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HomeMy WebLinkAboutPACKET JUN 18 2019BEAUMONT TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 18, 2019 1:30 PM CONSENT AGENDA * Approval of minutes — June 4, 2019 Confirmation of board and commission member appointments A) Approve a contract with Allied Electrical Systems & Solutions, Inc. for alarm monitoring, maintenance and repair B) Approve a payment for the emergency repair of a dump truck used at the landfill C) Approve the purchase of anew Kubota Diesel Tractor and rotary cutter for the Highway Maintenance Division of the Parks Department D) Approve the purchase of a medium voltage motor control center for the Loeb Water Well #1 site from Summit Electric Supply E) Authorize the acceptance of a 10 foot wide Exclusive Sewer Easement for a, new development located at 9325, 9345, 9365, 9385, 9405, 9415 and 9435 Phelan Boulevard RE-AUMONT. TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider a resolution approving a contract with Allied Electrical Systems & Solutions, Inc. of Beaumont for alarm monitoring, maintenance and repair. BACKGROUND Bids were requested for monthly monitoring, maintenance, and repair of alarm systems at sixty- four (64) City owned facilities. This contract allows for the monitoring, annual inspections and maintenance of alarm equipment currently owned by the City and the addition of any new equipment as needed. Pricing is determined by a monthly charge per location for monitoring and an hourly charge for technicians with a percentage mark up oin:materials for maintenance. The contract allows for the addition or removal of facilities as needed. Bids were requested from six vendors and five responses were received. Allied Electrical Systems & Solutions Inc., submitted the low qualified bid. of $66,160.00 for the estimated annual usage by the City. Specifications allow for an annual contract with the option_ of two renewals of one year terms at the same pricing as the awarded contract. Allied Electrical Systems & Solutions, Inc. has the current contract. Bid tabulation is attached. FUNDING SOURCE General Fund - 78.5%. Airport Fund - 10%. Fleet Fund -5.5%. Clean Community -2.5% Water.' Utilities Fund -1.5%. Golf Course -1%. Hotel Occupancy Fund -1% RECOMMENDATION Approval of the resolution. RESOLUTION NO. WHEREAS, bids were solicited for a one (1) year contract, with the option of two (2) renewals of one (1) year terms at the same pricing as the awarded contract, to provide alarm monitoring, maintenance and repair of alarm systems at sixty-four (64) City owned facilities; and, WHEREAS, Allied Electrical Systems & Solutions, Inc., of Beaumont, Texas, submitted a bid in the estimated annual amount of $66,160.00 in the unit amounts as shown on Exhibit "A," attached hereto; and, WHEREAS, City Council is of the opinion that the bid submitted by Allied Electrical Systems & Solutions, Inc. of Beaumont, Texas, is the lowest responsible bidder providing the best value to the City and should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Allied Electrical Systems & Solutions, Inc., of Beaumont, Texas, for a one (1) year contract, with two (2) one (1) year renewal options at the same pricing as the awarded contract, to provide alarm monitoring, maintenance and repair of alarm systems at sixty-four (64) City owned facilities in the estimated annual amount of $66,160.00 pursuant to the unit amounts shown in Exhibit "A," attached hereto, be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Allied Electrical Systems & Solutions, Inc., of Beaumont, Texas, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - mEAUMONT T E X A S City of Beaumont Texas Purchasing Division Bid Tabulation Bid Name: Annual Contract for Alarm Monitoring. Maintenance and Repair Bid Number: TF0519-35 Bid Opening: Thursday, June 6, 2019 Contact Person: Terry Welch, Senior Buyer Terrv.welch(o)beaumonttexas.gov Ph:409-880-3107 Vendor City/State Phone or Fax No. Allied Electrical Systems & Solutions, Inc Beaumont, Tx 409-860-4637 MHC Datacomm, Inc Orange, Tx 225-282-1050 Est Hrs Unit Price Extended Price Unit Price Extended Price Section 1— Monthly Monitoring Charges $1,255/MO $ 15,060/YR $1,124/MO $13,488/YR Section 2 — Estimated Straight Time Service Fees Technician 260 $60.00 $15,600 $48 $12,480 Helper 260 $0 $0 $40 $10,400 Minimum Service Call Fee $60 - $48 - Section 3 - Estimated Overtime Technician 100 $90 $9,000 $72 $7,200 Helper 100 $0 $0 $60 $6,000 Minimum Service Call Fee $90 - $72 - Section 4 — Estimated Sunday/Holiday Technician 50 $90 $4,500 $72 $3,600 Helper 50 $0 $0 $60 $3,000 Minimum Service Call Fee $90 - $72 - Estimated Additional Charges $0 $0 $0 $0 Bid Sub Total $44,160 - $56,168 Percent Mark -Upon Materials ($20,000/Yr) + % MARK UP = Ext PRICE 10/% $22,000 10% $22,000 TOTAL ESTIMATED ANNUAL BID (Sub Total + Mark up) $66,160 - $78,168 EXHIBIT "A" Page 2 Bid Table Bid No. TF0519-35 Vendor City/State Phone or Fax No. Pinpoint Security Bridge City, Tx henry@pinpointsecurity.us S&S Sprinkler Company, LLC Beaumont, Tx 729-9229 Est Hrs Unit Price Extended Price Unit Price Extended Price Section 1— Monthly Monitoring Charges $2,240/MO $26,880/YR $1,655/MO $19,860/YR Section 2 — Estimated Straight Time Service Fees Technician 260 $65 $16,900 $65 $16,900 Helper 260 $0 $0 $58 $15,080 Minimum Service Call Fee $130 - $0 - Section 3 - Estimated Overtime Technician 100 $97.50 $9,750 $78 $7,800 Helper 100 $0 $0 $69 $6,900 Minimum Service Call Fee $195 - $0 - Section 4 — Estimated Sunday/Holiday Technician 50 $130 $6,500 $78 $3,900 Helper 50 .$0 $0 $69 $3,450 Minimum Service Call Fee $6,500 - $0 - Estimated Additional Charges $0 $0 $0 $0 Bid Sub Total $60,030 - $73,890 Percent Mark-Up on Materials ($20,000/Yr) + % MARK UP = Ext PRICE 30% $26,000 5% $21,000 TOTAL BID (Sub Total + Mark up) $86,030 - $94,890 Page 3 Bid Tabulation Bid No. TF0519-35 Vendor City/State Phone or Fax No. Ageint Security Conroe, Tx mbradshaw@ageintsecurity.com Est Hrs Unit Price Extended Price Section 1— Monthly Monitoring Charges $3,273/MO $39,276/MO Section 2 — Estimated Straight Time Service Fees Technician 260 $85 $22,100 Helper 260 $45 $11,700 Minimum Service Call Fee $255 - Section 3 - Estimated Overtime Technician 100 $125 $12,500 Helper 100 $85 $8,500 Minimum Service Call Fee $310 _ Section 4 — Estimated Sunday/Holiday Technician 50 $125 $6,250 Helper 50 $85 $4,250 Minimum Service Call Fee $310 - Estimated Additional Charges $0 $0 Bid Sub Total $104,576 Percent Mark-Up on Materials ($20,000/Yr) +% MARK UP = Ext PRICE 20% $24,000 TOTAL BID (Sub Total + Mark up) $128,576 The low qualified bidder is Allied Electrical Systems & Solutions Inc. as Hi Lighted. TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider a resolution approving a payment for the emergency repair of a dump truck used at the landfill. BACKGROUND Unit 5094 is a 2006 Caterpillar Articulating Heavy Haul Dump truck with 9;290 working hours. Emergency repairs, consisting of a -transmission and transmission case overhaul, were completed by Mustang Cat of Houston in the amount of $65,692.82. Mustang Cat is a Sole Source Vendor. This work came with a 36 month/5,000-hour warranty. The unit is used at the landfill to haul dirt and cover debris to comply with TCEQ regulations. FUNDING SOURCE Fleet Fund. RECOMMENDATION Approval of the 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 $65,692.82 to Mustang Cat, of Houston, Texas, a sole source vendor, for emergency repairs to a 2006 Caterpillar articulating heavy haul dump truck for the Solid Waste Division for use in hauling dirt and covering debris in compliance with TCEQ regulations. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - MONT TO: City Council FROM:_ Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider a resolution approving the purchase of a new Kubota Diesel Tractor and rotary cutter for the Highway Maintenance Division of the Parks Department. BACKGROUND The Kubota tractor will be purchased from Kubota Tractor Corporation of Grapevine, Texas, in the amount.of $51,168.58. The rotary cutter will be purchased from Great Plains Manufacturing DBA Land Pride, of Dallas, Texas, in the amount of $14,313.25. Total purchase of $65,_481.83. This will be additional equipment for the Highway Maintenance Program. Pricing for both was obtained through Buy Board, which is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. Buy Board complies with State of Texas procurement -statutes. FUNDING SOURCE Capital Reserve Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of one (1) Kubota diesel tractor for use by the Parks Department from Kubota Tractor Corporation, of Grapevine, Texas, in the amount of $51,168.58 through the Buyboard Cooperative Purchasing Program; and, BE IT FURTHER RESOLVED THAT the City Council hereby approves the purchase of one (1) rotary cutter for use by the Parks Department' from Great Plains Manufacturing d/b/a Land Pride, of Dallas, Texas, in the amount of $14,313.25 through the Buyboard Cooperative Purchasing Program. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider a resolution approving the purchase of a medium voltage motor control center for the Loeb Water Well #1 site from Summit Electric Supply. ' BACKGROUND The electrical building at the Loeb Water Well #1 site was flooded during Tropical Storm Harvey. The medium voltage motor control center allows the City operators to control the start-up and shut -down of the water well pump motors. At this time the process is being controlled by a unit that is been supplied by FEMA. Bids were solicited from six (6) vendors and two (2) responses were received. Summit Electric Supply of Beaumont submitted the low qualified bid in the amount of $53,333.40. Bid tabulation is attached. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. WHEREAS, bids were received for the purchase of a medium voltage motor control center for the Loeb Water Well #1 site; and, WHEREAS, Summit Electric Supply, of Beaumont, Texas, submitted a bid in the amount of $53,333.40 as shown on Exhibit 'A" attached hereto and made a part hereof for all purposes; and, WHEREAS, the City Council is of the opinion that the bid submitted by Summit Electric Supply, of Beaumont, Texas, is the lowest responsible bidder providing the best value to the City and should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Summit Electric Supply, of Beaumont, Texas, in the amount of $53,333.40 as shown on Exhibit 'A" attached hereto and made a part hereof for all purposes, for the purchase of a medium voltage motor control center for the Loeb Water Well #1 site be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Summit Electric Supply, of Beaumont, Texas, in the amount of $53,333.40, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - CITY OF BEAUMONT - PURCHASING DIVISION A , ` Terry Welch - Senior Buyer B EAU MO N 1T .409-880-3107 TEXAS- terry.welch abeaumonttexas BID TABULATION: Purchase of a Medium Voltage Motor Control Center for the Loeb Water Well Beaumont Texas (RE -BID #2) BID No. TF0419-30 OPENING DATE: Thursday, May 16, 2019 Vendor Summit Electric Supply Gulf Coast Electric Copany Inc. City / State Beaumont, Texas Beaumont, Texas Description Total Bid Price Total Bid Price Total cost to provide a medium voltage motor control center, per $53,333.40 $78,000.00 specifications. EXHIBIT "A" BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Director MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a '10 foot wide Exclusive Sewer Easement. BACKGROUND Beck Custom Homes LLC has agreed to convey a 10 wide exclusive Sewer Easement to the City of Beaumont: The easement is described as being a 0.1224 acre tract out of and Part of Lots 1-7 of the VCCB Subdivision. The sewer easement is for new development of the VCCB Subdivision located at 9325, 9345, 9365, 9385, 9405, 9415 and 9435 Phelan Boulevard. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. RESOLUTION NO. WHEREAS, Beck Custom Homes, LLC has agreed to convey one (1) ten foot (10') wide exclusive sewer easement, said easement being a 0.1224 acre tract out of and part of Lots 1-7 of the VCCB Subdivision, Jefferson County, Texas as described and shown in Exhibit "1," attached hereto, to the City of Beaumont for new development of the VCCB Subdivision located at 9325, 9345, 9365, 9385, 9405, 9415 and 9435 Phelan Boulevard; and, WHEREAS, the City Council has considered the purpose of said conveyance and is of the opinion that the acceptance of said conveyance is necessary and desirable and is in the best interest of the City of Beaumont and that same should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT one (1) ten foot (10') wide exclusive sewer easement conveyed by Beck Custom Homes, LLC, being a 0.1224 acre tract out of and part of Lots 1-7 of the VCCB Subdivision, Jefferson County, Texas as described and shown in Exhibit "1," attached hereto, be and the same is hereby, in all things, accepted for the stated purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - STATE OF TEXAS X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON X SEWER EASEMENT THAT, BECK CUSTOM HOMES LLC, of the County of Jefferson, State of -Texas, hereinafter called "GRANTORS", for and in consideration of the sum of ONE AND NO/100 DOLLAR ($1.00), and other good and valuable consideration to us in hand paid by the CITY -OF BEAUMONT, a municipal corporation domiciled in Jefferson County, Texas, hereinafter called "GRANTEE", the receipt and sufficiency of which consideration is hereby acknowledged, have GRANTED, SOLD and CONVEYED, and by these presents do GRANT, SELL and CONVEY unto the CITY OF BEAUMONT, P. O. Box 3827, Beaumont, Texas 77704, Jefferson County, Texas, its successors and assigns, a Sewer Easement and the right to construct, alter, and maintain said sewer line and appurtenances on the hereinafter described lands which said easement is under, over, in and across that certain tract or parcel of land owned by GRANTORS situated in the County of Jefferson, State of Texas, and being more particularly described in Exhibit "A" and "B" attached and made apart hereof for all purposes. The easement herein granted shall be used for the purpose of placing, constructing, operating, repairing, rebuilding, replacing, relocating, removing sewer lines and appurtenances, and the following rights are also hereby conveyed. It is expressly understood and agreed that the City of Beaumont shall have the right of ingress to and egress from the tract of land hereinbefore described and use of the same for the purposes aforesaid, and giving said City the right and privilege to improve, maintain and operate the same as permitted by law. EXHIBIT "1" Grantor agrees not to place any structures or appurtenances within the Easement Property. Grantee shall not be responsible for the repair and replacement of any paving or other structures within the Easement Property. TO HAVE AND TO HOLD the above described easement and right-of-way unto the said CITY OF BEAUMONT, its successors and assigns forever. EXECUTED this day of , 2019. GRANTOR: BECK CUSTOM HOMES LLC James Beck, Member ACKNOWLEDGMENTS STATE OF TEXAS X COUNTY OF JEFFERSON X BEFORE ME, the undersigned authority, on this day personally appeared James Beck, Member of Beck Custom Homes LLC, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 2019. Notary Public, State of Texas Return To: - City of Beaumont Antoinette Hardy- PW/ENG P.O. Box 3827 Beaumont, Texas 77704 - - EXHIBIT "A" Legal Description: - 10 Feet Wide Exclusive Sewer Easement 0.1224 Acre Tract of Land _ Out of and Part of Lots 1— 7 VCCB Subdivision Clerk's File No. 2018029674, Official Public Records of Real Property A. Savery League, Abstract No. 46 Beaumont, Jefferson County, Texas BEING a 10 feet wide sewer easement containing 0.1224 acres situated in the A. Savery League, Abstract No. 46, Jefferson County, Texas and being out of and part of Lots 1 — 7 of the VCCB Subdivision, a subdivision of the City of Beaumont,. Jefferson County, Texas, according to the plat thereof recorded in Clerk's File No. 2018029674, Official Public Records of Real Property, Jefferson County, Texas, said 0.1224 acre easement being more particularly described as follows: NOTE: All bearings are referenced to the East right-of-way line of Phelan Boulevard as NORTH89°59'14"EAST as recorded in the above referenced Clerk's Fide No. 2018029674, Oficial Public Records of Real Property, Jefferson County, Texas. COMMENCING at a 5/8" iron rod with a cap stamped "M. W. Whiteley & Associates" found for the Northeast corner of the said Lot 1 of VCCB Subdivision, said corner also being in the South right-of-way line of Phelan Boulevard; THENCE SOUTH 00000'56" WEST,. along and with the East line of the said Lot 1, for a distance of 15.00 feet to the POINT OF BEGINNING of the easement herein described; THENCE SOUTH 00000'56" WEST, continuing along and with the East line of the said Lot 1, for a distance of 10.00 feet to a point for corner; THENCE SOUTH 89°59'14" WEST, over and across the said Lots 1-7 ofthe VCCB Subdivision and parallel and 25 feet perpendicular to the South right-of-way line of Phelan Boulevard and the North line of the said Lots 1 — 7, for a distance of 518..09 feet to a point for corner, said corner being the West line of the said Lot 7; THENCE NORTH 00°00'44" EAST, along and with the West line of the said Lot 7, for a distance of 10.00 feet to a point for corner; THENCE NORTH 89059'14" EAST, over and across the said Lots 7, 6, 5 and 4 and parallel and 15 feet perpendicular to the South right-of-way line of Phelan Boulevard, for a distance of 269.83 feet to a point for corner; THENCE NORTH 00°0046" WEST, over and across the said Lot 4, for a distance of 15.00 feet to a point for corner, said corner being in the South right-of-way line of Phelan Boulevard and the North line of the said Lot 4; EXHIBIT "A" MARIC W. WHITELEY & ASSOCIATES, INC THENCE NORTH 89059'14" EAST, along and with the South right-of-way line of Phelan Boulevard and the North line of the said Lot 4, for a distance of 10.00 feet to a point for corner; THENCE SOUTH 00000'46" EAST, over and across the said Lot 4, for a distance of 15.00 feet to a point for corner; THENCE NORTH 89059'14" EAST, over and across the said Lots 4, 3, 2 and 1 and parallel and 15 feet perpendicular to the South right-of-way line of Phelan Boulevard, for a distance of 238.25 feet to the POINT OF BEGINNING and containing 0.1224 Acres, more or less. This survey has been prepared based on the fmal plat of VCCB Subdivision as prepared by Mark W. Whiteley & Associates in May 2018. This survey is being submitted along with a plat (see EXHIBIT "B"). '�TZ N . °'CHOM. S. ROWE�, Thomas S. owe, RPLS No. 57.28 nu°..n...°�.�.A.�..°.