HomeMy WebLinkAboutPACKET DEC 18 2001 K,
City of Beaunwnt
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS DECEMBER 18, 2001 1:30 P.M.
AGENDA
OPENING
• Invocation Pledge Roll Call
• Presentations and Recognition
Public Comment: Persons may speak on scheduled agenda items
* Consent Agenda
GENERAL BUSINESS
1. Consider authorizing the City Manager to execute an Industrial District Contract with
ExxonMobil Oil Corporation
2. Consider authorizing the City Manager to execute an Industrial District Contract with
Entergy Gulf States, Inc.
3. Consider a resolution authorizing the submittal of two additional projects to the South
East Texas Regional Planning Commission - Metropolitan Planning Organization
(SETRPC-MPO) as candidates for selection and inclusion into the JOHRTS
Metropolitan Transportation Plan - 2025 (MTP-2025)
4. Consider adoption of the 2000 Edition of the International Residential Code for
One-and-Two-Family Dwellings, with amendments, for use as the code that governs
residential construction, effective January 1, 2002
5. Consider approving an ordinance exercising the City's option to continue taxing leased
motor vehicles for personal use
6. Consider approving the purchase of vehicles through the State of Texas Cooperative
Purchasing Program
7. Consider approving funding for the Chamber of Commerce for economic development
purposes
8. Consider approving an annual contract for grounds maintenance and litter removal
services
WORK SESSION
* Report from the Partnership of Southeast Texas
COMMENTS
• Councilmembers comment on various matters
• City Manager's Report - FY 2002 Budget Document, Partnership In Governance, 20/25
Transportation Plan, 2002 HUD Consolidated Grant Program, City Website
Additions and Japanese Visitors At Fire Training Center
• Public Comment (Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
International Association of Firefighters Local 399 labor agreement
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids
or services are requested to contact Kyle Hayes at 880-3716 a day prior to the meeting.
1
Council consider authorizing the City Manager to execute an Industrial District Contract with
ExxonMobil Oil Corporation
Cit y of Beaumont
� c
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 14, 2001
REQUESTED ACTION: Consider authorizing the City Manager to execute an Industrial
District Contract with ExxonMobil Oil Corporation.
RECOMMENDATION
The Administration recommends approval of a resolution authorizing the City Manager to
execute an Industrial District Contract with ExxonMobil Oil Corporation.
BACKGROUND
Industrial District Contracts enable the City to collect payments in lieu of taxes from industries
located outside the city limits.
The City currently has a contract with ExxonMobil Oil Corporation that will expire December 31,
2001. The new contract with ExxonMobil will be effective January 1, 2002. The in-lieu of tax
payment will be based on a ratio of 75% of property taxes due to the City as if the industry were
located within the city limits in 2002, 77.5% of property taxes due to the City in 2003-2004 and
75% of property taxes due to the City in 2005-2008. The 2002 payment by ExxonMobil will be
in the amount of$7,795,813 based on 75%of the assessed value multiplied by the current tax rate.
ExxonMobil will also make a one-time payment to the City in 2002 in the amount of$804,187 in
consideration of the City of Beaumont disannexing property currently located inside the city limits
for the construction of an electric co-generation facility upon property adjacent to the ExxonMobil
Refinery. Payments will be due to the City by February the I" of each year.
A copy of the draft agreements are attached for your review. The only change which will be made
is on page six of the main agreement. No part of the value of the electric co-generation facility
will be included within the assessed value of Company's properties for purposes of this agreement
for a period of 36 consecutive months after construction commences. After such 36-month period,
the value of the co-generation facility will be added to the Company's assessed value at a rate of
20% of such value each year for two years and 30% of value the last two years. Under this
scenario, no payments in lieu of taxes would be due on the co-generation plant for the first three
years. After that period, 20% of the assessed value of the co-generation facility will be added to
ExxonMobil's total assessed value in Year 4, 40% in Year 5, 70% in Year 6 and 100% in Year
7. This change has been discussed with the Plant Manager of ExxonMobil.
BUDGETARY IMPACT
Industrial payments are estimated to total$11,728,700 in FY 2002 which are approximately 17%
of the General Fund revenues. ExxonMobil's total payment of$8,600,000 is 73%of the budgeted
amount for industrial payment revenue.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director.
RECOMMENDED MOTION
Approve/Deny authorizing the City Manager to execute an Industrial District Contract with
ExxonMobil Oil Corporation.
THE STATE OF TEXAS DRAFT
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code.
The parties to the Agreement are the City of Beaumont, a municipal corporation
and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and
ExxonMobil Oil Corporation, its parent, subsidiaries, and affiliates, and Wilmington
Trust Company, GE Capital/State Street Bank and Trust, hereinafter called
"COMPANY."
PREAMBLE
WHEREAS, Company owns land and improvements which are part of the
manufacturing, industrial, and refining facilities of said Company. The City has
established an industrial district comprising a certain part of the extra-territorial
jurisdiction of the City, such industrial district being known as the City of Beaumont
Industrial District.
WHEREAS, the Company recognizes the benefits of this Agreement and an
obligation to contribute to the revenue needs of said City in an amount commensurate
with the burdens placed upon the City and benefits derived by the Company by reason of
being located immediately adjacent to said City.
WHEREAS, the Company and the City desire to base the industrial district
payment on assessed value to ensure equity among the companies.
I
In view of the above and foregoing reasons, and in consideration of the mutual
agreements herein contained, Company and City hereby agree as follows:
ARTICLE I
COMPANY'S OBLIGATIONS
Annual Payment of Company's Property
1. Commencing with the calendar year 2002 and each calendar year thereafter for
the duration of this Contract, the Company will pay the City a certain sum which will be
computed on the assessed value of the Company's facilities and property, real, personal,
and mixed located on Company's land covered by this contract. (Herein "the
properties").
2. By the term "Assessed Value" is meant the 100% valuation of the Company
properties, as determined by the Jefferson County Appraisal District for the previous tax
year.
3. The term "assumed City taxes due" shall be calculated by the following formula:
Assumed City Taxes Due:
Assessed Value/ 100 X Current City Tax Rate =Assumed City Tax Due
4. Payment Procedures
The procedures for determining and making such payments shall be as follows:
(a) The payment for 2002 shall be in the amount of$7,795,813 and shall be
due and payable on or before February 1, 2002, and calculated as follows:
2
Assumed City Taxes due:
$1,636,916,240 /100 X 0.635 = $10,394,418
Year 1 75% of Assumed City Taxes Due = $7,795,813
The total payment in Year I is $7,795,813. Each October thereafter, the Finance Officer
shall obtain the most recent assessed values as set by the Jefferson County Appraisal
District for the Company's properties, real, personal and mixed, having taxable situs
within the areas described in this agreement; for example, in October 2002, the 2002
assessed values shall be used for the February 1, 2003 payment. This assessed value less
exclusion as described in Article 10 shall be used in the calculation for the payment.
If the assessed values for the period required are in question and/or under
litigation with the Jefferson County Appraisal District, payment shall be computed on the
most recent certified values from the Jefferson County Appraisal District. The Company
shall notify the City following resolution of the appraised value question and an
adjustment for the payment, without interest, will be made within thirty (30) days
following such resolution.
(b) After the assessed value of the Company's properties have been determined,
the payments due hereunder shall be calculated in accordance with the following
schedule:
The 2003 payment shall be 77.5% of assumed City taxes due, except such
payment shall not exceed or be less than $8,600,000 by 10%.
The 2004 payment shall be 77.5% of assumed City taxes due, except such
payment shall not exceed or be less than the previous year's payment by 10%.
3
The 2005-2008 payments shall be 75% of assumed City taxes due except the
payment shall not exceed or be less than the previous year's payment by 7%.
(c) City hereby agrees to bill Company for its payments due hereunder on or
before January 1 each year. Company shall pay to City the amount billed on or before
February 1 each year. Upon receiving the final payment, the Finance Officer shall issue
an official receipt of said City acknowledging full, timely, final and complete payment
due by said Company to City for the property involved in this Agreement for the year in
which such payment is made. If payment is not made on or before any due date, the same
penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City
AS
-eAtd would be collectible in the case of delinquent ad valorem taxes. Further, if payment
is not timely made, all payments which otherwise would have been paid to the City had
Company been in the City limits of City will be recaptured and paid to the city within 60
days of any such event.
ARTICLE II.
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument
shall govern and affect the properties of Company (facilities, real, personal, and mixed)
located on Company's real property more particularly described in Exhibit "A" hereto,
which are within the extra-territorial jurisdiction of the City of Beaumont.
ARTICLE III.
SALE BY COMPANY
Company shall notify City of any sale of any or all of Company's facilities to any
person or entity. It is the intent of the parties that no sale of any of Company's facilities
4
will affect the amount to be paid to the City as provided under this Agreement.
