Loading...
HomeMy WebLinkAboutPACKET JUN 04 2002 t 9741, City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 4, 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 approving a resolution for the engagement of bond counsel and a placement agent relating to the proposed issuance of S30,000,000 Waterworks and Sewer System Revenue Bonds, Series 2002. 2. Consider approving a contract for the demolition of the structure located at 655 San Jacinto. 3. Consider approving a historic preservation loan for property located at 2434 Liberty. (Oaks Historic District) 4. Consider a resolution authorizing the City Manager to execute an agreement with the Texas Department of Transportation (TxDOT) to install a traffic signal at the intersection of Walden Road and FM364 (Major Drive). COMMENTS • Councilmembers comment on various matters • City Manager's Report- City Manager Workday-Trash Pick Up; 2002 UPARR Grant Award; 126`h Annual State Firemen's & Fire Marshals' Association Training Conference; Neighborhood Planning; Keep Texas Beautiful Program Awards; Lot and MLK Parkway Maintenance; 800 MHz Radio Communication System; Tyrrell Park Horse Stables; Water Pond Entergy Environmental Grant; Art Museum of Southeast Texas • 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 James Harris City of Beaumont v. Ralph Hodges, Jr. Christian Jayme v. City of Beaumont • Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Clerk 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 June 4, 2002 Consider approving a resolution for the engagement of bond counsel and a placement agent relating to the proposed issuance of $30,000,000 Waterworks and Sewer System Revenue Bonds, Series 2002 I City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kandy Daniel, Treasurer MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 29, 2002 REQUESTED ACTION: Council consider a resolution approving the engagement of bond counsel and a placement agent relating to the proposed issuance of$30,000,000 Waterworks and Sewer System Revenue Bonds, Series 2002. RECOMMENDATION The administration requests approval of a resolution authorizing the engagement of Orgain, Bell &Tucker, L.L.P., Beaumont, Texas, as bond counsel and RBC Dain Rauscher, Houston, Texas, as placement agent in order to proceed with the issuance of$30,000,000 Waterworks and Sewer System Revenue Bonds, Series 2002. BACKGROUND $30 million in Revenue Bonds is being issued to finance the expansion, repair, renovation and related improvements to the waterworks and sewer system. Based on current market rates, the City's financial advisor has recommended that the bonds be privately placed and issued as variable rate debt. Variable rate debt offers flexibility of payout structure, reduced issuance costs and historically lower interest cost than fixed rate debt. At no time during the past fifteen years would the average cost of variable rate debt have exceeded the cost of fixed rate debt. Issuance of the bonds is scheduled for July 9, 2002 with delivery and receipt of the proceeds by the City on August 14, 2002. BUDGETARY IMPACT All debt and other expenses shall be incurred by the Water Fund which is supported by water and sewer revenues as generated through user fees. PREVIOUS ACTION A council workshop was held on May 21, 2002to discuss the issuance of Revenue Bonds as variable rate debt. SUBSEQUENT ACTION Subsequent Council action will be requested to approve the issuance of the$30 million in Revenue Bonds on July 9, 2002. RECOMMENDED BY City Manager and Treasurer. RECOMMENDED MOTION Approve/Deny resolution authorizing the engagement of Orgain, Bell & Tucker, L.L.P., Beaumont, Texas, as bond counsel and RBC Dain Rauscher, Houston, Texas, as placement agent in order to proceed with the issuance of $30,000,000 Waterworks and Sewer System Revenue Bonds, Series 2002. RESOLUTION APPROVING ENGAGEMENT OF BOND COUNSEL AND A PLACEMENT AGENT WHEREAS, The City of Beaumont, Texas (the "City") proposes to sell approximately $30,000,000 of its City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2002 (the "Bonds"), the proceeds of which will be used to finance improvements, repairs, upgrades and expansion to the City's waterworks and sewer system (the "Project"); WHEREAS, in order to proceed with the Project and the issuance of the Bonds, the City desires to authorize the employment of bond counsel and a placement agent; NOW, THEREFORE, BE IT RESOLVED BE THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: 1. The City is authorized to and hereby employs Orgain, Bell & Tucker, L.L.P., Beaumont, Texas, as bond counsel for the issuance of the Bonds, pursuant to the terms of the engagement letter dated May 24, 2002, presented by Orgain, Bell & Tucker, L.L.P. to the City. 2. The City is authorized to and hereby employs RBC Dain Rauscher, Houston, Texas, as placement agent for the City in connection with the issuance of the Bonds. 3. The City and its bond counsel and placement agent are authorized to proceed with taking all action appropriate for the issuance of the Bonds; provided, however, that the Bonds shall be issued only if the final terms and provisions thereof are hereinafter approved by the City Council. PASSED AND APPROVED this day of 12002. Mayor ATTEST: City Clerk (SEAL) ORGAIN, BELL & TuCKER, L.L.P. ATTORNEYS AT LAW 470 ORLEANS STREET OTHER OFFICES LANCE FOX R. O. BOX 1 75 1 HOUSTON RARrhER EXTENSION I 375 BEAUMONT, TEXAS 77704 -1 751 AUSTIN EMAIL LCF@CHT COM TELEPHONE (409) 838-641 2 SILSBEE FAX (409) 838-6959 WWW.OBT.COM May 24, 2002 City of Beaumont ATTENTION: Stephen J. Bonzcek, City Manager 801 Main Street Beaumont, TX 77701 Re: Bond Counsel Agreement Dear Mr. Bonzcek: This letter will confirm the terms of our engagement as bond counsel to the City of Beaumont, Texas (the "City") relating to the City's proposed issuance of its Waterworks and Sewer System Revenue Bonds, Series 2002, in the estimated principal amount of $30,000,000 (herein collectively referred to as the "Bonds"). As bond counsel, the services to be provided by our firm will include (1) preparation and drafting of all documents customarily prepared by bond counsel in order to issue the Bonds, (2) preparation and delivery of our firm's opinions relative to the tax-exempt status of the Bonds and the absence of registration requirements, (3) assistance in preparation of any official statements used to market the Bonds, as well as preparation of disclosure certificates to be delivered by the City, (4) review of the disclosure investigations made on behalf of the City, (5) preparation and filing of all documents necessary to obtain approval of the Attorney General of the State of Texas and registration of the Bonds with the Comptroller of Public Accounts, (6) review and examination of all bond insurance agreements, if applicable, and (7) review of any bond purchase agreement proposed by the underwriters for the Bonds. We will provide these services to the City for a fee equal to 20 basis points (i.e., two-tenths of one percent) of the face amount of the bonds issued, but subject to a minimum fee of$15,000. If the Bonds are issued in more than one series, then this fee schedule will be applicable to each series of Bonds that are issued. Payment of the fee will be contingent upon the actual sale of the Bonds, and the fee will be payable only at the time of delivery of the Bonds. In addition to payment of the fees set forth above, the City will reimburse our firm for the reasonable and actual out-of-pocket expenses incurred in each financing transaction. Such expenses typically average approximately S1,000 to $1,500 per transaction. These expenses are in addition to the expenses the City will incur for publication costs and the fee payable to the Texas Attorney General's Office for its examination and approval of the Bonds. We very much appreciate the opportunity to serve the City in this matter. Yours very truly, ORG N, BELL TUCKER,L.L.P. Lance C. Fox ACCEPTED AND AGREED TO this day of , 2002. THE CITY OF BEAUMONT,TEXAS By: Its: 2 DRAFT i (A political subdivision of the State of Texas located within County,Texas) BONDS, SERIES 200_ PLACEMENT AGENCY AGREEMENT 200 Ladies and Gentlemen: The undersigned, RBC Dain Rauscher Inc. (the "Placement Agent"), offers