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PACKET OCT 16 2012
RICK WITS OrrORTUR/TT BEAUMON* T • S • E • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 16,2012 1:30 P.M. CONSENT AGENDA * Approval of minutes—October 9, 2012 * Confirmation of committee appointments A) Approve a resolution approving the renewal of an annual maintenance agreement for SunGard Public Sector software support B) Approve a resolution accepting funding through the Department of Homeland Security Grant Program C) Approve a resolution approving the renewal of an annual support agreement for NetApp support used by various City departments for document and database storage D) Approve a resolution authorizing a payment of dues to the South East Texas Regional Planning Commission for Fiscal Year 2013 E) Approve a resolution authorizing the City Manager to execute an annual services agreement for Hotel Occupancy Tax administration and client review services, sales tax compliance review services, and the quarterly Sales Tax Analysis & Reporting Services Package F) Approve a resolution authorizing the City Manager to execute a memorandum of understanding with the South East Texas Regional Planning Commission to provide emergency notifications G) Approve a resolution authorizing the execution of a Quit Claim Deed and a curative release in favor of HEB Grocery Company A RICH WITH OPPORTUNITY BEAUMON* T • Z 0 X • A e 8 City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution approving the renewal of an annual maintenance agreement for SunGard Public Sector software support in the amount of$87,205. BACKGROUND SunGard Public Sector is used by various City departments. This purchase is exempt from competitive bidding since it is available from only one (1) source having exclusive rights to modify and maintain the software. The software maintenance agreement provides for unlimited telephone support and up to three (3) software updates during the annual term. This agreement is for an annual period beginning October 1, 2012 and includes the following applications. Software Application Contract Amount Building Codes and Permitting $4,720 Finance Cash Receipts $2,870 Finance Fixed Assets $2,720 Finance GMBA Accounting System $11,280 Finance Loans Module $2,300 Finance Accounts Receivable $3,990 Finance Purchasing $6,200 Finance Payroll $9,320 Imaging Interfaces $2,595 C1ick2GOV Citizen Web Portal $3,780 Municipal Court $8,740 Jury Management $2,220 Land Management $4,250 Occupational License $1,990 Document Management Services $960 Water Billing and Citizen Online Payments $10,770 Application Modifications $8,500 Total $87,205 FUNDING SOURCE Funding is available within the FY2013 budget in the General, Municipal Court Technology, and Water Funds. RECOMMENDATION Approval of resolution. 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 pay an invoice in the amount of$87,205 to SunGard Public Sector for the renewal of an annual maintenance agreement for software support beginning October 1, 2012. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - B RICH WITH OPPORTUNITY BEAUMO,N* T • Z • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution accepting funding in the amount of$82,131.64 through the Department of Homeland Security Grant Program(HSGP). BACKGROUND The Homeland Security Grant Program consists of a number of grant programs, one of which is the State Homeland Security Program(SHSP). This grant incorporates two programs, a general first responder program and a program dedicated specifically to law enforcement. The City of Beaumont was awarded $60,631.64 under the first responder program which is intended to replace approximately thirteen obsolete mobile data computers (MDCs) and $21,500 under the law enforcement program which is intended to purchase one mobile fingerprint scanner to help with field identifications and to replace one obsolete MDC. FUNDING SOURCE No match required. RECOMMENDATION Approval of resolution. 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 for the City of Beaumont through the Homeland Security Grant Program (HSGP) in the amount of $82,131.64 under the State Homeland Security Program (SHSP). The City of Beaumont was awarded $60,631.64 under the first responder program for the replacement of approximately thirteen mobile data computers (MDCs) and $21,500 under the law enforcement program for use by the Police Department for the purchase of one mobile fingerprint scanner and the replacement of one mobile data computer. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - C RICH WITH OPPORTUNITY BEAUMON* T • $ • _ • A • 8 City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution approving the renewal of an annual support agreement for NetApp support from Sigma Solutions, Inc. in the amount of$57,715.43. BACKGROUND Pricing for the annual support agreement was obtained through the State of Texas Department of Information(DIR). DIR provides cities and political subdivisions with the means to purchase information technology at volume prices contracted under the procurement statutes of the State of Texas. The NetApp central storage device is used by various City departments for documents and databases. It is also the backup to the public safety NetApp storage device located at the 911 Operations Center. FUNDING SOURCE Funding is available within the FY2013 budget in the General and Confiscated Goods Funds. RECOMMENDATION Approval of resolution. 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 pay an invoice in the amount of $57,715.43 to Sigma Solutions, Inc., for the renewal of an annual support agreement for NetApp support beginning October 1, 2012. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - D RICH WITH OPPORTUNITY BEAUMOK* T • _ • _ • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution authorizing a payment of dues to the South East Texas Regional Planning Commission(SETRPC) for Fiscal Year 2013. BACKGROUND The SETRPC was established in June of 1970 under enabling legislation as a voluntary association of local governments. Its purpose is to encourage and permit local governments to join and cooperate with one another to improve the health and safety of their citizens,to plan for future development and transportation efforts, and to recognize the needs of agriculture,business and industry, among other things. The City of Beaumont supports the SETRPC and the community projects they perform. Some of the programs these dues will fund are the Criminal Justice Program; the Area Agency on Aging (AAA)Program;the Homeless Coalition; the Foster Grandparents Program(FGP); and the Retired Senior Volunteer Program(RSVP). FUNDING SOURCE General Fund in the amount of$43,233.92. RECOMMENDATION Approval of resolution. South East Texas Regional Planning Commission 2210 Eastex Freeway Beaumont, Texas 77703-4929 (409) 899-8444 October 1, 2012 �OICE City of Beaumont -— --- P O Box 3827 Beaumont, Texas 7 AW IA- L S .52 Cr6h I E e Pro LPL L 4.34 AAA Oro _ $10,903.02 Homeless Coalition 1 M� $ 9,298.56 FGP Program $ 2,661.28 Lit RSVP Program $4,301.20 Total Invoice4 '33.92 L THANK YOU PLEASE RETURN YELLOW COPY WITH PAYMENT RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the payment of fiscal year 2013 dues to the South East Texas Regional Planning Commission (SETRPC) in the amount of$43,233.92. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - E RICH WITH OPPORTUNITY 111'CA,11MON T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer 4' MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute an annual services agreement with MuniServices, LLC for Hotel Occupancy Tax (HOT) administration and client review services, sales tax compliance review services, and the quarterly Sales Tax Analysis &Reporting Services (STARS) Package. BACKGROUND By law, cities are authorized to adopt a local hotel occupancy tax within the city limits to be collected as a percentage of the price paid for use of a hotel room. The City of Beaumont's rate is 7%. The tax is remitted by the hotel to the City on a quarterly or monthly basis based on whether the amount owed is more or less than $500. These revenues are restricted to uses that directly enhance and promote tourism and the convention and hotel industries. The City's HOT collections are used to fund the Convention and Visitor's Bureau in addition to other eligible organizations. In April of 2010, Council approved a contract with MuniServices for HOT compliance review services to be completed over a three year period. The first year of audits resulted in additional taxes owed to the City of$77,666. In addition, the owners and managers of those hotels that were audited were educated in the area of their deficiency. In the second year, the deficiency was $61,387. The third and final group of hotels are due to be audited this fall. The proposed agreement continues the HOT compliance review services and adds full administration including billing,remittance processing, reporting, collections, and analysis. Sustained compliance on the part of the hotels is the benefit of this service. The compliance review services is at a fee of $1,500 per property audited. On average three (3)properties would be audited per year at a total estimated cost of$4,500. The fee for HOT administration is $100 per property per year or approximately $3,800 per year. Sales tax is 32.4% of the City's revenue in the General Fund and has been very volatile and unpredictable over the last several years. The Sales Tax Compliance Review services is Services Agreement with MuniServices, LLC October 16, 2012 Page 2 designed to detect, document and correct sales tax misallocations thereby producing previously unrealized revenue for the City while producing a more accurate sales tax base upon which to forecast revenue. This review mainly focuses on sales taxes that are mistakenly reported and paid to another jurisdiction. MuniServices staff will work with the business as well as the Comptroller to correct the misallocation and for the City to recover the tax in question. The fee for this service is a 35% contingency fee based on the revenue received by the City as a result of their work and is assessed on the back taxes recovered as well as the collection of the same tax over the next eight(8)reporting quarters following the correction of errors and confirmation of receipt of the revenue by the City. If no corrections are needed, MuniServices will not be compensated. Finally, the STARS package includes a quarterly STARS Digest which provides a specific analysis of the City's sales tax composition, changes, and performance. The report graphically illustrates the City's sales tax analysis, includes specialized reports that provide analysis of the City's sales tax economic base and performance for the latest complete quarter and year benchmark, and includes projections for the balance of the current fiscal year and following fiscal year. In addition, it includes a Monthly Cash Report that details the cash portion of sales tax data presented through a sales tax permit summary, a business classification summary and a comparison of the current quarter year and same quarter last year. Paired with the Sales Tax Analysis & Reporting Service, it creates a comprehensive overview of the performance of businesses in the area. Lastly,the package includes a quarterly three (3)year forecast. The STARS package has an annual cost of$13,000 per year. This service agreement is for a term of one year and thereafter it will automatically renew for successive one-year terms with termination upon a 90 day notice by either party. The agreement is attached for your review. FUNDING SOURCE Hotel Occupancy Tax Fund and General Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an annual services agreement,with an automatic renewal for successive one-year terms with termination upon a ninety(90)day notice by either party, substantially in the form attached hereto as Exhibit "A," with MuniServices, LLC, of Fresno, California, for Hotel Occupancy Tax (HOT) administration and client review services, sales tax compliance review services, and the quarterly Sales Tax Analysis & Reporting Services (STARS) Package. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - MuniServices,LLC Services Agreement 1. Us. We are MuniServices,LLC,a Delaware limited. City of Beaumont liability company,and a wholly owned Attn:Laura Clark,CFO subsidiary of Portfolio Recovery Associates,Inc.; POB 3827 with an office at 7335 N.Palm Bluffs Avenue, Beaumont,TX 77704 Fresno,California 93711. In this Agreement we Email:lclark(aW.beaumonux.us are referred to as"MuniServices"or"we","our", Facsimile:409.880.3132 "us. We use our sister company,RDS,to assist us with work. Sometimes we will refer to you 3. Our Services and your payment. and us as the"Parties." We will provide you with the services listed in Attachment 1 (the"Services"). You will pay us If you need to contact us a short list of helpful the fees listed in that same Attachment. If we are contacts is attached as Attachment 3.If you are providing more than one Service,each service sending us a notice required by this Agreement, will have a separate attachment and will be send it to: labeled Attachment 1-1, 1-2,etc. MuniServices,LLC 4. What our Services do not include. Attn:Legal Department We do not provide to you or any third-parties any 7335 N.Palm Bluffs Avenue legal advice or services. We also do not provide Fresno,CA 93711 tax advice to you or third parties.Also we cannot Email:legal i4muniservices.com and therefore do not establish:the tax rates due Facsimile:559.312.2957 from taxpayers; and the penalties and fees that are assessed against taxpayers(though we will When providing notice to us,you must also calculate these amounts for you as part of the provide a copy of the notice to:PRA General Services once you have established the rates). Counsel, 120 Corporate Blvd.,Suite 100, We also do not determine either the amount of Norfolk,VA 23502. All notices,including refunds or the proper government account(s)that notices of address changes,provided under this taxpayer receipts shall be deposited into. Agreement are deemed received on the third day after mailing if sent by regular mail,or the next 5. Term of this Agreement. day if sent overnight delivery.We do not accept The term of this Agreement begins on notices by email or facsimile,Notice of rate changes or distribution changes must be sent by 2012(the"Effective Date")and continues for a certified mail. period of one-year from the Effective Date. Thereafter this Agreement will automatically 2. You. renew for successive one-year terms(each a You are the City of Beaumont. You are a "Renewal Term") unless either party notifies the municipal corporation of the State of Texas. In other in writing of its intent not to renew 90 days this Agreement we will refer to you as"you", prior to the end of the initial term or any Renewal "your","yours". If we are sending you a notice Term. There are some other ways this required by this Agreement,we will send it to: Agreement can end and those are found in Article I of the General Provisions,Attachment 2. Beaumont TX-SUTA,STARS,HOTAudlt/Adm(n 010612 1 EXHIBIT "A" 6. General Provisions. The parties are also bound by the General Provisions as set forth in Attachment 2 of this Agreement, which are by this reference incorporated into this Agreement.If something in this Agreement contradicts the General Provisions,then what is said in this Agreement governs rather than the General