HomeMy WebLinkAboutPACKET SEP 13 2011 BE
T • 3 • i • A • 8
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 13,2011 1:38 P.M.
CONSENT AGENDA
* Approval of minutes—September 6,2011
* Confirmation of committee appointments
Davion Harris would be appointed to the Library Commission. The term would commence
September 13,2011 and expire September 12,2013. (Councilmember Gethrel Williams-Wright)
Damion Diaz-Plumber would be appointed to the Construction Board of Appeals(Building).
The term would commence September 13,2011 and expire September 12,2013. (Mayor Becky
Ames)
Kathleen L.Leaf would be reappointed to the Library Commission. The current term would
commence September 13,2011 and expire February 15,2013. (Councilmember Mike Getz)
A. Approve Change Order No. 2 for the Cartwright/Corley Drainage Project
B. Authorize the City Nftmger to execute all documents necessary,specifically including an
interagency agreement,to trade vehicles between the City of Beaumont and Jefferson
County
C. Authorize the City Attorney to bring suit to collect delinquent hotel occupancy taxes due
the City of Beaumont by Candlewood Suites/KJP Hospitality,LLC/Prendiville Revocable
Trust
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the following appointments be made:
Appointment Commission Beginning g&Wration
Of Term of�T.ran
Davion Harris Library Commission 09/13/11 09/12/13
Damion Dias-Plumber Construciton Board of Appeals 09/13/11 09/12/13
(Building)
THAT the following reappointment be made:
Reappointment Commission BeginninnB ggptra 2n
of Term of Term
Kathleen L. Leaf Library Commission 09/13/11 02/15/13
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
A
RICH WITH OPPORTUNITY
IL
BEA City Council Agenda Item
T • B • % A S
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Patrick Donar?;Public Works Director
MEETING DATE: September 13, 2011
REQUESTED ACTION: Council consider a resolution authorizing approval of
Change Order No. 2 for the Cartwright/Corley Drainage
Project.
RECOMMENDATION
The Administration recommends approval of Change Order No. 2 in the amount of$72,092.00,
for adding construction items for sidewalks and driveways to the Cartwright/Corley Drainage
Project.
BACKGROUND
The Council authorized the acceptance of a grant through the Department of Rural Affairs
(TDRA)on November 17,2009 for Supplemental Disaster Recovery Non-Housing Activities.
The approved projects to be funded through this grant are Riverfront Park Bank Stabilization and
Cartwright/Corley Drainage Improvement.
The Cartwright/Corley Drainage Project is a participation project with Drainage District No.6
(DD6)and the Texas Department of Rural Affairs(TDRA). The Project includes the installation
of detention ponds and an underground storm drainage system in the Cartwright/Corley area
between 4'street and IH 10. The project also includes the relocation of water and sanitary sewer
services from 5'street to the railroad tracks.
The existing driveways and sidewalks are in very poor condition and require replacement. This
aspect of the construction was not included in the original design as the allocated funds were not
available in the grant.
The proposed extra work will increase the contract by 7.60%,which increases the contract
amount to $1,059,841.55.
Cartwright/Corley Drainage Project
September 13,2011
Page 2
Previous actions include:
Resolution 11-096 in the amount of$948,949.55 was passed by City Council on March 8,2011.
Resolution 11-187 in the amount of$38,800 was passed by City Council on June 28, 2011.
BUDGETARY IMPACT
The TDRA grant will fund$869,277 of this project. The balance is available in the Capital
Program.
CITY OF BEAUMONT
DATE: Aupst 29,2011
PROJECT: CartrrfBYtlCorley Drainage Project
OWNER: City of B"ou"t
CONTRACTOR: Brystar Coatr2ctla8,Inc.
CHANGE ORDER NO.: 02
'`ay��
Change Order No.2 is for all cost associated with installing items listed below.
Gen {ten DescrlIM9 Usk � y w New Qnsss Unit
No. Cade Q� Q s D1111 Price Amount
104 002 R1940VElDXTTN60RR46WAY SY 400.09 1176.00 776.00 $17.00 $13192.
465 005 CllLVW 00NlQCTa7M TO MAW= EA O 1.00 120 $2.850 $2,850
530 001 C0WC W E ORNEWAYS N9 SY 400.00 1176.00 776.00 5$0 $38,800.
531 001 REMOVE AND REPLACE C CONCRETE BDEWALK SY 100100 675.00 575.00 530.00 $17,250.00
ADD TOTAL AMOUNT
ORIGINAL CONTRACT AMOUNT: $948,949.55
NET FROM PREVIOUS CHANGE ORDERS: $%7,74935
TOTAL AMOUNT OF THIS CHANGE ORDER: 572,092.00
PERCENT OF THIS CHANGE ORDER: 7AW*
TOTAL PERCENT CHANGE ORDER TO DATE: 11.69%
NEW CONTRACT AMOUNT: $1,059,841.55
: ; . 1E1�A:��1A►(�,� '�!#�'#I.Ai '�`�°�1���+w�•1�'k'` M�°�✓'��4�v�.4r' E . .......: .. r.:E:E::
ACCEPTED BY:
CONTRACTOR
RECOMMENDED BY:
PATRICK DONART,P.E., DAMON JONES,X.I.T.
PUBLIC WORKS DIRECTOR
APPROVED BY: ATTESTED BY:
KYLE HAYES,CITY MANAGER TINA BROUSSARD,CITY CLERK
RESOLUTION NO.
WHEREAS, on March 8, 2011, the City Council of the City of Beaumont, Texas,
passed Resolution No. 11-096 awarding a contract in the amount of$948,949.55 to Brystar
Contracting, Inc., of Beaumont, Texas, for the Cartwright/Corley Drainage Project to
include drainage boxes, street pavement and water & sewer utility service lines; and,
WHEREAS, Change Order No. 1 in the amount of$38,800 was required to furnish
all labor, equipment, materials, and supervision associated with installing a new sanitary
sewer line on Corley Street between 5th and 6th Streets on the north side of the road,
thereby increasing the contract amount to $987,749.55; and,
WHEREAS, Change Order No. 2 in the amount of$72,092 is required for adding
construction items for sidewalks and driveways to the Cartwright/Corley Drainage Project,
thereby increasing the contract amount to $1,059,841.55;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and
THAT the City Manager be and he is hereby authorized to execute Change Order
No. 2 for additional work described above, thereby increasing the contract amount by
$72,092, for a total contract amount of$1,059,841.55.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
RICH WITH OPPORTUNITY
BEAUMUN*
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Frank C. Coffin, Jr., Chief of Police
MEETING DATE: September 13, 2011
REQUESTED ACTION: Consider authorizing the City Manager to execute all
documents necessary, specifically including an interagency
agreement,to trade vehicles between the City of Beaumont
and Jefferson County.
RECOMMENDATION
Administration recommends approval.
BACKGROUND
The Beaumont Police Department and the Jefferson County Sheriff s Office cooperate regularly
to conduct criminal investigations. The Beaumont Police Department currently operates a seized
sport utility vehicle which would be traded for a van outfitted with surveillance equipment
owned by Jefferson County. This trade would be mutually beneficial to both agencies.
BUDGETARYIMPACT
None.
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 execute an interagency
agreement with the Jefferson County Sheriffs Office for the exchange of a 2007 Toyota
FJ Cruiser sport utility vehicle,VIN No. JTEBU 11 F270087380, for a 1999 Ford F-350 1AID
surveillance van, VIN No. 1 FTSS34S4XHB54822, for use by the Beaumont Police
Department Narcotics Unit. The agreement is substantially in the forms attached hereto
as Exhibit "A."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
INTERAGENCY AGREEMENT
JEFFERSON COUNTY SHERIFF'S OFFICE
STATE OF TEXAS §
COUNTY OF JEFFERSON §
This Interlocal Contract ("Contract") is entered into by and between The Jefferson County
Sheriffs Office, hereinafter referred to as ("JCSO"), and the Beaumont Police Department, a
municipal police department situated in Jefferson County, Texas, hereinafter called ("BPD"),
pursuant to Chapter 791 of the Texas Government Code, concerning interlocal cooperation
contracts. The Contract is being approved by Jefferson County, ("County"), a political
subdivision of the State of Texas, and the City of Beaumont ("City"), a municipal corporation
situated in Jefferson County, Texas.
WITNESSETH
WHEREAS,"JCSO"and"BPD"Narcotics Units cooperate and help each other regularly on
investigations, surveillance operations,undercover operations,to their mutual advantage. With
regard to vehicles owned by "JCSO" and"BPD" and used in the performance of their assigned
duties, each department owns a vehicle that we would like to trade for our mutual advantage.
NOW,THEREFORE,IT IS HEREBY AGREED AS FOLLOWS:
ARTICLE I
CONSIDERARTION
1.01 As consideration of this Agreement,"JSCO"will transfer ownership of a 1999 Ford
F-350/AID Surveillance Van,VIN No. 1FTSS34S4XHB54822 to the Beaumont Police
Department.
1.02 In return, "BPD"will transfer ownership of a 2007 Toyota FJ Cruiser,
VIN No. JTEBU11F270087380 to the Jefferson County Sheriffs Office.
