HomeMy WebLinkAboutPACKET JAN 22 2002 cluill a
City of BeGIunwnt
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS JANUARY 22, 2002 1:30 P.M.
AGENDA
OPENING
• Invocation Pledge Roll Call
• Presentations and Recognition
• Public Comment: Persons may speak on scheduled agenda items
• Consent Agenda
GENERAL BUSINESS
1. Consider authorizing the City Manager to amend the Industrial Agreement with
ATOFINA Chemicals, Inc.
2. Consider approving Amendment No. I to the City's Loan Agreement with Crockett
Street Development, Ltd.
3. Consider amending Section 21-75 of the Code of Ordinances relating to authorized
positions in the Police Department
4. Consider amending Section 26 of the Code of Ordinances establishing minimum
parking citation fines effective March 25, 2002
5. Consider approving funding for the Chamber of Commerce in the amount of$50,000
for Economic Development purposes
COMMENTS
* Councilmembers comment on various matters
* City Manager's Report- Partnership In Governance 2002; City Hall Emergency Gas
Leak; Neighborhood Revitalization Projects; Planning Commission; Sales Tax
Update; Comprehensive and Neighborhood Planning; The All-American Soap
Box Derby; Fire Department Staffings and Lone Star Libraries
* 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:
Doris Marie Martin v. City of Beaumont
Claim of Catherine Carter
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
Council consider authorizing the City Manager to amend the Industrial Agreement with
ATORNA Chemicals, Inc
V~105
City of Beaumont
qw_
'in 1:171117OR k M d 3M EL Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 18, 2002
REQUESTED ACTION: Consider authorizing the City Manager to amend the Industrial
Agreement with ATOFINA Chemicals, Inc.
RECOMMENDATION
The Administration recommends authorizing the City Manager to amend the Industrial Agreement
with ATOFINA Chemicals, Inc.
BACKGROUND
The City Council authorized the City Manager to execute an Industrial Agreement with ATOFINA
Chemicals, Inc. on October 9, 2001. The agreement was executed on October 12, 2001. Novus
International Inc.is planning to construct a$102 million unit at the ATOFINA Chemicals Refinery
on Gulf States Road under a cooperative agreement with ATOFINA Chemicals, Inc. ATOFINA
will operate the plant once it is completed. The new unit would produce 3-methylthiopropi-
onaldehyde (MMP)which is used to manufacture a feed supplement called Alimet. Alimet is an
ingredient used in feed products for livestock. Construction of the plant is projected to commence
in June of 2003, with production coming on-line in 2005. The project will have an estimated 400
construction jobs at peak times and will result in 27 permanent jobs being created.
The following amendments to the contract are recommended in order to provide an incentive to
locate the proposed project in Beaumont. 1) The annual payment outlined in Article I, Subpart
4 will be amended to provide that the payment shall not exceed 110% of the prior year's payment
in 2003 and 2004. The annual payment shall not exceed 107% of the prior year's payment in
2005, 2006, 2007 and 2008. 2) In 2005, 20% of the assessed value of the proposed project will
be included in ATOFINA's assessed value for purposes of calculating assumed City taxes due for
payment in February 2006 subject to the payment limitation described in Item 1 above. Each year
thereafter an additional 20% of the assessed value of the proposed project will be included in the
calculation of assumed City taxes due subject to the payment limitation described in Item 1 above.
3) The annual payment described in Article I, Subpart 4 will be amended to provide that the
current payment of$395,761 (due February 1, 2002) will be the minimum payment during the
term of the contract. If the project is not constructed, no minimum payment or payment cap
amendment described in Item 1 above will be made to the contract. 4)Novus International, Inc.
will lease land from ATOFINA to construct its part of the proposed project. If the project is
constructed, the value of Novus assets will be subject to provisions of ATOFINA's industrial
contract with the City. No separate agreement with Novus will be executed. A copy of the current
industrial agreement with the proposed amendments (shaded area) is attached for your review.
BUDGETARY IMPACT
The City of Beaumont will not receive less than $395,761 a year from ATOFINA during the
seven-year contract and should realize a 7% increase each year in 2006-2008.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director.
RECOMMENDED MOTION
Approve/Deny authorizing the City Manager to amend the Industrial Agreement with ATOFINA
Chemicals, Inc.
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code.
The parties to the Agreement are The City of Beaumont, a municipal corporation
and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and
ATOFINA Chemicals, Inc., its parent, subsidiaries and affiliates, hereinafter called
"COMPANY."
PREAMBLE
WHEREAS, Company owns land and improvements which are a part of the
manufacturing, industrial, and refining facilities of said Company. The City has established
an industrial district comprising a certain part of the extra-territorial jurisdiction of the City,
such industrial district being known as the City of Beaumont Industrial District.
WHEREAS, the Company recognizes the benefits of this Agreement and an
obligation to contribute to the revenue needs of said City in an amount commensurate with
the burdens placed upon the City and benefits derived by the Company by reason of being
located immediately adjacent to said City.
WHEREAS,the Company and the City desire to base the industrial district payment
on assessed value to ensure equity among the companies.
In view of the above and foregoing reasons, and in consideration of the mutual
agreements herein contained, Company and City hereby agree as follows:
GACGIAGREEMENWYLE 11-011ATOFINA-1-02.wpd 1 /8
ARTICLE I.
COMPANY'S OBLIGATION
Annual Payment on Company's Property
1. Commencing with the calendar year 2002 and each calendar year thereafter for
the duration of this Contract, the Company will pay the City a certain sum which will be
computed on the assessed value of the Company's facilities property, real, personal, and
mixed located on Company's land covered by this contract as described in Article II
(hereinafter called the "Company's properties").
2. By the term "Assessed Value" is meant the 100% valuation of the Company's
properties, as determined by the Jefferson County Appraisal District for the previous tax
year.
3. The term"assumed City taxes due"shall be calculated by the following formula:
Assessed value T 100 x the current ad valorem tax rate by City
Council of City = Assumed City Taxes due.
4. Pavment Procedures
The procedures for determining and making such payments shall be as follows:
(a) The payment for 2002 shall be in the amount of$395,761 and shall be due
and payable on or before February 1, 2002. The February 1, 2002 payment is calculated
as follows:
Assumed City Taxes Due:
$77,905,730 / 100 X .635 = $494,701
Year 1 80% of Assumed City Taxes Due = $395,761
G:\CG\AGREEMEN\KYLE 11-011ATOFINA-1-02.wpd 2 / 8
Each October thereafter, the Finance Officer shall obtain the most recent assessed
values asset by the Jefferson County Appraisal District for the Company's properties, real,
personal and mixed, having taxable situs within the areas described in this Agreement; for
example, in October, 2003, the 2003 assessed values shall be used for the February 1,
2004 payment. This assessed value shall be used in the calculation of the payment.
If the assessed values for the period required are in question and/or under litigation
with the Jefferson County Appraisal District, payment shall be computed on the most
recent certified values from the Jefferson County Appraisal District. The Company shall
notify the City following resolution of the appraised value question and an adjustment for
the payment,without interest,will be made within thirty(30)days following such resolution.
(b) After the assessed value of the Company's properties have been
determined, the payment to City shall be 80% of assumed City taxes for the years 2002
2003, and 2004 and 75% of assumed City taxes for the years 2005, 2006, 2007 and 2008.