° � g.. TBPLS Firm No.: 10106700 WA2019\19-170119-170m&b.docx EXHIBIT "A" Page 2 of 2 MARK I WHITEL EY & ASSOCIATES, TNG FND .1. ROD 1/ALUM. CAP to 0 z u0_ r. w '-�' � � u`�i, ipo QLd o'" co to Mp co co O 3 00 O N b0 G �o N S V V Z J pZ ZO U U �+- U) w It w J LINE BEARING DISTANCE L1 S00'00'56"W < 15.00' L2 S00'00'56."w 10.00" L3 •S89'59'14"W 518.09' L4 NOO'00'44"E 10.00' L5 N89'59'14"E .269:83' L6' NOO'00'46"W 15.00' L7 N89'59'1 4°E 10:00' L8 S0(r00'4.6"E 15:00' L9 N89'59'14"E 238.25" B.S.L. & W (MISSOURI PACIFIC) RAILROAD 0 00' R.O.W.) 1. OTHING IN THIS SURVEY IS INTENDED TO EXPRESS AN OPINION, REGARDING OWNERSHIP' OR TITLE. 2.. THE WORD CERTIFY IS UNDERSTOOD TO BE AN EXPRESSION OF PROFESSIONAL JUDGMENT BY THE SURVEYOR, WHICH IS BASED ON HIS BEST KNOWLEDGE, INFORMATION AND BELIEF, FORMED: IN THE COURSE OF HIS PERFORMING THE SURVEY IN WITH THE STANDARDS OF PRACTICE REQUIRED AND PROMULGATED BY THE TEXAS BOARD OF PROFESSIONAL LAND SURVEYORS AND THE TEXAS SOCIETY OF PROFESSIONAL 'SURVEYORS. AS SUCH, IT CONSTITUTES NEITHER A GUARANTEE NOR- A WARRANTY, EXPRESSED OR IMPLIED. 3. THIS SURVEY WAS PREPARED BASED ON THE FINAL PLAT OF VCCB SUBDMSION AS: PREPARED .BY MARK W. WHITELEY, do ASSOCIATES IN MAY 2018. 9325 9345' 9365 9385 0:1224 ACRE 10' SEWER EASEMENT L9 FND NBF59' 14"E 518.09' (CALL N8T59'14"E 518.091 p.®/'� PHELAN BOULEVARD REFERENCE BEARING PER PLAT FND 5/�8•"D _ I. ROD TO THE OWNERS OF THE PREMISES. SURVEYED AS' OF THE DATE OF THE SURVEY: I. THOMAS 5. RAW DO HEREBY CERTIFY THAT THIS SURVEY. WAS, THIS DAY In MADE ON. THE 'SURFACE OF THE GROUND OF THE PROPERTY LEALLYDESCRIBED HEREON. AND CORRECTLY REPRESENTS THE FACTS FOUND AT THE TIME OF THE SURVEY.. DATE ;-JUNE 10, 2019 \p', solo 9405 1 9415 15' SOUTHWESTERN BELL TELEPHONE COMPANY -EASEMENT. VOL. 2335, PG. 154 DRJC . CITY.OF BEAUMONT Ag-tlo � MARK W. VVI•IITECEY AND ASSOCIATES INCORPORATED CONSULTUN ENMNEERS, `'SURVEYORS, AND PLANNERS T.B.PJ-S. FIRM NO. lolopoo 28"�: a �x«n meoe�omcrmw ��. ,M.4 FND 1. ROD W/ALUM. CAP 9435 0 rn tnin � M!� w kd 3a C, .00 G� zZ SJ ao 41 ..a FND I. ROD W/ALUM. CAP EXHIBIT "1310 REFER TO EXHIBIT "A" FOR: LEGAL DESCRIPTION 10 FEET WIDE. SEWER EASEMENT . 0.1224 ACRE TRACT OF LAND: O.UT OF AND PART OF LOTS 1 7 VCC13 SUBDIVISION CF. NO. 2618029674, OPRJC A. SAVERY LEAGUE ABSTRACT NO. 46 BEAUMONT, JEFFERSON COUNTY, TEXAS 9325-9435 Phelan Blvd 4i. 4i Bupkner r , Children's Village. f West Brook Senior High School fR c < { Baseball Flelds �r A" �' .� Gul6'T�errace t' 1 , S Y t tnt.Goodrich � Fed Cu . t — Garden 4:ilc^ I West Brook High,Schoal - o (' I r _ 4' I .- t� t�;.,, G 1f Tierrace Hlke Q:1 _. end Bike'Tr�ail `I'' Market: - Phelan Bl rd - Phelan Blvd., _ . 9325_Phelan Boulevard. Phelan Bl3V I ' o6 a min drive-home Dollar. General d...-.T......_—,_.._.—._..__..—.._...__.—..,...—...._—..._�._---- Storage Spot _ ss gate McLean St ' _— _13royrn Sk'— _ _. OvarhilPt a._... _ 3 ' N -- Meads Gilfield Sales uW cpherd or: --' Urae.arrn a vin _ Shepherd Dr - - j i+,larthpoint BEAUMONT TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 18, 2019 1:30 PM AGENDA CALL TO ORDER * Invocation Pledge Roll Call ELECTION OF COUNCILMEMBER FOR WARD I Consider approval of an ordinance canvassing the results of the June _8, 2019, City of Beaumont Runoff Election * Administration of the oath of office * Councilmembers/City Manager comments * Recess RECONVENE MEETING * Presentations and Recognitions * Public Comment: Persons may speak on scheduled agenda items 1-5/Consent Agenda * Consent Agenda 1. Consider approving a five year agreement with Express Scripts, Inc. for Pharmacy Benefit Manager services for City employees and retirees . 2. Consider a resolution authorizing the City Manager to award a contract to King Solution Services, LLC, of Houston for the Westgate Drive Area Pipe Bursting Contract Project 3. Consider amending Chapter 24 of the e Code of Ordinances related to building permit fees 4. Consider amending Section 20.03.003 of the Code of Ordinances that would establish. and change the speed limits on the Eastex Freeway frontage roads 5. Consider an.ordinance approving CenterPoint Energy's 2019 GRIP Rates PUBLIC HEARING * Receive comments related to the proposed Disaster Recovery Voluntary Buyout Program Guidelines for'the buyout and elevation of structures that flooded during Hurricane Harvey 6. Consider approving the Guidelines for the buyout and elevation of structures that flooded during Hurricane Harvey COMMENTS * Councilmembers/City Manager comment on various matters Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Minick at 880=3777. June 18, 2019 Consider approval of an ordinance canvassing the results of the June 8, 2019, City of Beaumont Runoff Election BEAUMONT TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tina Broussard, City Clerk, TRMC MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider approval of an ordinance canvassing the results of the June 8, 2019, City of Beaumont Runoff Election. BACKGROUND The Election Code, Section 67.003, states that each :local canvassing authority shall convene to conduct the local canvass at the time set by the canvassing authority's presiding officer not later than the eleventh day after the Election Day, giving consideration for the counting of provisional ballots and ballots voted by mail from outside the United States. Council shall meet and canvass the returns and officially declare the results. Elected officials will be sworn in and take office in their respective positions. The canvassing totals that are reflected in the attached draft ordinance are not the final canvassing numbers, they will be provided by the Jefferson County Early Voting Clerk on or before June 18, 2019. RECOMMENDATION Approval of the ordinance. ORDINANCE NO. AN ORDINANCE CANVASSING THE RETURNS OF THE RUNOFF ELECTION OF THE CITY OF BEAUMONT HELD ON THE 8TH DAY OF JUNE 2019, FOR THE . PURPOSE OF ELECTING A WARD I COUNCILMEMBER; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. WHEREAS, the City Council of the City of Beaumont, in session, duly called a runoff election to be held on the 8th day of June 2019, and the election returns of the votes cast in said election were canvassed for the following officials: Official for the office of Ward I; and, WHEREAS, after duly canvassing said returns, the City Council finds that the votes cast at said runoff for the candidates for said office are as follows: Councilmember Ward I: Votes Percentages Taylor S. Neild, Sr. 1,477 60.48% Virginia H. Jordan 965 39.52% NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. That the results of said runoff election be and the same are hereby declared to have been as set out herein, and the following named person was elected to the respective position subject to the taking of their oath of office as provided by the laws of the State of Texas: For Ward I: Taylor S. Neild Section 2. The City Council of the City of Beaumont further finds that notice of said runoff election was duly and properly given as required by law, and that said runoff election was duly held and returns thereof were duly made by the proper officials of said runoff election and in all things according to law. Section 3. That if any section, subsection, sentence, clause, or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid or adjudged unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable; and the City Council of the City of Beaumont, Texas, declares it would have passed each and every part of the same notwithstanding the omission of any such part thus declared to be invalid or unconstitutional, or whether there by one or more parts. Section 4. That all ordinances or parts of ordinances inconsistent or in conflict herewith are, to the extent of such inconsistency or conflict, hereby repealed. 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June 2019. - Mayor Becky Ames - ATTEST: Tina Broussard, City Clerk 1 June 18, 2019 Consider approving a five year agreement with Express Scripts, Inc. for Pharmacy Benefit Manager services for City employees and retirees BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider approving a five year agreement with. Express Scripts, Inc. for Pharmacy. Benefit Manager services for. City employees and retirees. BACKGROUND In March of this year., City Staff requested bid proposals from pharmacy benefit managers. Eight (8) bid proposals were received and evaluated by an independent team of experts from Team Pharmacy Consulting, Inc, the City's drug consultant, based on the following weighted qualitative criteria: Account Management,. Adherence to 'Request For Proposal, Customer Service, Implementation, Management Reports, Performance Guarantees, Price and 'Value Added Services. After evaluating the bid proposals, City staff, and Team Pharmacy Consulting, concluded that Express. Scripts, Inc.'s pricing generated the largest annual plan savings and scored the highest on the weighted qualitative criteria. As prescription drug costs continue to rise, the City faces a challenge in providing the same level of drug benefits as in previous years. Prescription -drug costs totaled $3.2 million for 2018... The current Pharmacy Benefit Manager contract with Express Scripts ends 12/31/2019. Specialty pharmacy drugs to treat:cancer, autoimmune conditions, and multiple sclerosis patients cost the City approximately $1,392,811 in 2018. Industry projections..corivey that specialty medications will continue to rise. Currently, the City's specialty cost is running a little over 26% of pharmacy costs. Express Scripts. offers a robust Specialty Pharmacy case management program. . The specialty program entitled SafeGuardRX optimizes care and value with programs such as Oncology Care Value, Multiple Sclerosis, Inflammatory Care,. Hepatitis Cure Value and Pulmonary & Asthma.. These. programs provide specialized patient care to optimize health outcomes and reduce unnecessary drug and medical costs. Pharmacy Benefit Manager June 18, 2019 Page 2 Express Scripts scored the highest in the Request for Proposal weighted qualitative evaluations. Bid tabulations for the top three (3) finalists are as follows: VENDOR PROJECTED 2020 ANNUAL TOTAL SCORE PLAN COST** CONTRIBUTION Express Scripts (incumbent) $3,485,301 98 Magellan RX Management $3,496,910 92 BeneCard $3,855,181 81 The drug plan design for City employees will remain the same. Employees will have access to Express Scripts' member website and mobile app which help in seeking out the best drug prices. A consultant for the City of Beaumont will be at the City Council meeting to answer detailed questions related to the Request for Proposal. FUNDING SOURCE Funds are available in the Employee Benefits Fund. RECOMMENDATION Approval of the resolution. 6 RESOLUTION NO. WHEREAS, bids were solicited for a five (5) year agreement, with the option to terminate, with or without cause, after the first year, to provide Pharmacy Benefit Manager (PBM) services for City employees and retirees; and, WHEREAS, Express Scripts, Inc., of St. Louis, Missouri, submitted a bid in the estimated annual plan cost of $3,485,301.00; and, WHEREAS, the City Council is of the opinion that the bid submitted by Express Scripts, Inc., of St. Louis, Missouri, is the lowest responsible bidder providing the best value to the City and should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Express Scripts, Inc., of St. Louis, Missouri, for a five (5) year contract, with the option to terminate with or without cause, after the first year, to provide Pharmacy Benefit Manager (PBM) services for City employees and retirees in the estimated annual plan cost of $3,485,301.00 be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute an agreement with Express Scripts, Inc., of St. Louis, Missouri, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - 2 June 18, 2019 Consider a resolution authorizing the City Manager to award a contract to King Solution Services, LLC, of Houston for the Westgate Drive Area Pipe Bursting Contract Project BEAUMONT TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Director MEETING DATE: June 18, 2019 REQUESTED ACTION: Council -consider a resolution authorizing the City Manager to award a contract to King Solution Services, LLC, of Houston for the Westgate Drive Area Pipe Bursting Contract Project. BACKGROUND The project consists of the. replacement of designated pipe segments by means of pipe bursting and point repair, -and replacing manholes in the Westgate Drive area, east of Dowlen Road. On June 6, 2019, six (6) bids were received for furnishing all labor, materials, equipment, and supplies for the project. The bid totals are indicated in the table below: Based on a review of the six (6) bids submitted, one (1) bid, T Construction, LLC, was incomplete as per the guidelines outlined in the contract documents. The Water Utilities Administration recommends awarding the project to the lowest bidder, King Solution Services, LLC, in the amount of $1,592,994.00. A total of 365 calendar days are allocated for the completion of this proj ect. FUNDING SOURCE Capital Program. RECOMMENDATION Approval of the resolution. BID TABULATION Westgate Drive Area Pipe Bursting Contract WU0119-12' BID OPENING DATE 06/06/19 The Bid Proposals submitted have been reviewed and to the best of my knowledge this Is a accurate tabulation or the bids received. annew► C. cam ob%i �a By. Avert Chan, Err, Water Utilities Designer III Date: 06/11/19 ITEM NO. QUANTITY UNIT DESCRIPTION Bid Schedule (Engineers Estimate) King Solution Services, LLC Mario JaimesGreg Houston, TX 77039 PM Construction & Rehab, LLC dba IPR South Central Baggett Pasadena, TX 77506. T Construction, LLC Juan Ramon Torres Houston, TX 77015 BASE 131D ITEMS UNIT PRICE TOTAL UNIT PRICE -TOTAL " UNIT PRICE TOTAL UNIT PRICE TOTAL 1 - 1 LS Mobilization Not to exceed 3% of Total Base Unit Prices 560 000.00 S 60 000.00 `S 45 000.00 5 45 000.00 S 20 000.00 5 20 000.00 5. 52 000.00 5 .52 000.00 2 1 EACH 8" PointRepair,air ir toile' Depth S3,500.00 $ 3,500.00 S 2000.00 S "2 000.00 S 5,000.00 $ 5,000.00 S 500.00 $ 500.00 ' 3 200 BY Full Depth Repair of Side Walk 5 S140.00 $ 28 000.00 S 35.00 S 7,000.00 S - 65.00 S 13 000.00 S 60.00 S 12 000.00 4 200 BY Full Depth Repair of Driveway 6 S180.00 S - 36 000.00 S 35.00 $ 7,000.00 $ -75.00 $ 15 000.00. $ 70.00 S 14 000.00 5 200 BY Flexible Pavement Structure Repair 4 564.00 $ - 12 800.00 S 68.00 S 13 600.00 $ 75.00 S 15 000.00 S. 75.00 S" 15 000.00 6 1500 LF. Trench Excavation Protection 57.00. $ 10 500.00 S 1.00 $ 1,500.00 S 1.00 S 1,500.00 $ 1.25 S 1,875.00 7 20 EACH Barricades Signs and Traffic Handling 5200.00 S 4.000.00 S 650.00 $ 13 000.00 S 425.00 S " 8.500.00 S 500.00 'S 10 000.00 8 14 Remove and Replace or Install New Std. Manhole, Up to 8' Depth, with All Joints & Connections EACH Pre -Cast Concrete .$5,000.00 S 70,000.00 $ 4,500.00 $ -63,000.00 $ 2,875.00. $ 40,250.00 S" 4,300.00 S 60,200.00 9 65 EACH Remove and Replace or Install New Std: Fiberglass Manhole, Up to 8' Depth, with All Joints & Connections $4,500.00 S " 292,500.00 $ 3,700.00 $ 240,500.00 $ 2,950.00 S 191,750.00 5 4,925.00 S 320,125.00 13 Install Shallow Manhole, Less than 5' Depth, With All Joints & Connections (Pre -Cast Concreete EACH orFbe lass $3,700.00 $ 48,100.00 $ 3,500.00 $ .45,500.00 $ "2,250.00 $ 29,250.00 $" 3,980.00 $ 51,740.00 11 70 Extra10 iber De stn for New or Replacement Std. Manhole, Over 8' Depth (Pre -Cast Concrete or - y F Fiberglass $250.00 $ 17,500.00 $ 180.00 $ 12,600.00 $. 150.00 $ 10,500.00 $ 310.00 $ 21,700.00 12 980 Reconnecte Service Connection by Excavation Including Cleanouts to Liner, Complete, All Saes EACH and Depth - - $600.00 $ " 228,000.00 $ 550.00 $ 209,000.00 $ 350.00 $ 133,000,00 $ 570.00 $ 216,600.00 13 15 EACH Obstruction Removal by Excavation Ali Saes and Depths $700.00 S 10 500.00 $ 800.00 S' 12,0M.00 S 500.00- S 7 500.00 S 200.00 S 3.000.00 - 14 _ 2000 L.F. Clean and Televise Sewer All Saes and Depths as Directed by the Owners $3.50 $ 7 000.00 S 3.00 $ 8,000.00 5 2.75 S 5,500.00 S 5.25 S 10 500.00 15 500 LF. Chain Link and Wooden Fences and Gates Per Engineers Approval $25.00 S 12 500.00 $ 8.00 S 4,000.00 S 18.00 $ 9 000.00 $ 7.00 $ - 3,600.00 16 25564 LF. Pipe Bursting6"4e" Sewer to 8.626" OD S45.00 S 1,150,380.00 $ 31.00 $ .792 484.00' S 39.00 S 996 996.00 S 33.00 S 843 612.00 17 .. 418 LF.. PI a Burstin 8"-10' Sewer to 10.75' OD $50.00.. S 20 900.00 S 45.00 $ 18 810.00 S 42.00 S 17 555.00 5 " 37.00 S 15 466.00 BASE BID QUANTITIES TOTAL 5 2,01 180:00 S 1,492,994.00 S 1,519,302 00 5. 11651,818.00 ALLOWANCE " ITEM N0. I QUANTITY' UNIT DESCRIPTION UNITPRICE TOTAL UNIT PRICE TOTAL UNR PRICE TOTAL UNIT PRICE �. TOTAL 1 1 ALLOW Unforseen Work as Directed b the Owner $ 100 ODD.00 $ 100 OOD.00 $ 100 000:00 5 100 000.00: S 100 000.00 $ -100 000.00 $ S ALLOWANCETOTAL TOTAL BASE ITEMS + ALLOWANCE I $ ' 2,112,180.00 1 $ 1,592,994.00 I S . 1,619,30200 $ _ 1,651,818.00 BID -TABULATION Westgate Drive Area Pipe Bursting Contract WU011942 BID OPENING DATE: 06/06/19 The Bid Proposals submitted have been reviewed and to the best of my knowledge this is an accurate tabulation of the bids received. By: Avert Chan, EIT, Water Utilities Designer III Date: 06/11/19 Bid Schedule (Engineeils Texas Pride UUlites, LLC Vortex Turnkey Solutions; LLC ALLCO, LLC ITEM NO. QUANTITY UNIT DESCRIPTION Estimate) Luis Guerra Brent Keller T.W. Harrison Houston, TX 77037 Houston, TX 77060 Beaumont, TX 77704 BASE BID ITEMS= UNIT PRICE I TOTAL _ UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 1 1 LS Mobilization Not to exceed 3% of Total Base Unit Prices $80 000.00 S .60 000.00 S 40.000.00; - S 40 000.00 'S 50 000.00 S 50 000.00 66 000.00 S • 68 000.00 2 1 EACH 8" Point eir, ir to - S3 500.00 S 3 500.00 S 2 800.00 S • 2.800.00 S 3 000.00 S 3 000.00 S 1 800.00 S 1 800.00 3 200 Depth Side SY Full De th Re aira(Side Walk 5" Walk $140.00 $ 26 000.00 S 70.00 S 14,00D.00 S - 80.00 S 18 000.00 S 20.00 S 4,000.00 4 200 SY Full Depth Repair of Driveway 6 5180.00 $ 36 000.00 $ 85.00 $ 17 000.00 S 80.00 S 18 000.00. S 120.00 S 24 000.00 5 200 SY Flexible Pavement Structure Repair 4" 564.00 S 12 800.00 S 60.00 S 12 000.00 S 75.00 S 15 000.00 S 30.00 S 6,000.00 6 1500 LF. Trench Excavation Protection . - $7.00 S 10 500.00 $ 1.00 $ 1,500.00 S 5.00 S 7,500.00 S 1.00 S 1,500.00 7 20 EACH Barricades, Signs and Traffic Handling $200.00 $ 4,000.03 $ 2,000.00 $ 40 000.00 8 2 000.00 S 40 000.00 S 350.00 S 7,000.00 B EACH Remove andReplace)or Install New Std. Manhole, Up to B' Depth, with All Joints &Connections '3,450.00 14 Pre -Cast Concretretee $5,000,00 S 70,000.00 S 3,800.00 $ 53,200.00 $ S. 48;300.00 Sr 3,892.00 $ 54,488.00 9 e and Replace or Install New Std: Fiberglass Manhole, Up to 8' Depth, with All Joints 8 EACH RemovConnee 65 S4,600.00 S 292;500.00 S 4,260.00 $ 273,000.00 $ 3,600.00. S 234,000.00 S 4,403.00 $ 286,195.00 10 EACH Install ShallowlasManhole, Less than 5' Depth, With All Joints & Connections (Pre -Cast Conweete 13 orFber s 03,700.00 $ 48,100.00 g 3,300.00 5 42,900.00. g 2,800.00 $ 36,400.00 5 3,337.00 $ 43,381.00 11 Extra Depth for New or Replacement Std. Manhole, Over 8' Depth (Pre -Cast Concrete or V.F. - 70 Fiberglass $250.00 $ 17,500.00 $ 300.00 $ 21,000.00 $ 300.00 S 21,000.00 $ 180.00 $ 12,600.00 12 Reconnect Service Connection by Excavation Including Cleanouts to Liner, Complete, All Sizes EACH 380 and De the $600.00 $ 228,000.00 $ 450,00 $ 171,000.00 g 485.00 5 176,700.00 5 450.00 S 171,000.00 13 15 - EACH Obstruction Removal by Excavation All Sizes and Depths S700.00 - S 10,500-00 S . 