ARTICLE II
ASSURANCES
2.01 The Parties to this Agreement are governed by the Texas Tort Claims Act, Chapter
101.001 et. seq., Civil Practice and Remedies Code. The Parties warrant and represent
to each other that they are self-insured or commercially insured for all claims falling
within the Texas Tort Claims Act. The Parties do not intend to waive immunity or any
protection afforded them, individually or collectively, under the law.
EXHIBIT "A"
2.02 Each Party will assume all liability arising from the operation of these vehicles by its
employees.
ARTICLE III
LEGAL CONSTRUCTION
3.01 In case any one or more of the provisions contained in this Agreement shall be held to be
invalid, illegal, or unenforceable in any respect, such an invalidity, or unenforceability
shall not affect any other provision thereof, and this Agreement shall be construed as if
such invalid,illegal, or unenforceable provision had never been contained herein.
ARTICLE IV
ENTIRE AGREEMENT
4.01 This Agreement supersedes any and all other agreements, either oral or in writing
between the Parties hereto with respect to the subject matter hereof, and no other
agreement or statement relating to the subject matter of this Agreement which is not
contained herein shall be valid or binding.
EXECUTED IN DUPLICATE ORIGINALS, EACH OF WHICH SHALL HAVE THE FULL
FORCE AND EFFECT OR AN ORIGINAL, ON THIS THE DAY OF
2011.
FOR JEFFERSON COUNTY
G. Mitch Woods
Jefferson County Sheriff
Jeff Branick
Jefferson County Judge
FOR THE CITY OF BEAMONT
Frank Coffin
Chief of Police
Kyle Hayes
City Manager
RICH WITH OPPORTUNITY C
B EA.Uml
T • E • x • A • s City CaUnel Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tyrone E. Cooper, City Attorney bfA��
MEETING DATE: September 13, 2011
REQUESTED ACTION: Consider a resolution authorizing the City Attorney to bring
suit to collect delinquent hotel occupancy taxes due the
City of Beaumont by Candlewood Suites/KJP Hospitality,
LLC/Prendiville Revocable Trust.
RECOMMENDATION
Administration recommends approval of a resolution authorizing the City Attorney to bring suit
to collect delinquent hotel occupancy taxes due the City of Beaumont by Candlewood Suites/KJP
Hospitality, LLC/Prendiville Revocable Trust.
BACKGROUND
State law gives to the City of Beaumont authority to levy a tax not to exceed seven percent(7%)
of the cost of occupancy of any room or space paid for in a hotel. The hotel or its representative
is required to collect the occupancy tax and remit same to the City of Beaumont in a timely
manner as it becomes due. The City of Beaumont has enacted Article III, Chapter 25, Sections
25-50 through 25-56, of the Code of Ordinances to address hotel occupancy taxes. State law also
gives to the City Attorney authority to bring suit against the person who has collected and failed
to pay the tax to the City when due. At the same time, authority is given to enjoin the person
from operating a hotel until the tax is paid in full.
Candlewood Suites at 5355 Clearwater Court in Beaumont is delinquent in the remittance of the
hotel occupancy taxes collected for the period of time of May 31, 2011,through August 31,
2011, in the estimated amount of$34,564.09, including penalties and interest.
Request is hereby made to bring suit to collect these delinquent hotel occupancy taxes due the
City of Beaumont by Candlewood Suites/KJP Hospitality, LLC/Prendiville Revocable Trust.
This matter was discussed in an Executive Session on June 7, 2011.
BUDGETARYIMPACT
Potentially recoverable revenue in the amount of$34,564.09.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Attorney is hereby authorized to file and prosecute a lawsuit against
Candlewood Suites/KJP Hospitality, LLC/Prendiville Revocable Trust, Beaumont, Texas,
to collect delinquent hotel occupancy taxes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
Alex !ITK orf,O�lUNITY
BE
T * 3 * X * A 9
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 13,2011 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 authorizing a contract for third party administration of the City's self
funded Dual Option Preferred Provider Organization medical plan and a self
funded dental plan
2. Consider approving medical insurance premiums for retirees
3. Consider approving a tlu-ee-year contract with Cigna for Basic Life and Accidental
Death and Dismemberment, Supplemental Life and Accidental Death and
Dismemberment and Dependent Life Insurance
4. Consider approving an amendment to the promissory note from Crockett Street
Development, Ltd.
5. Consider granting a new solid waste collection and transportation service
franchise to Liquid Vacserv, LLC
6. Consider adopting an ordinance establishing the 7%contribution rate for Civilian
employees who are members of the Texas Municipal Retirement System
WORKSESSIONS
* Review and discuss the Code Enforcement Process
* Review and discuss the Street Rehabilitation Program
* Review and discuss the delivery of Emergency Medical Services
* Review and discuss a request from Lighthouse United,Inc.
(Transformation Beaumont)
CO1 EdENTS
* Councilmembers/City Manager comment on various matters
* Public Comment(Persons are limited to 3 minutes)
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or
services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting.
1
September 13,2011
Consider authorizing a contract for third party administration of the City's self funded Dual
Option Preferred Provider Organization medical plan and a self funded dental plan
RICH WITS OPPORTUNITY
BE
T 0 E 0 x 0 A 0 S City Ccc
Atenda Item
TO: City Council
FROM: Kyle Hayes,City Manager
PREPARED BY: Lillie Babino,Human Resources Director
MEETING DATE: September 13,2011
REQUESTED ACTION: Council consider authorizing a contract for third party
administration of the City's self funded Dual Option Preferred
Provider Organization medical plan and a self funded dental
plan.
RECOMMENDATION
The Administration recommends that Council award to Blue Cross Blue Shield of Texas(BCBSTX)
a one year contract effective January 1,2012 for third party administration of the City's self funded
Dual Option Preferred Provider Organization(PPO)medical plan and a self funded dental plan.
BACKGROUND
The City offers its full time employees medical and dental benefits.The medical and dental
benefits consist of a self funded Dual Option PPO plan and a self funded dental plan. There are
1469 participants enrolled in the PPO plan,consisting of 1257 active employees,207 retirees,
and 5 COBRA participants.
In May 2011, City staff began analyzing the City's health care costs. In June 2011,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 PPO,and dental plans or remain
with the current administrator,BCBSTX for 2012. The City has the option to negotiate new
rates with BCBSTX without seeking bids. The current agreement with BCBSTX started January
1,2011 and can be renewed for up to five years.
After analyzing and negotiating the BCBS renewal rates,City staff and Holmes Murphy
concluded that BCBSTX,the incumbent carrier,offered the most cost effective plans with an
extensive provider network and deep provider discounts. Initial renewal rates projected by
BCBSTX for the self funded PPO plan increased 12.0%for fixed costs which include stop loss
and administration. Actual claims experience resulted in the high initial renewal projection.
Renewal rates for the self funded dental plan did not increase. Final negotiations by Holmes
Murphy&Associates resulted in the PPO plan renewal increases being less than 7%. The PPO
plan increase was a function of increased utilization due to aging members,rising trend factors
and increasing provider payments.
Medical and Dental Insurance
September 13,2011
Page 2
Holmes Murphy&Associates 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 trend of 8.5%.
Staff recommends implementation of the following rates to be paid by the City for PPO and
Dental administration effective January 1, 2012:
2011 Monthly PPO Stop Loss 2012 Monthly PPO Stop Loss
and Administration Rates and Administration Rates
Employee Only $71.24 $75.60
Employee+ 1 Dependent $110.01 $117.68
Employee+Family $110.01 $117.68
2011 Monthly Dental 2012 Monthly Dental
Administration Rates Administration Rates
Employee Only $5.66 $5.66
Employee+ 1 Dependent $5.66 $5.66
Employee+Family $5.66 $5.66
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 one-year agreement
with Blue Cross Blue Shield of Texas (BCBSTX)for third party administration of the City's
self-funded Dual Option Preferred Provider Organization (PPO) medical plan and self-
funded dental plan effective January 1, 2012.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
2
September 13,2011
Consider approving medical insurance premiums for retirees
RICH WITH OPPORTUNITY
BEAUMOKI*
i
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 13, 2011
REQUESTED ACTION: Council consider approving medical insurance premiums for
retirees.
RECOMMENDATION
Administration recommends approval of medical contribution rates for retirees including their
dependents, effective January 1, 2012.
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 207 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 on January I'annually." This same formula is
utilized when calculating the contribution rate for civilian retirees.
The City requested Holmes Murphy &Associates, our benefits consultant,to analyze the City's
health costs and to determine the 2012 medical COBRA rates. Holmes Murphy recommends no
change in rates for 2012. Based on Holmes Murphy & Associates, retiree medical rates
effective January 1, 2012 will be as follows:
Retiree Medical Plan Rates for 2012
September 13, 2011
Page 2
Plan 2012 2012 2012 2012 2011
and Category Medical Prescription COBRA Retiree Retiree
Rate Drug Rate Rate* Rate Rate
BASIC PPO (EO) $332.63 $67.03 $399.66 $275.77 $275.77
(El) $823.38 $165.94 $989.32 $573.81 $573.81
(E2) $1081.32 $217.95 $1299.27 $701.61 $701.61
PREMIUM PPO(EO) $379.00 $67.03 $446.03 $307.76 $307.76
(El) $908.98 $165.94 $1074.92 $623.45 $623.45
(E2) $1311.89 $217.95 $1529.84 $826.11 $826.11
*Rate does not include COBRA administration fee.
