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Home My WebLink AboutPACKET SEPT 06 2005 • ' : L City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS SEPTEMBER 6,2005 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Approve the purchase of a 2006 Ford F450 cab and chassis for use in the Fire Department B) Authorize the acceptance of a ten foot (10') wide water line easement providing access for fire prevention services C) Approve the sale of City-owned surplus property • A C1* of Beaumont ty �• Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Kirby Richard, Internal Services Director MEETING DATE: September 6, 2005 AGENDA MEMO DATE: September 2, 2005 REQUESTED ACTION: Council consider the purchase of a 2006 Ford F450 cab and chassis. RECOMMENDATION Administration recommends the purchase of a 2006 Ford F450 diesel powered cab and chassis for the Fire Department through the Houston-Galveston Area Council (H-GAC) in the amount of $27,566.75. BACKGROUND H-GAC is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. H-GAC complies with the state of Texas procurement statutes. The price of the truck includes an H-GAC administrative fee of$1,000. The truck is used to transport fresh air oxygen cylinders to refill the firefighter's breathing apparatus and a large fan used to extract smoke and fumes from burned structures. The current cab and chassis is too light to support the weight of the oxygen cylinders and fan. The truck is housed at Station No. 1 and responds to all fire suppression calls. This truck will replace unit 7102, a 1990 Chevrolet cab and chassis, which will be disposed of according to the City's surplus policy procedures. Philpott Ford is H-GAC's contract vendor for this truck. Philpott will provide all service during the standard warranty period of three(3)years or 36,000 miles. BUDGETARY IMPACT Funds are available in the Capital Reserve Fund. Purchase of Cab and Chassis September 2, 2005 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Internal Services Director and Fire Chief. B Cit y of Beaumont # � Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: September 6, 2005 AGENDA MEMO DATE: August 30, 2005 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a ten foot (10') wide water line easement providing access for fire prevention services. RECOMMENDATION Campus Village Lamar L. P., a Texas limited partnership, has agreed to convey a ten foot (10') wide water line easement to the City of Beaumont. This easement will provide mandatory access for fire prevention services for the Campus Village Apartments located at 5230 MLK,Jr.Parkway [Old Keg location] and described as being 0.32 acres out of J. A Veatch Survey, Abstract 55. Administration recommends acceptance of the easement. BACKGROUND The easement is to be used to provide access to the water lines and fire hydrants for the property named above. It would also allow for the construction, alteration, operation and maintenance of the said water lines and appurtenances. BUDGETARYIMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Public Works Director. # engfire_campus-ib.wpd 30 August 2005 T� MOBIL PIPELINE CO. O 0.551 ACS. INDUSTRIAL APPARATUS JCAD ACCT. SERVICE, INC. % 222-000-000800 2.47 ACS. CF#1999013716 O.P.R.J.C. G� N 45°33'23"E 556.94' so L13 o•�. N a L17 0' L11 J J L � co 24.27' _ .1 L19 < L21 NJ IY a J lY II w vi OI Z 0 a o CAMPUS VILLAGE LAMAR, LP w r o IN 5.965 ACRES o Y °ry o ° ( 2/ 27/05 ° a `" CF#2005021207 ° W co C) �- Q Z I O.P.R.J.C. 13,960 SQ. FT. J ^ m � 0.32 ACRES ih w L9 I co L7 Z < tO L _ JL L23 _ -- N L5 -� L1 P.O.B. , L3 N 38°33'17"W 66.56' S 45°00'00"W 557.74' . VEATCH FND AVENUE P.O.c.. . ; 5/8" S:R. NUMBER DIRECTION DISTANCE NUMBER DIRECTION DISTANCE L1 S 45'00'00" W 165.77' 113 N 45'26'00" E 10.00' L2 S 45'00'00" E 17.60' L14 S 44'34'00" E 17.60' L3 N 45'00'00" E 10.00' L15 N 45'26'00" E 343.49' ' L4 N 45'00'00" W 17.60' L16 N 44'34'00" W 13.26' L5 S 45'00'00" W 322.45' L17 N 45'26'00" E 10.00' i L6 N 45'00'00" W 47.00' L18 S 44'34'00" E 13.26' L7 S 45'00'00" W 17.60 L19 N 45'26'00" E 70.12' L8 N 45'00'00" W 10.00' L20 S 38'33'17" E 10.06' 0 50 10o L9 N 45'00'00" E 17.60' L21 S 45'26b0" W 522.56' .�E ,F TF j L10 N 45'00'00" W 260.82' L22 S 45'00'00" E 297.74' STF"'•. SCALE IN FEET L11 N 45'26'00" E 100.08' L23 N 45'00'00" E 489.36' L12 N 44'34'00" W 17.60' 1 • L24 S 38'33'17" E 10.06' � . DG ; . .............................. ...i 4583 �! BEARINGS REFERENCED TO THE WESTERLY RIGHT OF WAY LINE OF MARTIN LUTHER KING, JR. OF PARKWAY — N38'33'17"W DEED 9 EXHIBIT SHOWING A 10'WIDE WATER LINE EASEMENT ARCENEAUX & GATES (0.32 ACRES)OUT OF THE CAMPUS VILLAGE LAMAR,LP FiAU7C Caasultine Eagineera Inc. 5.965 ACRE TRACT SITUATED IN THE Ln�tneen Swr eyore planners S J.A.VEATCH SURVEY,ABSTRACT NO.55 e — ne_n iu_n1n BEAUMONT_.IFFFFP(zrw rnt ikrT r=-- c � "�` CiBeaumont of K Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Kirby Richard, Internal Services Director MEETING DATE: September 6, 2005 AGENDA MEMO DATE: September 2, 2005 REQUESTED ACTION: Council approval of the sale of City-owned surplus property. RECOMMENDATION Administration