1 500.00 S 22 500.00 S 400.00 S t3 000.00 5 1350.00 S 20 250.00 14 2000 LF. Clean and Televise Sewer All Sizes and Depths as Directed b the Owners S 7 OOO.DD S 3.00 S 8,000.00 S 6.00-S 12 000.00 S S - 9,500.00 15 500 LF. Chain Link and Wooden Fences and Gates Per En ineees Approval AiNS $ 12 500.00- S 12,00 S 6000.00 $ 25.00 S 12 500.00 .4.75 S 30.00 S 15 000.00 16 25564 LF. Pi a Burstin 6"-8". Sewer to 8.625" OD $ 1,150,380.00 S 34.)0 S 869 178.00 S 42.00 $ 1,073,888.00 S 60.90 S 1,556,847.60 17 418 LF: Pipe Burson 6"-10' Sewer l0 10.75" OD 20 900.00 1 5 36.00S 15 049.00 $ 75.00 $- 31 350.00 $ 66.83 S 27 934.94 BASE BID QUANTITIES TOTAL S 201218000 S 1 607 124.00 $ 1,799,438.00 S'. 2,309,496.54 ALLOWANCE ITEM NO. QUANTITY UNIT - DESCRIPTION UNIT PRICE TOTAL UNIT PRICE TOTAL . UNIT PRICE .. TOTAL UNIT PRICE TOTAL 1 1 ALLOW Unforseen Work as Directed b the Owner $ 100 000.00 S 100 000.00. S 100 000.00 5 100 000.00. S 100 000.00 $ .100 000.00 S 100 000.00 S 100 000.00 ALLOWANCETOTAL TOTAL BASE ITEMS + ALLOWANCE I S 2,112,180.00 1 $ 1,707,124.00 $ 1,899,438.00 S '2,409,496.54 RESOLUTION NO. WHEREAS, the City of Beaumont solicited bids for furnishing all labor, materials, equipment, and supplies for the Westgate Drive Area Pipe Bursting Contract Project; and, WHEREAS, King Solution Services, LLC, of Houston, Texas, submitted a complete bid meeting specifications in the amount of $1,592,994.00; and, WHEREAS, the City Council is of the opinion that the bid submitted by King Solutions Services, LLC, of Houston, Texas, is the lowest responsible bidder providing the best value to the City and should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Council hereby approves the award of a contract to King Solution Services, LLC, of Houston, Texas, in the amount of $1,592,994.00, for the Westgate Drive Area Pipe Bursting Contract Project; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with King Solution Sevices, LLC, of Houston, Texas, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - 3 June 18, 2019 Consider amending Chapter 24 of the Code of Ordinances related to building permit fees BEAUMONT TO: City Council FROM:- Kyle Hayes, City Manager PREPARED BY: Chris Boone, Planning & Community Development Director MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider. amending Chapter 24 of the Code of Ordinances related to building permit fees. BACKGROUND As the result of the recent enactment of H.B. 852,. the State now prohibits cities from calculating building fees based on the value of construction or improvements for residential uses. In order to, -comply with this mandate, attached are proposed amendments to the way in which some fees are calculated. The proposed changes to the calculation method would not significantly change. the amount of fees charged for work done. FUNDING' SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. a sec. 24.01.001 Contractor'.s bond requirements (a) No person or corporation acting as a contractor may perform construction work without first having obtained a bond from the city. Nothing in this code shall be construed to require a person to obtain a bond or license to do any work himself on his own residence which is owned and occupied as his homestead. This individual shall be present for all inspections by the city. (b) The contractors bond requirements shall be as follows: (1) The bond shall cover all erecting, construction, enlarging, repairing, moving, improving, converting or demolishing of building and structures for the period of one (1) year from the date of approval and filing thereof and shall cover all work performed under said bond for a period of not less than two (2) years from the date of final building inspection. (2) Building contractor's bond: $25,000.00. (3) Roofing contractor's bond: $15,000.00. (4) Driveway. and sidewalk contractor's bond: $5,000.00. (Ordinance 97-5, sec. 1, adopted 2/4/97; Ordinance 97-66, sec. 2, adopted 12/16/97; 1978 Code, sec. 6-4; Ordinance 07-017, sec. 2, adopted 2/20/07; Ordinance 10-057, sec. 1, adopted 8/3/10) L -j Sec. 24.01.002 Fee schedule Fee Description Fee Administrative Fees Usage fee $2.00 Minimum permit fee $35.00 Certificate of occupancy $75.00 Temporary certificate of occupancy $45.00 Reinspection fee $25.00 Overtime inspections (minimum 4 hrs at $35.00 per hour) $140.00 New address or address changes Single address $35.00 Two or more per address $10.00 Building permit fee - commercial Building permit fee First $1,000.00 $35.00 Each additional $1,000.00 up to $50,000.00 $6.25 Building permit fee First $50,000.00 $293.00 Each additional $1,000.00 up to $100,000.00 $5.20 Building permit fee First $100,000.00 $500.00 Each additional $1,000.00 up to $500,000.00 $4.15 Building permit fee First $500,000.00 $2,000.00 Each additional $1,000.00 $3.10 Building permit fee - Residential new construction Q—� — H. $0.35/ a. Building Permit Fee - Residential additions and remodeling construction $35.00 sq ft. $0.18/ sa.ft. Building_ permit fee — Residential — Doors and Windows $1.50 each Building permit fee — Sheetrock $1.00/ sheet 32s:ft. Building_ permit fee — Residential - Siding $0.50 / lineal foot Building_ permit fee -.Residential — Roofing $0.05 / sq.ft. Moving permit fee $200.00 Demolition permit fee - Residential demolition $75.00 Demolition permit Fee - Commercial demolition $150.00 Plan Review Fees Commercial plan review fees for permits $25,000.00 and over 650A of permit fee Revision - Commercial plans $50.00 Parking Lots/Paving First 1,000 sq. ft. $40.00 Each additional sq. ft. $2.00 Driveways Residential $35.00 Commercial $75.00 Electrical Permits Pre -final service $35:00 Reconnection $35.00 Additional meters $35.00 Move meter $35.00 Service for meter $35.00 Temporary pole $35.00 Increase service $35.00 Permanent pole $35.00 Motors Up to 5FT $5.20 Over 5HP $6.75 A/C outlet $2.50 Ceiling fans $1.60 Bells, buzzers and chimes $2.10 Dishwasher $2.10 Disposal $2.10. Dryer $2.50 Elevators $35.00 Fixtures $0.50 Floodlight poles $15.00 Furnaces/heater $7.50 Gasoline pumps $35.00 Power panels not at service $8.50 Outlets/switches/receptacles $0.50 Range $2.50 Rectifiers/transformer $5.70 Reground $15.00 Water heater $2.50 Welding machine $2.50 Yard lamps $2.50 Signs/electrical $35.00 Swimming pool Aboveground $16.50 In-ground - Commercial $75.00 $400.00 In-Ground - Residential $200.00 Plumbing Fees Air conditioning drain $3.00 Dental .chair $7.50 Dishwasher $3.75 Drinking fountain $3.75 Floor drain $3.00 Garbage disposal $3.75 Grease trap/wash rack $50.00 Laundry tray $3.00 Lavatories $3.00 Service sink $3.00 Sewer line First line $35.00 Each additional line $10.00 Showers $3.00 Single sink/restaurant $5.75 (Ordinance 10-057, sec. 31, adopted 8/3/10; Ordinance 17-008, sec. 1, adopted 2/7/17) Three compartment sink $8.40 Toilet $3.00 Tub $3.00 Two compartment sink $5.40 Urinal $8.00 Washing machine $3.00 Water heater $25.00 Water line First line $35.00 Each additional line $10.00 Gas Permits Gas permits $35.00 Each additional opening over four (4) $2.10 Yearly gas inspection - Commercial $50.00 Mechanical Permit - Commercial First $1,000 $35.00 Each additional $1,000.00 $3.20 Mechanical Permit — Residential First ton $35 Each additional ton $5. (Ordinance 10-057, sec. 31, adopted 8/3/10; Ordinance 17-008, sec. 1, adopted 2/7/17) ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 24, ARTICLE 24.01, SECTION 24.01.002 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS TO MAKE CHANGES RELATING TO BUILDING PERMIT FEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 24, Article 24.01, Section 24.01.002 of the Code of Ordinances of the City of Beaumont, be and the same is hereby amended to read as follows: Sec. 24.01.002 Fee schedule Fee Description Fee Administrative Fees Usage fee $2.00 Minimum permit fee $35.00 Certificate of occupancy $75.00 Temporary certificate of occupancy $45.00 Reinspection fee $25.00 Overtime inspections (minimum 4 hrs at $35.00 per hour) $140.00 New address or address changes Single address $35.00 Two or more per address $10.00 Building permit fee - commercial Building permit fee First $1,000.00 $35.00 Each additional $1,000.00 up to $50,000.00 $6.25 Building permit fee First $50,000.00 $293.00 Each additional $1,000.00 up to $100,000.00 $5.20 Building permit fee First $100,000.00 $500.00 Each additional $1,000.00 up to $500,000.00 $4.15 Building permit fee First $500,000.00 $2,000.00 Each additional $1,000.00 $3.10 Building permit fee - Residential new construction $0.35/ sq.ft. Building Permit Fee - Residential additions and remodeling construction $0.18/ sq.ft. Building permit fee — Residential — Doors and Windows $1.50 each Building permit fee — Sheetrock $1.00/ sheet (32sq.ft.) Building permit fee — Residential - Siding $0.50 / lineal foot Building permit fee- Residential — Roofing $0.05 / sq.ft. Moving permit fee $200.00 Demolition permit fee - Residential demolition $75.00 Demolition permit Fee - Commercial demolition $150.00 Plan Review Fees Commercial plan review fees for permits $25,000.00 and over 65% of permit fee Revision - Commercial plans $50.00 Parking Lots/Paving First 1,000 sq. ft. $40.00 Each additional sq. ft. $2.00 Driveways Residential $35.00 Commercial $75.00 Electrical Permits Pre -final service $35.00 Reconnection $35.00 Additional meters $35.00 Move meter $35.00 Service for meter $35.00 Temporary pole $35.00 Increase service $35.00 Permanent pole $35.00 Motors Up to 5HP $5.20 Over 5HP $6.75 A/C outlet $2.50 Ceiling fans $1.60 Bells, buzzers and chimes $2.10 Dishwasher $2.10, Disposal $2.10 Dryer $2.50 Elevators $35.00 Fixtures $0.50 Floodlight poles $15.00 Furnaces/heater $7.50 Gasoline pumps $35.00 Power panels not at service $8.50 Outlets/switches/receptacles $0.50 Range $2.50 Rectifiers/transformer $5.70 Reground $15.00 Water heater $2.50 Welding machine $2.50 Yard lamps $2.50 \ Signs/electrical $35.00 Swimming pool Aboveground $16.50 In -ground - Commercial $400.00 In -Ground - Residential $200.00 Plumbing Fees Air conditioning drain $3.00 Dental chair $7.50 Dishwasher $3.75 Drinking fountain $3.75 Floor drain $3.00 Garbage disposal $3.75 Grease trap/wash rack $50.00 Laundry tray $3.00 Lavatories $3.00 Service sink $3.00 Sewer line First line $35.00 Each additional line $10.00 Showers $3.00 Single sink/restaurant $5.75 Three compartment sink $8.40 Toilet $3.00 Tub $3.00 Two compartment sink $5.40 Urinal $8.00 Washing machine $3.00 Water heater $25.00 Water line First line $35.00 Each additional line $10.00 Gas Permits Section 2. That if any section, subsection, sentence,, clause of phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 3. i That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 4. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1.01.009 of the Code or Ordinance of Beaumont, Texas. Gas permits $35.00 Each additional opening over four (4) $2.10 Yearly gas inspection - Commercial $50.00 Mechanical Permit - Commercial First $1,000 $35.00 Each additional $1,000.00 $3.20 Mechanical Permit — Residential First ton $35 Each additional ton $5 Section 2. That if any section, subsection, sentence,, clause of phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 3. i That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 4. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1.01.009 of the Code or Ordinance of Beaumont, Texas. 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - PA9 June 18, 2019 Consider amending Section 20.03.003 of the Code of Ordinances that would establish and change the speed limits on the Eastex Freeway frontage roads BEAUMONT TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, Public Works Director MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider amending Section 20.03.003 of the Code of Ordinances that would establish and change the speed limits on the Eastex Freeway frontage roads. BACKGROUND TxDOT recently completed construction on the Eastex Freeway frontage roads between. Tram Road and the Hardin County Line. Improvements were made to the existing frontage roads as well as extending them to tie-in to new bridges spanning Pine Island Bayou. In order to establish a speed zone for this area, TxDOT performed a traffic study which resulted in 85th percentile speeds of 56 and 59 mph. The study is utilized by transportation engineers as a guide to set speed limits since it is a good representation of what the majority of motorists feel comfortable driving. The proposed speed limit for the new bridges is 55 mph, and is also recommended that the existing speed limit north and south of Tram Road be raised to 55 mph to provide continuity along this section of road. It is recommended that the speed limit and speed. zone boundary change for the Eastex Freeway frontage roads by amending the speed limits under the schedule of Chapter 20 Section 20.03.003 to read as follows: Speed In Miles Street Limits of Zone Direction of Per Hour Travel Max. Min. Eastex (a) From the Hardin County. line to the South 55 Freeway north bank of the L.N.V.A. Canal (U.S. 69, 96, (b) From the south bank of the L.N.V.A. South 45 287) west Canal to a point 215 feet north of the frontage road centerline of Blackmon Lane. (c) From a point 215 feet north of the South 35 centerline of Blackmon Lane to a point 750 feet south of the centerline of Kenwood Drive. Street Limits of Zone Eastex (a) From a point 150 feet west of the Freeway centerline of Eleventh Street to a point (U.S., 69, 96, 235 feet south of the centerline of 287) east Delaware. frontage road (b) From a point 235 feet south of the centerline of Delaware to the centerline of Blackmon Lane (dead end.) (c) From a point 100 feet north of the centerline of Delaware to the south bank of the L.N.V.A. Canal. (d) From the north bank of the L.N.V.A. Canal to the Hardin County line. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the ordinance. Sneed In Miles Direction of per Hour Travel Max. Min. North 45 North 35 North 45 North 55 0 Texas Departure t of Transportation 8350 EASTEX FREEWAY i BEAUMONT, TEXAS 77708 (409) 892-73111 WWW.TXDOT.GOV Control:. 65-7 Highway: US 69 Frontage Roads County: Jefferson City: Beaumont The Honorable Becky Ames Mayor, City of Beaumont - P.O. Box 3827 Beaumont, Texas 77704-3827 Dear Mayor Ames, May 2, 2019 TxDOT has recently completed the construction of frontage roads and bridges to connect between Tram Rd and Hardin County. A speed zone needed.to be established for this location. The. present speed zone at Tram, Rd is 45 mph with north and south being 55 mph. Our speed study determined that the area from Tram Rd to the Hardin County line should be 55 mph. We have prepared and attached for your review a new proposed Speed Zone Strip. Map to increase the speed zone on US 69 (Eastex Freeway frontage roads), in the city of Beaumont, in Jefferson County. Limits are MP 0.775 south of Tram Road to the -north end of Jefferson/Hardin County Line at MP 0.000. Increasing the speed zone from 45 mph to 55 mph. Attached are two (2) copies of the -new Speed Zone Strip Map. - Please have the City of Beaumpn't,.execute an ordinance making the speed zone enforceable. This ordinance must include fhe ss" irvey date (March 27, 2019) from the map. The survey date is the only means of identifying:this Speed -Zone Strip Map from maps that may be made in the future. Please send the originab rdinance, affixed with the City Secretary's seal-, back to ,us for our further handling. =. Your assistance in this matter is' -appreciated. If you have any questions, please contact me at (409) 898-5768. Sincerely,. Ted Clay, P.E. Director of Transportation Operations OUR VALUES: People • Accountability • Trust • Honesty OUR MISSION: Through collaboration and leadership, we deliver a safe, reliable, and integrated transportation system that enables the movement of people and goods. An Equal Opportunity Employer Proposed Eastex Freeway Speed Zone Amendment Section 20.03.003 BEAUMONT Public Works Proposed Eastex Freeway Speed Zone Amendment Section 20.03.003 Current Ordinance Eastex Freeway (a) From.the north city limits (centerline of Pine Island Bayou) to a point 1,283 South 45 (U.S. 69, 96, 287) feet south of the centerline of Tram Road. west frontage road (b) From a point 1,283 feet south of the centerline of Tram Road to the north South 55 bank of the L.N.V.A. Canal. (c) From.the south bank of the L.N.V.A. Canal to a point 215 feet north of the South 45 centerline of Blackmon Lane. (d) From a point 215 feet north of the centerline of Blackmon Lane to a point South 35 750 feet south of the centerline of Kenwood Drive. Eastex Freeway (a) From a point 150 feet west of the centerline of Eleventh Street to a point 235 North 45 (U.S. 69, 96, 287) feet south of the centerline of Delaware. east frointage road (b) From a point 235 feet south of the centerline of Delaware to the centerline of North 35 Blackmon Lane (dead end). (c) From a point 100 feet north of the centerline of Delaware to the south bank North 45 of the L.N.V.A. Canal. (d) From the north bank of L.N.V.A. Canal to a point 783 feet south of the North 55 centerline of Tram Road. (e) From a point 783 feet south of the centerline of Tram Road to the south bank North 45 of the Pine Island Bayou. Proposed Amendment Eastex Freeway . (a) From the Hardin County line to the north bank of the L.N. VA. Canal. South 55 (U.S. 69, 96, 28,7) (b) From the south bank of the L.N.V.A. Canal to a point 215 feet north of the, west frontage road centerline of Blackmon Lane. South 45 (c) From a point 215 feet north of the centerline of Blackmon Lane to a point 750 feet south of the centerline of Kenwood Drive. South 35 Eastex Freeway (a) From a point 150 feet west of the centerline of Eleventh Street to a point 235 North 45 (U.S. 69, 96, 287) feet south of the centerline of Delaware. east frontage road (b) From a point 235 feet south of the centerline of Delaware to the centerline of North 35 Blackmon Lane (dead end). (c) From a point 100 feet north of the centerline of Delaware to the south bank North 45 of the L.N.V.A. Canal. (d) Fronz the north bank of L.N. Y.A. Canal to the Hardin County line. North 55 BEAUMONT Public Works ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 20, ARTICLE 20.03, SECTION 20.03.003 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS BY CHANGING AND AMENDING SPEED LIMITS AND SPEED ZONE BOUNDARIES TO THE SCHEDULE FOR EASTEX FREEWAY (U.S. 69, 96, 287) WEST FRONTAGE ROAD AND EASTEX FREEWAY (U.S. 69, 96, 287) EAST FRONTAGE ROAD; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 20, Article 20.03, Section 20.03.003 of the Code of Ordinances of the City of Beaumont, be and the same is hereby amended by changing and adding speed limits and speed zone boundaries to the Schedule Eastex Freeway (U.S. 69, 96, 287) West Frontage Road and Eastex Freeway (U.S. 69, 96, 287) East Frontage Road to read as follows: Direction Speed In Miles Street Limits of Zone of Per Hour Travel Max. Min. Eastex (a) From the Hardin County line to the South 55 Freeway north bank of the L.N.V.A. Canal. (U.S. 69, (b) From the south bank of the ,L.N.V.A. South 45 96,287) Canal to a point 215 feet north of west the centerline of Blackmon Lane. frontage road (c) From a point 215 feet north of the South 35 centerline of Blackmon Lane to a point 750 feet south of the centerline of Kenwood Drive. Street Limits of Zone Direction Speed, In Miles of Per Hour Travel Max. Min. Eastex (a) From a point 150 feet west of the North 45 Freeway centerline of Eleventh Street to a (U.S. 69, point 235 feet south of the centerline 96,287) of Delaware. east frontage (b) From a point 235 feet south of the North 35 road centerline of Delaware to the centerline of Blackmon Lane (dead end.) North 45 (c) From a point, 100 feet north of the centerline of Delaware to the south bank of the L.N.V.A. Canal. North 55 (d) From the north bank of the L.N.V.A. Canal to the Hardin County line. Section 2. That if any section, subsection, sentence, clause of phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for -any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 3. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 4. That any person who violates any provision of this ordinance shall, uponconviction, be, punished, as provided in Section 1.01.009 of the Code of Ordinances of Beaumont, Texas. 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - 5 June 18, 2019 Consider an ordinance approving CenterPoint Energy's 2019 GRIP Rates BEAUMONT TO: City Council FROM; Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: June 18, 2019 REQUESTED ACTION: Council consider an ordinance approving CenterPoint Energy's 2019 GRIP Rates. BACKGROUND On March 28, 2019, CenterPoint Energy ("CenterPoint") filed with the City of Beaumont an annual Gas Reliability Infrastructure Program (GRIP) interim rate adjustment notice to increase gas rates in the Beaumont/East Texas Division Service Area. The City Council, on April 9, 2019, suspended the effective date of the requested increase until July 10, 2019 in order to have the request reviewed for compliance with the Gas Utility Regulatory Act. This review is generally a'ministerial process limited to insuring that the request complies with the GRIP statute: The review has determined that the company's filing is in compliance with the statute and can be approved. FUNDING SOURCE All reasonable expenses associated with rate cases are reimbursable by the company. RECOMMENDATION Approval of ordinance. ORDINANCE NO. ORDINANCE OF THE CITY OF BEAUMONT, TEXAS APPROVING THE RATES PROPOSED BY CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS ("CENTERPOINT" OR "COMPANY") COMPANY'S GAS RELIABILITY INFRASTRUCTURE PROGRAM ("GRIP") FILING MADE WITH THE CITY ON MARCH 28, 2019; 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 March 28, 2019, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed an Annual GRIP adjustment for the Beaumont/East Texas Division Service Area with the City ` of Beaumont ("City") to increase gas rates in the Beaumont/East Texas Division Service Area pursuant to Gas Utility Regulatory Act ("GURA"), Tex. Util. Code § 104.301; and, WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to GURA §103.001; and WHEREAS, GURA § 104.301 requires a streamlined process for the recovery of the costs of incremental investment by a gas utility; and, WHEREAS, the Company proposed an effective date,of May 27, 2019, for the rate increase; and, WHEREAS, the City suspended the proposed May 27, 2019 effective date until July 10, 2019; and, WHEREAS, the proposed interim rate adjustment would increase residential rates by $1.56 per customer per month; and, WHEREAS, the City's consultant has reviewed the GRIP filing and has concluded that the proposed GRIP rates are correctly calculated; and, WHEREAS, the reasonableness of the Company's investment will be reviewed in CenterPoint's subsequent base rate case where all costs included in CenterPoint's GRIP_ filing will be subject to refund; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. The statement and findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. The Company's proposed GRIP rate increase is approved effective July 10, 2019. Section 3. The meeting at which the 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 18th day of June, 2019. - Mayor Becky Ames - ATTEST: PUBLIC HEARING Receive comments related to the proposed Disaster Recovery Voluntary Buyout Program Guidelines for the buyout and elevation of structures that flooded during Hurricane Harvey T June 18, 2019 Consider approving the Guidelines for the buyout and elevation of structures that flooded during Hurricane Harvey BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager ��ss•3. PREPARED BY: Chris Boone, Planning & Community Development Director MEETING DATE: June 18, 2019 REQUESTED ACTION: Council conduct a Public Hearing to receive comments on the proposed Disaster Recovery Voluntary Buyout Program Guidelines for the buyout and elevation of structures that flooded during Hurricane Harvey and consider a resolution approving the Guidelines. BACKGROUND As a result of flooding caused by Hurricane Harvey, many homes within the 100 -year floodplain received flood damage. During a Council Work Session held March 27, 2018, guidance was given to seek funding opportunities for the buyout or elevation of homes located within the 100 - year floodplain. Since that time, staff has conducted extensive outreach to. those affected within the floodplain. This effort has included direct mail, phone calls, placing "door -hangers," press releases and public outreach events in an effort to maximize participation. 'As a result, twenty- seven (27) applications have been received. In addition, The Texas General Land Office has dedicated HUD funding to the City of Beaumont for these buyouts and elevations covering the costs for this program. One requirement of the program is to take public comment on and adopt formal guidelines for the implementation of the grant. Enclosed are the proposed guidelines, developed. in conjunction with the Ardurra Consulting Group, one of the City's disaster recovery consultants. FUNDING SOURCE Funds would come from The Department of Housing and Urban Development's CDBG-Disaster Recovery funds through the Texas General Land Office. RECOMMENDATION Conduct the Public Hearing and approval of the resolution. 90 23rd Street 3855 Bryan Drive 11710 Carpenter Road 6010 Chandler Drive 5725 Crestland Loop 5775 Crestland Loop 330 E. Delaware 340 E. Delaware 770 E. Gill 305 Fletcher Street 460 Fletcher Street 545 Fletcher Street 9135 Gross 345 Lethia 415 Lethia 11955 Loop Road 285 Manning 320 Manning 355 Manning 360/370 Manning 10575 Martha Lane 8375 Oak Ridge 11120 Pine Cove 755 Pollard 765 Pollard 7720 Stonetown 11485 Old Voth Road RESOLUTION. NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby accepts the Disaster Recovery Voluntary Buyout Program Guidelines for the buyout and elevation of structures that flooded during Hurricane/TS Harvey. The Guidelines are substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of June, 2019. - Mayor Becky Ames - BEAUMONT TEXAS Disaster :Recovery Voluntary Buyout Program Guidelines For 2017 Community Development Block Grant- Disaster Recovery Disaster Recovery Voluntary Buyout Prograin Guidelines Table of Contents Introduction..................................................................................................................................... 4 Maximum Assistance Amount.................................................................................................... 4 Definitions....................................................................................................................................... 5 NationalObjective........................................................................................................................... 9 Low- and Moderate-Income.....................................................................................................10 UrgentNeed ................................................ Program. Administration...............................................................:................................................10 Application Processing Overview..................................:::..:,.:................................................10 URARequirements........................................................ : 'r% ..: ...................:......................11 PropertyRequirements .................................... ':: `:::................ ` ....................................11 Structure Type. p � 12 PropertyType .............................................. 13 FloodClaims ............................................... ` �..................: 13 r................... Environmental Review........................................................ ...:....................13 ° '.> : Appraisal ...................................... ...... .... 13 Deed Restriction or Restrictive Covenant ..:......., .............:.......:.....................................13. Owner Requirements r . .................: ..... ...... ~ 14 Citizenship . �'.......... �� ........ �:.... ::.. ........ 14 Ownership ........... :..... ............15 Identity Verification/Credit .Check....................................................... .......... 15 Second,Homes 4`� ........:.....................................................15 .. ...... ... .... Occupancy. :: '...................... .............16 w, Spec at'Circumstances Related to'Occupancy..................................................................16 Death of Eligible Owner,............::................................................................................16 Income.......`. ..... .............................................................................................16 Amount of Assistar ce . }.:...............................................................................................17 Exceptions...............................................................................................................17 Offer..................................................................................................................................18 EligibleUse of Funds........................................................................................................19 Duplicationof Benefits.............................................................................................................19 Recapture Duplication of Benefits........................................................................................19 Sources of Duplication of Benefits..........................................................................::...........19 FEMA Individual Assistance (FEMA IA).......................................................................: 20 FEMA National Flood Insurance Program(NFIP)................................0.......................... 20 City of Beaumont, Texas 1 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Increased Cost of Compliance (ICC)................................................................................ 20 PrivateInsurance.......................................................... ..:....... ............................................. 20 .f- ,- The Small Business Administration (SBA)...................:................................................. 21 Other Sources of Duplication of Benefits "...:............................................... 21 Adjustments and Offset to the Amount of Assistance ..........::.. ............... 21 No receipts provided .......................... :` ............................... 21 Partial receipts provided......................:......................................................................... 21 All receipts provided.................................�: ....: ...................21 . LegalFees .............................. ............................... ...................................................... 22 Buyout Award Determination......,:' :...:........ ........................ ti:................................................... 22 ti V• Buyout Applicants, Who Owned the Property, Prior to the Disaster ..................................... 22 Buyout Applicants -with Negative Equity on Mortgage.........::...:....................................... 23 _ r Buyout Applicants with Reve`r`se Mortgage . ..: .......... `.............................................. 23 Buyout Applicants iii -..Foreclosure ...... ......::............................. ........................................... 23 Contract -for Deed/Land Leases/Mobile Homes`:............................................................—... 23 Certification Requirements'Prior to Receiving-Assistance.................................0..................... 23 Offer to.Purchase ...... .. ...... .................................................................................... 24 y .,l Documenting Eligibility•'and Acceptance of Offer . .................................... ................................ 24 City of Beaumont will document the owner and property eligibility in the applicant file and will retain detailed -copies of all award determinations as well as the applicant acceptance ofthe 1 offered buyout and1ncentive amounts ........................................................................:... a......... 24 ApplicantClosing .............:............................................................................................... 24 PropertyBefore Closing........................................................................................................... 24 Document Execution at Closing............................................................................................... 24 SubrogationAgreement........................................................................................................ 25 Assignment Relation to Funds Received Under Program .................................................. 25 Cooperation and Further Documentation..........•................................................................ 25 Authorization for Program to Contact Third Parties.......................................................... 25 PropertyAfter Closing............................................................................................................... 26 Appeals......................................................................................................................................... 26 Grievance Policy/Procedure...................................................................................................... 26 Complaints........................................................................................................... 26 Responsibilities..................................................................................................................... 26 Documentation.................................................................................................................. ` 27 J Affirmative Marketing/Fair Housing..........................................:::............................................... 27 City of Beaumont, Texas `� . ' ~ ' 2 Disaster Recovery Buyout Program Guidelines `IN s\ Disaster Recovery Voluntary Buyout Program Guidelines CoordinatedHousing Strategy....................................................................................................... 28 Complianceand Monitoring.......................................................................................................... 28 Conflictof Interest..................................................................................................................... 28 Section3..........................................................................................................I........................... 28 RecordRetention...................................................................................................................... 28 Closeout.................................................................................................................................... 28 Anti- Fraud and Compliance Policies......................................................................................... 28 Contact....................................................................................'.................................................. 29 City of Beaumont, Texas . 3 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines City of Beaumont, TX Introduction The City of Beaumont Disaster Recovery Voluntary Buyout Program isaprogramto assist owners whose homes were damaged by Hurricane Harvey (2017).to relocate outside the threat offlooding. Buyoutprograms support hazard mitigation; floodplainiinanagement goals, and resiliency by removing homeowners from the floodplain, thus elim'inat'ing vulnerability to future flooding situations. After homes are purchased, thiestrueturesare demolisliedorrelocated. The land reverts to a natural floodplain, converts into a retention area, or is retained as green space for recreational purposes. The buyout program serves multiple obj ectives andprovides aresiliency option versus rebuilding within a floodplain. Buyouts help prevent"repetitive loss and extreme risk to human health and safety. When conducted sooner rather than later, Buyouts prevent homeowners from making repairs and,invesiing funds inproperties that they then may not want to sell. The objectives' -of the program are:, 1. Acquire properties -that have been subj qct to multiple floods (including those damaged by Hurricane Harvey), and useTorpublio space,.green space, and/or flood control measures. 2. Assist homeowners to moye''to an area with a. reduced -risk of flooding'. 3. Return properties in the floodplain to natural and beneficial function, aiding in the storage of floodwaters 4. Eliminate future flood damages. and-health'and,safety risks for owners and rescuers. 5. Reduce-repetitive,subsidized flood insurance payments and federal disaster assistance The program will focus on providing.assistance to'owners of properties that are located in the floodplain,or cases of repetitive loss due to flooding. Maximum Assistance Amount City of Beaumont will,use funds from the U.S. Department of Housing and Urban Development (HUD"C'onmunity Development Block Grant Disaster Recovery (CDBG-DR) funding 'for the buyout of approximately 27 properties, of which no less than 70 percent will be owned by low- and moderate income (LMI) households'. The maximum amount of CDBG-DR funding available for any single buyout will be capped at the FHA Mortgage Limit for City of Beaumont, provided in Table 1 below. However, it is expected that the average amount of buyout assistance including incentives, project delivery and other eligible project costs will be approximately $115,000 per buyout. Using CDBG-DR funds, the program provides property owners up to the pre -disaster fair market value oftheir home and may also include an incentive payment to encourage relocation to an area of reduced flood risk. 