BUDGETARYIMPACT
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 annual
medical contribution rates for retirees including their dependents effective January 1,2012:
Plan 2012 2012 2012 2012 2011
and Category Medical Prescript! COBRA Retiree Retiree
Rate on Drug Rate* Rate Rate
Rate
BASIC PPO (EO) $332.63 $67.03 $399.66 $275.77 $275.77
(E1) $823.38 $165.94 $989.32 $573.81 $573.81
(E2) $1081.32 $217.95 $1299.27 $701.61 $701.61
PREMIUM PPO $379.00 $67.03 $446.03 $307.76 $307.76
(EO)
(E1) $908.98 $165.94 $1074.92 $623.45 $623.45
(E2) j $1311.89 j $217.95 j $1529.84 j $826.11 j $826.11
*Rate does not include COBRA administration fee.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
RESOLUTION NO.
3
September 13,2011
Consider approving a three-year contract with Cigna for Basic Life and Accidental Death and
Dismemberment, Supplemental Life and Accidental Death and Dismemberment and Dependent
Life Insurance
RICH WITH OPPORTUNITY
BEAUMON*
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 13, 2011
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, 2012 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 1264 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 2011, 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 two 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, Cigna and Minnesota Life.
Upon receipt and review of the proposals,Minnesota Life was eliminated from consideration
because their proposed rates were higher for basic and supplemental life coverage. Cigna's
renewal rates for both basic life/AD&D, supplemental life/AD&D and dependent life remained
the same as the current rates.
Basic Life/AD&D and Supplemental Life/AD&D/Dependent Life
September 13, 2011
Page 2
A pricing analysis of the proposals received are as follow:
EE Counts � . � �.� �., : 3.=�����te ���
Rabe 1264 $0.125 $0.17
INoWft Rate 1264 $0.03 $0.03
$8,037 $10,370
$1246440
x
p U 3
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 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, 2012.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
4
September 13,2011
Consider approving an amendment to the promissory note from Crockett Street Development,
Ltd.
RICH WITH OPPORTUNITY
B ,EAUMON ok
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 13, 2011
REQUESTED ACTION: Council considering approving Amendment No. 2 to the
Promissory Note payable to the City of Beaumont by
Crockett Street Development,Ltd.
RECOMMENDATION
Administration recommends Council approve an amendment to the promissory note from
Crockett Street Development, Ltd,to restructure the terms of the note, specifically reducing the
interest rate to 3.25%and consistent monthly payments of$24,332.99,beginning October 1,
2011,until the payoff on February 1, 2018.
BACKGROUND
Crockett Street Development,Ltd., entered into a promissory note with the City of Beaumont on
November 23, 1999. The note had an original interest rate of 5%and stated that"the rate of
interest payable hereunder shall be subject to adjustment from time to time and may be increased
as provided in the Loan Agreement to an amount equal to the rate of interest charged to Payee
pursuant to the Contract for Loan Guarantee Assistance under Section 108, dated February 5,
1999." Subsequently the interest rate was increased to 7.76582%pursuant to Amendment No. 1,
dated February 1, 2002.
Crockett Street Development,Ltd., has requested a reduction in the current interest rate to 3.25%,
down from 7.76582%. The City's HUD Section 108 Loan was refinanced in July of 2010,
resulting in a lower interest rate. The loan has a serial structure with a separate interest rate for
each installment we make. We pay interest twice a year and principle once a year. The rates
range from .56%at August 1,2011 to 3.12%upon payoff August 1, 2018. Administration
recommends granting the request.
The note is currently structured the same way as the City's Section 108 Loan which includes
principal payments that increase every twelve(12)payments and interest calculated accordingly,
resulting in the monthly payment varying each month. Administration recommends the note be
restructured to be equal monthly payments, maturing-the same date as the original loan: monthly
payments of$24,332.99 and payoff on February 1, 2018. This will allow Crockett Street
Development,Ltd.,to better plan for their payments.
Crockett Street Promissory Note
September 13, 2011
Page 2
The original Promissory Note,Amendment No. 1,proposed Amendment No. 2, and the proposed
amortization schedule is attached for review.
BUDGETARY IMPACT
The payments from the promissory note are applied to the City's semiannual payments on the
Section 108 Loan. Reducing the interest rate will result in$288,664 less in interest to be
received over the remainder of the loan,but does not adversely affect the City due to the
reduction in the amount of interest owed on the Section 108 Loan as a result of the refinancing.
AMENDMENT NO. 2
TO
PROMISSORY NOTE
This Amendment No. 2 to Promissory Note is an amendment to that certain Promissory
Note dated November 23, 1999 (the "Note"), executed by CROCKETT STREET
DEVELOPMENT, LTD. (The "Maker") in the original principal amount of THREE
MILLION DOLLARS ($3,000,000), payable to the order of THE CITY OF
BEAUMONT, TEXAS (the "City"). By this Amendment No. 1, the Maker and the City
agree to amend the Note as follows:
1.
Effective October 1, 2011, the rate of interest payable under the Note is adjusted to be
equal to 3.25%.
2.
The principal amount outstanding as of the date of this Amendment is $1,689,000.
Effective October 1, 2011, the Maker will pay a monthly installment of $24,332.99,
continuing through February 1, 2018, and in accordance with the attached amortization
schedule. The parties agree that at such time as the Maker has repaid the $1,689,000 of
the Amendment No. 2 of the Note,.the monthly principal payment schedule shall cease
and no further principal payments will be due.
3.
Except as amended by this Amendment No. 2, all other terms and provisions of the Note
and all liens granted to secure the Note and all agreements and instruments executed in
connect with the Note shall remain in full force and effect.
AGREED TO EFFECTIVE as of September 13, 2011.
MAKER:
CROCKETT STREET DEVELOPMENT,LTD.
By: Beaumont Crockett Street Management,Inc.
Its: General Partner
By:
PAYEE:
THE CITY OF BEAUMONT,TEXAS
By:
Kyle Hayes, City Manager
Crockett Street Equal Payments @3.25%Mature 2/1/18 9/8/2011 11:48 AM Pagel
Compound Period: Exact Days
Nominal Annual Rate: 3.250%
CASH FLOW DATA
Event Date Amount Number Period End Date
1 Loan 9/1/2011 1,689,000.00 1
2 Payment 10/1/2011 24,332.99 77 Monthly 2/1/2018
AMORTIZATION SCHEDULE-Normal Amortization
Date Payment Interest Principal Balance
Loan 9/1/2011 1,689,000.00
1 10/1/2011 24,332.99 4,511.71 19,821.28 1,669,178.72
2 11/1/2011 24,332.99 4,607.39 19,725.60 1,649,453.12
3 12/1/2011 24,332.99 4,406.07 19,926.92 1,629,526.20
2011 Totals 72,998.97 13,525.17 59,473.80
4 1/1/2012 24,332.99 4,497.94 19,835.05 1,609,691.15
5 2/1/2012 24,332.99 4,443.19 19,889.80 1,589,801.35
6 3/1/2012 24,332.99 4,105.17 20,227.82 1,569,573.53
7 4/1/2012 24,332.99 4,332.45 20,000.54 1,549,572.99
8 5/1/2012 24,332.99 4,139.27 20,193.72 1,529,379.27
9 6/1/2012 24,332.99 4,221.51 20,111.48 1,509,267.79
10 7/1/2012 24,332.99 4,031.61 20,301.38 1,488,966.41
11 8/1/2012 24,332.99 4,109.96 20,223.03 1,468,743.38
12 9/1/2012 24,332.99 4,054.13 20,278.86 1,448,464.52
13 10/1/2012 24,332.99 3,869.19 20,463.80 1,428,000.72
14 11/1/2012 24,332.99 3,941.67 20,391.32 1,407,609.40
15 12/1/2012 24,332.99 3,760.05 20,572.94 1,387,036.46
2012 Totals 291,995.88 49,506.14 242,489.74
16 1/1/2013 24,332.99 3,828.60 20,504.39 1,366,532.07
