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Home My WebLink AboutMIN NOV 14 2006 M I N U T E S - CITY OF BEAUMONT Andrew P. Cokinos, At-Large GUY N. GOODSON, MAYOR Becky Ames, At-Large Lulu L. Smith, Ward I CITY COUNCIL MEETING Nancy Beaulieu, Mayor Pro Tem, Ward II Audwin Samuel, Ward III November 14, 2006 Bobbie J. Patterson, Ward IV Tyrone E. Cooper, City Attorney Kyle Hayes, City Manager Rose Ann Jones, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on November 14, 2006, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items 1-4/Consent Agenda Consent Agenda Mayor Goodson called the council meeting to order at 1:30 p.m. Rev. James C. Franklin of the Pleasant Green Baptist Church gave the invocation. Councilmember Samuel led the Pledge of Allegiance. Roll call was made by Rose Ann Jones, City Clerk. Present at the meeting were Mayor Goodson, Mayor Pro Tem Beaulieu, Councilmembers Smith, Ames, Samuel and Patterson. Absent: Councilmember Cokinos, Kyle Hayes, City Manager; Tyrone Cooper, City Attorney. Also present were Tom Warner, Public Works Director; Joe Sanders, Assistant City Attorney; Rose Ann Jones, City Clerk. Proclamations, Presentations, Recognitions "Great American Smokeout Day in Beaumont" - October 14 - 24, 2004 - Proclamation read by Mayor Pro Tem Beaulieu; accepted by Judy Cornelius with the Beaumont Public Health Department Tobacco Prevention Coalition; Maria Morales, President of Drug Free Beaumont Commission; Irene Rameriz, Galen Jones and representatives from the American Cancer Society; Dora Nisby of the YWCA and the Tobacco Coalition and Julie Rogers Gift of Life Program Presentation: Antoinette Hardy with the Beaumont Housing Community Development presented Helping Hands Awards to Council Announcement: Mayor Goodson announced that Kyle Hayes, City Manager and Tyrone Cooper, City Attorney were out of town at the Brownfields Conference in Boston, Massachusetts; City Council meeting will be lead by Tom Warner in the City Manager's absence Minutes-November 14,2006 Public Comment: Persons may speak on scheduled agenda items 1-4/Consent Agenda. John Werner 1 Oakleigh Blvd. Beaumont TX Item 1 - Spoke in favor of the refunding of the bonds as it will save the City $500,000 by exchanging out some olds bonds at higher interest rates for new bonds at a lower interest rate; it underscores the great financial position of the City of Beaumont CONSENT AGENDA Approval of minutes - Minutes of November 7, 2006 Confirmation of committee appointments - None A) Approve a contract for freeway lighting materials - Resolution 06-352 B) Authorize the City Manager to execute a Local Transportation Project Advanced Funding Agreement for a Congestion Mitigation/Air Quality Project with the Texas Department of Transportation and the South East Texas Regional Planning Commission-Resolution 06- 348 Councilmember Ames made a motion to approve the Consent Agenda. Mayor Pro Tern Beaulieu seconded the motion. AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED GENERAL BUSINESS 1. Consider authorizing the issuance of City of Beaumont, Texas, General Obligation Refunding Bonds, Series 2006; authorizing the refunding of certain bonds and obligations and the execution and delivery of an escrow agreement and the subscription for and purchase of certain escrowed securities; and containing other matters related thereto - Ordinance 06-075 Administration recommended requests approval of an ordinance authorizing the issuance of City of Beaumont,Texas, General Obligation Refunding Bonds, Series 2006;authorizing the refunding of certain bonds and obligations and the execution and delivery of an escrow agreement and the subscription for and purchase of certain escrowed securities; and containing other matters related thereto. Ryan O'Hara presented the details of this bond issuance to Council and answered any questions concerning this transaction. Page 2 of 8 Minutes-November 14,2006 Coastal Securities, UBS Investment Bank, Estrada Hinojosa & Company, Inc, First Southwest Company, and Morgan Keegan & Company, Inc. will provide underwriting services