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2012-051 RES APPROVING PROPOSAL FOR PROFESSIONAL SERVICES WITH MCCALL, PARKHURST & HORTON LLP FOR BOND COUNSEL SERVICES ASSOCIATED WITH CITY'S APPLICATION TO TX WATER DEVELOPMENT BOARD FOR DRINKING WATER STATE REVOLVING FUND LOANRESOLUTION NO. 2012-051 A RESOLUTIOIV OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; APPROVING A PROPOSAL FOR PROFESSIONAL SERVICES WITH MCCALL, PARKHURST & HORTON, L.L.P., FOR BOND COUNSEL SERVICES ASSOCIATED WITH CITY'S APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD FOR A DRINKING WATER STATE REVOLVING FUND LOAN. MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARI111G AN EFFECTIVE DATE. WHEREAS, the City of Paris is preparing an application to the Texas Water Development Board for a Drinking Water State Revolving Fund Loan in the amount of $3,400,000.00 to fund 15 City water line replacement projects designated on the City's Capital Improvement Project list; and WHEREAS, the Texas Water Development Board and other State Law reyuires the City to hire Bond Counsel Services to advise City and TWDB on preparation and approval of the certificates of obligations to fund the water line replacement projects for the City; and, WHEREAS, McCall, Parkhurst & Horton, L.L.P., has submitted a Proposal for Professional Bond Counsel Services in the base amount of $15,000.00 to assist City with loan approval process and issuance of debt obligations for the water system improvements, a copy of which is attached hereto as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council of the City of Paris, Texas hereby accepts the Proposal for Professional Bond Counsel Services from McCall, Parkhurst & Horton, L.L.P., to assist City with the TWDB Loan Approval process and issuance of debt obligation for the Water System Improvements Project, a copy of which is attached hereto as Exhibit "A". Section 3. That the City Manager is authorized to negotiate and execute all documents necessary to accept the Proposal for Professional Services and to proceed with application for funding through the TWDB. Section 4. This resolution shall be effective immediately upon passage. DULY PASSED AND APPROVED this 14th day of May, 2012. ATTEST: nice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, ity Attorney Proposal for Bond Counsel Services to City Qf Paris,, Tex April 13, 2012 City of Paris, Texas Mr. Gene Anderson P.O. Box 9037 Paris, Texas 75461 Deax Mr. Anderson: On behalf of McCall, Paxkhurst & Horton L.L.P. ("McCall," the "firm," or "us"), I submit this proposal for bond counsel services to the City of Paris, Texas ("you" or the "City") in response to the City's Request for Proposals, dated April 5, 2012. McCall serves as bond counsel to more issuers of tax-exempt debt than any other law firm in the State of Texas or in the Southwestern United States. Accordi.ngly, we serve as bond counsel to more Texas cities than any other lawyer or law firm. We are consistently ranked by Thompson Reuters among the top ten bond counsel firms in the United States, as well as the #1 bond counsel firm here in Texas. For over 90 years, we have been conunitted to providing Texas political subdivisions with quality bond counsel services, and we hereby reaffirm our commitment to provide the City of Paris with such services to the best of oux collecrive abilities. Investment banks, local and state government agencies, financial advrisors and other professionals rely on us daily to guide them through the most basic, and the most complicated, financings in the State of Texas and in the United States. We are confident that our level of service to you will be unmatched. Very truly yours, McCall, Paxkhurst & Horton L.L.P. By: Dan S. Culver Enclosures Page I 1 McCall, Parkhurst & Horton L.L.P. ("McCall") has practiced exclusively in the area of public finance law since its creation in 1919. The firm's opinion (as to the validity and enforceability of a public entity's debt obligations and, later, tax exemption) was the first given by a Texas firm accepted in the national securities markets. We axe the only law firm in Texas, and one of a few law firms nationwide, that specialize solely in the field of public finance. The firm is composed of 23 attorneys located in Dallas, San Antonio, and Austin. McCall is the leading bond counsel in Texas and routinely ranks in the top ten bond counsel firms nationally. Historically, the firm has served as bond counsel for more issuers of public securities than any other law fixm in the southwestern United States. Our high national ranking is not only an indication of the stature of the firm in the public finance industry, but more importandy, an indication of the depth and breadth of our practice. We consistently achieve our high rankings by holding ourselves to the highest standards of technical experrise, professional dedicarion, client service and ethical responsibility. McCall represents some of the largest and most sophisticated issuers in the country, including the Cities of Austin, Dallas and Fort Worth, the Dallas/Fort Worth Internarional Airport, the North Texas Tollway Authority, the