(c) City hereby agrees to bill Company for its payments due hereunder on or
before January 1 each year. Company shall pay to City such amount billed on or before
February 1 each year. Upon receiving the final payment, the Finance Officer shall issue
an official receipt of said City acknowledging full, timely, final and complete payment due
by said Company to City for the property involved in this Agreement for the year in which
such payment is made. if any annual payment is not made on or before any due date, the
same penalties, interest, attorneys'fees and costs of collection shall be recoverable by the
City as would be collectible in the case of delinquent ad valorem taxes. Further, if
payment is not timely made, all payments which otherwise would have been paid to the
City had Company been in the City limits of City will be recaptured and paid to the City
within 60 days of any such event.
G:\CG\AGREEMEN\KYLE 11-01WTOFINA-1-02.wpd 3 / 8
Company expects to obtain approval of a construction project to be done
by Company and Novus International on Company's properties. Novus will
lease land from ATOF/NA to construct its part of the proposed project. In
the event the proiect is approved, the value of Novus assets will be subject
to provisions of this Agreement. No separate agreement with Novus will be
executed. Should the project be approved, the annual payment provided
for herein shall not exceed 110% of the prior year's payment in each of
2003 and 2004 and shall not exceed 107% of the prior year's payment in
2005, 2006, 2007 and 2008. In any event, such annual payment for each
year of this Agreement shall never be less than $395,76 1.
Lel In 2005, 20% of the assessed value of the project as determined by the
Jefferson County ppraisal District will be included in the Company's and
Novus'assessed value for purposes of calculating assumed city taxes due
for the payment in 2006 subject to the 10% and 7% caps set out in Article
1(4)(d) above. Each year thereafter an additional 20% of the assessed
value of the project will be included in the calculation of assumed city taxes
due subject to the 10% and 7% caps.
M If the project is approved,paragraphs, "(d)"and "(e)"will take priority over
the second and third subparagraphs of paragraphs "4(a)" and "4(b)" and
Novus' assets shall constitute part of "Company's properties" under this
Agreement. If the project is not approved, Paragraphs phs "L)"and"Le)"will be
of no force and effect and the contract will not include provisions providing
for minimum or maximum payments.
G:ICGWGREEMENWnE 11-011ATOFINA-1-02.wpd 4 / 8
ARTICLE II.
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument
shall govern and affect the properties of Company (facilities, real, personal, and mixed)
located on Company's real property more particularly described in Exhibit "A" hereto,
which are within the extra-territorial jurisdiction of the City of Beaumont.
ARTICLE III.
SALE BY COMPANY
Company shall notify City of any sale of any or all of Company's properties to any
person or entity. As to payments due under this contract, no such sale shall reduce the
amount due the City under this contract until the purchaser of such property has entered
into a contract in lieu of taxes with the City that provides for a continuation of payments to
the City as if no such sale had been made. It is the intent of the parties that no sale of any
of Company's properties will affect the amount to be paid to the City under this Agreement.
ARTICLE IV.
CITY'S OBLIGATIONS
1. City agrees that it will not annex, attempt to annex or in anyway cause or permit
to be annexed any portion of Company's properties covered by this Agreement for the
period of the agreement except as follows:
(a) If the City determines that annexation of all or any part of the Company's
properties covered by this Agreement are reasonably necessary to promote and protect
the general health, safety and welfare of persons residing within or adjacent to the City,
the City will notify Company in accordance with State law of the proposed annexation. In
the event of such annexation, Company will not be required to make further payment under
this Agreement for any calendar year commencing after such annexation with respect to
the property so annexed, but shall nevertheless be obligated to make full payment for the
GAMAGREEMEWYLE 11-01 WTOFINA-1-02.wpd 5 /8
year during which such annexation become effective if the annexation becomes effective
after the last date on which taxes may be assessed in said year.
(b) In the event any municipality other than the City attempts to annex
separately or in the event the creation of any new municipality shall be attempted so as
to include within its limits of the Company's properties, City shall, with the approval of
Company, seek immediate legal relief against any such attempted annexation or
incorporation and shall take such other legal steps as may be necessary or advisable
under the circumstances with all cost of such action being borne equally by the City and
by the Company or all companies that have entered into agreements with the City for
payments in lieu of taxes with respect to properties located within the City of Beaumont
Industrial District with the Company's portion allocated on the basis of assessed values.
2. The City further agrees that during the term of this agreement, there shall not
be extended or enforced as to any land of the Company's properties within said City of
Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in
any way to control the platting and subdivisions of land, (b) prescribing any buildings,
electrical, plumbing or inspection standards or equipment, or(c) attempting to regulate or
control in any way the conduct of Company's activities, facilities or personnel thereof.
3. It is understood and agreed that during the term of this agreement or any
renewals thereof, the City shall not be required to furnish any municipal services to
Company's property; provided, however, City agrees to furnish fire protection to Company
should such protection be requested by Company in the event an unusual emergency
situation occurs.
ARTICLE V.
TERMINATION
It is agreed by the parties to this Agreement that only full, complete and faithful
performance of the terms hereof shall satisfy the rights and obligations assumed by the
G:\CG\AGREEMEN\KYLE 11-01\ATOFINA-1-02.wpd 6 /8
parties and that, therefore, in addition to any action at law for damages which either party
may have, Company may enjoin the enactment or enforcement of any ordinance or charter
amendment in violation of, or in conflict with, the terms of this Agreement and may obtain
such other equitable relief, including specific performance of the Agreement, as is
necessary to enforce its rights. It is further agreed that should this Agreement be
breached by Company, the City shall be entitled, in addition to any action at law for
damages,to obtain specific performance of this Agreement and such other equitable relief
necessary to enforce its rights.
ARTICLE VI.
AFFILIATES
The benefits accruing to Company under this Agreement shall also extend to
Company's"affiliates"and to any properties owned or acquired by said affiliates within the
area described in Exhibit "A" to this Agreement, and where reference is made herein to
Company's property, that shall also include land, property and improvements owned by its
affiliates. The word "affiliates" as used herein shall mean all companies with respect to
which Company directly or indirectly, through one or more intermediaries at the time in
question, owns or has the power to exercise the control over fifty percent (50%) or more
of the stock having the right to vote for the election of directors.
ARTICLE VII.
TERM OF AGREEMENT
The term of this Agreement shall be for seven (7) years, commencing January 1,
2002, and ending on December 31, 2008.
ARTICLE VIII.
NOTICES
Any notice provided for in this Contract, or which may otherwise be required by law
shall be given in writing to the parties hereto by Certified Mail addressed as follows:
GAMAGREEMENIKYLE 11-011ATOFINA-1-02.wpd 7 /8
TO CITY TO COMPANY
City Manager ATOFINA Chemicals, Inc.
City of Beaumont P. 0. Box 1427
P. 0. Box 3827 Beaumont, Texas 77704
Beaumont, Texas 77704
ARTICLE IX.
CONTINUATION
If this Agreement shall be held invalid by any court of competent jurisdiction, such
holding shall not affect the right of City to any payment made or accruing to City hereunder
prior to such adjudication, and this provision is intended to be an independent and
separable provision not to be affected by such adjudication.
IN WITNESS THEREOF, this Agreement, consisting of 7 pages plus Exhibit"A", is
executed in duplicate counterparts as of this day of ,
2001.
CITY OF BEAUMONT, TEXAS
By:
Stephen J. Bonczek
City Manager
ATTEST:
Barbara Liming
City Clerk
ATOFINA Chemicals Inc.
By:
ATTEST:
GAMAGREEMENWYLE 11-01ATORNA-1-02.wpd 8 1 8
2
Council consider approving Amendment No. 1 to the City's Loan Agreement with Crockett
Street Development, Ltd.
