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Home My WebLink AboutPACKET APR 27 1999 CITY OF BEAUMONT REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS APRIL 27, 1999 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Authorize the settlement of a claim / B) Approve a signatory change on City accounts Consent Agenda Summary April 27, 1999 * Approval of minutes * Confirmation of committee appointments Evelyn Lord would be reappointed to the Sister City Commission. The current term would expire April 10, 2001. (Councilman Guy Goodson) A) Authorize the settlement of a claim The claim of Floyd Rigsby would be settled in the amount of$10,000. This matter was discussed in an Executive Session on April 20, 1999. B) Approve a signatory change on City accounts Kyle Hayes would be added as an authorized signatory on City accounts effective April 27, 1999. Signatories on all other City of Beaumont accounts for banking or investment purposes shall remain unchanged. A copy of the staff memorandum is attached for your review. A RESOLUTION NO. WHEREAS, the claim of Floyd Rigsby has been discussed in an Executive Session properly called and held Tuesday, April 20, 1999; 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 Floyd Rigsby in the amount of Ten-Thousand ($10,000) Dollars. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1999. - Mayor - B INTER-OFFICE MEMORANDUM CUL3J Finance City of Beaumont,Texas Date: April 23, 1999 To: Ray Riley, City Manager From: Beverly P. Hodges, Finance Office i Subject: Signatory Change COMMENTS A resolution is requested adding Kyle Hayes as an authorized signatory on City Accounts effective April 27, 1999. The following individuals are authorized as signatories for any institution the City Council has already designated or may designate as a depository for the City of Beaumont for banking and facsimile purposes. Ray A. Riley, City Manager Beverly Hodges, Finance Officer Kandy Daniel, Treasurer Maurine Gray, Community Services Director Kyle Hayes, Executive Asst. to City Manager The following individuals are authorized to request electronic fund (wire) or ACH transfers of any and all City funds on deposit at Chase Bank of Texas N.A. or its successor Hibernia National Bank. Ray A. Riley, City Manager Beverly Hodges, Finance Officer Kandy Daniel, Treasurer Nada Rogers, Deputy Treasurer Maurine Gray, Community Services Director Kyle Hayes, Executive Asst. to City Manager Signatories on all other City of Beaumont accounts for banking or investment purposes shall remain unchanged. • CITY OF BEAUMONT REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS APRIL 27, 1999 1:30 P.M. BARBARA LIMING AGENDA CITY CLERK CITY CLERK'S OFFICE OPENING • Invocation Pledge Roll Call • Presentations and Recognition • Public Comment: Persons may speak on scheduled agenda items (excluding item 5) • Consent Agenda GENERAL BUSINESS �2 Q 1. Consider an ordinance authorizing the issuance and sale of$20,000,000 City of Beaumont, Texas Certificates of Obligation, Series 1999 2. Consider a contract for the rehabilitation of Loeb Water Well Number Three 3 3. Consider a resolution authorizing Beaumont Power and Light to include the City 1 of Beaumont in its application to the Public Utilities Commission for a certificate of convenience and necessity 4. Consider contract extensions with Statewide Consolidated Community Development ��S J Corporation and Southeast Texas Community Development Corporation 5. PUBLIC HEARING: Dilapidated Structures J Consider an ordinance declaring certain dilapidated structures to be public nuisances and ordering their repair or removal by the owners and authorizing the removal of certain other structures whose owners failed to comply with condemnation orders OTHER BUSINESS �l * Receive presentation and consider a request for a subsidy from Alliance Property 7 Group, Inc. related to a proposed Senior Housing Development Report related to Section 108 funding COMMENTS * Councilmembers comment on various matters * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Claim of Lola Seastrunk Michael Newman dba Mike's Softworks * 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 Manager Persons with disabilities who plan to attend this meeting and who may need auxiliary aids nr cnrx,irnc irP rPniiPCtPd M ca"tnet Rvle Haves at 880-3716 a day prior to the meeting. r 1 April 27, 1999 Consider an ordinance authorizing the issuance and sale of$20,000,000 City of Beaumont, Texas Certificates of Obligation, Series 1999 A copy of the staff memorandum is attached for your review. • No. 4 ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $20,000,000 THE CITY OF BEAUMONT,TEXAS, CERTIFICATES OF OBLIGATION,SERIES 1999; LEVYING TAXES TO PROVIDE FOR PAYMENTTHEREOF; AND CONTAINING OTHER MATTERS RELATED THERETO THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS, the City Council of The City of Beaumont, Texas (the "City"), has heretofore authorized the publication of a notice of intention to issue certificates of obligation to the effect that the City Council would meet on April 27, 1999, the date tentatively set for passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of certificates of obligation payable from City ad valorem taxes and a pledge of certain revenues of the City's waterworks and sewer system, or as soon thereafter as may be practicable, for the purpose of evidencing the indebtedness of the City for the cost of construction of authorized street and drainage improvements, new fire stations, a new athletic complex and park maintenance facility, and renovations to the Municipal Court and police state, and also for the cost of professional services incurred in connection therewith and the cost of issuance of such certificates of obligation;and WHEREAS, such notice was published at the times and in the manner required by the Constitution and the laws of the State of Texas and the United States of America, respectively,particularly Chapter 271, Texas Local Government Code, as amended;and WHEREAS, no petition or other request has been filed with or presented to any official of the City requesting that any of the proceedings authorizing such certificates of obligation be submitted to a referendum or other election;and WHEREAS, the City Council of the City has determined to authorize such certificates of obligation for the purposes set out in this Ordinance;and WHEREAS, the City is authorized, pursuant to Articles 1111 and 1112, Vernon's Texas Civil Statutes, as amended, to pledge not more than $10,000 of the net revenues of the City's waterworks and sewer system as security for the certificates of obligation authorized herein; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT,TEXAS: 1. Preamble. The matters and facts contained in the preamble to this Ordinance are hereby found to be true and correct. 2. Definitions. Throughout this Ordinance, the following terms and expressions as used herein shall have the meanings set forth below: The term "Business Day" shall mean any day which is not a Saturday, Sunday, a • legal holiday, or a day on which the Registrar is authorized by law or executive order to close. • The term "Certificates"or "Series 1999 Certificates"shall mean the Certificates of Obligation, Series 1999, authorized in this Ordinance, unless the context clearly indicates otherwise. The term "Certificates Insurance Policy" shall mean the municipal bond guaranty insurance policy issued by the Insurer insuring the payment when due of the principal of and interest on the Certificates as provided therein. The term "City"shall mean The City of Beaumont,Texas. The term "Code"shall mean the Internal Revenue Code of 1986, as amended. The term "Comptroller"shall mean the Comptroller of Public Accounts of the State of Texas. The term "Construction Fund" shall mean the construction fund established by the City pursuant to Section 20 of this Ordinance. The term "DTC" shall mean The Depository Trust Company of New York, New York, or any successor securities depository. The term "DTC Participant" shall mean brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities • transactions among the DTC Participants. The term "Insurer" shall mean , the issuer of the Certificates Insurance Policy. The term "Interest and Sinking Fund" shall mean the interest and sinking fund established by the City pursuant to Section 20 of this Ordinance. The term "Interest Payment Date", when used in connection with any Certificate, shall mean March 1, 2000, and each March 1 and September 1 thereafter until maturity or earlier redemption. The term "Letter of Representation" shall mean the Letter of Representation delivered by the City to DTC. The term "Net Revenues" shall mean the revenues of the System remaining after deduction of the reasonable and necessary expenses of operation and maintenance of the System. The term "Ordinance" as used herein and in the Certificates shall mean this Ordinance authorizing the Certificates. The term "Owner" or "Registered Owner", when used with respect to any -2- Certificate,shall mean the person or entity in whose name such Certificate is registered in the Register. • The term "Paying Agent"shall mean the Registrar. The term "Record Date" shall mean, for any Interest Payment Date, the 15th day of the month next preceding such Interest Payment Date. The term "Register" shall mean the books of registration kept by the Registrar in which are maintained the names and addresses of and the principal amounts registered to each Owner. The term "Registrar" shall mean Chase Bank of Texas, National Association, Houston,Texas, and its successors in that capacity. The term "SEC" shall mean the United States Securities and Exchange Commission and its successors. The term"System"shall mean the City's waterworks and sewer system. The term "Underwriters"shall mean 3. Authorization. The Certificates shall be issued in fully registered form, without coupons, in the total authorized aggregate amount of Twenty Million Dollars ($20,000,000),for the purpose of evidencing the indebtedness of the City for the cost of construction of authorized street and drainage improvements, new fire stations, a new athletic complex and park maintenance facility, and renovations to the Municipal Court • and police state, and also for the cost of professional services incurred in connection therewith and the cost of issuance of such certificates of obligation. 4. Designation Date and Interest Payment Dates. The Certificates shall be designated as the "THE CITY OF BEAUMONT, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 1999", and shall be dated May 1, 1999. The Certificates shall bear interest from the later of May 1, 1999, or the most recent Interest Payment Date to which interest has been paid or duly provided for, calculated on the basis of a 360-day year of twelve 30-day months, which interest shall be payable on March 1, 2000, and semiannually thereafter on March 1 and September 1 of each year until maturity or earlier redemption. 5. Certificates Numbers and Denominations. The Certificates shall be issued bearing the numbers, in the principal amounts, and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Ordinance. The Certificates shall mature, subject to prior redemption in accordance with this Ordinance, on March 1 in each of the years and in the amounts set out in such schedule. Certificates delivered upon transfer of or in exchange for other Certificates shall be numbered in order of their authentication by the Registrar, shall be in the denomination of $5,000 or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as the Certificate or Certificates in lieu of which they are delivered. -3- Certificate Year Principal Interest • Number of Maturity Amount Rate CR-1 2001 $ 250,000 CR-2 2002 $ 250,000 CR-3 2003 $ 500,000 CR-4 2004 $ 500,000 CR-5 2005 $ 500,000 CR-6 2006 $ 500,000 CR-7 2007 $ 500,000 CR-8 2008 $ 500,000 CR-9 2009 $ 675,000 CR-10 2010 $ 825,000 CR-11 2011 $1,375,000 CR-12 2012 $1,500,000 CR-13 2013 $1,600,000 CR-14 2014 $1,900,000 CR-15 2015 $2,000,000 CR-16 2016 $2,100,000 CR-17 2017 $2,200,000 CR-18 2018 $2,325,000 6. Execution of Certificates, Seal. The Certificates shall be signed by the Mayor of the City and countersigned by the City Clerk of the City, by their manual, • • lithographed,or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Certificates shall have the same effect as if each of the Certificates had been signed manually and in person by each of said officers, and such facsimile seal on the Certificates shall have the same effect as if the official seal of the City had been manually impressed upon each of the Certificates. If any officer of the City whose manual or facsimile signature shall appear on the Certificates shall cease to be such officer before the authentication of such Certificates or before the delivery of such Certificates,such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. 7. Approval by Attorney General, Registration by Comptroller. The Certificates to be initially issued shall be delivered to the Attorney General of the State of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration certificate of the Comptroller of Public Accounts substantially in the form provided in Section 17 of this Ordinance shall be attached or affixed to the initial Certificates. 8. Authentication. Except for the Certificates to be initially issued, which need not be authenticated by the Registrar, only Certificates which bear thereon a certificate of authentication, substantially in the form provided in Section 17 of this Ordinance, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly s • -4- executed certificate of authentication shall be conclusive evidence that the Certificates so . authenticated were delivered by the Registrar hereunder. • 9. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Certificates. The principal of the Certificates shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they become due and payable, at the designated corporate trust office of the Registrar. The interest on each Certificate shall be payable by check payable on the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record Date, to the address of such Owner as shown on the Register. At the request of the registered Owner of $1,000,000 or more in aggregate principal amount of Certificates, the Registrar shall pay interest thereon by wire transfer in immediately available funds to the account designated by such Owner to the Registrar in writing at least five (5) days before the Record Date for such payment. If the date for payment of the principal of or interest on any Certificate is not a Business Day, then the date for such payment shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the original date payment was due. 10. Successor Registrars. The City covenants that at all times while any Certificates are outstanding it will provide a bank, trust company, financial institution or other entity duly qualified and duly authorized to act as Registrar for the Certificates. The City reserves the right to change the Registrar on not less than sixty (60) days' written notice to the Registrar, so long as any such notice is effective not less than sixty (60) • days prior to the next succeeding principal or interest payment date on the Certificates. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Register or copies thereof to the new Registrar, and the new Registrar shall notify each Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 11. Special Record Date. If interest on any Certificate is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter,the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) business days prior to the Special Record Date, to each affected Owner of record as of the close of business on the day prior to the mailing of such notice. 12. Ownership: Unclaimed Principal and Interest. The City, the Registrar and any other person may treat the person in whose name any Certificate is registered as the absolute Owner of such Certificate for the purpose of making payment of principal or interest on such Certificate, and for all other purposes, whether or not such Certificate is -5- overdue, and neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Owner of • any Certificate in accordance with this Section 12 shall be valid and effectual and shall discharge the liability of the City and the Registrar upon such Certificate to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Certificates remaining unclaimed by the Owner after the expiration of three (3) years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the provisions of Texas law, including to the extent applicable,Title 6 of the Texas Property Code, as amended. 13. Registration, Transfer, and Exchange; Special Election for Uncertificated Certificates. So long as any Certificates remain outstanding,the Registrar shall keep the Register at its principal corporate trust office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Certificates in accordance with the terms of this Ordinance. Each Certificate shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Registrar,duly endorsed for transfer, or accompanied by an assignment duly executed by the registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Certificate for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three (3) Business Days after such presentation, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Certificate or Certificates so presented. • All Certificates shall be exchangeable upon presentation and surrender thereof at the principal corporate trust office of the Registrar for a Certificate or Certificates of the same maturity and interest rate in any authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Certificate or Certificates presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Certificates in accordance with the provisions of this Section 13. Each Certificate delivered in accordance with this Section 13 shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such Certificate is delivered. The City or the Registrar may require the Owner of any Certificate to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Certificate. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the City. Neither the City nor the Registrar shall be required to transfer or exchange any Certificate called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption;provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Certificate called for redemption in part. -6- Notwithstanding any other provision hereof, upon initial issuance of the Certificates but at the sole election of the Underwriters, the ownership of the Certificates shall be • registered in the name of Cede & Co., as nominee of DTC, and except as otherwise provided in this Section, all of the outstanding Certificates shall be registered in the name of Cede & Co., as nominee of DTC. The definitive Certificates shall be initially issued in the form of a single separate certificate for each of the maturities thereof. If the Underwriters shall elect to invoke the provisions of this Section, then the following provisions shall take effect with respect to the Certificates. With respect to Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Certificates. Without limiting the immediately preceding sentence, the City and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any DTC Participant or any other person, other than an Owner of a Certificate,as shown on the Register, of any notice with respect to the Certificates, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than an Owner of a Certificate, as shown in the Register, of any amount with respect to principal of, premium, if any, or interest on the Certificates. Notwithstanding any other provision of this Ordinance to the contrary, the City and the Registrar shall be entitled to treat and consider the person in whose name each Certificate is registered in the Register as the absolute Owner of such Certificate for the purpose of payment of principal of, premium, if any, and interest on the Certificates, for the purpose of all matters with respect to such Certificates, for the purpose of registering transfers with respect to such Certificates, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the • Certificates only to or upon the order of the respective Owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, and interest on the Certificates to the extent of the sum or sums so paid. No person other than an Owner as shown in the Register, shall receive a certificate for a Certificate evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that the City or the Registrar determines that DTC is incapable of discharging its responsibilities described herein and in the Letter of Representation and that it is in the best interest of the beneficial Owners of the Certificates that they be able to obtain certificated Certificates, or if DTC Participants owning at least 50% of the Certificates outstanding based on current records of the DTC determine that continuation of the system of book-entry transfers through the DTC (or a successor securities depository) is not in the best interest of such beneficial Owners of the Certificates, or in the event DTC discontinues the services described herein, the City or the Registrar shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify DTC of the appointment of such successor securities depository and transfer one or more separate Certificates to such successor securities depository or (ii) notify DTC of the availability -7- through DTC of Certificates and transfer one or more separate Certificates to DTC Participants having Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Owners transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificates are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on the Certificates, and all notices with respect thereto, shall be made and given in the manner provided in the Letter of Representation. 14. Mutilated. Lost, or Stolen Certificates. Upon the presentation and surrender to the Registrar of a mutilated Certificate, the Registrar shall authenticate and deliver in exchange therefor a replacement Certificate of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. If any Certificate is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Certificate has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Certificate of like amount, bearing a number not contemporaneously outstanding. The City or the Registrar may require the Owner of a mutilated Certificate to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other associated expenses, including the fees and expenses of the Registrar. The City or the Registrar may require the Owner of a lost, apparently destroyed or wrongfully taken Certificate,before any replacement Certificate is issued,to: (1) furnish to the City and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Certificate; (2) furnish such security or indemnity as may be required by the Registrar and the City to save them harmless; (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (4) meet any other reasonable requirements of the City and the Registrar. If, after the delivery of such replacement Certificate, a bona fide purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment such original Certificate, the City and the Registrar shall be entitled to recover -8- such replacement Certificate from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the • security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Certificate,authorize the Registrarto pay such Certificate. Each replacement Certificate delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such replacement Certificate is delivered. 15. Cancellation of Certificates. All Certificates paid in accordance with this Ordinance, and all Certificates in lieu of which exchange Certificates or replacement Certificates are authenticated and delivered in accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding such payment. The Registrar shall furnish the City with appropriate certificates of destruction of such Certificates. 16. Optional Redemption. The City reserves the right, at its option, to redeem Certificates having stated maturities on and after March 1, 2010, in whole or in part, on March 1, 2009, or any date thereafter, at a price of par plus accrued interest to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the City shall determine the Certificates,or portions thereof,to be redeemed. Certificates may be redeemed only in integral multiples of $5,000. If a Certificate subject to redemption is in a denomination larger that$5,000, a portion of such Certificate may be redeemed, but only in integral multiples of $5,000. Upon surrender of any Certificate for redemption in part, the Registrar, in accordance with Section 13 hereof, shall authenticate and deliver in exchange therefor a Certificate or Certificates of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Certificate so surrendered. Not less than thirty (30) days prior to a redemption date for the Certificates, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid,to each Owner of each Certificate to be redeemed in whole or in part, at the address of the Owner appearing on the Register at the close of business on the Business Day next preceding the date of the mailing of such notice. Such notice shall state the redemption date, the redemption price, the place at which Certificates are to be surrendered for payment and, if less than all the Certificates are to be redeemed, the numbers of the Certificates or portions thereof to be redeemed. Any notice of redemption so mailed shall be conclusively presumed to have been duly given whether or not the Owner receives such notice. By the date fixed for redemption, due provision shall be made with the Registrar for payment of the redemption price of the Certificates or portions thereof to be redeemed. When Certificates have been called for redemption in whole or in part and due provision made to redeem the same as herein provided, the Certificates or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of being paid solely from the funds so provided for redemption,and the rights -9- of the Owners to collect interest which would otherwise accrue after the redemption date on any Certificate or portion thereof called for redemption shall terminate on the date fixed • for redemption. 17. Forms. The form of the Certificates, including the form of the Registrar's Authentication Certificate,the form of Assignment,and the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas which shall be attached or affixed to the Certificates initially issued shall be, respectively, substantially as follows, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Ordinance: (Face of Certificate) UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF JEFFERSON NUMBER DENOMINATION CR- $ REGISTERED REGISTERED THE CITY OF BEAUMONT,TEXAS CERTIFICATE OF OBLIGATION SERIES 1999 INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP: May 1, 1999 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF BEAUMONT, TEXAS (the "City"), promises to pay to the registered owner identified above, or registered assigns, on the date specified above, upon presentation and surrender of this certificate at the designated corporate trust office of Chase Bank of Texas, National Association, in Houston, Texas (the "Registrar"), the principal amount identified above, payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of America, and to pay interest thereon at the rate shown above, calculated on the basis of a 360-day year of twelve 30-day months, from the later of the Dated Date specified above, or the most recent interest payment date to which interest has been paid or duly provided for. Interest on this Certificate is payable by check on March 1, 2000, and semiannually thereafter on each March 1 and September 1, mailed to the registered owner as shown on the books of registration kept by the Registrar as of the 15th day of the month next preceding each interest payment date. At the request of the registered owner of$1,000,000 or more in aggregate principal amount of Certificates, the Registrar shall pay interest on such Certificates by wire transfer in immediately available funds to the account designated by such owner to the Registrar in -10- writing at least five (5) days before the Record Date for such payment. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS CERTIFICATE SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS PLACE. IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Clerk of the City and the official seal of the City has been duly impressed,or placed in facsimile,on this Certificate. (AUTHENTICATION CERTIFICATE) THE CITY OF BEAUMONT, TEXAS Mayor (SEAL) City Clerk (Back Panel of Certificate) THIS CERTIFICATE is one of a duly authorized issue of Certificates of Obligation, aggregating $20,000,000 (the "Certificates"), issued in accordance with the Constitution and the laws of the State of Texas, particularly Chapter 271, Texas Local Government Code, as amended, for the cost of construction of authorized street and drainage improvements, new fire stations, a new athletic complex and park maintenance facility, and renovations to the Municipal Court and police state, and also for the cost of professional services incurred in connection therewith and the cost of issuance of the Certificates, pursuant to an ordinance duly adopted by the City Council of the City (the "Ordinance"),which Ordinance is of record in the official minutes of the City Council. THE CITY RESERVES THE RIGHT, at its option, to redeem the Certificates having stated maturities on or after March 1, 2010, in whole or in part, on March 1, 2009, or any date thereafter, in integral multiples of $5,000, at a price of par plus accrued interest to the date fixed for redemption. Reference is made to the Ordinance for complete details concerning the manner of redeeming the Certificates. NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior the date fixed for redemption by first class mail, addressed to the registered owner of each Certificate to be redeemed in whole or in part at the address shown on the books of registration kept by the Registrar. When Certificates or portions thereof have been called for redemption and due provision has been made to redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for redemption and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemption. THIS CERTIFICATE is transferable only upon presentation and surrender at the principal corporate trust office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his authorized representative, • subject to the terms and conditions of the Ordinance. THE CERTIFICATES are exchangeable at the principal corporate trust office of the Registrar for Certificates in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of this Ordinance. NEITHER THE CITY NOR THE REGISTRAR shall be required to transfer or exchange any Certificate called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Certificate called for redemption in part. THIS CERTIFICATE shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Certificate either (i) is registered by the Comptroller of Public Accounts of the State of Texas by registration certificate attached or affixed hereto or (ii) authenticated by the Registrar by due execution of the authentication certificate endorsed hereon. THE REGISTERED OWNER of this Certificate, by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Ordinance. THE CITY has covenanted in the Ordinance that it will at all times provide a legally qualified registrarfor the Certificates and will cause notice of any change of registrarto be mailed to each registered owner. . IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed,to exist and to be done precedent to or in the issuance and delivery of this Certificate have been performed, exist and have been done in accordance with law; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied, within the limits prescribed by law, against all taxable property in the City, and have been pledged irrevocably for such payment. IT IS FURTHER certified, recited and represented that the net revenues (the "Net Revenues") to be derived from the operation of the City's waterworks and sewer system (the "System"), but only to the extent of and in an amount not to exceed Ten Thousand Dollars ($10,000.00)in the aggregate, are also pledged to the payment of the principal of and interest on this Certificate and the series of Certificates of which it is a part to the extent that taxes may ever be insufficient or unavailable for said purpose, all as set forth in the Ordinance to which reference is made for all particulars; provided, how-ever, that such pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of such Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter,which the City designates as having a pledge senior to the pledge of such Net Revenues to the payment of this Certificate and that series of Certificates of which it is a part, and the City also reserves the right to issue,for any lawful purpose at any time, in one or more installments, bonds, certificates of obligation and other obligations of any kind payable in whole or in part from the Net Revenues of the -12- System, secured by a pledge of the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and subordinate to the pledge of Net Revenues securing this Certificate and the series of Certificates of which it is a part. Form of Registration Certificate of Comptroller of Public Accounts COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this certificate has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL this day of , 1999. xxxxxxxxx Comptroller of Public Accounts (Seal) of the State of Texas i • -13- Form of Registrar's Authentication Certificate AUTHENTICATION CERTIFICATE It is hereby certified that this Certificate has been delivered pursuant to the Ordinance described in the text of this Certificate. Chase Bank of Texas, National Association, Houston,Texas By: Authorized Signature Date of Authentication Form of Assignment ASSIGNMENT For value received,the undersigned hereby sells, assigns, and transfers unto (Please print or type name,address,and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) • the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer said certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature Guaranteed: Registered Owner NOTICE: The signature above must correspond to the name of the registered NOTICE: Signature must be owner as shown on the face guaranteed by a member firm of this Certificate in of the New York Stock Exchange every particular,without or a commercial bank or trust any alteration,enlargement company. or change whatsoever. -14- 18. Form of Statement of Insurance. The following statement of insurance shall be printed on the back of or attached to each of the Certificates: STATEMENT OF INSURANCE 19. Legal Opinion: Cusip Numbers. The approving opinions of Orgain, Bell & Tucker, L.L.P., Beaumont, Texas, Bond Counsel, and Linebarger Heard Goggan Blair Graham Pena & Sampson, LLP, Beaumont, Texas, Co-Bond Counsel and CUSIP Numbers may be printed on the Certificates, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Certificates. 20. Interest and Sinking Fund-, Tax Levy Pledge of Revenues:Construction Fund. The proceeds from all taxes levied, assessed and collected for and on account of the Certificates authorized by this Ordinance are hereby irrevocably pledged and shall be deposited, as collected, in a special fund to be designated "City of Beaumont, Texas, Certificates of Obligation, Series 1999, Interest and Sinking Fund". While the Certificates or any part of the principal thereof or interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually levied, assessed and collected in due time, form and manner within the limits prescribed by law, and at the same time other City taxes are levied, assessed and collected, in each year, beginning with the current year, a continuing direct annual ad valorem tax upon all taxable property in the City sufficient to pay the current interest on the Certificates as the same becomes due, and to provide and • maintain a sinking fund adequate to pay the principal of the Certificates as such principal • matures but in each year never less than 2% of the original principal amount of the Certificates,full allowance being made for delinquencies and costs of collection, and said taxes when collected shall be applied to the payment of the interest on and principal of the Certificates and to no other purpose. The Net Revenues of the System, but only to the extent of and in an amount not to exceed $10,000 in the aggregate, are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates as the same come due, to the extent that the taxes described in this Section of the Ordinance may ever be insufficient or unavailable for said purpose; provided, however, that such pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of the Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of such Net Revenues to the payment of the Certificates; and the City also reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds, certificates of obligation and other obligations of any kind payable in whole or in part from the Net Revenues of the System that may be prior and superior in right to, on a parity with, or junior and subordinate to the pledge of Net Revenues securing this series of Certificates. There is hereby created and there shall be established on the books of the City a separate account to be entitled the "City of Beaumont, Texas, Certificates of Obligation, Series 1999, Construction Fund". Immediately after the sale and delivery of the Certificates, that portion of the proceeds of the Certificates to be used for the cost of -15- construction of authorized street and drainage improvements,equipment purchases, park expansions, and building renovations and improvements in the City, the cost of • professional services incurred in connection therewith and the cost of issuance of the Certificates shall be deposited into the Construction Fund and disbursed for such purposes. Pending completion of construction of such projects, interest earned on such proceeds may be used, at the City's discretion, for such projects and shall be accounted for, maintained,deposited and expended as permitted by the provisions of Texas Revised Civil Statutes article 717k-9, as from time to time in effect, or as otherwise required by applicable law. Thereafter, such interest shall be deposited in the Interest and Sinking Fund. Upon completion of such street and drainage improvements, equipment purchases, park expansions, and building renovations and improvements, the monies, if any, remaining in the Construction Fund shall be transferred and deposited by the City into the Interest and Sinking Fund. 21. Further Proceedings. After the Certificates shall have been executed, it shall be the duty of the Mayor of the City to deliver the Certificates to be initially issued and all pertinent records and proceedings to the Attorney General of the State of Texas for examination and approval. After the Certificates to be initially issued shall have been approved by the Attorney General of the State of Texas, the Certificates shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Certificates to be initially issued, the Comptroller of Public Accounts (or a deputy lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be affixed or attached to the Certificates to be initially issued, and the seal of the Comptroller shall be impressed, or placed in facsimile, thereon. In addition, the Mayor, the City Clerk and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary or convenient to carry out the purposes of this Ordinance. • 22. Sale of Certificates. The Certificates are hereby sold and shall be delivered to the Underwriters at the price of$ ,representing the principal amount of Certificates plus a premium of $ The purchase price of the Certificates will also include accrued interest to the date of delivery. The City finds that the bid of the Underwriters for the purchase of the Certificates and which bid has been accepted by the City was the best bid and the purchase price and terms are hereby found and determined to be the most advantageous reasonably obtainable by the City. The Mayor and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary or desire able to satisfy the conditions set out herein and to provide for the issuance and delivery of the Certificates. All officials and representatives of the City are authorized and directed to execute such documents and to do any and all things necessary, desirable or appropriate to obtain the Certificate Insurance Policy, and the printing on the Certificates covered by the Certificate Insurance Policy of an appropriate legend regarding such insurance is hereby approved and authorized. 