CITY OF LA FERIA, TEXAS PUBLIC NOTICE
At its meeting to be held at the City Commission Meeting Room located at 115 E. Commercial Avenue, La Feria, Texas on February 22, 2022, at 6:30 p.m., the City Commission (the “City Commission”) of the City of La Feria, Texas (the “City”) will consider engaging The J. Ramirez Law Firm (“J. Ramirez”) and Escamilla & Poneck, LLP (“E&P”), collectively, as bond counsel, in connection with the future issuances of bonds or other obligations of the City (the “Bonds”).
Pursuant to Section 2254.1036, Texas Government Code, the following written notice is given to the public:
- The reason for pursuing issuance of Bonds in the future (the matter that is the subject of the legal services for which J. Ramirez and E&P would be retained) is to finance one or more projects or infrastructure improvements of the City in the future or to refund previously issued obligations in the future. The desired outcome of the matter is to ensure any Bonds issued in the future are done so in accordance with state law, federal tax law and securities law.
- The J. Ramirez Law Firm has been serving governmental bond issuers since 1987. J. Ramirez’s legal opinions have been accepted in the bond market since then. J. Ramirez is also available to provide consultation on bond or debt related matters. Escamilla & Poneck, LLP has a nationally recognized public finance practice and has provided public finance legal services since 1992. E&P has advised numerous clients on state, federal tax and securities law matters in connection with hundreds of public finance transactions.
- J. Ramirez and E&P have no previous relationship with the City or the City Commission.
- Bond Counsel services are highly specialized legal services involving guidance in state, federal tax and securities law. The services require competences, experience and legal knowledge which are not normally had by city attorneys and the city’s supporting personnel. Additionally, public finance industry standards necessitate the engagement of outside Bond Counsel. As such, legal services cannot be adequately performed by the attorneys and supporting personnel of the City.
- J. Ramirez and E&P provide their services on a fixed, contingency fee basis with such fee being paid from Bond proceeds. The City cannot reasonably engage attorneys for bond counsel services under hourly fee contracts without contingency because then the City would have to pay such bond counsel fees from the City’s unrestricted general funds or other lawfully available funds, if any, regardless of whether the Bonds are successfully issued, and such funds are limited and needed for other uses.
- A contingency fee contract for bond counsel services is in the best interest of the residents of the City on the basis of the following: (1) the City has the benefit of receiving and relying on the legal advice of a qualified and experience legal counsel; (2) the City is able to rely on the legal advice of bond counsel throughout all preparatory actions relating to
issuance of a bond without having to pay significant fees during the process; (3) the City’s decisions to postpone an action, including an election and sale or issuance of Bonds does not result in paying additional legal fees; (4) a contingency fee allows the City to pay for and capitalize fees for the bond counsel and all related fees out a debt fund rather than from the City’s maintenance and operations funds; and (5) the fees are fixed and only become due and payable when Bonds are successfully issued.
POSTED AND DATED: February 18, 2022.