recommends the sale of a parcel of City-owned surplus property to Magnolia Cemetery in the amount of$1,000. A General Warranty Deed will be issued to transfer ownership. BACKGROUND Bids were received for the sale of City-owned surplus property originally obtained in 1945 for Water Plant expansion. The legal description is listed below: Address: 400 block Elm Street Legal: Sheffield Addition-Block 3, Lots 1-6 Zoning: LI -Light Industrial The bids received are listed below: Bidder Amount Bid Maurice James Newman $3,609 Magnolia Cemetery $1,000 The sale of the property was awarded to Maurice James Newman. Mr.Newman has not paid for the property and has officially made a request to withdraw his bid. Mr. Newman was not aware that the property was unimproved at the time he submitted his bid. Magnolia Cemetery has committed to the purchase of the property for expansion of their grounds. A Map indicating the location of the land is attached. Sale of Surplus Property September 2, 2005 Page 2 BUDGETARY IMPACT Payments to the City for this property will be deposited in the General Fund. PREVIOUS ACTION Resolution No. 05-152 approved by Council July 12, 2005. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and Internal Services Director. fie' • MU NK City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS SEPTEMBER 6,2005 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-3/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider approvin g a five-year agreement with PharmaCare Management Y �' Services, Inc. relating to the City's prescription drug program 2. Consider approving a three-year contract with Fort Dearborn for Long Term Disability Insurance 3. Consider authorizing the City Manager to execute an extension of the Beaumont Community Players' Development and Lease Agreement 4. PUBLIC HEARING: Receive comments relating to the proposed FY 2006 Budget and the 2005 (FY 2006)Proposed Tax Rate COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Pat Buehrle at 880-3725 a day prior to the meeting. s 1 September 6, 2005 Consider approving a five-year agreement with PharmaCare Management Services, Inc. relating to the City's prescription drug program 1 City of Beaumont T Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie Dodson, Human Resources Manager MEETING DATE: September 6, 2005 AGENDA MEMO DATE: August 31, 2005 REQUESTED ACTION: Council approval of a five-year agreement with PharmaCare Management Services, Inc. RECOMMENDATION Administration recommends that council award a five-year agreement with PharmaCare Management Services,Inc.,effective January 1,2006,as the City's Pharmacy Benefit Manager(PBM).Thereafter, this agreement may renew each year for an annual period not to exceed five(5)years. BACKGROUND As prescription drug costs continue to rise, the City faces a challenge in providing the same level of drug benefits as in previous years without incurring substantial cost increases. For FY 2005, City drug costs are estimated to total$1.8 million which is approximately a twelve percent(12%)increase. This increase is representative of industry trends which predicted a 12-14%increase in pharmaceutical costs for 2005. Industry trends predict a 14-15%increase in pharmaceutical costs in 2006. In June 2005, City staff began analyzing the City's prescription drug costs and requested bid proposals from pharmacy companies for a five(5)year contract with an effective date of January 1, 2006.The City's benefit consultants,McGriff,Siebels and Williams ofTexas,Inc.and Pharmaceutical Strategies Group (PSG) reviewed and analyzed the eight(8)bid proposals received. After evaluating the bid proposals, City staff, McGriff and PSG concluded that PharmaCare, the incumbent carrier, offered the most cost effective program. The proposed fee structure includes generous percentage discounts to be applied to the Average Wholesale Price(AWP)of retail and mail order brand pharmaceuticals and percentage discounts to be applied to the Maximum Allowable Cost PBM Contract August 31, 2005 Page 2 (MAC) of generic drugs for both retail and mail order. All proposers were asked to provide percentage discounts as stated and rebate initiatives. Rebates are offered by pharmaceutical companies to PBM's for their dispensed pharmaceuticals. The PBM's quoted fixed amounts per prescription to be paid to the City when drugs eligible for rebates are processed. Of the eight proposals received,PharmaCare,a subsidiary of CVS Pharmacy ofLincoln,RI and Walgreens Health Initiative(WHI),a subsidiary of Walgreens Company ofDearfield,IL provided the greatest discount percentages and the highest rebates. The pricing structures proposed by PharmaCare and WHI project a savings of approximately 3% from the current pricing structure. PharmaCare, the City's current PBM, offered a five (5) year guaranteed rate contract,whereas WHI offered a three(3)year contract. The proposed fee structure offered by WHI was specific to each request,i.e.,fee for each member I.D. card mailed, fee for each requested utilization report, and a charge per claim for drug utilization review. This type of pricing