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HomeMy WebLinkAboutPACKET NOV 09 1999 �Q[43' City y o f Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 9, 1999 1:30 P.M. CONSENT AGENDA * Approval of minutes Confirmation of committee appointments A) Approve a change in investment authority for the City of Beaumont yf 4 B) Approve an increase in the charge for photocopy services for non-library card holders a C) Approve a change in signatories for the Memorial Sisters of Charity Employee Benefits Account at Hibernia National Bank D) Approve a bid for a five-year financing agreement for the purchase of two International 8100 4 x 2 cab and chassis equipped with 45 cubic yard trash hauling bodies E) Approve an annual contract for the purchase of asphaltic concrete for use by the Public Works Department, Streets and Drainage Division F) Approve an annual contract for the purchase of sand cement for use by the Public Works Department, Streets and Drainage and Water Utilities Divisions G) Approve an annual contract for medical laboratory services H) Authorize Joseph G. Majdalani, Water Utilities Manager and Tom Warner, Public Works Director to sign wastewater discharge permit applications and monthly operating reports I) Authorize the granting of a License to Encroach and accepting a utility easement on Lot 1 r 1, Block 14, Mary Howell Third Addition J) Approve the acquisition of property for the Walden Road Improvement Project 3a� K) / Approve the acquisition of property for the Concord Road Improvement Project r� ?Y� L) Authorize payment of a claim in the amount of$21,500 -,',M) Authorize a payment for annual membership dues to the South East Texas Regional Planning Commission I ,337 N) Authorize additional compensation for the City Attorney and City Clerk O) Accept the Grand Recap of the tax roll for the tax year 1999 �g�li Consent Agenda Summary November 9, 1999 * Approval of minutes * Confirmation of committee appointments John Johnson would be appointed to the Planning Commission. The term would commence November 9, 1999 and expire November 8, 2001. (Councilmember Becky Ames) Diane Riley would be appointed to the Sister City Commission. The term would commence November 9, 1999 and expire November 8, 2001. (Councilmember Andrew Cokinos) A) Approve a change in investment authority for the City of Beaumont The Administration requests approval of Stephen J. Bonczek, City Manager to be a designated investment official for the City of Beaumont. Beverly Hodges, Finance Officer and Kandy Daniel, Treasurer are also investment officials. The City Manager, who by authority of the City Charter is responsible for all investments of the City, can delegate explicit authority to other individuals to invest the City's funds on a day to day basis. A copy of the staff memorandum is attached for your review. B) Approve an increase in the charge for photocopy services for non-library card holders The Beaumont Public Library System charges non-library card holders $.25 per exposure plus a $2 handling charge for photocopy services either from hard copy or microfilm. This fee applies to all non-cardholder requests with the exception of those made by the libraries who are members of the Houston Area Library System or the East Texas Consortium of Libraries. Numerous letters from outside the city are received each month asking for copies of newspaper articles. Checks with other libraries have shown that the normal handling charges range from$10 to $25. This matter was discussed with the Library Commission on October 14, 1999 and it was their unanimous recommendation that a handling fee of$10 per request be charged plus the normal copying charges. The Administration recommends approval of the new charge. C) Approve a change in signatories for the Memorial Sisters of Charity Employee Benefits Account at Hibernia National Bank The Administration requests approval of D. Michael Elliot,Nancy Horstmann, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on the above account. Both Memorial Sisters of Charity employees and City employees are authorized to sign on the account. Signatories on all other City of Beaumont accounts for banking or investment purposes shall remain unchanged. A copy of the staff report is attached for your review. D) Approve a bid for a five-year financing agreement for the purchase of two International 8100 4 x 2 cab and chassis equipped with 45 cubic yard trash hauling bodies Administration recommends award of a bid for a five year financing agreement with a fixed interest rate of 5.39% to Banc One Leasing Corporation. The purchase of the trucks was authorized by City Council on December 22, 1998 at a cost of$206,419.32. The trucks were delivered on October 1, 1999. Bids were requested for a fixed interest rate to finance the total cost for five years with the first annual payment in arrears. A copy of the staff memorandum is attached for your review. E) Approve an annual contract for the purchase of asphaltic concrete for use by the Public Works Department, Streets and Drainage Division Administration recommends approval of an annual contract with APAC-Texas, Inc. of Beaumont for purchasing asphaltic concrete at the unit costs stated in the staff memorandum with an estimated total annual expenditure of$86,325. Cold laid asphaltic concrete is used for repairing potholes and small sections of street,while hot laid asphaltic concrete is used for repairs to larger street sections. A copy of the staff memorandum is attached for your review. F) Approve an annual contract for the purchase of sand cement for use by the Public Works Department, Streets and Drainage and Water Utilities Divisions Administration recommends approval of an annual contract with Transit Mix, Inc. for purchasing sand cement at the unit costs stated in the staff memorandum with an estimated total annual expenditure of$79,500. Sand cement is used in the maintenance of water lines and meter boxes,the installation of culverts, and repairs to driveways. A copy of the staff memorandum is attached for your review. G) Approve an annual contract for medical laboratory services Administration recommends approval of an annual contract with Christus St. Elizabeth Hospital Lab for medical laboratory services at the unit costs stated in the staff memorandum with an estimated annual expenditure of $30,837. Medical laboratory services are required for the analysis of employee drug and alcohol tests, for testing and management of air and blood borne exposures to public safety employees, and for the testing of patients seen in the Health Clinic. IT) Authorize Joseph G. Majdalani,Water Utilities Manager and Tom Warner,Public Works Director to sign wastewater discharge permit applications and monthly operating reports Administration recommends approval of a resolution authorizing the above employees to sign wastewater discharge permit applications and monthly operating reports on behalf of the City. A copy of the staff memorandum is attached for your review. I) Authorize the granting of a License to Encroach and accepting a utility easement on Lot 1, Block 14, Mary Howell Third Addition Susan Simmons, the agent for the owners, Owen and Shannon Hayes, has submitted an application for a License to Encroach into the City's five foot utility easement on their property in exchange for an additional five foot utility easement. The property is described as Lot 1, Block 14 of the Mary Howell Third Addition and is located at 675 Belvedere Drive. Administration recommends authorization to grant the license and accept the additional easement. J) Approve the acquisition of property for the Walden Road Improvement Project Property located at 5405 Walden Road(0.5139 of an acre)would be purchased from Petro Stopping Centers, L. P. in the amount of$108,567. Administration recommends approval of the purchase of this property. A copy of the staff memorandum is attached for your review. I) Approve the acquisition of property for the Concord Road Improvement Project Property located at 4301 Concord Road(0.066 of an acre)would be purchased from Wilma L. Gibbs in the amount of$9,805. Administration recommends approval of the purchase. A copy of the staff memorandum is attached for your review. L) Authorize payment of a claim in the amount of$21,500 Administration recommends ratification of payment of Sherrie Query's property bodily injury claim in the amount of$21,500. A copy of the staff memorandum is attached for your review. M) Authorize a payment for annual membership dues to the South East Texas Regional Planning Commission Administration recommends approval of a payment in the amount of$20,004.48 to the South East Texas Regional Planning Commission for annual membership dues. Funds are budgeted for this expenditure in the FY 2000 budget and the amount of dues has remained unchanged from last year's dues. A copy of the staff memorandum is attached for your review. N) Authorize additional compensation for the City Attorney and City Clerk 1)The City Attorney's base salary would be increased by 4% and the 1CMA deferred compensation contribution would increase from $5,000 to $7,500. 2)The City Clerk's base salary would increase from$49,920 to $55,000. The City Clerk would also receive an ICMA deferred compensation contribution of$5,000. This matter was discussed in an Executive Session on November 2, 1999. O) Accept the Grand Recap of the tax roll for the tax year 1999 Administration recommends the acceptance of the Grand Recap of the tax roll for the tax year 1999 with a taxable value of$3,701,491,226. A copy of the staff memorandum is attached for your review. A ! City of Beaumont •� Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Beverly Hodges, Finance Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council consider a resolution requesting a change in investment authority for the City of Beaumont. RECOMMENDATION The administration requests approval of Stephen J. Bonczek,City Manager,Beverly Hodges,Finance Officer and Kandy Daniel, Treasurer as the designated investment officials for the City of Beaumont. BACKGROUND State law mandates the City Council designate one or more officers or employees as investment officials to be responsible for the investment of funds consistent with the City's adopted investment policy . The City Manager,who by authority of the City Charter is responsible for all investments of the City,can delegate explicit authority to other individuals to invest the City's funds on a day to day basis. Investment officials shall not deposit,withdraw,transfer or manage the funds of the City of Beaumont in a manner that is not consistent with the "prudent person" standard. BUDGETARY IMPACT None. PREVIOUS ACTION Beverly Hodges and Kandy Daniel were designated as investment officials for the City of Beaumont on October 14,1997. SUBSEQUENT ACTION None. RECOMMENDED BY 0 City Manager and Finance Officer RECOMMENDED MOTION Approve/Deny resolution designating Stephen J. Bonczek,City Manager,Beverly Hodges,Finance Officer and Kandy Daniel, Treasurer as investment officials for the City of Beaumont. B Cit y of Beaumont Council Agenda Item � _ ML g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Maurine Gray, Library Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: October 27, 1999 REQUESTED ACTION: Council consider a request to increase the charge for photocopy services for non-library card holders. RECOMMENDATION The Administration recommends approval of an increase in the charges for photocopy services for non-library card holders. BACKGROUND Since July 1, 1993, the Beaumont Public Library System has charged non-library card holders $.25 per exposure plus a $2 handling charge for photocopy services either from hard copy or microfilm. This fee applied to all non-cardholder requests with the exception of those made by the libraries who are members of the Houston Area Library System or the East Texas Consortium of Libraries. The City is members of both of those organizations. Numerous letters from outside the City are received each month asking for copies of newspaper articles, particularly obituaries. Checks with other libraries have shown that the normal handling charges now range from $10 to $25. This matter was discussed with the Library Commission at their meeting on October 14, 1999 and it is their unanimous charge (currently $.25 per page for microfilm and $.15 per page for photocopy) with the current exceptions continuing. BUDGETARY IMPACT A small increase in income is expected. PREVIOUS ACTION The current fee was approved effective July 1, 1993. SUBSEQUENT ACTION None. RECOMMENDED BY Library Commission, Library Director and City Manager RECOMMENDED MOTION Approve/Deny the increase in the handling fee for photocopy services for non-library card holders to $10 per request plus the normal copying charges. This would not apply to requests made by libraries who are members of the Houston Area Library System or the East Texas Consortium of Libraries. c cuC.. ity of Beaumont c Council Agenda Item A c g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Beverly Hodges, Finance Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 5, 1999 REQUESTED ACTION: Council consider a resolution requesting a change in signatories for the Memorial Sisters of Charity Employee Benefits Account No. 5007019326 at Hibernia National Bank. RECOMMENDATION The administration requests approval of D. Michael Elliot, Nancy Horstmann, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on the above listed account. Signatories on all other City of Beaumont accounts for banking or investment purposes shall remain unchanged. BACKGROUND Memorial Sisters of Charity is administrator for one of the City's health plans. Claims are paid from City of Beaumont Account No. 5007019326 at Hibernia National Bank. Both Memorial Sisters of Charity employees and City employees are authorized to sign on the account. BUDGETARY IlVIPACT None. PREVIOUS ACTION Michele Spees, Richard Todd, Nancy Horstmann, Laurie Gutierrez, Ray A. Riley, Beverly Hodges and Kandy Daniel were approved as signatories to the Memorial Sisters of Charity account on October 14, 1997. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer RECOMMENDED MOTION Approve/Deny a resolution requesting D. Michael Elliot, Nancy Horstmann, Stephen J. Bonczek, Kandy Daniel, Beverly Hodges and Kyle Hayes as authorized signatories on Memorial Sisters of Charity Employee Benefits Account No. 5007019326 at Hibernia National Bank. City of Beaumont •�• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: October 26, 1999 REQUESTED ACTION: Council approval to award a bid for a financing agreement. • RECOMMENDATION Administration recommends award of a bid for a five year financing agreement with a fixed interest rate of 5.39% to Banc One Leasing Corporation for the purchase of two International 8100 4 x 2 cab and chassis equipped with 45 cubic yard trash hauling bodies. BACKGROUND One bid was received for a fixed interest rate for financing the purchase of two International 8100 4 x 2 cab and chassis equipped with 45 cubic yard trash hauling bodies. The purchase of the trucks was authorized by City Council on December 22, 1998 at a cost of $206,419.32. The trucks were delivered on October 1,1999. Bids were requested for a fixed interest rate to finance the total cost for five years with the first annual payment in arrears. Nine financial institutions were notified of the bid with only one responding. Banc One Leasing Corporation submitted a bid for a fixed interest rate of 5.39%. The low bid response can be attributed to the amount financed and the City's non bank qualified status. Financing agreements with bank qualified government entities provide financial institutions with income tax incentives. Interest portions of the payments from bank qualified entities are not included in the gross income of the bank for federal income tax purposes. However, bank qualified government entities cannot issue more than $10M in General Obligation and/or certificates of obligation for the calendar year in which the agreement is executed. Financing agreements provide a means by which the City can spread the cost of expensive equipment over several years while taking advantage of low interest rates. Financing Agreement October 26, 1999 Page 2 BUDGETARY IMPACT An amortization schedule indicating the cost of the financing agreement is as follows: Payment No. Payment Amount Interest Principal Purchase Option 1 $48,192.82 $11,126.00 $37,066.82 $169,352.49 2 $48,192.82 $9,128.10 $39,064.72 $130,352.50 3 $48,192.82 $7,022.51 $41,170.31 $89,117.47 4 $48,192.82 $4,803.43 $43,389.39 $45,728.07 5 $48,192.82 $ 2,464.74 $45,728.08 -0- TOTAL $240,964.10 $34,544.78 $206,419.32 The City's Finance Officer compared the cost of financing the equipment purchased to the cost of paying for the equipment in full. In the past, savings have been realized from this type of arrangement. Based on current investment rates, the City would earn $33,370 over the term of the agreement resulting in a potential net borrowing cost of$1,175. The first annual payment of $48,192.82 will be due one year after execution of the agreement. Payments will be made from the Solid Waste Fund. PREVIOUS ACTION The purchase of the two trucks was authorized by Council on December 22, 1998, at a cost of $206,419.32. SUBSEQUENT ACTION None. RECOMMENDED BY The City Manager, Finance Officer and Central Services Director. RECOMMENDED MOTION Approve/Deny a resolution accepting a bid from Banc One Leasing Corporation for a five year financing agreement with a fixed interest rate of 5.39% for the purchase of two International 8100 4 x 2 cab and chassis equipped with 45 cubic yard trash hauling bodies. MEMO To: Stephen J. Bonczek, City Manager � r From: Beverly P. Hodges, Finance Officer Date: Monday, September 20, 1999 Subject: Lease Purchase Financing The City has approved the purchase of two trash trucks for use in the Clean Community Department costing $206,419.32 for which lease purchase financing is available. The lowest quoted interest rate is a fixed rate of 5.39% for five years in arrears which was received from Banc One Leasing Corp. Group to finance (Municipal Lease Purchase) the purchase of the trucks. If the City invested the purchase price at our current yield we would earn $46,690. The cost of interest to finance the purchase of the equipment is projected at $34,545. Since we will be making annual payments on the lease purchase, we must factor in the annual payment as a reduction in the cash available for investment. As a result we would earn $33,370 over the term of the lease purchase which is a net interest cost of $1,175 and would retain the use of our money for the length of the financing. Purchase out of current Net cost from investment of i funds (loss of the use of current funds and Lease i funds) Purchase financing ($46,690) $1,175 It is my recommendation that we use the Municipal Lease Purchase, which would allow us the flexibility of keeping an adequate fund balance and realize the benefit of a net borrowing cost of$1,175 on the purchase of a long-term fixed asset relative to the payment schedule of the financing. E +� City of Beaumont •�• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council approval of an annual contract for the purchase of asphaltic concrete. RECOMMENDATION Administration recommends award of an annual contract to APAC-Texas, Inc. for purchasing asphaltic concrete at the unit costs stated below with an estimated total annual expenditure of $86,325. BACKGROUND Bids were requested for an annual contract for asphaltic concrete for use by the Public Works Department, Streets and Drainage Division. Cold laid asphaltic concrete is used for repairing potholes and small sections of street, while hot laid asphaltic concrete is used for repairs to larger street sections. It is estimated that approximately 3,500 tons of asphaltic concrete will be used during the term of the contract. Six (6) vendors were notified with two (2) responding with bids as reflected in the attached bid tabulation. Specifications requested pricing for both plant pickup by City personnel and jobsite delivery by the vendor. Each bidder met all product requirements specified. BUDGETARY IMPACT The contract provides for the vendor to furnish approximately 3,500 tons of asphaltic concrete at the following fixed unit prices: $23.79 per ton for hot laid concrete - plant pickup, $26.29 per ton for jobsite delivery; and $25.83 per ton for cold laid concrete - plant pickup, $28.33 per ton for jobsite delivery. The total estimated expenditure is $86,325 for the one (1) year contract period. Funds are available for this expenditure in the Public Works Department's operating budget. Contract for Purchase of Asphaltic Concrete November 1, 1999 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Works Director. RECOMMENDED MOTION Approve/Deny award of a one (1) year contract for purchasing asphaltic concrete to APAC-Texas, Inc. at the following unit prices: $23.79 per ton for hot laid concrete - plant pickup, $26.29 per ton for jobsite delivery; and $25.83 per ton for cold laid concrete - plant pickup, $28.33 per ton for jobsite delivery. Bid Tabulation-Annual Contract for Asphaltic Concrete Bid #RF 1000-03 Bid Opening Date: 10/25/99 APAC-TEXAS,INC. BO-MAC CONTRACTORS MATERIAL APPROXIMATE BEAUMONT,TX BEAUMONT,TX TYPE USE(TONS) Price/Ton Total Price/Ton Total Hot Laid FOB Vendor's Plant 2,000 $23.79 $47,580 $24.65 $49,300 Hot Laid FOB Jobsite $26.29 $27.15 Cold Laid FOB Vendor's Plant 1,500 $25.83 $38,745 $28.65 $42,975 Cold Laid FOB Jobsite $28.33 $31.25 Location of Plant 860 Pine Street IH-10 @ Bairds Bayou ! VOW City of 11 J!.-. J Beaumont Council Agenda Item Iffil - TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: October 25, 1999 REQUESTED ACTION: Council approval of an annual contract for the purchase of sand cement. RECOMMENDATION Administration recommends award of an annual contract to Transit Mix, Inc. for purchasing sand cement at the unit costs stated below with an estimated total annual expenditure of$79,500. BACKGROUND Bids were requested for an annual contract for sand cement for use by the Public Works Department, Streets and Drainage and Water Utilities Divisions. The material is used in the maintenance of water lines and meter boxes, the installation of culverts, and repairs to driveways. The application determines which of the three sand cement types (1 sack, 11/2 sack, or 2 sack) will be utilized on a given job. It is estimated that approximately 8,000 tons of sand cement will be used during the term of the contract. Four (4) vendors were notified with each responding with bids as reflected in the attached bid tabulation. Each company met all specifications with the lowest total cost bidder being recommended for award. BUDGETARY IMPACT The contract provides for the vendor to furnish approximately 8,000 tons of sand cement at the following fixed unit costs: $9 per ton for one (1) sack, $10.50 per ton for llh sack, and $12 per ton for two (2) sack. The total estimated expenditure is $79,500 for the one (1) year contract period. Funds are available for this expenditure in the Public Works Department's operating budget. Contract for Purchase of Sand Cement October 25, 1999 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Works Director. RECOMMENDED MOTION Approve/Deny award of a one (1) year contract for purchasing sand cement to Transit Mix, Inc. at the following unit costs: $9 per ton for one (1) sack, $10.50 per ton for 11/2 sack, and $12.00 per ton for two (2) sack. City 1 of Beaumont U7�7 Council Agenda Item IL TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kirby Richard, Central Services Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 2, 1999 REQUESTED ACTION: Council approval of an annual contract for medical laboratory services. RECOMMENDATION Administration recommends the award of an annual contract to Christus St. Elizabeth Hospital Lab for medical laboratory services at the unit costs stated on the attached tabulation with an estimated annual expenditure of$30,837. BACKGROUND Medical laboratory services are required for the analysis of employee drug and alcohol tests, for testing and management of air and blood borne exposures to public safety employees, and for the testing of patients seen in the Health Clinic. Invitations to bid were sent to ten (10) medical laboratory service companies with one responding. Specifications required the testing laboratory to be directed by a board-certified pathologist and a clinical scientist to provide support in medical and technical areas. Specifications also required the testing laboratory to be certified by the Clinical Laboratory Improvement Amendments of 1988 and the National Institute on Drug Abuse for the performance of urine drug analysis. The responding vendor met these specifications. Testing supplies will be provided by the laboratory at no cost to the City. Specimens will be collected from the Health Department twice daily. STAT specimens will be picked up as needed by Christus St. Elizabeth Hospital Lab. In addition, written test results will be supplied to the Beaumont Public Health Department. Repeat testing will be performed without charge when requested by the department's physician. Annual Contract for Medical Laboratory Services November 2, 1999 Page 2 BUDGETARY IMPACT Funds are available in the Beaumont Public Health Department's contract services budget. The attached tabulation provides last year's unit prices compared to this year's unit prices. There is a significant increase in the Evidential Breath Testing, due to an error made in the previous year's bid. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Central Services Director, and Public Health Department Director. RECOMMENDED ACTION Approve/Deny an annual contract for medical laboratory services with Christus St. Elizabeth Hospital Lab per the unit prices on the attached tabulation. Annual Contract for Medical Laboratory Services November 2, 1999 Page 3 BID TABULATION FOR MEDICAL LABORATORY SERVICES BID OPENING DATE: NOVEBMER 1, 1999 CITY BID NUMBER: EF1000-11 CHRISTUS ST ELIZABETH HOSPITAL LAB 2830 CALDER AVE BEAUMONT TX 77726-5405 Last Year's Est. Annual This Year's Total Description Unit Cost Quantity Unit Cost Cost CBC $ 4.90 200 $ 6.00/ea $ 1,200.00 Comprehensive Metabolic Panel $ 7.35 200 $ 7.35/ea $ 1,470.00 Substance Abuse Panel 5-DOT split specimen $ 15.00 300 $ 18.50/ea $ 5,550.00 Substance Abuse Panel 5 -Regular $ 15.00 800 $ 18.50/ea $ 14,800.00 Evidential Breath Testing $ 3.00 300 $ 18.00/ea $ 5,400.00 HIV $ 7.00 60 $ 10.00/ea $ 600.00 Hepatitis Panel $ 50.00 20 $ 50.00/ea $ 1,000.00 Hepatitis B Surface Antigen $ 5.00 10 $ 5.00/ea $ 50.00 Quantitive Hepatitis BS Ab (titer) $ 8.00 60 $ 8.00/ea $ 480.00 Hepatitis C Antibody Screen $ 17.55 10 $ 17.55/ea $ 175.50 ABO-RH $ 5.60 20 $ 5.60/ea $ 112.00 ESTIMATED COST TOTAL $ 30,837.50 Discount of all other Miscellaneous Tests 50% H ! City of Beaumont �•r Council Agenda Item TO: Stephen J. Bonczek, City Manager FROM: Tom Warner, Director of Public Works PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council consider approving a resolution authorizing either Joseph G. Majdalani, Water Utilities Manager and Tom Warner, Public Works Director to sign wastewater discharge permit applications and monthly operating reports. RECOMMENDATION Administration recommends approval of a resolution authorizing Joseph G. Majdalani and Tom Warner to sign wastewater discharge permit applications and monthly operating reports on behalf of the City. BACKGROUND In June 1999, City Council approved a resolution authorizing S.A. Webb, Water Utilities Director, to sign wastewater discharge permit applications and monthly operating reports on behalf of the City. This action was necessary to comply with regulations of the Texas Natural Resource Conservation Commission. The resolution authorizing Joe Majdalani and Tom Warner to sign the documents will reflect the recent changes in the Water Utilities and Public Works Departments. BUDGETARYIMPACT None PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager, Public Works Director and Water Utilities Manager RECOMMENDED MOTION Approve/Deny a resolution authorizing Joe G. Majdalani, Water Utilities Manager and Tom Warner, Public Works Director to sign wastewater discharge permit applications and monthly operating reports. • Public Works 11-09-99 City of Beaumont � c Council Agenda Item ... ._..._... . TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council consider a resolution granting a License to Encroach and accepting a utility easement on Lot 1, Block 14, Mary Howell Third Addition. RECOMMENDATION Susan Simmons, the agent for the owners, Owen and Shannon Hayes, has submitted an application for a License to Encroach into the City's five foot utility easement on their property in exchange for an additional five foot utility easement. The property is described as Lot 1, Block 14 of the Mary Howell Third Addition and is located at 675 Belvedere Drive. Administration recommends authorization to grant the license and accepting the additional easement. BACKGROUND A garage on a slab is encroaching 0.7 foot for a distance of 20.1 feet into the easement as shown on the attached plat. There is a sanitary sewer line located adjacent to and approximately four tenths of a foot out of the utility easement. The property owners will grant an additional five foot utility easement adjoining and coincident with the existing five foot utility easement to accommodate the sanitary sewer line. The easement will provide that, in any repair, maintenance or slip lining of the sewer line, the City will use all reasonable efforts to assure that there will be no damage to any structure on the property. Any fees associated with either the easement or the License to Encroach will be waived by both the City and the owner of the property. BUDGETARY IMPACT None PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny authorizing a resolution granting a License to Encroach and accepting a utility easement on Lot 1, Block 14, Mary Howell Third Addition. 