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HomeMy WebLinkAboutPACKET NOV 21 2000 '' BARBARA LIMING CITY CLERK CITY CLERK'S OFFICE � ° I City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 21, 2000 1:30 P.M. AGENDA OPENING * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1 and 2 * Consent Agenda ; GENERAL BUSINESS 1. Consider accepting the Grand Recap of the tax roll for the tax year 2000 with a taxable value of$3,779,873,302 �o 2. Consider approving a change in the City's Investment Policy 3. PUBLIC HEARING: Expansion of the Beaumont/Nederland/Jefferson County Enterprise Zone Consider approving an ordinance amending Ordinances 97-40 and 97-58 to expand 9 the Beaumont/Nederland/Jefferson County Enterprise Zone to allow West Teleservices Corporation located in the Village Shopping Center to be eligible for state and local incentives COMMENTS * Councilmembers comment on various matters * City Manager's Report - Federal Railroad Administration Quiet Zone Study, Partnership in Governance 2001, Holloween Fest, HUD Funding Allocation, Downtown/Waterfront Revitalization Program/Assessment, GSA Meeting, GASB Statement 34, Turkey Trot and Council Mobile Meeting * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Claim of Margaret Jones Janice Haynes v. City of Beaumont, et al Greentree Administrators, Inc. v. City of Beaumont Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kyle Hayes at 880-3716 a day prior to the meeting. 1 Consider accepting the Grand Recap of the tax roll for the tax year 2000 with a taxable value of $3,779,873,302 ..... City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Andrea S. Deaton, Budget Officer MEETING DATE: November 21, 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Accept the Grand Recap of the tax roll for the tax year 2000 with a taxable value of$3,779,873,302. RECOMMENDATION Administration recommends the acceptance of the Grand Recap of the tax roll for the tax year 2000 with a taxable value of$3,779,873,302. BACKGROUND Pursuant to the Texas Property Tax Code, Section 26.09, this recap must be approved by the City Council. BUDGETARY EWPACT Property tax revenues in the FY 2001 Budget were calculated based on this taxable value. PREVIOUS ACTION On September 12, 2000 Council approved the tax roll as certified by the Jefferson County Appraisal District with a taxable value of$3,779,873,302. There is no change in the taxable value in Grand Recap. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer. Accept Grand Recap November 15, 2000 Page 2 RECOMMENDED MOTION Approve/Deny acceptance of the Grand Recap of the tax roll for the tax year 2000 with a taxable value of$3,779,873,302. ,SON CoG �TEXA�� MIRIAM K. JOHNSON TAX ASSESSOR-COLLECTOR NETTIE WILLIAMS TRUSS JEFFERSON COUNTY COURTHOUSE SYLVIA E.MYERS CHWF DEPUTY P.O.BOX 2112 BEAUMONT,TEXAS 77704 mMF OPEMT10M5 MGR. 409-835-8516 FAX 409-8354589 November 6, 2000 Beverly Hodges City of Beaumont P. O. Box 3827 Beaumont, TX 77704 Dear Ms. Hodges: Enclosed please find the Grand Recap (Certified Ro//Jurisdiction Summary) of the tax roll for the tax year 2000 for your jurisdiction. Pursuant to the Texas Property Tax Code, Section 26.09, this Recap should be approved by your Board of Director's at your next board meeting. After the approval, I would appreciate your sending me a copy of the resolution for retention in the Tax Office. If you should have any questions or require further information, please feel freeto call. Sincerely, MIRIAM K. JOH ON Assessor-Collector of Taxes Jefferson County, Texas MKJ:tm Enclosure grandrep.kr 10/09/2000 21:11:26 TAX COLLECTION SYSTEM PAGE: 9 TC500 C E R T I F I E D R'0 l L J U R I S D I C T I O N S U M M A R Y PROCESSING FOR TAX YEAR: 2000 TAX OFFICE: JEFFERSON COUNTY TAX OFFICE JURISDICTION: 21 CITY OF BEAUMONT TOTAL PARCELS: 61,117 TAX RATE:00.635000 GROSS VALUE: 4,188,875,752 STATE NOM: 0 OPT HOM: 0.00000 EXEMPT PARCELS: 3,588 STATE 065: 0 OPT 065: 17,500 EXEMPT VALUE: 215,195,280 DISABLED: 17,500 AG EXCLUSION: 24,176,190 AG PROPERTIES: 229' HS CAPPED CUT: 901 HS CAPPED AMT: 3,213,452 HISTORICAL CUT: 6 HISTORICL VALUE: 1,050,080 PRORATED CUT: 40 PRORATED VALUE: 250,328 GROSS TAXABLE: 3,944,990,422 STATE HOMESTEAD 24,301 HOMESTEAD AMT: 0 LOCAL HOMESTEAD 24,301 HOMESTEAD AMT: 0 OVER65 8,397 OVER 65 AMT: 0 LOCAL OVER65 8,397 OVER 65 MIT: 142,874,650 SURVIVING SPOUSE: 90 AMOUNT: 1,516,140 # OF DISABLED: 944 DISABLED AMT: 15,632,770 VET 2 55000 223 VETERAN AMT: 1,076,660 VET a7 $7500 43 VETERAN AMT: 296,160 VET 2 $10000 33 VETERAN AMT: 296,750 VET 2 512000 319 VETERAN AMT: 3,423,990 TOTAL VET 618 VETERAN AMT: 5,093,560 TOTAL PART XMP: 165,117,120 TAXABLE VALUE: 3,779,873,302 FROZEN ACCTS: 0 LEVY LOSS: 0.00 TOTAL LEVY: 24,002,269.56 LATEAG CNT: 1 LATEAG AMT: 51.50 FROZEN GROSS: 0 FROZEN TAXABLE: 0 UNFROZEN LEVY: 0.00 FROZEN LEVY: 0.00 TIF CAPTURED: 2,912,420 2 Consider approving a change in the City's Investment Policy QPPA.... ff City of Beaumont Council > Agenda Item b TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kandy Daniel, Treasurer MEETING DATE: November 21, 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council consider a resolution requesting a change in the City's Investment Policy to include direct us obligations or agencies instrumentalities that are non-callable. RECOMMENDATION The administration requests approval of the City of Beaumont Investment Policy as amended. BACKGROUND State law mandates the City Council review and approve any modifications to the policy on an annual basis. A change in the policy regarding authorized investments for the City is requested. Currently the City is restricted to investment in direct obligations of the United States Treasury (Treasury Notes and Treasury Bills). The new policy would allow investment in direct obligations of the United States or its agencies and instrumentalities which are non-callable. These include Treasury securities as well as discount and coupon obligations of the Federal Agencies that were established by Congress to provide credit to specific sectors of the economy. Federal Agencies include the Federal Home Loan Bank, Federal Farm Credit Bank, Tennessee Valley Authority, Student Loan Marketing Association (Sallie Mae), Freddie Mac, Fannie Mae and Federal Agricultural Mortgage Corp. (Farmers Mac). Agencies offer discount securities which function much like Treasury Bills in that they are offered at a discount and pay interest at maturity. These agencies also offer coupon securities which are similar to Treasury Notes which pay interest semi-annually. The city will not purchase Agency Securities which are callable thus reducing market risk which can occur if a security is redeemed by the issuer prior to the final stated maturity date. Non-callable Agency Securities are currently yielding 30 to 60 basis points higher than comparable Treasury Securities. No change to the City's policy is requested regarding maximum maturities. BUDGETARY IMPACT None. PREVIOUS ACTION The City's current policy was adopted on September 26, 1995 with amendments on October 29, 1996, October 28, 1997, November 3, 1998 and November 9, 1999. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer. RECOMMENDED MOTION Approve/Deny resolution amending the City's Investment Policy to include investments in direct U.S. obligations or agencies/instrumentalities which are non-callable. City of Beaumont Investment Policy I. Introduction It is the policy of the City of Beaumont to invest public funds in a manner which will ensure that the investments are duly authorized, properly managed, adequately protected and fully collateralized. The City shall seek the highest investment return with the maximum security while meeting daily cash needs and conforming to the City Charter, the Public Funds Investment Act (Chapter 2256, Government Code as amended) and all other state and local statutes governing the investment of public funds. II. Scope This investment policy applies to all financial assets of the City as accounted for in the City's Comprehensive Annual Financial Report. These include General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Fiduciary Funds. All are pooled for investment purposes except debt service and debt service reserve funds. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The "prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent with this investment policy. (Section 2256.006, Government Code) Investment officials acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of responsibility for an individual security's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the City's investment activities shall be preservation and safety of principal, liquidity and yield. (Section 2256.006, Government Code) 1 City of Beaumont- Investment Policy A. Safety of principal The City of Beaumont has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seek to ensure the preservation of capital in the overall portfolio. To attain this objective diversification is required in order to eliminate an over-concentration of assets in one institution, maturity or type of securities. B. Liquidity The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with forecasted cash flow requirements and limited by investments in securities with an active secondary market. C. Yield The City's investment portfolio shall be designed with the objective of attaining a rate of return which is consistent with risk limitations and cash flow characteristics of the City's investments. V. Delegation of Authority Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds, investments, bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this investment policy which include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Each "investment official" shall be approved by resolution of City Council to invest the City of Beaumont's funds. As shown in exhibit "A", the City Manager, the Finance Officer and the City Treasurer are currently approved as investment officials of the City of Beaumont. Such approval of specific persons shall remain in effect until rescinded by the City Council or until termination of the person's employment by the City of Beaumont. Investment officials shall not deposit, withdraw, transfer or manage the funds of the City of Beaumont in a manner that is not consistent with the "prudent person" standard as described in section III of this policy. (Section 2256.005 (f)-(h), Government Code) 2 City of Beaumont- Investment Policy VI. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment officials shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City of Beaumont as described in Section 2256.005 (i)(1-3) of the Government Code. They shall also disclose any specific individuals who seek to sell investments to the City and are related to the employee within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council of the City of Beaumont. An ethics statement signed by each investment official is attached as exhibit `B". VII. Training Each investment official of the City of Beaumont shall attend as least ten (10) hours of training relating to investment responsibilities within 12 months after assuming such duties and shall continue to attend an investment training session not less than once every two years thereafter consisting of at least ten (10) hours of instruction. Training shall be in accordance with the Public Funds Investment Act and include education in investment controls, security risks, strategy risks, market risks, and compliance with state statutes governing the investment of public funds. All training shall be conducted by an independent source which has been approved by City Council. (Section 2256.008, Government Code) The Government Treasurers Organization of Texas, the Government Finance Officers Association of Texas, the Texas Municipal League and the University of North Texas are hereby approved as "independent sources" who may provide such training to investment officials. VIII. Selection of Financial Dealers, Institutions and Investment Pools Authorized investments shall only be purchased from those institutions included on the City's list of broker/dealers, financial institutions and investment pools as approved by the City Council. An "approved list", as shown in exhibit "C", shall be maintained by investment officials at all times and reviewed by the City Council on an annual basis. (Section 2256.025, Government Code) 3 City of Beaumont-Investment Policy Any business organization which seeks to execute investment transactions with the City of Beaumont shall provide a written instrument certifying that they have received and thoroughly reviewed the City's investment policy and have implemented reasonable procedures and controls in a effort to preclude investment transactions that are not authorized by this policy. The certification, as shown in exhibit "D", must be signed by a qualified representative of the business organization. Investment officials shall not buy any securities from a firm which has not filed this instrument. (Section 2256.005 (k)-(1), Government Code) A. Broker/Dealers The City shall select broker/dealers by creditworthiness and may include "Primary Government Securities Dealers" or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the National Association of Securities Dealers, Inc. (NASD) and be licensed by the State of Texas. The minimum net capital requirement is $1 9-99", 5,000,000 and the business must have been in operation for at least five years. Firms who desire to become approved bidders for investment transactions must supply the City with audited financial statements, a trading agreement and other information regarding their capabilities, experience, general reputation, size and capitalization. Each firm will be reviewed by investment officials and a recommendation made for approval by City Council. B. Public Depositories The City Council shall select a primary depository every three years. The primary depository as authorized by the City Council shall meet all requirements of the state law concerning depositories for municipal funds. (Chapter 105, Government Code) The institution offering the most favorable terms and conditions for the handling of City funds shall be selected as the depository. The City Council may also establish agreements with financial institutions under separate contract for additional services which are necessary in the administration, collection, investment, and transfer of municipal funds. (Section 105.018, Government Code) Financial institutions who desire to become approved bidders for investment transactions shall submit information similar to that of a broker/dealer as described above (section VIII-A). No deposit shall be made except in a qualified public depository as established by State Law. The City of Beaumont shall not place deposits or investments with Saving and Loan Associations or Credit Unions. 4 City of Beaumont- Investment Policy C. Investment Pools Investment officials may invest funds of the City of Beaumont through an eligible investment pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular which contains specific and detailed information and provide detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing participants and non-participants who do not have a business relationship with the pool. (Section 2256.016 - 2256.019, Government Code) Before selection, pools shall be thoroughly reviewed and evaluated by investment officials. Annually, a review of the financial condition and registrations of approved bidders will be conducted by investment officials. A current audited financial statement is required to be on file for each financial institution, broker/dealer or investment pool in which the City of Beaumont invests. IX. Authorized and Suitable Investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. (Section 2256.009-2256.019, Government Code) Suitable investments for the City of Beaumont are limited to the following: ♦ Direct Obligations of the United States T=ear or its agencies and instrumentalities which are non-callable and have v a maximum stated maturity date of 5 years or less. ♦ Certificates of deposit issued by approved depository banks as described above (section VIII-B) which have a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit Insurance Corporation, or their successors; or secured by obligations that are described in Section 2256.009(a) of the Government Code. ♦ Fully collateralized direct repurchase agreements with a defined termination date of 90 days or less which are secured by obligations of the United States or its agencies and instrumentalities and pledged with a third party other than an agent for the pledgor. Investment officials may invest in repurchase agreements through an approved primary government securities dealer or an approved depository bank as described above (section VIII-A, B). Each issuer of repurchase agreements shall be required to sign a master repurchase agreement. 5 City of Beaumont -Investment Policy ♦ No load money market mutual funds registered with and regulated by the Securities and Exchange Commission with a dollar weighted average stated maturity of 90 days or less whose assets consist exclusively of direct obligations of the United States and whose investment objectives include the maintenance of a stable net asset value of$1 per share. Money market mutual funds must provide the City with a prospectus and other information required by the Securities and Exchange Act of 1934 (Section 2256.014 (a), Government Code) and be specifically approved by City Council or purchased through the City's primary depository as an overnight investment tool. ♦ Approved investment pools as described above (section VIII-C) which are continuously rated no lower than AAA, AAA-m or an equivalent rating by at least one nationally recognized rating agency Ptid have a tteighted ..'.._:.--t1O .Hft fl nn X. Marking to Market All t-r�� securities and certificates of deposit will be purchased or sold after at least two (2) offers or bids are taken to verify that the City is receiving a fair market value or price for the investment. The market value shall continue to be monitored at least quarterly through on-line investment software to which the City subscribes, the wall street journal or some other recognized market pricing source. The City of Beaumont shall not obtain market pricing from business organizations who may engage in investment transactions with the City. XI. Collateralization Collateralization will be required on all deposits, certificates of deposit and repurchase agreements. The collateralization level shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or investment including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the collateral pledged clearly listed in the agreement. Collateral shall be reviewed monthly to assure that the market value of the securities pledged equals or exceeds the related deposit or investment balance. Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act (Chapter 2256 and 2257, Government Code). Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City of Beaumont shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: 6 City of Beaumont- Investment Policy ♦ Direct obligations of the United States or its agencies and instrumentalities. ♦ Direct obligations of this state or its agencies and instrumentalities. ♦ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States and excluding those mortgage backed securities considered a high-risk mortgage security as described by Section 2257.0025 of the Government Code as well as those of the nature described by section 2256.009 (b) of the Government Code. ♦ Other obligations which are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. ♦ Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. XII. Safekeeping and Custody Collateral shall be placed for safekeeping in a custodial account at the Federal Reserve Bank or at an institution not affiliated with a firm pledging collateral. All safekeeping arrangements shall be in accordance with a tri-party custodial agreement which clearly defines the responsibilities of each party and outlines the steps to be taken in order for the City to gain access to the collateral in the event of a "failure". The custodial agreement shall be executed between the City, the firm pledging the collateral and the custodial institution. All safekeeping receipts shall be delivered to the City and all collateral (whether a pledge or substitution) shall be formally accepted and released by City Council. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the safekeeping institution. Pool funds and mutual funds are excluded from this requirement. The security shall be held in the name of the City or on behalf of the City. The City shall not purchase securities from the firm or banking institution designated as the safekeeping institution. XIII. Diversification The City of Beaumont will diversify its investments to eliminate an over-concentration of assets in any one security type or institution. ♦ Up to ninety percent (90%) par of the portfolio may be invested in direct obligations of the r. —;Ted United States or its agencies and instrumentalities. 7 City of Beaumont - Investment Policy ♦ No more than fifty percent (50%) par of the portfolio may be invested in certificates of deposit or repurchase agreements. ♦ No more than eighty percent (80%) par of the portfolio may be invested in investment pools or money market mutual funds. ♦ No more than twenty five percent (25%) par of the portfolio may be invested with any one institution in certificates of deposit and/or repurchase agreements. Additionally, these investments shall not exceed ten percent (10%) of the capitalization of the financial institution. XIV. Investment Strategies The City of Beaumont shall maintain a separate investment strategy for each of the three fund types represented in the portfolio. (Section 2256.005,(d), Government Code) A. Pooled Fund Groups Investment strategies for pooled fund groups containing operating funds have as their primary objective to ensure that anticipated cash flows are matched with adequate investment liquidity. Securities purchased shall not have a final stated maturity date which exceeds two (2) years from the date of purchase without specific approval by the City Council. The dollar weighted average maturity of the portfolio shall not exceed 365 days as calculated using the stated final maturity dates of each security. B. Debt Service Funds Investment strategies for debt service funds shall have as their primary objective to ensure that investments mature as necessary to cover the debt service obligation on the required payment date. The stated final maturity date on securities purchased shall not exceed the debt service payment date unless excess funds are available. In that case, maximum maturities shall not exceed two (2) years from the date of purchase and the dollar weighted average maturity of the portfolio shall not exceed 365 days as is consistent with investment strategies for operating funds. C. Debt Service Reserve Funds Investment strategies for debt service reserve funds shall have as their primary objective to seek the highest investment return with maximum security in order to produce a dependable revenue stream to the appropriate fund. Securities shall be invested in accordance with specific bond ordinances and shall not have a stated maturity date which exceeds the final maturity date of the bonds. At no time shall maximum maturities exceed five (5) years from the date of purchase. 