structure could result in higher administrative costs. The pricing structure offered through PharmaCare is all inclusive and since they are the incumbent carrier,employees can continue with the same providers that they have used for the past five(5)years. Other proposals received included the following: B1ueCross Blue Shield (BCBS) Beaumont, TX Catalyst Houston, TX Express Scripts Maryland Heights, MO RxAmerica Salt Lake City, UT Script Care Beaumont, TX Systemed Franklin Lakes, NJ BCBS was not able to provide the same plan design as currently in place, rendering their proposal non-responsive. The Script Care proposal was guaranteed for two(2)years not five(5)as requested. In addition, their rebates were lower than other bidders and their dispensing fees were higher. Proposals submitted by Catalyst,Express Scripts,RxAmerica,and Systemed were not as competitive as PharmaCare. The current 30% copay plan design for City employees will remain the same. BUDGETARY IMPACT Appropriation of funds is available in the Employee Benefits Fund. PBM Contract August 31, 2005 Page 3 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. r x Pricing E hibit J . CURRENT PHARMACARE CATALYST EXPRESS RXAMERICA SCRIPT SYSTEMED WALGREENS SCRIPTS CARE Retail In redient Cost Brands 14.5% 15.0% 15.5% 15.5% 15.0% 15.0% 15.0% 16.0% Generics 52% 54°x6 52% 50% 50% 54% 48% 56% Mail Ingredient Cost Brands 21% 23% 23% 22% 21% 21% 20% 24% Generics 52% 54% 53% 53% 55% 54% 48% 58% Dispensing Fees Retail Brand $2.00 $1.55 $1.90 $1.70 $2.00 $2.15 $2.00 $1.75 Retail Generic $2.00 $1.55 $1.90 $1.80 $2.00 $2.15 $2.00 $1.75 Mail Brand $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Mail Generic $0.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Admin fees Retail $0.25 $0.10 $0.00 $0.00 $0.20 $0.00 $4.20 $1.25 Mail $0.25 $0.10 $0.00 $0.00 $0.20 $0.00 $4.20 $1.25 Rebates(aggregated/rx $1.33 $1.65 $1.59 $1.85 $1.59 $1.06 $0.00 $2.18 Paper Claims Fee $1.50 $1.50 $1.25 $2.50 $1.50 $2.00 1 $1.25 $1.50 Difference from Current N/A 1 468 354.49 1-$51,106.361-$49,211.261 49 283.28 1421,173.071$233,904,16T477,568.56 NOTE. Script Care&Systemed Rates do not include compensation to PSG of$0.50 per script, which equates to$19,786 based on 2004 utilization of 39,572 scripts. ALL other rates include PSG compensation of$0.50 per script. *This is a savings comparison based on 2004 claims data and vendor responses;and should not be construed as a guarantee of savings. Pharmaceuticals Maximizing Value in M Z September 6,2005 Consider approving a three-year contract with Fort Dearborn for Long Term Disability Insurance vow 110. rt City of Beaumont � -LPW'j Council Agenda Item IL TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie A. Dodson, Human Resources Director MEETING DATE: September 6, 2005 AGENDA MEMO DATE: August 30, 2005 REQUESTED ACTION: Council approval of a three year contract with Fort Dearborn for Long Term Disability Insurance. RECOMMENDATION Administration recommends that Council award a three-year contract effective January 1, 2006 to Fort Dearborn for Long Term Disability Insurance. BACKGROUND In July 2005, City staff began analyzing the Long Term Disability insurance plan cost. Staff also began working with the City's benefit consultant, McGriff Siebels and Williams of Texas, Inc. to solicit proposals on the City's behalf.McGriff received six proposals and the incumbent's quote for long term disability insurance. The results of the top five proposals are attached for your review. Long term disability is an employee paid benefit offered to Police and Civilian employees with approximately 594 eligible employees participating. This benefit will provide the employee with up to 60% of his or her salary when disabled for a period in excess of 90 days. Fort Dearborn, the lowest bidder, will provide a three year rate guarantee for the same benefit coverage as provided by the incumbent carrier,Prudential. Fort Dearborn's proposed rates are 38% less than Prudential's. BUDGETARY IMPACT Long term disability insurance is an optional benefit offered to Police and Civilian employees. There is no monetary impact to the City because premiums are withheld from participating employees' paychecks to pay for the long term disability insurance coverage. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. SAAGENDAIAGENDA ITEM MEMOS\L.TDO6.wpd PROPOSAL ANALYSIS FOR LONG TERM DISABILITY INSURANCE Rate (per$100 of Covered Payroll) Fort Dearborn Hartford Standard Jefferson Pilot Prudential Age 0 to 40 $0.25 $0.36 $0.36 $0.37 $0.40 Age 41 to 49 0.62 0.54 0.90 0.90 1.00 Age 50 + 0.77 1.13 1.13 1.13 1.25 Rate Guarantee 3 years 3 years 2 years 2 years 1 year • 3 September 6,2005 Consider authorizing the City Manager to execute an extension of the Beaumont Community Players' Development and Lease Agreement City of Beaumont Council Agenda Item K g TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Kirby Richard, Internal Services Director MEETING DATE: September 6, 2005 AGENDA MEMO DATE: September 1, 2005 REQUESTED ACTION: Council authorize the City Manager to execute an extension of the Beaumont Community