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BE.
T * E * R * A B
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS NOVEMBER 1,2011 1:30 P.M.
CONSENT AGENDA
* Approval of minutes—October 25,2011
* Confirmation of committee appointments
Marsha Normand-Attorney would be appointed to the Historic Landmark Commission. The term
would commence November 1,2011 and expire October 31,2013. (Mayor Becky Ames)
LinMarie Garsee would be appointed to the Historic Landmark Commission. The term would
commence November 1,2011 and expire October 31,2013. (Councilmember Gethrel Williams-
Wright)
Valerie Linton would fill the unexpired term of Ymelda Vaughan on the Convention and
Tourism Advisory Board. The term would commence November 1,2011 and expire September
5,2013. (Councilmember Gethrel Williams-Wright)
Hubert Oxford,IV would be reappointed to the Civil Service Commission. The current term
would expire October 4,2014. (Kyle Hayes,City Manager)
Mel Wright would be reappointed as Ex-officio of the Convention and Tourism Advisory Board.
The current term would expire October 18,2013. (Mayor Becky Ames)
Rocky Chase would be reappointed as Ex-officio of the Convention and Tourism Advisory
Board. The current term would expire October 18,2013. (Mayor Becky Ames)
Dr. Richard Leblanc would be reappointed as Ex-officio of the Convention and Tourism
Advisory Board. The current term would expire October 18,2013. (Mayor Becky Ames)
Judy Linsley-Historian would be reappointed to the Historic Landmark Commission. The
current term would expire September 10,2013. (Mayor Becky Ames)
Norma Sampson would be reappointed to the Community Development Advisory Board. The
current term would expire September 3,2013. (Mayor Becky Ames)
A) Recertify the Small Business Revolving Loan Fund Plan
B) Authorize the City Manager to sign an agreement with the South East Texas Regional
Planning Commission related to emergency notifications
C) Authorize the acceptance of a ten foot wide exclusive water line easement located at 8200
Highway 105
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the following appointments be made:
Appointment Commission Beginning Expiration
Of Terrn of Term
Marsha Normand, Attorney Historic Landmark Commission 11/01/11 10/31/13
LinMarie Garsee Historic Landmark Commission 11/01/11 10/31/13
THAT the following reappointments be made:
Fteaanointment Commission 02 1ning Expiration
of Term of Term
Hubert Oxford IV Civil Service Commission 11/01/11 10/04/14
Mel Wright, Ex-Officio Convention &Tourism Advisory Board 11/01/11 10118/13
Rocky Chase, Ex-Officio Convention &Tourism Advisory Board 11/01/11 10/18/13
Dr. Richard Leblanc, Convention &Tourism Advisory Board 11/01/11 10/18/13
Ex-Officio
Judy Linsley, Historian Historic Landmark Commission 11/01/11 09/10/13
Norma Sampson Community Development Advisory Board 11/01/11 09/03/13
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1 st day of
November, 2011.
- Mayor Becky Ames -
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT Valerie Linton is appointed to the Convention and Tourism Advisory Board to fill the
unexpired term of Ymelda Vaughan. The term will commence November 1, 2011 and
expire September 5, 2013.
PASSED BY THE CITY COUNCIL of the Cit of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -
A
RICH WITH OPPORTUNITY
BEA,U-W,
T - E - 8 A - S City Count Agee Item
TO: City Council
FROM: Kyle Hayes,City Manager
PREPARED BY: Laura Clark,Chief Financial Officer
MEETING DATE: November 1,2011
REQUESTED ACTION: Council consider recertifying the Small Business Revolving
Loan Fund(RLF)Plan.
RECOMMENDATION
The administration requests approval of a resolution recertifying that the Small Business
Revolving Loan Fund(RLF)Plan is consistent with and supportive of the area's current
economic adjustment strategy,the RLF is being operated in accordance with the policies and
procedures contained in the RLF Plan,and the loan portfolio meets the standards contained
therein.
BACKGROUND
The Small Business Revolving Loan Fund Program was created with an initial grant from the
Economic Development Administration(EDA)of$500,000 with matching funds from the
Community Development Block Grant(CDBG)of$250,000. To be approved for the grant,the
City was required to develop a plan to support the area's economic development strategy and to
create policies and procedures to administer the program. The original City of Beaumont RLF
Plan was adopted by the City Council on February 24, 1987,was last revised on June 16,2009
and last re-certified August 24,2010.The plan is required to be certified annually by council.
There are no changes to the plan since last re-certified.
The Small Business Revolving Loan Fund Plan is attached for your review.
BUDGETARY IMPACT
None. There is approximately$500,000 available in the Loan Fund at this time.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council hereby certifies that the Small Business Revolving Loan Fund(RLF)
Plan is consistent with and supportive of the area's current economic adjustment strategy,
and the RLF is operating in accordance with the policies and procedures contained in the
RLF Plan and the loan portfolio meets the standards contained therein. The Plan is
substantially in the form attached hereto as Exhibit "A" and made a part hereof for all
purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -
CITY OF BEAUMONT, TEXAS
SMALL BUSINESS
REVOLVING LOAN FUND PLAN
ORIGINAL PLAN APPROVED OCTOBER 31, 1987
REVISED SEPTEMBER 18, 2004
REVISED JUNE 16, 2009
EXHIBIT "A"
C
TABLE OF CONTENTS
Introduction 2
Program Element to the Plan 3
Goals and Objectives 3
Identification of the Area's Financing Problems 6
Targeting Criteria 7
Standards for the Revolving Loan Fund Portfolios 7
Financing Policies 8
Related Activities 9
Administration Element of the Plan 10
Small Business Revolving Loan Fund Board 10
Staff 10
Conflict of Interest 10
Loan Selection and Approval Process 11
Loan Servicing 12
Administrative Expenses 12
Recapitalization Strategy 12
Other Requirements 13
1
INTRODUCTION
Beaumont is the largest populated city in the southeast portion of Texas. The southeast Texas region is
highly industrialized and significantly agricultural with two navigable rivers (Sabine and Neches) which
allow ocean-going vessels to transport import and export trade to the Gulf of Mexico. Due to the discovery
of oil in the area, the petrochemical industry developed as a major economic contributor for the region.
In the 1980's the oil industry saw a worldwide downturn which resulted in historically high unemployment
rates for southeast Texas and Beaumont. The need for new economic goals and strategies for the area
became apparent. In 1987 the City of Beaumont created a new Economic Development division and
pursued the approval and acquisition of a grant from the Department of Commerce, Economic Development
Administration. With a grant of $500,000 from EDA and a city match of $250,000, the City was able to
begin the financing of the expansion and start-up needs of local small businesses.
The South East Texas Economic Development District, Inc. (SETEDD) was created in 1993 to facilitate the
flow of U.S. Department of Commerce and Economic Development Administration grant and loan funds
for creating new jobs and/or saving existing jobs in the southeast Texas region. SETEDD through a
Comprehensive Economic Development Strategy or CEDS creates objectives and strategies that help to
steer the economic direction of the region. According to the Vision Statement of the CEDS, goals are:
Workforce Development
New and Existing Business Development
Infrastructure
Develop Advanced Materials Cluster
Tourism
Quality of Life
The City of Beaumont and the Small Business Revolving Loan Fund Board use these goals in administering
the City's Small Business Revolving Loan Fund and creating loan opportunities for small businesses that will
better not only those businesses but the City and the entire southeast Texas region.
2
L PROGRAM ELEMENT TO THE PLAN
A. Goals and Objectives
1. COMMITMENT TO ECONOMIC DEVELOPMENT:
The Economic Development Policy Plan consists of goals, objectives, policies, and proposals for
guiding Beaumont's future economic growth and development. Outside assistance is provided
through a contact with the Beaumont Chamber of Commerce for various economic
development activities such as marketing analysis, business retention efforts and working with
business prospects.
2. GOAL: INCREASE THE NUMBER OF PERMANENT JOBS AVAILABLE TO CITIZENS OF BEAUMONT AND
SOUTHEAST TEXAS
Emphasis should be placed on value added jobs which are most likely to lead to further job
creation. Jobs in "export"industries bring money into the region through production of goods
or services that are exported outside of Beaumont. These jobs, which are generally highly
paid, create spendable household income, thus generating new jobs in sates and services.
Beaumont also needs jobs which can be filled by workers who were previously employed in
shipyards, refineries, and chemical plants. These skilled workers are among Beaumont's most
valuable economic resources and will leave the area if new job opportunities are not
developed.
Because of an especially high unemployment rate among Beaumont's sizable minority
population, entry level jobs with on-the-job training are needed to bring unskilled workers
from low-income backgrounds into the workforce.