on these bonds. The bonds to be issued will approximate $24,000,000 and will mature March 1, 2008 through March 1, 2018 with interest payable semiannually in March and September beginning March 1, 2007. The Bank of New York Trust Company, N.A., Dallas, Texas will serve at paying agent/registrar. Delivery and receipt of the proceeds by the City is expected to be on December 14, 2006. Proceeds will be used to refund a portion of the 1996 Refunding Bonds, the 1996 Certificates of Obligation, the 1998 Certificates of Obligation, the 1999 Certificates of Obligation and to pay the cost of issuance. The refunding is expected to produce a net cost savings to the City of approximately $500,000 but actually produced a savings of $788,339. All debt related to the refunding shall be incurred in Debt Service Fund which is supported by property taxes except for a small portion of the debt related to the 1996 Certificates of Obligation which is carried in the Water Fund and is supported by revenues of the waterworks and sewer system. Mayor Pro Tern Beaulieu moved to ADOPT ORDINANCE 06-075 AUTHORIZING THE ISSUANCE OF CITY OF BEAUMONT, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006; AUTHORIZING THE REFUNDING OF CERTAIN BONDS AND OBLIGATIONS AND THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT AND THE SUBSCRIPTION FOR AND PURCHASE OF CERTAIN ESCROWED SECURITIES;AND CONTAINING OTHER MATTERS RELATED THERETO. Councilmember Ames seconded the motion. AYES: MAYOR GOODSON,MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 2. Council approve a resolution authorizing the City Manager to execute an agreement with Public Management, Inc., of Cleveland Texas to implement the City's 2006 Texas Community Development Block Development Grant Disaster Recovery Program - Resolution 06-349 Administration recommended Council approve a resolution authorizing the City Manager to execute an agreement with Public Management, Inc., of Cleveland Texas, in the amount of $125,000 to implement the City's 2006 Texas Community Development Block Grant Disaster Recovery Program, which is administered by the Office of Rural Community Affairs. The Council recently approved an agreement with the Texas Office of Rural Community Affairs (OCRA) for an award under the Texas Community Development Block Grant Program in the amount of$1,950,000. The Disaster Recovery Grant Program (TXCDBG) was established by Federal legislation to aid areas most impacted and distressed by Hurricane Rita. This funding is allocated for non-housing projects. Page 3 of 8 Minutes-November 14,2006 The funding provided to the City under this program will be utilized as a portion to the twenty-five percent(25%)match toward a Hazard Mitigation Grant Program (HMGP)award from the Federal Emergency Management Agency (FEMA) on behalf of Drainage District No.6. Under the terms of the agreement, Public Management will be responsible for the administration of the ORCA TXCDBG Disaster Recovery Program. Program administration includes, but is not limited to budget revisions, time schedules, record management and amendments requiring prior ORCA approval, compliance with performance standards for citizen participation, preparation and maintenance of a written Environmental Review, real property acquisition, compliance with Fair Housing and Equal Opportunity requirements, act as City's liaison with ORCA and assist in the financial accounting system. The $125,000 cost of administering the project is in addition to the program award from ORCA. The total cost of the project is estimated at $47,150,000 with the City's share totaling approximately $21,534,820. Funds are available for the project in the Capital Program. The Drainage District No. 6 and City will have to enter into an Interlocal Agreement for the City to access the Hazard Mitigation Grant Program funding. Councilmember Samuel made a motion to APPROVE RESOLUTION 06-349 THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN AGREEMENT WITH PUBLIC MANAGEMENT,INC.,CLEVELAND,TEXAS,IN THE AMOUNT OF$125,000 TO IMPLEMENT THE CITY'S 2006 TEXAS COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM. Councilmember Smith seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED 3. Consider approving a repayment of federal HOME funds from the City's Fund Balance in the General Fund - Resolution 06-350 Administration recommended Council authorize repayment of the City's HOME Treasury Account in the amount of $68,363.19 from the Fund Balance in the General Fund in response to a finding issued by the U.S. Department of Housing and Urban Development (HUD) for a home located at 4030 University Drive. Janett Lewis, Housing Manager, was available to answer any questions presented by Council. The Southeast Texas Community Development Corporation, Inc., (SETCDC) received an allocation of 1994 HOME funds to acquire and rehabilitate homes that would be retained by SETCDC as rental property and made available to low/moderate income households. The home at 4030 University Drive was acquired on June 21, 1995 and rented to a qualified family. The City invested $68,363.19 of HOME funds to acquire and rehabilitate this property, requiring a minimum 15-year long-term affordability period. Page 4 of 8 Minutes-November 14,2006 During the affordability period, the property must be occupied, either through sale or lease, by an eligible low/moderate income family. In May 2001, SETCDC made a written inquiry to the City requesting a determination regarding requirements if the home were sold to the Lamar Institute of Technology. The City promptly notified SETCDC in writing that a repayment would be required, and upon receiving notification, SETCDC abandoned the sale. On April 9, 2002, approximately one year later, SETCDC sold the property to the Lamar Institute of Technology with seven (7) years of the affordability period remaining. Upon review by HUD, a finding was issued against the City for the sale of the home. The City discontinued doing business with SETCDC in 2004. Since the sale of the property was not to a qualified low/moderate income household, HUD is requiring the total amount of the HOME investment be re-paid to the City's HOME Treasury Account. These funds may be used by the City for the next HOME eligible project. Repayment to the HOME Treasury Account will be made from the Fund Balance in the General Fund in the amount of $68,363.19. Councilmember Patterson made a motion to APPROVE RESOLUTION 06-350 THAT THE CITY COUNCIL HEREBY APPROVES THE REPAYMENT TO THE CITY'S HOME TREASURY ACCOUNT IN THE AMOUNT OF $68,363.19, FROM THE FUND BALANCE IN THE GENERAL FUND IN RESPONSE TO A FINDING ISSUED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT(HUD) FOR A HOME LOCATED AT 4030 UNIVERSITY DRIVE. Mayor Pro Tern Beaulieu seconded the motion. AYES: MAYOR GOODSON, MAYOR PRO TEM BEAULIEU, COUNCILMEMBERS SMITH, AMES, SAMUEL AND PATTERSON NAYS: NONE MOTION PASSED Mayor Goodson asked that the Mayor Pro Tern Beaulieu conduct the Worksession and Agenda Item 4, as his law firm represents one of the wholesale customer accounts - Northwest Forest MUD. WORKSESSION Review and discuss the execution of water and/or wastewater service agreements with City of Beaumont wholesale customers Worksession opened at 2:00 p.m. Karin Warren, Quality Control Manager of the Water Utilities Department, conducted the worksession. She gave a handout to Council which explained in detail the federal and state regulations, parties involved and responsibilities defined. The City of Beaumont currently has eight contracts with local businesses. This service agreement is to protect the health of the public. This is the same agreement that will be used with other businesses as the law requires. Any additional state or federal laws will require the individual business to comply. Worksession concluded at 2:10 p.m. Page 5 of 8 Minutes-November 14,2006 4. Consider authorizing the City Manager to execute water and/or wastewater service agreements with City of Beaumont wholesale customers - Resolution 06-351 Administration recommended approval of executing water and/or wastewater service agreements with Arkema, Inc, Equistar Chemicals, LP, Exxon Mobil Polyethylene Plant, Exxon