HomeMy WebLinkAboutPACKET SEPT 14 2004 'A 401
A.
City ,of Beaurnont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 14, 2004 1:30 P.M.
AGENDA
CALL TO ORDER
Invocation Pledge Roll Call
Presentations and Recognition
Public Comment: Persons may speak on scheduled agenda items 4, 6 & 7/Consent
Agenda
Consent Agenda
GENERAL BUSINESS
1. Hold a Joint Public Hearing on the FY 2005 Proposed Budget and the FY 2005
Capital Improvement Program(CIP)
2. Consider adopting the FY 2005 Budget
3. Consider adopting the FY 2005 Capital Improvement Program(CIP)
4. Consider accepting the tax roll and establishing the property tax rate for the tax
year 2004
5. Consider approving a request for a specific use:permit to allow a residential care
facility in an RCR(Residential Conservation.and Revitalization) District at 685
Irma
6. Consider adopting an ordinance accelerating the expiration of the existing electric
franchise ordinance between the City of Beaumont and Entergy Gulf States, Inc.
and granting a new franchise to Entergy Gulf States, Inc. adopting a new method
of compensation
7. Consider granting the City Manager,authority to implement the contribution rate
changes for retirees in the medical plans
8. Consider approving a one year contract with Blue Cross Blue Shield of Texas for
third party administration of the City's self funded Preferred Provider Organization
(PPO) medical plan, self funded dental plan and a fully insured Health Maintenance
Organization(HMO) with HMO Blue Texas
COMMENTS
* Councilmembers/City Manager comment on various matters
* Public Comment (Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in
accordance with Section 551.071 of the Government Code:
Penni Simonson, et al v. City of Beaumont
Douglas Manning, et al v City of Beaumont
Sheila Broussard vs. City of Beaumont, et al
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids
or services are requested to contact Pat Buehrle at 880-3725 a day prior to the meeting.
1
September 14, 2004
Hold a Joint Public Hearing on the FY 2005 Proposed Budget and the FY 2005 Capital
Improvement Program(CIP)
QIE! City of Beaumont
Council Agenda Item� c
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Andrea S. Deaton, Budget Officer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 8, 2004
REQUESTED ACTION: Hold Joint Public Hearing on FY 2005 Proposed Budget and FY
2005 Capital Improvement Program (CIP).
RECOMMENDATION
It is recommended that Council hold a joint public hearing as scheduled on the Proposed FY
2005 Budget submitted to Council on August 10, 2004 and the CIP which was originally
submitted on May 11, 2004.
BACKGROUND
The FY 2005 Proposed Budget was submitted to Council on August 10, 2004. A workshop
was held August 24, 2004 and a public hearing was held August 31, 2004 both of which
included a PowerPoint slide presentation and discussion of significant issues impacting the FY
2005 budget. The FY 2005 Capital Improvement Program was submitted to Council on May
11, 2004 with a PowerPoint presentation to Council on August 31, 2004.
BUDGETARY IMPACT
The proposed FY 2005 Budget appropriation for all funds, net of contingency, totals
$164,767,900.
Projects classified as current in the FY 2005 CIP total $58,848,000 and include $52,755,000
in Public Works Improvements and $6,093,000 in General Improvements. The total for
planned projects in both categories is $56,110,000.
Council Agenda Item
Page 2
September 14, 2004
PREVIOUS ACTION
As required by Article VI, Sections 2 and 4 of the City Charter, the FY 2005 Proposed Budget
was submitted to Council on August 10, 2004; and as required by Sections 19 and 20, the FY
2005 CIP was submitted to Council on May 11, 2004.
The notice of the public hearing on the Budget and CIP was published September 7, 2004.
SUBSEQUENT ACTION
The FY 2005 Budget and CIP must be adopted no later than September 27, 2004. The
proposed date for adoption is September 14, 2004.
RECOMMENDED BY
City Manager and Finance Officer
2
September 14, 2004
Consider adopting the FY 2005 Budget
tt-, :.. Cat of Beaumont
y� Council Agenda Item
tem
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Andrea S. Deaton, Budget Officer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 9, 2004
REQUESTED ACTION: Adopt FY 2005 Budget
RECOMMENDATION
Administration recommends Council adopt the FY 2005 Budget as submitted to Council on
August 10, 2004.
BACKGROUND
Article VI, Section 8 of the City Charter requires that "the budget shall be adopted by the
favorable votes of at least a majority of all members of the Council." Section 9 states that "the
budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of
the fiscal year. Should the Council take no final action on or prior to such day, the budget as
submitted by the City Manager shall be deemed to have been finally adopted by the Council."
BUDGETARY IMPACT
Proposed appropriation for all funds, net of contingency, totals $164,767,900. Additionally, a
contingency appropriation of$1,500,000 is made for the General Fund.
PREVIOUS ACTION
Public hearings were held August 31, 2004 and September 14, 2004.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Finance Officer.
ORDINANCE NO.
ENTITLED AN ORDINANCE REFERRED TO AS THE
"ANNUAL APPROPRIATION ORDINANCE" ADOPTING A
BUDGET FOR THE FISCAL PERIOD BEGINNING OCTOBER
1, 2004 AND ENDING SEPTEMBER 30, 2005 IN
ACCORDANCE WITH THE CHARTER OF THE CITY OF
BEAUMONT; APPORTIONING THE FUNDS OF THE CITY
OF BEAUMONT, REPEALING ALL ORDINANCES OR
PARTS OF ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING FOR SEVERABILITY.
WHEREAS, the City Manager of the City of Beaumont submitted to the City Council
a budget estimate for the revenues of said City and expenses of conducting the affairs
thereof for the fiscal year beginning October 1, 2004 and ending September 30, 2005; and,
WHEREAS, after notices and public hearings held in accordance with the
requirements of the Charter of the City of Beaumont and the statutes of the State of Texas,
the City Council is of the opinion that the budget, as attached hereto as Exhibit"A", should
be adopted;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
That the budget attached hereto as Exhibit "A" and made a part hereof for all
purposes is hereby adopted and approved. Exhibit "A" is hereby adopted and approved
as the budget of all the correct expenses as well as the fixed charges of the City for the
fiscal period beginning the 1st day of October, 2004, and ending the 30th day of
September, 2005, and the several amounts stated in Exhibit"A"as proposed expenditures
shall be and become appropriated to the several objects and purposes therein named.
Notices given, as required for the adoption of said budget, are hereby ratified.
Section 2.
That the sums indicated are appropriated from the following schedule of funds:
a. General $76,974,600
b. Debt Service $141182,800
C. Water Utilities $28,745,200
d. Solid Waste Management $8,618,600
e. Hotel Occupancy Tax $1,988,600
f. Street Maintenance $1,003,700
g. Municipal Transit $10,904,000
h. Other Special Revenue $1,851,500
I. Capital Reserve $2,404,300
j. Fleet Management $4,721,700
k. Employee Benefits $14,018,900
I. General Liability $854,000
Section 3.
That the City Manager is hereby authorized to transfer budgeted funds from one
line-item to another line item provided the transaction is not an interfund transfer.
Section 4.
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 in no way affect the remaining portions of this
ordinance, and to such end the provisions of this ordinance are declared to be severable.
Section 5.
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 this the 14th day of
September, 2004.
- Mayor Evelyn M. Lord -
GENERAL FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 6,946,038 7,160,532 8,545,292 10,359,392
REVENUES
Sales and use tax 26,728,814 26,368,000 26,761,300 26,900,000
Property taxes 13,757,467 15,023,000 15,136,000 17,236,000
Industrial payments 11,757,638 11,920,300 11,920,300 11,461,100
Gross receipts tax 6,012,611 5,940,200 5,953,000 6,076,000
Utility fund in lieu 6,539,000 6,279,000 6,279,000 6,279,000
Charges for services 2,786,299 2,665,700 2,657,500 2,728,700
Fines and forfeits 1,905,118 1,926,500 1,889,000 1,905,000
Licenses and permits 1,296,384 1,159,100 1,260,000 1,176,700
Culture and recreation 801,386 757,300 736,200 722,400
Interest earnings 282,193 286,000 220,000 250,000
Miscellaneous revenue 789,287 604,100 724,800 740,000
TOTAL REVENUES 72,656,197 72,929,200 73,537,100 75,474,900
TOTAL AVAILABLE RESOURCES 79,602,235 80,089,732 82,082,392 85,834,292
EXPENDITURES
Executive Office 1,240,309 1,306,000 1,171,500 1,186,500
City Clerk 1,001,977 229,600 217,100 231,700
City Attorney 603,790 622,900 615,700 671,900
Personnel and Benefits 643,045 683,800 696,700 731,100
Internal Services 6,511,155 8,707,900 8,535,200 8,925,000
Finance 1,105,378 2,003,000 1,939,300 2,023,800
Police 19,582,332 20,518,800 19,943,300 21,203,000
Fire 15,377,674 15,504,200 15,818,200 16,622,300
Public Health 4,388,477 4,560,300 4,230,400 4,600,700
Public Works 11,146,869 8,836,600 8,661,700 9,051,900
Libraries and Recreation 2,257,787 2,263,800 2,204,600 2,297,200
TOTAL EXPENDITURES 63,858,793 65,236,900 64,033,700 67,545,100
OTHER FINANCING USES:
Transfers out 7,198,150 7,689,300 7,689,300 7,929,500
TOTAL APPROPRIATIONS 71,056,943 72,926,200 71,723,000 75,474,600
ENDING FUND BALANCE:
Reserved for contingency - 1,500,000 - 1,500,000
Unreserved 8,545,292 5,663,532 10,359,392 8,859,692
TOTAL ENDING FUND BALANCE $ 8,545,292 7,163,532 12, 3 10,359692
Exhibit "A"
DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDITURES �
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 2,508,316 2,632,716 2,716,346 1,454,232
REVENUES
Property taxes 12,920,360 12,929,000 13,119,000 12,949,000
Interest earnings 70,734 68,000 75,000 45,000
Miscellaneous revenue 328,761 340,700 340,700 337,100
Contributions from other funds 722,070 758,300 758,300 811,200
TOTAL REVENUES __14,041,925 14,096,000 14,293,000 14,142,300
TOTAL AVAILABLE RESOURCES 16,550,241 16,728,716 17,009,346 15,596,532
EXPENDITURES
Principal and interest 13,812,897 13,903,800 13,862,500 14,174,800
Service charges 6,054 8,000 81000 8,000
Other operating expenses 14,944. _ - _
TOTAL.EXPENDITURES 13,833,895 13,911,800 13,870,500 14,182,800
OTHER FINANCING SOURCES(USES)
Transfers out - (1,684,614) (1,684,614) -
TOTAL APPROPRIATIONS - 15,596,414 15,555,114 -
ENDING BALANCE $ 2671,66346, 1,1323 302 1,454,232 1,413,732
Exhibit "A"
WATER UTILITIES FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 4,498,252 3,932,955 3,972,833 5,787,733
REVENUES
Water sales 15,009,183 15,016,000 15,250,000 15,617,000
Sewer charges 10,183,649 10,320,000 10,500,000 10,830,000
Other fees and charges 1,280,146 1,101,000 1,319,000 1,315,000
Interest $7,935 40,000 48,000 50,000
Miscellaneous revenue 11,577 5,200 75,000 9,000
TOTAL REVENUES 26,572,490 26,482,200 27,192,000 27,821,000
TOTAL AVAILABLE RESOURCES 31,070,742 30,415,155 31,164,833 33,608,733
EXPENDITURES
Wages 4,455,463 4,738,300 4,582,000 4,776,900
Benefits 1,478,956 1,445,400 1,438,900 1,497,400
Supplies and equipment 1,967,585 2,039,900 1,784,600 1,857,200
Repair and maintenance 898,982 831,200 821,800 838,800
Utilities 1,616,772 1,509,300 1,801,100 1,807,400
Contract services 344,258 411,300 441,500 503,300
Capital 3,228,665 2,500,000 1,615,100 3,600,000
Debt service 6,820,128 6,826,000 6,826,000 7,767,100
Payment in lieu of taxes 5,239,000 4,973,000 4,973,000 4,973,000
Transfers to other funds 1,048,100 1,093,100 1,093,100 1,124,100
TOTAL EXPENDITURES 27,097,909 26,367,500 25,377,100 28,745,200
Unreserved 3,972,833 4,047,655 5,787,733 4,863,533
ENDING BALANCE $ 3,972,833 4,047655 5,787,733 4,863,533
Exhibit "A"
SOLID WASTE FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 3,581,905 3,265,060 3,461,191 2,662,391
REVENUES
Residential collections 4,982,428 5,000,000 5,100,000 5,100,000
Landfill fees 1,594,681 1,535,000 1,675,000 1,635,000
Clean community fees 267,712 265,000 265,000 265,000
Interest earnings 67,801 36,000 36,000 40,000
Miscellaneous revenue 199,557 45,000 61,000 55,000
TOTAL REVENUES 7,112,179 6,881,000 7,137,000 7,095,000
TOTAL AVAILABLE RESOURCES 10,694,084 10,146,060 10,598,191 9,757,391
EXPENDITURES
Wages 2,100,464 2,263,000 2,232,800 2,251,000
Benefits 680,684 725,500 737,000 728,200
Supplies and equipment 474,155 531,400 538,200 651,700
Repair and maintenance 900,787 1,187,500 1,248,600 1,294,000
Utilities 36,292 37,500 36,800 35,800
Contract services 196,925 242,500 223,000 234,000
Capital 580,653 1,425,400 212,000 766,800
Debt service 393,933 798,300 798,300 731,700
Payment in lieu of taxes 1,300,000 1,306,000 1,306,000 1,306,000
Transfers to other funds 569,000 603,100 603,100 619,400
TOTAL EXPENDITURES 7,232,893 9,120,200 7,935,800 8,618,600
Unreserved 3,461,191 1,025,860 2,662,391 1,138,791
ENDING BALANCE $_ 31461,191 11025,860 2L662 391 _.1 138,791
Exhibit "A"
.,
HOTEL OCCUPANCY TAX FUND
.. .. 3RM- w:a��?�.