WHERE WILL THESE JOBS COME FROM? New jobs come from three sources:
1) Expansion of existing business
2) Creation of new, entrepreneurial enterprises
3) Attraction of plants or business from outside the community
Research indicates that expansion of existing business and creation of entrepreneurial
enterprises account for 80 to 90%of all new jobs.
OBJECTIVE NO. 1: MAINTAIN AN EFFECTIVE ROLE FOR THE CITY OF BEAUMONT ECONOMIC
DEVELOPMENT PROCESS
Policy 1.1 Role of the City
The City will continue to serve in the leadership role in the following areas of
economic development:
A. Strategic Planning - analyzing Beaumont's competitive strengths and
weaknesses in the world economy and then taking aggressive action to
capitalize on the strengths and overcome the weaknesses.
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B. Legislative Advocacy - working closely with Jefferson County, The Port of
Beaumont, Drainage District #6, the Jefferson County Navigation District,
BISD, other municipalities in the region, and other State and Federal
elected officials to secure major funding assistance and to enact or change
laws to increase the strategic competitiveness of the local/regional
economy.
C. Leveraging and Public/Private Partnerships - using the limited resources
available to the City government, such as grants, development incentives,
infrastructure, land, and staff to attract private sector investments which
will create or retain jobs and/or increase the tax base.
D. Develop and Communicate a Vision of the Future - the City's elected
officials and staff must motivate the community to set its sights on the goal
of becoming a first-class medium-sized city with a quality of life capable of
attracting new private investment and population.
The City will serve in a leadership and cooperative role in the following
area, participating actively and lending whatever support is needed to
other members of the economic development network:
a. Promotion: assisting the Chamber of Commerce, the Convention and
Visitors Bureau, BUILD, Inc/Beaumont Main Street, Entergy, and other
promotional groups in marketing Beaumont as a business location,
tourist destination, etc.
b. Business Attraction:working cooperatively with the Chamber/Economic
Development Council in attracting new industry.
Policy 1.2 The City's Commitment
The City will commit the assets is has available—staff, incentives, land, taxing
authority, infrastructure, tax-exempt bonding authority, and access to State
and Federal grants—to the local and regional economic development efforts.
The City will also strive for excellence in conducting its basic responsibilities of
providing public services and infrastructure, recognizing that an efficient,
competent and responsive city government is one of the prerequisites for
economic growth of a community.
Allocation of resources for construction of new or the repair or extension of
existing city infrastructure and new or revised city services will be
implemented on the basis of need; however, the impact of such actions on the
economic development of the City as a whole will be considered of overriding
importance when deciding where to allocate the City's resources among areas
which are of equal need.
Policy 1.3 Public Return on Investment
The City will examine the potential return on the public's investment when
determining where and how its limited resources will be committed. Retum on
public investment will be measured in terms of jobs created, jobs retained,
and broadening of the tax base.
4
4
OBJECTIVE NO. 2 ENCOURAGE A CLIMATE WHICH FACILITATES BUSINESS GROWTH AND
SUSTAINABILITY
Policy 2.1 The City of Beaumont recognizes that the degree of cooperation and support of
local government plays a major role in business location and expansion
decisions. The City resolves to improve both its efficiency and effectiveness in
providing assistance and services to business.
Policy 2.2 The City of Beaumont will be committed to improving the quality of life for
current and future residents.
In recognition of the connection between economic development, the quality
of life or livability of a city, and the development of a favorable sense of place
among residents and non-residents alike, the City supports the inclusion of
"quality of life" and "environmental quality" considerations in making planning
and development decisions.
Visual community appearance considerations in the city's planning and
development efforts are to be considered important economic development
actions which wilt improve Beaumont's ability to attract new businesses and
employment opportunities.
In realization of the fact that investing in the overall improvement in the
quality of life or livability of the City is not a goal which can be achieved
overnight, the City will concentrate its resources on the cleanup and
rehabilitation of selected neighborhoods and on the development and
improvement of urban design plans for selected open space, street corridor,
and city entrance or gateway areas.
OBJECTIVE NO. 3 ATTRACT NEW BUSINESSES AND INDUSTRIES TO THE BEAUMONT AREA
Policy 3.1 The City will work with the Chamber of Commerce and other economic
development groups in a team effort to bring new businesses and industries to
the Beaumont area.
Policy 3.2 Efforts to attract new business and industry will be targeted on industries
whose locational needs are consistent with the Beaumont area's locationat
attributes.
Policy 3.3 Continue to promote the Beaumont area's resources and quality of life factors
through the efforts of the Beaumont Convention and Visitors Bureau.
OBJECTIVE NO.4: RETAIN AND EXPAND EXISTING BUSINESSES AND INDUSTRIES
Policy 4.1 The City of Beaumont recognizes that existing businesses and industries are the
community's most important economic resources and will support the efforts of
existing businesses to expand and improve operations.
Policy 4.2 An "outreach" program to foster open lines of communication between the city
government and existing businesses and industries will continue.
5
OBJECTIVE NO. 5: STIMULATE THE CREATION OF NEW BUSINESSES
Policy 5.1 Continue the City's Small Business Revolving Loan Fund which provides
financing assistance for new businesses having difficulty in obtaining
conventional financing.
Policy 5.2 Continue to work with the Small Business Development Center at Lamar
University, which assists start up businesses and processes applications for the
City's Small Business Revolving Loan Fund.
OBJECTIVE NO. 6: IMPROVE THE COMPETITIVE ADVANTAGES OF THE BEAUMONT AREA
ECONOMY
Policy 6.1 The City of Beaumont will assume a role of partnership with local business and
industry in competing with producers in other regions, state and countries.
This means city actions involving taxes, infrastructure, regulations and
development incentives will focus on making it easier, more efficient and more
advantageous for doing business in Beaumont.
Policy 6.2 Expand the scope of Beaumont's market area by capitalizing on its role as a
regional cent of trade, professional services, entertainment, distribution, and
medical services.
B. Identification of the Area's Financing Problems
A review of Beaumont's capital market and discussions with local small business persons indicate
that local capital market has.the following characteristics.
1. Beau banks typically follow conservative policies and practices regarding allocation of
deposits for lending purposes.
While this is not unique to Beaumont or the region, the adverse effect of the local and
statewide economy has even further reduced the availability of the banks' capital in
Beaumont. Beaumont banks are looking for additional outside capital projects as a cushion for
their loans.
2. There is reluctance to provide financing to younger or higher risk companies or to companies
located in blighted or depressed areas of the community.
3. There is a shortage of long term reasonably priced commercial financing available to small
business located in Beaumont.
4. Local banks appear to be reluctant to make loans smaller than$75,000.00.
5. There is a lack of capital for minority business.
The Revolving Loan Fund (RLF) will serve a critical function in the City's economic development
program by providing assistance in financing small business that will provide jobs primarily for
persons of low and moderate income, the unemployed, and the underemployed, and projects
which will diversify and strengthen Beaumont's economic base.
6
Specific Objectives of the Revolving Loan Fund: The Revolving Loan Fund will promote economic
development by:
1. Creating New Employment Opportunities: The Revolving Loan Fund will be utilized to assist in
expansion or creation of small business enterprises, owned or operated by minorities, women,
or the economically disadvantaged.
2. Increasing Private Financing Availability: Revolving loan fund monies will be used to leverage
private financing for small business, availability of financing for small business enterprises
owned or operated by minorities, women or the economically disadvantaged and to provide
incentives to the financial institutions to make loans to small businesses.
C. Targeting Criteria
The Revolving loan Fund will target small businesses which can best assist the City in achieving
economic development objectives. The order or priority will be:
1. Small businesses which will create the greatest number of jobs available to the unemployed,
underemployed, or low or moderate income persons at the least cost to the Revolving Loan
Fund.;
2. Small businesses which are owned and operated by minorities, women, or the economically
disadvantaged;
3. Small businesses which are located within Beaumont's Community Development and Housing
Neighborhood Strategy Areas.
D: Standards for the Revolving Loan Fund Portfolios
To ensure the effectiveness of the Revolving Loan Fund as an economic development tool, the
following standards wilt serve as guidelines for Revolving Loan Fund participation:
1. It is the objective of the Revolving Loan Fund to leverage each dollar three or four times
through participation with private sector lending institutions, the SBA and other government
loan programs and private investors.
For each$10,000 of total investment, one job will be generated.
The Revolving Loan Fund will leverage two private sector dollars for every one RLF dollar at a
minimum.
2. Revolving Loan Fund monies will be available to finance the expansion and start-up needs of
small businesses. Financing will be available for fixed assets (plant and equipment) and for
working capital.
