any official
or employee of the City or any person executing any Bonds.
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31.Continuing Disclosure Undertaking. (a) Annual Reports. The City undertakes
and agrees for the benefit of the Bond holders to provide annually to the MSRB, within six months
after the end of each fiscal year, financial information and operating data with respect to the City of
the general type included in the final Official Statement authorized in this Ordinance (i) under the
headings “CITY WATERWORKS AND SEWER SYSTEM REVENUE DEBT,”
“ADMINISTRATION OF THE CITY,” “THE SYSTEM-WATER AND SEWER RATES” and in
APPENDIX B. The information to be provided shall include the financial statements of the City
prepared in accordance with the accounting principles the City may be required to employ from
time to time pursuant to State law or regulation and audited, if the audit is completed within the
period during which they must be provided. If the audit of such financial statements is not
completed within such period, then the City shall provide unaudited financial statements for the
applicable fiscal year to the MSRB within such six month period, and audited financial statements
when the audit report on such statement becomes available.
If the City changes its fiscal year, it will notify the MSRB of the change (and of the date
of the new fiscal year end) prior to the next date by which the City otherwise would be required
to provide financial information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may
be set forth in full in one or more documents or may be included by specific reference to any
document (including an official statement or other offering document, if it is available from the
MSRB) that theretofore has been provided to the MSRB or filed with the SEC.
(a)Material Event Notices. The City shall notify the MSRB, in a timely manner, of
any of the following events with respect to the Bonds, if such event is material within the
meaning of the federal securities laws:
i.Principal and interest payment delinquencies;
ii.Non-payment related defaults, if material;
iii.Unscheduled draws on debt service reserves reflecting financial difficulties;
iv.Unscheduled draws on credit enhancements reflecting financial difficulties;
v.Substitution of credit or liquidity providers, or their failure to perform;
vi.Adverse tax opinions or the issuance by the Internal Revenue Service of
proposed or final determination of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to
the tax status of the security, or other material events affecting the tax status
of the security;
vii.Modifications to rights of Bondholders, if material;
viii. Bond calls, if material, and tender offers;
ix.Defeasances;
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x.Release, substitution or sale of property securing repayment of the securities,
if material;
xi.Rating changes;
Note to paragraph (xi): For the purposes of the event identified in paragraph (k) of
this section, the event is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for the City in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under
state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the City, or if such
jurisdiction has been assumed by leaving the existing governing body and
officials or officers in possession but subject to the supervision and orders of a
court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority
having supervision or jurisdiction over substantially all of the assets or business of
the City.
xii.Bankruptcy, insolvency, or receivership, or similar event of the obligated
person;
xiii.The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry into
a definitive agreement or undertake such action, or the termination of a
definitive agreement relating to any such actions, other than pursuant to its
terms, if material;
xiv.Appointment of a successor or additional paying agent or the change of
name of a paying agent, if material:
xv.Incurrence of a financial obligation of the City, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar
terms of a financial obligation of the City, any of which affect security
holders, if material; and
xvi.Default, event of acceleration, termination event, modification of terms, or
other similar events under the terms of a financial obligation of the City
any of which reflect financial difficulties.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with section (a) above. All documents
provided to the MSRB shall be accompanied by identifying information as prescribed by the
MSRB.
The City reserves the right to file all information and notices required under this Article
through the facilities of DisclosureUSA or any other central post office approved by the SEC for
such purpose.
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(b) Limitations, Disclaimers and Amendments. The City shall be obligated to observe
and perform the covenants specified in this Section for so long as, but only for so long as, the
City remains an “obligated person” with respect to the Bonds within the meaning of the Rule,
except that the City in any event will give notice of any deposit made in accordance with Texas
law that causes Bonds no longer to be outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial
owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or
any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and
notices which it has expressly agreed to provide pursuant to this Section and does not hereby
undertake to provide any other information that may be relevant or material to a complete
presentation of the City’s financial results, condition, or prospects or hereby undertake to update
any information provided in accordance with this Section or otherwise, except as expressly
provided herein. The City does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Bonds at any future date.