17 2/1/2013 24,332.99 3,772.00 20,560.99 1,345,971.08
18 3/1/2013 24,332.99 3,355.71 20,977.28 1,324,993.80
19 4/1/2013 24,332.99 3,657.35 20,675.64 1,304,318.16
20 5/1/2013 24,332.99 3,484.14 20,848.85 1,283,469.31
21 6/1/2013 24,332.99 3,542.73 20,790.26 1,262,679.05
22 7/1/2013 24,332.99 3,372.91 20,960.08 1,241,718.97
23 8/1/2013 24,332.99 3,427.48 20,905.51 1,220,813.46
24 9/1/2013 24,332.99 3,369.78 20,963.21 1,199,850.25
25 10/1/2013 24,332.99 3,205.08 21,127.91 1,178,722.34
26 11/1/2013 24,332.99 3,253.60 21,079.39 1,157,642.95
27 12/1/2013 24,332.99 3,092.33 21,240.66 1,136,402.29
2013 Totals 291,995.88 41,361.71 250,634.17 9/8/2011 11:48 AM Page 2
28 1/1/2014 24,332.99 3,136.78 21,196.21 1,115,206.08
29 2/1/2014 24,332.99 3,078.27 21,254.72 1,093,951.36
30 3/1/2014 24,332.99 2,727.39 21,605.60 1,072,345.76
31 4/1/2014 24,332.99 2,959.97 21,373.02 1,050,972.74
32 5/1/2014 24,332.99 2,807.39 21,525.60 1,029,447.14
33 6/1/2014 24,332.99 2,841.56 21,491.43 1,007,955.71
34 7/1/2014 24,332.99 2,692.48 21,640.51 986,315.20
35 8/1/2014 24,332.99 2,722.50 21,610.49 964,704.71
36 9/1/2014 24,332.99 2,662.85 21,670.14 943,034.57
37 10/1/2014 24,332.99 2,519.06 21,813.93 921,220.64
38 11/1/2014 24,332.99 2,542.82 21,790.17 899,430.47
39 12/1/2014 24,332.99 2,402.59 21,930.40 877,500.07
2014 Totals 291,995.88 33,093.66 258,902.22
40 1/1/2015 24,332.99 2,422.14 21,910.85 855,589.22
41 2/1/2015 24,332.99 2,361.66 21,971.33 833,617.89
42 3/1/2015 24,332.99 2,078.34 22,254.65 811,363.24
43 4/1/2015 24,332.99 2,239.58 22,093.41 789,269.83
44 5/1/2015 24,332.99 2,108.32 22,224.67 767,045.16
45 6/1/2015 24,332.99 2,117.25 22,215.74 744,829.42
46 7/1/2015 24,332.99 1,989.61 22,343.38 722,486.04
47 8/1/2015 24,332.99 1,994.26 22,338.73 700,147.31
48 9/1/2015 24,332.99 1,932.60 22,400.39 677,746.92
49 10/1/2015 24,332.99 1,810.42 22,522.57 655,224.35
50 11/1/2015 24,332.99 1,808.60 22,524.39 632,699.96
51 12/1/2015 24,332.99 1,690.09 22,642.90 610,057.06
2015 Totals 291,995.88 24,552.87 267,443.01
52 1/1/2016 24,332.99 1,683.92 22,649.07 587,407.99
53 2/1/2016 24,332.99 1,621.41 22,711.58 564,696.41
54 3/1/2016 24,332.99 1,458.15 22,874.84 541,821.57
55 4/1/2016 24,332.99 1,495.58 22,837.41 518,984.16
56 5/1/2016 24,332.99 1,386.33 22,946.66 496,037.50
57 6/1/2016 24,332.99 1,369.20 22,963.79 473,073.71
58 7/1/2016 24,332.99 1,263.69 23,069.30 450,004.41
59 8/1/2016 24,332.99 1,242.14 23,090.85 426,913.56
60 9/1/2016 24,332.99 1,178.40 23,154.59 4031758.97
61 10/1/2016 24,332.99 1,078.53 23,254.46 380,504.51
62 11/1/2016 24,332.99 1,050.30 23,282.69 357,221.82
63 12/1/2016 24,332.99 954.22 23,378.77 333,843.05
2016 Totals 291,995.88 15,781.87 276,214.01
64 1/1/2017 24,332.99 921.50 23,411.49 310,431.56
65 2/1/2017 24,332.99 856.88 23,476.11 286,955.45
66 3/1/2017 24,332.99 715.42 23,617.57 263,337.88
67 4/1/2017 24,332.99 726.88 23,606.11 239,731.77
68 5/1/2017 24,332.99 640.38 23,692.61 216,039.16
69 6/1/2017 24,332.99 596.33 23,736.66 192,302.50 9/8/2011 11:48 AM Page 3
70 7/1/2017 24,332.99 513.68 23,819.31 168,483.19
71 8/1/2017 24,332.99 465.06 23,867.93 144,615.26
72 9/1/2017 24,332.99 399.18 23,933.81 120,681.45
73 10/1/2017 24,332.99 322.37 24,010.62 96,670.83
74 11/1/2017 24,332.99 266.84 24,066.15 72,604.68
75 12/1/2017 24,332.99 193.94 24,139.05 48,465.63
2017 Totals 291,995.88 6,618.46 285,377.42
76 1/1/2018 24,332.99 133.78 24,199.21 241266.42
77 2/1/2018 24,332.99 66.57 24,266.42 0.00
2018 Totals 48,665.98 200.35 48,465.63
Grand Totals 1,873,640.23 184,640.23 1,689,000.00
Last interest amount decreased by 0.41 due to rounding.
AMENDMENT NO. 1
TO
PROMISSORY NOTE
This Amendment No. 1 to Promissory Note is an amendment to that certain Promissory
Note dated November 23, 1999 (the "Note', executed by CROCKETT STREET
DEVELOPMENT, LTD. (the "Maker") in the original principal amount of THREE MU U0N
DOLLARS ($3,000,000.00),payable to the order of THE CITY OF BEAVMONT,TEXAS (the
"City"). By this Amendment No. 1,.the Maker and the City agree to amend the Note as follows:
1.
Effective as of February 1, 2002,the rate of interest payable under the Note is adjusted to be
equal to 7.76582%.
2.
The parties acknowledge that the Terms of Payment provisions contained on page 2 of the
Note provide for the repayment of monthly installments of principal, beginning on November 1,
2002 and continuing until November 1, 2019. The parties further acknowledge that under the
principal payment schedule contained on page 2 of the Note, the aggregate monthly principal
payments exceed the original principal amount of the Note of$3,000,000. The parties agree that at
such time as the Maker has repaid the $3,000,000 of original principal of the Note, the monthly
principal payment schedule under the Note shall cease and no further principal payments shall be
due.
1
atCF SEC%FOX DOCUMENTS16OMBEAUMONT SECTION 106 FINANCING 19WCROCKE"STREEMOM OOCJMENTSWNENOMENT NO.1 TO NOTE.DOC
3.
Except as amended by this Amendment No. 1, all other terms and provisions of the Note
and all liens granted to secure the Note and all agreements and instruments executed in connection
with the Note shall remain in full force and effect.
AGREED TO EFFECTIVE as of February 1, 2002.
MAKER:
CROCKETT STREET DEVELOPMENT,LTD.
By. Beaumont Crockett Street Management,Inc.
Its: General Partner
By:
Torn Flanagan,President
PAYEE:
THE CITY OF BEAUMONT,TEXAS
By:
Title: City Manager
2
%%LCF SEC%FOX DOCUMENTSIBONMEAUMONT SECTION 108 FMANCING 19N CROCKETT STREET=2 DOCUMENTSW AENDME14T NO.1 TO NOTE_DOC
February 18, 2002
CROCKETT STREET DEVELOPMENT, LTD.
c/o Tom Flanagan
Flanagan Shipping Corporation
200 Stedman Building
490 Park Street
Beaumont, Texas 77701
Accrued interest due and owing through February 1, 2002, under $3,000,000
Promissory Note executed by Crockett Street Development, Ltd.. payable to the City of
Beaumont, Texas.
$.115,188.99
Mail payments to City of Beaumont
Cash Management
P.O. Box 3827
Beaumont, TX 77704
1
UCF SECIFOX DOCUMENTSOONOMAUMONT SECTION 108 FINANCING 19mCROCKETT ST wr2m DocLwENT%NTEREST STATEMENT.DOC
ti OV28/02 09:07 V 01002
PROMISSORY NOTE
RE- Crockett Street Development Project
DATE: November 23, 1999
MAKER: CROCKETT STREET DEVELOPMENT, LTD.
MAKER'S MAILING ADDRESS:
c/o Tom Flanagan
Flanagan Shipping Corporation
200 Stedman Building
490 Park Street
Beaumont,Texas 77701
PAYEE: THE CITY OF BEAUMONT,TEXAS
PLACE FOR PAYMENT:
&01 Main Street
Beaumont,Texas 77701
PRINCIPAL AMOUNT:
The lesser of THREE MILLION DOLLARS ($.3,000,000.00) or so much of the
principal as actually withdrawn and outstanding hereunder from time to time. Subje Dan
the terns of that certain Loan Agreement dated November 23, 1999 (th e
Agreement"), between Maker (as.Borrower) and Payee (as Lender), Maker shall have the
right to make draws of principal under this Note from time to time and at any time during
the term hereof u to the maximum principal amount of THREE MILUON DOLLARS
($3,000,000.00). Maker shall submit a written request to Payee for each draw and shall
comply with all of the terms and provisions of the Loan Agreement. if Payee approves
the request, Payee shall advance and loan the amount requested to Maker in accordance
with the terms of this note.
ANNUAL INTEREST RATE ON UNPAID PRINCIPAL:
The initial rate of interest payable hereunder shall be equal to
F t r percent ._0o %) per annum on ail withdrawn, and
outstanding prinupal. he rate f interest payable hereunder shall be subject to
ad'ustment from time to time and rna be mere as prov m e Dan reeme t to
an amount equal to the rate v in�ecest chargeci�Fyee pursuant
fo that cett�iin contract
for an u rantee Assistance Under S dates Febrvatv999, between
Payee and the Secretary of Housing and Urban Development.