Texas Department of Transportation, the Texas Water Development Board, the University of Texas System, Texas A&M University System, Texas State Universiry System, and many more. McCall has been a leader in drafting legislarion and developing innovarive financing techniques in Texas. The following tables summarize the number of transactions and dollar value of public finance issues for which McCall has served as bond counsel in recent years: Narional and State Ranldn sl Na tional Ranking Year Rank Par Amount No. of Issues 2011 8 $6,941,800,000 291 2014 7 $11,467,060,000 360 : 2009 5 $9,390,700,000 258 2008 6 $11,276,400,000 238 2007 8 $9,221,500,000 292 2006 5 $10,992,000,000 282 2005 S $8,770,900,000 310 2004 14 $5;080,900;000 250 ; 2003 10 $6,149,600,000 292 2002 5 - $8;500;400,000 3?4 Texas Ranking ank Par rlmount No. of Issues 1 $6,760,100,000 283 1 $1.1;419,30Q,000 355 1 $9,206,700,000 230 1 $11,2151006,00"O 229 2 $7,703,400,000 232 1 ` $10~961,200,Q90 ' 271 1 $8,677,000,000 295 2 $5,03~,800~,0',OOx , , 238: 2 $6,113,900,000 264 1 ' $8~;446,000,000 : -297, 1 As reported by Thomson Reuters in its US Municipals Review; excludes private bank placements and remarketing of variable rate demand obligations. Page 12 2011 To.p Ten National Fir ms by Volumel R nk Firfn Par Amount No. of Issues 1 Orrick Herrington & Sutcliffe LLP $25,262,300,000 328 2 Hamkias Delafield & Waod LLP $t;~5 400,OQ0 259 3 Kutak Rock LLP $12,969,600,000 219 4 Squire Sanders & Dempsep LLP $1~,594,~bQ4000 . 496 . 5 Sidley Austin LLP $10,872,700,000 60 G Fuib~'right 8e Jaworski`LLP ,$~;53~U.~0;+0 ` 305 7 Nixon Peabody LLP 7,487,300,000 57 8 McCall Parkhuret Horton LLP 241 9 Edwaxds Wildman Palmer LLP $5,574,500,000 224 10 Winston & Strawn ,454~2`3U0 Q00 11 2010 Top Ten Nariottal Firm s by Volumel R ik Firm Par Amount No. of Issues 1 Orrick Herrington & Sutcliffe LLP $44,685,900,000 416 2 Hawkins.Delafield & Wood ILP 339 3 Sidley Austin LLP $15,593,800,000 83 4 Kutak Rock LLP : ~415,~9,A0000 575 5 Squire Sanders & Dempsey LLP $13,550,200,000 275 G , Nixon Peabody_~,LP _ >:~1~,~9„6Q ' S4 7 McCall Parkhurst & Horton LLP $11,467,000,000 360 8 Fulbri~ht 8t Jawoxski LLp $11~1t3,'i~ 363 ' 9 Edwards Angell Palmer & Dodge LLP $10,045,300,000 281 10 Cha man arid Cudei UP : $ $ `1,0b'b00'OOb ; . '603 2009 Top Ten National Fir ms by Volume' Rank Firm Par Amount No. of Issues 1 Orrick Herrington & Sutcliffe LLP $54,970,800,000 434 2 Hawkins Delafield & Wood LLP ~ ' . $23,624,ZOO,OOQ 292 3 Siclley Austin LLP $19,705,100,000 77 4 Squue Sandets & Dexnp§ep LLP $1~1;3~6;~~,~OOQ 229 5 McCall Parkhurst & Horton LLP $ 9,390,700,000 256 6 . Nixon Peabodp,LLP ` , . 8;9945500,000 69, 7 Kutak Rock LLP $ 8,827,700,000 255 8 Chapmin and Cutler LLP 8;6b0.;000, , _'584 9 Fulbright &.Jaworski LLP $ 8,715,800,000 269 10 Edwazds An Palmer & Do e LLP _ " $ 7`b36'600000 246 2008 Top Ten National Fir ms by Volumel Rank Firin Par Amount No. of Issues 1 Orrick Herrington & Sutcliffe LLP $34,544,900,000 407 2 Hawkyn's D~lafi`e1d 8~ W~io`c1 LLP. , ';':$UPQU 3 Sidley Austin LLP $19,249,400,000 127 4 Sqture Sa~dei~ 8zbem}5sey LLI' 5 Fulbright & iaworski LLP $11,582,000,000 262 6 McCall I'ar~uist & ~orton •LLY' °fi~i~ 2,2'1d;~~0~~; ~38 7 Kutak Rock LLP 111,184,900,000 270 8 `,76 9 Vinson & Elkuis LLP $10,061,000,000 151 10 Edwards PA ez 8c Do e UP 8;89b`100,000: 221' 1 Source: Thomson Reuters US Municipals Review. Page 13 2011 Top Five Texas Firms bv Volumel R nk Firm Par Amount 1 McCall, Parkhutst & Horton L.L.P. $6,760,100,000 2 Fulbright'& Jaworski L.L.P. $ 4,661,500,000 3 Vinson & Elkins LLP $ 3,629,700,000 4 Andxews Kurth'I.ZI' $ 2,093,200,Q00 5 Mahomes Bolden PC $ 1,050,200,000 2010 Top Five Texas Firms bv Volume2 Rank Firrn Par Lmount 1 McCall, Parkhurst & Horton L.L.P. $11,419,300,000 2 Vinson & Ellrins LLP $ .6;32319001000 3 Fulbright & Jaworski L.L.P. $ 6,294,300,000 4 Andrews Kurth LLP $ 3,875,700,q00 5 West & Associates I.LP $ 1,632,800,000 2009 Top Five Texas Firms by Volume3 Rank Fiurn Par Amount 1 McCall, Parkhurst & Horton L.L.P. $9,206,700,000 2 NTmsori & Elkins LLP $ 6;513,300,000 3 Fulbright & Jaworski L.L.P. $ 6,066,000,000 4 Andrews Kurth LLP $ 1,943,800,000 5 Bates & Coleman PC $ 1,542,500,000 2008 Top Five Texas Firms by Volume4 Rank Finn Par Amount 1 McCall, Parkhurst & Horton L.L.P. $11,215,000,000 2 Vinson & VIkins I,I:;P ; $10,~61,000;000 3 Fulbright & Jaworski LLP $ 8,021,300,000 4 Sinuiions Aiatioines $ ~;592,900,U00 5 Andxews Kurth LLP $ 2,515,900,000 i Source: Thomson Reuters, as published in Tbe Bond Buyer on February 14, 2012. 2 Source: Thomson Reuters, as published in The Bond Buyer on February 15, 2011. 3 Source: T'homson Reuters, as published in The Bond Buyer on February 9, 2010. 