HomeMy WebLinkAboutR-2005-12 (see sticky note/resolution was on 7/25/05 agenda) authorizing sale of $1.8 million in certificates of obligation
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RESOLUTION NO. 2005-12
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT
NOT TO EXCEED $1.8 MILLION FOR THE ACQUISITION,
CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS;
AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL
STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING
CERTAIN OTHER MATTERS RELATING THERETO
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF LA PORTE
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WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the
"City"), is authorized to issue certificates of obligation to pay contractual obligations to be
incurred for the construction of public works, for the purchase of materials, supplies, equipment,
machinery, buildings, land and rights-of-way for authorized needs and purposes, and for the
payment of contractual obligations for professional services pursuant to Subchapter C of Chapter
271, Texas Local Government Code, as amended;
WHEREAS, the City Council has determined that it is in the best interests of the City and
otherwise desirable to issue certificates of obligation in a principal amount not to exceed $1.8
million styled "City of La Porte, Texas, Certificates of Obligation, Series 2005" (the
"Certificates") for the design, engineering, acquisition and construction of certain public works
and the purchase of certain equipment for authorized needs and purposes and for the payment of
contractual obligations for professional services;
WHEREAS, in connection with the Certificates, the City Council intends to publish
notice of its intent to issue the Certificates (the "Notice") in a newspaper of general circulation in
the City;
WHEREAS, for purposes of providing for the sale of the Certificates, the City Council
intends to authorize the preparation of a Preliminary Official Statement (the "Preliminary
Official Statement") to be used in the public offering of the Certificates; and
WHEREAS, the City Council has been presented with and has examined the proposed
form of Notice and finds that the form and substance thereof are satisfactory.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LA PORTE, TEXAS:
Section 1. Preamble. The facts and recitations contained in the preamble of this
Resolution are hereby found and declared to be true and correct.
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Section 2. Authorization of Notice. The City Secretary is hereby authorized and
directed to deliver the Notice set forth in Exhibit A hereto and to publish such Notice on behalf
of the City once a week for two (2) consecutive weeks in a newspaper which is of general
circulation in the City, the date of the first publication to be at least fifteen (15) days before the
date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the
Certificates.
Section 3. Engagement of Professionals. This City Council hereby approves the
engagement of Andrews Kurth LLP, as bond counsel ("Bond Counsel") in connection with the
issuance of bonds and other debt obligations of the City, including the Certificates.
Section 4. Authorization of a Preliminary Official Statement. This City Council
hereby approves the preparation and distribution by the City's financial advisor to prospective
purchasers of the Certificates of the Preliminary Official Statement, as the same may be
completed, modified, or supplemented with the approval of the Mayor or other authorized
officers and agents of the City.
Section 5. Authorization of Other Matters Relating Thereto. The Mayor, City
Secretary and other officers and agents of the City are hereby authorized and directed to do any
and all things necessary or desirable to carry out the provisions of this Resolution.
Section 6.
passage.
Effective Date. This Resolution shall take effect immediately upon its
Section 7. Public Meeting, It is officially found, determined and declared that the
meeting at which this Resolution is adopted was open to the public and public notice of the time,
place and subject matter of the public business to be considered at such meeting, including this
Resolution, was given all as required by the Texas Govemment Code, Chapter 551, as amended.
PASSED AND APPROVED this the 25th day of June 2005.
CITY OF LA PORTE, TEXAS
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Alton Porter, Mayor
ATTEST
APPROVED:
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City ecretary
flJ. 711.1JJ/1i;k
Mar O~ite
Andrews Kurth LLP, Bond Counsel
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Section 2. Authorization of Notice. The City Secretary is hereby authorized and
directed to deliver the Notice set forth in Exhibit A hereto and to publish such Notice on behalf
of the City once a week for two (2) consecutive weeks in a newspaper which is of general
circulation in the City, the date of the first publication to be at least fifleen (15) days before the
date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the
Certificates.
Section 3. .Engagement of Professionals, This City Council hereby approves the
engagement of Andrews Kurth LLP, as bond counsel ("Bond Counsel") in connection with the
issuance of bonds and other debt obligations of the City, including the Certificates.
