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HomeMy WebLinkAboutPACKET JUL 24 2012 1919n WSTX 9raRaATV*—Ivlr B�EAU11PuMft",HT1jVLkw T # X • X #_ A • 8 REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JULY 24,2012 1:30 P.M. CONSENT AGENDA * Approval of minutes—July 17, 2012 * Confirmation of committee appointments A) Approve a resolution authorizing the settlement of the claim of Chuck Brocato A SICK WITS OPPOSTIISITY as 'N BEAU lmo T E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager PREPARED BY: Tyrone E. Cooper, City AttorneY MEETING DATE: July 24, 2012 REQUESTED ACTION: Council consider a resolution authorizing the settlement of the claim of Chuck Brocato. BACKGROUND This matter was most recently presented and discussed in Executive Session held on July 17,2012. The City Attorney is requesting authority to settle this claim in the amount of$40,277.37. FUNDING SOURCE General Liability Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO. WHEREAS, the claim of Chuck Brocato has been discussed in an Executive Session properly called and held Tuesday, July 17, 2012; and, WHEREAS, the Council desires to authorize the settlement of the claim; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be and he is hereby authorized to settle the claim of Chuck Brocato in the amount of Forty Thousand Two Hundred Seventy-Seven and 37/100 Dollars ($40,277.37); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the claim. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24th day of July, 2012. - Mayor Becky Ames - ales WITS OPPORTUNITY B,EAUWW T # 3 * X # A * 8 REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JULY 24,2012 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-2/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider an ordinance approving a zone change from GC-MD (General Commercial-Multiple Family Dwelling)District with an HC (Historic Cultural- Landmark Preservation Overlay District)to GC-MD (General Commercial- Multiple Family Dwelling) District on property located on the south side of Liberty, approximately 258' east of 11th Street 2. Consider an ordinance approving a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling)District at 3684 College Street, Suite B 3. Consider an ordinance approving the abandonment of a 50'x50' portion of Genoa Street and two 20'x50' sections of alley right-of-way in Blocks 5 &6, G. Cuchia Subdivision 4. Consider an ordinance approving the setting of a Cost of Service Adjustment rate schedule by CenterPoint Energy which provides for an annual cost of service and rate base adjustment based on the Company's annual cost data 5. Consider an ordinance authorizing the suspension of the effective date of CenterPoint Energy's proposed rate increase until November 4, 2012 6. Consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for street, driveway, and sidewalk repairs needed after utility cuts were made by the Water Utilities Department 7. Consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for walking trail and drainage improvements at Halbouty Park located at 5780 Gober Road WORK SESSIONS * Review and discuss the partial funding of a School Crossing Guard Program for various schools within the Beaumont Independent School District * Review and discuss the possibility of a local preference provision in the city's purchasing policies * Review and discuss a transfer to the Henry Homberg Golf Course fund * Review and discuss a request from MGroup Holdings, Inc. for a grant in the amount of$88,000 from the 2011 Home Program related to Briarbend, a Low Income Housing Tax Credit(LIHTC)project located within the 6500 block of Sienna Trails Drive COMMENTS * 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 July 24,2012 Consider an ordinance approving a zone change from GC-MD(General Commercial-Multiple Family Dwelling)District with an HC (Historic Cultural-Landmark Preservation Overlay District)to GC-MD (General Commercial-Multiple Family Dwelling)District on property located on the south side of Liberty, approximately 258' east of 11d' Street RICK WITH OPPORTUNITY BEA,UMDN* T 0 E 0 X 0 A 0 S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager G S,� PREPARED BY: Chris Boone, Community Development Director MEETING DATE: July 24, 2012 REQUESTED ACTION: Council consider an ordinance approving a zone change from GC-MD (General Commercial-Multiple Family Dwelling) District with an HC (Historic Cultural-Landmark Preservation Overlay District)_x0_GC-MD (General Commercial-Multiple Family Dwelling)District on property located on the south side of Liberty, approximately 258'east of 11' Street. BACKGROUND Kevin Herrington,representing Altus Healthcare Management, L.P.,has applied for a zone change. Mr. Herrington states that as Altus' physician network has grown,the company now finds it necessary to construct a medical office building. Altus has plans to construct this medical office building on six lots that are zoned GC-MD. A commercial building currently exists on Lots 10- 14. All of the lots, except for Lot 10, are located outside of the Oaks Historic District. Altus is requesting that Lot 10 be deleted from the Oaks Historic District so that it can develop the property for medical office purposes. On July 9, 2012,the Historic Landmark Commission recommended approval 8:0 of the zone change. At a Joint Public Hearing held July 16, 2012,the Planning Commission recommended approval 8:0 of a zone change from GC-MD (General Commercial-Multiple Family Dwelling)District with an HC (Historic Cultural-Landmark Preservation Overlay District)to GC-MD (General Commercial-Multiple Family Dwelling) District on property located on the south side of Liberty, approximately 258'east of I Vh Street. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF BEAUMONT,TEXAS,AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED GC-MD/HC (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING/HISTORIC CULTURAL-LANDMARK PRESERVATION OVERLAY) DISTRICT TO GC-MD(GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING)DISTRICT FOR PROPERTY LOCATED ON THE SOUTH SIDE OF LIBERTY,APPROXIMATELY 258' EAST OF ELEVENTH STREET, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 28 of the Code of Ordinances of Beaumont, Texas, and in particular the boundaries of the zoning districts, as indicated upon the Zoning Map of the City of Beaumont, referred to in Section 28.01.005(b)thereof,is hereby amended by changing the zoning of property presently zoned GC-MD/HC (General Commercial-Multiple Family Dwelling/Historic Cultural-Landmark Preservation Overlay) District to GC-MD (General Commercial-Multiple Family Dwelling) District for property located on the south side of Liberty,approximately 258'east of Eleventh Street, being Lot 10, Block 48,Averill Addition, City of Beaumont, Jefferson County, Texas, containing 0.114 acres, more or less, as shown in Exhibit"A"attached hereto, and the official zoning map of the City of Beaumont is hereby amended to reflect such changes. Section 2. That, in all other respects, the use of the property herein above described shall be subject to all of the applicable regulations of the underlying zoning district as well as those regulations contained in Chapter 28 of the Code of Ordinances of Beaumont, Texas, as amended. Section 3. That if any section, subsection,sentence, clause of phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 4. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 5. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1.01.009 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24th day of July, 2012. - Mayor Becky Ames - I - : Request for a zone change from GC-MD(General Commercial-Multiple Family Dvmlling)District with an HC (Historic-Cultural Landmark Preservation Overlay District) to GC-MD (General Commercial-Multiple Family Dwelling) District. Location: South side of Liberty,approximately 258' east of 11'& Street Applicant: Altus Healthcare Management, L.P. 0 100 200 ! !Feet Legend I ® 2137Z GC-M GC-MD ..a —1 _ - — Li�R�AV N G -MD LAUREL ST G(-MI) GE-MD GC-MD 1M-HI EXHIBIT "A" 2 July 24,2012 Consider an ordinance approving a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District at 3684 College Street, Suite B RICH WITH OPPORTUNITY BEAU,M,ON* T E g • A S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: July 24,2012 REQUESTED ACTION: Council consider an ordinance approving a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling)District at 3684 College Street,-Suite-B. BACKGROUND Roy Etie,representing Roy Bob's Food and Beverage Co., has applied for a specific use permit. Mr. Etie states that he would like to open a comedy club on the subject property. The club will sell alcoholic beverages. The comedy club,Laugh Out Loud,will operate between the hours of 4 p.m. and 2 a.m.,Monday- Sunday. The club will have a full service bar and a stage and seating for comedy performances. On special occasions, live bands will be booked to play. Fifteen to twenty employees will work at the club. The club will have a seating capacity of 300. The subject property is the former location of the Gateway Theater. When the theater closed several years ago,the building was subdivided. In November, 2008, City Council approved a specific use permit to allow a bar called The Ticket to operate. That bar has since closed. After that closure,the location was used as a teen club for a short while. For a drinking place to reoccupy the space, a new specific use permit must be granted by City Council. In his review of this specific use permit,the Fire Marshal states that all code related items must be inspected and approved prior to the issuance of a certificate of occupancy. At a Joint Public Hearing held July 16,2012,the Planning Commission recommended approval 8:0 of a specific use permit to allow a drinking place in a GC-MD (General Commercial- Multiple Family Dwelling) District at 3684 College Street, Suite B, subject to the following condition: 1. All code related items must be inspected and approved prior to the issuance of a certificate of occupancy. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of ordinance approval subject to the following condition: 1. All code related items must be inspected and approved prior to the issuance of a certificate of occupancy. ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DRINKING PLACE IN A GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT AT 3684 COLLEGE. STREET, SUITE B, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. WHEREAS, Roy Bob's Food and Beverage Co. has applied for a speck use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District at 3684 College Street, Suite B, being the north 180'of Lot 113 and the south 122' of Lot 125,College Acres Addition, City of Beaumont,Jefferson County,Texas,containing 0.69 acres, more or less, as shown on Exhibit "A," attached hereto; and, WHEREAS, the Planning and Zoning Commission of the City of Beaumont considered the request for a speck use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District at 3684 College Street, Suite B; and, WHEREAS,the City Council is of the opinion that the issuance of such specific use permit is in the best interest of the City of Beaumont and its citizens; NOW, THEREFORE, BE IT ORDAINED 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, Section 1. That a specific use permit to allow a drinking place in a GC-MD (General Commercial-Multiple Family Dwelling) District at 3684 College Street, Suite B, being the north 180' of Lot 113 and the south 122' of Lot 125, College Acres Addition, City of Beaumont, Jefferson County, Texas, containing 0.69 acres, more or less, as shown on Exhibit "A," attached hereto, is hereby granted to Roy Bob's Food and Beverage Co., its legal representatives, successors and assigns, as shown on Exhibit"B,"attached hereto and made a part hereof for all purposes, subject to the following condition: • All code related items must be inspected and approved prior to the issuance of a certificate of occupancy. Section 2. That the specific use permit herein granted is expressly issued for and in accordance with each particular and detail of the site plan attached hereto as Exhibit"B," attached hereto and made a part hereof for all purposes. Section 3. Notwithstanding the site plan attached hereto,the use of the property herein above described shall be in all other respects subject to all of the applicable regulations contained in Chapter 28 of the Code of Ordinances of Beaumont, Texas, as amended, as well as comply with any and all federal, state and local statutes, regulations or ordinances which may apply. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24"'day of July, 2012. - Mayor Becky Ames - - : Bequest for a specific use permit to allow a drinking place in a GC-MD N General Commercial-Multiple Family Dwelling)District. Location: 3684 College Street, Suite B Applicant: Roy Bob's Food and Beverage Co. 0 100 200 1 I I Feet STAGG DR Legend ® 2138P COLLEGE ST 7 7--- 77 EXHIBIT "A" F14rM.Tf l`c5 ru a • fiC Yic INc l,ic o P Q Q p w ' m x . QGIr�'NS 4P C Q1�.I 6NL S4. �. a 60 *Approval subject to the following condition: w 1. All code related items must be inspected and approved prior to the issuance of a certificate of occupancy. 3 July 24,2012 Consider an ordinance approving the abandonment of a 50'x50' portion of Genoa Street and two 20'x50' sections of alley right-of-way in Blocks 5 &6, G. Cuchia Subdivision RICH WITH OPPORTUNITY BEAUNON*T . . Y . . s City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, C omm ity Development Director MEETING DATE: July 24, 2012 REQUESTED ACTION: Council consider an ordinance approving the abandonment of a 50'x 50'portion of Genoa Street and two 20'x 50' sections of alley right-of-way in Blocks 5 &6, G. Cuchia Subdivision. BACKGROUND The City of Beaumont Public Works Department has applied for the abandonment. All three rights-of-way are unimproved and unused remnants that dead-end into private property. Currently,the City maintains the unused rights-of-way. The City wishes to abandon these unused rights-of-way and get them back on the tax rolls. This item was sent to all interested parties. No negative responses have been received. At a Regular Meeting held July 16, 2012,the Planning Commission recommended approval 8:0 of the abandonment. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE VACATING AND ABANDONING A 50'X 50' PORTION OF GENOA STREET AND TWO(2)20' X 50' SECTIONS OF ALLEY RIGHT-OF-WAY IN BLOCKS 5 AND 6, G. CUCHIA SUBDIVISION, BEAUMONT, JEFFERSON COUNTY, TEXAS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT a 50'x 50'portion of Genoa Street and two(2)20'x 50'sections of alley right-of-way in Blocks 5 and 6, G. Cuchia Subdivision,as described in Exhibit"A"and shown in Exhibits "13,""l,""2"and"3,"attached hereto, be and the same are hereby vacated and abandoned and title to such property shall revert to and become the property of the persons entitled thereto as provided by law. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24"'day of July, 2012. - Mayor Becky Ames - LEGAL DESCRIPTION FOR ORDINANCE PURPOSES Alley(Exhibit 1)-Being a 0.02 acre tract of land beginning at what is the east property line of Lot 8B,Replat of Lot 8,Block 1, South Park 4 and extending in an easterly direction to what is the west right-of-way line of Elba Street, City of Beaumont,Jefferson County, Texas, containing 0.02 acres,more or less. Genoa Street(Exhibit 2)-Being a 0.06 acre tract of land beginning at what is the east property line of Lot 8B,Replat of Lot 8,Block 1, South Park 4 and extending in an easterly direction to-what is the west right-of-way line of Elba Street,City of Beaumont,Jefferson County,Texas,containing 0.06 acres,more or less. Alley(Exhibit 3)-Being a 0.02 acre tract of land beginning at what is the east property line of Lot 13,Replat of Lots 9-12,Block 1, South Park 1 and extending in an easterly direction to what is the west right-of-way line of Elba Street, City of Beaumont,Jefferson County, Texas,containing 0.02 acres,more or less. EXHIBIT uA" File 815-OB: Request to abandon a 50' x 50' portion of Genoa Street and two 20' x 50' N sections of alley right-of-way. cation: Blocks 5 and 6, G. Cuchia Subdivision Applicant: City of Beaumont Public Works Department 0 100 200 1 i 1 I Feet R Legend . ® CUCHIA ST 8150B R-S R-S GENO ST RSA-H o� a R- R-S _ RM-H FLORM ANE R-S R S EXHIBIT "B" 3130 ELBA ST R-S 14.5 I RA�J-N Ol R -H �r 750 FLORIDAAIE y 700 FLORIDAM # '� 090 FL0RIDAWAVE RI14-H 710 FLORIDAWA1/E 720 FLORIDAWM EXHIBIT II► I 800-699 FiOR14AAti 702-740 IF OR14AAV1= VIM Cron o1 R•S i 5046 KBNETHM m t D -i eoaa0 Gu,�,NOAS-T 5054 KENNEM ArE WH 8 a J b D N ;iOQd KENNErHM R•S R•S 5130 ELBA ST 5075 KENNEMM i H EXIBIT2 " 3013 KENNETHAIE 3023 KENNETH M g w m r to D t� 0 KENNETHAA 5030 ELBA ST XHI'BIT "3 ' I 4 July 24,2012 Consider an ordinance approving the setting of a Cost of Service Adjustment rate schedule by CenterPoint Energy which provides for an annual cost of service and rate base adjustment based on the Company's annual cost data RICH WITH OPPOST{THITT BEAUW*T • E • $ • A - s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorne4&---- MEETING DATE: July 24, 2012 REQUESTED ACTION: Consider an ordinance approving the setting of a Cost of Service Adjustment rate schedule by CenterPoint Energy which provides for an annual cost of service and rate base adjustment based on the Company's annual cost data. RECOMMENDATION Administration recommends approval of an ordinance approving the setting of a Cost of Service Adjustment rate schedule by CenterPoint Energy which provides for an annual cost of service and rate base adjustment based upon the annual cost data of the Company. BACKGROUND On May 1, 2012, CenterPoint Energy("CenterPoint")filed an application with the City of Beaumont to adjust rates pursuant to the Cost of Service Adjustment("COSA")tariff with the City of Beaumont. The tariff allows CenterPoint to make an annual request for a rate adjustment based upon calendar year operating expenses,returns on investment, and Texas franchise taxes. This information is included in the Company's audited financial operating results contained in CenterPoint's annual report to the Railroad Commission of Texas. CenterPoint's