Players' Development and Lease Agreement. RECOMMENDATION Administration recommends authorizing the City Manager to execute a two-year extension to the current Development and Lease Agreement with the Beaumont Community Players(BCP) for the construction of a new community theater on City-owned property. BACKGROUND. Council authorized a Development and Lease Agreement with BCP on August 8, 2000 for the construction and lease of a new community theater located on City-owned property. BCP proposed to raise funds needed for the design and construction of a 13,000 square foot theater. The proposed facility was to seat 250 to 300 patrons in an auditorium-style arrangement and provide additional rooms for meetings, dinner plays, rehearsals, administrative offices, costume and scene shops, and storage. The terms of the agreement require the City to provide a site at the corner of College and Orleans Streets upon which the new theater is to be constructed. Upon completion of construction,BCP will donate the theater to the City,then lease the facility back for a twenty-year period for a nominal$10 per year fee. BCP will have exclusive use of the facility for education, civic, entertainment, and community theater purposes. The agreement provided a two-year period for construction to commence. BCP believes that the events of September 11,2001, slowed the momentum of its capital campaign,resulting in its request for the City to provide additional time for the project. Extension to Development and Lease Agreement August 9, 2005 Page 2 In 2002,2003,and 2004,BCP requested and received such extensions. This was due to the fact that BCP needed more time to raise the estimated $2.5 million required for construction. BCP is again requesting an extension ofthe lease agreement,in order to raise funds. It currently has received about$440,000 of the$634,000 it has in pledges and is exploring grants and other funding sources to assist with this project. BCP is now considering developing the theater complex in two phases. The first phase would include the theater and cost about $1.2 million. The offices and ancillary uses would be built in the second phase and cost about $1.3 million. BCP is proposing to include some additional office space suitable for lease to other local organizations in its second phase. The proposed extension changes the original agreement so that the City accepts each of the two phases ofthe project when they are complete. Additionally,the extension changes the agreement to allow the City to retain the rights to set rental rates and collect the rents generated from the lease of any additional office space that is included in the project. A copy of the proposed extension and the Development and Lease Agreement are attached for your review. BUDGETARY IMPACT There is no budgetary impact during the term ofthe extension. Once the building is constructed and ownership is transferred to the City,the City will be responsible for maintenance and utility expenses for its operation. The utility costs for the complex are estimated to exceed $65,000 per year. After the second phase of construction is complete, some of these costs will be offset by rents collected from other organizations that office in the facility. PREVIOUS ACTION Council authorized the execution of a Development and Lease Agreement with BCP on August 8, 2000. The agreement was extended on July 30, 2002, August 12, 2003, and again on August 10, 2004. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Internal Services Director. STATE OF TEXAS § 0 COUNTY OF JEFFERSON § EXTENSION OF LEASE WHEREAS, on August 9, 2000, the City of Beaumont (herein "City") entered into a Development and Lease Agreement with Beaumont Community Players(herein"BCP")for a term expiring August 9, 2002; and WHEREAS, BCP was granted three (3) one-year extensions, the last expiring August 9, 2005; and WHEREAS, said lease may only be amended by the parties in writing executed by BCP and the City Manager of City; and WHEREAS, City and BCP desire to extend the expiration date for said lease for two (2) additional years; Now, therefore the City and BCP agree as follows: 1.01 The Development and Lease Agreement between City and BCP is hereby extended to terminate August 9, 2007. 1.02 All provisions of said Development and Lease Agreement are hereby accepted and ratified by BCP and City. 1.03 The preamble of such Agreement is hereby amended to clarify that the BCP may build the theater in two phases. The first phase construction, which is primarily the theater, is estimated to cost approximately $1.2 million and the second phase approximately$1.3 million. The second phase includes construction designed for ancillary theater uses and an office annex with sufficient additional office space suitable for occupancy by other local organizations. 