Section 4. Authorization of a Preliminary Official Statement. This City Council
hereby approves the preparation and distribution by the City's financial advisor to prospective
purchasers of the Certificates of the Preliminary Official Statement, as the same may be
completed, modified, or supplemented with the approval of the Mayor or other authorized
officers and agents of the City.
Section 5. Authorization of Other Matters Relating Thereto. The Mayor, City
Secretary and other officers and agents of the City are hereby authorized and directed to do any
and all things necessary or desirable to carry out the provisions of this Resolution.
Section 6.
passage.
Effective Date. This Resolution shall take effect immediately upon its
Section 7. Public Meeting, It is officially found, determined and declared that the
meeting at which this Resolution is adopted was open to the public and public notice of the time,
place and subject matter of the public business to be considered at such meeting, including this
Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended.
PASSED AND APPROVED this the 25th day of June 2005.
CITY OF LA PORTE, TEXAS
~~'.V~
Alton Porter, Mayor
ATTEST
APPROVED:
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City S cretary
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ite
urth LLP, Bond Counsel
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Section 2. Authorization of Notice. The City Secretary is hereby authorized and
directed to deliver the Notice set forth in Exhibit A hereto and to publish such Notice on behalf
of the City once a week for two (2) consecutive weeks in a newspaper which is of general
circulation in the City, the date of the first publication to be at least fifteen (15) days before the
date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the
Certificates.
Section 3. Engagement of Professionals. This City Council hereby approves the
engagement of Andrews Kurth LLP, as bond counsel ("Bond Counsel") in connection with the
issuance of bonds and other debt obligations of the City, including the Certificates.
Section 4. Authorization of a Preliminary Official Statement. This City Council
hereby approves the preparation and distribution by the City's financial advisor to prospective
purchasers of the Certificates of the Preliminary Official Statement, as the same may be
completed, modified, or supplemented with the approval of the Mayor or other authorized
officers and agents of the City.
Section 5. Authorization of Other Matters Relating Thereto. The Mayor, City
Secretary and other officers and agents of the City are hereby authorized and directed to do any
and all things necessary or desirable to carry out the provisions of this Resolution,
Section 6,
passage.
Effective Date. This Resolution shall take effect immediately upon its
Section 7, Public Meeting. It'is officially found, determined and declared that the
meeting at which this Resolution is adopted was open to the public and public notice of the time,
place and subject matter of the public business to be considered at such meeting, including this
Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended.
PASSED AND APPROVED this the 25th day of June 2005.
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Alton Porter, Mayor
ATTEST
APPROVED:
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LLP, Bond Counsel
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EXHIBIT A
NOTICE OF INTENTION TO ISSUE CERTIFICATES
NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the
"City") will meet at its regular meeting place at City Council Chambers, City Hall, 604 West
Fairmont Parkway, La Porte, Texas at 6:00 p.m. on August 22,2005, which is the time and place
tentatively set for the passage of an ordinance and such other action as may be deemed necessary
to authorize the issuance of the City's certificates of obligation, payable from ad valorem
taxation and a limited (in an amount not to exceed $1,000) subordinate pledge of certain
revenues of the water and sewer system of the City, in the maximum aggregate principal amount
of $1.8 million, bearing interest at any rate or rates, not to exceed the maximum interest rate now
or hereafter authorized by law, as shall be determined within the discretion of the City Council at
the time of issuance and maturing over a period of years not to exceed forty (40) years from the
date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of
the contractual obligations to be incurred for the constmction of public works, the purchase of
materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized
needs and purposes, to wit (i) an aerial fire truck, (ii) improvements to the Bayshore water plant,
(iii) various additional water and sewer improvements within the City, and (iv) professional
services rendered in connection with the above listed projects.