4 Source: Thomson Reuters, as published in The Bond Buyer on February 10, 2009. Page 14 McCall, Parkhurst & Horton L.L.P. has served as bond counsel on a large number of transactions involving the Texas Water Development Board ("TWDB"). In addition to representing the TWDB itself, our firm has represented many Texas cities, counties, water districts, and authorities in issues sold to the TWDB. The following table is a list of such issues, limited only to issues sold to the "I'VUDB during the last 5 years: Issuet Issue Name Amount 2012 Guadalupe-Blanco River General Improvement Revenue Bonds, Series 2012 $4 400 000 Authori > > Texas Hubbard Combination Tax and Revenue Certificates of Obligation, Series , 2012 $1,500,00 Keller Texas Combination Tax and Surplus Revenue Certificates of Obligation, , Series 2012 $5,835,00 North Central Texas Munici al ~~later Authori Revenue Bonds Series 2012 ' $5 500 00 > > Parker County Special Utilitv District Utility System Revenue Bonds Series 2012 ' $2 000 000 > > Somervell County Water District TGencral Obligation Bonds, Series 2012 $700 00 , 2011' Robert Lee, Texas Combination Tax and Revenue CO, Series 2011 $758,00 Robstown, Texas Sewer S stem Revenue Bonds, Series 2011 $2,635,000 San Angelo, Texas Combination Tax and Revenue Certificates of Obligation, Series $120 000 000 2011B , , Trini River Authori ~ ry ~ Denton Creek Regional Wastewater Treatment System Revenue $19 465 000 Bonds, Series 2011 , , Trini R.iver Authori ry ~ Denton Creek Regional Wastewater Treatrnent System Revenue $37 765 000 Bonds, Series 2011A , , Trinity R.iver Authority Mountain Creek Regional Wastewater System Revenue Bonds, $11 015 00 Series 2011 > > Trini River Authori Re ional Wastewater S stem Revenue Bonds, Series 2011A $108,395,000 Trini River Authori Red Oak Creek S stem Revenue Bonds, Series 2011 $11,710,00 Trini River Authori Ten Mile Creek S stem Revenue Bonds, Series 2011 $27,690,00 , Alba, Tegas Combinarion Tas and Surplus Revenue Certificates of Obligation $1 130 00 Series 2009 , , Alice, Texas Combination Tax and Surplus Revenue Certificates of Obligation, $2 148 00 Series 2010 , , Bell County Water Control & Improvement District Utility System Revenue Bonds, Series 2010 $390,00 No. 2 Colorado River Municipal Water District State Participation Fund $45 315 000 > > Colorado River Municipal Water District Water System Revenue Bonds, Series 2010 $11 685 00 > > Colorado River Municipal Water District Water System Revenue Bonds, Series 2010A $11 970 00 > > Commerce, Texas Combinarion Tax and Revenue Certificates of Obligarion, Series $2 274 00 2010A , , Page 15 Issuet Issue Name Amount Page 16 Commerce, Texas Combination Tax and Revenue Certificates of Obligation, Series $466 00 2010B , , Texas Commerce Combination Tax and Revenue Certificates of Obligation, Series $3 490 000 2010C , , Fort Worth, Texas Water and Sewer S stem Revenue Bonds, Series 2009 $16,265,000 Fort Worth, Teaas Water and Sewer S stem Revenue Bonds, Series 2010A $40,000,00 Fort Worth, Texas Water and Sewer S stem Revenue Bonds, Series 2010B $28,000,000 , Texas Henrietta Combinarion Tax and Revenue Cerrificates of Obligarion, Series $3 250 000 2010 , , Ingram, Texas Combination Tax and Surplus Revenue Cerrificates of Obligarion, $837 00 Series 2009 , Lamar County Water Su 1 District Water System Revenue Bonds, Series 2010 $1 385 00 > > McAllen, Texas Waterworks and Sewer System Improvement Revenue Bonds, $39 485 00 Series 2009 , , Parker County Special UtiliDistrict Water System Revenue Bonds, Series 2010 $3,000,000 Sabinal, Texas Combination Tax and Revenue Certificates of Obligation, Series $600 00 2010 , Tarrant Regional Water District Water Revenue Bonds, Series 2010A $17,835,000 Tarrant Regional Water District Water Revenue Bonds, Series 2010B $83,785,000 Travis County Water Control and Improvement Water and Sewer System Revenue Bonds, Series 2010 $1>775>000 District No. 17 Triru River Authori Re ional Wastewater S stem Revenue Bonds, Series 2010 $107,180,000 Trini River Authori Re ional Wastewater S stem Revenue Bonds, Series 2010A $127,005,000 Trini River Authori Ten Mile Creek S stem Revenue Bonds, Series 2010 $23,410,000 _ 2009 Alice , Texas Combinarion Tax and Surplus Revenue Certificates of Obligation , $4 495 00 Series 2009 , , Anthony, Texas Combination Tax and Surplus Revenue Certificates of Obligation , $4 000 00 Series 2009A , , Brazos River Authori• Water Su 1 S stem Revenue Bonds, Series 2009 $22,000,00 Dallas, Texas Waterworks and Sewer S stem Revenue Bonds, Series 2009A $15,100,00 Dallas, Texas Waterworks and Sewer S stem Revenue Bonds, Series 2009B $8,280,000 Dallas, Texas Waterworks and Sewer S stem Revenue Bonds, Series 2009C $94,723,000 Del Rio, Texas Combination Tax and Revenue Certificates of Obligation, Series $10 000 00 2009C , , Early , Texas Combination Tax and Revenue Certificates of Obligation, Series $6 000 00 2009 , , , Texas Eastland Combination Tax and Revenue Cerrificates of Obligation, Series $2 385 00 2008B , , Edgewood, Texas Combinarion Tax and Revenue Cerrificates of Obligation, Series $835 000 2009 , El Paso County Tornillo Waterworks & Sewer System Revenue Bonds Series 2008 Water Improvement , $130,000 District Laredo , Texas Subordinate Waterworks and Sewer System Revenue Bonds, $7 500 00 Series 2009 , , Merkel, Texas Combination Tag and Waterworks and Sewer System Surplus $3 000 000 Revenue Certificates of Ob i tion, Series 2009 , , Issuer IeFUP NamP North Texas Municipal aav uaa a Water District Water System Revenue Bonds Series 2009A > $9,930,00 North Texas Municipal Water