..
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2403 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 368,865 351,766 349,088 274,188
REVENUES
Gross receipts tax 1,619,399 1,580,000 1,700,000 1,700,000
Interest earnings 8,848 7,500 4,000 3,000
Miscellaneous revenues 13,914 16,000 71,700 16,400
TOTAL REVENUES 1,642,161 1,603,500 1,775,700 1,719,400
TOTAL AVAILABLE RESOURCES 2,011,026 1,955,266 2,124,788 1,993,588
EXPENDITURES
Convention and Visitors Bureau 714,562 944,400 982,000 1,000,000
Convention Facilities 622,376 603,600 603,600 603,600
Designated Programs 325,000 345,000 265,000 385,000
TOTAL EXPENDITURES 1,661,938 1,893,000 1,850,600 1,988,600
ENDING BALANCE $ 349,088 _ _ 62,266 _ 274,188 4,988
Exhibit "A"
STREET MAINTENANCE FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 1,888,934 1,627,400 1,766,700 993,700
REVENUES
Service charges 1,919 - 4,000 -
Interest earnings 42,287 20,000 23,000 10,000
TOTAL REVENUES 44,206 20,000 27,000 10,000
TOTAL AVAILABLE RESOURCES 1,933,140 1,647,400 1,793,700 1,003,700
EXPENDITURES
General construction 166,440 1,647,400 800,000 1,003,700
TOTAL EXPENDITURES 166,440 1,647,400 800,000 1,003,700
Unreserved 1,766,700 - 993,700 -
ENDING BALANCE $ 1,766,700_ , - 9934700 -
Exhibit "A7 n
MUNICIPAL.TRANSIT FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 67,042 (42,959) (16,190) 14,210
REVENUES
Service charges 565,924 661,200 600,000 600,000
Intergovernmental revenue 2,488,855 1,888,000 2,142,500 9,087,000
Interest 2$ _ _ _
Transfer from General Fund 1,275,000 1,200,000 1,200,000 1,300,000
TOTAL REVENUES 4,329,807 3,749,200 3942,500 10,987,000
TOTAL AVAILABLE RESOURCES 4,396,849 3,706,241 3,926,310 11,001,210
EXPENDITURES
Contract services 3,411,246 3,600,000 3,600,000 3,650,000
Capital outlay 1,001,793 100,000 312,100 7,254,000
TOTAL EXPENDITURES 4,413,039 3,700,000 3,912,100 10,904,000
Unreserved (16,190) 6,241 14,210 97,210
ENDING BALANCE $ (16,190; 6,241 _. 14.210 9721 0
o ---r- ram
Exhibit "A"
OTHER SPECIAL REVENUE FUNDS
STATEMENT OF REVENUES AND EXPENDITURES
Balance FY 2005 Balance
10101104 Revenues Approp- 09/30105
Confiscated Goods $ 341,600 $ 5,000 $ 346,600 $
Tax Increment Financing 330,300 2,000 332,300 -
Municipal Airport 41,600 89,000 130,600 -
Texas Motor Carrier Violations 13,100 45,000 58,100 -
Municipal Court Security Fee 12,000 66,000 78,000
Municipal Court Technology 176,900 93,000 269,900
Julie Rogers Theatre Endowment 235,400 4,000 139,400 100,000 (1)
Tyrrell Historical library 124,700 2,000 126,700 -
Expendable Trust 160,700 23,900 184,600 -
Library Trust 122,800 5,000 127,800 -
Library Endowment 792,300 12,000 43,700 760,600 (1)
Historical Fire Museum 5,700 8,100 1�3 800_
TOTAL $557,100 $ 355,000 $ 1,851.500 $ 860,600
(1) UrM)VWKWAe 0rKbWnWW#
Exhibit W
FLEET MANAGEMENT FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Budget Estimated Budget
FY 2003 FY 2004 FY 2004 FY 2005
BEGINNING BALANCE $ 364,234 588,435 344,019 592,019
REVENUES
User fees 4,048,412 4,350,900 4,579,300 4,561,300
Interest earnings 3,656 2,000 1,600 1,500
Miscellaneous revenue - - 4,800 -
TOTAL REVENUES 4,052,068 4,352,900 4,585,700 4,562,800
TOTAL AVAILABLE RESOURCES 4,416,302 4,941,335 4,929,719 5,154,819
EXPENDITURES
Wages 825,359 917,300 868,500 934,900
Benefits 258,461 268,500 262,500 286,300
Supplies and equipment 906,760 926,500 926,800 961,800
Repair and maintenance 1,287,692 1,518,200 1,439,200 1,580,100
Utilities 46,211 44,800 45,900 46,700
Contract services 552,646 501,200 548,300 539,700
Equipment 22,754 3,600 71,200 179,700
Transfers out 172,400 175,300 175,300 192,500
TOTAL EXPENDITURES 4,072,283 4,355,400 4,337,700 4,721,700
Reserved for inventory 344,019 350,000 350,000 350,000
Unreserved - 235,935 242,019 83,119
ENDING BALANCE $ X3441019 585,935 592 019 433,119
Exhibit "A"
3
September 14,2004
Consider adopting the FY 2005 Capital Improvement Program(CIP)
City of Beaumont
CIE. ...I!. i
1mr-111ILTIL91 IM#=EL Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Andrea S. Deaton, Budget Officer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 9, 2004
REQUESTED ACTION: Adopt FY 2005 Capital Improvement Program (CIP)
RECOMMENDATION
Administration recommends Council adopt the FY 2005 CIP as submitted to Council May 11,
2004.
BACKGROUND
Article VI, Section 20 states that "the Council shall, by resolution, adopt the Capital Program
with or without amendment after the public hearing and on or before the twenty-seventh (27th)
day of the last month of the current fiscal year."
BUDGETARY IMPACT
Projects classified as current in the FY 2005 CIP total $58,848,000 and include $52,755,000
in Public Works Improvements and $6,093,000 in General Improvements. The total for
planned projects in both categories is $56,110,000.
PREVIOUS ACTION
The CIP was submitted to Council on May 11, 2004 and reviewed during a workshop on
August 31, 2004. Public hearings were held on August 31, 2004 and September 14, 2004.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Finance Officer.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the FY 2005 Capital Program is hereby adopted. The Capital Program is
substantially in the form attached hereto as Exhibit"A". A public hearing was held at 1:30
PM on September 14, 2004 in the City Council Chambers, City Hall, Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
September, 2004.
- Mayor Evelyn M. Lord -
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
PUBLIC WORKS PROJECTS
FY 2005-2009
Estimated Estimated FY 2005 Future Anticipated
Project Expenditures Planned Funding Construction
Current Projects Cost at FYE 2004 Expenditures Required Start Date
Virginia-Mercantile to Avenue A $ 2,700,000 1,193,000 1,507,000
Calder-Main to W. Lucas - 2004
11,300,000 - 370,000 10,930,000 2007
Downtown Improvements
Pearl-College to Calder 1,000,000 875,000 125,000 2004
Delaware-Dowlen to Major 3,660,000 1,740,000 1,920,000 - 2003
Concord IV-E. Lucas to Hwy 105 9,540,000 (1,3) 140,000 720,000 8,680,000 2007
Phelan-Major to Keith 2,420,000 (3) 125,000 845,000 1,450,000 2005
Main-Calder to Blanchette 3,250,000 160,000 730,000 2,360,000 2005
Old Dowlen-Dowlen to Hwy 105 3,000,000 (2,3) 40,000 995,000 1,965,000 2005
R. Christopher-US 69 S to Virginia 2,485,000 (3) 125,000 610,000 1,750,000 2005
Street Rehabilitation (FY 05) 1,000,000 - 100,000 900,000 2005
Washington-ML King to IH-10 12,400,000 - 385,000 12,015,000 2007
Total Current Projects $ 52,755,000 3,523,000 9,057,000 40,175,000
Planned Proiects ROW
Downtown Improvements Design Acquisition
Future Locations(FY06-09) $ 2,000,000 2006
Street Rehabilitation (FY06-09) 4,000,000 2006
Dowlen-US 69 N to Folsom 1,900,000 (3) 2006
Madison- Irving to Grove 1,940,000 2006 N/A
Moore Street Relief 4,650,000 2006 N/A
South Park Relief 6,240,000 2007
Dowlen-College to Walden 4,320,000 (3) 2007 Complete
Washington-Langham to Major 3,240,000 (3) 2007
High School Ditch 10,290,000 2007
Caldwood Outfall 4,380,000 2008
Phelan-1-10 to Dowlen 13,000,000 (3) 2009
Total Planned Projects $ 55,960,000
Total Public Works Improvements $ 108,715,000
(1) Includes Federal Highway Administration funding of 80%up to$7,375,000. Construction start is September 2007.
(2) Includes TxDOT funding of 80%up to$2,400,000 for both phases.TxDOT construction start date for phase II is 2007.
(3) Air Quality issues will not be determined until a later date and could affect project timeline.
FYE=Fiscal Year End
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
GENERAL IMPROVEMENTS PROJECTS
FY 2005-2009
Estimated Estimated FY 2005 Future Anticipated
Project Expenditures Planned Funding Construction
Current Proiects Cost at FYE 2004 Expenditures Required Start Date
Central Park Tennis Courts $ 85,000 (1) 5,000 80,000
Communications Network-Phase II 703,000 - 2005
�2> - 703,000
Cottonwood and Magnolia - 2005
Park Improvements 350,000 (3) 25,000 325,000
Fire Station and - 2005
Communication Center 3,000,000 30,000 1,700,000 1,270,000
Perlstein Park-Walking Trail 110,000 2005
-
Tyrrell Park-Clubhouse& 110,000 - 2005
Parking Lot 650,000 25,000 625,000
Visitor Center/CVB 1,100,000 85,000 1,015,000 2005
Wuthering Heights-Walking Trail 95,000 - 2005
95,000 - 2005
Total Current Projects $ 6,093,000 170,000 4,653,000 1,270,000
Planned Proiects Design
Lefler Park $ 50,000 2005
Rogers Park-Walking Trail 100,000 2006
Total Planned Projects $ 150,000
Total General Improvements $ 6,243,000
(1) This project will utilize the$575,000 proceeds from the sale of a portion of Central Park.
(2) FEMA grant will cover 70%of project cost up to$491,800.
(3) Project includes grant funding of 80%from UPARR and 10%from TPW.
FYE=Fiscal Year End
4
September 14,2004
Consider accepting the tax roll and establishing the property tax rate for the tax year 2004
lug I City of Beaumont
Z�'
Council Agenda Item
�
� c.
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Andrea S. Deaton, Budget Officer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 8, 2004
REQUESTED ACTION: Accept the tax roll and establish the property tax rate for the tax
year 2004.
RECOMMENDATION
Administration recommends that Council accept the Jefferson County Appraisal District's Certified
Tax Roll and adopt a property tax rate of$0.664 for the tax year 2004(FY 2005).The tax rate would
be apportioned $0.381267 to the General Fund and $0.282733 to the Debt Service Fund. This
distribution represents a reduction of$0.006 and shift of$0.021267 from the rate dedicated to the
Debt Service Fund to the General Fund.
BACKGROUND
Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in
adopting their tax rates.Effective January 1,2000 Senate Bill 1118 requires all taxing units to adopt
their tax rates before the later of September 30 or the 600' day after the taxing unit receives the
appraisal roll. Additionally, state law requires the adoption of the Budget before the tax rate.
BUDGETARY IMPACT
Property tax revenue in the FY 2005 Budget is calculated at the rate of$0.664 per$100 in assessed
value. This rate, applied to the certified tax roll of$4,568,576,349 at a collection rate of 97%,
generates approximately$29,425,000 for the General and Debt Service Funds combined.
PREVIOUS ACTION
A public hearing was held on August 31, 2004.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Finance Officer.
r
ORDINANCE NO.
ENTITLED AN ORDINANCE ACCEPTING THE TAX ROLL
FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX
RATE; PROVIDING FOR LEVYING, ASSESSING AND
COLLECTING OF AD VALOREM TAXES FOR THE TAX
YEAR 2004; PROVIDING FOR SEVERABILITY AND
PROVIDING FOR REPEAL.
WHEREAS, the Jefferson County Appraisal District has furnished to the City of
Beaumont the certified tax roll for the City of Beaumont as of August 9, 2004 to be
$4,568,576,349, and,
WHEREAS,the City Council finds that the tax roll submitted by the Jefferson County
Appraisal District should be accepted and that a tax rate in the amount of$0.664 per each
$100 of value for the tax year 2004 should be established based upon said roll;
NOW THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
That the tax roll submitted to the City Council by the Jefferson County Appraisal
District, a summary of which is attached as Exhibit "A", and showing the total net taxable
assessed value of all property within the City to be$4,568,576,349 is hereby approved and
accepted by the City of Beaumont.
Section 2.
That there shall be and is hereby levied and shall be assessed and collected for the
tax year 2004, for municipal purposes only, an ad valorem tax of $0.664 on each $100
worth of property located within the city limits of the City of Beaumont made taxable by law,
which said taxes, when collected, shall be for the purposes hereinafter set forth as follows:
General Fund $0.381267
Debt Service Fund $0.282733
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, such invalidity shall not affect the remaining portions of this
ordinance, and to such end the various portions and provisions of this ordinance are
declared to be severable.