Accordingly and as to payments due under this contract no such sale shall reduce the
amount due the City under this contract until the purchaser of such facility has entered
into a contract in lieu of taxes with the city that provides for a continuation of like
payments to the City.
ARTICLE IV.
CITY'S OBLIGATIONS
1. City agrees that it will not annex, attempt to annex or in any way cause or
permit to be annexed any portion of lands or facilities or properties of said Company
covered by this Agreement for the period of the agreement except as follows:
(a) If the City determines that annexation of all or any part of the properties
covered by this Agreement belonging to said Company is reasonably necessary to
promote and protect the general health, safety and welfare of persons residing within or
adjacent to the City, the City will notify Company in accordance with State law of the
proposed annexation. In the event of such annexation, Company will not be required to
make further payment under this Agreement for any calendar year commencing after
such annexation with respect to the property so annexed, but shall nevertheless be
obligated to make full payment for the year during which such annexation becomes
effective if the annexation becomes effective after January 1 st of said year.
(b) In the event any municipality other than the city attempts to annex separately
or in the event the creation of any new municipality shall be attempted so as to include
within its limits any land which is the subject matter of the Agreement, City shall, with
the approval of Company, seek immediate legal relief against any such attempted
5
annexation or incorporation and shall take such other legal steps as may be necessary or
advisable under the circumstances with all cost of such action being borne equally be the
City and by the said Company or companies with the Company's portion allocated on the
basis of assessed values.
2. The City further agrees that during the term of this agreement, there shall not
be extended or enforced as to any land and property of Company within said City of
a"y
Beaumont Industrial District, rules, regulation, or any other actions: (a) seeking in
any way to control the platting and subdivisions of land, (b) prescribing any buildings,
electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or
control in any way the conduct of Company's activities, facilities, or personnel thereof.
3. It is understood and agreed that during the term of this agreement or any
renewals thereof, the City shall not be required to furnish any municipal services to
Company's property located within the City of Beaumont Industrial District; provided,
however, City agrees to furnish fire protection to Company should such protection be
requested by Company in the event an unusual emergency situation occurs.
4. Company currently desires to construct an electric co-generation facility upon
property adjacent to the ExxonMobil Refinery, and described in Exhibit "B" of this
Agreement. No part of the value of such facility will be included within the assessed
value of Company's properties for purposes of this agreement for a period of� `fom'
WAI iQ;�RUr 414$
consecutive months after construction commences. After such
month period, the value of the co-generation facility will be added to the Company's
33.3
assessed value at a rate of,2,@% of such value each year.
6
° rex;;;!Ts—ec1 value o -
5,
33.37-
due. Such 2VX6 annual additions would cease when 100% of the assessed
value of the co-generation facility was added to Company's assessed value for purposed
of this agreement. It is understood that when 100% of the assessed value of the co-
generation facility has been added to Company's assessed value, the payment procedures
enumerated in Article I, 4 (b) will apply.
ARTICLE V.
TERMINATIION OR BREACH 1
It is agreed by the parties to thisAgreement that only full, complete and faithful IM_J
performance of the terms hereof shall satisfy the rights and obligations assumed by the
parties and that therefore, in addition to any action at law for damages which either party
may have, Company shall be entitled to enjoin the enactment or enforcement of any
ordinance or charter amendment in violation of, or in conflict with, the terms of this
Agreement and shall be entitled to obtain such other equitable relief including specific
performance of the Agreement, as is necessary to enforce its rights. It is further agreed
that should this Agreement be breached by Company, the City shall be entitled, in
addition to any action at law for damages, to obtain specific performance of this
Agreement and such other equitable relief necessary to enforce its rights.
ARTICLE VI.
AFFILIATES
The benefits accruing to Company under this Agreement shall also extend to
Company's "affiliates" and to any properties owned or acquired by said affiliates within
the area described in Exhibit "A" to this Agreement, and where reference is made herein
to land, property and improvements owned by Company, t4tm ImW alse-in&64e 4rmd,
that shall also include land, property
and improvements owned by its affiliates. The word "affiliates" as used herein shall
mean all companies with respect to which Company directly or indirectly, through one or
more intermediaries at the time in question, owns or has the power to exercise the control
over fifty percent (50%) or more of the stock having the right to vote for the election of
directors.
ARTICLE VII.
TERM OF AGREEMENT
The term of this Agreement shall be for seven (7) years, commencing January 1,
2002, and ending on December 31, 2008.
ARTICLE VIII.
CONTRACT REOPENERS
Either party, by giving written notice to the other party a minimum of one
hundred twenty (120) days prior to the end of the 5th year of this contract may reopen for
negotiation any portion or all of this agreement for the years 2007 and 2008.
8
ARTICLE IX.
NOTICES
Any notice provided for in this Contract, or which may otherwise be required by
law shall be given in writing to the parties hereto by Certified Mail addressed as follows:
TO CITY TO COMPANY
City Manager ExxonMobil Oil Corporation
City of Beaumont Manager, Property Tax Division
801 Main P. O. Box 53
P. O. Box 3827 Houston, Texas 77001-0053
Beaumont, Texas 77704
ARTICLE X.
EXCLUSIONS
1. In determining the assessed value of the Company facilities there is to be
excluded therefrom the value of any new plant facilities or modernization of or additions
that significantly increase the assessed value of Company's properties. Except that the
value of a proposed co-generation facility will be included in assessed value in
accordance with paragraph IV 4. "Significantly increase" shall be defined as an increase
in assessed value of ten percent (10%) or more above the prior year's assessed value on
realty improvements for the specific plant facility. "Specific plant facility" shall mean
any one of the following: the Beaumont Refinery (including GE Capital/State Street Bank
and Trust), Olefin & Aromatics Plant (including Wilmington Trust Company),
Polyethylene Plant, Beaumont Chemical Specialty Plant, Blending and Packaging Plant,
or the Neches River Treatment Facility. This exclusion will be restricted to include only
a new and distinct processing facility, or modernization of or additions to present
facilities, and shall not include the maintenance, reconditioning, replacement, upgrading,
9
refurbishing or repairing of existing process facilities. The intent of this exclusion is to
encourage major new capital investment within the extraterritorial environs of the City.
Determination of qualifications for this exclusion shall be made by the City Manager
upon petition by Company and presentation of all pertinent data.
Company shall notify the City Manager of its intention to claim an exclusion at
least one hundred twenty (120) days prior to the end of the calendar year prior to the year
in which the exclusion will take place. Subject to the upper and lower limitations on
payments set out in Article 14 (b) hereof Company agrees that to whatever extent that the
non-excluded plant's assessed value on realty improvements is reduced for whatever
.(�o wn
reason (exception form fire, explosion, or other casualty or accident or from any natural
disaster), an equivalent amount (dollar for dollar) of assessed value on realty
improvements of the excluded facilities shall be deemed for the purposes of the
agreement to lose its exclusion for the current year and accordingly shall be deemed to be
included in the non-excluded plant's total assessed value and payments shall be calculated
and made by Company thereon to City for the subsequent year, however, in no event
shall the offset exceed the fair market value of the realty improvements that would
otherwise be excluded. Company agrees to provide the City Manager with all the
information necessary to the City Manager to determine whether the expenditure by the
Company is qualified for exclusion.
The exclusion shall commence the first calendar year following the completion of
construction and it shall be in the amount of 100% for the first, second, and third years,
75% of value for the fourth and fifth years, and 50% of value for the remaining years of
this contract.
10
2. In determining the assessed value of the Company's facilities, there is also to
be excluded therefrom the value of incomplete construction also known as construction in
progress. This exclusion applies to new and distinct plant facilities or modernization of
or additions to present facilities as specified in item (1) above, regardless of whether such
will significantly increase the assessed values of Companies properties.
3. If a question arises relating to the exclusion amount, payment shall be made
based on the last Certified assessed value, without the questioned exclusion. An
adjustment to the payment, if any, shall be made following resolution of the question.
The determination concerning whether a capital expenditure by Company is qualified for
exclusion hereunder shall be made by the City Manager. Any appeal of the decision of
the City Manager shall be made in writing to the City Council within fifteen (15) days of
the decision of the Manager. The decision of the City Council shall be final.
If this Agreement shall be held invalid by any court of competent jurisdiction,
such holding shall not affect the right of City to any payment made or accruing to City
hereunder prior to such adjudication, and this provision is intended to be an independent
and separable provision not to be affected by such adjudication.
11
IN WITNESS THEREOF, this Agreement, consisting of 11 pages plus Exhibits
"A" and "B", is executed in duplicate counterparts as of this day of
2001.