23. Tax Exemption. (a) The City intends that the interest on the Certificates shall be excludable from gross income for purposes of federal income taxation pursuant to Sections 103 and 141 through 150 of the Code, and applicable regulations. The City covenants and agrees not to take any action, or knowingly omit to take any action within its control, that if taken or omitted, respectively, would cause the interest on the Certificates to be includable in gross income, as defined in Section 61 of the Code, of the -16- holders thereof for purposes of federal income taxation. In particular,the City covenants and agrees to comply with each requirement of this Section 23; provided, however, that the City shall not be required to comply with any particular requirement of this Section 23 if the City has received an opinion of nationally recognized bond counsel (a "Counsel's Opinion") that such noncompliance will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Certificates or if the City has received a Counsel's Opinion to the effect that compliance with some other requirement set forth in this Section 23 will satisfy the applicable requirements of the Code, in which case compliance with such other requirement specified in such Counsel's Opinion shall constitute compliance with the corresponding requirement specified in this Section 23. (b) The City covenants and agrees that its use of Net Proceeds of the Certificates will at all times satisfy the following requirements: (i) The City will use all of the Net Proceeds of the Certificates for the cost of construction of authorized street and drainage improvements, equipment purchases, park expansions, and building renovations and improvements in the City, the cost of professional services incurred in connection therewith and the cost of issuance of the Certificates. The City has limited and will limit with respect to the Certificates the amount of original or investment proceeds thereof to be used (other than use as a member of the general public) in the trade or business of any person other than a governmental unit to an amount aggregating no more than 10% of the Net Proceeds of the Certificates ("private-use proceeds"). For purposes of this Section, the term "person" includes any individual, corporation, partnership, unincorporated association, or any other entity capable of carrying on a trade or business; and the term "trade or business" means, with respect to any natural person, any activity regularly carried on for profit and, with respect to • persons other than natural persons, any activity other than an activity carried on by a governmental unit. Any use of proceeds of the Certificates in any manner contrary to the guidelines set forth in Revenue Procedure 93-19, including any revisions or amendments thereto, shall constitute the use of such proceeds in the trade or business of one who is not a governmental unit; (ii) The City has not permitted and will not permit more than 5% of the Net Proceeds of the Certificates to be used in the trade or business of any person other than a governmental unit if such use is unrelated to the governmental purpose of the Certificates. Further, the amount of private-use proceeds of the Certificates in excess of 5% of the Net Proceeds thereof ("excess private-use proceeds") did not and will not exceed the proceeds of the Certificates expended for the governmental purpose of the Certificates to which such excess private-use proceeds relate; (iii) Principal of and interest on the Certificates shall be paid solely from ad valorem tax receipts collected by the City and from the Net Revenues of the System to the extent pledged hereunder. Further, no person using more than 10% of the Net Proceeds of the Certificates in a trade or business, other than a governmental unit, has made or shall make payments(other than as a member of the general public), directly or indirectly, accounting for more than 10% of such receipts; -17- (iv) The City has not permitted and will not permit with respect to the Certificates an amount of proceeds thereof exceeding the lesser of (a) $5,000,000 • or(b) 5% of the Net Proceeds of the Certificates to be used, directly or indirectly,to finance loans to persons other than a governmental unit; and (v) The City will use $46,500.00 of the Net Proceeds of the Certificates to pay the costs of issuance of the Certificates. When used in this Section 23, the term "Net Proceeds"of the Certificates shall mean the proceeds from the sale thereof to the Underwriters, including investment earnings on such proceeds, less accrued interest with respect to such issue. (c) The City covenants and agrees not to take any action, or knowingly omit to take any action within its control, that, if taken or omitted, respectively, would cause the Certificates to be "federally guaranteed"within the meaning of Section 149(b) of the Code and applicable regulations thereunder, except as permitted by Section 149(b)(3) of the Code and such regulations. (d) The City shall certify, through an authorized officer, employee or agent, that based upon all facts and estimates known or reasonably expected to be in existence on the date the Certificates are delivered,the City will reasonably expect that the proceeds of the Certificates will not be used in a manner that would cause the Certificates to be "arbitrage bonds" within the meaning of Section 148(a) of the Code and applicable regulations thereunder. Moreover, the City covenants and agrees that it will make such use of the proceeds of the Certificates, including interest or other investment income derived from the proceeds of the Certificates, regulate investments of such proceeds and amounts, and take such other and further action as may be required so that the Certificates will not be "arbitrage bonds"within the meaning of Section 148(a) of the Code and applicable regulations thereunder. (e) The City will take all necessary steps to comply with the requirement that certain amounts earned by the City on the investment of the "gross proceeds" of the Certificates (within the meaning of Section 148(f)(6)(B) of the Code), be rebated to the federal government. Specifically, the City will (i) maintain records regarding the investment of the gross proceeds of the Certificates as may be required to calculate the amount earned on the investment of the gross proceeds of the Certificates separately from records of amounts on deposit in the funds and accounts of the City allocable to other bond issues of the City or moneys which do not represent gross proceeds of any bonds of the City, (ii) calculate at such times as are required by applicable regulations, the amount earned from the investment of the gross proceeds of the Certificates which is required to be rebated to the federal government, and (iii) pay, not less often than every 5th anniversary date of the delivery of the Certificates, and within sixty (60) days after retirement of the Certificates, all amounts required to be rebated to the federal government. Further, the City will not indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than the federal government by entering into any investment arrangement with respect to the gross proceeds of the Certificates that might result in a reduction in the amount required to be paid to the federal government because such arrangement results in a smaller profit or larger loss than would have resulted if the arrangement had been at arm's length and had the yield on the issue not been relevant to either party. -18- (f) The City covenants and agrees to file or cause to be filed with the Secretary • of the Treasury, not later than the 15th day of the second calendar month after the close of the calendar quarter in which the Certificates are issued, an information statement concerning the Certificates, all under and in accordance with Section 149(e) of the Code and applicable regulations thereunder. Section 24. Application of Proceeds. Proceeds from the sale of the Certificates shall, promptly upon receipt by the City, be applied as follows: (a) Accrued interest and premium shall be deposited into the Series 1999 Certificates of Obligation Interest and Sinking Fund; and (b) The remaining proceeds from the sale of the Certificates, together with investment earnings thereof, shall be deposited into the Series 1999 Certificates of Obligation Construction Fund and shall be used for the purposes set out in Section 3 of this Ordinance, with any remainder constituting a reserve to be deposited into the Series 1999 Certificates of Obligation Interest and Sinking Fund. 25. Open Meeting. 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 of the Texas Government Code Annotated, Vernon's 1994, as amended, and such notice as given is hereby authorized, approved, adopted and ratified. 26. Registrar. The form of agreement setting forth the duties of the Registrar is • hereby approved, and the appropriate officials of the City are hereby authorized to execute such agreement for and on behalf of the City. 27. Official Statement. The Official Notice of Sale, the Preliminary Official Statement and the Official Statement prepared in the initial offering and sale of the Certificates have been and are hereby authorized, approved and ratified as to form and content. The use of the Preliminary Official Statement and the Official Statement in the reoffering of the Certificates by the Underwriters is hereby approved, authorized and ratified. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein,dated as of the date of payment for and delivery of the Certificates. 28. Partial Invalidity. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceabilityof such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. 29. Related Matters. To satisfy in a timely manner all of the City's obligations under this Ordinance, the Mayor, the City Clerk, the City Treasurer, and all other appropriate officers and agents of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for issuance of the Certificates, including, without limitation, executing and delivering on behalf of the City all certificates, -19- consents, receipts, requests and other documents as may be reasonably necessary to satisfy the City's obligations under this Ordinance and to direct the application of funds of the City consistentwith the provisions hereof. 30. No Personal Liability. No recourse shall be had for payment of the principal of or premium, if any, or interest on Certificate, or for any claim based thereon, or under this Ordinance, against any official or employee of the City or any person executing any Certificate. 31. Payments Pursuant to Certificates Insurance Policy. As long as the Certificates Insurance Policy shall be in full force and effect, the City and the Registrar shall agree to comply with the following provisions: (a) In the event that, on the second Business Day, and again on the Business Day, prior to the payment date on the Obligations, the Paying Agent has not received sufficient moneys to pay all principal of and interest on the Obligations due on the second following or following, as the case may be, Business Day, the Paying Agent shall immediately notify the Insurer or its designee on the same Business Day by telephone or telegraph, confirmed in writing by registered or certified mail, of the amount of the deficiency. (b) If the deficiency is made up in whole or in part prior to or on the payment date, the Paying Agent shall so notify the Insurer or its designee. (c) In addition, if the Paying Agent has notice that any Certificateholder has been required to disgorge payments of principal or interest on the Obligation to a trustee in Bankruptcy or creditors or others pursuant to a final judgment by a court of competent • jurisdiction that such payment constitutes a voidable preference to such Certificateholder within the meaning of any applicable bankruptcy laws, then the Paying Agent shall notify the Insurer or its designee of such fact by telephone or telegraphic notice, confirmed in writing by registered or certified mail. (d) The Paying Agent is hereby irrevocably designated,appointed,directed and authorized to act as attorney-in-factfor Holders of the Obligations as follows: 1. If and to the extent there is a deficiency in amounts required to pay interest on the Obligations, the Paying Agent shall (a) execute and deliver to State Street Bank and Trust Company, N.A., or its successors under the Policy (the"Insurance Paying Agent"), in form satisfactory to the Insurance Paying Agent, an instrument appointing the Insurer as agent for such Holders in any legal proceeding related to the payment of such interest and an assignment to the Insurer of the claims for interest to which such deficiency relates and which are paid by the Insurer, (b) receive as designee of the respective Holders (and not as Paying Agent) in accordance with the tenor of the Policy payment from the Insurance Paying Agent with respect to the claims for interest so assigned, and (c) disburse the same to such respective Holders; and 2. If and to the extent of a deficiency in amounts required to pay principal of -20- the Obligations, the Paying Agent shall (a) execute and deliver to the Insurance Paying Agent in the form satisfactory to the Insurance Paying • Agent an instrument appointing the Insurer as agent for such Holder in any legal proceeding relating to the payment of such principal and an assignment to the Insurer of any of the Obligation surrendered to the Insurance Paying agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Paying Agent and available for such payment (but such assignment shall be delivered only if payment from the Insurance Paying Agent is received), (b) receive as designee of the respective Holders (and not as Paying Agent) in accordance with the tenor of the Policy payment therefor from the Insurance Paying Agent, and (c) disburse the same to such Holders. (e) Payments