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PACKET JUN 16 2009
RICH WITH OPPORTUNITY r T • E • X • A • S REGULAR MEETING OF THE CITY COUNCIL BEAUMONT CIVIC CENTER JUNE 16, 2009 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Amend Resolution No. 09-152 to comply with Texas Department of Transportation regulations regarding the submission of an application and acceptance of a grant for funding improvements at the Beaumont Municipal Airport B) Authorize the City Manager to execute letters of understanding with various businesses who would provide resources during a declared disaster C) Authorize the City Manager to execute all documents necessary, specifically including a contract, in order for the Southeast Texas Auto Theft Task Force to purchase a billboard vinyl to raise public awareness on auto theft and auto burglaries D) Authorize the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Holiday Inn Midtown E) Authorize the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Crown Motel F) Approve Change Order No. 1 for renovations to Magnolia Pool G) Authorize eminent domain proceedings to acquire property for public use for the purpose of locating, constructing and maintaining a Downtown Park and Event Center H) Approve a resolution to allow the temporary addition and release of collateral held at the Federal Reserve Bank I} Approve an annual contract for grounds maintenance for the Martin Luther King, Jr. Parkway J) Approve a payment to Jefferson County for the renewal of an annual maintenance agreement with Motorola K) Approve changes to and certification of the Small Business Revolving Loan Fund Plan A RICH WITH OPPORTUNITY 11cm . � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works APO MEETING DATE: June 16, 2009 REQUESTED ACTION: City Council approval of an amendment of Resolution No. 09-152 to comply with Texas Department of Transportation regulations regarding the submission of an application and acceptance of a grant for funding improvements at the Beaumont Municipal Airport. RECOMMENDATION Administration recommends approval of an amendment of Resolution No. 09-152 authorizing the City Manager to submit an application and to accept a grant from the Texas Department of Transportation (TxDOT) for the purchase of an Automated Weather Observation System (AWOS) to be installed at the Beaumont Municipal Airport. BACKGROUND On June 2, by Resolution No. 09-152, City Council authorized the City Manager to apply for and accept a grant from TxDOT for the purchase of an AWOS to be installed at the Beaumont Municipal Airport. In order to meet the application regulations as set forth by TxDOT, the City's Resolution issued by the City should have been in the TxDOT recommended format. Staff failed to provide the recommended format to the City Attorney's office for preparation of the original Resolution. An amendment to Resolution No. 09-152 in the TxDOT recommended format is attached for City Council's review and approval. BUDGETARY IMPACT The estimated cost of the system is $100,000 with the City's match being 25%, or $25,000. The City will be responsible for monthly service fees and quarterly inspections. Funds for the City's share of this project will be available in the Municipal Airport Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT Resolution No. 09-152 approved by City Council on June 2, 2009, be amended to comply with Texas Department of Public Safety regulations regarding the submission of an application as follows: WHEREAS,the City of Beaumont desires to install an automated weather observing system at the Beaumont Municipal Airport; and WHEREAS, the total project cost is estimated to be $100,000; and WHEREAS,the City of Beaumont hereby offers 25% of project costs to match 75% state funds, currently estimated to be $25,000 in local funds; and WHEREAS, local funds will be available to meet project expenditures; and WHEREAS, the City of Beaumont agrees to operate and maintain the installed automated weather observation system for the useful life of the asset; and WHEREAS, the City of Beaumont intends to request financial assistance from the Texas Department of Transportation for installation of the automated weather observing system for these improvements; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City of Beaumont hereby directs the City Manager to execute on behalf of the City of Beaumont, at the appropriate time and with the appropriate authorizations of this governing body, all contracts and agreements with the Texas Department of Transportation, and such other parties as shall be necessary and appropriate for the implementation of the improvements to the Beaumont Municipal Airport. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - B RICH WITH OPPORTUNITY BEA,UI�10N* T • E • X - A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the City Manager to execute letters of understanding with various businesses who would provide resources during a declared disaster. RECOMMENDATION The Administration recommends authorizing the City Manager to execute letters of understanding with Triangle Waste Solutions, Clifford Power Systems, Light House Energy, Mersino Southwest and Kohler Rental Power. BACKGROUND The City of Beaumont's Emergency Preparedness Plan for the hurricane season identified resources that would be needed in the event of a declared disaster. Informal bids were solicited for portable toilets and generators. The detail of each letter is as follows: Triangle Waste Solutions will furnish and deliver approximately fifty(50) portable toilets to the City of Beaumont seventy-two (72) hours prior to the expected landfall of a hurricane. The City will pay $50.00 per week for each unit requested. The City is in the process of awarding a contract to furnish emergency standby products and services in the event of a declared disaster. The products include generators needed in the aftermath of a disaster. Informal bids were solicited from other companies for emergency generators to be rented in the event that the selected vendor is not able to provide all generators required. Bids were received from Clifford Power Systems of Austin, Light House Energy of Manuel, Mersino Southwest of Channelview, and Kohler Rental Power of Houston, all of Texas, for rental rates, price not to exceed, of various sizes of generators. Bid tabulations are attached. Letters of understanding are being entered into with each company to give the city ample options for obtaining generators if needed. The city will pay rental rates as stated in the bid tabulations. The City is not bound to rent generators from each company if other sources are available. Letters of Understanding June 16, 2009 Page 2 BUDGETARYIMPACT The budgetary impact of enacting these letters of understanding is contingent upon the occurrence of a declared disaster and the degree of resources needed at that time. BID TABULATION: RENTAL OF PORTABLE TOILETS FOR EMERGENCY SERVICES BID NUMBER: Pi0509-27 BID OPENING DATE: FRIDAY, MAY 29, 2009 @ 10:00 AM Vendor Triangle Waste Solutions Waste Management United Site Services of Texas City, State Port Arthur, TX Beaumont, TX Houston, TX Weekly Rental Weekly Rental Weekly Weekly Rental Weekly Rental Price for 50 Weekly Rental Price for 50 Rental Price Price for 50 QTY Description Price per Unit Units Price per Unit Units per Unit Units 50 Non-Flushing Portable Toilet Units $50.00 $2,500.00 $154.00 $7,700.00 $245.00 $12,250.00 Serviced seven (7) times a week 30 Non-Flushing Portable Toilet Units $50.00 $1,500.00 $110.00 $3,300.00 $175.00 $5,250.00 Serviced five (5) times a week 30 Non-Flushing Portable Toilet Units $50.00 $1,500.00 $66.00 $1,980.00 $105.00 $3,150.00 Serviced three (3) times a week BID TABULATION: RENTAL OF GENERATORS FOR EMERGENCY SERVICES BID OPENING DATE: WEDNESDAY, JUNE 3, 2009 BID NUMBER: Pi0509-28 Vendor Clifford Power Systems Light House Energy City, State Austin, TX Manuel, TX Fax Number 513-477-6938 281-431-6268 Description Weekly Charge Delivery Charge Pick Up Charge Weekly Charge Delivery Charge Pick Up Charge 1.5 meg no bid no bid no bid $ 15,000.00 $ 600.00 $ 600.00 1250 kw $ 10,200.00 $ 2,160.00 $ 2,160.00 $ 12,000.00 $ 600.00 $ 600.00 1000 kw $ 10 200.00 $ 2,160.00 $ 2,160.00 $ 11,900.00 $ 600.00 $ 600.00 750 kw $ 10,200.00 $ 2,160.00- $ 2,160.00 $ 6,500.00 $ 600.00 $ 600.00 500 kw $ 5,040.00 $ 2,160.00 $ 2,160.00 $ 5,500.00 $ 600.00 $ 600.00 300 kw $ 3,240.00 $ 760.00 $ 760.00 $ 4,000.00 $ 400.00 $ 400.00 265 kw $ 3,240.00 $ 760.00 $ 760.00 $ 3,500.00 $ 400.00 $ 400.00 235 kw $ 2,700.00 $ 760.00 $ 760.00 $ 3,000.00 $ 400.00 $ 400.00 200 kw $ 2,550.00 $ 760.00 $ 760.00 $ 3,000.00 $ 400.00 $ 400.00 150 kw $ 2,100.00 $ 685.00 $ 685.00 $ 2,500.00 $ 300.00 $ 300.00 125 kw $ 1,800.00 $ 685.00 $ 685.00 $ 2,000.00 $ 300.00 $ 300.00 100 kw $ 1,710.00 $ 685.00 $ 685.00 $ 1,500.00 $ 300.00 $ 300.00 75 kw $ 1,530.00 $ 685.00 $ 685.00 $ 1,500.00 $ 300.00 $ 300.00 70 kw $ 1,530.00 $ 685.00 $ 685.00 $ 1,500.00 $ 300.00 $ 300.00 60 kw $ 1,350.00 $ 685.00 $ 685.00 $ 1,000.00 $ 300.00 $ 300.00 45 kw $ 1,350.00 $ 685.00 $ 685.00 $ 1,000.00 $ 300.00 $ 300.00 35 kw $ 1,020.00 $ 685.00 $ 685.00 $ 900.00 $ 250.00 $ 250.00 25 kw $ 1,020.00 $ 685.00 $ 685.00 $ 900.00 $ 250.00 $ 250.00 Total $ 60,780.00 $ 17,8400 $ 17,845.00 $ 77,200.00 $ 7,200.00 , $ 7,200.00 Page 2 Vendor Mersino Southwest Kohler Rental Power City, State Channelview, TX Houston, TX Fax Number 281-860-0828 920-459-1841 Description Weekly Charge Delivery Charge Pick Up Charge Weekly Charge Delivery Charge Pick Up Charge 1.5 meg no bid no bid no bid $ 6,540.00 $ 540.00 $ 540.00 1250 kw no bid no bid no bid $ 5,835.00 $ 540.00 $ 540.00 1000 kw no bid no bid no bid $ 5,420.00 $ 540.00 $ 540.00 750 kw no bid no bid no bid $ 4,515.00 $ 540.00 $ 540.00 500 kw no bid no bid no bid $ 3,295.00 $ 540.00 $ 540.00 - 300 kw $ 1,695.00 $ 200.00 $ 200.00 $ 1,835.00 $ 270.00 $ 270.00 265 kw $ 1,464.00 $ 200.00 $ 200.00 no bid no bid no bid 235 kw $ 1,464.00 $ 200.00 $ 200.00 no bid no bid no bid 200 kw $ 945.00 $ 200.00 $ 200.00 $ 1,175.00 $ 270.00 $ 270.00 150 kw $ 945.00 $ 200.00 $ 200.00 $ 1,065.00 $ 270.00 $ 270.00 125 kw $ 795.00 $ 200.00 $ 200.00 no bid no bid no bid 100 kw $ 735.00 $ 200.00 $ 200.00 $ 810.00 $ 270.00 $ 270.00 75 kw $ 693.00 $ 200.00 $ 200.00 no bid no bid no bid 70 kw $ 693.00 $ 200.00 $ 200.00 no bid no bid no bid 60 kw $ 550.00 $ 200.00 $ 200.00 $ 620.00 $ 270.00 $ 270.00 45 kw no bid no bid no bid $ 565.00 $ 270.00 $ 270.00 35 kw no bid no bid no bid no bid no bid no bid 25 kw no bid no bid no bid $ 440.00 $ 270.00 $ 270.00 Total $ 9,979.00 $ 2,000.00 $ 2,000.00 $ 32,115.00 $ 4,590.00 $ 4,590.00 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute letters of understanding with Triangle Waste Solutions, Clifford Power Systems, Light House Energy, Mersino Southwest and Kohler Rental Power to provide resources to the City of Beaumont during a declared disaster. The letters of understanding are substantially in the forms attached hereto as Exhibits "A" through "E" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - RICH WITH OPPORTUNITY t T • E • X - A - S City of Beaumont June 13, 2007 ATTN: Leah Guillotte-Stark, Sales Manager Triangle Waste Solutions 1000 S.Business Park Dr. Port Arthur,TX 77640 Re: Letter of Understanding for Providing Portable Toilets to City Facilities in Event of a Declared Disaster Bid No.Pi0509-27 Dear Vendor: This Letter of Understanding executed this 16th day of June ,2009,between the City of Beaumont("City")and Triangle Waste Solutions("Contractor"). This Letter of Understanding sets forth the understanding of the parties pertaining to the services to be provided to the City by Contractor. In consideration of Bid Pi0509-27 submitted by Contractor for furnishing and delivering approximately fifty(50)portable toilet units to the City of Beaumont seventy-two(72)hours prior to expected landfall of a hurricane,the City will pay$50.00 per week for each unit requested. The City retains the right to adjust quantities by increasing or decreasing,as needed. It is understood and agreed that the Contractor is an independent contractor and Contractor agrees to save and hold harmless, indemnify and defend the City,its officers,agents and employees from and against any liability claim,cause of action, damages, personal injury or death arising out of or in connection with the services performed or to be performed by the Contractor pursuant to this agreement. This contract shall be in effect for a period of one(1)year beginning on the date of award. Prices stated in the bid submitted are to be firm for the period of the contract. At the end of the initial term,the City may renew this contract for one(1)additional year at the prices quoted. There shall be no increase in price should an extension be granted. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew the contract shall be made by the City Manager or his designee. Either party to the contract may decline to extend by stating that in writing to the other party no later than sixty (60) days prior to the beginning of the next hurricane season or June 1. This contract may be terminated for convenience at any time unless extended by the City. CITY OF BEAUMONT,TEXAS TRIANGLE WASTE SOLUTIONS By: By. Title: Title: Date: Date: Purchasing Division/Finance Department • (409)880-3720 • Fax(409)880-3747 P.O.Bo 704-3827 EXHIBIT "A" RICHWITH OPPORTUNITY C T - E • X - A S City of Beaumont June 16,2009 ATTN: Chuck Tise,Rental Sales Representative Clifford Power Systems 4918 Burleson Rd. Austin,TX 78744 Re: Letter of Understanding for Providing Generators to City Facilities in Event of a Declared Disaster Bid No.Pi0509-28 Dear Vendor: This Letter of Understanding executed this 16th day of June ,2009,between the City of Beaumont("City")and Clifford Power Systems("Contractor"). This Letter of Understanding sets forth the understanding of the parties pertaining to the services to be provided to the City by Contractor. In consideration of Bid Pi0509-28 submitted by Contractor for furnishing generators as needed to City facilities in the event of a declared disaster, the City will pay rental rates as stated. The City retains the right to rent generators if needed and to adjust quantities by increasing or decreasing,as needed. The City is not bound to rent generators from Cummins in a declared emergency should other sources be available. It is understood and agreed that the Contractor is an independent contractor and Contractor agrees to save and hold harmless, indemnify and defend the City,its officers,agents and employees from and against any liability claim,cause of action,damages, personal injury or death arising out of or in connection with the services performed or to be performed by the Contractor pursuant to this agreement. This understanding shall be in effect from June 1 through November 30 for the 2009 Hurricane Season. At the end of this contract period,the City may renew this contract for each subsequent hurricane season not to exceed three(3)years. Should an extension be granted,the City shall increase the price by the percentage increase in the Consumer Price Index for all Urban Consumers(CPI- U). The increase will be based on the Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Areas for the previous year from March Pt to February 28`h. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew the contract shall be made by the City Manager or his designee. Either party to the contract may decline to extend by stating that in writing to the other party no later than sixty(60) days prior to the beginning of the next hurricane season or June 1. CITY OF BEAUMONT,TEXAS CLIFFORD POWER SYSTEMS By: By Title: Title: Date: Date: Purchasing Division/Finance Department • (409)880-3720 • Fax(409)880-3747 P.O.Box 3827 • ant.Tex4s 77704-3827 RICH WITH OPPORTUNITY 11EA,1111ON- T E • X - A * S City of Beaumont June 16,2009 ATTN: Michael Robinson,President/CEO Lighthouse Energy Service P. O.Box 0938 Roshoren, TX 77578 Re: Letter of Understanding for Providing Generators to City Facilities in Event of a Declared Disaster Bid No. Pi0509-28 Dear Vendor: This Letter of Understanding executed this 16th day of June ,2009,between the City of Beaumont("City")and Clifford Power Systems("Contractor"). This Letter of Understanding sets forth the understanding of the parties pertaining to the services to be provided to the City by Contractor. In consideration of Bid Pi0509-28 submitted by Contractor for furnishing generators as needed to City facilities in the event of a declared disaster, the City will pay rental rates as stated. The City retains the right to rent generators if needed and to adjust quantities by increasing or decreasing,as needed. The City is not bound to rent generators from Cummins in a declared emergency should other sources be available. It is understood and agreed that the Contractor is an independent contractor and Contractor agrees to save and hold harmless, indemnify and defend the City, its officers, agents and employees from and against any liability claim,cause of action, damages, personal injury or death arising out of or in connection with the services performed or to be performed by the Contractor pursuant to this agreement. This understanding shall be in effect from June 1 through November 30 for the 2009 Hurricane Season. At the end of this contract period,the City may renew this contract for each subsequent hurricane season not to exceed three(3)years. Should an extension be granted,the City shall increase the price by the percentage increase in the Consumer Price Index for all Urban Consumers(CPI- U). The increase will be based on the Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Areas for the previous year from March I"to February 28`h. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew the contract shall be made by the City Manager or his designee. Either party to the contract may decline to extend by stating that in writing to the other party no later than sixty(60)days prior to the beginning of the next hurricane season or June 1. CITY OF BEAUMONT,TEXAS LIGHTHOUSE ENERGY SERVICE By: By: Title: Title: Date: Date: Purchasing Division/Finance Department • (409)880-3720 • Fax(409) 880-3747 P.O.Box 3827 • Beaumont,Texas 77704-3827 EXHIBIT "C" RICH'WITH OPPORTUNITY 11 IL A,1111 C11 T - E - X - A • S City of Beaumont June 16,2009 ATTN: Mark Wright,Project Manager Mersino Southwest 16821 Market St. Channelview,TX 77530 Re: Letter of Understanding for Providing Generators to City Facilities in Event of a Declared Disaster Bid No. Pi0509-28 Dear Vendor: This Letter of Understanding executed this 16th day of June ,2009,between the City of Beaumont("City")and Clifford Power Systems("Contractor"). This Letter of Understanding sets forth the understanding of the parties pertaining to the services to be provided to the City by Contractor. In consideration of Bid Pi0509-28 submitted by Contractor for furnishing generators as needed to City facilities in the event of a declared disaster, the City will pay rental rates as stated. The City retains the right to rent generators if needed and to adjust quantities by increasing or decreasing,as needed. The City is not bound to rent generators from Cummins in a declared emergency should other sources be available. It is understood and agreed that the Contractor is an independent contractor and Contractor agrees to save and hold harmless, indemnify and defend the City,its officers,agents and employees from and against any liability claim,cause of action,damages, personal injury or death arising out of or in connection with the services performed or to be performed by the Contractor pursuant to this agreement. This understanding shall be in effect from June 1 through November 30 for the 2009 Hurricane Season. At the end of this contract period,the City may renew this contract for each subsequent hurricane season not to exceed three(3)years. Should an extension be granted,the City shall increase the price by the percentage increase in the Consumer Price Index for all Urban Consumers(CPI- U). The increase will be based on the Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Areas for the previous year from March V to February 28'. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew the contract shall be made by the City Manager or his designee. Either party to the contract may decline to extend by stating that in writing to the other party no later than sixty(60) days prior to the beginning of the next hurricane season or June 1. CITY OF BEAUMONT,TEXAS MERSINO SOUTHWEST By: By: Title: Title: Date: Date: Purchasing Division{Finance Department • (409) 880-3720 • Fax(409) 880-3747 P.O.Box 3827 • Beaumont,Texas 77704-3827 EXHIBIT "D" RICH WITH OPPORTUNITY T - E - X • A S City of Beaumont June 16,2009 ATTN: Michael Nourse, Strategic Accounts Manager Kohler Rental Power 6113 Brittmoore Rd. Houston,TX 77041 Re: Letter of Understanding for Providing Generators to City Facilities in Event of a Declared Disaster Bid No.Pi0509-28 Dear Vendor: This Letter of Understanding executed this 16th day of June ,2009,between the City of Beaumont("City")and Clifford Power Systems("Contractor"). This Letter of Understanding sets forth the understanding of the parties pertaining to the services to be provided to the City by Contractor. In consideration of Bid Pi0509-28 submitted by Contractor for furnishing generators as needed to City facilities in the event of a declared disaster, the City will pay rental rates as stated. The City retains the right to rent generators if needed and to adjust quantities by increasing or decreasing,as needed. The City is not bound to rent generators from Cummins in a declared emergency should other sources be available. It is understood and agreed that the Contractor is an independent contractor and Contractor agrees to save and hold harmless, indemnify and defend the City, its officers,agents and employees from and against any liability claim,cause of action, damages, personal injury or death arising out of or in connection with the services performed or to be performed by the Contractor pursuant to this agreement. This understanding shall be in effect from June 1 through November 30 for the 2009 Hurricane Season. At the end of this contract period,the City may renew this contract for each subsequent hurricane season not to exceed three(3)years. Should an extension be granted,the City shall increase the price by the percentage increase in the Consumer Price Index for all Urban Consumers(CPI- U). The increase will be based on the Houston-Galveston-Brazoria Consolidated Metropolitan Statistical Areas for the previous year from March I" to February 28`h. Any terms and conditions stated in the original specifications will apply to any extended periods. Approval on behalf of the City to renew the contract shall be made by the City Manager or his designee. Either party to the contract may decline to extend by stating that in writing to the other party no later than sixty(60)days prior to the beginning of the next hurricane season or June 1. CITY OF BEAUMONT,TEXAS KOHLER RENTAL POWER By: By: Title: Title: Date: Date: Purchasing Division/Finance Department • (409)880-3720 • Fax(409) 880-3747 P.Q.Box 38 — ------3827 1 EXHIBIT "E" c RICH WITH OPPORTUNITY [I 11EM . � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Frank C. Coffin, Jr., Chief of Police MEETING DATE: June 16, 2009 REQUESTED ACTION: Consider a Resolution authorizing the City Manager to execute all documents necessary, specifically including a contract, in order for the Southeast Texas Auto Theft "Mask Force to purchase a billboard vinyl to raise public awareness on auto theft and auto burglaries. RECOMMENDATION Administration recommends approval. BACKGROUND Since October 2006 the Southeast Texas Auto Theft Task Force has had a contract with Lamar Advertising to use billboards to raise public awareness about auto theft and auto burglary. Funding has been provided to purchase a new billboard vinyl to place on the billboards. The vinyl has been designed to raise awareness on auto burglaries in the program area. BUDGETARY IMPACT No budgetary impact. Grant funding of$956.00 will pay for the purchase of the billboard vinyl. I ° T".F�,, THE SOUTHEAST TEXAS AUTO ���° T"•F,�� THEFT TASK FORCE Beaumonl Police Part Arthur Police Jefferson C'ounly Sheriff FO� Hardin C'ounly Sheriff ASK FOG May 28, 2009 Chief Coffin/Mr.Hayes, This contract is a one time contract to allow the Auto Theft Task Force to purchase a new advertising vinyl to highlight the `Lock Take Hide' campaign. The vinyl will be displayed on our purchased billboard space. Grant funds were recently approved to purchase the vinyl. This contract has the exact language as in the original contract, we just had signed, to purchase the billboard space. The standard conditions are not as lengthy due to the type of contract it is (product instead of services). I have struck out the indemnifying clause and initialed it. That is how Ms. Rawls and Mr. Cooper wanted it done last time. Ms. Rawls said today to do it exactly the same way this time. Thanks in advance for your time. Lt. Karen Froman Project Di ector 2430 West Cardinal Drive, Suite C, Beaumont, Texas 77705 Office: (409) 842-6341 Fax: (409) 842-2835 www.watchyourears.com RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a contract with Lamar Advertising, substantially in the form attached hereto as Exhibit "A," and all other documents necessary for the purchase of a billboard vinyl for use by the Southeast Texas Auto Theft Task Force to raise public awareness of auto burglaries in the program area. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - Beaumont P.O. Box 21580 + COMPANIES Date: 05/1312009 THE Beaumont TX 77720-1580 New/Renewal: PHONE: 409-842-4881 Contract FAX: 409-842-5075 Contract No. 1113902 CRY OF BMT/AUTO THEFT TASK Customer Name: CITY OF BEAUMONTIAUTO THEFT TASK Advertiser: FORCE Street Address: Cust.A/C#: 270958.1 NarULoeal: LD Service Meiling Address: FORCE P 0 BOX 3827 Term: 1 DAY Date: 08/0112009 City: BEAUMONT State: TX Zip: 77704 Contact Person: KYLES HAYES Phan: (409)080.3720 Campaign: Fax: Emait Total Campaign Investment 894500 Vinyl Investment Per Company#: 48 Bibv Period: $945.00 Market BEAUMONT Market Code: 2 Local AE: JLP2167-Joanna Pedigo Alt.AE: PO#: Product: Description: CHARGE FOR 1 1016"X36'VINYL Qty: 1 Rate Per Unit $945.00 Freight $0.00 service a Dae* o8 2091 06/01 Investment Schedule - owl $945.00 --- The remainder of this page left intentionally blank--- Page 1 of 5 EXHIBIT "A" Contract No. 1193902 Advertiser authorizes and instructs The Lamar Companies to display in a good and workmanlike manner,and to maintain for the terms set forth above,outdoor advertising displays described above or on the attached list In consideration thereof.Advertiser agrees to pay The Lamar Companies all contract amounts within thirty(30)days after the date of billing.Advertiser acknowledges and agrees to be bound by Me terms and conditions contained on all pages of this contract. The undersigned representative or agent of Advertiser hereby warrants to The Lamar Companies that he/she is theREPRESENTATIVEof the Advertiser and is authorized to execute this contract on behalf of Advertiser. X CUSTOMER/ADVERTISER ACCOUNT EXECUTIVE: DATE: COMPANY:Beaumont BY: CUSTOMERIADVERTISER SIGNED BY KYLE MAYES This contract Is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Outdoor Advertising Company. ACCEPTED: THE LAMAR COMPANIES DATE BY: GENERAL MANAGER GEORGE CRAM FORD AGENCY The agency representing this Advertiser in this contract executes this contract as an agent for a disclosed principal,but hereby expressly agrees to be Noble jointly and severally and in solido with Advertiser for the full and faithful performance of Advertiser's obligations hereunder. Agency waives notice of default and consents to all extensions of payment. Buying Service: Cust A/C: 270958.1 NarlfLocel: LD Agency: Street Address: Date: Meiling Address: By: City: State: Zip: Signed By: Email Address: Contact: ` Phone: Fax S'T'ANDARD CONDMONS I. General Conditions 1. On initial installation,if is requested by Advertiser to submit art work,then art work submitted by shall be approved or substitute art work shall be furnished by Advertiser within ten(10)days after submission.In the case of default in furnishing or approval of art work by Advertiser,then the date of for purposes of commencement of the first Invoice shall be deemed to occur on the date on which the various spaces are available for service. CC3"-nK . Advertiser warrants that all approved designs do not infringe upon any trademark or copyright,state or federal. Advertiser agrees to defend,indemnify and hold Lamar free and harmless from any and all loss,liability,claims and demands,including attorney's fees l.iQsv�P1. arising out of the character,contents or subject matter of any copy displayed or produced pursuant to this coneacL Cjpuq � 3. If Lamar is prevented from posting or maintaining any of the spaces by causes beyond its control of whatever nature,including but not a� limited to acts of God,strikes,work stoppages or picketing,or in the event of damage or destruction of any of the spaces,or in the event Lamar Is unable to deliver any portion of the service required in this contract,or maintenance,this contract shall not terminate. Credit shall be allowed to advertiser at the standard rates of Lamar for such space or service for the period that such space or service shall not be furnished or shall be discontinued or suspended.Lamar may discharge this credit,at its option,by furnishing advertising service on substitute spaces,to be reasonably approved by advertiser,or by extending the term of the advertising service on the same space for a period beyond the expiration date. 4. Upon default in the punctual payment of the contract indebtedness or any part thereof,as the same shall become due and payable,the entire amount of the indebtedness contracted for herein shall be matured and shall be due and payable immediately,at the option of Lamar,and unless same is promptly paid,Lamar may,at its option,discontinue without notice the advertising contracted for herein; provided,however,that such discontinuance shall not relieve the Advertiser or agency of the contract indebtedness.All payments in arrears shall bear interest at the highest contract rate permitted by law,not to exceed 1 i5%per month.In addition,Advertiser shall pay Lamar all costs and expenses of exercising its rights under this contract,including reasonable attorney's fees of not less than 25%of the amount due,or$250.00,whichever is greater,and all reasonable collodion agency fees. S. This contract all pages,constitutes the entire agreement between Lamar and Advertiser.Lamar shall not be bound by any stipulations, conditions,or agreements not set forth in this contract.Waiver by Lamar of any breach of any provision shall not constitute a waiver of any other breach of that provision or any other provision. N. Commercial Conditions 1. Initial design copy shall be fumished to Lamar not later then thirty(30)days after the date hereof or as otherwise provided below in Page 2 of 5 paragraph 8.If Lamar is requested by Advertiser to submit copy,than copy submitted by Lamar sheil be approved or substitute copy shall be furnished by Advertiser within ten(10)days after submission. 2. If Lamar is prevented from obtaining the poster paper or producing the commercial painting under this contract,in whole or in part,by causes beyond its control of whatever nature,including but not limited to acts of God,strike,work stoppages or picketing,Lamar,at its Option,may terminate this contract or extend it until such time as the cause of its nonperformance Is removed. III. Special Considefetions: N. Special Pmvlsions: Page 3 of 5 SURETY AGREEMENT"Contmd No. 1113902 In consideration of Lamar entering into this contract with Advertiser,the undersigned("Surety")guarantees and becomes a surety for Advertiser In favor of Lamar for all sums due by Advertiser under this contract.The obligation of Surety is joint and several and in solido with Advertiser and Agent(if applicable)for the full performance of au of Advertiear's obligations under this contract or any continuation. Surety consents to all extensions.Surety waives any benefit that may allow him to limit this obligation to less than the full obligation of Advertiser.It is understood that,without this guarantee or surety agreement, Lamar would not be willing to enter this contract with Advertiser. Signed this day of X SURETY Print Name: Address: THIS WORMAi10N FOR OFFICE USE ONLY Invoice StartOafe: Ol:A/r1gOB _ irvdcefnADak. 06N1r10g➢ Im.POLO.W Cuaroreer - Inc. Pmduct.Code:. W Cor**d No: Poakd: SBA song,' Murd-FARE SWkV AE: CD, Page 4 of 5 Revenue Calendar- Contract No. 11134Q2 Year Jun 1945.00 Page 5 of 5 D RICH WITH OPPORTUNITY r C ► � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorne}+ c-'l- MEETING DATE: June 16, 2009 REQUESTED ACTION: Consider a resolution authorizing the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Holiday Inn Midtown. RECOMMENDATION Administration recommends approval of a resolution authorizing the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Holiday Inn Midtown. BACKGROUND State law gives to the City of Beaumont authority to levy a tax not to exceed seven percent (7%) of the cost of occupancy of any room paid for in a hotel. The hotel or its representative is required to collect the occupancy tax and remit same to the City of Beaumont in a timely manner as it becomes due. The City of Beaumont has enacted Article III, Chapter 25, Sections 25-50 through 25-56, of the Code of Ordinances to address hotel occupancy taxes. State law also gives to the City Attorney authority to bring suit against the person who has collected and failed to pay the tax to the City when due. At the same time, authority is given to enjoin the person from operating a hotel until the tax is paid in full. Holiday Inn Midtown at 2095 N. Eleventh Street in Beaumont is delinquent in the remittance of the hotel occupancy taxes collected for the period of time of March 31, 2008, through May 31, 2009, in the estimated amount of$171,091.48. Request is hereby made to bring suit to collect these delinquent hotel occupancy taxes due the City of Beaumont by Holiday Inn Midtown. BUDGETARY IMPACT Potentially recoverable revenue in the amount of$171,091.48. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney is hereby authorized to file and prosecute a lawsuit against Holiday Inn Midtown, Beaumont, Texas, to collect delinquent hotel occupancy taxes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - E RICH WITH OPPORTUNITY I'Em , � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorn MEETING DATE: June 16, 2009 REQUESTED ACTION: Consider a resolution authorizing the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Crown Motel. RECOMMENDATION Administration recommends approval of a resolution authorizing the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Crown Motel. BACKGROUND State law gives to the City of Beaumont authority to levy a tax not to exceed seven percent (7%) of the cost of occupancy of any room paid for in a hotel. The hotel or its representative is required to collect the occupancy tax and remit same to the City of Beaumont in a timely manner as it becomes due. The City of Beaumont has enacted Article III, Chapter 25, Sections 25-50 through 25-56, of the Code of Ordinances to address hotel occupancy taxes. State law also gives to the City Attorney authority to bring suit against the person who has collected and failed to pay the tax to the City when due. At the same time, authority is given to enjoin the person from operating a hotel until the tax is paid in full. Crown Motel at 8685 College Street in Beaumont is delinquent in the remittance of the hotel occupancy taxes collected for the period of time of November 30, 2008, through May 31, 2009, in the estimated amount of$5,887.64. Request is hereby made to bring suit to collect these delinquent hotel occupancy taxes due the City of Beaumont by Crown Motel. BUDGETARY IMPACT Potentially recoverable revenue in the amount of$5,887.64. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney is hereby authorized to file and prosecute a lawsuit against Crown Motel, Beaumont, Texas, to collect delinquent hotel occupancy taxes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - RICH WITH OPPORTUNITY C T • E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works (� MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider approval of Change Order No. 1 for renovations to Magnolia Pool. RECOMMENDATION Administration recommends the approval of Change Order No. 1 in the amount of$10,400 for renovations to Magnolia Pool. BACKGROUND A contract in the amount of$598,320 was awarded to Progressive Commercial Aquatics of Houston on March 10, 2009. Renovations to the main pool include replacing the interior plaster surface, coping and tile, constructing an accessible zero depth entry, upgrading filtration and pumping equipment, installing new perimeter fencing and a new wading pool. Work is underway and should be completed by the end of July. After all of the coping was removed from the pool's perimeter, the skimmer baskets were exposed. There are thirteen skimmer baskets that are original to the pool. Each plastic unit was cracked and broken from exposure to sun and chemicals over the years. The baskets were not encased in concrete and water continued to leak from each unit. This change order provides for the replacement of all the skimmer baskets. They will be installed in concrete to prevent failure in the future. The total cost to replace these baskets is $10,400 or 1.7% of the project cost. BUDGETARY IMPACT Funding for this change order is available in the Capital Reserve Fund. RICH WITH OPPORTUNITY [I 11E, ► � T - E - X - A • S CHANGE ORDER #1 PROJECT: Magnolia Pool Renovations OWNER: City of Beaumont P.O. Box 3827 Beaumont, TX 77704 CONTRACTOR: Progressive Commercial Aquatics, Inc. 2510 Farrell Rd. Houston, TX 77073-4000 On this the twenty-eighth day of May,2009 the following change to the Contract Documents is hereby made: Item 1 Necessity of change: Progressive Commercial Aquatics, Inc. has submitted a change order request to replace thirteen (13) plastic skimmer baskets which are cracked and broken from exposure to sun and chemicals over the years. Description: Change Order#1 includes replacing all of the baskets and encasing them in concrete to prevent failure in the future. The cost of the upgrade is $10,400. ORIGINAL CONTRACT AMOUNT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $598,320 AMOUNT OF PREVIOUS CHANGE ORDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0 TOTAL AMOUNT OF THIS CHANGE ORDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,400 ADJUSTED CONTRACT AMOUNT TO DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $608,720 PERCENTAGE OF CHANGE -THIS CHANGE ORDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7% PERCENTAGE OF CHANGE TO DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.7% ADDITIONAL CONTRACT TIME - CHANGE ORDER# 1 . . . . . . . . . . . . . 0 CALENDAR DAYS APPROVED BY: PROGRESSIVE COMMERCIAL AQUATICS, INC. CAPITAL PROJECTS MANAGER CITY MANAGER RESOLUTION NO. WHEREAS, on March 10, 2009, the City Council of the City of Beaumont, Texas, passed Resolution No.09-073 awarding a bid in the amount of$598,320 to Progressive Commercial Aquatics, Inc., of Houston, Texas, for renovations to Magnolia Pool; and WHEREAS, Change Order No. 1 in the amount of $10,400 is required for the replacement of thirteen (13) skimmer baskets, thereby increasing the contract amount to $608,720; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute Change Order No. 1 for work described above, thereby increasing the contract amount by $10,400 for a total contract amount of $608,720. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - G RICH WITH OPPORTUNITY 11CM ► � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager /V,. PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider a resolution authorizing eminent domain proceedings to acquire property for public use. RECOMMENDATION The administration recommends authorization to acquire property in downtown Beaumont by eminent domain. BACKGROUND The property owner listed below has not accepted the appraised value for his property. The property was appraised by Bishop Real Estate Appraisers. Inc.: Lots 9, 10, 11 and 12, Block 32, Van Wormer Addition [220-260 Holmes; 1010 Bonham] Appraised Value: $110,000 Owner: C & I Oil Company Acquisition of the above property is for the purpose of locating, constructing, and maintaining a Downtown Park and Event Center. BUDGETARY IMPACT Funds are available in the Capital Program. \engbates_c&i ed-ib 4 June 2009 RESOLUTION NO. WHEREAS, the City Council of the City of Beaumont deems it necessary that the properties described below be acquired for the Downtown Park and Event Center; and, WHEREAS, the City Council has found that a public necessity exists requiring the hereinafter described property: Lots 9, 10, 11 and 12, Block 32, Van Wormer Addition [220- 260 Holmes; 1010 Bonham] Appraised Value: $110,000 Owner: C & I Oil Company and, WHEREAS, the City Council deems it necessary to acquire the hereinafter described interests in and to the above described properties for the Downtown Park and Event Center and has found and determined that said interests in and to the above described land is suited for such purposes and that it is necessary to acquire same for said purposes; and, WHEREAS, the City of Beaumont, through its duly authorized representatives, has negotiated in good faith with the owners of the hereinafter above described land and has been unable to agree with such owners of such property as to the fair market value thereof and damages, if any, and further negotiations for settlement have become futile and impossible; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Attorney be and he is hereby authorized and directed to file or cause to be filed against all owners of the above described parcels of land, and all claimants of any interest therein, proceedings in Eminent Domain to acquire fee simple title for said purposes, in and to the said parcel of land shown in Exhibit "A"attached hereto and made a part hereof, the parcels of land being situated in Beaumont, Jefferson County, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - Ij - 9 6 � O os t $.r c t ¢ E `tom -��'• os NI NVA / ` t y o . t. os 9 0 o f Z q £ e o &2S '- oL r t °S 11'19 °s Y t os t09 • � =:r+.i- ter., - ;y os u'19 . ✓{'d y. S ° H[Y6 nl J JY✓ Y✓ . � .. os r `y r rrr. o o z £ JV OL 'K OS o 1 L F 8 Y S OS • OL. �QbO .J oo g 6 9 � � oL .• - .. _. ..t)L...,:..'. � .• .. OS .+D9. 88 T os s os _ o S Faso/, ••:. : ,. ° 09 ;� -tom Zt It OI "s 9 t -BB w:Q°0_c,} pum 09 . OS h £ �Z- • i' 9 v i u c•q� I Qe'6 g a ae os. r r 1 Z 4 y, OS OL .. .. OL 01 pri . 1, s y 89•f-5 .. •• O OS : 6' � v ZZZ Q or 9Z w� or 0 P I . G OL Qzl !��'� �. �:�: '09 J9/�'F /li�� • 4Z1. 1, � 6 . 1 ¢ i 1.0 / r zo �•\�.. . . .. D o 02 , - _4109 ' `�� nor �. ��o��� .. 69�,Q,- .•ADS -�p��� - � . ..° 4 •tiL © gib-'�J '..�. : - _ :� ..' H fi 011 P O it f C.^.1 F k r T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer atJ MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider a resolution to allow the temporary addition and release of collateral held at the Federal Reserve Bank. RECOMMENDATION Administration recommends approval of a resolution to allow Capital One Bank to add and release the following security as collateral for City accounts, which is held at the Federal Reserve Bank, effective May 27, 2009. Cusip No. Description Face Value Market Value PLEDGE: 31371NQF5 FNMS, 5.5%, Due 01/01/38 $5,000,000.00 $4,437,273.85 RELEASE: 31371NQF5 FNMS, 5.5%, Due 01/01/38 $5,000,000.00 $4,533,229.90 BACKGROUND According to the banking services agreement the City has with Capital One Bank, the bank shall at all times have pledged securities of market value equal to 102% of the amount of the City's funds on deposit with the Bank. The balance at close of business on May 26, 2009 was higher than the collateral pledged at the time. In accordance with banking services agreement, Capital One Bank pledged the additional security above in order to meet the requirement of 102% of collateralization. After pledging and releasing the above securities, the market value of pledged collateral totals $5,027,443.08, and along with FDIC coverage is sufficient to collateralize current deposits as well as any deposits anticipated in the near future. BUDGETARY IMPACT None. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the pledge and release by Capital One Bank of the following securitywhich is held as collateral at the Federal Reserve Bank, effective May 27, 2009: Cusip No. Description Face Value Market Value PLEDGE: 31371 NQF5 FNMS, 5.5%, Due 01/01/38 $5,000,000.00 $4,437,273.85 RELEASE: 31371 NQF5 FNMS, 5.5%, Due 01/01/38 $5,000,000.00 $4,533,229.90 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - RICH WITH OPPORTUNITY r T - E • X - A - S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager �Q,,/ PREPARED BY: Laura Clark, Chief Financial Officer r°' MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the award of an annual contract for grounds maintenance for the Martin Luther King, Jr. Parkway. RECOMMENDATION The administration recommends the award of an annual contract to Bio Landscapes&Maintenance, Inc., of Houston, Texas, in the estimated amount of$66,110. BACKGROUND Bio Landscapes&Maintenance is to provide grounds maintenance of approximately 80.9 acres of right- of-way and median along Martin Luther King, Jr. Parkway. The maintained area includes both east and west sides of the Parkway, for a distance of approximately 4.9 miles beginning north of IH 10 near Plum Street southward to Kingsley Drive and excludes the area between Adams Street and Alabama Avenue which is maintained by Lamar University. Bids were requested for approximately twenty-two mowing cycles per year. Two-week mowing cycles were requested for the growing season from March through October and monthly mowing cycles for the non-growing season from November through February. The previous contract was awarded at an estimated amount of$73,000. The low bid of$66,110 for this contract represents a cost savings of$6,890. Award of MLK Jr Pkwy Grounds Maintenance Contract June 16, 2009 Page 2. Bids were requested from sixteen (16)vendors with six(6)vendors responding with bids as follow: Contractor Price per Cycle Annual Cost Mowing Cycle (22 Cycles) Bio Landscape&Maintenance, Inc. $3,005.00 $66,110.00 Garden of Gethsemane $3,136.45 $69,001.90 Torres Lawn Service $3,300.00 $72,600.00 Perfect Cut Lawn Care $3,662.04 $80,564.88 BASE Service Group, LLC $3,996.00 $87,912.00 Sandra's Enterprises, Inc. $5,244.75 $115,384.50 BUDGETARY IMPACT Funds are available for this expenditure in the Parks and Property Services Division's budget. RESOLUTION NO. WHEREAS, bids were received for an annual contract for grounds maintenance along Martin Luther King, Jr. Parkway; and, WHEREAS,Bio Landscapes & Maintenance, Inc., of Houston, Texas, submitted a bid in the amount of$3,005.00 per mowing cycle for an estimated total amount of$66,110 for approximately twenty-two (22) mowing cycles; and, WHEREAS, City Council is of the opinion that the bid submitted by Bio Landscapes & Maintenance, Inc., Houston, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by Bio Landscapes & Maintenance, Inc., Houston, Texas, for an annual contract for grounds maintenance along Martin Luther King, Jr. Parkway in the amount of$3,005.00 per mowing cycle for approximately twenty-two (22) mowing cycles, for an estimated total amount of $66,110, be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - J RICH WITH OPPORTUNITY [I 17C A. � T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer '1313 MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider approval of a payment to Jefferson County for the renewal of an annual maintenance agreement with Motorola. RECOMMENDATION Administration recommends the payment of an invoice to Jefferson County for the renewal of an annual maintenance agreement with Motorola for support of the 800 MHz radio system in the amount of$106,189.50. BACKGROUND The 800 MHz radio system is used by EMS, Fire, Police and numerous other departments throughout the City for daily communications. The purchase is exempt from competitive bidding since it is available from only one (1) source having exclusive rights to maintain the radio infrastructure. The maintenance agreement provides for constant monitoring of the radio system and 911 dispatch centers as well as dispatching of repair personnel with replacement parts when required. The 800 MHz radio system is shared with Jefferson County and the annual cost of the maintenance contract is split equally between Jefferson County and the City of Beaumont. Jefferson County has rendered payment directly to Motorola for the entire annual maintenance contract in the amount of$212,379.00. The agreement is for an annual period from May 1, 2009 - April 30, 2010. BUDGETARY IMPACT Funding in the amount of$106,189.50 is available within the FY2009 budget in the General, Water and Solid Waste Funds. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to pay an invoice in the amount of$106,189.50 to Jefferson County for the renewal of an annual maintenance agreement with Motorola for support of the 800 MHz radio system. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - K P :C it A 1 1 h 0 11 P 0 1� f i-'� i'l y r C .[I 1�1 C1 I I T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider changes to and certification of the Small Business Revolving Loan Fund (RLF) Plan. RECOMMENDATION The administration recommends approval. BACKGROUND The Small Business Revolving Loan Fund Program was created with an initial grant from EDA of$500,000 with matching funds from CDBG of$250,000. To be approved for the grant, the City was required to develop a plan to support the area's economic development strategy and to create policies and procedures to administer the program. The original City of Beaumont RLF Plan was adopted by the City Council on February 24, 1987 and was last re-certified on March 25, 2008. Changes to the plan are required to comply with the updated EDA RLF Financial Assistance Award Standard Terms and Conditions revised 10/9/2007, ensure that the Small Business Revolving Loan Fund (RLF) Plan is consistent with and supportive of the area's current economic adjustment strategy, ensure that the RLF is being operated in accordance with the policies and procedures contained in the RLF Plan and to ensure that the loan portfolio meets the standards contained therein. The Small Business Revolving Loan Fund Plan is attached for your review with proposed changes highlighted. BUDGETARY IMPACT None. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby certifies that the Small Business Revolving Loan Fund (RLF) Plan is consistent with and supportive of the area's current economic adjustment strategy, and the RLF is operating in accordance with the policies and procedures contained in the RLF Plan and the loan portfolio meets the standards contained therein. The Plan is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - CITY OF BEAUMONT, TEXAS SMALL BUSINESS REVOLVING LOAN FUND PLAN ORIGINAL PLAN APPROVED OCTOBER 31, 1987 REVISED SEPTEMBER 18, 2004 REVISED date of Council Approval) TABLE OF CONTENTS Introduction 2 Program Element to the Plan 3 Goals and Objectives -3 Identification of the Area's Financing Problem!, 6 Targeting Criteria 7 Standards for the Revolving Loan Fund Portfolios 7 Financinp, Policies 8 ReEated Activities 9 Administration Element of the Plan 11 Smatt Business Revolvinp, Loan Fund Board 11 Staff 11 Conflict of Interest 11 Loan Selection and Approval Process 12 Loan Servicinp- 13 Expenses 13 Recapitalization Strategy ------�.__ ___ l 3 Other Requirements 14 INTRODUCTION Beaumont is the largest populated city in the southeast portion of Texas. The southeast Texas region is highly industrialized and significantly agricultural with two navigable rivers (Sabine and Neches) which allow ocean-going vessels to transport import and export trade to the Gulf of Mexico. Due to the discovery of oil in the area, the petrochemical industry devel_oiled as a major economic contributor for the region. In the 1980's the oil industry saw a worldwide downturn which resulted in historically high unemployment rates for southeast Texas and Beaumont. The need for new economic goals and strategies for the area became apparent In 1987 the City of Beaumont created a new Economic Devetopment division and pursued the approval and acquisition of a grant from the Department of Commerce, Economic Development Adminstration. With a grant of $500,000 from EDA and a city match of $250,000, the City was able to begin the financing of the expansion and start-up needs of local small businesses. The South East Texas Economic Development District Inc. (SETEDD) was created in 1993 to facilitate the flow of U.S. Department of Commerce and Economic Development Administration grant and loan funds for creating new jobs and/or saving existing jobs in the southeast Texas region. SETEDD through a Comprehensive Economic Development Strategy or CEDS creates objectives and strategies that help to steer the economic direction of the region. According to the Vision Statement of the CEDS, goals are: Workforce Development New and Existing Business Development Infrastructure Develop Advanced Materiats Cluster Tourism_ Quality of Life The City of Beaumont and the Small Business Revolving Loan Fund Board use these goals in administering the City's Small Business Revolving Loan Fund and creating loan opportunities for small businesses that will better not only those businesses but the City and the entire southeast Texas region. 2 I. PROGRAM ELEMENT TO THE PLAN A. Goals and Objectives 1. COMMITMENT TO ECONOMIC DEVELOPMENT: The Economic Development Policy Plan consists of goals, objectives, policies, and proposals for guiding Beaumont's future economic growth and development. Outside assistance is provided through a contact with the Beaumont Chamber of Commerce for various economic development activities such as marketing analysis, business retention efforts and working with business prospects. 2. GOAL: INCREASE THE NUMBER OF PERMANENT JOBS AVAILABLE TO CITIZENS OF BEAUMONT AND SOUTHEAST TEXAS Emphasis should be placed on value added jobs which are most likely to lead to further job creation. Jobs in "export" industries bring money into the region through production of goods or services that are exported outside of Beaumont. These jobs, which are generally highly paid, create spendable household income, thus generating new jobs in sales and services. Beaumont also needs jobs which can be filled by workers who were previously employed in shipyards, refineries, and chemical plants. These skilled workers are among Beaumont's most valuable economic resources and will leave the area if new job opportunities are not developed. Because of an especially high unemployment rate among Beaumont's sizable minority population, entry level jobs with on-the-job training are needed to bring unskilled workers from low-income backgrounds into the workforce. WHERE WILL THESE JOBS COME FROM? New jobs come from three sources: 1) Expansion of existing business 2) Creation of new, entrepreneurial enterprises 3) Attraction of plants or business from outside the community Research indicates that expansion of existing business and creation of entrepreneurial enterprises account for 80 to 90%of all new jobs. OBJECTIVE NO. 1: MAINTAIN AN EFFECTIVE ROLE FOR THE CITY OF BEAUMONT ECONOMIC DEVELOPMENT PROCESS Policy 1.1 Role of the City The City will continue to serve in the leadership role in the following areas of economic development: A. Strategic Planning - analyzing Beaumont's competitive strengths and weaknesses in the world economy and then taking aggressive action to capitalize on the strengths and overcome the weaknesses. 3 B. Legislative Advocacy - working closely with Jefferson County, The Port of Beaumont, Drainage District #6, the Jefferson County Navigation District, BISD, other municipalities in the region, and other State and Federal elected officials to secure major funding assistance and to enact or change laws to increase the strategic competitiveness of the local/regionat economy. C. Leveraging and Public/Private Partnerships - using the limited resources available to the City government, such as grants, development incentives, infrastructure, land, and staff to attract private sector investments which will create or retain jobs and/or increase the tax base. D. Develop and Communicate a Vision of the Future - the City's elected officials and staff must motivate the community to set its sights on the goal of becoming a first-class medium-sized city with a quality of life capable of attracting new private investment and population. The City will serve in a leadership and cooperative role in the following area, participating actively and lending whatever support is needed to other members of the economic development network: a. Promotion: assisting the Chamber of Commerce, the Convention and Visitors Bureau, BUILD, Inc/Beaumont Main Street, Entergy, and other promotional groups in marketing Beaumont as a business location, tourist destination, etc. b. Business Attraction: working cooperatively with the Chamber/Economic Development Council in attracting new industry. Policy 1.2 The City's Commitment The City will commit the assets is has available—staff, incentives, land, taxing authority, infrastructure, tax-exempt bonding authority, and access to State and Federal grants—to the local and regional economic development efforts. The City will also strive for excellence in conducting its basic responsibilities of providing public services and infrastructure, recognizing that an efficient, competent and responsive city government is one of the prerequisites for economic growth of a community. Allocation of resources for construction of new or the repair or extension of existing city infrastructure and new or revised city services will be implemented on the basis of need; however, the impact of such actions on the economic development of the City as a whole will be considered of overriding importance when deciding where to allocate the City's resources among areas which are of equal need. Policy 1.3 Public Return on Investment The City will examine the potential return on the public's investment when determining where and how its limited resources will be committed. Return on public investment will be measured in terms of jobs created, jobs retained, and broadening of the tax base. 4 I I OBJECTIVE NO. 2 ENCOURAGE A CLIMATE WHICH FACILITATES BUSINESS GROWTH AND SUSTAINABILITY Policy 2.1 The City of Beaumont recognizes that the degree of cooperation and support of local government plays a major role in business location and expansion decisions. The City resolves to improve both its efficiency and effectiveness in providing assistance and services to business. Policy 2.2 The City of Beaumont will be committed to improving the quality of life for current and future residents. In recognition of the connection between economic development, the quality of life or livability of a city, and the development of a favorable sense of place among residents and non-residents alike, the City supports the inclusion of "quality of life" and "environmental quality" considerations in making planning and development decisions. Visual community appearance considerations in the city's planning and development efforts are to be considered important economic development actions which will improve Beaumont's ability to attract new businesses and employment opportunities. In realization of the fact that investing in the overall improvement in the quality of life or livability of the City is not a goat which can be achieved overnight, the City will concentrate its resources on the cleanup and