8 City of Beaumont - Investment Policy XV. Internal Control The City of Beaumont, in conjunction with its annual financial audit shall perform a compliance audit of management controls on investments and adherence to the City's investment policy. (Section 2256.005(m), Government Code) XVI. Performance Standards The City intends to pursue an active versus a passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles which is consistent with risk limitations and cash flow needs of the City . Given this strategy, the basis used by investment officials to determine whether market yields are being achieved shall be the average return on 90 day U.S. Treasury Bills. XVII. Reporting Investment officials shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position, performance, trading activity, interest earnings and collateral. A quarterly report shall be submitted to the City Manager, as Chief Executive Officer, and the City Council detailing investment transactions and performance for the reporting period in accordance with state law. (Section 2256.023, Government Code) The report shall be jointly prepared and signed by all investment officials. It shall include a summary statement prepared in compliance with generally accepted accounting principles for each fund type and a detailed listing that states the beginning market value, changes to the market value, ending market value and fully accrued interest for the period. In addition, investment officials shall report on adherence to the City's investment strategies as expressed in this policy. The quarterly reports shall be formally reviewed by the City's independent auditor on an annual basis and the results of the review shall be reported to City Council. (Section 2256.023, (d), Government Code) XVIII.Investment Policy Adoption The City's investment policy is hereby adopted by resolution of the City Council on September 26, 1995. The City Council shall review and approve any modifications to the policy on an annual basis. This policy serves to satisfy the statutory requirement to define and adopt a formal investment policy as set forth in Section 2256.005 of the Government Code. 9 ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING THE BOUNDARY OF BEAUMONT/NEDERLAND/JEFFERSON COUNTY ENTERPRISE ZONE AS ESTABLISHED IN ORDINANCES 97-40 AND 97-58 PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT; PROVIDING TAX INCENTIVES TO THE AMENDED AREA; REAFFIRMING THE AUTHORIZED REPRESENTATIVE TO ACT IN ALL MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF THE AREA DESCRIBED HEREIN AS AN ENTERPRISE ZONE AND REINVESTMENT ZONE AND FURTHER REAFFIRMING THE LIAISON TO ACT ON ALL MATTERS PERTAINING TO THE ENTERPRISE ZONE ACT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. BE IT ORDAINED BY THE CITY OF BEAUMONT: WHEREAS, by Ordinances 97-40 and 97-58, the City of Beaumont established an Enterprise Zone and a Reinvestment Zone; and, WHEREAS, the City Council of the City of Beaumont, Texas desires to create the proper economic and social environment to induce the investment of private resources and productive business enterprises located in severely distressed areas of the City and to provide employment to residents of such areas; and, WHEREAS, certain conditions exist in such area which represent a threat to the health, safety and welfare of the people of such area; and, WHEREAS, it is in the best interest of the City to nominate such area as an Enterprise Zone pursuant to the Texas Enterprise Zone Act, herein "The Act"; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: o:�cc�oan�wanr�o��-saErrr.00 Section 1. That the City hereby amends the boundary of our existing Enterprise Zone so that the total Enterprise Zone is described in Exhibit W attached hereto and incorporated herein for designation as the Enterprise Zone. Section 2. That the City Council finds that the Zone meets the qualifications of The Act. Section 3. That the City Council will provide certain tax incentives applicable to business enterprises in the zone which are not applicable throughout the City as follows: • The City shall refund to any qualified business located in the amount of tax paid under the Municipal Sales and Use Tax Act (Texas Tax Code, Chapter 321) by the business and remitted to the Comptroller of Public Accounts up to the maximum extend authorized by Sections 2303.505 and 2303.506 of the Act, and for a period determined by the city, but which shall not exceed five years. • The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in the zone. The level of abatement shall be based upon the extent to which the business either expends funds toward capital improvements or creates jobs for qualified employees, in accordance with the eico%ORDV4A cwCWN?4 ENT.W attached Exhibit "B" and with qualified employee being defined by the Act. Other incentives that may be negotiated in the zone on a case-by-case basis are as follows: (the first three being offered only in the zone): O Accelerated zoning and permit procedures. O Transfer of city-owned surplus land at below market prices for the public purpose of economic development. O The City will apply for training grants for new permanent jobs as available and appropriate to the industry. O Revolving loan and other general funding revenue as necessary to assist businesses creating new permanent jobs. O Capital improvements in water and sewer facilities and road repair. Section 4. That the area described in Exhibit"A° is designated as an Enterprise Zone and a Reinvestment Zone subject to the approval of the Texas Department of Economic Development. Section That the City Council directs and designates its Mayor as the City's authorized representative to act in all matters pertaining to the nomination and designation of the area described herein as an Enterprise Zone and a Reinvestment Zone. G-.= 7-WEMr.00 Section 6. That the City Council further directs and designates its City Manager as liaison for communication with the department to oversee zone activities and communications with qualified businesses. Section 7. That a public hearing to consider this ordinance was held by the City Council after notices required by The Act on November 21, 2000 at which public hearing all persons interested were allowed to speak. Section 8. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section All ordinances or parts of ordinances in conflict herewith, including conflicting portions of the City Budget, are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of , 2000. - Mayor- 0:1 G0RD{WCVVNEND%7-SENT.00 GENERAL DESCRIPTION OF BEAUMONT/NEDERLAND/ JEFFERSON COUNTY ENTERPRISE ZONE BEGINNING at the intersection of the south right of way of Interstate Highway 10 and the west bank of the Neches River; THENCE southward along the meanders of the Neches River to its intersection with the Extra-Territorial Jurisdiction(ETJ) line of the city of Beaumont; THENCE westerly and southerly along the Beaumont ETJ line to its intersection with the east right of way line of State Highway 347; THENCE southeasterly along the east right of way line of State Highway 347 to its intersection with the south right of way of Nederland Avenue in the city of Nederland; THENCE northeasterly along the south right of way of Nederland Avenue to its intersection with the west right of way of Ninth Street; THENCE southeasterly along the west right of way of Ninth Street to its intersection with the north right of way of Avenue B; THENCE southwesterly along the north right of way of Avenue B to its intersection with the west right of way line of State Highway 347; THENCE northwesterly along the west right of way line of State Highway 347 to its intersection with the south right of way line of United States Highway 69, 96,287;THENCE northwesterly along the south ri`_ht of«ay line of U.S. liighvvav 69. 96. 2871 to i;s intersection with :':e east rizht of%vav line of State Highway 124; THENCE southwesterly along the east right of way line of State Highway 124 to its intersection with the centerline of Garth Road;THENCE southeasterly and southwesterly along the centerline of Garth Road to its dead end including those properties contiguous with the street right of way on both sides of the street; THENCE northeasterly and northwesterly along the centerline of Garth Road to its intersection with the east right of way line of State Highway 124; THENCE southwesterly along the east right of way line of State Highway 124 to a point 4,000 west of East Clubb Road;THENCE northwesterly along a point perpendicular to State Highway 124 for a distance of 1,500 feet;THENCE northeasterly along a line 1,500 feet west of and parallel to State Highway 124 to its intersection with the south right of way line of East Clubb Road; THENCE easterly along the south right of way line of East Clubb Road to its intersection with the west right of way line of State Highway 124;THENCE northeasterly along the west right of way line of State Highway 124 to a point 9,100 feet southwest of Smith Road; THENCE northwesterly along a line 9100 feet southwest of,and parallel to Smith Road to its intersection with the east right of way line of Interstate Highway 10; THENCE northeasterly along the east right of way line of Interstate Highway 10 to its intersection with the north right of way line of U.S. Highway 69, 96, 287; THENCE southeasterly along the north right of way line of U.S. Highway 69, 96, 287 to its intersection with the west right of way line of Martin Luther King,Jr. (MLK)Parkway; THENCE northwesterly along the west right of way line of MLK Parkway to its intersection with the north right of way line of Florida Avenue;THENCE westerly along the north right of way line of Florida Avenue to its intersection with the west right of way line of Rolfe Christopher Drive; THENCE northerly along the west right of way line of Rolfe Christopher Drive to its intersection with the north right of way line of East Virginia Street;THENCE easterly along the north right of way line of East Virginia Street to its intersection with the east right of way line of MLK Parkway; THENCE southeasterly along the east right of way line of MLK Parkway to its intersection with the east right of way line of Olin Street/Southern Pacific Railroad spur, THENCE northeasterly along Olin Street/Southern Pacific Railroad spur to its intersection with the Beaumont city limits; THENCE northwesterly along the Beaumont city limits to its intersection with south right of way line of EXHIBIT "A" General Description of Beaumont/Nederland/Jefferson County Enterprise Zone Page Two Lavaca Street; THENCE westerly along the south right of way line of Lavaca Street to its intersection with the east right of way line of MLK Parkway;THENCE northerly along the east right of way line of MLK Parkway to its intersection with the south right of way line of Adams Street; THENCE westerly along the south right of way line of Adams Street to its intersection with the east right of way line of University Drive; THENCE southerly along the east right of way line of University Drive to its intersection with the north right of way line of Florida Avenue; THENCE westerly along the north right of way line of Florida Avenue to its intersection with the east right of way line of the Southern Pacific Rail Road; THENCE northwesterly along the east right of way line of the Southern Pacific Rail Road to its intersection with the north right of way line of Washington Boulevard; THENCE westerly along the north right of way line of Washington Boulevard to its intersection w th the east right of way line of Eleventh Street; THENCE northerly along the east right of way line of Eleventh Street to its intersection with the north right of way line of Roberts Street; THENCE westerly along the north right of way line of Roberts Street to a point 500 feet west of Eleventh Street; THENCE northerly along a line 500 feet west of and parallel to Eleventh Street to its intersection with the south right of way line of Blanchette Street; THENCE easterly along the south right of way line of Blanchette Street to its intersection with the east right of way line of Eleventh Street; THENCE northerly along the east right of way line of Eleventh Street to its intersection with the south right of way line of College Street;`THENCE westerly along the south right of way line of College Street to its intersection with the east right of way line of IH-10; THENCE northerly along the east right of way line of IH-10 to its intersection with the east right of way line of US 69, 96, 287;THENCE northerly and northwesterly along the east right of way line of US 69, 96, 287 to its intersection with the south right of way line of East Lucas Drive; THENCE northeasterly along the south right of way line of East Lucas to its intersection with the west right of way line