The Revolving Loan Fund will give priority to the businesses that create the maximum number
of new jobs.
The Revolving Loan Fund applicants will be screened for potential use of vacant facilities
located in blighted areas of the community.
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$100,000.00 of the Revolving Loan Fund will be made available to small businesses for low
interest, bridgelgap, $10,000-$20,000 loans to be distributed within b months of a natural
disaster if the City of Beaumont is declared a national disaster area. Existing Small Business
loan recipients who are in a current or 1-2 month delinquent status with their loans may
request a deferral of loan payments to help them recover from the natural disaster.
3. Other economic development objectives and standards include the following:
The Revolving Loan Fund borrower will be required to have a 10% equity position in the
project.
Minorities and females will be encouraged to participate in the Revolving Loan Fund.
To prevent displacement of existing capital, all applicants must have written evidence of the
need for the RLF funds.
E. Financing Policies:
The Revolving Loan Fund will include the following goats:
1. The Revolving Loan Fund loans are expected to range between $10,000 and $200,000.
2. No more than 50% of the total SBRLF available capital shall be loaned to any one borrower
during any one time period.
3. Terms and Conditions of the Loans
The expected amortization period for Revolving Loan Fund loans will be as follows:
Working capital loans: Negotiated within normal commercial financing range
Machinery and Equipment: Based upon the useful life of equipment financed
Land and Building: 15-25.years
4. Interest Rates: interest rates for all Revolving Loan Fund loans will be variable depending on
the needs and financial condition of the applicant. interest rate floors and ceiling will be
established. The minimum interest rate will be four percent.
5. Special Financing Techniques: Revolving Loan Fund staff and administration will employ
flexible financing techniques designed to meet the needs of the borrowers and to maximize the
effectiveness of the Revolving Loan Fund program. The special financing techniques that may
be utilized include:
Lower than market rates.
Extended amortization period for Loans.
Moratoriums on loan payments for a specified period of time up to a maximum of six
months.
8
Existing Loan Program recipients may request to change the payment terms of their loan in
an effort to facilitate the continued repayment of the loan when they are having difficulty
in doing so.
6. Collateral and Equity requirements: Fixed asset financing will be secured by the fixed assets
financed with other assets included if required. Collateral for working capital loans will
include inventory, accounts receivable, fixed assets, cash and personal guarantees. The
Revolving Loan Fund will mandate the contribution of equity by the borrower, requiring not
less than 10%.
7. Restructuring Loans: The Revolving Loan Fund wilt not be involved in restructuring third-party
loans or in refinancing projects.
8. Use of RLF Income: RLF income includes at( interest earned on outstanding loan principal,
interest earned on accounts holding idle RLF funds, loan fees and other loan-related earnings.
RLF income does not include repayment of RLF loan principal and any interest remitted to the
U. S. Treasury pursuant to a sequestration of excess funds. RLF income wilt be used to pay
administrative expenses as long as RLF income and administrative expense are earned in the
same 12-month reporting period and administrative expenses don't exceed 50% of the RLF
income or $100,000.00. Any excess RLF income in a 12-month reporting period will be added
to the RLF capital base and made available for loans. Any administrative expenses that exceed
50%of the RLF income may be paid from the City of Beaumont Community Development Block
Grant Funds and the appropriate RLF Income and Expense Statement will be prepared and
submitted according to EDA regulations.
9. Participation with other loan programs: To accomplish the stated goals of the Revolving Loan
Fund, participation on loans with the following financial institutions ins anticipated:
• Banks throughout the City.
• Small Business Administration.
• Farmer's Home Administration.
• SBA Certified Development Corporation (504's).
• SBA Small Business Investment Corporation (MESBIC).
• Savings and Loan Associations.
• Local equity capital funds.
F. Related Activities:
1. Loan Packaging and Referral Service: The Revolving Loan Fund loans will be packaged by the
staff in cooperation with the loan officer and staff of the participating financial organization.
Those applicants who do not qualify for Revolving Loan Fund loans but are viable applicants for
other financing assistance will be referred to the local office of the Small Business
Administration, the Southeast Texas Economic Development Foundation (A SBA 504), and other
commercial banks or savings and loans in the community.
2. Linking Jobs to the Long-Term Unemployed: Should the borrowers need assistance in recruiting
the long-term unemployed and low-income persons, the company wilt be referred to agencies
capable of providing assistance. Those agencies include:
• Workforce Solutions Southeast Texas
• Local Employment Agencies
Advertisement in Local Newspapers
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II. Administrative Element of the Plan
A. Small Business Revolving Loan Fund Board
The Mayor and City Council establishes citizen advisory boards,.committees and commissions and
appoints citizens within the community to serve on these various committees by approval of City
Council. A Loan Administration Board will be formed with the membership as follows:
1. Members wilt be drawn from local financial institutions.
2. Other members wilt be appointed from the Small Business Development Center at Lamar
University.
3. One member will be appointed representing the City of Beaumont.
4. The remaining members will be appointed from small and minority businesses or community
organizations.
Provisions will be made to assure strong representation among women and minorities. At least
one member with financing experience must be present for each loan decision. Board
members will be appointed to two year terms,which will be staggered to assure continuity on
the board. The board will include members from both the public and private sectors.
B. Staff
The City's Finance Department, Cash Management Division,wilt provide support staff to the-
Revolving Loan Fund. The Cash Management staff has experience in analysis of business operations
and financial statements and substantial billing and collection experience. The RLF staff will work
closely with the particular commercial.lending officers of the private financial Institution(s)
involved in the leveraging of each loan. The loan packages will be prepared to provide adequate
loan security and allow maximum operating flexibility to the borrowers.
C. Conflict of Interest
1. RLF funds shall not be available to a business entity If the owner of such entity or any owner of
an interest in such entity is related by blood, marriage, law or business arrangement to an
employee of the City of Beaumont or any member of the City Council,or a member of the
SBRLF Loan Advisory Board unless the person(s)affected first discloses in writing to the loan
Advisory Board the potential benefit and the Loan Advisory Board determines that the benefit
involved is not so substantial as to affect the integrity of the Board's decision process.
2. An officer, employee or board member of the SBRLF shalt not solicit or accept, directly or
Indirectly, any gift, gratuity, favor, entertainment or arty other thing of monetary value for
himself or for another person, from any person or organization seeking to obtain a loan.
3. Former Loan Advisory Board members and/or Officers are ineligible to apply for or receive loan.
funds for a period of one year from the date of termination of his/her service.
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D. Loan Selection and Approval Process
1. Marketing
The Finance Department will have a coordinative managerial role in the areas of capital
formation and supporting the existing network of economic development groups active in the
area. The staff will also continue its ongoing contacts with the SBA and financial institutions.
Presentations will be made to the Chamber of Commerce,Minority Business Development
Organizations and other potential sources of applicants.
2. Screening
Potential applicants for the RLF will be screened by the staff at the Small Business
Development Center(SBDC)at Lamar University and participating financial institutions.
Preliminary screening by the SBDC will include, but will not be limited to the following:
• Eligibility criteria .✓
• Ownership and organizational structure
• Potential for job creation
• Funding requirements
If the preliminary screening process indicates that the potential applicant is appropriate for the
RLF, the applicant will be invited to make full application. The RLF staff and the Small
Business Development Center will provide technical assistance to help applicants with the
preparation of necessary documents. Applicants that are ineligible will be referred to other
sources which may be appropriate including the SBA, the local 504 Corporation or other
programs which may fit the needs of the applicant.
3. Awlications
At this phase of the process, the following information may be requested from the applicant
and his/her financial institution:
• Application Form
• Summary description of business and the project being financed
• Financial Statement(3 years)
• Projections (3 years)
Assumption (2 years existing)
New Company(3 years)
Profit and Loss Statements;
Balance Sheets;
Cash Flow Analysis
• Personal Financial Statements
• Cost Summary
• Listing of Collateral
• Commitment Letter
• Appraisal (Financing Real Estate)
• Jobs Fong
• Resume on Principals
• Business Plans
New (detailed description of the business to include the market, competition, location,
management, personnel, and purpose of loan)
Existing (one page document describing plans to grow or expand)
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• Certification of Cost-Architectural estimates; equipment vendor quotes; construction
cost estimates
4. Evaluations
Once all materials requested from the applicant have been submitted, an analysis of the loan
request will occur, including review of the applicant's credit report.
Staff assembles the inforrnation into a complete package and submits to the Loan Advisory
Board for review. A decision is based upon factors including,but not limited to:
• the ability of the applicant to repay the loan,
• the applicant's managerial capabilities,
• the tong term retention of jobs that wilt be provided.