Section 4.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day
of September, 2004.
- Mayor Evelyn M. Lord -
STATE OF TEXAS )
COUNTY OF JEFFERSON )
CERTIFICATION OF 2004 APPRAISAL ROLL FOR City of Beaumont
I, Roland R. Bieber, Chief Appraiser for.the Jefferson County Appraisal District,
solemnly swear that the attached is that portion of the approved Appraisal Roll of the Jefferson
County Appraisal District that lists property taxable by and constitutes the appraisal roll for City
of Beaumont.
r
August 9, 2004
Date Roland R. Bieber, RPA
Chief Appraiser
Jefferson County Appraisal District
2004 APPRAISAL ROLL INFORMATION
2004 Gross Value $5,096,682,160
2004 Gross Taxable Value(Net Appraised) $4,790,526,191
Total Number of Accounts 63,042
#of Accounts with Homestead Exemption 24,483
#of Accounts with Over-65 Exemption 8,140
# of Accounts with Disabled Exemption 1,155
# of Accounts with Veterans Exemption 643
# of Agriculture-Use Accounts 228
#of Exempt Accounts 1989
2004 Taxable Value $4,568,576,349
RECEIVED BY: DATE:
TAX CALCULATIONS 221 JEFFERSON COUNTY APPRAISAL DISTRICT CITY OF BEAUMONT
8/09/2004 11.51.58 ADP3TAXC 2004 APPRAISAL ROLL 12310403 PAGE 1
************************************************************************************************************************************
RATES AND * TAX RATE * HOMESTEAD LOCAL OPTION 00% * OVER SIXTY-FIVE LOCAL OPTION 17,500 * DISABILITY LOCAL OPTION 17,500
ALLOWANCES * $ .670000 * STATE MANDATED 0 * STATE MANDATED 0 * STATE MANDATED 0
************************************************************************************************************************************
ACCOUNTS SUB-TOTALS
GROSS VALUE IN DISTRICT 63,042 5,096,682,160
* MINUS EXEMPT ACCOUNTS 3,989 279,049,449 4,817,632,711
MINUS AGRICULTURE ACCOUNTS 228
MARKET VALUE 28,119,550
PRODUCTION VALUE 1,013,030
LOSS DUE TO AG EXEMPTIONS 27,106,520 4,790,526,191
SUBJECT TO LATE PENALTY I
POLLUTION CONTROL 0 0 4,790,526,191
FREEPORT ACCOUNTS 0 0 4,790,526,191
LEASED VEHICLES 0 0 4,790,526,191
PRIMARILY CHARITABLE ORG 7 0 4,790,526,191
NET APPRAISED VALUE 59,046 4,790,526,191
LOSS DUE TO LIMIT 8,259 51,359,252 4,739,166,939
ABATED ACCOUNTS 1 2,394,150 4,736,772,789
HISTORICAL ACCOUNTS 9 3,854,160 4,732,918,629
EXEMPTIONS
STATE MANDATED HOMESTEAD 24,483 0 4,732,918,629
STATE MANDATED 065 8,140 0 4,732,918,629
STATE MANDATED DISABLED 1,155 0 4,732,918,629
LOCAL OPTION 065 8,140 139,533,400 4,593,385,229
LOCAL OPTION DISABLED 1,155 19,353,170 4,574,032,059
LOCAL OPTION HOMESTEAD 24,483 0 158,886,570 4,574,032,059
VETERAN EXEMPTIONS
EXEMPTION CODE 1 @ p p p
EXEMPTION CODE 2 @ 5000 212 1,034,190
EXEMPTION CODE 3 @ 7500 47 320,650
EXEMPTION CODE 4 @ 10000 47 446,920
EXEMPTION CODE 5 @ 12000 80 930,290
EXEMPTION CODE 6 @ 12000 232 2,529,660
EXEMPTION CODE 7 @ 12000 14 144,000
EXEMPTION CODE 8 @ 5000 11 50,000
TOTAL VETERAN 643 5,455,710
NET TAXABLE 4,568,576,349
GROSS TAX AMOUNT S 30,609.494.29 **
065 FROZEN TAX ACCOUNTS p >
065 BEFORE FROZEN TAX 00
MINUS 065 FROZEN TAX .00
LOSS DUE TO FROZEN TAX ***
DISABL FROZEN ACCOUNTS .00
DISABLE BEFORE FROZEN TAX p
MINUS DISABL FROZEN TAX .00
LOSS DUE TO FROZEN TAX *** .00
.00
NET TAX AMOUNT - - - - - - - - --- - - - - -- - --- - --- > $ 30,609,494.29
** GROSS TAX AMOUNT IS CALCULATED ON AN INDIVIDUAL ACCOUNT BASIS
** INCLUDES 4 PRORATED EXEMPT ACCOUNTS TOTAL PRORATED EXEMPT AMOUNT 77,519
TAX• CALCS221 JEFFERSON COUNTY APPRAISAL DISTRICT CITY OF BEAUMONT
8/09/2004 11.51.58 ADP3TAXC 2004 APPRAISAL ROLL PAGE 2
************************************************************************************************************************************
RATES AND * TAX RATE * HOMESTEAD LOCAL OPTION OOX * OVER SIXTY-FIVE LOCAL OPTION 17,500 * DISABILITY LOCAL OPTION 17,500
ALLOWANCES * $ .670000 * STATE MANDATED 0 * STATE MANDATED 0 * STATE MANDATED 0
************************************************************************************************************************************
CODE COUNT APPRAISED TAXABLE LEVY X OF TOTAL GROSS VALUE 5,096,682,160
Al 33,832 2,419,852,619 2,217,825,857 14,859,450.03 .4855
A2 144 1,637,330 1,261,650 8,453.10 .0003
A5 1,954 145,407,060 133,444,800 894,080.85 .0292
B1 1,329 151,628,062 151,558,062 1,015,439.44 .0332
B2 397 11,651,520 11,166,730 74,817.29 .0024
B4 3 97,350 97,350 652.24 .0000
C1 8,941 54,600,510 54,562,410 365,574.41 .0119
C2 925 21,010,190 21,010,190 140,769.12 .0046
Dl 150 1,547,810 1,547,810 10,370.43 .0003
D2 78 471,670 471,670 3,160.22 .0001
D3 35 1,429,520 1,429,520 9,577.82 .0003
D4 501 29,056,720 29,056,720 194,680.59 .0064
D5 2 10,460 10,460 70.08 .0000
E1 27 4,356,410 3,881,180 26,003.94 .0008
E2 1 101,600 101,600 680.72 .0000
Fl 2.980 886,520,390 882,545,810 5,913,058.31 .1932
F2 36 15,900,980 15.900,980 106,536.61 .0035
F5 33 2,147,690 2,147,690 14,389.56 .0005
F9 28 71,551,140 71,551,140 479,392.65 .0157
G1 103 2,395,600 2,395,600 16,050.62 .0005
G2 49 3,090 3,090 20.69 .0000
J2 23 8,041,960 8,041,960 53,881.14 .0018
J3 94 112,056,020 112,056,020 750,775.40 .0245
J4 17 56,363,750 56,363,750 377,637.14 .0123
J5 63 14,961,500 14,961,500 100,242.13 .0033
J6 165 10,499,010 10,499,010 70,343.44 .0023
J7 5 14.884,830 14,884,830 99,728.37 .0033
J8 109 17,013,760 17,013,760 113,992.29 .0037
L1 6,150 577,111,680 574,717,530 3,850,611.97 .1258
L2 7 672,310 672,310 4,504.48 .0001
L6 105 29,313,090 29,313,090 196,397.77 .0064
L8 23 71,669,650 71,669.650 480,186.67 .0157
L9 92 50,265,520 50,265,520 336,779.01 .0110
M1 415 1,619,390 1,471,100 9,856.55 .0003
O1 241 4,676,000 4,676,000 31,329.21 .0010
- -- -- - ---- -- -- --- - - -
59,057 4,790,526.191 4,568,576,349 30,609,494.29
A 35,930 2,566,897,009 2,352,532,307 15,761,983.98 .5149
B 1.729 163,376,932 162,822,142 1,090,908.97 .0356
C 9,866 75,610,700 75,572,600 506,343.53 .0165
D 766 32,516,180 32,516,180 2179859.14 .0071
E 28 4,458,010 3,982,780 26,684.66 .0009
F 3,077 976,120,200 972,145,620 6,513,377.13 ,2128
G 152 2,398,690 2,398,690 16,071.31 .0005
J 476 233,820,830 - 233,820,830 1,566,599.91 .0512
L 6,377 729,032,250 726,638,100 4,868,479.90 .1591
M 415 1,619,390 . 1,471,100 9,856.55 0003
0 241 4,676,000 4,676,000 31,329.21 .0010
--- - ---- --- - -- -
59,057 4.790,526,191 4,568,576,349 30,609,494.29
5
September 14, 2004
Consider approving a request for a specific use permit to allow a residential care facility in an
RCR(Residential Conservation and Revitalization) District at 685 Irma
City of Beaumont
•�• Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Stephen C. Richardson, Planning Manager
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 7, 2004
REQUESTED ACTION: Council consider a request for a specific use permit to allow a
residential care facility in an RCR (Residential Conservation and
Revitalization) District at 685 Irma.
RECOMMENDATION
The Administration recommends approval of a specific use permit to allow a residential care facility
in an RCR(Residential Conservation and Revitalization)District at 685 Irma,subj ect to redesigning
the off-street parking to comply with city codes.
BACKGROUND
Patty Lee is requesting a specific use permit to allow the continued operation of a residential care
facility at 685 Irma.
In May, 2004, the City Council denied an expansion of the Watts Home into 1901 Park Street.
During the public hearing on that case, Ms. Lee stated that the Watts Home was occupying a
structure at 685 Irma,next to the original location at 695 Irma. Ms. Lee was informed that 695 Irma
was the only legally permitted site and that a specific use permit would be required to operate at any
other location. Therefore, Ms. Lee is now requesting that a specific use permit be granted at 685
Irma.
Ms.Lee states that the purpose of the house at 685 Irma is to offer the women more privacy,comfort
and space in the four bedroom house. The house has three full bathrooms, a kitchen, a living room
and laundry room. Ms. Lee states that up until 2002,the women of Watts Home shared their living
room with business activities,visiting social workers,nursing visits and incoming supplies and other
traffic because their living room was located downstairs at 695 Irma.
Ms.Lee says that at 685 Irma,Watts Home is housing 12 women who cannot live by themselves and
are not able to live at home with family and friends. The staff provides life skills training such as
good hygiene and self help outreach.
In 2002, a fire alarm system was installed, inspected and approved.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
At a Joint Public Hearing held August 16, 2004, the Planning Commission voted 8:0 to approve a
specific use permit to allow a residential care facility in an RCR (Residential Conservation and
Revitalization)District at 685 Irma,subject to redesigning the off-street parking to comply with city
codes.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
Planning Commission, City Manager, Public Works Director and the Planning Manager.
ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE
PERMIT TO ALLOW A RESIDENTIAL CARE FACILITY IN AN
RCR (RESIDENTIAL CONSERVATION AND
REVITALIZATION) DISTRICT LOCATED AT 685 IRMA IN
THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS.
WHEREAS, the City Council for the City of Beaumont desires to issue a specific
use permit to Patty Lee to allow a residential care facility in an RCR (Residential
Conservation and Revitalization) District located at 685 Irma, being Lot 5, Block 2, Jersey
Farm Addition, City of Beaumont, Jefferson County, Texas, containing 0.165 acres, more
or less, as shown on Exhibit "A" attached hereto; and,
WHEREAS, the City Council is of the opinion that the issuance of such specific use
permit is in the best interest of the City of Beaumont and its citizens, subject to the
hereinafter described condition;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
That a specific use permit to allow a residential care facility in an RCR (Residential
Conservation and Revitalization) District located at 685 Irma, being Lot 5, Block 2, Jersey
Farm Addition, City of Beaumont, Jefferson County, Texas, containing 0.165 acres, more
or less, as shown on Exhibit"A" attached hereto, is hereby granted to Patty Lee, her legal
representatives, successors and assigns, subject to the following condition:
• Redesign the off-street parking to comply with city codes.
Section 2.
That the specific use permit herein granted is expressly issued for and in
accordance with each particular and detail of the site plan attached hereto as
Exhibit "B" and made a part hereof for all purposes.
Section 3.
Notwithstanding the site plan attached hereto, the use of the property herein above
described shall be in all other respects subject to all of the applicable regulations
contained in Chapter 30 of the Code of Ordinances of Beaumont, Texas, as
amended.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day
of September, 2004.
- Mayor Evelyn M. Lord -
is vs f! !! !o i ' It !f K♦ii t �;`ff fl,! 11 q ? 'tI' f0� t1 l! ll 7. 4r4,
!
FILE 1731-P: Request for a specific use permit to allow a residential care facility in an NORTH
RCR(Residential Conservation and Revitalization)District
Location: 685 Irma
N � Applicant: Patty Lee ;SCALE
J
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EXHIBIT' "A"
Outside Trash- '
+ Landscape;Butler : .
Storage
Facility ;.
Handicap Ramp
Handicap Parking
y and sign
i
d• t
all rt r }
Location of rIT
lights on the top Porch W . V Landscape Butler
of the building
Sign On •• `
Balcony
2ft. X 3 ft. 685 Irma Watts
2 Homes,Inc.
SINGLE STORY Property
RESIDENTIAL _ (60 ft. X 120 ft.)
BUILDING
xi x
,12.
Gross - - ) Existins
Floor Area `
1840 sq.ft. _ y W arking
` Proposed
_ Parking
1 2 3 4
GARAGE 8 Ft. Fence
3 .O
y 5 b
~STORAGE torag� .