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER
OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR
TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT
SPECIFIED IN THIS SECTION OR FROM ANY STATEMENT MADE PURSUANT TO
THIS SECTION. HOLDERS OR BENEFICIAL OWNERS OF BONDS MAY SEEK AS
THEIR SOLE REMEDY A WRIT OF MANDAMUS TO COMPEL THE CITY TO COMPLY
WITH ITS AGREEMENT.
No default by the City with respect to its continuing disclosure agreement shall constitute
a breach of or default under this Ordinance for purposes of any other provision of this Ordinance.
Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
The provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a
change in the identity, nature, status or type of operations of the City, if (i) the agreement, as
amended, would have permitted the Underwriter to purchase or sell the Bonds in the initial
primary offering in compliance with the Rule, taking into account any amendments or
interpretations of such rule to the date of such amendment, as well as such changed
circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the
outstanding Bonds consent to such amendment, or (b) any person unaffiliated with the City (such
as nationally recognized bond counsel) determines the amendment will not materially impair the
interests of the holders and beneficial owners of the Bonds. The City may also amend or repeal
the obligations and agreement in this Section if the SEC amends or repeals the applicable
provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid,
and the City may amend the agreement in its discretion in any other circumstance or manner, but
in either case only to the extent that its right to do so would not prevent an underwriter from
lawfully purchasing or reselling the Bonds in the primary offering of the Bonds in compliance
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with the Rule. If the City amends its agreement, it must include with the next financial
information and operating data provided in accordance with its agreement an explanation, in
narrative form, of the reasons for the amendment and of the impact of any change in the type of
information and operating data so provided.
32.Appointment of Escrow Agent; Approval of Escrow Agreement. The escrow
agent identified in the Pricing Certificate is hereby appointed Escrow Agent for the purpose of
refunding the Refunded Bonds. The Mayor and the City Clerk are hereby authorized and directed
to execute the Escrow Agreement on behalf of the City, the term and provisions of which are
hereby approved.
33.Redemption of Refunded Bonds; Verification Agent. The Refunded Bonds are
hereby called for redemption prior to maturity on the dates and at the redemption prices set forth
in Schedule I. The City Clerk is hereby authorized and directed to cause to be delivered to the
paying agent/registrar for the Refunded Bonds a certified copy of this Ordinance calling the
Refunded Bonds for redemption. The delivery of this Ordinance to the paying agent/registrar for
the Refunded Bonds shall constitute the giving of notice of redemption to the paying
agent/registrar for the Refunded Bonds, and such paying agent/registrar is hereby authorized and
directed to give notice of redemption to the owners of the Refunded Bonds in accordance with
the requirements of the respective ordinances authorizing the issuance thereof. Following the
deposit to the Escrow Fund, the Refunded Bonds shall be payable solely from and secured by the
cash and securities on deposit in the Escrow Fund for the purpose of refunding the Refunded
Bonds and shall case to be payable from any other source.
If necessary a verification agent shall be appointed as described in the Pricing Certificate.
35.Repealer. All orders, resolutions, and ordinances, and parts thereof inconsistent
herewith are hereby repealed to the extent of such inconsistency.
36.Effective Date. This Ordinance shall be in force and effect from and after its final
passage, and it is so ordered.
37.Amendment of Ordinance.
(a) If and to the extent permitted by this Ordinance, the owners of the Bonds aggregating
in the principal amount of 51% of the aggregate principal amount of the outstanding Bonds shall
have the right from time to time to approve any amendment to this Ordinance which may be
deemed necessary or desirable by the City provided, however, that without the consent of the
owners of all of the Bonds at the time outstanding, nothing herein contained shall permit or be
construed to permit the amendment of the terms and conditions in this Ordinance or in the Bonds
so as to:
(1)Make any change in the maturity of the outstanding Bonds;
(2)Reduce the rate of interest borne by any of the outstanding Bonds;
(3)Reduce the amount of the principal payable on the outstanding Bonds;
28
(4)Modify the terms of payment of principal of or interest on the outstanding
Bonds, or impose any conditions with respect to such payment;
(5)Affect the owners of less than all of the outstanding Bonds then
outstanding;
(6)Change the percentage of the principal amount of outstanding Bonds,
necessary for consent to such amendment.
