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HomeMy WebLinkAboutPACKET NOV 15 2005 V~ • ' K- City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 15,2005 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments Hubert Oxford would be reappointed to the Civil Service Commission. The current term would expire October 4, 2008. (City Manager Kyle Hayes) A) Amend Resolution No. 05-225 relating to the reprogramming of Community Development Grant Funds to appropriate grant years B) Amend Resolution No. 05-218 relating to the reprogramming of Community Development Grant Funds to appropriate grant years C) Authorize the City Manager to execute all documents necessary to accept funds for a traffic safety grant project D) Authorize the acceptance of a ten foot (19)wide water line easement providing access for fire prevention services E) Amend Resolution No. 05-086 to reflect that Civil Service Commissioner Antoinette Hardy's term of office is to expire on October 4, 2007 • City of Beaumont •�• Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max S. Duplant, Finance Officer MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 9, 2005 REQUESTED ACTION: Council to amend Resolution No. 05-225 to reflect the appropriate Grant Year for the reallocation of the Community Development Block Grant Program. RECOM14ENDATION The administration recommends amending Resolution No. 05-225. The amendment would entail the reprogramming of Community Development Block Grant Funds (CDBG)to appropriate grant years, which would allow the expenditure/closure of the 1998 grant year,prior to expending 2000, 2002, 2003, and 2004 grant year funds. The 1998 and 2000 reprogrammed funds would be used to fund the Disaster Relief Emergency Rehabilitation Program, totaling $380,254. In addition, funding for the Small Business Loan Program would consist of funds from the 2000, 2002, 2003, and 2004 grant years, totaling $258,000. BACKGROUND Currently the 1998, 2000, 2001, 2002, 2003, 2004, and 2005 Community Development Block Grant Programs are open Grant Years with budgeted line items. The 1999 Community Development Block Grant Program Year was completed and closed in October 2004. The only line item that remains open in the 1998 Community Development Block Grant Program Year is the Small Business Loan line item. In an effort to close the older 1998 Community Development Block Grant Program Year, the remaining grant funds will be used for the Disaster Relief Emergency Rehabilitation Program, and the Small Business Loan line item funding will be available from the 2000, 2002, 2003, and 2004 Community Development Block Grant Programs. The Small Business Loan line item funding will continue to be available when there is a need to fund a Small Business Loan. BUDGETARY IMPACT Move the following amounts to the Disaster Relief Emergency Rehabilitation Program: Program Year Line Item Amount 1998 Small Business Loans $258,000 2000 Charlton-Pollard Strip Center 122,254 (Approved November 1, 2005) Total $380.254 Move the following amounts to the Small Business Loan Program: Program Year Line Item Amount 2000 Charlton-Pollard Strip Center $ 3,746 (Approved November 1, 2005) 2002 Acquisition 10,376 2002 Infrastructure 53,878 2003 Infrastructure 100,000 2004 Infrastructure 90.000 Total $258.000 PREVIOUS ACTION Council considered approval of a proposal to reallocate funds from the 2000, 2002, 2003, and 2004 Consolidated Block Grant Programs. Reallocation was approved on November 1, 2005. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Finance Director, Budget Officer, and Accountant III. VOW...... Cit y of Beaumont •�• Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max S. Duplant, Finance Officer MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 9, 2005 REQUESTED ACTION: Council to amend Resolution No. 05-218 to reflect the appropriate Grant Year for the reallocation of the Community Development Block Grant Program. RECONIlVIENDATION The administration recommends amending Resolution No. 05-218. The amendment would entail the reprogramming of Community Development Block Grant Funds (CDBG)to appropriate grant years, which would allow the use of funds from the 2002 Community Development Block Grant Program to be