filing for the calendar year 2011 operating results shows a cost increase of about$519,383 for the Beaumont- East Texas Division. Under the COSA formula, annual customer charge increases are limited to a five percent(5%)cap. The bottom line impact on customers bills resulting from this year's COSA filing,when allocated to the three general customer classes of(i)residential,(ii) small commercial and(iii) large volume,results in monthly rate increases to the customer charge component of the customers' bills as follows: Class Monthly Increase Residential $0.62 Small General Service $0.82 Large General Service $1.76 The Lawton Law Firm,which is retained as the City's utility consultant,has reviewed the CenterPoint request together with the filings available in the public domain, including Railroad Commission filings, gas infrastructure rate filings and other documents,to confirm the Company's calculations and cost/investment trends. Their analysis of CenterPoint's COSA filings indicates that CenterPoint's calculations are accurate and conform with the rate tariffs on file at the City. The recommendation is that the proposed COSA be approved. BUDGETARYIMPACT The reasonable expenses associated with rate cases are reimbursable by CenterPoint Energy as they have been in the past. ORDINANCE NO. AN ORDINANCE OF THE CITY OF BEAUMONT, TEXAS, SETTING THE JUST AND REASONABLE RATES FOR THE COST OF SERVICE ADJUSTMENT CLAUSE ("COSA") TO BE CHARGED BY CENTERPOINT ENERGY ("CENTERPOINT') FOR GAS SERVICE FOR CUSTOMERS IN THE CITY OF BEAUMONT, TEXAS; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE FOR THIS ORDINANCE. WHEREAS, on or about May 1, 2012, CenterPoint filed a Statement of Intent with the City Secretary in Beaumont, Texas, requesting a rate increase of$0.62 per residential customer per month, $0.82 per small general service customer per month, and $1.76 per large general service customer per month for the Beaumont/Huntsville COSA Service Area; WHEREAS, CenterPoint requested an effective date for the new rate schedule to go into effect on August 1, 2012; WHEREAS, in order to exercise its exclusive original jurisdiction and properly review the requested rates, it is necessary for the City to make a decision within 90 days of the May 1, 2012, filing,or July 30, 2012; WHEREAS, the City retained the Lawton Law Firm, P.C. to review CenterPoint's rate request and make necessary rate recommendations to the City; and WHEREAS, on June 27, 2012, the Lawton Law Firm, P.C., filed a report with the City on this matter outlining the options available and making recommendations to the City; and WHEREAS, the Lawton Law Finn has recommended that the City approve the requested COSA annual rate increase as stated in the June 27,2012, letter from the Lawton Law Firm. THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, HEREBY ORDAINS: SECTION 1. The statements set out in the preamble to this ordinance are adopted herein as if set forth herein. SECTION 2. Based on the recommendations and review presented by the legal/rate consultant Lawton Law Firm, whose report is attached as Exhibit "A," CenterPoint's proposed rate increase of $0.62 per residential customer per month, $0.82 per small general service customer per month, and $1.76 per large general service customer per month for the Beaumont/Huntsville COSA Service Area is adopted and the Company shall file tariffs with the City Secretary reflecting the annual rate increase. SECTION 3. The Company shall promptly reimburse the City's COSA review rate case expenses and may collect such expenses through surcharge based on Mcf usage. SECTION 4. The Company's Cost of Service Adjustment Clause is approved. SECTION 5. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 6. This ordinance shall be effective immediately on passage. PASSED AND APPROVED the 24th day of July, 2012. APPROVED: Mayor Becky Ames ATTEST: City Secretary THE LAW TON LAW FIRM, P.C. 701 Brazos Suite 500 • Austin,Texas 78701 • 512/321.0019 • Fax:512/716-8917 June 27,2012 Mr. Tyrone Cooper Mr. Kyle Hayes City Attorney,City of Beaumont City Manager,City of Beaumont PO Box 3827 PO Box 3827 Beaumont,TX 77704 Beaumont,TX 77704 Re: CenterPoint 2012 Cost of Service Filing Dear Mr.Hayes and Cooper: As you are aware,on May 1,2012 CenterPoint Energy("CenterPoint"or"Company") filed with the City of Beaumont("City")the annual Cost of Service Adjustment("COSA') Tariff reporting the Company's annual operating results and costs. The annual COSA filing is based on an agreed formulaic structure employing the Company's financial operating results contained in the Company's 2011 Annual Report to the Railroad Commission of Texas. The effective date of the proposed COSA rate adjustment is August 1,2012. The City must act prior to August 1,2012 to deny,modify or approve the rate proposal. The Company's COSA proposal,which is based on the calendar year 2011 operating results,provides for a COSA tariff adjustment as follows: PROPOSED CURRENT INCREASE MONTHLY CUSTOMER MONTHLY CUSTOMER CLASS CHARGE AMOUNT CHARGE Residential $12.35 $0.62 $12.97 General Service $16.43 $0.82 $17.25 Large General Service $35.16 $1.76 $36.92 Page 1 of 2 EXHIBIT °A" The estimated annual revenue increase for each customer class is as follows: ANNUAL REVENUE CLASS IMPACT Residential $183,619 General Service $17,820 Large General Service $1,584 Total $203,023 It should be noted that the COSA increase has been limited by the 5%annual cap limitation. In other words,the actual COSA formula produced an annual revenue increase of $519,383,but under the COSA formula annual customer charge increases are limited to a five percent cap. Thus, the overall annual revenue increase is limited to$203,023,or$316,360 less than the claimed 2011 cost level. As can be seen in Table 1,above,all monthly customer charges have been limited to a 5%cap increase for the COSA increase. We have reviewed the Company's COSA filing, schedules and workpapers and found all calculations to be correct. Our review and analyses conclude that the Company's COSA filing and increase conforms with the City's