'Area with reduced risk of flooding means moving outside the 100 -year flood plain or within the 100 -year flood plain in a structure with flood mitigation measures above the current standard (2 feet above the 5W -year flood plain). 2 Based on current funding allocations and subject to specific funding restrictions which include 100 percent of funding to serve LMI for first Harvey Allocation (PL 115-31). Please see Table 4 for a breakout of estimated number of units to be acquired by allocation. City of Beaumont, Texas Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Limit3 Definitions Acquisition—The utilization of CDBG-DR only is typically not considered a complete another eligible use (i.e. relocation assista applicable uniform cost principals, and the used. Area Median Family Income (A family income with adjustments Builder Assignments -=­A- They A - They must also meet -state ensure quality constructio: Buyout — A type reduce risk -from program's nous. Managers must barriers to Darti ty in the Program and' The purchase price n isaster FairfMarket V property. Acquisition lust be combined with [st.be consistent with ue (FMV) may not be based on HUD -estimated median ;d by' the Subrecipient or state. its'' possess controls that will the purchase of an eligible property with the intent to o -reduce risk from the hazard that led to the property's )roperty,acquired will be dedicated and maintained in with open space, recreational, or floodplain and wetlands th individual survivors and their families to understand the ting in clear and transparent determination of eligibility.. Case ial circumstances ofthe survivor's needs to decrease their gram where possible. Staff should meet at designated Damage Assessment- An inspection of the unit to document damage from the event. The assessment by a certified or licensed inspector (HQS, MPS, TREC, or similar license) is required to specifically and clearly document storm related property damage via photographic evidence and detailednarratives (seethe GLO's Damage Assessment Guidelines). Damage assessmentsmay also include final cost of repair estimates. Davis -Bacon Act of 1931 (40 USC Part 3141 et seq.) and Related Acts — All laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with assistance received under this chapter shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis -Bacon Act, as amended. This applies to the rehabilitation of residential property only if such property contains not less than 8 units. 5 s 2018 FHA Mortgage Limits for Jefferson County from https://entp:hud.gov/idag2/html/hicostl.cfm Mortgage maximums as of Tuesday January 01, 2019 5 https://www.hudexchange.info/resources/documents/Housing-and-Community-Development-Act-1974.pdf City of Beaumont, Texas Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary. Buyout Program Guidelines Demolition — The clearance and proper disposal of dilapidated buildings and improvements. Duplication of Benefits — The Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act) prohibits any person, business concern,-orjother entity from receiving financial assistance from CDBG-DR Disaster Recovery,, funding with respect to any part of a loss resulting from a maj or disaster as to which he/shehas already received financial assistance under any other program or from insurance or anyother source. 6 Environmental Review -All substantially qualified,applicants (e.g: app repair and replacement of their damaged unit must have received dama their home and lived in the home as their primary residence) must and review process. This process ensures that the activities comply with N Policy Act (NEPA) and other applicable state andfederallaws. nts who apply forthe from the event, own w an environmental Elevation Standards- Standards thiat'applyto new construction, repair of substantial damage, or substantial improvement of structures located,in an area�delineated as a flood hazard area or equivalent in FEMA's data source identified�in'-24-CFR 55:2(h)(l). Family -A household composed oftwo or more.related persons. The term family also includes one or more enginiepersons ii important to their care'or well described in this definition'whc for Persons with= AIDS (HOPI FEMA �Designated'High-.Risk wind-and/,or storm surge,.dama be identif ed.during the efiviroi Flood Disaster Protection Act ReformActofT994;Compl a HUD flood disaster assistaricet ng withanother person or persons who are determined to be Bing and the, surviving member or members of any family Vere -living in taint assisted under the Housing Opportunities 5�) program,at the time of his or her death. rea — Areas designated by FEMA as vulnerable to significant ana,areas located in 100 -year flood zones. These areas will iental 'review process for each participating jurisdiction. ' 1973 and Sec. 582(a) of the National Flood Insurance e with the legal requirements of Section 5.82(a) mandates that t is made available in an Special FloodHazardAreas (SFHAs) may not be used to make a payment (including any loan assistance payment) to a person for repair, replacement or restoration for flood damage to any personal, residential or commercial property if: (1) thepersonhad previously received Federal flood disaster assistance conditioned on obtaining and maintaining flood insurance; and (2) that person failed to obtain and maintain flood insurance as required under applicable Federal law on such property. Green Building Standards — All rehabilitated (meets the definition of substantial improvement), reconstruction or new construction must meet an industry -recognized standard thathas achieved certification under at least one ofthe following programs: (i) ENERGY STAR (Certified Homes or Multi -family High -Rise), (ii) Enterprise Green Communities, (iii) LEED (New Construction, Homes, Midrise, Existing Buildings Operations and Maintenance, or Neighborhood Development), (iv) ICC -700 National Green Building Standard. Homeowner Assistance Activity — The utilization of CDBG-DR funding to rehabilitate or reconstruct damaged homes for the applicant to remain in the original home at the original home site. The home to be assisted must have been owner -occupied at the time of the event. 6 Federal Register/Vol. 82, No. 247/Wednesday, December 27, 2017/Notices (Hurricane Harvey) City of Beaumont, Texas Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Homebuyer Assistance Activity — The utilization of CDBG=DR Disaster Recovery funding for up to 100% of the required down payment, reasonable closing costs. principal write-down assistance, subsidization of interest rates, and private•mortgage insurance to facilitate the purchase of a new or existing home. Housing Incentives- Incentive payments are generally offered in addition to other programs or funding (such as insurance), to encourage,. ouseholds to relocate in. a'suitable housing development or an area promoted by the community's comprehensive, recovery plan. The housing incentive may be offered for the purpose,of improving the residential structurethat upon completion will be occupied.by a Low to mocierateincome household. An incentive may be offered to a buyout payment for households that volunteer to relocate outsi6 of floodplain or to a lower -risk area. A buyout i iceiitive-isnot available for properties that served as second homes at the time of the disaster or�following:the disaster:. Household— Ahouseli ld is defined as alli � sons 'occupying the same housing unit, regardless hip of their relationsto each -other. The occupants could -consist o'\ -fa single family, two (2) or more families living:together,,or any othei,group"of related- or'' unrelated persons who share living arrangements: zFor housing activities, the`test of meeting the low- to moderate- income (LMI) objective is based on the LMI-ofhouselolds. Housing- and Urban �Developnient Act of 1968, Section 3 —Requires the Subrecipient to ensure;that training; employment; and other economic opportunities generated by HUD financiat,assistance shall be directed to.the greatest extent feasible and consistent with existing Federal; State, and Local lawsand regulations, to low and very low-income persons. Recipients of Section`3.,covered funding ensure compliance and the compliance of their contractors/subcontractors With the Section 3 requirements, as outlined in 24 CFR 13 5.32.7 Housing Unit- An`owner-occupied housing damaged or destroyed by an event. Low- to Moderate- Income^f(LMI) National Objective— Activities which benefit households whose total annual gross income does not exceed 80% ofArea Median Income (AMI), adjusted for family size. Income eligibility will be determined and verified in accordance with GLO's Adjusted Gross Income Methodology. The most current income limits, published annually by HUD, shall be used by the Subrecipient to verify the income eligibility of each household applying for assistance at the time assistance is provided. • Very low: Household's annual income is up to 30% of the area median family income, as determined by HUD, adjusted for family size; • Low: Household's annual income is between 31% and 50% of the area median family income, as determined by HUD, adjusted for family size; • Moderate: Household's annual income is between 51 % and 80% of the area median family income, as determined by HUD, adjusted for family size. LMB National Objectives — Low to Moderate Buyout (LMB) is used for a buyout award to acquire housing owned by a qualifying LMI household, where. the award amount (including optionalrelocation assistance) is greaterthanthepost-disasterfairrnarketvalue ofthatproperty. 7 https://www.hudexchange.info e City of Beaumont, Texas Disaster Recovery Buyout Program Guidelines 7 Disaster Recovery Voluntary Buyout Program Guidelines LMHI National Objectives - Low Moderate Housing Incentive (LMHI) benefits LMI households that are used for a housing incentive award and tied to a voluntary buyout or other voluntary acquisition of housing owned or occupied by a qualifying LMI household. Manufactured Housing Unit (MHU) — A structure, transportable in one or more sections which, in the traveling mode is eight body -feet or more in width, or forty body -feet or more in length, or when erected on site, is at least 320 square feet, and which is built on a permanent chassis and is designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. Minimum Property Standards (MPS) — The Minimum Property Standards (MPS) establish certain minimum standards for buildings constructed under HUD housing programs. This includes new single-family homes, multi -family housing and health care type facilities as outlined in HUD's 1994 Edition Handbook (4910.1). Modular Housing — A home built in sections in a factory to meet state, local, or regional building codes. Once assembled, the modular unit becomes permanently fixed to one site. Multi Family Rental — Eight or more rental units in the property. Needs Assessment — An assessment that determines the type of housing programs that will be offered equitably and based upon an objective assessment of unmet needs in the affected community's population. Negative Equity Mortgage — also known as "under water" or "upside down" mortgages — when homeowners owe more on their mortgages than their homes are worth. New Construction — A replacement home that substantially exceeds the original footprint on the existing lot (if permitted) or the construction of a new home in a new location. Program Design— The selection and development ofprograms and activities based on aNeeds Assessment. The Program Design must include the type ofhousing activities that will be offered bythe Subrecipient, as well as howthe Program will be marketed, how Fair Housing Objectives will be achieved, and how funding will be prioritized as determined through a Needs Assessment. Program Income- Net income derived from the sale of program assets that exceeds $3 5,000 in a single fiscal year, received by the Subrecipient and directly generated from the use of housing CDBG-DR funds. Single Family Home — A single -unit family residence detached or attached to other housing structures. Single Family Rental — Seven or less rental units under common ownership. Units may be on contiguous or scattered lots. Scattered site rentals (rental properties not on an undivided lot or on contiguous lots or parcels) may exceed seven units without wage requirements. Slum and Blight National Objective — Activities which help/to eliminate slum and blighted conditions. (Use of this National Objective is limited due -t64 ' ts'inability to contribute towards the overall requirement for 70% LMI to benefit r low-`tomodrate= Disaster Recovery Voluntary Buyout Program Guidelines Slum and Blight activities must meet the criteria of one ofthe three following categories: Prevent or eliminate slum and blight on an area basis; Prevent or eliminate slum and blight on a spot basis; or Be in an urban renewal area. Sub-recipient—Cities, Counties, IndianTribes, local governmental agencies (including COGs), private non -profits (including faith -based organizations), or a for-profit entity authorizedunder 24 CFR 570.201(o). The definition of Subrecipient does not include procured contractors providing supplies, equipment, construction, or services and may be further restricted by Program Rules or other guidance including applications. Subrogation Agreement— Means an agreement executed by the beneficiary agreeing to repay any duplicative assistance if they later receive other disaster assistance for the same purpose. Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970, as amended (Title 49 CFR Part 24) (Uniform Act referred to URA)— Applies to all acquisitions of real property or displacements of persons resulting from Federal or federally -assisted program or projects. URA's objective is to provide uniform, fair, and equitable treatment of persons whose real property is acquired or who are displaced in connection with federally funded projects. For the purposes of these guidelines, URA mostly applies to residential displacements in involuntary (49 CFR Subpart B) acquisition or multi -family damaged/occupied activities that require the relocation of the tenants. A displaced person is eligible to receive a rental assistance payment that is calculated to cover a period of 42 months. Unsecured Forgivable Promissory Note — Is an agreement between the assisted beneficiary and Subrecipient/GLO that requires applicants to comply for several terms during a set affordability period. At the end of the affordability period the terms are forgiven after they are met by the homeowner. Urgent Need National Obj ective —An urgent need that exists because existing conditions pose serious and immediate threat to health/welfare of community, the existing conditions are recent or recently became urgent and the Subrecipient cannot finance the activities on its own because other funding sources are not available. Subrecipients must document how each program and/or activity funded under this category responds to a disaster related impact. National Objective The disaster that caused the most recent damage to the property will be used to determine the national objective for each property assisted. For the Hurricane Harvey disaster, the applicant's national objective is determined based on the type of activity. For more information about which national objective applies based on disaster, please see the table below: City of Beaumont, Texas r `` 9 Disaster Recovery Buyout Program Guidelines ✓ Disaster Recovery Voluntary Buyout Program Guidelines Low- and Moderate -Income Table 2. Buyout National Objective Disaster Activity Types LMI Buyout LMI Housing Incentive Acquisition -buyout of residential' , property X Clearance and Demolition X 2017 Hurricane -Harvey: Relocation Payment and Assistance Urgent Need One critical component of a buyout program is taking measures to limit the checkerboard effect that buyout programs can sometimes have on a neighborhood. To help limit the checkerboarding effect, the City of Beaumont will include an Urgent Need activity in parallel with the LMI activity. The UrgentNeed buyout activity will follow the same guidelines as the LMI activity but Will expand the owner eligibility to include owners with incomes up to 120 percent of areamedian income and may include owners with incomes of greater than 120 percent if such owner maintained required flood insurance within the 100 -year floodplain. Program Administration Application Processing Overview The City of Beaumont Buyout Program is available to applicants identified: through the Planning Division/Floodplain Administrator. The City will provide timely .notification to applicants on their application status. Additionally, the City will further define in its operating procedures the methods for communication (i.e., website, telephone, case managers, letters, etc.), ensuring the accessibility and privacy of individualized information for all applicants, indicating the frequency of applicant status updates, and identifying which personnel or unit is responsible for informing applicants of the status of recovery applications. Below is a summary outline ofthe buyout program process from pre -application through closing: 1. Waiting List a. The City of Beaumont adds households to the waiting list that have expressed an interest in volunteering to be bought out. 2. Pre -Application Review a. The pre -application review is used to review preliminary data collected on the applicant and the applicant's property, contact the applicant to discuss the application process, provide information regarding the assistance available, inform the applicant of the documentation/verification requirements, and discuss next steps. b. Determine residency within Floodplain according to program guidelines. 3. Application a. Used to collect required information, certifications, authorizations, and supporting documentation/verifications used to determine program eligibility b. Determine whether home is owner -occupied 4. Evaluation & Eligibility Determination a. Verification and calculation of household income, review citizenship status, ownership status, clear title and current on property taxes, determine property location/eligibility, etc. b. National Objective- LMI and UN status City of Beaumont, Texas 10 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines 5. Appraisal . a, Property is appraised to determine pre -disaster fair marketvalue 6. Complete program documents with case manager/assess need for relocation advisory services a. Owners and non -owner occupants complete. the application and provide required documentation to determine their eligibility for•theptogram. b. Discuss relocation options and need for assistance. in identifying comparable relocation opportunities. Assign relocation advisory,.se"rvices as needed/requested. 