Provisions. The Parties are signing this Agreement on the Effective Date indicated in Section 5 above. MuniServices,LLC City of Beaumont a Municipal Corporation By: By: Marc Iferman Title: President Title: ATTEST: By: wO4- —� g Jensen City Clerk Title: Client Services Beaumont TX-SUT4 STARS,HOTAudit/Admin 010612 2 ATTACHMENT 1 Sales Tax Compliance Review Article 1-Objectives and Methods MuniServices' Sales Tax Compliance Review is designed to assist City with economic forecasting and in preserving and enhancing its sales and use tax revenues by detecting,documenting,and correcting sales tax misallocation thereby producing previously unrealized revenue for City while giving the City a more accurate sales tax base upon which to forecast its revenue. Article 2-Scope of Work In providing the Standard Sales Tax Compliance Review MuniServices shall: • Meet with City's designated staff to review service objectives,scope,procedures,coordination of effort,work plan schedule,public relations,and logistical matters. • Establish an appropriate liaison with the City's coordinator and define logical checkpoints for reviewing progress. • Review the City's sales and use tax ordinances for included provisions,coverage,and classification definitions. • Provide and maintain compliance with the City's sales and use taxes by: • Determining whether the business is remitting the sales and use tax due the City to the state correctly. Specifically,MuniServices shall make this determination by reviewing the payment data available to the City from the Comptroller's Office and generating three main reports to be used for generating the leads: • Top 100 Report—The top 100 sales tax revenue generating businesses in the City complete with payment history. • Significant Anomalies Report—A customizable report designed to discover monthly sales tax anomalies, based on preset dollar value thresholds,that may have been skipped,underreported,or misallocated to an incorrect jurisdiction. • Negative Fund Transfers Report—A report that will track all occurrences of a business filing a refund, amended return,prepaid tax credit,state audit,or an incorrect misallocation. • Having a MuniServices' sales&use tax analyst resolve all leads generated from these 3 reports by contacting each taxpayer in order to confirm the nature of any questionable tax periods. • Performing physical canvassing to ensure the accuracy of businesses that have nexus within the City limit. • Providing documentation to businesses mistakenly reporting the tax to another jurisdiction to facilitate a correction of the registration information. Assist the business, as necessary, in filing of returns and making payments for all open tax periods. Provide documentation to the state to secure the transfer of funds to the City that was reported in error to another jurisdiction. Article 3-Deliverables Progress Reports MuniServices will provide periodic progress reports to City in the form of status updates. These progress reports will also indicate areas in which City staff may further assist and improve the sales tax compliance review activities provided hereunder. MuniServices' progress reports will identify errors/omissions detected,documented and corrected and report on other services of benefit to City for the time period covered. Article 4-Compensation What the City will pay MuniServices In exchange for MuniServices performing the work indicated above,the City will pay MuniServices as follows: MuniServices fee for providing this service is a 35% contingency fee based on the revenue received by the City as a result of MuniServices detecting and documenting taxpayer reporting errors which are subsequently corrected. The 35%applies to all revenues corrected for the City for any periods prior to the date of the corrected allocation. The 35% fee also applies to Beuumon[,TX SUTA010512 1 revenues received for the first eight consecutive reporting quarters following correction of the errors and confirmation of receipt of revenue by the City. City agrees to notify MuniServices within 10 days following receipt by the City of payments (cash payments, installment payments, or other compensation directly benefiting the City)resulting from MuniServices' service. Upon being notified of receipt of payment(s),MuniServices will then invoice the City. Invoices are due and payable upon receipt. All expenses incurred by MuniServices in providing the Sales Tax Compliance Review are the sole and exclusive responsibility of MuniServices,except those expenses that receive prior written approval of City. Additional Consulting City may request that MuniServices provide additional consulting services at any time during the term of this Agreement. If MuniServices and City agree on the scope of the additional consulting services requested,then MuniServices shall provide the additional consulting on a Time and Materials basis.Depending on the personnel assigned to perform the work,standard hourly rates range from$75 per hour to$300 per hour.These additional consulting services will be invoiced at least monthly based on actual time and expenses incurred. Article 5—City Obligations City shall assist MuniServices by providing necessary information and assistance to include, but not be limited to, the following: • Providing MuniServices, on a timely basis, information necessary to conduct its compliance review activities including but not limited to monthly tax payment histories. • Providing a letter of authorization identifying MuniServices as an authorized agent of City to perform sales and use tax reviews and to receive and examine taxpayer records (hard copy and electronic)necessary to assure sales and use tax compliance and revenue forecasts. • Pursue in good faith corrective action on errors and omissions detected by MuniServices. • Issue necessary documentation to the state to correct errors validated by MuniServices. • Notify MuniServices within 10 days following receipt by the Cityof payments (cash payments, installment payments,or other compensation directly benefiting the City). The parties agree that City and/or the State Comptroller retain exclusive authority and responsibility to administer,interpret and enforce the City's sales and use tax, recognizing that MuniServices' role is limited to employing its unique expertise and proprietary tools for. i) detecting and documenting errors/omissions by taxpayers in the application, calculation, collection, and/or remittance of sales and use taxes and,ii)providing City with technical assistance,without assuming or being delegated the authority or responsibility of City to administer,interpret,and enforce its sales and use taxes. Article b—Completion of Services Notwithstanding anything else in this Agreement to the contrary, the City will pay MuniServices per the terms of this Agreement for services begun before termination or expiration of the Agreement even if the monies are received after termination or expiration. MuniServices will provide City with a list of accounts submitted but not yet corrected as of the expiration or termination within a reasonable time after the expiration or termination ("completion list"). MuniServices is allowed to continue working those accounts on the completion list for a reasonable time to obtain a correction. Beaumonk TXSUTA010512 2 � 1• TML ATTACHMENT 1-2 T E. X A Inrrrer MUNICTVkloIeK GVE Sales/[Tse Tax Analysis&Reporting Service Package(STARS) Article 1-Objectives and Methods MuniServices STARS Digest provides a specific analysis of the City's sales tax composition, changes and performance. The STARS Digest graphically illustrates the City sales tax analysis. The MuniServices STARS Digest also includes specialized reports that provide analysis of the City's sales tax economic base and performance for the latest complete quarter and benchmark year. The STARS Digest also includes sales tax revenue projection for the balance of the current fiscal year and the following .fiscal year. Article 2-Scope of Work 1. Quarterly Stars Digest. MuniServices shall provide the City with quarterly updated STARS Digests. MuniServices will provide one paper,bound copy of the quarterly STARS Digest and one electronic copy of the quarterly STARS Digest on CD. City may request additional paper,bound copies of the STARS Digests in accordance with the terms in Section 1.3 of the Compensation section. 1.1 Contents. The quarterly STARS Digest contains the following reports,subject to the availability of Data:. • Historical Collections Analysis-Components of allocation payments by payment activity. • Top 100 Historical - Historical performance of the top 100 accounts comparing current benchmark year ranking and sales tax produced with that of prior years. • Top 100 Detail—Sales tax performance of the City's top 100 sales tax accounts is shown in order of sales tax produced with the results for the most recent five quarters prominently displayed. The proportion of City sales tax produced is also shown by each account. • Economic Category Performance —An analysis of the changes that occurred by economic category and segment with the specific businesses responsible for the significant changes delineated. • Business Classification Code-This report shows the business classification codes assigned by MuniServices based on the NAICS codes provided by the State Comptroller and the accounts assigned those codes in order of sales tax produced. Five quarters of sales tax data are shown for each significant account. • Historical Economic Composition - Data are summarized by economic category and segment by quarters and benchmark years. Percentage of total sales tax generated by each category and segment is also shown to indicate trends in sales tax composition as well as performance. • Cross-Reference Reports -These reports allow the user to look up any of the significant accounts shown in the STARS Digest by name or address. • Geo-Area Reports (optional)—This report tracks sales tax performance within designated geo-areas of the City (e.g.,key shopping centers,business parks, and downtown/business districts, etc.). Charts and printed reports are included for each geo-area. The City may designate geo-areas and include the Geo-Area Reports in the STARS report for the fee set forth in the compensation section. This report is contingent upon the City providing MuniServices with the geo area address ranges in electronic format that meets the following requirements: • XLS,DBF,or Comma Delimited Formats per MuniServices requirements; • and the components of the address range per MuniServices requirements. (Please contact MuniServices for the details of the above requirements.) To provide the optional Geo-Area reports, MuniServices will standardize the street names in the permit file by: o Parsing the addresses to the United States Postal Service(USPS)standard. o Comparing the parsed addresses to the Texas' USPS file for standardization and manually verifying it. MuniServices is not responsible for verifying the accuracy of the addresses in the permit file. Beaumont TX-STARS pkg.rev 091812 1 All of the reports in this paragraph(1.1)provide data that are based on the date on which the transaction took place and not on the date on which the payment was transferred to the City. 1.2 Excluded businesses. The STARS Digest does not include any information on taxpayers that is not provided by the State Comptroller to the City. 1.3 Accuracy. The STARS Digest relies on information provided by the State of Texas Comptroller's Office ("State Comptroller"). MuniServices has no obligation to verify the data provided by the State Comptroller. Only if City elects to receive the Geo area reports will MuniServices clean or standardize the data received from the State Comptroller. MuniServices may also rely on information provided by third parties. City acknowledges that MuniServices has no obligation to verify, remove redundancies, or otherwise clean or standardize the information provided by third parties. 1.4 Timing. MuniServices obligation to provide the STARS Digest is conditioned on City's delivery of required signed documentation to the MuniServices to access the proper data from the State of Texas Comptroller's Office. 1.5 License of Electronic Version. MuniServices hereby grants City a non-exclusive license to print unlimited copies of the STARS Digest from the electronic copy of the STARS digest,if: • the copies are for internal City use only;and • the copies do not remove the confidentiality statements contained in the reports. 2. Business Classifications and Business Names Standardization (optional). If City elects in writing to receive this service, and if the parties mutually agree in writing on the price, MuniServices will standardize the business classification codes and business names in the permit file for major accounts through the computer matching process, augmented with verification by calling taxpayers directly. After this standardization process, all the basic reports should display the standardized names and classifications. 3. Monthly Cash Report(MCR).The MCR is a monthly report that details the cash portion of sales tax data. The three reports that make up the MCR are sales tax permit summary, business classification summary, and a comparison of the current quarter year compared to same quarter last year. This report is most often paired with the Sales Tax Analysis&Reporting Service to create a comprehensive overview to keep clients up-to-date on the performance of businesses in the area. 3.1 Sales Tax Permit Summary 3.1.1 Identifies and categorizes changes by economic category,segment and major businesses 3.1.2 Explains current trends,counter-trend performance and major business changes in an easy-to-read format 3.1.3 Delivered as in printable format 3.1.4 Confidential report 3.2 Business Classification Summary 3.2.1 An up-to-24-month analysis report showing historical performance and comparisons for major businesses 3.2.2 Distinguishes between changes in List Filers and Local Filers in every business grouping 3.2.3 Delivered as a spreadsheet grid for client's internal analysis 3.2.4 Confidential report 3.3 Cash Analysis by Business Groupings 3.3.1 An up-to-24-month analysis report showing historical performance and comparisons for business groupings 3.3.2 Identifies expected trend and counter-trend performance in every business grouping 3.3.3 Distinguishes between changes in List Filers and Local Filers in every business grouping 3.3.4 Delivered as a spreadsheet grid for client's internal analysis 3.3.5 Confidential report Beauman4 T Y-STARS pkg.rev 091812 2 4. Sales Tax Forecasting. MuniServices provides a two-to-five year forecast to its clients every quarter. By updating the forecast quarterly,MuniServices delivers reliable,timely projections.Forecasts include: 4.1 Summary Page 4.1.1 Chart identifying historical sales tax and projected sales tax for pessimistic,most likely and optimistic scenarios. 4.1.2 Table identifying historical.,current and future growth rates by scenario. 4.2 Detail Page for Each Fiscal Year 4.2.1 Identifies changes by economic category and segment . 4.2.2 Identifies potential threats of sales tax loss 4.2.3 Identifies projected sales tax from businesses opening in the future 4.2.4 Accounts for abnormal variations in cash flow 4.2.5 Projects sales tax by scenario 4.2.6 Identifies total fiscal year sales tax depending on the final month in the Client's fiscal year(accrual scenarios) 4.3 Cash Flow 4.3.1 Identifies historical,current and future monthly cash flows by cash payment component. 