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: Julv 25.2005
Appropriation
Requested By: Cvnthia Alexander. Asst. Citv Manae:er
Source of Funds:
N/A
Department:
FINANCE
Account Number: N/A
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Amount Requested:
N/A
Exhibits:
Financing Schedule
Budgeted Item:
Exhibits:
SUMMARY & RECOMMENDATION
This is a partial issuance of the $16.3 million in projects approved by voters in the February 2, 2002 election and
other various projects. At this time, we are ready to issue voter-approved General Obligation Bonds for the
following:
Police Deparbnent Headquarters
Total Issuance 2005 General Obligation Bonds
7.700.000
7,700,000
While preliminary work was begun on these projects some time ago, it was not desirable for us to issue debt until
this time, City Council has previously approved resolutions that allow the City to reimburse itself from these bond
proceeds for expenditures that were made prior to the issuance of the debt. This is a position that we have taken on
several other projects in the past as recommended by bond counsel and required by federal law,
RBC Dain Rauscher, the City's Financial Advisors, is preparing and will make available to us a Preliminary Official
Statement which will be reviewed and updated by staff that must also be approved by Council.
Action Required bv Council: Authorize staff to proceed with the sale of $7,7 million in General Obligation
Bonds in conjunction with Certificates of Obligation Bonds; approve and authorize the Preliminary Official
Statement (does not require Notice of Intent).
Approved for City Council Agenda
1-;dJ -l)!J
Date
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RESOLUTION NO. 2005-12
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $1.8 MILLION FOR THE ACQUISITION,
CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS PROJECTS AND AN AERIAL
TRUCK; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO
SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO
STATE OF TEXAS
COUNTY OF HARRISS
CITY OF LA PORTE
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WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"), is authorized to issue
certificates of obligation to pay contractual obligations to be incurred for the construction of public works, for the
purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and
purposes, and for the payment of contractual obligations for professional services pursuant to Subchapter C of
Chapter 271, Texas Local Government Code, as amended;
WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to
issue certificates of obligation in a principal amount not to exceed $1,8 million styled "City of La Porte, Texas,
Certificates of Obligation, Series 2005" (the "Certificates") for the design, engineering, acquisition and construction
of certain public works and the purchase of certain equipment for authorized needs and purposes and for the
payment of contractual obligations for professional services;
WHEREAS, in connection with the Certificates, the City Council intends to publish notice of its intent to issue the
Certificates (the "Notice") in a newspaper of general circulation in the City;
WHEREAS, for purposes of providing for the sale of the Certificates, the City Council intends to authorize the
preparation of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in the public
offering of the Certificates; and
WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that
the form and substance thereof are satisfactory.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section I. Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found
and declared to be true and correct.
Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice
set forth in Exhibit A hereto and to publish such Notice on behalf of the City once a week for two (2) consecutive
weeks in a newspaper which is of general circulation in the City, the date of the first publication to be at least fifteen
(15) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the
Certificates.
Section 3. Engagement of Professionals, This City Council hereby approves the engagement of Andrews
Kurth LLP, as bond counsel ("Bond Counsel") in connection with the issuance of bonds and other debt obligations
of the City, including the Certificates.
Section 4. Authorization of a Preliminary Official Statement. This City Council hereby approves the
preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of the
Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the
Mayor or other authorized officers and agents of the City.
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Section 5. Authorization of Other Matters Relatine: Thereto, The Mayor, City Secretary and other officers
and agents of the City are hereby authorized and directed to do any and all things necessary or desirable \0 carry oul
the provisions of this Resolution,
Section 6.
Effective Date. This Resolution shall take effect immediately upon its passage.
Section 7, Public Meeting, It is officially found, determined and declared that the meeting at which this
Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public
business to be considered at such meeting, including this Resolution, was given all as required by the Texas
Government Code, Chapter 551, as amended.
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ANDREWS
ATTORNEYS IJ.?I" U RT H
~ LLP
600 Travis, Suite 4200
Houston, Texas 77002
713.220,4200 Phone
713.220.4285 Fax
andrewskurth.com
Margo White
713.220,3957 Direct
July 26, 2005
VIA FEDERAL EXPRESS
Ms. Cynthia Alexander
Assistant City Manager
City of La Porte
604 West Fairmont Parkway
La Porte, Texas 77571
Re: Resolution Authorizing Publication of Notice of Intention to Issue CerNficates of
Obligation
Dear Cynthia:
Enclosed is a copy of the above captioned Resolution. Please have the City Secretary
complete the front page as appropriate, execute the signature pages where indicated and return
them to me at your earliest convenience.