(b)If at any time the City shall desire to amend this Ordinance under this Section, the
City shall cause notice of the proposed amendment to be published in a financial newspaper or
journal published in The City of New York, New York, once during each calendar week for at
least two successive calendar weeks. Such notice shall briefly set forth the nature of the
proposed amendment and shall state that a copy thereof is on file at the principal office of the
Paying Agent for inspection by all owners of the Bonds. Such publication is not required,
however, if notice in writing is given to each owner of the outstanding Bonds. Not less than
thirty (30) days’ notice of the proposed amendment shall also be given by the City to the
Underwriter.
(c)Whenever at any time not less than thirty (30) days, and within one (1) year, from
the date of the publication of said notice or other service of written notice the City shall receive
an instrument or instruments executed by the owners of at least 51% in aggregate principal
amount of the Bonds then outstanding, which instrument or instruments shall refer to the
proposed amendment described in said notice and which specifically consent to and approve
such amendment in substantially the form of the copy thereof on file with the Paying Agent, the
City Council may adopt the amendatory resolution in substantially the same form.
(d)Upon adoption of any amendatory resolution pursuant to the provision of this
Section, this Ordinance shall be deemed to be amended in accordance with such amendatory
resolution, and the respective rights, duties and Bonds under this Ordinance of the City and all
the owners of then outstanding Bonds, shall thereafter be determined, exercised and enforced
hereunder, subject in all respect to such amendments.
(e)Any consent given by the owner of the outstanding Bonds pursuant to the
provisions of this Section shall be irrevocable for a period of six months from the date of the first
publication of the notice provided for in this Section, and shall be conclusive and binding upon
all future owners of the same Bonds, during such period. Such consent may be revoked at any
time after six months from the date of the first publication of such notice by the owner who gave
such consent, or by a successor in title, by filing notice thereof with the Paying Agent and the
City, but such revocation shall not be effective if the owners of 51% in aggregate principal
amount of the then outstanding Bonds, as in this Section defined have, prior to the attempted
revocation, consented to and approved the amendment.
(f) For the purpose of this Section, the fact of the owning of Bonds, by any owner of
Bonds, and the amount and number of such Bonds, and the date of their owning same shall be
determined by the Registration Books of the Paying Agent/Registrar.
29
(g)The foregoing provisions of this Section notwithstanding, the City by action of
the City Council (or as item (2) by the City Council or by the Mayor, Mayor Pro Tem, City
Manager or Chief Financial Officer as to changes prior to issuance to comply with requirements
by the Attorney General of Texas or Underwriter) may amend this Ordinance for any one or
more of the following purposes:
(1)To add to the covenants and agreements of the City in this
Ordinance contained, other covenants and agreements thereafter to be observed,
grant additional rights or remedies to the owners of bonds or to surrender, restrict
or limit any right or power herein reserved to or conferred upon the City.
(2)To make such provisions for the purpose of clarifying matters or
questions arising under this Ordinance, as are required by the Attorney General of
Texas to obtain the Attorney General’s approval of the issuance of the Bonds or
required by the Underwriter before their issuance or for the purpose of curing any
ambiguity, or curing, correcting or supplementing any defective provision
contained in this Ordinance, or at any time before or after issuance as are
necessary or desirable and not contrary to or inconsistent with this Ordinance, and
in all events which shall not adversely affect the interests of the owners of the
Bonds.
(3)To modify any of the provisions of this Ordinance in any other
respect whatever, provided that: (i) such modification shall be, and be expressed
to be, effective only after all Bonds outstanding at the date of the adoption of such
modification shall cease to be outstanding, and (ii) such modification shall be
specifically referred to in the text of all Bonds issued after the date of the adoption
of such modification.
38.Related Matters. To satisfy in a timely manner all of the City’s obligations under
this Ordinance, the Mayor or Mayor Pro Tem, City Manager, Chief Financial Officer, City Clerk
or any Deputy City Clerk, and all other appropriate officers and agents of the City are hereby
authorized and directed to take all other actions that are reasonably necessary to provide for the
issuance of the Bonds, including without limitation, executing and delivering on behalf of the
City all Bonds, consents, receipts, requests, and other documents as may be reasonably necessary
to satisfy the City’s obligations under this Ordinance and to direct the application of funds of the
City consistent with the provisions of this Ordinance.