COSA rate tariff on file and should be approved. We have attached a rate ordinance consistent with our recommendation to approve the COSA rate increase request. The rate ordinance should be passed prior to August 1,2012. If you have any questions or need additional information please contact me. EL Daniel Lawton Page 2 of 2 5 July 24,2012 Consider an ordinance authorizing the suspension of the effective date of CenterPoint Energy's proposed rate increase until November 4, 2012 RICH WITH OPPOHTVNITY BEAUNIDN* T • E • X 0 A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Coo per, City Attorney MEETING DATE: July 24, 2012 REQUESTED ACTION: Consider an ordinance authorizing the suspension of the effective date of CenterPoint Energy's proposed rate increase until November 4, 2012. RECOMMENDATION Administration recommends approval of an ordinance authorizing the suspension of the effective date of CenterPoint Energy's proposed rate increase until November 4, 2012. BACKGROUND On July 2, 2012, CenterPoint Energy("CenterPoint")filed its Statement of Intent to increase rates with the City of Beaumont and other cities in CenterPoint's Beaumont/East Texas Service Area. This request would increase rates an estimated$8.6 million annually. An average residential customer would expect a monthly increase of$4.47 as a result of the increase. If a timely determination is not made or the effective date is not suspended,the rate increase proposed by CenterPoint would go into effect by operation of law on August 6, 2012. The proposed ordinance authorizes the suspension of the effective date of the requested increase to November 4, 2012. This would allow for the City to review CenterPoint's request and make an informed recommendation to the City as to what the ultimate decision might be. We are also requesting,by this ordinance,authority to join with the other cities in the CenterPoint Beaumont/East Texas Service Area to retain legal counsel and rate consultants,participate in the gas service rate proceeding before the Railroad Commission and any courts,and to seek reimbursement for rate case expenses from CenterPoint. Once a more thorough review of CenterPoint Energy's rate increase request has been made,the Council will be provided with more information and a recommendation as to what further action is to be taken. BUDGETARY IMPACT All reasonable expenses associated with rate cases are reimbursable by the company. RESOLUTION NO. RESOLUTION OF THE CITY OF BEAUMONT, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE AUGUST 6, 2012, EFFECTIVE DATE PROPOSED BY CENTERPOINT IN CONNECTION WITH ITS RATE INCREASE APPLICATION ENTITLED "STATEMENT OF INTENT TO INCREASE RATES FOR CENTERPOINT'S BEAUMONT/EAST TEXAS DIVISION," FILED ON JULY 2, 2012; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS; REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT, AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about July 2, 2012 CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement of Intent with the City of Beaumont ("City") to increase gas rates in the Beaumont/East Texas Division Service Area by$8.6 million per year;and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and WHEREAS, Gas Utility Regulatory Act §103.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment, it is necessary to suspend the effective date for implementing the proposed rates until at least November 4, 2012,in order to allow the City's rate experts sufficient time to determine the merits of CenterPoint's proposed rates;and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating CenterPoint's $8.6 million rate increase request, City's efforts will be coordinated with similarly situated municipalities in CenterPoint's Beaumont/East Texas Division Service Area; and WHEREAS, the City will join with other municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City; and NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT,TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The effective date of CenterPoint's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until November 4,2012, in order to complete the review and investigation by City's experts. Section 3. The City is authorized to join with other municipalities as part of the CenterPoint Beaumont(East Texas Division Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of CenterPoint before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to CenterPoint for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from CenterPoint through the service of requests for information, which shall be responded to within seven(7)calendar days of receipt of such requests for information. Section 7. CenterPoint shall reimburse the City, through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 8. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. This resolution shall become effective from and after its passage. PASSED AND APPROVED this day of ,2012. - MAYOR BECKY AMES - ATTEST: CITY CLERK 6 July 24,2012 Consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for street, driveway, and sidewalk repairs needed after utility cuts were made by the Water Utilities Department RICH WITH OPPORTUNITY BEA11M,0N, : 1* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart, P.E.,Public Works Director MEETING DATE: July 24, 2012 REQUESTED ACTION: Council consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for street, driveway, and sidewalk repairs after utility cuts have been made by the Water Utilities Department. BACKGROUND The Project includes the replacement of concrete pavement,driveways,or sidewalks at 76 locations throughout the city. On July 12, 2012 the City of Beaumont received four(4)bids for the Project. The low bid was submitted by Bruce's General Construction, Inc. in the amount of$349,360.00. The list below identifies the total bids received from the contractors. Copy Attached. Contractor Bid Amount Location Bruce's General Construction, Inc. $349,360.00 Beaumont, TX. LD Construction $385,417.00 Beaumont, TX. BDS Construction, LLC $496,190.00 Vidor, TX. Norman Highway Constructors, Inc. $659,800.00 Orange, TX. The MBE goal achieved as Bruce's General Construction,Inc. is a MBE contractor. A copy of the schedule identifying the contractor as MBE is attached. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of Resolution. CITY OF BEAUMONT IND TAB SURFACE RESTORATION DUE TO UTILITY CUTS REHABILITATION PROJECT 80"5 GENERAL CONSTRICTION,INC to CONSTRUCTION 6oS CONSTRUCTION,TLC dbe MK NORMAN INGHWAY CONSTRUCTORS, CONSTRUCTION INC. ITEM NO ALT DESCRIPTION UNIT OE UmMNTO UNR MRCE TOTAL UNIT PMCE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL CODE 361 001 FULL-DEPTH CONCRETE PAVEMENT REPAIR(Sry(WA3ASE REPAIR) SY 920 $145.00 $131,560.00 $165.00 $151,600.00 $196.00 $16,320.00 $320.00 $294,400.00 361 002 FULL-DEPTH CONCRETE PAVEMENT REPAIR(10-XWt BASE REPAIR) SY 300 $145.00 $43,500.6 $172.00 $51,600.00 $210.00 $63,000.00 $330.00 $99,000.00 361 003 FULL-DEPTH CONCRETE PAVEMENT REPAIR(WXWI BASE REPAIRXW/T ASPHALT) SY 150 $150.00 $22,500.00 $191.OD $28,650.00 $235.00 $35,250.00 $340.00 $51,000.00 Soo 001 MOBILIZATION LS 1 S16,000AO $16,ODDAO $30,000.00 $30,000.00 $49,000.0D $49,000.00 $5,000.00 $5,000.00 502 001 BARRICADES,SIGNS AND TRAFFIC CONTROL HANDLING EA 4 $10,000.00 $40,000.00 $9,000.00 $36,000.00 $101500.00 $42,000.00 $11500.00 $6,000.00 529 001 CONCRETE CURB REPAIR LF 350 $22.00 $7,700.00 $11.00 $3,650.00 $60.00 $21,000.00 $40.00 $14,000.00 529 w1 CONCRETE CURB 6 GUTTER REPAIR LF 100 $30.00 $5,000.00 $20.00 $2A00.00 $95.00 $9,500.00 $75.00 $7,500.00 530 001 FULL-DEPTH CONCRETE DRIVEWAY REPAIR(4) - SY 400 $62.0 $364900.00 $95.50 $42,975.00 $100.00 $45,000.00 $200.00 $90,000.00 530 002 FULL-DEPTH CONCRETE DRIVEWAY REPAIR(4ry(EXPOSED AGO.) SY 100 $65.00 $865o0A0 $105.25 $10,525.00 $122.0 $12,200.00 $225.00 $22,500.00 530 w3 FULL-DEPTH CONCRETE DRIVMAY REPAIR.(6h SY 120 $85,00 $10AIL00 $102.60 $12,312.00 $116.00 $11920.00 $220.00 $26,400.00 531 001 CONCRETE SIDEWALK REPAIR(0) SY 150 $90.00 $191500.00 $69.50 $10,425.00 $103.00 $16,200.00 $200.00 $30,000.00 531 002 ADA WHEEL CHAIR RAMP(4')(W/TRUNCATED DONS) EA 4 $4•000.00 $161000.00 $1,320.00 $5,280.00 $2,200.00 $8,6w.00 $3,5M.00 $14,000.00 TOTALCDNTRACrBRI $649,360.00 $385,417.00 $496,190.00 5659,800.00 CD Crr'K ONA"IU DINT somewaac 8{�UIJ�E flB MHIC�AR'LTC�!'�l1TYt�Y' a BRJCE'S GENERAL CONSTRUCTION, M. VZIMR MANX Ann BRUCE'S GENERAL CONSIRUCTION,INC. if76 REYa')LD81tD BEfdmMT TX t7m- . SITE WORK,CONCR£T£,ETC 349 3fiQ , fl(1 V Lfl I v The mWeritud w eater kto a formak aVasi ent v tlh NM Cgl*&ebora fir work K"tn.thb sekedak coldt"Mal upon nun""of& N wkb the Chy of Bo amouL m LD � N0TB: 1. Tkb 1&0"skontd be snbu tied w)ih y"r bkL r- BROUSSARD N Lo m P (DENT!OWNER N m N m m RESOLUTION NO. WHEREAS, bids were solicited for a contract for street, driveway, and sidewalk repairs after utility cuts have been made by the Water Utilities Department; and, WHEREAS, Bruce's General Construction, Inc., of Beaumont, Texas, submitted a bid in the amount of$349,360.00; and, WHEREAS, City Council is of the opinion that the bid submitted by Bruce's General Construction, Inc.,of Beaumont,Texas, in the amount of$349,360.00 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 Bruce's General Construction, Inc.,of Beaumont,Texas, in the amount of $349,360.00 for street, driveway, and sidewalk repairs after utility cuts have been made by the Water Utilities Department be accepted by the City of Beaumont; and, THAT the City Manager be and he is hereby authorized to execute a contract with Bruce's General Construction, Inc., of Beaumont, Texas, for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24th day of July, 2012. - Mayor Becky Ames - 7 July 24,2012 Consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for walking trail and drainage improvements at Halbouty Park located at 5780 Gober Road RICH WITH OPPORTUNITY Un [1EAUMUN* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart, P.E., Public Works Director MEETING DATE: July 24, 2012 REQUESTED ACTION: Council consider a resolution authorizing the award of a contract to Bruce's General Construction, Inc. for walking trail and drainage improvements at Halbouty Park located at 5780 Gober Road. BACKGROUND The project includes the construction of a new 0.46 mile reinforced concrete walking trail and park drainage improvements. On July 12, 2012 the City of Beaumont received eight(8)bids for the Project. The low bid was submitted by Bruce's General Construction, Inc. in the amount of$70,355.00. The list below identifies the total bids received for the Project. Copy Attached. Contractor Bid Amount Location Bruce's General Construction $70,355.00 Beaumont, TX. Basco Construction $76,003.05 Nederland, TX. Simco Enterprises $78,060.00 Groves,TX. Race Horse $81,362.50 Lumberton, TX. APAC-Texas Inc. $100,943.00 Beaumont, TX. L.D. Construction $104,525.00 Beaumont, TX. L&L General Contractors $155,251.00 Beaumont, TX. S&H Construction $2,069,100.00 Groves, TX. The MBE goal will be achieved as Bruce's General Construction, Inc. is an MBE contractor. A copy of the schedule identifying the contractor as an MBE is attached. FUNDING SOURCE Capital Reserve. RECOMMENDATION Approval of Resolution. BID TABULATION: HALBOUTY PARK WALKING TRAIL BID OPENING DATE: 7/12/2012 2 PM BID NUMBER: BMTPWENG0027 Bruce's Gen.Constr. Basco Construction Simco Enterprises RaceHorse Beaumont,TX Nederland,TX Groves,TX Lumberton,TX UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL BID SCHEDULE QTY UNIT PRICE PRICE PRICE PRICE PRICE PRICE PRICE PRICE o i ization, on s, Insurance,etc. 1 LS $3,000 $3,000 $3,710 $3,710 $3,500 $3,5001 $3,200 $3,200 Remove ormwater ution Prevention Plan 1 ILS $2,750 $2,750 $2,000 $2,000 $1,000 $1,000 $3,500 $3,500 Temporary Fencing, installation,maintenance and removal 1 LS $2,750 $2,750 $4,300 $4,300 $300 $300 $2,600 $2,600 Install 5"thick concrete sidewalk,including subgrade prep,doweling,and 1"min sand cushion 1305 SY $40 $52,200 $42.17 $55,031.85 $49 $63,945 $40.50 $52,852.50 ns is sack cement stabilized sand 25 SY $20 $500 $58 $1,450 $15 $375 $480 $12,000 Install sidewalk scuppers, including welded non-slip