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Home My WebLink AboutPACKET SEP 30 2008 • RICH WITH OPPORTUNITY BEA,UMON* T - E - % - A - S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS SEPTEMBER 30, 2408 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Authorize the settlement of the claim of Prof Dr. Quoc-Nam Tran B) Authorize the approval of Change Order No. 2 for the Main Street Project • C) Authorize the acceptance of a water line easement to provide access for fire protection services at D. J.'s Boudain A • RICH WITH OPPORTUNITY r T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City AttorneyA� MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider a resolution authorizing the settlement of the claim of Prof. Dr. Quoc-Nam Tran. RECOMMENDATION Council approval of a resolution authorizing the settlement of the claim of Prof. Dr. Quoc-Nam "bran. • BACKGROUND Council discussed the settlement of this claim in Executive Session on September 9, 2008. BUDGETARY IMPACT There are sufficient funds in the Liability Trust Fund to pay the amount as shown: Prof. Dr. Quoc-Nam Tran $41,431.15 • • RESOLUTION NO. WHEREAS, the claim of Prof. Dr. Quoc-Nam Tran has been discussed in an Executive Session properly called and held Tuesday, September 9, 2008; 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 Prof. Dr. Quoc-Nam Tran in the amount of Forty-One Thousand Four Hundred Thirty-One and 15/100 Dollars ($41,431.15). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. • - Mayor Becky Ames - RICH WITH OPPORTUNITY Ic'm Ai � T • E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, l�irector of Public Works MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider a resolution authorizing the approval of Change Order No. 2 for the Main Street Project. RECOMMENDATION The Administration recommends approval of Change Order No. 2 in the amount of$42,680.00 for installing 479 LF of 6" conduit (double run) within Broadway Street and Main Street to allow Entergy to convert to underground service. BACKGROUND On December 5, 2006, City Council awarded Brystar Contracting the contract for the Main Street Project in the amount of$6,377,885.59. Change Order No. 1 in the amount of$214,805.00 was approved by Council on August 28, 2007 and increased the contract amount to $6,592,690.59. Change Order No. 2 in the amount of$42,680.00 is for the installation of underground conduit. The conduit is required to assist Entergy in converting to underground service. This Change Order will increase the contract amount to $6,635,370.59. BUDGETARYIMPACT Funds are available in the Capital Program. • CITY OF BEAUMONT DATE: September 23,2008 PROJECT: Main Street(Calder to Blanchette)Brick Pavers OWNER: City of Beaumont CONTRACTOR: Brystar Contracting,Inc. CHANGE ORDER NO. 2 THE FOLLOWING CHANGES IN THE PLANS AND/OR SPECIFICATIONS ARE HEREBY MADE: Install 479LF,6"Schedule 40 conduit(double run)within Broadway Street and ending at intersection of Main Street. CONTRACT TIME NOT EFFECTED BY THIS CHANGE ORDER: 6 GINAL CONTRACT AMOUNT: $6.377.885.59 FROM CHANGE ORDER NO.1 $6,592.690.59 TOTAL AMOUNT OF THIS CHANGE ORDER: $ 42.680.00 PERCENT OF THIS CHANGE ORDER: $ 0.67% TOTAL PERCENT CHANGE TO DATE: $ 4.04% NEW CONTRACT AMOUNT: $6,635.370.59 ACCEPTED BY: CONTRACTOR APPROVED BY: JORIS P.COLBERT,CITY ENGINEER TOM WARNER,DIRECTOR OF PUBLIC WORKS KYLE HAYES,CITY MANAGER �ESTED BY: TINA BROUSSARD,CITY CLERK From:BRYSTAR CONTRACTING 4098421215 08/28/2008 11:01 #028 P.002/002 CONTRACTING, INC. 8385:Chemical Road•Beaumont,Texas 77705 +(409).842-6768 June 9,2008 Mr.Hassan Shomalzadeh,P.E. City of Beaumont P.O. Box 3827 Beaumont,Texas 77704 Re: Downtown Improvements Main Street Project 6"Double Run Electrical Conduit Dear Sir: As per your request the following pricing is submitted for your review and acceptance: 1. Main Street-±85 LF 6"SCH 40(double run)crossing Main St. to corner of Broadway and will be patched w/hot mix. 2. Broadway—Sta. 2+80—3+40 t 60 LF 6" SCH 40(double run)this area is not part of the Broadway brick paving and will be temporarily patched w/cold mix. 3. Broadway—Sta. 1+92—2+80± 88 LF 6"SCH 40(double run)this area is part of . the Broadway brick pavers and completes the 1sT section of conduit. 4. Broadway-t 48 LF 6" SCH 40(double run)crossing Broadway(Sta. 0+82)to be patched w/hot mix. 5. Broadway—Sta. 0+82—Sta. 2+82 t 198 LF 6"SCH 40(double run)this area is part of the brick pavers and completes the 2nd run of conduit. LUMP SUM PRICE: $42,680.00 Please see attached drawing for specified locations. Exclusions: 1. Pull boxes 2. Pull rope inside conduit Should you have any questions please do not hesitate to call. Sincerely, Bryan Phelps, President • RESOLUTION NO. WHEREAS, on December 5, 2006,the City Council of the City of Beaumont,Texas, passed Resolution No. 06-365 awarding a contract in the amount of $6,377,885.59 to Brystar Contracting for the Main Street Project; and, WHEREAS, Change Order No. 1, passed by Resolution No. 07-253 on August 28, 2007, in the amount of $214,805, thereby increasing the contract amount to $6,592,690.59, was required to install a three (3) inch conduit and fiber optic cable on Main, Forsythe, Park and College Streets to serve the Julie Rogers Theater, the Historical Library, Municipal Court, the new Police Property Building, the Downtown Public Library, the Police Station and City Hall; and WHEREAS, Change Order No. 2 in the amount of$42,680.00, thereby increasing the contract amountto$6,635,370.59, is required forthe installation of 479 LF of 6"conduit • (double run) within Broadway Street and Main Street to allow Entergy to convert to underground service; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute Change Order No. 2 in the amount of$42,680,thereby increasing the contract amount to$6,635,370.59,for the installation of 479 LF of 6" conduit(double run)within Broadway Street and Main Street to allow Entergy to convert to underground service. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. • - Mayor Becky Ames - C RICH WITH OPPORTUNITY 11EA,11110tl T e E e x - A o s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager t� PREPARED BY: Tom Warner Director of Public Works MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider authorizing the acceptance of a water line easement. RECOMMENDATION The Administration recommends acceptance of a water line easement to provide access for fire protection services at D. J.'s Boudain at 4840 Lafin Road. BACKGROUND JATH, LTD. has agreed to convey a ten (10) foot wide water line easement to the City of Beaumont. The Water Line Easement [out of the J. W. Bullock Survey] will provide mandatory access to the water lines and fire hydrants for D. J.'s Boudain and would also allow for the construction, alteration, operation and maintenance of the said water lines and appurtenances. BUDGETARY IMPACT None. \engdjs boudian-ib 5 September 2008 • RESOLUTION NO. WHEREAS, JATH, LTD., has agreed to convey a ten foot (10') wide water line easement for property located at 4840 Lafin Road, being out of the J. W. Bullock Survey, Abstract 7, Jefferson County, Texas, as described in Exhibit"A"and shown on Exhibit"B," attached hereto, to the City of Beaumont to provide access for fire protection to D. J.'s Boudain and allow for the construction, alteration, operation and maintenance of the said water line and appurtenances; and, WHEREAS, the City Council has considered the purpose of said conveyance and is of the opinion that the acceptance of said conveyance is necessary and desirable and that same should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: • THAT the easement conveyed by JATH, LTD., as described in Exhibit "A," and shown on Exhibit "B," be and the same is hereby, in all things, accepted. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - • • EXHIBIT A, PAGE 1 OF 2 CENTERLINE DESCRIPTION FOR A 10' WIDE WATER LINE EASEMENT OUT OF THE J. W. BULLOCK SURVEY,ABSTRACT 7 JEFFERSON COUNTY, TEXAS JULY 3, 2008 REVISED: AUGUST 6, 2008 That certain centerline description for a 10'wide water line easement out of the J. W. Bullock Survey, Abstract 7, Jefferson County, Texas, being out of a called 2.514 acre tract conveyed to JATH, Inc, as recorded in Clerks File No. 2004014406 of the Official Public Records of Jefferson County, Texas, said centerline description being more particularly described as follows: Note: The Basis of Bearing is the southwest line of the said 2.514 acre tract having been called North 56 035'39"West 482.80 feet. COMMENCING at a %" iron rod found for the southwest comer of a tract conveyed to Southwestern Bell Telephone Company as recorded in Clerks File No. 2002030657 of the Official Public Records of Jefferson County, Texas, the northwest comer of a called 0.68310 acre tract conveyed to DJ's Boudain as recorded in Film Code 100-78-2594 of the Real Property Records of Jefferson County, Texas, the south comer of a survey called 0.6426 acre • tract from Access Surveyors dated January 28, 2004 and the most easterly corner of the said 2.514 acre tract; THENCE North 36 034'53"West along the southwesterly line of the said 0.6426 acre tract and the northeasterly line of the said 2.514 acre tract a distance of 152.36 feet (called North 36 034'53"West) to a point; THENCE South 53 025'07"West a distance of 5.00 feet to a point for the POINT OF BEGINNING of the said centerline; THENCE North 36 034'53"West a distance of 171.31 feet to a point in a curve to the left in the southeasterly right-of-way line of Texas State Highway 124 (aka Fannett Road) and the northwesterly line of the said 2.514 acre tract for the POINT OF TERMINATION of the said centerline from which a capped iron rod found for the west comer of the said 0.6426 acre tract and the north corner of the said 2.514 acre tract bears a chord bearing and chord distance of North 58 045'49" East 5.02 feet. This Centerline Description is based on a survey performed by Fittz&Shipman, Inc. during March 2004. &O�Z4� Aff Walter J. Ksia a .+1E'O F Registered Profession and Su y r No. 5321 Fittz&Shipman,Inc WALTER J. KSIA,ZEK • Page 1 of 1 r-a2� Project No. 07169WL • .�3 �.• Plat&Description �•`'��SS�t7';� EXHIBIT "A" CLIENT: JATH LTD. G.F. NO. y� EXHIBIT A, PAGE 2 OF 2 II (�G',�S S'T • I SET 1/2" q p \ '` h'A�,gY 4� I IRON ROD C�NNE�Rpq��4 POINT INATION II � c FiCy R M N l CENTERLINE P °2 N 58'45'49" E R I ��ti o°'e ✓.t,� 7�Z?zq �� 5.02 FOUND C2 r CAPPED IRON ROD FOUND M/ CAPPED / IRON ROD 3/ JATH, LTD CLERKS FILE NO. 2004014406, O.P.R.J.C. / (CALLED 2.514 ACRES) I � / I 2 / I / / �o l M SURVEY OF A 0.6426 CENTERLINE I ��/ ACRE TRACT FROM 10 WIDE WATER / 'V'; ACCESS SURVEYORS LINE EASEMENT / 3ry DATED 1-28-04 . h o l POINT OF o I BEGINNING _ l CENTERLINE M C)I S 53'25'07" W =Q w I 5.00 z J W 0® LL • al w S C A L E ° l M hN NOTE: THIS SURVEY WAS COMPLETED WITHOUT a I THE BENEFIT OF A TITLE COMMITMENT. NOT ALL EASEMENTS. WHETHER OF RECORD OR NOT, WERE RESEARCHED AT THE TIME OF THIS SURVEY. COMMENCING POINT FOUND 1/2" IRON ROD NOTE: NOW OR FORMERLY BASIS OF BEARINGS IS THE SOUTHWESTERN BELL TELEPONE COMPANY SOUTHWEST LINE OF THE 2.514 (SAVE &EXCEPT TRACT 4) ACRE TRACT HAVING BEEN CLERKS FILE NO. 2002030657, O.P.R.J.C. CALLED N 56'35'39" W 482.80 a• NUMBER DELTA RADIUS JARC CHORD CHORD BEARING o; o P Cl 02'11'02 3454.74 131.68 131.68 N 59'48'50" E NdlYl CALLED 0211'02" 3454.74 131.68 131.68 N 59'48'50' E C2 0149'29" 3454.74 110.02 110.01 N 5737'11" E CALLED 01'49'29" 3454.74 110.02 110.07 IN 57'37'11'E DESCRIPTION OF SERVICES REQUESTED: 10' WIDE WATER LINE EASEMENT SURVEYOR'S CERTIFICATION: 100 HEREBY CERTIFY, TO THE BEST OF MY KNOWLEDGE AND BELIEF, THAT THIS IS AN ACCURATE PLAT OF A SURVEY&DESCRIPTION MADE ON THE GROUND UNDER MY SUPERVISION, DURING MARCH 2004 THE ABOVE TRACT BEING LOCATED AT TEXAS STATE HIGHWAY 124, BEAUMONT, TEXAS 77705 AND BEING DESCRIBED AS A 10' WIDE WATER LINE EASEMENT OUT OF THE J. W. BULLOCK SURVEY, A-7 AS RECORDED IN VOLUME PAGE OF THE DEED RECORDS OF JEFFERSON COUNTY, TEXAS. 2 REVISION DATE t�OF 7�% • /�.•,.��9n WALTER J. KSIXZltK REGISTERED PROFESSION LAND SUN OR N0. 5321 WALTER J. KSIAZEK DATE: 7-3-08 ' � -ipman •' �.' �"' FIELD INC. ••��gS1a�• BOOK NO.: 04-02 Consr koWE7ygw—and Land Swve)— �,� •.