5. Considerations
All loans shalt be presented to the Loan Advisory Board for consideration. Applicants will be
afforded an opportunity to address the Board and to answer questions.
6. Loan Closing
Once final approval has been authorized by the board, staff and legal counsel will assist in
preparation of loan closing documents in conjunction with the financial institution,inching
necessary deeds of trust, liens, mortgage instruments and loan agreements.
7. Disbursement
Prior to closing, a schedule of loan disbursements will have been negotiated.
8. Monitoring
Monitoring of the implementation of the project will begin after the initial disbursement.
Continuing technical assistance will be provided as needed by RLF staff. The Grant's
Administration Division will provide assistance with environmental impact and Davis-Bacon
wage requirement issues.
E. Loan Servicing
The loan will be serviced in house by RLF staff who wilt institute a portfolio management system
which monitors each loan on an ongoing basis for timely payment. A servicing agreement may be
established with an outside agency to service the loans for the city, if cost effective,where funds
will be returned to the Revolving Loan Fund by the private financial institutions on at least a
quarterly basis.
If a default appears eminent, the staff of the RLF wilt work with the financial institutions to avert
such an occurrence. When default cannot be averted, the staff will commence foreclosure
proceedings as mandated by State Law.
F. Administrative Expenses
Administrative expenses will be funded from RLF income, by city funds or from Community
Development Block Grant funds.
G. Recapitalization Strategy
Capitalization of the RLF will be accomplished through recapitalization of RLF loan principal
payments, excess RLF income and through program income funds from the CDBG program.
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A
H. Other Requirements
1. Compliance with Civil Rights Laws:
Applicants for RLF assistance will be required to pledge not to discriminate against
employment applicants. They will be required to sign an affidavit to that effect at the loan
closing. Any proven instance of discrimination proven against the loan applicant shall be
grounds for calling loan.
2. Environmental Impact:
3. Staff will consider the environmental impact of all proposed projects.Access for the
Handicapped:
All buildings involved in the proposed project must be made accessible for persons with
impaired mobility.
4. Insurance:
Key man insurance, flood hazard insurance, liability insurance, or other types may be required
of the applicant.
5. Davis-Bacon:
Construction financed in whole or in part by the RLF will meet the requirement of the Davis-
Bacon Act, as amended(44 U.S.C. 276a-5).
6. Relocation:
The location of loan projects will be located within the city limits of Beaumont. The City of
Beaumont assures that loans will be recalled if the project and/or business activity move from
the area.
Businesses relocating jobs from another labor area are not eligible borrows.
7. Hold Harmless Provision:
RLF loan documents and procedures will protect and hold the Federal government harmiess
from and against all liabilities that the Federal government may incur as a result of providing
an Award to assist (directly or indirectly) in site preparation or construction, as well as the
direct or indirect renovation or repair of any facility or site. A hold harmless agreement will be
added to all loan documents.
13
B
RICH WITH OPPORTUNITY
BEAUINOIN ,*
T • E • g • A • s City Co Agenda item
TO: City Council
FROM: Kyle Hayes,City Manager
PREPARED BY: James Singletary,Chief of Police
MEETING DATE: November 1,2011
REQUESTED ACTION: Council authorize the City Manager to sign an agreement
with the South East Texas Regional Planning Commission
related to emergency notifications.
RECOAUdENDATION
Administration recommends approval.
BACKGROUND
Grant funding through the Department of Homeland Security was recently awarded to establish a
regional notification capability for all eligible jurisdictions. The South East Texas Regional
Planning Commission(SETRPC)facilitated the grant funding and contracted with a company
called BlackBoard Connect to provide the service. Beaumont is an eligible participant and will
benefit from the ability to send out public safety information in addition to the emergency
notifications. The attached agreement will allow the City of Beaumont to utilize the Blackboard
notification system-under the SETRPC contract at no cost to the City for the one year term.
BUDGETARY IMPACT
None.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager is hereby authorized to enter into a one (1) year Interlocal
Agreement with South East Texas Regional Planning Commission for use of the Black
Board Connect emergency notification system. The Interlocal Agreement is substantially
in the form attached hereto as Exhibit "A" and made a part hereof for all purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -
Emergency Notification System Interlocal Agreement
This Agreement is entered into between the South East Texas Regional Planning Commission
(SETRPC) and the City of Beaumont (referred to herein as Beaumont).
WHEREAS, Beaumont has joined into a regional project establishing an emergency alerting
system, and;
WHEREAS, SETRPC has contracted with Black Board+Eorrnect to provide Emergency
Notification Services on behalf of the City of Beaumont,and;
WHEREAS, the purpose of this system is to alert large numbers of'citizens within a specific
geographic area of important information for public suety purposes, and;
WHEREAS, in the event of a large,scaleemergency or incident,the alerting system would
benefit the citizens of Beaumont by providing critical 0formation in a timely fashion, and;
WHEREAS, Beaumont has agreed to act;as the single point of contact with Intrado for access
to the 9-1-1 Data Base for emmergency alerting purposes, and;
WHEREAS,S,the South East Texas Regional Planning Commission 9-1-1 Emergency Network
agrees to this arrangement regarding the use of the 9-1-1 Data Base for this purpose;
NOW;THEREFORE, BE IT HEREBY RESOLVED:
That Beaumont and SETRPC hereby agree to the following terms of use of the 9-1-1 Data
Base. Beaumont will utilize the 9-1-1 Data Base only for the purpose of emergency notification
service in the above jurisdiction. Beaumont and Black Board Connect understand that the data
contained in the 9-1-1 Data Base is to be used for the purpose of warning or alerting citizens to an
emergency situation as defined by the Federal Communications Commission (FCC)as a `situation
posing an extraordinary threat to the safety of life and property" and that this data is to be
maintained as confidential and not subject to public inspection in accordance with Texas Health and
EXHIBIT "A"
Safety Code,Section 771.062(a). In general, factors to be considered in determining whether an
emergency situation is warranted are:
1. Severity—will aid in reducing loss of life or reducing substantial loss of property
2. Timing-requires immediate public knowledge to avoid adverse impacts
3. Other means of disseminating information are inadequate to ensure rapid delivery.
In order to maintain the confidential nature of the 9-1-1 data base information and the
rights and privacy of citizens with unlisted and unpublishes . ers, Beaumont will be responsible
for and agrees to create two separate account log irm, r the alertl A stem. One log-in will allow
Beaumont to use commercially available inforryoWn for non-emergency'.nssages. Beaumont will
determine who shall have access and under what cor4Kj9ns,tq Is non-emergovw, messaging
capability. Another, greatly restricted W)W- -in will be'qmated by Beaumont for the purpose of
solely disseminating emergency alert messWs as d abovea, utilizing the 9-1-1 database
information. The Eme!;"ty Matto
pment Co1u for „ wont and/or his designee will be
the only persons allowed acs to th restricted urgency alert messaging log-in.
Dui*fie ci nftential n*W,ie of the 9.14.data base information and privacy of citizens with
unlisted and: ublished nunit ers, St C retains the right to withdraw their assistance if
Beaumont and/or:%ack Board Connect does not maintain the confidentiality of the information or
for misuse of the emergency alertft system. SETRPC and Black Board Connect agree that all
information shall be confidential between Black Board Connect and the City of Beaumont and will
not be shared with other jurisdictions or SETRPC.
The SETRPC 9-1-1 Network will not be liable for any costs associated with the emergency
alerting system including costs associated with the extract of data from the 9-1-1 data base.
Associated costs will be covered by grant funds or the respective jurisdiction if such grant funds
cannot be secured.
Charges for the activation and features specified in the Black Board Connect contract shall be the
responsibility of the SETRPC Homeland Security and Emergency Management Planning Division
(HSEMPD) for a period not to exceed twelve months from the initiation date reflected in the
contract between SETRPC HSEMPD and Black Board Connect. SETRPC HSEMPD will not be
responsible for any costs other than the activation fee for the initial twelve month period reflected
in the contract between SETRPC HSEMPD and Black Board Cpruvect. SETRPC HSEMPD does not
make any promise, guarantee or other obligation for continued activation of the Black Board
Connect system beyond the initial twelve month period. Continued activ� n of the emergency
alerting system will be the sole responsibility of Beaumont after the expiration of the initial twelve
month period unless additional funding is acquired for the regional project.
This Agreement supersedes any and all other agreements,either oral or in writing between
the parties hereto with respect to the subject matter horeof,and no other agreement, statement or
promises relating to the subject matter of this Agreement which is not contained herein shall be
valid or binding.