7. Offer to Purchase to Applicant `\ ' a. Once an owner and their property has'been''determined eligible, they will receive an offer:to purchase that takes into -consideration the pre -disaster fair market value and any duplication of benefits b. Owner or displaced occupants receive`information regarding available resources to help with move 8. Commitment `, `'' .. `_• 9. Submission to City of Beaumont 'for fa'ndirng approval. a. All properties that will receiyebuyouf funds must be;reviewed and approved by the City of Beaumont. 10. Approval letter sent to Applicant 11. Funding secured 12. Lender schedules closing 13. City approves closing`document's 14. Closing.occurs/title tr'ansfers;to City -of Beaumont 15. Demolition_._ 16. Compliance & 1Vlonitoring \ i URA Requirements The buyout program will acquire'propertiesTfron owners who agree to voluntarily participate in the program. However, some owners,who volunteer may rent their property they have volunteered for the buyout program. Renters and other non -owner occupants who will be required to move from'the'unit involuntarily may be displaced as a result of the buyout. City of Beaumont will follow the URA requirements, as amended by the applicable Federal Register Notices for each disaster allocation. For more information on the URA benefits and services that displaced persons are eligible to receive please see the Moving Costs and Relocation Section. Property Requirements Homeowners who own a property in a floodplain may be eligible to receive buyout assistance and will be prioritized to receive assistance. For the property to qualify for the buyout program the property must meet the following requirements: 1. Located in City of Beaumont jurisdiction 2. The property must be in a mapped floodplain and/or subject to repetitive flooding caused by out -of -bank bayou flooding. 3. Have been damaged by Hurricane Harvey 4. Must be an eligible property type 5. The property's source of flooding is from a bayou, creek, or smaller tributary that feeds into the City of Beaumont. 6. A home buyout, must be the most beneficial solution to.the property's flooding problem (as opposed to a structural solution, such as a channel conveyance improvement or storm water detention basin). City of Beaumont, Texas 11 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines 7. The property is strategically located for potential or future flood damage reduction projects and/or floodplain preservation. Additionally, apropertymay be eligible for buy-out assistance ifan applicant originally applied for rehabilitation or reconstruction assistance, but the site could not be environmentally cleared, and conditions could not be mitigated to HUD standards for housing rehabilitation or reconstruction assistance due to the following conditions: 1. Any house in the floodway that cannot be moved or rebulit-within the property boundaries outside the floodway, or 2. Anyhouseseeking reconstruction assistance with anoise-impact that cannot be mitigated to HUD acceptable levels, or 3. Any house that is nota clear site for hazardous toxins per Texas Corrimission on Environment Quality (TCEQ) without compliant mitigation possible; or',,,., 4. Any house seeking reconstruction assistance outsR eHUD's Acceptable SafeDistance guidelines from a flammable or explosive hazard. ` If a property applied for rehabilitation"or'reconstruction assistance but could not be environmentally cleared due to the above criteria;•the property will still need to meet the property requirements #1, 2, 3, and 4: s Any time HUD standards for mitigation of a hazard cannot be -satisfied to meet its obligations under NEPA and related.laws, federal'`. funds are`proliibited from rehabilitation or restoring a house on the hazardous property. However, such property may be cleared for acquisition (buy- out) purposes only. ;- Structure 'Type Eligible properties must bea residential dwelling structure or vacant lot.' A dwelling structure is defined as `.residential space that.is a place'of permanent habitation for a person or family that contains a living room, kitchen area, sleeping area, and bathroom(s). 1. Eligible Structure Types a. Single-unit..dwelling structure b. Multi -unit dwelling -structure c. Stick built d. Modular e. Manufactured f. Dwelling structure on leased land g. Duplex, Tri-plex, Four-plex h. Condo, Town -home i. Multi -family unit Manufactured home on leased land The buyout program will acquire properties from owners who agree to voluntarily participate in the program. However, several of the structure types listed above may include occupants that are not the owner and who will be required to move from the unit involuntarily. Since these occupants may be displaced, City of Beaumont will follow the URA requirements, as amended by the applicable Federal Register Notices for each disaster allocation. 8 City of Beaumont does intend to acquire vacant and abandoned rental property as well as vacant and abandoned lots within the Buyout Interest Areas but does not wish to limit buyouts to only those properties so that it may maximize the effectiveness of the buyout program. City of Beaumont, Texas 12 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Property Type Property is the land and improvements listed on the title or appraisal district record as published on Jefferson Central Appraisal District's website at JCAD.org on which the owner -occupant unit is located. The following types of ownership are ineligible for assistance under this program: 1. Applicants who lost ownership of their home due to foreclosure, properties with outstanding suits, judgments and tax liens that would eopardize ownership may be ineligible for assistance. 2. Properties located where federal assistance is not permitted -are ineligible for assistance. Properties must be in compliance with Environmental Co&24-CFR Part 58. Flood Claims ' To verify property flood damage from the applicable disasters, flood claims will be verified by the National Flood Insurance Program (NFIP). Any assistance,i'denfified through'the`NFIP verification will be considered for potential Duplicationlo ,ofBenefits. - Environmental Review , CD13G-DR buyout assistance is contingent on compliance with the. National Environmental Policy Act (NEPA) and related environmental'and historic preservatiomlegislation and executive orders. Accordingly, pnvironmentalxeview activities arecarried-out for site contamination and demolition control, and documerted',prior to commitment offunds. Appraisal ' 7 All properties will be -appraised ba State licensed appraiser raiser and in conformity with the Uniform RelocationAct at49 CFR24..103-CiteriaforAppraisal and 49 CFR 24.104 -Review ofAppraisals. 1. If appraisal exceeds the established maximum purchase limit as set by the City, the applicant may receiveup;to the City's established limit. Such cases will be evaluated on a case by, case basis and final determination made by the City. 2. If appraisal isbelowthe City's established maximumpurchase limit, applicantwill be offered the'pre-disaster fair; market value. The properties will be purchased at a pre -storm fair market appraised value of the home, less any identified duplication of benefits and mortgage or other liens. Deed Restriction or Restrictive Covenant Properties acquired through the buyout program must have a deed restriction or restrictive covenant running with the property and require that the buyout property be dedicated and maintained for compatible uses in perpetuity. Compatible uses include: 1. Any property acquired, accepted, or from which a structure will be removed pursuant to the proj ect will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or floodplain and wetlands management practices. 2. No new structure will be erected on property acquired, accepted, or from which a structure was removed under the acquisition or relocation program other than: a. apublic facility that is open on all sides and functionally related to a designated open space (e.g., a park, campground, or outdoor recreation area); b. a rest room; or c. a flood control structure, provided that structure does not reduce valley storage, increase erosive velocities, or increase =flood heights on.the opposite. bank, J City of Beaumont, Texas ;.; ��, 13 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines upstream, or downstream and that the local floodplain manager approves, in writing, before the commencement of the construction of the structure. 3. After receipt of the assistance, with respect to any property acquired, accepted, or from which a structure was removed under the acquisition or relocation program, no subsequent application for additional disaster assistance for any purpose or to repair damage or make improvements of any sort will be made by the owner of the buyout property (including subsequent owners) to any Federal entity in perpetuity. The entity acquiring the property may lease it to adjacent property owners or other parties for compatible uses in return for a maintenance agreement. Although Federal policy encourages leasing rather than selling such property, the property may also be sold. Owner Requirements In addition to the requirements for each property to be eligible for assistance, owners of the properties must also meet certain requirements in order to be eligible to receive buyout assistance. In order to qualify, all of the following must pertain to the homeowner/applicant: 1. The homeowner must be a United States Citizen or an Eligible Immigrant 2. Homeowner must have clear title to the property 3. Must be current on property taxes 4. Must be current on child support payments 5. Must agree to move to an area with reduced risk of flood' 6. Or the buyout is a result of environmental review restrictions in which the environmental review deems the property not eligible for other rehabilitation or reconstruction assistance. Participants in the buyout program will be required to certify to all eligibility criteria and must sign an acknowledgement agreeing to the following false claims statement: "Warning: Any person who knowingly makes a false claim or statement to HUD maybe subjectto civil or criminal penalties under 18 U.S.C. 287,1001, and 31 U.S.C. 3729. Citizenship The homeowner must be a United States citizen, or an eligible immigrant -as verified by a signed declaration and one of the following: 1. U.S. Citizen a. A United States Passport b. Birth Certificate i. In the absence of a birth certificate; an elderly applicant may substitute a Social Security Benefits Determination document forthebirth certificate. c. Certificate of Naturalization 2. Eligible Immigrant _ a. Form I-551 Alien registration--re_ceipt card - b. Form I-94 Arrival Departure Record annotated'wifh;one of the following: i. Admitted as a Refugee Pursuant -to Section207, ii. Section 208 iii. Section 243 `(h),or "Deportation" stayed`by Attorney General 9 Area with reduced risk of flooding means moving'outside the ,100 -year flood plain or within the 100 -year flood plain in a structure with flood mitigation measures above the current standard (2 feet above the 500 -year flood plain). t r-- City of Beaumont ,:Texas -- ._ ���., �- _ � `\ `�, 14 Disaster Recovery Buyout Program Guidelines �_ Disaster Recovery Voluntary Buyout Program Guidelines iv. Paroled Pursuant to Section 221 (s)(5) of theUSCIS c. Form I-94 Arrival -Departure Record with no annotation accompanied by: i. A final court decision granting asylum (only if no appeal is taken) ii. A letter from anUSCIS asylum officergranting asylum (ifapplicationis filed on or after 10/1/90) or from an USCIS district director granting asylum (application filed before 10/1/90) iii. A court decision granting withholding of deportation iv. A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/1/90) v. A receipt issued by the US CIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant's entitlement to the document has been verified. Ownership Ownership will be verified by a full title search to ensure a clear title on the property. All title issues must be resolved prior to closing. The title company must provide title insurance on the property. Additionally, the City of Beaumont will provide owners withreferrals and recommendations on title clearance assistance, such as local legal aid organizations. Identity Verification/Credit Check Owners identity will be verified via a credit check; however, an applicant's credit score is not taken into consideration in determining program eligibility. The credit report is reviewed to verify: 1. applicant's identity 2. that there are no judgments or liens on the property (example — tax lien) 3. applicants must be current on property taxes or be awarded a tax deferral as allowed under Section 33.06 of the Texas Tax Code. CDBG-DR funds may not be used to pay delinquent taxes or child support back payments. Second Homes To help accomplish the overall goals of the buyout program, the City of Beaumont wishes to provide buyout assistance to as many volunteers as possible within the Buyout Interest Area. However, owners that volunteer for buyout on homes that qualify as their second home at the time of the disaster, or following the disaster, are often not eligible to participate in the buyout program and are not eligible for residential incentives. City of Beaumont, Texas 15 Disaster Recovery Buyout Program Guidelines Second Home Definition Buyout of Housing Second Incentives Homes Allowable? Allowable? 2017 IRS Publication 936 No No PL 115-31 (82 FR 61320) 83 FR 5844 City of Beaumont, Texas 15 Disaster Recovery Buyout Program Guidelines y Disaster Recovery Voluntary BuyoutProgram Guidelines 2017 A second home `'is defined, Yes No under this notice ' as"a home " PL 115-123 (83 FR 5844) that, :7is,, not the `primary,,` residence "of the owner, �.a tenant',...or;any occupant at the�l. time of the-storin�'or'at.the time , -- , ,of application for assistance. Occupancy To confirm owner occupancy, the program looks ff t,,a homestead exemption in the property tax records in the- applicant's 'nanie.for the time;of the,,storm. This will be verified through Jefferson"Central Appraisal Distrief(JCAD).'If the property tax records have established a homestead: exemption; .the property s, considered occupied by the applicant. In the absence confirmation of a homestead'-exerrption,from records provided by the City, the following hierarchy-will,be used to establish occupancy (all occupancy documentation must be from one month prior to the storm, in the applicant-or.co-applicant's name, and the damaged address): 1. Property tax 'records demonstrating homestead exemption for the property; 2. Copy of electr--ic;,gas, or -water bill. The bill must confirm that service was provided in the month of or the month prior to the storm; 3. Letter from electric;, gas,'or water company. The letter must confirm that service was provided in the month of or the month prior to the storm; 4. Other qualified documents may be presented to the city for consideration of proof of occupancy. For tenant occupied housing, rental lease agreements will be used to verify occupancy. Special Circumstances Related to Occupancy ' 1. Active duty military personnel who own a storm -damaged home in the City of Beaumont but are currently assigned to duty away from their home or were assigned to duty away from their home at the time of the storm are eligible. 2. Applicants incapacitated due to illness who own a storm damaged home in the City of Beaumont and are currently incapacitated or were incapacitated at the time of the storm are eligible. 3. Applicants who were incarcerated at the time of the storm but are no longer incarcerated are eligible to apply for the program. If the applicant is incarcerated at the time of application, the applicant must give someone Power of Attorney on his or her behalf. 4. Applicants who were in a nursing home at the time of the storm but are no longer in a nursing home are eligible. If the applicant is in a nursing home at the time of application, the applicant must give someone Power of Attorney on his or her behalf. Death of Eligible Owner 1. If the homeowner passes away before closing the transaction occurs the heir to the property may be eligible to proceed with the sale of the property once succession has been established. The heir must meet all eligibilityrequirements. 