with respect to claims for interest on and principal of Obligations disbursed by the Paying Agent from proceeds of the Policy shall not be considered to discharge the obligation of the Issuer with respect to such Obligations, and the Insurer shall become the owner of such unpaid Obligation and claims for the interest in accordance with the tenor of the assignment made to it under the provisions of this subsection or otherwise. (f) Irrespective of whether any such assignment is executed and delivered,the Issuer and the Paying Agent hereby agree for the benefit of the Insurer that: -21- 1. They recognize that to the extent the Insurer makes payments, directly or • indirectly (as by paying through the Paying Agent), on account of principal of or interest on the Obligations, the Insurer will be subrogated to the rights of such Holders to receive the amount of such principal and interest from the Insurer, with interest thereon as provided and solely from the sources stated in this Ordinance and the Obligations;and 2. They will accordingly pay to the Insurer the amount of such principal and interest (including principal and interest recovered under subparagraph (ii) of the first paragraph of the Policy, which principal and interest shall be deemed past due and not to have been paid), with interest thereon as provided in this Ordinance and the Obligation, but only from the sources and in the manner provided herein for the payment of principal of and interest on the Obligations to Holders, and will otherwise treat the Insurer as the owner of such rights to the amount of such principal and interest. (g) In connection with the issuance of additional Obligations, the Issuer shall deliver to the Insurer a copy of the disclosure document, if any, circulated with respect to such additional Obligations. (h) Copies of any amendments made to the documents executed in connection with the issuance of the Obligations which are consented to by the Insurer shall be sent to Standard& Poor's Corporation. (i) The Insurer shall receive notice of the resignation or removal of the Paying Agent and the appointment of a successor thereto. . 0) The Insurer shall receive copies of all notices required to be delivered to Certificateholders and, on an annual basis, copies of the Insurer's audited financial statements and Annual Budget. (k) Any notice that is required to be given to a holder of the Obligation or to the Paying Agent pursuant to the Ordinance shall also be provided to the Insurer. All notices required to be given to the Insurer under the Ordinance shall be in writing and shall be sent by registered or certified mail addressed to MBIA Insurance Corporation, 113 King Street,Armonk, New York 10504 Attention: Surveillance. -22- • (1) All capitalized terms used in this Section 31 and not otherwise defined in this Ordinance shall have the meanings set forth in the Municipal Bond Guaranty Insurance Policy. 32. Additional Obligations. The City undertakes and agrees for the benefit of the holders of the Certificates to provide directly, on or before six months after the end of the City's fiscal year,which fiscal year presently ends on September 30, a. to each nationally recognized municipal securities information repository and to the appropriate state information depository, if any, annual financial information(which may be unaudited)and operating data regarding the City for fiscal years ending on or after January 1, 1996 which annual financial information and operating data shall be of the type included in the following listed sections contained in the Final Official Statement: SELECTED FINANCIAL INFORMATION DEBT STATEMENT TAX DATA SELECTED FINANCIAL DATA ADMINISTRATION OF THE CITY - b. to each nationally recognized municipal securities information repository • and to the appropriate state information depository, if any, audited financial statements for the City for fiscal years ending on or after January 1, 1996, when available, if the City commissions an audit and it is completed by the required time; provided that if audited statements are not commissioned or are not available by the required time, the City will provide unaudited statements when and if they become available. C. in a timely manner, to each nationally recognized municipal securities information repository or to the Municipal Securities Rulemaking Board, and to the appropriate state information depository, if any, notice of any of the following events with respect to the Certificates, if material within the meaning of the federal security laws to a decision to purchase or sell Certificates: i. Principal and interest payment delinquencies; ii. Non-payment related defaults; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit enhancements reflecting financial difficulties; V. Substitution of credit or liquidity providers, or their failure to perform; -23- vi. Adverse tax opinions or events affecting the tax-exempt status of the Certificates; • vii. Modifications to rights of Certificate holders; viii. Calls; ix. Defeasances; X. Release,substitution or sale of property securing repayment of the Certificates;and A. Rating changes. d. in a timely manner, to each nationally recognized municipal securities information repository or to the Municipal Securities Rulemaking Board, and to the appropriate state information depository, if any, notice of a failure of the City to provide required annual financial information and operating data, on or before six months after the end of the City's fiscal year. These undertakings and agreements are subject to appropriation of necessary funds and to applicable legal restrictions, if any. The accounting principles pursuant to which the City's financial statements are currently prepared are generally accepted accounting principles set out by the Government Accounting Standards Board, and, subject to changes in applicable law or regulations,such principles will be applied in the future. If the City changes its fiscal year, it will notify each nationally recognized municipal securities information repository and the appropriate state information depository of the • change (and of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide annual financial information. The City's obligation to update information and to provide notices of material events shall be limited to the agreements herein. The City shall not be obligated to provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or prospects and shall not be obligated to update any information that is provided, except as described herein. The City makes no representation or warranty concerning such information or concerning its usefulness to a decision to invest in or sell Certificates at any future date. THE CITY DISCLAIMS ANY CONTRACTUAL OR TORT LIABILITY FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ITS CONTINUING DISCLOSURE AGREEMENT OR FROM ANY STATEMENT MADE PURSUANT TO ITS AGREEMENT. HOLDERS OR BENEFICIAL OWNERS OF CERTIFICATES MAY SEEK AS THEIR SOLE REMEDY A WRIT OF MANDAMUS TO COMPEL THE CITY TO COMPLY WITH THIS AGREEMENT. No default by the City with respect to its continuing disclosure agreement shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this paragraph is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The City may amend its continuing disclosure obligations and agreement in this Section 32 to adapt to changed circumstances that arise from a change in legal -24- requirements, a change in law, or a change in the identity, nature, status or type of operations of the City, if the agreement, as amended, would have permitted the • Underwriter to purchase or sell the Certificates in compliance with SEC Rule 15c2-12, taking into account any amendments or interpretations of such Rule to the date of such amendment, as well as such changed circumstances,and either the holders of a majority in aggregate principal amount of the outstanding Certificates consent or any person unaffiliated with the City (such as nationally recognized bond counsel) determines the amendment will not materially impair the interests of the holders and beneficial owners of the Certificates. The City may also amend or repeal the obligations and agreement in this Section 35 if the SEC amends or repeals the applicable provisions of Rule 15c2-12 or a court of final jurisdiction determines that such provisions are invalid, and the City may amend the agreement in its discretion in any other circumstance or manner, but in either case only to the extent that its right to do so would not prevent the Underwriters from lawfully purchasing or reselling the Certificates in the primary offering of the Certificates in compliance with Rule 15c2-12. If the City amends its agreement, it must include with the next financial information and operating data provided in accordance with its agreement an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of information and operating data so provided. The City's continuing obligation to provide annual financial information and operating data and notices of events will terminate if and when the City no longer remains an "obligated person" (as such term is defined in SEC Rule 15C2-12) with respect to the Certificates. 33. Repealer. All orders, resolutions, and ordinances, and parts thereof inconsistent herewith are hereby repealed to the extent of such inconsistency. 34. Effective Date. This Ordinance shall be in force and effect from and after its • final passage, and it is so ordered. [The remainder of this page has intentionally been left blank]. -25- PASSED AND APPROVED this 27th day of April, 1999. Mayor, The City of Beaumont,Texas ATTEST: City Clerk, The City of Beaumont,Texas (SEAL) -26- INTER-OFFICE MEMORANDUM • Finance City of Beaumont,Texas Date: April 22, 1999 To: Ray Riley, City Manager 1� From: Beverly P. Hodges, Finance Officer Subject: Issuance of$20,000,000 Certificates of Obligation COMMENTS Request an ordinance authorizing the issuance and sale of$20,000,000 City of Beaumont, Texas Certificates of Obligation, Series 1999; levying taxes to provide for payment thereof, and containing other matters related thereto. Results of the competitive bid process will be read by the City's Financial Advisor, Frank Ildebrando of Dain Rauscher Incorporated. A recommendation will be made to award the certificates to the underwriter offering the lowest overall interest cost to the City. The certificates will mature March 1, 2001 through March 1, 2018, with interest payable semiannually in March and September beginning in March 1, 2000. Chase Bank of Texas, National Association will serve as paying agent/registrar. Delivery and receipt of proceeds by the City is scheduled for May 27, 1999. Proceeds will be used to provide funds for street and drainage improvements, park expansions and building renovations and improvements of municipal facilities. f 2 April 27, 1999 Consider a contract for the rehabilitation of Loeb Water Well Number Three The contract would be with Layne-Texas, Inc. of Houston in the amount of$45,609.28. The 19- year old well pump is in need of replacement due to wear and to increase the capacity from three million to five million gallons per day. The work will consist of hauling, replacing, reassembling, delivery and resetting replaced pump assembly and other appurtenances required by the plans and specifications. A copy of the staff memorandum is attached for your review. • � L Interoffice Memorandum City of Beaumont - Water Utilities/Administration Date: April 20, 1999 (saw/mem 062-mem.99) To: Ray A. Riley, City Manager From: S. A. Webb, Water Utilities Direce Subject: Council Agenda Item for Award of Contract Rehabilitation of Loeb Water Well Number Three Located off FM 421 in Hardin County Bids were received on April 19, 1999 for the Rehabilitation of Loeb Water Well Number Three. One contractor submitted a bid for the rehabilitation project. The bid price was $45,609.28 which was within the engineer's estimate. The work will consist of hauling, replacing, reassembling, delivery and resetting replaced pump assembly and other appurtenances required by the plans and specifications. The City of Beaumont's ground water production system consists of three deep wells that average eight-hundred feet (800-feet) in depth and are in Loeb, Hardin County. Well Number Three was constructed in 1980 and is rated for three million gallons per day. The nineteen(19) year old well pump is in need of replacement due to wear and to increase the capacity up to five million gallons per day. Well Number Three is a vital part of the ground water production system. The bid has been reviewed by the Water Utilities Engineer and it is his recommendation that the contract be awarded to Layne-Texas, Inc. in the amount of$45,609.28. SAW/JGM/th Enclosures • Page 1 of 2 BID TABULATION CITY OF BEAUMONT REHABILITATION OF LOEB WATER WELL NUMBER THREE The Bid Proposals submitted have been reviewed,and to the best of my knowledge this is an accurate tab lation of the Bids received. RII)DATE: April 19,1999 Layne-Texas,Inc. Alsay Incorporated Weisinger Water Well,Inc. Houston,Texas Houston,Texas Conroe,Texas Item Description Quantity Unit Unit Price Total Price Unit Price Total Price Unit Price Total Price I. Mobilization cost, including payment bond, performance bond, insurance and moving equipment to project and gaining access to construction areas,all in strict accordance with plans and specifications. l L.S. $5,165.00 $5,165.00 2. Provide and install 12" x 19'-9%" 0.365 wall column pipe with coupling complete and in place. 3 EA. 5788.00 $2,364.00 3. Provide and install top special head shaft 2-7/16"x 239"complete and in place. 1 A. $490.00 $490.00 4. Provide and install top special oil tube 3-'/i'x 5' complete and in place. 