��.0 00 169WLESMT 1405 CORNERSTONE COURT BEAUMONT, TEXAS Su.lw JOB NO.: 07169.0000 (409)832-72 (4 )832-7303 paW RICH WITH OPPORTUNITY BEA,UMON* T • E • X • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS SEPTEMBER 30,2008 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-6/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider approving a request for the disannexation of certain properties owned by ExxonMobil 2. Consider approving a one-year agreement with Blue Cross Blue Shield of Texas for employee medical and dental insurance 3. Consider approving a three-year contract with Cigna for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment (AD&D) and Dependent Life Insurance 4. Consider approving a three-year contract with Cigna effective January 1, 2009 for Long Term Disability (LTD) Insurance 5. Consider granting the City Manager authority to implement contribution rate changes for retirees in the medical plans 6. Consider amending the FY 2008 Budget WORKSESSION * Review and discuss the proposed FY 2009 Budget * Review and discuss the proposed FY 2009 Capital Program * Review and discuss the 2008 (FY 2009) proposed Tax Rate PUBLIC HEARING * Receive comments on the 2008 (FY 2009) proposed Tax Rate, proposed FY 2009 Budget and the proposed FY 2009 Capital Program 7. Consider adopting the FY 2009 Budget 8. Consider adopting the FY 2009 Capital Program 9. Consider ratifying the budgeted property tax increase reflected in the FY 2009 Budget 10. Consider accepting the tax roll and establishing the property tax rate for the tax year 2008 (FY 2009) COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Manager City Attorney City Clerk Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Lenny Caballero at 880-3716 three days prior to the meeting. 1 September 30,2008 Consider approving a request for the disannexation of certain properties owned by ExxonNlobil i RICH WITH OPPORTUNITY I'Em . � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager G S�j PREPARED BY: Chris Boone, Community Development Director MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider a request for a disannexation of property from the City of Beaumont. RECOMMENDATION The Administration recommends approval of the request. BACKGROUND ExxonMobil has applied for the disannexation of property. ExxonMobil has requested disannexation of approximately 7 acres of property within the Charlton- Pollard area of the City of Beaumont. ExxonMobil states that this disannexation will complete the work referenced in the 2002 Agreement between the City and ExxonMobil. In combination with ExxonMobil's 2003 disannexation, this request will enable the company to create a secure perimeter at Sycamore and Carroll Streets. The proposed method of disannexation by ordinance, as outlined in the City's charter, allows for the alteration of boundary limits,provided that such an ordinance is introduced to City Council, published in a daily newspaper and then acted upon at least thirty (30) days later. The ordinance was published in the Beaumont Enterprise on August 6, 2008. ExxonMobil, as sole property owner within the disannexation area, was notified by certified mail on September 3, 2008, of the public hearing on the final passage of the ordinance. At a Joint Public Hearing held June 16, 2008, the Planning Commission recommended approval 6:0:1 of a request for a disannexation of property from the City of Beaumont. At a Public Hearing held July 29, 2008, City Council approved 7:0 the first reading of the disannexation ordinance (Ord. 08-061). BUDGETARY IMPACT None. r . a Y >U J U W� ■ \ ; WO p if 0 2 o�ua.mvasrexG � I�r n9 a mw+im wn+ 9! a 1WGYI s9s a rosxar i7 3 �; ��op�WW,O�1rK.L1.1I0rCNSrvr EC O rw N 5 Fs 1 �4 0 ppvtpA�STRACd �.Y` G 9 10 9 A 8 C D � f rt C, 1 2 J 4 5 6 7 6 9 Z k �, '2 8 1 2 3 4 C S 6 7i ...s 920 �9 41 17 16 15 14 13 12 Val I _ 13 12 11 10 9 1 16 r 15 14 13 12 11 10 91 1 2 3 4 5 6 7 3 4 5 6 7 8■ s t 2 3 4 -5 5 7 B 1 15 14 13 12 11 10 9- � s rz r! rxY< "iO9 aiC"' DOUCETIE AVENUE 1 2 3 4 5 5 L 1 2 3 4 5 6 1 2 3 4 5 6 7 e; E O �a 8 16 IS l4 13 12 11 10 91 16 15 l4 13 12 11 10 96 14 13 1 11 10 9 6 i .'i(x` r.Y'� `l` k wrl ' J 'x'pj{,xffi"s" MADISON AVENUE x�.x o•x x 1 1 2 3 4 5 6 7 8 1 1 2 '3 4 5 6 7 61 11 2 3 4 5 6 7 I F ■ 14 ■ . xx.•w�^^ 1 16 15 1 L 13 12 11 10 9 116 14 13 12 11 10 Z VAN BUREN rz+ / u r z ti Lr W;E ■ 1 2 3 4 5 6 7 8 a 116 15 14 12 11 10 9 ,�� u9RL ta�WIn04�loM o '=O ra�ar rmot. Z n ��,. meru.■xmn.r.u.. ��trx siti" � s .u.i w 1w xAat va..a roc a-9■x..,. °'>�'L:4"'ia.:�,. °Aa uan10d°4sr mr..xr w�ss w iu eip1LLUC — roA9 - +.e.:Di'iY umr rv[ 1 2 3 4 5 6 7 8 �■ji°°'r lrsr■ NOW OR FORMERLY s sssX>f onK MAGNOLIA PETROLEUM COMPANY ynxc on um 1Qx0i�"�u n as ox�s•O �\ ' VVV 0 100 0 F1ttz&3h➢pman TRACTS TO BE DEANNEXED A'EEIN INC.PROJECT NAME: EXXON—MOEII. OIL CORPORATION 1 JEFFERSON COUNTY 1405 CORNERSTONE COURT.BEAUMMM TEXAS TEXAS PRQECT NO. (409)832-7235 FAX(409)632-7303 DATE'5/15/08 02166.0001 1 FIELD NOTE DESCRIPTION FOR A 0.2780 ACRE TRACT FOR THE DEANNEXATION OF A PORTION OF FULTON AVENUE OUT OF THE DAVID BROWN SURVEY, ABSTRACT 5 JEFFERSON COUNTY, TEXAS MAY 8, 2008 TRACT 1-DEANNEX That certain portion of Fulton Avenue, a 0.2780 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, also being out of and a part of Oakwood Addition, a plat recorded in Volume 4 Page 67, of the Map Records of.Jefferson County, Texas, said 0.2780 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a %" iron pipe found at the intersection of the east right-of-way line of Sycamore Street with the north right-of-way line of Fulton Avenue for the southwest corner of Lot 16, Block 16 of said Oakwood Addition and the northwest corner of the said 0.2780 acre tract; THENCE North 89°52'11" East along the said north right-of-way line of Fulton Avenue and the said 0.2780 acre tract being the south line of the said Block 16 a distance of 201.31 feet to a point for the northeast corner of a called 0.0690 acre tract being a portion of Fulton Avenue abandoned in Ordinance Number 03-083 as described in Clerks File No. 2005008148 of the Official Public Records of Jefferson County, Texas, the southeast corner of Lot 13,.Block 16 of said Oakwood Addition and the northeast corner of the said 0.2780 acre tract; THENCE South 00°13'11" East along the east line of the said 0.0690 and 0.2780 acre tracts a distance of 60.12 feet to a point in the south right-of-way line of Fulton Avenue for the northeast corner of Lot 4, Block 23 of said Oakwood Addition, the southeast comer of the said 0.0690 and 0.2780 acre tracts; THENCE South 89°52'11' West along the said south right-of-way line of Fulton Avenue and the said 0.2780 acre tract being the north line of said Block 23 a distance of 201.52 feet to a point in the said east right-of-way line of Sycamore Street for the northwest corner of Lot 1 of said Block 23 and the southwest corner of the said 0.2780 acre tract; THENCE North 00 001'25"West along the said east right-of-way line of Sycamore Street and the west line of the said 0.2780 acre tract a distance-of 60.12 feet to the POINT OF BEGINNING and containing 0.2780 acres (12,108.43 sq. ft.) of land, more or less. Ftttz&Shipman,Inc. Page 1 of 1 02166.Tr1Dx FIELD NOTE DESCRIPTION FOR A 0.1603 ACRE TRACT FOR THE DEANNEXATION OF LOT 13, BLOCK 16, OAKLAND ADDITION OUT OF THE DAVID BROWN SURVEY, ABSTRACT 5 JEFFERSON COUNTY,TEXAS MAY 13, 2008 TRACT 2-DEANNEX That certain 0.1603 acre tract out of the David Brown Survey,Abstract 5, Jefferson County, Texas, being Lot 13, Block 16 of Oakwood Addition, a plat recorded in Volume 4 Page 67,of the Map Records of Jefferson County, Texas and conveyed to ExxonMobil Oil Corporation as recorded in Clerks File No. 2007046843 of the Official Public Records of Jefferson County, Texas, said 0.1603 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89°59'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. COMMENCING at a 3/4" iron pipe found at the intersection of the east right-of-way line of Sycamore Street with the north right-of-way line of Fulton Avenue for the southwest corner of Lot 16, Block 16 of said Oakwood Addition; THENCE North 89 052'11" East along the said north right-of-way line of Fulton Avenue and the south line of said Block 16 a distance of 151.31 feet to a point for the southwest corner of said Lot 13 and the said 0.1603 acre tract for the POINT OF BEGINNING; TH ENCE North 00"13'11"West along the west line of said Lot 13 and the said 0.1603 acre tract a distance of 139.65 feet to a point in the south line of an alley abandoned in Ordinance#03-047 dated June 24, 2003 for the northwest corner of said Lot 13 and the said 0.1603 acre tract; THENCE North 89 049'31" East along the said south line of the alley and the north line of said Lot 13 and the said 0.1603 acre tract a distance of 50.00 feet to a point for the northeast corner of said Lot 13 and the said 0.1603 acre tract; THENCE South 00°13'11" East along the east line of said Lot 13 and the said 0.1603 acre tract a distance of 139.69 feet to a point in the said north right-of-way line of_Fulton Avenue for the northeast corner of a called 0.690 acre tract being a portion of Fulton Avenue abandoned in Ordinance Number 03-083 as described in Clerks File No. 2005008148 of the Official Public Records of Jefferson County, Texas and the southeast corner of said Lot 13 and the said 0.1603 acre tract; THENCE South 89052'11'West along g the said north right-of-way line of Fulton Avenue and the said 0.0690 acre tract being the south line of said Lot 13 and the said 0.1603 acre tract a distance of 50.00 feet to the POINT OF BEGINNING and containing 0.1603 acres (6983.31 sq. ft.) of land, more or less. Fittz&Shipman,Inc Page 1 of 1 02166.Tr2Dx FIELD NOTE DESCRIPTION FOR A 0.4385 ACRE TRACT FOR THE DEANNEXATION OF LOT 14, BLOCK 4 OF OAKWOOD ADDITION, A PORTION OF AN ALLEY AND A TRACT DESCRIBED IN CLERKS FILE NO. 2006009987, O.P.P J.C. OUT OF THE DAVID BROWN SURVEY,ABSTRACT 5 JEFFERSON COUNTY,TEXAS MAY 13, 2008 TRACT 3-DEANNEX That certain 0.4385 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, being Lot 14, Block 4 of Oakwood Addition, a plat recorded in Volume 4 Page 67, of the Map Records of Jefferson County, Texas, a portion of an alley and a tract conveyed to ExxonMobil Oil Corporation as recorded in Clerks File No. 2006009987 of the Official Public Records of Jefferson County, Texas, said 0.4385 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a3/4" iron pipe found in the south right-of-way line of Burt Street for the southwest comer of a called 0.5911 acre tract being a portion of Burt Street abandoned in Ordinance Number 03-083 as described in Clerks File No. 2005008148 of the Official Public Records of Jefferson County, Texas and the northeast comer of said Lot 14 and the said 0.4385 acre tract; THENCE South 00 002'i9"West along the east line of said Lot 14 and the said'G.4385 acre tract, at a distance of 139.72 feet pass a %" iron rod found for the southeast comer of said Lot 14, and continuing a total distance of 159.37 feet to a point in the south line of the said alley for the northeast corner of Lot 3 of said Block 4 and the southeast comer of the said 0.4385 acre tract; THENCE North 89°59'42"West along the said south line of the alley and the said 0.4385 acre tract a distance of 150.75 feet to a point in the said east right-of-way line of Sycamore Street for the northwest corner of Lot 1 of said Block 4 and the southwest corner of the said 0.4385 acre tract; THENCE North 21009'45" East along the west line of the said 0.4385 acre tract a distance of 170.56 feet to a point for the northwest corner of the said 0.4385 acre tract; THENCE North 89 048'13" East along the north line of the said 0.4385 acre tract and said Lot 14 a distance of 89.28 feet to the POINT OF BEGINNING and containing 0.4385 acres (19,103.23 sq. ft.) of land, more or less. Fittz&Shipman, Inc. Page 1 of 1 02166.Tr3Dx FIELD NOTE DESCRIPTION FOR A 0.1076 ACRE TRACT FOR THE DEANNEXATION OF A PORTION OF BURT STREET OUT OF THE DAVID BROWN SURVEY, ABSTRACT 5 JEFFERSON COUNTY,TEXAS MAY 13, 2008 TRACT 4-DEANNEX That certain 0.1076 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, being a portion of Burt Street, said 0.1076 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89°59'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a'/d' iron pipe found in the south right-of-way line of Burt Street for the southwest corner of a called 0.5911 acre tract,being a portion of Burt Street abandoned in Ordinance Number 03-083.as described in Clerks File No..2005008148 of the Official Public Records of Jefferson County, Texas and the northeast comer of Lot 14, Block 4 of Oakwood Addition, a plat recorded in Volume 4, Page 67 of the Map Records of Jefferson County, Texas and the said 0.1076 acre tract; THENCE South 89°48'13"West.along the north line of said Lot 14, the said south right-of-way line of Burt Street and the south line of the said 0.1076 acre tract a distance of 89.28 feet to a point for the southwest corner of the said 0.1076 acre tract; THENCE North 21 009'45" East along the west line of the said 0.1076 acre tract a distance of 64.96 feet to a point in the north right-of-way line of Burt Street for the southwest comer of Lot 20, Block2 of Hillside Addition, a plat recorded in Volume 4, Page 182 of the Map Records of Jefferson County, Texas and the northwest corner of the said 0.1076 acre tract; THENCE North 89 058'15" East along the south line of said Block 2, the said north right-of-way line of Burt Street and the north line of the said 0.1076 