IN V!i,MESS THERE01,the parties hereto have caused this Agreement to be executed as of
the last date signed below.
Shaun P. Davis, Executive Director Date
South East Texas Regional Planning Commission
Kyle Hayes, City Manager Date
City of Beaumont
Caryn Pinot, Contract Specialist Date
Black Board Connect
c
RICH WITH OPPORTUNITY
BEAUN Ufi*
T • A • z . A . s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
�O.
PREPARED BY: Patrick Donart, Public Works Director
MEETING DATE: November 1, 2011
REQUESTED ACTION: Council consider authorizing the acceptance of a ten foot(10')
wide Exclusive Water Line Easement.
RECOMMENDATION
The Administration recommends acceptance of a Water Line Easement located at 8200 Highway
105.
BACKGROUND
Southeast Educational Foundation has agreed to convey a ten foot(10')wide Water Line
Easement to the City of Beaumont. The property is described as 0.15 acre out the Daniel Easley
Survey, Abstract No. 20 located at 8200 Highway 105.
BUDGETARYIMPACT
None.
RESOLUTION NO.
WHEREAS,Southeast Educational Foundation has agreed to convey a ten(10)foot
wide exclusive water line easement, said easement being as described in Exhibit"A" and
shown on Exhibit"B,"attached hereto, to the City of Beaumont for the purpose of placing,
constructing, operating, repairing, rebuilding, relocating and/or removing water lines and
appurtenances to the construction of a facility located at 8200 Highway 105; 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 statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and
THAT the easement conveyed by Southeast Educational Foundation,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 1st day of
November, 2011.
- Mayor Becky Ames -
FAUST Engineering and Surveying, Inc.
Professional Engineers and Professional surveyors Telephone(400)$13-3410
E-MAIL ADDRESS INFO@FAUSTENG.COM Fax(409)513-3454
2525 Calder Street
Beaumont,Texas 77702
Surveying Firm No 100024-00
EXHIBIT A
PAGE 1 OF 3
FIELD NOTE DESCRIPTION
FOR A
10 FOOT WIDE
EXCLUSIVE WATERLINE EASEMENT
OUT OF THE
DANIEL EASLEY SURVEY,ABSTRACT NO. 20
BEAUMONT,JEFFERSON COUNTY, TEXAS
October 14,2011
That certain 0.15 acre tract being a 10' wide exclusive waterline easement out of the
Daniel Easley Survey, Abstract No. 20,Jefferson County, Texas, and being out of a called
20.00 acre tract described as Tract II in a conveyance to The Southeast Educational
Foundation as recorded Clerk's File No. 2007026399 of the Official Public Records of
Jefferson County, Texas; said 0.15 acre 10 foot wide exclusive waterline easement being
more particularly described as follows:
COMMENCING at a 3/4" iron rod found on the north right-of-way line of
State Highway 105 being the southeast corner of a called 3.4178 acre
tract described as Tract 2 in a conveyance to Stephen Randolph Streety as
recorded in Clerk's File No. 2007033186 of the Official Public Records of
Jefferson County, Texas; said iron rod being the southwest corner of a
called 10.00 acre tract described as Tract I in a conveyance to The
Southeast Educational Foundation as recorded Clerk's File No.
2007026399 of the Official Public Records of Jefferson County,Texas;
THENCE South 89°54'36" East (reference bearing) along the north right-
of-way line of State Highway 105 and the south line of said 10.00 acre
tract, a distance of 30.00 feet (called 30.00 feet) to a point, being the
southeast corner of a called 0.06 acre tract, being a 10 foot wide
exclusive waterline easement conveyed to the City of Beaumont as
recorded in Clerk's File No. 9739650 of the Official Public Records of
Jefferson County,Texas;
110116 legal description.doc 1 of 3
EXHIBIT "A"
Field Note Description
THENCE North 00°05'24" East (called North 00°05'24" East) along the
east line of the said 0.06 acre tract, a distance of 262.00 feet (called
262.00 feet) to the southeast corner of a called 0.078 acre tract, being a
10 foot wide exclusive waterline easement conveyed to the City of
Beaumont as recorded in Clerk's File No. 2002028682 of the Official
Public Records of Jefferson County,Texas and being the northeast corner
of the said 0.060 acre tract;
THENCE North 00 001'14" West (called North 00 001'14" West) along the
east line of the said 0.078 acre tract, a distance of 320.82 feet (called
320.82 feet) to the northeast corner of the said 0.078 acre tract; said
point being the southeast corner of the herein described 0.15 acre tract
and the POINT OF BEGINNING;
THENCE South 89°58'46" West along the north line of the said 0.078 acre
tract, a distance of 10.00 feet (called 10.00 feet) to a point for the
northwest corner of the herein described tract;
THENCE North 00 001'14" West, a distance of 40.49 feet to a point for the
northwest corner of the herein described tract;
THENCE East, a distance of 468.21 feet to a point for the northeast corner
of the herein described tract;
THENCE South, a distance of 92.42 feet to an angle point in the east line
of the herein described tract;
THENCE South 17°57'41" East, a distance of 75.32 feet to the northeast
corner of a called 0.106 acre tract, being a 10 foot wide exclusive
waterline easement conveyed to the City of Beaumont as recorded in
Clerk's File No. 9739650 of the Official Public Records of Jefferson
County, Texas; said point being the southeast corner of the herein
described tract;
THENCE North 89 054'36" West along the north line of the said 0.106 acre
tract, a distance of 10.00 feet (called 10.00 feet) to a point for the
northwest corner said 0.106 tract and an angle point in the herein
described tract;
110116 legal description.doc 2 of 3
Field Note Description
THENCE North 17°57'41" West, a distance of 75.32 feet to an angle point
in the herein described tract;
THENCE North, a distance of 82.41 feet to an angle point in the herein
described tract;
THENCE West, a distance of 448.21 feet to an angle point in the herein
described tract;
THENCE South 00°01'14" East, a distance of 30.49 feet to the POINT OF
BEGINNING and containing 0.15 acres of land, more or less.
This description and the accompanying plat were prepared from a Land
Title Survey performed under the supervision of Richard F. Faust, P.E.,
Registered Professional nd eyor No. 4782 on October 14, 2011.
r
Richard F. Faust, P.E.
Registered Professional Land Surveyor No. 4782 .... .....
F.
4M
110116 legal description.doc 3 of 3
N 0001'14" W 40.49' N
SPURLOCX EAST 468.21'
LOCnr1 7 WEST 448.21'
A S 0001'14" E 30.49'
POINT OF BEGINNING 0.15 ACRES
HIGHWAY 105 S 895846" W 10.00' 10' WIDE EXCLUSIVE
TOUVAR � I ( (CALLED S 895846" W 10.00) WATERLINE EASEMENT 0 SCALE 1"= 80'
Y SMLu
E i I CITY OF BEAUMONT
10' WATERLINE EASEMENT S 17'5741" E
NCINITY MAP (CALLED 0.078 ACRES)
N.T.S. I CLERK'S FILE NO. 2002028682 75.32'
1 J.C.R.P.R. N 175741" W 75.32'
I INS
DEERFIELD PHASE ONE QO o
CLERKS FILE NO. 2004010060 I I O
J.C.R.P.R. I NOW OR FORMERLY
3 THE SOUTHEAST EDUCATIONAL N 8954 36" W 10.00'
FOUNDA7101V
5 113 a (CALLED TRACT 9 - 20.00 ACRES) I
a�Q CLERKS FILE NO. 2007026399
B L O C K 1 I I^ J.C.R.P.R.
I loz m
4 I 12'K
�V CITY OF BEAUMONT
10' WATERLINE EASEMENT
(CALLED 0.106 ACRES) I X
CLERKS FILE NO. 9739650 IJ.I
NOW _ — — — J.C.R.P.R.. — .I � — —
STEPHEN RAN HFORMERLY TREETY I CITY-10' WATERLINE EASEMENT — — '
CALLED TRACT 2 - 3.4178 ACRES I (CALLED 0.060 ACRES) NOW OR FORMERLY I I
CLERKS FILE NO. 2007033186 I CLERK'S FILE NO. 9739650 THE SOUTHEAST EDUCATIONAL S 000524" W 460.00' I I
J.C.R.P.R. I I J.C.R.P.R. FOUNDATION
S 895436" E 30.00' (CALLED TRACT I - 10.00 ACRES) I I
(CALLED S 895436"E 30.00) N 000524" E 262.00' CLERKS FILE NO. 2007026399 I I
COMMENCING POINT (CALLED N 0017524"E 262.00) J.C.R.P.R.