to enter into the following agreement with the (the "Issuer"), which, upon the Issuer's written acceptance of this offer,will be binding upon the Issuer and upon the Placement Agent. This offer is made subject to the Issuer's written acceptance hereof on or before 10:00 p.m., Houston, Texas time, on 200_, and, if not so accepted, will be subject to withdrawal by the Placement Agent upon notice delivered to the Issuer at any time prior to the acceptance hereof by the Issuer. Terms not otherwise defined in this Placement Agency Agreement shall have the same meanings set forth in the Bond Order(as defined herein). Placement of the Bonds. Subject to the terms and conditions and in reliance upon the representations, warranties, and agreements set forth herein, the Placement Agent hereby agrees to use its best efforts to arrange for the placement of, and the Issuer hereby agrees to use its best efforts to deliver to the persons designated by the Placement Agent, all, but not less than all, of the Issuer's $ Bonds, Series 200_ (the "Bonds"), at a purchase price of 100% of the aggregate principal amount of the Bonds. Inasmuch as this placement of Bonds represents a negotiated transaction, the Issuer understands, and hereby confirms, that the Placement Agent is not acting as a fiduciary of the Issuer, but rather is acting solely in its individual capacity as a Placement Agent. The principal amount of the Bonds to be issued, the maturities, the interest rates per annum and the Rate Periods are set forth in the Officer's Pricing Certificate and Schedule I hereto. The Bonds shall be as described in, and shall be issued and secured under and pursuant to the provisions of an order adopted by the Issuer on 200_(the"Bond Order"). Contemporaneous with the delivery of the Bonds, the Issuer shall pay to the Placement Agent a placement fee of$ (the "Placement Fee") as compensation for the placement of all of the Bonds by the Closing Date(hereinafter defined). Such fee,which includes reimbursement for all out-of-pocket legal expenses incurred by the Placement Agent, shall not be payable if the Placement Agent fails to place all of the Bonds for purchase by the Closing Date. The Placement Fee shall be payable in immediately available funds on the Closing Date. Representations, Warranties, and Covenants of the Issuer. The Issuer hereby represents and warrants to and covenants with the Placement Agent that: The Issuer is a (an) duly created, organized, and existing under the HOU:704062.1 DRAFT laws of the State of Texas (the "State"), including specifically the and has full legal right, power, and authority, and at the date of the Closing will have full legal right, power, and authority and the Bond Order (i) to enter into, execute, and deliver this Placement Agency Agreement,the Bond Order, and all documents required hereunder and thereunder to be executed and delivered by the Issuer; (ii) to sell, issue, and deliver the Bonds as provided herein; and (iii) to carry out and consummate the transactions contemplated by this Placement Agency Agreement and the Bond Order, and the Issuer has complied, and will at the Closing be in compliance in all respects, with the terms of and the Bond Order as they pertain to such transactions; By all necessary official action of the Issuer prior to or concurrently with the acceptance hereof, the Issuer has duly authorized all necessary action to be taken by it for(i) the adoption of the Bond Order and the issuance and sale of the Bonds; (ii) the approval, execution, and delivery of, and the performance by the Issuer of the obligations on its part,contained in the Bonds,the Bond Order,and this Placement Agency Agreement;and(iii) the consummation by it of all other transactions contemplated by the Bond Order, this Placement Agency Agreement, and any and all such other agreements and documents as may be required to be executed, delivered, and/or received by the Issuer in order to carry out, give effect to, and consummate the transactions contemplated herein; The Bond Order and this Placement Agency Agreement constitute legal, valid, and binding obligations of the Issuer, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium, and other similar laws and principles of equity relating to or affecting the enforcement of creditors' rights; the Bonds, when issued, delivered and paid for, in accordance with the Bond Order and this Placement Agency Agreement, will constitute legal, valid, and binding obligations of the Issuer entitled to the benefits of the Bond Order and enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium, and other similar laws and principles of equity relating to or affecting the enforcement of creditors' rights; upon the issuance, authentication, and delivery of the Bonds as aforesaid, the Bond Order will provide, for the benefit of the holders, from time to time, of the Bonds,the legally valid and binding pledge of and lien it purports to create as set forth in the Bond Order; The Issuer is not in breach of or default under any applicable constitutional provision, law, or administrative regulation of the State or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement, or other instrument to which the Issuer is a party or to which the Issuer is otherwise subject, and no event has occurred and is continuing which constitutes or with the passage of time or the giving of notice, or both, would constitute a default or event of default by the Issuer under any such instrument; and the execution and delivery of the Bonds, this Placement Agency Agreement, and the adoption of the Bond Order and compliance with the provisions on the Issuer's part contained therein, will not conflict with or constitute a breach of or default under any constitutional provision, administrative regulation,writ, injunction, decree, or award binding on the Issuer, any judgment, decree, loan agreement, indenture, bond, note, resolution,agreement,or other instrument to which the Issuer is a party or to which the Issuer is otherwise subject or under the terms of any such law,regulation,or instrument,except as provided by the Bonds and the Bond Order; All authorizations, approvals, licenses, permits, consents, and orders of any governmental authority, legislative body, board, agency, or commission having jurisdiction of the matters which are required for the due authorization of, which would constitute a condition precedent to, or the absence of which would materially adversely affect the due performance by the Issuer of its obligations under this Placement Agency Agreement, the Bond Order, and the Bonds have been duly obtained prior to Closing, except for the approval of the Bonds by the Attorney General of the State of Texas and the registration of the Bonds by the Comptroller of Public Accounts of the State of Texas as to which the Issuer will use all reasonable efforts to obtain and except for such approvals, consents,and orders as may be required under the Blue Sky or securities laws of any jurisdiction in connection with the offering and sale of the Bonds; There is no legislation, action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, government agency, public board, or body, pending or, to the best knowledge of the Issuer, after due inquiry threatened against the Issuer, affecting the existence of the Issuer or the titles of its officers to their t IOU:704062.1 2 DRAFT respective offices, or affecting or seeking to prohibit,restrain, or enjoin the sale, issuance, or delivery of the Bonds or the collection of the ad valorem taxes pledged to the payment of principal of and interest on the Bonds pursuant to the Bond Order or in any way contesting or affecting the validity or enforceability of the Bonds,the Bond Order, or this Placement Agency Agreement, or contesting the powers of the Issuer or any authority for the issuance of the Bonds, the adoption of the Bond Order or the execution and delivery of this Placement Agency Agreement, nor,to the best knowledge of the Issuer, is there any basis therefor, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Bonds, the Bond Order, or this Placement Agency Agreement; The Issuer is not a party to any litigation or other proceeding pending or, to its knowledge, threatened which, if