of Concord Road; THENCE southeasterly along the west right of way line of Concord Road to its intersection with the north right of way line of Pinkston Drive;THENCE southwesterly along the north right of way line of Pinkston Drive to a point 1000 feet west of the west right of way line of Concord Road;THENCE northwesterly along a line 1000 feet west of and parallel to Concord Road to its intersection with the south right of way line of East Lucas Drive;THENCE southwesterly along the south right of way line of East Lucas Drive to its intersection with the east right of way line of US 69,96,287; THENCE southeasterly and southerly along the east right of way line of US 69, 96,287 to its intersection with the east right of way line of IH-10; THENCE southerly along the east right of way line of IH-10 to its intersection with the south right of way line of College Street; THENCE easterly and northeasterly along the south right of way line of College Street to its intersection with the east right of way line of Jefferson Street;THENCE northwesterly along the east right of way line of Jefferson Street to its dead end west of Bonham Street;THENCE northerly along a line projected from the east right of way line of the dead end of Jefferson Street to the east right of way line of Magnolia Street at its intersection with Laurel Street;THENCE northerly along the east right of way line of Magnolia Street to its intersection with the south right of way line of Liberty Street; THENCE easterly along the south right of way line of Liberty Street to its intersection with the east right of way line of Main Street;THENCE northwesterly along the east right of way line of General Description of Beaumont/Nederland/Jefferson County Enterprise Zone Page Three Main Street to its intersection with the north right of way line of Calder Street;THENCE westbound along the north right of way line of Calder Street to its intersection with the east right of way line of Pearl Street; THENCE northerly along the east right of way line of Pearl Street to the east right of way line of the Interstate Highway 10 on-ramp;CONTINUING northerly and easterly on Interstate Highway 10 to its intersection with the west bank of the Neches River and the POINT OF BEGINNING. CKENTERZONE CITY OF BEAUNIONT TAX ABATEMENT POLICY PHILOSOPHY Tax abatement is an economic development strategy to mitigate the substantial costs usually associated with the construction of a new or expansion of an existing facility that enhances the economic and/or social base of the community. Because property tax revenue is the means to provide vital community services, it is the position of the City of Beaumont that tax abatement be utilized sparingly, and only after careful consideration of the economic impact on the community. Nothing herein shall imply or warrant that the City of Beaumont is under any obligation to provide tar abatement to any applicant. ELIGIBILITY This policy document provides criteria for eligibility and policy implementation as adopted by the City Council of the City of Beaumont, in accordance with the Texas Tax Code, Chapter 312, otherwise known as the Property Redevelopment and Tax Abatement Act(Act), governing property tax abatement agreements. All applications will be considered on a case-by-case-basis. The following types of enterprises are eligible to apply for tax abatement. • Industrial/Manufacturing - activities such as engaging in the mechanical or chemical transfon nation of materials or substances into new products;assembling component parts of manufactured products, if the new product is neither a structure nor other fixed improvement; and blending of materials, such as lubricating oils, plastic toxins or liquors. • Distribution - activities described as the wholesale distribution of durable and/or nondurable goods, such as motor vehicles, furniture, lumber and other construction materials,professional and commercial equipment, electrical goods, hardware and plumbing and heating equipment. paper and paper products. apparel, and groceries. • Central administrative office services -examples include performing management, support services or telecommunication functions for related entities. • Properties subject to a Texas Natural Resource Conservation Commission(TNRCQ Voluntary Cleanup Program Agreement Eligible property for which abatement may be granted includes non-residential real property and/or tangible personal property located on the real property other than that personal property that was located on the real property at any time before the abatement agreement is executed. Abatement 1 of taxes shall be the value of real or personal property located on the property for each year of the Tax Abatement Agreement only to the extent that the value for the year exceeds the value for the year in which the agreement was executed. Excluded from eligible personal property are inventory or supplies. A. The City of Beaumont herein ("Governmental Entity") adopts these guidelines and criteria for tax abatement("Policy")for real property owners who propose a project("Project")to develop, redevelop and improve taxable qualifying real property("Real Property"). The Governmental Entity is willing to provide a subsidy to a Real Property Owner in the form of a special exemption from certain taxes provided the Real Property Owner agrees to accept and abide by this Policy. If the Real Property owner leases said property to a third party: the Governmental Entity may require assurances that the conditions outlined in this policy for the Real Propem• Owner will be met. B. The abatement of ad valorem taxes on Real Property- will be evaluated and determined according to the following formula and will be subject to the remaining terms of this policy. NUMBER OF NEW PERCENT OF CREATED CAPITAL COST OF FULL-TIME JOBS VALUE TO BE ABATED THE PROJECT (OR) TO BE CREATED 0% 0 - 1,000,000 Not Applicable 30% 1,000,001 - 2,500,000 26-50 40% 2,500,001 - 5,000,000 51-75 50% 5,000,001 - 10,000,000 76-100 Individual Case Basis 10,000,001 or more 101 or more A full-time equivalent employment position is one that provides at least 2,080 hours annually within the City's taxing jurisdiction. The number of full-time equivalent employment positions is determined by adding the total number of hours worked and/or actual paid leave(such as vacation, sick leave,jury duty)of all employees, less overtime hours, and dividing that sum by 2,080. All existing jobs as well as those created must be maintained throughout the term of a tax abatement agreement. C. With respect to a Project with a minimum construction cost of 10,000,001, each tax abatement request «•ill be individually reviewed by the Governmental Entity and approved or declined based on the merits of the application. The percentage of taxes abated is one hundred percent abatement until Project Completion, not to exceed the first and second Tax Year. The percentage of taxes abated for the first through fifth Tax Years next following Project Completion shall be that percentage of abatement granted by the Governmental Entity at the time of application. With respect to a Project under $10,000,000, the period of abatement is seven years; limited, however, to no more than five Tax Years next following Project Completion. 2 The period of time that the taxes are abated will be referred to as the "Abatement Period". The "first Tax Year" is defined as the first full calendar year next following the commencement of construction of the Project. PROPERTIES SUBJECT TO VOLUNTARY CLEANUP AGREEMENT Tax abatement may apply to properties that are subject to a Voluntary Cleanup Program Agreement as executed with the Texas Natural Resource Conservation Commission(TNRCC)in accordance with §361.601 et. seq. of the Health and Safety Code for the cleanup or removal of a hazardous substance or contaminant from the environment, as follows: Capital Expenditure Jobs Created Abatement Years Minimum of 5250,000 10 100% 1 75% 2 ()0 3 Tax abatement for such properties shall not exceed four years and will take effect on January 1 of the year following the date the property owner receives a certificate of completion for the property. The City of Beaumont may cancel or modify the agreement if it determines that the use of the land is changed from the use specified in the certificate of completion. and the new use may result in an increased risk to human health or the environment. D. Prior to beginning the actual construction work on the Project proposed for tax abatement, the Real Property Owner requesting tax abatement within a lawfully created reinvestment zone must: (1) Provide the Governmental Entity with(a)a description of the Project clearly defining and delineating the work to perform; (b) a statement agreeing to expend a designated amount ("Project Cost")for the Project and, if the abatement is based on Required Jobs,a separate statement agreeing that the required minimum number of full-time jobs%%ill be created("Required Jobs)and maintained during the term of the Contract;(c)an explanation as to how the Project will provide a long term significant positive economic benefit to the community,the Governmental Entity and its taxpayers; (d) information as to what attempt will be made to utilize Jefferson County contractors and workers; and (e) information as to what attempt will be made to utilize Jefferson County minority contractors and workers. (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. (3) Agree to execute a Contract with the Governmental Entity containing the covenants and conditions required by the Governmental Entity. 3 E. Should the Governmental Entity agree to grant an abatement to the Real Property Owner after compliance with the procedure outlined above, then: (1) Subject to the terms and conditions of the Contract, a stipulated percentage as set forth above of those particular ad valorem real property taxes ("Taxes") which are generated by virtue of fair market value created"("Created Value")solely due to the construction and completion of the Project on the real Property will be abated. (2) The Period of Construction ("Construction Period") for the Project shall not go beyond the end of the second Tax Year. During the Construction Period the Real Property Owner must actually expend the Project Cost. (3) Within six months next following the end of the Construction Period, the Project must be operational; i.e., it must actively serve the purpose for which it is designed. (a) Not complete at the Minimum Cost by the end of the Construction Period; or (b) Is timely completed at the Minimum Cost but is not operational within six months next following the end of the Construction Period; or (c ) Is timely completed but the Required Jobs are not created or maintained as set forth in paragraph (B); or (d) Is timely completed at the Minimum Cost, is operational within six months next following the end of the Construction Period and, if applicable,meets the job requirements, but its operations are discontinued for a continuous period of twelve months,then the Contract shall terminate with respect to the Project and so shall the abatement of Taxes for the Created Value of the Project. The Taxes otherwise abated with respect to the Project shall be paid to the Governmental Entity on the date specified by law,or,if such date has passed, then within sixty (60) days of the accelerated termination of the Abatement Period. (5) Employees and/or designated representatives of the Governmental Entity will have access to the Project during the term of the contract for inspection purposes so as to deterniine if the terms and conditions of the Contract are being met. All inspections will be made only after the giving of twenty-four(24)hours prior notice and will only be conducted in such a manner as to not unreasonably interfere with the construction and/or operation of the Project. All inspections will be made with one or more representatives of the Real Property Owner,and in accordance with its safety standards. 