District Water Sj-stem Revenue Bonds Series 2009B , $43,980,00 Sabinal, Texas Combination Tax and Revenue Refundin Bonds, Series 2009 $130,00 Somervell County Water District General Obligation Bonds Series 2009A , $1,340,00 Somervell County Water District General Obligation Bonds Series 2009B > $9,494,00 Somervell County Water District General Obligation Bonds Series 2009C ~ ,367 F$9,OOC Trini River Authori• Re ional NVastewater S stem Revenue Bonds, Series 2009 $86,780,000 Trinity River Authority Denton Creek Regional Wastewater System Revenue Bonds, Series 2009 $7,760,00 Trinity R.iver Authoriry Mountain Creek Regional Wastewater System Revenue Bonds, Series 2009 $1,775,000 Trini River Authori Red Oak Creek S stem Revenue Bonds, Series 2009 " $8,280,0001 2008 Bell Counry Water Control & Improvement District Utility System Revenue Bonds, Series 2008 $1,055 00 No. 2 , Buffalo, Texas Combination Tax and Revenue CO, Series 2008 $3,500,00 Central Harris County Re 'onal Water Authori Revenue Bonds Series 2008 ' $22,50,00 Cisco, Texas Combination Tax and Revenue CO, Series 2008 $2,200,00 Cisco, Texas Combination Tax and Revenue CO, Series 2008A $3,000,00 Clarksville, Texas Combination Tax and Revenue CO, Series 2008 $1,400,00 Commerce Texas Combinarion Tax and Revenue Certificates of Obligation, Series , 2007 $2,005,000 Eastland Texas Comb nation Tax and Revenue Certificate of Obligarion Series I , , 'Nflno A @mM nnn Page 17 Issuer Tea,lp Nn.,,o . _ Woodsborq Texas i - - - Combination Taic and Combined Waterworks and Sanitary Sewer n,JL..,..UL Surplus Revenue CO, Series 2008 $525,00 . Lyv`~J"'~LL~ ur'-"` -L11`y District Waterworks and Sewer System Revenue Bonds, Series 2007 $2,500,0( El Paso County Tornillo Water Improvement Water and Sewer Revenue Bonds, Series 2007A $410,Oa District Fort Worth Texas Water and Sewer System Subordinate Lien Revenue Bonds, Series , 2007A $33,560,00 Fort Worth, Texas Water and Sewer System Subordinate Lien Revenue Bonds, Series $49 865 00 2007B , , Houston Water Control and Itnprovement District Water System Revenue Bonds, Series 2007 $6,000,001 No. 1 Lamar County Water Su 1 District Water System Revenue Bonds Series 2007 > $3,180,00( Texas Lorena Combination Tax and Revenue Certificates of Obligation, Series , 2007 $2,260,00( Lower Valley Water District Utility System Revenue Bonds Series 2007 , $20,600,00C Marfa, Texas Waterworks and Wastewater S stem Revenue Bonds, Series 2007 $1,265,OOC Travis Co. Water Control & Improvement District Water System Revenue Bonds, Series 2007 $3,100,000 No. 17 Trinidad Texas Combinarion Tax and Revenue Certificates of Obligation, Series , 2007 $250,000 Trinidad Texas Combination Tax and Revenue Certificates of Obligation, Series , 2007A $400,000 Trinity River Authority Denton Creek Regional Wastewater Treatment System Revenue Bonds, Series 2007 $47,595,000 Trini River Authori Re ional Wastewater S stem Revenue Bonds, Series 2007 $120,000,000 Trini River Authori Ten Mile Creek S stem Revenue Bonds, Series 2007 $46,190,000 2006 Bonham, Texas Combination Tax and Revenue Certificates of Obligation, Ser ies 2006 355 000 $7 > , Brown Co. Water Improvement District No. Revenue Bonds, Series 2006 $20,490,00 1 Coo er, Texas Waterworks and Sewer S stem Revenue Bonds, Series 2005 $205,00 DeKalb, Texas Waterworks and Sewer S stem Revenue Bonds, Series 2006 $250,000 Marlin Texas Combination Tax and Revenue Cerrificates of Obligarion, Series ' 2005A $2,255,00 Marlin Texas Combination Tax and Revenue Certificates of Obligation, Series , 2005B $10,710,00 Redwater Texas Combination Tax and Revenue Certificates of Obligation, Series , 2005 $470,00 Round Rock, Texas Utili S stem Revenue Bonds, Series 2006 $12,000,00 Travis Co. Water Control & Improvement District Steiner Ranch Defined Area Unlimited Tax Bonds, Series 2006 $5,890,000 No. 17 Page 18 Issuer Issue Name A,,,.,,,.,* Travis Co. Water Control & Improvement District Water and Sewer System Revenue Refunding Bonds, Series 2005 $6,735,000 No. 17 The above table shows the extensive experience of our firm with issues purchased by the T'WDB. Each of the attorneys in the firm, particularly Mr. Dan Culver, has represented clients in some of the issues shown above. See Attachment B for a list of transactions in which McCall, Parkhurst & Horton L.L.P. served as Bond Counsel for the T'WDB. Page 19 The professional staff of McCall, Parkhurst & Horton L.L.P. is composed of 23 active attorneys. Each and every attorney pracrices exclusively in the area of public finance. The following table lists the name, position, location and y ears of experience as an attorney for each member of the professional staff: Name Position Location 1'ears Ex~erience Richard C. Portex Partnex Dallas 39 G. Charles Kobdish* Partner Dallas 37 Alan H. Raynor Partner Dallas 38 Jeffrey A. Leuschel Parmer Dallas 31 L.E. (Ted) Brizzolara III Partner Dallas 31 Thomas k- Spurgeon v. Partnet Sank:A.ritqnio 30 Dan S. Culver Partner Dallas 26 Caro115. Polumbo* Partner AiAtin 26 Gregory B. Salinas Partner Austin 22 Mark A, Malveaux Partner Dallas 19 Leroy Grawunder, Jr.