decided adversely to the Issuer, would have a materially adverse effect on the financial condition of the Issuer; Prior to the Closing the Issuer will not offer or issue any bonds, notes, or other obligations for borrowed money or incur any material liabilities, direct or contingent, payable from or secured by any of the revenues or assets which will secure the Bonds except the ; The Issuer will apply, or cause to be applied,the proceeds from the sale of the Bonds as provided in and subject to all of the terms and provisions of the Bond Order and not take or omit to take any action which action or omission will adversely affect the exclusion from gross income for federal income tax purposes of the interest on the Bonds; Any certificate, signed by any official of the Issuer authorized to do so in connection with the transactions contemplated by this Placement Agency Agreement, shall be deemed a representation and warranty by the Issuer to the Placement Agent as to the statements made therein;and The Issuer covenants that between the date hereof and the Closing it will take no actions which will cause the representations and warranties made in this Section to be untrue as of the Closing. Closing. At or before 10:00 a.m. Houston, Texas time, on _, 200_, or at such other time and date as shall have been mutually agreed upon by the Issuer and the Placement Agent(the "Closing"), the Issuer will, subject to the terms and conditions hereof, deliver the Bonds to the purchaser or purchasers so designated by the Placement Agent, duly executed and authenticated,together with the other documents hereinafter mentioned, and the purchaser or purchasers will, subject to the terms and conditions hereof, accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 of this Placement Agency Agreement in immediately available funds by wire transfer to the account of the Issuer as indicated by (the "Registrar"). Payment for the Bonds as aforesaid shall be made at the offices of the Registrar or such other place as shall have been mutually agreed upon by the Issuer and the Placement Agent. Delivery of the Bonds shall be made at the offices of ,("Bond Counsel"), in ,Texas, or such other place, as shall have been mutually agreed upon by the Issuer and the Placement Agent. The Bonds shall be printed or lithographed; shall be prepared and delivered as fully registered bonds in denominations of$100,000 or any integral multiple of$5,000 over $100,000; shall be registered in the names as shall be requested by the Placement Agent at least five business days prior to the Closing; and shall be made available at least one business day before the Closing for purpose of inspection at the offices of the Placement Agent or such other place as shall be reasonably requested by the Placement Agent. Closing Conditions. The Placement Agent has entered into this Placement Agency Agreement in reliance upon the representations, warranties, and agreements of the Issuer contained herein, and in reliance upon the representations,warranties, and agreements to be contained in the documents and instruments to be delivered at the Closing and upon the performance by the Issuer of its obligations hereunder,both as of the date hereof and as of the date of the Closing. Accordingly, the Placement Agent's obligations under this Placement Agency Agreement to arrange for the placement of the Bonds shall be conditioned upon the performance by the Issuer of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing, and shall also be HOU:704062.1 3 DRAFT subject to the following additional conditions including the delivery by the Issuer of such documents as are enumerated herein, in form and substance reasonably satisfactory to the Placement Agent: The representations and warranties of the Issuer contained herein shall be true, complete, and correct on the date hereof and on and as of the date of the Closing,as if made on the date of the Closing; The Issuer shall have performed and complied with all agreements and conditions required by this Placement Agency Agreement to be performed or complied with by it prior to or at the Closing; At the time of the Closing,(i)the Bond Order and the Bonds shall be in full force and effect in the form heretofore approved by the Placement Agent and shall not have been amended,modified,or supplemented;(ii) the net proceeds of the sale of the Bonds and any funds to be provided by the Issuer shall be deposited and applied as described in the Bond Order; and (iii) all actions of the Issuer required to be taken by the Issuer shall be performed in order for Bond Counsel and to deliver its opinions referred to hereafter; At or prior to the Closing, the Bond Order shall have been duly executed and delivered by the Issuer and the Issuer shall have duly executed and delivered and the Registrar shall have duly authenticated the Bonds; At the time of the Closing,the Issuer shall deliver the Bonds; At the time of the Closing,there shall not have occurred any change or any development involving a prospective change in the condition, financial or otherwise, or in the revenues or operations of the Issuer, that in the judgment of the Placement Agent, is material and adverse and that makes it, in the judgment of the Placement Agent,impracticable to market the Bonds; The Issuer shall not have failed to pay principal or interest when due on any of its outstanding obligations for borrowed money; All steps to be taken and all instruments and other documents to be executed, and all other legal matters in connection with the transactions contemplated by this Placement Agency Agreement shall be reasonably satisfactory in legal form and effect to the Placement Agent; At or prior to the Closing, the Purchaser (as hereinafter defined) and the Placement Agent shall have received originals or certified copies of each of the following documents: (i) The Bond Order,having been duly adopted by the Issuer as being in full force and effect, with such supplements or amendments as may have been agreed to by the Placement Agent; (ii) The Liquidity Agreement (as defined in the Bond Order), having been executed by the Issuer and the Bank(as defined in the Bond Order); (iii) The opinion of Bond Counsel with respect to the Bonds, in form and substance acceptable to the Placement Agent; (iv) A supplemental opinion of Bond Counsel addressed to the Issuer and the Placement Agent,substantially to the effect that: (A) the Bond Order has been duly adopted and is in full force and effect;and (B) the Bonds are exempt securities that do not require registration under the Securities Act of 1933,as amended(the"1933 Act"), and the Trust Indenture Act of 1939,as amended (the "Trust Indenture Act") and it is not necessary, in connection with the offering and sale of the I IOU:704062.I 4 DRAFT Bonds,to register the Bonds or the Bond Order under the 1933 Act or to qualify the Bond Order under the Trust Indenture Act. (v) An opinion, dated the date of the Closing and addressed to the Issuer and the Placement Agent, of counsel for the Bank, in form and substance satisfactory to Bond Counsel and the Placement Agent; (vi) A certificate, dated the date of Closing, of an appropriate official of the Issuer to the effect that(A)all official action of the Issuer relating to this Placement Agency Agreement,the Bonds,the Bond Order, and the Liquidity Agreement are in full force and effect and have not been amended, modified, supplemented, or repealed, except as contemplated hereby or as may have been agreed to by the Placement Agent; (B)the representations and warranties of the Issuer contained herein are true and correct in all material respects on and as of the date of Closing as if made on the date of Closing; (C)no litigation or proceeding against it is pending or, to its knowledge, threatened in any court or administrative body nor is there a basis for litigation which would (1) contest the right of the directors or officials of the Issuer to hold and exercise their respective positions, (2) contest the due organization and valid existence of the Issuer, (3) contest the validity, due authorization, and execution of the Bonds, the Bond Order, the Liquidity Agreement, or this Placement Agency Agreement or (4) attempt to limit, enjoin, or