1 EA. $133.00 $133.00 S. Provide and install bronze tension hearing 3-'/,"x 2-7/16"complete and in place. 1 EA. $395.00 $395.00 6. Provide and install 3-'h" tension plate bearing complete and in place. 1 EA. S 175.00 $175.00 7. Provide and install 12" x 3-'/," rubber column spiders complete and in place. 2 EA. $18.00 $36.00 8. Provide and install spider bushing 3-%," donuts complete and in place. I I EA $22.48 5247'28 9. Provide and install 3-/."x 5'oil tubes complete and in place. 2 EA. $65.00 5130.00 10. Provide and install 3-'''A"x 2-7116"bronze line shaft bearings complete and in place. 14 EA. S78.00 S1,092.00 Page 2 of 2 Layne-Texas,Inc. Alsay Incorporated Weisinger Water Well,Inc. Houston,Texas Houston,Texas Conroe,Texas ]bronze Description Quantity Unit Unit Price Total Price Unit Price Total Price Unit Price Total Price vide and install 2-7/16"x 20'carbon steel line ft complete and in place. 2 EA. $490.00 5980.00 vide and install 2-7/16" line shaft couplings plete and in place. 15 EA. $100.00 $1,500.00 vide and install stainless steel'/."PVC coated ine two-hundred-eighty-feet(280')with gauge bracket,complete and in place. I L.S. 5560.00 $560.00 vide and install all equipment including scellaneous gaskets,o-rings,adapters,production ts and the like for complete operational system, mplete and in place. 1 L.S. 55,150.00 55,150.00 vide and install new pump bowl assembly rated 50 GPM at 324 TDH at 84%efficiency with nze wear rings,and stainless steel locking collets with keyed impellers(1180 RPM)existing motor 350 tip complete and in place. 1 L.S. $27,192.00 $27,192.00 TOTAL BASE BID $45,609.28 NO BID NO BID L Provided Bid Bond Yes 3 April 27, 1999 Consider a resolution authorizing Beaumont Power and Light to include the City of Beaumont in its application to the Public Utilities Commission for a certificate of convenience and necessity Information from the City Attorney is attached for your review. • INTER-OFFICE MEMORANDUM W City of Beaumont, Texas City Attorneys office Date: April 9, 1999 To: Mayor and City Council From: Lane Nichols, City Attorney Subject: Beaumont Power and Light COMMENTS Attached is a memorandum to allow last Beaumont Power and Beaumont L ght to Pc ude the Light's request that the City enact a resolution area within the City of Beaumont in its application to the PUC for a Certificate of Convenience and Necessity. Also attached is a resolution which I have drafted which would allow the action requested by Beaumont Power and Light. It is my opinion that so long as it is clear that the City is only providing permission for the company to obtain a Certificate of Convenience and Necessity for an area that includes the City of Beaumont that there is no downside risk if the City passes such a resolution. However, since no one knows what the legislature may do on retail electric competition, it is also possible that the resolution will be of no effect or assistance. Lane Nichols Attachments LN:cg 4 • ''�" INTER-OFFICE MEMORANDUM City of Beaumont, Texas City Attorne)(s Office Date: April 1, 1999 To: Mayor and City Council From: Lane Nichols, City Attorney Subject: Beaumont Power and Light Company COMMENTS Attached is a letter from Robert A. Webb of "Power Choice, Inc." requesting that the • City consider passing a resolution authorizing Beaumont Power and Light, the company that earlier requested a franchise, to include the City of Beaumont within its application for a Certificate of Convenience and Necessity ("CCN") to provide retail electric service within the City. Mr. Webb believes that this resolution would authorize Beaumont Power and Light to expand the area of its pending application for a CCN to include the City of Beaumont. He cites a section of the Public Utility Regulatory Act which states that"the applicant shall file with the commission evidence the commission requires to show the applicant has received the consent, franchise, or permit required by the proper municipal or other public authority". The City does not require a "permit" for electric companies; we require a franchise. Mr. Webb, however, believes that a resolution permitting the company to include the City of Beaumont within its Certificate process would be sufficient for his purposes. The reason articulated in Mr. Webb's letter for requesting a permit at this time is that his company has obtained an amendment to the legislation pending before the Texas Legislature dealing with electric utility deregulation that allows pending certificate applications such as the one they presently have before the PUC to continue and further allows the certificate to be amended to include areas within municipalities, such as Beaumont, that are contiguous to the territory in the pending application. A certificate amendment, under the pending legislation, must be done before June 1, 1999. • To: Mayor and City Council April 1, 1999 Subject: Beaumont Power and Light Company Page 2/3 Of course, it is impossible to know in what form the final legislation will be passed or even if it will be passed. Nevertheless, because the company has been successful in obtaining this amendment it seems likely that if legislation is passed allowing electric utility deregulation that this "grandfather" clause will be included. Recently an administrative law judge rendered an opinion in Corpus Christi Power and Light's application for a CCN in the unincorporated areas around the City of Corpus Christi. Because the issues in that case are the same as those in Beaumont Power and Light's application for a CCN in Jefferson County and because the applicants are in fact the same people, it is my understanding that the final judgement in that case will be applicable to Beaumont Power and Light's application in Jefferson County. The administrative law judge found that Corpus Christi Power and Light is not an electric utility. The administrative law judge reasoned that because Corpus Christi Power and Light does not have a business plan in place nor own or lease distribution facilities through which it could provide electric service, it does not meet the definition of an electric utility and thus cannot be granted a CCN. The administrative law judge has recommended that the • commission should allow Corpus Christi Power and Light to supplement its filing by October 1, 1999 to show various facts to prove that they are an electric utility such as: 1. Ownership with the right to use facilities adequate to provide continuous service. 2. Written policies on quality of service standards. 3. Completed tariffs. 4. Projected costs for various components of service. 5. A detailed business plan. 6. Technical and engineering information. 7. That they retain the services of individuals or entities with the necessary skills to install, maintain and operate the equipment and facilities. In conversation with Mr. Webb, it is obvious they will appeal this ruling. I cannot predict the result. However, it would appear that Mr. Webb and Beaumont Power and Light have a significant hill to climb before they will be authorized to provide electric service at retail in Jefferson County. Not the least of the problems is that currently state legislation does not allow retail competition in the electric industry. .� 999 1 , To: Mayor and City Council Page April 1 1 Subject: Beaumont Power and Light Company However, it does not appear that passing a resolution such as that requested by Mr. Webb in behalf of Beaumont Power and Light would be detrimental to the City of Beaumont. If Mr. Webb is right, the h which would include l the City oBBeaumontol do not Light to seek a CCN for an are approve of the present language of Mr. Webb's resolution; and I would only recommend the passage of a resolution which I would draft to clarify that the City of Beaumont is not committing to enter into a franchise to allow electric service by Beaumont Power and Light in Beaumont and that the resolution's sole purpose is to allow the amendment of the existing certificate process. This is an extremely complex situation involving competing interests. The most complex element, obviously, is that we will not know until the legislature acts what form. if any, electric deregulation will take. If the Council desires to enact a resolution as requested by Beaumont Power and Light, I believe it can be done without negatively affecting the rights of the City of Beaumont to demand appropriate franchise terms in the future should Beaumont Power and Light be successful in its CCN procedure and should • the legislature allow retail electric competition. will be glad to expand this issue in a workshop setting if you desire. Also, it might be useful to allow both Beaumont Power and Light and Entergy/Gulf States to present their point of view to the Council. —0—c— Lane Nichols LN:cg is • RESOLUTION NO. WHEREAS, Beaumont Power and Light Company, a limited liability company desires to provide retail electric utility services within the City of Beaumont, Texas; and, WHEREAS, Beaumont Power and Light Company has requested that the City grant a franchise to Beaumont Power and Light Company because such a franchise is required prior to providing retail electric utility service to the citizens of the City of Beaumont; and, WHEREAS, the City understands that Beaumont Power and Light Company has filed an application to obtain a Certificate of Convenience and Necessity from the Public Utility Commission for areas in Jefferson County not including the City of Beaumont, ana, WHEREAS, Beaumont Power and Light has requested that the City grant permission to include the City of Beaumont's territory within its application for a Certificate of Convenience and Necessity before the Public Utility Commission; and, WHEREAS, the City desires to grant permission to Beaumont Power and Light to include the area within the city limits of the City of Beaumont within its application for a Certificate of Convenience and Necessity from the Public Utility Commission of Texas; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT the City of Beaumont hereby grants its consent or permission for Beaumont Power and Light Company to submit an application to the Public Utility Commission of Texas for a Certificate of Convenience and Necessity to provide retail electric utility service within the City of Beaumont and further authorizes Beaumont Power and Light Company to inform the Public Utility Commission of Texas that the City of Beaumont has granted such permission. Section 2. The permission hereby granted is not a franchise to operate and provide retail electric utility services within the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1999. - Mayor - Josh Allen 0002 03/15/99 MON 15: 42 FAX 512 478 6896 ROBERT A. WEBB POWER CHOICE , INC . • "Providing Tomorrow's Energy Choices Today TELEPHONE(512)478-5336 401 VYEST 15TH STREET, SLUE 810 FAX(512)478.6896 AUSTIN.TEXAS 78701 Robert A. Webb General Counsel March 15, 1999 Mr. Lane Nichols City Attorney City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Re: Application of Beaumont Power & Light Company for a Certificate of Convenience and Necessity to Provide Retail Electric Utility Service Within the City of Beaumont Dear Mr. Nichols: Beaumont Power & Lighf Company originally applied to the City of Beaumont for a non-exclusive franchise to use the streets and public rights of way within the City to provide retail electric utility service in February 1998. Before Beaumont Power & Light Company can provide retail electric utility service in Beaumont, it must apply for a certificate of convenience an necessity from the Public Utility Commission of Texas. The Texas Public Utility Regulatory Act does not permit application for such a certificate for territory within a municipality until the municipality has issued a franchise, street use permit or otherwise consented to the application being filed. Beaumont Power & Light Company has offered to enter into a franchise with the City with terms identical to those in the franchise previously issued to the Central Power and Light Company. The City has indicated that it wishes to study possible changes to the form and content of that franchise before taking formal action on the franchise application. This process may take several months. Beaumont Power & Light Company appreciates that the City has concerns about the form of franchise for retail electric utilities in light of changes taking place within the electric industry. However, the electric restructuring legislation currently pending in the Texas Legislature has a limited window of opportunity for any municipality to consider a second retail electric utility. Only certificate applications on file before February 1, 1999, which included BP&L's pending application at the Public Utility Commission, can be considered. BP&L has • until June 1, 1999 to amend its application to include areas within municipalities such as .