230 SQ. FT. 100 sq. Gross Floor
ft. Area-440
ergo 8 Ft. Fence sq.ft.
Gross 0 10 20
Concrete Scale In Feet
SI GROUP, LP SITE PLAN
ENGINEERING • ENVIRONMENTAL SCIENCE
avared for PROJECT: 04CS 123
LOCATION: 685 IRMA STREET BEAUMONT,TX
WATTS HOME, INC. APPR: MG DATE: 04/21/04
DRAWN BY: SB SCALE: AS SHOWN
DATE: 04 20 04 FIGURE: 1
* Approval subject to redesigning the off-street parking to comply with city codes.
EXHIBIT "B"
6
September 14, 2004
Consider adopting an ordinance accelerating the expiration of the existing electric franchise
ordinance between the City of Beaumont and Entergy Gulf States, Inc. and granting a new
franchise to Entergy Gulf States, Inc. adopting a new method of compensation
f C * of Beaumont
� = Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Lane Nichols, City Attorney
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: August 19, 2004
REQUESTED ACTION: Council to consider adopting an ordinance accelerating the expiration
of the existing electric franchise ordinance between the City of
Beaumont and Entergy Gulf States,Inc.and granting a new franchise
to Entergy Gulf States,Inc. adopting a new method of compensation.
RECOMMENDATION
Administration recommends approval of an ordinance accelerating the expiration of the existing
electric franchise ordinance between the City of Beaumont and Entergy Gulf States,Inc.and granting
a new franchise which will include a new method of compensation to the City for the use of its streets
and rights-of-ways.
BACKGROUND
The State of Texas enacted Senate Bill 7 (761 Legislature, 1999) which provided for retail electric
competition to commence in most of the State on January 1,2002. That same legislation provided
that utilities providing distribution service would begin paying franchise compensation to cities for
the right to use city rights-of-ways based on a factor equal to the franchise revenue received by the
city during the year 1998 divided by the number of kilowatt hours used in that year. This method of
compensation substituted for what was in Beaumont 4% of gross receipts of the company for
providing electric service. However, rates for Entergy Gulf States, Inc. in 1998 had been reduced
significantly based on pending rate actions. As a result, the factor which was based on 1998 total
receipts has not produced revenues for the years 2002,2003 and 2004 that were even equal to 1998
franchise revenues. Franchise revenues to the city have been significantly less than they should have
been.
MEETING DATE: August 24, 2004 PAGE 2/2
AGENDA MEMO DATE: August 19, 2004
REQUESTED ACTION: New Franchise for Entergy Gulf States, Inc.
This problem was discussed with Dan Lawton,an attorney who has represented the coalition of cities
in rate matters in the past. He suggested that the law allowed the company and the city to enter into
a franchise agreement with new compensation provisions. To that end, we scheduled a meeting on
August 5, 2003 with 1Entergy, Gulf States, Inc. which was coordinated with the City of Port Arthur
who had the same franchise compensation problems. At that meeting, the Cities of Beaumont and
Port Arthur agreed in principal with Entergy Gulf States, Inc. to a procedure which would result in
the enactment of a new franchise agreement which would include a compensation provision that
allowed for a per kilowatt hour unit rate calculated on the year 2001. The company was willing to
participate in this project so long as they could be made whole for any additional franchise fees,costs
or expenses which resulted from the new franchise, its implementation and approval by the Public
Utilities Commission of Texas.
The new franchise ordinance which is presented today complies with that general understanding in
that it provides the City of Beaumont with a new compensation method which will produce revenues
above last year's payment in excess of$1,000,000. Additionally,it provides safeguards to insure that
the incremental costs of these franchise payments to Entergy Gulf States, Inc. will be collected
through a surcharge rider to be approved by the City first and then by the Public Utilities
Commission. Additionally, the franchise provides for the reimbursement to the company of any
additional expenses or costs associated with the approval of this plan or the implementation of the
ordinance. We contemplate that many other cities will enact new franchise ordinances. When they
do so they will pay a portion of the additional costs reimbursed to Entergy Gulf States, Inc.
BUDGETARY IMPACT
The new franchise will produce higher franchise revenues to the City commencing after the franchise
and.the surcharge rider are approved by the Public Utilities Commission of Texas. Under our
Charter,franchises require three readings before they are passed. The franchise does not take effect
until sixty(60) days after its adoption on the third and final reading;which means if this ordinance
is adopted on the first reading on August 24,2004, it could not be passed until September 28,2004.
It would then be effective in late November subject to the approval of the surcharge rider by the
Public Utilities Commission of Texas.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
The ordinance must be adopted in accordance with the charter which requires that its adoption must
be at least thirty(30) days from its first reading.
RECOMMENDED BY
City Manager and City Attorney.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF BEAUMONT ACCELERATING THE
EXPIRATION OF THE EXISTING ELECTRIC
FRANCHISE BETWEEN THE CITY OF BEAUMONT
AND ENTERGY GULF STATES, INC., WHICH PASSED
THIRD AND FINAL READING ON THE 19TH OF
SEPTEMBER, 1961 AND WAS AMENDED BY
ORDINANCE NO. 82-137, AND GRANTING A NEW
FRANCHISE TO ENTERGY GULF STATES, INC.;
AUTHORIZING THE CITY'S ATTORNEY TO SEEK
APPROVAL FROM THE PUBLIC UTILITY
COMMISSION OF TEXAS OF A FRANCHISE FEE
SURCHARGE TARIFF; PROVIDING AN EFFECTIVE
DATE UPON THE ACCEPTANCE IN WRITING OF THE
SURCHARGE BY ENTERGY GULF STATES, INC.;
AND FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS ORDINANCE WAS
CONSIDERED WAS OPEN TO THE PUBLIC AND IN
ACCORDANCE WITH TEXAS LAW.
WHEREAS, the City of Beaumont ("City") contends that consideration or
compensation for the use of the City's streets, alleys and rights-of-way paid by Entergy
Gulf States, Inc. ("EGSI" or "Company") has not kept pace with changes in the rate of
inflation or the increasing cost of goods and services or the requirements of the Public
Utility Regulatory Act Section 33.008; and
WHEREAS, Section 1 of Ordinance 82-137 which amends Sections 11 and 19 of
the franchise agreement which passed on its third and final reading on the 19th of
September, 1961, hereinafter sometimes referred to in combination as the "existing
franchise agreement", provides for the annual payment consisting of the sum of money
equal to four percent (4%) of the annual gross receipts of Company within the City from
electric lighting and power sales for consumption within the corporate limits of the City,
exclusive of receipts from (i) sales to industrial consumers, (ii) sales for governmental
pumping, and (iii) street lighting; and
WHEREAS, the method of calculating this payment was modified by EGSI in
Ordinance 1
response to the enactment, by the 76th Legislature, of Section 33.008 of the Public
Utility Regulatory Act ("PURA"), and the revised rate, as provided by said statute, is
$0.00215246407 per kilowatt hour ("kWh") for each kWh delivered by EGSI within the
corporate limits of the City and is a reflection of calculating the rate based upon
consumption instead of gross receipts; and
WHEREAS, the City of Beaumont is concerned that the per kWh method of
calculating the amount of franchise fees due to the City may produce a lower level of
franchise compensation than the gross receipts method contained in Section 1 of
Ordinance No. 82-137 if, with everything else being equal, the cost of electric generation
increases; and
WHEREAS, laws enacted by the 76th Legislature provide that on the expiration
of a franchise agreement existing on September 1, 1999, an electric utility and a
municipality may mutually agree to a different level of compensation or to a different
method for determining the amount the municipality may charge for the use of a
municipal street, alley, or public way in connection with the delivery of electricity at retail
within the municipality; and
WHEREAS, the City desires, and EGSI agrees, conditional upon EGSI's
satisfaction that procedures are in place by which EGSI will recover any and all
incremental increases in franchise payments, associated with this ordinance, over the
amounts calculated pursuant to the existing franchise agreement, as modified by
Section 33.008 of PURA, together with all associated costs and expenses, including
gross receipts taxes, to accelerate the expiration of the existing electric franchise, and to
execute a new franchise agreement which is consistent with the new law; and
WHEREAS, it is reasonable that EGSI, as a condition to its agreement, requires
procedures and processes to be in place, to its satisfaction, by which it will recover all
associated increases in payments and associated costs, expenses and taxes; and
WHEREAS, it is reasonable that the expiration of the existing franchise and the
contemporaneous implementation and effect of new franchise agreement be
conditioned upon EGSI's acceptance in writing of an order of the Public Utility
Commission of Texas ("PUCT" or "Commission") which approves a surcharge that
Ordinance 2
authorizes the Company to collect any incremental increase in franchise payments over
the amounts calculated pursuant to the existing franchise agreement, as modified by
Section 33.008 of PURA, together with all associated costs and expenses, including
gross receipts taxes; and
WHEREAS, it is the intention of the City and EGSI that certain provisions of this
ordinance providing for EGSI's recovery of any incremental increase in franchise
payments over the amounts calculated pursuant to the existing franchise agreement, as
modified by Section 33.008, together with all associated costs and expenses, shall
remain in effect even if other provisions, such as, but not limited to, those providing for a
per-kWh calculation of franchise payments, are found to be null and void; and
WHEREAS, by this ordinance the City is authorizing the City's attorney to take
action to obtain a PUCT order that would include the provisions set forth in the
immediately preceding paragraphs; NOW THEREFORE,
BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS THAT:
Section 1. That the findings and provisions set out in the preamble to this
ordinance are hereby in all things approved and adopted.
Section 2. The expiration date of the existing franchise agreement is hereby
amended to provide for an expiration date contemporaneous with the effective date of
this ordinance and the attached franchise agreement ("new franchise agreement").
Section 3. Subject to EGSI's acceptance, as provided in this ordinance and
the new franchise agreement and as required for this ordinance to become effective, the
franchise agreement attached as Exhibit A and signed (for the purpose of
this ordinance "new franchise agreement"), is hereby enacted and is incorporated by
reference herein and will be in full force and effect upon the effective date as provided
therein and in Section 5 of this ordinance.
Section 4. This Section 4 is included for explanatory purposes only and is not
intended to change or alter, and does not change or alter, in any respect, the new
franchise agreement.
a. The new franchise agreement provides that the franchise fee due
Ordinance 3
from EGSI shall be calculated by multiplying the factor of
$0.00316612909 per kWh times the total kWh delivered by EGSI
during the preceding calendar quarter to each retail customer
whose consuming facility's point of delivery is located within City's
boundaries. This franchise rate replaces the rate provided by the
franchise agreement existing on the effective date of this ordinance,
as modified by Section 33.008 of the Public Utility Regulatory Act
("P U RA")
b. This ordinance and the new franchise agreement, including the franchise
rate therein, reflect the mutual interest of both the City and EGSI. An
underlying premise is that the Company shall be kept financially whole
with respect to any and all increases in franchise fees calculated pursuant
to the new franchise agreement over and above the franchise fees
calculated under the existing franchise agreement, as modified by Section
33.008 of the PURA, together with all associated costs and expenses,
including gross receipts taxes ("incremental amounts"). Consistent with
this premise, the Company shall collect such incremental amounts through
a "corresponding surcharge."
C. As provided below, and as provided in the new franchise agreement, the
corresponding surcharge must be approved by the Public Utility
Commission of Texas as a condition to this ordinance taking effect.
Attached to this ordinance as Exhibit B is a tariff entitled Municipal
Franchise Fee Surcharge that City intends as the corresponding
surcharge, subject to any amendments necessary to accommodate
EGSI's acceptance as required herein.
Section 5. Effective date. Except as provided in Section 7 below, this
ordinance shall take effect ("effective date") upon the latter of 1) its final passage, or 2)
EGSI's acceptance, in writing (in the form provided below) of a final order of the
Commission ("final order") approving the corresponding surcharge implementing
collection of the incremental amounts described in Section 4. Such acceptance shall be
Ordinance 4
within the sole discretion of EGSI. If applicable, such acceptance shall be filed with the
Office of the City Secretary, within thirty (30) days of the final order, in substantially the
following form:
To the Honorable Mayor and City Council:
EGSI acting by and through the undersigned authorized
officer hereby accepts in all respects, on this the day
of ' 2004, Ordinance No.
amending, and accelerating the expiration of, the existing
electric franchise between the City and EGSI and
implementing the new franchise agreement, and the same
shall constitute and be a binding contractual obligation of
EGSI and the City.
Entergy Gulf States, Inc.
By:
Title:
In the event that EGSI has not filed said acceptance as required, and in the form
provided, within the specified thirty (30) day period, this ordinance shall not become
effective.
Section 6. Upon the effective date of this ordinance, EGSI is authorized to
charge the Municipal Fee surcharge as set forth in the attached tariff, or any
amendment thereof, as the corresponding surcharge referred to in Section 4, said
surcharge to be effective on the 1 st day of the 1 st full billing cycle subsequent to the
effective date of this ordinance.
Section 7. Notwithstanding the provisions of Section 5 above, the following
provisions shall apply and become effective upon the passage of this ordinance [which
shall be prior to its effective date as defined in Section 5].
(a) City's attorney is authorized to take action to obtain a PUCT order as
contemplated in this ordinance and approving the attached Municipal
Franchise Fee Surcharge, which shall be amended as necessary to
accommodate EGSI's acceptance as required herein.