otherwise restrict or prevent the Issuer from functioning and collecting revenues, including payments on the Bonds, pursuant to the Bond Order, and other income or the collection of the ad valorem taxes pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof; and(D)any resolutions or orders of the Issuer authorizing the execution, delivery, and/or performance of the Bond Order, the Bonds, the Liquidity Agreement, and this Placement Agency Agreement have been duly adopted by the Issuer,are in full force and effect and have not been modified,amended,or repealed; (vii) Any other certificates and opinions required by the Bond Order for the issuance thereunder of the Bonds; (viii) The approving opinion of the Attorney General of the State of Texas in respect of the Bonds; (ix) The registration certificate of the Comptroller of Public Accounts of the State of Texas in respect of the Bonds; (x) Investment letters from each purchaser of the Bonds,in form and substance acceptable to Bond Counsel;and (xi) Such additional legal opinions, certificates, instruments, and other documents as the Placement Agent may reasonably request to evidence the truth and accuracy,as of the date hereof and as of the date of the Closing, of the Issuer's representations and warranties contained herein and the due performance or satisfaction by the Issuer on or prior to the date of the Closing of all the respective agreements then to be performed and conditions then to be satisfied by the Issuer. All of the opinions, letters,certificates, instruments, and other documents mentioned above or elsewhere in this Placement Agency Agreement shall be deemed to be in compliance with the provisions hereof if, but only if, they are in form and substance satisfactory to the Placement Agent. Limitation on Obligation to Place the Bonds. (a) The Placement Agent shall arrange for the initial purchaser(s) of the Bonds (the "Purchaser") to pay the purchase price of the Bonds purchased by it in immediately available funds. (b) Subject to the conditions stated in this Placement Agreement, the Issuer shall have the Bonds delivered to the Purchaser (as directed by the Purchaser) and the Purchaser shall have the purchase price of the HOU:704062.1 5 DRAFT Bonds deposited,in immediately available funds,with the Registrar to be applied pursuant to the Bond Order. (c) Nothing contained in this Placement Agency Agreement shall in any way obligate the Placement Agent to purchase any Bond in the event the Purchaser fails to pay the purchase price of such Bonds on the date of Closing. If the purchase price for all of the Bonds is not paid,no compensation shall be due to the Placement Agent hereunder, except that if the Issuer consents to a partial delivery of the Bonds then the Placement Agent shall receive a pro-rata amount of its Placement Fee. Expenses. (a) The Placement Agent shall be under no obligation to pay,and the Issuer shall pay, any expenses incident to the performance of the Issuer's obligations hereunder, including, but not limited to (i)the cost of preparation and printing of the Bonds; (ii) the fees and disbursements of Bond Counsel; (iii) the fees and disbursements of any engineers, accountants, and other experts, consultants, or advisers retained by the Issuer; (iv) the fees, if any, for bond ratings; (v) the fees and expenses of the Registrar; (vi) the out-of-pocket, miscellaneous, and closing expenses, including the cost of travel,of the officers of the Issuer;and(vii)any other expenses mutually agreed to by the Issuer and the Placement Agent to be reasonably considered expenses of the Issuer which are incident to the transactions contemplated hereby. (b) The Placement Agent shall pay only for out-of-pocket and legal expenses incurred by the Placement Agent, including the fees and disbursements of counsel retained by the Placement Agent, if any. (c) If this Placement Agency Agreement shall be terminated by the Placement Agent because of any failure or refusal on the part of the Issuer to comply with the terms or to fulfill any of the conditions of this Placement Agency Agreement, or if for any reason the Issuer shall be unable to perform its obligations under this Placement Agency Agreement, the Issuer will reimburse the Placement Agent for all out-of-pocket expenses (including the fees and disbursements of its counsel, if any) reasonably incurred by the Placement Agent in connection with this Placement Agency Agreement or the offering contemplated hereunder. Notices. Any notice or other communication to be given to the Issuer under this Placement Agency Agreement may be given by delivering the same in writing to Conroe Independent School District, 701 N. Thompson Street, Conroe, Texas 77301, Attention: Superintendent, and any notice or other communication to be given to the Placement Agent under this Placement Agency Agreement may be given by delivering the same in writing to RBC Dain Rauscher Inc., 1001 Fannin,Suite 400,Houston,Texas 77002,Attention: Frank Ildebrando. Parties in Interest. This Placement Agency Agreement as heretofore specified shall constitute the entire agreement between us and is made solely for the benefit of the Issuer and the Placement Agent (including successors or assigns of the Placement Agent) and no other person shall acquire or have any right hereunder or by virtue hereof. This Placement Agency Agreement may not be assigned by the Issuer or the Placement Agent. All of the Issuer's representations, warranties, and agreements contained in this Placement Agency Agreement shall remain operative and in full force and effect, regardless of(i) any investigations made by or on behalf of the Placement Agent; (ii) delivery of and payment for the Bonds pursuant to this Placement Agency Agreement; and (iii)any termination of this Placement Agency Agreement. Effectiveness. This Placement Agency Agreement shall become effective upon the acceptance hereof by the Issuer and shall be valid and enforceable at the time of such acceptance. Choice of Law. THIS PLACEMENT AGENCY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS. Severability. If any provision of this Placement Agency Agreement shall be held or deemed to be or shall, in fact, be invalid, inoperative, or unenforceable as applied in any particular case in any jurisdiction or jurisdictions, or in all jurisdictions because it conflicts with any provision of any Constitution, statute,rule of public policy, or any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative, or unenforceable in any other case or circumstance, or of rendering any other provision or provisions of this Placement Agency Agreement invalid, inoperative,or unenforceable to any extent whatever. liOU:704062.1 6 DRAFT Business Day. For purposes of this Placement Agency Agreement, "Business Day" means any day on which the New York Stock Exchange is open for trading. Section Headings. Section headings have been inserted in this Placement Agency Agreement as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Placement Agency Agreement and will not be used in the interpretation of any provisions of this Placement Agency Agreement. Counterparts. This Placement Agency Agreement may be executed in several counterparts each of which shall be regarded as an original(with the same effect as if the signatures thereto and hereto were upon the same document)and all of which shall constitute one and the same document. If you agree with the foregoing, please sign the enclosed counterpart of this Placement Agency Agreement and return it to the Placement Agent. This Placement Agency Agreement shall become a binding agreement between you and the Placement Agent when at least the counterpart of this letter shall have been signed by or on behalf of each of the parties hereto. Respectfully submitted, RBC DAIN RAUSCHER INC. By: Name: Frank J. Ildebrando Managing Director APPROVED AND ACCEPTED as of the date hereof- By: Name: ATTEST: By: Name: IIOU:704062.1 DRAFT EXECUTION PAGE OF PLACEMENT AGENCY AGREEMENT SCHEDULEI Series 200_ Interest Accrues From: Date of Delivery Principal Maturity Initial Initial Amount Interest Rate Rate Period $(a) (b) (c) $(a) (b) (c) $(a) (b) (c) (a) The Bonds are subject to optional redemption on the dates and in the amounts