1.04 Paragraphs 1.2 and 3.2 of such Agreement are amended to clarify that the City will accept the gift of the theater in two (2) phases and grant the lease for a twenty(20) year period at the time it accepts Phase One construction. The second phase of the construction will be added to the lease, after its completion and acceptance by the City. 1.05 Paragraph 2.3 of such Agreement is hereby amended to clarify that the parties understand and agree that the laws applicable to construction of the theater on City- owned property requires that the prime contractor provide a payment bond to BCP to protect the rights of laborers, vendors and materialmen who provide goods and services to the project. 1.06 Paragraph 3.18 of such Agreement is hereby amended to limit BCP control of the additional office space contemplated in the second phase of development. Any such additional space that may ay exist in the facility will be under the control of and may only be leased from the City. The City reserves the right to execute such leases, establish the rental rates, and to receive the proceeds therefrom. IN WITNESS WHEREOF, BCP and City have executed or caused to be executed by the duly authorized offices or agents this lease extension on the day of , 2005. CITY OF BEAUMONT BEAUMONT COMMUNITY PLAYERS By: By: Kyle Hayes, City Manager Kay Timaeus, President STATE OF TEXAS COUNTY OF JEFFERSON § DEVELOPMENT AND LEASE AGREEMENT This Development and Lease Agreement is entered into this the q,�(" �_day of 2000, by and between the City of Beaumont, a municipal corporation of the State of Texas (hereinafter referred to as "City"), and Beaumont Community Players, a non-profit corporation of the State of Texas (hereinafter referred to as "BCP"). WITNESSETH : WHEREAS, BCP desires to construct a community theater building on land owned by City at an approximate cost of$1.5 million and give said theater building to City at the completion of construction and thereafter lease the theater building and land (herein the "Facility") as a community theater for the benefit of the citizens of Beaumont and Southeast Texas; and WHEREAS, City has Property available, said Property being described in Exhibit "A" attached hereto and made a part hereof for all purposes (herein the "Property"), and wishes to allow BCP the use of the Property for purposes of construction of a theater structure and then lease the structure to BCP. G:IRMIMBCP.gGR Page 1 of 10 , 1 NOW, THEREFORE, IN CONSIDERATION of the mutual promises herein contained and with successful project implementation being the common objective, City and BCP agree as follows: 1. CITY COMMITMENTS 1.1. City will provide to BCP, free and clear of all physical encumbrances, the Property. The Property will be made available for a period of two (2) years after the date of execution of this Agreement, after which time the right of BCP to use the"Property will terminate unless BCP has either completed or substantially completed the construction of a theater building on the Property. 1.2. After completion of the theater structure and approval by the City, the City will accept the gift of the theater structure and lease the facilities to BCP for a twenty 0 ty ( ) year period. 2. BCP COMMITMENTS 2.1. BCP will be solely responsible for providing funding of the entire project, including, but not limited to, construction costs, architectural fees, engineering fees and geotechnical fees necessary for the construction of the theater building. 2.2. BCP will retain an architect licensed in the State of Texas to prepare construction drawings and specifications and provide contract management of the entire project. The plans and specifications for the project shall be subject to the approval of the City Manager of City or his designee. G:IRMVYIBCPAGR Page 2 of 10 t 2.3. BCP will be responsible for the construction of the theater structure in accordance with all laws and ordinances applicable to such construction. 2.4. BCP will execute all documents necessary to make a gift of the theater structure to City after completion of construction and acceptance by City. 3. LEASE AGREEMENT 3.1. For and in consideration of the gift of the theater building to the City and the performance by BCP of covenants and agreements contained in this instrument, City does hereby lease and let unto BCP and BCP does hereby take and lease from City the Facility. 3.2. The Lease shall commence after the gift to City by BCP and the acceptance by City of the theater structure and shall continue for twenty (20) years thereafter, said Lease to terminate no later than the 31 st day of August, 2022, if not sooner terminated as hereinafter provided. 3.3. As rental hereunder, BCP agrees to pay to City the sum of Two Hundred Dollars ($200), said sum being payable at the rate of Ten Dollars ($10) per year during the term of this lease. 3.4. BCP shall use and occupy the Facility as a community theater and for related purposes, including, but not limited to, educational, civic, fundraising and entertainment purposes. BCP agrees to operate the Facility as a community theater during the full term of this Lease. G:�fiMWlBCf'AGR Page 3 of 10 l ' 3.5. BCP will comply with an y and all laws, ordinances, rules, orders and regulations of any governmental authority which are applicable to BCP's operations in and on the Facility. 