Mobil Refinery, Exxon Mobil BCSP/OA, Lucite, Northwest Forest MUD, Peak Sulfur, Inc., A & A Fertilizer, BASF Corporation, BFI, Texas Department of Criminal Justice, Cardinal Meadows Improvement District, Federal Bureau of Prisons, Gerdau Ameristeel of Beaumont, GE Betz, West Jefferson County MUD, and Meeker MUD. The Texas Commission on Environmental Quality, Chapter290, Sub-Chapter D, Rules and Regulations for Public Water Systems, requires municipalities to execute service agreements with wholesalers as well as non-transient non communities which are not a community water system but regularly serve at least 25 of the same persons at least six months out of the year. Once service agreements are executed with such entities, they will be required by state law to monitor and report the water quality inside of their property on a monthly basis. This procedure will prevent any possible contamination of the City of Beaumont water system and protect public health. The Water Utilities Department provides water and/or sanitary sewer service to 16 industrial customers and 4,800 commercial customers. The industrial and commercial facilities will be evaluated, and agreements will be executed for those who will be identified as wholesalers and non-transient non-communities. Councilmember Smith made a motion to APPROVE RESOLUTION 06-351 THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE WATERAND/OR WASTEWATER SERVICE AGREEMENTS WITH THE FOLLOWING CITY OF BEAUMONT WHOLESALE CUSTOMERS ARKEMA, INC, EQUISTAR CHEMICALS, LP, EXXON MOBIL POLYETHYLENE PLANT, EXXON MOBIL REFINERY, EXXON MOBIL BCSP/OA, LUCITE, NORTHWEST FOREST MUD, PEAK SULFUR, INC., A & A FERTILIZER,BASF CORPORATION, BFI,TEXAS DEPARTMENT OF CRIMINAL JUSTICE,CARDINAL MEADOWS IMPROVEMENT DISTRICT, FEDERAL BUREAU OF PRISONS, GERDAU AMERISTEEL OF BEAUMONT, GE BETZ, WEST JEFFERSON COUNTY MUD, AND MEEKER MUD. Councilmember Samuel seconded the motion. AYES: MAYOR PRO TEM BEAULIEU,COUNCILMEMBERS SMITH, AMES,SAMUEL AND PATTERSON NAYS: NONE ABSTAIN: MAYOR GOODSON MOTION PASSED Following this item, Mayor Goodson resumed to conduct the meeting. COUNCILMEMBER COMMENTS COUNCILMEMBER PATTERSON- COMMUNITY ANNOUNCEMENT Page 6 of 8 Minutes-November 14,2006 COUNCILMEMBER SAMUEL - COMMENDED ALL THOSE WHO ATTENDED THE VETERANS RECOGNITION APPRECIATION SERVICE ON THIS PAST SATURDAY, ALWAYS WANT TO PAY TRIBUTE TO THOSE VETERANS WHILE THEY ARE HERE; CONGRATULATED HABITAT FOR HUMANITY FOR THE GREAT WORK THEY HAVE BEEN DOING IN BUILDING ALMOST A WHOLE NEW NEIGHBORHOOD; ASKED FOR A MEETING ON MONDAY, NOVEMBER 20, 2006, WITH A REPRESENTATIVE FROM THE FIREFIGHTERS UNION AND THE CITY MANAGER AND THE FIRE CHIEF, MEDIA WAS ALSO INVITED BUT UNABLE TO RESPOND; THIS IS A PRIVATE MEETING FOR HIS PERSONAL BENEFIT SO THAT HE CAN MAKE AN INTELLIGENT DECISION COUNCILMEMBER AMES - NONE MAYOR PRO TEM BEAULIEU - NONE COUNCILMEMBER SMITH - NONE MAYOR GOODSON- THANKED COUNCILMEMBER SAMUEL FOR HIS ATTENDANCE AT THE VETERANS PROGRAM; THANKED THE OLD TOWN NEIGHBORHOOD ASSOCIATION FOR BEING INVITED TO THEIR MEETING; ANNOUNCED THE SATURDAY, DECEMBER 2ND EVENTS WHICH ARE COMING UP Public Comments (Persons are limited to three minutes) The following public speakers spoke on firefighter concerns. They took turns reading from handouts presented to Council. See "Exhibit A" attached. John Werner 1 Oakleigh Blvd. Beaumont TX Blaine Morris 5870 Travis Lumberton TX Richard Mathews 2539 South Street#7 Beaumont TX Scott Chamberlain 1095 Magnolia Trace Silsbee TX Patrick Kadilis 5350 Laurel Beaumont TX Galen Key 2836 Old Spurger Hwy Silsbee TX Brian Hobert 1003 Govert Dr Lumberton TX Mike Drury 6835 Marshall Place Beaumont TX Ryan McLeod 2899 Bobby Street Port Arthur TX Joseph Lewis Box 62 Beaumont TX Feels that the staffing of the firefighters should be enforced according to the state and industry guidelines; feels that a compromise should be reached regarding a pay raise Open session of meeting recessed at 2:45 p.m. Page 7 of 8 Minutes-November 14,2006 EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Curtis Breaux, et al v. the City of