set forth in the Bond Order. (b) To be determined prior to closing as provided in the Bond Order. (c) Initial Rate Period as established in accordance with the Bond Order. HOU:704062.1 2 June 4, 2002 Consider approving a contract for the demolition of the structure located at 655 San Jacinto `� City of Beaumont AW -IMMILIMESM EL Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 23, 2002 REQUESTED ACTION: Council consider award of a bid for the demolition of the structure located at 655 San Jacinto. RECOMMENDATION Administration recommends the award of a bid to C & C Demolition, Inc. of Orange, Texas in the amount of$109,000 for the demolition and removal of the structure located at 655 San Jacinto Street in Beaumont. BACKGROUND Six(6)bids were received Thursday,April 25,2002,for the demolition and removal of the structure located at 655 San Jacinto. The 11,000 square ft. structure is a rice dryer that has not been in use since 1975. The structure is considered unsafe as several fires have destroyed the interior flooring. The structure contains a minimal amount of asbestos which will be abated by the contractor prior to the demolition. The site, which is located in a residential area, will be secured during the demolition process. Disposal of the concrete removed from the site will be the responsibility of the contractor and will not be deposited in the City's landfill. The site will be excavated four feet below ground level and compacted with fill material. The rice dryer was originally owned and operated by the American Rice Growers CO-OP Association which is no longer in business. The rice dryer remained vacant and unused and property taxes were not paid. Property ownership reverted to Jefferson County for non payment of taxes. A raze order was issued by City Council in February. On April 2, 2002, Charles Richard purchased the property at the Jefferson County Sheriff's sale. Demolition of 655 San Jacinto May 23, 2002 Page 2 The bids received are as follow: Contractor Price Completion Time C & C Demolition $109,000 90 Working Days Orange, TX Cherry Demolition $173,100 65 Working Days Houston, TX D. H. Griffin of TX $221,577 40 Working Days Houston, TX J.T.B. Services $290,500 60 Working Days Houston, TX Coastal Demolition $338,000 80 Working Days Beaumont, TX CST Environmental, Inc. $368,800 90 Working Days Houston, TX The demolition project is expected to begin during the 1 S`week of July. C &C Demolition plans to subcontract the asbestos abatement only. There are no Minority Business Enterprises participating in this project. BUDGETARY IMPACT Funding is available through Community Development Block Grant funds. The cost ofthe demolition will be billed to the current property owner. PREVIOUS ACTION A raze order was issued by City Council on February 26, 2002. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Clean Community Director. RECOMMENDED ACTION Approve/Deny the award of a bid to C & C Demolition, Inc. in the amount of$109,000 for the demolition and removal of the structure located at 655 San Jacinto. 3 June 4, 2002 Consider approving a historic preservation loan for property located at 2434 Liberty. (Oaks Historic District) ��K N,117!zj- Cit y of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Stephen C. Richardson, Planning Manager MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 29, 2002 REQUESTED ACTION: Council consider a request for an historic preservation loan for property located at 2434 Liberty. (Oaks Historic District) RECOMMENDATION The Administration recommends approval of a historic preservation loan request in the amount of $15,538 for property at 2434 Liberty. (Oaks Historic District) BACKGROUND Bill Modica,the applicant and property owner,is requesting a loan for renovations to be done to his residence at 2434 Liberty. The amount of the loan is $15,538. Work to be done to the house involves removing the old concrete shingles and replacing them with an architectural shingle,demolishing and rebuilding the front porch,replacing rotten wood,repairing window screens and painting the house. BUDGETARY IMPACT The loan will come from the Historic Preservation Revolving Loan Fund. This loan fund consists of CDBG dollars. The rate of repayment will be approximately $327 per month for 48 months. PREVIOUS ACTION At a Public Hearing ofthe Historic Landmark Commission on May 13,2002,the Commission voted 8-0 to approve the historic preservation loan request in the amount of$15,538. SUBSEQUENT ACTION None. RECOMMENDED BY Historic Landmark Commission, City Manager, Executive Assistant to City Manager/Economic Development Director and the Planning Manager. RECOMMENDED MOTION Approve/Deny a request for Historic Preservation Loan monies in the amount of $15,538 for property located at 2434 Liberty (Oaks Historic District). 4 June 4, 2002 Consider a resolution authorizing the City Manager to execute an agreement with the Texas Department of Transportation(TxDOT)to install a traffic signal at the intersection of Walden Road and FM364 (Major Drive) 0 wwCi of Beaumont Council Agenda Item i . • EL TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Mark Horelica, Transportation Manager MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 21, 2002 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute an agreement with the Texas Department of Transportation (TxDOT) to install a traffic signal at the intersection of Walden Road and FM364 (Major Drive). RECOMMENDATION Administration recommends approval of a resolution authorizing the City Manager to execute an agreement with the Texas Department of Transportation to install a traffic signal at the intersection of Walden Road and FM364 (Major Drive). BACKGROUND The Texas Department of Transportation has approved the installation of a traffic signal at the intersection of Walden Road and FM 364 (Major Drive). In order for the traffic signal to be installed as a part of the FM 364 (Major Drive) widening project, an agreement between the City and the State of Texas must be executed. BUDGETARY IMPACT None. The agreement allows the State of Texas to complete the construction of the signal, including all labor, equipment, and material costs. The City will maintain the signal once the installation is complete. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director, City Engineer and Transportation Manager RECOMMENDED MOTION Approve/Deny a resolution authorizing the City Manager execute an agreement with the Texas Department of Transportation to install a traffic signal at the intersection of Walden Road and FM364 (Major Drive). FM364.wpd 05/21/02 UO%NF� City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 4, 2002 1:30 P.M. CONSENT AGENDA Approval of minutes * Confirmation of committee appointments A) Approve the waiver of penalties and interest related to five tax accounts B) Approve a contract for the Summer Food Service Program C) Approve a resolution authorizing the granting of a License to Encroach to Apollo Environmental Strategies, Inc. into the rights-of-way of Avenue A D) Approve a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition E) Approve a deferred loan from the City of Beaumont to Ms. Kathryn Green in the amount of $62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont, Texas CONSENT AGENDA JUNE 49 2002 * Committee Appointments Walter Kyles would be appointed to the Planning and Zoning Commission. The term will commence June 4, 2002 and expire June 3, 2005. (Councilmember Bobbie J. Patterson) Rachael Hebert would be appointed to the Martin Luther King,Jr. Parkway Commission. The term will commence June 4, 2002 and expire June 3, 2004. (Councilmember Audwin Samuel) John Cobb would be appointed to the Martin Luther King,Jr. Parkway Commission. The term will commence June 4, 2002 and expire June 3, 2004. (Councilmember Lulu Smith) A) Approve the waiver of penalties and interest related to five tax accounts Administration recommends approval of the waiver of penalties and interest related to five tax accounts. The Jefferson County Tax Office has accepted five payments that were processed according to Section 33.011 of the State Property Tax Code. Section 33.011 states "The governing body of a taxing unit may provide for the waiver of