4.3.2 Components include gross payment,amounts reserved at State,administration fees,net payment,etc. In preparing the forecast, MuniServices .analyzes and adjusts all major business accounts in accordance with market trends, individual business knowledge, expected corrections and changes in threats from business competitors or State law changes. The bottom-up approach allows MuniServices to account for individual business changes while also accounting for changes in the local,regional,state,national and world economies. Article 3-Deliverables Quarterly Stars Digest.MuniServices shall provide the City with quarterly updated STARS Digests. MuniServices will provide one paper,bound copy of the quarterly STARS Digest and one electronic copy of the quarterly STARS Digest on CD. City may request additional paper,bound copies of the STARS Digests in accordance with the terms in Section 1.3 of the Compensation section. Support Service. Included with the STARS Digest,MuniServices will provide the City with a maximum of 2 hours per quarter of telephonic STARS Digest support. Telephonic STARS Digest support consists of teleconferences with a MuniServices representative who will explain the STARS Digest and answer questions about the STARS Digest. Monthly Cash Report.Included with the STARS package is a Monthly Cash Report(MCR)that will be provided to the City by email within 5 business days after the end of each month or receipt of the data from the state. The historical length of the report depends on history available from the Texas State Comptroller. Sales Tax Forecast. Included with the STARS package is a 3-year forecast based upon previous current economic conditions and trends. Two Geo Area Reports.Included with the STARS package will be two Geo Area Report.The City may designate the Geo areas to be included in the Geo Area Reports. Beaumonr,TX-STARS pkg.rev 091812 3 Article 4-Compensation i 1.1 Annual fee. For the STARS Digest, City shall pay MuniServices an annual fixed fee of$13,000 per year("annual fee"). City shall pay the annual fee in four equal quarterly payments of$3,250. Included in the annual fee are the Quarterly STARS Digest,the Monthly Cash Report,the Sales Tax Forecast,plus two Geo Area Reports. MuniServices will invoice the quarterly payments on the first month of each calendar quarter.The City shall pay the quarterly payment even if MuniServices does not provide a STARS Digest for a quarter because of State of Texas Comptroller's Office's failure to provide data. If this addendum(or the Agreement)is terminated for any reason,then the City remains obligated to pay MuniServices the quarterly payments of the annual fee for the quarters before the effective date of termination and for one quarter after the effective date of termination. 1.2 Geo Area reports.Upon City's request,MuniServices will provide additional Geo Area reports for a one-time set-up fee of$1,000 per geo area and$500 annual fee per Geo Area. At any time,the City may request changes in the geo areas for an additional one-time fee of $500 per Geo Area. If the addresses in the permit file have not been standardized thru MuniServices expanded SUTA service, City shall pay an additional one-time setup fee of$750 for address standardization. 1.3 Additional Copies.MuniServices shall provide City additional paper,bound copies of the STARS Digest upon City's request at the rate of $200 annually per additional copy, payable by City in quarterly installments of $50 per additional copy. 1.4 Adjustments.The Annual Fee,the fee for Additional Copies,and the annual fee per Geo Area shall each be adjusted at the beginning of each calendar year by the percentage change in the Consumer Price Index —South Urban (CPI- SU)as reported by the Bureau of Labor Statistics. The initial Consumer Price Index used for the first CPI adjustment will be the CPI-SU for the month in which the agreement is fully signed with the fast adjustment to occur at the beginning of the Calendar year following the fast full calendar year of service. The adjustments thereafter will be based on the CPI-SU from December of the prior calendar year. Each Annual.Fee adjustment shall not be less than two percent(2%)or greater than ten percent(10%). 1.5 One-time fees. MuniServices will invoice the City any applicable set-up fees along with the next invoice for the quarterly installment of the annual fee. Those set-up fees are due and payable within 30-days of the receipt of the invoice. 1.6 Additional Consulting. City may request that MuniServices provide additional consulting services at any time during the term of this Agreement. If MuniServices and City agree on the scope of the additional consulting services requested,then MuniServices shall provide the additional consulting on a Time and Materials basis.Depending on the personnel assigned to perform the work,standard hourly rates range from$75 per hour to$300 per hour. These additional consulting services will be invoiced at least monthly based on actual time and expenses incurred. Article 5—City Obligations Confidentiality The information provided to the City in the STARS Digest is confidential. It is not open to public inspection. A City may use the information only for the purpose of economic forecasting (Tex. Tax Code §321.3022(f)). Unauthorized distribution of confidential information by an officer or employee of a government.agency is punishable by 6 months in jail and a $1,000 fine (Tex. Govt. Code § 552.352). City shall not use the STARS Digest for any purpose other than economic forecasting and shall not distribute the STARS Digest to any person to unless that person is legally entitled to access to the information in the STARS Digest,or except as may otherwise be required by law or court order. Beaumon4 TX-STARS pkg.rev 091812 4 TLATTACHMENT 1-3 T ML, .E X A S Local Occupancy Tax Program WNICIMLLEAGUR Audit and Administration Article I-Objectives and Methods MuniServices'Local Occupancy Tax Program is intended to assist the City in maximizing lodging tax revenue.The Audit service provides for examination of taxpayer records to verify compliance and proper accounting for receipts subject to the tax. The Administration service offers a turnkey approach to ensure appropriate collection, deposit, recording, delinquency follow up and reporting of the local lodging tax. This service includes all correspondence, forms and other such services to ensure appropriate and timely remittance of the tax. In this instance the City seeks on-site examination of the records of ten percent(10%)of the City's lodging properties per year to insure compliance in collecting and returning the local hotel occupancy tax. Article 2-Scope of Work A. Audit Services 1. Perform on-site examinations of the records of those providers requested by City to warrant further investigation; 2. Provide City staff with a detailed list of all records required to be made available by lodging providers for the further reviews, together with a draft engagement announcement letter to be sent to each lodging provider requiring examination; 3. In coordination with City staff, schedule and conduct reviews at the property locations of those providers identified and authorized for examination; 4. Verify accuracy of filed lodging tax returns with daily and monthly activity summaries; 5. Review a random sample of the daily and monthly summaries to determine if the daily summaries reconcile to the monthly summaries; 6. Review bank statements to verify that deposits reconcile with the reported revenue on the lodging tax returns'; 7. Review exempted revenue for proper qualifying documentation; 8. Review a random sample of exempted guest revenue and trace registration and/or other source documents to verify compliance with the City ordinance; 9. Where possible,compare the State lodging tax filings with City's tax returns; 10. For each error/omission identified and confirmed,submit substantiating documentation to designated City staff in order to facilitate collection of revenue due from lodging providers for prior periods; 11. Coordinate with designated City official(s)as necessary to review findings and recommendations; 12. Prepare draft Notices of Deficiency Determination, and commendation, warning and credit letters, as applicable, for City to advise lodging providers of examination results 13. Provide assistance to City in reviewing any matters submitted in extenuation and mitigation by lodging providers in contesting a deficiency determination;and Beaumont TX HOT Audit&Admin 010612 1 14. Prepare and document any changes to the review findings and provide revised tax,interest or penalty amounts due the City. B. Administration Services Remittance Processing 1. Taxes Processed:MuniServices will perform remittance processing for lodging taxes as designated by the City. 2. TaxpUer Notification and Remittance: MuniServices will send individualized tax forms to all known lodging providers("Taxpayer(s)"). Taxpayers will remit payments as indicated in Exhibit A, Distribution Confirmation, attached and incorporated herein by reference. Upon reasonable notice to City, MuniServices may change the address for payments. Optional Online File and Pay - For an additional set up fee, online fling and remittance using standard MuniServices formatting will be provided for the Taxpayers convenience. 3. Deposit Process: Deposits are made to the extent that funds have been received, via Automated Clearing House of the amounts and to the designated recipients as instructed by the City for each type of tax collected,as shown in more detail on Exhibit A. 4. Posting Process: Taxpayer accounts are posted with payment information captured in the MuniServices revenue system. Additional information such as net sales, deductions, credit sales, measure of tax, name change and address change is captured and added to the payment data and taxpayer master.file(as determined necessary by MuniServices). Late payments (postmarked by U.S. Postal Service after the due date) are invoiced at penalty amounts required by State code. Under-payments are invoiced for remaining tax due plus any required penalties. 5. Changes to Exhibit A: The City shall notify MuniServices in writing immediately of all changes in amounts to be deposited into the accounts of designated recipients. An amended Exhibit A shall be prepared and executed by the Parties as soon as reasonably possible. In addition, MuniServices shall provide documentation confirming each change under the preceding sentence with the first monthly report reflecting the applicable change. If the changes reflected in the monthly report do not properly reflect the intended changes of the City, then the City shall immediately notify MuniServices and,thereafter,MuniServices shall take the steps necessary to insure that designated recipients receive the amounts intended by the City. Compliance Services 6. Taxes Reviewed: MuniServices will perform compliance services for lodgings taxes designated by City under Remittance Processing Services. MuniServices will provide delinquency notification and follow-up. This includes correspondence, calls, and collection procedures and the related documentation. Delinquency policies and procedures will be applied consistently and within applicable tax laws. Unless otherwise directed by the City, MuniServices will make reasonable efforts to collect taxes designated by the City hereunder. Where deemed reasonably appropriate,accounts may be turned over to audit or third party collection. If the City elects to have its attorney pursue collection of certain uncollected accounts, MuniServices will assist the City attorney as reasonably requested at its normal hourly rate as reflected herein. 7. Conduct of Compliance Services: To assure that all taxpayers are treated fairly and consistently and all compliance services are performed in a similar manner, MuniServices representatives who perform compliance services will use a similar compliance plan for each compliance service conducted. All funds due from compliance services will be remitted to City in the same manner as provided for pursuant to Section A,above. Beaumon4 TX H0T Audlt&Adm fn 010612 2 General Provisions 8. Information Provided: The City represents that the information provided to MuniServices in the performance of services hereunder shall be provided free and clear of the claims of third parties.The City represents that it has the right to provide this information to MuniServices and that said information shall not be defamatory or otherwise expose MuniServices to liability to third parties. 9. Compliance with laws: Each Party accepts responsibility for its compliance with federal, state, or local laws and regulations. 10. Taxnaver service:MuniServices will provide a taxpayer assistance number for taxpayer questions. MuniServices will provide informational brochures for placement in the City offices, Chamber of Commerce offices, libraries and any other facilities. Article 3-Deliverables A. Field Audit Services Provide City staff with a draft Audit Announcement Letter to be sent to each lodging provider to be examined. For each error/omission identified and confirmed, submit a written report substantiating documentation to designated City staff in order to facilitate collection of revenue due from lodging providers for prior periods together with draft Notices of Deficiency Determination,and/or credit,warning or commendation letters as applicable; Prepare and document any changes to the review findings and provide revised tax,interest or penalty amounts due the City. Review any extenuation or mitigation proffered to deficiency determinations and prepare draft response to City staff; and Provide other collections advice upon request. B. Adminstration Services MuniServices will make available to City detailed online reporting, including detailed payment listing, daily/weekly/monthly reconciliation reports,delinquency reports,etc. MuniServices will provide the City with monthly reports including, but not limited to, payment listings showing all taxes received related to net receipts reported, a general ledger distribution that corresponds to the City's account numbers and all fees paid to MuniServices. These reports will be provided by the 10th of the month following the tax month; The City AGREES TO EXAMINE THIS REPORT IMMEDIATELY. IF NO ERROR IS REPORTED BY THE City TO MuniServices WITHIN 60 DAYS, THE STATEMENT WILL BE DEEMED ACCURATE; All items credited will be subject to receipt of payment. Article 4-Compensation The Local Occupancy Tax Services shall be provided as follows: Audit The Audit Services are a flat fee of$1,500 per lodging property audited with 50% due at the time of audit approval and 50%upon completion of the audit.Additionally,MuniServices shall be entitled to reimbursement of reasonable travel and Beaumont TXHOTAudit&Admin 010612 3 other out-of-pocket expenses associated with the conduct of field audits, not-to-exceed$1,500 per contract year without prior written approval of the City. Such reimbursement shall be billed annually. Administration The Administration Services shall be provided for an annual fixed fee of one hundred dollars($100)per lodging property. The optional one-time set up fee for online file and pay is$1,500 and will be invoiced upon execution of the contract. i Additional Consulting City may request that MuniServices provide additional consulting services