(b) As part of the consideration for this ordinance and the new franchise
Ordinance 5
agreement, the City shall bear the costs and expenses associated with
obtaining the approval of the corresponding surcharge (regardless of
whether the PUCT approves the corresponding surcharge and regardless
of whether EGSI accepts such approval). Such costs and expenses
include, but are not limited to:
i. costs and expenses of the City, related to obtaining approval of the
corresponding surcharge; and/or
ii. costs and expenses of or to EGSI related to obtaining approval of
the corresponding surcharge, whether such costs and expenses
are associated with EGSI's employees or consultants and/or
attorneys retained by EGSI, including, but not limited to, costs and
expenses incurred in preparing for and/or supporting the PUCT
filing, docket or proceeding initiated for the approval of the
corresponding surcharge.
Such costs and expenses of or to EGSI, as are enumerated in
Subsections 7(a)(i) and (ii) above, including carrying costs, shall be
recovered from the City pursuant to direct payment or a reduction of future
franchise payments as provided in this subsection. Prior to EGSI's
reduction in franchise payments, EGSI shall provide the City 30 days for a
one-time opportunity to make a direct payment to EGSI of any such costs
or expenses, such 30 days to run from City's receipt of Company's written
notice, which written notice shall identify any such costs and expenses.
Subsequent to said 30 day period, and in the absence of timely direct
payment by the City of the entirety of such costs and expenses, EGSI is
authorized to reduce any future franchise payment(s) in an amount equal
to any unpaid portion of such costs and expenses identified. At its sole
discretion, EGSI may recover all costs or expenses identified in any notice
in a one-time reduction to a future franchise payment. EGSI is authorized
to pursue the procedure(s) set forth in this subsection periodically as
determined by EGSI, in its sole discretion, to be required for the recovery
Ordinance 6
of any ongoing expenditure of such costs and expenses.
Section 8. Nothing in this ordinance, nor EGSI's acceptance as provided
herein, has the affect of conceding City's jurisdiction over EGSI's rates, including the
corresponding surcharge.
Section 9. The attached Municipal Franchise Surcharge (or an amendment as
referenced in Section 6) and Franchise Agreement signed by the Mayor, City of
Beaumont the President, EGSI—TX, and dated the day of
2004, are adopted and made part of this ordinance.
Section 10. If any provision, section, subsection, sentence, clause or phrase of
this ordinance is, for any reason, held to be unconstitutional, void or invalid (or for any
reason unenforceable), the validity of the remaining portions of this agreement shall not
be affected thereby, it being the intent of the City in adopting this ordinance that no
portion thereof or provision or regulation contained herein shall become inoperative or
fail by reason of any unconstitutionality or invalidity of any other portion, provision, or
regulation, and, to this end, all provisions of this ordinance are declared to be severable.
Section 11. It is 'hereby officially found and determined that the meeting at
which this Ordinance passed is open to the public as required by law and that public
notice of the time, place and purpose of said meeting was given.
PASSED AND APPROVED ON THE FIRST READING this day of
, 2004.
ATTEST:
City Secretary Mayor
PASSED AND APPROVED ON THE SECOND READING this day of
, 2004.
ATTEST:
Ordinance 7
I
City Secretary Mayor
READ IN FULL AND PASSED AND ADOPTED ON THE THIRD
REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF this
day of 2004.
ATTEST:
City Secretary Mayor
Ordinance 8
FRANCHISE AGREEMENT
WHEREAS, the City of Beaumont ("City") desires to enter into a franchise
agreement granting to Entergy Gulf States, Inc. ("EGSi" or "Company") the right,
privilege and franchise to conduct within the City, an electrical lighting and power
business and to enter upon, erect, construct, maintain, extend, repair, replace
and remove in, under, upon, within, over, above, across and along any and all of
the present and future public roads, highways, streets, lanes, and alleys of the
city, and over and across any and all stream or streams, and bridge or bridges
now or hereafter owned or controlled by City, a system of poles, pole lines,
towers, distribution lines, transmission lines, wires, guys, cables, conduits,
transformers, and other distribution and transmission instrumentalities, facilities
and appurtenances (including telephone and telegraph poles and wires for said
company's own use), necessary or proper for the transmission and distribution of
electricity into, in, within, from, across, and through the City , as now existing, or
as said city limits may hereafter be extended, and
WHEREAS, the City desires to grant EGSI, its successors and assigns,
the authority to use such for the purpose of transmission, distribution, delivery
and sale of electricity to the City, and to the inhabitants of the City, or any other
person or persons, firms or corporations, wherever located within or without the
city limits of Beaumont, for use by such purchaser or purchasers, for light, power,
cooling and heat or for either or all of said purposes, or for any other purpose or
purposes for which electricity may be used;
WHEREAS, the franchise provided herein shall be effective until February
12, 2018, commencing upon and extending from the effective date as provided
herein;
WHEREAS, the City desires to provide for: the temporary removal, raising
or lowering by Company of its wires and other appurtenances; the right to, and
condition of, the opening of pavements and sidewalks by company; the retention
of all rights of City to regulate the location of Company's facilities in, upon, along,
under and over the streets, alleys and other public places of City, as well as to
require the re-location of same; the waiver of claims for damages by Company
Franchise Agreement Page 1
EXHIBIT "A"
against, and the provision of indemnity to, City; efficient electrical service and the
maintaining of Company's facilities; the use by Cite fcr the purposes specified of
poles and conduits of Company;
WHEREAS, the City and Company desire to provide for: fair
compensation, and method of payment of such, to the City for the use by
Company of the streets, alleys and public ways of the City; and the surcharge
recovery by EGSI of certain incremental franchise payments, together with
associated costs and expenses (including gross receipts taxes), paid to the City
by Company pursuant to this franchise;
WHEREAS, said franchise shall: provide for the maintenance of records
by Company with right of inspection by City reserving to City all powers of
regulation; prohibit assignment except by consent by City; give City's consent to
the cutting and trimming by Company of conflicting trees; provide a severability
clause; provide that this franchise shall not be exclusive; and provide that the City
shall have the right at any time within five years of the expiration of the term
hereof, but prior to the last twelve months of said term, to purchase, or cause to
be purchased, the property of the holder of this franchise within the limits of City
and devoted to public service hereunder, and shall provide a method of
determining the value of such properties if such purchase is made; make
miscellaneous provisions relative to this grant of franchise; and repeal all
previous electrical lighting and power franchise ordinances and agreements; and
WHEREAS, said franchise shall provide for the publication of this
franchise agreement and condition its effectiveness on acceptance by Company
as provided therein;
NOW THEREFORE:
Section 1.
Subject to the terms, conditions, and provisions of this franchise
agreement (sometimes "franchise" or "agreement"), the City of Beaumont, Texas,
hereinafter referred to as "City", does hereby grant unto Entergy Gulf States, Inc.,
hereinafter referred to as "EGSI" or "Company", its successors and assigns, the
right, privilege and franchise to conduct within the boundaries of the City, as such
Franchise Agreement Page 2
boundaries now exist or may hereafter be extended, an electrical lighting and
power business and to enter upon. erect, construct, maintain, extend, repair,
replace and remove in, under, upon, within, over, above, across and along any
and all of the present and future public roads, highways, streets, lanes and alleys
of the City and over and across any stream or streams, bridge or bridges, now or
hereafter owned or controlled by the City a system of poles, pole lines, towers,
distribution lines, transmission lines, wires, guys, cables, conduits, transformers,
and other distribution and transmission instrumentalities, facilities and
appurtenances (including telephone and telegraph poles and wires for
Company's own use) necessary or proper for the transmission and distribution of
electricity into, in, within, from, across and through the City as now existing or as
the said city limits may hereafter be extended; and Company, its successors and
assigns, are authorized to use said poles, pole lines, towers, distribution lines,
transmission lines, wires, guys, conduits, transformers, and other distribution and
transmission instrumentalities, facilities and appurtenances for the transmission,
distribution, delivery and sale of electricity to the City and to the inhabitants of the
City or any other person or persons, firms or corporations wherever located
within or without the city limits of Beaumont for use by such purchaser or
purchasers for light, power, cooling and heat, or for either or all of said purposes,
or for any other purpose or purposes, whether same or different from those
herein specified for which electricity may be used.
Section 2.
Company, on written request of any person, firm, corporation or
governmental authority, shall relocate, raise or lower its wires, where located on,
in or over the streets, alleys and other public ways of City, temporarily to permit
construction work in the vicinity thereof, or to permit the moving of houses or
other bulky structures. The expense of such temporary relocation, raising or
lowering of such wires shall be paid by the benefited party or parties, and the
Company may require the payment in advance, being without obligation to
remove, raise or lower its wires until such payment shall be made, provided,
however, that no such payment shall be required of the City except as provided
in Section 3. The Company shall be given not less than forty-eight (48) hours
Franchise Agreement Page 3
prior notice to arrange for such temporary wire changes.
Section 3.
Within the streets or other public ways of the City, the location and route of
all poles, stubs, guys, anchors, lines, conduits and cables placed and constructed
and to be placed and constructed by Company in the construction and
maintenance of its electrical lighting and power system in, within and through the
City shall be subject to the reasonable and proper regulation, control and
direction of the City, or of any city official to whom such duties have been or may
be duly delegated. All poles erected by the Company shall be so set that they
will not interfere with the flow of water in any gutter or drain and so that the same
will interfere as little as practicable with the ordinary travel on the streets,
sidewalks or other public way. The regulation and control herein reserved shall
include, but not by way of limitation, the right to require in writing the relocation of
Company facilities at Company's cost, within the streets or other public ways
whenever such shall be reasonably necessary on account of the removal of a
traffic hazard, the widening, change of grade, relocation or other City construction
within such streets or public ways; provided, however, Company shall be entitled
to be paid for its costs and expenses of any relocation, raising or lowering of its
wires, required by City, pursuant to this Section or Section 2, if such expenses or
costs are reimbursable or payable to the Company or the City by the State of
Texas, the United States or any governmental agency or subdivision of either,
whether directly or indirectly, but nothing herein shall impose any obligation on
the City to pay such costs and expenses except to the extent it receives funds
from the United States, State of Texas, or any governmental agency or
subdivision of either, for the reimbursement or payment of same.
Section 4.
If it becomes necessary in furnishing electricity as contemplated under this
franchise, the City grants to the Company the right and privilege to take up
pavements and sidewalks, if any, in and upon said streets, alleys and highways
in said City of Beaumont, and such as may be over and across any stream or
bridge, for the purpose of making such excavation and installation as may be
Franchise Agreement Page 4
necessary; provided, however, that Company shah not take up cr excavate any
pavement at any time without first securing permission of the Director of Public
Works of City or City Manager; and provided further, that all excavations and
installations so made shall be performed in such manner as will cause the least
inconvenience to the public, and Company shall promptly restore to as good
condition as before working thereon, and to the reasonable satisfaction of the
Director of Public Works of City or City Manager, all streets excavated by it. The
City of Beaumont shall have the right to have one inspector present at each
excavation and installation, whose salary for the time he is so present at, and
traveling to and from, such excavation or installation, shall be paid by Company.
Section 5.
If any of the facilities installed by Company hereunder shall be in any
respect damaged or injured by The City of Beaumont or any of its officers,
agents, representatives, or employees, in connection with the performance of any
work or repairs that may be done upon the streets, avenues, alleys, and other
public places of the City of Beaumont, Company shall not be entitled to prosecute
or maintain a claim against the City of Beaumont for any such damage or injuries
so sustained by it, and the same is hereby in all things waived; provided,
however, the foregoing portion of this Section shall not apply where such
property is damaged or injured as a proximate result of installing, maintaining or
removing City's equipment upon or from Company's poles, or in or from
Company's ductlines, as provided in Section 9 hereof.
Section 6.
The City, by the granting of this franchise, does not surrender or to any
extent lose, waive, imperil or lessen the lawful powers and rights now or
hereinafter vested in the City under the Constitution and statutes of the State of
Texas and under the Charter of the City to regulate the rates for services of
Company; and Company, by its acceptance of this franchise, agrees that all such
lawful regulatory powers and rights as the same may be from time to time vested
in the City shall be in full force and effect and subject to the exercise thereof by
the City at any time and from time to time.
Franchise Agreement Page 5
Section 7.
It shall be the Company's obligation hereunder to furnish efficient electrical
service to the public at its rate schedule, said service to be first class in all
respects, considering all circumstances, and Company shall maintain its system
in reasonable operating condition during the continuance of this agreement.
Section 8.
Nothing contained in this franchise agreement shall be construed as
conferring upon Company any exclusive rights or privileges of any nature
whatsoever.
Section 9.
In addition to the consideration set forth elsewhere in this franchise
agreement, the Company shall hold itself ready to furnish free of charge, subject
to the use of the City, such pole space as may be required from time to time for
the installation of City-owned traffic, police and fire alarm system conductors, and
alarm or other necessary signal boxes; provided that such conductor space does
not exceed the capacity of one cross-arm on any one pole, and provided that
such space is then available on existing poles. The specific location for these
traffic, police and fire alarm conductors and boxes on Company's poles shall be
determined by the Company, and will be allotted at the times specific applications
for space are received from the City. Where a main underground ductline is
constructed or installed between manholes by Company after the effective date
of this franchise agreement, Company shall, as part of same, provide free of
charge for the installation by City of its traffic, police or fire alarm cables, one top
duct having one capped off entry channel and one capped off exit channel
between each two manholes, such entry and exit channels leaving the duct bank
enclosure outside of, but near to, such manholes, and no cable or other
equipment of City shall enter Company's manholes. Company shall, prior to
each addition by it to any duct now existing or hereafter constructed, notify the
Electrical Department of City of the nature and location of such intended addition;
further, Company shall, along with its application for a permit to open a street for
the purpose of laying a new duct, provide the City Electrical Department and the
Franchise Agreement Page 6
City Engineer's office each with a set of plans snowing the type, number, and
location in the street, of the ducts to be constructed. City, prior to the original
installation by it of its equipment in any such top duct, shall notify Company of the
time and place it intends to make such entry and installation. All cables installed
by the City in Company ducts shall be of the non-metallic, sheath type to prevent
corrosive or electrolytic action between the City and Company-owned cables. All
City-owned conductors and cables, whether on poles or in ductlines, shall be
constructed, maintained and operated in such manner as to not interfere with or
create a hazard in the operation of the Company's electrical transmission and
distribution system. Further, all City-owned traffic, police and fire alarm
conductors, and alarm boxes, and any City circuits on Company poles, and all
cables installed by City in ducts constructed by Company, shall be installed in
strict compliance with the applicable provisions of the National Electric Safety
Code, Handbook 30, as published in March, 1948, by the United States
Department of Commerce, Bureau of Standards, as from time to time amended
or supplemented; provided, however, nothing herein shall impair the right of the
City in the future by ordinance to adopt any new, amended or revised code, or by
ordinance to specify such further or different standards as may be found to be in
the public interest.