ANNUAL INTEREST RATE ON MATURED UNPAID AMOUNTS:
Eighteen Percent (18%) per annum
UALfTLIMMDIFOX
0=mj!wv&oNomAumcr4T bvcnON 196 FINANC"o j99%CR0CXM sTRa7WUM FLLM"D 10.3049DOC
01128/02 09:07 $ 0 005
TERMS OF PAYMENT:
interest shall be payable under this Note on the first day of each month as tt
accrues on the outstanding principal amount that has been drawn hereunder by
Borrower. Payment of the principal of this Note shall be paid as follows:
Until November 1,2001 $4)'
y November 1,2001 to October 1, 2002 $-0- per month
November 1,2002 to October 1, 2003 $9,000 per month
November 1.2003 to October 1. 2004 $10,000 per month
November 1, 2004 to October 1. 2005 $10,500 per month
November 1, 2005 to October 1, 2006 $11,000 per month
November i, 2006 to October 1, 2007 $12,500 per month
November 1, 2007 to October 1, 2008 $13,000 per month
November 1, 2008 to October 1, 2009 $14,500 per month
November 1, 2009 to.October 1, 2010 $15,000 per month
November 1., 2010 to October 1,2011 $16,500 per month
November 1, 2011 to October 1, 2012 $18,000 per month
November 1, 2012 to October 1,2013 $19,000 per month
November 1, 2013 to October 1, 2014 $21,000 per month
November 1, 2014 to October 1, 2015 $22,500 per month
November 1, 2015 to October 1, 2016 $24,000 per month
November 1, 2016 to October 1., 2017 $25,500 per month
November 1, 2017 to October 1, 2018 $28,000 per month
November 1, 2018 to October 1, 2019 $30,000 per month
November 1, 2019 Balance payable in full
Each monthly installment of principal shall be payable on the 151 day of each
month, in accordance with the above schedule, together with all accrued interest
on the outstanding principal valance. The entire unpaid principal balance of the
2
%%AUrjMwaw,ox DOCUM&MMONDaMMONT sEcrIOW iae Fy"NCM I Cj0.TT STRCFr CTE memm lo-w2s_wc
U1 14011.14 ub:UO u yyvui
note and all accrued interest shall be due and payable in full on November 11
2p19_
Maker may prepay the outstanding principal in whole or in part at any time without
penalty. Any partial prepayments of principal shall be applied to the final principal
payment and shall not reduce the monthly installments of principal due hereunder.
SECURITY FOR PAYMENT:
A second lien dead of trust lien on certain real estate located at Crockett, all Pearl
and Main Street, Beaumont, Texas; and a second lien security t ue
Maker's.equipment,furnishings and other property.
Payment of this Note is also partially guaranteed by the Limited Guaranty of Tom
Flanagan and the Limited Guarantee of,toe E. Penland, Sr.
Maker�romises to pay. the order of Payee at amount for
rapayment
n hereunder
according to the terms of payment the outstanding interest spent
plus interest at the rate stated amounts shall be�duee y theynaf W payment
as provided herein. All unpaid
date..
In Maker defaults in the payment of this Note or in the performance of any after
obligation in any instrument securing or default and tthentirrie main which it must be
Payee gives Maker written notice of the me
cured, as may be required by law or ee,9or�-Makerf de Maker aultseuunnd thpey o n
,of any -ether-4ndebtedness- owed-to.--Pa y
Agreement,then Payee may declare the unpaid principal balance and earned interest on
this Note immediately due and payable and Payee may, refuse to grant any
advances of principal to Maker. Maker and eachnsurety, tes of intention to accelerate
all demands for paymerd, presentations for pay
maturity, notices of acceleration of maturity, protests and notices of protests.to the extent
permitted by law.
— -y{this-N01:6-or any instrument securing ht collateral riection or enforce an
rnent, or�ifyn for
S
collection or enforcerneni, or d suit 9 other judicial proceedings, then
colleded or enforced through probate, bankruptcy or 1
Maker shall pay Payee all reasonable costs of collection and enforcement, including
reasonable atteMy's-fees. —
Interest on the debt evidenced by this Note shall not exceed the maximum amount
of nonusurious interest that may be f��crna�imumKanioun# shalt be credited on the
under law, any interest to excess a
principal-of the-debt or;it-that has--been pai�uchn excess Maker. On hall a be l canceled
required or permitted prepayment, Y aid, credited on the
automatically as of the acceleration or prepayment or, if already p
principal of the.debt or, if the principa�o of N�at has been paid,instruments concerning this
provision overrides other provisions
debt evidenced by this Note.
3
VAMuWapox DocuueassONoeEAumow sEcTKm Toe FINANCING 10YACROCK07 ST*SM 1 WE REV&sI 10-30-W.Dor
Uli Lo/v16 va.vo u
When the context rpequires, singular nouns and pronouns include the plural.
CROCKETT STREET DEVELOPMENT, LTD.
By: Beaumont Crockett Street Management, Inc:
its: General Partner
'.��
By: nt
Toro Flanagan, Pros
a
vaoTE ''o-s.00� 10'
wvsU►�x $� a roe f ANc ,sovcaoc ST P&
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council of the City of Beaumont approves Amendment No. 2 to the City's
Loan Agreement with Crockett Street Development, Ltd. The amended Agreement is
substantially in the form attached hereto as Exhibit "A."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
September, 2011.
- Mayor Becky Ames -
AMENDMENT NO. 2
TO
PROMISSORY NOTE
This Amendment No. 2 to Promissory Note is an amendment to that certain Promissory
Note dated November 23, 1999 (the "Note"), executed by CROCKETT STREET
DEVELOPMENT, LTD. (The "Maker") in the original principal amount of THREE
MILLION DOLLARS ($3,000,000), payable to the order of THE CITY OF
BEAUMONT, TEXAS (the "City"). By this Amendment No. 2, the Maker and the City
agree to amend the Note as follows:
1.
Effective October 1, 2011, the rate of interest payable under the Note is adjusted to be
equal to 3.25%.
2.
The principal amount outstanding as of the date of this Amendment is $1,689,000.
Effective October 1, 2011, the Maker will pay a monthly installment of $24,332.99,
continuing through February 1, 2018, and in accordance with the amortization schedule
attached hereto as Exhibit "A." The parties agree that at such time as the Maker has
repaid the $1,689,000 of the Amendment No. 2 of the Note, the monthly principal
payment schedule shall cease and no further principal payments will be due.
3.
Except as amended by this Amendment No. 2, all other terms and provisions of the Note
and all liens granted to secure the Note and all agreements and instruments executed in
connect with the Note shall remain in full force and effect.
EXHIBIT "A"
AGREED TO EFFECTIVE as of September 13, 2011.
MAKER:
CROCKETT STREET DEVELOPMENT,LTD.
By: Beaumont Crockett Street Management,Inc.