Also enclosed are 3 originals of my signature page to the Resolution for your files.
Finally, enclosed are 2 copies of our engagement letter. Please have them both signed by t--
the Mayor and return one to me along with the executed Resolution. /'IIa)/'fIt-
Please call me at 713.220.3957 if you have any questions on the enclosed. '('!,j
Sincerely,
IJ:J~ 711.-zuhdL
Enclosure
HOU:2479599.1
Austin Dallas
Houston
London
Los Angeles
New York
The Woodlands
Washington, DC
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AN DREWS
ATTORNEYS lLf' U faiT lU
~ If\. In LLP
600 Travis, Suite 4200
Houston, Texas 77002
713.220.4200 Phone
713,220,4285 Fax
andrewskurth.com
June 22, 2005
Mayor and City Council Members
City of La Porte
604 West Fairmont Parkway
La Porte, Texas 77571
Re: Issuer's Counsel Services
Dear Mayor and City Council Members:
We are pleased to submit to you a proposed agreement for Andrews Kurth LLP
("Andrews Kurth") to serve as Bond Counsel with respect to bonds and other debt obligations
that the City of La Porte (the "City") intends to issue. (Such bonds, notes and obligations are
collectively referred to in this letter as the "Bonds".) When approved by you, this letter will
become effective and will evidence an agreement between the City and Andrews Kurth LLP,
Houston, Texas.
As Bond Counsel, Andrews Kurth would prepare all required legal proceedings and
would perform certain other necessary legal work in connection with the City's authorization,
issuance and sale of each series of the Bonds. Our services as Bond Counsel would include the
following Basic Services, which we would carry out directly or in concert with officials and staff
of the City:
(1) Preparation of necessary ordinances, resolutions, notices, Department of Justice
submissions and other legal documents necessary to call and conduct an election to authorize
issuance of the Bonds, if necessary;
(2) Review and preparation of the Bond Ordinance or Resolution (the "Ordinance")
and other debt-related information;
(3) Assistance in the preparation of specified sections of the Preliminary Official
Statement and the Official Statement for each series of the Bonds, but only to the extent that such
portions (a) describe such series, the security therefor and their federal income tax status, (b)
summarize the Ordinance authorizing their issuance and (c) outline our opinion, with the
understanding that Andrews Kurth will not be expected to independently verify other financial
data contained in the Official Statement;
(4) Assistance in explaining legal matters to the rating agencies;
(5) Preparation of the No Arbitrage Certificate;
HOU:2467427,\
Austin Dallas
Houston
London
Los Angeles
New York
The Woodlands
Washington, DC
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Mayor and City Council Members
City of La Porte
June 22, 2005
Page 2
(6) Review of such other documents or preparation of such certificates as are
customary and necessary;
(7) Assistance to the City in obtaining Attorney General approval of debt issues;
(8) Rendering a legal opinion generally to the effect that the Bonds have been duly
authorized in accordance with the Constitution and laws of the State of Texas, that the Bonds
constitute valid and legally binding obligations of the City secured by a lien on the pledge of the
taxes or revenues pledged to their payment in the Ordinance authorizing their issuance (subject
to bankruptcy, insolvency, reorganization, moratorium and other similar laws in effect from time
to time relating to or affecting the enforcement of rights of creditors of political subdivisions)
and that, subject to certain restrictions, interest on the Bonds is excludable from the gross income
of the owners thereof for federal income tax purposes under then existing law;
(9) Assistance to City staff and the City's financial advisor in evaluating other
finance-related legal matters or financing innovations and opportunities as may arise from time
to time;
(10) Provision of similar services related to the issuance of each series of the Bonds as
requested;
(11) Attendance at meetings, to the extent required or requested by the City or the
City's financial advisor, to discuss the sizing, timing or sale of each series of the Bonds;
(12) Supervision of the printing of each series of the Bonds and the delivery thereof to
the purchasers, including, if requested, solicitation of bids from bond printers under the direction
of the City to obtain the lowest possible printing costs for the City;
(13) Prior to and in connection with the closing of each series of the Bonds, giving
advice to the City to enable appropriate officials to comply with the arbitrage requirements ofthe
Internal Revenue Code of 1986 as they affect the Bonds, including yield restrictions and rebate
requirements;
