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HomeMy WebLinkAboutResolution 4217-07-2013 A Resolution NO. 4217-07-2013 AUTHORIZING EMPLOYMENT OF THE FIRMS OF MCCALL, PARKHURST & HORTON L.L.P. AND KELLY HART & HALLMAN LLP TO SERVE AS BOND CO-COUNSEL AND REPRESENT THE CITY IN MATTERS RELATED TO THE ISSUANCE OF BONDS AND OTHER DEBT INSTRUMENTS WHEREAS, the issuance of municipal bonds and other debt instruments requires highly specialized knowledge of com�lex legal issues related to govermnent debt obligations and associated financial matters, including, but not limited to, federal tax laws and regulations, the Texas constitution, and federal and state statutory and regulatory law; and WHEREAS, the firms of McCall, Parkhurst & Horton LL.P. and Kelly Hart & Hallman LLP have the requisite knowledge, expertise, and experience to effectively represent the City in connection with the issuance of bonds and other municipal debt instruments and have satisfactorily performed such services for the City in connection with multiple debt issuances for a number of years.; and WHEREAS, given the firms' expertise, familiarity with City operations, and successful past performance, the City Manager's Office recommends that the firms continue as bond co-counsel. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT: I. In accordance with Chapter V1, Section 3 of the Charter of the City of Fort Worth, the City Attorney is authorized to employ the firms of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman LLP to represent the City as bond co-counsel in matters related to the issuance of bonds and other debt instruments and to enter into any agreements related thereto consistent with the terms of this Resolution. 2. Payment of fees and reimbursement for expenses to the firms of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman LLP in connection with the issuance of bonds or other municipal debt instruments shall be paid from the proceeds of the debt issue and shall be included as costs of issuance in ordinances authorizing debt issuance. No fees or expenses for debt issuance will be incurred or paid if debt does not issue. ADOPTED this 91h on day of July, 2013. A01 00 00cloo 0 M 0 C ATTEST: 0 0. 0 B y: 0 000000 o0l 4j, Mary J. Kayser, , ity Secretary Four Woxm .............. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/9/2013 - Resolution N4. 4217-07-201 DATE: Tuesday, July 09, 2013 REFERENCE NO.: **C-26308 LOG NAME: 12BOND SUBJECT: Adopt Resolution Authorizing Employment of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman LLP, to Represent the City in Matters Related to the Issuance of Bonds and Other Debt Instruments (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached resolution authorizing employment of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman LLP, to represent the City in matters related to the issuance of municipal bonds and other debt instruments. DISCUSSION: McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman LLP, have served the City as bond co- counsel since 1991 (M&C C-12784, April 2, 1991, M&C C-15245, January 23, 1996, M&C C-16321, September 23, 1997 and M&C C-19295, October 15, 2002). Issuance of City debt instruments requires highly specialized legal services, including providing opinions that bonds and other debt are being issued in accordance with the Constitution and laws of the State of Texas, that the bonds constitute valid and legally binding obligations of the City, and that the interest on the bonds is exempt from federal income taxes under existing statutes, regulations, rulings and court decisions. The two firms have performed satisfactorily and cooperatively throughout the term of their retention by the City. Given the two firms' subject matter expertise, familiarity with City operations, and successful past performance, the City Manager's Office recommends that the City Attorney continue to engage the two firms to serve as co-counsel for issues related to bonds and other debt instruments. The proposed Agreement would have a three-year initial term with two, one-year renewal options. Fees in connection with bond issuance are based on a percentage of the dollar amount of debt being issued and would not be incurred unless bonds are actually sold. Payment for these services would come from the bond proceeds and would be approved on a case-by-case basis as part of the approval for each debt issuance. In an effort to engage minority law firms in the debt-issuance process, the proposed Agreement includes a requirement for the two firms to make on-going, good faith efforts to identify smaller, discrete issues that are suitable for subcontracting and to select and engage qualified minority bond counsel to handle these issues. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that funds required to pay legal fees related to debt Logname: 12BOND Pagel of 2 issuances will be available from the proceeds of bond sales and/or appropriate debt service funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by_ ALL ACMs (6222) Originating Department Head: Sarah Fullenwider (7623) Additional Information Contact: Sarah Fullenwider (7623) Logname: 12BOND Page 2 of 2