Its: General Partner
By:
PAYEE:
THE CITY OF BEAUMONT,TEXAS
By:
Kyle Hayes, City Manager
Crockett Street Equal Payments @3.25° Mature 2/1/18 9/8/2011 12:31 PM Pagel
Compound Period: Exact Days
Nominal Annual Rate: 3.250°
CASH FLOW DATA
Event Date Amount Number Period End Date
1 Loan 9/1/2011 1,689,000.00 1
2 Payment 10/1/2011 24,332.99 77 Monthly 2/1/2018
AMORTIZATION SCHEDULE-Normal Amortization
Date Payment Interest Principal Balance
Loan 9/1/2011 1,689,000.00
1 10/1/2011 24,332.99 4,511.71 19,821.28 1,669,178.72
2 11/1/2011 24,332.99 4,607.39 19,725.60 1,649,453.12
3 12/1/2011 24,332.99 4,406.07 19,926.92 1,629,526.20
2011 Totals 72,998.97 13,525.17 59,473.80
4 1/1/2012 24,332.99 4,497.94 19,835.05 1,609,691.15
5 2/1/2012 24,332.99 4,443.19 19,889.80 1,589,801.35
6 3/1/2012 24,332.99 4,105.17 20,227.82 1,569,573.53
7 4/1/2012 24,332.99 4,332.45 20,000.54 1,549,572.99
8 5/1/2012 24,332.99 4,139.27 20,193.72 1,529,379.27
9 6/1/2012 24,332.99 4,221.51 20,111.48 1,509,267.79
10 7/1/2012 24,332.99 4,031.61 20,301.38 1,488,966.41
11 8/1/2012 24,332.99 4,109.96 20,223.03 1,468,743.38
12 9/1/2012 24,332.99 4,054.13 20,278.86 1,448,464.52
13 10/1/2012 24,332.99 3,869.19 20,463.80 1,428,000.72
14 11/1/2012 24,332.99 3,941.67 20,391.32 1,407,609.40
15 12/1/2012 24,332.99 3,760.05 20,572.94 1,387,036.46
2012 Totals 291,995.88 49,506.14 242,489.74
16 1/1/2013 24,332.99 3,828.60 20,504.39 1,366,532.07
17 2/1/2013 24,332.99 3,772.00 20,560.99 1,345,971.08
18 3/1/2013 24,332.99 3,355.71 20,977.28 1,324,993.80
19 4/1/2013 24,332.99 3,657.35 20,675.64 1,304,318.16
20 5/1/2013 24,332.99 3,484.14 20,848.85 1,283,469.31
21 6/1/2013 24,332.99 3,542.73 20,790.26 1,262,679.05
22 7/1/2013 24,332.99 3,372.91 20,960.08 1,241,718.97
23 8/1/2013 24,332.99 3,427.48 20,905.51 1,220,813.46
24 9/1/2013 24,332.99 3,369.78 20,963.21 1,199,850.25
25 10/1/2013 24,332.99 3,205.08 21,127.91 1,178,722.34
26 11/1/2013 24,332.99 3,253.60 211079.39 1,157,642.95
27 12/1/2013 24,332.99 3,092.33 21,240.66 1,136,402.29
EXHIBIT "A"
2013 Totals 291,995.88 41,361.71 250,634.17 9/8/2011 12:31 PM Page 2
28 1/1/2014 24,332.99 3,136.78 21,196.21 1,115,206.08
29 2/1/2014 24,332.99 3,078.27 21,254.72 1,093,951.36
30 3/1/2014 24,332.99 2,727.39 21,605.60 1,072,345.76
31 4/1/2014 24,332.99 2,959.97 21,373.02 1,050,972.74
32 5/1/2014 24,332.99 2,807.39 21,525.60 1,029,447.14
33 6/1/2014 24,332.99 2,841.56 21,491.43 1,007,955.71
34 7/1/2014 24,332.99 2,692.48 21,640.51 986,315.20
35 8/1/2014 24,332.99 2,722.50 21,610.49 964,704.71
36 9/1/2014 24,332.99 2,662.85 21,670.14 943,034.57
37 10/1/2014 24,332.99 2,519.06 21,813.93 921,220.64
38 11/1/2014 24,332.99 2,542.82 21,790.17 899,430.47
39 12/1/2014 24,332.99 2,402.59 21,930.40 877,500.07
2014 Totals 291,995.88 33,093.66 258,902.22
40 1/1/2015 24,332.99 2,422.14 21,910.85 855,589.22
41 2/1/2015 24,332.99 2,361.66 21,971.33 833,617.89
42 3/1/2015 24,332.99 2,078.34 22,254.65 811,363.24
43 4/1/2015 24,332.99 2,239.58 22,093.41 789,269.83
44 5/1/2015 24,332.99 2,108.32 22,224.67 767,045.16
45 6/1/2015 24,332.99 2,117.25 22,215.74 744,829.42
46 7/1/2015 24,332.99 1,989.61 22,343.38 722,486.04
47 8/1/2015 24,332.99 1,994.26 22,338.73 700,147.31
48 9/1/2015 24,332.99 1,932.60 22,400.39 677,746.92
49 10/1/2015 24,332.99 1,810.42 22,522.57 655,224.35
50, 11/1/2015 24,332.99 1,808.60 22,524.39 632,699.96
51 12/1/2015 24,332.99 1,690.09 22,642.90 610,057.06
2015 Totals 291,995.88 24,552.87 267,443.01
52 1/1/2016 24,332.99 1,683.92 22,649.07 587,407.99
53 2/1/2016 24,332.99 1,621.41 22,711.58 564,696.41
54 3/1/2016 24,332.99 1,458.15 22,874.84 541,821.57
55 4/1/2016 24,332.99 1,495.58 22,837.41 518,984.16
56 5/1/2016 24,332.99 1,386.33 22,946.66 496,037.50
57 6/1/2016 24,332.99 1,369.20 22,963.79 473,073.71
58 7/1/2016 24,332.99 1,263.69 23,069.30 450,004.41
59 8/1/2016 24,332.99 1,242.14 23,090.85 426,913.56
60 9/1/2016 24,332.99 1,178.40 23,154.59 403,758.97
61 10/1/2016 24,332.99 1,078.53 23,254.46 380,504.51
62 11/1/2016 24,332.99 1,050.30 23,282.69 357,221.82
63 12/1/2016 24,332.99 954.22 23,378.77 333,843.05
2016 Totals 291,995.88 15,781.87 276,214.01
64 1/1/2017 24,332.99 921.50 23,411.49 310,431.56
65 2/1/2017 24,332.99 856.88 23,476.11 286,955.45
66 3/1/2017 24,332.99 715.42 23,617.57 263,337.88
67 4/1/2017 24,332.99 726.88 23,606.11 239,731.77
68 5/1/2017 24,332.99 640.38 23,692.61 216,039.16
69 6/1/2017 24,332.99 596.33 23,736.66 192,302.50 9/8/2011 12:31 PM Page 3
70 7/1/2017 24,332.99 513.68 23,819.31 168,483.19
71 8/1/2017 24,332.99 465.06 23,867.93 144,615.26
72 9/1/2017 24,332.99 399.18 23,933.81 120,681.45
73 10/1/2017 24,332.99 322.37 24,010.62 96,670.83
74 11/1/2017 24,332.99 266.84 24,066.15 72,604.68
75 12/1/2017 24,332.99 193.94 24,139.05 48,465.63
2017 Totals 291,995.88 6,618.46 285,377.42
76 1/1/2018 24,332.99 133.78 24,199.21 241266.42
77 2/1/2018 24,332.99 66.57 24,266.42 0.00
2018 Totals 48,665.98 200.35 48,465.63
Grand Totals 1,873,640.23 184,640.23 1,689,000.00
Last interest amount decreased by 0.41 due to rounding.
5
September 13,2011
Consider granting a new solid waste collection and transportation service franchise to Liquid
Vacserv, LLC
RICH WITH OPPORTUNITY
T • E
BEAUM,01N*$ • A s Ci Council A enda Item
�Y �
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: September 13, 2011
REQUESTED ACTION: Council consider granting a new solid waste collection and
transportation service franchise.
RECOMMENDATION
Administration recommends granting a solid waste collection and transportation service
franchise to Liquid Vacserv, LLC.
BACKGROUND
According to City Ordinance 22.05.101,no person shall engage in the business of collecting,
hauling or transporting, in the city, any garbage,waste or refuse,without first having obtained a
franchise from the City. Five (5) entities currently have nonexclusive franchise agreements with
the City and are doing business in this area. Liquid Vacserv, LLC has requested that the City
Council grant the company such franchise agreement. Liquid Vacsery is locally owned and
operated with its corporate office located at 2715 Laurel Street in Beaumont.
The requested franchise is generally the same as those previously approved by City Council. It
provides for a term of one year from its effective date and a franchise fee of seven percent(7%)
of gross revenues received for service. It also requires the entity to indemnify the City of
Beaumont and provide insurance which names the City of Beaumont as a named insured.
According to City Charter, franchise ordinances require readings at three (3) separate Council
meetings,with the third not less than thirty (30)days from the first reading. The ordinance does
not take effect until sixty(60) days after its adoption on the third and final reading. After
passage,the ordinance must be published for four(4)consecutive weeks in a newspaper of
general circulation in the city. All publication costs are paid by franchisee. Attached, is a copy of
the franchise agreement for your review.
This is third and final reading of the franchise ordinance.
BUDGETARYIMPACT
A franchise fee of seven percent(7%) of gross receipts is paid into the General Fund.
ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR
SOLID WASTE COLLECTION AND TRANSPORTATION
SERVICES TO LIQUID VACSERV, L.L.C.
WHEREAS, Liquid Vacserv, L.L.C. (the "Company") has requested a franchise to
operate a solid waste collection and transportation service within the City of Beaumont,
Texas (the "City"); and,
WHEREAS, the City desires to grant such franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and
Section 1.
Grant of Authority
There is hereby granted by the City to Liquid Vacserv, L.L.C. the right and privilege
to operate and maintain within the City a solid waste collection and transportation service
(the "service"). For purposes of this franchise, the term "solid waste collection and
transportation service"shall mean the regular business of collection,hauling or transporting
any garbage, rubbish, waste or refuse from locations in the City, and the disposal of such
material in accordance with law. The franchise granted herein is nonexclusive, and
franchises may be granted to other persons for service.
Section 2.
Term of Franchise
The franchise herein granted shall take effect and be in force sixty (60) days after
the final passage hereof as required by law and upon the filing by the Company of an
acceptance with the City Clerk, and shall continue in force and effect until one (1) year
thereafter. The acceptance required hereunder must be in writing and filed with the City
Clerk within thirty (30) days after final passage hereof. Upon the expiration of the term
hereof, this franchise shall continue on a month-to-month basis until terminated by either
party or extended or replaced.
Section 3.
Rates
The Company shall establish rates for service which are uniform as to customer
class based upon such criteria as type of waste, container size, frequency of collection,
and distance of travel. The Company shall file its initial rates for service with its
acceptance as required herein. Such rates shall, unless modified by the City, be effective
with the effective date of this franchise. Any modifications in rates by the Company shall
first be filed with the City Clerk and City Attorney and shall be effective thirty(30)days after
such filing unless modified by City as provided herein. Nothing herein shall prevent the
Company from charging uniform rates which are less than the rates filed with the City. The
City shall have the right to establish rates charged by Company for services performed
hereunder, after notice and hearing. Rates established by the City shall be sufficient to
allow the Company an opportunity to earn a reasonable return on its invested capital used
in providing such services.
Section 4.