(14) Attendance at bond sale, signing, closing and all other meetings and conferences
as deemed necessary by the City Councilor City Manager;
(15) Preparation of Federal Income Tax Form 8038-G;
(16) At the closing of each series of the Bonds, delivery of an opinion regarding the
applicability of federal and Texas state securities laws to such series, the eligibility of the Bonds
for investment by various fiduciaries and other regulated investors in Texas and the validity and
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Mayor and City Council Members
City of La Porte
June 22, 2005
Page 3
enforceability of security agreements, indentures and other documents related to the Bonds and
the security therefor;
(17) Attendance at rating agency presentations, investor meetings or other
presentations relating to the marketing of the Bonds and consultation with City officials, staff
and advisors and the City's financial advisor to develop such presentations; and
(18) Any other service necessary to the planning, authorization, issuance, sale and
delivery of the Bond issues, as may be appropriate.
In addition to the foregoing Basic Services, as Bond Counsel, Andrews Kurth is prepared
to undertake the following Additional Services, as directed by the City:
(1) Disclosure work or similar services (other than the preparation of certain sections
of the offering documents for the Bonds as described in paragraph (3) under Basic Services
above) to assist the City in the preparation of such offering documents, on such basis and to such
extent as shall be directe!i by the City;
(2) Preparation of the "Blue Sky" surveys or securities registration services;
(3) In the case of a series of Bonds, or a portion thereof, that is issued to refund prior
bonds of the City, providing advice regarding federal income tax and other issues unique to
refunding transactions;
(4) In the case ofa series of Bonds bearing interest at a variable rate, assistance in the
negotiation and drafting of a standby bond purchase agreement or liquidity facility with an
appropriate liquidity provider and review and negotiation of any other documents or issues
relating to the issuance of variable rate bonds;
(5) Any other special services not ordinarily required in connection with the issuance
of obligations of the nature of the Bonds, including services rendered in connection with special
federal income tax issues, unusual issues arising in connection with the City's financial reports or
audits, any documentation or related services for credit or liquidity facilities or enhancements or
other special structuring techniques or devices to be employed in connection with the issuance of
any series of the Bonds; and
(6) After the closing of any series of the Bonds and upon specific request of the City,
providing assistance to the City concerning questions and issues that may arise prior to the
maturity of the Bonds.
For the Basic Services perfonned for each series of "new money" Bonds, Andrews Kurth
would be paid a fee that would be calculated on the basis of 85~ per each $1,000 in proceeds of
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Mayor and City Council Members
City of La Porte
June 22, 2005
Page 4
Bonds (principal amount plus premiwn, if any) then being issued, which fee is exclusive of
reasonable and actual out-of-pocket expenses as described below. A $0.15 surcharge for each
$1,000 in proceeds of Bonds would be charged for each series of "refunding" Bonds. The
minimum fee for Basic Services for each series of "new money" or "refunding" Bonds shall be
$9,000. The fee for each series would be paid from the proceeds of the sale of such series or
from other funds, as the City deems appropriate. The fee for any Additional Services would be
determined on an hourly rate basis, applying Andrews Kurth's current standard hourly rates. The
total charges for Additional Services, if any, prior to and in connection with the closing of any
series of the Bonds would not exceed the fee charged for Basic Services for such series.
Payment of all fees would be made after the issuance and delivery of the series of the Bonds in
connection with which such services are performed and within 30 days after receipt by the City
of an approved invoice therefor,
Andrews Kurth would be reimbursed for its reasonable and actual out-of-pocket
expenses, such as the cost of reproduction of documents, out of town travel, long-distance
telephone, telegraph, telex and similar expenses, deliveries, filing fees and all items paid for by
Andrews Kurth on behalf of the City, incurred in connection with the performance of all services
hereunder. All of Andrews Kurth's expenses will be reasonable and subject to approval of the
City, with a cap of $2,000 per bond issue (exclusive of Attorney General fees, for which the City
would be responsible).