39.Open Meeting. It is hereby officially found and determined that the meeting at
which this Ordinance was adopted was open to the public, and public notice of the time, place
and purpose of said meeting was given, all as required by Chapter 551 of the Texas Government
Code.
40.Interpretations. All terms defined herein and all pronouns used in this Ordinance
shall be deemed to apply equally to singular and plural and to all genders. The titles and
headings of the sections of this Ordinance have been inserted for convenience of reference only
and are not to be considered a part hereof and shall not in any way modify or restrict any of the
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terms or provisions hereof. This Ordinance and all of the terms and provisions hereof shall be
liberally construed to effectuate the purposes set forth herein and to sustain the validity of the
Parity Bonds and the validity of the lien on and pledge of the Net Revenues to secure the
payment of the Parity Bonds.
41.If any section, paragraph, clause or provision of this Ordinance shall for any reason
be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph,
clause or provision shall not affect any of the remaining provisions of this Ordinance.
\[The remainder of this page has intentionally been left blank.\]
31
th
PASSED APPROVED and ADOPTED on first and final reading this 15 day of July
2025, with ________ members voting yes, ______ members voting no, and ______ members
abstaining
________________________________Mayor
ATTEST:
_______________________________
City Clerk
Approved as to Form
___________________________
Sharea Reed, City Attorney
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SCHEDULE “I”
REFUNDED BONDS
City of Beaumont, Texas Waterworks and Sewer Revenue and Refunding Bonds, Series 2015A
33
EXHIBIT “A”
FORM OF PRICING CERTIFICATE
PRICING CERTIFICATE
CITY OF BEAUMONT, TEXAS
WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS SERIES 2025
THIS PRICING CERTIFICATE is executed as of July ___, 2025, by the Chief Financial
Officer, Beaumont Texas (the “City”) pursuant to the authorization contained in the Ordinance of
the City Council of the City adopted on July 15, 2025 (the “Ordinance”), authorizing the
issuance of the captioned series of bonds and delegating to the undersigned the authority to agree
to and stipulate certain terms and provisions thereof, all of which are set forth herein.
Capitalized terms used in this Pricing Certificate shall have the meanings assigned to
them in the Ordinance.
1.Principal Amount, Numbers, Interest Rates and Maturities. The Bonds shall be
issued in the total authorized principal amount of $___,000. The Bonds shall mature on
September 1 in each of the years and in the amounts set out in the following schedule:
\[SCHEDULE\]
2.Redemption.
Optional Redemption. The Bonds stated to mature on and after September 1,
20___, are subject to optional redemption prior to maturity, in whole or in part, on September 1,
20___ or any date thereafter, at a redemption price of par plus accrued interest to the date of
redemption.
3.Purchase Price. The sale of the Bonds is authorized pursuant to the form of the
Bond Purchase Contract approved in the Ordinance at the following price:
PRINCIPAL AMOUNT$______.00
Plus Net Original Issue Premium__________
Less Underwriter’s Discount__________
PURCHASE PRICE$__________
4.Form of Bond. Pursuant to Section 19 of the Ordinance, the Form of Bond as set
forth in Exhibit A hereto is hereby approved.
#524276413_v1
5.The undersigned hereby finds, determines and declares, that in accordance with
the requirements of the Ordinance, this Pricing Certificate complies with and satisfies the terms
and provisions of the Ordinance in accordance with the delegation contained therein.
6.Pursuant to Section 5 of the Ordinance, I hereby further find and determine that:
(a) the price to be paid for each series of the Bonds shall not be less than 90%
of the aggregate original principal amount of the current interest bonds
plus accrued interest, if any, thereon from their date to their delivery;
(b)none of the Bonds shall bear interest at a rate greater than 6% per annum
or in excess of the maximum rate allowed by Chapter 1204, Texas
Government Code;
(c)the aggregate principal amount of each subseries of the Bonds shall not
exceed the maximum amount authorized in Section 3, and the sum of the
principal amount of each series, plus net premium generated, plus any
available funds of the City, if any, shall equal an amount sufficient to
provide for the redemption of the Refunded Bonds as identified in the
Pricing Certificate, to pay costs of issuance of the Bonds, and (if
necessary) a deposit to the reserve fund;
(d)each series of the Bonds to be issued, prior to delivery, must have been
rated by a nationally recognized rating agency for municipal securities in
one of the four highest rating categories for long-term obligations;
(e)the Insurance Policy is the most cost effective to the City for the Bonds
and results in a net interest rate savings to the City which is greater than
the costs of the premium of such policy.