10%29/99 FRI 11:59 FAX 8 Public }Forks to 002 .VONW Application For Li ease To Encroach City of Bea ont, Texas OWEN Atio SNA oN HA 1. NAME OF APPLICANT: ADDRESS: / PHONI fL�� 2. AUTHORITY OF APPLICANT:-640—MA 1 3. NAME OF OWNER- ADDRESS: PHONE: ` I LEGAL DESCRIPTION OF OWNERS PROPE3�11 (Lots, Blocks, Subdivision) T B SERVED Y IENT OR GHT-OF-W • 4. DESCRIPTION OF EASEMENT OR RIGHT-0F-WAY INVOLVED: 5. PRESENT USE OF EASEMENT OR RIGHT-OF!WAY (List Utilities if Present):_ 6. USE OF EASEMENT OR RIGHT-OF-WAY DESIRED BY OWNER: 7. ACH A MAP OR PLAT DELINEATING THE EASEMENT OR P LIC RIGHT-OF-WAY (Dimensioned and to ' gineering Scale), 8. COST TO BE PAID FOR LICENSE TO ENCROACH-S500 — PAYABLE ONE WEEK PRIOR TO CITY COLn1CIL MEETING AT WHICH COUNCIL IS TO CONSIDER APPROVAL. TO THE BEST OF MY KNOWLEDGE, THE ABOVE 1/40 O: IS TRUE CORRECT. _Q S I NATURE COMMENTS FROM DEPARTMENTS AND/OR UTILITY COMPANIES FOR LICENSE TO ENCROACH APPLICATION PROPERTY DESCRIPTION: 675 Belvedere Drive - garage on a slab encroaching into a five (5) foot utility easement at the north line of property described as being Lot 1, Block 14, Mary Howell Third Addition. APPLICANT: Susan Simmons as agent for owners, Owen and Shannon Hayes DATE OF DISTRIBUTION: October 29, 1999 1) Joris P. Colbert, City Engineer Date Received: 10-29-99 Acceptance and approval. 2) Don Burrell, Code Enforcement Date Received: 11-1-99 Acceptance and approval. 3) Micky Bertrand, Fire Department Date Received: 10-29-99 Acceptance and approval. 4) S. A. Webb, Water Utilities Date Received: 10-29-99 Acceptance and approval. 5) Stephen Richardson, Planning Department Date Received: 10-29-99 Acceptance and approval. 6) Mark Horelica, Traffic Administrator Date Received: 10-29-99 Acceptance and approval. 7) Jeff Steely, ENTEX Corporation Date Received: 10-29-99 Acceptance and approval. _ 8) James Bryant, Entergy Date Received: 10-29-99 Acceptance and approval. 9) Steve Bush, Southwestern Bell Telephone Date Received: N/A SWBT has informed the City that they will pursue a separate and independent license agreement with the property owners for an additional fee. 10) Richard Le Blanc, DD #6 Date Received: 11-1-99 Acceptance and approval. 11) Tyrone Cooper, Legal Department Date Received: 11-1-99 Acceptance and approval. encrouh.com SUBJECT LICENSE TO ENCROACH a Y -CPA _ UL_ J S AND ; _; ER NE ACCEPTANCE OF FIVE °,' Y FOOT UTILITY EASEMENT fry gi z H u z H W A a m t=i, o �IAZALE W T LOT 1, BLOCK 14 J,y,, _ � _ W ANC MARY HOWELL THIRD L= C EAN»E ` > E TATE ADDITION ILCHESTERZ HoN N. C WIT (676 BELVEDERE) > a ROST g f, CLINTON } i p P DRAIN. TUL1P� `S '7 S > cr J S l E WOKS Z OWNER= off d T OWEN is SHANNON HAYES z Li Z 9 KoN��R z HIS Ot LEGEND LOCATION MAP EXISTING 6' UTILITY EASEMENT N.T.S. ® PROP. 6' UTILITY EASEMENT OR SET ROD DUE TO FENCE POST Oki N22'21.Odw 95.00' FWD P.PT6J FND N2Z 12'3V N 94.99' 1. R60 D ALE 0.9 Sub 1-15' UTUTY £SYNT, ----------- - — ---------- L o r 2 25' REAR SETBACK VOL. 943, PG. 174 s^ S OSIOE S£rBACK W SIDE SETBACK VOL. 943. PG. 175 0.R C43, PG. 174 ��� LOT I N,T.S. PAO BLOCK 14 5.4' .e.0 24.1' �v x W L, w o vl gym= g 20.8 � W 6. ^C7 vei I I BRICK AND F UMC N .v W ( C� RESUNCF 20.4 S.0' so Q I I o.4 mWz Z I 31.5' Q 0 Ls W I o ( CO, 'D. 0 " o 289- o o I BRICK WALL W I 30• BUILDING bNE I VOL. 7, PC. 177 Y.R.J.C. , I f FNO S/8 1, R P.P. Fmo ylr FND SZZ21'4r E 95.00' 1. R00 CALL S2721'00'E 95.00' BELVEDERE DRIVE (60' R.O.W.) 675 Belvedere Or" Beaumont. Texas 77706 &G-tom J City of Beaumont 7LJ.-JI Council Agenda Item A E g TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: November 2, 1999 AGENDA MEMO DATE: October 26, 1999 REQUESTED ACTION: Council consider a resolution authorizing the acquisition of Parcel 16 of the Walden Road Improvement Project. RECOMMENDATION The owner of the property listed below has agreed to a negotiated value for their property to be conveyed for the right-of-way for the Walden Road Improvement Project. The City will pay the appraised value for the land, $4.85 per square foot. Petro would be responsible for relocating the sign and light poles off the right-of-way. Parcel 16: 0.5139 acre (22,385 square feet) of land out of the Samuel Stivers League, Abstract 51 (5405 Walden Road) Negotiated Value $108,567 (Partial Taking) Appraiser: Bishop Real Estate Appraisers, Inc. Owner: Petro Stopping Centers, L. P. Administration recommends authorization to acquire the property. BACKGROUND Construction is under contract for the improvements to Walden Road from FM 364 (Major Drive) to Interstate Highway 10. Council authorized the extension of the contract to include the section from Interstate Highway 10 to State Highway 124 (Fannett Road) on July 13, 1999. BUDGETARY IMPACT This project is funded under the Capital Improvement Program. PREVIOUS ACTION Five parcels which have been acquired were approved by Council in January, March and July, 1999. SUBSEQUENT ACTION Two offers are pending on the section from FM 364 (Major Drive) to Interstate Highway 10. One owner has accepted the appraised value on the section from Interstate 10 to State Highway 124 (Fannett Road). RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny authorizing the acquisition of Parcel 16 of the Walden Road Improvement Project. I SUBJECT WALDEN ROAD IMPROVEMENT PROJECT PROPOSED RIGHT—OF—WAY ACOU131TION Z PARCEL NO. 16 WALDEN ra ui 0.05139 ACRE OUT OF THE SAMUEL 3TIVERS LEAGUE. ABSTRACT 61 10 C4 ,(PARTIAL TAKING) C3 -j W x z w Li < Q OWNER: PETRO STOPPING u 4R CENTERS, L.P. < V� CA LEGEND LOCATION MAP N.T.S. SUBJECT PROPERTY ................. ............. o/ Nc�l INSET N.T.S. K City of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 2, 1999 REQUESTED ACTION: Council consider a resolution authorizing the acquisition of Parcel 94 of the Concord Road Improvement Project. RECOMMENDATION The owner of the property listed below has agreed to convey her property for the right-of-way of the Concord Road Improvement Project. Parcel 94: 0.066 acre out of Lot 3 and part of Lot 2, Block 1, Comstock Addition (4301 Concord Road) Appraised Value: $9,806 Less Improvements Retained _I Total Compensation $9,805 (Partial Taking) Appraiser: Bishop Real Estate Appraisers, Inc. Owner: Wilma L. Gibbs Administration recommends authorization to acquire this property. BACKGROUND Parcel 55 is in Phase II which contains 53 parcels. BUDGETARY IMPACT This project is funded under the Capital Improvement Program. PREVIOUS ACTION There are thirty-four parcels acquired in Phase II since June 1998 and authorization for eminent domain has been approved for one parcel. Jefferson County has foreclosed on the owners of five parcels. By law the property must be condemned in order to acquire a portion of the lots for the right-of-way. Council has approved eminent domain for these parcels. SUBSEQUENT ACTION Four offers are pending on Phase II and the owners of five parcels have accepted the appraised value. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny authorizing the acquisition of Parcel 94 of the Concord Road Improvement Project. SUBJECT CONCORD ROAD P IMPROVEMENTS PROJECT A''k� ��� W H a rr ER CO�c J J J a 4 PROPOSED o�d EAL v1 �, Q t SC N RIGHT-OF-WAY s �� s ti 9� 9� �LLI IORV ° ACOU131TION ��� H 9QO.ti so�9 W PARCEL NO. 64 -1 ~ z H a Li o 0.066 ACRE 69 a, w go OUT OF LOTS S 96 AND PART OF Of �o m AN 7 U LOT 2, BLOCK 1, 287 u COMSTOCK ADDITION 4801 COMSTOCK ROAD MAPLE D (PARTIAL TAKING) RBO� Z 3 K WILCO e OWNERS a a: T $ WILMA L. GIBBS o DOG D r nu LEGEND LOCATION MAP N.T.S. 0 SUBJECT PROPERTY ,' �• °R �.k > ;t R°q s/~ ,�i �y �'.��.•.•',::/�•'...�•.;:: :;,, r;; SCALE: CSmC O. t LOCARD N I o,. 1 N.T.S. / , V i^ O COt COI_ JO J. lOt i PLAT TO ACCOMPANY City of Beaumont •r• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Matt Martin, Liability Administrator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: October 28, 1999 REQUESTED ACTION: Approval of a resolution authorizing payment of Sherrie Query's bodily injury claim in the amount of $21,500 RECOMMENDATION Administration recommends ratification of payment of Sherrie Query's property bodily injury claim in the amount of$21,500. BACKGROUND In November, 1997, a City of Beaumont Water Department employee failed to yield right-of-way to claimant, Sherrie Query, at the intersection of Willow and Harrison. Sherrie Query's bodily injury was a direct result of this accident. The administration has determined that the City is legally responsible for damages resulting from the employee's failure to yield right-of-way to Sherrie Query. BUDGETARY IMPACT $21,500 PREVIOUS ACTION None. SUBSEQUENT ACTION None. Resolution Approval - Sherrie Query Bodily Injury Claim October 28, 1999 Page 2 RECOMMENDED BY City Manager, City Attorney, and Liability Administrator RECOMMENDED MOTION Approve/Deny authorization and ratification of payment for Sherrie Query's bodily injury claim in the amount of$21,500. RESOLUTION NO. the claim of Sherrie Query has been discussed in an Executive Session WHEREAS, rY properly called and held Tuesday, October 26, 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 Sherrie Query in the amount of Twenty-one Thousand Five-Hundred ($21,500) Dollars. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1999. - Mayor - City of Beaumont 7Lj1j Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Executive Assistant to the City Manager MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 5, 1999 REQUESTED ACTION: Consider authorizing the payment of Fiscal Year 2000 South East Texas Regional Planning Commission membership dues in the amount of$20,004.48. RECOMMENDATION Administration recommends approval of the payment of$20,004.48 for membership dues for the South East Texas Regional Planning Commission. BACKGROUND The City of Beaumont and other governmental entities in Southeast Texas pay membership dues to the South East Texas Regional Planning Commission on an annual basis to pay for such programs as the Criminal Justice Program, Area Agency on Aging Program and Retired Seniors Volunteer Program. BUDGETARY IMPACT Funds are budgeted for this expenditure in the FY 2000 budget. The membership dues have not changed from last year's amount. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY • City Manager and Executive Assistant to the City Manager RECOMMENDED MOTION Approve/Deny authorizing the payment of Fiscal Year 2000 Southeast Texas Regional Planning Commission membership dues in the amount of$20,004.48. South East Regional Planning Commission P. O. Drawer 1387 Nederland, Texas 77627 (409)727-2384 October 1, 1999 INVOICE City of Beaumont P. O. Box 3827 Beaumont, Texas 77704 FY 2000 SETRPC MEMBERSHIP DUES SETRPC DUES $ 5,716.15 Criminal Justice Program 1,874.34 AAA Program 5,451.51 FGP Program 2,661.28 RSVP Program 4,301.20 p Subtotal $20,004.48 s,' c P� Contribution to Partnership of �'� fl- y X°� Southeast Texas (Optional)* 25.000.00 k 4 w Total Invoice $45.004.48 JAI THANK YOU PLEASE RETURN YELLOW COPY WITH PAYMENT CITY OFKQMONT IMON P ECEIVED R OCT 4 1999 o MAW City o I ..P f Beaumont i ..]ME Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Andrea S. Deaton, Budget Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 5, 1999 REQUESTED ACTION: Accept the Grand Recap of the tax roll for the tax year 1999 with a taxable value of$3,701,491,226. RECOMMENDATION Administration recommends the acceptance of the Grand Recap of the tax roll for the tax year 1999 with a taxable value of$3,701,491,226. BACKGROUND Pursuant to the Texas Property Tax Code, Section 26.09, this recap must be approved by the City Council. BUDGETARY IMPACT Property tax revenues in the FY 2000 Budget were calculated based on this taxable value. PREVIOUS ACTION On September 21, 1999 Council approved the tax roll as certified by the Jefferson County Appraisal District with a taxable value of$3,701,491,226. There is no change in the taxable value in Grand Recap. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer Accept Grant Recap November 5, 1999 Page 2 RECOMMENDED MOTION Approve/Deny acceptance of the Grand Recap of the tax roll for the tax year 1999 with a taxable value of$3,701,491,226. • 10/08/1999 22:56:01 TAX COLLECTION SYSTEM PAGE: 9 TC500 C E R T I F I E D R 0 L L J U R I S D i C T 1 0 N S U M M A R Y PROCESSING FOR TAX YEAR: 1999 TAX OFFICE: JEFFERSON COUNTY TAX OFFIC2 JURISDICTION: 21 CITY 01' BEAUMONT TOTAL PARCELS: 61,099 TAX RATE:00.635000 GROSS VALUE: 4,097,257,524 STATE HOM: 0 OPT HOW 0.00000 EXEMPT PARCELS: 3,404 STATE 065: 0 OPT 065: 17,500 EXEMPT VALUE: 195,572,600 DISABLED: 17,500 AG EXCLUSION: 25,241,490 AG PROPERTIES: 239 HS CAPPED CNT: 2,420 HS CAPPED AMT: 6,545,518 HISTORICAL CNT: 7 HISTORICL VALUE: 5,000,840 PRORATED CNT: 15 PRORATED VALUE: 111,739 GROSS TAXABLE: 3,864,785,337 STATE HOMESTEAD 24,152 HOMESTEAD AMT: 0 LOCAL HOMESTEAD 24,152 HOMESTEAD AMT: 0 OVER65 8,466 OVER 65 AMT: 0 LOCAL OVER65 8,466 OVER 65 AMT: 141,345,737 SURVIVING SPOUSE: 81 AMOUNT: 1,360,680 # OF DISABLED: 945 DISABLED ALIT: 15,558,927 VET is $5000 222 VETERAN AMT: 1,062,840 VET a $7500 43 VETERAN AMT: 297,167 VET 2 $10000 30 VETERAN AMT: 266,750 VET is $12000 320 VETERAN AMT: 3,403,260 TOTAL VET 615 VETERAN AMT: 5,030,017 TOTAL PART XMP: 163,295,361 TAXABLE VALUE: 3,701,491,226 FROZEN ACCTS: 0 LEVY LOSS: 0.00 TOTAL LEVY: 23,504,509.27 LATEAG CNT: 1 LATEAG AMT: 17.95 FROZEN GROSS: 0 FROZEN TAXABLE: 0 UNFROZEN LEVY: 0.00 , FROZEN LEVY: 0.00 TIF CAPTURED: 23,859,390 0 BARBARA LIMING tool CITY CLERK CITY CLERK'S OFFICE City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS November 9, 1999 1:30 P.M. AGENDA OPENING • Invocation Pledge Roll Call • Presentations and Recognition • Public Comment: Persons may speak on scheduled agenda items • Consent Agenda GENERAL BUSINESS 1. Consider casting votes for C. L. Sherman for election to the Jefferson County ld Appraisal District Board of Directors _3�4a 2. Consider approval of contracts between the City of Beaumont and Statewide / Consolidated Community Development Corporation, Inc. 3. Consider approval of a contract between the City of Beaumont and the Charlton- J Pollard Neighborhood Association, Inc. _�4�2 4. Consider approval of an extension of the contract between the City of Beaumont and Southeast Texas Community Development Corporation 0 5. Consider approval of a five year contract with Andy Hebert for the operation of the Henry Homberg Golf Course with an option to renew for an additional five years 6. Consider a resolution to provide for the reimbursement of costs incurred prior to / issuance of revenue bonds or other tax exempt obligations to finance the expansion, repair, renovation and related improvements to the water and sewer system 3s - 7. Consider a resolution requesting a change to the City of Beaumont Investment I Policy • 8. Consider an amendment to the Code of Ordinances establishing new boundaries to the existing portion of Avenue A having a 45 MPH speed limit Consider approval of a one year contract with Eckerd Health Services for a prescription drug benefit 10. Consider approval of a sick leave option for retiring police employees in I accordance with the current contract agreement with the Beaumont Police Officers Association COMMENTS * Councilmembers comment on various matters * City Manager's Report * Public Comment (Persons are limited to 3 minutes) Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kyle Hayes at 880-3716 a day prior to the meeting. � 1 November 9, 1999 Consider casting votes for C. L. Sherman for election to the Jefferson County Appraisal District Board of Directors I ..U7L"- City o f Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Kyle Hayes, Executive Assistant to the City Manager MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 4, 1999 REQUESTED ACTION: Consider casting the City of Beaumont's 413 votes for C.L. Sherman for election to the Jefferson County Appraisal District Board of Directors. RECOMMENDATION Mayor David Moore requested that this item be placed on the agenda for consideration. The Administration recommends approval of the casting of votes for Mr. Sherman. BACKGROUND The terms of the current Board members expire on December 31, 1999. All governmental entities within Jefferson County have an opportunity to cast their allotted votes for individuals who were nominated to the Board of Directors. Entities wishing to do so must cast votes in the form of a resolution and file the resolution with the Jefferson County Appraisal District prior to November 15. BUDGETARY IMPACT None. PREVIOUS ACTION C.L. Sherman currently serves on the Board of Directors. He was nominated by the City Council to the Board in 1997 and was elected to a two-year term which began January 1, 1998. On October 12, 1999, the City Council nominated Mr. Sherman to another two-year term which would be effective January 1, 2000. SUBSEQUENT ACTION The adopted resolution will be filed with the Jefferson County Appraisal District prior to November 15, 1999. RECOMMENDED BY Mayor, City Manager and Executive Assistant to the City Manager RECOMMENDED MOTION Approve/Deny the casting of the City of Beaumont's 413 votes for C.L. Sherman for election to the Jefferson County Appraisal District Board of Directors. Jefferson County Appraisal District (409)840-9944 P.O. Box 21337 4610 S. Fourth St. (409) 727-4611 Beaumont,Texas 77720-1337 Beaumont,Texas 77705 Fax(409)727-5621 CHIEF APPRAISER MEMBERS OF THE BOARD Roland R. Bieber, RPA October 18, 1999 Miriam K. Johnson,Chairperson Charles Lankford,Secretary Eugene Landry Fred L.Mitchell C.L.Sherman Mr. David W. Moore t `' Mayor City of Beaumont P O Box 3827 Beaumont TX 77704 Dear Mayor Moore: In accordance with Section 6.03(f) of the Property Tax Code, I have enclosed a copy of the ballot of the nominees for the Jefferson County Appraisal District Board of Directors for the 2000 - 2001 term of office. All five positions on the Board of Directors are up for re-election. You may cast all of your votes for one nominee or distribute them as you wish among the nominees. Each taxing unit entitled to vote must cast its votes in the form of a resolution adopted by its governing body and submit it to me before November 15, 1999. If you require additional time to schedule a meeting of your governing body in order to cast your votes, please contact me in order that an extension may be granted. Please refer to the enclosed voting allocation to determine the number of votes your entity is entitled to in this election. The nominee receiving the majority of the votes of the conservation and reclamation districts will receive all of the votes cast by these districts. Sincerely, Roland R. ieber, RPA Chief Appraiser PJb E Enclosures - 2 CITY L-,u,e.v;N'� EXECUTIVE OFFICE Q: Mr. Stephen J. Bonczek, City Manager ELECTION BALLOT Jefferson County Appraisal District Board of Directors, 2000 - 2001 Term of Office The following individuals have been nominated: Miriam Johnson Eugene Landry Charles Lankford Fred L. Mitchell Lane Plauche C. L. Sherman David W. Smith JEFFERSON COUNTY APPRAISAL DISTRICT Voting Allocation for 2000 — 2001 Board of Directors Based on 1998 Tax Levies % of Total 1998 Tax Lev Tax Lever # of Votes Drainage District #6 $9,323,143.56 3.31% 166 Drainage District #7 $8,632,212.08 3.07% 153 Port of Beaumont $4,531 ,446.99 1.61% 81 Port of Port Arthur $3,750,600.66 1.33% 67 Port of Sabine Pass $284,365.78 0.10% 5 Bevil Oaks MUD $130,507.04 0.05% 2 Trinity Bay Conservation Dist $32,516.74 0.01% 1 WCID #10 $517,749.60 0.18% 9 SUBTOTAL C & R DISTRICTS: $27,202,542.45 9.67% , 483 Jefferson County $42,080,004.04 14.96% 748 Beaumont ISD $87,926,945.25 31.25% 1563 Hamshire—Fannett ISD $4,314,298.53 1.53% 77 Nederland ISD $12,393,719.21 4.40% 220 Port Arthur ISD $32,420,709.46 11.52% 576 Port Neches—Groves ISD $27,302,041.53 9.70% 485 Sabine Pass ISD $7,465,548.69 2.65% 133 *City of Beaumont $23,252,357.94 8.26% 413 City of Groves $2,847,429.76 1.01% 51 City of Nederland $3,282,863.11 1.17% 58 City of Port Arthur $7,232,229.05 2.57% 129 City of Port Neches $3,637,932.78 1.29% 65 SUBTOTALS: $254,156,079.35 90.33% 4517 TOTALS: $281 ,358,621.80 100.00% 5000 c A l 23 r4d\d a t alb o d vo t o s m k3 2 November 9, 1999 Consider approval of contracts between the City of Beaumont and Statewide Consolidated Community Development Corporation, Inc. City of Beaumont Council Agenda Item � c TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION Council approval of contracts between the City of Beaumont and the Statewide Consolidated Community Development Corporation, Inc. in the following amounts: $ 78,000.00 - To provide home buyers' counseling to eligible families who will purchase new and existing homes in neighborhoods targeted for revitalization ($60,000). Funds ($18,000) will also be used to pay annual audit fees. $125,400.00 - To provide funds to acquire and rehabilitate or reconstruct up to four (4) houses in the Pear Orchard, North End and South Park Neighborhoods. These homes may be leased to low income families who participate in the Section 8 Program through the Housing Authority Family Self Sufficiency Program. Every effort will be made to sell these homes within a three (3) to five (5) year period through a lease purchase program. $126,000.00 - To provide home buyers' assistance for up to ten (10) existing homes in neighborhoods targeted for revitalization. $176,386.00 - To acquire and rehabilitate or reconstruct four (4) to six (6) houses in the Pear Orchard, North End and South Park Neighborhoods. These homes may be leased to Section 8 tenants of the Housing Authority who participate in the Family Self Sufficiency Program. Every effort will be made to sell these homes within a three (3) to five (5) year period through a lease purchase program. $200,000.00 - To acquire and rehabilitate or reconstruct up to seven (7) homes in the Avenues Neighborhood. These homes may be leased to families who participate in the Section 8 Program and participate in the Family Self Sufficiency Program. Every effort will be made to sell these homes within a three (3) to five (5) year period through a lease purchase program. $384,600.00 - To provide home buyers' assistance for eleven (11) new homes to be constructed in the Avenues, Pear Orchard, South Park, and North End Neighborhoods ($301,000) and administrative/operating costs ($83,600) for the CHDO. RECOMMENDATION Administration recommends that Council authorize the City Manager to execute contracts with the Statewide Consolidated Community Development Corporation, Inc. (SCCDC) using Reprogrammed 1997 and 1998 CDBG funds, 1994 and 1996 HOME funds and 1999 HOME Program Funds. BACKGROUND On October 26, 1999, the Economic Development Department reviewed proposals relating to the FY 2000 Housing Programs with the City Council. The Administration and the SCCDC are prepared to move forward with these contracts. BUDGETARY IMPACT These funds can be reprogrammed from the 1997 and 1998 CDBG Programs, 1994 and 1996 HOME funds, and the 1999 HOME Program. PREVIOUS ACTION Council has previously approved contracts for home buyers' assistance, down payment and closing costs for new and existing homes, acquisition and rehabilitation for lease or sale to low to moderate income families in neighborhoods targeted for revitalization. Council has previously approved administration and operating costs for the CHDO. SUBSEQUENT ACTION None RECOMMENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director, Planning Manager, Housing Coordinator and Grants Administrator. RECOMMENDED MOTION Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of$78,000 for home buyers' counseling in targeted neighborhoods. Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of$125,400 to acquire, rehabilitate or reconstruct four (4) houses in targeted neighborhoods. Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of$126,000 to provide home buyers' assistance for up to ten (10) homes in targeted neighborhoods. Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of$176,386 to acquire, rehabilitate, or reconstruct four(4) to six (6) houses in targeted neighborhoods. Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of$200,000 to acquire, rehabilitate or reconstruct up to seven (7) homes in the Avenues Neighborhood. Approve/Deny authorization of the City Manager to execute the contract with the Statewide Consolidated Community Development Corporation, Inc. in the amount of $384,600 for home buyers' assistance for up to eleven (11) new homes in targeted neighborhoods and CHDO administration/operating costs. CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a Community Development Block Grant (CDBG)from the United States Department of Housing and Urban Development (CDBG No. B-97- MC-48-0003) and CDBG No. B-98-MC-48-0003); WHEREAS,pursuant to the authority of Resolution No. , passed by the Beaumont City Council on November 9, 1999, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC), an authorized Community Housing Development Organization (CHDO), will enter into a contract with the City for CDBG funds totaling SEVENTY-EIGHT THOUSAND DOLLARS AND NO/100 ($78,000.00); WHEREAS, the SCCDC provides various services to low-income and moderate-income families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; WHEREAS, the City of Beaumont and the SCCDC desire to enter into a contract and agreement whereby the City of Beaumont will furnish said federal CDBG grant funds to the SCCDC for the purpose of providing home buyers' counseling to eligible families who will purchase new and existing homes in neighborhoods targeted for revitalization. Funds are also provided to pay the audit fee for the 1999 audit. 1 NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized Chairman, do hereby covenant and agree as follows: 1. Grantee, located at 1090 South Fourth Street, shall use the Federal 1997 and 1998 CDBG grant funds, herein provided, to provide home buyers' counseling to eligible families who will purchase new and existing homes in neighborhoods targeted for revitalization. Funds will also be used to pay the audit fee for the 1999 audit. Grantee covenants and agrees to expend federal grant funds in accordance with 24-CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for rereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low income persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2 • 2. It is understood and agreed that in no event shall the total distribution of federal grant funds, made to or in behalf of the Grantee pursuant to this agreement, exceed the total sum of SEVENTY- EIGHT THOUSAND AND N01100 DOLLARS ($78,000); 3. Funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 2000. Payment shall be made by the U. S. Treasury, who will disburse 1997 and 1998 CDBG funds (wire transfer)through Cash Management Information System (CM/1) directly to the City, who will make payments upon receipt of invoices from Grantee certifying that all requirements have been met. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee understands and agrees that should Grantee become defunct or insolvent any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds shall transfer to the City of Beaumont. 3 5. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal grant funds under the United States Department of Housing and Urban Development (CDBG Program No. B-97-MC-48-0003) and (B-98MC48-0003) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said CDBG Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said CDBG Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this agreement. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this contract. 4 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. Grantee hereby covenants and agrees, in consideration for the funds herein to provide home buyers' counseling to eligible families who will purchase new and existing homes in neighborhoods targeted for revitalization in the City of Beaumont, Jefferson County, Texas. 10. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 5 11. No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no CDBG funds shall be used, either directly or indirectly, for religious purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the CDBG Program under which these funds are granted. 13. The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 6 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the City and its officers agents, servants and employees, from and against any and all claims or suits for property loss or damage and/or P ersonal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non- performance of this contract and agreement and/or the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont Jefferson County, Texas, this— day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Stephen J. Bonczek City Manager Barbara Liming City Clerk THE STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By. Chairman nes Leon Jake Campbell Secretary-Treasurer 7 "EXHIBIT A" PROGRAM BUDGET Home buyers' counseling to eligible families who will purchase new and existing homes in neighborhoods targeted for revitalization. $ 60,000 Annual audit fees. 18,000 TOTAL PROGRAM BUDGET $78,000 PROJECT SCHEDULE 1. Audit Engagement Letter is completed by January 31, 2000. 2. 1999 Audit is completed by May 31, 2000. 8 CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-99- MC-48-0201 ); WHEREAS, pursuant to the authority of Resolution Number passed by the Beaumont City Council on November 9, 1999, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC) an approved Community Housing Development Organization (CHDO) will enter into a contract with the City for HOME funds totaling ONE HUNDRED TWENTY-FIVE THOUSAND FOUR HUNDRED DOLLARS AND NO/100 DOLLARS ($125,400); WHEREAS, the HOME allocation of ONE HUNDRED TWENTY-FIVE THOUSAND FOUR HUNDRED AND NO/100 ($125,400) will be used to acquire and rehabilitate or reconstruct up to four (4) houses in the Pear Orchard, North End and South Park Neighborhoods. To provide decent, safe and sanitary housing for eligible families. WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. provides various services to eligible families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; 1 WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. will secure the financial match requirements for the M-99-MC-48-0201 HOME grant. The financial funding match requirement totals Fifteen Thousand Six Hundred and Seventy-Five Dollars and no/100 ($15,675.00). NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized Chairman, do hereby covenant and agree as follows: 1 . Grantee, located at 1090 South Fourth Street, shall use the Federal 1999 HOME grant funds, herein provided, to provide down payment and closing cost assistance to eligible families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to eligible families. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this agreement exceed the total sum of ONE HUNDRED TWENTY-FIVE THOUSAND FOUR HUNDRED AND NO/100 DOLLARS ($125,400). 3. The City agrees to provide Grantee with ONE HUNDRED TWENTY-FIVE THOUSAND FOUR HUNDRED AND NO/100 DOLLARS ($125,400) of 1999 HOME Grant funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 2000. Payment shall be made by the U.S. Treasury, who will disburse 1999 HOME funds (wire transfer) through Cash Management Information System (CM/1) directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee certifying that all requirements have been met. Grantee understands and agrees that project activities (construction) must be committed (an acceptable Project Set-up Report is entered into the CM/1) by December 31, 2000. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. It is expressly understood and agreed by and between the City and Grantee that any and all program income will be used by Grantee to build capacity, i.e., administrative costs, operational expenses, and/or any 3 eligible activities. Grantee further agrees that any grant funds remaining after this Agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent. 5. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal grant HOME funds under the United States Department of Housing and Urban Development (HOME Program No. M-99-MC-48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants 4 and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SCCDC will provide an acceptable audit engagement letter for the 1999 audit report to the City of Beaumont by January 31, 2000. The completed 1999 audit report will be provided to the City by May 31, 2000. The audit fee will be paid directly to the auditor from other City funds. Failure to complete the audit report by May 31, 2000 may result in contract termination. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this Contract. 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those 5 people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to eligible families of the City of Beaumont, Jefferson County, Texas by constructing new homes in the Charlton- Pollard Neighborhood for sale. It is understood that Grantee adheres to HOME affordability requirements. i 10. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee 6 agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 13. . The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 7 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. I 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Stephen J. Bonczek Barbara Liming City Manager City Clerk THE STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Robert Jones Leon Jake Campbell Chairman Secretary-Treasurer 9 "EXHIB IT A " PROGRAM BUDGET Acquisition, rehabilitation or reconstruction of four (4) houses in the Pear Orchard, North End and South Park Neighborhoods. $125,400 TOTAL $125.400 PROJECT SCHEDULE 1 . Acquisition, rehabilitation or reconstruction of first home by January 31, 2000. 2. Acquisition, rehabilitation or reconstruction of second home by March 31, 2000. 3. Acquisition, rehabilitation or reconstruction of third home by July 31, 2000. CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-99-MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on November 9, 1999, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC) will enter into a contract with the City for HOME funds totaling ONE HUNDRED TWENTY-SIX THOUSAND AND N01100 DOLLARS ($126,000); WHEREAS, the HOME allocation of ONE HUNDRED TWENTY-SIX THOUSAND DOLLARS ($126,000) will be used to provide home buyers' assistance for up to ten (10) existing . homes in neighborhoods targeted for revitalization. WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. provides various services to eligible families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; SAS, the Statewide Consolidated Community Development Corporation, Inc. will secure the financial match requirements for the M-99-MC-48-0201 HOME grant. The financial funding match requirement totals Fifteen Thousand Seven Hundred Fifty Dollars and no/100 ($15,750); NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized Chairman, do hereby covenant and agree as follows: 1 IN WI'T'NESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 9. THE CITY OF BEAUMONT-o O X41+, ATTEST: By: R t A. Riley �it Barbara Liming City Manager kkk%tom . �: Deputy City Clerk THE SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Albert J. M&, Sr. Antoinette Hardy President Director EXHIBIT "A" 1. Mortgage principal buy down, down payments, closing costs, and eligible project costs to construct up to eleven (11) new homes in low income neighborhoods including development fees. $247,500 2. Projected related soft costs 15,000 TOTAL PROGRAM BUDGET $262,500 PROJECT SCHEDULE 1. Construction of up to eleven (11) new homes will begin on/or before May 31, 1999. 2. Construction will be completed by October 31, 1999. 3. Homes closed and occupied on/or before November 30, 1999. 8 EXHIBIT "B" CITY OF BEAUMONT NEW CONSTRUCTION - LOW INCOME NEIGHBORHOODS Design Criteria Floor plans designed for new construction in low income neighborhoods shall comply with a simple design criteria and minimum specifications: * Floor plan width shall range from thirty (30) to forty (40) feet and shall be no more than fifty (50) feet in length. * Floor plan layouts shall range from three(3) bedrooms and two (2) baths with 1200 sq. ft. living area to four bedrooms and two (2) baths with 1400 sq. ft. of living area. * Average length of driveway shall be thirty-five(35) LF in length X ten (10) LF in width. * Walkway length may vary from (4) feet in width and three and one- half(3 %") inches in thickness. Please refer to attachments for other design criteria. If we can be of further assistance please feel free to contact Irven Chavis at the City of Beaumont- Community Development Division at(409) 880-3763. SECTION I - SITE WORK 1. CLEARING: - Remove all trees,bushes, and vegetation in the area of construction within 10'- 0" outside the building periphery. Remove all roots and debris from this area and fill with select fill material. Remove all grass, paving, etc. 2. EARTHWORK AND FILL: Shape and grade site to provide positive surface drainage from rear property line to front curb. The building area shall be stripped of ALL vegetation, concrete and any underlying poor quality fill. Any roots larger than one-half inch in diameter shall be grubbed, and all soft areas in the subgrade shall be excavated to firm soil. Fill shall be 60/40 clay and sand fill, 6"to 8" and compacted to 95% standard proctor density. 3. TERMITE TREATMENT: Prior to placement of 6 mil polyethylene vapor barrier,soil area under the building shall receive termite treatment by a licensed professional pest control operator using termiticides which bear a federal registration number of the U.S. Environmental Protection Agency. Termiticides used may be Chloropyrifos ("Dursban TC") or Permathrin ("Dragnet", "Torpedo") or approved equal. Pest control applicator of the above shall furnish to the owner a Certificate of Warranty for each building,certifying that the applied soil termiticide treatment will prevent infestation of subterranean termites for a period of(5) five years. 4. LANDSCAPING ALLOWANCE: The entire lot shall be sprigged with St. Augustine grass and watered. Landscaping shall also include shrubbery. SECTION I-A - FOUNDATION 1. All concrete shall test 2500 p.s.i. at 28 days. Waterproofing shall be of 6 mil. polyethylene with a minimum of a 12" lap. Fill shall be of a quality grade 60/40 clay sand mix minimum 8" in depth or as required and to be compacted to a 95% standard proctor density. 2. Muumum re-bar size shall be 5/8" re-bar, 5-re-bar per exterior beam, 4- re-bar per interior beam. . All re-bar must be bent to make corner bends on both exterior and interior beams. No hot bends will be permitted. Grade beam re-bar shall be supported by a minimum 6" x 6", #6 ga. cut mesh stirrup no less than 36" on center. Minimum beam depth interior and exterior shall be no less than 20" with a minimum of 8"into undisturbed soil. Slab height is to be established as 12" above natural ground level. Beam width shall be 12" at the bottom of the beam sloping to•15" at top. When it is necessary to have deeper or wider grade beams than the minimum, additional reinforcement shall be installed as required. Minimum slab thickness shall be 3 - '/z", reinforced with 6 x 6, 96 x 96 welded wire mesh(mats only). Wire mesh must be lifted into middle of slab during pouring. When slab preparation is complete, an 1 -- _ inspection must be made, and work approved, by a duly authorized representative of the City of Beaumont,prior to placement of concrete. '/2" x 6" anchor bolts shall be placed along the perimeter of the building a maximum of 5' on center. SECTION H - MASONRY 1. MASONRY WORK: Exterior face brick shall be selected from range of"King Size" clay fired brick units using an allowance of$235/M, Brick shall be installed by experienced tradesmen using Type S mortar. All units shall be set level and plumb with full bed and head joints. Joints shall be tooled concave. Care shall be taken to assure that head joint weeps are placed at maximum 24". Upon completion and curing of brickwork, it shall be thoroughly cleaned of dirt and loose mortar using a stiff brush with detergent and water. After brick work has thoroughly dried, it shall be given a coat of PRIM-A PELL 200 water repellant in accordance with manufacture's instructions. Care shall be taken to prevent mortar droppings from entering and blocking or bridging the cavity between the back of masonry and sheathing. Continuous plastic flashing(damp course), equal to "Nervestral HD", shall be installed at the brick ledge. Extend plastic flashing up behind exterior sheathing a minimum of 5". 2. MASONRY STYLE: Contractor shall provide three separate styles of"King Size" brick along with exterior trim color scheme for each separate style. Styles shall be organized on the building site where no two adjacent residences will have the same style brick or color scheme. SECTION III - WOOD FRAMING: 1. MATERIAL GRADES: Minimum grade for exterior wall and partition framing shall be stud grade or better. Size shall be 2" x 4", spacing shall be 16" on center. All toe plates shall be factory pressure treated. 2. CEILING FRAMING: Minimum grade not less than #3, minimum size 2" x 6", maximum spacing shall be 20" on center with 2" x 6" strong backs set at the middle of spans over 12'. 3. ROOF FRAMING: Grade not less than#3, minimum size 2" x 6", maximum spacing 20" on center,bracing shall be 2" x 4"-40" on center,2"x 4" collar ties and pearling. All ridges and hips shall be minimum 2" x 8". 4. ROOFS: Decking shall be V2" x 4' x 8' C.D. plywood with h clips. Roofing shall consist of minimum 215#/SQ Class"A",fungus resistant, fiberglass composition shingles with 3 tab shingle seal tabs installed over 15# building felt underlayment. Shingles shall be installed with a maximum 5" exposure and matching hip and ridge units, with a minimum of six(6)fasteners per shingle. Granule color shall be as selected by the owner from the full line available from the manufacturer. Contractor shall provide to the owner the manufacture's written 20 year warranty. 2 Metal flashing(where required)shall be galvanized steel and where exposed shall be painted to match adjacent surfaces. Edge strip shall be 26 ga. galvanized. 5. FRAMING ANCHORS: Placement of corner bracing and all framing anchors shall comply with State Board of Insurance windstorm specifications. SECTION IV - DRYWALL 1. DRYWALL: Interior finish of all exterior walls, and all interior partitions shall be sheathed with V2" inch thick gypsum wall board applied vertically,and with all joints taped and floated smooth. Wall board shall be attached to studs with galvanized 13/8" long nails at a maximum spacing of 8" inches o.c. Ceding shall be sheathed with V2"thick gypsum board panels nailed at maximum 7" inches o.c. Exposed gypsum board corners shall be reinforced with#118 continuous corner bead. All exposed gypsum board will be textured with a medium:splatter drag pattern and painted. SECTION V - DOORS 1. EXTERIOR DOORS: Exterior doors,and garage passage door, shall be 13/4"insulated metal doors. See floor plan for size. Wood frames shall have concealed metal reinforcement at latch/lock point. All exterior doors will be provided with a separate dead-bolt lock nn a standard lockset to be keyed alike. 2. INTERIOR DOORS: Shall be as scheduled and sized as noted on the floor plan. Each interior door shall be 13/8" flush panel hollow core with paint grade mahogany veneer faces. Each door will be hung in a wood frame with wood trim and one pair of butts and latch or lock hardware as scheduled. All wood doors and frames shall be primed and given two coats of enamel. 3. PATIO DOORS: Patio doors shall be 6'double insulated safety glazed glass. 4. GARAGE DOOR: Steel (painted) SECTION VI - WINDOWS 1. WINDOWS: All windows shall be insulated, single hung aluminum with positive locking hardware, adjustable balances, protective weatherstripping and positive sealing at meeting rail. Windows shall be equal to ALENCO 380, and shall be supplied with removable insect screens. Windows shall be sized as noted on the elevations. 3 _ SECTION VII - CABINETS 1. CABINETS: Cabinets shall be of stained grade birch plywood, kitchen tops shall be plastic laminate, bath tops of a plastic laminate, hardware allowance will be standard. All nail holes and joints in cabinets shall be puttied as to provide smooth exterior finish and stained in medium mahogany finish and sealed. Prefabricated cabinets are not acceptable. Kitchen tops shall be constructed of 3/4" plywood with formica roll back to upper cabinets. Tops shall cover base unit with a minimum of 2" overhang. Prefabricated kitchen tops are not acceptable. SECTION VIII - PLII BIN „ 1. PLUMBING: . All plumbing work shall conform, as a minimum to the City of Beaumont Plumbing Code and all piping, both supply, drainage and venting, shall be sized in accordance with the National Plumbing Code. Preference shall be given to the City ofBeaumont Code where different from the National Code. All supply piping shall be seamless copper tubing. Sanitary drains and venting may be schedule 40 PVC as permitted by the Plumbing Code. All supply piping running in exterior walls or attic shall be insulated with formed fiberglass insulation and vapor barrier jacket. Exterior hose bibs shall be freeze-proof. All fixtures and plumbing appliances shall be provided with stops on the supply at each fixture. City water service shall be supplied through a 5/8" meter furnished and installed by the City ofBeaumont. Contractor is responsible for extending service from meter to building. 2. FIXTURES: TYPE MANUFACTURER Water closet Gerber 21-202 Fiberglass tub Aqua Glass AG6081-T Lavatory Gerber 12-844 Kitchen sink Kingsford K23322-4 Water Heater 40 Gal. Rheem Electric Hose Bibb Woodford#25 Clean Out Schier 4" Faucets Delta or equal 3. WATER, SEWER-TAPS,BUILDING PERMITS: Contractor shall be responsible for obtaining all required permits and inspections. The fee for these permits shall be waived. 4 - SECTION IX - FLOORIN T 1. VINYL FLOORING: All flooring, throughout all dwellings, shall be FHA approved vinyl at an allowance cost of$1.05 per sq. ft. (installed). Contractor shall provide a minimum of three flooring designs, to be approved by the Owner. 2. CARPET: Wall to wall carpet shall be 100%nylon with minimum 2% face weight. Padding to have minimum thickness of%". Include metal thresholds wherever carpeting stops. All carpet and pads shall be FHA approved. Contractor shall provide a minimum of three flooring designs, to be approved by the Owner. SECTION X - ELECTRICAL 1. ELECTRICAL WORK: Electrical work and appliances, fixtures, panels, and devices installed in this work shall be in strict conformance with the National Electrical Code and the Electrical Code for the City of Beaumont. All fixtures, devices, panels, and appliances shall bear the Underwriters Label. All conductors shall be copper. The electrical contractor will coordinate with the Utility Company to provide temporary poles for construction and for the timely hook-up of power to the building; and arrange for same. All breakers in the electrical panel shall be labeled (typewritten). Electrical service shall consist of a minimum 150 amp single phase 115/230 volts, 3 wire overhead service to a weather head and meter can. Service entry will be connected to a minimum 12 circuit 1 phase with a 125 amp MLO and 100 amp feed from line. Where service meter is located on outside of structure, breaker panel shall back up to meter on inside of structure. 2. LIGHTING/TELEPHONE/CABLE JACKS: A minimum of three telephone outlets per dwelling shall be installed, one in the Family Room, one in the Master Bedroom and one in the Kitchen. Two television cable outlets shall be installed, one in the Family Room and one in the Master Bedroom of each dwelling. SECTION XI - KITCHEN EQUIPMENT I. APPLIANCES: Contractor furnished and installed appliances include the kitchen range/oven and range hood as noted on the drawings. Range/oven shall be a floor mounted slide in electric range/oven combination in standard color as selected. Vent from electric vent hood shall extend through the roof and terminate with a galvanized weather cap. 2. DRYER VENTS: Dryer vents shall be located in proximity of washer and dryer. See plans. 5 -` SECTION XII - FINISH CARPENTRY 1. MATERIALS: Softwood lumber shall comply with PSI-74 and applicable grading and inspecting agency for species and product indicated. Finger jointed glued up or solid stock may be used at contractor's option. Finish lumber shall be "B" and "Btr", Y.P., or "C" grade W.P. with a maximum 12% moisture content. Softwood plywood shall provide APA graded panels and complying with PSI/ANSI A199.1. Exterior plywood shall be exterior grade for all thicknesses. Cedar textured 1-11 plywood shall be a minimum 5/8" thick with grooves at 4" o.c. 2.- INSTALLATION: Install finish carpentry work plumb, level, true and straight, with no distortions. Shim as required using concealed shims. Scribe and cut finish carpentry items to fit adjoining work Anchor finish carpentry work securely to supports using concealed fasteners and blind nailing where possible. Install with minimum number of joints possible, using full length pieces from maximum length lumber available. Cope at returns, miter at corners to produce tight fitting joints. Use scarf joints for end to end joints. Base trim shall be 3" paint grade with 1/4" round sole. SECTION XIII - HVAC WORK 1. HVAC SYSTEM: The-system shall consist of a minimum 2 ton electrical powered cooling unit with a minimum 15K heat strip electrical heating system. The system shall be designed to provide,as a minimum,75°F cooling at 95°F ambient outside temperature, and-70°F heating at 15° F ambient outside temperature. Controls shall be by electronic thermostat located where noted on the drawings. All duct work shall be constructed of rigid fiberglass with aluminum vapor barrier. Joints will be stapled and taped with aluminum foil tape manufactured for this purpose. The use of"Flex-duct" will NOT be permitted. Ducts will be provided with dampers, turning vanes, and extractors as recommended by ASHRAE. Air handlers shall be installed with condensate which shall drain into the domestic waste system. All air handlers shall be closet models unless otherwise noted. All return air shall be through filtered grill with replaceable type filters. Outside section of cooling unit shall be placed on]eve(concrete slab with refrigerant lines placed so as to be protected from damage by mowing of lawn..Cooling unit shall have a minimum SEER of 9.0. Units, both heating and cooling, shall be manufactured by TRANE, ARCO AIR, RUUD, CARRIER, or LENNOX. HVAC subcontractor shall be licensed,or franchised by the manufacturers of the units, and shall install it in accordance with the manufacture's instructions. Manufacturer's warranty hall b f ty e or a minimum of five years on the compressor, and one year on all other arts of Y P the system. 6 — _ Any bath not placed on an outside wall,with no window ventilation, must have an exhaust fan, ducted through the roof. SECTION XIV - DRIVEWAYS AND WALKS 1. CONCRETE: All sidewalks shall be 4"thick,36"wide concrete reinforced with#10 WWM. All driveways shall be 4" thick concrete reinforced with #10 WWM with redwood expansion joint at property line. Provide#6 WWM reinforced from property line to street tie-in. Drive to be 10' wide. All drives shall-be extended 35'to the edge of street pavement. SECTION XV - INSULATION 1. ATTIC INSULATION: Furnish and install over entire attic area above conditioned space fiberglass or mineral wool insulation to provide a temperature resistance value of R-30 (total). Install continuous ridge vent 2'shorter than ridge length. Also install continuous soffit vent on rear, left and right elevations. 2. WALL INSULATION: Furnish and install in all exterior walls a minimum 3/4" thick polyisocyanurate insulating sheathing with aluminum foil facer on each-face. Seal any penetrations or holes. Furnish and install a minimum 3 '/" thick fiberglass or mineral wool batt insulation(R-1 1) with paper backing in all exterior wall stud space. 3. POLYSEAL: Polyseal all bottom plates,-exterior corners and tees, windows, exterior doors, and holes in top plates which penetrate through to attic. SECTION XVI - PAINTING 1. PAINTING: It is the-intent that all exposed wood, metal(except aluminum, stainless steel and factory coated panels) and gypsum board shall be protected with a paint or stain finish unless otherwise noted. Finishes shall be a minimum of 2 coats over primer of GLIDDENS, OLYMPIC,. PPG,MARTIN SENOUR,KUHNS, SHERWIN-WILLIAMS, or BENJAMIN MOOR, PAINTS or STAINS, appropriate for the surface and in color selected by the owner. Deliver paint materials in sealed original labeled containers, bearing manufacturer's name, type of paint, brand name, color designations and instructions for mixing and/or reducing. Painting may r=be accomplished unless moisture content of surface is 12% or less and air temperature is 40°F or above. 2. PAINT SCHEME: New interior plywood, wood doors, door trim, moldings, wood window frames, etc., shall be properly sanded,primed, lightly sanded and given two (2) coats of semi- gloss enamel with a light sanding between coats. Paint to be off-white in color. 7 = Gypsum board shall be textured with medium splatter drag and painted with two (2) coats of latex wall paint color off-white. Metal surfaces to be painted shall be prepared in accordance with the paint manufacturer's recommendations, primed and given a minimum of two (2) coats of exterior enamel. Exterior wood siding shall be primed and given two (2) coats exterior latex house paint(low luster). Contractor shall present three(3) color schemes. SECTION XVII - TOILET& BATH ACCESSORIES 1. INSTALLATION: Install in most convenient location in each bath chrome plated towel bars, paper holders, hooks, etc. Plate glass mirrors, full length of bath vanities shall be installed in all baths. SECTION XVITI - WARRANTIES AND GUARANTEES: 1. GUARANTEE: The general contractor, prior to final payment, shall provide his own written guarantee direct to the owner warranting all work included in his contract for a period of ONE(1) year after final completion and acceptance of his work. 2. WINDSTORM: Contractor shall bear the cost of windstorm insurance inspection service and provide owner with Windstorm Inspection Certificate. SECTION XV - ENERAL 1. GENERAL: Each item of material and equipment shall equal or exceed that described or indicated. All work shall be performed in a workmanlike manner, and in accordance with the best building standards. Contractor is held directly responsible for all work done by sub-contractors. 2. MISCELLANEOUS: All items not covered under notice to bidders or dwelling specifications but noted on plans shall be required. All construction should conform to accepted building practices for the area. a:dwespec.wpd/rev.10-09-97 8 - 3 November 9, 1999 Consider approval of a contract between the City of Beaumont and the Charlton- Pollard Neighborhood Association, Inc. A~, City of Beaumont Council Agenda Item � � c TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council approval of a contract'between the City of Beaumont and the Charlton-Pollard Neighborhood Association, Inc. in the amount of$145,000. RECOMMENDATION Administration recommends that Council authorize the City Manager to execute a contract with the Charlton-Pollard Neighborhood Association, Inc.(CPNA) in the amount of$145,000 using funds reprogrammed from the 1998 CDBG Program. BACKGROUND On October 26, 1999, the Economic Development Department reviewed proposals relating to the FY 2000 Housing Program with City Council. The Administration and the CPNA are prepared to move forward with a contract which will establish the CPNA as a Community Housing Development Organization (CHDO). Funds will be used to acquire and rehabilitate three houses ($120,000) for lease or sale to low to moderate income families. Funds would also be provided ($25,000) for administrative and operating costs. BUDGETARY IMPACT These funds were previously budgeted for Charlton-Pollard Economic Development - $100,000 and Street Improvements - $45,000. The funds for the Charlton-Pollard Economic Development can be replaced in the 2000 CDBG Program. This is a specific request from the CPNA. PREVIOUS ACTION The City has approved similar contracts with Southeast Texas Community Development Corporation and Statewide Consolidated Community Development Corporation. SUBSEQUENT ACTION None RECONEM ENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director, Planning Manager, Housing Coordinator, and Grants Administrator. RECOMMENDED MOTION Approve/Deny authorization of the City Manager to execute the contract with Charlton-Pollard Neighborhood Association, Inc. in the amount of$145,000 to acquire and rehabilitate three (3) houses and provide administrative/operating costs. CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a Community Development Block grant (CDBG) from the United States Department of Housing and Urban Development (CDBG Program No.B-98-MC-48-0003); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on November 9, 1999, the Charlton-Pollard Neighborhood Association, Inc. (CPNA) an authorized Community Housing Development Organization (CHDO) will enter into a contract with the City for CDBG funds totaling ONE HUNDRED FORTY-FIVE THOUSAND AND NO/100 ($145,000); WHEREAS the CDBG allocation of NE HUNDRED UNDRED FORTY-FIVE THOUSAND AND NO/100 ($120,000) will be used for the purpose of acquiring and rehabilitating three houses for lease or sale to low to moderate income families. Funds would also be provided ($25,000) for administrative and operating costs. CPNA will obtain surveys, appraisals and title policies on properties acquired. Properties are to be used to provide decent, safe and sanitary housing for low and moderate income families. City staff shall supply technical assistance necessary to administer acquisition, title work, surveys, appraisals and rehabilitation. 1 WHEREAS,the City of Beaumont and the CPNA desire to enter into a contract and agreement whereby the City of Beaumont will furnish said federal CDBG grant funds to the CPNA for the purpose of acquiring and rehabilitating properties in low income neighborhoods. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Charlton-Pollard Neighborhood Association, Inc., hereinafter referred to as "Grantee", acting by and through Eugene Sam, its duly authorized President, do hereby covenant and agree as follows: 1 . Grantee, located at 825 Jackson, shall use the Federal 1998 CDBG grant funds, herein provided, to acquire and rehabilitate three houses for lease or sale to low to moderate income families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this agreement exceed the total sum of $145,000. 3. Funds to be available through the City's draw process on or after the effective -date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 2000. Payment shall be made by the U.S. Treasury, who will disburse 1998 CDBG funds (wire transfer) through Cash Management Information System (CM/1) directly to the City, who will make payments upon receipt of invoices from Grantee certifying that all requirements- have been met. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent. 3 5. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal grant funds under the United States Department of Housing and Urban Development (CDBG Program No. B-98-MC-48-0003) and that all monies distributed to or in behalf of ,Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said CDBG Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this agreement. The CPNA will provide an acceptable audit engagement letter for the 1999 Audit Report to the City of Beaumont by January 31, 2000. The completed 1999 Audit Report will be provided to the City of Beaumont by May 31, 2000. The audit fee will be paid to the auditor directly from 4 other City funds. Failure to complete the audit report by May 31, 2000 may result in contract termination. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all ,reasonable times to the offices, premises and records of Grantee in regard to the administration of this contract. 