Andrews Kurth represents many other governmental entities, companies and individuals.
It is possible that during the time that we are representing you, some of our present or future
clients will have disputes or transactions with you. In particular, as we have advised you, we
represent the Port of Houston Authority of Harris County, Texas as Bond Counsel and in other
capacities, including as litigation counsel. You agree that we may continue to represent or may
undertake in the future to represent existing or new clients in any matter that is not substantially
related to our work for you even if the interests of such clients in those other matters are directly
adverse. We agree, however, that your prospective consent to conflicting representation
contained in the preceding sentence shall not apply in any instance where, as a result of our
representation of you, we have obtained proprietary or other confidential information of a
nonpublic nature, that, if known to such other client, could be used in any other such other matter
by such client to your material disadvantage.
Nothing herein shall be construed as creating any personal liability on the part of any
officer of the City, and subject to the foregoing paragraph this agreement may be terminated by
the City by giving 30 days' written notice to Andrews Kurth.
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Mayor and City Council Members
City of La Porte
June 22, 2005
Page 5
The term of this engagement shall be for a period of three years, commencing as of June
27, 2005, and shall continue for two additional successive three year periods (for a maximum
possible engagement period of nine years), unless either party provides the other party with
written notification at least 30 days prior to the end of the then current term of this engagement
of that party's intention to terminate this engagement.
If this proposed agreement for the services of Andrews Kurth as Bond Counsel is
satisfactory, please evidence your acceptance and approval by executing three copies in the space
provided below.
Very truly yours,
-2~~
APPROVED:
CITY OF LA PORTE, TEXAS
~,~
Mayor, City of La Porte, Texas
By:
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CERTIFICATE FOR RESOLUTION
THE STATE OF TEXAS
COUNT Y OF HARRIS
CITY OF LA PORTE
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We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as
follows:
1. The City Council of the City convened in a regular meeting on July 25, 2005, at the
regular meeting place thereof, within the City, and the roll was called of the duly constituted
officers and members of the City Council, to wit:
Alton E. Porter
Peter Griffiths
Barry Beasley
Mike Mosteit
Chuck Engelken
Howard Ebow
Tommy Moser
Louis Rigby
Mike Clausen
Mayor
Council Member
Council Member
Council Member
Council Member
Council Member
Council Member
Council Member
Council Member
and all of such persons were present except Stl rr~.e.1'1.51 e ~ ' thus constituting a
quorum. Whereupon, among other business, the folIo ing was tr sacted at saId meetmg: a
written
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT
NOT TO EXCEED $1.8 MILLION FOR THE ACQUISITION,
CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS;
AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL
STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING
CERTAIN OTHER MA TIERS RELATING THERETO
(the "Resolution") was duly introduced for the consideration of the City Council. It was then
duly moved and seconded that the Resolution be adopted; and, after due discussion, such motion,
carrying with it the adoption of the Resolution, prevailed and carried by the following vote:
AYES: ~
NAYS: ~
ABSTENTIONS: .Il
2. That a true, full and correct copy of the Resolution adopted at the meeting described
in the above and foregoing paragraph is attached to and follows this certificate; that the
Resolution has been <;iuly recorded in the City Council's minutes of such meeting; that the above
and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of
such meeting pertaining to the adoption of the Resolution; that the persons named in the above
and foregoing paragraph are the duly chosen, qualified and acting officers and members of the
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code.
SIGNED AND SEALED this July ~ ,2005.
Lfnpil:/1bv ;4uid
City Secretary
City of La Porte, Texas
(SEAL)
S-1
HOU :24 79280.1
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code. '
SIGNED AND SEALED this July (AS , 2005,
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City cretary
City of La Porte, Texas
(SEAL) ;-
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HOU:2479280.1
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code.
SIGNED AND SEALED this July ",5',2005.