FOUND 314"IRON ROD
S 895436" E 506.00'
(CALLED S 895436"E 506.00)
OXST 9Fay� STA TE HIGHWAY 105
f�CHA�F.FAUST EXHIBIT B
PACE 1 OF 1
< �Q Mi �r TO ACCOMPANY DESCRIPTION
'9 A 0.15 ACRE TRACT
ua BEING A 10 FOOT WIDE
EXCLUSIVE WATERLINE EASEMENT
OUT OF THE ENGINEERING AND SURVEYING,INC.
DANIEL EASLEY SURVEY, ABSTRACT NO. 20 2325 CALDER STREET BEWHONT,TEXAS 7702
pSTERED OFESSIONAL LAND SURVEYOR NO. 4782 BEAUMONT, COUNTY TEXAS (409)813-3410 FAX(409)813-3484
REGISTERED nRM NO. 100024-00 PROJECT HO.110116
ales WIFIR + TV
B Al
T * S * Z i A 9
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS NOVEMBER 1,2011 1:30 P.M.
AGENDA
CALL TO ORDER
* Invocation Pledge Roll Call
* Presentations and Recognition
* Public Comment: Persons may speak on scheduled agenda items 1-4/Consent
Agenda
* Consent Agenda
GENERAL BUSINESS
1. Consider authorizing the City Manager to accept funding for the City of
Beaumont in the amount of$2,500,000 through the Department of Homeland
Security Supplemental 2011 Port Security Grant Program(PSGP),and enter into a
memorandum of understanding with Jefferson County to facilitate expenditure of
the grant funding through the PSGP fiduciary process
2. Consider amending an agreement with Johnson Controls Incorporated to
determine the feasibility of automatic water meter reading technologies
3. Consider approving a contract for the purchase of lubricants for city vehicles and
equipment
4. Consider approving change order number one for the rehabilitation of eight
properties associated with the Neighborhood Stabilization Program
WORK SESSION
* Review and discuss renovation plans for the Miller Library
COMMENTS
* Councilmembers/City Manager comment on various matters
* Public Comment(Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
Jefferson County Jail Rates
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
November 1,2011
Consider authorizing the City Manager to accept funding for the City of Beaumont in the amount
of$2,500,000 through the Department of Homeland Security Supplemental 2011 Port Security
Grant Program(PSGP), and enter into a memorandum of understanding with Jefferson County to
facilitate expenditure of the grant funding through the PSGP fiduciary process
RIC! WITH OPPORTUNITY
BEAU NON*
T . X . X A 8 City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: November 1, 2011
REQUESTED ACTION: Council consider authorizing the City Manager to accept
funding for the City of Beaumont in the amount of
$2,500,000 through the Department of Homeland Security
Supplemental 2011 Port Security Grant Program(PSGP),
and enter into a memorandum of understanding with
Jefferson County to facilitate expenditure of the grant
funding through the PSGP fiduciary process.
RECOMMENDATION
Administration recommends approval.
BACKGROUND
The 800MHz radio system is used by EMS, Fire, Police and numerous other departments
throughout the City for daily communications. The system was initially brought into service in
2001 and is shared with Jefferson County,Hardin County,the cities of Groves,Nederland,Port
Arthur,Port Neches,the Port of Beaumont and Lamar University's Police Department.
The State of Texas Statewide Communications Interoperability Plan(SCIP),adopted by the
Governor's Office on November 26, 2007 and approved by the U.S. Department of Homeland
Security on April 4, 2008 requires Texas agencies to be fully"Project 25 compliant(P25)by
January 1, 2015. Project 25 implements a digital "suite of standards" for radio systems that
ensures any P25 radio can talk to any P25 radio system regardless of manufacturer.
Our current system is not capable of P25 compliance and will require upgrades to meet the new
standard. We have been working towards compliance for several years and have a plan in place
to attain compliance by the January 1, 2015 deadline.
The City was awarded funds in the amount of$2,500,000 for a"Smarty communications switch
which will upgrade the core of the 800 MHz radio system. This will put the foundation in place
for the further upgrades necessary to meet the P25 standard.
Funding from the 2011 PSGP is provided to this region as a lump sum to be distributed to the
eligible agencies through one fiscal entity. Jefferson County assumed this fiduciary role at the
request of the U.S. Coast Guard. The memorandum of understanding formally describes each
party's responsibilities. The agreement is attached for your review.
BUDGETARYIMPACT
No match is required by the City.
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 receive funding in the amount
of $2,500,000 through the Department of Homeland Security Supplemental 2011 Port
Security Grant Program (PSGP).
BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to enter
into an Inter-Governmental Agreement with Jefferson County to facilitate expenditure of
the grant funding through the PSGP fiduciary process. The Inter-Governmental Agreement
is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all
purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -
INTER-GOVERNMENTAL AGREEMENT
BETWEEN
JEFFERSON COUNTY
AND
CITY OF BEAUMONT, TEXAS
STATE OF TEXAS
COUNTY OF JEFFERSON
This Agreement between Jefferson County Texas,hereinafter referred to as "County"and the
City of Beaumont, Texas hereinafter referred to as"City"is as follows:
WHEREAS,the County acts as the Fiduciary Agent for the 2011 Port Security Grant Program
hereinafter referred to as "2011 PSGP"administered by the Department of Homeland Security
and
WHEREAS,the City has submitted and received approval from the Area Maritime Security
Committee, Captain of the Port, and the Department of Homeland Security for the following
projects:
• Smart X communications switch $2,500,000
Total $ 2,500,000
WHEREAS, One hundred percent(100%)of the project(s) cost up to a maximum of$2,500,000
is approved under the 2011 Port Security Grant Program.
THEREFORE,FOR AND IN CONSIDERATION of the mutual benefits flowing to the City
as well as the County as a result of the project
1. The County acting as Fiduciary Agent will draw down these funds from the 2011 Port
Security Grant Program and issue payment to the City
2. The City will ensure that project activities are in accordance with the 2011 PSGP.
3. The County shall fully and satisfactorily perform all of the conditions and obligations
as Fiduciary Agent under the terms of the 2011 PSGP.
4. The City will fully and satisfactorily perform all of its obligations under the
terms of this agreement.
6. This is a good faith effort between the County and the City to accommodate and
assist the citizens of Jefferson County by providing the Sabine Neches Waterway
EXHIBIT "A"
with security improvements and each of the entities hereto pledge their best efforts to
fulfill the obligation set forth herein this agreement.
COUNTY OF JEFFERSON:
WITNESS OUR HANDS effective this day of , 2011.
Jeff Branick, County Judge
ATTEST:
Carolyn L. Guidry, County Clerk, Jefferson County
WITNESS OUR HANDS effective this day of ,2011.
CITY OF BEAUMONT,TEXAS:
Kyle Hayes, City Manager
ATTEST:
Tina Broussard, City Clerk
2
November 1,2011
Consider amending an agreement with Johnson Controls Incorporated to determine the feasibility
of automatic water meter reading technologies
RICH WITH OPPORTUNITY
BEA, r
T • Z • X • A • s City COURCH Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark,Chief Financial Officer
MEETING DATE: November 1,2011
REQUESTED ACTION: Council consider authorizing an amendment to an
agreement with Johnson Controls Incorporated(JCI).
RECOMMENDATION
Administration recommends Council approve an amendment to the Project Development
Agreement with Johnson Controls Incorporated(JCI)expanding the scope of work to include
conducting a detailed evaluation meter data acquisition system to determine the feasibility of
automatic water meter reading(AMR)technologies for the City of Beaumont at an estimated cost
of$130,000.
BACKGROUND
On November 17,2009 by Resolution No.09-347,the Council approved an agreement with
Johnson Controls Incorporated to conduct an assessment of city-owned facilities to ascertain
potential energy savings measures in areas such as heating,air conditioning, and lighting.
Th proposed amendment will expand the scope of work to include a detailed evaluation of the
City's utility water meters to determine the operational expenditures and characteristics of the
meter data collection system and to identify improvements and operational efficiency measures,
as well as potential improvements in the infrastructure which would provide future savings to the
City,improve efficiency of the system,and maximize the quality of customer service. Based on
the system's identified accuracy,possible recommendations from the evaluation would include
water meter infrastructure upgrades and/or automatic meter reading(AMR).
An initial sample review of the water meters,infrasbucture, and data collection system was
conducted earlier this year. The results indicated a need for this more detailed evaluation.
BUDGETARY IMPACT
Funds are available in the Water Utilities Fund and from an Energy Efficiency Grant previously
awarded.