City of Beaumont
n Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 17, 2002
REQUESTED ACTION: Consider approving Amendment No. 1 to the City's Loan
Agreement with Crockett Street Development, Ltd.
RECOMMENDATION
The Administration recommends approving Amendment No. 1 to the City's Loan Agreement
with Crockett Street Development, Ltd.
BACKGROUND
The City of Beaumont loaned Crockett Street Development, Ltd. $3,000,000 using Section 108
funds from the Department of Housing and Urban Development to help finance the development
of the Crockett Street Project. The Borrower's loan with the City is secured by a second lien on
the Project that is subordinate only to a first lien in favor of Community Bank & Trust in the
amount of$1,000,000. The Borrower needs additional funds to complete the Project and has made
arrangements to borrow an additional$2,500,000 from Community Bank&Trust. To obtain this
additional loan, the Borrower must be able to grant to Community Bank a first lien on the project
in the total amount of Community Bank's loan of$3,500,000. To do so requires the City to
consent to this additional lien.
The Borrower has provided the City with an updated appraisal on the Project that shows that the
Market Value of the Project, when finished, will be equal to $8,000,000, which includes
$7,783,000 for the real estate and $217,000 for the furnishings, fixtures and equipment. Lance
Fox with Orgain, Bell & Tucker states in the attached memorandum that the updated appraisal
satisfies the requirements of the City's contract with HUD and that the City is authorized to
approve the Amendment to the Loan Agreement it has with the Borrower.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director.
RECOMMENDED MOTION
Approve/Deny Amendment No. 1 to the City's Loan Agreement with Crockett Street
Development, Ltd.
EXHIBIT "A"
Amendment No. 1 to Loan Agreement
See attached.
1
\\LCF_SEC\FOX DOCUMENTS\BOND\BEAUMONT SECTION 108 FINANCING 1999\CROCKETT STREET\2002 DOCUMENTS\CITY RESOLUTIONAOC
ORGAIN, BELL & TUCKER, L.L.P.
ATTORNEYS AT LAW
470 ORLEANS STREET OTHER OFFICES
LANCE FOX
PARTNER P. O. BOX 1751 HOUSTON
EXTENSION 1376 BEAUMONT,TEXAS 77704 -1 75 1 AUSTIN
EMAIL LCF@,0BT COM
TELEPHONE (409) 838-5412 SILSBEE
FAX (409) 838-6959
WWW.OBT.COM
MEMORANDUM
TO: City of Beaumont, Texas
FROM: Lance Fox
DATE: January 11, 2002
RE: Crockett Street Project Financing
Attached to this Memorandum is the proposed Amendment No. 1 (the "Amendment") to
the City's Loan Agreement with Crockett Street Development, Ltd. (the "Borrower"). The
Borrower has requested that the City execute the Amendment in order to allow the Borrower to
increase the first lien on the Project to $3,500,000.
The City loaned the Borrower $3,000,000 to help finance the development of the
Crockett Street Project. This loan was made by the City from HUD funds received by the City.
The Borrower's loan with the City is secured by a second lien on the Project that is subordinate
only to a first lien in favor of Community Bank&Trust in the amount of$1,000,000.
The Borrower needs additional funds to complete the Project and has made arrangements
to borrow an additional $2,500,000 from Community Bank & Trust. To obtain this additional
loan, the Borrower must be able to grant to Community Bank a first lien on the project in the
total amount of Community Bank's loan of$3,500,000. To do so requires the City to consent to
this additional lien.
The Borrower has provided the City with an updated appraisal on the Project that shows
that the Market Value of the Project, when finished, will be equal to $8,000,000, which includes
$7,783,000 for the real estate and $217,000 for the funishings, fixtures and equipment. This
updated appraisal satisfies the requirements of the City's contract with HUD. Thus, the City is
authorized to approve of the Amendment to the Loan Agreement it has with the Borrower.
Please contact our office if you have any questions about this matter.
Yours truly,
Orgain.l1 ell &Tuc er, L.L.P.
Lance ox
1
AMENDMENT NO. 1
TO
LOAN AGREEMENT
(Crockett Street Project)
This Amendment No. 1 to Loan Agreement (the Amendment No. 1) is made by and between
THE CITY OF BEAUMONT, TEXAS, a Home Rule City incorporated pursuant to the general laws of
the State of Texas (hereinafter referred to as "Lender" or "City"), and CROCKETT STREET
DEVELOPMENT, LTD. (hereinafter referred to as "Borrower"), whereby the City and Borrower
hereby agree to amend that certain Loan Agreement dated November 23, 1999 (the "Loan
Agreement") previously entered into between the City and the Borrower. The Loan Agreement was
executed by the parties in connection with a $3,000,000 loan made by the City to the Borrower to
help finance a portion of the Borrower's costs of development of commercial property located on
Crockett Street in Beaumont, Texas, commonly known as "Crockett Street Development Project"
(hereinafter referred to as "Project"). The Loan Agreement provides that the City's loan will be
secured by a second lien deed of trust on the Project, subordinate only to a first lien deed of trust
granted in favor of Community Bank & Trust, SSB, in the amount of $1,000,000 (the "Senior Loan").
The Borrower has requested that the City agree to amend the Loan Agreement to allow the Borrower
to increase the amount of the Senior Loan to $3,500,000. Pursuant to such request, and for other
good and valuable consideration, the City and the Borrower agree to amend the Loan Agreement as
follows:
1. The second sentence of Paragraph 4 of the Loan Agreement is amended to read as
follows:
`The lien will be a second lien subordinate and junior to a first and senior lien
(the "Senior Lien') granted by Borrower in favor of Community Bank & Trust, SSB
(the "Senior Lender") to secure a loan being made by Senior Lender to Borrower in an
amount not to exceed THREE MILLION FIVE HUNDRED THOUSAND DOLLARS
($3,500,000.00) (the "Senior Loan').
!Lcf Sec;Fox Documents WNDVBeaumont Section 108 Financing 19991Crockett StreetV002 Documents'rlmendment 1 To Loan AgreemencDor
1
2. Paragraph 6L of the Loan Agreement is amended to read as follows:
"L. Senior Loan. Not incur any debt or indebtedness to the Senior Lender in
excess of THREE MILLION FIVE HUNDRED THOUSAND DOLLARS
($3,500,000.00), and timely perform and discharge the payment of the Senior
Loan and the performance of all obligations in connection therewith. Borrower
further agrees to promptly advise Lender in writing of any notice of default or
similar notice received from Senior Lender. Borrower shall not incur any other
senior debt."
3. Except as otherwise herein amended, all other terms and provisions of the Loan
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly
executed as of the day of January, 2002.
CROCKETT STREET DEVELOPMENT, LTD. THE CITY OF BEAUMONT, TEXAS
(Borrower) (Lender)
By: Beaumont Crockett Street Management, Inc.
Its: General Partner
By: By:
Name:. Tom Flanagan Name: Stephen J. Bonczek
Title: President Title: City Manager
lcj Sec'.Foz D xumenrs'HOND`Nenumom Section 108 Financing 19991Cr,)cketl Srreer?002 Documents Amendment I To Loan Agreement Doc
2
RESOLUTION AUTHORIZING AMENDMENT TO LOAN AGREEMENT
WITH CROCKETT STREET DEVELOPMENT, LTD.