at any time during the term of this Agreement. If MuniServices and City agree on the scope of the additional consulting services requested, then MuniServices shall provide the additional consulting on a Time and Materials basis. Depending on the personnel assigned to perform the work,standard hourly rates range from$75 per hour to$300 per hour. These additional consulting services will be invoiced at least monthly based on actual time and expenses incurred. Article 5—City Obligations The City shall assist MuniServices by providing necessary information and assistance to include,but not be limited to,the following: A. Field Audit Services Send Audit Announcement Letter to each lodging provider to be examined with a copy to MuniServices. Inform MuniServices of any circumstances concerning existing payees. Inform MuniServices of the development of new lodging properties no later than a Certificate of Occupancy being granted. B. Administration Service Prior to the start of the work to be perfornmed,provide MuniServices with(1)the most recent registration to collect the tax and(2)returns for the time period requested as needed to compile a historical database for the period of the statute of limitations; Inform MuniServices of any circumstances concerning current existing payees; Inform Muniservices of the development of new lodging properties no later than the Certificate of Occupancy being granted; Cooperate in the transition by reviewing proposed processing and materials,offering comments and suggestions and providing timely approvals; Undergo training in the use of online applications. C. Distribution Confirmation The City will fill in the account information requested on Exhibit A and attach the same to the fully executed Agreement. Should there be any changes to the account or percentages in Exhibit A, the City shall immediately notify MuniServices in writing of all changes in amounts to be deposited into the accounts of designated recipients. Beaumon4 TX 110T Audi[&Admin 010612 4 EXHIBIT A DISTRIBUTION CONFIRMATION January 6,2012 City of Beaumont Attn:Laura Clark,CFO POB 3827 Beaumont,TX 77704 Dear Ms.Clark: Funds will be distributed in the following accounts pursuant to this Agreement: Agency Routing Account# Distribution% Tax Type 100% Lodging If at any time there are any discrepancies between the schedule set out above and your City's records,please notify us in writing immediately. IT IS YOUR RESPONSIBILITY TO PROVIDE NOTICE TO US OF ANY CHANGES IN TAX RATES OR IN THE DISTRIBUTION OF FUNDS.NOTICE MUST BE IN WRITING AND SENT,VIA CERTIFIED MAIL,TO: MuniServices,LLC 7335 North Palm Bluffs Ave. Fresno,CA 97311 Attn.:Traci Hall,Accounting Manager Thank you for your assistance. If you have any questions,or if I may be of assistance,please let me know. Traci Hall,Accounting Manager MuniServices,LLC (Phone):559-271-6851 (Fax):559-312-2851 (E-mail):traci.ball amuniservices.com I have reviewed the above distribution and verify that it is correct. By: Name: Title: Beauman4 TX HOTAudit&Admin 010612 5 i ATTACHMENT 2 General Provisions I Article I Within 5 business days after signing this You will designate,in writing,one individual to whom we may address agreement communications concerning this Agreement.This person or such person's designee will be the principal point of contact for us in obtaining decisions,information, approvals,and acceptances. 10 business days after you receive our You have until this date to dispute in the invoice,or a portion of it in writing. Your invoice. written dispute must be post-marked by this date and must be sent to the addresses in paragraph 1 of the Agreement. (Paragraph 1 is located on the front page of the agreement and is titled"Us".) 10 business days after we receive your We will either correct the error or explain to you why we think the invoice is correct written notice that you dispute an During this time,we will not try to collect the amount being disputed. invoice or part of an invoice. 30 days after receiving our invoice. You must pay our invoice(s)by this date. If you do not pay by that time,we have the right to charge you interest at the rate of one and one-half percent(1.5%)per month, or the maximum amount permitted by law,on any amounts you do not pay within thirty days. If we refer your account to an attorney for collection of past due amounts, we may charge you for our reasonable attorney fees,including costs for attorneys who are employed by us,and court costs incurred by us to the extent permitted by law.Any settlement of your account balance for less than what is owed requires our written consent 40 days after receiving our invoice If you have not paid,and have not disputed an invoice as provided above,then we may terminate this Agreement with no further notice and we have no further obligation to you. When you provide us with information By providing us information,you represent that: for use in the Services. • you have the right to provide us the information without violating the rights of third-parties; • your release of the information to us does not violate any applicable laws and regulations;and • to the best of your knowledge the information is accurate and not defamatory. You will notify us immediately if there is a change in the information you have provided to us. If we send you a report or other You will review all reports we provide to you in a timely fashion and you will notify deliverable. us immediately if you find a discrepancy in any of the information we have provided to you. Upon payment therefore,we will grant you all right,title,and interest in and to the reports,charts,graphs,and other deliverables we are required to produce under this Agreement. While the Agreement is effective. We will keep in full force and effect insurance coverage during the term of this Agreement including without limitation statutory workers'compensation insurance; employer's liability and commercial general liability insurance;comprehensive automobile liability insurance;professional liability and fidelity insurance.You may at any time request copies of our certificates. 90-days after prior written notice. This Agreement terminates for convenience but only if the terminating party sends the notice to the person designated to receive notices under this Agreement(see paragraph 1 or 2,as applicable,of this Agreement). i Beaumon4 TX Att.2 1 i After giving written notice of a breach The non-breaching party may immediately terminate this Agreement if: other than a failure to pay. • the written notice of the breach was sent to the person designated to receive notices for the breaching party under this Agreement(see paragraph 1 or 2,as applicable,of this Agreement);and the breach is not your failure to pay(that situation is addressed separately below.);and • the breach has not been cured in a reasonable time after the breaching party received notice. Ordinarily,30 days will be a reasonable time to cure the breach but if the party receiving notice of the breach can demonstrate that the breach will take more than 30 days to cure,the non-breaching party and breaching party will agree on an extended period to cure the breach. i After the occurrence of a"financial A party may terminate this Agreement immediately if the other party experiences a default" "financial default." A"financial default"means: • a material adverse change in a party's financial condition that adversely affects its ability to perform hereunder;or • a party becomes or is declared insolvent or bankrupt;or • a party is the subject of any proceedings relating to liquidation or insolvency or for the appointment of a receiver;or • a party makes an assignment for the benefit of all or substantially all of its creditors; or • a party enters into an agreement for the composition,extension,or readjustment of all or substantially all of its obligations. If you experience a"financial default"then we may,at our option,declare the entire outstanding amounts and costs owing to us hereunder immediately due and payable. This Agreement is terminated or You remain obligated to:(1)pay us for Services performed through the effective date expires. of the termination or expiration;(2)if applicable,provide us with all the information necessary for us to calculate what you owe us on revenue you receive after the termination or expiration;and(3)if applicable pay invoices we send you after the expiration or termination of this Agreement for Services performed before termination or expiration or for continuing payments required by the Scope of Work or for both. Beaumont,rX AM 2 2 Article Q. The parties also agree to the following miscellaneous terms. 1. Independent Contractor. We are an independent under this Agreement without the prior written approval contractor.Nothing in this Agreement is to be interpreted of the other Party. No Party or its agent will use the as: creating the relationship of employer and employee name, mark or logo of the other Party in any between you and us or between you and any of our advertisement or printed solicitation without first having employees or agents; or creating a partnership or joint prior written approval of the other Party, The Parties venture between you and us. We are responsible for any shall take reasonable efforts to ensure that its subcontractors we use in performing Services for you and Subcontractors shall not disseminate any oral or written we are solely responsible to pay those subcontractors.We advertisement, endorsement or other marketing materials may perform similar services for others during this referencing or relating to the other Party without that Agreement and you agree that our representation of other Party's prior written approval. In addition, the Parties government sector clients is not a conflict of interest. agree that their contracts with all Subcontractors will include appropriate provisions to ensure compliance with 2. Compliance with Laws. The parties agree to comply with the restrictions of this Section. all applicable local,state and federal laws and regulations during the term of this Agreement. 9. Entire Agreement. This Agreement is the entire Agreement between us and you for the Service(s). This 3. Intellectual Property. We retain all right, title, and Agreement supersedes and replaces any prior interest in and to the processes, procedures, models, Agreements,of whatever kind or nature,for the Service(s) inventions, software, ideas, know-how, and any and all Any prior Agreements,discussions,or representations not other patentable or copyrightable material used, expressly set forth in this Agreement are of no force or developed, or reduced to practice in the performance of effect. No additional terms, Purchase Order Terms and this Agreement. Conditions, or oral or written representations of any kind are of any force and effect unless in writing and signed 4. Waiver. Either party's failure to insist upon strict with the same formality as this Agreement performance of any provision of this Agreement are not to be construed as a waiver of that or any other of a party's 10. No Oral Modification. No modification of this rights under this Agreement at any later date or time. Agreement is effective unless set forth in writing and signed with the same formality as this Agreement. S. Force Majeure. Neither party is liable for failing to perform its obligations hereunder (other than payment 11. Invalidity. If any provision of this Agreement is obligations)where performance is delayed or hindered by determined to be invalid, illegal, or unenforceable, the war, riots, embargoes, strikes or acts of its vendors or remaining provisions of this Agreement remain in full suppliers, accidents, acts of God, or any other event force, if the essential provisions of this Agreement for beyond its reasonable control. each party remain valid,binding,and enforceable. 6. Counterparts. This Agreement may be signed in separate 12. Construction. This Agreement is to be construed in counterparts including facsimile copies. Each counterpart accordance with the laws of the State of Texas without (including facsimile copies) is deemed an original and all regard to its conflict of laws principals. counterparts are deemed on and the same instrument and legally binding on the parties. 13. Headings. The section headings herein are for convenience and reference purposes only and are not to 7. Assignment. MuniServices may assign this Agreement,in serve as a basis for construction or interpretation. whole or in part,without your consent to any corporation or entity into which or with which MuniServices has merged or consolidated;any parent,subsidiary,successor or affiliated corporation of MuniServices; or any corporation or entity which acquires all or substantially all of the assets of MuniServices. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties and their successors or assigns. 8. Public Release and Statements. Neither you nor we nor each of our representatives or agents shall disseminate any oral or written advertisement, endorsement or other marketing material relating to each other's activities Beaumonk TX Att 2 3 Attachment 3 MuniServices Helpful Contacts Contact Project Role Phone Email Ted Kamel Sr.Auditor/Client Services Manager 903.952.9794 ted ces.c m Lisa Broussard Vice President Client Services Central 713.459.5079 li Brenda Anderson Client Services Manager 817.771.4066 brenda.gg= ices.c m Doug Jensen Sr.Vice President Client Services 559.288.8943 d ices.com Andrea Hunter Vice President Audit Services 205.533.0297 Akw9mamdSam Kandi Wamock TOT Production Manager 817.905.7027 kKd_i.wamoq ces.com Janis Vamey Vice President Misallocation-STJTA 559.271.3011 &Ujp_yMev&MMjjMjcgg.cgm Kirk Dimery SLTfA Production Analyst 559.271.6836 ki[k.gigMagiggilervices.com Doug Estes STARS Production Man2o 559.271.6868 c cam Billing Depam=t 559.271.6946 biIIjU&&MMBjMQda2Lcom Patricia A.Dunn Contracts Manager 559.271.6852 1 patricia.dunnQmuniseMcq§,cgm j I i I RICH WITH OPPORTUNITY BEAUMON* T • Z • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: October 16, 2012 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute a memorandum of understanding(MOU)with the South East Texas Regional Planning Commission to provide emergency notifications. BACKGROUND The City of Beaumont currently provides for emergency alerting of citizens, employees, and emergency operations staff through an agreement with the South East Texas Regional Planning Commission(SETRPC)which expires this month. Grant funding from the Department of Homeland Security 2012 Port Security Grant Program(PSGP)was recently awarded to SETRPC to maintain the regional notification capability for two years. The new MOU will allow the City of Beaumont to utilize the notification system under the SETRPC contract at a cost match of $15,277.16 per year in FY 2013 and in FY 2014. FUNDING SOURCE Capital Reserve Fund. RECOMMENDATION Approval of resolution. 