4 (6) In the event that(a)The Real Property Owner allows its ad valorem taxes owed the Governmental Entity to become delinquent and faits to timely and properly follow the legal procedures for their protest and/or contest;or(b) the Real Property Owner violates any of the terms and conditions of the Contract,and fails to cure during the Cure Period(as hereafter provided), then the Contract may be terminated by the Governmental Entity,and all taxes otherwise abated by virtue of the Contract will be recaptured and paid to the Governmental Entity by the Real Property Owner within sixty(60)days of the termination. (7) The term "Base Year Value" as used herein is the market value of all realty improvements of the Real Property Owner located within the taxing entity as of January 1 of the year a contract is executed less the abated value of all projects granted the Real Property Owner by the taxing entity for the"Base Year". The term"Taxable Value"is determined by deducting the amount of any abatements granted for that Tax Year from the appraised market value of all realty improvements of the Real Property Owner located within that taxing entity. If on January 1 st of any Tax Year all of the legally determined realty improvements owned by the Real Property Owner :ir: tie *ur,__. :i,, i of the Go�emnic-ta! Frtit� i� leis thin the lec211%, determined f3a e �'e r Value and.'or In the event that the Real Properi% 0%% ner ti'Cnr a� talorc ll ,axc-s On property otherwise payable to the Governmental Entity by participating in a foreign trade zone or by having otherwise taxable property exempted pursuant to special legislation,e.g., the"Freeport Amendment"("Special Treatment"),then the abatement otherwise available shall be reduced by one dollar for each dollar that the taxable value is less than the Base Year Value and,also,for each dollar of tax reduction attributable to Special Treatment;provided,however,that in no event shall the offset exceed the Created Value of the Project otherwise subject to the abatement of Taxes. (8) Notwithstanding any other provision herein to the contrary in the event that the Governmental Entity adopting this Policy is required to adopt a tax rate which would subject the Entity to a tax rollback election under Section 26.07 of the Property Tax Code,and this increase is caused by requirements set forth by the State;mandated by the judiciary;expenses required to repair, rebuild or rehabilitate improvements which are damaged or destroyed;or due to a significant decline in value of a major industrial complex located in the jurisdiction of the Entity,then the Entity may allocate the taxable value necessary to reduce the actual rate below the rollback rate to the Owners of abated property based on the Owner's prorata share of the total abated value for the current tax year. (9) Should the Governmental Entity determine that the Real Property Owner is in default in the terms and conditions of the Contract. then the Governmental Entity will notify the Real Property Owner at the address stated in the Contract of such claimed default,and if such is not cured within sixty(60)days from the date of such notice("Cure Period'),the Contract may be terminated by the Governmental Entity. Any notice of default shall be in«citing and shall be given by personal delivery or by certified mail,return receipt requested. In the event the notice is affected by personal delivery, the date and hour of actual delivery shall be the time and date of such notice to the Business. Absent a postal strike or the stoppage of the mails, in the event of delivery of notice by registered or certified United States mail, the date and hour following 48 hours after the date and hour at which the sealed envelope containing the notice is deposited in the United States mail, 5 properly addressed,and with postage prepaid, shall be the time and date of such notice to the Real Property Owner. F. The Governmental Entity adopting this Policy shall have the final decision with respect to its interpretation and, also, as to whether the minimum standards set forth above have been met by the Real Property Owner. G. This Policy shall terminate on the second anniversary from the date of its adoption by the Governmental Entity. APPLICATION For additional information on tax abatement, contact the City of Beaumont's Department of Economic Development at(409)880-3708. In determining ho%,.-and with whom tax abatement will be utilized, the City will examine the potential return on the public's investment, including net jobs oft1 w- c\rar.:ion impact upon existing industries and action by the Beaumont City Council. To the extent permitted by law, information provided by an applicant in connection with a request for tax abatement is confidential and not subject to public disclosure until the tax abatement agreement is executed. 6 3 PUBLIC HEARING: Expansion of the Beaumont/Nederland/Jefferson County Enterprise Zone City of Beaumont le Council Agenda Item A C b TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Economic Development Director MEETING DATE: November 21. 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Consider approving an ordinance amending Ordinances 97-40 and 97-58 to expand the Beaumont/Nederland/Jefferson County Enterprise Zone to allow West Telemarketing Corporation located in the Village Shopping Center to be eligible for state and local incentives. RECOMMENDATION Administration recommends amending Ordinances 97-40 and 97-58 to expand the Beaumont/Nederland/Jefferson County Enterprise Zone. BACKGROUND In August of 1997, the City Council adopted Ordinance 97-40 creating the Beaumont/Nederland/Jefferson County Enterprise Zone. In November of 1997, the City Council adopted Ordinance 97-58 which amended Ordinance 97-40 by enlarging the Enterprise Zone by extending the boundary 9,100 feet southwest of Smith Road. An enterprise zone is an area designated by the Texas Department of Economic Development that offers a combination of state and local economic incentives in order to promote economic development, provide employment opportunities, and encourage new investment in economically distressed areas. The existing Beaumont/Nederland/Jefferson County Enterprise Zone will be expanded to include the Village Shopping Center located on Concord Road at East Lucas. This area meets the guidelines of the Texas Enterprise Zone Act. A public hearing is required before Council takes action on considering the new ordinance expanding the Enterprise Zone. All the incentives to be offered in the zone must be "held out" and discussed at the public hearing. Tax incentives applicable to business enterprises in the zone which are not applicable throughout the City may include sales and use tax refunds on machinery and equipment and ad valorem property tax abatements. Other incentives that may be negotiated in the zone on a case-by-case basis include accelerated zoning and permit procedures; transfer of city-owned surplus land at below market prices for the public purpose of economic development; applying to the State for training grants for new permanent jobs as available and appropriate to the industry; funding to assist businesses creating new permanent jobs and capital improvements in water and sewer facilities and road repair. BUDGETARY IMPACT There is a $500 application fee which will be paid to the Texas Department of Economic Development. PREVIOUS ACTION None. SUBSEQLTEIT ACTION None. RECOMMENDED BY City Manager and Economic Development Director. RECOMMENDED MOTION Consider approving an ordinance amending Ordinances 97-40 and 97-58 to expand the Beaumont/Nederland/Jefferson County Enterprise Zone to allow West Telemarketing Corporation located in the Village Shopping Center to be eligible for state and local incentives. � c City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 21, 2000 1:30 P.M. CONSENT AGENDA * Approval of minutes a 7 * Confirmation of committee appointments q A) Approve an amendment to Section 13-16 of the Code of Ordinances relating to health fees B) Approve a three-month contract for the purchase of personal computers and laptop computers C) Approve funding in the amount of$25,000 for the Partnership of Southeast Texas a�d D) Approve a resolution supporting state legislation to allow Photographic Red Light Enforcement in Texas E) Authorize the acceptance of a general utility easement F) Approve amendments to the City's approved list of broker/dealers and approved list of investment pools p� G) Authorize signatories for the Blue Cross Employees Benefits Account at Hibernia National Bank H) Approve an annual contract for the purchase of tower rock used for street patching and pothole repair Approve a one year contract for the purchase of corrugated polyethylene pipe for use by the Public Works Department, Streets and Drainage Division J) Approve a contract for the purchase of cement stabilized base for use by the Public Works Department, Streets and Drainage Division K) Approve a resolution to reject the bid received for the Blossom Street Pavement Improvement Project L) Accept improvements constructed in Willow Creek Country Club Estates, Phase II, Section X-A l M) Authorize the settlement of a lawsuit CONSENT AGENDA NOVEMBER 21, 2000 * Committee Appointments Deeann Cisco would be appointed to the Beaumont Advisory Commission for Prevention of Child Abuse and Neglect. The term will commence November 21, 2000 and expire November 20, 2002. (Councilmember Becky Ames) A) Approve an amendment to Section 13-16 of the Code of Ordinances relating to In January 2000, the Health Department requested that City Council increase a number of the existing health fees. At that time, kennel license fees were inadvertently omitted from the fee schedule. Administration recommends that the kennel fees be restored to previous levels with no increase. A copy of the staff memorandum is attached for your review. B) Approve a three-month contract for the purchase of personal computers and laptop computers Administration recommends a three-month contract for the purchase of personal computers from Personal Computer Depot of Houston and laptop computers from Gateway of North Sioux City, South Dakota in the estimated amount of$84,281. The personal and laptop computer purchases will result in approximately 220 upgrades throughout the City and the retirement of 44 pieces of equipment. Obsolete or inoperative equipment will be disposed of in accordance with the City's surplus policy. A copy of the staff memorandum is attached for your review. C) Approve funding in the amount of$25,000 for the Partnership of Southeast Texas Administration recommends approving $25,000 for the Partnership of Southeast Texas to help strengthen the economy of Southeast Texas through increased cooperative efforts among the nine counties in the region. Funding is available for the Partnership of Southeast Texas in the FY 2001 Budget. A copy of the staff memorandum is attached for your review. D) Approve a resolution supporting state legislation to allow Photographic Red Light Enforcement in Texas Administration recommends approval of a resolution supporting legislation to allow Photographic Red Light Enforcement in Texas. In 1998, the National Highway Safety Administration estimated that more than 1.3 million crashes occur annually at traffic signals in the United States, comprising approximately 20% of total crashes nationwide. During the 76th Legislative Session in 1999, House Bill 1152 was filed to allow communities to monitor intersections through photographic traffic control systems. However, after extensive debate, House Bill 1152 was not passed. This resolution demonstrating the support of the City of Beaumont would assist in securing passage of legislation enabling cities to establish Photographic Red Light Enforcement programs. A copy of the staff memorandum is attached for your review. E) Authorize the acceptance of a general utility easement E. G. Cordts, Jr. whose property is located on the corner of Fourth Street and Florida Avenue, has agreed to convey a ten-foot wide Utility Easement to the City of Beaumont on his property described as being out of and part of Block 42 of the M.C. Cartwright Subdivision. Administration recommends