__ ---------... _ _ _____. _. ---• -.,� Josh Allen 003 03/15/99 MOO 15:42 FAX 512 478 6896 ROBERT A. WEBB . Mr. Lane Nichols March 15, 1999 Page 2 Beaumont contiguous to the territory in the pending application. The attached draft resolution would grant Beaumont Power& Light Company the consent of the City of Beaumont to consideration of a certificate for territory within the City pending negotiation and final action on the franchise application. The Public Utility Regulatory Act does not necessarily require final action on a franchise for a certificate application to be processed by the Public Utility Commission. § 37.053(b) simply states: Sec. 37.053. APPLICATION FOR CERTIFICATE. (b) The applicant shall file with the commission evidence the commission requires to show the applicant has received the consent, franchise, or permit required by the proper municipal or other public authority. In fact, The certificate provisions of the Public Utility Regulatory Act provide for cases similar to the one presented here in § 37.055: Sec. 37.055. REQUEST FOR PRELEM3NARY ORDER. (a) An electric utility that wants to exercise a right or privilege under a franchise or permit that the utility anticipates obtaining but has not been granted may apply to the commission for a preliminary order under this section. (b) The commission may issue a preliminary order declaring that the commission, on application and under commission rules, will grant the requested certificate on terms the commission designates, after the electric utility obtains the franchise or permit. (c) The commission shall grant the certificate on presentation of evidence satisfactory to the commission that the electric utility has obtained the franchise or permit. The City retains full authority over the use of its streets, even if the Commission grants a certificate, under § 14.008(a): Sec. 14.008. MUNICIPAL FRANCHISES. (a) This title does not restrict the rights and powers of a municipality to grant or refuse a franchise to use the streets and alleys in the municipality or to make a statutory charge for that use. • I hope this course of action is one that you can recommend to the City Commission to accomplish the common goals of Beaumont Power & Light Company and the City of Beaumont to provide residents of Beaumont with a choice to obtain lower priced ROBERT A. 'EBB �� Josh Allen 0004 03/15/99 HON 15:43 FAX 512 478 6896 • Mr. Lane Nichols March 15, 1999 Page 3 electricity from the competitive wholesale power market that currently exists in Texas. Please feel free to call me if you have any questions or requests. V ry truly yon, Robert A. Webb cc: Josh Allen Day Lee Snell -- --_-- -- _ _ - - - ROBERT A. WEBB Josh Allen 0005 03/15/99 MON 15:43 FAX 512 478 6896 A RESOLUTION GRANTING CONSENT TO BEAUMONT POWER & LIGHT COMPANY TO SUBMIT AN APPLICATION FOR A CERTIFICATE TO PROVIDE RETAIL ELECTION OF UTILITY SERVICE WITHIN THE CITY OF BEAUMONT PENDING NEGOTIATION ELECTRIC C LIGHT, HEAT, AND POWER FRANCHISE FROM THE CITY O BEAUMONT. WHEREAS, Beaumont Power & Light Company, a limited liability company duly organized under the laws of the State of Texas, desires to own and operate retail electric utility facilities in the City of Beaumont, Texas, under an electric light, heat, and power franchise ; and WHEREAS, said Beaumont Power & Light Company has filed an application for a franchise and, in connection with said application has pointed out various revenues, savings, and other advantages that v.-ill be realized by the City and its inhabitants if said franchise is granted; and WHEREAS, § 37.051 of the Public Utility Regulatory Act requires that Beaumont Power & Light Company obtain a certificate of convenience and necessity from the Public Utility Commission of Texas prior to initiating retail electric utility service within the City; and WHEREAS, § 37.053 of the Public Utility Regulatory Act requires Beaumont Power & Light Company to file with its application for a certificate of convenience and necessity that it has "received the consent, franchise, or permit required" by the city; and WHEREAS, the City finds it to be in the best interest of the City of Beaumont that the Public Utility Commission consider the certificate application of Beaumont Power & Light Company on its merits; NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: Section 1. That the City of Beaumont gives the consent necessary pursuant to § 37.053(b) of the Public Utility Regulatory Act for Beaumont Power & Light Company to submit an application to the Public Utility Commission of Texas for a certificate of convenience and necessity to provide retail electric utility service within the City of Beaumont and further authorizes Beaumont Power & Light Company to inform the Public Utility Commission of Texas that the City of Beaumont has granted such permission. Section 2. That the City of Beaumont will take under advisement the application of Beaumont Power & Light Company for an electric light, heat, and power franchise and will negotiate to determine appropriate terms and conditions for any such franchise with the objective of presenting • a franchise ordinance to the City Commission for formal consideration as soon as is practicable. ROBERT A. 1i'EBB �� Josh Allen Z006 03/15/99 MON 15:43 FAX 512 478 6896 The foregoing Resolution was read and passed and approved on the _ day of • , 1999, by the folloving vote: _. day , APPROVED, this the _. Y of A.D. 1999. Mayor of the City of Beaumont, Texas ATTEST: City Secretary APPROVED AS TO LEGAL FORM: City Attorney • ! 4 April 27, 1999 Consider contract extensions with Statewide Consolidated Community Development Corporation and Southeast Texas Community Development Corporation Information related to the contract extensions is attached for your review. INTER-OFFICE MEMORANDUM N EL City of Beaumont,Texas Community Development Division Date: April 22, 1999 To: Ray A. Riley, City Manager From: Beverly P. Hodges, Finance Officer `f Subject: SCCDC AND SETCDC REQUESTS FOR CONTRACT EXTENSIONS COMMENTS On August 11, 1998 the City Council authorized the City Manager to execute contracts with the Statewide Consolidated Community Development Corporation(SCCDC) in the amount of$30,000 and the Southeast • Texas Community Development Corporation (SETCDC) in the amount of$90,000. The SCCDC and SETCDC have requested contract extensions. The contract with SCCDC is funded from the 1997 CDBG Grant Program. It provides for project related. soft costs for the development of up to thirty houses in Beaumont. SCCDC has requested a contract extension to March 31, 2000. The contract with SETCDC is funded from the 1997 HOME Grant Program. It provides for homebuyers assistance for the sale of six new homes to single female head of households in Beaumont. SETCDC has requested a contract extension to August 11, 2000. Council is requested to authorize the City Manager to execute the attached contract extensions for SCCDC and SETCDC. contract.ext SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. Enhancing the Community through People,Health,Education,Economic Development,Housing,Safe Environment,Criminal Justice,Jobs and Employment P.O. Box 1789 Beaumont,Texas 77704 (409)835-7527 March 25, 1999 A 2a 2930j/ Mr. Ray Riley n?� NIAR 'QQ9 City Manager N R E C E I 'V E D aJo City of Beaumont N Commu P.O. Box 3827 ro �e t Develop Beaumont, Texas 77704 6�8��1 all st V`(�ti Dear Mr. Riley: This letter is in reference to Contract No. 8 in the amount of$90,000 as referenced in Resolution Number 98-201, dated August 11, 1998, between the City of Beaumont and the Southeast Texas Community Development Corporation, Inc. Our records show that some terms of this contract are incomplete and that all funds have not been expended. Because of this, Southeast Texas Community Development Corporation, Inc. would like to request an extension to commit all funds by August 11, 2000. • Please be apprised that SETCDC has all six(6)home buyers identified and qualified for the homes to be constructed for single female head of households. SETCDC has four(4) of the six(6) lots purchased and shall have the remaining two (2) lots purchased within two (2) weeks. (Schedule of construction attached) SETCDC would like to extend the contract to August 11, 2000 to allow ample time of completion. We respectfully request your approval. Your assistance and approval in this matter is greatly appreciated. Sincerely, U u Antoinette Hardy Director - Housing Division cc: Richard Chappell Agreed and Accepted: • Ray Riley, City Manager Date SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION,INC.is an independent,nonpartisan,tax-exempt,non-profit corporation. BEAUMONT PORT ARTHUR ORANGE OTHER SOUTHEAST TEXAS COMMUNITIES STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. •. °Pcoyle Helying Peoyle" April 14, 1999 Mr. Ray A. Riley City Manager City of Beaumont P.O. Box 3827 Beaumont, TX 77704 Dear Mr. Riley: This letter is in reference to Resolution No. 98-200, a contract between the City of Beaumont and Statewide Consolidated Community Development Corporation, in the amount of$30,000.00 dated August 11, 1998. Our records show that some terms of this contract are incomplete and that all funds have not been expended. Because of this, Statewide Consolidated Community Development Corporation,would like to request an extension to commit all funds by March 31, 2000. Your assistance and approval in this matter is greatly appreciated. Sincere , Rosetta Jones Executive Director c: Richard Chappell Community Development Director AGREED AND ACCEPTED: Ray A. Riley, City Manager Date P. O. Box 1008, Beaumont, Texas 77704 (409) 832-6161 FAX (409) 833-1166 Pager (409) 757-8086 5 April 27, 1999 Consider an ordinance declaring certain dilapidated structures to be public nuisances and ordering their repair or removal by the owners and authorizing the removal of certain other structures whose owners failed to comply with condemnation orders The proposed ordinance would authorize the demolition of seven structures considered at previous public hearings in which the owners have failed to comply with condemnation orders. The ordinance would also declare 31 structures to be public nuisances and order their removal by the owners within 30 days. One structure would be declared dangerous and the owner would be ordered to raze, remove, or repair such within a specified time. Copies of the staff report and proposed ordinance are attached for your review. Detailed inspection reports for each of the structures are included in the packet. INTER-OFFICE MEMORANDUM City of Beaumont,Texas Demolition Date: April 13, 1999 To: Ray Riley, City Manager From: John Labrie, Clean Community Department Director� _ tZ1— o Subject: DILAPIDATED STRUCTURES PUBLIC HEARING-04/27/99 COMMENTS A public hearing is requested for City Council to consider thirty-nine(39)structures to be declared public nuisances and dangerous to the health,safety and welfare of the citizens of the city. The structures have been inspected by the Clean Community Department and found to be dangerous structures as defined by the City ofBeaumont's Code of Ordinances,Article III. Dangerous Structures,Section 14-50. 1. DEMOLITION REQUEST We are requesting at this time for City Council authorization to demolish seven(7)structures previously declared as dangerous. City Council has previously issued an order for the owners of these properties to raze or have the structures repaired. Reinspection of the structures have found that the owners did not comply with that abatement order. The structures have not been removed nor have the owners presented a satisfactory plan for compliance. The addresses of the seven structures are as follows: 1. 1490 Avenue F (*1) 5. 1950 Pierce 2. 1 170 Glasshouse(*2) 6. 5300 Seale Road 3. 2510 Houston (Garage Apartment) 7. 3673 St. James (*2) 4. 3005 Ma Magnolia (Gana e Apartment) (*1) (*#) Indicates number of times structure has been enrolled in Work Repair Program. • ORDINANCE NO. • ENTITLED AN ORDINANCE FINDING CERTAIN STRUCTURES TO BE PUBLIC NUISANCES AND ORDERING THEIR DEMOLITION, RENOVATION AND REMOVAL; PROVIDING FOR SEVERABILITY AND PROVIDING FOR A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the City Council of the City of Beaumont hereby finds and declares the buildings located at: 1. 1490 Avenue F 21. 701 Grant(Commercial/Residence) 2. 1170 Glasshouse 22. 2885 Harriot 3. 2510 Houston (Garage Apartment) 23. 1045 Lavaca (Garage Apartment) 4. 3005 Magnolia (Garage Apartment) 24. 1847-53 Lela (Apartments) 5. 1950 Pierce 25. 1169 Liberty ` • 6. 5300 Seale Road 26. 1169 Liberty(Rear Structure) • 7. 3673 St.James 27. 4120 Lou 8. 4360 Brandon 28. 1925 May 9. 4203 Concord (Commercial) 29. 2060 Pear 10. 4205 Concord (Activity Building) 30. 3510 Sarah (Two Trailer Houses) 11. 4205 Concord (Garage Apartment) 31. 1218 Sherman 12. 2050 Euclid 32. 2545-65 Sixth 13. 2055 Euclid 33. 2295 Southerland 14. 3430 Euclid W. 34. 4180 Steelton 15. 2801 Fifth S. 35. 2985 Terrell 16. 1695 Franklin 36. 3440 Threadneedle Aly 17. 800 Grand (Commercial) 37. 1060 Washington Blvd. (Church) 18. 1835-37 Grand 38. 3447 Washington Blvd. (Commercial) 19. 3050 Grand 39. 4369 Sullivan 20. 3077 Grand CONDEMNATION HEARING APRIL 27, 1999 PAGE Q. CONDEMNATION REQUEST It has been determined that the thirty-one(3 l)structures listed below meet the definition of a dangerous structure and have deteriorated such that they are no longer considered suitable for repair. It is therefore requested that City Council declare these to be dangerous structures and order the owners to raze said strictures within thirty(30)days. If the property owner fails to comply within thirty(30)days,we are requesting City Council authorization to demolish these structures without further notification to the property owner or City Council action. The addresses of the structures are as follows: 8. 4360 Brandon 24. 1847-53 Lela (Apartments) 9. 4203 Concord(Commercial) 25. 1169 Liberty 10. 4205 Concord (Activity Building) 26. 1 169 Liberty (Rear-Structure) 1 l. 4205 Concord (Garage Apartment) 27. 4120 Lou 12. 2050 Luclid 28. 1925 May 13. 2055 Euclid 29. 2060 Pear 14. 3430 Euclid W. 30. 3510 Sarah (Two Trailer Houses) 15. 2801 Fifth S. 3 l. 1218 Sherman 16. 1695 Franklin 32. 2545-65 Sixth 17. 800 Grand (Commercial) 33. 2295 Southerland 18. 1835-37 Grand (*2) 34. 4180 Steelton 19. 3050 Grand (*1) 35. 2985 "Ferrell 20. 3077 Grand 36. 3440 Threadneedle Aly 21. 701 Grant (Commercial/Residence) 37. 1060 Washington Blvd. (Church) 22. 2885 Har-iot 38. 3447 Washington Blvd. (Commercial) 23. 