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 two (2) year Interlocal Agreement with South East Texas Regional Planning Commission for use of an 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 16th day of October, 2012. - Mayor Becky Ames - Emergency Notification System Interloca)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,the purpose of this system is to alert large numbers of citizens within a specific geographic area of important information for public safety purposes, and; WHEREAS, in the event of a large scale emergency or incident,the alerting system would benefit the citizens of Beaumont by providing critical information 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 emergency alerting purposes, and; WHEREAS,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 and will only be used in accordance with the Texas Administrative Code (TAC) Chapter 251 Rule 251.13; 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 understands 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 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 EXHIBIT "A" 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 unpublished numbers, Beaumont will be responsible for and agrees to create two separate account log-ins for the alerting system. One log-in will allow Beaumont to use commercially available information for non-emergency messages. Beaumont will determine who shall have access and under what conditions to this non-emergency messaging capability. Another, greatly restricted access log-in will be created by Beaumont for the purpose of solely disseminating emergency alert messages as defined above and utilizing the 9-1-1 database information. The Emergency Management Coordinator for Beaumont and/or his designee will be the only persons allowed access to the restricted emergency alert messaging log-in. Due to the confidential nature of the 9-1-1 data base information and privacy of citizens with unlisted and unpublished numbers, SETRPC retains the right to withdraw their assistance if Beaumont does not maintain the confidentiality of the information or for misuse of the emergency alerting system. All City of Beaumont information will be held confidential and will not be shared with other jurisdictions. SETRPC will not have access to this confidential information. 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. SETRPC HSEMPD does not make any promise, guarantee or other obligation for continued activation of the Black Board Connect system beyond the twenty-four month period. Continued activation of the emergency alerting system will be contingent upon Beaumont's participating in the pro-rata portion of the cost share not to exceed 25%of the total grant award for each respective year. Failure to participate in the cost share will necessitate termination of services. Continued activation of the emergency alerting system is the sole responsibility of Beaumont after the expiration of the twenty- four 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 hereof, 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 WITNESS THEREOF,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 G RICH WITH OPPORTUNITY IIEAUMON* 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: October 16, 2012 REQUESTED ACTION: Council consider a resolution authorizing the execution of a Quit Claim Deed and a curative release in favor of HEB Grocery Company. RECOMMENDATION Administration recommends approval of a resolution authorizing the execution of a Quit Claim Deed and Curative Release in favor of HEB Grocery Company. BACKGROUND On August 28, 2012, the City Council vacated and abandoned a portion of Stagg Drive subject to certain conditions being satisfied by the developer of the adjacent property. The abandonment should have, for all legal purposes, divested the City of any and all interest in the abandoned right-of-way. However,the title company handling the sale of the adjacent property is concerned that the conditions attached to the abandonment, with the possibility of a reversion if the conditions are not satisfied, does not convey full title. The solution is to place in escrow with the title company a Quit Claim Deed from the City to HEB to be held until such time as the conditions have been fulfilled and only to be recorded if the conditions are met. Also, placed in escrow would be a curative release of the right of reverter whereby the City would release any right of reverter once the conditions are met. BUDGETARYIMPACT None. RESOLUTION NO. WHEREAS, on August 28, 2012, the City Council adopted Ordinance Nos. 12-063 and 12-064 vacating and abandoning a portion of Stagg Drive as described on Exhibits"A" and "B," attached hereto, subject to certain conditions being satisfied by the developer of the adjacent property; and, WHEREAS, the abandonment should have,for all legal purposes, divested the City of any and all interest in the abandoned right-of-way; and, WHEREAS, Independence Title Company, the title company handling the sale of the adjacent property, is concerned that the conditions attached to the abandonment, with the possibility of a reversion if the conditions are not satisfied, does not convey full title; and, WHEREAS, the City has been requested to execute and have placed in escrow Independence Title Company a Quit Claim Deed from the City to HEB Grocery Company to be held until such time as the conditions have been fulfilled and only to be recorded if the conditions are met; and, WHEREAS, a Curative Release of the right of reverter will also be placed in escrow whereby the City would release any right of reverter once the conditions are met; 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 a Quit Claim Deed and Curative Release from the City to HEB Grocery Company for the property described on Exhibits "A" and "B," attached hereto. PASSED by the City Council of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - z Gm ) ctwnoN En oRDINANC39 PEMMES COMMENCING at a capped iron rod found at the intersection of the east right-of-way line of 11"Street and the south right-of--way line of Stagg Drive for the northwest corner of the said 16.9617 acre tract; THENCE South 8905939"East along the add south right-of-way line of Stagg Drive and the north line of the said 16.9617 acre tract a distance of 290.14 feet(called South 89°59'39"East)to a point for the southwest corner of the said 0.3530 acre had and the POINT OF BEGINNING; THENCE North 00026'52"West along the west line of the said.3530 ace tract a distance of 59.81 feet to a PK nail found in concrete in the north right-of--way line of Stagg Drive for the southeast corner of a called 0.477 acre tract conveyed to Carat'R Finaht and wife, Patricia L FrrAt as recorded in Film Code 103-21-2215 of the Real Property R000rds of Jefferson County,Texas,the southwest corner of a called 10.2334 acre tract described in the said Deed of Trust betwom Baptist Hospitals of Southeast Tacna and the Bank of New York,William J.Barber,Trustee as recorded in Clacks File No.2001029306 and the northwest corner of the said 0.3530 acre tract; THENCB North 89°59'22"Baal along the south line of the said 10.23 34 acre tract-and the said notch righ"f--way Hue of Stagg Drive and the said 03530 acre tract a distance of 257.33 feet(called South 89°58'00"East)to a point for the northeast comer of tbt said 0.3530 acre tract&oar which a found capped iron rod bears Nat 89°5922"East 27.96 feet(called South 89°58000"East); THENCE South 0OW41"Wed along the east line of the said 0.3530 acre tract a distance of 59.89 feet to a point in the said south right-of-way fiat of Stagg Drive and the said notch line of the 16.9617 acre tract for the southeast corner of the said 0.3530 acre tract from which a%*iron rod found for an exterior corner of flu said 16.9617 acre tract bears South 89°59'39"East 341.66 feet(called South 89°5939"East); THENCE North 89°5939"West along the said south right-of-way line of Stagg Drive and the said 0.3530 acre tract being the north line of the said 16.9617 acre tract a distance of 256.47 feet(called North 89 05939"West)to the POINT OF BEGINNING and containing 0.3530 acres of land,more or less. 1 EXHIBIT "A" .8.1181HX3 a ��1 W� m ,fill sit Ak.19090 } bi � g Y, lilt I vs Mam x EUTT D0 C1N0 st aaiopd iron cad Found S60 wanclicn of the sat A*4-wag►an of 11''Stnet sod die son&rW-of way line of StM D,i"for dwnor6wwt comer ofto aid 16.9617 am tract; UNINCE Sow6$4°59'39"Bast nine j!r aid sodh Aow&wW la of SMa Ddn and dw nor&line of 6s sdd 16.9617 m*t:sot a am=o($8.10 he(OW UA 8955934"Rao to a point for dye wet oaaer of dye aid 0.0356 acre tux sad the POW OF BBODMI!Ki, lMRK B Nor&83 M71•Bart aioad a nor&line of die said 0.0356 sae toot a distance of 95.32 Feet to an apple point; MINIM Bast 000fimin#dm a am*Bee oft*aid 0.0356 acre tent a dudooe of 107.17 feet to a point for dye nw&wt comer of the said 0.0356 som Us t; 1>DCB Sou&00°2 W Bra alms dye sera fins offs acid 0.0356 acre tract adbrme of 10.03 hot to apoistin*6 NO&zi#W-'Wq liar of ewsw"and dN aid north Has of dye 16.9617 am tact for the soa6em oomer of the said 4.0356 acre tract; MMM Nady 89°59W wet along dr acid sop&d#M&v gr line of SMS Ork"ad ie Wd 0 0356 aces trsot hsig dte omb be of>bs sdd 16.9617 a=t W a dbUm of 202.04 feet(aaiied Nagy 89°59"39"Wert)to dye POINT OF BBMNNG ad con alnial 0.0356 saes of lead,yaore a less. L EXHIBIT "B" 14 g j LAJ in y�$ W o ai . ,,I � a.aRS�oo s � �� Bid RICO ■IT■ OPPOR UNITT BEAUMON* T * Z * X * A * S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 16,2012 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 2-3/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider an ordinance approving a specific use permit related to an oil pipeline and related appurtenances in an RS (Residential Single Family Dwelling) District on property extending from the east side of Fannett Road(Hwy. 124)to the east side of the Cattail Marsh 2. Consider an ordinance denying the rate increase request of CenterPoint Energy Resources Corp. initiated on July 2, 2012 3. Consider a resolution authorizing the City Manager to execute an agreement to manage the Municipal Separate Storm Sewer System Permit PUBLIC HEARING * Receive comments on the planned changes to Beaumont Municipal Transit's Laurel, Magnolia and Pine Routes WORK SESSIONS * Review and discuss the City's burglar alarm ordinance * Review and discuss bonding requirements for grounds maintenance vendors 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 October 16,2012 Consider an ordinance approving a specific use permit related to an oil pipeline and related appurtenances in an RS (Residential Single Family Dwelling)District on property extending from the east side of Fannett Road(Hwy. 124)to the east side of the Cattail Marsh RICH WITH OPPORTUNITY BEA,U1'q'0N* T • E x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: October 16,2012 REQUESTED ACTION: Council consider an ordinance approving a specific use permit to allow the construction,maintaining, operating, repairing,replacing, altering and inspecting an oil pipeline and related appurtenances in an RS (Residential Single Family Dwelling) District on property extending from the east side of Fannett Road(Hwy. 124)to the east side of the Cattail Marsh. BACKGROUND TransCanada Keystone Pipeline, LP has applied for a specific use permit. James Freeman,representing TransCanada Keystone Pipeline, LP, states that the project will include laying a 36 inch crude oil pipeline that will bring oil from Cushing, Oklahoma to Nederland. A portion of the pipeline route falls within Beaumont's city limits. Keystone has obtained the right to construct the pipeline on all tracts of land within Beaumont's city limits. The pipeline will be constructed to meet or exceed all applicable Federal, State and Local regulatory requirements including those in the Code of Federal Regulations, Title 49, Part 195, "Transportation of Hazardous Liquids by Pipeline". The method of installation within Beaumont's city limits will include open trench construction,boring and horizontal directional drills. The minimum depth of cover within the city limits will be 42 inches. Depth of cover will increase at road crossings and other city facilities. Pipe wall thickness within the city limits will vary from 0.515 inches to 0.748 inches depending on the method of installation. The City Council and Planning Commission will hold a Joint Public Hearing to consider the specific use permit on October 15, 2012. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of ordinance subject to the following conditions: 1. All traffic control shall comply with the Texas Manual on Uniform Traffic Control Devices, Part 6 (2009 edition). 2. Existing access points being utilized by Keystone shall be shown on a map displaying the scope of the project within the city limits. 3. Any oversized loads moving materials to the project site shall comply with the City of Beaumont Oversized Loads regulations. 4. Clear space between bottom of existing ditch and storm sewer pipe to the top of the TransCanada Keystone pipeline shall not be less than 5 feet. 5. A pipeline license agreement must be submitted and approved prior to any work being performed. A map shall be submitted to Water Utilities showing where the pipeline will be crossing any City of Beaumont water and sanitary sewer mains, both within and outside the City. In addition to the overall map,plan and profile drawings must be submitted for each crossing. The pipeline must be installed a minimum of 5 feet below the bottom of the lowest pipe crossing. LEGAL DESCRIPTION FOR ORDINANCE PURPOSES Being C. Hillebrandt Survey, Abstract 28, Tract 10, Lot 10; S. Stivers Survey,Abstract 51, Tract 15, SP-9; and Part of Tract 26, S. Stivers Survey, Abstract 51, SP-9, Brooks Farm, Abstract 232219, City of Beaumont,Jefferson County, Texas, containing 2,907.877 acres,more or less. ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW THE CONSTRUCTION, MAINTAINING, OPERATING, REPAIRING, REPLACING, ALTERING AND INSPECTING OF AN OIL PIPELINE AND RELATED APPURTENANCES IN A RS(RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT ON PROPERTY EXTENDING FROM THE EAST SIDE OF FANNETT ROAD (HWY. 124) TO THE EAST SIDE OF THE CATTAIL MARSH IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. WHEREAS, TransCanada Keystone Pipeline, LP has applied for a specific use permit to allow the construction, maintaining, operating, repairing, replacing, altering and inspecting of an oil pipeline and related appurtenances in a RS (Residential Single Family Dwelling) District on property extending from the east side of Fannett Road (Hwy. 124) to the east side of the Cattail Marsh., being C. Hillebrandt Survey, Abstract 28, Tract 10, Lot 10; S. Stivers Survey,Abstract 51, Tract 15, SP-9; and Part of Tract 26, S. Stivers Survey, Abstract 51, SP-9, Brooks Farm, Abstract 232219, City of Beaumont, Jefferson County, Texas,containing 2,907.877 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 and is recommending approval of a specific use permit to allow the construction, maintaining, operating, repairing, replacing, altering and inspecting of an oil pipeline and related appurtenances in a RS(Residential Single Family Dwelling)District on property extending from the east side of Fannett Road (Hwy. 124) to the east side of the Cattail Marsh, subject to the following conditions: • All traffic control shall comply with the Texas Manual on Uniform Traffic Control Devices, Part 6 (2009 Edition). • Existing access points being utilized by Keystone shall be shown on a map displaying the scope of the project within the city limits. • Any oversized loads moving materials to the project site shall comply with the City of Beaumont Oversized Loads regulations. • Clear space between bottom of existing ditch and storm sewer pipe to the top of the TransCanada Keystone pipeline shall not be less than 5 feet. • A pipeline license agreement must be submitted and approved prior to any work being performed. A map shall be submitted to Water Utilities showing where the pipeline will be crossing any City of Beaumont water and sanitary sewer mains, both within and outside the City. In addition to the overall map, plan and profile drawings must be submitted for each crossing. The pipeline must be installed a minimum of 5 feet below the bottom of the lowest pipe crossing. 