rehabilitation of selected neighborhoods and on the development and improvement of urban design plans for selected open space, street corridor, and city entrance or gateway areas. OBJECTIVE NO. 3 ATTRACT NEW BUSINESSES AND INDUSTRIES TO THE BEAUMONT AREA Policy 3.1 The City will work with the Chamber of Commerce and other economic development groups in a team effort to bring new businesses and industries to the Beaumont area. Policy 3.2 Efforts to attract new business and industry will be targeted on industries whose tocational needs are consistent with the Beaumont area's locationat attributes. Policy 3.3 Continue to promote the Beaumont area's resources and quality of life factors through the efforts of the Beaumont Convention and Visitors Bureau. OBJECTIVE NO. 4: RETAIN AND EXPAND EXISTING BUSINESSES AND INDUSTRIES Policy 4.1 The City of Beaumont recognizes that existing businesses and industries are the community's most important economic resources and wilt support the efforts of existing businesses to expand and improve operations. Policy 4.2 An "outreach" program to foster open tines of communication between the city government and existing businesses and industries will continue. OBJECTIVE NO. 5: STIMULATE THE CREATION OF NEW BUSINESSES 5 Policy 5.1 Continue the City's Small Business Revolving Loan Fund which provides financing assistance for new businesses having difficulty in obtaining conventional financing. Policy 5.2 Continue to work with the Small Business Development Center at Lamar University, which assists start up businesses and processes applications for the City's Small Business Revolving Loan Fund. OBJECTIVE NO. 6: IMPROVE THE COMPETITIVE ADVANTAGES OF THE BEAUMONT AREA ECONOMY Policy 6.1 The City of Beaumont will assume a role of partnership with local business and industry in competing with producers in other regions, state and countries. This means city actions involving taxes, infrastructure, regulations and development incentives will focus on making it easier, more efficient and more advantageous for doing business in Beaumont. Policy 6.2 Expand the scope of Beaumont's market area by capitalizing on its role as a regional cent of trade, professional services, entertainment, distribution, and medical services. B. Identification of the Area's Financing Problems A review of Beaumont's capital market and discussions with local small business persons indicate that local capital market has the following characteristics. 1. Beaumont banks typically follow conservative policies and practices regarding allocation of deposits for lending purposes. While this is not unique to Beaumont or the region, the adverse effect of the local and statewide economy has even further reduced the availability of the banks' capital in Beaumont. Beaumont banks are looking for additional outside capital projects as a cushion for their loans. 2. There is reluctance to provide financing to younger or higher risk companies or to companies located in blighted or depressed areas of the community. 3. There is a shortage of long term reasonably priced commercial financing available to small business located in Beaumont. 4. Local banks appear to be reluctant to make loans smatter than $75,000.00. 5. There is a lack of capital for minority business. The Revolving Loan Fund (RLF) will serve a critical function in the City's economic development program by providing assistance in financing small business that will provide jobs primarily for persons of low and moderate income, the unemployed, and the underemployed, and projects which will diversify and strengthen Beaumont's economic base. Specific Objectives of the Revolving Loan Fund: The Revolving Loan Fund wilt promote economic development by: 6 1. Creating New Employment Opportunities: The Revolving Loan Fund will be utilized to assist in expansion or creation of small business enterprises, owned or operated by minorities, women, or the economically disadvantaged. 2. increasing Private Financing Availability: Revolving loan fund monies will be used to leverage private financing for small business, availability of financing for small business enterprises owned or operated by minorities, women or the economically disadvantaged and to provide incentives to the financial institutions to make loans to small businesses. C. Targeting Criteria The Revolving Loan Fund will target small businesses which can best assist the City in achieving economic development objectives. The order or priority wilt be: 1. Small businesses which will create the greatest number of jobs available to the unemployed, underemployed, or low or moderate income persons at the least cost to the Revolving Loan Fund; 2. Small businesses which are owned and operated by minorities, women, or the economically disadvantaged; 3. Small businesses that which are located within Beaumont's Community Development and Housing Neighborhood Strategy Areas. D: Standards for the Revolving Loan Fund Portfolios To ensure the effectiveness of the Revolving Loan Fund as an economic development tool, the following standards wilt serve as guidelines for Revolving Loan Fund participation: 1. It is the objective of the Revolving Loan Fund to leverage each dollar three or four times through participation with private sector lending institutions, the SBA and other government loan programs and private investors. For each $10,000 of total investment, one job will be generated. The Revolving Loan Fund wilt leverage two private sector dollars for every one RLF dollar at a minimum. 2. Revolving Loan Fund monies will be available to finance the expansion and start-up needs of small businesses. Financing will be available for fixed assets (plant and equipment) and for working capital. The Revolving Loan Fund will give priority to the businesses that create the maximum number of new jobs. The Revolving Loan Fund applicants will be screened for potential use of vacant facilities located in blighted areas of the community. 7 $100,000.00 of the Revolving Loan Fund will be made available to small businesses for low interest bridge/gap $10,000-$20,000 loans to be distributed within 6 months of a natural disaster if the City of Beaumont is declared a national disaster area. Existing Small Business toan recipients who are in a current or 1-2 month delinquent status with their loans may re nest a deferral of loarPayments to help them recover from the natural disaster. 3. Other economic development objectives and standards include the following: The Revolving Loan Fund borrower will be required to have a 10% equity position in the project. Minorities and females will be encouraged to participate in the Revolving Loan Fund. To prevent displacement of existing capital, all applicants must have written evidence of the need for the RLF funds. E. Financing Policies: The Revolving Loan Fund will include the following goals: 1. The Revolving Loan Fund loans are expected to range between $10,000 and $x99:999200,000. 2. No more than 2950% of the total SBRLF GeRtFilgyted available capital shall be loaned to any one borrower during any one time period. 3. Terms and Conditions of the Loans The expected amortization period for Revolving Loan Fund loans will be as follows: Working capital loans: _ Negotiated within normal commercial financing range Machinery and Equipment: Based upon the useful life of equipment financed Land and Building: 15-25 years 4. Interest Rates: Interest rates for all Revolving Loan Fund loans will be variable depending on the needs and financial condition of the applicant. Interest rate floors and ceiling will be established. The minimum interest rate will be four percent. 5. Special Financing Techniques: Revolving Loan Fund staff and administration will employ flexible financing techniques designed to meet the needs of the borrowers and to maximize the effectiveness of the Revolving Loan Fund program. The special financing techniques that may be utilized include: Lower than market rates. Extended amortization period for loans. Moratoriums on loan payments for a specified period of time-up to a maximum of six months. 8 Existing Loan Program recipients may request to change the payment terms of their loan in an effort to facilitate the continued repayment of the loan when they are having difficutty in doinp, so, 6. Collateral and Equity requirements: Fixed asset financing will be secured by the fixed assets financed with other assets included if required. Collateral for working capital loans will include inventory, accounts receivable, fixed assets, cash and personal guarantees. The Revolving Loan Fund will mandate the contribution of equity by the borrower, requiring not less than 10%. 7. Restructuring Loans: The Revolving Loan Fund will not be involved in restructuring third-party loans or in refinancing projects. 4— : RepayMeRtS of hp Ga pr=egra+4-+- &. Use of RLF Income: RLF income includes all interest earned on outstanding loan principal, interest earned on accounts holding idle RLF funds, loan fees and other loan-related earnings. RLF income does not include repayment of RLF loan principal and any interest remitted to the U. S. Treasury pursuant to a sequestration of excess funds. RLF income wilt be used to pay administrative expenses as long as RLF income and administrative expense are earned in the same 12-month reporting period and administrative expenses don't exceed 50 of the RLF income or $100,000.00. Any excess RLF income in a 12-month reporting period will be added to the RLF capital base and made avaitable for loans. Any administrative expenses that exceed W,, of the RLF income may be paid from the City of Beaumont Community Development Block Grant Funds and the appropriate RLF Income and Expense Statement wit[ be prepared and submitted according to EDA regulations. 9. Participation with other loan programs: To accomplish the stated goals of the Revolving Loan Fund, participation on loans with the following financial institutions ins anticipated: • Banks throughout the City. • Small Business Administration. • Farmer's Home Administration. • SBA Certified Development Corporation (504's). • SBA Small Business Investment Corporation (MESBIC). • Savings and Loan Associations. • Local equity capital funds. F. Related Activities: 1. Loan Packaging and Referral Service: The Revolving Loan Fund loans will be packaged by the staff in cooperation with the loan officer and staff of the participating financial organization. Those applicants who do not qualify for Revolving Loan Fund loans but are viable applicants for other financing assistance will be referred to the local office of the Small Business Administration, the Southeast Texas Economic Development Foundation (A SBA 504), and other commercial banks or savings and loans in the community. 9 2. Linking Jobs to the Long-Term Unemployed: Should the borrowers need assistance in recruiting the long-term unemployed and low-income persons, the company will be referred to agencies capable of providing assistance. Those agencies include: • Workforce `solutions Southeast Texas • Local Employment Agencies »------Advertisement in Local Newspapers 10 11. Administrative Element of the Plan A. Loan Administration Board The Mayor and City Council establishes citizen advisory boards, committees and commissions and appoints citizens within the community to serve on these various committees by approval of City Council. A Loan Administration Board will be formed with the membership as follows: 1. Members will be drawn from local financial institutions. 2. Other members will be appointed from the Small Business Development Center at Lamar University. 3. One member will be appointed representing the City of Beaumont. 