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
THE CITY OF BEAUMONT §
WHEREAS, The City of Beaumont, Texas (the "City") has adopted a
community development program in accordance with Chapter 373 of the Texas
Local Government Code, and in connection therewith received a grant from the
United States Department of Housing and Urban Development (United States
Department of Housing and Urban Development Community Development Block
Grant No. B-97-MC-48-0018) for use in improving the environment in the City
principally for the benefit of low and moderate income citizens, pursuant to the
Housing and Community Development Act of 1974, as amended (hereinafter the
"ACT"); and
WHEREAS, pursuant to Section 108 of the ACT, the City obtained a loan
from HUD in the amount of $11,000,000 to enhance the City's Community
Development Program and $3,000,000 of the loan proceeds received by the City
were loaned to Crockett Street Development, Ltd. (the "Borrower") to pay for a
portion of the Borrower's costs of development of commercial property located
on Crockett Street in Beaumont, Texas, commonly known as "Crockett Street
Development Project" (hereinafter referred to as "Project"); and
WHEREAS, the loan agreement between the City and the Borrower
provides that the City's $3,000,000 loan to the Borrower is secured by a second
lien deed of trust on the Project, subordinate only to a first lien deed of trust
granted in favor of Community Bank & Trust, SSB (the "Senior Lender") in the
amount of$1,000,000 (the "Senior Loan"); and
WHEREAS, the Borrower has requested that the City agree to amend its
loan agreement with the Borrower to allow the Borrower to increase the amount
of the Senior Loan to $3,500,000, and the City, having considered such request,
finds that the request should be granted.
Now, Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BEAUMONT, TEXAS:
1
\\LCF_SEC\FOX DOCUMENTS\BOND\BEAUMONT SECTION 108 FINANCING 1999\CROCKETT STREET\2002 DOCUMENTS\CITY RESOLUTION.DOC
1. The City Council hereby authorizes the City to amend its loan
agreement with the Borrower pursuant to which the Borrower will be permitted to
increase the Senior Loan on the Project to $3,500,000, all pursuant to the terms of
that certain Amendment No. 1 to Loan Agreement in substantially the form
attached hereto as EXHIBIT A. The City Council hereby authorizes the City
Manager and any other official of the City to execute the Amendment No. 1 to
Loan Agreement on behalf of the City, together with all such other documents and
instruments as any such City official may determine to be necessary or appropriate
to effectuate the intent and purpose of this Resolution and the the Amendment No.
1 to the Loan Agreement, including but not limited to, execution of a subordination
agreement in favor of the Senior Lender, all on such terms as said City official
determines to be in the best interest of the City.
2. Open Meeting. It is hereby officially found and determined that the
meeting at which this Ordinance was adopted was open to the public, and public
notice of the time, place and purpose of said meeting was given, all as required
by Chapter 551, Texas Government Code.
PASSED AND APPROVED this day of January, 2002.
Mayor
The City of Beaumont
ATTEST:
City Clerk
The City of Beaumont
(SEAL)
2
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3
Council consider amending Section 21-75 of the Code of Ordinances relating to authorized
positions in the Police Department
Cit y of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED: Tom Scofield, Chief of Police
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 09, 2002
REQUESTED ACTION: Consider an Amendment to Municipal Ordinance 99-45,
Section 21-75 changing Grade I and Grade II positions.
RECOMMENDATION
Council consideration of an amendment to Municipal Ordinance 99-45,Section 21-75 changing Grade
I Positions from 192 to 194 and Grade II positions from 55 to 53.
BACKGROUND
As of December 31,2001,Grade II Sergeants,Don Bailey and Lynn Snowden retired.In keeping with
the reorganization within the Police Department that began with the October 1997 collective bargaining
agreement,a reduction of the Grade 1I position is needed. By reducing this position and increasing the
Grade I position,this will accurately reflect the current organization ofthe Police Department as well as
allow the utilization of the police specialist positions.
BUDGETARY IMPACT
The current annual pay for two Grade II Sergeants is $103,704. The annual pay for two Grade I
Patrolmen is $67,104 which is a positive budget impact of$36,600.
PREVIOUS ACTION
None
SUBSEQUENT ACTION
None
RECOMMENDED BY
City Manager and Chief of Police
RECOMMENDED MOTION
Accept/Deny the Amendment to Municipal Ordinance 99-45,Section 21-75 changing Grade I and Grade
II positions.
Beaumont Police Department
V~ Tom Scofield, Chief
Office: 409-880-3801 • Fax: 409-880-3844
P.O. Box 3827 lop
Beaumont, Texas 77704-3827
M � NL wnvw.ih2000.netjbpd/
January 9, 2002
Mr. Stephen Bonczek
City Manager
P. O. Box 3827
Beaumont, Texas 77704
Dear Mr. Bonczek,
On December 31, 2001, Grade II Sergeants, Don Bailey and Lynn Snowden retired. I am
therefore requesting that the City Ordinance Section 21-75 be amended reducing the number of
positions in the Grade II category by two from 55 to 53 and reallocating those positions into the
Grade I category increasing it from 192 to 194. This request is in keeping with the reorganization
of the Police Department that began with the October 1997 contract and continues in the current
collective bargaining agreement. Furthermore it allows for the utilization of the police specialist
positions in the Criminal Investigations Division.
Below is a summary of the changes in proposed personnel allotments:
Current: Proposed:
Grade f 192 194
Grade II 55 53
Grade III 12 12
Grade IV 3 3
Deputy Chief 2 2
Total 264 264
1 will be glad to provide any additional information necessary.
Sincerely,
'�/ey e G
Tom Scofield
Chief of Police
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING SECTION 21-75 OF
THE CODE OF ORDINANCES TO AMEND THE GRADE I
AND GRADE II POSITIONS IN THE BEAUMONT POLICE
DEPARTMENT; PROVIDING FOR SEVERABILITY AND
PROVIDING FOR REPEAL.
Section 1.
THAT Chapter 21,Section 21-75 of the Code of Ordinances of the City of Beaumont
be and the same is hereby amended to read as follows:
Section 21-75. Grades and Classifications - Police Department
The following grades and classifications are hereby established within the Police
Department.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Grade Classification Positions
I Officers 194
11 Sergeants 53
III Lieutenants 12
IV Captains 3
Deputy Chiefs 2
Total 264
Section 2.
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 3.
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 22nd day of
January, 2002.
- Mayor -
4
Council consider amending Section 26 of the Code of Ordinances establishing minimum parking
citation fines effective March 25, 2002
City of Beaumont
2p , g Council A enda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Mark Horelica, Transportation Manager
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 16, 2002
REQUESTED ACTION Council consider an ordinance amending Section 26 of the Code of
Ordinances establishing minimum parking citation fines effective
March 25, 2002.
RECOMMENDATION
Administration recommends an ordinance amending Section 26 of the Code of Ordinances
establishing minimum parking citation fines effective March 25, 2002.
BACKGROUND
The Transportation Division completed a study in the Central Business District (CBD) evaluating
the existing parking program. This study included a review of the parking citation fine structure in
twenty (20) Texas cities comparable to the size of Beaumont or larger. Based on this review, it is
recommended that the following minimum parking citation fines be implemented.
Existing Fine Proposed Fine
Over Parking $ 3 ($6 after 5 days) $10 ($20 after 5 days)
No Parking Zone $10 ($20 after 5 days) $15 ($30 after 5 days)
Fire Zone $10 ($20 after 5 days) $40 ($70 after 5 days)
Miscellaneous Parking $ 5 ($10 after 5 days) $15 ($30 after 5 days)
The delivery of the parking citation books,reflecting the new minimum fines,will take approximately
sixty (60) days. A March 25, 2002, effective date for the minimum parking citation fines is also
recommended. The present parking citation fines will remain in place until that date.