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 ordinance are hereby, in all things, approved and adopted; and, Section 1. That a specific use permit to allow the construction, maintaining, operating, repairing, replacing, altering and inspecting of an oil pipeline and related appurtenances in a RS (Residential Single Family Dwelling) District on property extending from the east side of Fannett Road (Hwy. 124)to the east side of the Cattail Marsh., being C. Hillebrandt Survey, Abstract 28, Tract 10, Lot 10; S. Stivers Survey,Abstract 51, Tract 15, SP-9; and Part of Tract 26, S. Stivers Survey,Abstract 51, SP-9, Brooks Farm, Abstract 232219, City of Beaumont, Jefferson County, Texas, containing 2,907.877 acres, more or less, as shown on Exhibit "A," attached hereto, is hereby granted to TransCanada Keystone Pipeline, LP, 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 conditions: • All traffic control shall comply with the Texas Manual on Uniform Traffic Control Devices, Part 6 (2009 Edition). • Existing access points being utilized by Keystone shall be shown on a map displaying the scope of the project within the city limits. • Any oversized loads moving materials to the project site shall comply with the City of Beaumont Oversized Loads regulations. • Clear space between bottom of existing ditch and storm sewer pipe to the top of the TransCanada Keystone pipeline shall not be less than 5 feet. • A pipeline license agreement must be submitted and approved prior to any work being performed. A map shall be submitted to Water Utilities showing where the pipeline will be crossing any City of Beaumont water and sanitary sewer mains, both within and outside the City. In addition to the overall map, plan and profile drawings must be submitted for each crossing. The pipeline must be installed a minimum of 5 feet below the bottom of the lowest pipe crossing. 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 16th day of October, 2012. - Mayor Becky Ames - r 47 �a! a4f; K �$ 'F 4 �KyI - 4 J 7 �1 g 0 NOMS 0.375 0.75 1.5 P"Md By: m AAkn TransCanada In business M deliver ^� Centerline Roads K? City Limit A ISSUED FOR REVIEW 11107/20,,' 1p72011 Urfiversaagasus Keystone Pipeline Gulf Coast Project O Mile Post ^� Highways 42 Parcel B ISSUED FOR REVIEW 9/1212012 1 N T E R NAT'0 kA L Route within City of Beaumont DM BY: GLE DATE:9/12/2012 D4 Valve Site Jefferson County,Texas REV BY: DCW DATE:9/12/1012 DRAWING: 4385-03-ML-02-705 REV 3 B APR BY: GTC DATE:9/122012 SCALE: 1 In=0.75 SNEET: 1 OF 1 mi MP 470 ♦rr/r�rr��rrrrrrrrrrr�rr 471 -J 390.ORR '+,LI ML-TX -00357.001 GC-MD Y ML-T, ML-TX-,tE-00393.ORD' WM ML-TX MP 47 �I ML-TX,1E-00402.000 R-S z ML TX-JE-00396.000 ML-TX-JE-00403.OWB' R-S R-S . MP 47 FRINT DR MP 474 MP 475 Q� Kt ..._..._ _... MP 476 Cal IS J O j Z ca � r m « O QQ Wt STEINHAGEN RD g 5 s NOTES: Leaend o 1,000 2.000 4.000 Prepared By: -r `] 1 - F�1 TransCanada Ls ^�Centerline ��Roads r'� GC-MD-2 L Ll OP RCR H ,..r. /n business M dellrer O Mile Post Highways PD RM-H A ISSUED FOR REVIEW 11/072011 UniWrSalPegaSUS Keystone Pipeline Gulf Coast Project D4 Valve Site City Limit C-M LI PUD i`1 RM-M B ISSUED FOR REVIEW 9/12/2012 t N i E P N AT 10 NA l Route within City of Beaumont (', REVISED SCALE 9/M012 OWN BY: GLE DATE: 9/202012 Other Parcels CBD NC �� R-S Jefferson County,Texas r REV BY: DCW DATE: 9202012 DRAWING: 4385-03-ML-02-705 REV R-S Parcels GC-MD NSC t�1 RCR APR BY: GTC DATE:9202012 SCALE: 1 in=2,000 SHEET: 1 OF 1 C 3 - MP 47 srr�errrser�err�rrw ML-TXJE-00357. GC-MD ML- ( ' b ML-TX - - l -- -- 47 R-S TX-TX t ML-TX-JE-00403.OWB' RS Rs MP 47 MT OR X 47 475. i 99 � R pv I DMP 476 0 a i� rs I 's i i STEINKAGEN RD i L, NOTES Leuen 7 a 1.000 x000 4.000 FRFrrO B'' ^�Caer** Roads 1 J-' GC-MD-2 ;` OP dr RCR-H FFM TransCanada O Mlk Poat ^/MipM1waya if A-R HI PD RM-H A ISSUED FOR REVIEW !'E*Ott UniVCTSal ft SU3 Keystone Pipeline Guff Coast Project D4 VaNe Site City LYnR FM LI PUD RM-M B s9UEO FORK IEw etzaotz --NATIONAL ROYb within City of Beaumont ,,.��_sse9 00.Pwoek C13D (� NC ?�� RS C REM60 aw.E venmz wm MW:OLE oeTE:srzarz112 Jefferson Cou TaxN C".i RS Peroek GC-MD NSC A RCR ssWew DCw MW-tvmm+z aRVUWws: 4395.034AL 42-705 REV "``7777//// �'" YeaW: OTC GiE:Sll0001z sC11LE t in-x.000•I SHUT, t oF C M m 4 47M _ M 481 4 47 � 47 8 'd 4 4 4 a g� E � ffQIIli 0 Mms 0.76 1.6 PW-W W: 1 Leeend " TransCanada on graana ^l CenterYne Roads Gry Wrdt A IMXD FOR REVIEW 11MQ011 Ul71VCTsaMCgMW Keystone Pipeline Guff Coast Project O MlePoet Parcel B ISSUEDFORREVIEW 9'IVM2 iN7EFNA7i0NAE Routs within City of Beaumont D4 vow Site Drr17 MY.DEE DAIS:WIZrmlz Jefferson Cou Texas aevsr. DCw DATE:012/1012 DRAMOND: 43s00iML-07.705 REV APR sM. OTC DATE:&198012 I KAU:1 h a 0.75 nr I ellET. 1 OF 1 B i 2 October 16,2012 Consider an ordinance denying the rate increase request of CenterPoint Energy Resources Corp. initiated on July 2, 2012 RICH WITH OPPORTUNITY 11EA,[1M0N* 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: October 16, 2012 REQUESTED ACTION: Council consider an ordinance denying the rate increase request of CenterPoint Energy Resources Corp. initiated on July 2, 2012. RECOMMENDATION Administration recommends approval of an ordinance denying the rate increase requests of CenterPoint Energy Resources Corp. initiated on July 2, 2012. BACKGROUND On July 2, 2012, CenterPoint Energy ("CenterPoint") filed with the City of Beaumont and other cities in the CenterPoint Beaumont/East Texas Service Area a request to increase base rates by $8.6 million annually. The City Council on July 24, 2012 suspended the effective date of the proposed rate increase until November 4, 2012. The suspension was granted to allow for a more thorough review of CenterPoint's rate increase request. Since that time,the consulting experts retained by the cities to review the request have done so and are now recommending that the increase request be denied. It is the position of the city's steering committee to accept the recommendation of the consulting attorney and other retained consulting experts that the rate increase request be denied. The City must approve, deny or modify CenterPoint's Statement of Intent to increase rates by November 4, 2012 or the company's request will be deemed approved by operation of law. BUDGETARYIMPACT All reasonable expenses associated with rate cases are reimbursable by the company. ORDINANCE NO. AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY") DENYING THE RATES OF CENTERPOINT ENERGY RESOURCES CORP. FILED IN CENTERPOINT ENERGY RESOURCES CORP.'S RATE PROCEEDING INITIATED ON JULY 2, 2012; 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 to increase gas rates in the service area of the Beaumont/East Texas Division of CenterPoint by $8.6 million per year; and, WHEREAS, the City of Beaumont suspended the effective date of CenterPoint's rates within its jurisdictional limits until at least November 4, 2012 and hired the Lawton Law Firm, P.C. to review the Company's rate change request and proposed tariffs; and, WHEREAS, CenterPoint requested an overall base rate increase of $8.6 million dollars, consisting of a rate increase to residential customers of $8.2 million, and a rate increase of$0.9 million to small general service customers, and a rate decrease of($0.5) million to large volume general service customers; and, WHEREAS, CenterPoint's rate filing request proposes to increase the residential customer charge from an approximate charge of$12.25 per month to $20.25 per month. Overall, revenues from all customer classes proposed to be charged directly to customers through the customer charges make up 89.48% of the Company's total requested revenues--$48,271,035 million out of the Company's total requested $53,943,521 million revenue requirement; and, WHEREAS, CenterPoint's rate filing request includes unreasonable rate increases for recovery of employee expense and benefits, various tax expense and rate base issues, injuries and damages expense, other various expense and investment, unsubstantiated costs allocated from affiliate service companies, and an excessive rate of return and profit for shareholders; 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 the statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. Section 2. The City of Beaumont hereby denies the rate change and proposed tariff revisions requested in CenterPoint's Statement of Intent. Section 3. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 4. This ordinance shall become effective from and after its passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of October, 2012. - Mayor Becky Ames - ATTEST: 3 October 16,2012 Consider a resolution authorizing the City Manager to execute an agreement to manage the Municipal Separate Storm Sewer System Permit RICH WITH OPPORTUNITY BEAUMOK* T • E • X & A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager 0 PREPARED BY: Patrick Donart,Public Works Director MEETING DATE: October 16,2012 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute an agreement with CDM Smith, Inc. of Houston in an amount not to exceed $240,000 to manage the Municipal Separate Storm Sewer System (MS4) Permit for the City of Beaumont. BACKGROUND The Municipal Separate Storm Sewer System(MS4)Permit is renewable every five years. Our current five year Phase I MS4,for cities larger than 100,000 in population,permit was renewed by the Texas Commission on Environmental Quality(TCEQ)in February 2012. The manager of the permit conducts dry and wet weather screenings of our five major outfails in the City. Under the permit,the City is required to submit an annual report summarizing activities and results of the screenings and other inspections conducted throughout the year. The manager of the permit will complete this report for the City.New parameters were added in our recent permit such as the monitoring of E. soli(bacteria). Six(6)proposals were received for the management of the Municipal Separate Storm Sewer System(MS4)Permit for the City of Beaumont.The six companies who submitted were Carroll& Blackman,Inc.of Beaumont,CDM Smith,Inc.,Hazen and Sawyer,P.0 of Houston, LJA Engineering,Inc. of Beaumont,RPS of Beaumont and URS Corporation of Beaumont. Each proposal was evaluated by a committee consisting of the Public Works Director,City Engineer, Environmental Specialist,Quality Control Manager, and Water Quality Coordinator. After evaluating the proposals,the committee interviewed CDM Smith,Inc.,Carroll&Blackman,Inc., LJA Engineering,Inc.,and URS Corporation. CDM Smith was selected based on their expertise in identifying and analyzing bacteria and the future Total Maximum Daily Load(TMDL)regulations expected to be instituted by TCEQ and EPA. CDM Smith,Inc. has subcontracted with Chica and Associates,Inc. of Beaumont to meet the City's MBE goal of 20 percent. FUNDING SOURCE General Fund-Public works Department. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the award of an Engineering Services Agreement to CDM Smith, Inc., of Houston, Texas, in an amount not to exceed $240,000 to manage the Municipal Separate Storm Sewer System (MS4) Permit. The 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 16th day of October, 2012. - Mayor Becky Ames - ENGINEERING SERVICES AGREEMENT STATE OF TEXAS § COUNTY OF JEFFERSON § CITY OF BEAUMONT § AGREEMENT FOR Engineering mW Related Services for Municipal Separate Storm Sewer System Permit SECTION 1 This Agreement made and entered into in Beaumont, Jefferson County, Texas between the City of Beaumont, a Municipal Corporation in the State of Texas, hereinafter termed "City" and CDM Smith, duly licensed, and practicing under the laws of the State of Texas, hereinafter termed "Engineer", said Agreement being executed by the City pursuant to the City Charter and Ordinances and Resolutions of the City Council, and by said Engineer for the Engineering Services hereinafter set forth in connection with the above designated Project for the City of Beaumont. L General A. Detailed Project Description The Engineer will manage the Municipal Separate Storm Sewer System(MS4)Permit for the City of Beaumont. The Engineer will conduct all repr+eseatative monitoring, calibrate flow meters, conduct required dry and wet weather screenings, and Industrial monitoring. The Engineer will prepare and submit an Annual Report to the TCEQ and EPA and represent the City on permit renewal modifications. The Engineer will conduct employee training at City departments and provide Storm Water Management Program (SWMP) implementation activities for Best Management Practices (BMPs). The Engineer will assist the City on Industrial facility inspections and construction site audits when needed. The Engineer shall update and maintain herbicide and pesticide compliance along with data management. Engineer will perform other duties as required by the (MS4)Permit. B. The Engineer shall not commence work on this proposed Project until he has been notified in writing to proceed. The Engineer, in consideration for the cessation herein provided, shall reader all Professional services, including any associated subconsultants, necessary for the FY sots sam VMwAvwn1mt 1 EXHIBIT "A" development of the Project to completion, as provided in this Agreement. It is assumed that the previous Project Engineer satisfactorily completed all Permit Year 1 tasks. R Basic Services A. Meet with the City to determine the schedule for project. B. Work with the City to acquire all needed documentation from previous Project Engineer. C. Conduct all required monitoring. 1. Representative monitoring. a. Preparation for sampling events. b. Collect composite samples during three seasonal events at five locations. c. Submit samples to appropriate laboratory including sample preservation, chain of custody, and sample volume calculations based on flow meter data. d. Analyze laboratory data and compile DMR forms for data submission to the TCEQ/EPA. e. Inform the City of any problems with associated collections and methods to resolve problems. 2. Calibrate Flow Meters. a. City LSCO flow meters. b. Drainage District 6 alert stations. 3. Dry weather screening(20%of all outfalls in given year)or on alternative schedule as defined in permit) a. Onsite test kit analysis of dry weather flows. b. Reporting of illicit discharges and tracking elimination efforts. c. Inform the City of any problems with associated screenings or discharges and methods to resolve problems. 4. Wet weather screening(200/a of all outfalls in given year) or on alternative schedule as defined in permit). a. Field sample collections and test kit analysis. b. Reporting of illicit discharges and tracking elimination efforts. c. Inform the City of any problems with associated screenings or discharges and methods to resolve problems. 5. Industrial monitoring (conducted during wet weather screenings if deemed necessary by inspection or other requirements). a. Laboratory sample collection and preservation. b. Laboratory submission and chain of custody documentation. c. Analyze laboratory results for prioritized facility inspection. d. Inform the City of any problems with associated industrial screenings or discharges. D. Development and submission of Annual Report. 1. Conduct departmental meetings to assess compliance. 