* Partner Dallas 33 Sara #Y: Tangen Parmer Da1'las 29 Gregory C. Schaecher Partner Dallas 15 Richard 9: Donoghue, Jr. Partner Da11as 12 Joe Eckert Partner Dallas 14 Noel V'aidez Parnier San Antbnio 11 J. Bart Fowler* Partner Austin 13 Stefano Taverna Partner Da.llas 9 Jeff Gulbas J Associate Dallas 5 Jana N1: Edwards Associate A:ust'tn 6_ Rodolfo Segura Jr Associate Dallas 2 HaxoldrT. Fla:nagan Of Counsel Dallas 33 Peter M. Tart Of Counsel Dallas 47 Kathy S. Gooper Lega1 Asst. San Aritonio N/A Victoria D. DiMaria Legal Asst. Dallas N/A *Served as Assistant Attorney General of Texas in the Public Finance Division. Below are the names, titles, office locations and years experience for each of the persons to be assigned to the City's account: Name Title Office Location Experience Dan S. Culver Partner Dallas 26 years Stefano J: Taverna Partner .Dallas 9 years Brief resumes for each of the above-listed attorneys follows: Page 110 Dan Culver is a 1985 graduate of Southern Methodist University School of Law. He joined McCall, Parkhurst & Horton L.L.P. upon graduation from the SMU School of Law, and has been a partner in the firm since 1991. Dan's practice includes a wide variety of general governmental issuers, including cities, counties, school districts, junior college distticts, hospital districts and special utility districts. In addition, his practice includes representation of a variety of regional issuets, including joint powers agencies and river authorities, with respect to which Mr. Culver has provided bond counsel services for both governmental bonds, as well as for private activity "conduit" issues. His practice in the area of conduit financing has included a large volume of sewage and solid waste, dock and wharf and small issue manufacturing projects, as well as transactions involving 501(c)(3) organizations that use tax-exempt financing for univexsity, primary and secondary educational facilities. Among other representations, Dan has represented the Texas Permanent School Fund as disclosure counsel since the initiation of SEC Rule 15c-12 in 1996. Dan provides leadership to the firm with respect to its representation of governmental issuers as disclosure counsel, and he frequently represents regional and nationa.l investment banking firms as underwriter counsel on negotiated governmental and 501(c)(3) transactions. Dan has served as Bond Counsel for a broad array of issuers. Representative clients include Parker County, Hood County, Johnson County and the Ciries of Abbot, Breckenridge, Buffalo, Childress, Commerce, Early, Longview, Lorena, Marlin, Maxt, Navasota, Pantego, Paris, Prosper, Stephenville and Wills Point. Dan has also served as Bond Counsel for Arli.ngton ISD, Frenship ISD, Granbury ISD, Longview ISD, Lovejoy ISD, Midway ISD, Malakoff ISD, New Boston ISD, Palestine ISD, Paris ISD, Ponder ISD, Quinlan ISD, and San Saba ISD. Other clients include Austin College (through the Sherman Higher Education Finance Authority), the Texas Municipal Power Agency, the Lower Colorado River Authority, the Brazos River Authority, the Smith County Water Control & Improvement District Number One, the Sabine River Authority and the Matagorda County Navigation District Number One. Addirionally, Dan has served as underwriters counsel and disclosure counsel in connecrion with the issuance of debt by numerous Texas cities, counties, and school districts, including Collin County, Tarrant County and Webb County, the Cities of Allen, Carrollton, Colleyville, Denton, Denver City, Gainesville, Midland, Odessa, Sherman, Tyler and Webster, and Alvarado ISD, Allen ISD, Crosby ISD, Grape Creek ISD, Marlin ISD, New Caney ISD and Woodville ISD. Page 111 Stefano Taverna, a partner of the firm, practices exclusively in the area of federal income taxation of tax-exempt and tax- credit bonds. Stefano provides ta.x advice to issuers and underwriters regaxding tax-exempt bond financings involving new money projects, current and advance refundings, capital and woxking capital financings, commercial paper issues, and pooled bonds. He guides clients with respect to the structuring of tax-exempt bonds, private activity bonds, qualified school construction bonds, recovery zone bonds, qualified zone academy bonds, and other types of ta.x-credit bonds. Stefano also represents numerous clients before the Internal Revenue Service in connection with audits of tax-exempt and tax-credit bonds, Voluntary Compliance Agreements, and other Prior to joining the firm, Stefano was a tax attorney at two law fu7ns with an established Wall Street presence. Stefano has serc ed as bond counsel, underwriters' counsel and special tax counsel for numerous financing transactions throughout the country. Addirionally, Stefano has advised clients on the federal and state tax aspects of domestic and international hedge fund formations and operations, mergers, acquisitions and reorganizations, public and private debt and equity offerings, and general corporate, partnership and investment issues. Stefano has represented numerous clients on swap transactions and has advised tax-exempt entities with regard to the federal and state tax implications related to their formation and