expended in a more timely manner. The 2002 reprogrammed funds ($75,000 - Acquisition), would be used to fund Some Other Place ($25,000), Southeast Texas Food Bank ($25,000), and the Salvation Army ($25,000), in order to assist with disaster relief efforts as previously approved on October 25, 2005. BACKGROUND Currently the 1998, 2000, 2001, 2002, 2003, 2004, and 2005 Community Development Block Grant Programs are open Grant Years with budgeted line items. The 1999 Community Development Block Grant Program Year was completed and closed in October 2004. The use of the 2002 Community Development Block Grant funds, rather than the 2004 Community Development Block Grant funds, would make the effort to employ the grant funds in the order in which they were received/allotted to the City. BUDGETARY Il"ACT Funding is available from the 2002($75,000-Acquisition)Community Development Block Grant Program. PREVIOUS ACTION Council conducted a public hearing to receive citizen comments and approve a proposal to reallocate funds from the 2004 Consolidated Block Grant Program. Resolution to reallocate was approved on October 25, 2005. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Finance Director, Budget Officer, and Accountant III. c City of Beaumont . . . Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED: Tom Scofield, Chief of Police MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 9, 2005 REQUESTED ACTION: Consider a Resolution authorizing the City Manager to execute all documents necessary to accept the project titled "F Y06 S. T. E. P. Waves". RECOMMENDATION Administration recommends authorizing City Manager to execute all documents necessary to accept the project titled"FY06 S. T. E. P.Waves"which occurs between October 1, 2005 and September 30, 2006. BACKGROUND In January, 1999, the City Council passed a resolution authorizing the city to apply for matching funds for a traffic safety"Safe and Sober S. T. E. P." grant project. The Police Department has successfully applied for and the City Council approved several traffic safety grants since that one. This grant application will provide funding for a"FY06 S.T.E.P.Waves"grant program. The grant would be in the amount not to exceed Thirteen Thousand Nine Hundred and Thirty Nine($13,939) Dollars from the Texas Department of Transportation with a city"match"funding of Two Thousand, and Forty Six($2,046)Dollars. BUDGETARY IMPACT City would receive grant funding in a total amount of Thirteen Thousand Mine Hundred and Thirty Nine($13,939)Dollars with a city contribution of Two Thousand, and Forty Six($2,046)Dollars. PREVIOUS ACTION The City has participated in"S. T. E. P."traffic enforcement grants in prior years. SUBSEQUENT ACTION None RECOMMENDED BY City Manager and Chief of Police RECOMMENDED MOTION Accept/Deny the Resolution authorizing the City Manager to execute all documents necessary to accept the project titled"FY06 S. T. E. P. Waves". RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS,the City of Beaumont has been notified by the Texas Department of Transportation that it is eligible to receive funding to assist in highway safety enforcement; and, WHEREAS,the City of Beaumont recognizes that the safety and security of the motoring public is of paramount concern to the City; and WHEREAS,the City of Beaumont strives to enhance the safety of the motoring public; and, WHEREAS, grant funding through the Texas Department of Transportation would assist in enhancing the safety of the motoring public and reducing motor vehicle crashes which often result in loss of life or personal injury; and WHEREAS,traffic safety enforcement and encouragement of safe driving habits is a significant goal of the Beaumont Police Department; and WHEREAS,the City of Beaumont has been notified by the Texas Department of Transportation that it is eligible for federal reimbursement funding in an amount not to exceed Thirteen Thousand Nine Hundred and Thirty Nine ($13,939)Dollars pursuant to the projects titled"FY06 S.T.E.P. Waves" for occupant protection enforcement, education of the public and speeding enforcement. WHEREAS,the City of Beaumont has agreed to contribute Two Thousand and Forty Six ($2046)Dollars as their portion of the costs for the projects titles"FY06 S.T.E.P. Waves"which are Valentines Day 2006 holiday, Memorial Day 2006 holiday,Independence Day 2006 holiday, and Labor Day 2006 holiday. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager of the City of Beaumont,be, and is hereby, authorized to execute all documents necessary to accept the project"FY06 S.T.E.P. Waves" and take such action as necessary to implement the project which occurs between October 1st 2005 and September 30th 2006; and, 0 Accept and disburse the federal reimbursement grant funding in the amount not to exceed Thirteen Thousand Nine Hundred and Thirty Nine ($13,939)Dollars; and, Take such other actions and execute such documents as may be necessary and appropriate to implement the purpose and objectives of the"FY06 S.T.E.P. Waves"project. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of , 2005. -Mayor Guy Goodson- ...... Cit of Beaumont +� y Council Agenda Item � = c g TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 8, 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. Fesco, Ltd. has agreed to convey a ten foot (10') wide Water Line Easement to the City of Beaumont. The easement will provide mandatory access for fire prevention services for their property located at 2205 West Florida Street(0.0631 acre out of John A. Veatch Survey,Abstract No. 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. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Public Works Director. engfire_fesco-ib.wpd 8 November 2005 EXHIBIT "A" Legal Description: 0.0631 Acre Water Utility Easement(10 feet Wide) John A.Veatch Survey,Abstract No. 55 Jefferson County,Texas BEING a 10 feet wide water utility easement containing 0.0631 acres situated in the John A. Veatch Survey, Abstract No. 55, Jefferson County, Texas and also being out of and part of that certain called 19.7954 acre tract of land, identified as TRACT I as described in a"General Warranty Deed" from Kelley Marie Bankston and Todd William Gessel,Individually and as Joint Administrators of the estate of John A. Bankston, Deceased to FESCO, Ltd. as recorded in Clerk's File No. 2002038502, Official Public Records, Jefferson County, Texas, said 0.0631 acre water utility easement being more particularly described as follows: NOTE. All bearings are based on the North line of the said 19.7954 acre FESCO, Ltd. tract as SOUTH 89°56'00"EAST as recorded in the above referenced Clerk's File No. 2002038502, Official Public Records,Jefferson County, Texas. COMMENCING at a 5/8" iron rod with a cap stamped "RPLS 3636" found for the Northeast comer of the 19.7954 acre FESCO, Ltd. tract, said corner also being the Southeast corner of that certain called 9,014.87 square foot tract of land as described in a "General Warranty Deed" from Joe Zerangue, d/b/a Dril-Oil Company to the City of Beaumont as recorded in Volume 2402, Page 321, Deed Records, Jefferson County,Texas; THENCE NORTH 89 056'00" WEST, along and with the North line of the said 19.7954 acre FESCO, Ltd. tract and the South line of the said 9,014.87 square foot City of Beaumont tract, for a distance of 356.09 feet to the Northeast corner and POINT OF BEGINNING of the easement herein described; THENCE SOUTH 00 00609" WEST, over and across the said 19.7954 acre FESCO, Ltd. tract, for a distance of 275.00 feet to a point for corner; THENCE NORTH 89 056'00" WEST, continuing over and across the said 19.7954 acre FESCO, Ltd. tract,for a distance of 10.00 feet to a point for corner; THENCE NORTH 00 006'09" EAST, continuing over and across the said 19.7954 acre FESCO, Ltd. tract, for a distance of 275.00 feet to a point for corner, said corner being in the North line of the said 19.7954 acre FESCO, Ltd. tract and the South line of the said 9,014.87 square foot City of Beaumont tract; THENCE SOUTH 89 056'00" EAST, along and with the North line of the said 19.7954 acre FESCO,Ltd. tract and the South line of the said 9,014.87 square foot City of Beaumont tract, for a distance of 10.00 feet to the POINT OF BEGINNING and containing.0.0631 ACRES, more or less. Surveyed on September 6, 2005 by Thomas S. Rowe, RPLS No. 5728. This legal description is being subm' ed long w'th a plat based on this surve HIBIT "B"). E OF THOMAS S ROWE � ....:............. ........... Thomas S.Rowe, RPLS No. 5728 <;9 5728 ;Q w:.