(f) in connection with each series of Bonds issued in whole or in part for
refunding purposes, the refunding of the Refunded Bonds shall produce a
net present value debt service savings of at least 4.50% of the principal
amount of the Refunded Bonds being refunded with such series of Bonds;
and
7. Deposit of Proceeds.
(a) The amount of $__________ shall be deposited to the Project Fund and
shall be applied as specified in the Ordinance.
(b) The amount of $__________ shall be deposited with the Escrow Agent and
shall be applied as specified in the Escrow Agreement.
(c)The remaining balance shall be used to pay the costs of issuing the Bonds
and refunding the Refunded Obligations; provided that any amount
representing a rounding or contingency amount shall be applied solely to
pay costs of issuance of the Bonds. Amounts remaining after payment of
2
#524276413_v1
costs of issuance shall be deposited to the Interest and Sinking Fund and
applied to the payment of debt service on the Bonds.
8. Municipal Bond Insurance.
(a)The City hereby acknowledges its obligations as set forth in Exhibit B
attached hereto.
9. The undersigned hereby finds and determines that the terms herein described are
in the best interests of the City.
<EXECUTION PAGE FOLLOWS>
3
#524276413_v1
IN WITNESS WHEREOF, I have hereunto set my hand this
_________________________, 2025.
____________________________________
CITY MANAGER
4
#524276413_v1
EXHIBIT A TO PRICING CERTIFICATE
FORM OF BOND FOR SERIES 2025
The form of the Bonds, including the form of the Registration Certificate of the Comptroller of
Public Accounts of the State of Texas, to accompany the Initial Bond, the form of Certificate of the
Registrar and the form of Assignment appearing on the Bonds, shall be substantially as follows:
(a)Form of Bonds.
REGISTEREDREGISTERED
1
No. R-___$__________
United States of America
State of Texas
CITY OF BEAUMONT, TEXAS
WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS, SERIES 2025
222
INTEREST RATE:MATURITY DATE:BOND DATE:CUSIP NUMBER:
_____%September 1, ____August 1, 2025_______
REGISTERED OWNER:
PRINCIPAL AMOUNT:DOLLARS
3
THE CITY OF BEAUMONT, TEXAS (the “City”), promises to pay to the registered owner
identified above, or registered assigns, on the date specified above, upon presentation and surrender of
this Bond at the designated corporate trust office of UMB BANK, N.A., Houston, Texas (the
“Registrar”), or at its principal payment office in Dallas, Texas, the principal amount identified above,
payable in any coin or currency of the United States of America which on the date of payment of such
principal is legal tender for the payment of debts due the United States of America, and to pay interest
1
Initial Bond shall be numbered I-1.
2
Omitted from Initial Bond.
3
The first paragraph of the Initial Bond shall read as follows: THE CITY OF BEAUMONT, TEXAS (the “City”), promises to pay to the
registered owner identified above, or registered assigns, on the date specified below, upon presentation and surrender of this Bond at the
designated corporate trust office of UMB BANK, N.A., Houston, Texas (the “Registrar”), or at its principal payment office in Houston, Texas,
the principal amounts set forth in the following schedule: \[Insert information regarding years of maturity, principal amounts and interest rates
from Pricing Certificate\], payable in any coin or currency of the United States of America which on the date of payment of such principal is legal
tender for the payment of debts due the United States of America, and to pay interest thereon at the rate shown above, calculated on the basis of a
360-day year of twelve 30-day months, from the later of August _____, 2025, or the most recent interest payment date to which interest has been
paid or duly provided for. Interest on this Bond is payable by check on September 1, 2025, and semiannually thereafter on each March 1 and
September 1, mailed to the registered owner as shown on the books of registration kept by the Registrar as of the 15th day of the month next
preceding each interest payment date.