CITY OF BEAUMONT, TEXAS
By:
Stephen J. Bonczek
City Manager
ATTEST:
Barbara Liming
City Clerk
EXXONMOBI OIL CORPORATION
By:
o
ATTTTEST:
YlS�t
SANDYNEWMAN
MY COMMISSION EXPIRES
November 8,2005
12
THE STATE OF TEXAS DRAFT
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is made under the authority of Section 43.142 of the Texas Local
Government Code and the charter of the City of Beaumont, Texas.
The parties to this Agreement are the City of Beaumont, a municipal corporation
and a home-rule city located in Jefferson County, Texas, hereinafter called "City," and
ExxonMobil Oil Corporation, its parent, subsidiaries and affiliates, and Wilmington Trust
Company and GE Capital/ State Street Bank and Trust, hereinafter called "Company."
OBJECTIVE
The parties are entering into this Agreement for the purposes of(a) disannexing
from the jurisdiction of the City of Beaumont certain properties of the Company
hereinafter described (sometimes referred to as the "Properties"), (b) preventing
reannexation by the City of Beaumont of the Properties for the term of this Agreement,
and (c) providing for consideration to the City of Beaumont for the disannexation of the
Properties.
ARTICLE I.
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument
shall govern and affect the properties of Company (facilities, real, personal, and mixed)
located on Company's real property more particularly described in the Exhibit hereto,
which are within the jurisdiction of the City of Beaumont.
1
ARTICLE 1I.
COMPANY'S OBLIGATION
The Company shall pay $804,187 in total, due and payable on or before February
1, 2002, to the City in consideration of the performance of the City's obligations ("City's
Obligations") described hereinafter.
ARTICLE 111.
CITY'S OBLIGATIONS
1. City agrees to disannex any portion of lands or facilities or properties of
the Company covered by this Agreement and described in the Exhibit hereto within one
hundred and eighty (180) days of the execution of this Agreement.
2. City agrees that it will not reannex, attempt to reannex or in any way cause
or permit to be reannexed any portion of lands or facilities or properties of the Company
covered by this Agreement for the term of the Agreement except as follows:
(a) If the City determines that reannexation of all or any part of the properties
covered by this Agreement belonging to the Company is reasonably necessary to promote
and protect the general health, safety and welfare of persons residing within or adjacent
to the City, the City will notify Company in accordance with State law of the proposed
reannexation.
(b) In the event any municipality other than the city attempts to annex
separately or in the event the creation of any new municipality shall be attempted so as to
include within its limits any land which is the subject matter of the Agreement, City shall,
with the approval of Company, seek immediate legal relief against any such attempted
annexation or incorporation and shall take such other legal steps as may be necessary or
2
advisable under the circumstances with all cost of such action being borne equally be the
City and by the said Company or companies with the Company's portion allocated on the
basis of assessed values.
3. The City further agrees that there shall not be extended or enforced as to
any land and property of Company disannexed under this Agreement, any rules,
regulation, or any other actions: (a) seeking in any way to control the platting and
subdivision of land, (b) prescribing any buildings, electrical, plumbing or inspection
standards or equipment, or (c) attempting to regulate or control in any way the conduct of
Company's activities, facilities, or personnel thereof.
4. It is understood and agreed that the City shall not be required to furnish
any municipal services to Company's disannexed property for the term of this
Agreement; provided, however, City agrees to furnish fire protection to Company should
such protection be requested by Company in the event an unusual emergency situation
occurs.
ARTICLE IV.
TERMINATION OR BREACH
It is agreed by the parties to this Agreement that only full, complete and faithful
performance of the terms hereof shall satisfy the rights and obligations assumed by the
parties and that therefore, in addition to any action at law for damages which either party
may have, Company shall be entitled to enjoin the enactment or enforcement of any
ordinance or charter amendment in violation of, or in conflict with, the terms of this
Agreement and shall be entitled to obtain such other equitable relief including specific
performance of the Agreement, as is necessary to enforce its rights. It is further agreed
3
that should this Agreement be breached by a party, the other party shall be entitled, in
addition to any action at law for damages, to obtain specific performance of this
Agreement and such other equitable relief necessary to enforce its rights.
ARTICLE V.
AFFILIATES
The benefits accruing to Company under this Agreement shall also extend to
Company's "Affliates" and to any properties owned or acquired by said Affiliates within
the area described in the Exhibit to this Agreement, and where reference is made herein
to land, property and improvements owned by Company, that shall also include land
property and improvements owned by its Affiliates. The word "Affiliates" as used herein
shall mean all companies with respect to which Company directly or indirectly, through
one or more intermediaries at the time in question, owns or has the power to exercise the
control over fifty percent (50%) or more of the stock having the right to vote for the
election of directors.
ARTICLE VI.
TERM OF AGREEMENT
The term of this Agreement shall be for seven years, commencing January 1,
2002, and ending on December 31, 2008.
4
ARTICLE VII.
NOTICES
Any notice provided for in this Contract, or which may otherwise be required by
law shall be given in writing to the parties hereto by Certified Mail addressed as follows:
TO CITY TO COMPANY
City Manager Exxon Mobil Corporation
City of Beaumont Manager, Property Tax Division
801 Main P.O. Box 53
P.O. Box 3827 Houston, Texas 77001-0053
Beaumont, Texas 77704
ARTICLE VIII.
CHOICE OF LAW
The construction, interpretation and performance of this Agreement shall be
governed by the laws of the State of Texas.
5
IN WITNESS THEREOF, this Agreement, consisting of five pages plus
Exhibit, is executed in duplicate counterparts as of this day of
, 2001.
CITY OF BEAUMONT, TEXAS
By:
Stephen J. Bonczek
City Manager
ATTEST:
Barbara Liming
City Clerk
Exxon Mobil Corporation
By: "�-
)2-13-e i
ATTEST:
E �: WDYNEINMAN
�z rF MY COMMISSION EXPIRES
Nwarkw 2005
6
2
Council consider authorizing the City Manager to execute an Industrial District Contract with
Entergy Gulf States, Inc.
1~ City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Ilayes, Economic Development Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 11, 2001
REQUESTED ACTION: Consider authorizing the City Manager to execute an Industrial
District Contract with Entergy Gulf States, Inc.
RECOMMENDATION
The Administration recommends approval of a resolution authorizing the City Manager to
execute an Industrial District Contract with Entergy Gulf States, Inc.
BACKGROUND
Industrial District Contracts enable the City to collect payments in lieu of taxes from industries
located outside the city limits.
The City currently has a contract with Entergy Gulf States, Inc. that will expire December 31,
2001. The new contract with Entergy will be effective January 1, 2002. The in-lieu of tax
payment will be based on a ratio of 80% of property taxes due to the City as if the industry were
located within the city limits in 2002-2004 and 75% of property taxes due to the City in 2005-
2008. The 2002 payment by Entergy will be $56,316. Payments will be due to the City by
February the V of each year.
BUDGETARY IMPACT
Industrial payments are estimated to total$11,728,700 in FY 2002 which are approximately 17%
of the General Fund revenues.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director.
RECOMMENDED MOTION
Approve/Deny authorizing the City Manager to execute an Industrial District Contract with
Entergy Gulf States, Inc.
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
AGREEMENT
This Agreement is made under the authority of Section 42.044 of the Texas Local
Government Code.
The parties to the Agreement are The City of Beaumont, a municipal corporation
and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and
Entergy Gulf States, Inc., hereinafter called "COMPANY."
PREAMBLE
WHEREAS, Company owns land and/or improvements which are a part of the
manufacturing, industrial,and refining facilities of said Company. The City has established
an industrial district comprising a certain part of the extra-territorial jurisdiction of the City,
such industrial district being known as the City of Beaumont Industrial District.
WHEREAS, the Company recognizes the benefits of this Agreement and an
obligation to contribute to the revenue needs of said City in an amount commensurate with
the burdens placed upon the City and benefits derived by the Company by reason of being
located immediately adjacent to said City.
WHEREAS,the Company and the City desire to base the industrial district payment
on assessed value to ensure equity among the companies.
In view of the above and foregoing reasons, and in consideration of the mutual
agreements herein contained, Company and City hereby agree as follows:
ARTICLE I.
COMPANY'S OBLIGATION
Annual Payment on Company's Property
1. Commencing with the calendar year 2002 and each calendar year thereafter for
the duration of this Contract, the Company will pay the City a certain sum which will be
SAKYLE\Entergy Gulf States-8-01.wpd 1 / 7
computed on the assessed value of the Company's facilities property, real, personal, and
mixed located on Company's land covered by this contract. (Herein "the properties")
2. By the term "Assessed Value" is meant the 100% valuation of the Entergy Gulf
States Inc. properties, as determined by the Jefferson County Appraisal District for the
previous tax year.