\2005\05-5M05-5$9M&&n0c ��j:�;�e s S •s�a�� MARK W. WHITELEYAND ASSOCIATES,INC. CALLED 1.679 ACRES WEST HIGHLAND W E FND 5/8° NICHOLAS P. SCALLON et ux. E OF THE SCALLION TRUST AGREEMENT US f1/CyWAY —�®— STAMPED DRWLS 3636 FC NO. 103-01-2072 69 96 FLORIDA CALLED 0.2058 ACRES OPRJC EASEMENT ?8� CITY OF BEAUMONT, TEXAS LOCATIO CF NO. 2001023099 f- OPRJC g � APPARENT v AMMIE"4; N. R.O.W. LINE BUN p,. w W COMMERCIAL Q) FLORIDA AVENUE V w METAL BUILDING v? w CHAM LESS �,. o 0 4 O ORIGINAL LOT LINE o� w!L �, _q o ��go VICINITY MAP /. o o m o TRACT 11 w o (N.T.S.) CALLED 0.9664 ACRES FESCO, LTD CF. NO 2001038502 0 �► J W p OPRJC 0 o Z� �zh Q W 5.00"''I vP S00'06 09 W 275.00 S89'56'00"E N89'56'00"W FND 0.0631 ACRES 10.00' �• EXHIBIT "B" 10.00' our OF AN PART of TRACT/ POB REFER TO EXHIBIT 'A'" CALLED 19.7954 ACRES FOR LEGAL DESCRIPTION FESCO. LTD Go CF. NO. 2002038502 dv CALLED 1.040 ACRES OPRJC CALLED 9014.87 S0. FT EDWARD S. STUART et ux. I, THOMAS S. ROWE, DO HEREBY CERTIFY THAT THIS SURVEY CITY OF BEAUMONT �y FO N . 102-38-f827 ®e� WAS ON THIS DAY MADE ON THE SURFACE OF THE GROUND ol VOL. 2402, PG. 321 W OPRJC 41 OF THE PROPERTY LEGALLY DESCRIBED HEREON AND CORRECTLY TRACT I APPARENT Q0 ll DRJC REPRESENTS THE FACTS FOUND AT THE TIME OF SURVEY. o cull CALLED 19.7954 ACRES o N. R.O.W. LINE Qq, THIS PLAT IS BEING SUBMITTED ALONG WI oQ FESCO, LTD co W FLORIDA AVENUE p DESCRIPTION BASED ON THIS SURVEY OF a 4� �1 (E,,....., Icy m CF. NO. 2002038502 z ` � A S PTEMBER 2 s r ' OPRJC A DATE SURV D: Q,z -{- W— a••••• SS ����//C AS W �W YK� p�j O �•...••.••..••...��VVI=. C . , 3 ma 0 r"P 5728 Z •9 Q •.FFss,o,,�o W m 2�o a e� CALLED 0.5062 ACRES AS S. ROWE ••S R• S o O P WILLIAM JAMES CHALMERS, JR k= CE CF. NO. 2000024174 . REGISTERED PROFESSIONAL LAND SUR W W o W¢ °a" -WW Qv POC OPRJC o m _ W �QO FND 518 CLIENT: I. ROD W/CAP FESCO Inc. FESCO INC. W N O 2 Z to STAMPED RPLS 3636" O O` W Q� OR BY: CWH SCALE: SHEET No.: O � J VER: ACRD 2006 °_ oo' T of I 0.0631 ACRE 2 U�Wo- 2 In2SUO = C , 708 N0. FlLE: W:\2005\05-589 REV. v_1 W c�Uzo C!ALC. LOT OR TRACT 4 05-589 05-589.dw o WATER UTILITY EASEMENT > o=a �' CALLED 19.086 ACRES FENCE ORNE SAVE k EXCEPT 112 ACRE 11 '^C w x AWAp6EWNT OF MDUSTON a1C J.R. PLAME JR. MARK W. WHITELEY , AND ASSOCIATES (10 FEET WIDE) °i°w FC N0. 102-07-0680 VOL. 1054, PC. 308 N N W pN a OPRJC _ DRJC INCORPORATED sFre o CORNER JOHN A. VEATCH SURVEY ?o `` y o _ CONSULTING ENGINEERS, o�o�����° FENCE SURVEYORS, AND PLANNERS 2=3 Z W�py POST ABSTRACT N0. 55 2 V7 W W Z O V7 FND FOR O W W U m a �W N.W. FOR p. 0. BOX 6482 3250 EASTE%PREY. OF 19.086 BEAUYONT. TEXAS 77725-6492 BEAUMONT. TEXAS 77709 JEFFERSON COUNTY, TEXAS Z 3 °j Z ti W z k ACR TRACT 408-892-0421 (FAX) 408-892-1946 2�004-1¢30v1W City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 15,2005 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-2/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Accept the Grand Recap of the tax roll for the tax 2005 ear (Fiscal Year 2006 Y (F ) 2. Consider approving the purchase of three(3)dump trucks for use at the Beaumont landfill COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) * Tour and assessment of City park facilities • Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Lenny Caballero at 880-3716 a day prior to the meeting. I~ O City o f Beaumont MEETING OF THE BEAUMONT HOUSING FINANCE CORPORATION COUNCIL.CHAMBERS NOVEMBER 15,2005 1:30 P.M. AGENDA CALL TO ORDER * Roll Call GENERAL BUSINESS 1. Consider the approval of a Bond Resolution authorizing the issuance of up to $4,000,000 of Multifamily Housing Revenue Bonds to Maple Glen Partners for the • acquisition, development and rehabilitation of the apartment complex located at 4365 South 4th St. in Beaumont, Texas Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Lenny Caballero at 880-3716 a day prior to the meeting. • � 1 November 15,2005 Accept the Grand Recap of the tax roll for the tax year 2005 (Fiscal Year 2006) . City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max Duplant, Finance Officer MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 8, 2005 REQUESTED ACTION: Accept the Grand Recap of the tax roll for the tax year 2005 (Fiscal Year 2006) with a taxable value of$4,913,341,853. RECOMMENDATION Administration recommends the acceptance of the Grand Recap of the tax roll for the tax year 2005 with a taxable value of$4,913,341,853. BACKGROUND Pursuant to the Texas Property Tax Code, Section 26.09, this recap must be approved by the City Council. BUDGETARY IMPACT Property tax revenues in the FY 2006 Budget were calculated based on this taxable value. PREVIOUS ACTION On September 20, 2005 Council approved the tax roll as certified by the Jefferson County Appraisal District with a taxable value of$4,913,341,853. There is no change in the taxable value of the Grand Recap. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Finance Officer. 10/23/2005 20:20:59 TAX COLLECTION SYSTEM PAGE: 9 7C501 C H R T I F I R D R 0 L L J U R I S D I C T I O N S U M M A R Y PROCESSING FOR TAX YEAR: 2005 CI t9 00 I JURISDICTION: 0021 CITY OF BEAUMONT f TOTAL PARCELS: 63, 314 TAX RATE:00.659000 MARKET VALUE: 5,472,543,050 STATE HOW 0 OPT HOW 0.00000 EXEMPT PARCELS: 31992 STATE 065: 0 OPT 065: 17,500 EXEMPT VALUE: 330,797,210 DISABLED: 17,500 •• r AG EXCLUSION: 30,972,630 (A AG PROPBRTIES: 231 HS CAPPED CNT: 5,946 HS CAPPED A14T: 25,624,660 ABATED PARCELS: I ABATED AMOUNT: 1,863,750 HISTORICAL CNT: 9 HISTORICL VALUE: 4,193,430 m PRORATED CNT: 31 -n PRORATED VALUE: 544,447 GROSS TAXABLE: 5,078,546,923 n O STATE HOMESTEAD 24,603 HOMESTEAD AMT: 0 LOCAL HOMESTEAD 24,603 HOMESTEAD AMT: 0 OVER65 8,101 OVER 65 AMT: 0 pp LOCAL OVER65 8,101 OVER 65 AMT: 139,510,580 -n SURVIVING SPOUSE: 0 AMOUNT: D m N OF DISABLED: 1,195 DISABLED AMT: 20,293,23D VET 0 $5000 1 VETERAN AMT: 0 VET a $7500 2 VSTIsRAN AMT: 0 VET Q $10000 1 VETERAN AMT: 0 VET 0 $12000 624 VETERAN AMT: 5,401,260 TOTAL VET 628 VETSP,AN AMT: 5,401,260 TOTAL PART XMP: 165,205,070 TAXABLE VALUE: 4,913,341,853 FROZEN ACCTS: 0 LEVY LOSS. 0-00 TOTAL LEVY: 32,370,931.02 FROZEN GROSS: 0 (� FROZEN TAXABLE: 0 UNFROZEN LEVY: 0,00 FROZEN LEVY: 0.00 00 TIP CAPTURED: 0 O U D m f IV '0 t9 Rl RESOLUTION BE IT RESOLVED PURSUANT TO THE TEXAS PROPERTY TAX CODE, SECTION 26.09, THAT THE CITY COUNCIL OF THE CITY OF BEAUMONT HEREBY APPROVE THE 2005 TAX ROLL THIS DAY OF , 2005. For the City of Beaumont Sworn to and subscribed before me, the undersigned authority, this day of , 2005. Notary Public in and for the State of Texas ! 2 November 15,2005 Consider approving the purchase of three(3) dump trucks for use at the Beaumont landfill City of Beaumont Council Agenda Item Im OL TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Kirby Richard, Internal Services Director MEETING DATE: November 15, 2005 AGENDA MEMO DATE: November 9, 2005 REQUESTED ACTION: Council approval of the purchase ofthree(3)articulated dump trucks. RECONMIENDATION Administration recommends the purchase of three(3)articulated off-road dump trucks for the Public Works Department, Solid Waste Landfill Division,through the Texas Association of School Boards (TASB) Buyboard cooperative purchasing program. The Texas Local Government Purchasing Cooperative, administered by TASB, complies with all state bidding statutes. Membership with Buyboard allows municipalities to purchase items from their contracted vendors. BACKGROUND An articulated off-road dump truck is used to transport cover material from one preliminary cell location to a finished cell location. Due to the uneven terrain which includes very steep slopes and muddy soil, an articulated off-road dump truck is necessary. The truck is j ointed between the cab and the bed allowing the bed to completely roll over if the loaded capacity exceeds its limits. The cab stays in place and the bed may be raised without damage to the driver,bed or cab. The all-wheel drive and large diameter tires allow maneuverability on all types of terrain. The dump body capacity is 25 cubic yards which provides more hauling capacity than a normal on-road dump truck. Currently,the City owns one(1) 1983 Caterpillar DJB, one(1)1990 Caterpillar D25, one (1) 1992 Caterpillar D25 and one(1)2005 Caterpillar 725 articulated off-road dump trucks that are in daily use at the Landfill. The 1983 model, 1990 model and 1992 model will be replaced with this purchase. Purchase of articulated dump truck November 9, 2005 Page 2 The contracted Buyboard vendor is Mustang Tractor and Equipment Company of Beaumont. The trucks to be furnished are Caterpillar Model 725 at a total cost of$873,792 or$291,264 each. The trucks will be delivered within sixty(60)days. Included is a standard warranty of six(6)months plus a powertrain warranty of five (5)years or 7,500 hours. BUDGETARY IMPACT Funding for the purchase of the three(3)units will be provided through a lease purchase agreement. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Internal Services Director and Public Works Director. • • BEAUMONT � HOUSING FINANCE CORPORATION • ORGAIN , BELL & TUCKER, L. L. P. ATTORNEYS AT LAW P. 0. BOX 1 751 LANCE FOX OTHER OFFICES BEAUMONT, TEXAS 77704- 1 75 1 PARTNER HOUSTON - THE WOODLANDS EXTENSION 376 470 ORLEANS BUILDING, FOURTH FLOOR 77701 AUSTIN E-MAIL: 1cf @Obt.com TELEPHONE (409) 638-64 1 2 SILSBEE FAX (409) 838-6959 www.obt.com MEMORANDUM TO: Beaumont City Council Kyle Hayes, City Manager Tyrone Cooper, City Attorney FROM: Lance Fox DATE: November 3, 2005 RE: Beaumont Housing Finance Corporation Multi-Family Housing Revenue Bonds, Maple Glen Partners, LLC Project, Series 2005 (Pear Orchard) This Memorandum is to update you on the status of the above referenced Project and to advise you that the Developer, Maple Glen Partners, LLC ("Maple Glen"), is ready to move forward towards closing and is requesting that the Beaumont Housing Finance Corporation proceed with passing the Bond Resolution to give final approval to the issuance of the bonds that will finance this Project. It will take approximately 30 to 45 days to close this transaction once the Beaumont Housing Finance Corporation passes the Bond Resolution and the Developer is trying to close this transaction during the month of December. Thus, the Developer has requested that the Beaumont Housing Finance Corporation approve the Bond Resolution at the next earliest date possible, which could either be the upcoming Tuesday,November 8, 2005,meeting of the Beaumont City Council or the following Tuesday,November 15, 2005. I. Transaction Summary. The Beaumont Housing Finance Corporation will issue up to $4,000,000 of its multi-family revenue bonds (the "Bonds"), which will be purchased by the Underwriter and resold on the public market. The proceeds of the Bonds will be loaned by the Beaumont Housing Finance Corporation to the Developer to be used to acquire, repair, renovate and operate the Project. The Bonds will be repaid over a term of 30 years. The Bonds will be special limited obligations of the Beaumont Housing Finance Corporation and will be payable solely from the revenues of the Project and will be secured by a lien on the Project. Neither the City of Beaumont nor the Beaumont Housing Finance Corporation Page 2 will have any personal liability or responsibility for payment of the Bonds. This is required by state law and the Attorney General of Texas will not approve of the issuance of the Bonds unless they are structured in this manner. The issuance of the Bonds, the loan of the proceeds, the collection of payments from the Developer, the use of such payments to make principal and interest payments on the Bonds, and the general oversight of the Project for the benefit and protection of the bondholders will be handled and administered by a Bond Trustee (identified below), who will be appointed by the Beaumont Housing Finance Corporation pursuant to a Trust Indenture entered into at the time of closing. This arrangement is customary for these types of transactions so that neither the City nor the Beaumont Housing Finance Corporation have to remain actively involved in the transaction after the Bonds have been issued. Because the Bonds will be tax-exempt bonds issued for housing purposes, the Developer must agree that at least 40% of the units in the Project are leased to tenants who qualify as low income tenants. You will recall that previously the Beaumont Housing Finance Corporation passed an Inducement Resolution in August, 2005, to induce the parties to go forward. In connection therewith, a public TEFRA hearing took place in September to give the public an opportunity to comment on the Project. The TEFRA hearing is required to be held under the terms of the Internal Revenue Code in