Franchise Fee
The Company shall pay to the City, on or before the fifteenth (15th) day of each
month, a sum equal to SEVEN PERCENT(7%)of the gross revenues received for service
in the previous month as payment for the use of the City's streets, alleys and rights-of-way.
The payments herein provided do not relieve Company from the payment of ad valorem
taxes,special assessments, charges, or other fees applicable to the public generally. City
shall have the right, at any reasonable time, to audit the books and records of the
Company and the Company is hereby required to make such books and records available
at the request of City. Upon written acceptance, the Company shall furnish to the City a
listing of customers served, including customer name, address, frequency of pick-up, size
of container or type of service and charge for same. The following report shall be filed
monthly with the City Manager or his designee along with the street rental payment
required herein:
Upon written request and within thirty(30)days of receipt,the Company shall
furnish to the City adequate reconciliation of reported revenues which would
include: a listing of names and addresses of all customers served,frequency
of pick-up, size of container or type of service and charge for same, and date
service was initiated and discontinued.
Section 5.
Indemnity. Insurance and Bond
The Company shall at all times during the effective period of this franchise, carry
liability insurance as provided herein. The Company covenants and agrees at all times to
indemnify and save harmless the City, its officers, agents, employees, and any member
of the public against any and all injuries, damages, claims, causes of action or loss of
compensation arising or resulting from Company's operations under this franchise,whether
or not such loss was caused by the negligence of the City, its agents, servants or
employees. Upon notice given Company by City, Company must defend at its own
expense, any action or suit brought against the City because of any work or other acts
done by the Company under the terms of this franchise. Counsel chosen by Company to
defend City must be satisfactory to City. Company will pay any final judgment which might
be obtained against City by reason of any work or acts done hereunder by Company, its
agents,servants or employees,and Company will pay all damages occurring to any person
or property, public or private, resulting from any fault or neglect on its part or on the part
of its agents or employees.
The Company agrees to carry insurance as follows:
1) Workers' Compensation
The Company shall furnish the City Clerk a certificate of
insurance indicating workers' compensation coverage as
required by the State of Texas.
2) Automobile Liability Insurance
The Company shall carry, in its own name, a policy in
comprehensive form to insure the automobile liability of its
operation with limits of not less than Five Hundred Thousand
Dollars ($500,000.00) per occurrence for bodily injury and, in
addition, not less than One Hundred Thousand Dollars
($100,000.00) property damage. This policy shall name City
as an additional insured and provide for thirty(30) days notice
to City prior to cancellation. A certificate of insurance certifying
such coverage shall be filed with the City Clerk before the
effective date of this franchise, and it shall be maintained in
force during the term of the franchise.
3) General Liability
The Company shall carry, in its own name, a comprehensive
liability insurance policy including contractual coverage for
operations other than automobile with limits of not less than
Five Hundred Thousand Dollars($500,000.00)peroccurrence
for bodily injury, and One Hundred Thousand Dollars
($100,00.00) per occurrence for property damage. The policy
shall name the City as named insured and provide for thirty
(30) days notice to City prior to cancellation. A certificate of
insurance certifying such coverage shall be filed with the City
Clerk before the effective date of this franchise and maintained
in force during the term of the franchise.
Section 6.
Compliance with Laws and Ordinances
The Company shall,at all times during the term of this franchise, be subject to all
lawful exercise of police power by the City and to such reasonable regulations as the City
shall hereafter by ordinance provide. In addition,the Company will observe all city,county,
state, and federal laws regulating the collection and disposal of solid waste.
Section 7.
Service Standard and Equipment
The Company shall maintain and operate its collection system and equipment in
good order to render efficient service subject to the terms of this franchise. All vehicles,
containers, and equipment used for the collection and transportation of solid waste shall
be constructed, operated and maintained to prevent loss of liquid or solid waste material
and to minimize health and safety hazards to solid waste management personnel and the
public. Such vehicles, containers, and equipment used shall be maintained in a clean,
sanitary condition and free from odors at all times. All vehicles and equipment shall comply
with federal, state,and local regulations. Collection vehicles and all bulk, commercial, and
roll-off type containers shall be painted and numbered and shall have the Company's name
and telephone number painted in letters of a contrasting color. Such containers may not
be placed on any street or right-of-way within the City. All collections shall be made directly
from the premises of the customer and any emptied containers returned directly to such
premises.
Section 8.
Providing Services
The Company shall provide service to any person, firm, corporation, association or
entity inside the City of Beaumont who requests such service and is not delinquent in the
payment of collection charges due the Company.
Section 9.
Office
The Company shall establish and maintain an office with telephone service and shall
keep said office open for business from 9:00 A.M.to 5:00 P.M. each and every day except
Saturday, Sunday and holidays.
Section 10.
Interruption of Service
In the event that service shall be interrupted for any reason for more than forty-eight
(48) hours, the City shall have the right to make temporary independent arrangements for
the purposes of continuing this necessary service to its residents in order to provide or
protect the public health and safety. If the interruption in service mentioned herein
continues for a period of seventy-two (72) hours, then the City shall have the right to
terminate the rights and privileges granted in this franchise.
Section 11.
Termination
In the event that any provision of this franchise is violated by the Company,the City
may serve written notice upon the Company of its intention to terminate this franchise. The
notice shall contain the reasons for such intention to terminate the franchise. Unless within
ten (10)days after mailing such notice by City to the Company, such violation shall cease,
or satisfactorily arrangements for correction be made by Company, the City Council may,
after a public hearing in which Company is provided an opportunity to present evidence
concerning such violation, declare the franchise terminated and serve written notice upon
the Company of the termination and the termination of the franchise shall be effective upon
the mailing of such notice.
Section 12.
Transfer of Franchise Rights
Franchise rights granted hereunder shall not be transferred to another without the
approval of City. A single transfer or a series of transfers of Company's stock which
constitute a transfer of a majority interest in Company is subject to the prior approval of
City.
Section 13.
Notices
Where written notices are provided for in this ordinance, same shall be sufficient to
notify Company when provided by certified mail to:
Liquid Vacserv, L.L.C.
2715 Laurel Street
Beaumont, TX 77701
Notice to City is sufficient if mailed by certified mail to:
City Manager
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704
Section 14.
If any section, sentence, clause, paragraph or phrase of this ordinance, other than
Section 4, is for any reason held to be invalid or illegal, such invalidity shall not effect the
remaining portions of this ordinance. If Section 4 hereof is held to be invalid for any
reason, the ordinance shall be immediately invalid.
Section 15.
It is agreed by City and Company that venue of any legal proceedings under this
franchise agreement shall be in Jefferson County, Texas.
Section 16.
Vehicle Permits
Twenty (20) days prior to the effective date of this franchise, the Company shall
fumish to the City a list of all vehicles to be providing solid waste collection and disposal
service under this franchise. Such list shall include state license number, year, make,
model and manufacturer's rated capacity for each vehicle. Vehicles not having a valid City
of Beaumont landfill permit will not be allowed to operate under this agreement nor utilize
the City refuse disposal facility. If at any time a vehicle or equipment is found to be in
noncompliance with Section 7 of this franchise,the Company will be notified of its violation
and said equipment or vehicle shall be removed from service upon receipt of written
notification.
Failure to comply with this provision or to falsify the information concerning the
location of the service of the vehicle shall be a material breach of this franchise. Should
City decide not to terminate this franchise because of any violation of this Section,
Company's disposal fee at City's landfill shall be doubled for all of Company's vehicles for
a period of sixty (60) days.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the
30th day of August, 2011.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this
the 6th day of September, 2011.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the
day of , 2011.
- Mayor, City of Beaumont-
ACCEPTANCE:
LIQUID VACSERV, L.L.C.
By:
(Company Owner/Representative)
6
September 13,2011
Consider adopting an ordinance establishing the 7%contribution rate for Civilian employees
who are members of the Texas Municipal Retirement System
RICH WITH OPPORTVNITT
RE'AM,*
T • _ • _ * A • S City CQu e l Agenda Item
TO: City Council
FROM: Kyle Hayes,City Manager
PREPARED BY: Lillie Babino,Human Resources Director
MEETING DATE: September 13,2011
REQUESTED ACTION: Council consider adopting an ordinance establishing the
7%contribution rate for Civilian employees who are
members of the Texas Municipal Retirement System.
RECOMMENDATION
Administration recommends approval.
BACKGROUND
The City of Beaumont participates in the Texas Municipal Retirement System(TMRS),which is
a pension system for municipal employees in the state of Texas. Participation in TMRS is
mandatory and automatic for all regular full-time Police officers and Civilian employees. The
City's existing retirement plan calls for Civilian employees to contribute 5%of their gross salary
to TMRS and for Police officers to contribute 7%of their gross salary. The plan requires a 2 to 1
matching contribution from the City.
Effective January 1,2012,the City will increase the retirement contribution rate for Civilians to
7%. Increasing this rate will allow Civilian employees and Police officers to have comparable
retirement plans. This change also allows the City to offer a competitive retirement plan that is
offered by most sister cities. The TMRS ordinance requires the signature of the Mayor and City
Clerk.
BUDGETARY IMPACT
The change has an estimated cost of$763,067,across all funds,which has been included in the
FY 2012 budget.