3. The term "assumed City taxes due"shall be calculated by the following formula:
Assessed Value _ 100 x the current ad valorem tax rate by City
Council of City = Assumed City Taxes due.
4. Payment Procedures
The procedures for determining and making such payments shall be as follows:
(a) The payment for 2002 shall be in the amount of $56,316 and shall be due
and payable on or before February 1, 2002. The February 1, 2002 payment is calculated
as follows:
Assumed City Taxes Due:
$11,085,850 / 100 X 0.635 = $70,395
Year 1 80% of Assumed City Taxes Due = $56,316
Each October thereafter,the Finance Officer shall obtain the most recent assessed
values as set by the Jefferson County Appraisal District for the Company's properties, real,
personal and mixed, having taxable situs within the areas described in this agreement;for
example, in October, 2003, the 2003 assessed values shall be used for the February 1,
2004 payment.
If the assessed values forthe period required are in question and/or under litigation
with the Jefferson County Appraisal District, payment shall be computed on the most
SAKYLEIEntergy Gulf States-8-01.wpd 2 / 7
recent certified values from the Jefferson County Appraisal District. The Company shall
notify the City following resolution of the appraised value question and an adjustment for
the payment,without interest,will be made within thirty(30)days following such resolution.
(b) After the assessed value of the Company's properties have been determined,
the payment to City shall be 80% of assumed City taxes for the years 2003 and 2004 and
75% of assumed City taxes for the years 2005, 2006, 2007 and 2008.
(c) City hereby agrees to bill Company for its payments due hereunder on or before
January 1 each year. Company shall pay such amount to City on or before February 1
each year. Upon receiving the final payment, the Finance Officer shall issue an official
receipt of said City acknowledging full, timely, final and complete payment due by said
Company to City for the property involved in this Agreement for the year in which such
payment is made. If payment is not made on or before any due date, the same penalties,
interest, attorneys' fees and costs of collection shall be recoverable by the City as would
be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely
made, all payments which otherwise would have been paid to the City had Company been
in the City limits of City will be recaptured and paid to the City within 60 days of any such
event.
ARTICLE II.
PROPERTY COVERED BY AGREEMENT
This instrument will reflect the intention of the parties hereto that this instrument
shall govern and affect the properties of Company (facilities, real, personal, and mixed)
located on Company's real property more particularly described in Exhibit"A"hereto,which
are within the extra-territorial jurisdiction of the City of Beaumont.
S:\KYLE\Entergy Gulf States-8-01.wpd 3 / 7
ARTICLE III.
SALE BY COMPANY
Company shall notify City of any sale or transfer of any or all of Company's facilities
to any person or entity. As to payments due under this contract no such sale or transfer
shall reduce the amount due the City under this contract until the purchaser or recipient
of such facility has entered into a contract in lieu of taxes with the City that provides for a
continuation of payments to the City as if no such sale or transfer had been made. It is the
intent of the parties that no sale or transfer of any of Company's facilities will affect the
amount to be paid to the City under this Agreement.
ARTICLE IV.
CITY'S OBLIGATIONS
1. City agrees that it will not annex, attempt to annex or in anyway cause or permit
to be annexed any portion of lands or facilities or properties of said Company covered by
this Agreement for the period of the agreement except as follows:
(a) If the City determines that annexation of all or any part of the properties
covered bythis Agreement belonging to said Company is reasonably necessaryto promote
and protect the general health, safety and welfare of persons residing within or adjacent
to the City, the City will notify Company in accordance with State law of the proposed
annexation. In the event of such annexation, Company will not be required to make further
payment under this Agreement for any calendar year commencing after such annexation
with respect to the property so annexed, but shall nevertheless be obligated to make full
payment for the year during which such annexation become effective if the annexation
becomes effective after January 1 st of said year.
(b) In the event any municipality other than the City attempts to annex separately
or in the event the creation of any new municipality shall be attempted so as to include
within its limits any land which is the subject matter of this Agreement, City shall,
SAKYLE\Entergy Gulf States-8-01.wpd 4 / 7
with the approval of Company, seek immediate legal relief against any such attempted
annexation or incorporation and shall take such other legal steps as may be necessary or
advisable under the circumstances with all cost of such action being bome equally by the
City and by the said Company or Companies with the Company's portion allocated on the
basis of assessed values.
2. The City further agrees that during the term of this agreement,there shall not be
extended or enforced as to any land and property of Company within said City of
Beaumont Industrial District,any rules, regulations,or any other actions: (a)seeking in any
way to control the platting and subdivisions of land, (b)prescribing any buildings, electrical,
plumbing or inspection standards or equipment, or (c) attempting to regulate or control in
any way the conduct of Company's activities, facilities or personnel thereof.
3. It is understood and agreed that during the term of this agreement or any
renewals thereof, the City shall not be required to furnish any municipal services to
Company's property located within the City of Beaumont Industrial District; provided,
however, City agrees to furnish fire protection to Company should such protection be
requested by Company in the event an unusual emergency situation occurs.
ARTICLE V.
TERMINATION OF BREACH
It is agreed by the parties to this Agreement that only full, complete and faithful
performance of the terms hereof shall satisfy the rights and obligations assumed by the
parties and that, therefore, in addition to any action at law for damages which either party
may have, Company may enjoin the enactment or enforcement of any ordinance or charter
amendment in violation of, or in conflict with, the terms of this Agreement and may obtain
such other equitable relief, including specific performance of the Agreement, as is
necessary to enforce its rights. It is further agreed that should this Agreement be breached
by Company, the City shall be entitled, in addition to any action at law for damages, to
S:\KYLE\Entergy Gulf States-8-0I mN 5 / 7
obtain specific performance of this Agreement and such other equitable relief necessary
to enforce its rights.
ARTICLE VI.
AFFILIATES
The benefits accruing to Company under this Agreement shall also extend to
Company's "affiliates"and to any properties owned or acquired by said affiliates within the
area described in Exhibit "A" to this Agreement, and where reference is made herein to
land, property and improvements owned by Company,that shall also include land,property
and improvements owned by its affiliates. The word "affiliates" as used herein shall mean
all companies with respect to which Company directly or indirectly, through one or more
intermediaries at the time in question, owns or has the power to exercise the control over
fifty percent(50%)or more of the stock having the right to vote for the election of directors.
ARTICLE VII.
TERM OF AGREEMENT
The term of this Agreement shall be for seven (7) years, commencing January 1,
2002, and ending on December 31, 2008.
ARTICLE VIII.
NOTICES
Any notice provided for in this Contract, or which may otherwise be required by law
shall be given in writing to the parties hereto by Certified Mail addressed as follows:
TO CITY TO COMPANY
City Manager President
City of Beaumont Entergy Gulf States Inc.
801 Main P.O. Box 2951
P. O. Box 3827 Beaumont, Texas 77704-2951
Beaumont, Texas 77704
If this Agreement shall be held invalid by any court of competent jurisdiction, such
holding shall not affect the right of City to any payment made or accruing to City hereunder
SAKYLE\Entergy Gulf States-8-01.wpd 6 / 7
prior to such adjudication, and this provision is intended to be an independent and
separable provision not to be affected by such adjudication.
IN WITNESS THEREOF, this Agreement, consisting of 7 pages plus Exhibit "A",
is executed in duplicate counterparts as of this day of ,
2001.
CITY OF BEAUMONT, TEXAS
By:
Stephen J. Bonczek
City Manager
ATTEST:
Barbara Liming
City Clerk
Entergy Gulf States Inc.
By:
ATTEST:
S:\KYLE\Entergy Gulf States-8-01.wpd 7 / 7
3
Council consider a resolution authorizing the submittal of two additional projects to the South
East Texas Regional Planning Commission- Metropolitan Planning Organization (SETRPC-
MPO) as candidates for selection and inclusion into the JOHRTS Metropolitan Transportation
Plan- 2025 (MTP-2025)
City of Beaumont
Council Agenda Item
M g
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Mark Horelica, Transportation Manager
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 11, 2001
REQUESTED ACTION Council consider a resolution authorizing the submittal of two (2)
additional projects to the South East Texas Regional Planning
Commission -Metropolitan Planning Organization(SETRPC-MPO)
as candidates for selection and inclusion into the Jefferson, Orange,
Hardin Regional Transportation Study (JOHRTS) Metropolitan
Transportation Plan - 2025 (MTP-2025).
RECOMMENDATION
Administration recommends authorization to submit two (2) candidate projects to the SETRPC for
inclusion in the JOHRTS MTP-2025, in addition to the seven(7)projects previously authorized by
Council on November 27, 2001.
BACKGROUND
The SETRPC-MPO provides direct input for project submittal to Federal and State funding
categories. Projects will be evaluated and scored by the JOHRTS Technical Advisory Committee.