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City Secretary
City of La Porte, Texas
(SEAL)
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code,
SIGNED AND SEALED this July ~ ), 2005.
lJauJ~~
City ecretary
City of La Porte, Texas
(SEAL) _
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HOU:2479280,I
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code.
SIGNED AND SEALED this July ~t)' , 2005,
"..
1JL~plttm1-
City of La Porte, Texas
(SEAL)
S-1
HOU:2479280.1
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City Council as indicated therein; that each of the officers and members of the City Council was
duly and sufficiently notified officially and personally, in advance, of the date, hour, place and
subject of the aforesaid meeting, and that the Resolution would be introduced and considered for
adoption at such meeting, and each of such officers and members consented, in advance, to the
holding of such meeting for such purpose; that such meeting was open to the public as required
by law; and that public notice of the date, hour, place and subject of such meeting was given as
required by the Open Meetings Law, Chapter 551, Texas Government Code.
SIGNED AND SEALED this July dt5 , 2005.
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City of La Porte, Texas
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DRAFT 07/13/05
RESOLUTION NO, ~OOS', L
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF
OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $1.8 MILLION FOR THE ACQUISITION,
CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION
OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND
AUTHORIZING CERTAIN OTHER MA TIERS RELATING THERETO
STATE OF TEXAS
COUNTY OF HARRIS
CITY OF LA PORTE
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WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"), is authorized to issue
certificates of obligation to pay contractual obligations to be incurred for the construction of public works, lar the
purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and
purposes, and for the payment of contractual obligations for professional services pursuant to Subchapter C of
Chapter 271, Texas Local Government Code, as amended;
WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to
issue certificates of obligation in a principal amount not to exceed $1.8 million styled "City of La Porte, Texas,
Certificates of Obligation, Series 2005" (the "Certificates") for the design, engineering, acquisition and construction
of certain public works and the purchase of certain equipment for authorized needs and purposes and for the
payment of contractual obligations for professional services;
WHEREAS, in connection with the Certificates, the City Council intends to publish notice of its intent to issue the
Certificates (the "Notice") in a newspaper of general circulation in the City;
WHEREAS, for purposes of providing for the sale of the Certificates, the City Council intends to authorize the
preparation of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in the public
offering of the Certificates; and
WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that
the form and substance thereof are satisfactory.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section 1. Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found
and declared to be true and correct.
Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice
set forth in Exhibit A hereto and to publish such Notice on behalf of the City once a week for two (2) consecutive
weeks in a newspaper which is of general circulation in the City, the date of the first publication to be at least fifteen
(I 5) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the
Certificates.
Section 3, Engagement of Professionals. This City Council hereby approves the engagement of Andrews
Kurth LLP, as bond counsel ("Bond Counsel") in connection with the issuance of bonds and other debt obligations
of the City, including the Certificates.
Section 4. Authorization of a Preliminary Official Statement. This City Council hereby approves the
preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of the
Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the
Mayor or other authorized officers and agents of the City,
.
.
Section 5. Authorization of Other Matters Relating Thereto. The Mayor, City Secretary and other officers
and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out
the provisions of this Resolution.
Section 6.
Effective Date. This Resolution shall take effect immediately upon its passage.