RHTipn_
� 4
TMRS-Dep USC T CPI R
TEXAS MUNICIPAL RETIREMENT SYSTEM
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER, THE ACT GOVERNING THE
TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS" IN SAID
SYSTEM ON AN ANNUAL BASIS FOR SERVICE PERFORMED BY QUALIFYING
MEMBERS OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE OF THE ALLOWANCE
ARE IN THE EMPLOYMENT OF THE CITY OF BEAUMONT; PROVIDING FOR INCREASED
PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF
DECEASED RETIREES OF THE CITY; TO INCREASE THE RATE OF DEPOSITS TO THE
TEXAS MUNICIPAL RETIREMENT SYSTEM BY THE EMPLOYEES OF THE CITY; AND
ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
Section 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of Subtitle G of Title 8,
Government Code, as amended (hereinafter referred to as the "TMRS ACT"), each member of the Texas
Municipal Retirement System (hereinafter referred to as the "System") who has current service credit or prior
service credit in the System in force and effect on the 1 st day of January of the calendar year-preceding such
allowance, by reason of service in the employment of the City, and on such date had at least 36 months of
credited service with the System, shall be and is hereby allowed "Updated Service Credit" (as that term is
defined in subsection (d)of Section 853.402 of the TMRS Act).
(b) On the terms and conditions set out in Section 853.601 of the TMRS Act, any member of the System
who is eligible for Updated Service Credits on the basis of service with this City, who has unforfeited credit for
prior service and/or current service with another participating municipality or municipalities by reason of
previous service, and was a contributing member on the 1st day of January of the calendar year preceding
such allowance, shall be credited with Updated Service Credits pursuant to, calculated in accordance with, and
subject to adjustment as set forth in said Section 853.601, both as to the initial grant hereunder and all future
grants under this ordinance.
(c) The Updated Service Credit hereby allowed and provided for shall be 100% of the "base Updated
Service Credit" of the member(calculated as provided in subsection (c)of Section 853.402 of the TMRS Act).
(d) Each Updated Service Credit allowed hereunder shall replace any Updated Service Credit, prior
service credit, special prior service credit, or antecedent service credit previously authorized for part of the
same service.
(e) In accordance with the provisions of subsection (d) of Section 853.401 of the TMRS Act, the deposits
required to be made to the System by employees of the several participating departments on account of
current service shell be calculated from and after the effective date of this ordinance on the full amount of
such person's compensation as an employee of the City.
Page 2.
Section 2. Increase In Retirenusnt Annuities.
(a) On terms and conditions set out in Section 854.203 of the TMRS Act, the City hereby elects to allow
and to provide for payment of the increases below stated in monthly benefits payable by the System to retired
employees and to beneficiaries of deceased employees of the City under current service annuities and prior
service annuities arising from service by such employees to the City. An annuity increased under this Section
replaces any annuity or increased annuity previously granted to the same person.
(b) The amount of the annuity increase under this Section is computed as the sum of the prior service and
current service annuities on the effective date of retirement of the person on whose service the annuities are
based, multiplied by 70% of the percentage change in Consumer Price Index for All Urban Consumers, from
December of the year immediately preceding the effective date of the person's retirement to the December
that is 13 months before the effective date of this Section.
(c) An increase in an annuity that was reduced because of an option selection is reducible in the same
proportion and in the same manner that the original annuity was reduced.
(d) If a computation hereunder does not result in an increase in the amount of an annuity, the amount of
the annuity will not be changed hereunder.
(e) The amount by which an increase under this Section exceeds all previously granted increases to an
annuitant is an obligation of the City and of its account in the municipality accumulation fund of the System.
Section 3. Dates of Allowances and Increases. The initial allowance of Updated Service Credit and
Increase in Retirement Annuities hereunder shall be effective on January 1, 2012, subject to approval by the
Board of Trustees of the System. An allowance of Updated Service Credits and an increase in retirement
annuities shall be made hereunder on January 1 of each subsequent year until this ordinance ceases to be in
effect under subsection (e) of Section 853.404 of the TMRS Act, provided that, as to such subsequent year,
the actuary for the System has made the determination set forth in subsection (d) of Section 853.404 of the
TMRS Act.
BE IT FURTHER ORDAINED:
Increased Deposit Rate: All employees of the City, who are members of the Texas Municipal Retirement
System, shall make deposits to the System at the rate of 7% of their individual earnings effective I" day of
January, 2012.
Effective Date. Subject to approval by the Board of Trustees of the System, this ordinance shall be and
become effective on the 1`t day of January 2012.
Passed and approved this the day of ,
ATTEST: APPROVED:
City Secretary or Clerk Mayor
ORDINANCE NO.
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE
ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT
SYSTEM, "UPDATED SERVICE CREDITS" IN SAID SYSTEM ON
AN ANNUAL BASIS FOR SERVICE PERFORMED BY QUALIFYING
MEMBERS OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE
OF THE ALLOWANCE ARE IN THE EMPLOYMENT OF THE CITY
OF BEAUMONT; PROVIDING FOR INCREASED PRIOR AND
CURRENT SERVICE ANNUITIES FOR RETIREES AND
BENEFICIARIES OF DECEASED RETIREES OF THE CITY; TO
INCREASE THE RATE OF DEPOSITS TO THE TEXAS MUNICIPAL
RETIREMENT SYSTEM BY THE EMPLOYEES OF THE CITY;AND
ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE
CITY OF BEAUMONT, TEXAS:
Section 1.
Authorization of Updated Service Credits
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of
Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as the"TMRS
ACT'), each member of the Texas Municipal Retirement System (hereinafter referred to
as the "System") who has current service credit or prior service credit in the System in
force and effect on the 1 st day of January of the calendar year preceding such allowance,
by reason of service in the employment of the City, and on such date had at least 36
months of credited service with the System, shall be and is hereby allowed "Updated
Service Credit" (as that term is defined in subsection (d) of Section 853.402 of the TMRS
Act).
(b) On the terms and conditions set out in Section 853.601 of the TMRS Act,any
member of the System who is eligible for Updated Service Credits on the basis of service
with this City, who has unforfeited credit for prior service and/or current service with
another participating municipality or municipalities by reason of previous service, and was
a contributing member on the 1st day of January of the calendar year preceding such
allowance, shall be credited with Updated Service Credits pursuant to, calculated in
accordance with, and subject to adjustment as set forth in said Section 853.601, both as
to the initial grant hereunder and all future grants under this ordinance.
(c) The Updated Service Credit hereby allowed and provided for shall be 100%
of the"base Updated Service Credit"of the member(calculated as provided in subsection
(c) of Section 853.402 of the TMRS Act).
(d) Each Updated Service Credit allowed hereunder shall replace any Updated
Service Credit, prior service credit,special prior service credit, or antecedent service credit
previously authorized for part of the same service.
(e) In accordance with the provisions of subsection(d)of Section 853.401 of the
TMRS Act, the deposits required to be made to the System by employees of the several
participating departments on account of current service shall be calculated from and after
the effective date of this ordinance on the full amount of such person's compensation as
an employee of the City.
Section 2.
Increase in Retirement Annuities
(a) On terms and conditions set out in Section 854.203 of the TMRS Act,the City
hereby elects to allow and to provide for payment of the increases below stated in monthly
benefits payable by the System to retired employees and to beneficiaries of deceased
employees of the City under current service annuities and prior service annuities arising
from service by such employees to the City. An annuity increased under this Section
replaces any annuity or increased annuity previously granted to the same person.
(b) The amount of the annuity increase under this Section is computed as the
sum of the prior service and current service annuities on the effective date of retirement
of the person on whose service the annuities are based, multiplied by 70% of the
percentage change in Consumer Price Index for All Urban Consumers, from December of
the year immediately preceding the effective date of the person's retirement to the
December that is 13 months before the effective date of this Section.
(c) An increase in an annuity that was reduced because of an option selection
is reducible in the same proportion and in the same manner that the original annuity was
reduced.
(d) If a computation hereunder does not result in an increase in the amount of
an annuity, the amount of the annuity will not be changed hereunder.
(e) The amount by which an increase under this Section exceeds all previously
granted increases to an annuitant is an obligation of the City and of its account in the
municipality accumulation fund of the System.
Section 3.
Dates of Allowances and Increases
The initial allowance of Updated Service Credit and Increase in Retirement Annuities
hereunder shall be effective on January 1, 2012, subject to approval by the Board of
Trustees of the System. An allowance of Updated Service Credits and an increase in
retirement annuities shall be made hereunder on January 1 of each subsequent year until
this ordinance ceases to be in effect under subsection (e)of Section 853.404 of the TMRS
Act, provided that, as to such subsequent year, the actuary for the System has made the
determination set forth in subsection (d) of Section 853.404 of the TMRS Act.
BE IT FURTHER ORDAINED:
Increased Deposit Rate: All employees of the City, who are members of the Texas
Municipal Retirement System, shall make deposits to the System at the rate of 7% of their
individual earnings effective 1'' day of January, 2012.
Effective Date. Subject to approval by the Board of Trustees of the System,this ordinance
shall be and become effective on the 1 s' day of January 2012.
PASSED BY THE CITY COUNCIL of the City of Beaumont this 13th day of
September, 2011.
- Mayor Becky Ames -
ATTEST:
Tina Boussard
City Clerk