2. If an eligible owner dies and leaves their damaged property to a business entity, the application is ineligible for assistance. Income The buyout program requires that each applicant household provide their household income for purpose of determining their eligibility to receive assistance. Income amounts will be verified City of Beaumont, Texas 16 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines through the Income Policies and Procedures. The Department of Housing and Urban Development's (HUD) Income Calculator or a similar calculator tool will be used to determine if applicant meets HUD's low to -moderate income criteria. The program will use the 24 CFR Part 5 definition of annual income. (See Income Policies and Procedures). Household income must not exceed the low-income limit (80 percent of area median income) for the area for LMI households and 120 -percent for Urgent Need households. Income limits are established by HUD and updated annually. Amount of Assistance City of Beaumont has been allocated funding from the U.S. Department of Housing and Urban Development (HUD) via the Texas General Land Office (GLO) for disaster recovery projects related to the 2017 federally declared disaster events. Based on the availability of funds, there maybe multiple rounds for the Disaster Recovery Buy -Out Program to assist additional properties as preliminary City of Beaumont estimates identifiedtheneedforapproximately 100 propertiesthatmay be eligible for a buyout program. The maximum assistant amount of CDBG-DR buyout funds will be capped at the FHA Mortgage Limits for City of Beaumont. It is anticipated that the average assistance amount per household will be approximately $115,000. Eligible costs included in the buyout maximum assistance amount are: ❑ buyout purchase price10, ❑ clearance and demolition", ❑ moving expenses, ❑ settlement costs, ❑ a replacement housing incentive payment of up to $31,000; . Incentives The City of Beaumont will provide eligible participants with housing incentives to relocate to areas with a reduced risk of flooding. The purpose of these incentive's is to allow owners the ability to relocate to an area with reduced risk of flooding=while not being.made worse off financially or in terms of housing quality by participating in the program. ' While housing incentives are allowable, they must be justified and reasonable. Federal regufations prohibit the buyout program from providing compensation payment. Replacement Housing Incentive The replacement housing incentive is 'necessary, due increased:housing costs following the three years of repetitive flooding and the devastation caused by Hurricane Harvey and will be provided to households purchasing a more expensive. home. ift-City of Beaumont, up to the amount by which the new home price exceeds the buy-out home not ''to exceed,$3-1,000. Moving Costs and Relocation l If the buyout is a volurtaryacquisiti`on'`of a owner_occupied residence, owners are not entitled to assistance under the Uniform Relocation Assistance and Real. Property Acquisition Policies Act (URA). However --moving expenses may be providedif. funds are available under the maximum award after buy-out and demolition=:costs are co'vered.,,F_ or voluntary, owner -occupied buyouts movingrexpenses will be -covered as.a stipend of $5,00.0. In the event that the $5,000 stipend does 10-Purc ase ppcge apre-s orm au- market value due to significant decrease in home values. in the Buyout Interest Areas due to damage caused by the disasters. �. i i Demolition costs can include the actual demolition oithe existing structures on the property, clearing the property, and proper disposal`of resulting debris', 1 not cover all moving expenses, the owner may submit receipts for reimbursement provided they City of Beaumont, Texas, 17 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines received at least two bids and selected the lower of thebids. If a rental home is purchased through the buyout program and contains tenants that will be required to relocate, they are considered displaced persons who are eligible for relocation benefits under the Uniform Relocation Act (URA). As a displaced tenant under the URA, the City will adhere to all relocation notification requirements of the URA. Additionally, a tenant can receive two types of replacement housing assistance: amoving allowance, and a replacement housing allowance. The moving allowance can be an actual reasonable moving and related expenses reimbursement, or a fixed payment for moving expenses determined by a schedule published by the Federal Highway Administration. The replacement housing allowance can take two forms. If the displaced tenant chooses to continue to rent a dwelling, the award amount they are eligible for is 42 months times the difference in rent/utilities of their new home and their buyout dwelling (including lot rent, if a mobile home unit). Maximum replacement housing assistance is capped at $7,200 for 90 -day tenant occupants, except in situations where housing of last resort applies. Another option is for the displaced tenant to purchase a new home and receive a lump sum down payment form of assistance. If the displaced tenant elects to receive lump sum down payment assistance, their award cannot exceed what they would have been eligible for had they continued to rent aunt. HUD Handbook 1378 contains additional guidance on mobile home relocation under the URA: "1) Replacement Housing Payment is based on Dwelling and Site. Both the mobile home and mobile home site must be considered when computing a replacement housing payment. (A displaced mobile home occupant may have owned the displacement mobile home and rented the site, or rented the displacement mobile home and owned the site; or owned both the mobile home and the site, or rented both the mobile home and the site.) Also, a displaced mobile home occupant may elect to purchase a replacement mobile home and renfa replacement site, rent a replacement mobile home and purchase a replacement site; purchase both -,a replacement mobile home and replacement site, or rent both a replacement mobile homeand site. In such cases, the total replacement housing payment shall.con"sist of a payment for a -dwelling and a payment for a site, each computed under the applicable requirements. in 49 CFR -24:401 and 49 CFR 24.402." When the maximum replacement housing assistance under the URA is calculated, differential payment for the dwelling and site are both includ"ed. If a.mobile home -owner -occupant then chooses to purchase a stick -built home rather than a mobile home -,-they ar&eligible to receive the same amount of replacement housing -assistance as if they were to purchase a mobile home and lot. The State will allow the rental assistance payment for the site differential cost to be considered when computing the total replacement housing=;assistance due iii this situation. Offer Once the applicant has been-deterinined,oligible for buyout assistance, City of Beaumont will provide the. applicant with.a buyoutoffer.,in accordance with the appraised value (pre -disaster fair market.,value). Funding Will includebuy-outassistance, moving expenses, andcoverage of demolitioncosts when there are no "otherresources available, and when the buyout is a result of environmental review restrictions .in`which'the environmental review deems the property not eligible for other rehabilitation or reconstruction assistance. i tt j City of Beaumont, Texas 18 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Eligible Use of Funds 1. Appraised Property Buy Out Costs 2. Settlement Costs a. Appraisal Cost b. Appraisal Review c. Title Search d. City of Beaumont Document Signing e. Credit Check f. Environmental Impact Assessment Costs g. Inspection Costs h. Deed Conversion Fees i. Recording Fees j. Other Associated Closing Costs outline in the HUD 1 3. Demolition Costs including the actual demolition of the existing structures on the property, clearing the proper, and proper disposal of resulting debris 4. Moving expenses — to cover the cost of moving associated with participation in the buyout program. 5. Replacement Housing Incentive — to cover the difference in purchase price of the buyout home and a more expensive replacement home in City of Beaumont, up to $31,000. Duplication of Benefits Federal law prohibits any person, business concern, or other entity from receiving Federal funds for any part of such loss as to which he has received financial assistance under any other program or from insurance or any other source. A duplication of benefits (DOB) occurs when: a beneficiary receives assistance, and the assistance is from multiple sources, and the assistance amount exceeds the need for a particular recoverypurpose To ensure that City of Beaumont does not provide a duplication of benefits, the City will adhere to the following general process: 1. determination of the applicant's total need 2. identify all potentially duplicative assistance 3. determine whether assistance was duplicative 4. deduct duplicative assistance from the applicant's total need Recapture Duplication of Benefits If a duplication of benefits is identified, City of Beaumont will recapture funds to the extent they are in excess of the need and duplicate other assistance received by the beneficiary for the same purpose. Sources of Duplication of Benefits The following are sources of funding assistance provided for structural damage and loss that are considered a duplication of benefits (DOB). Under federal law DOB must be deducted from the assistance amount (the amount that will be offered for the purchase of the home): FEMA Individual Assistance (IA), FEMANational Flood Insurance Program (NFIP), Private Insurance, Small Business Administration (SBA) and other sources. Assistance received in the form of services instead of money, for home repairs from any source is not considered a duplication of benefits. Any additional duplication of benefits received by the applicant after the offer for City of Beaumont, Texas 19 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines purchase has been extended, the funding for the purchase of the home has been awarded or the purchase transaction has occurred, must be applied to reduce the award amount. Funds received from any source including flood insurance, FEMA and hazard insurance that were used to cover repair to the applicant's home do not reduce the amount of disaster assistance if the evidence of expenditures at least equals the amount of assistance. Documentation must be provided demonstrating the cost and type of repair conducted. City of Beaumont will conduct a work write-up that will inspect, confirm and estimate value of repairs based upon applicant's statement ofrepair work already completed. FEMA Individual Assistance (FEMA IA) FEMA IA will be determined and verified by City of Beaumont through the FEMA database. If City of Beaumont is unable to verify the FEMA IA amount through the FEMA database, City. of Beaumont will use the payment amount provided by the applicant at the time of application. If an applicant is able to provide documentation demonstrating that the FEMA IA amount provided by the FEMA database includes amounts not paid to cover structural loss, City of Beaumont will use the documentation provided by the applicant to adjust the FEMA IA payout amount. The documentation provided by the applicant must come from FEMA. FEMA National Flood Insurance Program (NFIP) City of Beaumont will check all applicants for NFIP to verify whether they maintained flood insurance. Any payments for loss to the dwellings under NFIP insurance policies are deducted from the amount the applicant is eligible to receive. Payments for contents or other expenses are not deducted from the applicant's award. The payment to applicants under NFIP policies will be determined and verified by City of Beaumont through the FEMA database and cross referenced with Texas GLO data. If City of Beaumont is unable to verify the NFIP insurance proceeds through the NFIP database, City of Beaumont will use documentation supplied by the applicant. If an applicant is able to provide documentation demonstrating that the insurance proceeds amount provided by the FEMA database includes items not covered in the home evaluation. or notp aid to cover structural loss, City of Beaumont will use the documentation provided by the applicant to adjust the insurance payout. The documentation provided by the applicant.must come from the insurance company which issued the payments. *` Increased Cost of Compliance (ICC) The program will determine duplication ofbendfits regarding Increased Cost, of Compliance funds for elevation and/or demolition activities. If severe property damage occurs ash a result of flooding, before repair or rebuild activities can occur, it may be required by law that 'the `damaged property meet community ordinances and/or state floodplain management standards.` ICC coverage provides funding to help cover the costs of d meeting those requirements with the intent aimeat reducing future`flood damage. ICC coverage is separate from and in addition -to insurance coverage that provides for structural or personal flood damage repairs: 1 � Private Insurance All private insurance settlement amounts for loss to dwellings are deducted from the applicant's award. Private insurance payments for -contents or other expenses such as fences, storage sheds, etc., are'not;deductedfrom the applicant's award: <w Insurance, proceeds are determined and`verified by the City of Beaumont through the applicant's insurance settlement., If an applicant is able to provide documentation City of Beaumont, Texas 20 Disaster Recovery 'Buyout Program' Guidelines Disaster Recovery Voluntary Buyout Program Guidelines demonstrating that the insurance proceeds amount provided by the insurance company includes items not covered in the home evaluation or not paid to cover structural loss, the City of Beaumont may use the documentation provided by the applicant to adjust the private insurance DOB. Mold remediation is not included in the home evaluation. Therefore, insurance payments to cover mold remediation are not deducted from an applicant's funding assistance award. The documentation provided by the applicant must come from the insurance company which issued the payments. The Small Business Administration (SBA) SBA loan proceeds available to the applicant area duplication of benefit (DOB). Any proceeds available for repair to the dwellings less any verifiable expenditures used for temporary repairs to the dwelling under Small Business Administration Disaster Assistance are deducted from the amount the applicant is eligible to receive. Payments for contents or other expenses are not deducted from the applicant's award. Other Sources of Duplication of Benefits Following a disaster, charitable organizations provide many kinds of contributions, including donations, grants, or loans among other types of assistance. Grants and cash donations designated for specific eligible work, even when provided from non -Federal sources, but designated for the same purpose as Federal disaster funds generally are considered a duplication of benefit. Grants and cash donations received for unspecified purposes (e.g., "for disaster recovery/relief efforts"), or for work not eligible for federal assistance, do not constitute a duplication of benefits. Adjustments and Offset to the Amount of Assistance Adjustments and offsets are deducted from the award amount,.-" No receipts provided If the household is unable to provide receipts to show work'completed for assistance. amounts received for housing repair and/or replacement, the full amount of housing repair and/or replacement assistance previously received must be deducted from the amount of funding for which the household'would otherwise be eligible. Partial receipts provided If partial receipts are provided by the household documenting that only a portion of the housing repair and/or replacement assistance previously received was used as intended, the amount received not supported -by receipts mustlbe-..deducted from the amount of funding for which the household would :otherwise beeligible. All receipts provided If receipts areprovided-by the houselold;documetiting that the full amount of housing repair and/or replacement assistance previously received -was used as intended, no deduction is made from the;award amount for which the household is eligible. In instances�where ino-receipts. of only -partial receipts were provided by the homeowner, City of Beaumont may consider self'certificationis when.calculating the amount of assistance that can be provided. In these.• instances,_ the following -.requirements apply: 1. The homeowner must provide a'signed self -certified statement that documents in detail all labor`and'or repairs made to the damaged property following the hurricane; and 2. A Certified Inspector must determine with reasonable assurance that the repairs were made after the date of thle hurricane; and. City of Beaumont, Texas,Y 21 Disaster Recovery Buyout Prograin.Guidelines Disaster Recovery Voluntary Buyout Program Guidelines 3. City of Beaumont will document, through photographs, the repairs that were made. A Certified Inspector(s) is a person or persons hired by the City of Beaumont, qualified to inspect for labor and/ or repairs made to the damaged home in the absence of receipts. In conjunction with site inspections, self -certified statements ofhomeowners mustbe reviewed in detail by, a Certified Inspector to determine: 1. Whether the home was repaired; 2. Whether the repairs could be reasonably determined as occurring after the hurricane; and 3. A reasonable value of the cost of repairs to the home (including labor). Although Rental Assistance is not considered to be a source of DOB under this Program, temporary housing expenses can offset the potential DOB amount. To offset the total amount, the following applies: 1. The offsetting amount would be the amount of documented expenses that exceed the amount received for Rental Assistance. 2. Self -certifications of the amount spent on or the value of rental resources obtained is not sufficient to off -set potential DOB. Applicants can provide documentation for allowable activities to off -set potential DOB. Allowable activities are temporary housing such as rent, hotel stays -and applicable utilities that occurred because oftemporary displacement from their primary residence because ofthe disaster. Eligible temporary displacement is from the time of the storm until the date of the verification letter. Evacuation costs are not eligible for DOB Offset'. If an applicant was a victim of contractor fraud, the amount paid to,tlie contractor may not be counted as a duplication of benefit. The applicant would have had to file a:police report before the date of the application submitted. If an applicant's mortgage company placed a force payment on insurance proceeds, the insurance amount may not count as -a duplication of benefits. The applicant would have to provide the document proving that that the mortgage company did not release the insurance proceeds. Legal Fees Legal fees that were paid to successfully obtain insurance proceeds will be credited to applicant and will not be deducted as part.of the duplication of•benefits calculation. Applicants must provide evidence ofpayment and self-certifyin accordance with-City`of Beaumont policy in order to be credited.' Tax filings related to losses to the.home do not affect funding assistance awards and are not considered_a duplication of benefits. Appl'i`cants should consult a personal tax consultant about any tax -related -matters.' . Buyout Award Determination The City of.Bbaumont will provide eligible. participants with the pre -disaster fair market value, less any duplication of benefits, plus moving and settlement costs, plus a Replacement Housing Incentive, Social.Vulnerability%lncentive, Rehabilitation Incentive, Down Payment Assistance, andanEquity Incentive. , Buyout Applicants wh'0 Owned the Property Prior to the Disaster Eligible owners determined to -have owned the buyout property prior to the disaster will receive an offer to purchase the property based on the pre -disaster fair market value of the property City of Beaumont, Texas 22 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines minus any duplication of benefits documented. Buyout Applicants with Negative Equity on Mortgage The buyout program may assist people who owe more on their mortgage than their house is worth, also known as negative equity mortgage or being underwater on their mortgage, but assistance amounts are capped at the maximum total buyout assistance amount per household. Assistance will only be provided if the assistance will allow the household to move from the damaged home to an area of reduced flood risk. Th e City of Beaumont reserves the right to review each applicant underwater on their mortgage on a case-by-case basis. Buyout Applicants with Reverse Mortgage The buyout program may assist people who have a reverse mortgage, but assistance amounts are capped at the maximum total buyout assistance amount per household. Assistance will only be provided if the assistance will allow the household to move from the damaged home to an area of reduced flood risk. The City of Beaumont reserves the right to review each applicant underwater on their mortgage on a case-by-case basis. Buyout Applicants in Foreclosure Applicants in foreclosure may be provided buyout assistance;'however the assistance amounts are capped at the maximum total buyout assistance amount per household. Assistance will only be provided if the assistance will allow the household to move' from the damaged home to an area of reduced flood risk. The City of Beaumont reserves .the.righttoreview each applicant underwater on their mortgage on a case-by-case basis: Contract for Deed/Land Leases/Mobile Homes Properties where there is a different owner, of the land thari the'"owner of the dwelling unit(s), such as in Contracts for Deed, long-term land leases, and often with mobile homes, may be assisted through the buyout program only ifs the property owner converts the contract to full ownership. Any persons displaced by such conversion will be provided replacement housing assistance following applicable URArequirements. The City... of Beaumont reserves the right to review each application on a case-by-case basis to determine the appropriate assistance amount. Certification Requi'r`ements Prior to Receiving Assistance All applicants_ -must -agree to the'following to receive..assistance: 1. Signan' Authorization for the Release of Information so that information provided can be shared and/or verified with state; federal and --other third -party agencies. The applicant, co -applicant, and other adult household members are required to sign the release unless one of the eligible applicants has provided power of attorney to another to represent him/her). 