3.6. Nothing contained herein shall prevent BCP from charging an admission price for persons to attend performances at the theater structure or to use and charge for the use of the theater structure for related events. City shall be allowed to use the facilities when available for.no charge. 3.7. During the term of this Lease, BCP shall not,.without first obtaining the written consent of the City Manager of City or his designee, make any alterations, additions, or improvements in, to or about the Facility, provided, however, that such consent shall not be unreasonably withheld. Any work done by BCP in, to or about the Facility shall be done in a good and workman-like manner and without impairing the structural integrity of the building and in compliance with all applicable codes, ordinances and laws and no liens shall attach to the Facility. Similarly, during the term of this Lease, City will not, without first obtaining the written consent of BCP, make any alterations, additions or improvements in,to or about the Facility; provided, however, that such consent shall not be unreasonably withheld. 3.8. BCP shall not do or suffer anything to be done in or about the Facility which will increase the rate for fire and extended coverage insurance on the Facility. 3.9. If the Facility is damaged by fire or any other casualty, all insurance proceeds for such casualties shall be paid to either BCP or City, as their interest may appear and as G: W18CP - AGR Page 4 of 10 . I their loss may be allocated. Either City or B CP may elect to terminate this Lease under the terms hereof should afire or other casualty loss result in damage to the Facility in excess Of fifty percent (50%) of the replacement cost of such Facility immediately prior to such casualty. Should either party elect such termination, then the other party shall have the option for sixty (60) days after the date of such election and notice of such election to terminate the Lease or to elect to rebuild the Facility. Such election to rebuild by either party shall be by written notice to the other party. Should such party elect to rebuild as Provided herein, then this Lease shall continue in full force and effect from and after the completion of the rebuilding and reconstruction of the Facility. Any rebuilding or reconstruction of the Facility shall restore such premises to substantially the same condition as existed prior to such casualty loss. Should either party elect to rebuild, such insurance proceeds as shall have been paid to both parties shall be deposited in a state or federal bank with offices located in the City of Beaumont, Jefferson County, Texas. Such insurance proceeds shall be held in escrow by such bank as a trust fund for the purpose of paying for the cost of rebuilding and repairing the Facility and the cost of making temporary repairs or doing such work as may be necessary to protect the Facility against further injury. Such insurance proceeds shall be disbursed in accordance with the provisions of paragraph 3.10 hereof. The bank shall be entitled a reasonable compensation payable out of such fund. If insurance proceeds held by the bank as provided in this paragraph shall exceed such costs, such excess shall belong to and be paid over to the parties who deposited said amounts in proportion to their interest in the G:1RMW16CP AGR Page 6 of 10 account. If rebuilding of the Facility is undertaken by BCP under this Article the construction shall be made subject to the approval of City. 3.10. Any monies paid out of the trust fund established under the terms of paragraph 3.9 hereof shall be paid as the work progresses, upon the request of the party performing the reconstruction, and against the certificates of the architect or engineer in charge of such reconstruction showing that the amount stated in the particular certificate has-been paid or is due in respect to such work together with the names and addresses of the persons, if any, to whom such amounts are due. Payments hereunder shall be subject to normal retainage applicable to construction contracts entered into by home-rule cities in accordance with the laws of the State of Texas. 3.19. Upon any termination of this Lease under any provisions of this Lease other than on a default on the part of BCP, BCP shall be entitled to remove all of the furniture, furnishings and other property of BCP located on the Facility, specifically including, but not limited to, sound, lighting and special effects property associated with theatrical productions. 3.12. Subject to all limits, deductibles and limitations of its policies chosen by City, City shall procure and maintain Texas multi-peril form hazard insurance coverage on the Facility in not less than the full insurable value thereof. Such insurance shall be obtained in the name of City. 3.13. BCP shall procure and maintain all insurance which it deems necessary for its protection against loss of or damage to any property in or on the Facility. 