acre tract a distance of 65.87 feet to a point for the northwest comer of the said 0.5911 acre tract and the northeast corner of the said 0.1076 acre tract; THENCE South 00 002'19"West along the-west line of the said 0.5911 acre tract and the east line of the said 0.1076 acre tract a distance of 60.31 feet to the POINT OF BEGINNING and containing 0.1076 acres (4,686.89 sq. ft.) of land, more or less. Fittz&Shipman,InG Page 1 of 1 02166.Tr4Dx FIELD NOTE DESCRIPTION OF A 1.577 ACRE TRACT FOR THE DEANNEXATION OF TAGORE STREET, AND A PORTION OF GROVE STREET AND BURT STREET OUT OF THE DAVID BROWN SURVEY,ABSTRACT 5 JEFFERSON COUNTY,TEXAS MAY 13, 2008 TRACT 5-DEANNEX That certain 1.577 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, being Tagore Street and a portion of Grove Street and Burt.Street, being out of and a part of Oakwood Addition, a plat recorded in Volume 4 Page 67, of the Map Records of Jefferson County, Texas and Hillside Addition, a plat recorded in Volume 4, Page 182 of the Map Records of Jefferson County, Texas, said 1.577 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a point in the north right-of-way line of Tagore Street for the southwest corner of Lot 1, Block 1 of said Hillside Addition and the most westerly northwest corner of the said 1.577 acre tract; THENCE North 89°58'15" East along the south line of said Block 1 and the said north right-of- way line of Tagore Street and the said 1.577 acre tract a distance of 774.85 feet to a point at the intersection of the said north right-of-way line of Tagore Street and the west right-of-way dine of Grove Street for the southeast corner of Tract 5 described in aminstrument conveyed to ExxonMobil Oil Corporation as recorded in Clerks File No. 2006019380 of the Official Public Records of Jefferson County, Texas and an interior corner of the said 1.577 acre tract; THENCE North 01 002'00"West along the said west right-of-way line of Grove Street; the east line of said Tract 5 and Tract 6 of said Clerks File No. 2006019380 and an interior line of the said 1.577 acre tract a distance of 104.56 feet to a%" iron rod found for the northeast comer of said Tract 6 and the most northerly northwest corner of the said 1.577 acre tract; THENCE North 89 020'00" East along the most northerly north line of the said 1.577 acre tract a distance of 60.00 feet to a point in the east right-of-way line of Grove Street for the northeast corner of the said 1.577 acre tract; THENCE South 00°12'15" East along the said east right-of-way line of Grove Street a distance of 383.73 feet to a point at the intersection of the said east right-of-way line of Grove Street and the south right-of-way line of Burt Street for the southeast corner of the said 1.577 acre tract; Fittz&Shipman,Ina Page 1 of 2 02166.Tr5Dx THENCE North 89°58'08"West along the south line of the said 1.577 acre tract,at a distance of 58.30 feet pass a %2" iron pipe found in the said west right-of-way line of Grove Street for the northeast corner of Lot 9, Block 5 of said Oakwood Addition, and continuing a total distance of 338.28 feet to a point for the southeast corner of a called 0.5911 acre tract being a portion of Burt Street abandoned in Ordinance Number 03083 as described in Clerks File No. 2005008148 of the Official Public Records of Jefferson County and the most southerly southwest corner of the said 1.577 acre tract; THENCE North 00°01'45"West along the east line of the said 0.5911 acre tract and an interior line of the said 1.577 acre tract a distance of 59.77 feet to a point in the south line of Tracts 3& 4 described in said Clerks File No. 2006019380 and the north right-of-way line of Burt Street for an exterior comer of the said 1.577 acre tract; THENCE North 89 058'15" East along the said south line of said Tracts 3 &4 and the said north right-of-way line of Burt Street a distance of 279.37 feet to a 1" angle iron found at the intersection of the said north right-of-way line of Burt Street and the said west right-of-way line of Grove Street for the southeast corner of said Tracts 3 &4 and an interior comer of the said 1.577 acre tract; THENCE North 00 002'39" East along the east line of said Tracts 3 & 4 and Tract 7 of the said Clerks File No. 2006019380 tract being the-said west right-of-way line of Grove Street a distance of 180.40 feet to a 5/8" iron rod found at the intersection of the said west right-of-way line of Grove Street and the said south right-of-way line of Tagore Street for the northeast corner of said Tract 7 and an interior corner of the said 1.577 acre tract; THENCE South 89 058'15"West along.the said south right-of-way line of Tagore Street and an interior line of the said 1.577"acre tract a distance of 775.60 feet to a '/2" iron pipe found for the northwest corner of Lot 1, Block 2 of said Hillside Addition for the most westerly southwest corner of the said 1.577 acre tract; THENCE North 00 005'58" East along the most westerly line of the said 1.577 acre tract a distance of 38.00 feet to POINT OF BEGINNING and containing 1.577 acres(68,677.77 sq. ft.) of land, more or less. Fittz&Shipman, Ina Page 2 of 2 02166.Tr5Dx FIELD NOTE DESCRIPTION FOR A 1.348 ACRE TRACT FOR DEANNEXATION OUT OF THE DAVID BROWN SURVEY,ABSTRACT 5 JEFFERSON COUNTY, TEXAS MAY 13, 2008 TRACT 6-DEANNEX That certain 1.348 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, being Tracts 1, 2, 3, 4 and 7 conveyed to ExxonMobil Oil Corporation as recorded in Clerks File No. 2006019380 of the Official Public Records of Jefferson County, Texas, said 1.348 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a 5/8" iron rod found at the intersection of the west right-of-way line of Grove Street and the south right-of-way line of Tagore Street for the northeast comer of said Tract 7 and the said 1.348 acre tract; THENCE South 00 002'39"West along the said west right-of-way line of Grove Street and the east line of said Tracts 7, 3 &4 and the said 1.348 acre tract a distance of 180.40 feet to a 1" angle iron found at the intersection of the said West right-of-way line of Grove Street and the north right-of-way line of Burt Street for the southeast corner of said Tracts 3 and 4 and the said 1.348 acre tract; THENCE South 89 058'15"West along thF. said north right-of-way line of Burt Street and the south line of said Tracts 3, 4 and 1 and the said 1.348 acre tract a distance of 325.37 feet to a point for the southwest corner of said Tract 1 and the said 1.348 acre tract; THENCE North 00 001'45" West along the west line of said Tracts 1 and 2 and the said 1.348 acre tract a distance of 180.40 feet to a point in the said south right-of-way line of Tagore Street for the northwest corner of said Tract 2 and the said 1.348 acre tract; THENCE North 89 058'15" East along the said south right-of-way line of Tagore Street and the north line of.said Tracts 2 and 7 and the said 1.348 acre tract a distance of 325.60 feet to the POINT OF BEGINNING and containing 1.348 acres (58,717.63 sq. ft.) of land, more or less. Fittz&Shipman,Inc Page 1of1 02166.Tr6Dx FIELD NOTE DESCRIPTION FOR A 0.1776 ACRE TRACT FOR DEANNEXATION OUT OF THE DAVID BROWN SURVEY,ABSTRACT 5 JEFFERSON COUNTY, TEXAS MAY 1, 2008 TRACT 7-DEANNEX That certain 0.1776 acre tract out of the David Brown Survey, Abstract 5, Jefferson County, Texas, being Tracts 5 and 6 conveyed to ExxonMobil Oil Corporation as recorded in Clerks File No. 2006019380 of the Official Public Records of Jefferson County, Texas, said 0.1776 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No. 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a 3/4" iron rod found in the west right-of-way line of Grove Street for the northeast corner of said Tract 6 and the said 0.1776 acre tract; THENCE South 01 002'00" East along the said west right-of-way line of Grove Street and the east line of said Tracts 6 and 5 and the said 0.1776 acre tract a distance of 104.56 feet to a point at the intersection of the said west right-of-way line of Grove Street and,the north right-of- way line of Tagore Street for the southeast comer of said Tract 5 and the said 0.1776 acre tract; THENCE South 89 058'15"West along the said north right-of-way line of Tagore Street and the south line of said Tract 5 and the said 0.1776 acre tract a distance of 75.45 feet to a point for the southwest corner of said Tract 5 and the s.-id 0.1776 acre tract; THENCE North 00 012'59" East along the west line of said Tracts 5 and E!and the said 0.1776 acre tract a distance of 103.73 feet to a point for the northwest corner of said Tract 6 and the said 0.1776 acre tract; THENCE North 89°20'18" East along the north line of said Tract 6 and the said 0.1776 acre tract a distance of 73.17 feet to the POINT OF BEGINNING and containing 0.1776 acres (7,738.40 sq. ft.) of land, more or less. Ritz&Shipman,Inc Page 1 of 1 02166.Tr7Dx • • A 1 FIELD NOTE DESCRIPTION FOR A 1.087 ACRE TRACT FOR THE DEANNEXAT'ION OF A PORTION OF GRANT STREET OUT OF THE DAVID BROWN SURVEY,ABSTRACT 5 JEFFERSON COUNTY,TEXAS MAY 15, 2008 TRACT 8-DEANNEX That certain 1.087 acre tract out of the David Brown Survey,Abstract 5, Jefferson County, Texas, being the portion of Grant Street between Carroll Street and Grove Street said 1.087 acre tract being more particularly described by metes and bounds as follows: Note: The Basis of Bearings is.along south right-of-way line of Van Buren Avenue between Holly and Grove Streets, having been called North 89 059'00" East in Clerk's File No; 9842565 of the Official Public Records of Jefferson County, Texas. BEGINNING at a W iron rod found at the intersection of the east right-of-way line of Carroll Street and the south right-of-way line of Grant Street for the northwest corner of a called 8.979 acre tract conveyed to Exxon Mobil Corporation as recorded in Clerks File No. 2000041620 of the Official Public Records of Jefferson County, Texas and the southwest comer of the said 1.087 acre tract; THENCE North 19 002'08 West along the west line of the said 1.087 acre tract a distance of 57.55 feet to a Y2" iron rod found at the intersection of the said east right-of-way line of Carroll Street and the north right-of-way lime of Grant Street for the southwest comer of a tract conveyed to the Port of Beaumont Navigation District as recorded in Volume 789, Page 361 of the Deed Records of Jefferson County, Texas anc 'he northwest corner of the said 1.087 acre tract; THENCE North 89 003'18" East along the south line of the said Port of Beaumont tract, the said north right-of-way line of Grant Street and the north line of the said 1.087 acre tract a distance of 860.54 feet to a Pk Nail found for an interior comer of the said Port of Beaumont tract and the northeast corner of the said 1.087 acre tract; THENCE South 01 006'46"West along an interior line of the said Port of Beaumont tract and the east line of the said 1.087 acre tract a distance of 57.17 feet to a Pk Nail found at the intersection of the east right-of-way line of Grove Street and the said south right-of-way line of Grant Street for an exterior corner of the said Port of Beaumont tract,.the northwest comer of a called 4.261 acre tract conveyed to Magnolia Petroleum Company as recorded in Volume 732, Page 475 of the Deed Records of Jefferson County, Texas and the southeast comer of the said 1.087 acre tract; THENCE South 89 040'12"West along the south line of the said 1.087 acre tract a distance of 60.08 feet to a W iron rod found at the intersection of the west right-of-way line of Grove Street Fittz&Shipman,Inc Page 1 of 2 02166TrgDx 1 Y and the said south right-of-way line of Grant Street for the northeast corner of the said 8.979 acre tract and an angle point of the said 1.087 acre tract; THENCE South 89°11'11"West along the north line of the said 8.979 acre tract, continuing the said south right-of-way line of Grant Street and the said south line of the 1.087 acre tract a distance of 780.54 feet to the POINT OF BEGINNING and containing 1.087 acres (47,354.93 sq. ft.) of land, more or less. Fittz&Shipman,Ina Page 2 of 2 02I66Tr8Dx ORDINANCE NO. 08-061 ENTITLED AN ORDINANCE DISANNEXING EIGHT (8) TRACTS OF LAND TOTALING APPROXIMATELY 5.174 ACRES OUT OF THE DAVID BROWN LEAGUE, ABSTRACT 5, FROM THE CORPORATE LIMITS OF THE CITY OF BEAUMONT, TEXAS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. WHEREAS, in 2002, ExxonMobil and the City of Beaumont entered into an Industrial District Agreement; and WHEREAS, in conjunction with the Industrial District Agreement, ExxonMobil and the City of Beaumont entered into an agreement for the purposes of disannexing certain properties, preventing reannexation of said properties and providing consideration for disannexation of the property; and WHEREAS, on December 9, 2003, the City Council of the City of Beaumont approved, by Ordinance No. 03-096, the disannexation of 68.57± acres; and WHEREAS, ExxonMobil has since acquired the additional eight (8) tracts of land totaling approximately 5.174 acres and has requested the disannexation of this land; and WHEREAS, the City of Beaumont has abandoned all of the streets and alley rights- of-way in the area requested for disannexation; and WHEREAS, the City Council of the City of Beaumont finds that the subject of this ordinance is within their power as authorized by Article I, Section 4, of the Charter, that steps necessary to the disannexation have been satisfied, and deems it to be in the best interest of the health, safety and welfare of the citizens of the City of Beaumont to disannex the requested property from the corporate limits of the City of Beaumont; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT the eight(8)tracts of land totaling approximately 5.174 acres out of the David Brown League, Abstract 5, as described in Exhibits "A"through "H" and shown on Exhibit "I," attached hereto and made a part hereof for all purposes, located within the corporate limits of the City of Beaumont be and they are hereby declared disannexed from the boundaries of the City of Beaumont, Texas, and they are no longer a part of the City of Beaumont, Texas. Section 2. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 3. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 29th day of July, 2008. /s/ Becky Ames - Mayor Becky Ames - PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the 30th day of September, 2008. - Mayor Becky Ames - 2 September 30, 2008 Consider approving a one-year agreement with Blue Cross Blue Shield of Texas for employee medical and dental insurance RICH WITH OPPORTUNITY r T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Lillie Babino, Human Resources Director MEETING DATE: September 30, 2008 REQUESTED ACTION: Council approval of a one-year agreement with Blue Cross Blue Shield of Texas (BCBSTX) for employee medical and dental insurance. RECOMMENDATION Administration recommends that Council award to Blue Cross Blue Shield of Texas (BCBSTX) a one year contract effective January 1,2009 for third party administration of the City's fully insured Health Maintenance Organization(HMO Blue Texas),self funded Preferred Provider Organization (PPO) medical plan and a self funded dental plan. BACKGROUND Full time city employees are offered medical and dental benefits. The medical and dental benefits consist of a self funded PPO plan, a fully insured HMO plan, and a self funded dental plan. There are 952 participants enrolled in the PPO plan,consisting of 815 active employees, 131 retirees,and 6 COBRA participants. There are 471 participants enrolled in the HMO plan, consisting of 410 active employees, 59 retirees, and 2 COBRA participants. In May 2008,City staff began analyzing the City's health care costs. In June 2008, staff also began working with the City's health benefit consultant,Holmes Murphy&Associates to determine if the City should request bid proposals for the City's HMO, PPO, and dental plans or remain with the current administrator, BCBSTX for 2009. The City has the option to negotiate new rates with BCBSTX without seeking bids. The prior year bid states the City has the option to request renewal rates from the current administrator, BCBSTX. The current agreement with BCBSTX started January 1, 2006 and can be renewed for up to five years. After analyzing and negotiating the BCBS renewal rates,staff concluded that BCBSTX offered the most cost effective plans.Initial renewal rates projected by BCBSTX for the fully insured HMO plan increased 13.5%. Four large claims resulted in the high initial renewal projection.PPO overall fixed costs consisting of stop loss and administration increased 2%. Renewal rates for the self funded dental plan did not increase. Final negotiations by Holmes Murphy& Associates resulted in the HMO plan renewal being held to a 6%increase. The HMO increase was a function of increasing Medical and Dental Insurance September 30, 2008 Page 2 utilization,rising trend factors and four large claims. For the PPO plan,the City pays BCBS a stop loss premium amount to provide financial protection for any one covered member incurring high dollar claims.The City insures any claimant that incurs claims over the$150,000 individual stop loss amount during the plan year January 1 - December 31. Over the last experience period, there was one claimant that exceeded the $150,000 individual stop loss amount. The claimant's experience warrants the 2% increase in the stop loss premium. Holmes Murphy recommends that the City remain with BCBSTX because it offers cost effective plans with an extensive network and deep provider discounts. The final negotiated rates are lower than the projected industry trends of 10 to 13%. Staff recommends implementation of the following rates to be paid by the City for HMO coverage, PPO and Dental administration effective January 1, 2009: 2008 Monthly HMO Rates 2009 Monthly HMO Rates Employee Only $317.85 $336.92 Employee+ 1 Dependent $765.98 $811.94 Employee+Family $1090.15 $1,155.56 2008 MonthlyPPOStopLoss 2009MonthlyPPOStopLoss and Administration Rates and AdministrationRates Employee Only $59.84 $60.69 Employee+ 1 Dependent $84.39 $86.47 Employee+Family $84.39 $86.47 2008 Monthly Dental Rates 2009 Monthly Dental Rates Employee Only $5.66 $5.66 Employee+ 1 Dependent $5.66 $5.66 Employee+ Family $5.66 $5.66 BUDGETARYIMPACT Funds are available for this expenditure in the Employee Benefits Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a one-year contract with Blue Cross Blue Shield of Texas (BCBSTX) for third party administration of the City's fully insured Health Maintenance Organization (HMO Blue Texas), self-funded Preferred Provider Organization (PPO) medical plan and a self-funded dental plan effective January 1, 2009. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - i 3 September 30,2008 Consider approving a three-year contract with Cigna for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment (AD&D) and Dependent Life Insurance RICH WITH OPPORTUNITY 1117CA1111�1011�0( T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Lillie Babino, Human Resources Director , MEETING DATE: September 30, 2008 REQUESTED ACTION: Council approval of a three-year contract with Cigna for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment (AD&D) and Dependent Life Insurance. RECOMMENDATION Administration recommends that Council award to Cigna a three-year contract effective January 1, 2009 for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment (AD&D) and Dependent Life Insurance. BACKGROUND Currently,the City provides basic life and accidental death and dismemberment(AD&D)insurance for approximately 1258 employees. The City sponsored basic life and accidental death and dismemberment insurance is provided at no cost to the employee. The amount of basic life/AD&D insurance is 100% of the employee's annual base salary rounded to the next highest $1000 to a maximum benefit of$50,000. Employees may elect to purchase supplemental life and accidental death and dismemberment and dependent life at a group rate. The group rate is usually more cost effective than an individual policy for the employee. Supplemental life,which includes AD&D and dependent life, is offered to all employees with approximately 947 currently participating. In July 2008,City staff began analyzing the City's life insurance cost. Staff also began working with the City's benefit consultant, Holmes Murphy& Associates to solicit bid proposals on the City's behalf. The City received six proposals including the incumbent's quote for basic life and AD&D, supplemental life and AD&D,and dependent life insurance. The proposers were incumbent carrier Aetna, Cigna, Fort Dearborn, Minnesota Life, and two quotes from Unum. Upon receipt and review of the proposals,Holmes Murphy worked with City staff to determine the top three - Cigna, Fort Dearborn, and Aetna. Upon further negotiation and clarification, Fort Dearborn and Aetna were eliminated from consideration. Fort Dearborn was not able to match all current benefits nor contract language required by the City and Aetna's proposed rates were higher for basic life/AD&D coverage. Cigna matched the current benefits and provided a lower rate for both basic life/AD&D and supplemental life/AD&D. Basic Life/AD&D and Supplemental Life/AD&D/Dependent Life September 30, 2008 Page 2 A pricing analysis of the proposals received are as follows: • 1258 1258 1258 1258 1258 1258 + + $0.162 $0.125 $0.125 $0.172 $0.155 $0.155 $55,418,591 $55 418 591 $55,418,591 $55,418,591 $55 418,591 $55,418,591 Anrtual'Fremfum-Lie $107 734 5 ;128'' S8a 128 $1�." 4 $10$;078 $103 079 Variance to Renewal--$ ($24,606) ($24,606) $6,650 ($4,655) ($4,655) Variance to Renewal-% (22.8%) (22.8%) 6.2% (4.3%) (4.3%) Dearborn Basic AD&D Aetna Minnesota (Renewal) CIGNA Fort Monthly Average 1258 1258 1258 1258 1258 1258 Rate per$1,000 $0.03 $0.03 $0.03 $0.03 $0.03 $0.03 Annual • L$55,418,591 $55,418,591 $55,418,591 $55,418,591 $55,418,591 $55,418,591 Annual Fremium-AD&D" $18 951 $19,951 319%951" $19 951 19"951 $181951 Variance to Renewal--$ $0 $0 $0 $0 $0 Variance to Renewal-% 0.0% 0.0% 0.0% 0.0% 0.0% Annual Fremium- I$127,611,5 $103,079103,079 $134,335 $133,030 $13,oa0 Life+AD&D Variance to Renewal--$ ($24,606) ($24,606) $6,650 ($4,655) ($4,655) Variance to Renewal-% (19.3%) (19.3 1/6) 5.2% (3.6 9/6) (3.6%) 1 year(expiring 3 y ears 3 years 3 years 3 years 3 years 12/31/08) • 947 947 947 947 947 947 • $0.24 $0.262 $0.21 $0.23 $0.240 $0.290 $0.290 • $83,811,660 $83,811,660 $83,811,660 $83,811,660 $83,811,660 $83,811,660 $83,811,660 Estimated'Anitual""" " $2A1,378 ;263.504 $211j205, ;231;338 $241,378 $3$1,665 ;391,665 Premium" Vol'E,rnp Variance to Current-$ $22,126 ($30,172) ($10,057) $0 $50,287 $50,287 Variance to Current-% 9.2% (12.5%) (4.2%) 0.0% 20.8% 20.8% i•+- . •i:D Benefit Participation Average 552 552 552 552 552 552 552 :Rate per Unit $1.00 $1.25 $1.00 $1.00 $1.00 $1.00 $1.00 Rate Guarantee Eatiriiad Armual $6,624" ' " $$,280 $6.624 $6.634 66,824 $6,624 $6,624 Premium-Volb6i) . Variance to Current-$ $1,656 $0 $0 $0 $0 $0 Variance to Current-% 25.0% 0.0% 0.0% 0.0% 0.0% 0.0% Voluntary Life� . •�:� Program Total i Estimated Anrinal" $248,002 $271,784 $217,828 $237,944 $246,002 $29$,288 $288,2$8 Premium-All Variance to Current-$ $23,782 ($30,172) ($10,057) $0 $50,287 $50,287 Variance to Current-% 9.6% (12.2 1/6) (4.1%) 0.0% 20.3% 20.3% 1 year • (expiring 1 year 3 years 3 years 3 years 3 years 3 years 12/31/08 Basic Life/AD&D and Supplemental Life/AD&D/Dependent Life September 30, 2008 Page 3 BUDGETARY IMPACT Funds are available for this expenditure in the Employee Benefits Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a three-year contract with CIGNA for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment and Dependent Life Insurance effective January 1, 2009. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30`h day of September, 2008. - Mayor Becky Ames - 4 September 30,2008 Consider approving a three-year contract with Cigna effective January I, 2009 for Long Term Disability(LTD) Insurance RICH WITH OPPORTUNITY � I'Em A,11 1�1 0 11* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Lillie Babino, Human Resources Director MEETING DATE: September 30, 2008 REQUESTED ACTION: Council approval of a three-year contract with Cigna effective January 1, 2009 for Long Term Disability(LTD) Insurance. RECOMMENDATION • Administration recommends that Council award to Cigna a three-year contract effective January 1, 2009 for Long Term Disability Insurance. BACKGROUND Long term disability is an employee paid benefit offered to all employees with approximately 696 eligible employees participating. This benefit will provide the employee with up to 60%of his or her salary when disabled for a period in excess of 90 days. In July 2008, City staff began analyzing the Long Term Disability insurance plan cost. Staff also began working with the City's benefit consultant, Holmes Murphy & Associates to solicit bid proposals on the City's behalf. The City received four proposals including the incumbent's quote for long term disability insurance. Cigna, the lowest bidder, will provide a three year rate guarantee for the same benefit coverage as provided by the incumbent carrier, Fort Dearborn. The bids received are: 60% 60% 60% 60% $10,000 $10,000 $10,000 $10,000 $27,620,194.000 $27,620,194.000 $27,620,194.000 $27,620,194.000 $0.830 $0.375 $0.520 $0.520 $2.050 $0.927 $1.290 $1.290 t1.600 $1.600 1 • iiea 3 years 3 years 3 years $27,347,089 Variance to Renewal- ($33.181;096) ($2Z606,574) ($12,6016.874) Variance M Renewal-% (St oW (37.3%) (37.3%) Long Term Disability Insurance September 30, 2008 Page 2 BUDGETARY IN PACT Long term disability insurance is an optional benefit offered to employees. There is no monetary impact to the City because premiums are withheld from participating employees' paychecks to pay for the long term disability insurance coverage. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a three-year contract with CIGNA effective January 1, 2009, for Long Term Disability Insurance at the rates shown below: Rate (per $100 of Benefit) Age 40 or less $0.375 Age 41-49 $0.927 Age 50+ $1.150 Rate Guarantee 3 years Est. Annual - LTD $27,347,089 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - 5 September 30,2008 Consider granting the City Manager authority to implement contribution rate changes for retirees in the medical plans RICH WITH OPPORTUNITY [1EA,U11G11T T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Lillie Babino, Human Resources Director IPA MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider granting the City Manager authority to implement the contribution rate change for retirees in the medical plans. RECOMMENDATION Administration recommends that Council approve medical contribution rate changes for retirees, including their dependents, effective January 1, 2009. BACKGROUND Retirees and their dependents are allowed to elect continuation of medical coverage as provided by state statue. The retiree/dependent may continue coverage until the retiree/dependent is covered by Medicare/Medicaid,but not beyond age 65. Currently,there are 190 retirees on the City's medical plans. The retiree contribution rate for Police and Fire retirees is based on a provision in the Police and Fire contract agreements which states, "Any employee who retired on or after February 1, 1992 may be subject to an annual increase in contribution. The increase will be effected in accordance with the labor agreement. The single rate will be established at 69%; single rate+ 1 at 58%; and the family rate at 54% of the COBRA rate." This same formula is utilized when calculating the contribution rate for civilian retirees. The City requested Holmes Murphy&Associates,the City's benefit consultant,to analyze the City's health costs and to determine the 2009 medical COBRA rates. Based on Holmes Murphy & Associates calculations, the retiree medical rates effective January 1, 2009 will be as follows: Retiree Medical Plan Rates for 2009 September 30, 2008 Page 2 Plan 2009 2009 2009 2009 2008 and Medical Prescription COBRA Retiree Retiree Category Rate Drug Rate Rate* Rate Rate PPO (EO) $308.79 $63.08 $371.87 $256.59 $256.59 (El) $764.29 $156.16 $920.45 $533.86 $533.86 (E2) $1003.82 $205.11 $1208.93 $652.82 $652.82 HMO (EO) $336.92 $62.94 $399.86 $275.90 $262.75 (E1) $811.94 $151.70 $963.64 $558.91 $532.25 (E2) 1 $1155.56 $215.91 $1371.47 $740.59 $705.27 *Rate does not include COBRA administration fee. BUDGETARY IMPACT Appropriation of funds is available in the Employee Benefits Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to implement the following medical contribution rates for retirees including their dependents effective January 1, 2009: Plan 2009 2009 2009 2009 2008 and Medical Prescription COBRA Retiree Retiree Category Rate Drug Rate Rate` Rate Rate PPO (EO) $ 308.79 $ 63.08 $ 371.87 $256.59 $256.59 (E1) $ 764.29 $156.16 $ 920.45 $533.86 $533.86 (E2) $1003.82 $205.11 $1208.93 $652.82 $652.82 HMO (EO) $ 336.92 $ 62.94 $ 399.86 $275.90 $262.75 (E1) $ 811.94 $151.70 $ 963.64 $558.91 $532.25 (E2) $1155.56 $215.91 $1371.47 $740.59 $705.27 *Rate does not include COBRA administration fee. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - 6 September 30,2008 Consider amending the FY 2008 Budget RICH WITH OPPORTUNITY 17L T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider amending the FY 2008 Budget RECOMMENDATION It is recommended that Council amend the FY 2008 Budget as proposed in the attached detail. Approving the proposed amendments will preclude the City from having expenditures in excess of appropriations. BACKGROUND In accordance with Article VI of the City Charter, the City Manager shall strictly enforce the provisions of the budget as specified in the ordinance adopting the budget. He shall not authorize or approve any expenditure unless an appropriation has been made in the budget ordinance adopting the budget, and there is an available unencumbered balance of the appropriation sufficient to pay the liability to be incurred. The details of the amendments are as follows: Solid Waste Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 9,112,400 $ 657,000 $ 9,769,400 Total Revenues 8,312,500 924,800 9,237,300 The Solid Waste Fund has several factors that have led to an increase in expenditures. Fuel, maintenance and material prices increased during the fiscal year. Contract services increased due to vacancies and unanticipated expenses related to Hurricane Humberto were incurred. An increase of$657,000 is proposed to cover these expenditures. Additional revenues of$924,800 are available to fund the increase. General Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 90,339,100 $ 1,903,100 $ 92,242,200 Total Revenues 96,321,000 4,278.550 100,599,550 The General Fund has experienced as much as a 30% increase in fuel, heavy materials and chemical prices during FY 2008. There has been an increase in contract labor due to vacancies resulting in an increase in the cost for some departments to maintain normal operations. Unanticipated expenses related to Hurricane Humberto were also incurred which impacted the expenditures. An increase of$1,903,100 is proposed for the FY 2008 Budget to cover these increased costs. Additional revenues of$4,278,550 are available to fund this increase in expenditures. Fleet Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 6,628,300 $ 829,715 $ 7,458,015 Total Revenues 6,689,300 1,449,300 8,138,600 Due to fuel costs and greater than anticipated heavy equipment repairs and maintenance, the Fleet Fund has experienced an increase in expenditures in FY 2008. An amendment in the amount of$829,715 is proposed to cover these expenses. Additional revenues of$1,449,300 are available to fund this increase in expenditures. General Liability Original Budget Proposed Amendment Amended Budget Fund Total Expenditures $ 874,500 $ 44,700 $ 919,200 The General Liability Fund experienced an increase in claims paid in FY 2008 causing the expenses to go over budget. An amendment in the amount of$44,700 is recommended to cover these expenses. Debt Service Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 13,828,800 $ 22,900 $ 13,851,700 The Debt Service Fund had additional bond sale expenditures that were unexpected. An amendment in the amount of$22,900 is proposed to cover these expenses. HH Golf Course Original Budget Proposed Amendment Amended Budget Fund Total Expenditures $ 537,800 $ 10,200 $ 548,000 Henry Homberg Golf Course experienced increases in material, fuel and chemical costs resulting in increased expenditures. An amendment is proposed in the amount of$10,200 to cover these expenditures BUDGETARY IMPACT Sufficient fund balance is available to cover all increases in appropriations where individual fund revenues are not able to fully sustain those appropriations. i ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING THE FISCAL BUDGET OF THE CITY OF BEAUMONT FOR THE FISCAL YEAR 2008 TO APPROPRIATE ADDITIONAL EXPENDITURES AND/OR REVENUE FOR THE SOLID WASTE, GENERAL, FLEET, GENERAL LIABILITY, DEBT SERVICE,AND HENRY HOMBERG GOLF COURSE FUNDS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures and revenue for the Solid Waste Fund as shown below: Solid Waste Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 9,112,400 $ 657,000 $ 9,769,400 Total Revenues $ 8,312,500 $ 924,800 $ 9,237,300 Section 2. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures and revenue for the General Fund as shown below: General Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 90,339,100 $ 1, 903,100 $ 92,242,200 Total Revenues 96,321,000 4,278,550 100,599,550 Section 3. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures and revenue for the Fleet Fund as shown below: Fleet Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 6,628,300 $ 829,715 $ 7,458,015 Total Revenues 6,689,300 1,449,300 8,138,600 Section 4. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures for the General Liability Fund as shown below: General Liability FundOiginal Budget Proposed Amendment Amended Budget Total Expenditures ]:$$ :r 874,500 $ 44,700 $ 919,200 Section 5. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures for the Debt Service Fund as shown below: Debt Service Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 13,828,800 $ 22,900 $ 13,851,700 Section 6. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2007, through September 30, 2008, be and the same is hereby amended to appropriate additional expenditures for the Henry Homberg Golf Course Fund as shown below: HH Golf Course Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $ 537,800 $ 10,200 $ 548,000 Section 7. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 8. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - WORKSESSION * Review and discuss the proposed FY 2009 Budget * Review and discuss the proposed FY 2009 Capital Program * Review and discuss the 2008 (FY 2009) proposed Tax Rate PUBLIC HEARING * Receive comments on the 2008 (FY 2009) proposed Tax Rate, proposed FY 2009 Budget and the proposed FY 2009 Capital Program RICH WITH OPPORTUNITY [I 1'Em A�[I 1�1 C1 I I T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: September 30, 2008 REQUESTED ACTION: Council to hold a joint public hearing on the 2008 (FY 2009) Proposed Tax Rate,proposed FY 2009 Budget and proposed FY 2009 Capital Program. RECOMMENDATION Administration recommends that Council hold a joint public hearing on the 2008 (FY 2009) Proposed Tax Rate of$0.64, the proposed FY 2009 Budget and the proposed FY 2009 Capital Program. In accordance with the Property Tax Code, the Council must make the following announcement: The meeting to vote on the tax rate will be held on September 30, 2008 at 1:30 p.m. in the Council Chambers. BACKGROUND Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rate. Two public hearings are required if the proposed tax rate exceeds the lower of the effective tax rate or the roll back tax rate. A Notice of Public Hearing on Tax Increase is required to be published in the newspaper, on the city website, and on a television channel, if available. The notice was published in the newspaper on August 19,2008 as well as on the website and the television station and the first public hearing was held on August 26, 2008. The second public hearing was scheduled for September 2, 2008, but due to Hurricane Gustav was cancelled. In the wake of Hurricane Gustav, a special called meeting for the second public hearing was scheduled to be held on September 11`h,but due to Hurricane Ike, it was also cancelled. Due to time constraints and council meetings being unable to be held on September 16`h and 23`d due to Hurricane Ike, the second required public hearing on the tax rate is being held on the same day as the meeting to adopt the tax rate. The required Notice of Tax Revenue Increase regarding the proposal to increase total tax revenue from properties on the tax roll by 8.39%was published in the newspaper on September 24, 2008 and included the public hearing date and time as well as the meeting to vote on the tax rate. This notice is also on the website and cable channel 4. Although there is a proposed decrease in the tax rate of $0.014, the increase is related to an increase in appraised property values. Joint Public Hearings September 30, 2008 Page 2 The proposed FY 2009 Budget was submitted to Council on August 12, 2008. The proposed FY 2009 Capital Program was originally submitted on May 13,2008.On August 12,2008,the proposed FY 2009 Capital Program was submitted with revisions. The notice of the public hearing on the Budget and the Capital Program was published on August 25,2008 for the public hearing that was scheduled on September 2,2008. Due to Hurricane Gustav this meeting was cancelled. In the wake of Hurricane Gustav, a special called meeting for the public hearings was scheduled to be held on September 11", but due to Hurricane Ike, it was also cancelled. Regularly scheduled council meetings were not able to be held on September 16"or 23rd due to Hurricane Ike. Article VI, Section 8 of the City Charter states that "the budget shall be adopted by the favorable votes of at least a majority of all members of the Council." Section 9 states that "the budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of the fiscal year. Should the Council take no final action on or prior to such day, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council." The FY 2009 Budget was automatically adopted, according to charter, since no action could be taken prior to September 27, 2008. In an effort to keep the citizens of Beaumont informed, a work session and public hearing is being held on September 30, 2008. A notice of this public hearing was posted in the newspaper on September 25, 2008. BUDGETARY IMPACT Applying the proposed tax rate of $0.6400 and a 97% collection rate, budgeted revenues of $26,651,000 and $12,659,000 respectively to the General and Debt Service Funds are anticipated. The total rate of$0.6400 is apportioned$0.433897/$100 assessed valuation to the General Fund and $0.206103/$100 assessed valuation toward the Debt Service Fund. The proposed FY 2009 Budget appropriations for all funds,net of contingency,totals$221,749,133. In the proposed FY 2009 Capital Program, projects in the design or construction phase total $458,458,000 and include 355,470,000 in Public Works and General Improvements projects and 102,988,000 in Water and Sewer projects. Projects in the planned phase total $100,936,000 which includes$84,060,000 in Public Works projects and 16,876,000 in Water and Sewer projects.The total capital program costs for all projects in the design or construction phase and the planned phase is $559,394,000. 