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. 5 i 0 Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas. 10. No officer, employee or member of Grantee or Grantee's subcontractors shall .have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee, with the exception of the service fee on a per unit basis from grant for the administration of this contract. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no CDBG funds shall be used, either directly or indirectly, for religious purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of 6 Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the CDBG Program under which these funds are granted. 13. The provisions of this agreement are severable and if for any reason a clause, ,sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for 7 property loss or damage and/or personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non- performance of this contract and agreement and/or the operations, activities and services of the program described herein, whether or not caused, in whole or in part, ,by alleged negligence of officers, agents, servants, employees, contractors, or sub- contractors of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Stephen J. Bonczek Barbara Liming City Manager City Clerk THE CHARLTON-POLLARD NEIGHBORHOOD ASSOCIATION, INC. ATTEST: By: Eugene Sam Joe Williams President Vice-President 8 "EXHIBIT A" PROGRAM BUDGET I. Acquire and rehabilitate three (3) houses $120,000 2. Administrative and operating costs 25.000 TOTAL PROGRAM BUDGET $145,000 PROJECT SCHEDULE First house completed by March 31, 2000 Second house completed by June 30, 2000 Third house completed by September 30, 2000 9 4 November 9, 1999 Consider approval of an extension of the contract between the City of Beaumont and Southeast Texas Community Development Corporation City of Beaumont Council Agenda Item TO: City Council .FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council approval of an extension of the contract between City of Beaumont and Southeast Texas Community Development Corporation. RECOMMENDATION Administration recommends that Council grant an extension of the contract in the amount of $262,500 to commit all funds by June 30, 2000. BACKGROUND On September 22, 1998, the City entered into a contract with Southeast Texas Community Development Corporation (SETCDC) in the amount of$262,500, as referenced in Resolution No. 98-260, for the development of eleven (11) new homes in the City of Beaumont's low income neighborhoods to provide decent, safe and sanitary housing for low to moderate income families That contract has an expiration date of December 31, 1999. The SETCDC has identified home buyers and is prepared to begin construction on five of the eleven houses. BUDGETARY IMPACT These funds were previously budgeted from the 1998 HOME Program. There is no additional budgetary impact. PREVIOUS ACTION The City has approved similar contracts and extensions in previous years. The SETCDC has assisted first time home buyers with the purchase of twenty-nine (29) newly constructed homes in neighborhoods targeted for revitalization. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director, Planning Manager, Housing Coordinator and Grants Administrator. RECOMMENDED MOTION Approve/Deny extension of the contract with Southeast Texas Community Development Corporation in the amount of $262,500 until June 30, 2000 to develop eleven (11) new homes in targeted neighborhoods. SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. Enhancing the Community through Pmpk,Health,Education,Ecommnk Deudopm"t.Hoea:ing, Environment,Criminal justia.l& EmF'IOye"E1t .O.Box 1789 Beaumont,Texas 77704 (409)835-7527 October 20, 1999 A 25 2623�� Mr.Steve Bonczek T, PP, OCT :� U, C City Manager City of Beaumont c ei'el w" me�_ J " `' a �� P.O.Box 3827 Beaumont,Texas 77704 Dear Mr.Bonczek: This letter is in reference to Contract No. 10, in the amount of$262,500,as referenced in Resolution Number 98-260,dated September 22, 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,the Southeast Texas Community Development Corporation,Inc.would like to request an extension to commit all funds by June 30,2000. Please be apprised that SETCDC has purchased 7 of the 1 i lots for this contract. The remaining four(4)lots will be purchased within two(2)months. The construction on the 7 lots will commence within thirty(30)days. SETCDC is identifying interim construction funds to construct the 11 homes.for this contract. We respectfully request your approval. Your assistance and approval in this matter is greatly appreciated. Sincerely, Albert J.Price President cc: Richard Chappell Agreed and Accepted: Steve Bonczek,City Manager Date SOUTHEAST TEXAS COMMUNny DEvEWPMENT CORPORATION,INC.is an indepenelmt,mmPardna,wx-exemPt,non-Profit corparatio BEAUMONT PORT ARTHUR ORANGE OTHER SOUTHEAST TEXAS COMMUNITIES Lip CONTRACT f qV THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-98-MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number 98-260 passed by the Beaumont City Council on September 22, 1998, the Southeast Texas Community Development Corporation, Inc. (SETCDC) an authorized Community Housing Development Organization (CHDO) will enter into a contract with the City for HOME funds totaling TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($262,500); WHEREAS, the HOME allocation of TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND N01100 ($262,500) will be used for the development of up to eleven (11) new homes in the City of Beaumont's low income neighborhoods. New construction will provide decent, safe and sanitary housing for low and moderate income families. Funds may be used for home buyer's assistance to include, but not limited to down payment, mortgage principal buy down, closing costs, pre-development or any eligible expenses. SETCDC will be allowed a developer's fee of FOUR THOUSAND DOLLARS ($4,000.00) per house to cover the cost of acting as developer, general contractor, finance counselor, and general support for site development, construction and sale of homes, which includes qualifying home-buyers; WHEREAS, the SETCDC provides various services to low income and moderate income families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; WHEREAS, the SETCDC will secure the financial match requirements for the M-98- MC-48-0201 HOME grant. The financial funding match requirement totals $32,813.00; I 1 NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenants, promises, and agreements contained herein, the City of Beaumont, hereinafter referred to as "City", acting by and through Ray A. Riley, its duly authorized City Manager, and the Southeast Texas Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Albert J. Price, Sr., its duly authorized President, do hereby covenant and agree as follows: 1. Grantee, located at 1190 Grand Street, shall use the Federal 1998 HOME grant funds, herein provided, to construct single-family housing units for sale to low to moderate income families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or on behalf of the Grantee pursuant to this agreement exceed the total sum of TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND NO 1100 DOLLARS ($262,500). 3. The City agrees to provide Grantee with TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND NO 1100 DOLLARS ($262,500) of 1998 HOME grant funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 1999. Payment shall be made by the U. S. Treasury, who will disburse 1998 HOME funds (wire transfer) through Cash Management Information System (CM/0 directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee certifying that all requirements have been 2 met. Grantee understands and agrees that project activities (construction) must be committed (an acceptable Project Set-up Report is entered into the CM/I) by December 31, 1999. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. It is expressly understood and agreed by and between the City and Grantee that funds will be used for (a) cost related to the development and construction of up to eleven (11) new houses in the City of Beaumont's low income neighborhoods and (b) for home buyer's assistance to include but not limited to mortgage principal buy down, closing costs, pre-paid or other eligible expenses. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City. 4. If construction cannot be commenced by its start date as set out in "Exhibit A": SETCDC shall notify the City in writing at least 30 days prior to the commencement date of the specific nature of the events that prevent the commencement of construction. The City shall either approve a new commencement date or deny the request for extension. The decision of the City's representative shall be final. If a new start date is not approved funds allocable to the structure will be removed from the contract and SETCDC will be required to deed to the City any real property provided. Homes to be constructed under this contact will meet or exceed the design criteria and specifications as set out in "Exhibit B". Variations from "Exhibit B" should be approved in writing by the City's representative. Quality and affordability shall be the criteria used to determine whether a requested variance will be approved. 5. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City. Grantee further understands and agrees to and shall transfer to the City any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent, or this contract is terminated. 3 6. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal HOME grant funds under the United States Department of Housing and Urban Development (HOME Program No. M-98- MC-48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 7. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SETCDC will provide an acceptable audit engagement letter to the City by January 31, 1999. The completed 1998 audit report will be provided to the City by April 30, 1999. The audit fee will be paid directly to the auditor from other City funds. Failure to complete the audit report by April 30, 1999 may result in contract termination. 8. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this _. Contract. 9. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely 4 responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 10. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas by constructing new homes in the City of Beaumont's low income neighborhoods for sale. It is understood that Grantee adheres to HOME affordability requirements. 11. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee, with the exception of the development fee on a per unit basis for the completion of this contract. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City. 12. No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City. 13. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, 5 including all ordinances, and rules and regulations of the City, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 14. The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 15. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 16. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or - written agreement which purports to vary from the terms hereof shall be void. 17. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and/or personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and/or the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. 6 5 November 9, 1999 Consider approval of a five year contract with Andy Hebert for the operation of the Henry Homberg Golf Course with an option to renew for an additional five years ! ...... City of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Luke Jackson, Director, Parks&Recreation Department MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council to authorize the City Manager to execute a service contract with Andy Hebert for the operation of the Henry Homberg Golf Course for five years with an option to renew for an additional five years. RECOMMENDATION The administration recommends the awarding of a contract for five years with an option to renew for an additional five years, effective January 1, 2000. BACKGROUND Existing contract was awarded in 1995 for five years, expiring December 31, 1999. Andy Hebert, who is the golf pro at this golf course, is wanting to continue to operate this facility and is willing to make improvements. He will provide complete reconstruction of the greens with tiff dwarf grass putting surface built to U.S.G.A. specifications and the tee boxes will be reduced in height and every hole would have two separate tee boxes. Improvements of this nature will require that nine holes of the golf course would be out of service for approximately four to five months or until improvements are completed. These improvements are estimated to cost $600,000 paid for by Andy Hebert of the Henry Homberg Golf Course. When the improvements are complete, it is expected that the green fees will be raised from the current weekday fee of $8 and $9 on weekends, to $9 weekdays and $11 on weekends. The senior membership would increase from $200 tax included, to $250 plus tax. During the term of the existing contract Mr. Hebert has paid the City$2,500 per month plus 5% of the gross receipts collected in the operation of the Henry Homburg golf course subject to a minimum of$60,000. Council Agenda Item 0 Page 2 November 3, 1999 BUDGETARY IMPACT None PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager and Parks and Recreation Department Director RECOMMENDED MOTION Approve/Deny authorizing the award of a five year contract with an option to renew for an additional five years with Andy Hebert, Golf Pro, Henry Homburg Golf Course, in Tyrrell park, effective January 1, 2000. ! 6 November 9, 1999 Consider a resolution to provide for the reimbursement of costs incurred prior to issuance of revenue bonds or other tax exempt obligations to finance the expansion, repair, renovation and related improvements to'the water and sewer system • ...... City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Beverly Hodges, Finance Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council consider a resolution to provide for the reimbursement of costs incurred prior to issuance of revenue bonds or other tax exempt obligations. RECONUdENDATION The administration requests approval of a resolution concerning the issuance of revenue bonds or other tax exempt obligations to finance the expansion, improvement, repair, renovation and related improvements to the waterworks and sewer system and provide for the reimbursement of costs incurred prior to issuance. BACKGROUND $20,000,000 in Revenue Bonds or other tax exempt obligations is expected to be issued during fiscal year 2000 to fund various improvements related to the waterworks and sewer system. It is necessary to incur some of the costs associated with these projects prior to the issuance of the bonds. It is the intent of the City to reimburse itself out of the proceeds of the bonds for all such costs which are paid prior to issuance. These costs shall include fees paid for engineering and other professional services, acquisition costs associated with obtaining materials and property and construction and development costs. BUDGETARY IMPACT All debt and other expenses shall be incurred by the Water Fund which is supported by water and sewer revenues as generated through user fees. PREVIOUS ACTION None. SUBSEQUENT ACTION 0 Subsequent Council action will be requested to approve the to issuance of$20,000,000 in Revenue Bonds or other tax exempt obligations. RECOMMENDED BY City Manager and Finance Officer RECOMMENDED MOTION Approve/Deny resolution concerning the issuance of revenue bonds or other tax exempt obligations to finance the expansion, improvement, repair, renovation and related improvements to the waterworks and sewer system and provide for the reimbursement of costs incurred prior W issuance. RESOLUTION CONCERNING ISSUANCE OF REVENUE BONDS OR OTHER TAX EXEMPT OBLIGATIONS TO FINANCE THE EXPANSION, IMPROVEMENT, REPAIR, RENOVATION AND RELATED IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM WHEREAS, the City of Beaumont, Texas (the "City") desires to expand, improve, renovate, repair and make related improvements to the City' s waterworks and sewer system (the "System" ) located within the City (the "Project") ; and WHEREAS, in order to finance and pay the costs of the Project, the City intends to issue revenue bonds or other tax- exempt obligations in the aggregate principal amount of up to -$20, 000, 000 (the "Obligations" ) , in one or more installments and series, and payable from net revenues of the System and any other -sources pledged to the payment thereof; and WHEREAS, in view of rising construction costs, the necessity of compliance with administrative regulations, the necessity of acquiring materials and other property for the Project and the necessity of employing certain professionals in connection with the development of the Project, it is considered essential and necessary for the City to employ and pay certain professionals, acquire materials and other property for the Project and begin construction of and work on the Project prior to the completion of the issuance of the Obligations; and WHEREAS, it is the City' s intention to reimburse itself out of the proceeds of the Obligations for all expenses and costs paid by the City prior to the issuance of the Obligations that are incurred and paid in connection with the development of the Project, including but not limited to expenses and fees paid for engineering and other professional services, acquisition costs associated with obtaining materials and property for the Project, and construction and development costs associated with the Project; and WHEREAS, the City finds, intends and declares that this resolution and order shall constitute its official binding commitment and official declaration of intent made pursuant to the Internal Revenue Code of 1986, as amended (the "Code") and the regulations pertaining thereto, including but not limited to Treasury Regulation Section 1 . 150-2, whereas, subject to the terms hereof, the City declares that it intends to reimburse itself out of the proceeds of the Obligations for the expenses and costs paid in connection with the development of the Project prior to the issuance of the Obligations, and the City declares its intent and commits to issue the Obligations, in one or more series, in the maximum aggregate principal amount of up to $20, 000, 000 for the purpose of financing the costs of acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing and improvement of the Project, and expenses and costs of the City in connection with the issuance of the Obligations; and WHEREAS, the City Council, on behalf of the City, finds, considers and declares that the issuance and sale of the Obligations in the amount and for the purposes set forth will be appropriate and consistent with the objectives of the City and the laws authorizing the issuance of the Obligations, and that the adoption of this resolution and order is and constitutes and is intended as (1) an inducement to proceed with providing for the acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing and improvement of the Project, and (2) the taking of affirmative official action by the City, acting by and through the City Council, toward the issuance of the Obligations and the reimbursement to the City out -of the proceeds of the Obligations for costs and expenses paid in connection with the Project prior to the issuance of the Obligations, all within the meaning of federal income tax laws and regulations with respect to issuance of tax-exempt obligations; and WHEREAS, the City has given notice of the meeting at which this Resolution is to be adopted as required by the Texas Open Meetings Law, Chapter 551 of the Texas Government Code Annotated Vernon' s 1994, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. Subject to the terms hereof, the City Council agrees on behalf of the City that it will: a. Issue the Obligations in one or more series, after the date hereof to provide for the financing of the Project, in the maximum aggregate principal amount up to $20, 000, 000, if the City Council determines that the terms of such financing are in the City' s best interest; b. Take such action and authorize the execution of such documents as may be necessary in connection with the issuance of the Obligations, providing, among other things, for payment of the principal of, interest on, paying agents ' charges and other fees, if any, on the Obligations, and the acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing, improvement, use and operation of the Project, all as shall be authorized, required or permitted by law and shall be satisfactory to the City; and C. Take or cause to be taken such other actions as may be required to' implement the aforesaid undertakings or as the City may deem appropriate in pursuance thereof. Section 2 . This resolution and order shall constitute the official declaration of intent by the City pursuant to which the City declares that it intends to reimburse itself out of the -2- proceeds of the Obligations for expenses and costs paid by the City prior to the issuance of the Obligations in connection with the development of the Project, including but not limited to expenses for engineering fees and other professional fees, and costs for acquisition of materials and property for the Project and construction and development costs related to the Project . This declaration is made pursuant to Treasury Regulation Section 1. 150-2 and generally with the laws and regulations of the federal income tax laws governing the issuance of tax-exempt obligations. Section 3 . This resolution and order and the declaration of official intent herein shall be available for public inspection -at all times at the City' s business office and shall remain available for public inspection until the Obligations are issued -and thereafter this resolution shall be maintained as part of the permanent records of the City Council of the City. PASSED AND APPROVED this day of , 1999 . THE CITY OF BEAUMONT, TEXAS By: Mayor ATTEST: CITY CLERK THE CITY OF BEAUMONT, TEXAS (SEAL) -3- 7 November 9, 1999 Consider a resolution requesting a change to the City of Beaumont Investment Policy City of Beaumont •r• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Beverly Hodges, Finance Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council consider a resolution requesting a change in the City's Investment Policy. RECOMMENDATION The administration requests approval of the City of Beaumont Investment Policy as amended. BACKGROUND State law mandates the City Council review and approve any modifications to the policy on an annual basis. Most of the changes to the Public Funds Investment Act that became effective September 1, 1999 did not directly affect the City of Beaumont. The only law change which applied to the City's policy related to clarification of training requirements for investment officials. The only other change to the current policy is the addition of the City Manager as an investment official. BUDGETARY IMPACT None. PREVIOUS ACTION The City's current policy was adopted on September 26, 1995 with amendments on October 29, 1996, October 28, 1997 and November 3, 1998. SUBSEQUENT ACTION None. . RECOMMENDED BY City Manager and Finance Officer RECOMMENDED MOTION Approve/Deny resolution amending the City's Investment Policy. • City of Beaumont, Texas ...................................................................................................................... Investment Policy ...................................................................................................................... Adopted by Resolution of City Council on September 26, 1995 Amended October 29, 1996 October 28, 1997 November 3, 1998 1999 • City of Beaumont - Investment Policy • Table of Contents I. Introduction..........................................................................................................1 H. Scope.....................................................................................................................1 III. Prudence...............................................................................................................1 IV. Objectives.............................................................................................................I A. Safety of Principal.................................................................................... 2 B. Liquidity................................................................................................... 2 C. Yield..........................................................................................................2 V. Delegation of Authority....................................................................................... 2 VI. Ethics and Conflicts of Interest........................................................................... 3 VII. Training................................................................................................................3 VIII. Selection of Financial Dealers, Institutions and Investment Pools.....................3 A. Broker/Dealers..........................................................................................4 B. Public Depositories................................................................................... 4 C. Investment Pools.......................................................................................5 IX. Authorized and Suitable Investments..................................................................5 X. Marking to Market...............................................................................................6 XI. Collateralization....................................................................................................6 XII. Safekeeping and Custody.....................................................................................7 XIII. Diversification.......................................................................................................7 XIV. Investment Strategies...........................................................................................8 • A. Pooled Fund Groups.................................................................................8 i Table of Contents B. Debt Service Funds...................................................................................8 • C. Debt Service Reserve Funds.....................................................................8 XV. Internal Control....................................................................................................9 XVI. Performance Standards........................................................................................9 XVII. Reporting..............................................................................................................9 XVM.Investment Policy Adoption.................................................................................9 Glossary..........................................................................................................................10 Exhibits Exhibit A-Authorized Investment Officials................................................................Al Exhibit B - Statement of Ethics and Conflicts of Interest............................................BI Exhibit C- Approved List Broker/Dealers, Financial Institutions and Inv. Pools.....C1 Exhibit D - Certification By Business Organization....................................................D1 ii • City of Beaumont • Investment Policy I. Introduction It is the policy of the City of Beaumont to invest public funds in a manner which will ensure that the investments are duly authorized, properly managed, adequately protected and fully collateralized. The City shall seek the highest investment return with the maximum security while meeting daily cash needs and conforming to the City Charter, the Public Funds Investment Act (Chapter 2256, Government Code as amended) and all other state and local statutes governing the investment of public funds. II. Scope This investment policy applies to all financial assets of the City as accounted for in the City's Comprehensive Annual Financial Report. These include General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Fiduciary Funds. All are pooled for investment purposes except debt service and debt service reserve funds. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care, under prevailing circumstances,that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The "prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent with this investment policy. (Section 2256.006, Government Code) Investment officials acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of responsibility for an individual security's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the City's investment activities shall be preservation and safety of principal, liquidity and yield. (Section 2256.006, Government Code) • 1 City of Beaumont - Investment Policy A. Safety of principal • The City of Beaumont has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seek to ensure the preservation of capital in the overall portfolio. To attain this objective diversification is required in order to eliminate an over-concentration of assets in one institution, maturity or type of securities. B. Liquidity The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with forecasted cash flow requirements and limited by investments in securities with an active secondary market. C. Yield The City's investment portfolio shall be designed with the objective of attaining a rate of return which is consistent with risk limitations and cash flow characteristics of the City's investments. V. Delegation of Authority Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds, investments, bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this investment policy which include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Each "investment official" shall be approved by resolution of City Council to invest the City of Beaumont's funds. As shown in exhibit "A", the City Manager, the Finance Officer and the City Treasurer are currently approved as investment officials of the City of Beaumont. Such approval of specific persons shall remain in effect until rescinded by the City Council or until termination of the person's employment by the City of Beaumont. Investment officials shall not deposit, withdraw, transfer or manage the funds of the City of Beaumont in a manner that is not consistent with the "prudent person" standard as described in section III of this policy. (Section 2256.005 (fl-(h), Government Code) • 2 City of Beaumont- Investment Policy • VI. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment officials shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City of Beaumont as described in Section 2256.005 (i)(1-3) of the Government Code. They shall also disclose any specific individuals who seek to sell investments to the City and are related to the employee within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council of the City of Beaumont. An ethics statement signed by each investment official is attached as exhibit `B". VII. Training Each investment official of the City of Beaumont shall attend as least ome ten (10) hours of training session relating to investments responsibilities within 12 months after assuming such duties crud shall continue to attend an investment training session not less than once every two years thereafter consisting of at least ten (10) hours of instruction. Training shall be in accordance with the Public Funds Investment Act and include education in investment controls, security risks, strategy risks, market risks, and compliance with state statutes governing the investment of public funds. _inter 0ffiej� a«end an investment —sion not less than onee evefy two yeafs thefeaftef and shall feeeii,�e net less than ten (19) lieurs of instfttetion felating to investment F-s-, --sibilities All training shall be conducted by fFffm an independent source which has been approved by City Council. (Section 2256.008, Government Code) The Government Treasurers Organization of Texas, the Government Finance Officers Association of Texas, the Texas Municipal League and the University of North Texas are hereby approved as "independent sources"who may provide such training to investment officials. VIII. Selection of Financial Dealers, Institutions and Investment Pools Authorized investments shall only be purchased from those institutions included on the City's list of broker/dealers, financial institutions and investment pools as approved by the City Council. An "approved list", as shown in exhibit "C", shall be maintained by investment officials at all times and reviewed by the City Council on an annual basis. (Section 2256.025, Government Code) • 3 City of Beaumont- Investment Policy Any business organization which seeks to execute investment transactions with the City , of Beaumont shall provide a written instrument certifying that they have received and thoroughly reviewed the City's investment policy and have implemented reasonable procedures and controls in a effort to preclude investment transactions that are not authorized by this policy. The certification, as shown in exhibit "D", must be signed by a qualified representative of the business organization. Investment officials shall not buy any securities from a firm which has not filed this instrument. (Section 2256.005 (k)-(l), Government Code) A. Broker/Dealers The City shall select broker/dealers by creditworthiness and may include "Primary Government Securities Dealers" or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the National Association of Securities Dealers, Inc. (NASD) and be licensed.by the State of Texas. The minimum capital requirement is $10,000,000 and the business must have been in operation for at least five years. Firms who desire to become approved bidders for investment transactions must supply the City with audited financial statements, a trading agreement and other information regarding their capabilities, experience, general reputation, size and capitalization. Each firm will be reviewed by investment officials and a recommendation made for approval by City Council. B. Public Depositories The City Council shall select a primary depository every three years. The primary depository as authorized by the City Council shall meet all requirements of the state law concerning depositories for municipal funds. (Chapter 105, Government Code) The institution offering the most favorable terms and conditions for the handling of City funds shall be selected as the depository. The City Council may also establish agreements with financial institutions under separate contract for additional services which are necessary in the administration, collection, investment, and transfer of municipal funds. (Section 105.018, Government Code) Financial institutions who desire to become approved bidders for investment transactions shall submit information similar to that of a broker/dealer as described above (section VIII-A). No deposit shall be made except in a qualified public depository as established by State Law. The City of Beaumont shall not place deposits or investments with Saving and Loan Associations or Credit Unions. • 4 City of Beaumont- Investment Policy C. Investment Pools Investment officials may invest funds of the City of Beaumont an through eligible g .. investment pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular which contains specific and detailed information and provide detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing participants and non-participants who do not have a business relationship with the pool. (Section 2256.016 - 2256.019, Government Code) Before selection, pools shall be thoroughly reviewed and evaluated by investment officials. Annually, a review of the financial condition and registrations of approved bidders will be conducted by investment officials. A current audited financial statement is required to be on file for each financial institution, broker/dealer or investment pool in which the City of Beaumont invests. IX. Authorized and Suitable Investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. (Section 2256.009-2256.019, Government Code) Suitable investments for the City of Beaumont are limited to the following: ♦ Direct Obligations of the United States Treasury with a maximum stated maturity date of 5 years or less. ♦ Certificates of deposit issued by approved depository banks as described above (section VIII-B) which have a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit.Insurance Corporation, or their successors; or secured by obligations that are described in Section 2256.009(a) of the Government Code. ♦ Fully collateralized direct repurchase agreements with a defined termination date of 90 days or less which are secured by obligations of the United States or its agencies and instrumentalities and pledged with a third party other than an agent for the pledgor. Investment officials may invest in repurchase agreements through an approved primary government securities dealer or an approved depository bank as described above (section VIII-A, B). Each issuer of repurchase agreements shall be required to sign a master repurchase agreement. • 5 City of Beaumont- Investment Policy ♦ No load money market mutual funds registered with and regulated by the Securities and Exchange Commission with a dollar weighted average stated maturity of 90 days or less whose assets consist exclusively of direct obligations of the United States and whose investment objectives include the maintenance of a stable net asset value of$1 per share. Money market mutual funds must provide the City with a prospectus and other information required by the Securities and Exchange Act of 1934 (Section 2256.014 (a), Government Code) and be specifically approved by City Council or purchased through the City's primary depository as an overnight investment tool. ♦ Approved investment pools as described above (section VIII-C) which are continuously rated no lower than AAA, AAA-m or an equivalent rating by at least one nationally recognized rating agency and have a weighted average maturity no greater than 90 days. X. Marking to Market All treasury securities and certificates of deposit will be purchased or sold after at least two (2) offers or bids are taken to verify that the City is receiving a fair market value or price for the investment. The market value shall continue to be monitored at least quarterly through on-line investment software to which the City subscribes, the wall street journal or some other recognized market pricing source. The City of Beaumont shall not obtain market pricing i from business organizations who may engage in investment transactions with the City. XI. Collateralization Collateralization will be required on all deposits, certificates of deposit and repurchase agreements. The collateralization level shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or investment including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the collateral pledged clearly listed in the agreement. Collateral shall be reviewed monthly to assure that the market value of the securities pledged equals or exceeds the related deposit or investment balance. Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act (Chapter 2256 and 2257, Government Code). Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City of Beaumont shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: ♦ Direct obligations of the United States or its agencies and instrumentalities. • 6 City of Beaumont- Investment Policy ♦ Direct obligations of this state or its agencies and instrumentalities. • ♦ Collateralized mortgage obligations directly issued by a fede ral agency or instrumentality of the United States and excluding those mortgage backed securities considered a high-risk mortgage security as described by Section 2257.0025 of the Government Code as well as those of the nature described by section 2256.009 (b) of the Government Code. ♦ Other obligations which are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. ♦ Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. XII. Safekeeping and Custody Collateral shall be placed for safekeeping in a custodial account at the Federal Reserve Bank or at an institution not affiliated with a firm pledging collateral. All safekeeping arrangements shall be in accordance with a tri-party custodial agreement which clearly defines the responsibilities of each party and outlines the steps to be taken in order for the City to gain access to the collateral in the event of a "failure". The custodial agreement shall be executed between the City, the firm pledging the collateral and the custodial institution. All safekeeping receipts shall be delivered to the City and all collateral (whether a pledge or substitution) shall be formally accepted and released by City Council. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the safekeeping institution. Pool funds and mutual funds are excluded from this requirement. The security shall be held in the name of the City or on behalf of the City. XIII. Diversification The City of Beaumont will diversify its investments to eliminate an over-concentration of assets in any one security type or institution. ♦ Up to ninety percent (90%) par of the portfolio may be invested in direct obligations of the U.S. Treasury. ♦ No more than fifty percent (50%) par of the portfolio may be invested in certificates of deposit or repurchase agreements. • 7 City of Beaumont- Investment Policy ♦ No more than eighty percent (80%) par of the portfolio may be invested in investment pools or money market mutual funds. ♦ No more than twenty five percent (25%)par of the portfolio may be invested with any one institution in certificates of deposit and/or repurchase agreements. Additionally, these investments shall not exceed ten percent (10%) of the capitalization of the financial institution. XIV. Investment Strategies The City of Beaumont shall maintain a separate investment strategy for each of the three fund types represented in the portfolio. (Section 2256.005,(d), Government Code) A. Pooled Fund Groups Investment strategies for pooled fund groups containing operating funds have as their primary objective to ensure that anticipated cash flows are matched with adequate investment liquidity. Securities purchased shall not have a final stated maturity date which exceeds two (2) years from the date of purchase without specific approval by the City Council. The dollar weighted average maturity of the portfolio shall not exceed 365 days as calculated using the stated final maturity dates of each security. B. Debt Service Funds Investment strategies for debt service funds shall have as their primary objective to ensure that investments mature as necessary to cover the debt service obligation on the required payment date. The stated final maturity date on securities purchased shall not exceed the debt service payment date unless excess funds are available. In that case, maximum maturities shall not exceed two (2) years from the date of purchase and the dollar weighted average maturity of the portfolio shall not exceed 365 days as is consistent with investment strategies for operating funds. C. Debt Service Reserve Funds Investment strategies for debt service reserve funds shall have as their primary objective to seek the highest investment return with maximum security in order to produce a dependable revenue stream to the appropriate fund. Securities shall be invested in accordance with specific bond ordinances and shall not have a stated maturity date which exceeds the final maturity date of the bonds. At no time shall maximum maturities exceed five (5) years from the date of purchase. 8 • City of Beaumont- Investment Policy XV. Internal Control • The City of Beaumont, in conjunction with its annual financial ancial audit shall perform a compliance audit of management controls on investments and adherence to the City's investment policy. (Section 2256.005(m), Government Code) XVI. Performance Standards The City intends to pursue an active versus a passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles which is consistent with risk limitations and cash flow needs of the City . Given this strategy, the basis used by investment officials to determine whether market yields are being achieved shall be the average return on 90 day U.S. Treasury Bills. XVII. Reporting Investment officials shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position,performance, trading activity, interest earnings and collateral. A quarterly report shall be submitted to the City Manager, as Chief Executive Officer, and the City Council detailing investment transactions and performance for the reporting period in accordance with state law. (Section 2256.023, Government Code) The report shall be jointly prepared and signed by all investment officials. It shall include a summary statement prepared in compliance with generally accepted accounting principles for each fund type and a detailed listing that states the beginning market value, changes to the market value, ending market value and fully accrued interest for the period. In addition, investment officials shall report on adherence to the City's investment strategies as expressed in this policy. The quarterly reports shall be formally reviewed by the City's independent auditor on an annual basis and the results of the review shall be reported to City Council. (Section 2256.023, (d), Government Code) XVIII.Investment Policy Adoption The City's investment policy is hereby adopted by resolution of the City Council on September 26, 1995. The City Council shall review and approve any modifications to the policy on an annual basis. This policy serves to satisfy the statutory requirement to • define and adopt a formal investment policy as set forth in Section 2256.005 of the Government Code. 9 Glossary Accretion:r_etion: Adjustment of the difference between the price of a bond bought at a discount and • the par value of the bond. Accrued Interest: Interest due from the last interest payment to the present day. Amortization: The reduction of principal (of debt) at regular intervals. Basis Point: 1/100th of l% or.01%. Book Value: The original acquisition cost of an investment plus or minus the accrued amortization or accretion. Broker: A broker brings buyers and sellers together for a commission. Cash Forecastin : Longer-term (one month or longer) prediction of cash flows focusing on the aggregate cash position. In contrast, cash scheduling focuses on s � Typically predictions, emphasizing cash position management. honer-term Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Collateral: Assets pledged to secure deposits, investments or loans. Collateral Mortgage Obligation (CMO): Multi-class security collateralized by whole regular mortgage securities whose cash flows are paid through to meet debt service on the CMO bond. Comprehensive Annual Financial Report (CAFR): The official annual report for the City of Beaumont. Credit Risk: The risk that a counterparty to obligations. Credit risk can be associated with the issuer of a s c�ansacth a will not fulfill its holding deposits or with parties holding securities or collateral. Credit ri kri x al i tutlbe affected by a concentration of deposits or investments in any one investment type or with any one counterparty. Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Delivery Versus Payment (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is a delivery of securities with an exchange of a signed receipt for the securities. 10 • Glossary Discount: The difference between the cost price of a security and its maturity value when • quoted at lower than face value. Diversification: Dividing investment funds among a variety of securities offering independent returns. Dollar Weighted Average Maturity: Represents the average number of days remaining until the final maturity date, appropriately weighted by the dollar amount of each security in the portfolio. Federal Agency Securities (agencies): Discount and coupon obligations of the federal agencies that were established by Congress to provide credit to specific sectors of the economy. Federal Deposit Insurance Corporation (FDIC): A federal institution that insures deposits of federally chartered banks, currently up to $100,000 per deposit. Federal Reserve Bank: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. Investment Pool: An entity created to invest public funds jointly on behalf of the entities that participate in the pool. • Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. Market Risk: The risk that the market value of an investment, collateral protecting a deposit or securities underlying a repurchase agreement will decline. Market risk is affected by the length to maturity of a security, the need to liquidate a security before maturity, the extent to which collateral exceeds the amount invested and how often the amount of collateral is adjusted for changing market values. Market Value: The current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date. It is the price at which a security is trading and could presumably be purchased or sold. Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase reverse repurchase agreements that establishes each party's rights in the transactions. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. . Par Value: Face amount or 100% of the principal amount of a security at original issue. 11 Glossary Pooled Fund Group: An internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. • Portfolio: Collection of securities held by an investor. Premium: The difference between the price of a bond and its value at maturity when the price is higher than the maturity value. Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission(SEC) -registered securities broker-dealers, banks, and a few unregulated firms. Principal: The amount of debt remaining on a loan. On the date a loan is originated, or issued, the total amount equals the initial principal balance. Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state - the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. Qualified Public Depositories: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which • has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. Qualified Representative: A person who holds a position with a business organization who is authorized to act on behalf of the business organization. If the business organization is regulated by or registered with a securities commission then the qualified representative must be a person who is registered under the rules of the National Association of Securities Dealers. If the business organization is a banking institution then the person must be a member of the loan committee or a person authorized by corporate resolution to act on behalf of and bind the banking institution. For an investment pool, the person must be authorized by the elected official or board with authority to administer the activities of the investment pool and to sign the written instrument on behalf of the investment pool. Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. See yield. 12 • Glossary Repurchase Agreement (RP or REPO): A holder of securities sells these securities to an • investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution. Securities & Exchange Commission (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. Sec Rule 15C3-1: See Uniform Net Capital Rule. Settlement Date: The date agreed upon by the parties to a transaction for the payment of funds and the delivery of securities. Stated Maturity: A predetermined final maturity date that cannot be altered by prepayments. • Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. Treasury Notes: An interest bearing security issued by the U.S. Treasury to finance the national debt. Most notes are issued to mature in one to ten years. Interest is paid semi-annually. Treasury Securities: "Full faith and credit" obligations of the U.S. Government issued by sale at periodic auctions, delivered and cleared electronically. Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. Yield: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the • adjustment spread over the period from the date of purchase to the date of maturity of the bond. 13 • EXHIBITS • • • Exhibit B City of Beaumont Statement of Ethics and Conflicts of Interest Investment officials for the City of Beaumont shall refrain from personal business relationships with business organizations that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. This would only apply to personal business relationships with business organizations which have been approved by City Council to conduct investment transactions with the City of Beaumont. An investment official is considered to have a personal business relationship with a business organization if: (1) The investment official owns 10 percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business. (2) Funds received by the investment official from the business organization exceed 10 percent of the investment official's gross income for the previous year. • (3) The investment official has acquired from the business organization during the previous year investments with a book value of$2,500 or more for the personal account of the investment official. I do hereby certify that I do not have a personal business relationship with any business organization approved to conduct investment transactions with the City of Beaumont nor am I related within the second degree by affinity or consanguinity, as determined under Chapter 573, to an individual seeking to sell an investment to the City of Beaumont as of the date of this statement. City of Beaumont Investment Officials 16 27 9y Ste en J. ltfonczeOt 7 ana er ate Beverly Hod s, PA, Fina c Officer Date • Kandy Daniel,treasurer Date B1 Exhibit C • City of Beaumont Approved List Broker/Dealers, Financial Institutions and Investment Pools October 1, 199�9 Business Organization Approval Date Resolution Number Broker/Dealers: Chase Securities March 19, 1996 96-64 l ilticirrr-R'illianis, [tic. 1.Iati- 11, 1999 99-146 First [anion Securities, Inc. iWaY 11, 1999 99-140 (fornierlti- I i,eren Securities) Prudential Securities February 13, 1996 96-44 • Public Depositories: Primary Depository Hiherriia National Batik August 5, 1997 97-17 (formerly Chase Bank of Texas, N.A.) (Contract Period 10/1/1997 - 9/30/2000) Other Depositories r Bank- Prime Bank December 6, 1994 94-331 Investment Pools: Logic Investment Pool March 4, 1997 97-45 Texpool November 6, 1996 96-273 • Cl Y Exhibit D City of Beaumont Certification By Business Organization This certification is executed on behalf of the City of Beaumont (the Investor) and (the Business Organization) pursuant to the Public Funds Investment Act, Chapter 2256, Texas Government Code (the Act) in connection with investment transactions conducted between the Investor and the Business Organization. The undersigned Qualified Representative of the Business Organization hereby certifies on behalf of the Business Organization that: 1. The undersigned is a Qualified Representative of the Business Organization offering to enter an investment transaction with the Investor as such terms are used in the Public Funds Investment Act, Chapter 2256, Texas Government Code and 2. The Qualified Representative of the Business Organization has received and reviewed the Investment Policy furnished by the Investor and 3. The Qualified Representative of the Business Organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Business Organization and the Investor that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires and interpretation of subjective investment standards. (Firm) Qualified Representative of the Business Organization (Signature) (Name) (Title) • (Date) D1 8 October 26, 1999 Consider an amendment to the Code of Ordinances establishing new boundaries to the existing portion of Avenue A having a 45 MPH speed limit ORDINANCE NO. • ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-23 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO REDEFINE THE BOUNDARIES OF THE EXISTING 45 M.P.H. SPEED LIMIT ON AVENUE A; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: ` Section 1. That Chapter 26, Section 26-23 of the Code of Ordinances of the City of Beaumont be, and the same is hereby amended to include the following: Section 26-23: LIMITS DIRECTION SPEED IN MILES PER HOUR STREET OF ZONES OF TRAVEL MAXIMUM MINIMUM venue A (A) From a point 110 feet south of the N & S 35 centerline of Lavaca to a point 140 feet south of the centerline of Florida (B) From a point 140 feet south of the N &S 45 centerline of Florida to the centerline of the US 69 north frontage road Section 2. That if any section, subsection, sentence, clause or phrase of this ordinance or the application of same to a particular person, or to a particular set of circumstances, should for any reason be held invalid, such invalidity shall in no way affect the remaining portions and provisions of this ordinance are declared to be severable. Section 3. That all ordinances or parts of ordinances in conflict herewith are repealed to the . extent of the conflict only. • Section 4. That any person who violates any provision of this ordinance shall, upon conviction, be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of , 1999. - Mayor - i City of Beaumont g Uqn. Council A enda Item A W TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Mark Horelica, Transportation Manager MEETING DATE: November 9, 1999 AGENDA MEMO DATE: October 28, 1999 REQUESTED ACTION: Council consider an amendment to the Code of Ordinances establishing new boundaries to the existing portion of Avenue A having a 45 MPH speed limit. RECOMMENDATION Administration recommends establishing new boundaries to the existing speed limit on Avenue A. BACKGROUND The Texas Department of Transportation (TxDOT) has completed widening Spur 93 between US 69 (Cardinal Dr.) and FM 3514 and speed limits have been established for this newly widened portion of roadway. The existing boundaries of the 45 M.P.H. speed limit on Avenue A need to be revised to avoid duplication. Speed Miles Per Hour Street Limits of Zones Direction of Travel Max Min Avenue A (A) From a point 110 feet south N & S 35 of the centerline of Lavaca to a point 140 feet south of the centerline of Florida. (B) From a point 140 feet south of N & S 45 the centerline of Florida to the centerline of the US 69 north frontage road. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director, City Engineer and Transportation Manager. RECOMMENDED MOTION Approve/Deny an amendment to Section 26-23 of the Code of Ordinances to redefine the boundaries of the existing 45 M.P.H. speed limit on Avenue A. Aveaxg 11-09-99 9 November 9, 1999 Consider approval of a one year contract with Eckerd Health Services for a prescription drug benefit City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Glenda E. Lundy, Human Resources Director MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 5, 1999 REQUESTED ACTION: Council approval of a one year contract with Eckerd Health Services for a prescription drug benefit. At the end of one (1) year, the City may renew this contract for a period of four (4) additional years. There shall be no rate increase in price should an extension be granted. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew this contract shall be made by the City Manager or his designee. RECONIIAENDATION Administration recommends that Council award a one year contract with the option to renew for four additional years effective January 1,2000 with Eckerd Health Services for a prescription drug benefit with increased services and reduced cost. Increased services include a mail-order component and clinical services which provide drug utilization review and evaluation of current and new drugs with a recommendation to the client as to whether the new drug should be covered. The reduced cost is anticipated based on lower dispensing fees and rebates from the drug manufacturers. Attachment A reflects a cost savings of approximately$24,000 due to the proposed lower dispensing fee for both retail and mail-order services. Rebate savings of approximately $5,869 from drug manufacturers could be realized. This savings is based on a conservative average of$4.38 per employee. Actual savings is dependent on utilization. BACKGROUND Specifications were developed and proposals were solicited for a prescription drug plan in August 1999. The specifications requested proposal pricing for a managed care prescription drug plan with a discounted program through local network pharmacies and mail-order for one year effective January 1, 2000 with the option to renew annually for a period of four additional years. Proposers could submit a proposal based on the City's current plan or their standard plan design. Council Agenda Item Page 2 November 5, 1999 On Tuesday, September 7, 1999 proposals for the prescription drug plan were received from Eckerd Health Services, ScriptCare,Inc. and Fara Benefit Services. The pharmacy benefit plan submitted by Fara was not considered because the plan was not cost effective. Staff conducted a telephone interview with Eckerd Health Services(EHS) and ScriptCare, Inc. The interview/discussion provided additional information and clarification of data submitted. The EHS proposal offered the lowest cost delivery system by offering an integration of a cost effective retail and mail-order program. EHS owns and operates its mail-order services which is unlike many competitors who must subcontract with another vendor for this service. EHS and ScriptCare have the same local pharmacy providers in Hardin, Jefferson and Orange counties. In an effort to ensure that the City received the best rates, staff further negotiated rates with both pharmacy benefit managers (PBM). The following is a comparison of the proposed and negotiated rates (bold print represents negotiated rate): Services Eckerd Health Services ScriptCare, Inc. • Mail-order(brand) AWP less 18% vs 16% AWP less 18% vs 16% • Dispensing fee Generic only- $1.75 $1.50 vs $2.50 brand &generic • Drugs not on RightMac Drugs not on HFCAMac AWP less 40% AWP less 40% • Dispensing fee Retail - $2 and $2.25 Retail - $2.75 vs $2.75/$3 • Remote access $150 waived None • Member cards In excess of 2 waived No limit Replacement Employee cost- $.50/card No cost for replacement • Rebates 80% of rebates received 50%of rebates received • Adm. Fee $.41 per claim $.40 per claim EHS will match the City's current plan design along with other benefits that will enable the City to maximize its pharmacy benefit dollars. One added feature will be a cost effective prescription mail order program. The retail rates will reflect an average wholesale price(AWP) minus an established percentage plus a dispensing fee for both brand and generic drugs. The proposed administrative fee will be $.41/electronic and $1.50/paper claim. EHS has agreed to guarantee the rates for the entire contract period. ScriptCare, Inc. is the current pharmacy benefit manager for the City's prescription drug plan. Currently, employees, retirees, Cobra participants and their eligible dependents can only purchase prescription drugs at a retail pharmacy. Currently, a mail-order service is not a part of the prescription drug benefit. ScriptCare,Inc. submitted a letter withdrawing their proposal from further consideration which is included in Attachment C. Council Agenda Item Page 3 November 5, 1999 The total cost of providing the prescription drug benefit between October 1998 and August 1999 including the administrative fee was $1,116,000. This cost is based on the average wholesale price (AWP)minus an established percentage plus a dispensing fee for both brand and generic drugs. The administrative fee is $.35/ele6tronic claim and $1.50/paper claim submitted. The rates proposed by ScriptCare for both retail and mail-order benefits are slightly higher than those proposed by EHS. The current average cost per month for prescription drug benefits during FY99 was $93,000. It is anticipated that a positive cost impact will result from lower dispensing fees and average wholesale prices on generic drugs. This coupled with the addition of the mail-order component should also attribute to lower cost. The cost impact, however, is dependent upon the cost and utilization of prescription drugs. Attachment B is a detailed comparison of the original proposed prescription drug benefit and the negotiated/final rate submitted by ScriptCare and Eckerd Health Services. Copies of letters from ScriptCare and Eckerd Health Services which outline their final rates are enclosed as Attachment C. Attachment D are copies of the mail-order savings analysis and the co-pays for both the retail and mail-order as approved by City Council on 10/29.99. Attachment E is a copy of the contract in its substantial form. BUDGETARY EWPACT Appropriation of funds is available in the prescription drug line item of the Employee Benefit Fund in the amount of$1,100,000 for FY2000. PREVIOUS ACTION None SUBSEQUENT ACTION None RECONMMNDED BY City Manager and Human Resources Director RECONEWENDED MOTION Approve/Deny authorizing the award of a one year contract with Eckerd Health Services for a prescription drug benefit effective January 1, 2000. At the end of the one (1) year, the City may renew this contract for a period of four(4) additional years at the prices quoted. There shall be not an increase in price should an extension be granted. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew this contract shall be made by the City Manager or his designee. Attachment A Dispensing Fee Comparison(Cost Savings) Attachment B Prescription Drug Proposal Comparison Attachment C Letters from ScriptCare and EHS regarding negotiated/final rates Attachment D Mailorder Saving Analysis/Retail and Mail-order Co-pays Attachment E Contract in substantial form c.an,2000 Dispensing Fee Comparison Attachment A (Based on current plan utilization from 10/98 - 9/99) No. of Per RX Prescriptions Rate Total Savings A. Retail Script Care Brand without Generic 17,240 x $2.75 = $47,410 Brand with Generic 1,862 x 2.75 = 5,121 Generic 12,521 x 2.75 = 34,433 Total 31,623 $86,964 Eckerd Health Services Brand without Generic 17,240 x $2.00 = $34,480 $20,588 Brand with Generic 1,862 x 2.00 = 3,724 Generic 12,521 x 2.25 = 28,172 Total 31,623 $66,376 B. Mail-Order Script Care Brand without Generic 2,576 x $1.50 = $3,864 Brand with Generic 278 x 1.50 = 417 Generic 1,871 x 1.50 = 2,807 Total 4,725 $7,088 Eckerd Health Services Brand without Generic 2,576 x $0.00 = $0 $3,814 Brand with Generic 278 x 0.00 = 0 Generic 1,871 x 1.75 = 3,274 Total 4,725 $3,274 Total Savings $24,402 Note: Mail-order comparison is based on 13% of total plan usage 10/21/99 08:30 AM DISPFEE.WIr,4 PRESCRIPTION DRUG PR*M PROPOSAL COMPARISON tchment B Retail Mail-order Brand w/o Brand w/ Generic Brand w/o Prand w/ Generic Generic Generic Generic Generic Eckerd AWP* AWP - 13% AWP- 13% AWP-50 to AWP- 16% AWP- 16% AWP-50 to 53% Health 53% RightMAC RightMAC Services Administration Electronic .41 Electronic .41 Electronic .41 Electronic .41 Electronic .41 Electronic .41 Original Fee Paper 1.50 Paper 1.50 Paper 1.50 Proposal Dispensing 2.00 2.00 2.25 -0- -0- 1.75 Fee Rebates 80% rebates from drug manufacturer for City, other 20% for PBM AWP* No Changes AWP- 18% AWP - 18% AWP-50-53% RightMAC; not RightMAC AWP-40% Negotiated/ Administration Fee and Dispensing Fee remain the same Final Rate Script AWP* AWP- 12 to 14% AWP- 12 to 14% AWP-40% or AWP - 16% AWP - 16% AWP-40% or HCFAMAC Care HCFAMAC Original Administration Electronic .40 Electronic .40 Electronic .40 Electronic .40 Electronic .40 Electronic .40 Proposal Fee Paper 2.00 Paper 2.00 Paper 2.00 Dispensing 2.75 2.75 3.00 2.50 2.50 2.50 Fee Negotiated/ AWP* No Changes AWP - 18% AWP - 18% No change Final Rate Rebates 50% rebates from drug manufacturer for City, other 50% for PBM Administration Fee remain the same Dispensing Fee changed to$2.75 for all retail prescriptions Dispensing Fee changed to$1.50 for all mailorder prescriptions Current AWP* AWP- 12 to 14% AWP- 12 to 14% AWP-40% N/A N/A N/A Plan Administration Electronic .35 Electronic .35 Electronic .35 Fee Paper 2.00 Paper 2.00 Paper 2.00 Dispensing 3.00 3.00 5.00 Fee *AWP-Average Wholesale Price JRS C:\OFFICE\WPWIN\WPDOCS\CONTRACT.BID\BIDCOMPA\IRXBID993.WPD 10/20/99 4:13 pm ATTACHMENT C SCRIPT CARE, uvc. Pharmacy Benefits Management NOV EMPLii OF KAUN ONI E RELATIONS OFFICE October 29, 1999 In Re: Carrier Code: 8G Group Number: 7120 Group Name: City of Beaumont, Texas Effective Date: October 1, 1990 Ms. Glenda Lundy City of Beaumont PO Box 3827 Beaumont, TX 77704 Dear Glenda: Please accept this letter as official notification that Script Care is withdrawing it's bid on Proposal Number BF0799-63. We have enjoyed working with you and the City for the past ten years. Please call if you have any questions. q ncerly, X_,__� Jim Brown, R.Ph. President /kcs cc: Mr. David W. Moore - Mayor Mr. John K. Davis - Mayor Pro-Tem Dr. Lulu Smith - Councilmember, Ward 1 Mr. Guy N. Goodson - Councilmember, Ward 2 Ms. Bobbie J. Patterson- Councilmember, Ward 4 Mr. Andrew P. Cokinos - Councilmember, At Large Ms. Becky Ames - Councilmember, At Large Mr. Stephen J. Bonczek - City Manager Mr. Lane Nichols - City Attorney 87 IH-10 North,Suite 100 • Beaumont,Texas 77707 • (409)833-9061 • (800)880-9902 Fax:(409)833-7435 E-mail:info@scriptcare.com • Web Page:www.scriptcare.com Attachment C 409) 832-3041 1-800-880-9988 SCRIPT CARE, INC. October 18, 1999 Ms.Glenda Lundy City of Beaumont,Texas P.O.Box 3827 Beaumont,TX 77704 Dear Glenda, Enclosed please find the pricing summary which Mr. Bonczek had requested in our telephone conversation October 13, 1999, and a sample pricing he had requested during a previous telephone discussion with Kevin. I have also enclosed our most recent listing of our MAC pricing. This should help you with your evaluation. In your fax dated October 18, 1999, regarding extending our current contract through December 31, 1999, there is no problem granting that extension. On the question concerning, "eligibility report in the format required by the new administrator," I cannot answer that issue at this time since I do not know what kind of format the new administrator would be requesting. This is not something we have ever requested from another Pharmacy Benefit Manager nor has another Pharmacy Benefit Manager ever requested that information from Script Care, Inc. It is standard procedure for the employee group to send the Pharmacy Benefit Manager a current eligibility file. Furthermore, I cannot identify what the cost might be for this eligibility transfer issue since again I do not know what exactly the new administrator might request. Please provide me with more details in order for me to answer your questions. If you should need additional information,please do not hesitate contacting me. Sin rely, Jim Brown,R. Ph. President JB/cks 87 IH-10 North, Suite 100 • Beaumont, Texas 77707 • FAX (409) 832-3109 Summary Sheet for City of Beaumont Proposal H Pricing Independent Phy Chain Phy Walgreen Phy Brand Drugs AWP- 13%+ $2.75 AWP- 14%+ $2.75 AWP- 12%+ $2.75 AWP-40%or MAC+ AWP-40%or MAC+ AWP-40%or MAC+ Generic Drugs $2.75 $2.75 $2.75 Drug Source- Advanced Paradigm Rx Direct- Mail Order Pricing - Chicago, IL Dallas,TX Paris,Tx Brand Drugs AWP- 17%+ $2.00 AWP- 18%+ $1.50 AWP- 18%+ $2.00 AWP-40%or MAC AWP-40%or MAC AWP-40%or MAC Generic Drugs + $2.00 + $1.50 + $2.00 Admin/Processing Charge Paid Electronic Rx Claims $0.40 Rejected Claims No Charge Self Pay Manual Claim $2.00 Reports/Reporting Standard Reports No Charge Ad Hoc or Special Reports To be quoted upon request Identification Cards Standard Cards No Charge Custom Cards To be quoted upon request Card Distribution Intial Printing If mail to individual addresses, cost plus postage Additional Cards No charge Differential Pricing None Formulary Services - Rebates- Open Formulary 50/50 Preferred Formulary 80/20 Closed Formulary 50/50 Miscellaneous Services - Eligibility Manual Entry No Charge Electronic Access Entry No Charge rIwo Page 1 SCRIPT CARE, INC. SCRIPT CARE, 1NC. Pharmacy Benefits Management October 20, 1999 VIA HAND DELIVERY Ms. Glenda Lundy City of Beaumont,Texas PO Box 3827 Beaumont, TX 77704 Dear Glenda: Confirming our telephone conversation of this afternoon, this will reiterate our proposal to include Eckerd's as the mail order provider through your Script Care, Inc. pharmacy benefit program. I would be happy to discuss this proposition with you and Mr. Bonczek at your convenience. If you should need additional information,please do not hesitate contacting me. S ncerely, OJim Brown, R Ph. President JB/kcs cc: Mr.Stephen j Bonczek City of Beaumont PO Box 3827 Beaumont,TX 77704 VIA FACSMII.E 87 IH-10 North,Suite 100 • Beaumont,Texas 77707 (409)833-9061 (800)880-9902 Fax:(409)833-7435 E-mail:info@scriptcare.com Wet,Page:www.scriptcare.com Attachment C HEALTH SERWIM THE • RIGHT • S0LUTION City of Beaumont Prescription Benefit Program Pricing Proposal: Best and Final October 13, 1999 The following are commitments to the City of Beaumont: Original Proposal=—'Ivlaih�order.pricing'`to be AWP=16°fo Negotiated Proposal—Mail order pricing to be AWP-18%, no dispensing fee. Ori ginalPtapQSaL---Remote Access charge of$150:00 to'City'of Beaumont Negotiated Proposal—Remote Access charge of$150.00 to be waived by EHS. Original Proposal=All member,cards exceeding 2 are$050.each Negotiated Proposal—All additional cards needed for reasonable purposes will be generated at no charge during the initial enrollment period (Out of town-college students, children living in city different than member etc.) List provided to Regional Sales Manager during enrollment. Additional Issues: ♦ Eckerd/JC Penney/EHS commitment to,City'of Beaumont: Fiscal 1998-99 Financial Impact of Eckerd's presence to City of Beaumont. Excludes JC Penney store & surrounding counties' 8 Eckerd stores. Store Location Sales Dollars Payroll Dollars Taxes Paid 2031 Phelan Blvd $ 7,373,291.00 $ 815,581.00 $ 78,238.00 2311 Ave A $ 3,138,265.00 $ 346,632.00 $ 40,566.00 2312 Concord RD $ 1,840,710.00 $ 278,338.00 $ 29,735.00 2719 East Fwy $ 3,639,481.00 $ 347,571.00 $ 41,112.00 Totals 4 Stores $ 15,991,747.00 $ 1,788,122.00 $ 189,651.00 We are committed to our employees in our stores who live in the Beaumont community and render taxes, as good citizens, additional to the amount Eckerd pays. In turn we are continuing to upgrade our store base as represented in our new 24 store that will be open this week. The above listed retail,sales and payroll dollars show a genuine and on-going relationship with the City of Beaumont. ♦ Competitor-"Mail service will not save you money". EHS's response is found in the attached table titled Mail Service Savings Analysis. 16597 Interstate 45 South • Conroe, TX • 77385-3403 • Phone: (281) 364-2810 • Fax: (281) 364-2814 HEALTH SERVICES THE • RIGHT • S0LUTION ♦ ompetri oz` You wild never seepRebates frarn EHS We share rebates with the City of Beaumont, unlike the present contract the city has with the contracted PBM. Our proposal says that we will share 80% of rebates with the City. Copies of rebates paid to several companies we do business with were sent to Karen and Glenda to review. ♦ Competitor fi`The HfFA list 1-use,hasuover5Of10,cliugs oririt"11 The facts are that the HCFA list printed from the Government Website on October 11, 1999 shows only 601 drugs on the HCFA list and the majority are for multiple dosage forms and not multiple drugs—therefore less hits to the MAC list. Our RIGHTMAC list has over 630 drugs and is updated quarterly to include new product availability and/or additional discounts. The list printed on the October 11`" from HCFA has not been update since July 1998! ♦ Competitor-"EHS is;charging you$0.91'per claim administrative fee" Our proposal is an administrative fee of$0.41/claim. In addition there is no charge to the City of Beaumont for claims that are reversed or voided, paid claims only. Presented to the City of Beaumont Bill Jardine Don Houchin, R.Ph. Director of Sales Regional Sales Manager Eckerd Health Services Eckerd Health Services 16597 Interstate 45 South • Conroe, TX • 77385-3403 • Phone: (281) 364-2810 • Fax: (281) 364-2814 HEALTH SERVICES THE * RIG HT - SOLUTION October I3, 1999 Glenda Lundy Karen Satterly City of Beaumont Dear Karen and Glenda: Per our discussion of Tuesday, October 13, 1999, please consider our proposal for Mail Service. ♦ Generic Pricing -- RIGHTMAC or if not a MAC item then priced at AWP less 40%. The Web-Site for the HCFA information is included in this Fax. Hard copies to follow for all of these faxes! If I can be of any assistance whatsoever, please call. I look forward to speaking with you in the near future. Thanks for all of your efforts, qn, Ilzri'tZ4 Don Houchin, R.Ph. Regional Sales Manager Eckerd Health Services FAX Others Sell Programs. We Build Relationships. • • • • • • • • • • • • • • • • • • 16597 Interstate 45 South • Conroe, TX • 77385-3403 • Phone: (281) 364-2810 • Fax: (281) 364-2814 Attachn•ienle k 0 can Hv.P&TH SRiICES THE • RIGHT • SOLUTION Mail Service Savings Analysis Average Discounted Store to Mail Maint. Store Rx Average Gross Maintenance Day Supply Cost @ Equiv. Discounted Mail Service Store Rx Cost Multiple Mail Day Supply Mail Rx Costl Savings Per Rx Brand Rx: $56.62 3.05 $172.69 $141.03 $31.66 Generic Rx: $14.09 3.59 $50.58 $40.27 $10.31 Wt. Ave. Rx: $43.86 3.21 $136.06 $110.80 $25.26 Wt. Ave. Copay: $19.00 3.21 $58.76 $38.00 ($20.76) Net Wt. Ave. Rx Cost-Beaumont: $24.86 $77.30 $72.80 $4.50 Assumptions — 30% Generic Dispensing Rate for Maintenance Medications @ Store and Mail — Proposed EHS Mail Service Reimbursement Formula • Brand Drugs: AWP - 18% + a $0 Dispense Fee Generic Drugs: MAC (e.g., AWP - 51%) + a $1 .75 Dispense Fee — Store Reimbursement Formula: • Brand Drugs: AWP - 13% + a $2.00 Dispense Fee • Generic Drugs: MAC (e.g., AWP - 51%) + a $2.25 Dispense Fee — Mail Service Copay of Brand(Single and Multi-Source) $50 and Generic $10 — Days Supply Store Brand: 26.8 Mail Brand: 81 .8 Store Generic: 22.3 Mail Generic: 80.4 ATTACHMENT D Prescription Drug Co- pays Retail and Mail-order Approved by City Council on 10/29/99 The City offers a prescription drug benefit to approximately 1,341 regular full-time employees and 141 retirees and/or Cobra participants. This benefit is available to plan participants of both medical plans and is currently administered by ScriptCare, Inc. The current plan design allows employees and their dependents to obtain a 30 day supply of prescription drugs by remitting a co- pay of$3 for generic drugs, $15 for a name brand with no generic available and $20 for a name brand with a generic available. The co-pay of$3, 15 and 20 represents the amount the employee pays the pharmacy while the City absorbs the remaining cost of the prescription drug. The City paid $1,116,000 for prescription drugs in FY99 compared to $991,000 in FY98 resulting in a 12.6% cost increase. Due to the rising cost and increased utilization of prescription drugs by participants, administration recommends the following co-pay changes for all plan participants effective January 1, 2000 at local retail stores: Current Proposed Generic $ 3 $ 5 Name brand without generic 15 15 Name brand with generic 20 25 The $3 co-pay for generic drugs has been in effect since October 1989 while the $20 co-pay for name brand drugs with a generic became effective January 1998. With the implementation of the mail-order component of the prescription drug service, it is proposed that the City requires two co-pays for each 90 day supply of generic and name brand without a generic prescription. For each 90 day supply of name brand prescription with generic available, 21/z co-pays will be required. The intent of the 21h co-pays is to encourage additional utilization of the generic prescriptions. The purpose of fewer co-pays is to give the employees and their dependents an incentive to utilize the mail-order component. The two co-pays will save the employees one co-pay per prescription resulting in a savings of either $5 or $15. The 21/7 co- pays will result in a $15 savings. Although the employee will benefit from less co-pays, it will not increase the City's cost. This is due to the City paying 5% less on the average wholesale price (13% at the retail stores and 18% mail-order) with the mail-order service. There is no dispensing fee for filling a name brand prescription (and a lower dispensing fee for a generic prescription) under the mail-order component. This will result in additional savings. The following co-pays for a 90-day supply under the mail-order component is recommended effective January 1, 2000: Current Proposed Generic $ 0 $ 10 Name brand without generic 0 30 Name brand with generic 0 60 Staff is recommending that City Council pass a resolution authorizing the City Manager to implement the proposed prescription co-pay changes for all participants and the contribution rate changes for retirees effective January 1, 2000. c:eckerd3 Attachment E LETTER OF UNDERSTANDING/CONTRACT between ECKERD HEALTH SERVICES and THE CITY OF BEAUMONT THIS AGREEMENT, made as of the I st day of January„ 2000, between TDI Managed Care services, Inc., d/b/a/ Eckerd Health Services, a Delaware corporation, with its principal place of business at 620 Epsilon Drive, Pittsburgh, Pennsylvania 15238 ("EHS"), and City of Beaumont, with its principal place of business at 801 Main Street, Beaumont, TEXAS 77701. WHEREAS, Sponsor has committed to provide a prescription drug plan for eligible covered persons; and WHEREAS, EHS has established a nationwide network of retail and mail service pharmacies to accept sponsor's prescription drug plan; and WHEREAS, EHS has a remote electronic claims adjudication and processing system for adjudicating and processing claims made for prescription drugs and other goods and related services; and WHEREAS, EHS has a drug utilization review service by which the cost effectiveness, interaction and resulting therapeutic effect of various drugs is reviewed and monitored electronically; and WHEREAS, EHS has a prescription drug benefit management service for designing and managing prescription drug benefit plans; and WHEREAS, Sponsor desires to engage EHS to adjudicate and process claims on its behalf through the electronic claims adjudication and processing system and may request EHS to implement drug utilization review and benefit management services now or in the future, and EHS desires to furnish such services as described in this Agreement. NOW, THEREFORE, in consideration of the mutual premises and agreements herein contained, the parties hereto agree as follows: I. DEFINITIONS A. "Benefits" means the prescription drugs and other goods and related services covered by the Plan. OOEckerd.wpd 11/5/99 Page I B. "Covered Person" means an individual who is eligible to receive Benefits in accordance with and under the terms of a Plan. C. "Effective Date" means the period beginning on January I, 2000. D. "Exclusions" means the prescription drugs and other goods and related services not covered by the Plan. E. "Member Pharmacies" means a nationwide network of retail and mail service pharmacies that have contracted with EHS and may accept Sponsor's Plan. F. "Plan" means Sponsor's prescription drug plan. G. "EHS Program" means the EHS Claims System, EHS DUR and the other services which EHS may provide to sponsor. H. "EHS DUR" means the concurrent drug utilization review program used by EHS. I. "EHS Claims System" means the electronic system used to adjudicate and process claims made for Benefits. II. OBLIGATIONS OF SPONSOR A. Prior to the Effective Date, Sponsor shall provide EHS, in a form approved by EHS, with information concerning the Plan, as and when needed and in sufficient detail to allow EHS to perform its obligations hereunder, including at least the following: I. The effective date and the expiration date of the Plan; 2. The classes of dependents covered, including any age limits applicable to dependent children; 3. The estimated number of Covered Persons by geographic location; 4. The manner of distribution of EHS identification cards to Covered Persons; 5. The Benefits and Exclusion under the Plan; 6. The parameters ("Parameters") for determining (1) whether and to what extent Benefits are covered by the plan or Exclusions apply, and (ii) the amounts of all,payments and the compensation rates to be offered for all Benefits; 7. The amount of the Plan deductible, or copayment, if any; and OOEckerd.w d II/5/99 p Page 2 8. Electronic eligibility information, including at least the following: (a) The names and identification numbers of all Covered Persons as of the Effective Date; (b) The relationship of each Covered Person to one another (e.g., qualified dependent) as applicable and such other information as may be reasonably required for adjudication of claims via the EHS Claims System; © The ate of birth of each Covered Person; (d) If Sponsor's Plan includes EHS DUR, sufficient information to prepare Covered Persons' profiles for use in providing EHS DUR services; (e) If Sponsor's Plan includes network planning, each Covered Person's home address; and (f) Updates to, additions to and deletions from eligibility information and Covered Persons' profiles on a continuous basis as such changes occur. B. Sponsor warrants that if the Plan provides for the reimbursement to Covered Persons of the cost of prescription drugs purchased at non-Member Pharmacies, then the Plan shall state that such reimbursement shall be conditioned upon the submission of a claim for direct reimbursement in a form approved by Sponsor and EHS, together with the Covered Person's proof of payment for the prescription drugs. C. Prior to the Effective Date, Sponsor shall provide each Covered Person with complete and accurate information describing the Plan and the EHS Program. D. Sponsor warrants that the Parameters and the information provided to EHS pursuant hereto are consistent with the Plan in all respects. E. Sponsor agrees not to sell or share the information about the discount to or with any third party, except as allowed in accordance with the Open Records Act. III. OBLIGATIONS OF EHS A. EHS shall enter the Plan's Parameters and eligibility information received from Sponsor into the EHS Claims System. The information entered into the EHS Claims System shall be deemed correct until EHS is otherwise notified by Sponsor that OOEckerd.w d II/5/99 P Page 3 corrections are required. EHS shall promptly correct any errors brought to its attention. B. EHS shall take all reasonable steps to maintain its contracts with an adequate number of Member Pharmacies in the various geographic locations where Covered Persons are resident, EHS shall furnish each Member Pharmacy with a summary description of the Plan. Sponsor acknowledges and agrees that the Member Pharmacies are chosen solely based on their willingness to provide services to the Covered Persons and their professed willingness to abide by the Pharmacy Service Agreement. Sponsor further acknowledges and agrees that EHS shall not be responsible for any negligence, fraud or misconduct of any Member Pharmacy or any employee, agent or officer of Member Pharmacy. C. EHS, or its designated agent, shall process claims received from Member Pharmacies through the EHS Claims System and may also process paper claim forms received from Covered Persons for direct reimbursement. EHS, or its designated agent, shall determine eligibility and conformity to the Plan and effect payment of eligible claims and provide notification of declined or ineligible claims. The parties acknowledge that EHS is not a fiduciary or plan administrator of Sponsor or Sponsor's Plans and.that, with respect to the provision of services by EHS under this Agreement, EHS shall not assume any obligations of Sponsor, any named fiduciary or the Plan administrator. D. EHS shall invoice Sponsor for the retail and/or mail service prescription claims amounts and applicable sales tax, if any, which have been processed by EHS, or its designated agent, during the applicable period (the "Prescription Claims Invoice"). EHS shall furnish to Sponsor a Prescription Claims Invoice no less frequently than twice a month. E. EHS shall invoice Sponsor for the administrative fees specified in Exhibit A (the "Administrative Fees") which have become due during the applicable period (the "Administrative Fees Invoice"). EHS shall submit to Sponsor an Administrative Fees Invoice no less frequently than monthly. (Hereinafter the Prescription Claims Invoice and the Administrative Fees Invoice are collectively referred to as the "Invoice"). F. Eckerd Health Services shall provide eligible employees/retirees including dependents with the required number of identification cards during the initial '. enrollment. The City of Beaumont agrees all enrollment contracts shall provide that eligible employees/retirees their dependents must present their identification cards to each pharmacy at the time of seeking to have a prescription filled. Replacement cards will be provided at a charge of$30 each and the City will remit E such monies collected to EHS. i t OOEckerd.wpd 11/5/99 Page 4 r t IV. MAIL SERVICE PHARMACY A. EHS shall arrange to provide the mail service pharmacy services described in Exhibit B. V. EHS DUR SERVICES A. If requested by Sponsor, EHS shall provide the EHS DUR services listed in Exhibit C. B. EHS, on behalf of Sponsor, may deny payment for claims to the extent the information received is not sufficient to allow for EHS DUR services. VI. BENEFIT MANAGEMENT SERVICES A. If requested by sponsor, EHS shall provide the benefit management services listed in Exhibit D. VII. REMUNERATION AND PAYMENT A. Within forty-eight (48) hours of receipt of a.Prescription Claims Invoice from EHS, sponsor shall initiate an