Section 7. Public Meeting. It is officially found, determined and declared that the meeting at which this
Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public
business to be considered at such meeting, including this Resolution, was given all as required by the Texas
Government Code, Chapter 551, as amended,
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City of La Porte, Texas
$7,700,000*
General Obligation Bonds,
Series 2005
$975,000*
Combination Tax and Revenue Certificates of
Obligation, Series 2005
(I)I?AFT 7/18/0S)
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
I 2 3 4 2 2 3 4 5 6 3
5 6 7 8 9 10 II 3 4 5 6 7 8 9 7 8 9 10 II 12 13 4 5 6 7 8 9 10
12 13 14 15 16 17 18 10 II 12 13 14 15 16 14 15 16 17 18 19 20 II 12 13 14 15 16 17
19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24
26 27 28 29 30 24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30
31
Participants
RBC
City
UW
BC
UWC
RBC Dain Rauscher
City of La Porte, Texas
Underwriters
Bond Counsel
Underwriter's Counsel
Schedule of Events
Day/Date
Action
Participants
Wednesday, May 18
Kick-off meeting to discuss financing,
review overall debt plan, current debt
situation, and type of sale for bonds
City; RBC
Monday, June 28
City Council meeting to approve Bond Counsel
City
Tuesday, June 27
First draft ofPrelirninary Official Statement
distributed
RBC
Monday, July 11
Comments due on first draft ofPOS
City; BC
RBC
Wednesday, July 20
Second draft ofP.O,S, distributed
Monday, July 25
City COllnciJmccting to aUlhorize lransaction,
Underwriters, and publication of Notice of
Intent to issue Certificates of Obligation (COs)
ALL
Tuesday, July 26
Thursday, July 28
Comments Due on Second Draft ofPOS
City; BC
RBC
Third draft of POS distributed
Draft POS. City C^PR. and Bond f)()CS
sent to Rating Agencies & Insurance providers
RBC
Friday, July 29
Publish first Notice of Intention to issue CO's
in local paper and/or Houston Chronicle
BC; City
~RBC
~ Oain Rauscher
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VVednesday,J\ug.3
Draft POS, City CA.FR, and Bond Docs
Sent to Rating J\gencies & Insurance Cos,
RBC
Friday, J\ugust 5
Publish second Notice of Intention to issue
CO's in the Pasadena and Houston papers
Comments received on third draft ofPOS
BC; City
City, BC, UW
City; UW; BC; UWC
RBC
RBC
RBC
Tuesday, J\ugust 9
Thursday, J\ugust 11
Tuesday, J\ugust 16
Comments on third draft ofPOS due; Finalize P.O.s.
Post/Mail (l,O.8, fol' pricing
Ratings received
Wednesday, J\ugust 17
Insurance bids received
Thursday, J\ugust 18
Or Monday, J\ugust 22
Monday, J\ugust 22
Price Bonds
RBC; UW; City
.ALL
City Council meeting to approve Sale of Bonds
and adopt the Bond Order
Tuesday, J\ugust 23
First Draft of fmal Official Statement distributed
RBC
Thursday, J\ugust 25
Comments due on Final Official Statement
City, BC, OW
RBC
Monday, J\ugust 29
Final Official Statement Distributed
Tuesday, September 20
.Delivery of the Bonds
.ALL
· Preliminary - subject to change.
~RBC
~ Dr1in r~AlIc;('ht:.r
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: Julv 25. 2005
Appropriation
Requested By: Cynthia Alexander. Asst. City Manal!er
Source of Funds:
N/A
Department:
FINANCE
Account Number: N/A
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Resolution
Amount Requested:
N/A
Exhibits:
Financing Schedule
Budgeted Item:
Exhibits:
SUMMARY & RECOMMENDATION
At this time, we would like to issue Certificates of Obligation Bonds for the following projects:
Purchase of an Aerial Fire truck
Bayshore Water Sewer R~placement
Various Other Water/Sewer Capital Projects
Total Issuance 2005 Certificates of Obligation
750,000
350,000
700.000
1,800,000
While preliminary work was begun on these projects some time ago, it was not desirable for us to issue debt until
this time, City Council has previously approved resolutions that allow the City to reimburse itself from these bond
proceeds for expenditures that were made prior to the issuance of the debt. This is a position that we have taken on
several other projects in the past as recommended by bond counsel and required by federal law.
In order to issue bonds, a city is required to publish a Notice of Intent (NOl) to Sale. We would like to publish the
initial Notice of Intent for Certificates of Obligation in the amount of $1,800,000 on Saturday, July 30; and the
second notice on Saturday, August 6, 2005,
RBC Oain Rauscher, the City's Financial Advisors, is preparing and will make available to us a Preliminary Official
Statement which will be reviewed and updated by staff that must also be approved by Council.
Action Required bv Council: Authorize the sale of $1.8 million in Certificates of Obligation; approve and
authorize the first and second publication of Notice of Intent to Issue, and the Preliminary Official Statement.
LL-
'7 -.2-0 -- tJ5
Date
Debra