Section 10.
The design and purpose of this franchise fee compensation clause is to
establish an administratively simple uniform method of compensating the City for
the use of the public right-of-way that: (1) is consistent with state law; (2) is
consistent with the opening of the markets for competition; (3) is competitively
neutral and nondiscriminatory; (4) is consistent with the burdens placed on the
City created by EGSI's use of the right-of-way; (5) provides fair and reasonable
compensation for the use of the public right-of-way; and (6) provides a
mechanism by which EGSI will remain financially whole with respect to any
increases in franchise payments resulting from the implementation of this
franchise over and above the franchise fees calculated under the previous
franchise agreement, as modified by Section 33.008 of the PURA, together with
all associated costs and expenses, including gross receipts taxes. (Hereinafter,
Franchise Agreement Page 7
such, incremental franchise fees and associated costs and expenses, incluaing
gross receipts taxes are referred to as "incremental amounts").
(a) In consideration of the right granted by the City to EGSI to use and
occupy the Public Ways in the City for the conduct of its business
under this agreement, the Company agrees to pay to the City franchise
fees in the amount and manner described herein. The rate provided in
Subsection (b) shall be effective for any delivery of electricity that will
be billed to retail customers on the first day of the month immediately
following the effective date of this franchise agreement. Franchise fee
rental payments shall be made on a quarterly basis on or before the 15
th day of May, August, November and February for the preceding
calendar quarter ending March, June, September and December of
each year. The first quarterly payment shall be due on the due date
immediately following the first full calendar quarter following the
effective date of this agreement. If necessary, EGSI shall adjust its
first payment to include any increase in the amount of franchise fees
resulting from this agreement that are owed for deliveries made in any
partial previous quarter for which this agreement became effective. Ail
franchise fees due and owing to the City for the period prior to the
effective date of this agreement shall be paid on or before the first day
of August subsequent to the effective date of this franchise agreement.
(b) Except as otherwise provided below in Subsection 10(g), and subject
to any reductions in payments as provided below in this Section 10, the
quarterly franchise fee shall be a sum of money which shall be
equivalent to a $0.00316612909 charge per kilowatt hour (or "kWh")
multiplied times the number of kilowatt hours delivered by EGSI to
each retail customer whose consuming facility's point of delivery is
located within the City's boundaries.
(c) An underlying premise of this franchise agreement and the ordinance
implementing it is that the Company shall be kept financially whole with
respect to any and all incremental amounts, as defined above in this
Franchise Agreement Page 8
Section 10.
i. EGSI shall collect such incremental amounts through 1) a
corresponding surcharge designed to collect the incremental
increases in franchise fees calculated pursuant to the rate set forth
in Subsection (b), including any increase due to the escalator
provided for in Subsection 10(I), over and above the franchise fees
calculated under the previous franchise agreement, as modified by
Section 33.008 of the PURA, along with all applicable taxes,
including gross receipts taxes ("corresponding surcharge"), which
surcharge shall be approved by the Public Utility Commission of
Texas ("PUCT° or "Commission"), and 2) a direct payment from the
City to EGSI or a reduction in franchise payments to City, as set
forth below.
ii. The corresponding surcharge referred to in the preceding
Subsection shall become effective on the 1 St day of the 1 st full
billing cycle subsequent to the effective date of the ordinance
implementing this franchise.
iii. In the event the Company does not collect in the corresponding
surcharge all incremental amounts associated with the three-month
periods corresponding with the quarterly due dates as set out in
Subsection 10(a), the Company is authorized to collect such
amounts not collected in the surcharge ("uncollected difference")
through either direct payment by City or a reduction of franchise
payments to City as provided in this Subsection. Prior to EGSI's
reduction in franchise payments, EGSI shall provide the City 30
days for a one-time opportunity to make a direct payment to EGSI
of any uncollected difference, such 30 days to run from City's
receipt of Company's written notice, which shall identify the
uncollected difference, the time period over which the uncollected
difference accrued and a detailed explanation of the calculations.
Subsequent to said 30 day period, and in the absence of timely
direct payment by the City of the entirety of the uncollected
Franchise Agreement Page 9
difference, EGSI is authorized to reduce any future franchise
payment(s) in an amount equal to any unpaid uncollected
difference not paid by the City. EGSI is authorized to implement
the procedures set forth in this Subsection periodically as EGSI, in
its sole discretion, determines is necessary to recover any ongoing
uncollected difference.
iv. With respect to the preparation for, or implementation of, retail open
access in EGSi's Texas service territory, City agrees to authorize
and support the approval and implementation of a monthly
surcharge for both Entergy's affiliate distribution company in Texas
("DISCO") and Entergy's affiliate retail electric provider in Texas
("REP") that provides for the collection and recovery of the same
amounts as are recovered through the corresponding surcharge
described in Subsection 10(c). The monthly surcharge described in
this subsection shall be in addition to the base rates otherwise
established for DISCO or the Price to Beat rates otherwise
established for the REP.
v. The corresponding surcharge described in this Subsection 10(c)
shall appear as a line item on EGSI's retail electric bill and identified
as a "Municipal Franchise Fee."
(d) In addition to the provisions of Subsection 10(c), EGSI is authorized to
reduce the quarterly franchise payments by $150.00. Further, the City
shall have until the latter of December 31, 2004 or 90 days after the
effective date of this franchise agreement to pay to EGSI an amount of
$24,400.00 for the cost of implementing the provisions of this franchise
agreement ("implementation costs"). In the event payment in full is not
timely made, the Company is authorized to reduce subsequent franchise
payments in an amount necessary to recover the entirety of the
implementation costs.
(e) The City shall bear the costs and expenses of all claims, challenges, and
lawsuits, of either the City or EGSI, regarding the validity of the new
franchise agreement or the corresponding surcharge, regardless if such
Franchise Agreement Page 10
claim or challenge is brought before a regulatory authority or in a federal
or state court of law, including payment of attorneys fees and costs
associated with the defense to EGSI or affiliates of EGSI for any legal or
regulatory challenge to the new franchise agreement or corresponding
surcharge, at the time such claim or challenge is made. The costs and
expenses referred to in this Subsection include, but are not limited to:
i. costs and expenses of the City, related to obtaining
the corresponding surcharge; and/or
ii. costs and expenses of or to EGSI, whether such costs and
expenses are associated with EGSI's employees or consultants
and/or attorneys retained by EGSI in the defense of such claims,
challenges and lawsuits.
(f) Such costs and expenses of or to EGSI, as are enumerated in
Subsectionl0(e) above, including carrying costs, shall be recovered from
the City pursuant to direct payment or a reduction of franchise payments
as provided in this Subsection. Prior to EGSI's reduction in franchise
payments, EGSI shall provide the City 30 days for a one-time opportunity
to make a direct payment to EGSI of any such costs or expenses, such 30
days to run from City's receipt of Company's written notice, which written
notice shall identify any such costs and expenses. Subsequent to said 30
day period, and in the absence of timely direct payment by the City of the
entirety of such costs and expenses, EGSI is authorized to reduce any
future franchise payment(s) in an amount equal to any unpaid portion of
such costs and expenses identified. At its sole discretion, EGSI may
recover all costs or expenses identified in any notice in a one-time
reduction to a future franchise payment. EGSI is authorized to pursue the
procedure(s) set forth in this Subsection periodically as determined by
EGSI, in its sole discretion, to be required for the recovery any ongoing
expenditure of such costs and expenses.
(g) Upon the occurrence of any of the following events, the franchise fee rate
provided for in Subsection 10(b) shall no longer be applicable or effective
for the purpose of calculating the franchise payment:
Franchise Agreement Page 11
i. the recovery of tJhe incremental amounts through a corresponding
surcharge ceases, such as (but not exclusively) through the
PUCT's determination that the incremental amounts shall be
recovered through the Company's base rates rather than through
the corresponding surcharge;
ii. the PUCT or a court of competent jurisdiction 1) finds the
corresponding surcharge unlawful or otherwise prohibits the
surcharge recovery of the incremental amounts; 2) finds that the
franchise fees calculated under this Section 10, or the amounts
collected through the corresponding surcharge or through a
reduction in franchise payments, as provided herein, may not be
recovered by EGSI from its customers; or 3) in some manner
prevents or prohibits EGSI from recovering said incremental
amounts; and
with respect to the preparation for, or implementation of, retail open
access in EGSI's Texas service territory, EGSI or Entergy's affiliate
distribution company in Texas ("Disco") or Entergy's affiliate retail
electric provider in Texas ("REP"), at any time, is not permitted to
implement the monthly surcharge described in Subsection 10(c)(iv).
Upon the occurrence of any of the events enumerated in Subsections
10(g) i, ii, or iii, the franchise rate effective immediately prior to the
effective date of this franchise agreement shall be applicable and effective
for the purpose of calculating the franchise payment under this franchise
agreement. Further, in the event the PUCT or a court of competent
jurisdiction finds a portion of the corresponding surcharge unlawful or
otherwise prohibits a portion of the surcharge recovery of the incremental
amounts, the franchise rate provided for under Subsection 10(b) shall be
amended and adjusted such that the franchise payment made by the
Company to the City is no greater than the amounts the Company is
authorized to collect through its base rates and the corresponding
surcharge. Nothing in the immediately preceding sentence permits the
realignment of the recovery of any portion of the incremental amounts
Franchise Agreement Page 12
from the corresponding surcharge to the Company's base rates, prohibited
by Subsection 10(g)i.
(h) If the PUCT or a court of competent jurisdiction orders EGSI to refund to
customers any amounts for the franchise fees or any associated costs or
expenses, including taxes, collected pursuant to this franchise agreement,
such amounts refunded shall be recovered from the City pursuant to a
direct payment or a reduction of franchise payments, under the procedure
set forth in Subsection(c) iii above.
(i) Entergy Gulf States, Inc. Franchise Fee Recovery Tariff (Corresponding
Surcharge)
i. City agrees that (a) it will adopt and approve the corresponding
surcharge approved by the PUCT and accepted by EGSI as
provided herein and, if required, amend accordingly the Municipal
Franchise Surcharge attached to the implementing ordinance; (b) if
City intervenes in any regulatory proceeding before a federal or
state agency in which the recovery of EGSI's franchise fees is an
issue, the City will take an affirmative position supporting 100%
recovery of franchise fees by EGSI in the manner consistent with
this agreement; (c) in the event of an appeal of any such regulatory
proceeding in which- the City has intervened, the City will take an
affirmative position in any such appeals in support of the 100%
recovery of such franchise fees by EGSI in the manner consistent
with this agreement; and (d) subsequent to this agreement
becoming effective, EGSI may take whatever action with, and seek
whatever approval from, the PUCT, that it deems appropriate to
continue to achieve full recovery of any incremental amounts under
this agreement.
ii. City agrees that it will take no action, nor cause any other person or
entity to take any action, to prohibit the recovery of such
incremental amounts by EGSI.
Neither the adoption of this franchise, the accompanying ordinance,
nor the corresponding tariff shall be used by either the City or the
Franchise Agreement Page 13
Company, in any proceeding before a regulatory authority or state
or federal court of law, as precedent fcr a reduction in the
Company's rates or as evidence of or support for the positions
taken by the City or the Company in such matters, other than in
requesting PUCT approval of the corresponding surcharge or in any
direct court appeal of a PUCT order addressing the corresponding
surcharge.
(j) At the time of each quarterly payment, EGSI shall also submit to the City a
sworn statement showing the following: (1) its kilowatt hour sales delivered
to each retail customer whose consuming facility's point of delivery is
located within the City's boundaries for the preceding calendar quarter
upon which the franchise fee payment is calculated; (ii) a detailed listing of
any claimed costs and expenses, including taxes, uncollected difference
(not paid by City) and/or claimed refund items (all as referred to in this
Section 10) ; and (iii) a detailed reconciliation of the quarterly franchise
payment calculation.
(k) Said quarterly payments above provided shall be exclusive of and in
addition to ad valorem taxes. Any and all such quarterly payments made
by Company pursuant to this Section shall be credited on any amount
imposed, levied or assessed against Company by the City of Beaumont,
pursuant to ordinance or otherwise, at any time as a charge (whether
designated as rental, tax or otherwise) for the use by Company of City's
streets, alleys and public ways.