'G:1fiMIMBCPAGR Page 6 of 10 3.14. If either party defaults on the erformance of p any covenants or conditions hereof, such party may give notice of such default to the other and, if such other party does not cure such default within thirty (30) days after such notice, then the non-defaulting party may terminate this Lease by written notice to so terminate and, if terminated by City, City may re-enter and take possession of the Facility or remove all persons and property therefrom without being deemed guilty of any manner of trespass. 3.15. The failure of either party to insist on strict performance of any covenant or condition hereof or to exercise any option or election herein contained shall not be construed as a waiver of such covenant, condition, option or election. In any other instance, this Lease cannot be changed, amended or terminated orally. 3.16. During the term of this Lease, BCP shall be responsible for general building and grounds maintenance of the Facility and the security system. Maintenance, as used herein, shall mean janitorial service, replacement of luminaries, minor plumbing, minor -HVAC maintenance, such as annual checks and replacement of filters, interior painting, beautification and maintenance of landscaping other than grass cutting and general yard maintenance. City will be responsible for walls, roof, exterior windows, HVAC system operation, major plumbing repairs, and the structural integrity of the Facility. City will be responsible for grass cutting and trimming in accordance with the City's regular schedule and quarterly pest control to include termite treatment. City will be responsible for all utilities including garbage collection costs except telephone and cable television or other cable communication devices. Maintenance and repair or replacement of all interior �' G:1EiMW18CPAGR Page T of 10 .l lighting and sound - s stems Y associated with theatrical performances will be the responsibility of BCP, 3.17. BCP agrees to schedule annually a series of not less than three(3)theatrical performances in the Facility utilizing area talent. 3.18. BCP will have control of the use of the Facility throughout the term of this lease and, thus, may allow the Facility to be used by others when available on terms and conditions to be decided by BCP. However, BCP may not assign its obligations under this lease without written consent of City Manager of City. 3.18. BCP shall provide broad form liability insurance (including contractual coverage) naming the City as an additional insured for all uses of the Facility with aggregate limits of not less than $1 million. 3.20. The provisions oft this Lease shall apply to, bind and inure to the benefit of City and BCP.and their respective successors and assigns; provided, however, that the inclusion of assigns in this sentence shall not be construed to permit an assignment contrary to any other provision or covenant of this lease. 3.21. This lease and any and all amendments, modifications or other writings pertaining thereto shall be construed under and pursuant to the laws of the State of Texas. 3.22. In the event that any provision hereof or the application thereof to any person or circumstances shall be judged invalid or unenforceable, the remainder of this Lease or the application of such provision to persons or circumstances other than those to which it G:1RMW18CPAGR Page a of 10 is held invalid or unenforceable shall not affected thereby and each term and provision of this Lease shall be valid and enforced to the fullest extent permitted by law. 3.23. In construing this Lease, masculine or feminine pronouns shall be substituted for those neuter in form and vice versa and plural terms shall be substituted for singular and singular for plural in any place in which the context so requires. 3.24. Any notice required hereunder shall be given in writing and shall be deemed to have been duly given only if delivered personally or sent by registered or certified United States mail, return receipt requested, in a postpaid envelope properly addressed to the party entitled to receive such notice. Notices shall be sent to the following addresses: City: BCP: City Manager Beaumont Community Players City of Beaumont P. O. Box 21743 P. O. Box 3827 Beaumont, Texas 77720-1743 Beaumont, Texas 77704 3.25 BCP understands that BCP shall be solely responsible for providing adequate parking for the facility during the term of this lease 3:26 City shall be provided keys to the facility and may enter the facility at any time. 3.27 This Agreement and Lease may only be amended by the parties in writing executed by BCP and City Manager of City. 3.28 BCP agrees to indemnify and hold harmless and defend City its officers, agents and employees from and against all liability for claims, liens, suits, demands, and/or actions for damages, injuries to person (including death), property damage, (including loss G:VUAW%BCP.AGR Page 9 of io L l of use), and expenses including court costs and attorney's fees, and reasonable costs arising out of or resulting from BCP's activities in the facility, expressly including negligence of City its officers, agents, employees, or invites. IN WITNESS WHEREOF, BCP and City have executed or cause to be executed by the duly authorized officers or agents this Lease, all as of