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thereon at the rate shown above, calculated on the basis of a 360-day year of twelve 30-day months, from
the later of August ___, 2025, or the most recent interest payment date to which interest has been paid or
duly provided for. Interest on this Bond is payable by check on March 1, 2025, and semiannually
thereafter on each March 1 and September 1, mailed to the registered owner as shown on the books of
registration kept by the Registrar as of the 15th day of the month next preceding each interest payment
date.
THIS BOND is one of a duly authorized issue of Bonds, aggregating $___,000 (the “Bonds”),
issued in accordance with the Constitution and the laws of the State of Texas, particularly Chapters 1371,
1207 and 1502, Texas Government Code, as amended, for (i) finance capital expenditures acquisition,
purchase, construction, reconstruction, improvement, renovation, expansion, or equipping of property,
buildings, structures, facilities, or related infrastructure for the City’s waterworks and sewer system (the
“Project”), (ii) discharge and make final payment of certain obligations of the City and (iii) paying costs
of issuance of the Bonds, pursuant to the Ordinance, which Ordinance is of record in the official minutes
of the City Council.
THESE BONDS are special obligations of the City payable solely from and secured by a lien on
and pledge of the Net Revenues (as defined in the Ordinance) of the City’s waterworks and sewer system
(the “System”), such lien and pledge, however, being junior and subordinate to the lien on and pledge of
such Net Revenues to the payment and security of the Prior Lien Bonds (as defined in the Ordinance).
The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property
of the City or the System, except with respect to the Net Revenues. THE HOLDER OF THIS
OBLIGATION IS NOT ENTITLED TO DEMAND PAYMENT OF THIS OBLIGATION OUT OF
ANY MONEY RAISED BY TAXATION.
Subject to satisfying the terms and conditions prescribed therefor, the City has reserved the right
to issue additional revenue obligations payable from and equally and ratably secured by a parity lien on
and pledge of the Net Revenues in the same manner and to the same extent as the Bonds.
Build America Mutual Assurance Company (“BAM”), New York, New York, has delivered its
municipal bond insurance policy (the “Policy”) with respect to the scheduled payments due of principal of
and interest on this Bond to UMB Bank, N.A., Houston, Texas, or its successor, as paying agent for the
Bonds (the “Paying Agent”). Said Policy is on file and available for inspection at the principal office of
the Paying Agent and a copy thereof may be obtained from BAM or the Paying Agent. All payments
required to be made under the Policy shall be made in accordance with the provisions thereof. By its
purchase of these Bonds, the owner acknowledges and consents (i) to the subrogation and all other rights
of BAM as more fully set forth in the Policy and (ii) that upon the occurrence and continuance of a
default or an event of default under the Ordinance or this Bond, BAM shall be deemed to be the sole
owner of the Bonds for all purposes and shall be entitled to control and direct the enforcement of all rights
and remedies granted to the owners of the Bonds or the trustee, paying agent, registrar or similar agent for
the benefit of such owners under the Ordinance, at law or in equity.
THE CITY RESERVES THE RIGHT, at its option, to redeem the Bonds having stated maturities
on or after September 1, 20___, in whole or in part, on September 1, 20___, or any date thereafter, in
integral multiples of $5,000, at a price of par plus accrued interest to the date fixed for redemption.
Reference is made to the Ordinance for complete details concerning the manner of redeeming the Bonds.
The Paying Agent shall select for redemption by lot, or by any other customary method that
results in random selection, a principal amount of Term Bonds equal to the aggregate principal amount of
such Term Bonds to be redeemed, shall call such Term Bonds for redemption on the scheduled mandatory
redemption date, and shall give notice of such redemption in accordance with the Ordinance authorizing
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the Bonds. The principal amount of Term Bonds required to be mandatorily redeemed shall be reduced
by the principal amount of Term Bonds which, at least 45 days prior to the mandatory redemption date,
shall have been delivered to the Registrar for cancellation or shall have been optionally redeemed and not
previously credited against a mandatory redemption requirement.
The City, at least 45 days before the redemption date, unless a shorter period shall be satisfactory
to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the
principal amount of Bonds to be redeemed.
NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior the date fixed for
redemption by first class mail, addressed to the registered owner of each Bond to be redeemed in whole or
in part at the address shown on the books of registration kept by the Registrar. When Bonds or portions
thereof have been called for redemption and due provision has been made to redeem the same, the
principal amounts so redeemed shall be payable solely from the funds provided for redemption and
interest which would otherwise accrue on the amounts called for redemption shall terminate on the date
fixed for redemption.
With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the
principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by
the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that
said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior
to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice
of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the
City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in
which the notice of redemption was given, to the effect that the Bonds have not been redeemed.
The Bonds may be defeased as provided in the Ordinance authorizing the Bonds.
THIS BOND is transferable only upon presentation and surrender at the principal corporate trust
office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the
registered owner or his authorized representative, subject to the terms and conditions of the Ordinance.
THE BONDS are exchangeable at the principal corporate trust office of the Registrar for Bonds
in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of
this Ordinance.
NEITHER THE CITY NOR THE REGISTRAR shall be required to transfer or exchange any
Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for
redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the
Owner of the unredeemed balance of a Bond called for redemption in part.
THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under
the Ordinance unless this Bond either (i) is registered by the Comptroller of Public Accounts of the State
of Texas by registration certificate attached or affixed hereto or (ii) authenticated by the Registrar by due
execution of the authentication certificate endorsed hereon.
THE REGISTERED OWNER of this Bond, by acceptance hereof, acknowledges and agrees to be
bound by all the terms and conditions of the Ordinance.
THE CITY has covenanted in the Ordinance that it will at all times provide a legally qualified
registrar for the Bonds and will cause notice of any change of registrar to be mailed to each registered
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owner.
IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly issued
and delivered; that all acts, conditions and things required or proper to be performed, to exist and to be
done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been
done in accordance with law; that the bonds of this series do not exceed any statutory limitation; and that
provision has been made for the payment of principal and interest on this bond and all of the bonds of this
series by the aforesaid lien on and pledge of the Net Revenues of the System.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of
the Mayor of the City and countersigned with the manual or facsimile signature of the City Clerk of the
City and the official seal of the City has been duly impressed, or placed in facsimile, on this Bond.
THE CITY OF BEAUMONT, TEXAS
City Clerk,Mayor,
City of Beaumont, TexasCity of Beaumont, Texas
\[SEAL\]
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FORM OF REGISTRATION CERTIFICATE
OF COMPTROLLER OF PUBLIC ACCOUNTS
COMPTROLLER’S REGISTRATION CERTIFICATE:
REGISTER NO. _____
I hereby certify that this Bond has been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of
Public Accounts of the State of Texas.
WITNESS MY SIGNATURE AND SEAL this _____ day of ___________, 2025.
________________________________
Comptroller of Public Accounts
(Seal)of the State of Texas
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
FORM OF REGISTRAR’S AUTHENTICATION CERTIFICATE
REGISTRAR’S
AUTHENTICATION CERTIFICATE
It is hereby certified that this Bond has been delivered pursuant to the Ordinance described in the
text of this Bond.
UMB Bank, N.A., Houston, Texas, as Registrar
By: ____________________________________________
Authorized Signature
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Date of Authentication: ____________________________
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns, and transfers unto
________________________________________________________________________
(Please print or type name, address, and zip code of Transferee)
________________________________________________________________________
(Please insert Social Security or Taxpayer Identification Number of Transferee)
the within bond and all rights thereunder, and hereby irrevocably constitutes and
appoints______________________________________________________________________
attorney to transfer said bond on the books kept for registration thereof, with full power of
substitution in the premises.
DATED: _________________________
Signature Guaranteed:
_____________________________
NOTICE: The signature above must correspond to the name of the registered owner as shown
on the face of this bond in every particular, without any alteration, enlargement or change whatsoever.
_________________________
NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a
commercial bank or trust company.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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EXHIBIT B TO PRICING CERTIFICATE
BOND INSURANCE
\[TO COME\]r
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7
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Demi Engman, Director of Planning and Community Development
MEETING DATE:July 15, 2025
REQUESTED ACTION:Consider an ordinance to amend Section 28.03.023(e) of the City’s
Code of Ordinances to limit the permitted use of gaming sites and
gaming machines to industrial zoning districts.