Beaumont, Texas, et al; No. D175,609 In the Matter of Arbitration between the City of Beaumont and Beaumont Police Officers Association, Lance Tiner and Teddy Ratcliff, No. 70 390 0035406 Consider matter related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Clerk There being no action taken in Executive Session, Council adjourned. Audio tap re.7e upon request in the City Clerk's Office. Guy N. Goodson, Mayor ow e fi, a Rose Ann Jones, TRM (D City Clerk ' '� Page 8 of 8 Minutes-November 14,2006 Safety standards area constantly improving as fire protection agencies come to better understand the risks to firefighters and citizens posed by structure fires. During the time period 1998-2002, federal, National, and Texas state safety regulations have been updated to call for four firefighters to be on scene when an interior attack or search is started. This is commonly known as the "2-in/2-out Rule." Simply put, the rule specifies that when two firefighters go in to attack a fire on the inside of a building, at least two or more must be outside, providing support and also being prepared to go in to perform a rescue of their comrades and a person in the home in case something goes wrong. However, Beaumont continues to use three-man staffing on Engine Crews, which places its firefighters and citizens at risk of injury, death, and loss of homes. On January 8, 1998, the Occupational Safety and Health Administration (OSHA) published regulations which mandated certain changes in the way fire departments operate, the most significant being the "2-in/2-out Rule." This rule requires that any time firefighters are operating in an atmosphere that is considered to be Immediately Dangerous to Life and Health (IDLH), at least two firefighters must remain outside the structure, in a state of readiness while performing their regular duties, to rescue firefighters or civilians inside. On September 1, 2001, Senate Bill 382 became a law across the state. The Texas law adopted the same language found in OSHA's rule. The Texas Commission on Fire Protection, who is the state regulatory agency responsible for fire protection standards, subsequently adopted its version of OSHA's rule on March 24, 2002. The "2-in/2-out Rule" focuses on the specific tasks associated with interior structural firefighting. The specific focus on IDLH atmospheres and interior structural firefighting is PERSONNEL ACCOUNTABILITY, a critical firefighter safety issue. h. A .� I( (406 ��h� fit, r However, a consequence of the standard — one that places firefighters in a terrible .1 predicament-is a public policy issue that must be addressed by ALL local jurisdictions. For an informed public policy decision to be made, you (the Council) must understand how the 2-in/2-out standard creates this predicament. It is then imperative that you, as elected officials, speak to your constituencies to determine the level of fire protection that THEY feel is right for Beaumont. You, and they, must understand how this standard directly affects the fire department's capability to provide the level of services that our citizens have come to expect, but that we practically are not able to provide without violating safety standards. The scenario goes something like this— A three-person engine company arrives first on scene to a reported structure fire. The Fire Captain is charged with analyzing all of the visual and oral communications transmitted within that three-to four-minute journey to the scene. Upon arrival, the Fire Captain makes a split-second determination as to whether or not there are any persons who could be rescued inside the structure. Here is where the predicament arises, and the question that plagues every Fire Captain faced with this situation is — If there are no OBVIOUS indicators that someone is in the building, what should I do? The 2-in/2-out Rule is very clear on this point—the three firefighters on the Engine MUST WAIT until enough persons arrive on/,scene to make entry. According to the law, they MUST wait for proper backup. But what if there really IS someone inside, but it is x not OBVIOUS. Let's