BUDG ETA R"V I`I PAC-T
The annual revenue generated from this increase is anticipated to be approximately $20,000. The
total revenue collected annually from parking citation fines is estimated at $60,000.
PREVIOUS ACTION
City Council reviewed the Central Business District parking study results and recommendations on
January 8, 2002.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director, City Engineer and Transportation Manager
RECOMMENDED MOTION
Approve/deny an ordinance amending Section 26 of the Code of Ordinances establishing minimum
parking citation fines effective March 25, 2002.
Prkng%1trFimscg.yypd
January 16.2002
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 26,
SECTION 26-64 OF THE CODE OF ORDINANCES OF THE
CITY OF BEAUMONT TO ADD MINIMUM PARKING
CITATION FINES; PROVIDING AN EFFECTIVE DATE;
PROVIDING FOR SEVERABILITY; PROVIDING FOR
REPEAL; AND PROVIDING A PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
THAT Chapter 26, Section 26-64(d) of the Code of Ordinances of the City of Beaumont be
and the same is hereby amended to read as follows:
Sec. 26-64. Deposit of coins, exceeding time limit.
(d) Minimum Fines
The minimum fines to be assessed for parking violations are as follows:
Over Parking $10.00 ($20 after 5 days)
No Parking Zone $15.00 ($30 after 5 days)
Fire Zone $40.00 ($70 after 5 days)
Other Parking Violations $15.00 ($30 after 5 days)
Section 2.
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.
GAMORDINANCIAMEND26-Parking Fines.wpd
Section 3.
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.
Section 4.
That any person who violates any provision of this ordinance shall, upon conviction,
be punished as provided in Section 1-8 of the Code of Ordinances of the City of
Beaumont, Texas.
Section 5.
This ordinance shall apply to parking citations issued on and after March 25, 2002
and does not affect the validity of fines assessed before that date.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 23 day of
January, 2002.
- Mayor -
GAMORDINANCAMEND\26-Parking Fines.wpd
5
Council consider approving funding for the Chamber of Commerce in the amount of$50,000 for
Economic Development purposes
IN a~_ 1 tu7ej- City of Beaumont
Council Agenda Item
� c
TO: City Council
FROM: Stephen.J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: December 13, 2001
REQUESTED ACTION: Consider funding for the Chamber of Commerce in the amount of
$50,000 for Economic Development purposes.
RECOMMENDATION
Administration recommends funding for the Chamber of Commerce in the amount of$50,000 for
Economic Development purposes. $50,000 wdl be used for marketing Beaumont and business
retention/reendtment efforts. Administration is extremely pleased with the relationship with the
Chamber of Commerce.
BACKGROUND
The City and Chamber of Commerce had a very successful year working together on business
retention/recruitment. The City and Chamber worked in partnership to attract West Telemarketing
Company to Beaumont(1,000 initial jobs),helped retain and expand Conn's Appliances back office
operations and Home Care Supply's medical equipment business.
BUDGETARY IMPACT
Funds are budgeted for this expenditure in the FY2002 Budget.
PREVIOUS ACTION
Council approved funding on January 9, 2001 in the amount of $57,500 for the Chamber of
Commerce.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director
RECOMMENDED MOTION
Approve/Deny funding for the Chamber of Commerce in the amount of$50,000 for economic
development purposes.
t
Page 2
MAW�
ri
C
City of Beaumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS JANUARY 22, 2002 1:30 P.M.
CONSENT AGENDA
* Approval of minutes
* Confirmation of committee appointments
A) Authorize the City Manager and the Chief of Police to apply to the Texas Department
of Public Safety for funds to purchase and install audio/video recording equipment
in police vehicles
B) Approve a resolution authorizing release of a paving lien against property described as
North %2 Lots 1 and 2, Block 35, Calder Addition
C) Approve the purchase of vehicles through the Houston-Galveston Area Council Cooperative
Purchasing Program
D) Approve the purchase of a directional boring machine for use by the Water Utilities
Division
E) Approve the purchase of one diesel powered excavator for use by the Clean Community
Department
F) Approve a contract for the purchase of corrugated polyethylene pipe for use by the Streets
and Drainage Division
G) Authorize the settlement of the claim of Margaret King
H) Authorize the City Attorney or his designee to file and prosecute a lawsuit against Joyce
McKinney, d/b/a Classic Kid Learning Academy to collect on a delinquent Small Business
Revolving Loan
CONSENT AGENDA JANUARY 22, 2002
Committee Appointments
A) Authorize the City Manager and the Chief of Police to apply to the Texas
Department of Public Safety for funds to purchase and install audio/video recording
equipment in police vehicles
The 77`h Session of the Texas Legislature adopted an act relating to the prevention of racial
profiling by certain police officers entitled Senate Bill 1074. The bill which became effective
September 1, 2001 provides guidelines and requirements relating to law enforcement agencies
preparing certain "records" in regard to arrests and citations resulting from traffic stops and
information related to pedestrian stops (defined as meaning any interaction between a police officer
and an individual whose being detained for the purpose of a criminal investigation in which the
individual is not under arrest). To receive funding from the Department of Public Safety pursuant
to Article 2.137 Code of Criminal Procedure, the governing body of a municipality in conjunction
with the law enforcement agency serving the municipality, shall certify to the Department of Public
Safety that the law enforcement agency needs funding for video/audio equipment for that purpose.
Approval of the resolution would allow application for funding pursuant to this article. The
Administration recommends approval of this item. A copy of the staff memorandum is attached for
your review.
B) Approve a resolution authorizing release of a paving lien against property described
as North `/z Lots 1 and 2, Block 35, Calder Addition
The Administration recommends approval of a resolution authorizing release of the paving lien.
The property described above is located at 93-95 Oakland and currently has a paving lien from
1938 in the amount of$211. Xavier de la Garza purchased this property 24 years ago and is
requesting release of this lien. Due to the age of the lien,there are no records available which can
substantiate payment. Release of lien will provide an unencumbered title to Mr. Garza to enable the
sale of the property. A copy of the staff memorandum is attached for your review.
C) Approve the purchase of vehicles through the Houston-Galveston Area Council
Cooperative Purchasing Program
The Administration recommends authorization for the purchase of vehicles through the Houston-
Galveston Area Council (H-GAC) in the amount of$209,752.19. Included in the order are two
trucks for the Animal Control Division, three Suburbans for the EMS Division and Fire
Department, and one Suburban and truck for the Water Utilities Division. Funds in the amount of
$129,173.98 will be expended from the Capital Reserve Fund and funds in the amount of
580,578.21 will be expended from the Water Fund for these purchases. A copy of the staff
memorandum is attached for your review.
D) Approve the purchase of a directional boring machine for use by the Water Utilities
Division
The Administration recommends approval of the purchase of a directional boring machine in the
amount of$66,423.73 from Ditch Witch of Houston. The directional boring machine allows
underground boring for the replacement and installation of water mains and service lines. This unit
is an addition to the City fleet, and will complement a larger boring unit which was purchased in
December, 2000. Funds are available for this expenditure in the Water Utilities Fund. A copy of
the staff memorandum is attached for your review.
E) Approve the purchase of one diesel powered excavator for use by the Clean
Community Department
The Administration recommends approval of the purchase of one Caterpillar Model 330BL diesel
powered excavator from Mustang Tractor and Equipment of Beaumont in the amount of$197,601.
The unit will be used to maintain the state-mandated level of cover dirt at the Landfill, and will
replace a 1990 Kobelco Model 916LC being taken out of service due to age and wear. The old unit
will be disposed of according to the City's surplus property disposal policies. Funds for this
expenditure are budgeted in the Solid Waste Fund. A copy of the staff memorandum is attached for
your review.