BACKGROUND
In the City of Fort Worth v. Rylie, the Texas Court of Appeals ruled that Fort Worth’s city
ordinances regulating gaming were not preempted by state law. The court concluded that eight-
liner gaming machines operated in game rooms are unconstitutional lotteries under the Texas
Constitution because they involve the elements of chance, consideration (payment), and prize.
However, the Texas Comptroller (State) continues to issue decals and collect occupational tax
for gaming machines.
In Chapter 28 of the City’s Zoning Code, the Permitted Use Table identifies the zoning districts
where gaming sites and machines are allowed. Currently, gaming operations are allowed within
commercial and industrial zoning districts. Planning recommends amending the zoning
ordinance to restrict gaming operations exclusively to industrial zoning districts. This
amendment aims to preserve community character, safeguard quality of life, and minimize
disproportionate exposure to such uses in underserved or vulnerable areas. Legal nonconformity,
also known as grandfathering, will apply to existing gaming sites that hold a valid permit.
At a Joint Public Hearing, held on May 19, 2025, the Planning Commission recommended 7:0 to
approve a ban on all gaming operations within the city limits of Beaumont. On May 20, 2025,
the City Council recommended to table an item to ban gaming operations within the city to have
staff review more options. Planning recommends limiting the permitted use of gaming to
industrial zoning districts only.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approve the ordinance.
ATTACHMENTS
Section 28.03.023(e) Permitted Use Table.
2
Cond.
Special
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Group
Parking
rec.
and
bands,
and
devices
and
Permitted
facilities
parks
sports
recreation
schools
courses
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and
centers
classified
sports
as
services, not
and
halls
clubs
instruction
golf
producers,
amusementdevices
fitness
rooms
Group
instruction
studios,
operated
-
Bowling Amusement
Yoga
(except
Amusement
pictures (as noted)
Commercial
PublicGymnastics/tumble
SIC
elsewhere
services, except motion
recreation
Physical
Coin
orchestras and entertainers
Dance
Membership
AmusementTheatrical
Gaming
Judo/karate/MMA/instruction
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PUBLIC
HEARING
Council to conduct a Public Hearing to receive comments to
temporarily waive transit fares for students
8
TO:City Council
FROM:Kenneth R. Williams, City Manager
PREPARED BY:Demi Engman, Director of Planning and Community Development
MEETING DATE:July 15, 2025
REQUESTED ACTION:Council consider a resolution authorizing Zip to temporarily waive
transit fares for students from July 15, 2025 to August 12, 2025.
BACKGROUND
To align with BMT Zip’s mission of increasing ridership, fostering long-term transit
participation, streamlining the rider experience, and advancing equity throughout Beaumont, the
agency is committed to offering affordable transportation options for students and families.
Reliable and frequent transit access is essential in addressing the mobility and affordability
challenges to equitable access to education.
As part of this commitment, BMT Zip proposes a fare waiver for students in grades 6 through
12, during the summer months, specifically from July 15, 2025, through August 12, 2025, with a
valid School Identification Card. The main objective of this student-mobility initiative is to allow
Beaumont’s youth to safely connect with educational summer programs, job opportunities,
wellness programs, and other community-based events. Furthermore, this initiative will allow
students to better remain engaged and supported outside the traditional school year.
In support of this vision, the City Council recently approved the Student Mobility Pass Program,
a foundational step focused on expanding access to higher education. Building upon this
momentum, BMT Zip, in collaboration with the City Administration, plans to build a program
that will be dedicated to creating sustainable pathways to learning and development for our city's
youth.
To provide for the safety of all riders, and that of students, participants will be held to their
respective school Code of Conduct while riding the Zip. Furthermore, parents must be mindful
that transit buses do not provide bus assistants to monitor students while on the bus.
FUNDING SOURCE
The Transit system is funded through a combination of rider fares, monies from the General Fund
as well as grants from the Texas Department of Transportation and the Federal Transit
Administration.
RECOMMENDATION
Approve the resolution.
ATTACHMENTS
WORK
SESSION
Council to review and discuss the Downtown
Proactive Code Enforcement Update
Council to review and discuss Venue Tax
and the Tourism Public Improvement District
(TPID)
Council to review and discuss the Rules of
Conduct for City Officials (Ethics Policy)