examine this predicament. How in the world do firefighters KNOW that somebody is not inside a building when they arrive on scene? Sometimes the information is given at the time of dispatch, sometimes people run up screaming when the engine pulls up to the address. Other times, there may well be someone inside —but there is really now way to be sure — short of thoroughly searching the structure. Children or the elderly or disabled may be physically unable or simply too terrified to evacuate. Those are the times where the 2-in/2-out rule can adversely impact the affected citizens, the individual officers responding, the fire department, and the city itself. Firefighters know that fire doubles in size every 30 seconds. That means what started as a grease fire on your stove can burn out of control under than 3 minutes. In fact, it only takes 5-10 minutes for a two-story home to become totally engulfed in flames. If there is someone in there, SECONDS literally can make the difference in saving their life. And if there is nobody in there, a minute can mean the difference between a remodeling job and the complete destruction of a person's home and their memories. So, from the Fire Captain's standpoint, he is in a no-win situation. If the law is followed, and s or • h er n to arrive, it could very well mean sacrificing a savable Ii But if the law is brok — to make sure that no one is inside — and the interior crew is injured, or dies in a flashover or structural collapse — THE FIRE CAPTIAN IS RESPONSIBLE. The citizens standing outside do not understand why the firefighters are not going into the building, and they certainly won't understand why later we're carrying their neighbor out in a body bag. All they will see is that we were outside 3 when we could've been saving their friend and putting o on a inside. This predicament would be resolved, however, if Beaumo roperly staffed i Engines with four firefighters so that a proper 2-in/2-out attack could be performed and rescued. The 2-in/2-out rule is a safety rule, but it is also related to staffing. How has the department handled these situations since 2-in/2-out has become the standard? For the protection of our citizens, and their homes, we routinely break the rule. The problem with breaking the rule is that someday, someone's luck will run out. If something does not change, a firefighter will die in Beaumont while breaking that rule. Placing this burden on a Fire Captain is horribly unfair. Council members and Mr. Manager, what level of capability do YOU expect of your fire department? What if it were your family at risk, or your home on fire? What would you have us do then? What do your constituents think? What level of protection do THEY expect? The sad reality is that under Current City Policy of staffing Engines with 3 people, with fewer than four persons on the first-in apparatus, complying with the 2-in/2-out standard means that interior attack operations run the risk of being delayed until proper back-up personnel arrive on scene. This means that there is an increased probability of greater civilian loss of life, and that there will routinely be larger fire losses because of the delays involved. As public policy makers, YOU set the priorities. This is most definitely an issue that should be resolved through an informed public policy debate. The citizens of Beaumont are ultimately the people who must make this determination. We ALL need you— EACH of you— to step up to the plate and do the right thing. So what is "right" in this case? No one can make a good decision if they aren't i rmed of cts. Your charge as a council member is to help inform the public of the unbiased truth, I en to their concerns, and then act according to their wishes. That is what open govern nt and public service is supposed to be about. We have been coming to the meetings in the last couple of months and raising these issues, but not a word is heard from City Council. Instead, you all keep on with your Capital projects business, appraising tens of millions of dollars for unnecessary projects like brick sidewalks and Downtown Lakes. It is time for City Council to show that it cares about this important issue instead of just viewing it as another three minutes at City Hall. S PAY INCREASES AT CITY HALL 02/03 03/04 04/05 05/06 06/07 CITY MANAGER -- -- 12% 7% 3.5% (Kyle Hayes) PROJECT COORD. -- -- -- 19% 8% (Lenny Caballero) COMPTROLLER -- -- -- 8% 7% (Todd Simoneaux) BUDGET OFFICER -- -- -- 3.5% 16% (Laura Clark) DEVELOPMENT MGR.