These scores and project readiness results will be used to determine when and if projects will be
included in the financially constrained components of the MTP.
In order to spend Federal dollars on local transportation projects and programs,a metropolitan aria
must have a metropolitan transportation plan and a transportation improvement program.
The MTP's financially constrained component constitutes projects that have identifiable funding
sources during the MTP planning horizon-(normally 1 to 20 years). The JOHRTS Technical
Committee will review and approve the project ranking and list as appropriate for inclusion in the
MTP and upon adoption will be included.
In addition to the seven(7)projects already approved by City Council,the following two(2)projects
are recommended for submittal to the SETRPC:
• Mass Transit Fleet Replacement ($6.2 million) -
The purchase of twenty(20)alternatively fueled buses to replace the existing fleet of
diesel powered buses.
• Alternative Fuel Station($250,000) -
The construction of an alternative fuel station at the present Transit maintenance
facility located at Park and Milam Streets.
BUDGETARY IMPACT
Eighty percent (80%) of the project will be provided by Federal, State and Local sources, with the
Federal sources providing the largest portion (77%). The remaining 20% will be provided by the
local sponsor(City).
PREVIOUS ACTION
Council approved by resolution the submittal of seven(7) projects on November 27, 2001.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director, City Engineer and Transportation Manager
RECOMMENDED MOTION
Approve/Deny amending resolution authorizing the submittal of two (2) additional projects to the
SETRPC-MPO and upon inclusion into the Metropolitan Transportation Plan, committing the City
to a twenty percent (20%) participation in the project cost.
J011RTSMPOcg.WPD
December 11,2001
4
Council consider adoption of the 2000 Edition of the International Residential Code for One-and-
Two-Family Dwellings, with amendments, for use as the code that governs residential
construction, effective January 1, 2002
Qi C it y of Beaumont
Council A enda Item
A K g
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Don Burrell, Building Official
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 7, 2001
REQUESTED ACTION: Council adopt the 2000 Edition of the International Residential Code
for One-and-Two-Family Dwellings, with amendments, for use as
the code that governs residential construction, effective January 1,
2002.
RECOMMENDATION
Administration recommends Council adopt the 2000 Edition of the International Residential Code
for One-and-Two-Family Dwellings,with amendments,for use as the code that governs residential
construction, effective January 1, 2002.
BACKGROUND
Senate Bill 365, which was signed into law by Governor Perry adopts the 2000 International
Residential Code as the residential building code for the State of Texas. The Senate Bill was
sponsored in the House of Representatives by Allen Ritter and was endorsed by the National
Association of Homebuilders, the Texas Association of Builders, and the Homebuilders
Association of Southeast Texas. The law takes effect January 1, 2002, and allows for local
amendments. A group of homebuilders, building suppliers, architects and engineers was formed
to formulate local amendments. A public hearing was held in Council Chambers on November
28, 2001, and there were no objections to the amendments.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director, and Building Official.
RECOMMENDED MOTION
Approve/Deny an ordinance adopting the 2000 Edition of the International Residential Code for
One-and-Two Family dwellings with/without amendments, effective January 1, 2002.
IRCadoptionsk.wpd
December 11, 2001
ARTICLE IX. RESIDENTIAL BUILDING CODE
Sec.6-173.Adopted
The 2000 Edition of the International Residential Code for One and Two Family Dwellings(IRC),
including Appendices G and J is hereby adopted and declared operative as the residential building code
of the city, save and except those portions that are deleted, modified, or amended by this Code of
Ordinances. A copy of such code is on file in the office of the City Clerk.
Sec.6-174.Code amendments,modifications and deletions.
Section R105.2 Delete exemption for permit requirements for detached buildings less than 200 square
feet, fences not over 6 feet high, and sidewalks and driveways.
Section R108.2 Schedule of permit fees is amended to read: Appendix B of the 1997 Standard
Building Code is adopted as the permit fee schedule.
Section R112.2.2 Criteria for issuance of a variance for areas prone to flooding is deleted.
Section R301.2.1.1 Design Criteria is amended to read: The Southern Building Code Congress
International Standard for Hurricane Resistant Residential Construction SSTD 10-99 is adopted for use.
Cold-formed steel construction shall be designed in accordance with the provisions of this code.
Section R403.1.3.2 Slabs-on-ground with turned-down footings is amended to read: Slabs-on-
ground with turned down footings shall have a minimum of two No.4 bars at the top and at the bottom
of the footing. Exception is deleted.
Section M105.1 General has the following sentence amended to read: Exhaust ducts shall be
constructed of minimum 0.016-inch-thick rigid metal ducts, or schedule 40 PVC when used in concrete
slabs and not exceeding 25 feet,having smooth interior surfaces with joints running in the direction of
air flow.
Section P2903.8.7 Hose bibb bleed is deleted.
Section P2904.5.1 Under concrete slabs is amended to read: Inaccessible water distribution piping
under concrete slabs shall be copper water tube minimum Type L.
Section P3002.1 Piping within buildings is amended to read: Drain, waste and vent piping in
buildings shall be schedule 40 PVC DWV pipe and fitting, cast iron, or copper pipe and fitting.
Section P3002.2 Building sewer is amended to read: Building sewer piping shall be a minimum of 4
inches and conform to P3002.1. Six(6)inch and larger sewer may be SDR 26 or better.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 6, TO
ADD ARTICLE IX ADOPTING A RESIDENTIAL BUILDING
CODE AND AMENDMENTS OF THE CODE OF
ORDINANCES; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEAL; AND PROVIDING A PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That Chapter 6 of the Code of Ordinances of the City of Beaumont be and the same is
hereby amended to add Article IX to read as follows:
ARTICLE IX. RESIDENTIAL BUILDING CODE
Sec. 6-173. Adopted.
The 2000 Edition of the International Residential Code for One and Two
Family Dwellings(IRC), including Appendices G and J is hereby adopted and
declared operative as the residential building code of the city, save and
except those portions that are deleted, modified, or amended by this Code
of Ordinances. A copy of such code is on file in the office of the City Clerk.
Sec. 6-174. Code amendments, modifications and deletions.
The 2000 Edition of the International Residential Code for One and Two
Family Dwellings including Appendices G and J adopted herein is hereby
amended as follows:
SectionR105.2.
Delete exemption for permit requirements for detached buildings less than
200 square feet, fences not over 6 feet high, and sidewalks and driveways.
Section R1O8.2.
Schedule of permit fees is amended to read: Appendix B of the 1997
Standard Building Code is adopted as the permit fee schedule.
Section R112.2.2.
Criteria for issuance of a variance for areas prone to flooding is deleted.
Section R3O1.2.1.1.
Design Criteria is amended to read: The Southern Building Code Congress
International Standard for Hurricane Resistant Residential Construction
SSTD 10-99 is adopted for use. Cold-formed steel construction shall be
designed in accordance with the provisions of this code.
Section R403.1.3.2.
Slabs-on-ground with turned-down footings is amended to read: Slabs-on-
ground with turned down footings shall have a minimum of two No.4 bars at
the top and at the bottom of the footing. Exception is deleted.
Section M1O5.1.
General has the following sentence amended to read: Exhaust ducts shall be
constructed of minimum 0.016-inch-thick rigid metal ducts, or schedule 40
PVC when used in concrete slabs and not exceeding 25 feet, having smooth
interior surfaces with joints running in the direction of air flow.
Section P2903.8.7.
Hose bibb bleed is deleted.
Section P2904.5.1.
Under concrete slabs is amended to read: Inaccessible water distribution
piping under concrete slabs shall be copper water tube minimum Type L.
Section P3002.1.
Piping within buildings is amended to read: Drain, waste and vent piping in
buildings shall be schedule 40 PVC DWV pipe and fitting,cast iron,orcopper
pipe and fitting.
Section P3002.2.
Building sewer is amended to read: Building sewer piping shall be a minimum
of 4 inches and conform to P3002.1. Six (6) inch and larger sewer may be
SDR 26 or better.
Section 2.
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, 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.
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 1-8 of the Code of Ordinances of the City of Beaumont,
Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the 18th day of
December, 2001.
- Mayor -
5
Council consider approving an ordinance exercising the City's option to continue taxing leased motor
vehicles for personal use
V~...... Cit y of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Andrea S. Deaton, Budget Officer
MEETING DATE: December 18, 2001
AGFNDA MEMO DATE: December 12, 2001
REQUESTED ACTION: Approve or deny an ordinance exercising the City's option to
continue taxing leased motor vehicles for personal use.
RECOMMENDATION
Administration recommends the adoption of the ordinance which would exercise the City's
option to continue taxing leased motor vehicles used for personal use.