operations. Prior to joining private practice, Stefano clerked for the Honorable O'C. Wefing, Appellate Division, Superior Court of the State of New Jersey. Stefano is a graduate of Rutgers, the State University of New Jersey (B.A., summa cum laude), Brooklyn Law School Q.D.) and New Yoxk University School of Law (LL.M.). He is admitted in New York and New Jersey and is a member of the American Bar Association, the New York State Bar Association, and the National Association of Bond Lawyers. Stefano has been a speaker and panelist at vaxious events, including panels on public finance and federal tax matters. Stefano is a contributing editor of Federal Taxation of Municipal Bonds, a treatise published by the National Association of Bond Lawyers. Page 112 administrative proceedings. Neither McCall nor any individuals to be assigned to the City's account are suspended, or otherwise prohibited from professional practice by any federal, state, or local agency. All attorneys of the firm are members of the State Bar of Texas and are fully licensed to practice law in Texas. Some attorneys are licensed to practice law in other jurisdictions as well. McCall maintains a strong commitment to the continuing educarion of our attorneys and other professional staff in order to provide the highest level of service to our clients, and to ensure compliance with all licensing requirements imposed on our attorneys. Page 113 Below is contact informarion for clients with borrowing needs that are similar to those of the City who can speak to the firm's abilities and to the qualifications and experience of the members of the proposed project team. Name. Address. ContactTitle, Phone Number 1• City of Commerce, Texas 1119 Alamo Street, Commerce, Texas 75428 Marc Clayton, City Manager (903) 886-1130 2• City of WinfieTexas P.O. Box 98, Winfielcl;,Texas:`75493,`.r0098<. John Walton; .1Vlapor (90))`285=~39' 3. City of Stephenville, Texas 298 West Washington, Stephenville, Texas 76401 Maxk Kaiser, Ciry Manager (254) 918-1225 4. johnson 4County.:: . 2 N. Main Street Room 312; Cl6Uiirne, Texas 7603 Kirk Kirkpatrick, Countp :Auditor '(81) `556=6305 5. Town of Prosper, Texas P.O. Box 307, Prosper, Texas 75078 Mike Land, Town Mana er 972) 346-2640 Page 114 [Date] Mayor and Members of the Ciry Council City of Paris, Texas P.O. Box 9037 Paris, Texas 75461 Re: City debt to be sold to the Texas Water Development Board for the purpose of financing a water lines replacement project Ladies and Gendemen: This letter is submitted to state our fees and describe the legal services of the undersigned law firm in perfonning the duries of bond counsel for the City of Paris, Texas (the "City") with reference to the issuance of the debt described above (the "Obligations") and the sale of the Obhgations to the Texas Water Development Board. We understand that the City expects to issue a series of Obhgations through the Texas Water Development Board for the purpose of financing a water lines replacement project. A. SCOPE OF ENGAGEMENT In this engagement, we expect to perform the following duties: 1. Prepare all resolutions, ordinances and otheY instruments pursuant to which the Obligations will be authorized, issued, delivered and secured, in cooperation and upon consultation with the City Council of the City, its financial advisors and other consultants of the City. 2. Attend meetings of the City Council with reference to the authorizarion and issuance of the Obhgations to the extent required or requested. 3. Cooperate with the Citp Council and all othex interested parties in the sale of the Obhgations to the Texas Water Development Board. 4. Supervise the execution of the Obligations, their approval bj> the Attorney General of Texas and registrarion by the Comptroller of Public Accounts of Texas, and the delivery thereof to the purchaser, the Texas Water Development Board. 5. When so delivered, give our objective approving opinion covering the validity of the Obhgations and the exemption of interest thereon from federal income taxes, it being understood Page I A-1 that the approving opinion will be fully acceptable narionally in regular commercial investment banking bond marketing channels. Our Legal Opinion will be delivered by us on the date the Obligations are exchanged for their purchase price (the "Closing"). The City will be enritled to rely on our Legal Opinion. The Legal Opinion will be based on facts and law existing as of its date. In rendering our Legal Opinion, we will rely upon the certified proceedings and other certifications of public officials and other persons furnished to us without undertaking to verify the same by independent investigarion, and we will assume continuing compliance by the City with applicable laws relating to the Obligations. During the course of this engagement, we will rely on you to provide us with complete and timely information on all developments pertaining to any aspect of the Obligations and their security. We understand that you will direct members of your staff and other employees of the City to cooperate with us in this regard. Our duties in this engagement are limited to those expressly