F) Approve a contract for the purchase of corrugated polyethylene pipe for use by the
Streets and Drainage Division
The Administration recommends approval of a one-year contract for purchasing pipe with Golden
Triangle Pipe at the unit costs reflected in the attached staff memorandum,with an estimated total
expenditure of$52,955. The pipe is utilized by the Streets and Drainage Division to replace
driveway pipe during the clean out of City ditches. Funds are available for this expenditure in the
Public Works Department's operating budget.
G) Authorize the settlement of the claim of Margaret King
City Council authorized the settlement of this claim in Executive Session on January 8, 2002.
There are sufficient funds in the Liability Trust Fund to pay the settlement amount of$15,262.88.
A copy of the staff memorandum is attached for your review.
H) Authorize the City Attorney or his designee to file and prosecute a lawsuit
against Joyce McKinney, d/b/a Classic Kid Learning Academy to collect on
a delinquent Small Business Revolving Loan
City Council met on January 8, 2002 in Executive Session and agreed to post this item on the
regular agenda to consider a resolution authorizing the City Attorney or his designee to file and
prosecute a lawsuit. A copy of the staff memorandum is attached for your review.
A
City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED: Tom Scofield, Chief of Police
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 15, 2002
REQUESTED ACTION: Consider an Resolution authorizing the City Manager and the
Chief of Police to apply to the Texas Department of Public
Safety for funds to purchase and install audio/video recording
equipment in police vehicles pursuant to the Provisions of
Article 2.137 Texas Code of Criminal Procedure and Senate
Bill 1074, an act relating to the prevention of Racial Profiling by
certain police officers.
RECOMMENDATION
Administration recommends authorizing the City Manager and the Chief of Police to make application to
the Texas Department ofPublic Safety for funds to purchase audio/video recording equipment for police
vehicles pursuant to Article 2.137, Code of Criminal Procedure.
BACKGROUND
The 7r Session ofthe Texas Legislature adopted an act relating to the prevention of racial profiling by
certain police officers entitled Senate Bill 1074. The bill,which became effective September 1,2001
provides guidelines and requirements relating to law enforcement agencies preparing certain"records"in
regard to arrests and citations resulting from traffic stops and information related to pedestrian stops
(defined as meaning any interaction between a police officer and an individual whose being detained for the
purpose of an criminal investigation in which the individual is not under arrest).
The act requires the Beaumont Police Department to compile certain select information regarding traffic
stops resulting in citations or arrests in 2002(race/if a search was conducted/and if consent was obtained).
This information is being compiled based on the traffic citation form used by the department and probable
cause affidavits.
The act requires that in 2003 law enforcement agencies compile considerable additional information set
forth in Article 2.133,Code of Criminal Procedure,if the department does not qualify for the exemption
provided by Article 2.135,Court of Criminal Procedure related to the use of video and audio equipment
by the department.
Article 2.132 of the Court of Criminal Procedure Section b,requires that law enforcement agencies shall
examine the feasibility of installing video cameras and transmitter-activated equipment in each agency law
enforcement motor vehicle regularly used to make traffic stops and transmitter-activated equipment in each
agency law enforcement motorcycle regularly used to make traffic stops.The act does not however,define
"regularly used to make traffic stops".
The police department currently operates 60 vehicles equipped with video recorders which have been
purchased over the past approximately 6 years through grant funding,seized funding,and budgeted funding.
The department currently has 94 marked police vehicles and 4 marked police motorcycles. To equip the
marked police vehicles would require the expenditure of approximately$139,400(34 units at$4,100
each).
To receive funding from the Department of Public Safety pursuant to Article 2.137 Code of Criminal
Procedure,the governing body of a municipality in conjunction with the law enforcement agency serving
the municipality,shall certify to the Department of Public Safety that the law enforcement agency needs
funds for video/audio equipment for that purpose. Approval ofthe resolution would allow application for
funding pursuant to this article.
BUDGETARYIMPACT
None
PREVIOUS ACTION
None
SUBSEQUENT ACTION
None
RECOMMENDED BY
City Manager and Chief of Police
RECOMMENDED MOTION
Accept/Deny the Resolution authorizing the City Manager and the Chief of Police to apply for funds for
video and audio recording equipment from the Texas Department of Public Safety for the equipment from
that agency as provided under Article 2.137, Code of Criminal Procedure.
B
City of Beaumont
C Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kandy Daniel, Treasurer
MEETING DATE: January 22,2002
AGENDA MEMO DATE: January 15, 2002
REQUESTED ACTION: Council consider a resolution authorizing release of a paving lien
against property which is described as North '/2 Lots 1 and 2, Block 35, Calder Addition.
RECOMMENDATION
The administration requests approval of a resolution authorizing release of a paving lien against
property which is described as North '/z Lots 1 and 2, Block 35, Calder Addition.
BACKGROUND
The property described above is located at 93-95 Oakland and currently has a paving lien from
1938 in the amount of$211.00. Xavier de la Garza purchased this property 24 years ago and is
requesting release of this lien. Due to the age of the lien, there are no records available which
can substantiate payment. Release of lien will provide an unencumbered title to Mr. Garza to
enable the sale of property.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Treasurer.
RECOMMENDED MOTION
Approve/Deny a resolution authorizing release of a paving lien against property which is
described as North '/i Lots 1 and 2, Block 35, Calder Addition.
Xavier de la Garza
5205 North Holly Lane
Orange, Texas 77632
Re: Paving Lien for 93/95 Oakland
To Whom It May Concern:
I am writing you to ask for a favor. I bought this property about 24 years ago, and
have paid all the taxes since. I am presently trying to sell the property, but there is a
paving lien from 1938, something the title company did not tell me about. Could you
help me in this respect and release this lien, please? I would appreciate it very much.
Sincerely,
avier de la Garza
c
City of Beaumont
C Council Agenda Item
A - c
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 9, 2002
REQUESTED ACTION: Council approval of purchase of vehicles through the Houston-
Galveston Area Council Cooperative Purchasing Program.
RECOMMENDATION
Administration recommends authorization for the purchase of vehicles through the Houston-
Galveston Area Council(H-GAC) in the amount of$209,752.19.
BACKGROUND
The Houston-Galveston Area Council Cooperative Purchasing Program provides contracted prices
on various types of vehicles to all state, counties, school districts and municipal agencies within
Texas. H-GAC is a cooperative purchasing association that provides contracted items to
governmental entities that have been bid in accordance with all State procurement statutes. Fees for
the service range from 1% - 3% of the total purchase. The price stated includes H-GAC
administrative fees of$3,327.19. Six (6) vehicles are eligible for a$1,000 discount from a GM fuel
tank settlement agreement. The total to be expended includes this discount.
Included in this order are two (2)3/4 ton Chevrolet cab and chassis for the Animal Control Division,
three (3) 3/4 ton Chevrolet Suburbans for the EMS Division and Fire Department, one (1) %Z ton
Chevrolet Suburban and one(1)Ford F750 crew cab equipped with a four(4)cubic yard dump body
for the Water Utilities Division.
The Suburbans and 3/4 ton cab and chassis will be provided by Triangle Chevrolet, Inc. in Pt. Arthur
and the crew cab dump truck will be provided by Bayou City Ford in Houston. Warranty service will
be provided by local authorized dealerships. Warranty of three(3)years or 36,000 miles is provided
for the vehicles. Delivery of the vehicles will be in 90-120 days.