1045 Lavaca (Gars e A artment) (*#) Indicates number of times structure has been enrolled in Work Repair Program. M. RAZE OR REPAIR REOUEST It is also requested that City Council declare the following structure or building to be a dangerous structure and order the owners to raze,remove,or repair such within a specified time. The structure meets the criteria of a dangerous structure but is considered suitable for rehabilitation. The address of the structure is as follows: 39. 4396 Sullivan (*I) • to be public nuisances in that said buildings violate Chapter 14, Section 14-50 of the Code • of Ordinances of the City of Beaumont and are for want of repairs, or by reason of age or dilapidated condition, likely to cause or promote fires that would endanger persons or property. Section 2. The following structures are hereby ordered to be demolished and removed by the City of Beaumont on account of the owners thereof and such expense of demolition and removal shall be assessed as a special tax against the property upon which the building is situated. The following structures were heretofore declared to be a public nuisance in violation of Chapter 14, Section 14-50 of the Code of Ordinances of the City: 1. 1490 Avenue F 5. 1950 Pierce 2. 1170 Glasshouse 6. 5300 Seale Road 3. 2510 Houston (Garage Apartment) 7. 3673 St. James • 1�4. 3005 Magnolia (Garage Apartment) Section 3. In accordance with Article XVII, Section 2, of the Charter of the City of Beaumont, Section 10-2 and 14-52 of the Code of Ordinances of Beaumont, Texas, and Section 103.4 of the Standard Building Code, it is hereby ordered that the owner or owners of the following described buildings demolish and remove said structures within thirty (30) days of the effective date of this ordinance: 8. 4360 Brandon 24. 1847-53 Lela (Apartments) 9. 4203 Concord (Commercial 25. 1169 Liberty 10. 4205 Concord (Activity Building) 26. 1169 Liberty(Rear Structure) 11. 4205 Concord (Garage Apartment) 27. 4120 Lou 12. 2050 Euclid 28. 1925 May 13. 2055 Euclid 29. 2060 Pear 14. 3430 Euclid W. 30. 3510 Sarah (Two Trailer Houses) 15. 2801 Fifth S. 31. 1218 Sherman 16. 1695 Franklin 32. 2545-65 Sixth 17. 800 Grand (Commercial) 33. 2295 Southerland 18. 1835-37 Grand 34. 4180 Steelton 19, 3050 Grand 35. 2985 Terrell 20. 3077 Grand 36. 3440 Threadneedle Aly 21. 701 Grant(Commercial/Residence) 37. 1060 Washington Blvd. (Church) 22. 2885 Harriot 38. 3447 Washington Blvd. (Commercial) • 23. 1045 Lavaca (Garage Apartment) If the property owner fails to comply within thirty (30) days, Council orders that the property be demolished without further notice to the property owner(s) or City Council action. Section 4. In accordance with Article XVII, Section 2, of the Charter of the City of Beaumont, Section 10-2 and 14-52 of the Code of Ordinances of Beaumont, Texas and Section 103.4 of the Standard Building Code, it is hereby ordered that the owner or owners of the following described buildings either demolish or repair said structures within thirty (30) days of the effective date of this ordinance: 39. 4369 Sullivan . Section 5. 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 6. That any person who violated any provision of this ordinance shall, upon conviction, be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 11999. - Mayor - City Manager's Office City of Beaumont To: Mayor and Councilmembers From: Kyle Hayes Date: April 22, 1999 Subject: Section 108 funds The City of Beaumont has an approved Section 108 line of credit up to $11 million, which is the upper limit of the City's capacity to use Section 108 funds. To date, $8.175 million has been committed by the Council as follows: $3.175 million for Hotel Beaumont; $3.0 million for Crockett Street; and $2.0 million for the Jefferson Theatre restoration. There is a remainder of$2.825 million which has not been committed. On March 16, 1999, representatives of the Melton YMCA made a request of Section 108 funds in the amount of$2.23 million. The total cost of constructing the Southend Branch Library is estimated at $1.625 million. The City plans to purchase 3-4 acres of land at the corner of Fannett and Sarah. The Council appropriated $125,000 for land acquisition in the 1999 CDBG budget. We anticipate needing another $1.5 million for construction, architectural fees, and furnishings for the building. The cost estimates are based on actual expenditures for the Willard Branch. For purposes of determining eligibility, CDBG rules and requirements apply when using Section 108 funds. All projects and activities must principally benefit either low-and- moderate income persons, or aid in the elimination or prevention of slum and blight, or meet urgent needs of the community. Section 108 funds can be used for the Melton YMCA and the Southend Branch Library. Once the Council makes a determination of how to allocate the remaining $2.825 million, notice will be given of required public hearings which will be scheduled at the same time Council votes on funding levels for the separate projects. The notice should include the anticipated Section 108 funding amount when posted. City of Beaumont Small Business Loan Status Report For Quarter Ended March 31, 1999 The Small Business Revolving Loan Fund Report has been divided into two sections. A summary of the loan activity for the quarter ended March 31, 1999 is presented first. This overview is followed by a detailed status report listing each loan in the portfolio in order of delinquency. Summary There were 72 loans totaling $1.34 million at December 31, 1998. During the quarter 3 new loans were closed totaling 65,500. One loan was charged off, one loan was rewritten and two aid out during the 9 P 9 quarter along with other principal payments and adjustments of $68,100, leaving the total loans outstanding at 71 with a balance due of $1.33 million at March 31, 1999. Total receipts for March including principal and interest were $21,693 and total receipts for the quarter were $61,327. A breakdown of the loan portfolio is as follows: Number Principal Range of Loan of Loans Outstanding Less than $ 15,000 39 $ 331,000 $15,001 -$100,000 32 1,003.000 71 $1,334,000 Detailed Status Report This section reflects a detailed list of each loan in the portfolio and is grouped by age of account. Of the 71 loans outstanding, 34 of them are current, 8 are between one and two months delinquent, 6 are between three and six months delinquent and 23 are greater than seven months delinquent. A breakdown of the loans by age of account is as follows: Number Principal Age of Loan of Loans Outstanding Current 34 $ 870,000 1-2 months delinquent 8 97,000 3-6 months delinquent 6 86,000 > than 7 months delinquent 23 281.000 71 $1,334,000 Significant Delinquencies There are 23 business loans which are greater than 7 months delinquent. At March 31, 1999 the principal balance outstanding of accounts in this category totaled $281,000. There are 3 loans which are between 7 - 12 months past due and 20 loans which are more than 12 months delinquent. A breakdown of the collection status on these delinquent loans is as follows: Status of Number Principal Delinquency of Loans Outstanding Bankruptcies pending 3 $ 59,000 Legal action pending 19 208,000 Rewrites pending 1 14,000 23 281,000 1 City of Beaumont Small Business Loan Status Report For Quarter Ended March 31, 1999 Principal Number of Balance Summary of Outstanding Loans: _Loans Outstanding Balance outstanding at 12/31/98 72 $1,337,160 Loans during quarter (detail below): 3 65,500 Principal payments: 2 (49,492) Principal adjustments: 2 (18,642) Balance outstanding at 3/31/99: 71 $1,334,526 City Loan Participating Loans Funded During Quarter Amount Bank Marty C. Bush d/b/a Marty Bush Texaco $25,000 Community Trina McCray d/b/a TLM Vending Enterprises 18,000 Micro Loan Rainbow Fiberglass (approved previous quarter) 22,500 Micro Loan Total $65,500 Loans Declined During Quarter: Darlene Saunders d/b/a California Nails 2 Go $15,000 Polk-Ray Generation I, Inc. d/b/a Accent Hair Salon 15,000 Juanita Louis d/b/a Louis Enterprises 9,000 $39,000 Rewrites Approved During Quarter: Glenda Worthy Edwards d/b/a Better Hearing Outlet $7,616 Audwin Samuel d/b/a Samuel and Associates 8,599 $8,599 Write-offs Approved During Quarter: Ronald Kirk Langley Sr. d/b/a B & F Wood Shavings $18,669 $18,669 Estimated Funds Available for Lending at 3131199: _$470,000 Aging Summary at March 31, 1999 65.2% 21.1% 7.3% 6.4% o Current o 1-2 Months o 3-6 Months M Over 7 Months 2 City of Beaumont Small Business Loan Status Report For Quarter Ended March 31,1999 Original Principal Principal Last Payments Loan Balance Amount Payment Name Delinquent Amount Outstanding Delinquent Date Current: B& L Mail Presort -- $10,000 $7,774 - 3 / 30 /99 Better Business Bureau -- 10,000 5,004 -- 3 / 1 / 99 Boudreauxs Enterprises -- 23,900 22,420 -- 3 / 8 / 99 Bruce Vaughn Painting -- 15,000 10,925 - 3 / 19 / 99 C& I Computer Services, Inc. -- 35,051 26,844 - 3 / 12 / 99 Colonial House Florist -- 27,500 12,437 -- 3 / 1 /99 Cormier's Automotive -- 5,000 3,929 - 2 / 4 / 99 Corsair Holdings -- 50,000 45,506 - 3 / 15 / 99 DJ's Boudain - 100,000 53,331 - 3 / 29 / 99 Duerler,Wayne and Amy -- 4,865 4,138 -- 3 / 23 /99 Epicurean Empire, Inc. -- 50,000 46,966 -- 3 / 19 / 99 Frosty Mug, Inc. -- 73,920 73,074 -- 3 / 15 / 99 Goldstar EMS, L.L.C. - 100,125 86,299 -- 3 / 4 / 99 Granny's Old Fashion Pies, Inc. - 26,351 24,008 -- 3 / 22 / 99 Hall-McSween's Canvas -- 21,021 3,335 - 3 / 17 / 99 J Allen Contractors, Inc. -- 26,800 20,719 - 3 / 8 /99 JR's Automotive -- 46,500 42,972 - 3 / 5 / 99 JTB Recycling Facility, Inc. - 40,000 38,058 -- 3 / 30 /99 Kensley Enterprises -- 17,654 13,458 -- 3 / 30 /99 Kickstand Bike Shop -- 10,000 8,663 - 3 / 12 / 99 Lawrence D. Evans Ins Agency -- 32,250 22,110 - 3 / 12 /99 Magnolia Street Front End Svc -- 20,000 15,776 -- 3 / 5 199 Marty Bush Texaco -- 25,000 25,000 -- - / -- / - Merle Norman Cosmetics -- 15,000 8,777 -- 3 / 9 /99 Newmanns Collision Specialists - 20,000 17,588 -- 3 / 9 / 99 Ray, L. Malcolm -- 39,000 30,453 -- 3 / 3 / 99 Samuel &Associates -- 8,599 8,599 - - / -- / -- Scofield Consultants, Inc. -- 25,000 149 -- 3 / 15 / 99 Shaffer Manufacturing - 50,000 45,815 - 3 / 17 /99 Sigma Engineers, Inc. -- 29,875 23,974 - 3 / 4 / 99 Sweet Magnolias -- 10,000 7,333 - 3 / 2 199 T J C Investments -- 98,000 91,680 -- 2 / 22 /99 TLM Vending Enterprises -- 18,000 18,000 - -- / - / -- Total Recal Company, Inc. -- 12,000 5,454 -- 3 / 26 / 99 Subtotal (34) $1,096,411 $870,569 - 3 City of Beaumont Small Business Loan Status Report << For Quarter Ended March 31, 1999 Original Principal Principal Last Payments Loan Balance Amount Payment Name _ Delinquent Amount Outstanding Delinquent Date 1 to 2 Months Delinquent: (Reminder Notice Sent) Amina's Business Service Ctr 1 $15,000 $12,718 $118 3 / 8 /99 Better Hearing Outlet 1 23,600 7,644 266 2 / 23 / 99 Broussards BBQ Links& Ribs 1 15,000 13,708 220 2 / 4 / 99 Classic Kid Learning Academy 1 15,000 12,103 185 3 / 8 / 99 Native American Tobacco Dist. 1 15,000 11,220 225 3 / 10 / 99 Rainbow Fiberglass Works 1 28,500 25,085 319 3 / 2 / 99 Glasworks 2 7,000 5,640 185 1 / 20 /99 P &S Janitorial Service 2 15,000 8,895 566 3 / 8 /99 Subtotal(8) $134,100 $97,013 $2,085 3 to 6 Months Delin qwan (Staff Collection Letter Sentj Ash Jon Uniforms 3 $33,000 $25,718 $1,152 3 / 11 / 99 Gonzales Elect. Systems 3 12,500 5,177 519 12 / 24 / 98 Gregory Timothy 3 4,861 3,955 517 2 / 26 / 99 Grady &MJ's Automotive, Inc. 6 7,432 6,372 443 2 / 12 /99 Subtotal(4) $57,793 $41,221 $2,631 (Legal Collection Letter Sent) Tillman's Bar B Q Pit 4 $14,357 $14,352 $639 12 / 31 /98 Rewrites Pending) Backyard Bar BQ 4 $50,000 $30,096 $2,365 2 / 9 / 99 Total Current to 6 Months Delinquent(48) $1,352,660 $1,053,251 $7,720 Significant Delinquencies (7 months or greater Bankruptcies Pending_ A& E Spring & Front End 34 $42,528 $41,521 $14,785 9 / 9 /96 More to Love, Inc. 25 15,000 11,880 10,515 9 / 10 / 97 Rienstra Reporting & Records 20 15,000 5,922 5,922 2 / 28 / 96 Subtotal (3) $72,528 $59,323 $31,222 4 City of Beaumont Small Business Loan Status Report For Quarter Ended March 31, 1999 i Original Principal Principal Last Payments Loan Balance Amount Payment Name Delinquent Amount Outstanding Delinquent Date Legal Action Pending: (Petitions Filed) Automotive Shop on Wheels 27 $11,500 $10,908 $4,523 3 / 25 /97 Beck's Package Store 27 13,500 12,503 6,303 5 / 4 / 98 Dartest Marilyn 27 6,850 5,460 4,837 3 / 11 / 97 Ebony Leader 27 12,919 12,004 5,023 12 / 20 /96 Joseph A. Jones *" 13 9,800 3,437 3,437 5 / 30 /97 Phillips,Walter 3 6,604 4,769 4,769 5 / 6 / 96 Thomas Garage&Wrecker 39 10,000 9,500 9,500 9 / 1 /95 Veal Construction 59 9,900 9,740 9,740 10 / 4 /94 Subtotal (8) $81,073 $68,321 $48,133 (Petitions Pending) Alta Mere Window Tinting 11 $20,000 $16,775 $2,283 6 / 18 /98 Baskets&Things 12 4,000 3,714 845 10 / 13 /98 Colbert Nyron 50 7,413 7,189 5,687 9 / 13 /95 JR's Drywall & Painting 28 5,000 4,848 4,848 12 / 1 / 94 Key West 86 Rest. 36 12,000 11,727 10,039 1 / 27 /99 L G Properties, Inc. 45 30,000 30,000 19,348 - Michael's Mobile Detailing 39 9,917 9,917 7,202 - Mr. Parker Handyman Service 43 10,750 10,603 6,598 12 / 5 /95 Travis Hardware 25 30,238 26,373 20,301 11 / 4 / 97 Subtotal (9) $129,318 $121,147 $77,150 (City Council Action Pending) Barbeque& Lagniappe Restaur. 16 $11,300 $3,644 $3,430 3 / 22 /99 (Legal Action Requested) Mike's Softworks 7 $15,000 $14,866 $1,597 12 / 28 / 98 (Rewrites Requested) Webb, Steven C. 15 $15,000 $13,974 $4,418 3 / 9 / 99 Total Delinquent 7 Months or Greater(23) $324,219 $281,275 $165,950 Total All Loans(71) $1,676,880 $1,334,526 $173,670 **Joseph A. Jones- Payment of$3754.15 received 4/13/99. 5