set forth above. Unless we are separately engaged in writing to perform other services, our duties do not include any other services, including the following: (1) Preparing requests for tax rulings from the Internal Revenue Service, or no action letters from the Securities and Exchange Comtnission. (2) Drafting state constitutional or legislative amendments. (3) Pursuing test cases or other litigation. (4) Making an invesrigation or expressing any view as to the creditworthiness of the City or the Obligations. (5) Representing the City in Intemal Revenue Service examinations or inquiries, or Securities and Exchange Comnussion investigations. (6) Except as described in paragraph 1 above, assisting in the preparation of, ox opining on, a continuiug disclosure undertaking pertaining to the Obligations or, aftex Closing, providing advice conceming any actions necessary to assure compliance with any continuing disclosure undertaking. (7) After Closing, providing continuing advice to the City or any other party concerning any actions necessary to assure that interest paid on the Obligations will continue to be excludable from gross income for federal income tax purposes (e.g., our engagement does not include rebate calculations for the Obligations). (8) Addressing any other matter not specifically set forth above that is not required to render our Legal Opinion. Page I A-2 B. ATTORNEY-CLIENT RELATIONSHIP Upon execution of this engagement letter, the City will be our client and an attorney-client relationship will exist between us. We further assume that all other parties in this transaction understand that we represent only the City in this transacrion, we are not counsel to any other party, and we are not acting as an intermediary among the parties. Our services as bond counsel are limited to those contracted for in this letter; the City's execurion of this engagement letter will constitute an acknowledgment of those limitations. Our representarion of the City will not affect, however, our responsibility to render an objecrive Legal Opinion. Our representation of the City and the attorney-client relationship created by th.is engagement letter will be concluded upon issuance of the Obligations. Nevertheless, subsequent to Closing, we will mail the appropriate Intemal Revenue Service Form 8038, prepare and distribute to the participants in the transaction a transcript of the pxoceedings pertaining to the Obligations. C. CONFLICTS As you are aware, our finn represents many political subdivisions and investtnent banking firms, among others, who do business with political subdivisions. Our firm also represents the Texas Water Development Board in the capacity as bond counsel. It is possible that duri.ng the tiine that we are representing the City, one or more of our present or future clients will have transactions with the City. It is also possible that we may be asked to represent, in an unrelated matter, one or more of the entities involved in the issuance of the Obligations. We do not believe such representa.rion, if it occurs, will adversely affect our ability to represent you as provided in this letter, either because such matters will be sufficiently different from the issuance of the Obligations so as to make such representations not adverse to our representation of you, ot because the potential for such adversity is remote or minor and outweighed by the consideration that it is unlikely that advice given to the other client will be relevant to any aspect of the issuance of the Obligations. Execution of tliis letter will signify the City's consent to our representation of others consistent with the circumstances described in tlus paragraph. D. FEES Based upon: (i) our current understanding of the terms, structure, size and schedule of the finaricing represented by the Obligations; (u) the duties we will undertake putsuant to this engagement letter; (iu) the time we anticipate devoting to the financing; and (iv) the responsibilities we will assume in connection therewith, our fee will be $10,000 for the first $1,000,000 in principal amount of Obligations sold, plus $2 per $1,000 of Obligations for all principal amounts in excess of $1,000,000, but with a minimum fee of $15,000. We will be reimbutsed for our out-of-pocket expenses reasonably and necessaxily incurred in connection with the authoxization, issuance, and delivery of such Obligations, e.g. travel, photocopying, and similar expenses. In addition, we will advance for the City and be reimbursed for the Attorney General filing fee, and said fee and expenses will be payable at the time of the delivery of and payment for the Obligations, but our fees are wholly contingent upon actual delivery of the Obligations. Fees for litigation, and any other special services not normally included in the legal services pexformed by bond counsel will be Page I A-3 negotiated between the City and the undersigned. In the event that Attorney General filing fee is ftled, but the issue does not close, we will be reimbursed for those advances, if we have made them on behalf of the City. Our fee will be billed after the Closing. If the financing