penalties and interest on a delinquent tax if an act or omission of an officer, employee, or agent of the taxing unit caused the taxpayer's failure to pay the tax before the delinquency and if the tax is paid within 21 days after the taxpayer knows or should know of the delinquency." The Commissioners' Court met on May 6, 2002 and approved waiver of penalty and interest on these accounts which are listed in the letter from the Tax Assessor-Collector. A copy of the memorandum is attached for your review. B) Approve a contract for the Summer Food Service Program Administration recommends awarding a contract to Regal Food Service, Inc. for furnishing lunches for the Summer Food Service Program sponsored by the Recreation Division in the amount of $1.95 per lunch served. The program, which is funded by the U.S. Department of Agriculture and administered by the Texas Department of Human Services, provides free, nutritious and well balanced meals to any child up to eighteen (18) years of age. This is the eleventh year the Recreation Division has participated in this program. The Recreation Division will provide lunches at Sprott Park, Roberts Park, Alice Keith Park, Magnolia Park, Elmo Willard Library and Theodore R. Johns, Sr. Library. The program will begin June 3, 2002 and continue through August 2, 2002. Lunch will be served Monday through Friday excluding July 4, 2002. The number of lunches to be served at each location will be determined by the enrollment in summer activities, although participation is not a requirement to receive a lunch. The cost of each lunch served will be reimbursed to the City from the Texas Department of Human Services. The cost based on serving an estimated quantity of 9,000 lunches is $17,550. A copy of the staff memorandum is attached for your review. C) Approve a resolution authorizing the granting of a License to Encroach to Apollo Environmental Strategies, Inc. into the rights-of-way of Avenue A Administration recommends granting a License to Encroach to Apollo Environmental Strategies, Inc. Apollo Environmental Strategies, Inc. proposes to install a monitoring well onto the City's sixty foot (60') Avenue A right-of-way, adjacent to Lot 6, Block 1, Brockman Addition, Beaumont, Texas, near the intersection of Avenue A and Brockman Street. The monitoring well will cover a three square foot area. The license will cover the monitoring well at the following location: Five feet (5') east of the edge of pavement of Avenue A and sixty-eight feet (68') ten inches (10") north of the power pole at the corner of Avenue A and Brockman Street. The monitoring well is being installed to track various pollutants. The License Agreement protects the City from liability and provides a thirty(30) day cancellation clause. There is a one- time fee of$500 for the License to Encroach. A copy of the staff memorandum is attached for your review. D) Approve a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition Administration requests approval of a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition. The property described above currently has ten (10) weed liens totaling $2,329.17 which represents S1,101.25 in principal and $1,227.92 in interest and fees. Staff is recommending that the City accept a payment of$731.25 and authorize release of these liens dating from 1979 to 1991. The current assessed value of the property is 3,900. Genise Hawkins is in the process of purchasing the property from Uneeda Copes and has agreed to pay the amount recommended. Ms. Hawkins plans construct a four bedroom home on the property which would bring additional tax revenue to the City. Release of lien will provide an unencumbered title to the owner to enable the pending sale to Mr. Hawkins. A copy of the staff memorandum is attached for your review. E) Approve a deferred loan from the City of Beaumont to Ms. Kathryn Green in the amount of$62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont,Texas Administration recommends that Council authorize the City Manager to execute a deferred loan from the City of Beaumont to Ms. Kathryn Green in the amount of$62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont, Texas. 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 BY: Kyle Hayes, Economic Development Director MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 24, 2002 REQUESTED ACTION: Approve the waiver of penalties and interest related to five tax accounts. RECOMMENDATION The Administration recommends approval of the waiver of penalties and interest related to five tax accounts. BACKGROUND The Jefferson County Tax Office has accepted five payments that were processed according to Section 33.011 of the State Property Tax Code. Section 33.011 states "The governing body of a taxing unit may provide for the waiver of penalties and interest on a delinquent tax if an act or omission of an officer, employee, or agent of the taxing unit caused the taxpayer's failure to pay the tax before the delinquency and if the tax is paid within 21 days after the taxpayer knows or should know of the delinquency." The Commissioners' Court met on May 6, 2002 and approved waiver of penalty and interest on these accounts which are listed in the attached letter from the Tax Assessor-Collector. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Economic Development Director. RECOMMENDED MOTION Approve/Deny the waiver of penalties and interest related to five tax accounts. 50IV c NHPJ" K. JOHNSON TAX ASSESSOR-COLLECTOR NETTIE WILLIAMS TRUSS JEFFERSON COUNTY COURTHOUSE SYLVIA E.MYERS CHIEF DEPUTY P.O.BOX 2112 BEAUMONT,TEXAS 77704 / CHIEF OPERATIONS MGR. 409-835-8516 FAX 409-835-8589 May 7, 2002 ( �� Stephen Bonczek, City Manager City of Beaumont P. O. Box 3827 Beaumont, TX 77704 Dear Mr. Bonczek: The Tax Office has accepted five(5)payments that were processed according to Sec. 3 3.011 of the State Property Tax Code. For your information, Sec.33.011 reads as follows: "The governing body of a taxing unit may provide for the waiver of penalties and interest on a delinquent tax if an act or omission of an officer,employee,or agent of the taxing unit caused the taxpayer's failure to pay the tax before the delinquency and if the tax is paid within 21 days after the taxpayer knows or should know of the delinquency." The Commissioners'Court met on May 6,2002 and approved waiver of penalty and interest on these accounts which are listed on Attachment A. I am now requesting that you present this information to your governing body in order to ratify the Commissioners' Court action in accepting these payments. If you should have any problems or questions concerning this matter,please let me know right away. Please notify me in writing as soon as ratification has occurred. I look forward to hearing from you. Sincerely, MIRIAM K. JO SON Assessor-Collector of Taxes Jefferson County, Texas MKJ:tm Attachment app_waw AfA ATTACHMENT A CITY OF BEAUMONT - WAIVER OF P & I May 7, 2002 Taxpayer's Name Total Levy Waiver of P & I Account Number Paid Request 1. Bob Blackman 743.01 307.98 016500-004300 2. Barbara Smith 65.16 36.75 052600-009700 3. Aaron Davis 194.83 69.90 246405-000700 4. Wilfred Gray 164.45 358.50 281140-003400 5. Christina Mattix 167.64 35.20 700000-589431 B Cit y of Beaumont •�• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 29, 2002 REQUESTED ACTION: Council approval of a contract for the Summer Food Service Program. RECOMMENDATION Council consider awarding a contract to Regal Food Service, Inc., for furnishing lunches for the Summer Food Service Program sponsored by the Recreation Division in the amount of$1.95 per lunch served. BACKGROUND The program, which is funded by the U.S. Department of Agriculture and administered by the Texas Department of Human Services, provides free, nutritious, and well balanced meals to any child up to eighteen (18) years of age. This is the eleventh year the Recreation Division has participated in this program. The Recreation Division will provide lunches at Sprott Park, Roberts Park, Alice Keith Park, Magnolia Park, Elmo Willard Library, and Theodore R. Johns, Sr. Library. The program will begin June 3, 2002 and continue through August 2, 2002. Lunch will be served Monday through Friday excluding July 4, 2002. Fourteen(14)food service vendors were notified and three(3) submitted a bid. The bids received are as follow: VENDORS PRICE PER LUNCH Regal Food Service, Inc., Houston, TX $1.95 Moncla's, Inc., Beaumont, TX $2.25 F AB Catering, DeRidder, LA $3.49 Summer Food Service Program May 29, 2002 Page 2 The number of lunches to be served at each location will be determined by the enrollment in summer activities, although participation is not a requirement to receive a lunch. Last year approximately 8,953 meals were served at a cost of$1.825 per lunch for a total of$16,339.23. The quantity of lunches served last year was significantly fewer than in previous years due to the Beaumont Independent School District's participation in the Summer Food Service Program for the first time. BISD will provide free lunches at nine (9) campuses during the Summer of 2002 and it is expected that this will again reduce the number of lunches served by the City of Beaumont Recreation Division. BUDGETARY IMPACT The cost of each lunch served will be reimbursed to the City from the Texas Department of Human Services. The cost based on serving an estimated quantity of 9,000 lunches is $17,550. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director and Library Services Director. RECOMMENDED ACTION Approve/Deny a contract to Regal Food Service, Inc., for furnishing lunches for the Summer Food Service Program sponsored by the Recreation Division in the amount of $1.95 per lunch served. c V^W City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 20, 2002 REQUESTED ACTION: Council consider a resolution authorizing the granting of a License to Encroach to Apollo Environmental Strategies, Inc. into the rights-of-way of Avenue A. RECOMMENDATION Apollo Environmental Strategies, Inc. proposes to install a monitoring well onto the City's sixty foot (60') Avenue A right-of-way, adjacent to Lot 6, Block 1, Brockman Addition, Beaumont, Texas, near the intersection of Avenue A and Brockman Street. The monitoring well will cover a three square foot area. The license will cover the monitoring well at the following location: Five feet (5') east of the edge of pavement of Avenue A and sixty-eight feet (68') ten inches (10") north of the power pole at the corner of Avenue A and Brockman Street. Administration recommends authorization to grant License to Encroach. BACKGROUND The monitoring well is being installed to track various pollutants. The License Agreement protects the City from liability and provides a thirty (30) day cancellation clause. BUDGETARY IMPACT There is a one-time fee of$500 for the License to Encroach. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny approval to grant a License to Encroach to Apollo Environmental Strategies, Inc. into the right-of-way of Avenue A. age.-a/j Id LICENSE TO ENCROACH STATE OF TEXAS X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON X On the date last indicated below,the City of Beaumont, a municipal corporation, of Beaumont, Jefferson County, Texas, herein called "Licensor" and Apollo Environmental Strategies, Inc., hereinafter called "Licensee", contracted and agreed as set forth herein. Licensee desires a license from Licensor to use that real property (the subject of this license agreement) described as follows: Encroachment being onto the City's right-of-way, five feet (5') east of the edge of pavement of Avenue A and sixty-eight feet (68')ten inches (10") north of the power pole at the corner of Avenue A and Brockman. Said encroachment is shown on Exhibit "A", attached. NOW,THEREFORE, Licensor hereby grants to Licensee a license to occupy and use the subject property for the purpose of installing a groundwater monitoring well, subject to all of the terns and conditions hereof. Licensee shall notify Water/Sewer Dispatch at 409-880-3784 and Reliant Energy at 409- 866-1011, ext. 121, for locates forty-eight(48) hours prior to any excavation at site of encroachment. Licensee shall maintain the said monitoring well in a good and safe condition as may be required to protect the public from injury or property damage. Licensee shall upon completion of remediation activities, properly close said groundwater monitoring well, with plans subject to approval of the City of Beaumont Water Utilities Department. After one year from the date of this agreement, Licensee shall notify Licensor of their intent to continue using the monitoring well. Such notice should be sent to the City Engineer, City of Beaumont, P.O. Box 3827, Beaumont, Texas 77704. Subject property may continue to be occupied and used by Licensee solely in connection with the existing structures and for incidental purposes related thereto during the term of this license or until termination thereof. Said license shall terminate upon removal or demolition of said encroachment. Substantial improvements shall not be made upon any encroachment without first obtaining the written consent of Licensor and giving notice to Licensor in writing of how, when and to what extent such improvements are to be made. A copy of this license shall be attached to such notice. Substantial improvement means any repair, construction, or improvement of a structure, the cost of which equals or exceeds twenty-five percent (25%) of the market value of the structure either: (1) before the improvement or repair is started; or (2) if the structure has been damaged and is being restored,before the damage occurred. For the purposes of this definition, "substantial improvement" is considered to occur when the first alteration of any portion of the structure commences, whether or not that alteration affects the external dimensions of the structure. The term does not, however, include any projects or improvements of a structure to comply with existing state or local health, sanitary, or safety code specifications which are solely necessary to protect the health, safety and welfare of the public, inhabitants, or users of such structure. In the event the City of Beaumont, by resolution of the City Council, determines it needs the subject property, or any part thereof, for the benefit of the City or to protect the health, safety or welfare of the public, and it terminates this license or any part thereof, Licensee shall not receive any compensation and the City of Beaumont shall not be liable therefore, whether for the value of property taken, damage to the abutting or remaining property or improvement, loss of business or profit, loss of access, or otherwise. Licensee shall at all times indemnify and hold harmless Licensor and any franchised entity of licensor against, and pay in full, for all claims, losses, damages, law suits, attorney's fees, costs,judgements or expenses, that Licensor and any franchised entity of Licensor may sustain, incur, be required to pay or become liable for, resulting in any manner from the construction, maintenance, use, state of repair, or presence of such encroaching structure. Licensor, and any franchised entity of Licensor, reserves the right to make improvements, perform maintenance and construction to the right-of-way or premises covered by this license where such is deemed necessary for the health, welfare and safety of the community. In doing so, Licensor and any franchised entity of Licensor shall not be liable to Licensee for any damage occasioned thereby and Licensee shall not be entitled to prosecute or maintain a claim against such parties for any such damage sustained by Licensee to said encroaching structure or any abutting or attached structures, improvements or land caused by the removal or alteration of any encroachment. In addition, Licensee shall reimburse Licensor and any franchised entity of Licensor any additional costs resulting from the encroachment. Licensee shall not permit trees, shrubs, plants, or any object to be placed on the subject property in such a manner as to obstruct the view of traffic. As part of the consideration for this agreement, Licensee shall pay to Licensor the sum of Five Hundred Dollars ($500.00). Said sum being non-refundable. This license shall be recorded in the Real Property Records in the Office of the County Clerk of Jefferson County, Texas by Licensor. 