BACKGROUND
During the 77`h Legislative session, Senate Bill 248 was adopted which amends the Texas
Property Tax Code to allow motor vehicles leased for personal use to be exempt from ad
valorem taxes beginning with the 2002 tax year. There is a provision in this legislation that
allows cities to continue to tax such vehicles if an ordinance is approved prior to December
31, 2001 opting out of the exemption.
BUDGETARY IMPACT
According to the Jefferson County Appraisal District the value of all leased vehicles is
approximately $34 million. Of that, $21 million would qualify for this exemption. Leases prior
to Ja.i. 1, 2001 will not be grandfathered in. It is expected that the value of leased vehicles
will increase in the future as leasing has become the method of choice for many people.
Applying the current tax rate of$0.635 per $100 valuation to the $21 million value of leased
vehicles equates to $133,350 annually.
PREVIOUS ACTION
None.
Leased Vehicle Exemption
December 18, 2001
Page 2
SUBSEQUENT ACTION
None.
RECOMMENDED BY: City Manager and Budget Officer.
RECOMMENDED MOTION: Approve/Deny an ordinance exercising the City's option to
continue taxing leased motor vehicles for personal use.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 25 OF
THE CODE OF ORDINANCES OF THE CITY OF
BEAUMONT, TEXAS, BY ADDING SECTIONS 24-45
PROVIDING FOR THE TAXATION OF LEASED MOTOR
VEHICLES; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR REPEAL.
WHEREAS, the Legislature of the State of Texas has amended Chapter 11 of the
Tax Code by adopting Section 11.252 which exempts from taxation certain leased motor
vehicles; and,
WHEREAS, Tax Code Section 11.252(f) provides that the governing body of a
municipality may, by ordinance adopted before January 1, 2002, provide for the taxation
of leased motor vehicles otherwise exempted from taxation by Tax Code 11.525;
NOW THEREFORE BE IT ORDAINED:
Section 1.
That the Code of Ordinances of the City of Beaumont be, and the same is hereby
amended by adding a section, to be numbered 25-45 to read as follows:
24-45. Taxation of Leased Motor Vehicles
Leased motor vehicles, as defined in Tax Code Section 11.525, leased
within the City of Beaumont, Texas are subject to taxation. The exemption from taxation
provided by Tax Code Section 11.252 shall not apply to such vehicles and shall not apply
to the City of Beaumont as provided in Tax Code Section 11.525.
Section 2.
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
S:\AGENDA\Current Agenda\1 2-1 1-01.wpd
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.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the 11th day of
December, 2001.
- Mayor -
SAAGENDA\Current Agenda\1 2-11-01.wpd
6
Council consider approving the purchase of vehicles through the State of Texas Cooperative
Purchasing Program
City of Beaumont
� K
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 12, 2001
REQUESTED ACTION: Council approval for fleet purchase of vehicles through the State of
Texas Cooperative Purchasing Program.
RECOMMENDATION
Administration recommends authorization for the purchase of vehicles through the State of Texas
Cooperative Purchasing Program.
BACKGROUND
The State of Texas Cooperative Purchasing Program provides contracted prices on various types of
vehicles to all state, counties, school districts and municipal agencies within Texas. There is no
charge or fee assessed to any entity for participation in the purchasing program.
The Cooperative Purchasing Program is coordinated by the General Services Commission(GSC)in
accordance with state bidding statutes. Representatives from the GSC meet with major vehicle
manufacturers each year to discuss the model changes and features offered to major fleet consumers
for the upcoming year vehicle models. Specifications are developed and published in August for
distribution to governmental consumers and statewide vendors. The GSC solicits bids from vendors
throughout the state to furnish pricing on various types of vehicles. These vehicles include compact
size cars, intermediate size sedans, police pursuit vehicles, '/z ton, 3/4 ton and 1 ton light and heavy
duty pickup trucks, vans (cargo and passenger) and medium duty cab and chassis. Specifications
include features such as 4, 6, and 8 cylinder engines, 2 and 4 wheel drive, automatic and manual
transmissions, air conditioning, ABS brake systems and AM/FM radios. Optional features such as
tilt steering, cruise control, spotlights, headache racks, tool boxes, grille guards and heavy duty
bumpers are bid and offered for an additional cost.
Purchase of Vehicles
December 12, 2001
Page 2
Bids are open to any vehicle dealer on the State of Texas Bid List. Due to the volume of vehicles
requested by the State,generous concessions are offered to the dealer from the manufacturers. Bids
are received and evaluated by the GSC. After bids are evaluated, a contracted price list is published
indicating the successful vendor for each type of vehicle and the prices of specific optional features.
Vehicles are selected from the published list and orders are submitted to GSC. Vendors generally
deliver the vehicles within 90 to 120 days.
The City requested twenty-three (23) police pursuit vehicles, three (3) '/z ton extended cab pickup
trucks, two (2) crew cab pickup trucks, three (3) cab and chassis with utility bodies and one (1)
industrial self propelled riding sweeper.
The following list of vehicles represents the type and price of each vehicle to be ordered through the
State:
PURSUIT VEHICLES
Chevrolet Impala 23 $386,066.50
Standard optional equipment available for four (4) door sedans includes air conditioning,
power steering, power door locks, AM/FM radio, cruise control and tilt steering wheel.
% TON EXTENDED CAB, 8 CYLINDER ENGINE FULL SIZE PICKUP TRUCKS
Chevrolet Silverado 3 $49,436.50
CREW CAB, 8 CYLINDER FULL SIZE GASOLINE POWERED PICKUP TRUCK
Ford F350 2 $48,408
Standard optional equipment available for '/z ton extended cab, and full size crew cab
pickup trucks include air conditioning, heavy duty rear bumper, AM/FM radio, power
steering, automatic transmission, spotlight, grille guard, spare wheel and tire, receiver
hitch and bedliner.
Purchase of Vehicles
December 13,2001
Page 3
CAB AND CHASSIS,8 CYLINDER DIESEL POWERED MEDIUM DUTY TRUCKS
Ford F450 1 3 1 $74,782
Standard optional equipment available for the 10,000 and 15,000 lb. Gross Vehicle
Weight Requirement(GVWR) Cab and Chassis include air conditioning, grille guard,
AM/FM radio, spare wheel and tire, automatic transmission, spotlight and various utility
bodies.
SWEEPER-F Tennant 1 $21,903.27
Standard equipment includes a self propelled riding industrial type sweeper.
Replacement vehicles and additions to the fleet are requested through the City's budget process. The
Central Services Department reviews the requests and evaluates the equipment to be replaced. Based
on this evaluation, a recommendation is made to replace worn and obsolete vehicles that are no
longer cost effective to operate. All of the vehicles purchased are replacement vehicles. The units
will replace year models ranging from 1992 to 1995. The newer year models will be relocated to
other divisions. The remaining replaced vehicles will be disposed of according to the City's surplus
property disposal policies.
Warranties of 36,000 miles or three (3) years are provided for each new vehicle. The warranty
service will be provided by local authorized dealerships. The Chevrolet automobiles and light duty
pickup trucks are eligible for a$1,000 discount from a GM fuel tank settlement. This discount will
result in an additional savings of$26,000.
BUDGETARY IMPACT
Funds for vehicles are available in the Capital Reserve Fund, Solid Waste Fund and Water Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Central Services Director.
Purchase of Vehicles
December 13,2001
Page 4
RECOMMENDED ACTION
Approve/Deny the purchase of vehicles in the amount of$580,596.27 through the State of Texas
Cooperative Purchasing Program,
Purchase of Vehicles
December 13, 2001
Page 5
DEPARTMENT DIVISION DESCRIPTION QUANTITY FTOTAL PRICE
Police Department
Administration Chevrolet Impalas 23 $386,066.50
Criminal Chevrolet Silverado 3 $16,421.50
Investigations %2 ton pickup
Total $402,488
Public Works Department
Streets & Ford F450 2 $50,462
Drainage
Parks Ford F350 Crew Cab 1 $24,108
Operations
Parks Chevrolet Silverado 1 $16,507.50
Operations '/z ton pickup
Water Utilities Ford F450 1 $24,320
Water Utilities Chevrolet Silverado 1 $16,507.50
%2 ton pickup
Total $131,905
Central Services Department
Fleet Tennant Sweeper 1 $21,903.27
Maintenance
Total $21,903.27
Clean Community Department
Landfill Ford F350 Crew Cab 1 $24,300
Total $24,300
Grand Total $580,596.27
7
Council consider approving funding for the Chamber of Commerce for economic development
purposes
City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 13, 2001
REQUESTED ACTION: Consider funding for the Chamber of Commerce in the amount of
$50,000 for Economic Development purposes.
RECOMMENDATION
Administration recommends funding for the Chamber of Commerce in the amount of$50,000 for
Economic Development purposes. $50,000 will be used for marketing Beaumont and business
retention/recruitment efforts. Administration is extremely pleased with the relationship with the
Chamber of Commerce.