2. Gather required data for the annual report and submit methods of improvement as FY2M3SWMV KAp WM" 2 needed. E. Storm Water Management Program Implementation. 1. Conduct employee training at city departments. 2. SWMP Implementation Activities for BMPs. a. SWMP review and identification of implementation priorities. b. Update guidance documents and outreach materials. c. Continued public education/outreach activities. F. Inspection Services. 1. Industrial Facility Inspections. a. Preparation and initial facility research. b. Facility compliance records review. c. Review Facility benchmark monitoring records and record information into centralized tracking spreadsheet. d. Facility walk-through and inspection report completion. e. Implementation of associated enforcement actions and related correspondences. 2. Construction Site Audits. a. Municipal construction site audits to assess compliance with TCEQ construction general permit. G. Permit Renewal. 1. General permit renewal modifications as needed. 2. Represent City in permit negotiations with TCEQ/EPA. 3. SWMP modifications. H. Herbicide and Pesticide Compliance. 1. Conduct dual meetings to assess compliance. 2. Update and maintain maps reflecting City maps depicting sites. L Data Management. 1. Maintain a database to house data to be used in the annual report. 2. Coordinate with City to create a GIS map to reflect outfalls and inspection facilities. III. Special Services(not cpplicable to this agreement) IV. Additional Services All work that will be performed by the Engineer at the request of the City that is described in this paragraph and not included in the paragraphs above, shall constitute Additional Services. Additional Services shall include,but are not limited to the following: A. Services required by the City in any litigation or other controversy as an expert witness, including actual testimony time, stand-by waiting time, preparation of engineering data and reports or depositions and consulting with the City or its attorney. B. Preparation of any special reports, applications for permits or grants, and appearances before any regulatory agencies or public hearings. Frawssamw,w AWannat 3 C. Any revisions of previously approved work. D. Any travel and subsistence to points other than Engineer's or City's Offices and Project site. E. Preparation of exhibits. F. Additional services due to significant changes in scope of Project or its design including but not limited to changes in size, complexity, or character of construction as agreed to by both parties. These tasks may be authorized at the direction of the Public Works Director. V. Coordination A. The Engineer shall hold monthly conferences with the Public Works Director,haunafter termed "Director", or his representatives to the end that the Project as developed shall have the full benefit of the City's experience and knowledge of existing needs and facilities, and be consistent with its current policies and standards. To assist the Engineer in this coordination, the City shall make available for the Engineer's use in planning and designing the project all existing plans, maps, field notes, statistics, computations, and other data in its possession relative to existing facilities and to this particular Project, at no cost to the Engineer. However, any and all such information shall remain the property of the City and shall be returned if instructed to do so by the Director. B. The Director will act on behalf of the City with respect to the work to be performed under this Agreement. He shall have complete authority to transmit instructions, receive information, interpret and define the City's policies and decisions with respect to materials, equipment, elements and systems pertinent to Engineer's services. C. The City will give prompt written notice to the Engineer whenever the City observes or otherwise becomes aware of any defect (error or omission) in the Engineer's services or any development that affects the scope or timing of Engineer's services. D. The Engineer shall promptly report, in writing,to the City of any development that would affect the scope or timing of the Project. VL Fee Schedule A. General For and in consideration of the services to be rendered by the Engineer in this Agreement, the City shall pay and the Engineer shall receive the compensation hereinafter set forth for the Engineer's services described in Sections II, III, and IV. FY 2M3 VVMW AVOWn" 4 B. Basic and Special Services The basis of compensation for Basic and Special Services shall be at the standard hourly rates and expenses as provided in the Schedule of Hourly Rates and Expenses shown on Attachment A. The Engineer agrees that the total services and expenses shall not exceed $240,000 without the City's prior written authorization C. Additional Services Compensation for Additional Services that are authorized by the Director shall be determined based on the standard hourly rates and expenses as shown in Attachment A and shall not exceed an amount to be determined at the time the Additional Services are authorized. VII. City Payments A. Payments shall be made to the Engineer based on the several phases as described above and in accordance with the following: 1. One hundred percent(100%)of the amount due the Engineer for work performed in each phase shall be payable on a monthly basis. B. Payment shall be made within thirty(30) days after submittal of the request for payment for work performed. Payment shall be considered past due forty-five (45) days after submittal. C. The City reserves the right to make an audit of charges claimed for this agreement for services. VIII. Revisions to Drawings and Specifications(not applicable to dos Wwment) The Engineer shall make, without additional expense to the City over and above the basic fee, such revisions to the Design Phase as may be required to meet the needs of the City. After approval of the Design Phase by the City, any revisions, additions, or other modifications made at the City's request that involves extra services and expenses to the Engineer shall be subject to additional compensation to the Engineer for such extra services and expenses. IX.Ownership of Documents All documents including the original drawings, estimates, specifications, field notes and data, will remain the property of the Engineer as instruments of service. However, it is to be understood that the City shall have free access to all such information with the right to make and retain copies of drawings and all other documents including field notes and data Any reuse without specific written verification or adaptation by Engineer will be at City's sole risk and without liability or legal exposure to Engineer. FY zms 81mm VMW AWwn wt 5 X. Termination Either party to this Agreement may terminate the Agreement by giving the other thirty (30)days notice in writing and in accordance with the following procedure: A. Upon delivery of such notice by either party to the party, and upon expiration of the thirty day period, the Engineer shall discontinue all services in connection with the performance of this Agreement and shall proceed to cancel promptly all existing orders and contracts insofar as such others or contracts are chargeable to this Agreement. As soon as practicable after receipt of notice of termination, the Engineer shall submit a statement, showing in detail the services performed under this Agreement to the date of termination. The Owner shall then pay the Engineer promptly that proportion of the prescribed charge to which the service actually performed under this Agreement is applicable to this Project, less such payments on account of the charges as have been previously made. Copies of specifications prepared under this Agreement shall be delivered to the City when and if this Agreement is terminated, but subject to the restrictions, as to their use, as set forth in Section VIII. B. Failure by the Engineer to comply with the submittal of the Wit, and documents as required above shall constitute a waiver by the Engineer of any and all rights or claims to collect any monies that the Engineer may rightfully be entitled to for services performed under this Agreement. XL Engineer's Warranty The Engineer warrants that he has not employed or retained any company or person other than a bona fide employee working solely for the Engineer to solicit or secure this Contract„ and that he has not for the purpose of soliciting or securing this Contract paid or agreed to Pay any company or person, other than a bona fide employee working solely for the Engineer, any fee, commission, percentage, brokerage fee, gift, or any other consideration, contingent upon or resulting from the award or making of this contract. X1I. Equal Employment Opportunity The Engineer agrees to follow the Minority Business Enterprise requirements and/or develop an Affirmative Action Plan as set forth by the City. XIM Assignment or Transfer of Interest The Engineer shall not assign or transfer its interest in the Contract without the written consent of the City. X N. IndemniScation/Iaability Fr2M3SloanWdiW Apdwnwit 6 The Engineer shall save and hold harmless the City from all claims and liability due to activities of himself, his agents, or employees, performed under this Contract and which result from a negligent act, error or omission of the Engineer or of any person employed by the Engineer. The Engineer shall also save harmless the City from any and all expenses, including 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 the Engineer,his agents, or employees and for which the Engineer is found to be legally liable. The Engineer shall, within one week atbar signing the contract and before any work shall start, furnish the city with certificates of insurance naming the City as additional insured satisfactory to the City indicating the existence of Statutory Workmen's Compensation Insurance, and comprehensive General Liability Insurance. Such insurance shall be at the Engineer's expense. The limits shall be as follows: Comprehensive General Liability and Auto Liability Insurance shall not be less than $1,000,000.00 per incident/$1,000,000.00 per occurrence. These certificates shall contain a provision that the City shall be notified thirty (30) days before cancellation of the insurance. The Engineer shall maintain such insurance in force during the life of the contract and shall provide notice to the City at any time that the Engineer becomes aware of any modification or change of insurance carriage and provision shall be made without thirty(30)days written advance notice to the City. XV. Estimates of Cost Since the Engineer has no control over the cost of labor, materials, or equipment or over the contractor's methods of determining prices, or over competitive bidding or market conditions, his opinions of probable Project Cost or Construction Cost provided for herein are to be made on the basis of his experience and qualifications and represent his best judgment as a design professional familiar with the construction industry but the Engineer cannot and does not guarantee that proposals, bids or the construction cost will not vary from opinions of probable cost prepared by him. XVL Inter in City Contracts Prohibited No officer or employee of the City shall have a financial interest, direct or indirect, in any Contract with the City, or shall be financially interested, directly or indirectly, in the sale to the City of any land, materials, supplies or service, except on behalf of the City as an officer or employee. XVM Entire Agreement This Agreement represents the entire and integrated Agreement between the City and Engineer and supersedes all prior negotiation, representatives, or agreements, either oral or Fr 2M3 Sbrm WON Apftnont 7 written. This Agreement may be amended only by written instrument signed by both the City and Engineer. SECTION 2 IN WITNESS WHEREOF, the City of Beaumont has lawfully caused these presents to be executed by the hand of the City Manager of said City, and the corporate seal of said City to be hereunto affixed and this instrument to be attested by the City Clerk, and the said Engineer, acting by the hand of h T. Myers thereunto authorized signee title, does now sign, execute and deliver this document. Done at Beaumont, Texas, on this day of , AD. 2012. CDM SMITH INC. CITY OF BEAUMONT By: By: Principle City Manager Attest: Attest: Fr 2M3 SWm Wa1x AWownwvt 8 ATTACHMENT A SCHEDULE OF HOURLY RATES AND EXPENSE Bwmnoit-FY2078ft imb.Apow»nt-Fk* CDM Schedule of Hourly Billing Rates january 1,aoxz through December 31,2oi2 Hourly Rates Clerical x85.00 Staff Support Services x105.00 Senior Support Services x140.00 Technical/Professional Services: Technician I x100.00 Technician II x125.00 Professional I xuo.00 Professional II x120.00 Professional III x140-00 Professional IV x150.00 Professional V x16o.o0 Senior Professional $175.00 Principal/Associate/Senior Technical Specialist $190.00 Officer/Senior Technical Consultant $210.00 CDM Schedule of Hourly Billing Rates January i,iozz through December 31,zou Chica&Associates Technical/Professional Services: Clerical/Administrative $53.00 Engineering Technician $71.00 EIT x•00 Project Engineer $no•oo Senior Project Engineer $140.00 Project Manager si63.00 All sub-consultants(OP)expenses are subject to a handling/administrative charge of io A. Other project related(ODC) expenses are also subject to a wft administrative charge. Monthly invoices will be generated using the above billing rates. CONFIDENTIAL AND PRIVILEGED PUBLIC HEARING * Receive comments on the planned changes to Beaumont Municipal Transits Laurel, Magnolia and Pine Routes RICH WITH OPPORTUNITY BEAUMO N* T • B • X • A • s City Council Public Hearing TO: City Council FROM: Kyle Hayes,City Manager clx� PREPARED BY: Chris Boone,Community Development Director MEETING DATE; October 16,2012 REQUESTED ACTION: Council conduct a public hearing to receive public comment on the planned changes to Beaumont Municipal Transit's Laurel,Magnolia and Pine Routes. BACKGROUND On October 2,2012,City Council conducted a Work Session to discuss solutions to the ongoing concerns related to the lack of fixed transit access to the new Social Security Office at 8455 Dishman Road. As discussed in the Work Session,because the new Social Security Office was located away from a fixed bus mute, some citizens are having difficulties reaching the building and are continuing to make requests that this be remedied. To achieve this,the plan is to extend the Laurel route out to the new Social Security Office. We have contacted the Social Security Office and they are amenable to allowing a bus stop on their property. Because Laurel is a single-bus route,linked with the Pine mute,we are also proposing to combine the Pine mute with the three-bus Magnolia mute. This would allow the increase in the distance of the routes,while minimizing ridership delays. Following this hearing, we will work to make the riding public aware of these changes through press releases as well as notifications on buses,along affected routes and at Dannenbaum Station. The changes would be implemented December 1,2012. FUNDING SOURCE No additional funding will be required. RECOMMENDATION The Administration recommends these changes and requests that the City Council conduct a Public Hearing to take citizen comments. t�3" w�anawE -- cm�..,n I .WOI,OMVE Y P+f 9 ~ • Y ~ DOt y oowaa� t s ® n + O F + } Ilk z I } ar w a --- > O } } n to too 100 m {r • } IL Im ®. o I I �} I o Z , + ♦��k t �l it IT v�aic� !'