order for the Bonds to qualify for tax-exempt status. No person appeared at the TEFRA hearing. This is not unusual. If desirable, it is still possible to have a community meeting to allow members of the public to comment about this Project. Enclosed with this Memorandum is a copy of the TEFRA Notice that was published in the Beaumont Enterprise. H. Parties and Defined Terms. Developer: Maple Glen Partners, L.L.C., an Ohio limited liability company owned by Jorge Newberry, 731 E. Broad Street, Columbus, Ohio 43205. Mr. Newberry has represented in his application to the Beaumont Housing Finance Corporation that he has over 14 years of experience in real estate development, especially affordable housing projects, and currently owns over 3,000 units. Project: Pear Orchard Plaza Apartments,4365 South 4th Street,Beaumont,Texas. Financing Amount: Up to $4,000,000,the proceeds of which will be used to acquire, rehabilitate, renovate and repair the Project. Page 3 Underwriter: Bergen Capital, Inc., 777 Terrace Avenue, 6t'Floor, Hasbrouck Heights,New Jersey 07604, Attention: James A. Swan. Trustee: Bank of Oklahoma,N.A., One Williams Center, Tulsa, OK 74192,Attention: Marrien Neilson. Bond Counsel: Chix Miller, Sell &Melton, 577 Mulberry Street, Macon, Georgia 31201. Counsel to Beaumont Housing Finance Corporation: Tyrone Cooper, and Lance Fox, Orgain,Bell &Tucker, L.L.P., 470 Orleans, Suite 400, Beaumont, TX 77701. III.Proiect Summary. The Project will involve the acquisition,rehabilitation,renovation and repair of the Pear Orchard Plaza Apartments for low-income families and individuals in Beaumont. The Project has 150 2-bedroom units that are all subject to a HAP contract. The Developer estimates that 20 construction jobs will be created and 7 permanent jobs with an annual payroll of approximately $280,000. IV.Financing Documents. The following primary financing documents that are to be approved and entered into in connection with this transaction include the following: 1. Bond Resolution. 2. Trust Indenture. 3. Loan Agreement. 4. Mortgage. 5. Regulatory Agreement. There will also be other customary closing certificates and instruments executed at closing. At this time, I have only attached a copy of the Bond Resolution to this Memorandum. I have provided copies of all of the above documents to Tyrone Cooper and if any member of the City Council would like copies of any of these documents, let me know and I will be happy to send them to you. V. Closing Procedures and Requirements. Once the Beaumont Housing Finance Corporation passes the Bond Resolution,the parties.can proceed towards closing,which is expected to take place during December, 2005. The following requirements must be satisfied to close: Page 4 1. The issuance of the Bonds must be approved by the Texas Attorney General's Office. 2. The Developer must obtain an allocation from the Texas Bond,Review Board approving of the issuance of the Bonds. This allocation has been applied for and approval is expected. 3. A title insurance policy must be issued to the Trustee on behalf of the Bondholders confirming that the Developer will acquire good and marketable title to the Project, free and clear of all liens. 4. The Developer must obtain and maintain insurance on the Project. 5. All closing fees and expenses must be paid. These will be paid out of the bond proceeds. 6. Our firm and bond counsel will issue an opinion on the legality and validity of the Bonds, including an opinion that neither the City nor the Beaumont Housing Finance Corporation have any personal liability for payment of the Bonds. 7. The Developer paid an application fee to the Beaumont Housing Finance Corporation of$1,000. So long as the Bonds are outstanding, it must pay to the Beaumont Housing Finance Corporation an annual administration fee equal to .00125 of the outstanding principal amount of the Bonds, which on $4,000,000 of Bonds is equal to $5,000. This fee will be calculated each year based on the actual amount of Bonds outstanding and will reduce each year as principal payments are made on the Bonds. Once you have had an opportunity to review this Memorandum,please contact me to discuss any questions you have about this matter. Orgai , ell &Tucker, L P. Lance Fox