-- -- -- -- 18% (Christopher Boone) INFLATION 2.5% 3.0% 3.8% 4.0% ? "CIVILIANS" 0% 20%, 3% 3.5% 3% • Streets and Drai • Clean Community I n • Water and Sewer • Water Utilities • Public Works/Health • Parks and Recreation BAD BUDGETING OR INTENTIONAL MIS-BUDGETING??? 2005/2006 Actual Sales Tax Revenues (Per Month) $2,950,000 2006/2007 Budgeted Sales Tax Revenues (Per Month) $2,600,000 (down 13.5%) Actual Sales Tax Revenues (October 2006) $3,345,000 ($745,000 over budget) NET EFFECT: 1) GENERAL FUND BUDGET (Provides Money for Wages) ARTIFICIALLY DECREASED 2) END-OF-YEAR SURPLUS USED FOR CAPITAL PROJECTS (Bricks, Lakes, Re-Paving) 2004/2005 Year-End-General Fund Surplus: $10,000,000 2005/2006 Year-End General Fund Surplus: $11,500,000 Two-Year Net General Fund Surplus: $2155005000 WHERE DID IT GO? 2006 Project Spending Increase $18005000 U ► �(+(D� �1 2006 10:53 4098803740 BEAUMONT CITY CLERK PAGE 03 CITY OF BEAUMONT GENERALFUND BALANCE SHEET September 30,2006 Unaudited AVAILABLE RESOURCES ' CLAIMS ON AVAILABLE RESOURCES Assets Cash Liabilities $ 15,594,567 Accounts Payable $ 728,879 Oelinquent Taxes Receivable(Net) 2,290,943 Accounts Receivable-Other Accrued Wages Payable 1,371,678 Inventories 8,319,275 Clearing Accounts 813,899 Prepaid Expense 19,275 Deferred Property Taxes 2,200,549 617,791 Deferred Revenue 2,438,824 Deposits 26,039 Fund Balance 7,579,868 Reserved for Inventories 19,275 Reserved for Prepaids 617,791 Reserved for Contingencies 1,500,000 Unreserved 17,165,926 19,302,992 TOTAL AVAILABLE RESOURCES $ 26,882,860 TOTAL CLAIMS ON RESOURCES S 26,882,880 .Y 2 CITY OF BEAUMONT 2007 REAL PROPERTY ASSESSED VALUE $490009000,000 Estimated Average Cost of Homeowners' Insurance 1% of assessed value per year Estimated Homeowners Insurance Premiums: $4090009000 Savings from ISO improvement and 11-12% decrease in premium: $494009000-$49800,000 per year for Citizens and Businesses Implementing enough of my suggestions to improve the ciasslfication to an ISO PPC of 2 would save the commercial property owners within 5 .road-miles of a City o Beaumont fire station and 1000 feet of -a fire hyd rant a possib1e 1 per cent of lowering the PPC from a 4 to a 2) on their commercial property insurance premiums. The residential property owners within 5 .road-males of a City of Beaumont fire station and 1000 feet of a fire hydrant would save .a possible 12 per cent (effect of lowering the PPC from a 4 to a 2) on their homeowner's premium-. It is obvious that attaining an ISO ,classification of 3 is critical to the• commercial property owners and a classification of 2 Is critical to the .homeowners. Report to the City of Beaumont 5/9 2105. Mike Pietsch, P.E. Consulting Services, Inc.. Page 6 0 ISO Grading Sumary 2005 Total Estimated Points: 74.03 (3rd Class) Category Actual Possible Shortfall Percentage Fire Department Company Personnel 7.05 15.00 7.95 47% Water Supply Water System 29.88 35.00 5.12 85% Improving Engine staffing from 3 people to 4 would add 5.55 ISO points At 79.58, minor improvements in the water system lead to 2nd Class Rating Estimated Insurance Savings: 11-12% for Businesses and Residents Credit Points Relative Classification 90-100 1st 80-89 2nd 79.58 Points -- Staffing Four Per Engine 70-79 3rd Pietsch Estimate: 74.03 (2005 Estimate) 60-69 4th Current Rating: 66.38 (from 1990 Study) 4, 0 Handout Presented at Council Meeting CITY OF BEAUMONT, TEXAS $23,97500 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006 BOND SALE RESULTS NOVEMBER 14, 2006 CITY OF BEAUMONT, TEXAS Bond Buyer Index of 20 Municipal Bonds January 1990 to Present 8.00 Fixed Rates of Interest 7.50 Bond Buyer Index of 20 Muni. Bonds High 7.56% /Low 4.18% /Average 5.55% 7.00 Certificates of Obligation, Series 2005 6.50 General Obligation Refunding Bonds,Series 2004 6.00 ils 5.50 5.00 �. r G n Certificates of Obligation, 4.50 Series 2001 Certificates of Obligation, 190 6 Series 2003 4• 4.