Purchase of Vehicles
January 9, 2002
Page 2
Vehicles to be replaced include unit 7118, a 1997 Suburban with 150,000 miles; unit 7083, a 1987
Suburban with 63,000 miles;unit 7103,a 1990 Suburban with 67,000 miles;unit 2236,a 1995 GMC
pickup with 90,000 miles;unit 2235, a 1995 GMC pickup with 85,000 miles;and unit 3212,a 1990
International crew cab with 117,000 miles. These vehicles will be disposed of according to the City's
surplus property disposal policies.
BUDGETARY IMPACT
Funds in the amount of$129,173.98 will be expended from the Capital Reserve Fund and funds in
the amount of$80,578.21 will be expended from the Water Fund for this purchase.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Central Services Director.
RECOMMENDED ACTION
Approve/Deny the purchase of vehicles in the amount of $209,034.53 through the Houston-
Galveston Area Council Cooperative Purchasing Program.
D
Cit y of Beaumont
Council Agenda Item
IMAM I&
g
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 8, 2002
REQUESTED ACTION: Council approval to award a bid for the purchase of one (1)
directional boring machine for use by the Water Utilities Division.
RECOMMENDATION
Administration recommends award of a bid for the purchase of a directional boring machine in
the amount of$66,423.73 to Ditch Witch of Houston, Texas.
BACKGROUND
The directional boring machine allows underground boring for the replacement and installation
of water mains and service lines. The unit is equipped with electronic equipment which allows
the operator to plot in advance the path of the hole, and map the actual track of the drilling tool
after completion for comparison. After boring the hole, the unit will pull the pipe to be installed
through the line as the drilling unit is being removed. This method allows for water lines to be
replaced under streets or other obstacles without the necessity of breaking out the street to
excavate a trench. This unit is an addition to the City fleet, and will complement a larger boring
unit which was purchased in December, 2000.
This machine will allow City personnel to replace small water mains and service lines (1" through
4" in diameter) in tighter confines and with less impact on adjacent property than with the larger
unit. This unit will be used predominantly in residential areas and is less disruptive in that
environment than the larger unit.
Bid notices were provided to four (4) vendors, with two (2) responding with bids. The bids
received are as follow:
Purchase of One(1)Directional Boring Machine
January 8, 2002
Page 2
Vendor Model'Bid Delivery Time Total Bid
Vermeer Equipment of Texas Vermeer Model D7X11A 30 days $64,305
Houston, Texas
Ditch Witch of Houston Ditch Witch Model 7-14 days $66,423.73
Houston, Texas JT520
The apparent low bidder, Vermeer Equipment of Texas, took exception to eight (8) performance
specification items. The most critical of the exceptions is the weight and length of the unit
exceeding the maximum specified by 1,870 pounds and 15 inches, respectively. This is a vital
feature due to the reduced risk of property damage with the lighter, smaller unit. It is believed
that the heavier unit would cause significant rutting and have a negative impact to adjacent
property. Other exceptions are a slower spindle speed than specified; location of operating
controls; software quoted will store one (1) boring job of up to 99 pipes before requiring
downloading, while specifications required storage of up to ten (10)jobs of 254 pipes each; and
the trailer length, width and tire size exceed specifications.
Ditch Witch of Houston took exception to five (5) performance specification items. The
exceptions are lever activated pipe breakout controls instead of switch activated; no quick fill
switch for the drilling fluid pump; single speed carriage; location of operating controls; and a 30
foot vertical range transmitter instead of the specified 50 feet. These exceptions have been
reviewed by both Water Utilities and Fleet Maintenance management, and would not adversely
affect the capability of this machine to perform the intended functions.
The unit carries a one (1) year parts and labor warranty, with service work to be provided by
Ditch Witch of Houston.
BUDGETARY IMPACT
Funds are available for this expenditure in the Water Utilities Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Public Works Director.
Purchase of One(1) Directional Boring Machine
January 8, 2002
Page 3
RECOMMENDED MOTION
Approve/Deny accepting a bid from Ditch Witch of Houston in the amount of$66,423.73 for the
purchase of one (1) Model JT520 Ditch Witch directional boring machine with tracking system,
drilling fluid transfer system and transport trailer.
City of Beaumont
Council Agenda Item
IL g
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 15, 2002
REQUESTED ACTION: Council approval to award a bid for the purchase of one (1) diesel
powered excavator.
RECOMMENDATION
Administration recommends award of a bid for the purchase of one (1) Caterpillar Model 330BL
diesel powered excavator on a crawler type undercarriage to Mustang Tractor and Equipment of
Beaumont in the amount of$197,601.
BACKGROUND
Bid notifications were provided to ten (10) vendors, with four (4) responding with bids for the
purchase of the above-referenced vehicle for the Clean Community Department, Landfill Division.
The unit will be used to maintain the state-mandated level of cover dirt at the landfill, and will
replace a 1990 Kobelco Model 916LC being taken out of service due to age and wear. This unit
will be disposed of according to the City's surplus property disposal policies.
Pricing was requested for the purchase of the unit and for a guaranteed repurchase price providing
the City with the means to sell the equipment to the original supplier after a term of three (3) or
five(5)years. The bids are reflected on the attached tabulation, along with the repurchase options
available to the City should either be deemed advantageous to exercise. Equipment placed in
service at the landfill is subject to continuous, rigorous operation and historically requires
extensive overhauling in three (3) to five (5) years.
The unit carries a twelve (12) month or 5,000 service hour warranty, with service work to be
performed by Mustang Tractor and Equipment.
Delivery time on the new unit is 14-21 days.
Purchase of One(1) Diesel Powered Excavator
January 15, 2002
Page 2
BUDGETARYIMPACT
Funds for this expenditure are budgeted in the Solid Waste Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Clean Community Director.
RECOMMENDED MOTION
Approve/Deny accepting a bid from Mustang Tractor and Equipment in the amount of$197,601 for
the purchase of one (1) Caterpillar Model 3')0131, excavator.
Purchase of One (1) Diesel Powered Excavator BID TAB
BID OPENING DATE: Thursday, Janaury 10, 2002 @ 2:00 pm
BID NUMBER: BF1202-22
iiVendor Mustang Tractor& Equipment Rush Equipment Center CLM Equipment Co.
I I
1 City /State _ -Beaumont, TX _ Houston TX Nederland, TX _.
-
I I
Manufacturer and Model Bid Caterpillar Model 330 BL John Deere 330C LC Kobelco SK330LC
!Total 11 $197,601.001 $205,019.001 $212,079.0011
II I
Repurchase-3 yrs II $143,481.00 No Bid $129,000.001
IRepurchase-5 yrs 1 $119,567.001 No Bid,� $98,000.00
,Delivery Time _ _ I_ _ 7 Days _ _� — 60 Days _. 1_ _ 14-21 Days___ _ 1
(Vendor j Waukesha-Pearce Ind.
1 City/State _ _ _ _ 1 _ Port Arthur, TX _ �1
1 Manufacturer and Model Bid 1 Komatsu PC300LC-6 j
�1Total I; $215,000.00
I
jlRepurchase-3 yrs 1i $143,350.001]
!Repurchase-5 yrs No Bid
(;Delivery Time 7-10 Days _ �I
F
City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: January 22, 2002
AGENDA MEMO DATE: January 15, 2002
REQUESTED ACTION: Council approval of a contract for the purchase of corrugated
polyethylene pipe.
RECOMMENDATION
Administration recommends award of a one (1) year contract for purchasing corrugated
polyethylene pipe to Golden Triangle Pipe at the unit costs reflected in the attached bid tabulation,
with an estimated total expenditure of$52,955.