BACKGROUND
The City and Chamber of Commerce had a very successful year working together on business
retention/recruitment. The City and Chamber worked in partnership to attract West Telemarketing
Company to Beaumont(1,000 initial jobs), helped retain and expand Conn's Appliances back office
operations and Home Care Supply's medical equipment business.
BUDGETARY IMPACT
Funds are budgeted for this expenditure in the FY2002 Budget.
PREVIOUS ACTION
Council approved funding on January 9, 2001 in the amount of $57,500 for the Chamber of
Commerce.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director
RECOMMENDED MOTION
Approve/Deny funding for the Chamber of Commerce in the amount of$50,000 for economic
development purposes.
Page 2
8
Council consider approving an annual contract for grounds maintenance and litter removal
services
^ City of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 14, 2001
REQUESTED ACTION: Council consider an annual contract for grounds maintenance and
litter removal services.
RECOMMENDATION
Administration recommends approval of a three (3) year contract beginning January 1, 2002 with
Beaumont Products and Services,Inc. (BPS)for basic grounds maintenance services at City facilities
and specified areas within Beaumont's Central Business District (CBD), and an optional contract
for a two man downtown beautification team to perform special projects.
BACKGROUND
BPS has provided grounds maintenance and litter removal services for the past four (4) years.
Grounds maintenance services include mowing, edging, sweeping and litter removal for the
grounds at City Hall, Civic Center, Beaumont Public Library, Police Building, Julie Rogers
Theatre, Tyrrell Historical Library, Delia Harrington Park, Henry Dannenbaum Transfer Facility,
Riverfront Park and the CBD medians and boulevards.
Mowing and edging is performed on a weekly basis during the growing season, March 1 through
October 31. Biweekly mowing is required during the dormant season. At Riverfront and Delia
Harrington Parks, edging and sweeping of sidewalks and paved areas are performed at the time
of mowing. Sweeping of walkways around the municipal complex is performed three times per
week. All other areas are swept in conjunction with mowing. Litter removal services are
required three days per week for removal of trash and debris from all City facilities and parking
lots.
Last year Council approved an amendment to this contract to provide two (2) additional employees
to establish what is known as the Downtown Beautification Team. The primary function of the
team has been to clean up the downtown areas through the mowing of vacant lots and rights-of-
Contract for Grounds Maintenance and Litter Removal
December 18, 2001
Page 2
way, litter removal, trimming and sweeping of sidewalks, and assistance with special
beautification projects. BPS will provide a team of two (2) workers as needed at $12.90 per hour
per worker.
This contract is exempt from competitive bidding because the service is provided by a state
certified workshop. BPS is a private-not-for-profit state certified workshop employing disabled
individuals.
BUDGETARY IMPACT
The cost of this service is $10,016 per month for an annual expenditure of$120,192. This price
includes a monthly fee of$1,200 for the Henry Dannenbaum Transfer Facility paid directly by
Beaumont Municipal Transit, resulting in an annual net cost to the City of$105,792. Funds for
the City's portion are budgeted in the Solid Waste Fund. The cost for the two (2) man Downtown
Beautification Team is 12.90 per hour per employee and is funded by Community Development
Block Grant (CDBG) funds.
Last year's annual cost was $111,720 including $9,000 for grounds maintenance at the Henry
Dannenbaum Transfer Facility. During the contract period the cost for grounds maintenance at
the Henry Dannenbaum Transfer Facility was increased from an annual cost of$9,000 to $14,400
due to additional litter removal services at the new facility. This cost has remained the same for
the new contract. The Downtown Beautification Team was $12.50 per hour per worker. The
increase in costs for the Municipal Complex and the Downtown Beautification Team can be
attributed to increases in labor, insurance, and materials.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Clean Community Director.
RECOMMENDED MOTION
Approve/Deny the award of a three(3)year contract with Beaumont Products and Services, Inc., in
the amount of$10,016 per month for providing grounds maintenance services and litter removal
from City facilities and specified areas within the Central Business District, and$12.90 per hour per
worker for the two (2) man Downtown Beautification Team.
WORK SESSION
* Report from the Partnership of Southeast Texas
* Review proposed park improvements
EL
City o
�f
Beaunwnt
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS DECEMBER 18, 2001 1:30 P.M.
CONSENT AGENDA
* Approval of minutes
* Confirmation of committee appointments
A) Approve a one-year contract with Carolyn C. Chaney & Associates, Inc. to act as the
the City of Beaumont's Washington Assistant
B) Approve an annual system software maintenance agreement from International Business
Machine
C) Approve an adjustment to compensation and a retirement benefit contribution for the City
Manager for FY 2002
D) Approve a retirement benefit contribution for the City Clerk for FY 2002
CONSENT AGENDA DECEMBER 18, 2001
* Committee Appointments
Greg Busceme would be appointed to the Martin Luther King, Jr. Parkway Commission. The term
will commence on December 18, 2001 and expire December 17, 2003. (Councilmember Becky
Ames)
Walter Crook would be appointed to the Martin Luther King, Jr. Parkway Commission. The term
will commence December 18, 2001 and expire December 17, 2003. (Mayor Pro-Tem Guy
Goodson)
A) Approve a one-year contract with Carolyn C. Chaney & Associates, Inc. to act as
the City of Beaumont's Washington Assistant
Administration recommends approval of a one-year renewal contract effective January 1, 2002 in
the amount of$53,130. The contract will also include a maximum of$4,000 for reimbursable
expenses. The contract amount and reimbursable expenses have remained the same as in last year's
contract. Funds are budgeted for this expenditure in the FY 2002 Budget. A copy of the staff
memorandum and a letter from Ms. Chaney is attached for your review.
B) Approve an annual system software maintenance agreement from International
Business Machine
Administration recommends payment of an invoice to International Business Machine (IBM) for
the purchase of an annual subscription fee for the AS/400 system software in the amount of
$32,800. The contract provides for operating software updates for the AS/400 computer systems
located in City Hall and the Police Department. A copy of the staff memorandum is attached for
your review.
C) Approve an adjustment to compensation and a retirement benefit contribution for
the City Manager for FY 2002
Based on the annual performance review of the City Manager, Council has agreed to provide a 3%
salary adjustment effective July 5, 2001 and to continue the same retirement benefit contribution as
in FY 2001. A copy of the staff memorandum is attached for your review.
D) Approve a retirement benefit contribution for the City Clerk for FY 2002
Based on the annual performance review of the City Clerk, Council has agreed to provide a
retirement benefit contribution in the amount of$8,500. A copy of the staff memorandum is
attached for your review.
A
City of Beaumont
Council Agenda Item
M c
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Economic Development Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 13, 2001
REQUESTED ACTION: Consider a one-year renewal contract with Carolyn C. Chaney &
Associates, Inc. to act as the City of Beaumont's Washington
Assistant.
RECOMMENDATION
Administration recommends approval of a one-year renewal contract with Carolyn C. Chaney &
Associates, Inc. in the amount of$53,130. The contract will also include a maximum of$4,000 for
reimbursable expenses. The contract amount and reimbursable expenses have remained the same as
in last year's contract. The contract will be effective January 1, 2002.
BACKGROUND
On a yearly basis since 1980, the City has contracted with an organization to provide legislative
services on the federal level. Ms. Chaney, as the City's Washington Assistant, is responsible for
reviewing federal executive proposals, legislation under consideration and proposed and adopted
administrative rules and regulations which could impact the City ofBeaumont's policies or programs.
BUDGETARY IMPACT
Funds are budgeted for this expenditure in the FY2002 Budget.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Economic Development Director
RECOMMENDED MOTION
Approve/Deny a one-year renewal contract with Carolyn C. Chaney&Associates,Inc. to act as the
City of Beaumont's Washington Assistant.
LOCAL GOVERNMENT CONSULTANTS
November 28, 2001
Mr. Stephen J. Bonczek
City Manager
P.O. Box 3827 1
Beaumont, TX 77704
Dear Steve:
Please consider this a formal request for a twelve month renewal, beginning
January 1, 2002, of the contract between the City of Beaumont and.Carolyn C. Chaney &
Associates, Inc. for federal lobbying and information services.
Thanks to your leadership and that of the Mayor and City Council, the City of
Beaumont continues to enhance its reputation with Congress and the federal government,
and we have been proud to assist the City in building a strong presence in Washington.
We were particularly pleased that Congress provided the City$485,000 in Environmental
Protection Agency funds for wastewater infrastructure upgrades, and we continue to work
toward federal funding for the City's downtown "livability" efforts.
It has been an honor and a pleasure to serve the City of Beaumont for the past 20
years, and I hope to continue that relationship. I am very appreciative of the guidance I
have received from you and the hard work of your staff, and I look forward to working
with you on the City's federal priorities in 2002.