Automated Clearing House (ACH) transfer or an electronic wire transfer for the Prescription Claims Invoice amount to a bank account designated by EHS. B. Within ten (10) business days of receipt of an Administrative Fees Invoice from EHS, Sponsor shall remit payment for the Administrative Fees Invoice amount to EHS. The "business day" does not include bank or City holidays. C. Eckerd Health Services shall submit the claims and administrative invoice to the City's Human Resources Department for payment within ten (10) days after the end of the accounting period of providing the covered services. Within forty-eight (48) hours of receipt of the prescription claims invoice from EHS, the City shall initiate an Automated Clearing House (ACH) transfer for the invoice amount to a bank designated by EHS. D. The invoice for the administrative fees shall be combined or submitted along with the claim invoice at the beginning of each month. The City will remit both payments simultaneously via Automated Clearing House transfer. E. The City must remit payment for services in accordance with state regulations or the late payment allowed maybe required by EHS. VIII. RECORDS AND DATA OOEckerd.wpd 11/5/99 Page 5 A. EHS shall maintain for the life of the contract to prevent loss of information prior to the end of the contract period, in original form or on electronic media, the claims and paper claim forms supporting the invoices. EHS and Sponsor shall allow each other to audit, review and duplicate such records and any other records in their possession that relate primarily to the obligations undertaken by either party under this Agreement. The review and duplication of records shall be allowed upon reasonable notice during regular business hours at the place of business of the record holder and shall be subject to all applicable state and federal laws and regulations regarding the confidentiality of such records. Duplication shall be at the cost of the requesting party. Sponsor acknowledges that reimbursement rates for pharmacy services paid by EHS to Member Pharmacies are not necessarily a pass through of contracted rates between EHS and Sponsor. Accordingly, notwithstanding anything to the contrary set forth herein, Sponsor shall not have the right to audit, review or otherwise access information regarding contracted reimbursement rates or amounts of payments from EHS to Member Pharmacies. Upon request, EHS shall verify to Sponsor that all claims made by Member pharmacies for Benefits provided to Covered Persons have been paid by EHS. B. EHS shall retain full ownership rights over all compilations and analyses generated by EHS, as well as all.property technology, software and other data utilized by EHS in its performance under this Agreement. Ownership rights shall include, but are not limited to, all rights associated with publication, trade secrets, copyrights, trademarks and patents. EHS shall retain the right to use all data and information received from Sponsor or Member Pharmacies provided such use shall not violate any Covered Person's right of confidentiality. Sponsor acknowledges that EHS has made it aware of the existence of manufacturer rebates and it will receive from EHS any rebates in connection with this Agreement. Sponsor agrees that EHS, or its designated agent, may submit Covered Persons' prescription claim information to drug manufacturers and/or other third parties for which EHS, or its designated agent, may receive a rebate and/or other discounts for the Sponsor. C. All records, reports and other data provided by EHS to Sponsor under this Agreement are for Sponsor's use in claims administration and plan management,and EHS disclaims all liability arising out of Sponsor's other use or dissemination of the reports and summaries. Sponsor shall treat as confidential any information which individually identifies a Covered Person, Member Pharmacy or physician/prescriber. Sponsor agrees to indemnify and hold EHS, its affiliates, directors, officers, employees, agents and parent harmless from any and all liability, claims, actions or demands (including reasonable attorneys' fees) caused by, arising out of, or in any way related to Sponsor's use or dissemination of the information, reports and summaries. D. EHS and Sponsor acknowledge that certain information, reports and data generated under this Agreement are subject to applicable confidentiality of medical records OOEckerd.wpd 11/5/99 Page 6 laws, and the parties agree to comply in all material respects with such laws. Sponsor represents that is has received from each Covered Person his/her consent for EHS to obtain and/or possess prescription and medical information relating to him/her. IX. TERM AND TERMINATION OF AGREEMENT A. This agreement shall commence as of January I, 2000, and continue for a period of one year. At the end of one (1) year, the City may renew this contract for a period of four (4) additional years. There shall be no rate increase in price should an extension be granted. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew this contract shall be made by the City Manager or his designee. B. This Agreement may be terminated as follows: I. By either party, with or without cause, on sixty (60) days prior notice to the other. Upon receipt of said notice, this Agreement shall terminate at the expiration of the then current term. 2. By either party in the event the parties are unable to agree on changes in Administrative Fees as provided in Article VII hereof; 3. By either party if the other party shall materially default in its performance of this Agreement. The terminating party shall provide the other party thirty (30) days' prior notice specifying the nature of the default. Such notice shall not be effective and this Agreement shall not terminate if the other party shall cure, or undertake reasonable efforts to cure, such default within the thirty (30) day period. C. This agreement/contract shall be governed by the laws of the State of Texas where such services are provided and shall be subject to cancellation with 60 days written notice by either party with or without cause. D. In the event of a termination hereunder: I. EHS shall have the right to notify its Member Pharmacies that Covered Persons' EHS identification cards for the Plan become invalid as of the termination date; 2. The liability of Sponsor for obligations incurred up to the effective termination date, including all costs of collection and reasonable attorneys' fees, shall survive termination; and 3. Articles VIII and XI hereunder shall survive termination. X. NOTICES OOEckerd.w d II/5/99 P Page 7 in person, sent b certified mail All notices pertaining to this Agreement shall be delivered pe o , y , delivered by air courier, or transmitted by facsimile and confirmed in writing (sent by air courier or certified mail) to a party at the address or facsimile number shown in this Agreement, or such other address or facsimile number as a party may notify the other party from time to time. Notices delivered in person, and notices dispatched by facsimile prior to 4:30 PM, recipient's time, Monday through Friday (legal holidays excepted), shall be deemed received on the day sent. All other facsimiles and notices shall be deemed to have been received on the business day following receipt-, provided, however, if such day falls on a weekend or legal holiday, receipt shall be deemed to occur on the next business day. Notices may also be transmitted electronically between the parties provided that proper arrangements are made in advance to facilitate such communications and provide for their security and verification. Notices to EHS shall be addressed to: TDI Managed Care Services, Inc. d/b/a Eckerd Health Services 620 Epsilon Drive Pittsburgh, Pennsylvania 15238 Attn.: Sr. Vice President Facsimile No. 412-967-2333 Notices to Sponsor shall be addressed to: City of Beaumont P. O. Box 3827 (801 Main Street) Beaumont, Texas 77701 Attn: Glenda E. Lundy, Human Resources Facsimile No. 409-880-3108 A. The EHS Claims System is dependent upon the accurate transmission and processing of data by electronic means. EHS shall not be liable for any damages or claims arising out of any interruption in transmission or processing. B. Nothing in this Agreement shall be construed or be deemed to create any rights or remedies in any third party, including, but not limited to, a Covered Person. C. EHS shall use ordinary care and reasonable diligence in the performance of its duties under this Agreement. Sponsor acknowledges that this Agreement is not a contract for the sale of goods, and EHS DISCLAIMS ALL EXPRESS AND ALL IMPLIED WARRANTIES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY AS TO THE QUALITY, ACCURACY OR SUITABILITY FOR ANY PARTICULAR PURPOSE OF THE INFORMATIONAL DATA GENERATED THROUGH THE EHS CLAIMS SYSTEM. OOEckerd.w d 1 1/5/99 Page 8 P S and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SCCDC will provide an acceptable audit engagement letter for the 1999 audit report to the City of Beaumont by January 31, 2000. The completed 1999 audit report will be provided to the City by May 31, 2000. The audit fee will be paid directly to the auditor from other City funds. Failure to complete the audit report by May 31, 2000 may result in contract termination. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this Contract. 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those 5 people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to eligible families of the City of Beaumont, Jefferson County, Texas by constructing new homes in the Charlton- Pollard Neighborhood for sale. It is understood that Grantee adheres to HOME affordability requirements. i 10. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee 6 agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 13. . The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 7 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. I 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Stephen J. Bonczek Barbara Liming City Manager City Clerk THE STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Robert Jones Leon Jake Campbell Chairman Secretary-Treasurer 9 "EXHIB IT A " PROGRAM BUDGET Acquisition, rehabilitation or reconstruction of four (4) houses in the Pear Orchard, North End and South Park Neighborhoods. $125,400 TOTAL $125.400 PROJECT SCHEDULE 1 . Acquisition, rehabilitation or reconstruction of first home by January 31, 2000. 2. Acquisition, rehabilitation or reconstruction of second home by March 31, 2000. 3. Acquisition, rehabilitation or reconstruction of third home by July 31, 2000. CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-99-MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on November 9, 1999, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC) will enter into a contract with the City for HOME funds totaling ONE HUNDRED TWENTY-SIX THOUSAND AND N01100 DOLLARS ($126,000); WHEREAS, the HOME allocation of ONE HUNDRED TWENTY-SIX THOUSAND DOLLARS ($126,000) will be used to provide home buyers' assistance for up to ten (10) existing . homes in neighborhoods targeted for revitalization. WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. provides various services to eligible families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; SAS, the Statewide Consolidated Community Development Corporation, Inc. will secure the financial match requirements for the M-99-MC-48-0201 HOME grant. The financial funding match requirement totals Fifteen Thousand Seven Hundred Fifty Dollars and no/100 ($15,750); NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized Chairman, do hereby covenant and agree as follows: 1 IN WI'T'NESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 9. THE CITY OF BEAUMONT-o O X41+, ATTEST: By: R t A. Riley �it Barbara Liming City Manager kkk%tom . �: Deputy City Clerk THE SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Albert J. M&, Sr. Antoinette Hardy President Director EXHIBIT "A" 1. Mortgage principal buy down, down payments, closing costs, and eligible project costs to construct up to eleven (11) new homes in low income neighborhoods including development fees. $247,500 2. Projected related soft costs 15,000 TOTAL PROGRAM BUDGET $262,500 PROJECT SCHEDULE 1. Construction of up to eleven (11) new homes will begin on/or before May 31, 1999. 2. Construction will be completed by October 31, 1999. 3. Homes closed and occupied on/or before November 30, 1999. 8 EXHIBIT "B" CITY OF BEAUMONT NEW CONSTRUCTION - LOW INCOME NEIGHBORHOODS Design Criteria Floor plans designed for new construction in low income neighborhoods shall comply with a simple design criteria and minimum specifications: * Floor plan width shall range from thirty (30) to forty (40) feet and shall be no more than fifty (50) feet in length. * Floor plan layouts shall range from three(3) bedrooms and two (2) baths with 1200 sq. ft. living area to four bedrooms and two (2) baths with 1400 sq. ft. of living area. * Average length of driveway shall be thirty-five(35) LF in length X ten (10) LF in width. * Walkway length may vary from (4) feet in width and three and one- half(3 %") inches in thickness. Please refer to attachments for other design criteria. If we can be of further assistance please feel free to contact Irven Chavis at the City of Beaumont- Community Development Division at(409) 880-3763. SECTION I - SITE WORK 1. CLEARING: - Remove all trees,bushes, and vegetation in the area of construction within 10'- 0" outside the building periphery. Remove all roots and debris from this area and fill with select fill material. Remove all grass, paving, etc. 2. EARTHWORK AND FILL: Shape and grade site to provide positive surface drainage from rear property line to front curb. The building area shall be stripped of ALL vegetation, concrete and any underlying poor quality fill. Any roots larger than one-half inch in diameter shall be grubbed, and all soft areas in the subgrade shall be excavated to firm soil. Fill shall be 60/40 clay and sand fill, 6"to 8" and compacted to 95% standard proctor density. 3. TERMITE TREATMENT: Prior to placement of 6 mil polyethylene vapor barrier,soil area under the building shall receive termite treatment by a licensed professional pest control operator using termiticides which bear a federal registration number of the U.S. Environmental Protection Agency. Termiticides used may be Chloropyrifos ("Dursban TC") or Permathrin ("Dragnet", "Torpedo") or approved equal. Pest control applicator of the above shall furnish to the owner a Certificate of Warranty for each building,certifying that the applied soil termiticide treatment will prevent infestation of subterranean termites for a period of(5) five years. 4. LANDSCAPING ALLOWANCE: The entire lot shall be sprigged with St. Augustine grass and watered. Landscaping shall also include shrubbery. SECTION I-A - FOUNDATION 1. All concrete shall test 2500 p.s.i. at 28 days. Waterproofing shall be of 6 mil. polyethylene with a minimum of a 12" lap. Fill shall be of a quality grade 60/40 clay sand mix minimum 8" in depth or as required and to be compacted to a 95% standard proctor density. 2. Muumum re-bar size shall be 5/8" re-bar, 5-re-bar per exterior beam, 4- re-bar per interior beam. . All re-bar must be bent to make corner bends on both exterior and interior beams. No hot bends will be permitted. Grade beam re-bar shall be supported by a minimum 6" x 6", #6 ga. cut mesh stirrup no less than 36" on center. Minimum beam depth interior and exterior shall be no less than 20" with a minimum of 8"into undisturbed soil. Slab height is to be established as 12" above natural ground level. Beam width shall be 12" at the bottom of the beam sloping to•15" at top. When it is necessary to have deeper or wider grade beams than the minimum, additional reinforcement shall be installed as required. Minimum slab thickness shall be 3 - '/z", reinforced with 6 x 6, 96 x 96 welded wire mesh(mats only). Wire mesh must be lifted into middle of slab during pouring. When slab preparation is complete, an 1 -- _ inspection must be made, and work approved, by a duly authorized representative of the City of Beaumont,prior to placement of concrete. '/2" x 6" anchor bolts shall be placed along the perimeter of the building a maximum of 5' on center. SECTION H - MASONRY 1. MASONRY WORK: Exterior face brick shall be selected from range of"King Size" clay fired brick units using an allowance of$235/M, Brick shall be installed by experienced tradesmen using Type S mortar. All units shall be set level and plumb with full bed and head joints. Joints shall be tooled concave. Care shall be taken to assure that head joint weeps are placed at maximum 24". Upon completion and curing of brickwork, it shall be thoroughly cleaned of dirt and loose mortar using a stiff brush with detergent and water. After brick work has thoroughly dried, it shall be given a coat of PRIM-A PELL 200 water repellant in accordance with manufacture's instructions. Care shall be taken to prevent mortar droppings from entering and blocking or bridging the cavity between the back of masonry and sheathing. Continuous plastic flashing(damp course), equal to "Nervestral HD", shall be installed at the brick ledge. Extend plastic flashing up behind exterior sheathing a minimum of 5". 2. MASONRY STYLE: Contractor shall provide three separate styles of"King Size" brick along with exterior trim color scheme for each separate style. Styles shall be organized on the building site where no two adjacent residences will have the same style brick or color scheme. SECTION III - WOOD FRAMING: 1. MATERIAL GRADES: Minimum grade for exterior wall and partition framing shall be stud grade or better. Size shall be 2" x 4", spacing shall be 16" on center. All toe plates shall be factory pressure treated. 2. CEILING FRAMING: Minimum grade not less than #3, minimum size 2" x 6", maximum spacing shall be 20" on center with 2" x 6" strong backs set at the middle of spans over 12'. 3. ROOF FRAMING: Grade not less than#3, minimum size 2" x 6", maximum spacing 20" on center,bracing shall be 2" x 4"-40" on center,2"x 4" collar ties and pearling. All ridges and hips shall be minimum 2" x 8". 4. ROOFS: Decking shall be V2" x 4' x 8' C.D. plywood with h clips. Roofing shall consist of minimum 215#/SQ Class"A",fungus resistant, fiberglass composition shingles with 3 tab shingle seal tabs installed over 15# building felt underlayment. Shingles shall be installed with a maximum 5" exposure and matching hip and ridge units, with a minimum of six(6)fasteners per shingle. Granule color shall be as selected by the owner from the full line available from the manufacturer. Contractor shall provide to the owner the manufacture's written 20 year warranty. 2 Metal flashing(where required)shall be galvanized steel and where exposed shall be painted to match adjacent surfaces. Edge strip shall be 26 ga. galvanized. 5. FRAMING ANCHORS: Placement of corner bracing and all framing anchors shall comply with State Board of Insurance windstorm specifications. SECTION IV - DRYWALL 1. DRYWALL: Interior finish of all exterior walls, and all interior partitions shall be sheathed with V2" inch thick gypsum wall board applied vertically,and with all joints taped and floated smooth. Wall board shall be attached to studs with galvanized 13/8" long nails at a maximum spacing of 8" inches o.c. Ceding shall be sheathed with V2"thick gypsum board panels nailed at maximum 7" inches o.c. Exposed gypsum board corners shall be reinforced with#118 continuous corner bead. All exposed gypsum board will be textured with a medium:splatter drag pattern and painted. SECTION V - DOORS 1. EXTERIOR DOORS: Exterior doors,and garage passage door, shall be 13/4"insulated metal doors. See floor plan for size. Wood frames shall have concealed metal reinforcement at latch/lock point. All exterior doors will be provided with a separate dead-bolt lock nn a standard lockset to be keyed alike. 2. INTERIOR DOORS: Shall be as scheduled and sized as noted on the floor plan. Each interior door shall be 13/8" flush panel hollow core with paint grade mahogany veneer faces. Each door will be hung in a wood frame with wood trim and one pair of butts and latch or lock hardware as scheduled. All wood doors and frames shall be primed and given two coats of enamel. 3. PATIO DOORS: Patio doors shall be 6'double insulated safety glazed glass. 4. GARAGE DOOR: Steel (painted) SECTION VI - WINDOWS 1. WINDOWS: All windows shall be insulated, single hung aluminum with positive locking hardware, adjustable balances, protective weatherstripping and positive sealing at meeting rail. Windows shall be equal to ALENCO 380, and shall be supplied with removable insect screens. Windows shall be sized as noted on the elevations. 3 _ SECTION VII - CABINETS 1. CABINETS: Cabinets shall be of stained grade birch plywood, kitchen tops shall be plastic laminate, bath tops of a plastic laminate, hardware allowance will be standard. All nail holes and joints in cabinets shall be puttied as to provide smooth exterior finish and stained in medium mahogany finish and sealed. Prefabricated cabinets are not acceptable. Kitchen tops shall be constructed of 3/4" plywood with formica roll back to upper cabinets. Tops shall cover base unit with a minimum of 2" overhang. Prefabricated kitchen tops are not acceptable. SECTION VIII - PLII BIN „ 1. PLUMBING: . All plumbing work shall conform, as a minimum to the City of Beaumont Plumbing Code and all piping, both supply, drainage and venting, shall be sized in accordance with the National Plumbing Code. Preference shall be given to the City ofBeaumont Code where different from the National Code. All supply piping shall be seamless copper tubing. Sanitary drains and venting may be schedule 40 PVC as permitted by the Plumbing Code. All supply piping running in exterior walls or attic shall be insulated with formed fiberglass insulation and vapor barrier jacket. Exterior hose bibs shall be freeze-proof. All fixtures and plumbing appliances shall be provided with stops on the supply at each fixture. City water service shall be supplied through a 5/8" meter furnished and installed by the City ofBeaumont. Contractor is responsible for extending service from meter to building. 2. FIXTURES: TYPE MANUFACTURER Water closet Gerber 21-202 Fiberglass tub Aqua Glass AG6081-T Lavatory Gerber 12-844 Kitchen sink Kingsford K23322-4 Water Heater 40 Gal. Rheem Electric Hose Bibb Woodford#25 Clean Out Schier 4" Faucets Delta or equal 3. WATER, SEWER-TAPS,BUILDING PERMITS: Contractor shall be responsible for obtaining all required permits and inspections. The fee for these permits shall be waived. 4 - SECTION IX - FLOORIN T 1. VINYL FLOORING: All flooring, throughout all dwellings, shall be FHA approved vinyl at an allowance cost of$1.05 per sq. ft. (installed). Contractor shall provide a minimum of three flooring designs, to be approved by the Owner. 2. CARPET: Wall to wall carpet shall be 100%nylon with minimum 2% face weight. Padding to have minimum thickness of%". Include metal thresholds wherever carpeting stops. All carpet and pads shall be FHA approved. Contractor shall provide a minimum of three flooring designs, to be approved by the Owner. SECTION X - ELECTRICAL 1. ELECTRICAL WORK: Electrical work and appliances, fixtures, panels, and devices installed in this work shall be in strict conformance with the National Electrical Code and the Electrical Code for the City of Beaumont. All fixtures, devices, panels, and appliances shall bear the Underwriters Label. All conductors shall be copper. The electrical contractor will coordinate with the Utility Company to provide temporary poles for construction and for the timely hook-up of power to the building; and arrange for same. All breakers in the electrical panel shall be labeled (typewritten). Electrical service shall consist of a minimum 150 amp single phase 115/230 volts, 3 wire overhead service to a weather head and meter can. Service entry will be connected to a minimum 12 circuit 1 phase with a 125 amp MLO and 100 amp feed from line. Where service meter is located on outside of structure, breaker panel shall back up to meter on inside of structure. 2. LIGHTING/TELEPHONE/CABLE JACKS: A minimum of three telephone outlets per dwelling shall be installed, one in the Family Room, one in the Master Bedroom and one in the Kitchen. Two television cable outlets shall be installed, one in the Family Room and one in the Master Bedroom of each dwelling. SECTION XI - KITCHEN EQUIPMENT I. APPLIANCES: Contractor furnished and installed appliances include the kitchen range/oven and range hood as noted on the drawings. Range/oven shall be a floor mounted slide in electric range/oven combination in standard color as selected. Vent from electric vent hood shall extend through the roof and terminate with a galvanized weather cap. 2. DRYER VENTS: Dryer vents shall be located in proximity of washer and dryer. See plans. 5 -` SECTION XII - FINISH CARPENTRY 1. MATERIALS: Softwood lumber shall comply with PSI-74 and applicable grading and inspecting agency for species and product indicated. Finger jointed glued up or solid stock may be used at contractor's option. Finish lumber shall be "B" and "Btr", Y.P., or "C" grade W.P. with a maximum 12% moisture content. Softwood plywood shall provide APA graded panels and complying with PSI/ANSI A199.1. Exterior plywood shall be exterior grade for all thicknesses. Cedar textured 1-11 plywood shall be a minimum 5/8" thick with grooves at 4" o.c. 2.- INSTALLATION: Install finish carpentry work plumb, level, true and straight, with no distortions. Shim as required using concealed shims. Scribe and cut finish carpentry items to fit adjoining work Anchor finish carpentry work securely to supports using concealed fasteners and blind nailing where possible. Install with minimum number of joints possible, using full length pieces from maximum length lumber available. Cope at returns, miter at corners to produce tight fitting joints. Use scarf joints for end to end joints. Base trim shall be 3" paint grade with 1/4" round sole. SECTION XIII - HVAC WORK 1. HVAC SYSTEM: The-system shall consist of a minimum 2 ton electrical powered cooling unit with a minimum 15K heat strip electrical heating system. The system shall be designed to provide,as a minimum,75°F cooling at 95°F ambient outside temperature, and-70°F heating at 15° F ambient outside temperature. Controls shall be by electronic thermostat located where noted on the drawings. All duct work shall be constructed of rigid fiberglass with aluminum vapor barrier. Joints will be stapled and taped with aluminum foil tape manufactured for this purpose. The use of"Flex-duct" will NOT be permitted. Ducts will be provided with dampers, turning vanes, and extractors as recommended by ASHRAE. Air handlers shall be installed with condensate which shall drain into the domestic waste system. All air handlers shall be closet models unless otherwise noted. All return air shall be through filtered grill with replaceable type filters. Outside section of cooling unit shall be placed on]eve(concrete slab with refrigerant lines placed so as to be protected from damage by mowing of lawn..Cooling unit shall have a minimum SEER of 9.0. Units, both heating and cooling, shall be manufactured by TRANE, ARCO AIR, RUUD, CARRIER, or LENNOX. HVAC subcontractor shall be licensed,or franchised by the manufacturers of the units, and shall install it in accordance with the manufacture's instructions. Manufacturer's warranty hall b f ty e or a minimum of five years on the compressor, and one year on all other arts of Y P the system. 6 — _ Any bath not placed on an outside wall,with no window ventilation, must have an exhaust fan, ducted through the roof. SECTION XIV - DRIVEWAYS AND WALKS 1. CONCRETE: All sidewalks shall be 4"thick,36"wide concrete reinforced with#10 WWM. All driveways shall be 4" thick concrete reinforced with #10 WWM with redwood expansion joint at property line. Provide#6 WWM reinforced from property line to street tie-in. Drive to be 10' wide. All drives shall-be extended 35'to the edge of street pavement. SECTION XV - INSULATION 1. ATTIC INSULATION: Furnish and install over entire attic area above conditioned space fiberglass or mineral wool insulation to provide a temperature resistance value of R-30 (total). Install continuous ridge vent 2'shorter than ridge length. Also install continuous soffit vent on rear, left and right elevations. 2. WALL INSULATION: Furnish and install in all exterior walls a minimum 3/4" thick polyisocyanurate insulating sheathing with aluminum foil facer on each-face. Seal any penetrations or holes. Furnish and install a minimum 3 '/" thick fiberglass or mineral wool batt insulation(R-1 1) with paper backing in all exterior wall stud space. 3. POLYSEAL: Polyseal all bottom plates,-exterior corners and tees, windows, exterior doors, and holes in top plates which penetrate through to attic. SECTION XVI - PAINTING 1. PAINTING: It is the-intent that all exposed wood, metal(except aluminum, stainless steel and factory coated panels) and gypsum board shall be protected with a paint or stain finish unless otherwise noted. Finishes shall be a minimum of 2 coats over primer of GLIDDENS, OLYMPIC,. PPG,MARTIN SENOUR,KUHNS, SHERWIN-WILLIAMS, or BENJAMIN MOOR, PAINTS or STAINS, appropriate for the surface and in color selected by the owner. Deliver paint materials in sealed original labeled containers, bearing manufacturer's name, type of paint, brand name, color designations and instructions for mixing and/or reducing. Painting may r=be accomplished unless moisture content of surface is 12% or less and air temperature is 40°F or above. 2. PAINT SCHEME: New interior plywood, wood doors, door trim, moldings, wood window frames, etc., shall be properly sanded,primed, lightly sanded and given two (2) coats of semi- gloss enamel with a light sanding between coats. Paint to be off-white in color. 