FIRST AMENDMENT
THIS FIRST AMENDMENT TO THE PROJECT DEVELOPMENT AGREEMENT
("First Amendment") is entered into as of the _ day of , 2011 by and between
Johnson Controls Incorporated (hereinafter referred to as "JCI"), a Milwaukee, Wisconsin
Corporation duly authorized to conduct business in Texas with offices located at 3021 West
Bend Drive, Irving, Texas 75063 and the City of Beaumont, Texas. (hereinafter referred to as
"the City") a Texas corporation having its principal office at 801 Main Street, Beaumont, Texas
77701,
RECITALS
WHEREAS, JCI and the City entered into that certain Project Development Agreement
dated November 24, 2009 (the"Project Development Agreement"); and
WHEREAS, JCI and the City wish to amend certain of the terms and conditions set forth
in the Project Development Agreement;
NOW THEREFORE, in consideration of the mutual covenants, agreements and
conditions herein contained and for other and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, JCI and the City agree as follows:
TERMS
A. Clause No. 1, entitled "Scope of Work" is hereby amended to read as follows:
"JCI agrees to undertake a detailed evaluation study of a representative sample of the City's
utility meters and meter data acquisition system (collectively "the system") to determine the
operational expenditures and characteristics of the system and to identify improvements and
operational efficiency measures, procedures and other services that could be provided by JCI in
order to improve the system's infrastructure, reduce the system's operating costs and improve the
accuracy of the amount of billable usage by the City's customers. Johnson Controls will work
closely with City staff to proof all proposed metering, communications and information
technologies. For this initial project, JCI will analyze a sample of residential and commercial
utility customers. The final mixture of meter types for this development phase will
proportionally reflect the total meter count for the City. This evaluation will be coordinated with
the city staff to encompass a certain number of routes in the meter reading system and to
determine the amount of data needed.
The City agrees to provide its complete cooperation in the conduct and completion of project
development. JCI will provide to the City a written report of the above-mentioned study which
may include recommendations regarding:
a. Water meter infrastructure upgrades; and
b. Automatic meter reading (AMR)technologies;
Specifically, the report will include an estimate of the improved system accuracy with respect to
billable usage expected to be achieved from the equipment and procedures recommended in the
report.
B. Clause 2, entitled "Records and Data" is hereby amended to read as follows:
During the evaluation study the City will furnish to JCI upon its request, accurate and complete
date concerning operational expenditures for the system, including but not limited to, the
following date (in electronic format if possible):
Water and Sewer Service
Meter sizes, types and quantities per size
Approximate age of water meters and quantity of meters tested each year(5 year average)
Approximate quantity of meters replaced each year(3 year history)
Quantity of gallons pumped each month(3 year history)
Quantity of gallons metered/billed to consumers each month(3 year history)
Annual water and sewer revenue (3 year history)
Sites that are not metered and estimated use (city facilities, hydrants, etc.)
Quantity of water customers being billed for sewer
Sewer customers not billed for water(if any)
Quantity of meter readers and vehicles dedicated to meter reading
Additional Information
Operating budget for the items above
Repair and maintenance costs for these items (3 year history, equipment inventories, etc.)
Copy of capital improvement plan
Water system distribution drawing9s) with valve location
3 years of Audited Financials
C. Clause 3, entitled "Price and Payment Terms" is hereby amended as follows:
Line 1, the sum of"72,352.00" is stricken and replaced with 1130,000.00"
D. Table 1, entitled "Facility Improvement Measures" is hereby stricken in its entirety.
E. Exhibit 1, entitled "City of Beaumont Schedule of Locations and Statement of
Values" is hereby stricken in its entirety.
MISCELLANEOUS
1. Except as modified or otherwise provided herein, the existing terms, covenants,
agreements, responsibilities and obligations contained in the Project Development Agreement
shall remain in full force and effect through the term of the Project Development Agreement. In
the event of conflict between the terms and conditions of the Project Development Agreement
and the terms and conditions of this First Amendment, the terms and conditions of this First
Amendment shall prevail.
2. This First Amendment is effective upon the date of execution by both parties.
IN WITNESS WHEREOF, the parties have caused this First Amendment to be duly
executed by their duly authorized officers or agents as of the_day of , 2011.
CITY OF BEAUMONT, TEXAS JOHNSON CONTROLS,INC.
Signature Signature
Name Name
Title: Title:
Date: Date:
PROJECT DEVELOPMENT AGREEMENT
BETWEEN
City of Beaumont Johnson Controls,Inc.
801 Main St. AND 3021 W Bend Drive
Beaumont,Texas 77701 Irving,TX 75063
Johnson Controls, Inc. (JCI)and the Customer named above agree as follows:
1. Scope of Work
JCI agrees to perform a Detailed Evaluation Study (Study)of the City's premises identified in
Exhibit 1. JCI will analyze the operational expenditures and characteristics of the existing and
new Premises and identify facility improvement measures and operating and maintenance
services that can be provided to improve the ire, and reduce operating costs. City
agrees to provide its complete cooperation in the conduct and completion of the Study.JCI will
provide to the Customer written documentation,which will include:
a) A brief summary/description of facility improvement measures that JCI proposes to
install or recommends for installation;
b) A brief summary/description of the operating and maintenance services that can reduce
operating costs at the Premises;and
c) An estimate of the reduced operating costs and cost avoidance as a result of installing
and/or implementing the recommended improvement measures and services.
JCI will investigate the facility improvement measures and services identified in Table 1
(attached) as part of the Study. The City retains the right to add or delete facilities as
necessary.
2. Records and Data
During the Study, City wig furnish to JCI upon its request, accurate and complete data
concerning operational expenditures from and revenues for the Premises, including the
following data for the most recent three years from the effective date of this Agreement:
• Occupancy and usage information;
• Descriptions of any changes in the building structure or its heating, cooling, lighting, or
Other systems;
• Actual utility bills supplied by the utility and other relevant utility records;
• Descriptions of relevant operational or maintenance procures utilized on the
Premises;
• Summary of annual expenditures for operating the Premises;
• Copies of representative current rent tenant leases,if any;and
• Prior efficiency audits or studies of the Premises and/or operating procedures, if any.
3. Price and Payment Ternrs
City agrees to pay to JCI the sum, not to exceed$72.352.00 within(80)days after the delivery
to the City of the documentation described under the Scope of work of this Agreement.
{409M.00WA0271030 3} 1
Funds for payment are provided by the City of Beaumont budget approved by City Council for
this fiscal year only. The State of Texas statutes prohibit the obligation and expenditure of
public funds beyond the fiscal year for which a budget has boar approved. Obligations
beyond the and of the current City of Beaumont fiscal year will be subject to budget approval.
In the event the obligation extends beyond this fiscal year, the City will seek budget approval
for the obligation in the next fiscal year's budget.
4. lndonn"Icafian/Ltabillty
JCI shall save harmless the City from all claims and IiabiGty due to activities of himself, his
agents,or employees, performed under this Contract and which resutt from an error omission,
or negligent act of JCI or of any person employed by JCI. JCI shall also save harmless the
City from any and all oWenses inducting attorney fees which might be incurred by the City in
litigation or otherwise resisting said claim or liabilities which might be imposed on the/city as
result of such activities by JCI,their agents,or employees.
JCI shag within one(1)was after signing the contract and before any work shall start,furnish
the City with certficaates of insurance naming the City as additional insured, with respect to
Imbipty arising out of operations performed for the City or on behalf of JCI, but only to the
extent of damages directly caused by the negli>gence of JCI, satisfactory to the City indicating
the existence of Statutory Workmen's Compensation Insurance and Comprehensive General
Liability Insurance.Such insurance shall be at JCL's expense.The limits shall be as follows:
Comprehensive General Liability and Auto Liability Insurance shall not be less than
$250,000 per incider W13500,D00 per occurrence.
These certificates shall contain a provision that the City shall be notified thirty (30)days
before cancellation of insurance.JCI shall maintain such insurance in force during the We
of the contract and no modification or change of insurance carriage and provision shall be
made without thirty(30)days written advance notice to the City.
5. tAiscetlaneous Provisions
This Agreement cannot be assigned by either party without the prior written consent of the
other party.This Agreement is the entire Agreement between JCI and the City and supersedes
any prior oral understandings, written agreements, proposals or other comrnunications
between JCI and the City. Any change or modification to this Agreement will not be effective
unless made in writing. This written instrument must speaFicatly indicate that it is an
amendment,change,or modification to this Agreement.
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JOHNSON CONTROLS, INC. City of Beatunont�
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By:
Signature: 'r ,�. Signature:
Title: 0izns P Title:
Date: ,�Q Date: // 2Y-01
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JCI will investigate the fallowing potential facility improvement measures(FIMs)listed in Table
1 during the Study outlined in this Agreement.