diamond plate covers 9 EA $750 $6,750 $820 $7,380 $500 $4,500 $575 $5,175 Sod disturbed areas 1 740 ISY $3.251 $2,4051 $2.88 $2,131.20 $6 $4,4401 $2.75 $2,035 Bid-Schedule Sub-Totals $70,355 $76,003.05 $78,060 $81,362.50 Total Materials Cost-Based on Est.Qty. $21,000 $45,638 $30,000 not provided Total Services Cost-Based on Est.Qty. $49,155 $30,422 $48,060 not provided Total Base Price-Based on Est.Qty. $70,355 $76,003.05 $78,060 $81,362.50 APAC-Texas, Inc. LD Construction L&L Gen.Contractors S&H Construction Beaumont,TX Beaumont,TX Beaumont,TX Groves,TX UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL BID SCHEDULE QTY UNIT PRICE PRICE PRICE PRICE PRICE PRICE PRICE PRICE Mobilization, n s, Insurance,etc. 1 LS $5,400 $5,4001 $1,320 $1,320 $7,321 $7,3211 $2,390 $2,390 Remove Stormwater Pollution Prevention Plan 1 LS $4,200 $4,200 $5,310 $5,310 $15,700 $15,700 $3,400 $3,400 emporary Fencing, installation,maintenance and removal 1 LS $3,250 $3,250 $2,750 $2,750 $3,600 $3,600 $700 $700 Install i concrete sidewalk,including subgrade prep,doweling,and 1"min sand cushion 1305 SY $61 $79,605 $59.70 $77,908.50 $90 $117,450 $39 $50,895 Install sac cement stabilized sand 25 SY $54 $1,350 $48.50 $1,212.50 $40 $1,000 $500 $12,500 Install sidewa k scuppers, including welded non-slip diamond plate covers 9 EA $530 $4,770 $1,320 $11,880 $7201 $6,480 $135 $1,215 Sod disturbed areas 740 ISY $3.201 $2,3681 $5.601 $4,144 $5.001 $3,7001 $2,7001$1,998,000 Bid-Schedule Sub-Totals $100,943 $104,525 $155,251 $2,069,100 Total Materials Cost-Based on Est.Qty. $36,367 $81,560 $62,101 $30,900 Total Services Cost-Based on Est.Qty. $64,576 $22,965 $93,150 $30,900 Total Base Price-Based on Est.Qty. $100,943 $104,525 $155,251 $2,069,100 m m EiTIC OPI C SCHIMM OF MN&PARUCIMU ItiF BRJCE'S GENERAL CONSTRUCTION, INC. PBK"M NAME z BRUCE'S GENISIM CONSTRUCTFOK INC. 1175 RFWMDs RD.BEAUk14Nr,rx77707 SITE WORK,COPICR=_TE,ETC 70,355.00 V H Ln V U] W C[1 v The andersgaed will*Nab"a formal ag�Amout wkk MHO C setors Itar vrork Iced fn-ft sedate coatdEdmed va�ren execver IM of a contract N wMb ft cw of Beana:onL m Lo m NUTS: 1. Thh fthodule dmvdd be mbaedbed wM your bbL JI LL BROUSBARD U-)m RES;K ENT!OWNER N m N a--1 .9- m RESOLUTION NO. WHEREAS, bids were solicited for a contract for the walking trail and drainage improvements at Halbouty Park located at 5780 Gober Road; and, WHEREAS, Bruce's General Construction, Inc., of Beaumont, Texas, submitted a bid in the amount of$70,355.00; and, WHEREAS,City Council is of the opinion that the bid submitted by Bruce's General Construction, Inc., of Beaumont, Texas, in the amount of$70,355.00 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 Bruce's General Construction, Inc.,of Beaumont,Texas, in the amount of$70,355.00 for the walking trail and drainage improvements at Halbouty Park located at 5780 Gober Road be accepted by the City of Beaumont; and, THAT the City Manager be and he is hereby authorized to execute a contract with Bruce's General Construction, Inc., of Beaumont, Texas, for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 24th day of July, 2012. - Mayor Becky Ames - WORK SESSIONS * Review and discuss the partial funding of a School Crossing Guard Program for various schools within the Beaumont Independent School District Review and discuss the possibility of a local preference provision in the city's purchasing policies * Review and discuss a transfer to the Henry Homberg Golf Course fund * Review and discuss a request from MGroup Holding, Inc. for a grant in the amount of$88,000 from the 2011 Home Program related to Briarbend, a Low Income Housing Tax Credit (LIHTC) project located within the 6500 block of Sienna Trails Drive �Y .l�pr CITY OF BEAUMONT LOCAL BIDDER PREFERENCE POLICY 00, �c// The Local Government Code, Sections 271.905(a)and 271.9051 allow the City to consider a vendor's principal place of business in awarding certain contracts by way of competitive bids. This consideration is in effect to promote economic development opportunities through the contract by employing local residents and increasing tax revenue. DEFINITIONS Local Business: 1. Vendor whose principal place of business is within the limits of the City of Beaumont. 2. Vendor who has been in business within the City for at least two(2)years. 3. At least 15% of employees are Beaumont residents Principal Place of Business: A business must: 1. Own or lease a commercial building or space within the corporate city limits of Beaumont. 2. At least 25% of the entity's inventory and workforce must be regularly based at the owned or leased location. In addition, a substantial role in the entity's performance of a commercially useful function or a substantial part of its operations must be conducted at this location. A location utilized solely as a post office box,mail drop or telephone message center and without any substantial work function or inventory, if applicable, does not qualify. Local Bidder Consideration Claim Form: Form that must be completed and included with the bid response on which the business certifies the location of the business activities, number of current employees and number of residents employed, annual taxable sales, whether current on property and sales taxes, and the economic development benefits resulting from award of this contract. GENERAL PROCEDURES 1. Bids for purchase of tangible personal property where the amount is equal to or greater than $500,000. If the City receives one or more bids from a bidder that is a"local business" and whose bid is within three percent(3%) of the lowest bid price received by the City from a bidder who is not a"local business", the City shall enter into a contract with(a)the lowest responsible bidder or(b)the"local business"if a Local Bidder Consideration Claim Form has been submitted and all requirements have been met and it is determined that the bid is the best combination of price and economic development opportunity. The City may also reject all bids. Page 1 2. Competitive Sealed Bids for purchase of construction services, where the amount is less than $100,000 and for purchase of tangible personal property and services where the amount is less than $500,000. If the City receives one or more bids from a bidder that is a"local business" and whose bid is within five percent(5%)of the lowest bid price received by the City from a bidder who is a non-resident business the City shall enter into a contract with(a)the lowest bidder or(b)the "local business"if a Local Bidder Consideration Claim Form has been submitted and all requirements of a"principal place of business"have been met and it is determined that the bid is the best combination of price and economic development opportunity. The City may also reject all bids. 3. Exclusions: Purchases obtained through(a)Request for Proposals, Quotes, or Qualifications, (b)Cooperative Purchasing Programs, (c)Interlocal Agreements, and(d)purchases involving, in whole or in part, federal funding or state funding. The statute excludes telecommunication services, as well. 4. The chart below is a summary of the proposed procedure: Local Government Code 271.4051 Local Government Code 271.905 5%Price Differential 3%Price Differential A. Construction bids less than $100,000 A. Bids for tangible personal property equal to or greater than $500,000 B. Bids for tangible personal property and services less than $500,000 4. Local Bidder Consideration Claim Form. A new form must be submitted with each competitive bid response. Late forms will not be accepted. The form serves to notify the City that the bidder would like local preference consideration and to ensure the qualification of the bidder as a local business and serves to meet the statute's requirement that the governing body find, in writing, that a bidder is a local business. 5. Approval by governing body. Regardless of the amount, the City Council must approve all purchases and contracts in which the local preference policy is applied. The Local Bidder Consideration Claim form will be included with the agenda item for consideration. Page 2 RICH WITH OPPORTUNITY � City of Beaumont Beaumont, Texas T • E • x • A • S LOCAL BIDDER CONSIDERATION CLAIM FORM Sections 271.905 and 271.9051 of the Texas Local Government Code authorize a municipality to consider a vendor's location in the determination of a bid award if the lowest bid received is from a business outside the municipality and contracting with a local bidder would provide the best combination of price and other economic benefits to the municipality. The City of Beaumont has determined that the allowable preference shall be applied to local vendor bids for the purposes of evaluation when in the best interest of the City to do so. This request form and any attachments must be submitted with bid package to be considered by the City of Beaumont. Questions should be addressed to the Purchasing Division at 409-880-3720. Exclusions to the local preference include those purchases that are: sole-source,emergency,federally-funded,cooperative contracts, Requests for Quote or Proposal,or via interlocal Agreement as well as telecommunication services. The City reserves the right to accept or reject any bid or combination of bids. The City requires the information below for consideration of a local bidder preference. (Information may be submitted in an attachment to this form.) 1) Location Eligibility: Principal place of business in Beaumont,Texas. Principal place of business is defined herein as: Business must own or lease a commercial building or space within the corporate city limits of Beaumont,which is used as a home base for 25%or more of its inventory and workforce. Business must be in operation for at least two(2)years. A location utilized solely as a post office box, mail drop,or telephone message center,and without any substantial work function or inventory,does not qualify. a) If yes, identify name of Business/DBA,address,and business structure(sole proprietorship,partnership,corporation,or other). Name of Business/DBA: Address: City: State: Zip: Business Structure: Sole Proprietorship Partnership Corporation Other b) Name and city of residence of owner(s)/partners/corporate officers,as applicable. Name: City of Residence: 2) General Business Information: a) Year business established(Beaumont location). b) Most recent property tax valuation of real and personal property. Please attach. $ c) Annual taxable sales(originating in Beaumont) $ d) Is business current on all property and sales taxes at the time of this claim? Yes No e) Total number of current employees: Number of Beaumont-resident employees: 3) Economic Development benefits resulting from award of this contract: a) Will award of this contract result in the employment/retention of residents of the City of Beaumont? Yes No b) Number of additional jobs created: or retained for Beaumont resident-employees- c) Will subcontractors with principal places of business in the City of Beaumont be utilized? Yes No d) Local subcontractors utilized, if applicable. Name,location,and contract value for each. Name: Address: Contract Value: $ e) Will award of this contract result in increased tax revenue to the City? Yes No f) If Yes,check types of taxes. Property Taxes Sales Taxes Hotel Occupancy Taxes g) Other economic development benefit deemed pertinent by applicant. RICH WITH OPPORTUNITY IIEA,IIMON* T - E - X - A - B City of Beaumont Beaumont,Texas LOCAL BIDDER CONSIDERATION CERTIFICATION Certificate of Information: The undersigned does hereby affirm that the information supplied is true and correct as of the date hereof, under penalty of perjury. City Bid Number/Quote for which the local preference is requested: Print Bidder's Company Name Print Name of Bidder Signature of Bidder Date THE STATE OF TEXAS § COUNTY OF JEFFERSON § Appeared before me the above-named , known to me to be the same, and swore that the information provided in response to the foregoing questions are true and correct to the best of his/her knowledge and belief, this day of , 20 Notary Public, State of Texas Printed Name Commission Expires Form Revised 5/2/12 /bd G:\FORMS\Bids_Local Bidder Consideration App.doc