- ;` _j;% •+ + 0 / � � /� �{ • `"na'' d 1I 1 �#y \1�� ��•►—� � qS Q romvmurWN ��:� m 11 psi I �� z I8 1 Q LEIGHT • ;� Q - U W I Z '• ` • DELAWARE CO_LL ` DELAWARE 4 � DELAWARE .F• DELAWARE' �• O '2 C°"' 9 LAU V I y IH-10 EAST GLADY3 G DYS ' • ASHLEY � �– S — HARRIS _ 3 co cc WEST© 0 3 CALDER W > - �' w • Q • �..,.. CALDE L DAISY PHELAN LAtIREL z QN��N 4 V.A. = SOUTH go CLINIC $ ou • CALOER �S + EDA �9 b �?i Ed ph> N r U gAIIR D t-BROADWAY �7" © w UNION PACIFIC GATEWAY G �O� q M HOPPING CENTER FANNIN GCAY \ 1 MAGNOLIA/PINE • MAIDA z � R i -► Lucas LUCAS -} TRINIDAD WILSON o LASALLE y� v HALE O 4 ARTHUR 14 a 8 1 U �LEIOHT • ��+ r DELAWARE W� � DELAWARE .� DELAWARE'IE F uv�0 9 LAU IH-1O EAST DYS ASHLEY A�RISU = ; E � W R J i Tl� � � . • H C,4LDE r L CITY PHELAN �� -- LAUREL ® va 8 SOUTH WORK SESSION, * Review and discuss the City's burglar alarm ordinance RICH WITH OPPORTUNITY BEAUMON* T • R • a • A . s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Jim Thompson, Director of Management Operations MEETING DATE: October 16, 2012 REQUESTED ACTION: Work Session- Review and discuss the City's burglar alarm ordinance. BACKGROUND The City's burglar alarm ordinance has not been amended since 2007. A review of alarm system practices was undertaken when the Technology Services Division advised that the old Police iSeries computer and its software were no longer reliable and needed to be replaced. On May 8,the Council approved the purchase of new burglar alarm software for the Police Department in the amount of$54,840. This software is now installed and ready for use. The proposed amendments are in keeping with the rules established by the Texas Local Government Code and Texas Occupations Code which together regulate burglar alarm systems and companies. A survey of registration fees and penalties charged by other cities is attached for your review. Current annual revenues from permits and penalties total about$78,000. The recommended schedule will generate approximately$200,000 in registration and renewal fees. This revenue will offset computer, software, and program management costs. After the program is fully implemented, it is anticipated that penalties will add an additional $90,000. FUNDING SOURCE Not applicable. RECOMMENDATION Council consider these amendments at the next Council Meeting. ARTICLE 6.01 GENERAL PROVISIONS'* (Reserved) ARTICLE 6.02 BURGLAR AND ROBBERY ALARMS"t Division 1. Generally Sec. 6.02.001 Definitions For the purposes of this article,the following definitions shall apply unless the context clearly indicates or requires a different meaning: Alarm notmcation. A notification intended to summon the police,which is designed either to be initiated purposely by a person or by an alarm system that responds to a stimulus characteristic of unauthorized intrusion. (Recorded messages to any police or fire station are prohibited by law.) Alarm site. The specific property served by an alarm system that is under the control of one (1) owner,tenant or lessor. Alarm system. Any electrical, mechanical, or electronic device or assembly of equipment that emits, transmits, or relays a signal intended to summon, or that would reasonably be expected to summon, by direct or indirect means, the aid of the police services of the city. For purposes of this article, the following types of alarm systems are exempted: (1) An alarm system installed on a motor vehicle, unless the vehicle is permanently located at a site; (2) An alarm system designed to alert only the inhabitants of the premises which does not have a local alarm; (3) An alarm system installed upon premises occupied by the United States government, or the state government when they occupy property owned by the state; (4) Any alarm system designed solely to detect or give notice of fire or smoke; and (5) Any communication device not designed solely for alarm notification. Chief'ofnolice. The chief of police of the city or the designated representative of the chief of police. City manager. The city manager or the designated representative of the city manager. False alarm. An alarm notification to which the city responds within thirty minutes and dw the responding officer or a subsequent investigation finds no evidence of Page 1 of 6 unauthorized intrusion or attempted unauthorized intrusion, or other illegal activity for which the alarm was intended to report. Master alarm permit. A permit issued to the owner or property manager of a residential apartment complex which provides an alarm system operated in one (1) or more of the individual residential units. The fees for a master alarm permit shall be the same as those for an alarm permit. Person. An individual, corporation,partnership, or association, organization or any legal entity. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-11) Sec. 6.02.002 Nonresponse status The police department will not respond to a permitted alarm site if the permit holder fails to pay a false alarm penalty within 21 days of notice of same. and the evmer--Ail!be allowed tWe (5)wofking days after meeipt of the letteF te minswe te a response status. A location may ipAfially be reinstated to a response status upon payment of all unpaid penalties and a fifty dollar 50.00 fee for a residential location or a seventy-five dollar ($75.00) fee for a commercial location. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-12; Ordinance 07-012, sec. 1, adopted 2/6/07) Sec. 6.02.003 Apartment complexes (a) The owner or property manager of an apartment complex which provides alarm services shall obtain a master alarm permit if any alarm system is operated in on the premises. (b) A tenant of an apartment complex shall obtain a permit before operating or causing the operation of an alarm system in his residential unit. (c) The permit of the tenant supersedes the master permit of the apartment complex, and the tenant is responsible for payment of fees for false alarm notifications emitted from the alarm system in the tenant's unit. The master alarm permit holder is responsible for payment of service fees for false alarm notifications emitted from unoccupied units obtained by the tefl—aac (d) The owner or property manager of an apartment complex shall obtain a separate alarm permit for any alarm system operated in a nonresidential area of the apartment complex, including, but not limited to, common tenant areas and office, storage and equipment areas. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, Patze 2 of 6 sec. 2 1/2-18) Sec. 6.02.004 Policies and procedures (a) The chief of police shall institute policies and procedures to implement this article. (b) The chief of police shall publish standards of operation for alarm systems. Each permit holder will be provided copies of these standards and all changes thereto. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-19) Sec. 6.02.005 Police response (a) The response, if any,made to a signal from a permitted alarm system shall be subject to the policies and procedures of the police department and will be in accordance with the priorities set for police response. (b) The issuance of a permit authorizing the use of an alarm system is not intended to nor shall it create a contract, either express or implied, nor does it create a duty or guarantee of response by the police department. Any and all liability and consequential damages resulting from the failure to respond to a notification is hereby disclaimed and governmental immunity as provided by law is retained. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-20) Sec. 6.02.006 Operation and maintenance of alarm systems (a) A permit holder shall: (1) Maintain the premises containing an alarm system in a manner that ensures proper operation of the alarm system; (2) Maintain the alarm system in a manner that will minimize false alarm notifications; (3) Respond or cause a representative to respond within one (1) hour when notified by the city to repair or inactivate a malfunctioning alarm system,to provide access to the premises, or to provide security for the premises; (4) Not manually activate an alarm system for any reason other than occurrence of an event that the alarm system was intended to report. (b) A permit holder of a local alarm shall adjust the mechanism or cause the mechanism to be adjusted so that an alarm signal will sound for no longer than fifteen(15)minutes after being activated. Pale 3 of 6 (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-21) Sec. 6.02.007 Violations No person shall operate, cause to be operated or allow the operation of an alarm system: (1) Without a permit issued under the provisions of this article; (2) Without being in compliance with the procedures and provisions of this article; or (3) That automatically dials the 911 emergency communications system. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-22) Sec. 6.02.008 Penalty (a) The failure to comply with the provisions of this article is a class C misdemeanor punishable by a fine of not more than five hundred dollars ($500.00)but not less than one hundred dollars($100.00)upon first conviction, and not less than two hundred dollars($200.00) upon second and subsequent convictions. A person who violates a provision of this article is guilty of a separate offense for each day or portion of a day during which the violation is committed or continued. (b) For the purposes of this article a conviction is a finding of guilty or the defendant's placement on deferred disposition, deferred adjudication, or probation by a court of competent jurisdiction. (c) During the permit pLod,a thirty dollar $30.00)pggg ty will be charged for the fourth and fifth false alarm, a fifty dollar($50.00)penalty will be charged for the sixth and seventh false alarm, and a seventy-five dollar($75.00)penalty will be charged each subsequent false alarm (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-23; Ordinance 07-012, sec. 6, adopted 2/6/07) Secs. 6.02.009--6.02.040 Reserved Division 2. Permit Sec. 6.02.041 Application; term (a) An application for a permit shall be made by a person who owns, leases, resides at, or manages the alarm site. Page 4 of 6 (b) The application shall be submitted with a fifteen-dell 0)thirty-five dollar 35.00� fee for a residential location or fifty-dollar($50.00)fee for a commercial location-fee to the city on a form provided by the city. Any false statement made by an applicant on the application may be prosecuted as a violation of section 3 7.10 of the Texas Penal Code (tampering with governmental record), a third degree felony. (c) An alarm permit is issued to an individual or corporate entity and is nontransferable and nonrefundable. (d) A permit shall be issued for a one-year term beginning on the date of issuance. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; Ordinance 00-25, sec. 1,adopted 3/7/00; 1978 Code, sec. 2 1/2-13; Ordinance 07-012, sec. 2, adopted 2/6/07) Sec. 6.02.042 Revocation The chief of police shall revoke an alarm permit if he determines that: (1) There was a false statement made in the application for a permit. (2) Any false oral statement was made by the applicant in connection with the permit application. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-14) Sec. 6.02.043 Grounds for denial A permit may be denied for: (1) Any false statement on the application;of (2) Any false statement by the applicant in connection with the application; or (3) AM unpaid false alarm penalties or fees. (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 97-65, sec. 1, adopted 12/9/97; 1978 Code, sec. 2 1/2-15; Ordinance 07-012, sec. 3, adopted 2/6/07) Sec. 6.02.044 Renewal An application to renew a permit shall be submitted to the city with a-ten d (S IOM)a twenty-five dollar($25.00) fee for a residential location or a fifty dollar($50.00) fee for a commercial location,along with full payment of all outstanding penalties and fees -fee-due on or before the expiration date on the permit. Page 5 of 6 (Ordinance 95-14, sec. 1, adopted 3/7/95; Ordinance 00-25, sec. 1, adopted 3/7/00; 1978 Code, sec. 2 1/2-16; Ordinance 07-012, sec. 4, adopted 2/6/07) Sec. 6.02.045 Appeal from denial or revocation (a) If the chief of police refuses to issue a permit or revokes a permit,the chief shall notify the applicant or holder by certified mail,return receipt requested, stating the reasons for the denial or revocation. The applicant or holder may appeal the decision by filing a notice of appeal with the chief of police. This notice setting forth the reasons for appeal must be received within ten(10) calendar days of the date of receipt of the notice of revocation or denial. The receipt of the notice of appeal will stay the revocation of the permit. If the notice of appeal is not timely, the revocation or denial is final. (b) The city manager will designate a hearings officer to hear the appeal. At the hearing the formal rules of evidence shall not apply. The hearings officer shall make his decision on the basis of a preponderance of the evidence presented. The hearings officer must render a decision within thirty(30) days after the appeal is filed. The hearings officer may affirm, reverse, or modify the action of the chief. The decision of the hearings officer is final. (c) When the city mails a notice in accordance with this section, and the United States Postal Service returns the notice marked"refused"or"unclaimed,"the validity of the notice is not affected and the notice is considered delivered. (Ordinance 95-14, sec. 1, adopted 3/7/95; 1978 Code, sec. 2 1/2-17; Ordinance 07-012, sec. 5, adopted 2/6/07) Charter reference—Franchises and public utilities,art.XV. "t State law references—Burglar alarm systems, V.T.C.A., Local Government Code, sec. 214.191 et seq.; municipal authority to enact ordinances regulating alarm systems, V.T.C.A., Local Government Code, sec. 233.095;Private Security Act,V.T.C.A.,Occupations Code,ch. 1702. Paste 0 of 6 Comp arison of Alarm Fees in Various Texas Cities Beaumont Beaumont TPCA* Current Proposed Model Plano Lubbock Grand Prairie Georgetown Richardson Residential Alarm Registration/Reinstatement Fees Initial Registration Fee $15 $35 $50 $50 $50 $30 $25 $30 Annual Renewal Fee $10 $25 $50 $50 $50 $30 $25 $30 Reinstatement of Revoked/Suspended(S) Permit $50 $50 NA $85 $50 $50 (S) $25 NA False Alarm Penalty Fees** PP P12M P12M P12M P12M PP P12M 3 False Alarms $0 $0 $0 $0 $0 $0 $0 $0 4th and 5th False Alarms $0 $30 $50 $50 $0 $50 $50 $50 6th and 7th False Alarms $0 $50 $75 $75 $50 $50 $75 $75 8th and 9th False Alarms 9th Revoke $75 $100 $100 $50 $50 $100 $100 10th+ False Alarms NA $75 Suspend $100 $50+Revoke 11th Sus end 11th Revoke $100 Commercial Alarms Registration/Reinstatement Fees Initial Registration Fee $15 $50 $100 $100 $50 $50 $25 $50 Annual Renewal Fee $10 $50 $100 $100 $50 $50 $25 $50 Reinstatement of Revoked/Suspended S Permit $50 $75 NA $135 $50 $50(S) $25 NA False Alarm Penalty Fees** 3 False Alarms $0 $0 $0 $0 $0 $0 $0 $0 4th and 5th False Alarms $0 $30 $50 $50 $0 $50 $50 $50 6th and 7th False Alarms $0 $50 $75 $75 $50 $50 $75 $75 8th and 9th False Alarms 9th Revoke $75 $100 $100 $50 $50 $100 $100 10th+ False Alarms NA $75 Suspend $100 $50+Revoke 11th Sus end 11th Revoke $100 *TPCA-Texas Police Chiefs Association ** During the prior 12 months (P12M)or permit period (PP). Revised February 14, 2012 I', WORK SESSION, * Review and discuss bonding requirements for grounds maintenance vendors