7 September 30, 2008 Consider adopting the FY 2009 Budget RICH WITH OPPORTUNITY [I 17C A► � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Office MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider adopting the FY 2009 Budget RECOMMENDATION Administration recommends Council adopt the FY 2009 Budget as submitted to Council on August 12, 2008. BACKGROUND Article VI, Section 8 of the City Charter states that "the budget shall be adopted by the favorable votes of at least a majority of all members of the Council." Section 9 states that "the budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of the fiscal year. Should the Council take no final action on or prior to such day, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council." The FY 2008 Budget was submitted to Council on August 12, 2008.A work session and public hearing was scheduled for September 2, 2008, but due to Hurricane Gustav it was cancelled. In the wake of Hurricane Gustav, a special called meeting for the public hearing was scheduled to be held on September 11`h, but due to Hurricane Ike, it was also cancelled. Regularly scheduled council meetings were not able to be held on September 16`h or 23`d due to Hurricane Ike. Because no official action was able to be taken by the Council on or before September 27, 2008, by the charter, the FY 2009 Budget was adopted. In an effort to fully inform the citizens of Beaumont, a work session and public hearing is being held to review the FY 2009 Budget, although no longer required.. BUDGETARYIMPACT The proposed FY 2009 Budget appropriations for all funds, net of contingency, totals $221,749,133. Additionally, a contingency appropriation of$1,500,000 is made for the General Fund. ORDINANCE NO. ENTITLED AN ORDINANCE REFERRED TO AS THE "ANNUAL APPROPRIATION ORDINANCE" ADOPTING A BUDGET FOR THE FISCAL PERIOD BEGINNING OCTOBER 1, 2008, AND ENDING SEPTEMBER 30, 2009, IN ACCORDANCE WITH THE CHARTER OF THE CITY OF BEAUMONT; APPORTIONING THE FUNDS OF THE CITY OF BEAUMONT; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH AND PROVIDING FOR SEVERABILITY. WHEREAS,the City Manager of the City of Beaumont submitted to the City Council a budget estimate for the revenues of said City and expenses of conducting the affairs thereof for the fiscal year beginning October 1, 2008, and ending September 30, 2009; and, WHEREAS, attempts were made to provide notice and conduct public hearings on the budget in accordance with the requirements of the Charter of the City of Beaumont and the statutes of the State of Texas; however, the necessity to declare disasters and call for mandatory evacuations due to Hurricanes Gustav and Ike prevented the conducting of regular Council meetings and scheduled public hearings on the budget; and WHEREAS, Article VI, Section 9, states that, "The budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of the fiscal year. Should the Council take no final action on or prior to such day, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council;"and WHEREAS, the City Council is of the opinion that the budget, as attached hereto as exhibit "A," should be ratified as adopted; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the budget attached hereto as Exhibit "A" and made a part hereof for all purposes is hereby adopted, ratified and approved. Exhibit "A" is hereby adopted and approved as the budget of all the correct expenses as well as the fixed charges of the City for the fiscal period beginning the 1st day of October, 2008, and ending the 30th day of September, 2009, and the several amounts stated in Exhibit"A"as proposed expenditures shall be and become appropriated to the several objects and purposes therein named. Notices given, as required for the adoption of said budget, are hereby ratified. Section 2. That the sums indicated are appropriated from the following schedule of funds: a. General $105,725,500 b. Debt Service 14,580,800 C. Water Utilities 37,268,100 d. Solid Waste Management 8,846,400 e. Hotel Occupancy Tax 3,023,500 f. Henry Homberg Golf Course 562,200 g. Municipal Transit 10,914,500 h. Other Special Revenue 3,630,933 i. Capital Reserve 9,874,800 j. Fleet Management 8,673,100 k. Employee Benefits 17,704,800 I. General Liability 944,500 Section 3. That the City Manager is hereby authorized to transfer budgeted funds from one line item to another line item provided the transaction is not an inter-fund transfer. Section 4. That if any section, subsection, sentence, clause or phrase of this ordinance or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall in no way affect the remaining portions of this ordinance, and to such end the provisions of this ordinance are declared to be severable. Section 5. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Sales and use taxes $ 35,852,787 $ 37,266,000 $ 37,266,000 Property taxes 19,414,241 24,020,000 27,171,000 Industrial payments 12,081,915 13,178,700 15,782,000 Gross receipts taxes 8,146,008 8,099,200 8,071,200 Utility fund in lieu 6,936,000 6,936,000 7,036,000 Charges for services 3,606,698 3,615,600 3,589,000 Fines and forfeits 2,558,994 2,311,100 2,224,800 Licenses and permits 1,638,903 1,674,300 1,404,600 Other 4,105,019 3,498,700 3,183,900 TOTAL REVENUES 94,340,565 100,599,600 105,728,500 EXPENDITURES Police 25,322,789 26,487,300 28,259,100 Fire 19,032,153 21,186,400 22,339,900 Public Works 16,302,342 15,906,200 17,553,300 Public Health 6,449,585 7,054,500 8,511,900 Information Technology 2,400,402 2,965,400 5,269,200 Parks and Recreation 3,897,599 4,371,900 4,516,700 Event Facilities and Libraries 3,443,367 4,041,100 4,259,400 Finance 3,173,418 3,404,600 3,706,100 Community Development - 2,334,800 2,469,100 Executive Office 1,503,338 1,577,400 1,694,500 Human Resources 657,602 962,700 1,085,300 City Attorney 718,054 675,300 769,200 City Clerk 267,591 209,300 326,600 TOTAL EXPENDITURES 83,168,240 91,176,900 100,759,300 OTHER USES Transfers out 6,326,000 13,280,000 4,966,200 TOTAL APPROPRIATIONS 89,494,240 104,456,900 .105,725,500 EXCESS(DEFICIT)REVENUES OVER APPROPRIATIONS 4,$46,325 (3,857,300) 3,000 BEGINNING FUND BALANCE 20,262,622 25,108,947 21,251,647 Reserved for contingency 1,500,000 1,500,000 1,500,000 Unreserved 23,608,947 19,751,647 19,754,647 ENDING FUNGI BALANCE $ 25,108,947 $ 1647 . $ 21,254,647 EXHIBIT "A" DEBT SERVICE FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Property taxes $ 12,951,803 $ 12,276,000 $ 13,079,000 Other 1,426,872 1,319,500 1,408,,800'_ TOTAL REVENUES 94,376,675 13,595,500 14,487,800 EXPENDITURES Principal and interest 14,088,433 13,820,800 14,567,800 Service charges 5,168 3,400 8,000 Other operating expenses - 27,500 5,000 TOTAL EXPENDITURES 14,093,601 13,851,700 14,580,800 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 285,074 (256,200) (93,000) BEGINNING FUND BALANCE 2,270,220 2,555,294 2,299,094 ENDING FUND BALANCE $,555,294 $ _ __ 2,2991094 $ 2 206 094 WATER UTILITIES FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Water sales $ 23,058,035 $ 24,935,000 $ 27,080,400 Sewer charges 5,680,142 6,180,000 6,612,600 Other 2,483,910 2,252,100 1,997,000 TOTAL REVENUES 31,222,087 33,367,100 35,690,000 EXPENDITURES Wages 5,825,198 6,142,100 6,507,900 Benefits 2,856,876 2,985,500 3,242,000 Operating expenditures 999,362 1,145,900 1,204,000 Repair and maintenance 3,338,508 3,539,700 3,928,900 Utilities 2,155,787 2,238,700 2,488,900 Contract services 669,577 600,900 1,044,600 Equipment purchases 34,205 - 14,000 Capital expenditures 1,729,306 3,091,900 2,593,600 Debt service 8,860,314 9,161,700 10,344,200 Payment In lieu of taxes 5,630,000 5,630,000 5,630,000 Transfers to other funds 250,000 270,000 270,000 TOTAL EXPENDITURES 32,349,133 34,806,400 37,268,100 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES (1,127,046) (1,439,300) (1,578,100) BEGINNING FUND BALANCE 10,650,201 9,523,155 8,083,855 Unreserved 9,523,155 8,083,855 6,605,755 ENDING FUND BALANCE $ 915231156 $ 8 083 855 $ 6,505.755 SOLID WASTE FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Residential collections $ 5,507,013 $ 5,860,000 $ 5,800,000 Landfill fees 3,076,185 3,200,000 2,600,000 Proceeds from sale of assets - 90,000 1,500 Other 123,146 87,300_ 92,000 TOTAL REVENUES 8,706,344 9,237,300 8,493,500 EXPENDITURES Wages 1,850,762 2,008,700 2,054,800 Benefits 983,608 1,051,100 1,129,200 Operating expenditures 776,054 1,347,200 1,448,600 Repair and maintenance 1,926,967 2,032,000 2,026,200 Utilities 34,084 32,100 32,000 Contract services 130,758 213,800 224,200 Equipment purchases - 11,500 8,200 Capital expenditures 570,332 1,062,300 $46,500 Debt service 670,657 619,700 185,700 Payment in lieu of taxes 1,306,000 1,308,000 1,306,000 Transfers to other funds 75,000 85,000 85,000 TOTAL EXPENDITURES 8,324,222 9,769,400 8,846,400 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 382,122 (532,1.00) (352,900) BEGINNING FUND BALANCE 2,600,346 2,982,468 2,450,388 Unreserved 2,982,468 2,450,368 2,097,468 ENDING FUND BALANCE $ 2,982,468, $ 2,450.368 $ 2,097,468. HOTEL OCCUPANCY TAX FUND STATEMENT OF REVENUES AND EXPENDITURES Actual F.,stim8ted Budget FY 2007 FY 2008 FY 2009 REVENUES Gross receipts taxes $ 2,463,560 $ 2,700,000 $ 2,500,000 Other 196,966 93,000 56,300 TOTAL REVENUES 2,660,526 2,793,000 2,556,300 EXPENDITURES Convention and Visitors Bureau 1,437,380 1,696,700 1,735,800 Designated programs 295,000 310,000 452,000 Payment in lieu of taxes - - 100,000 Transfers to other funds 645,700 845,700 735,700 TOTAL EXPENDITURES 2,378,080 2,652,400 , 3,023,500 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 282,446 140,600 467,200) BEGINNING FUND BALANCE 714,964 997,410 1,138,010 Unreserved 997,410 1,138,010 670,810 ENDING BALANCE $ 997,410 $ 1,138,010 $ 670,810 Convention 8.Tourism PEtrsonnei FY 2007 FY 2008 FY 2009 Exempt 8 8 8 Clerical 1 1 1 9 9 9 HENRY HOMBERG GOLF COURSE FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Charges for services $ 432,523 $ 442,000 $ 495,000 Other 44,201 39,700 39,700 TOTAL REVENUES 476,724 481,700 534,700 EXPENDITURES Wages 170,078 205,500 202,000 Benefits 54,805 62,100 63,600 Operating expenditures 52,744 64,500 70,600 Repair and maintenance 26,795 51,600 54,800 Utilities 14,236 19,100 20,300 Contract services 18,202 15,100 16,600 Capital expenditures - 54,400 58,600 Debt service 75,644 75,700 75,700 TOTAL EXPENDITURES 412,504 548,000 562,200 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 64,220 (66,300) (27,500) BEGINNING FUND BALANCE 53,390 117,610 51,310 Unreserved 111,610 51,310 23,810 ENDING FUND BALANCE $ $ 51,310 23,810 MUNICIPAL TRANSIT FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Service charges $ 612,131 $ 630,060 $ 715,000 Intergovernmental revenues 3,335,057 2,975,300 8,400,000 Other 1,406,304 2,025,000 2,130,800 TOTAL REVENUES 5,353,492 5,630,300 11,245,800 EXPENDITURES Contract services 4,208,600 4,800,000 4,714,500 Capital outlay 1,312,494 1,014,800 6,200 000 TOTAL EXPENDITURES 5,521,094 5,814,800 10,914,500 I EXCESS(DEFICIT)REVENUES OVER EXPENDITURES (167,602) (184,500) 331,300 BEGINNING FUND BALANCE 383,702 216,100 31,600 Unreserved 216,100 31,600 362,900 ENDING FUND BALANCE $ 216 100 $ 31,600 $ 362,900 OTHER FUNDS STATEMENT OF REVENUES AND EXPENDITURES Estimated Balance FY 2009 Balance 10101= Revenues Approp. 