2. Sign a Certification of Completeness attesting to the accuracy and completeness of all information provided to the program under penalty of law. 3. Agree to verification of theirownership status, the amount of disaster -related damage to the home, and ass isfance•-received. 4. Power of attorney: Applicant(s) may grant power of attorney to someone who can apply on their behalf, as applicable 5. Sign a Certification of Residency attesting to the fact that the new address where the applicant will relocate to or has already relocated to an area of reduced flood risk. City of Beaumont, Texas 23 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Offer to Purchase Once an applicant has been determined eligible and an assistance amount has been calculated, the applicant will receive an offer to purchase. An applicant must sign a voluntary participation or non- participation agreement within 14 days of buy-out offer. If applicant does not agree to the offer, they may counter offer by providing their own pre -storm appraisal prepared by a licensed appraiser. The city will review the counter offer and make a decision regarding the appraisal amount that is to be used. If applicant appeals, the city will have ten (10) days to review the counteroffer and make a decision regarding the appraisal amount that will be used. Applicant will be notified by mail ofthe final decision. `s r' Documenting Eligibility and Acceptance of Offer City of Beaumont will document the owner and property,eligiblity in the applicant file and will retain detailed copies of all award determinations,as well as the applicant acceptance of the offered buyout and incentive amounts Applicant Closing Property Before Closing Participant must remove all personal'property from the residence prior to the day of closing. Any personal property remaining after closing,will be included"in the demolition. Once the purchase offer has been made, the Seller i's -notified of available resources to help applicant move. ❑ Upon Homeowner. acceptance .of offer; lthe .City of Beaumont: ❑ sends information .to,Title Company, reque's'ts title commitment, and invoice ❑ receives invoice, title commitment, -and preliminary settlement statement from Title Company ❑ prepare-- et-up"award statement includiing..estimated closing and demolition costs provided by CDBG-DR funds. ❑ prepares setup file`for'GLO. Setup file to include award statement with cost of acquisition, necessary soft costs, incentives`and-demolition (if applicable) costs. Setup file to include: ❑ Set-up form. (16.20) ; ❑ Award Statement ❑ Release of Funds (ROF) ❑ Sales Agreement- ❑ Title Commitment" ❑ Itemized Budget — includes closing costs based upon estimated closing date ❑ reviews setup and submits setup file to GLO who reviews and approves, or reviews and denies setup.. ❑ schedules closing. Document Execution atClosing The following documents will be signed by the applicant at the time of agreement: 1. Agreement for Sale 2. Subrogation Agreement 3. At closing seller signs agreement to have all utilities disconnected within 7 days. City of Beaumont, Texas 24 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Subrogation Agreement Subrogation is the process by which duplicative assistance paid to the Property Owner after receiving an award is remitted to the Program to rectify a duplication of benefit. All applicable claims (including insurancepayments, unpaid claims, lawsuits, and settlements) paidto applicants not included in the original benefit determination calculation and/or received after their closing appointment, must be subrogated to the Program to prevent a duplication of benefits. Assignment Relation to Funds Received Under Program In consideration of the Property Owner's award of funds and the commitment by City of Beaumont to evaluate the Property Owner's application for the award of funds under the City of Beaumont Buyout Program, the Property Owner assigns to the Program all future rights to reimbursement and all payments received under any insurance policy, including but not limited to any type of casualty or property damage insurance (the Policies); any reimbursement orreliefprogramrelated to or administered by FEMA or the SBA for physical damage to the property (not including proceeds received to cover contents); any other assistance from non- profit organizations, faith based organizations, or disaster relief entities, and other governmental entities, that was the basis of the calculation of the Property Owner's award to the extent of the proceeds paid under the Program. The proceeds or payments from the above described duplicative assistance are referred to herein as "Proceeds." The rights the Property Owner assigns to the Program are specific to the Property with respect towhich the Proceeds were paid. The Proceeds paid, as described in the Property. Qwrier'sapplication with the Program, arise out of physical damage to the Property originallycaused bythefederallydeclared disaster, but also includes Proceeds received for damage to�the.Property caused'by.any subsequent event that occurred (until the time of purchase of the, Property using Program funds). The Policies include, but are not limited to, policies characteri2ed' as damage, -flood, or any other type of casualty or property damage insurance coverage held by the Property Owner which provides coverage for physical damage to the Property. Once the Program has recovered an,amount equal to the award proceeds, the City of Beaumont Buyout Program reassigns any rights assigned to the City of Beaumont pursuant to this Agreement tolhe PropertyOwner. Cooperation and Further Documentation The Property Owner agreestoassist and cooperate.: with, City -of Beaumont should the City of Beaumont elect to pursue 'any of the"claims the Property Owner has against the insurers for reimbursement under anysuch Policies. The Property Owner's assistance and cooperation includes allowing suit to �be brought in -the Property -Owner's name(s), giving depositions, providing documents, produeirig records,and_other�evidence, testifying at trial and any other form of assistance -and `coop eratioireasoriablyrequested by City of Beaumont. The Property Owner furtfier agrees to assist and cooperate in the4itainment and collection of any proceeds that the Property Owner would`,be`bntitled..to under any applicable FEMA or SBA Programs. The Property Owner agrees to take necessary actions and to execute additional documents at City of Beaumont's..request to assign Property Owner's insurance policies to City of Beaumont, to the extent of the'furids granted to the Property Owner under the Program and/or the disaster relief funds from FEMA or SBA. Authorization for Program .to Contact Third Parties The Property Owner explicitly`allows the Program to request of any company with which the Property Owner held Policies or FEMA or SBA, any non-public or confidential information needed by the Program to monitor/enforce its interest in the rights assigned to it under the Consent and Release Agreement, and to give the Property Owner's consent to such company to release said information to the City of Beaumont Buyout Program. City of Beaumont, Texas 25 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Property After Closing Following closing, the City of Beaumont maintains copies of closing documents, including the recorded deed and title policy in the Planning Division. An agenda item is submitted to City Council to authorize responsibility for long-term property maintenance. The City of Beaumont is responsible for the maintenance and/or demolition of the residential structure and any outbuildings and proper disposition of the debris, in accordance with state and federal environmental laws, rules and regulations. The city will take ownership of the property and is responsible for ensuring the property title is deed restricted remaining public open space in perpetuity. A covenant will be placed on the property being acquired to maintain it as open space. Additionally, City of Beaumont will execute an interlocal agreement detailing the property maintenance requirements. The City of Beaumont maintains all buyout properties via its infrastructure division that has a maintenance department. The City of Beaumont Maintenance Department provides mowing, tree trimming, weed eating, and debris removal services. The City of Beaumont Police Department will evaluate the need for security patrol: The City of Beaumont will include the maintenance of buyout properties as part of its annual internal monitoring. The City of Beaumont will provide the maintenance schedule which will compare against the list of buyout properties to`ensure all properties are on the•schedule as well as perform site visits to ensure all properties are being maintained -to, standards:,. Appeals ` Grievance Policy/Procedure The City .of Beaumont is responsible for responding to complaints and appeals in a timely and professional manner. A grievance and appeals procedure will be afforded to applicants to provide a quick and efficient system for resolution of concerns or disputes that applicants may have with the procedures, followed and services provided by the City of Beaumont. The appeals procedure will include.both an informal and awrittengrievance process whichmayinclude but not be limited to informaIhearings, third -party review and director approval. City of Beaumont will keep axecord of each complaint or appeal that•it 'receives to include all communications and their'resolutions. Complaints alleging violation of fair housing laws will be directed to the U.S. Department of Housing and Urban Development for immediate review (see Grievance and Appeal's -policy). Complaints regarding fraud, waste, or abuse of government funds -will be forwarded'to the HUD OIG Fraud Hoiline`,(phone: 1-800-347-3735 or email: hotlinenhudoiggov). If an applicant disagrees with the city's decision, he or she can appeal to the Texas GLO. ' j i I i Complaints When a complaint or appeal is received, a representative will respond to the complainant or appellant within fifteen (15) -business days where practicable. For expediency, the City of Beaumont shall utilize telephone communication as the primary method of contact; however, email and postmarked letters will be used as necessary. Responsibilities The City of Beaumont will identify staff within their program tasked with handling all homeowner inquiries. These staff will be responsible for (1) determining whether or not complaints and appeals relate to the business or authority of City of Beaumont, (2) ensuring that aresponse to all complaints and City of Beaumont, Texas 26 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines appeals are within the appropriate time frame (a response must be provided within 15 working days of the receipt of the complaint), and (3) ushering all complaints and appeals through to a resolution. The City of Beaumont has a Grievance and Appeals policy that addresses handling incoming complaints, including a complaint escalation process in order to ensure that complaints are handled at the earliest stage in the process. Documentation Documentation for each complaint or appeal must be maintained. Each file must include the following: ❑ Contact information for the complainant; ❑ Initial complaint; ❑ Address and assigned project number (ifapplicable); ❑ Any communications to and from complainant or appellant; ❑ Results of the investigation, together with any notes,:letters, or other•investigative documentation; ❑ The date the complaint or appeal was closed; and',. ❑ Any other action taken. '. Affirmative Marketing/Fair' Housing The City of Beaumont shall ensure that no persbri'shall~on the ground ,of race, color, national origin, religion, sex, sexual orientation, age, familial status, or disabilitybeexcluded from participation in, be denied the bend ts•of, or be subjected to. discrimination"under or be denied access to the CDBG Disaster Recovery Program. Marketing will occur andfeferrals will be accepted through the City of Beaumontand in coordination with local non-profit and community-based organizations.'TheCity of Beaumont will take additional measures to affirmatively market the CDBCi Disaster'Recovery Program, as follows: 1. The City of.Beaurnonfwill make the program accessible to persons who are considered members of a protected. class under the Fair Housing Act by holding informational meetings in buildings that-arecomphafit�withthe Americans with Disabilities Act (ADA), provide sign language assistance when requested, and provide special assistance for those who ar`e.,Zually impaifed'when requested. 2. The City of Beaumont will make all efforts to communicate, both orally and in writing, in appropriate -languages to affected residents. 3. The City of Beaumont will provide reasonable accommodations as needed to make the program accessible to people with disabilities. 4. The City of Beaumont wiltreiain documentation ofall marketing measures used, including copies of all advertisements and announcements that will be available for public viewing upon request. 5. The City of Beaumont will use the Fair Housing logo in advertising, post Fair Housing posters and related information, and, in general, inform the public of its rights and obligations under Fair Housing regulations. The City of Beaumont will engage community members in the targeted buyout areas as well as those in potentially impacted, adjacent communities to gather stakeholder input, disseminate important program information, and to answer questions. See Community Engagement and Marketing Plan for further details. City of Beaumont, Texas 27 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Coordinated Housing Strategy The City of Beaumont's Buyout Program will strive to coordinate with partners across the city to mitigate the reduction of housing lost as result of buyouts with complimentary housing production including but not limited to the new construction and rehabilitation of replacement housing in areas of the City that provide access to work, school and social services, as well as proximity to transit. The goals established in other City of Beaumont Disaster Recovery programs will seek to provide an equal or greater amount of new or rehabilitated housing units to offset the number of homes removed from the city's housing stock as aresult of the buyout program. Compliance and Monitoring The City of Beaumont will establish a monitoring/oversight program to ensure that buyout assistance is being provided to eligible owners, for eligible properties, and receiving the proper assistance amounts. The city will also ensure that all properties are being added to the maintenance schedule and that all properties are being maintained to standard. Conflict of Interest No employee, agent, or officer, who exercises decision-making responsibility with respect to CDBG=DR funds and activities, is allowed to obtain a financial interest in or benefit from CDBG- DR activities, or have a financial interest in any contract, subcontract, or agreement regarding those activities or in the proceeds of the activities. The buyout program'will establish safeguards to prohibit employees, officers, and agents from using their position for a purpose that is, or gives the appearance of being, motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties: ' T h e "City,of Beaumont may require disclosure of any potential conflict of interest to.the governing body,ofthe locality, to the recipient's legal counsel, and as otherwise may be appropriate. ' Section 3 The City of Beaumont will adhere to all Section 3 requirements and will perform regular monitoring of any required contractors and -interlocal partne'rs'and their contractor s. Record Retention ,r The buyout program will adhere to the record stricter,of retention*p9licies of either The City of Beaumont, the State of Texas, or HUD for the use' of.CDBG..-DR funds as required by the grant. All official records on programs and;individual activities shall be maintained for at least five -years beyond the closing of th&grant between -the GLO. and HUD. Applicant records may be maintained -electronically. Closeout,,, The City',of\Beaumont will ensure records are complete, that all affordability requirements are adhered to''ah\a that the city has performed"all subrogation monitoring processes. The city will create proj ect`an4rant closeout checklists that will be maintained with the project file. Anti- Fraud and..Compliance Policies The City of Beaumorit,will aggressively investigate all allegations of misconduct, fraud, waste or abuse regarding eligibility.. and the disbursement of award amounts to applicants. City of Beaumont, Texas 28 Disaster Recovery Buyout Program Guidelines Disaster Recovery Voluntary Buyout Program Guidelines Contact Website: www.BeaumontTexas. gov Email: Adina.Josey,BeaumontTexas.gov Phone Number: 409-880-3100 The provisions of the guidebook may be amended or exceptions granted from time to time, as determined and approved in writing by the Director of the City of Beaumont Planning and Community Development ... Department, by order ofthe City of Beaumont, and/or in accordance with the requirements dictated by the Texas General Land Office, or the U.S. Department of Housing and Urban Development. City of Beaumont, Texas 29 Disaster Recovery Buyout Program Guidelines