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 RBC Capital .Markets CITY OF BEAUMONT, TEXAS S01'RCEs AND USES $23,975,000 City of Beaumont, Texas General Obligation Refunding Bonds, Series 2006 Summary of Refunding Bond Sale Principal Amount of Refunding Bonds: $23,975,000 Plus: Net Bond Premium 248,774 Less: Expense 350,748 Bond Proceeds: $23,873,026 Total Refunded Bonds: $23,235,000 Average Interest Rate of Refunded Bonds: 4.952% True Interest Rate of the Refunding Bonds: 4.067% Average Maturity: 7.355 Years Total Savings: $788,339 Sale Date: November 13,2006 Dated Date: December 1,2006 Closing/Delivery Date: December 14,2006 First Interest Payment Date: March 1,2007 First Principal Payment Date: March 1,2008 *Net of expenses. RBC 2 `.r•'`' Capital .Markets CITY OF BEAUMONT, TEXAS REFL)'NDINc RESLIA-S A Fiscal Plus: Plus: Year Outstanding Less: General Obligation Refunding Post The Certificates(a) Total Ending Ad Valorem Refunded Bonds, Series 2006 Refunding $30,000,000 Ad Valorem 30-Sep Tax Debt Obligations Principal Interest Savings Principal Interest Tax Debt(b) 2007 $13,118,524 $1,124,933 $719,250 $440,313 $1,046,250 $13,027,527 2008 9,028,880 1,124,933 $60,000 957,800 107,133 $2,775,000 1,330,481 12,321,914 2009 9,029,421 2,474,918 1,440,000 927,800 107,118 2,065,000 1,217,951 11,549,315 2010 9,029,489 2,478,010 1,505,000 868,900 104,110 1,570,000 1,133,438 10,904,002 2011 8,305,599 3,031,005 2,235,000 794,100 1,905 1,515,000 1,061,711 10,140,523 2012 8,301,358 3,091,498 2,385,000 701,700 4,798 1,610,000 989,055 10,133,836 2013 8,303,986 3,123,183 2,515,000 603,700 4,483 1,690,000 912,330 10,135,934 2014 8,304,781 3,327,038 2,830,000 496,800 238 1,745,000 832,466 10,143,290 2015 8,299,943 2,462,313 2,060,000 399,000 3,313 1,070,000 767,018 10,133,648 2016 8,299,108 2,464,938 2,150,000 314,800 138 1,125,000 715,984 10,139,954 2017 8,295,511 2,462,813 2,235,000 227,100 713 1,180,000 662,393 10,137,191 2018 8,294,151 4,655,281 4,560,000 91,200 4,081 1,240,000 606,128 10,136,197 2019 2,298,938 1,435,000 543,934 4,277,872 2020 2,244,313 1,550,000 474,533 4,268,846 2021 2,204,644 1,665,000 399,784 4,269,428 2022 2,169,850 1,780,000 319,688 4,269,538 2023 2,147,825 1,890,000 234,360 4,272,185 2024 2,124,513 2,000,000 143,918 4,268,431 2025 2,126,425 2,095,000 48,709 4,270,134 $121,927,259 $31,820,863 $23,975,000 $7,102,150 $778,339 $30,000,000 $13,440,128 $158,799,760 (a) The City's$30,000,000 Certificates of Obligation, Series 2006 are expected to sell on December 5,2006 and be delivered on December 28,2006. Interest estimated at 5.00%for illustration purposes. (b) Includes effects of Debt supported by revenues other than ad valorem tax revenues after the sale of the General Obligation Refunding Bonds. RBC 3 Capital .Markets �Wfii CITY OF BEAUMONT, TEXAS YIELD COMPARISON'S Pricing Date: 11/13/2006 11/10/2006 11/7/2006 Amount: $23,975,000 $73,155,000 $23,734,890 Issuer: City of Beaumont City of San Antonio Carroll ISD Rating: AAA/AAA Aa2/AA+/AA+ Aaa/AAA Credit Support: FSA PSF Underlying Rating: AI/A+ A2/A+ Maturity Coupon Yield Maturity Coupon Yield Maturity Coupon Yield 2008 60,000 4.000 3.540 2,515,000 4.000 3.580 60,000 4.000 3.590 2009 1,440,000 4.000 3.550 2,615,000 4.000 3.600 250,000 4.000 3.600 2010 1,505,000 4.000 3.590 2,720,000 4.000 3.620 770,000 4.000 3.610 2011 2,235,000 4.000 3.620 2,835,000 4.000 3.640 1,930,000 4.000 3.630 2012 2,385,000 4.000 3.640 2,950,000 4.000 3.690 2,330,000 4.000 3.650 2013 2,515,000 4.000 3.700 3,070,000 4.000 3.750 2,245,000 4.000 3.700 2014 2,830,000 4.000 3.730 3,200,000 4.250 3.780 115,000 4.000 3.750 2015 2,060,000 4.000 3.770 3,340,000 4.250 3.820 2016 2,150,000 4.000 3.800 3,485,000 4.250 3.870 2017 2,235,000 4.000* 3.950 3,630,000 4.000* 4.010 2018 4,560,000 4.000* 4.050 1 3,780,000 4.000* 4.110 1 1,165,000 4.000* 4.070 * Callable maturities. RBC 4 "^ Capital Markets