BACKGROUND
The contract specifies that the successful bidder shall provide approximately 11,000 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.
Twenty-nine (29) vendors were notified with seven (7) submitting bids. The product bid by
Golden Triangle Pipe has been utilized previously and meets specifications set forth in the bid.
BUDGETARY IMPACT
The contract provides for the vendor to furnish approximately 11,000 feet of corrugated
polyethylene pipe at fixed costs as reflected in the attached bid tabulation. The total estimated
expenditure is $52,955 for the one (1) year contract period.
Annual Contract for Corrugated Polyethylene Pipe
January 15, 2002
Page 2
The previous contract period prices were as follow: $2.89 per foot for 12" diameter; $3.69 per
foot for 15"; $4.97 per foot for 18"; $8.04 per foot for 24"; and $16.87 per foot for 36".
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 corrugated polyethylene pipe to
Golden Triangle Pipe at the following unit costs: $2.52 per foot for 12" diameter; $3.52 per foot
for 15"; $4.82 per foot for 18"; $7.70 per foot for 24"; and $16.25 per foot for 36".
BID TABULATION FOR ANNUAL CONTRACT FOR CORRUGATED POLYETHYLENE PIPE
,BID NUMBER: RF1102-07 1�
Golden Triangle Pipe Coburn Supply Co. Moore Supply Co. Rural Pipe&Supply �I
Est. Description Beaumont,Texas 77705 _ Beaumont,Texas 77701 -Beaumont,TTexas 77701 Jasper,Texas 75951
Qty Unit T Total 1 Unit Total _ Unit _� Total_ �- Unit - Total - 1
10_00 ft 12"Smooth Interior Corrugated Pipe $2.520 $2,520.00 $2.50 _ $2,500.00_ $2.55._ $2,550.00 $2.60 $2,600.001
6000 ft 15"Smooth Interior Corrugated Pipe _ $3.5201 - $21,120.0_0 1 $3.40 $20,400.00 - $3:571 $21,420.00 $3.651 $21,900.0011
20_00 ft�18"Smooth Interior Corrugated Pipe $4.820 $9,640.00 -$4.941 - $9,880.00_ $4.88 _ $9,760.00 $_4.98 $9,960.00.1
1500 ft-24"Smooth Interior Corrugated Pipe �_ $7.700 1 - $11,550.001 $8.0_61 $12,090.00 _ $7.80 _$11,700..00 $7.97_ $11,955.001
500 ft ,36"Smooth_Interior Corrugated Pipe $1.6_250 _$8,125.00 -- $17.16 _._ $8,580_00 $16.43, $8215.00, - - . �. X8,385,0- I
_ Total Bid - $52,955.001 - $53,450.001 $53,645.0_01 _ $54,800.00
Manufacturer Bid _ ADS.- _ Hancor = = ADS = i = ADS -
_ -
1 - - Lumberton Culvert Sales ACT Pi P a&Supply Co. T Seabreeze Culvert
Est. 1 Description Lumberton Texas 77657 Houston,Texas 77034 _Stowell,Texas 77661
_ _.— _- - .
.Qty _ Unit _Total � _Unit i _ Total _ Urn_ t _ To_taI_ _
1000 ft_ 12"Smooth Interior Corrugated Pipe $2.70 $2,700.00 $2 77 $2 770.00 _ $0.00
. -
6000 ft 15"Smooth Interior Corrugated Pipe _ $3.64 $21,840.00 $3.69 $22,140.00 _$0.00 N/B�
2000 ft 118"Smooth Interior Corrugated Pie $4.921 $9,840.00 _ $5.381 $10,760.00 $0.00. N/Bi
00 ft X24"Smooth Interior Corrugated $8.03 $12,0_45.00 _$8.56 _$12,840.00 _ $0.00
15_ ated Pipe_ 1 _ B
500 ft .36"Smooth Interior Corrugated Pipe _ $16.74 = $8,370.001 $17.98_ $8 990.00 I - $0.00 - N/B
Total Bid - _ - _ _$54,795.60 _ $57,500.00 - _ $0.00
1Manufacturer Bid - - --Not stated = = Hancor _ N/A =
G
Cit y of Beaumont
CEI. Council Agenda Item
'Miligullmoulmormm
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Matt Martin, Liability Administrator
MEETING DATE: January 16, 2002
AGENDA MEMO DATE: January 22, 2002
REQUESTED ACTION: Consider a resolution authorizing the settlement of the
claim of Margaret King.
RECOMMENDATION
Council approval of a resolution authorizing the settlement of the claim of Margaret King.
BACKGROUND
Council authorized the settlement of this clain in Executive Session January 8, 2002.
BUDGETARY IMPACT
There are sufficient funds in the Liability Trust Fund to pay the settlement amount of$15,262.88.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and City Attorney.
RECOMMENDED MOTION
Approve/Deny a resolution authorizing the settlement of the claim of Margaret King.
G:\ WESOLUTIICLAIMLAW.DOCUting-MM-1-02.wpd
RESOLUTION NO.
WHEREAS,the claim of Margaret King has been discussed in an Executive Session
properly called and held Tuesday, January 8, 2002; 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 Margaret King
in the amount of Fifteen-Thousand Two-Hundred Sixty-Two and 88/100 ($15,262.88)
Dollars.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of
January, 2002.
- Mayor -
G:1CG\RESOLUTIICLAIMLAW.DOC\RESO-CLAimmng 1-22-02,wpd.wpd
-�- City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: David K. Boyer, Assistant City Attorney
MEETING DATE: 22 January 2002
AGENDA MEMO DATE: 17 February 2002
REQUESTED ACTION: Council consider a resolution authorizing
the City Attorney or his designee to file
and prosecute a lawsuit against Joyce
McKinney, d/b/a Classic Kid Learning
Academy to collect on a delinquent Small
Business Revolving Loan.
RECOMMENDATION
Council approval of a resolution authorizing the City Attorney or his designee to file and prosecute
a lawsuit against Joyce McKinney, d/b/a Classic Kid Learning Academy to collect on a delinquent
Small Business Revolving Loan.
BACKGROUND
On 8`'January 2002 in Executive Session of the City Council pursuant to the posted agenda item
and in compliance with §551.071 of the Texas Government Code met with its attorneys and
considered matters related to the request of the Small Business Loan Committee for legal action
against Joyce McKinney, d/b/a Classic Kid Learning Academy to collect a delinquent loan. Having
considered the issue listed Council agreed to post the request on the regular agenda to consider a
resolution authorizing the City Attorney or his designee to file and prosecute a lawsuit against Joyce
McKinney,d/b/a Classic Kid Learning Academy to collect on a delinquent Small Business Revolving
Loan.
BUDGETARY IMPACT
$6215.14 Principal and Interest as of 8 Jaunuary 2002 with interest accruing at $1.12 per day.
PREVIOUS ACTION
None.
S:IAGENDAIAGENDA ITEM MEMOS\Classic Kids Adgenda Itemmpd
SUBSEQUENT ACTION
None.
RECOMMENDED BY
David K. Boyer, Assistant Attorney and Lane Nichols, City Attorney.
RECOMMENDED MOTION
Approve/Deny a resolution authorizing the City Attorney or his designee to file and prosecute a
lawsuit against Joyce McKinney, d/b/a Classic Kid Learning Academy to collect on a delinquent
Small Business Revolving Loan.
SAAGF.NDA\AGFNDA ITEM MEMOWlassic Kids Adgenda Item.wpd