R-00-08-10-10D4 - 8/10/2000RESOLUTION NO. R- 00- 08- 10 -1OD4
, WHEREAS, the bylaws of the Round Rock Transportation System
Development Corporation ( "Corporation ") provide that the Corporation
may, with the approval of the City Council, contract with any qualified
entity to perform and discharge designated tasks which will aid or
assist the Corporation in the performance of its duties, and
WHEREAS, the Corporation has approved a contract with McCall,
Parkhurst & Horton, L.L.P. to provide bond counsel services to the
Corporation, and
WHEREAS, the City Council wishes to approve of such action, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the City Council hereby approves the action of the Round Rock
Transportation System Development Corporation in entering into a
contract with McCall, Parkhurst & Horton, L.L.P. for bond counsel
services.
The City Council hereby finds and declares that wri
K,\ RPOOCS \RSSOLVII \R0081006.WP0 /ec
tten notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended, and the Act.
ATTEST:
RESOLVED this 10th day of August, 2000.
E LAND, City Secretary
2
ROB'T A. STLUKA, ., Mayor
City of Round Rock, Texas
MSCALL, PARKHURST & HORTON L.L.P.
717 NORTH HARWOOD 600 CONGRESS AVENUE 700 N. ST. MARI'S STREET
NINIII FLOOR 1250 ONE AMERICAN CENIER 1225 ONE RIVERWALK PLACE
DALLAS, TEXAS 75201.6587 AUSTIN, TEXAS 78701 -3248 SAN ANTONIO, TEXAS 78205 -3583
TELEPHONE: 214754-9200 TELEPHONE: 512478 -3805 TELEPHONE: 2102252800
TEIEODPY 214754.9250 TELECOPY: 512472 -0871 TELEODPY: 210225-2984
Round Rock Transportation System
Development Corporation
c/o City of Round Rock, Texas
221 E. Main Street
Round Rock, Texas 78664
Dear Ladies and Gentlemen.
This engagement letter will outline our proposed services as Bond Counsel to the Round Rock
Transportation System Development Corporation (the "Corporation ") in connection with the issuance
or execution of bonds, notes or other obligations by the Corporation and our understanding of
compensation therefor.
SERVICES
We will perform all usual and necessary legal services as Bond Counsel. Specifically, we
will prepare and direct legal proceedings and perform other necessary legal services with reference
to the authorization, sale, and delivery of the Corporation's bonds, notes or other obligations
referenced above (for convenience hereafter collectively referred to as "bonds "), including the
following:
wF"ONL ENGAGELTR
LAW OFFICES
August 3, 2000
1. consultation with the Corporation, as appropriate, and any advisors in planning for the
bond issue, including consultations concerning federal tax considerations;
2. preparation of all contracts, resolutions, trust indentures, and other instruments
pursuant to which bonds will be authorized, secured, sold and delivered in
consultation with the Corporation, General Counsel to the Corporation, financial
advisors, the underwriters and their counsel and any officials and consultants thereof;
3. attendance at meetings of the Corporation, as appropriate, and with other
representatives thereof to the extent required or requested with reference to the
authorization and issuance of the bonds;
Round Rock Transportation System
Development Corporation
August 3, 2000
Page 2
WMSO"l.» OAGELTR
4. preparation of all documents necessary to seek the approval of the Attorney General
of Texas and the submission of such documents to the Attorney General for approval
and to the Comptroller of Public Accounts for registration of the bonds as required by
law;
5. supervision of the printing and execution of the bonds and the delivery thereof to the
initial purchaser of the bonds;
6. rendering our nationally accepted opinions covering the validity of the bonds under
Texas law and tax status of the interest thereon under federal income tax laws; and
7. preparation of a transcript of all proceedings in connection with the issuance of the
bonds.
The foregoing legal services as Bond Counsel do not include any direct responsibility for
litigation of any kind. However, if during the issuance of the bonds any litigation should develop
regarding the issuance of the bonds or the provisions made for their payment or security, we will
consult, advise and cooperate with General Counsel to the Board concerning any such litigation. Our
fees for such services would be based upon an hourly rate of $250 an hour.
In addition, our services as Bond Counsel do not include any direct responsibility for the
"disclosure obligations" owed to the investing public under the federal securities laws and the various
state securities laws. We will not be responsible for the preparation of any Official Statement and
will not assume any responsibility with respect thereto nor undertake independently to verify any of
the information therein, except that, in our capacity as bond counsel, we will review various
statements in any Official Statement to verify that such statements conform to the provisions of the
legal instruments and documents therein described.
The firm will undertake upon the request of the Corporation such services as may be necessary
to assist the Corporation in satisfying the continuing disclosure requirements of Rule 15c2 -12
promulgated by the Securities and Exchange Commission. Our fees for such services would be based
upon an hourly billing rate of $250 per hour. Should it be necessary for the firm to render a written
opinion with respect to any matters relating to the compliance by the Corporation with the ongoing
disclosure or other compliance requirements of Rule 15c2 -12, such fee for legal services provided
in connection with the delivery of the opinion will be set at an amount agreed upon by us and the
Corporation.
Our services as Bond Counsel do not include any responsibility for investigating the financial
condition and affairs of the Corporation. Our approving legal opinion as Bond Counsel will contain
a paragraph substantially to the effect that we have acted as Bond Counsel for the Corporation for the
Round Rock Transportation System
Development Corporation
August 3, 2000
Page 3
sole purpose of rendering an opinion with respect to the legality and validity of the bonds under the
Constitution and laws of the State of Texas, and with respect to the exemption of the interest on the
bonds from federal income taxes, and for no other reason or purpose. The paragraph will also
disclose that we have not been requested to investigate or verify, and have not investigated or verified,
any records, data, or other material relating to the financial condition or capabilities of the District,
and have not assumed any responsibility with respect thereto.
COMPENSATION
We propose a bond counsel fee of $5,000 for the first million dollars in bonds and $1 per
$1,000 bond for each million thereafter with a minimum fee of $10,000.
Our Bond Counsel fee is contingent upon issuance of bonds. We also expect to be reimbursed
for all normal, actual out -of- pocket expenses incurred (such as travel, communications, reproduction
and delivery service) in connection with the services performed. Since the work for the Corporation
will be performed by attorneys in the Austin office, it is not anticipated that travel expenses will be
incurred; however, in the event travel is necessary it will not be undertaken without prior approval
by the Board. Copying charges are normally twenty cents a page. Large copying orders are
sometimes subcontracted out, in which case the actual charges are billed.
TERMINATION
This engagement may be terminated by either party upon thirty (30) days written notice;
provided, however, if the Corporation exercises the early termination, the Corporation shall pay Bond
Counsel all expenses accrued to the date of such termination. There shall not be individual liability
on any member of the Board, or other official of the Corporation, for the payment of any amounts due
hereunder.
If the Corporation finds this proposal to be satisfactory, we ask that a copy of this letter be
signed and retumed to us for our files. We look forward to working with the Corporation.
Respectfully submitted,
McCall, Parkhurst & Horton L.L.P.
By: C. D. Polumbo
Round Rock Transportation System
Development Corporation
August 3, 2000
Page 4
The foregoing agreement is hereby accepted on behalf of the Round Rock Transportation
System Development Corporation.
Date:
By:
Title:
DATE: August 4, 2000
SUBJECT: City Council Meeting — August 10, 2000
ITEM:
10.D.4. Consider a resolution approving the action of the Transportation
System Development Corporation concerning the agreement with
McCall, Parkhurst & Horton, L.L.P. for Bond Counsel services.
Staff Resource Person: David Kautz, Finance Director.