the day and year first above- written. CITY--OF BEAUMONT BEAUMONT COMMUNITY P RS By, oLw By: Stephen J. oncze ity Manager resident G:VUANOCPAGR Page 10 of 10 "FJ=IT A-1" A 46,871 square foot tract of land out of Block 38 of the Original Town of Beaumont, Jefferson County, Texas, according to the map or plat of said Original Town of Beaumont of record in the office of the County Clerk of Jefferson County, Texas, being described by metes and bounds as follows, to-wit: BEGINNING at the Northeast corner of Lot 179,Block 38 of said Original Town of Beaumont; THENCE South 40 degrees 35 minutes East along the East line of Lot 179 and thru Lot 183, a distance of 180.00 feet to corner at the Northeast comer of Lot 174 and the Northwest corner of Lot 173; THENCE South 49 degrees 25 minutes West along the North line of Lot 174, a distance of 60.00 feet to corner at the Northwest corner of Lot 174 and the Northeast corner of Lot 175; THENCE South 40 degrees 35 minutes East along the West line of Lot 174, a distance of 120.00 feet to the Southwest comer of Lot 174; THENCE South 53 degrees 42 minutes 21 seconds West a distance of 120.34 feet to the Southwest corner of Lot 176; THENCE North 40 degrees 35 minutes West a distance of 171.00 feet to the Northwest corner of Lot 182; TIMNCE North 49 degrees 25 minutes East along the North line of Lot 182, a distance of 1.6 feet to comer, THENCE in a Northeasterly direction along the arc of a curve to the right,and a distance of 119.21 feet to comer at the end of said curve,the radius of said curve being 127.74 feet with a central angle of 53 degrees 28 minutes 23 seconds; THENCE North 21 degrees 54 minutes 07 seconds East,a distance of 57.81 feet to the Northeast comer of Lot 178 and the Northwest corner of Lot 179 in the South right-of-way line of Wall Street; THENCE North 49 degrees 25 minutes East along the North line of Lot 179, a distance of 60.00 feet to the PLACE OF BEGINNING and containing 46,871 square feet,more or less. CKORIGINALTOWN t t "MMIT A-Z" ° N oRLEA NS STREW f N t roe. by-b1�S tl�� Ir M 77 178 I 179 O co /B 182 AREA=46,871 d •ooh.��t /76 6 I 175 4a xrur c f • � /13 / nz O 0=04 OLD"I o m � I � o r COLLEGE (9 PEARL �� DRAM BY.- BMUSTAN SCALE: 1 -60 ! 4 September 6, 2005 PUBLIC HEARING: Receive comments relating to the proposed FY 2006 Budget and the 2005 (FY 2006) Proposed Tax Rate VOW a&&&** City of Bea umont C ouncil Agenda Item.Z � TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max S. Duplant, Finance Officer MEETING DATE: September 6, 2005 AGENDA MEMO DATE: September 1, 2005 REQUESTED ACTION: Hold Joint Public Hearing on proposed FY 2006 Budget and 2005 (FY 2006) Proposed Tax Rate. RECOMMENDATION It is recommended that Council hold a joint public hearing as scheduled on the proposed FY 2006 Budget and the 2005 (FY 2006) Proposed Tax Rate of$0.659. In accordance with the Property Tax Code, the Council must make the following announcement: The meeting to vote on the tax rate will be held on September 20, 2005 at 1:30 p.m. in the Council Chambers. BACKGROUND The proposed FY 2006 Budget was submitted to Council on August 16, 2005 and a work session was held on August 30, 2005. A public hearing was held on the proposed budget on August 30, 2005. Because the public hearing on August 30, 2005 met the requirements of the City Charter but not state law, this second public hearing is being held. Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rate. A Notice of Public Hearing of Tax Increase was published August 23, 2005 regarding the proposal to increase total tax revenue from properties on the tax roll by 3.97%. This increase is related to the appraised value, as there is a proposed decrease in the tax rate of$0.005. The percent change to the homeowner is dependent on their taxable value. BUDGETARYIMPACT The proposed FY 2006 Budget appropriation for all funds, net of contingency, totals $172,310,399. Council Agenda Item August 25, 2005 Page 2 Applying the proposed tax rate of$0.659, and a 97% collection rate, budgeted revenues of $19,439,000 and $11,969,000 respectively to the General and Debt Service Funds are anticipated. The total rate of$0.659 is apportioned $0.407869 to the General Fund and $0.251131 toward Debt Service. PREVIOUS ACTION As required by Article VI, Sections 2 and 4 of the City Charter, the proposed FY 2006 Budget was submitted to Council on August 16, 2005. The notice of the public hearing on the Budget was published August 23, 2005 and August 30, 2005. A public hearing was held on August 30, 2005. On August 16, 2005, City Council took a record vote to place the proposal to adopt a tax rate of$0.659 on the agenda of a future meeting. The motion passed and two public hearings were scheduled for August 30, 2005 and September 6, 2005. The Notice of Public Hearing on Tax Increase was published August 23, 2005. The first public hearing on the tax rate was held on August 30, 2005. MSUBSEQUENT ACTION The target date for adoption of the proposed FY 2006 Budget and the 2005 (FY2006) Proposed Tax Rate of$0.659 is September 20, 2005. RECOMMENDED BY City Manager and Finance Officer