(1) Upon approval by the PUCT as provided herein, and beginning on the first
anniversary of the effective date of this agreement and annually thereafter,
EGSI shall annually adjust the total unit per kWh franchise fee rate, set
forth in Subsection 10(b), by an amount to be designated in writing by the
City based on one-half the annual increase, if any, in the consumer price
index as calculated in accordance with the Local Government Code
§283.055(x). The adjustment provided for in this Subsection shall become
effective only upon the PUCT's approval of an equivalent adjustment to
the corresponding surcharge which provides for the Company's collection
Franchise Agreement Page 14
through the corresponding surcharge of the increase in the franchise
payment resulting from the adjustment provided in this subsection. The
approval of the PUCT referenced in the immediately preceding sentence
may be obtained contemporaneously with, and contained in, a final order
approving the corresponding surcharge, subject to acceptance by the
Company, in its sole discretion, as provided in Section 18(a).
Section 11.
At all times during the continuance of the rights herein granted, Company
shall keep in its office at the disposal of and open to inspection by the City of
Beaumont at all reasonable times all contracts, books of accounts, and costs and
operating records, a full, true, complete and accurate account of all monies
received and expended, and liabilities incurred by it in connection with its
business in the construction, maintenance and operation of its properties
operated hereunder, and also complete statistical records of its business and
operations. Notwithstanding the foregoing, City may conduct an inspection,
audit, or other inquiry, or may pursue any cause of action in relation to
Company's payments pursuant to this agreement only if such inspection, audit,
inquiry or pursuit of a cause of action concerns a payment made less than two
years before commencement of such inspection, audit, or pursuit of a cause of
action.
Section 12.
The Company, its successors and assigns shall indemnify, save and hold
harmless the City from any and all claims for injuries and damage to person or
property occasioned by or arising out of the construction, reconstruction,
maintenance, operation or repair of said Company's electrical lighting and power
system, or by the conducting of Company's business in The City of Beaumont, or
in any way growing out of the granting of this franchise, either directly or
indirectly, or by reason of any act, negligence or nonfeasance of the contractors,
agents or employees of Company, its successors and assigns, and shall refund
to City all sums which it may be adjudged to pay on any such claim, or which
may arise or grow out of the exercise of the rights and privileges hereby granted,
Franchise Agreement Page 15
or by the ,abuse thereof, and Company shall indemnify and hold the City
harmless from and on account of all damages, costs, expenses, actions and
causes of actions that may accrue to or be brought by any person, persons,
company or companies at any time hereafter by reason of the exercise of the
rights and privileges hereby granted, or of the abuse thereof; provided, however,
that the provisions of this Section shall not be applicable to any claims, damages,
costs, expenses, actions or causes of actions proximately resulting from the use
by City, its officers, agents, representatives or employees, of Company's poles
and ductlines for the installation, maintenance or removal of City's equipment, as
provided in Section 9.
Section 13.
In granting this franchise it is understood that the lawful power vested by
law in the City to regulate all public utilities within the City and to regulate the
local rates of public utilities within the City, within the limits of the Constitution and
laws and to require all persons or corporations to discharge the duties and
undertaking for the performance of which this franchise was made is reserved;
this grant is made subject to all the rights, powers and authorities either of
regulation or otherwise lawfully reserved to the City.
Section 14.
The rights, franchises and privileges granted hereby shall not be
transferred or assigned by Company except with the consent of the City Council
of The City of Beaumont expressed by Ordinance passed by said City Council.
Section 15.
The City shall have the right and reserves the right at any time within five
(5) years of the expiration of the term hereof, but prior to the last twelve (12)
months of said term, to purchase or cause to be purchased the property of the
holder of this franchise located within the boundaries of The City of Beaumont
and devoted to public service hereunder; said purchase, if made, to be effective
at the expiration of the term hereof. If the City elects to exercise such purchase
right, the values of such property, if not agreed between the parties, shall be
determined in an appropriate proceeding filed in any court having jurisdiction;
Franchise Agreement Page 16
provided, however, that before the City shall purchase or cause to be purchased
such property of Company, the matter of such acquisition of such property shall
be submitted at a municipal election to be determined by a majority vote of the
qualified taxpayers voting thereon.
Section 16.
To the extent that the City has authority so to do, it gives to Company,
during the life of this franchise, the right, license, privilege and permission to trim
trees upon and overhanging the streets, alleys, sidewalks and public places of
City, so as to prevent the branches of such trees from coming in contact with the
wires or other equipment of Company. Company agrees that it will fully protect
and indemnify City from any and all claims, demands, actions, causes of actions,
damages and expenses arising because of such trimming by Company under the
provisions of this Section.
Section 17.
(a) Except as provided in Section 10, Subsection (g), if any provision, section,
subsection, sentence, clause or phrase of this franchise is, for any reason,
held to be unconstitutional, void or invalid (or for any reason
unenforceable), the validity of the remaining portions of this agreement
shall not be affected thereby, it being the intent of the City in adopting this
franchise agreement that no portion thereof or provision or regulation
contained herein shall become inoperative or fail by reason of any
unconstitutionality or invalidity of any other portion, provision, or
regulation, and, to this end, all provisions of this franchise agreement are
declared to be severable.
(b) The failure of either party 1) to enforce any of its rights under this franchise
agreement or 2) to take any action authorized under this franchise, shall
not constitute a waiver of any rights, or a release of any obligations,
provided or imposed by this franchise.
Section 18.
(a) This agreement shall become effective upon the latter of 1) the final
passage of the ordinance approving this agreement, and 2) EGSI's
Franchise Agreement Page 17
acceptance, in writing (in the form provided below) of a final order of the
PUCT ("final order") approving the corresponding surcharge authorizing
collection of the incremental amounts collected under the rate, as
referenced in Subsection 10(c), as well as associated costs and expenses.
Such acceptance shall be within the sole discretion of EGSI. if applicable,
such acceptance shall be filed with the Office of the City Secretary, within
thirty (30) days of the final order, in substantially the following form:
To the Honorable Mayor and City Council:
EGSI acting by and through the undersigned authorized
officer, hereby accepts in all respects, on this the
day of , 2004, Ordinance No.
amending, and accelerating the expiration of, the existing
electric franchise between the City and EGSI and
implementing the new franchise agreement, and the same
shall constitute and be a binding contractual obligation of
EGSI and the City.
Entergy Gulf States, Inc.
By:
Title:
In the event that EGSI has not filed said acceptance as required, and in
the form provided, within the specified thirty (30) day period, this
agreement shall not become effective.
(b) Upon becoming effective pursuant to the terms of this Section, the
franchise shall be in full force and effect for a term and period extending
from its effective date until February 12, 2018.
Section 19.
This franchise replaces all former franchises granted to Company or its
predecessors, which are hereby repealed, which repeal is effective as of the time
the franchise herein granted takes effect.
Section 20.
The full text of this franchise agreement shall, after final passage by the
City Council of The City of Beaumont, be published once each week for four (4)
Franchise Agreement Page 18
consecutive weeks in a newspaper of general circulation published in The City of
Beaumont, and the expense of such publication shall be borne by Company.
Passed first reading on the day of
Passed second reading on the day of
Passed third and final reading on the day of
Passed this the day of
Approved this the day of ,
Mayor of the City of Beaumont, Texas
Signed this day of , 2004
President, Entergy Gulf States, Inc.--Texas
Mayor of the City of Beaumont, Texas
Franchise Agreement Page 19
EXHIBIT B
ENTERGY GULF STATES, INC.
TARIFF FOR MUNICIPAL FRANCHISE FEES
Applicable: Within City Limits of Beaumont, Texas
Effective Date: On 1St day of lst full billing cycle subsequent to effective date of Ordinance
Approvin Tariff
Municipal Franchise Fee Surcharge
And Associated Tax Adjustment
APPLICATION
This schedule is applicable to all electric service rendered by Entergy Gulf States, Inc. to retail
customers whose consuming facility's points of delivery are located within the City Limits of
Beaumont, Texas.
MONTHLY RATE ADJUSTMENT
Municipal Franchise Fee Surcharge $0.00101366502 per kWh
In addition, the municipal franchise fee surcharge shall be adjusted for state gross receipts taxes
imposed by Sections 182-021 — 182-025 of the Texas Tax Code.
The municipal franchise fee surcharge shall also be adjusted by an amount equivalent to the
amount of all applicable taxes and any other governmental impositions, rentals, fees, or charges
(except state, county, city, and special district ad valorem taxes and taxes on net income) levied,
assessed, or imposed upon or allocated to Company with respect to the Electric Service provided
to Customer by Company, and any associated facilities involved in the performance of'such
Electric Service. The municipal franchise fee surcharge shall also be adjusted by an amount
equivalent to the proportionate part of any increase or decrease of any tax and any other
governmental imposition, rental, fee, or charge (except state, county, city, and special district ad
valorem taxes and taxes on net income) levied, assessed, or imposed subsequent to the effective
date of this tariff, upon or allocated to Company's operations, by any new or amended law,
ordinance, or contract.
The municipal franchise fee surcharge shall further be adjusted annually by EGSI by an amount
which provides for the Company's collection through the municipal franchise fee surcharge of
the increase in the franchise payment resulting from the annual adjustment to the franchise fee
rate, as provided in the franchise, based on one-half the annual increase, if any, in the consumer
price index as calculated in accordance with the Local Government Code §283.055(8).
TERMS AND CONDITIONS
Electric Service will be furnished in accordance with Entergy Gulf States Inc.'s tariff manual
and standard terms and conditions.
1
7
September 14, 2004
Consider granting the City Manager authority to implement the contribution rate changes for
retirees in the medical plans
Cit y of Beaumont
•�• Council A g enda Item
. = K
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Marie A. Dodson, Human Resources Director
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 1, 2004
REQUESTED ACTION: City Council consider granting the City Manager authority to
implement the contribution rate changes for retirees in the medical
plans.
RECOMMENDATION
Administration recommends that Council approve medical contribution rate changes for retirees
including their dependents effective January 1, 2005.
BACKGROUND
Retirees and their dependents are allowed to elect continuation of medical coverage as provided by
state statute. The retiree/dependent may continue coverage until the retiree/dependent is covered by
Medicare/Medicaid but not beyond age 65. Currently, there are 182 retirees on the City's medical
plans.
The retiree contribution rate for Police and Fire retirees is based on a provision in the Police and Fire
contract agreements which state, "Any employee who retired on or after February 1, 1992 may be
subject to an annual increase in contribution. The increase will be effected in accordance with the
labor agreement. The single rate will be established at 69%;single rate+1 at 58%;and the family rate
at 54%of the COBRA rate on January 1 st annually." This same formula is utilized when calculating
the contribution rate for civilian retirees. Monthly fixed rates for the PPO plan remain the same while
HMO Blue Texas increased the HMO plan rates 6.0%. As such, retiree rates effective January 1,
2005 based on each medical plan will be as follows:
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 implement the contribution rate
changes as shown below for retirees including their dependents who are on the City's
medical and/or dental plans effective January 1, 2005.
Plan Medical Prescription 2005 2004 2005
and Rate Drug Rate COBRA Retiree Retiree
Category 2005 2005 Rate* Rate Rate
PPO (EO) $273.85 $55.96 $329.81 $227.57 $227.57
(E1) $677.80 $133.88 $811.68 $470.77 $470.77
(E2) $890.23 $182.08 $1,072.31 $579.05 $579.05
HMO (EO) $233.00 $55.96 $288.96 $190.28 $199.38
(El $561.51 $133.88 $695.39 $384.89 $403.32
(E2) $799.14 $182.08 $981.22 $505.431 $529.85
*Rate does not include BCBS administration fee.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
September, 2004.
- Mayor Evelyn M. Lord -
8
September 14,2004
Consider approving a one year contract with Blue Cross Blue Shield of Texas for third party
administration of the City's self funded Preferred Provider Organization(PPO) medical plan, self
funded dental plan and a fully insured Health Maintenance Organization(HMO) with HMO Blue
Texas
City of Beaumont
•,� Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Marie A. Dodson, Human Resources Director
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 1, 2004
REQUESTED ACTION: Council approval of a one year contract with Blue Cross Blue Shield of
Texas for third party administration of the City's self funded Preferred
Provider Organization(PPO) medical plan, self funded dental plan and
a fully insured Health Maintenance Organization(HMO)with HMO Blue
Texas.
RECOMMENDATION
Administration recommends that council award a one year contract effective January 1, 2005 to Blue
Cross Blue Shield ofTexas(BCBSTX)for third parry administration ofthe City's self funded Preferred
Provider Organization (PPO) medical plan, self funded dental plan and a fully insured Health
Maintenance Organization(HMO Blue Texas).
BACKGROUND
Full time city employees are offered medical and dental benefits. The medical and dental benefits consist
of a fully insured HMO plan, a self funded PPO plan and a self funded dental plan. There are 544
participants enrolled in the HMO plan,463 active employees and 81 retirees. There are 816 participants
enrolled in the PPO plan, 715 active employees and 101 retirees. In the dental plan, there are 944
participants enrolled, 930 active employees and 14 COBRA participants.
In June 2004, City staff began analyzing the City's health care costs. Staff also began working with the
City's health benefit consultant, McGriff, Siebels and Williams of Texas, Inc., to determine if the City
should request bid proposals for the City's HMO, PPO, and dental plans or remain with the current
administrator, Blue Cross Blue Shield (BOBS) for 2005.
After evaluating the market, McGriff concluded that BCBS offered the most cost effective plans.
Because of the extensive BCBS network, deep BCBS provider discounts,ability to retain continuity of
insurance and the lack ofother extensive provider networks,in June staffrequested BCBS renewal rates.
BCBSTX Renewal
September 1, 2004
Page 2
McGriW s negotiations with BCBS resulted in a rate increase that was within industry trends. The final
negotiations resulted in the HMO rates increasing 6.0%. The PPO's monthly fixed costs which include
stop loss and administration fees will remain the same. Renewal rates for the self funded dental plan did
not increase.