4. The remaining members will be appointed from small and minority businesses or community organizations. Provisions will be made to assure strong representation among women and minorities. At least one member with financing experience must be present for each loan decision. Board members will be appointed to two year terms, which will be staggered to assure continuity on the board. The board will include members from both the public and private sectors. B. Staff The City's Finance Department, Cash Management Division, will provide support staff to the Revolving Loan Fund. The Cash Management staff has experience in analysis of business operations and financial statements and substantial billing and collection experience. The RLF staff will work closely with the particular commercial lending officers of the private financial institution(s) involved in the leveraging of each loan. The loan packages will be prepared to provide adequate loan security and allow maximum operating flexibility to the borrowers. C. Conflict of Interest 1. RLF funds shall not be available to a business entity if the owner of such entity or any owner of an interest in such entity is related by blood, marriage, law or business arrangement to an employee of the City of Beaumont or any member of the City Council, or a member of the SBRLF Loan Advisory Board unless the person(s) affected first discloses in writing to the Loan Advisory Board the potential benefit and the Loan Advisory Board determines that the benefit involved is not so substantial as to affect the integrity of the Board's decision process. 2. An officer, employee or board member of the SBRLF shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment or any other thing of monetary value for himself or for another person, from any person or organization seeking to obtain a loan. 3. Former Loan Advisory Board members and/or Officers are ineligible to apply for or receive loan funds for a period of one year from the date of termination of his/her service. 11 D. Loan Selection and Approval Process 1. Marketing The Finance Department will have a coordinative managerial role in the areas of capital formation and supporting the existing network of economic development groups active in the area. The staff will also continue its ongoing contacts with the SBA and financial institutions. Presentations will be made to the Chamber of Commerce, Minority Business Development Organizations and other potential sources of applicants. 2. Screening Potential applicants for the RLF will be screened by the staff at the Small Business Development Center (SBDC) at Lamar University and participating financial institutions. Preliminary screening by the SBDC will include, but will not be limited to the following: • Eligibility criteria • Ownership and organizational structure • Potential for job creation • Funding requirements If the preliminary screening process indicates that the potential applicant is appropriate for the RLF, the applicant will be invited to make full application. The RLF staff and the Small Business Development Center will provide technical assistance to help applicants with the preparation of necessary documents. Applicants that are ineligible will be referred to other sources which may be appropriate including the SBA, the local 504 Corporation or other programs which may fit the needs of the applicant. 3. Applications At this phase of the process, the following information may be requested from the applicant and his/her financial institution: • Application Form • Summary description of business and the project being financed • Financial Statement (3 years) • Projections (3 years) Assumption (2 years existing) New Company (3 years) Profit and Loss Statements; Balance Sheets; Cash Flow Analysis • Personal Financial Statements • Cost Summary • Listing of Collateral • Commitment Letter • Appraisal (Financing Real Estate) • Jobs Form • Resume on Principals • Business Plans New (detailed description of the business to include the market, competition, location, management, personnel, and purpose of loan) Existing (one page document describing plans to grow or expand) 12 • Certification of Cost- Architectural estimates; equipment vendor quotes; construction cost estimates 4. Evaluations Once alt materials requested from the applicant have been submitted, an analysis of the loan request will occur, inluding review of the applicant's credit repoll. Staff assembles the information into a complete package and submits to the Loan Advisory Board for review. A decision is based upon factors including, but not limited to: • the ability of the applicant to repay the loan, • the applicant's managerial capabilities, • the long term retention of jobs that wilt be provided. 5. Considerations Alt loans shall be presented to the Loan Advisory Board for consideration. Applicants will be afforded an opportunity to address the Board and to answer questions. 6. Loan Closing Once final approval has been authorized by the board, staff and legal counsel will assist in preparation of loan closing documents in conjunction with the financial institution, including necessary deeds of trust, liens, mortgage instruments and loan agreements. 7. Disbursement Prior to closing, a schedule of loan disbursements will have been negotiated. 8. Monitorin$ Monitoring of the implementation of the project will begin after the initial disbursement. Continuing technical assistance will be provided as needed by RLF staff. The Grant's Administration Division will provide assistance with environmental impact and Davis-Bacon wage requirement issues. E. Loan Servicing The loan will be serviced in house by RLF staff who will institute a portfolio management system which monitors each loan on an ongoing basis for timely payment. A servicing agreement may be established with an outside agency to service the loans for the city, if cost effective, where funds will be returned to the Revolving Loan Fund by the private financial institutions on at least a quarterly basis. If a default appears eminent, the staff of the RLF will work with the financial institutions to avert such an occurrence. When default cannot be averted, the staff will commence foreclosure proceedings as mandated by State Law. F. Administrative CestsExpenses The City will allocate fumd-16 fr,_;M the imteFest paid to the RLF and pF9gFaFR fees if such fi-ind-iRg °r ^.„a ^°G @S5aF .. Administrative expenses will be funded from RLF income, by city funds or from Community Development Block Grant funds. G. Recapitalization Strategy Capitalization of the RLF wilt be accomplished through recapitalization of RLF loan principal payments, excess RLF income and through program income funds from the CDBG program. 13 H. Other Requirements 1. Compliance with Civil Rights Laws: Applicants for RLF assistance will be required to pledge not to discriminate against employment applicants. They will be required to sign an affidavit to that effect at the loan closing. Any proven instance of discrimination proven against the loan applicant shall be grounds for calling loan. 2. Environmental Impact: Staff wilt consider the environmental impact of all proposed projects. (See ERViFO^m°^*°' -4 3. Access for the Handicapped: All buildings involved in the proposed project must be made accessible for persons with impaired mobility. 4. Insurance: Key man insurance, flood hazard insurance, liability insurance, or other types may be required of the applicant. 5. Davis-Bacon: Construction financed in whole or in part by the RLF will meet the requirement of the Davis- Bacon Act, as amended (40 U.S.C. 276a-5). 6. Relocation: The location of loan projects will be located within the city limits of Beaumont. The City of Beaumont assures that loans wilt be recalled if the project and/or business activity move from the area. Businesses relocating jobs from another labor area are not eligible borrows. 7. Hold Harmtess Provision: RLF loan documents and procedures will protect and hold the Federal government harmless from and against all liabilities that the Federal government may incur as a result of providing an Award to assist idirectty or indirectivi in site preparation or construction, as welt as the direct or indirect renovation or repair of any facitity or site. A hotd harmless agreement will be added to all loan documents, 14 PART V Approval Expires January 31, 1981 ASSURANCES The applicant hereby assures and certifies that it will comply with the regulations, policies, guidelines and re- quirements, including Executive Order 12372, OMB Circu- 10. It will complyy with the requirements of Title 11 and Title lars No. A-21, A-87, A-102, and A-110 as they .relate to III of the IJnilorm lielocation Arrsistance and Real the application, acceptance and use of Federal funds for Property Acquinitions Act of 1970 (f.1,. 91-6.16) Which this federally assisted project. Also, the Applicant gives provides for fnir and equitable trr:atment of persona assurance and certifies with respect to the grant that: displaced as a result of Federal rind federally assisted programs. 1. It possesses legal authority to apply for the grant, and to finance and construct the proposed facilities; that a l I. It will insure that the facilities under its ownership, resolution, motion or similar action has been July lease or supervison which shall be utilized in the adopted or passed as an official net of the applicant's accomplishment of the project are not listed on the governing body, authorizing the filing of the application, Environmental Protection Agency's (EPA) List or including all understandings and assurances contained Violating Facilities and that'tt will notify the Federal therein, and directing and authorizing the person grantor ngency of the receippt of any communication from identified as the official representative of the applicant file Uireclor of the EPA 011ice of Environmental Review to act in connection with the application and to provide indicating that a facility to be utilized in the project such additional information as may be required. is under consideration for listing by the EPA. 2. It will give the sponsoring nXency and the Comptroller 12. It will comply Willi the flood in surance purchase reouire- General through any authorized representative access to ments of Section 102(n) of the Flood Disaster Protection and the right t examine aft records, books, papers, or Act of 1973, Pithlic Law 93-234, 87, Stat. 975, approved documents related d to the grant. December 31, 1976. Section 102(x) requires, on and 3. It will comply with nil requirements imposed by EDA after March 2, 1975, the purchase of flood insurance to concerning special requirements of law, program require- communities where such insurance is available as a meals, and other administrative requirements approved condition for she receipt of any Federal financier in accordance with OMB Circular A-102. assistance for construction or ncquisition urposes (or 4. The prol•ect will be properly end efficiently administered, use in any area that has been identified by the Secretary operated and maintained. of the Department of flossing and Urban Development as an area having special flood hazards. The phrase S. It will establish safeguards to prohibit employees from "Federal financial assistance" includes any fonn of using their positions for a purpose that is or gives the loan, grant, guaranty, insurance payment. rebate, sub- appearance of being motivated by n Desire for private silly, disaster assistance loan or grant, or any other gain for themselves or others, particularly those with form of direct or indirect Federal assistance. whom they here family, business, or other ties. 6. It will comply with ifte provisions of the hatch Act 13. It will assist EDA in its compliance with Section i06 of which limit the political activity of employees. the National Ilistoric Preservation Act of 1966 as amended (16 U.S.C. 470), Executive Order 11593, and 7- It will comply with the minimum wage and maximum hours the Archeolo teal and Ilistoric Preservation Act of 1966 provisions of the Federal Fair Labor Standards Act, as (16 U.S.C. A9a-1 et seq.) by (n) consulting with the they apply to hospital and educational institution State Ilistoric Preservation Officer on the conduct of employees of State and local governments. investigntions, ns necessary, to identify properties 8. It will comply with Title VI of the Civil