Table 1
HVAC Improvements
Lighting Improvements
03M Improvements
Utility Rate Improvements
i409M.OMM0271030_3} 3
RESOLUTION NO.
WHEREAS, on November 17,2009,the City Council passed Resolution No.09-347
authorizing the City Manager to execute a contract with Johnson Controls, Incorporated
in the amount of$72,352 for a Detailed Evaluation Study of City facilities; and,
WHEREAS, the contract was executed November 24, 2009; and,
WHEREAS, an amendment to the contract with Johnson Controls, Incorporated is
required to expand the scope of work to include conducting a detailed evaluation of the
meter data acquisition system to determine the feasibility of automatic water meter reading
(AMR) technologies for the City of Beaumont at an estimated total expenditure of
$130,000;
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 an amendment
to the contract with Johnson Controls, Incorporated, executed on November 24, 2009, to
expand the scope of work to include conducting a detailed evaluation of the meter data
acquisition system to determine the feasibility of automatic water meter reading (AMR)
technologies for the City of Beaumont at an estimated total expenditure of$130,000.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames-
3
November 1,2011
Consider approving a contract for the purchase of lubricants for city vehicles and equipment
RICH WITH OPPORTUNITY
BEAU,
T • R • a • d • S City CounciJ AedaItem
TO: City Council
FROM: Kyle Hayes City Manager
PREPARED BY: Laura Clark, Chief Financial Office
MEETING DATE: November 1, 2011
REQUESTED ACTION: Council consider the award of a contract for the purchase of
lubricants.
RECOMMENDATION
The administration recommends the award of a contract to Tri-Con Inc.,of Beaumont, in the
estimated amount of$106,788.75.
BACKGROUND
Bids were solicited for a six(6)month contract to supply lubricants for various City departments.
The contract specifies that the awarded bidder shall provide approximately 12,150 gallons of
various lubricants at fixed costs for use by various City departments in maintaining vehicles and
equipment. Specifications allow for a six(6)month contract extension upon the expiration of
the initial six(6)month contract term at the same pricing as awarded herein.
Bids were solicited from nine(9)vendors with three(3)responses. One bid did not meet
specifications and was not considered for award. Tn-Con Inc. was the low responsive bidder.
The products bid by Tri-Con Inc. have been reviewed by Fleet Personnel and meet specifications
set forth in the bid. Bid tabulation is attached.
BUDGETARY IMPACT
Funds are available for this expenditure in the user Departments' opting budgets.
RESOLUTION NO.
WHEREAS, bids were solicited for a six (6) month contract for the purchase of
lubricants for use by various City departments in maintaining vehicles and equipment; and,
WHEREAS, Tri-Con, Inc., of Beaumont, Texas, submitted a bid in the unit amounts
shown on Exhibit"A,"attached hereto, for an estimated total expenditure of$106,788.75:
and,
WHEREAS, City Council is of the opinion that the bid submitted by Tri-Con, Inc., of
Beaumont, Texas, should be accepted;
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 bid submitted by Tri-Con, Inc., of Beaumont, Texas, for a six (6) month
contract for the purchase of lubricants for use by various City departments in maintaining
vehicles and equipment in the unit amounts as shown in Exhibit "A," attached hereto, for
an estimated amount of$106,788.75 be accepted by the City of Beaumont; and,
THAT the City Manager be and he is hereby authorized to execute a contact with
Tri-Con, Inc., of Beaumont, Texas, for the purposes described herein.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -
••• CITY OF MFAUMONT, M EEM M TU"
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SW GAL Ifnillim 01 SAL 40 45S of dawns) $4."1 VA" WO11 1 $4,"S.SO $11.35 55.675.00
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4,700 GAL dol wales>250 W&I $41407.00 8.130 $42.911.00 10.x6 $51 042.00
500GAL (550all& e ) $af! $4,1ft 0 StO.Oq $5,0{3.50 $117 f5,635.00
MANUFACTURER AND 111111100 MD TOW MP swill spkm MUM
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500 GAL SAE10WWAMMM $1O-M $5 140.00 11.M SM. $111.59 $5,795.00
SW GAL 50 dairsslas>25Q 10.90 SS 495. 12.344 072. 11.Sa $S,790.00 wv
275 GAL 1091' 3'Q u T_ 12 S3 S3S $11.55 $3.137.2S
275 GAL ISM 50¢S taL dare) 10.99 S3XZn 13.144f 14. $11.58 $3,184.50
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TOTAL BID StO6 7ia 75 '$107,463.401 $136,260.75
'BID DOES NOT MEET SPECIFICATIONS
EXHIBIT "A"
4
November 1,2011
Consider approving change order number one for the rehabilitation of eight properties associated
with the Neighborhood Stabilization Program
RICH WITH OPPORTUNITY
BEAU'MUN*
T • E • g • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: November 1, 2011
REQUESTED ACTION: Council consider a resolution authorizing approval of
Change Order Number One for the rehabilitation of eight
(8)properties associated with the Neighborhood
Stabilization Program.
RECOMMENDATION
The Administration recommends approval of Change Order Number One in the amount of
$72,783.70 for additional windstorm requirements.
BACKGROUND
In response to the recent decline of property values and mortgage foreclosures across the
country,the U.S. Department of Housing and Urban Development(HUD) developed the
Neighborhood Stabilization Program (NSP), in order to assist with the revitalization and
stabilization of impacted communities. The NSP was designed to provide targeted assistance to
State and local Governments to acquire and redevelop abandoned and/or foreclosed homes and
residential properties that might otherwise become sources of blight within the neighborhoods.
The City of Beaumont received a grant in the amount of$1,125,873 to purchase, rehabilitate, and
sell affordable housing to low income citizens. With these funds the City has purchased eight(8)
homes which are ready to rehabilitate.
Council approved the award of contracts to NVT Construction and B&B Construction for the
rehabilitation of these eight(8) structures on July 26, 2011 with Resolution 11-209. Faust
Engineering changed the scope of work required for the windstorm inspection on the eight(8)
structures after the award of the contracts. A new scope of work was provided to the Contractors
on September 28, 2011. Both Contractors submitted change orders for the new scope of work.
Neighborhood Stabilization Program
November 1, 2011
Page 2
NVT Construction is requesting $23,505 for the additional work on the four(4) structures they
were awarded. B&B Construction is requesting$49,278.70 for the additional work on their four
(4) structures. B&B Construction had made substantial progress on their four homes before the
scope of work changed, which required more costly repairs. A summary of the change orders is
attached.
BUDGETARYIMPACT
The additional funds are available from the U.S. Department of Housing and Urban
Development and require no matching funds from the City.
PF0611-07
Rehabilitation of four(4) structures
Change Order Number 1
NVT Construction Company
Original Change Total
Location Cost Order Cost
2695 Houston $58,000.00 $11,235.00 $69,285.00
2928 Goliad $58,000.00 $7,330.00 $65,330.00
3965 Lydia $85,000.00 $1,950.00 $86,950.00,
1929 Texas Ave $66,000.001 $2,940.001 $68,940.00
Totals $267,000.001 $23,505.001 $290,505.00
Total percent change 8.8%
PF0611-08
Rehabilitation of four(4) structures
Change Order Number 1
B&B Construction
Original Change Total
Location Cost Order Cost
4465 Woodlawn $72,256.00 $12,013.40 $84,269.40
1545 Ave G $47,327.42 $10,528.00 $57 855.42
2254 Ave D $46,084.00 $10,291.30,
3890 Kenneth $32,177.501 $16,446.001 $48,623.50
Totals $197,844.921 $49,278.701 $247,123.62
Total percent change 24.9%
RESOLUTION NO.
WHEREAS, on July 26, 2011, the City Council of the City of Beaumont, Texas,
passed Resolution No. 11-209 awarding a contract in the amount of$267,000.00 to NVT
Construction, of Port Arthur, Texas, and a contract in the amount of$197,884.92 to B&B
Construction, of Nederland, Texas, for the rehabilitation of eight (8) properties under the
Neighborhood Stabilization Program; and,
WHEREAS, Change Order No. 1 in the amount of $72,783.70 is required for
additional windstorm requirements increasing the NVT Construction contract amount to
$290,505.00 and increasing the B&B Construction contract amount to $247,123.62,
thereby increasing the total contract amount to $537,628.62;
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. 1 for additional work described above, thereby increasing the contract amount by
$72,783.70 for a total contract amount of$537,628.62.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of
November, 2011.
- Mayor Becky Ames -