2 of 4 This agreement is terminable by either party by giving written notice to the other specifying the date of termination. Said notice shall be given not less that thirty (30) days prior to the termination date, therein specified, and shall be recorded in the Real Property Records in the Office of the County Clerk of Jefferson County, Texas by Licensor. This license is neither assignable nor transferable except in conjunction with, and as part of, Licensee's conveyance of all the abutting property this license serves through probate or warranty deed or lease. In any such event, Licensor shall be notified of such occurrence by being delivered a copy of the document or documents conveying or leasing the same. Any notice to Licensor shall be sufficient if it is mailed or hand delivered to the Office of the City Engineer, City of Beaumont, P.O. Box 3827,Beaumont,Texas 77704. Any notice to Licensee shall be sufficient if mailed or hand delivered to the Office of Apollo Environmental Strategies, Inc., P.O. Box 12114, Beaumont, Texas 77726. IN WITNESS, WHEREOF,the parties hereto have executed this agreement as of the day of , 2002. LICENSOR CITY OF BEAUMONT By: Stephen J. Bonczek City Manager LICENSEE By: Printed name: Title: 3 of 4 STATE OF TEXAS X COUNTY OF JEFFERSON X This instrument was acknowledged before me on the day of , 2002, by Stephen J. Bonczek, City Manager of the City of Beaumont, a municipal corporation, on behalf of said corporation. Notary Public, State of Texas STATE OF TEXAS X COUNTY OF JEFFERSON X This instrument was acknowledged before me on the day of , 2002, by , of , a corporation, on behalf of said corporation. Notary Public, State of Texas RITURN TO: City of Beaumont Diane Newsome P. 0. Box 3827 Beaumont,Texas 77704 409-880-3725 monitonlic 4 of 4 SUBJECT LICENSE TO ENCROACH T W V < AVENUE A ELG E ELNE RIGHT OF WAY Ester FOR INSTALLATION OF A of I I'm In OWN GROUNDWATER w► ED1""" MONITORING WELL E u LWLLE W W Z APPLICANT: APPOLLO ENVIRONMENTAL STRATEGIES, INC. AGENT FOR VALLEY STAR, INC. LOCATION MAP N.T.S. LEGEND ® SUBJECT PROPERTY �d B-b B-7 +B-6 Q W Mw-6® z B-2+ "r!•I Q -via B� + a .X .� STORE M4 �... ® - BROCKMAN STREET G N.T.S. D :LU!!Jg Cat y of Beaumont Council A enda Item K TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kandy Daniel, Treasurer MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 29, 2002 REQUESTED ACTION: Council consider a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition. RECOMMENDATION The administration requests approval of a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition. BACKGROUND The property described above currently has ten (10) weed liens totaling $2,329.17 which represents $1,101.25 in principal and $1,227.92 in interest and fees. Staff is recommending that the City accept a payment of $731.25 and authorize release of these liens dating from 1979 to 1991. The current assessed value of the property is 3,900. Genise Hawkins is in the process of purchasing the property from Uneeda Copes and has agreed to pay the amount recommended. Ms. Hawkins plans construct a four bedroom home on the property which would bring additional tax revenue to the City. Release of lien will provide an unencumbered title to the owner to enable the pending sale to Mr. Hawkins. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Treasurer. RECONM ENDED MOTION Approve/Deny a resolution accepting payment of$731.25 and authorizing a release of weed liens against property which is described as Lot 32, Block 7, Home to Bowenville Addition. City of Beaumont Weed Liens Lot 32 Block 7 Home To Bowenville Addition File No./ Date Type File Code/ Vol.. No. Filed. Lien Page__NQ Principal Inter Interes Fees Total 1034672 10/30/1979 Weed $55.00 $124.27 $3.00 $182.27 2043 11/16/1981 Weed 94 $55.00 $92.33 $3.00 $150.33 2111 12/29/1982 Weed 48 $55.00 $86.37 $3.00 $144.37 8428337 09/12/1984 Weed 100-75-0593 $66.25 $91.94 $3.00 $161.19 8517514 06/26/1985 Weed 101-07-1995 $65.00 $85.38 $3.00 $153.38 8602431 01/24/1986 Weed 101-30-0370 $65.00 $81.59 $3.00 $149.59 8722590 08/11/1987 Weed 101-94-2504 $185.00 $203.30 $3.00 $391.30 8915761 06/22/1989 Weed 102-74-1303 $185.00 $133.98 $3.00 $321.98 8927676 10/20/1989 Weed 102-89-1457 $185.00 $164.78 $3.00 $352.78 9119451 06/21/1991 Weed 103-72-1316 $185.00 $133.98 $3.00 $321.98 Total Due $1,101.25 $1,197.92 $30.00 $2,329.17 Recommended Discount $400.00 $1,197.92 $0.00 $1,597.92 Recommended Payment $701.2.5 $0.00 $30.00 $731.25 Dear City Council PAVING AND TRASH LIENS I'm in the process of purchasing the property located at 3830 Bowen St in Beaumont TX. Have been employed at Lowe's Home Center for six years. I'm the mother of four children, the opportunity to build a home on this property is available, and it has been brought to my attention that there are several liens on this property dated back to 1978, which have accumulated interest. Construction of a house consisting of four bedrooms over a twenty four year span would bring in tax revenue to the city which would more than triple the amount of lost this property has accumulated over the years, the value of the property it self is 3990 which is less then the lien and the delinquent taxes on the property. It is my plea that you waive these liens. PS: see attach document Thank you, Genise Hawkins 8145 Lawrence Dr. Beaumont, TX 77708 409-924-0169 E Cit y of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: June 4, 2002 AGENDA MEMO DATE: May 29, 2002 REQUESTED ACTION: Council approval of a deferred loan from the City of Beaumont to Ms. Kathryn Green in the amount of$62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont,Texas. RECOMMENDATION The Administration recommends that Council authorize the City Manager to execute a deferred loan from the City of Beaumont to Ms. Kathryn Green in the amount of$62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont, Texas. BACKGROUND Ms. Kathryn Green is a 68 year old widow whose income is approximately 30% of median income (less that $9,850/year). Her physical disability indicates that special needs, handrails, etc. are appropriate for her home. Ms. Green's home where she has lived for over 38 years had deteriorated to the extent that the repairs exceeded the $15,000 limit of the housing rehabilitation program (estimated replacement cost over $54,000). Ms. Green's financial resources are insufficient to obtain conventional financing to make the necessary repairs. The replacement housing program is a program modeled after the Optional Relocation Program which has been utilized in College Station, Texas. The program assists elderly, disabled, low income persons whose homes have physically deteriorated to the extent that housing rehabilitation is not feasible. The program provides a deferred loan which is secured by a deed of trust. The Council Agenda Item Page 2 May 29, 2002 funds from the loan are used to reconstruct a replacement home. The owner's land serves as their equity. The owner agrees to live in the home and maintain insurance and property taxes for a period of 15 years. The loan is forgiven over the 15 year period. The deed of trust requires repayment of the remaining portion of the loan should the home be sold prior to the 15 years. The home is located in one of the City's older neighborhoods which is targeted for revitalization. BUDGETARY IMPACT These funds are available from the 2001 CDBG Program Replacement Housing budget line item. PREVIOUS ACTION On April 10, 2001 (Resolution No. 01-097), Council approved the Annual Action Plan of the 2001 Consolidated Grant Program which included a CDBG Replacement Housing budget line item in the amount of$100,000. SUBSEQUENT ACTION Following Council approval and execution by the City Manager of the deferred loan, the Housing Division will provide the necessary technical assistance to Ms. Kathryn Green to complete the reconstruction of the replacement home. RECOMMENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director/Planning Manager/Housing Coordinator and Grants Administrator. RECOMMENDED MOTION Approve/Deny authorization of the City Manager to execute a deferred loan to Ms. Kathryn Green in the amount of$62,350 using funds from the 2001 CDBG Program Replacement Housing Budget line item for the reconstruction of a home located at 2620 Mashed O Street, Beaumont, Texas.