Staff recommends implementation of the following negotiated HMO and PPO rates January 1, 2005:
2004 Monthly HMO Rates 2005 Monthly HMO Rates
Employee Only $219.81 $233.00
Employee+ 1 Dependent $529.73 $561.51
Employee+Family $753.91 $799.14
Fixed Costs
2004 Monthly PPO Stop Loss 2005 Monthly PPO Stop Loss
and Administration Rates and Administration Rates
Employee Only $57.17 $57.17
Employee+ 1 Dependent $77.88 $77.88
Employee+Family $77.88 $77.88
BUDGETARY IMPACT
Appropriation of funds is available in the Employee Benefits Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY City Manager and Human Resources Director.
S\AGENDAUGENDA r1EM MEM0S\coumed05.wpd 9/10/04
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 enter into a contract with Blue
Cross and Blue Shield of Texas for a one-year contract commencing January 1, 2005 to
provide third-party administration of the City's self-funded Preferred Provider Organization
(PPO) medical plan, self-funded dental plan and a fully-insured Health Maintenance
Organization (HMO) with HMO Blue Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
September, 2004.
- Mayor Evelyn M. Lord -
��
city of Bmumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 14, 2004 1:30 P.M.
CONSENT AGENDA
Approval of minutes
Confirmation of committee appointments
A) Approve an annual contract to furnish Fire Department uniforms
B) Approve a resolution authorizing the City Manager to accept a Local Law Enforcement Block
Grant from the Department of Justice; Bureau of Justice Assistance in the amount of$77,895
C) Approve a resolution authorizing the granting of a License to Encroach to Joseph F.
Delage and, his wife, Patsy Lou Delage for a garage encroaching into the City's 20-foot
utility easement and the adjacent 16-foot wide utility corridor located at 580 24' Street
D) Approve a resolution authorizing the acceptance of a 10-foot wide sanitary sewer
easement across the northeast corner of State Highway 105 at Major Drive [FM 364] to
serve the new Dollar General Store
E) Approve a resolution accepting maintenance of the street, storm sewer, water and sanitary
sewer improvements in Christina Court Section II, Phase I and II, Subdivision
F) Approve a resolution authorizing the settlement of the claims of Marilyn Stephens,
Catherine Bertrand and`ferry Chism brought in the lawsuit styled Penni Simonson, et al v.
The City of Beaumont
A
79ijCity of Beaumont
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: August 27, 2004
REQUESTED ACTION: Council consider the award of an annual contract to furnish Fire
Department uniforms.
RECOMMENDATION
Administration recommends the award of an annual contract to supply Fire Department uniforms
to Lone Star Uniforms of Houston, Texas for Elbeco and Dickie brand shirts and trousers and to
Cotton Cargo of Beaumont,Texas for Jonathan Corey brand shirts at the unit prices indicated on the
attached Bid Tabulation.
BACKGROUND
Firefighters are provided uniforms on an as needed basis throughout the year. New firefighters are
issued three (3) shirts and two (2) pair of trousers.
Bids were solicited from twenty (23) vendors for furnishing Elbeco, Dickie, and Jonathan Corey
brand uniform items for firefighters. Prices were requested for men's and women's dress trousers,
work trousers,uniform sport shirts, and traditional uniform shirts. Vendors were given approximate
yearly usage quantities for each item and were asked to provide an itemized price list. Five (5)
vendors submitted pricing for the various uniform items as indicated on the attached Bid Tabulation.
BUDGETARY IMPACT
Funds for uniforms are budgeted in the Fire Department's operating budget. The estimated total cost
for Elbeco, Dickie, and Jonathan Corey brand products combined is $31,516.76.
PREVIOUS ACTION
None.
Annual Contract for Fire Uniforms
August 27,2004
Page 2
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director, and Fire Chief.
BID TABULATION
ANNUAL CONTRACT FOR FIRE DEPARTMENT UNIFORMS
LONE STAR C&G WHOLESALE CODE BLUE TYLER UNIFORM
UNIFORM HOUSTON,TX BEAUMONT,TX TYLER,TX
HOUSTON,TX
EST ELBECO&DICK BRAND UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL
QTY PRODUCTS PRICE PRICE PRICE PRICE PRICE PRICE PRICE PRICE
40 ElbecoDressTrouser-Men's $28.90 $1,156.00 $30.55 $1,222.00 $33.50 $1,340.00 $35.60 $1,424.00
220 Elbeco Work Trouser-Men's $27.60 $6,072.00 $29.19 $6,421.80 $32.00 $7,040.00 $33.97 $7,473.40
220 Dickie Work Trouser-Men's $19.97 $4,393.40 $19.15 $4,213.00 $23.75 $5,225.00 $21.84 $4,804.80
8 Elbeco Work Trouser-Women's $27.60 $220.80 $29.19 $233.52 $32.00 $256.00 $33.97 $271.76
120 Elbeco Short Sleeve Shirt-Men's $20.85 $2,502.00 $22.04 $2,644.80 $26.00 $3,120.00 $26.61 $3,193.20
120 Elbeco Long Sleeve Shirt-Men's $24.50 $2,940.00 $25.22 $3,026.40 $29.00 $3,480.00 $30.33 $3,639.60
8 Elbeco Short Sleeve Shirt-Women's $20.85 $166.80 $22.04 $176.32 $26.00 $208.00 $26.61 $212.88
8 Elbeco Long Sleeve Shirt-Women's $24.50 $196.00 $25.22 $201.76 $29.00 $232.00 $30.33 $242.64
ESTIMATED ANNUAL TOTAL: $17,647.00 $18,139.60 $20,901.00 $21,262.28
COTTON CARGO LONE STAR TYLER UNIFORM
BEAUMONT,TX UNIFORM TYLER,TX
BEAUMONT,TX
EST JONATHAN COREY BRAND UNIT TOTAL UNIT TOTAL UNIT TOTAL
QTY PRODUCTS PRICE PRICE PRICE PRICE PRICE PRICE
700 J Corey Sport Shirt-Men's $19.48 $13,636.00 $24.50 $17,150.00 $27.51 $19,257.00
12 J Corey Sport Shirt-Women's $19.48 $233.76 $24.50 $294.00 $27.51 $330.12
ESTIMATED ANNUAL TOTAL: $13,869.76 $17,444.00 $19,587.12
City of Beaumont
�I u7L-711 Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED: Tom Scofield, Chief of Police
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: August 23, 2004
REQUESTED ACTION: Council adopt a resolution authorizing the City Manager to
accept a Local Law Enforcement Block Grant from the
Department of Justice;Bureau of Justice Assistance in the
amount of$77,895.
RECOMMENDATION
Administration recommends authorizing the City Manager to accept the Local Law Enforcement
Block Grant from the Department of Justice.
BACKGROUND
The City has been awarded a block grant from the Department of Justice; Bureau of Justice
Assistance since 1996. These funds are important in supporting special units and programs
through purchasing equipment and paying for officer overtime for special events.
BUDGETARY IMPACT
An additional$77,895 will supplement the Police Department's budget. A matching grant in the
amount of$8,655 will be required from the city.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Chief of Police.
c
Cit y of Beaumont
~ Council Agenda Item
'M K g
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Joris P. Colbert, City Engineer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: August 30, 2004
REQUESTED ACTION: Council consider a resolution authorizing the granting of a License
to Encroach to Joseph F. Delage and, his wife, Patsy Lou Delage
for a garage encroaching into the City's 20-foot utility easement and
the adjacent 16-foot wide utility corridor located at 580 24r'Street.
RECOMMENDATION
An existing 24.1-foot x 24.4-foot garage is encroaching 20 feet into the City's 20-foot utility
easement on Lot 26, Block 15, Calder Place Addition (580 24th Street) and 4.1 feet into the
adjacent 16-foot wide utility corridor (Lot 28, Block 15, Calder Place Addition).
Administration recommends authorization to execute the License to Encroach.
BACKGROUND
The License to Encroach protects the City from liability and provides a 30-day cancellation clause.
BUDGETARYIMPACT
There is a one time fee of$500 for the License to Encroach.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY:
City Manager, Public Works Director and City Engineer.
engdelage-ib.wpd
30 August 2004
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COMMENTS FROM DEPARTMENTS AND/OR UTILITY COMPANIES
FOR
LICENSE TO ENCROACH APPLICATION
PROPERTY DESCRIPTION: Existing garage encroaching into the City's 20 foot Utility
Easement and adjacent 16 foot wide utility corridor,24.1 feet
_ for a distance of 24.4 feet. [580 24t' Street — Calder-Place-
Addition]
APPLICANT: Joseph F. Delage, Jr. and Patsy Delage
DATE OF DISTRIBUTION: August 20, 2004
1) Joris P. Colbert, City Engineer Date Received: 08-23-2004
Acceptance and Approval.
2) Jim Terry, Streets &Drainage Superintendent Date Received: 08-23-2004
Acceptance and Approval.
3) Jack Maddox, Fire Marshall Date Received: 08-24-2004
Acceptance and Approval.
4) Joe Majdalam, Water Utilities Date Received: 08-25-2004
Acceptance and Approval. Water Utilities has a 6" Sanitary Sewer line in the 20' easement and a
10' Sanitary Sewer line in the 16' easement. Also, there is an abandoned septic tank within the 20'
easement. Water Utilities will not be responsible for the garage if damages occur during the repair,
maintenance or natural occurrences to the above referenced Sanitary Sewer lines. The 6" and 10"
Sanitary Sewer lines are existing under the garage.
5) Stephen Richardson, Planning Manager Date Received: 08-20-2004
Acceptance and Approval.
6) Mark Horelica, Transportation Manager Date Received: 08-23-2004
Acceptance and Approval.
7) Patrick Sam, CenterPoint Energy Entex Date Received: 08-20-2004
Acceptance and Approval.
8) James Bryant, Entergy Date Received: N/A
9) Cliff Moore, Southwestern Bell Corporation Date Received: N/A
10) Richard LeBlanc, D.D.46 Date Received: 08-24-2004
Acceptance and Approval.
11) Tyrone Cooper, Legal Department Date Received: 08-27-2004
Acceptance and Approval; subject to the concerns of the water utilities manager.
comments summary-de Iage
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r• Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Joris P. Colbert, City Engineer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 7, 2004
REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a 10-foot
wide sanitary sewer easement across the northeast corner of State
Highway 105 at Major Drive [FM 364] to serve the new Dollar
General Store.
RECOMMENDATION
William T. Edgar, Paul J. Cormier, and Robert P. Cormier, the owners of the property listed
below, have agreed to convey a 10-foot wide sanitary sewer easement to the City of Beaumont:
One (1) 10-foot wide Sanitary Sewer Easement -
0.0508 acre tract out of Tract 2-A, Replat of Lot 2, Rand Addition and located
across the northeast corner of State Highway 105 at Major Drive
Administration recommends acceptance of the easement.
BACKGROUND
The easement is to be used to provide sanitary sewer service to the new Dollar General Store.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and City Engineer.
EngDollarGeneralEasementib.wpd
7 September 2004
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City of Beaumont
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Joris P. Colbert, City Engineer
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 7, 2004
REQUESTED ACTION: Council consider a resolution accepting maintenance of the street,
storm sewer, water and sanitary sewer improvements in Christina
Court Section II, Phase I and II, Subdivision.
RECOMMENDATION
Administration recommends approval of the following:
• Christina Court from existing dead end approximately 174 linear feet north
to and including the cul-de-sac and approximately 384 linear feet west to
and including the cul-de-sac.
Also, recommended for approval are the water and sanitary improvements for Lots 16-27,
Christina Court, Section II, Phase I and II.
BACKGROUND
The aforementioned improvements in the subdivision passed final inspection from all entities
involved on August 26, 2004.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and City Engineer.
EngAgenChristinaCrtS2P 1&2.wpd
September 7,2004
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Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Joe Sanders, Senior Assistant City Attorney
MEETING DATE: September 14, 2004
AGENDA MEMO DATE: September 10, 2004
REQUESTED ACTION: Consider a resolution authorizing the settlement of the claims of
Marilyn Stephens, Catherine Bertrand and Terry Chism brought
in the lawsuit styled Penni Simonson, et al v. The City of
Beaumont.
RECOMMENDATION
Council approval of a resolution authorizing in the amounts below settlement of the claims of
Marilyn Stephens, Catherine Bertrand and Terry Chism brought in the lawsuit styled Penni
Simonson, et al v. The City of Beaumont.
BACKGROUND
Council discussed the resolution of these lawsuit claims in an Executive Session held on August 10,
2004.
BUDGETARY IMPACT
There are sufficient funds in the Liability Trust Fund to pay the sums above.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and City Attorney.
SAAGENDA\AGENDA ITEM MEMOS\LAWSUIT.wpd
RESOLUTION NO.
WHEREAS, the claims of Marilyn Stephens, Catherine Bertrand and Terry Chism
in the lawsuit styled Penni Simonson, et al v. The City of Beaumont, were discussed in an
Executive Session properly called and held Tuesday, August 10, 2004; and,
WHEREAS, the Council desires to authorize the settlement of the claims of Marilyn
Stephens, Catherine Bertrand and Terry Chism in the lawsuit styled Penni Simonson, et
al v. The City of Beaumont;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City Attorney be, and he is hereby, authorized to settle in the amounts below the
claims of Marilyn Stephens, Catherine Bertrand and Terry Chism in the lawsuit styled
Penni Simonson, et al v. The City of Beaumont.
Marilyn Stephens $50,000
Catherine Bertrand $22,500
Terry Chism $36,500
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
September, 2004.
- Mayor Evelyn M. Lord -
G:\CG\AGENDA\RESOLUTI\CLAIMLAW.DOC\RESO-LAWSUITS\STEPHENS-BERTRAND-CHISM-9-04.wpd