Sincerely,
Carolyn Chaney
Washington Assistant '
DEC ` ;`:,
1401 K STRF.FT,NW SUITE 700 WASHINGTON, DC 20005-3401
TELEPHONE 202/842-4930 FAx 202/842-5051
w«-,v.capitaledge.coin/chaney.html
AGREEMENT
BETWEEN THE CITY OF BEAUMONT,TEXAS
AND
CAROLYN C. CHANEY&ASSOCIATES, INC.
1401 K STREET, NW- SUITE 700
WASHINGTON, D.C. 20005-3430
Pursuant to this agreement, the City of Beaumont, Texas (hereinafter sometimes
referred to as the "City") and Carolyn C. Chaney & Associates, Inc. (hereinafter
sometimes referred to as "Consultant") agree to assume the following obligations.
L Obligations of Consultant
A. Consultant will organize and operate a unit to act as a
Washington office for the City and will be the assigned member
of its staff. Consultant will be responsible for obtaining and
furnishing requisite staff,office space,utilities,furnishings,and
equipment, common-use office supplies and services, and
general administrative support according to the level of service
specified in Paragraph IV;
B. Consultant will confer with the City Manager and such other
City personnel as the City Manager may designate at the times
and places mutually agreed to by the City Manager on all
organizational planning and program activities which have a
bearing on the ability of the City to make the best use of federal
aid programs; and will act as Washington Assistant to the City
of Beaumont,Texas;
C. As Washington Assistant the Consultant will review federal
executive proposals,legislation under consideration,proposed
and adopted administrative rules and regulations and other
Washington developments for the purpose of advising the City
on her own initiative of those items which may have a bearing
on City policy or programs;
D. More specifically, as Washington Assistant the Consultant will
advise and consult on behalf of the City with the White House
and any other Federal agencies,departments and commissions
as may be necessary to the performance of full Washington
service to the City Manager and the City. Additionally, the
Consultant will act as liaison with the U.S. Conference of City
Managers and the National League of Cities, and will furnish
legislative and administrative analyses of issues as requested;
E. As Washington Assistant the Consultant will secure and furnish
such detailed information as may be available on federal
programs in which the City indicates an interest;
1
F. As Washington Assistant the Consultant will review and
comment on proposals of the City which are being prepared for
submission to federal agencies when requested to do so by the
City Manager or his designees;
G. As Washington Assistant the Consultant will maintain liaison
with the City's Congressional delegation and will assist the
delegation in any matter which the City determines to be in its
best interest in the same manner as any other member of the
City's administrative staff might render assistance;
H. As Washington Assistant the Consultant will counsel with the
City regarding appearances by City personnel before
Congressional committees and administrative agencies and will
arrange for appointments and accommodations for City
personnel as necessary;
I. As Washington Assistant the Consultant will contact federal
agencies on the City's behalf when City applications are under
consideration by such agencies and counsel the City to take
whatever steps appear to be required to obtain the most
favorable consideration of such applications;
J. As Washington Assistant the Consultant will advise and consult
with or otherwise snake assistance available to such
representatives of the private sector who are engaged in
economic development activities as determined by the City
Manager to be in the best interests of the City,
K. In fulfilling her responsibilities under this Agreement, the
Washington Assistant will act in the name of the City of
Beaumont, Texas under the supervision of the City Manager.
Any change in the person of the Washington Assistant from the
person representing the City as of the effective date of this
agreement must be approved by the City Manager.
H. Obligations of the City ofBeaumont, Texas
A. To advise the Consultant of the name or names of persons
other than the City Manager authorized to request service and
the person or persons to be kept advised by the Washington
Assistant;
B. To supply the Consultant with a summary of all federal
programs in which the City is participating and advise the
Consultant of any new applications filed, together with
pertinent details as to the substance of such applications;
2
C. To supply the Consultant with copies of budgets, planning
documents, and regular reports of the City Manager and
departments,Council agenda and proceedings,newspapers and
other materials which will assist the Consultant in keeping
current on City policies and programs;
D. To reimburse the Consultant for(1) all travel expenses incurred
pursuant to Paragraph I,Subparagraphs D and G; (2) expenses
for attendance at any other meetings attended by the
Washington Assistant outside Washington,DC, at the request
of the City;
E. To reimburse the Consultant for other expenses which are
incurred within Washington, DC on behalf of the City in
carrying out the provisions of this Agreement and as approved
by the City Manager subject to the provisions of Paragraph IV;
F. To bear long distance telephone, photocopying, executive
expenses and postage expenses.
III. The GlyofBm mievA Texas and the Comuhantcomw-&ttlie
following exclusions shall apply to this Agreement
A. The Consuhav
1. Will not represent commercial or industrial establishments of
the City in pursuit of federal business except in accordance with
the provisions of Paragraph I,Subparagraph J, above;
2. Will not, by virtue of this Agreement, represent other local
government agencies in Beaumont, Texas except those which
are instrumentalities or agencies of the City of Beaumont,
Texas;
3. Will not perform any legal, engineering, accounting or other
similar professional service;
4. Will not directly or indirectly participate in or intervene in any
political campaign on behalf of or in opposition to any
candidate for public office in or representing the City.
3
IV. Compensation
The cost of service will be $53,130.00 for twelve months,payable in advance,in equal
monthly installments of $4,427.50 commencing on the first day of January, 2002. In
addition, a maximum of $4,000.00 for reimbursable expenses incurred pursuant to
Paragraph II,Subparagraphs D,E, and F.
V. Termination
Either party may terminate this Agreement at any time by giving the other at least sixty
(60) days notice in writing of such termination.
IN WITNESS WHEREOF:
ATTEST DATE
� CG
Faro yn . Chaney,Washingto Assistant
Stephen J.Bonczek, City Manager
4
B
Cit y of Beaumont
M,CI-Nowl- 1K
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 11, 2001
REQUESTED ACTION: Council approval of an annual system software maintenance
agreement from International Business Machine.
RECOMMENDATION
Administration recommends payment of an invoice to International Business Machine Corporation
(IBM) for the purchase of an annual subscription fee for the AS/400 system software in the
amount of$32,800.
BACKGROUND
The contract provides for operating software updates for the AS/400 computer systems located in
City Hall and the Police Department. System updates occur two or three times per year and are
transferable when upgrades of AS/400 hardware models are required. Fifty-six (56) software
products are supported, including, but not limited to Query, Facsimile Support, and AS/400 Client
Access.
This purchase is exempt from competitive bidding since it is available from only one (1) source
having exclusive rights to modify and maintain the software.
The agreement is for an annual period beginning December 28,2001 and ending December 27,2002.
Last year, system software maintenance was $30,832.
IBM Software Update Agreement
December 11, 2001
Page 2
BUDGETARY IMPACT
Funds are available in the Information Services Division's fiscal year 2002 budget.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Central Services Director.
RECOMMENDED MOTION
Approve/Deny renewal of an annual system software upgrade and maintenance agreement with
International Business Machines in the amount of $32,800.
c
7aijCity of Beaumont
Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Executive Assistant to the City Manager
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 13, 2001
REQUESTED ACTION: Consider approval of an adjustment to compensation and a
retirement benefit contribution for the City Manager for FY 2002.
RECOMMENDATION
The Administration recommends approval of a 3% salary adjustment effective July 5, 2001 and
to continue the retirement contribution as in FY 2001.
BACKGROUND
The City Manager's employment conditions provide for an annual evaluation and consideration
of any compensation adjustment by the City Council. Based on the annual performance review
of the City Manager, Council has agreed to provide a 3%salary adjustment effective July 5,2001
and to continue the same retirement benefit contribution as in FY 2001.
BUDGETARY IMPACT
Funds are available in the FY 2002 Budget.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Council.
RECOMMENDED MOTION
Approve/Deny a salary adjustment and a retirement contribution for the City Manager.
D
City of Beaumont
•�• Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kyle Hayes, Executive Assistant to the City Manager
MEETING DATE: December 18, 2001
AGENDA MEMO DATE: December 13, 2001
REQUESTED ACTION: Consider approving a retirement benefit contribution for the City
Clerk for FY 2002.
RECOMMENDATION
The Administration recommends approval of a retirement benefit contribution in the amount of
$8,500 for the City Clerk for FY 2002.
BACKGROUND
The City Clerk's employment conditions provide for an annual evaluation and consideration of
any compensation adjustment by the City Council. Based on the annual performance review of
the City Clerk, Council has agreed to provide a retirement benefit contribution in the amount of
$8,500.
BUDGETARY IMPACT
Funds are available in the FY 2002 Budget.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Council.
RECOMMENDED MOTION
Approve/Deny a resolution providing a retirement benefit contribution for the City Clerk.