09/30/09 Municipal Airport $ 29,800 $ 153,700 $ 183,500 $ - Texas Motor Carrier Violations 32,600 40,900 73,500 Municipal Court Security Fee 15,481 70,700 86,181 Municipal Court Technology 43$,000 97,000 535,000 Municipal Court Juvenile Case Manager 14,502 48,000 62,502 - Rite Recovery 25,400 1,643,200 1,668,600 - Library Grants - 10,300 10,300 - Confopatsd Goods 285,937 24,600 290,537 Julie Rogers Theatre Endowment 120,700 4,000 24,700 100,000 (1) Tyrrell Historical library 162,263 4,000 166,263 - Expendable Trust 224,800 14,000 238,800 - Library Trust 144,600 5,000 149,600 - Library Endowment 875,500 30,000 130,600 774,900 (1) Historical Fire Museum 850 10,000 10,850 - TOTAL $ 2.350.433 $ 2.155,400 $ 3.630.933 $ 874.800 (1) unexpendableendowment CAPITAL RESERVE FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Fleet rental $ 1,128,400 $ 1,249,300 $ 1,967,700 Other 4,730,824 7,371,000 24365,100 TOTAL REVENUES 5,859,224 8,620,300 4,322,800 EXPENDITURES Improvements 334,575 2,935,000 5,439,000 Equipment 719,178 1,533,300 1,434,900 Vehicles 2,309,308 3,327,700 2,650,400 Debt service 895,$12 752,600 350,500 Transfers out 24,990 - - TOTAL EXPENDITURES 4,283,363 8,548,600 9,874,800 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 1,575,861 71,700 (5,552,000) BEGINNING FUND BALANCE 4,882,319 6,458,180 6,529,880 Unreserved 6,458,180 6,529,880 977,880 ENDING FUND BALANCE $ 6,458,180 $ 6 529 880 $ 977,880 FLEET MANAGEMENT FUND STATEMENT OF REVENUES AND EXPENDITURES _. .,.. Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES User fees $ 6,743,228 7,825,400 8,141,900 Other 1,524 313,200 500 TOTAL REVENUES 6,744,752 8,138,600 8,142,400 EXPENDITURES Wages 1,065,595 1,215,500 1,406,800 Benefits 532,304 556,300 685,600 Operating expenditures 1,932,211 2,660,900 3,465,200 Repair and maintenance 2,189,124 2,190,000 2,334,100 Utilities 48,869 52,000 57,500 Contract services 907,737 739,900 691,200 Equipment purchases 21,160 40,200 32,700 TOTAL EXPENDITURES 6,697,000 7,454,800 8,673,100 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 47,752 683,800 530,700) BEGINNING FUND BALANCE 511,186 558,938 19242738 Reserved for inventory - - Unreserved 558,938 1,242,738 712,038 ENDING FUND BALANCE $ 558 938 1,242 738_ 712 038 EMPLOYEE BENEFITS FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Service charges $ 12,332,899 $ 13,086,000 $ 14,038,500 Employee contributions 2,423,501 2,630,000 2,704,000 Other 278,504 436,500 430,000 TOTAL REVENUES 15,034,904 16,152.,500 17,172,500 EXPENDITURES Health Preferred Provider Organization 6,034,839 6,550,000 7,605,200 Health Maintenance Organization 4,143,730 4,182,000 4,645,000 Health prescriptions 2,104,045 2,350,000 2,500,000 Dental 680,289 731,000 880,300 Other benefits 169,859 167,000 187,200 Total 13,132,762 13,980,000 15,817,700 Worker's Compensation Third party administration 62,400 62,400 65,600 Claims paid 956,382 1,385,000 1,000,000 Excess insurance 79,500 82,700 99,300 Safety management 168,251 183,900 197,200 Total 1,266,533 1,714,000 1,362,100 M General Unemployment 22,399 105,000 100,000 Short-term debility 505,447 350,000 425,000 Total 527,846 455,000 525,00 TOTAL EXPENDITURES 14,927,141 16,149,000 17,704,800 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 107,763 3,500. (532,300) BEGINNING FUND BALANCE 4,060,927 .4,168,690 4,172,190 Unreserved 4,168,690 4,172,190 3,639,890 ENDING FUND BALANCE $ 4168 690 $ 4.172.190 $ 3,639,89 GENERAL LIABILITY FUND STATEMENT OF REVENUES AND EXPENDITURES Actual Estimated Budget FY 2007 FY 2008 FY 2009 REVENUES Transfers in $ 775,000 $ 825,000 $ 725,000 Other 62,559 50,000 50,000 TOTAL REVENUES 837,559 875,000 775,000 EXPENDITURES Professional services 9,331 100,000 100,000 Claims paid 536,610 815,8Q0 840,000 Other insurance 4,136 4,200 4,500 TOTAL EXPENDITURES 550,077 920,000 944,500 EXCESS(DEFICIT)REVENUES OVER EXPENDITURES 287,482 (45,000) (169,500) BEGINNING FUND BALANCE 1,001,109 1,288,591 1,243,691 Reserved for unpaid claims - - - Unreserved 1,288,591 1,243,591 1,074,091 ENDING FUND BALANCE $ 1,288,591 $ 1,243,591 $ 1,074,091 8 September 30,2008 Consider adopting the FY 2009 Capital Program RICH WITH OPPORTUNITY BEA,UMON* T • E • $ • A - s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider adopting the FY 2009 Capital Program. RECOMMENDATION Administration recommends Council adopt the FY 2009 Capital Program as submitted to Council May 13, 2008 and revised August 12, 2008. BACKGROUND Article VI, Section 20 states that"the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing and on or before the twenty-seventh(27') day of the last month of the current fiscal year." The Capital Program was originally submitted to Council on May 13, 2008. It was revised and submitted to Council on August 12, 2008. A work session and public hearing was scheduled for September 2, 2008, but due to Hurricane Gustav it was cancelled. In the wake of Hurricane Gustav, a special called meeting to hold a public hearing was scheduled to be held on September 1 Vh, but due to Hurricane Ike, it was also cancelled. In addition, regularly scheduled council meetings were not able to be held on September 16" or 23rd due to Hurricane Ike. No official action was able to be taken by the Council on or before September 27, 2008 due to Hurricanes Gustav and Ike. In an effort to fully inform the citizens of Beaumont, a work session and public hearing are being held on September 30, 2008 to review the FY 2009 Capital Program. BUDGETARY IMPACT In the proposed FY 2009 Capital Program, projects in the design or construction phase total $458,458,000 and include 355,470,000 in Public Works and General Improvements projects and 102,988,000 in Water and Sewer projects. Projects in the planned phase total $100,936,000 which includes $84,060,000 in Public Works projects and 16,876,000 in Water and Sewer projects. The total capital program costs for all projects in the design or construction phase and the planned phase is $559,394,000. RESOLUTION NO. WHEREAS, the FY 2009 Capital Program was originally submitted to Council on May 13, 2008, and again, with revisions, on August 12, 2008; and WHEREAS,Article VI, Section 20, of the Charter of the City of Beaumont states that "the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing and on or before the twenty-seventh (27th) day of the last month of the current fiscal year;" and WHEREAS, public hearings scheduled for September 2, and September 11, 2008, were cancelled due to disaster declarations and mandatory evacuations made necessary by Hurricanes Gustav and Ike; and WHEREAS, the City Council is of the opinion that the Capital Program, as attached hereto as Exhibit 'A" should be adopted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the FY 2009 Capital Program is hereby adopted. The Capital Program is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - PUBLIC WORKS PROJECTS Original Recommended Estimated Time Schedule Des-ion or Construction Phase Cost FY 2009-2011 Avenue A-Washington to US 69 S $ 8,820,000 Calder- Main to Phelan 60,000,000 [1) Cartwright/Codey-Ditch 100d 1,500,000 [2) College Street - IH-10 to Goliad 9,220,000 Concord IV - E. Lucas to Hwy. 105 19,200,000 [3) Delaware-Concord to Dowlen 14,500,000 Dowlen - College to Walden 14,200,000 [4) Dowlen - US 69 N to Delaware 12,700,000 Downtown Improvements Park&Neches - College to Laurel 10,180,000 Willow -Crockett to North 1,320,000 [5) Pearl Street - Calder to North 680,000 Wan-Neches to ML King 6,000,000 Future Improvements 1,000,000 East Lucas-US 69 N to Pine 15,120,000 Eleventh Street - Washington to US 69 N 18,900,000 Fannett Road 760,000 Fannin Street-4th to 11 th 6,300,000 Gladys Street - IH-10 to Dowlen 10,080,000 Gulf-Live Oak to Delaware 2,700,000 Hayes Gully 2,790,000 [s) Illuminated Street Markers Signalized Intersections 1,200,000 Laurel - IH-10 to Office Park 5,640,000 Madison-Irving to Grove 2,970,000 Magnolia-Delaware to E. Lucas 9,350,000 Main Street - Calder to Blanchette 6,800,000 North Street - ML King to Twenty-Third 9,100,000 Old Dowlen - Dowlen to Hwy. 105 7,320,000 [7) Regina-Howell to Thomas 1,920,000 Rolfe Christopher - US 69 S to Virginia 6,600,000 School Sidewalk Program 1,200,000 Seventh Street - IH-10 to Laurel 5,040,000 Street Rehabilitation Program 3,600,000 Traffic Signal Controllers 380,000 Washington - IH-10 to ML King 19,980,000 Washington - Langham to Major 8,050,000 [S) (1) Includes FEMA funding o($31,555,000 and ORCA funding of$1,950.000. The estimated cost to the City is$26,495,000. [2) This Is a joint participation project with Jefferson county Drainage District No.6.The estimated cost to the City is$1,500,000. [3) includes Federal Highway Administration funding up to$7,375,000. [4) Includes Federal Highway Administration Funding of$2,764,800. 01 Includes Federal Highway Administration Funding of$512,000. [ej This is a participation project with Jefferson County Drainage District No.6.The estimated cost to the City is$700,200 M includes TxDOT funding up to$4,000,000. [81 Includes Federal Highway Administration Funding of$3,080,000. EXHIBIT "A" PUBLIC WORKS PROJECTS Recommended Estimated Time Schedule Planned Proiects Cost FY 2009-2013 Babe Zaharias Drive $ 1,700,000 Caldwood Outfall 6,600,000 Dowlen - Delaware to Gladys 9,000,000 High School Ditch 10,960,000 Magnolia - Laurel to Delaware 9,430,000 Moore Street Relief 7,060,000 North Main Street - Calder to RR Tracks 2,270,000 Phelan - IH-10 to Dowlen 19,660,000 Pine Street - IH-10 to Crockett 4,550,000 Sabine Pass-Emmett to ML King 3,370,000 South Park Relief 9,460,000 GENERAL IMPROVEMENT PROJECTS Recommended Estimated Time Schedule Pesion or Construction Phase Cost FY 2009-2013 Alice Keith Park Improvements $ 1,300,000 Athletic Complex Improvements 1,000,000 [1] Athletic Complex Tennis Center 3,000,000 City Hall Improvements 750,000 Civic Center Improvements 1,000,000 Communications Building 1,200,000 Downtown Event Center&Park 8,000,000 Downtown Waterway 6,000,000 EMS Station No.2 550,000 Fire Station Relocations Fire Stations No. 1 and 7 4,500,000 Fire Station No. 11 1,000,000 Fire Station No. 2 1,000,000 Fleet Fire Maintenance Facility 1,500,000 Fleet Service Center Improvements 2,500,000 Mike and Bike Trail Phase 11-Delaware to Folsom 1,000,000 Municipal Airport Improvements 4,500,000 [2] Police Department Property Building 1,300,000 Police Department Chiller Replacement 750,000 Public Health Complex 4,000,000 Property Acquisition and Site Improvements 1,000,000 Riverfront Park Improvements 2,500,000 Senior Center 2,300,000 Transportation Operations Shop 2,600,000 Tyrrell Historical Library Addition 2,400,000 Tyrrell Park Improvements 1,500,000 [3] 11] Includes FEMA funding of$138,000 for Complex 4 [2] Improvements to be funded by the Federal Aviation Adm.on 80/20 and 90/10 basis [3] Includes funding from the Capital Reserve Fund in the amount of$1,050,000. WATER AND SEWER PROJECTS Recommended Estimated Time Schedule Desinn or Construction Phase Cost FY 2009-2011 Master Plan for Water&Sewer Systems $ 400,000 Water Department Security System 250,000 Water Projects: 36"Transmission Line 8,800,000 Ammonia Addition to Loeb Well 250,000 Automatic Flushing Devices 100,000 Loeb Tank Rehabilitation 230,000 Water Bottling Plant 1,500,000 Water Line and Fire Hydrant Installation/Replacement 3,000,000 Water Rights Study 200,000 Water Treatment Plant Improvements-Phase 1 10,500,000 Sewer Projects; 54"Central Trunk Rehabilitation 5,500,000 60"Trunk Line Rehabilitation 4,600,000 72"and W'Trunk Line Rehabilitations 4,600,000 Degrdter-Wastewater Treatment Plant 5,900,000 Dredge Ponds 1 and 2 at Wastewater Treatment Plant 400,000 East Lucas Relief Project 1,600,000 Florida Avenue and Fannett Road Interceptors 3,000,000 Frint Lift Station 740,000 Grit Pump Replacement-Wastewater Treatment Plant 1,150,000 Lift Station Repairs 900,000 Sanitary Sewer Rehabilitation-Small Mains(Pipe Bursting) 6,000,000 Wastewater Treatment Plant Aerobic Digesters 350,000 Wastewater Treatment Plant Bar Screens 1,300,000 Wastewater Treatment Plant Generators 2,900,000 Wastewater Treatment Plant Master Plan 600,000 Wetlands Design&Rehabilitation 10,250,000 WATER AND SEWER PROJECTS Recommended Estimated Time Schedule De_sign or Construction Phase Cost FY 2009-2011 Water/Sewer for Street Projects: Avenue A-Washington To US 69 S $ 780,000 Calder- Main to Phelan 2,496,000 College Street- IH-10 to Goliad 1,008,000 Concord IV-E. Lucas to Hwy. 105 1,368,000 Delaware-Concord to Dowlen 3,276,000 Dowien-College to Walden 1,872,000 Dowlen-US 69 N to Delaware 1,092,000 Downtown Improvements: Park&Neches-College to Laurel 150,000 Willow-Crockett to North 50,000 Pearl Street-Calder to North 50,000 Wall-Neches to ML King 50,000 East Lucas-US 69 N to Pine 2,304,000 000 Eleventh Street-Washington to US 69 N 528,000 Fannet Road- 11th Street to Cardinal Drive 240,000 Fannin Street-4th to 11th 544,000 Florida Avenue-Avenue A to US 69 S 330,000 Gladys Street-IH-10 to Dowlen 1,536,000 Gulf Street-Live Oak to Delaware 624,000 Laurel- IH-10 to Office Park 588,000 Madison- Irving to Grove 132,000 Magnolia-Delaware to E. Lucas 1,068,000 North Street- ML King to Twenty-Third 1,152,000 Old Dowlen-Dowlen to Hwy. 105 636,000 Regina-Howell to Thomas 456,000 Rolfe Christopher- US 69 S to Virginia 550,000 Seventh Street- IH-10 to Laurel 612,000 Washington- 11-1-10 to ML King 2,400,000 Washington- Langham to Major 2,076,000 WATER AND SEWER PROJECTS Recommended Estimated Time Schedule Planned Pros Cost FY 2009-2013 Sanitary Sewer Rehabilitation-Small Mains(Pipe Bursting) $ 4,000,000 Wastewater Treatment Plant Ground Improvements 1,000,000 Water Treatment Plant Improvements- Phase 11 6,750,000 Water/Sewer for Street Projects: Babe Zaharias Drive 50,000 Dowlen Road- Delaware to Gladys 756,000 Magnolia- Laurel to Delaware 1,860,000 North Main Street-Calder to RR Tracks 204,000 Phelan 11-1-10 to Dowlen 708,000 Pine Street- IH-10 to Crockett 528,000 Sabine Pass-Emmett to ML King 1,020,000 9 September 30,2008 Consider ratifying the budgeted property tax increase reflected in the FY 2009 Budget RICH WITH OPPORTUNITY 11E A.