accepting the easement. F) Approve amendments to the City's approved list of brokerldealers and approved list of investment pools -administration recommends addin_c Coastal Securities. JW Genesis Financial Services. Inc. approved list of broker/dealers. Also, the Administration recommends adding TexasTER-NI, a Local Government Investment Pool to the City's approved list of investment pools. The City of Beaumont's approved list of broker/dealers, financial institutions and investment pools is reviewed annually by investment officials in conjunction with the investment policy review. A copy of the staff memorandum is attached for your review. G) Authorize signatories for the Blue Cross Employees Benefits Account at Hibernia National Bank Administration requests approval of Denise A. Bujak, Brian A. Kennedy, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on the above account. Signatories on all other City of Beaumont accounts for banking or investment purposes will remain unchanged. A copy of the staff report is attached for your review. H) Approve an annual contract for the purchase of tower rock used for street patching and pothole repair Administration recommends approval of an annual contract with Bo-Mac Contractors of Beaumont for purchasing tower rock with an estimated total annual expenditure of$34,625. Tower rock is a limestone-based aggregate used for street patching and pothole repair. Funds are available for this expenditure in the Street & Drainage Division's operating budget. A copy of the staff memorandum is attached for your review. n Approve a one year contract for the purchase of corrugated polyethylene pipe for use by the Public Works Department, Streets and Drainage Division Administration recommends approval of an annual contract with Lumberton Culvert Sales with an estimated total expenditure of$80,165. The pipe is utilized by the Streets and Drainage Division to replace driveway pipe during clean out of city ditches. Existing pipe which is damaged, improperly sized, or not set at correct grade is replaced as needed. A copy of the staff memorandum is attached for your review. J) Approve a contract for the purchase of cement stabilized base for use by the Public Works Department, Streets and Drainage Division Administration recommends approval of an annual contract with Trinity Aggregate Distribution of Beaumont with an estimated total annual expenditure of$79,750. The material is used in the repair and maintenance of driveway culverts and storm sewers. A copy of the staff memorandum is attached for your review. K) Approve a resolution to reject the bid received for the Blossom Street Pavement Improvement Project Administration recommends the rejection of the one bid received for the Blossom Street Pavement Improvement Project in the amount of$307,896.60 and to rebid the project at a later date. This amount is 40% over the original estimated construction cost and will have a significant impact on the funds available for the year 2000 Street Rehabilitation Program. A copy of the staff memorandum is attached for your review. I_f :\crept intpro%ement� constructed in « ilkw Gountr% Club Eltate�. 11. Section X-A Administration recommends accepting maintenance of the street, storm sewer, water and sanitary sewer improvements in Phase II, Section X-A. The improvements in the subdivision passed final inspection from all entities involved on November 15, 2000. A copy of the staff memorandum is attached for your review. 1W Authorize the settlement of a lawsuit The lawsuit styled Deborah Savant I Lone Star Overnight would be settled in the amount of $19,000. Council authorized the settlement of this lawsuit in Executive Session on November 7, 2000. A copy of the staff memorandum is attached for your review. A City of Beaumont Council Agenda Item � c TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Ingrid Holmes, Public Health Director MEETING DATE: No,�-ember 21, 2000 AGENDA MEMO DATE: November 7, 2000 REQUESTED ACTION Consider an amendment to the existing health fees as specified in Chapter 13; Sec. 13-16. RECOMMENDATION Administration recommends that the City Council approve restoring kennel fees to the existing health fees. BACKGROUND In January 2000, the Health Department requested that Council increase a number of the existing health fees. At that time, kennel license fees were inadvertently omitted from the fee schedule. In accordance with the Beaumont Code of Ordinances, Chapter 5, Sec. 5-17(a)a person operating a kennel must obtain a license from the city by paying a yearly license fee. Staff is recommending that the kennel fees be restored to previous levels with no increase. Proposed fees are as follows: Kennel fees: (1) For any kennel, where less than fifteen (15) animals are kept, per year or fraction thereof...................................................................................................$10 (2) For any kennel keeping fifteen (15) to twenty-five (25) animals, inclusive, per year or fraction thereof.................................................................................$15 (3) For any such kennel keeping over twenty-five (25) animals, per year or fraction thereof.....................................................................................................$25 City Council Page 2 November 7, 2000 BUDGETARY IMPACT None. PREVIOUS ACTION Increased health fees were proposed to Council on January 4, 2000. At that time, staff was not proposing an increase in existing kennel fees; kennel fees were inadvertently omitted from the fee schedule. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, and Public Health Director. RECOMMENDED MOTION Approve/deny amendments to the ordinance, adding kennel fees as presented. B City of Beaumont ti 7sij Council Agenda Item ACEZEMEMoL TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 31. 2000 AGENDA MEMO DATE: November 9, 2000 REQUESTED ACTION: Council consideration of a (3) month contract for personal computers and laptop computers. RECOMMENDATION Administration recommends a three (3) month contract for the purchase of personal computers from Personal Computer Depot, Houston, Texas, and laptop computers from Gateway, North Sioux City, SD, for the Information Services Division (IS) in the estimated amount of$84,281. BACKGROUND Bids were received from seventeen(17)vendors for a three (3) month contract for the purchase of personal computers and laptop computers. Pricing was requested for 53 personal computers with a minimum 700 Megahertz (MHz) processor, 13 Gigabyte (GB) Hard Drive, and 128 Megabyte (MB) Random Access Memory (RAM). Pricing was requested for eleven (11) laptop computers with a minimum of 600 MHz processor, 6 GB hard drive,and 128 MB of RAM. A bid tabulation is attached. All personal computers and laptop computers will be ordered and distributed by the IS Division to departments identified as key high end users. Existing systems will be transferred to users with lesser requirements. The personal and laptop computer purchases will result in approximately 220 upgrades throughout the City and the retirement of forty-four(44)pieces of equipment. Obsolete or inoperative equipment will be disposed of in accordance with the City's surplus policy. Personal computers and laptop will be warranted for a period of three years with onsite service provided during the first year. Purchase of Personal Computers and Printers November 9, 2000 Page 2 Specifications stated that an evaluation would be performed on personal computers and laptops. Evaluation included an audit of components to determine if minimum specifications were met, running software to test hard drive speed in milliseconds,testing the IBM 5250 enhanced emulation card, and testing of the token ring card in a client access environment. Testing of the sample units provided by TRS, Inc., Multiwave, and CDW, Inc. resulted in the following: TSR, Inc., Maple Shade,NJ • Personal Computer - Computer failed to meet minimum hard drive capacity of I' monitor failed to meet EPA requirements. mouse, mouse pad, mouse soft,,vare, operating software, and antivirus software were not included with the computer. • Laptop Computer - Laptop failed to meet minimum hard drive capacity of 6 GB. Multiwave, Industry, CA • Personal Computer - Company failed to provide a loaner, failed to meet response time, and failed to meet warranty requirements. CDW Government, Inc., Vernon Hills, IL • Laptop Computer-Failed to provide a loaner and failed to provide a local dealer for onsite repairs. The personal computer submitted by Personal Computer Depot, Houston, TX, and the laptop computer submitted by Gateway, N. Sioux City, SD meet or exceed all specifications. BUDGETARY IMPACT Funds for the purchase of these personal and laptop computers are budgeted in the Capital Reserve Fund, Water Fund, Police Confiscated Goods Fund, Solid Waste Fund, and the Hotel Occupancy Fund (Convention and Tourism). PREVIOUS ACTION None. SUBSEQUENT ACTION None. Purchase of Personal Computers and Printers November 9, 2000 Page 3 RECOMMENDED BY City Manager and Central Services Director. RECOMMENDED MOTION Approve/Deny a three (3) month contract for personal computers from Personal Computer Depot at a cost of $1,139 each and a three (3) month contract for laptop computer from Gateway at a cost of $2,174 each. Purchase of Personal Computers and Printers November 9, 2000 Page 4 BID TABULATION FOR PERSONAL AND LAPTOP COMPUTERS BID OPENING DATE: OCTOBER 9, 2000 BID NUMBER: EF1001-04 PERSONAL COMPUTERS VENDOR NAME UNIT PRICE TOTAL PRICE TSR, Inc., Maple Shade, NJ $ 966 $ 52,788 Multiwave, Industry. CA $ 1,111 $ 58,883 Personal Computer Depot, Houston, TX S 1.139 S 60.36 Sigma Systems, Carrollton, TX $ 1,245 $ 65,985 Discover It, Nederland, TX $ 1,330.68 $ 70,526.04 Gateway, North Sioux City, SD $ 1,421 $ 75,313 SOS Computers LLC, Orange, TX $ 1,506 $ 79,818 Education Vision, Inc., Atlanta, GA $ 1,585 $ 84,005 Insight, Tempe, AZ $ 1,612.10 $ 85,441.30 C & I Computer, Port Arthur, TX $ 1,706 $ 90,418 Hawk Communications, China, TX $ 1,706.25 $ 90,431.25 Electrotex, Beaumont, TX $ 1,736.61 $ 92,040.33 Entre Business Technology, Beaumont, TX $ 1,777 $ 94,181 CDW Government, Inc., Vernon Hills, IL $ 1,809.77 $ 95,917.81 PC Connection, Merrimack, NH $ 1,850 $ 98.050 MSCI/GEM, Cleveland, OH $ 2,005 $ 106,265 Southern Computer, Merietta, GA $ 2,658 1 $ 140,874 Purchase of Personal Computers and Printers November 9, 2000 Page 5 LAPTOP COMPUTERS VENDOR NAME UNIT PRICE TOTAL PRICE TSR, Inc., Maple Shade, NJ $ 1,678 $ 18,458 CDW Government, Inc., Vernon Hills, IL $ 2,093.93 $ 23,033.23 Gateway, North Sioux City, SD $ 2,174 $ 23,914 Insight, Tempe, AZ $ 2,176.58 $ 23,942.38 Ham-k Communications. China, TX S 2.220 S 24.420 PC Connection, Merrimack, NH $ 2,288 $ 25,168 Discover It, Nederland, TX $ 2,385.23 $ 26,237.53 SOS Computers LLC, Orange, TX $ 2,440 $ 26,840 C & I Computer, Port Arthur, TX $ 2,450 $ 26,950 Entre Business Technology, Beaumont, TX $ 2,508 $ 27,588 MSCI/GEM, Cleveland, OH $ 2,565 $ 28,215 Education Vision, Inc., Atlanta, GA $ 2,735 $ 30,085 Multiwave, Industry, CA $ 3,320 $ 36,520 Southern Computer, Merietta, GA j $ 3,610 j $ 39,710 c ti!W^7121 W C it Y of Beaumont Council Agenda Item -a OL TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Economic Development Director MEETING DATE: November 21. 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Consider funding in the amount of$25,000 for the Partnership of Southeast Texas. RECOMMENDATION Administration recommends approving $25,000 for the Partnership of Southeast Texas to help strengthen the economy of Southeast Texas through increased cooperative efforts among the nine counties in the region. BACKGROUND City Council approved funding for the Partnership of Southeast Texas in FY 2000 in the amount of$25,000. The Partnership of Southeast Texas is a nonprofit, economic development corporation that works to develop cooperative efforts on a regional basis. Its purpose is to facilitate the retention and creation of jobs in a nine-county area that includes Chambers, Hardin, Jasper, Jefferson, Liberty, Newton, Orange, Tyler Counties and the Bolivar Peninsula in Galveston County. BUDGETARYIMPACT Funding is available for the Partnership of Southeast Texas in the FY 2001 Budget. PREVIOUS ACTION Council approved funding for the Partnership of Southeast Texas in the amount of$25,000 in FY 2000. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Economic Development Director. RECOMMENDED MOTION Approve/Deny funding in the amount of$25,000 for the Partnership of Southeast Texas. D MAW City of Beaumont ev- ,a c Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED: Tom Scofield, Chief of Police MEETING DATE: November 21, 2000 AGE`DA ME:110 DATE: No%ember 2. 000 REQUESTED ACTION: Consider a resolution supporting state legislation to allow Photographic Red Light Enforcement in Texas. RECOMMENDATION Administration recommends approval of the resolution supporting legislation to allow Photographic Red Light Enforcement in Texas. BACKGROUND Motor vehicle crashes at traffic signals are a large and growing problem. In 1998, the National Highway Safety Administration estimated that more than 1.3 million crashes occur annually at traffic signals in the United States, comprising approximately 20% of total crashes nationwide. One counter measure against red light running crashes is the use of cameras to supplement conventional police traffic enforcement. A red light camera system is connected to the traffic signal and two sensors in the pavement. The system monitors the traffic signal and the camera is triggered by vehicles passing over the sensors at a specific elapsed time after the signal has turned red. In addition to photographing alleged violations, the camera has the ability to record the date, time of day, time elapsed since the beginning of the red light signal and speed of the vehicle. Tickets could be sent by mail to owners of violating vehicles based on a review of photographic evidence. Red light cameras are effective in modifying driver behavior and related crashes. Surveys done at various locations in US cities indicate that installation of the camera systems have a positive impact in reducing the number of crashes at intersections. Additionally, it is common knowledge that the perceived risk of detection is one of the most important factors in traffic law enforcement. According to the Texas Department of Public Safety, 17,643 accidents occurred in 1998 as the result of drivers running red lights. Out of those accidents, 81 individuals were killed. During the 76th Legislative Session in 1999, House Bill 1152 was filed to allow communities to monitor intersections through photographic traffic control systems. However, after extensive debate, House Bill 1152 was not passed. Similar legislation is expected to be introduced in the 077th Session, but not without controversy. This resolution demonstrating the support of the City of Beaumont regarding legislation enabling Photographic Red Light Enforcement would assist in securing passage of legislation enabling cities to establish Photographic Red Light Enforcement programs. As of July, 2000 nine states had passed enabling legislation allowing Photographic Red Light Enforcement programs. BUDGETARYIMPACT None unless the city %could decide to implement Photographic Red Light Enforcement in Beaumont after passage of a state statute. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Chief of Police. RECOMMENDED MOTION Accept/Deny the Resolution supporting legislation to allow Photographic Red Light Enforcement in Texas. E jue10ftr City of Beaumont I Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: November 21, 2000 .-AGENDA NIE110 DATE: November 15. 2000 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a general utility easement. RECOMMENDATION E.G. Cordts, Jr. whose property is located on the corner of Fourth Street and Florida Avenue, has agreed to convey a ten foot wide Utility Easement to the City of Beaumont on his property described as being out of and part of Block 42 of the M.C. Cartwright Subdivision. Administration recommends acceptance of the easement. BACKGROUND The owner of this property donated the easement to enable the City to maintain the existing sanitary sewer line. The original line was not in a dedicated utility easement. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny authorizing the acceptance of a general utility easement. ,orSUBJECT GL I A OND MA P D N T ACCEPTANCE A b V " LEA OF R i RAN v EASEMENT DONATION LUCIdLE "iUCA CAR PROPOSED s TEN FOOT WIDE y � W GENERAL UTILITY EASEMENT id I�s>H id -,"" k ' AMPARr VEST NIGHLAMI r FOURTH STREET ' AND FLORIDA AVENUE fLORn>A OUT OF BLOCK 42 F WE mop M.C. CARTWRIGHT SUBDIVISION 3 � CNAN LESS 9y OWNER: E.G. CORDTS, JR. LOCATION MAP N.T.S. „ w NrauA D OR "7503 �- 4b w, CA 9O"VA ` © N.T.S. "ja 0 vzdw IL Q Proposed 70.' Wide General Utility Easement 490.96' FLORIDA City of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kandy Daniel, Treasurer MEETING DATE: November 21, 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council consider a resolution to add Coastal Securities, JW Genesis Financial Services, Inc, Wells Fargo Brokerage Services, LLC and delete First Union Securities, Inc. from the City's approved list of broker/dealers. Also consider a resolution to add TexasTERM, Local Government Investment Pool, to the City's approved list of investment pools. RECOMMENDATION Council consider a resolution to add Coastal Securities, JW Genesis Financial Services, Inc,Wells Fargo Brokerage Services, LLC and delete First Union Securities, Inc. from the City's approved list of broker/dealers. Also consider a resolution to add TexasTERM, Local Government Investment Pool, to the City's approved list of investment pools. BACKGROUND The City of Beaumont's approved list of broker/dealers, financial institutions and investment pools is reviewed annually by investment officials in conjunction with the investment policy review. Following are details of additions requested. The firms meet all requirements of the City's Investment Policy and their addition will offer alternatives to ensure that the City is receiving the highest possible yield for it's investments while maintaining the preservation and safety of principal. Coastal Securities is a regional dealer whose office is located at 5555 San Felipe, Suite 2200, Houston, Texas. Mr. Tony D. Sekaly will serve as the firm's representative. Mr. Sekaly was formerly with Duncan-Williams, Inc. and provided excellent service to the City in a similar capacity while he was there. He is active in the Government Finance Officer's Association and specializes in working with cities, counties and school districts. He currently has a client base which includes the City of Conroe as well as several other Texas cities. JW Genesis Financial Services, Inc. is a regional dealer which is headquartered in Boca Raton, Florida. Mr. Michael E. Swan and Mr. Howard N. Herring will serve as the firm's representatives. Their office is located at 30011 Ivy Glenn Drive, Suite 200, Laguna Niguel, California. They were both formerly with First Union Securities, Inc. and provided excellent service to the City in their capacity while there. They have been active in the Municipal Treasurers Association as well as the Government Treasurers Organization of Texas for more than ten years and have many years of experience in assisting municipal governments with their various investment needs. They currently do business with many Texas cities including Fort Worth and Corpus Christi. Wells Fargo Brokerage Services, LLC which is a division of Wells Fargo Bank is located at 1000 Louisiana, Suite 650, Houston, Texas. Wells Fargo offers a wide range of investment services and is considered a regional dealer. Rusty Russell will serve as the firm's representative. Mr. Russell currently has a client base which includes the Cities of Houston, Conroe and others. TexasTERM, a Local Government Investment Pool, is a fixed-rate, fixed-term investment program designed exclusively for Texas cities, counties and school districts. It is unlike other pools in that it provides a fixed-term investment for a term of 60 days to one year. The investment pays interest at maturity similar to a certificate of deposit. TexasTERM is rated AAAf by Standard & Poors and is overseen by an advisory board. The pool purchases only investments permitted in the Public Funds Investment Act. The City currently places overnight funds with Texpool and Logic. These pools differ from TexasTERM in that they offer daily liquidity and variable rates. TexasTERM offers another alternative designed to enhance earnings while achieving diversification. Current pool participants include the City of Austin and current rates are comparable to agency securities of a similar term. It is requested that First Union Securities, Inc. be deleted as an approved broker/dealer at this time. The firm's representatives were Michael Swan and Howard Herring who have transferred to JW Genesis Financial Services, Inc. No other representative from First Union has contacted the City or made any attempt to continue the relationship. The City's current list of authorized broker/dealers, financial institutions and investment pools is attached for your review. BUDGETARY IMPACT None. PREVIOUS ACTION The last amendment of the City's list of approved broker/dealers, financial institutions and investment pools was approved by resolution on May 11,1999. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer. RECOMMENDED MOTION Approve/Deny resolution to add Coastal Securities, JW Genesis Financial Services, Inc, Wells Fargo Brokerage Services, LLC and delete First Union Securities, Inc. from the City's approved list of broker/dealers. Also consider a resolution to add TexasTERM, Local Government Investment Pool, to the City's approved list of investment pools. Exhibit C City of Beaumont Approved List Broker/Dealers, Financial Institutions and Investment Pools October 1, 1999 Business Organization Approval Date Resolution Number Broker/Dealers: Chase Securities March 19, 1996 96-64 Duncan-Williams, Inc. \1ay 1 1. :')99 99-146 First Union Securities, Inc. May 11, 1999 99-146 (formerly Everen Securities) Prudential Securities February 13, 1996 96-44 Public Depositories: Primary Depository Hibernia National Bank August 5, 1997 97-17 (formerly Chase Bank of Texas,N.A.) (Contract Period 10/1/2000- 9/30/2003) Other Depositories Prime Bank December 6, 1994 94-331 Investment Pools: Logic Investment Pool March 4, 1997 97-45 Texpool November 6, 1996 96-273 Cl G . City of Beaumont Council Agenda Item .2 c g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kandy Daniel, Treasurer MEETING DATE: November 21, 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council consider a resolution authorizing signatories for the Blue Cross Employee Benefits Account No. 3620005494 at Hibernia National Bank. RECOMMENDATION The administration requests approval of Denise A. Bujak, Brian A. Kennedy, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on the above listed account. Signatories on all other City of Beaumont accounts for banking or investment purposes shall remain unchanged. BACKGROUND Blue Cross & Blue Shield of Texas, Inc. will be the administrator for the City's new POS health plan beginning January 1, 2001. Claims are paid from City of Beaumont Account No. 3620005494 at Hibernia National Bank. Both Blue Cross employees and City employees are authorized to sign on the account. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer. RECOMMENDED MOTION Approve/Deny a resolution requesting approval of Denise A. Bujak, Brian A. Kennedy, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on Blue Cross Employee Benefits Account No. 3620005494 at Hibernia National Bank. H ...... VOW City of Beaumont Council Agenda Item � c g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 21, 2000 AGENDA NIE`1O DATE: November 15, 2000 REQUESTED ACTION: Council approval of an annual contract for the purchase of No. 8 tower rock. RECOMMENDATION Administration recommends award of an annual contract to Bo-Mac Contractors, Beaumont, Texas, for purchasing No. 8 tower rock at the unit costs stated below with an estimated total annual expenditure of$34,625. BACKGROUND Bids were requested for an annual contract for No. 8 tower rock for use by the Public Works Department, Streets and Drainage Division. Tower rock is a limestone-based aggregate, approximately 3/8" to 1/z" in diameter, used for street patching and pothole repair. The aggregate is used in conjunction with the Streets and Drainage Division's road patching machine. The rock is placed in the machine's hopper and coated with asphalt. The street patching machine then injects the coated aggregate into a pothole to create a sealed and smooth driving surface. It is estimated that approximately 2,500 tons of tower rock will be used during the term of the contract. Three (3) vendors were notified with each responding with bids as reflected in the attached bid tabulation. BUDGETARYIMPACT Funds are available for this expenditure in the Street & Drainage Division's operating budget. Contract for Purchase of No. 8 Tower Rock November 15, 2000 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Works Director. RECOI'IENDED MOTION Approve/Deny award of a one (1) year contract for purchasing No. 8 tower rock from Bo-Mac Contractors at $13.85 per ton. Contract for Purchase of No. 8 Tower Rock November 15, 2000 Page 3 BID TABULATION FOR No. 8 TOWER ROCK VENDORS: No. 8 Tower Rock/ton Bo-Mac Contractors, Beaumont, TX $ 13.85 APAC-Texas, Beaumont, TX $ 15.00 Martin Marietta Aggregates, Inc., Beaumont, TX $ 16.00 City of Beaumont c Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 21. 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council approval of a one (1) year contract for the purchase of corrugated polyethylene pipe. RECOMMENDATION Administration recommends award ofan annual contract for purchasing corrugated polyethylene pipe to Lumberton Culvert Sales at the unit costs reflected in Exhibit "A", attached hereto, with an estimated total expenditure of$80,165. BACKGROUND The contract specifies that the successful bidder shall provide approximately 17,000 feet of various size corrugated polyethylene pipe at fixed unit costs for one(1)year from date of award for use by the Public Works Department, Streets and Drainage Division. The pipe is utilized by the Streets and Drainage Division to replace driveway pipe during cleanout of city ditches. Existing pipe which is damaged, improperly sized, or not set at correct grade is replaced as needed. The bid specifications provide for the vendor to furnish approximately 17,000 feet of corrugated polyethylene pipe at fixed costs as reflected in Exhibit "A". The total estimated expenditure is $80,165 for the one(1) year contract period. Twenty-nine(29)vendors were notified with six(6)submitting bids. The product bid by Lumberton Culvert Sales meets specifications and is the lowest bid submitted. Contract for Corrugated Polyethylene Pipe November 15, 2000 Page 2 BUDGETARY IMPACT Funds are available for this expenditure in the Public Works Department's operating budget. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Works Director. RECOMMENDED MOTION Approve/Deny award of a one (1) year contract for purchasing for purchasing corrugated polyethylene pipe to Lumberton Culvert Sales at the unit costs stated in Exhibit "A". Exhibit "A" LUMBERTON CULVERT SALES ESTIMATED PRICE PER ANNUAL MANUFACTURER LINEAR UANTITY DESCRIPTION BID FOOT TOTAL 12"Smooth interior 1,000 FT. corrugated pipe ADS $2.890 /If $2,890 15" Smooth interior 10,000 FT. corrugated pipe ADS $3.690 /If $36,900 18" Smooth interior 4,000 FT. corrugated pipe ADS $4.970 /If $19,880 24" Smooth interior 1,500 FT. corrugated pipe ADS S8.040 Af SI2.060 36" Smooth interior 5 FT. corrugated pipe ADS $16.870 /If $8,435 The contracted prices for the past year are as follow: PRICE PER DESCRIPTION LINEAR FOOT 12"Smooth interior corrugated pipe $3.181 /If 15" Smooth interior corrugated pipe $3.989 /If 18" Smooth interior corrugated pipe $5.303 /if 24" Smooth interior corrugated pipe $8.535 /If 36" Smooth interior corrugated pipe $17.265/If it...0 Cat of Beaumont Y Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 21, 2000 AGENDA MEMO DATE: November 14, 2000 REQUESTED ACTION: Council approval of a contract for the purchase of cement stabilized base. RECOMMENDATION Administration recommends award of an annual contract to Trinity Aggregate Distribution for the purchase of cement stabilized base at the unit cost of$15.95 per ton,with an estimated total annual expenditure of$79,750. BACKGROUND Bids were requested for an annual contract for cement stabilized base for use by the Public Works Department, Streets and Drainage Division. The material is used in the repair and maintenance of driveway culverts and storm sewers. It is estimated that approximately 5,000 tons of cement stabilized base will be used during the term of the contract. Four (4) vendors were notified with each responding with a bid as reflected in the attached bid tabulation. The previous contract price was $15.75 per ton. BUDGETARYIMPACT Funds are available for this expenditure in the Public Works Department's operating budget. Contract for Purchase of Cement Stabilized Base November 14, 2000 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Works Director. RECOMMENDED MOTION Approve/Deny award of a one (1) year contract for purchasing cement stabilized base to Trinity Aggregate Distribution at the unit cost of$15.95 per ton. Contract for Purchase of Cement Stabilized Base November 14, 2000 Page 3 BID TABULATION FOR CEMENT STABILIZED BASE Vendors Unit Price/ton Trinity Aggregate Distribution, Beaumont, Texas $ 15.95 APAC-Texas, Inc., Beaumont, Texas $ 16.00 Martin Marietta Aggregates, Beaumont, Texas $ 16.50 Quality Concrete & Materials Co., Beaumont, Texas $ 18.00 K City of Beaumont •� Council Agenda Item ZZ ° c g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer �METItiG DATE: 'November 21. 2000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council to consider a resolution to reject the bid received for the Blossom Street Pavement Improvement Project. RECOMMENDATION Administration recommends the rejection of the one bid received for the Blossom Street Pavement Improvement Project in the amount of$307,896.60 and to rebid the project at a later date. BACKGROUND Formal bids received on October 9, 2000 for the Blossom Street Pavement Improvement Project resulted in a single bid from Excavators & Constructors in the amount of $307,896.60. This amount is 40% over the original estimated construction cost and will have a significant impact on the funds available for the year 2000 Street Rehabilitation Program. A copy of the bid is attached for your information. The project will be combined with a project of similar scope to minimize construction cost and rebid in February of 2001. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director, and City Engineer. RECOMMENDED MOTION Approve/Deny a resolution rejecting the Blossom Street Pavement Improvement Project bid in the amount of$307,896.60. blosagmjld CITY OF BEAUMONT BID TAB BLOSSON STREET PAVEMENT IMPROVEMENT PROJECT BID DATE: OCTOBER 9, 2000 EXCAVATORS & CONSTRUCTORS, INC. FREW—', D-E—S.--- ----D-E--S—CRIP-T-l-0N UNIT UNIT AMOUNT CODE NO. OTY PRICE 104 001 REMOVE CONCRETE DRWY.4 IN.) SY 810 $6.50; $5,265.00 104 002 !REMOVE CONCRETE(SIDEWALK 4 FT.) SY $6.50 $325.00 0 $2496690 04 003 REMOVE CONCRETE(PVMT.)(6 IN.) SY —3M $6.30 110 001 EXCAVATION(ROADWAY) CY 1106 $14.601 $16,147.60 132 001 -EMBANKMENT(TY.B)(ORD.COMP.XCL 3)(13C) CY 86 $37.30! $3,20-7.801 162 001 SODDING(ST.AUGUSTINE GRASS) SY 2231 $5.00 $11'$11,155.00 001 VEGETATIVE WATERING $33.35 $2,201.19 168 MG 66 247 i 001 FLEXIBLE BASE,(TYPE A)(GR.1 X5")(DC)(CLS.5) SY 4250 $11.70' $49,725.001� 360 001 CONCRETE PAVMT(JOINT REINF.)(CLS.K MOD)(6 IN.) SY 3963 $25.81+5 $102,443.55 ro 360 002 MONO CURB(TY A)(6 IN) LF —.--2512 $2.70 $6,782.40 400 001 !STRUC.EXCAVATION(TRENCH) CY 76 $6.35 $482.60 4-0-- $1,89 0 002 CEM.STABILIZED BACKFILL(1-1/2 SACK CEM PER CY SAND)(DRY WT.) CY 53 $35.8 _7 0 464 001 REINF.CONC.PIPE(CL 111)18 IN. LF 127 $35.85 $4,552.95 46-5 001 CURB INLET(COMPLETE)TY A EA 4 $1,500.001, $6,00000, i 479 1 001 ADJUST MANHOLE EA 3 $450.00 $1,350.00 479 002 :ADJUST INLET EA 4 $660.00 $2,640- --------- ------- 479 003 MODIFY INLET TO MANHOLE EA 1 $684.00 $684.00 496 001 I REMOVE OLD STRUCTURES(PIPES) LF I 41 $10.15 $416.15 496 002 1 REMOVE OLD STRUCTURES(SMALL) EA 2 $122.00 $244.00 00 001 MOBILIZATION LS 1 $29,300.00 $29,300.00 �02 001 BARRICADES,SIGNS&TRAFFIC HANDLING(INCLUDES WORK ZONE) MO 4 $1,890.00, $7,560.00 530 001 CONC.DRWY.(4 IN.XCLS.K MOD) SY 696 !r— $23.95 $16,669.20. 1� 530'iM CONC DRWY.(4 IN.)(WASHED OUT FINISH)(CLS.K MOD) SY 117 $50.40 $5,896.80 531 001 CONC.SIDEWALK(4 FT.)(CLS.A) SY 43 $355 T537-25 $56.701 9 .90 531 002 :CONC.SIDEWALK(4 FT.)(WASHED OUT FINISH)(CLS.A) SY 7 6 560 001 MAILBOX ASSEMBLIES(SINGLE)(BRICK) EA 5 $500.001 560 003 MAILBOX ASSEMBLIES(SINGLE)(WOOD) EA MAILBOX ASSEMBLIES(SINGLE)(STEEL) EA 1 $250.00 $2,7;, 0_-52,500.00' '00 560 000 TOTAL $307,896.60 L I U7.-!J.- City of Beaumont Ac Council Agenda Item NL TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer .N IEETING D.kTE: No�Cmh`r '1. '000 AGENDA MEMO DATE: November 15, 2000 REQUESTED ACTION: Council consider a resolution accepting maintenance of the street, storm sewer, water and sanitary sewer improvements in Willow Creek Country Club Estates, Phase , Section X-A. RECOMMENDATION Administration recommends approval of Champions Drive from existing Champions Drive approximately 552 feet north to 3-OM-4P end of roadway markers and Champions Drive from existing Champions Drive approximately 198 feet south to 3-OM-4P end of roadway markers. Also, recommended for approval are the Water and Sanitary Sewer Improvements for Lots 1-5, Block 1, Lots 1-6, Block 2 and the Sanitary Sewer Lift Station Improvements and access road. BACKGROUND The aforementioned improvements in the subdivision passed final inspection from all entities involved on November 15, 2000. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny the resolution accepting maintenance of the street, storm sewer, water and sanitary sewer improvements in Willow Creek Country Club Estates, Phase , Section X-A. wccooesx.jid MAJOR DRIVE (FM 364 cr PEBBLE END DRIVE ! �// ;J (j —SS swoon- — COLONIAL :��—, , CHAMPIONS COL. DRIVE 7 AMELA CUT—OFF WILLOW CREEK IV COUNTRY CLUB ESTATES �P HASE A MMON X WILLOW CREEK COUNTRY CLUB ESTATES , PHASE 11 , SECTION X-A M t179` City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Matt Martin, Liability Administrator MEETING DATE: November 15, 2000 AGENDA MEMO DATE: November 21, 2000 REQUESTED ACTION: Consider a resolution authorizing the settlement of the lawsuit styled Deborah Savant / Lone Star Overnight RECOMMENDATION Council approval of a resolution authorizing the settlement of a lawsuit styled Deborah Savant / Lone Star Overnight BACKGROUND Council authorized the settlement of this lawsuit in executive session November 7, 2000. BUDGETARY IMPACT There are sufficient funds in the Liability Trust Fund to pay the settlement amount of$19,000 [Deborah Savant - $11,653.14 and Liberty Mutual - $7,345.86]. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and City Attorney. RECOMMENDED MOTION Approve/Deny a resolution authorizing the the settlement of the lawsuit styled Deborah Savant / Lone Star Overnight. RESOLUTION NO. WHEREAS, the claim of Deborah Savant/Lone Star Overnight has been discussed in an Executive Session properly called and held Tuesday, November 7, 2000; and, WHEREAS, the Council desires to authorize the settlement of the claim; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney be and he is hereby authorized to settle the claim of Deborah Savant/Lone Star Overnight in the amount of Nineteen-Thousand Dollars ($19,000) payable in the amounts of Eleven-Thousand Six-Hundred Fifty-Three and 14/100 ($11,653.14) to Deborah Savant and Seven-Thousand Three-Hundred Forty-Five and 86/100 ($7,345.86) payable to Liberty Mutual. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of , 2000. - Mayor- 0:VCO1RE8OLUTF CLA "W DOC CUM"Es