is not consuxnmated, we understand and agree that we will not be paid, except that we would be reimbursed for the amount that we have advanced on behalf of the City to pay the Attorney General's review fee. E. RECORDS At your request, papers and property furnished by you will be returned prompdy upon receipt of payment for outstanding fees and client charges. Our own files, including lawyer work product, pertaining to the transaction will be retained by us. For various reasons, including the minimi7ation of unnecessary storage expenses, we reserve the right to dispose of any documents or other materials retained by us after the tertninarion of this engagement. If the foregoing terms are acceptable to you, please so indicate by returning the enclosed copy of this engagement letter dated and signed by an authorized officer, retaining the original for your ftles. We look forward to working with you. Respectfully yours, Page I A-4 Following is a list of recent issues issued by the Texas Water Development Board for which McCall, Parkhurst & Horton L.L.P. served as bond counsel to the Texas Water Development Boaxd. Issue Name Princi al , . . . , . . : - ~0~1 _ .r . _ General Ob i rion Bonds Water Financial Assistance Bonds, Series 2011B $92,255,00 n ater Financial Assistance Bonds, Series 2010B ater Infrastructure Fund $143,225,00 ater Financial Assistance Bonds, Series 2010C State Partici ation Fun $42,280,00 ater Financial Assistance Bonds, Series 2010D conomicallDistressed Areas Pro am $32,350,00 . . . . , . ater Financial Assistance Refundin Bonds, Series 2008B $26,510,00 ater Financial Assistance Refunding Bonds, Series 2008C (Economically Distressed Areas $34,235,00 Financial Assistance Bonds, Series 2009, Sub-Series 2009A (Water Infrastructure $1 ater Financial Assistance Bonds, Series 2009, Sub-Series 2009B (Water Infrastructure $157 ater Financial Assistance Bonds, Series 2009C-1 and Refundin Bonds, Series 2009C-2 $282,645,000 ater Financial Assistance Refundin Bonds, Series 2009D State Partici ation Pro am $49,775,000 State Revolving Fund Subordinate Lien Revenue Bonds, Series 2009, Sub-Series 2009A-1 and State Revolving Fund Subordinate Lien Revenue Refunding Bonds, Series 2009A, Sub- Series 2009A-2 $257,740,000 ater Financial Assistance Bonds, Series 2009E ater Infrastructure Fund $101,400,000 ater Financial Assistance Bonds, Series 2009F conomicallDistressed Areas Pro am $24,540,00 2008 ; q State Revolvin Fund Subordinate Lien Revenue Bonds, Pro am Series 2008A $203,050,00 General Obligarion Bonds Water Financial Assistance Bonds, Series 2008A (Water Infrastructure Fund $112,920,00 State Revolvin Fund Subordinate Lien Revenue Bonds, Pro am Series 2008B $261,425,00 . , , ater Financial Assistance Refundin Bonds, Series 2007A $118,465,00 ater Financial Assistance Refunding Bonds, Series 2007B (Economically Distressed Areas Pro am $19,680,00 ater Financial Assistance Bonds, Series 2007C conomicallDistressed Areas Pro am $24,665,00 ater Financial Assistance Bonds, Series 2007D (AlyM $25,000,00 State Revolving Fund Subordinate Lien Revenue Bonds (Variable Rate Refunding), Series 2007A $309,240,00 State Revolving Fund Subordinate Lien Revenue Bonds (Fixed Rate Refunding) Series 2007B $211,620,00 W;20D6,;. ater Financial Assistance Refundui Bonds, Series 2006A $13>175>00 - , •.4.:., _ ater Financial Assistance Refundin Bonds, Series 2005A $55,675,00 ater Financial Assistance Bonds Taxable Series 2005B $15,000,00 Water Financial Assistance Refunding Bonds, Series 2005C (Economically Distressed Areas Pro am $49,270,00 State Revolving Fund Subordinate Lien Revenue Bonds, (Variable Rate Refunding), Series 2005 $136,055,000 2004 ~ . . - ater Financial Assistance Bonds, Series 2004A $25,000,000 Page I B-1 Issue Name U«. ,.1 ater Financial Assistance and Refundin Bonds, Series 2004B $71,530,000 ater Financial Assistance Bonds, Series 2004C conomicallDistressed Areas Pro am $24,415,000 ater Financial Assistance Bonds, Series 2004D $60,085,00 ater Financial Assistance and Refundin Bonds Taxable Series 2004E $38,820,00 20~13; . , _ _ . . . ~ ater Financial Assistance Bonds, Series 2003-A $25,000,00 ater Financial Assistance Refundin Bonds, Taxable Series 2003B $50,915,00 Water Financial Assistance and Refundin Bonds, Series 2003C $70,330,00 ater Financial Assistance Refundin Bonds, Series 2003D State Partici ation Pro am $1,870,000 i uruz - l Water ruiancial Assistance Bonds, Series 2002A $25,000,00 ater Financial Assistance and Refundin Bonds, Series 2002B $98,500,00 W'ater Financial Assistance Bonds, Series 2002C conomicall Distressed Areas Pro am $23,980,00 ater Financial Assistance Bonds, Series 2002D State Partici ation Pro am $20,000,00 ater Financial Assistance Series 2002E , . $18,035,000 Page I B-2 AO 0-0 ~e NnW.ood Ln _ - 3' • ~ m sosze a~ Aw~ 42ne st r~~ ~ q~ ~ 3S iS wtb . _ . . ~ ' ~ . __35- E $ ~ 3S 1S LIBC ~ a A, F~ 3N IS w9f r q a p ~ ,,•t-'"'"""' 0 3N IS NSC Q r ~O 3N 1S WIf p 4, t ~~11pp~, ~ 3 ~ a awmsE F F ~ ~ . aN M+wzc~ 5 ~a 3m 1s Kcc M . +OlcNreNN~S ISIWRWW g b I' 3SISri1~'K U~ Ojry; U K M,wei b Wo7M woomAf £ . 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