[I 1�1 C1 I ( T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: September 30, 2008 REQUESTED ACTION: Council to ratify the budgeted property tax increase reflected in the FY 2009 Budget. RECOMMENDATION Administration recommends Council take a separate vote to ratify the budgeted property tax increase reflected in the FY 2009 Budget which will raise more total property taxes than last year's budget by $3,897,000 or 11% and of that amount $962,060 is tax revenue to be raised from new property added to the tax roll this year. BACKGROUND Section 102 of the Local Government Code was amended and is effective for budgets being adopted after September 1, 2007. Section 102.007 was amended to include the following: "Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law." BUDGETARYIMPACT The FY 2009 Budget includes $3,897,000 more in property tax revenues than was included in the FY 2008 Budget. ORDINANCE NO. ENTITLED AN ORDINANCE RATIFYING THE BUDGETED PROPERTY TAX INCREASE REFLECTED IN THE FY 2009 BUDGET. WHEREAS, the proposed FY 2009 budget will raise more total property taxes than last year's budget by $3,897,000 or 11%; and, WHEREAS, the adoption of a budget that will raise more revenue from property taxes than in the previous year requires a vote separate from and in addition to the vote to adopt the budget; NOW THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the property tax increase reflected in the budget which will raise more total property taxes than last year's budget by $3,897,000 be and the same is hereby, by separate vote, ratified. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - 10 September 30,2008 Consider accepting the tax roll and establishing the property tax rate for the tax year 2008 (FY 2009) RICH WITH OPPORTUNITY 17E A►11 1�1 El I ( T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: September 30, 2008 REQUESTED ACTION: Council consider accepting the tax roll and establishing the property tax rate for the tax year 2008 (FY 2009). RECOMMENDATION Administration recommends that Council accept the Jefferson County Appraisal District's Certified Tax Roll and adopt a property tax rate of$0.64 for the tax year 2008 (FY 2009). The tax rate would be apportioned $0.433897/$100 to the General Fund and $0.206103 to the Debt Service Fund. Section 26.05(b) of the Property Tax Code, mandates the language in the motion to adopt the tax rate if the tax rate exceeds the effective tax rate. Administration recommends the motion to adopt the tax rate be made as follows, in order to allow explanation of the actual decrease in the tax rate while still including the statement mandated by law. The mandated language is shown in bold. "I move that property taxes be increased by the adoption of a tax rate of 0.640000 cents. This tax rate reflects a 1.4 cent decrease from the 2007 tax rate." BACKGROUND Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rates. State law requires all taxing units to adopt their tax rates before the later of September 30 or the 60' day after the taxing unit receives the appraisal roll. State law also requires the adoption of the Budget before the tax rate. "This same chapter of the Property Tax Code dictates language that is required to be included in the ordinance that "sets a tax rate that, if applied to the total taxable value, will impose an amount of taxes to fund maintenance and operation expenditures of the taxing unit that exceeds the amount of taxes imposed for that purpose in the preceding year." The statement that must be included in the City's ordinance setting the tax rate is as follows in bold: Adopt 2008 Tax Rate September 30, 2008 Page 2 This tax rate will raise more taxes for maintenance and operations than last year's tax rate. In accordance with truth-in-taxation laws, two public hearings were held on August 26, 2008 and due to Hurricanes Gustav and Ike, on September 30, 2008. In addition, all required notices were published in the newspaper, on the City's website, and on the municipal channel. BUDGETARY IMPACT Applying the proposed tax rate of$0.6400 and a 97% collection rate, budgeted revenues of $26,651,000 and $12,659,000 respectively to the General and Debt Service Funds are anticipated. ORDINANCE NO. ENTITLED AN ORDINANCE ACCEPTING THE TAX ROLL FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX RATE; PROVIDING FOR LEVYING, ASSESSING AND COLLECTING OF AD VALOREM -TAXES FOR THE TAX YEAR 2008 (FY 2009); PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. WHEREAS, the Jefferson County Appraisal District has furnished to the City of Beaumont the certified tax roll for the City of Beaumont as of July 30, 2008, to be $6,332,199,832; and, WHEREAS,the City Council finds thatthe tax roll submitted by the Jefferson County Appraisal District should be accepted and that a tax rate in the amount of$0.64 per each $100 of value for the tax year 2008 (FY 2009) should be established based upon said roll; and WHEREAS, THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. NOW THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That the tax roll submitted to the City Council by the Jefferson County Appraisal District, a summary of which is attached as Exhibit "A", and showing the total net taxable assessed value of all property within the City to be$6,332,199,832 is hereby approved and accepted by the City of Beaumont. Section 2. That there shall be and is hereby levied and shall be assessed and collected for the tax year 2008 (FY 2009), for municipal purposes only, an ad valorem tax rate of$0.64 on each $100 worth of property located within the city limits of the City of Beaumont made taxable by law, which said taxes, when collected, shall be for the purposes hereinafter set forth as follows: General Fund $0.433897 Debt Service Fund $0.206103 Section 3. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 4. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of September, 2008. - Mayor Becky Ames - „TATE OF TEXAS ) COUNTY OF JEFFERSON ) CERTIFICATION OF 2008 APPRAISAL ROLL FOR City of Beaumont I,Roland R. Bieber, Chief Appraiser for the Jefferson County Appraisal District, solemnly swear that the attached is that portion of the approved Appraisal Roll of the Jefferson County Appraisal District that lists property taxable by and constitutes the appraisal roll for City of Beaumont. July 30, 2008 Date Roland R. Bieber,RPA Chief Appraiser Jefferson County Appraisal District 2008 APPRAISAL ROLL INFORMATION 2008 Gross Value $7,096.465,504 2008 Gross Taxable Value (Net Appraised) $6,654,617,475 Total Number of Accounts 64,298 #of Accounts with Homestead Exemption 24.234 # of Accounts with Over-65 Exemption 7,860 # of Accounts with Disabled Exemption 1,393 #of Accounts with Veterans Exemption 686 # of Agriculture-Use Accounts 227 #of Exempt Accounts 4,158 2008 Taxable Value $6.332,199,832 RECEIVED BY: DATE: EXHIBIT "A” TAX=CALCULATIONS 221 JEFFERSON COUNTY APPRAISAL DISTRICT CITY OF BEAUMONT 7/30/2008 10.12.19 ADP3TAXC 2008 APPRAISAL ROLL 12310403 PAGE 1 RATES AND * TAX RATE * HOMESTEAD LOCAL OPTION OOZ * OVER SIXTY-FIVE LOCAL OPTION 17,500 * DISABILITY LOCAL OPTION 17,500 ALLOWANCES * $ .654000 * STATE MANDATED 0 * STATE MANDATED 0 * STATE MANDATED 0 ACCOUNTS SUB-TOTALS GROSS VALUE IN DISTRICT 64.298 7,096,465,504 0 * MINUS EXEMPT ACCOUNTS 4,158 404,517,349 6,691,948,155 MINUS AGRICULTURE ACCOUNTS 227 MARKET VALUE 37,970,290 PRODUCTION VALUE 820,560 LOSS DUE TO AG EXEMPTIONS 37,149,730 6,654,798,425 SUBJECT TO LATE PENALTY 0 POLLUTION CONTROL 2 180,950 6,654,617,475 FREEPORT ACCOUNTS 0 0 6,654,617,475 LEASED VEHICLES 0 0 6,654,617,475 PRIMARILY CHARITABLE ORG B 0 6,654,617,475 NET APPRAISED VALUE 60,130 6,654,617,475 LOSS DUE TO LIMIT 15,248 152,717,533 6,501,899,942 ABATED ACCOUNTS 0 0 6,501,899,942 HISTORICAL ACCOUNTS 7 3,228,150 6,498,671,792 EXEMPTIONS STATE MANDATED HOMESTEAD 24,234 0 6,498,671,792 STATE MANDATED 065 7.860 0 6,498,671,792 ,393 0 6,498,671,792 STATE MANDATED DISABLED 7 LOCAL OPTION 065 7,860 136,197, 170 6,362,474,622 LOCAL OPTION DISABLED 1,393 24,005,520 6,3381469,102 LOCAL OPTION HOMESTEAD 24,234 0 160,202,690 6,338,469, 102 VETERAN EXEMPTIONS 0 0 EXEMPTION CODE 1 @ 0 181 901,240 EXEMPTION CODE 2 @ 5000 62 444,630 EXEMPTION CODE 3 @ 7500 8 659,790 EXEMPTION CODE 4 @ 10000 1 668 1,259,790 EXEMPTION CODE 5 @ 12000 258 2,963,820 EXEMPTION CODE 6 @ 12000 0 0 EXEMPTION CODE 7 C@ 12000 9 40,000 EXEMPTION CODE 8 C@ 5000 686 6,269,270 TOTAL VETERAN NET TAXABLE 6,332,199,832 GROSS TAX AMOUNT .00654000 - - - - - - - - - - --- - -- - -- - - - - - - - - • --- --- - ---- - - - --- ------ - - - - - - - -- -- - - - - -> $ 41,412,591.98 ** 065 FROZEN TAX ACCOUNTS 0 065 BEFORE FROZEN TAX .00 MINUS 065 FROZEN TAX 00 LOSS DUE TO FROZEN TAX *** .00 0 DISABL FROZEN ACCOUNTS 00 DISABLE BEFORE FROZEN TAX .00 MINUS DISABL FROZEN TAX LOSS DUE TO FROZEN TAX *** .00 NETTAX AMOUNT - --- - - - - - -- ---- ----- -- - - -- ---- ------ ------- -- - --- -- -- --- - - - -- - - • - -- • > $ 41,412,591.98 ** GROSS TAX AMOUNT IS CALCULATED ON AN INDIVIDUAL ACCOUNT BASIS INCLUDES 3 PRORATED EXEMPT ACCOUNTS TOTAL PRORATED EXEMPT AMOUNT 31,669 ;TATE OF TEXAS ) COUNTY OF JEFFERSON ) CERTIFICATION OF 2008 APPRAISAL ROLL FOR City of Beaumont I,Roland R. Bieber, Chief Appraiser for the Jefferson County Appraisal District, solemnly swear that the attached is that portion of the approved Appraisal Roll of the Jefferson County Appraisal District that lists property taxable by and constitutes the appraisal roll for City of Beaumont. July 30, 2008 Date Roland R. Bieber,RPA Chief Appraiser Jefferson County Appraisal District 2008 APPRAISAL ROLL INFORMATION 2008 Gross Value $7,096,465,504 2008 Gross Taxable Value (Net Appraised) $6,654,617,475 Total Number of Accounts 64,298 #of Accounts with Homestead Exemption 24,234 #of Accounts with Over-65 Exemption 7.860 # of Accounts with Disabled Exemption 1,393 # of Accounts with Veterans Exemption 686 # of Agriculture-Use Accounts 227 #of Exempt Accounts 4,158 2008 Taxable Value $6,332,199,832 RECEIVED BY: DATE: EXHIBIT "A" TAX-CALCULATIONS 221 JEFFERSON COUNTY APPRAISAL DISTRICT CITY OF BEAUMONT 7/30/2008 10.12.19 ADP3TAXC 2008 APPRAISAL ROLL 12310403 PAGE 1 RATES AND * TAX RATE * HOMESTEAD LOCAL OPTION OOX * OVER SIXTY-FIVE LOCAL OPTION 17,500 * DISABILITY LOCAL OPTION 17,500 ALLOWANCES * $ .654000 * STATE MANDATED 0 * STATE MANDATED 0 * STATE MANDATED 0 ACCOUNTS SUB-TOTALS GROSS VALUE IN DISTRICT 64,298 7,096,465,504 0 * MINUS EXEMPT ACCOUNTS 4,158 404,517,349 6,691,948,155 MINUS AGRICULTURE ACCOUNTS 227 MARKET VALUE 37,970,290 PRODUCTION VALUE 820,560 LOSS DUE TO AG EXEMPTIONS 37,149,730 6,654,798,425 SUBJECT TO LATE PENALTY 0 POLLUTION CONTROL 2 180,950 6,654,617,475 FREEPORT ACCOUNTS 0 0 6,654,617,475 LEASED VEHICLES 0 0 0 6,654,617,475 6,654,617,475 PRIMARILY CHARITABLE ORG 8 NET APPRAISED VALUE 60,130 6,654,617,475 LOSS DUE TO LIMIT 15,248 152,717,533 6,501,899,942 ABATED ACCOUNTS 0 0 6,501,899,942 HISTORICAL ACCOUNTS 7 3,228,150 6,498,671,792 EXEMPTIONS STATE MANDATED HOMESTEAD 24-,234 0 6,498,671,792 STATE MANDATED 065 7,860 0 6,498,671,792 STATE MANDATED DISABLED 1,393 0 6,498,671,792 LOCAL OPTION 065 7,860 136,197,170 6,36Z,474,622 LOCAL OPTION DISABLED 1,393 24,005,520 6,338,469,102 LOCAL OPTION HOMESTEAD 24,234 0 160,202,690 6,338,469, 102 VETERAN EXEMPTIONS EXEMPTION CODE 1 @ 0 O 0 EXEMPTION CODE 2 @ 5000 181 901,240 EXEMPTION CODE 3 @ 7500 62 444,630 EXEMPTION CODE 4 @ 10000 68 659,790 EXEMPTION CODE 5 @ 12000 108 1,259,790 EXEMPTION CODE 6 @ 12000 258 2,963,820 EXEMPTION CODE 7 @ 12000 0 0 EXEMPTION CODE 8 @ 5000 9 40,000 TOTAL VETERAN 686 6,269,270 NET TAXABLE 6,332,199,832 GROSSTAX AMOUNT .00654000 - -- - - - -- - --- - - --- - - - - -- --- - - --- ----- - -- - - - - - --- --------- - - - - - - - -- - -- - -- - -- - - 065 FROZEN TAX ACCOUNTS 0 $ 41,412,591.98 ** 065 BEFORE FROZEN TAX .00 MINUS 065 FROZEN TAX .00 LOSS DUE TO FROZEN TAX *** DISABL FROZEN ACCOUNTS 0 .00 DISABLE BEFORE FROZEN TAX .00 MINUS DISABL FROZEN TAX .00 LOSS DUE TO FROZEN TAX *** .00 NETTAX AMOUNT --- -- -- - - -- - --- --- --- - - - - -- --- ---- -- ---- ------- - - - - - ---- - --- - -- -- - - ---- - --- ** GROSS TAX AMOUNT IS CALCULATED ON AN INDIVIDUAL ACCOUNT BASIS $ 41,412,591.98 INCLUDES 3 PRORATED EXEMPT ACCOUNTS TOTAL PRORATED EXEMPT AMOUNT 31,669