7 = Gypsum board shall be textured with medium splatter drag and painted with two (2) coats of latex wall paint color off-white. Metal surfaces to be painted shall be prepared in accordance with the paint manufacturer's recommendations, primed and given a minimum of two (2) coats of exterior enamel. Exterior wood siding shall be primed and given two (2) coats exterior latex house paint(low luster). Contractor shall present three(3) color schemes. SECTION XVII - TOILET& BATH ACCESSORIES 1. INSTALLATION: Install in most convenient location in each bath chrome plated towel bars, paper holders, hooks, etc. Plate glass mirrors, full length of bath vanities shall be installed in all baths. SECTION XVITI - WARRANTIES AND GUARANTEES: 1. GUARANTEE: The general contractor, prior to final payment, shall provide his own written guarantee direct to the owner warranting all work included in his contract for a period of ONE(1) year after final completion and acceptance of his work. 2. WINDSTORM: Contractor shall bear the cost of windstorm insurance inspection service and provide owner with Windstorm Inspection Certificate. SECTION XV - ENERAL 1. GENERAL: Each item of material and equipment shall equal or exceed that described or indicated. All work shall be performed in a workmanlike manner, and in accordance with the best building standards. Contractor is held directly responsible for all work done by sub-contractors. 2. MISCELLANEOUS: All items not covered under notice to bidders or dwelling specifications but noted on plans shall be required. All construction should conform to accepted building practices for the area. a:dwespec.wpd/rev.10-09-97 8 - 3 November 9, 1999 Consider approval of a contract between the City of Beaumont and the Charlton- Pollard Neighborhood Association, Inc. A~, City of Beaumont Council Agenda Item � � c TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council approval of a contract'between the City of Beaumont and the Charlton-Pollard Neighborhood Association, Inc. in the amount of$145,000. RECOMMENDATION Administration recommends that Council authorize the City Manager to execute a contract with the Charlton-Pollard Neighborhood Association, Inc.(CPNA) in the amount of$145,000 using funds reprogrammed from the 1998 CDBG Program. BACKGROUND On October 26, 1999, the Economic Development Department reviewed proposals relating to the FY 2000 Housing Program with City Council. The Administration and the CPNA are prepared to move forward with a contract which will establish the CPNA as a Community Housing Development Organization (CHDO). Funds will be used to acquire and rehabilitate three houses ($120,000) for lease or sale to low to moderate income families. Funds would also be provided ($25,000) for administrative and operating costs. BUDGETARY IMPACT These funds were previously budgeted for Charlton-Pollard Economic Development - $100,000 and Street Improvements - $45,000. The funds for the Charlton-Pollard Economic Development can be replaced in the 2000 CDBG Program. This is a specific request from the CPNA. PREVIOUS ACTION The City has approved similar contracts with Southeast Texas Community Development Corporation and Statewide Consolidated Community Development Corporation. SUBSEQUENT ACTION None RECONEM ENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director, Planning Manager, Housing Coordinator, and Grants Administrator. RECOMMENDED MOTION Approve/Deny authorization of the City Manager to execute the contract with Charlton-Pollard Neighborhood Association, Inc. in the amount of$145,000 to acquire and rehabilitate three (3) houses and provide administrative/operating costs. CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a Community Development Block grant (CDBG) from the United States Department of Housing and Urban Development (CDBG Program No.B-98-MC-48-0003); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on November 9, 1999, the Charlton-Pollard Neighborhood Association, Inc. (CPNA) an authorized Community Housing Development Organization (CHDO) will enter into a contract with the City for CDBG funds totaling ONE HUNDRED FORTY-FIVE THOUSAND AND NO/100 ($145,000); WHEREAS the CDBG allocation of NE HUNDRED UNDRED FORTY-FIVE THOUSAND AND NO/100 ($120,000) will be used for the purpose of acquiring and rehabilitating three houses for lease or sale to low to moderate income families. Funds would also be provided ($25,000) for administrative and operating costs. CPNA will obtain surveys, appraisals and title policies on properties acquired. Properties are to be used to provide decent, safe and sanitary housing for low and moderate income families. City staff shall supply technical assistance necessary to administer acquisition, title work, surveys, appraisals and rehabilitation. 1 WHEREAS,the City of Beaumont and the CPNA desire to enter into a contract and agreement whereby the City of Beaumont will furnish said federal CDBG grant funds to the CPNA for the purpose of acquiring and rehabilitating properties in low income neighborhoods. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Stephen J. Bonczek, its duly authorized City Manager, and the Charlton-Pollard Neighborhood Association, Inc., hereinafter referred to as "Grantee", acting by and through Eugene Sam, its duly authorized President, do hereby covenant and agree as follows: 1 . Grantee, located at 825 Jackson, shall use the Federal 1998 CDBG grant funds, herein provided, to acquire and rehabilitate three houses for lease or sale to low to moderate income families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this agreement exceed the total sum of $145,000. 3. Funds to be available through the City's draw process on or after the effective -date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 2000. Payment shall be made by the U.S. Treasury, who will disburse 1998 CDBG funds (wire transfer) through Cash Management Information System (CM/1) directly to the City, who will make payments upon receipt of invoices from Grantee certifying that all requirements- have been met. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City of Beaumont. 4. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent. 3 5. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal grant funds under the United States Department of Housing and Urban Development (CDBG Program No. B-98-MC-48-0003) and that all monies distributed to or in behalf of ,Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 6. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said CDBG Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this agreement. The CPNA will provide an acceptable audit engagement letter for the 1999 Audit Report to the City of Beaumont by January 31, 2000. The completed 1999 Audit Report will be provided to the City of Beaumont by May 31, 2000. The audit fee will be paid to the auditor directly from 4 other City funds. Failure to complete the audit report by May 31, 2000 may result in contract termination. 7. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all ,reasonable times to the offices, premises and records of Grantee in regard to the administration of this contract. 8. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 9. 5 i 0 Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas. 10. No officer, employee or member of Grantee or Grantee's subcontractors shall .have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee, with the exception of the service fee on a per unit basis from grant for the administration of this contract. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 11 . No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no CDBG funds shall be used, either directly or indirectly, for religious purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 12. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of 6 Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the CDBG Program under which these funds are granted. 13. The provisions of this agreement are severable and if for any reason a clause, ,sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 14. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 15. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 16. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for 7 property loss or damage and/or personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non- performance of this contract and agreement and/or the operations, activities and services of the program described herein, whether or not caused, in whole or in part, ,by alleged negligence of officers, agents, servants, employees, contractors, or sub- contractors of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Stephen J. Bonczek Barbara Liming City Manager City Clerk THE CHARLTON-POLLARD NEIGHBORHOOD ASSOCIATION, INC. ATTEST: By: Eugene Sam Joe Williams President Vice-President 8 "EXHIBIT A" PROGRAM BUDGET I. Acquire and rehabilitate three (3) houses $120,000 2. Administrative and operating costs 25.000 TOTAL PROGRAM BUDGET $145,000 PROJECT SCHEDULE First house completed by March 31, 2000 Second house completed by June 30, 2000 Third house completed by September 30, 2000 9 4 November 9, 1999 Consider approval of an extension of the contract between the City of Beaumont and Southeast Texas Community Development Corporation City of Beaumont Council Agenda Item TO: City Council .FROM: Stephen J. Bonczek, City Manager PREPARED BY: Richard Chappell, Housing Coordinator MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 1, 1999 REQUESTED ACTION: Council approval of an extension of the contract between City of Beaumont and Southeast Texas Community Development Corporation. RECOMMENDATION Administration recommends that Council grant an extension of the contract in the amount of $262,500 to commit all funds by June 30, 2000. BACKGROUND On September 22, 1998, the City entered into a contract with Southeast Texas Community Development Corporation (SETCDC) in the amount of$262,500, as referenced in Resolution No. 98-260, for the development of eleven (11) new homes in the City of Beaumont's low income neighborhoods to provide decent, safe and sanitary housing for low to moderate income families That contract has an expiration date of December 31, 1999. The SETCDC has identified home buyers and is prepared to begin construction on five of the eleven houses. BUDGETARY IMPACT These funds were previously budgeted from the 1998 HOME Program. There is no additional budgetary impact. PREVIOUS ACTION The City has approved similar contracts and extensions in previous years. The SETCDC has assisted first time home buyers with the purchase of twenty-nine (29) newly constructed homes in neighborhoods targeted for revitalization. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Executive Assistant to the City Manager/Economic Development Director, Planning Manager, Housing Coordinator and Grants Administrator. RECOMMENDED MOTION Approve/Deny extension of the contract with Southeast Texas Community Development Corporation in the amount of $262,500 until June 30, 2000 to develop eleven (11) new homes in targeted neighborhoods. SOUTHEAST TEXAS COMMUNITY DEVELOPMENT CORPORATION, INC. Enhancing the Community through Pmpk,Health,Education,Ecommnk Deudopm"t.Hoea:ing, Environment,Criminal justia.l& EmF'IOye"E1t .O.Box 1789 Beaumont,Texas 77704 (409)835-7527 October 20, 1999 A 25 2623�� Mr.Steve Bonczek T, PP, OCT :� U, C City Manager City of Beaumont c ei'el w" me�_ J " `' a �� P.O.Box 3827 Beaumont,Texas 77704 Dear Mr.Bonczek: This letter is in reference to Contract No. 10, in the amount of$262,500,as referenced in Resolution Number 98-260,dated September 22, 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,the Southeast Texas Community Development Corporation,Inc.would like to request an extension to commit all funds by June 30,2000. Please be apprised that SETCDC has purchased 7 of the 1 i lots for this contract. The remaining four(4)lots will be purchased within two(2)months. The construction on the 7 lots will commence within thirty(30)days. SETCDC is identifying interim construction funds to construct the 11 homes.for this contract. We respectfully request your approval. Your assistance and approval in this matter is greatly appreciated. Sincerely, Albert J.Price President cc: Richard Chappell Agreed and Accepted: Steve Bonczek,City Manager Date SOUTHEAST TEXAS COMMUNny DEvEWPMENT CORPORATION,INC.is an indepenelmt,mmPardna,wx-exemPt,non-Profit corparatio BEAUMONT PORT ARTHUR ORANGE OTHER SOUTHEAST TEXAS COMMUNITIES Lip CONTRACT f qV THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-98-MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number 98-260 passed by the Beaumont City Council on September 22, 1998, the Southeast Texas Community Development Corporation, Inc. (SETCDC) an authorized Community Housing Development Organization (CHDO) will enter into a contract with the City for HOME funds totaling TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($262,500); WHEREAS, the HOME allocation of TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND N01100 ($262,500) will be used for the development of up to eleven (11) new homes in the City of Beaumont's low income neighborhoods. New construction will provide decent, safe and sanitary housing for low and moderate income families. Funds may be used for home buyer's assistance to include, but not limited to down payment, mortgage principal buy down, closing costs, pre-development or any eligible expenses. SETCDC will be allowed a developer's fee of FOUR THOUSAND DOLLARS ($4,000.00) per house to cover the cost of acting as developer, general contractor, finance counselor, and general support for site development, construction and sale of homes, which includes qualifying home-buyers; WHEREAS, the SETCDC provides various services to low income and moderate income families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; WHEREAS, the SETCDC will secure the financial match requirements for the M-98- MC-48-0201 HOME grant. The financial funding match requirement totals $32,813.00; I 1 NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenants, promises, and agreements contained herein, the City of Beaumont, hereinafter referred to as "City", acting by and through Ray A. Riley, its duly authorized City Manager, and the Southeast Texas Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Albert J. Price, Sr., its duly authorized President, do hereby covenant and agree as follows: 1. Grantee, located at 1190 Grand Street, shall use the Federal 1998 HOME grant funds, herein provided, to construct single-family housing units for sale to low to moderate income families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to low and moderate income persons. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or on behalf of the Grantee pursuant to this agreement exceed the total sum of TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND NO 1100 DOLLARS ($262,500). 3. The City agrees to provide Grantee with TWO HUNDRED SIXTY-TWO THOUSAND FIVE HUNDRED AND NO 1100 DOLLARS ($262,500) of 1998 HOME grant funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on December 31, 1999. Payment shall be made by the U. S. Treasury, who will disburse 1998 HOME funds (wire transfer) through Cash Management Information System (CM/0 directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee certifying that all requirements have been 2 met. Grantee understands and agrees that project activities (construction) must be committed (an acceptable Project Set-up Report is entered into the CM/I) by December 31, 1999. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. It is expressly understood and agreed by and between the City and Grantee that funds will be used for (a) cost related to the development and construction of up to eleven (11) new houses in the City of Beaumont's low income neighborhoods and (b) for home buyer's assistance to include but not limited to mortgage principal buy down, closing costs, pre-paid or other eligible expenses. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City. 4. If construction cannot be commenced by its start date as set out in "Exhibit A": SETCDC shall notify the City in writing at least 30 days prior to the commencement date of the specific nature of the events that prevent the commencement of construction. The City shall either approve a new commencement date or deny the request for extension. The decision of the City's representative shall be final. If a new start date is not approved funds allocable to the structure will be removed from the contract and SETCDC will be required to deed to the City any real property provided. Homes to be constructed under this contact will meet or exceed the design criteria and specifications as set out in "Exhibit B". Variations from "Exhibit B" should be approved in writing by the City's representative. Quality and affordability shall be the criteria used to determine whether a requested variance will be approved. 5. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City. Grantee further understands and agrees to and shall transfer to the City any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent, or this contract is terminated. 3 6. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal HOME grant funds under the United States Department of Housing and Urban Development (HOME Program No. M-98- MC-48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 7. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SETCDC will provide an acceptable audit engagement letter to the City by January 31, 1999. The completed 1998 audit report will be provided to the City by April 30, 1999. The audit fee will be paid directly to the auditor from other City funds. Failure to complete the audit report by April 30, 1999 may result in contract termination. 8. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this _. Contract. 9. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely 4 responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 10. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to low and moderate income families of the City of Beaumont, Jefferson County, Texas by constructing new homes in the City of Beaumont's low income neighborhoods for sale. It is understood that Grantee adheres to HOME affordability requirements. 11. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee, with the exception of the development fee on a per unit basis for the completion of this contract. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City. 12. No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful or violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City. 13. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, 5 including all ordinances, and rules and regulations of the City, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 14. The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 15. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 16. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or - written agreement which purports to vary from the terms hereof shall be void. 17. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and/or personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and/or the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. 6 5 November 9, 1999 Consider approval of a five year contract with Andy Hebert for the operation of the Henry Homberg Golf Course with an option to renew for an additional five years ! ...... City of Beaumont �• Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Luke Jackson, Director, Parks&Recreation Department MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council to authorize the City Manager to execute a service contract with Andy Hebert for the operation of the Henry Homberg Golf Course for five years with an option to renew for an additional five years. RECOMMENDATION The administration recommends the awarding of a contract for five years with an option to renew for an additional five years, effective January 1, 2000. BACKGROUND Existing contract was awarded in 1995 for five years, expiring December 31, 1999. Andy Hebert, who is the golf pro at this golf course, is wanting to continue to operate this facility and is willing to make improvements. He will provide complete reconstruction of the greens with tiff dwarf grass putting surface built to U.S.G.A. specifications and the tee boxes will be reduced in height and every hole would have two separate tee boxes. Improvements of this nature will require that nine holes of the golf course would be out of service for approximately four to five months or until improvements are completed. These improvements are estimated to cost $600,000 paid for by Andy Hebert of the Henry Homberg Golf Course. When the improvements are complete, it is expected that the green fees will be raised from the current weekday fee of $8 and $9 on weekends, to $9 weekdays and $11 on weekends. The senior membership would increase from $200 tax included, to $250 plus tax. During the term of the existing contract Mr. Hebert has paid the City$2,500 per month plus 5% of the gross receipts collected in the operation of the Henry Homburg golf course subject to a minimum of$60,000. Council Agenda Item 0 Page 2 November 3, 1999 BUDGETARY IMPACT None PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager and Parks and Recreation Department Director RECOMMENDED MOTION Approve/Deny authorizing the award of a five year contract with an option to renew for an additional five years with Andy Hebert, Golf Pro, Henry Homburg Golf Course, in Tyrrell park, effective January 1, 2000. ! 6 November 9, 1999 Consider a resolution to provide for the reimbursement of costs incurred prior to issuance of revenue bonds or other tax exempt obligations to finance the expansion, repair, renovation and related improvements to'the water and sewer system • ...... City of Beaumont Council Agenda Item TO: City Council FROM: Stephen J. Bonczek, City Manager PREPARED BY: Beverly Hodges, Finance Officer MEETING DATE: November 9, 1999 AGENDA MEMO DATE: November 3, 1999 REQUESTED ACTION: Council consider a resolution to provide for the reimbursement of costs incurred prior to issuance of revenue bonds or other tax exempt obligations. RECONUdENDATION The administration requests approval of a resolution concerning the issuance of revenue bonds or other tax exempt obligations to finance the expansion, improvement, repair, renovation and related improvements to the waterworks and sewer system and provide for the reimbursement of costs incurred prior to issuance. BACKGROUND $20,000,000 in Revenue Bonds or other tax exempt obligations is expected to be issued during fiscal year 2000 to fund various improvements related to the waterworks and sewer system. It is necessary to incur some of the costs associated with these projects prior to the issuance of the bonds. It is the intent of the City to reimburse itself out of the proceeds of the bonds for all such costs which are paid prior to issuance. These costs shall include fees paid for engineering and other professional services, acquisition costs associated with obtaining materials and property and construction and development costs. BUDGETARY IMPACT All debt and other expenses shall be incurred by the Water Fund which is supported by water and sewer revenues as generated through user fees. PREVIOUS ACTION None. SUBSEQUENT ACTION 0 Subsequent Council action will be requested to approve the to issuance of$20,000,000 in Revenue Bonds or other tax exempt obligations. RECOMMENDED BY City Manager and Finance Officer RECOMMENDED MOTION Approve/Deny resolution concerning the issuance of revenue bonds or other tax exempt obligations to finance the expansion, improvement, repair, renovation and related improvements to the waterworks and sewer system and provide for the reimbursement of costs incurred prior W issuance. RESOLUTION CONCERNING ISSUANCE OF REVENUE BONDS OR OTHER TAX EXEMPT OBLIGATIONS TO FINANCE THE EXPANSION, IMPROVEMENT, REPAIR, RENOVATION AND RELATED IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM WHEREAS, the City of Beaumont, Texas (the "City") desires to expand, improve, renovate, repair and make related improvements to the City' s waterworks and sewer system (the "System" ) located within the City (the "Project") ; and WHEREAS, in order to finance and pay the costs of the Project, the City intends to issue revenue bonds or other tax- exempt obligations in the aggregate principal amount of up to -$20, 000, 000 (the "Obligations" ) , in one or more installments and series, and payable from net revenues of the System and any other -sources pledged to the payment thereof; and WHEREAS, in view of rising construction costs, the necessity of compliance with administrative regulations, the necessity of acquiring materials and other property for the Project and the necessity of employing certain professionals in connection with the development of the Project, it is considered essential and necessary for the City to employ and pay certain professionals, acquire materials and other property for the Project and begin construction of and work on the Project prior to the completion of the issuance of the Obligations; and WHEREAS, it is the City' s intention to reimburse itself out of the proceeds of the Obligations for all expenses and costs paid by the City prior to the issuance of the Obligations that are incurred and paid in connection with the development of the Project, including but not limited to expenses and fees paid for engineering and other professional services, acquisition costs associated with obtaining materials and property for the Project, and construction and development costs associated with the Project; and WHEREAS, the City finds, intends and declares that this resolution and order shall constitute its official binding commitment and official declaration of intent made pursuant to the Internal Revenue Code of 1986, as amended (the "Code") and the regulations pertaining thereto, including but not limited to Treasury Regulation Section 1 . 150-2, whereas, subject to the terms hereof, the City declares that it intends to reimburse itself out of the proceeds of the Obligations for the expenses and costs paid in connection with the development of the Project prior to the issuance of the Obligations, and the City declares its intent and commits to issue the Obligations, in one or more series, in the maximum aggregate principal amount of up to $20, 000, 000 for the purpose of financing the costs of acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing and improvement of the Project, and expenses and costs of the City in connection with the issuance of the Obligations; and WHEREAS, the City Council, on behalf of the City, finds, considers and declares that the issuance and sale of the Obligations in the amount and for the purposes set forth will be appropriate and consistent with the objectives of the City and the laws authorizing the issuance of the Obligations, and that the adoption of this resolution and order is and constitutes and is intended as (1) an inducement to proceed with providing for the acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing and improvement of the Project, and (2) the taking of affirmative official action by the City, acting by and through the City Council, toward the issuance of the Obligations and the reimbursement to the City out -of the proceeds of the Obligations for costs and expenses paid in connection with the Project prior to the issuance of the Obligations, all within the meaning of federal income tax laws and regulations with respect to issuance of tax-exempt obligations; and WHEREAS, the City has given notice of the meeting at which this Resolution is to be adopted as required by the Texas Open Meetings Law, Chapter 551 of the Texas Government Code Annotated Vernon' s 1994, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. Subject to the terms hereof, the City Council agrees on behalf of the City that it will: a. Issue the Obligations in one or more series, after the date hereof to provide for the financing of the Project, in the maximum aggregate principal amount up to $20, 000, 000, if the City Council determines that the terms of such financing are in the City' s best interest; b. Take such action and authorize the execution of such documents as may be necessary in connection with the issuance of the Obligations, providing, among other things, for payment of the principal of, interest on, paying agents ' charges and other fees, if any, on the Obligations, and the acquisition, expansion, renovation, construction, reconstruction, repairs, equipping, furnishing, improvement, use and operation of the Project, all as shall be authorized, required or permitted by law and shall be satisfactory to the City; and C. Take or cause to be taken such other actions as may be required to' implement the aforesaid undertakings or as the City may deem appropriate in pursuance thereof. Section 2 . This resolution and order shall constitute the official declaration of intent by the City pursuant to which the City declares that it intends to reimburse itself out of the -2- proceeds of the Obligations for expenses and costs paid by the City prior to the issuance of the Obligations in connection with the development of the Project, including but not limited to expenses for engineering fees and other professional fees, and costs for acquisition of materials and property for the Project and construction and development costs related to the Project . This declaration is made pursuant to Treasury Regulation Section 1. 150-2 and generally with the laws and regulations of the federal income tax laws governing the issuance of tax-exempt obligations. Section 3 . This resolution and order and the declaration of official intent herein shall be available for public inspection -at all times at the City' s business office and shall remain available for public inspection until the Obligations are issued -and thereafter this resolution shall be maintained as part of the permanent records of the City Council of the City. PASSED AND APPROVED this day of , 1999 . THE CITY OF BEAUMONT, TEXAS By: Mayor ATTEST: CITY CLERK THE CITY OF BEAUMONT, TEXAS (SEAL) -3-