Rights Act of listed in or eligible for inclusion in the National Reeister 1964 (P.L. 88-352) and in accordance with Title VI of of Historic Places that are subject to adverse eifects that Act, no person in the United Stales shall, on the (see 36 CFR Part 800.8) by the activity, and notifying ground of race, color, or national origin, ' be excluded FUA of file existence Of any such properties, aria by from participation in, be denied the benefits of, or be (I+) complying Willi all requirements established by otherwise subjected to discrimination under any PProgRram EDA to avoid or mitigate adverse effects upon such or activity for which the applicant receives F eJeral properties. financial assistance and will immediately lake any measures necessary to effectuate this agreement. If ony real property or structure (hereon is provided or improved with the aid of Federal financial assistance extended to the Applicant, this assurance shall obligate the Appli- If the project involves the ncquisition or Jrvelopment of land cent, or in the case of any lronsfer of such property, or the acquisition, construction, rehabilitation, sftention. any transferee, for the period during which the real expansion or improvement of a (ncility, the Applicant further property or structure is used for n purpose or for assures and certifies thnt: onother purpose involving the provision of similar 14. It will cause work on the project to be commenced services or benefits. within a rensonnhle time after receipt of not,lication 9. It will comply with 'Title VI of the (:ivil Rights Act from EDA indicnline that funds h,vr been approved and of 1964 (42 USC 2000d) prohibiting- employment di.,- that the project will be prosecuted to completion with criminn6on where (1) lfte ((2�rimnry purpose of n grant in rcas011Oble diligence. to provide employment or l2) discriminnlory employment r preelices will result in unc uul lrenUnent of peranns who l�• It twill cnrnply wish the I+rnvision� oL )'rreutivr tlttirr are or should be brncliting from the grunt-aided activity. 111118, r^laming to on pinin nannnermrOt; F.iecuti%e It will r•omply with the civil right law-, listed below. Onice 11.)!, rrlritine t7, rvaln,ttun of flood 11a:arJs; TI np11 licrition Ot these. In— in described and explained Executive ittro Onlrr I I^_Oft, rrintula to the l•reveniton, in EDA's Civil llights Cuide.linrs. 1 control and ,hntrmrnt „I wntrr Pollution; Executive Order I Iu'll) rrintinr to l+mlrrlanfl Of wetlands, eau 13 n. Section 112 of Public Law 02-65 (12 U.S.C. 3121). ClAt 109.15(a), relating 10 rrpr,.11re Of the proleet to Prohibits tirx discrimination in assistance prnvided undue risk of flop, unrlrr the I'ttblic 'tVnrks rind F:conomic Drvrlopntr•nt Act of 1965, its amended, aft. It will not •Iisl1_e rif nr rnrumbrr it- rals in the ,lie iunl I.rrrlltir. .111613ge :heOt,,rrrni1eoI b. Srclion �ill•1 of the Ilrhabilila[ion Art OI 1973 f^(r II.S.C. 79.1). I'rollilrits di-crimitimi7an nr,.linsl the Federal itrlerr-1 or ,.hill till Co,ernrnent hull+ :ono-, hnndirnl+r+r l in any program or activity recrivirlg whichcvrr is the hunger. Federal (inuncial nsvistrince. 17. Cnn-tnartion financed in whol, ••r in c. Age Disrriaaination Art of 1975 (12 II,S.C. 1,102), �,rnvidrd ondrr I ill, 1\ ul the 1'ul•lic R'nrk. nrn,i f;ce7naon c Prohibits li.rr it's mat mn on tile. I+nsi- of al,,r in any )rvelopnlrnt Art ul 171n5, AN .+n+r nUr, P P, m or + rr7 uirrments ^, 1. -111 -,.-1 x11 ro rn activity receiving Federal asstrtancr. ,, f the 0-1 -11,ren 1ct, .li amrnoru l 10 ll. C. 276-1-276,-5). MOO CD-SAD (S.6S) Approval Expires January 31, 1981 ASSURANCES - Continued 18. It will have sufficient funds available to meet the non- 20. It will provide and maintain rnmpctr.nt .�nJ n,l. Federal share of the coat (or construction projects, nrcwill ural rn tneerin to ervinton and in. adequate Sufficient funds will be available when construction is R R p pection at completed to assure effective operation and maintenance Cite eonatruction rite to insure thnt the completed ..ark of the facility for the purposes constructed. conforms with the npproved plans and spcet(ications; 19. It will obtain approval by EDA of the final working that it will furnish progress reports and such other drawings end specifications before the project is information as E UA may require. P ) 21. It will operate and maintain tine facility in accordance • vertised or placed on the market for Lidding; that it will construct the project, or cause it to be constructed, with ilia minimum standards as may be renutred or Pre- to final completion in accordance wish the n licetion scribed by the applicable Federal, State and local and approved plans and specifications; that it will facilities for the maintenance and operation of such submit to EDA for prior approval changes that alter the facilities. costs of the project, use of space, or functional layout 22• It will require the fpcilitr to be dr<iened to cc-�olv teach that it will not enter into a construction contracts) for the 'American Standard Specifications :nr the project or undertake other activities until the condi- Buildings and Far.ilitirs Accessible to, a I•!t ,In"tnq lions o� the construction grant programs) have been met. n" -h lr (`1. the 1'Itvsicnlly Ilantlirapprd," `Ittmher :\-117-I-1961, as modified (dl CFR 101-17-703). •Phe applicant will be rrsponsihle for conducting insp-tctions to insure compliance with these specifications by the contractor. tC�1 CJ Si0 (S.85) Approval F Aires January 31, 1987 Port VI Section I3 Environmental Information For All Projects Item 1. Are any facilities under your ownership, lease or supervision to be utilized in the accomplishment of this project, I either listed or under consideration for listing on the EnLironmental Agency's List of Violating.Facilities? []Yes No 1 For Adjustment Implementation Projects N/A I Item 2. (a) Provide a flood plain map as EXHIBIT VI-132 in accord with Item 3(bXiii), regardless of whether an Environmental Impact Statement has been or must be prepared. (b) Is the project safe from flooding? Yes Q No (c) Is the flood insurance available? []Yes []No (d) Has flood insurance ever been purchased? Q Yes Q No FOR ADJUSTMENT IMPLEMENTATION GRANTS ONLY (Omit if previously submitted) Item 3. (a) Has a Federal, State or Local Environmental Impact Statement or Analysis been prepared Involving this property or its site? Q Yes M No I Q Copy attached as EXHIBIT VI-133 i (b) If "NO," provide the information requested in Instructions as EXHIBIT VI-133 Item 4. (a) The State Historic Preservation Officer(SIIPO)has been provided a detailed project description and has been requested to submit comments to the appropriate EDA Regional Office on 02/25/87 (date) (b) Attach a copy of material submitted to SHPO and any comments received from SHPO as EXHIBIT VI-84. (c) If a building is involved in the project, is it over 50 years old? []Yes ®No ; Item S. Is the project site(s) located within or adjacent to any of the following areas? Check appropriate box for every item i of the following checklist: YES NO UNKNOWN YES NO UNKNOWN I (1) Q Q Q Industrial (14) 0 Q Q Estuary 1 (2) Q Q Q Commercial (15) Q Q Q Wetlands (3) Q Q Q Residential (16) Q Q Q Flood plain (4) Q Q Q Agricultural (11) Q Q 0 Wilderness(designated or Proposed under the Wilderness (5) Q Q Q Mining, Quaffing Acl) (6) Q Q Q Forests (18) Q Q Q Wild or Scenic river (proeosed or designated under the Wild and , (1) Q Q Q Recreational Scenic Rivers Act) (8) [] Q Q Parks (19) Q Q Q distoricil, Archeological S.les (Listed an the ltat� al Pe�,st!r ' (9) Q Q Q Hospitals of Ilis::nc Places or r.hicl gay be eligible lot list:nq) (10) Q Q Q Schools (20) Q Q (.IIIICJI ItiDilals ridxgeieC� Aquifer Recharge Area threatened species (11) Q Q Q ' ----, Sleep Slopcs '!nn-all,unr;ent a.ca l:r iii q-311!y (13) C L; ( Wildlilc Reluge 2 ) �Q ,.refs nuts.-? MFN F.D-5IO (S-8s) RICH WITH OFYORTVNiTY BEA,[1M011* T • E • X a A • S REGULAR MEETING OF THE CITY COUNCIL BEAUMONT CIVIC CENTER JUNE 16, 2009 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-11/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider approving a contract for the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street) 2. Consider approving a bid for the construction of new tennis courts at the Athletic Complex 3. Consider authorizing the City Manager to apply for and accept grant funding through the Energy Efficiency and Conservation Block Grant Program funded by the American Recovery and Reinvestment Act of 2009 4. Consider approving a bid for air conditioning modifications at the Police Station and Julie Rogers Theatre 5. Consider approving the purchase of two modular buildings for use at Fire Station No. 1 6. Consider authorizing the City Manager to apply for and accept funding through the American Recovery and Reinvestment Act of 2009-Assistance to Firefighter's Fire Station Construction Grants Program 7. Consider approving the rate refund of Entergy Texas, Inc., to implement a New Rough Production Cost Equalization Rider filed by Entergy Texas, Inc. 8. Consider approving a contract for the Summer Food Service Program 9. Consider authorizing the City Manager to execute an Interlocal Agreement with Jefferson County Drainage District No. 6 for the Fannin Street Drainage Project 10. Consider approving a contract for the purchase and installation of Illuminated Street Name Signs WORKSESSION * Review and discuss proposed changes to the City of Beaumont Investment Policy 11. Consider approving the City of Beaumont Investment Policy PUBLIC HEARING * Receive comments related to a proposed drilling permit at 9890 Phelan 12. Consider approving a drilling permit at 9890 Phelan PUBLIC HEARING * Receive comments related to a grant application and contract with the Federal Transit Administration (FTA)to receive Operating Assistance funds for the Beaumont Municipal Transit System 13. Consider authorizing the City Manager to submit a grant application and execute a contract with the Federal Transit Administration(FTA) to receive Operating Assistance funds for the Beaumont Municipal Transit System 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 Lenny Caballero at 880-3716 three days prior to the meeting. 1 June 16, 2009 Consider approving a contract for the Magnolia Avenue Drainage and Pavement Improvement Project(Gill Street) RICH WITH OPPORTUNITY r U M City Council Agenda Item T • E • X • A S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider a resolution authorizing the award of a contract for the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street). RECOMMENDATION Administration recommends awarding the contract for the Magnolia Avenue Drainage and Pavement Improvement Project (Grill Street)to Excavators and Constructors, Ltd. of Port Arthur, Texas, in the amount of$1,803,062.60. BACKGROUND On June 4, 2009, the City of Beaumont received seven(7)bids for the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street). The street and drainage improvements are necessary to accommodate the Beaumont Housing Authority's"Hope VI" Project. The estimated cost of the project prior to receipt of bid was $2,946,851.50. The list below identifies the total bids received from the contractors. A copy of the bid tab is attached. Contractor Bid Amount Excavators and Constructors, Ltd. $1,803,062.60 SER Construction Partners, Ltd. $2,065,422.80 Reytec Construction Resources, Inc. $2,178,414.00 Williamson Construction& Equipment $2,104,345.75 Brystar Contracting $2,290,629.50 Simco Enterprises, LTD $2,351,556.00 Triple B Services, L.L.P. $2,670,666.70 The MBE goal will be met though subcontracting with MBE firms of Speciality Sales Co., American Remediation Options, Inc. and Highway Pavement Specialties, Inc. in the amount of $380,753.50 representing 21.1% of the contract amount. BUDGETARY IMPACT Funds are available through the Capital Program. f: CITY OF BEAUMONT SCHEDULE OF MBE PARTICIPATION aol NAME CERTIFIED MBE CONTRACTOR ADDRESS l TYPE OF WORK - AGRF,ED PRICE D..oa The undersigned will enter into a formal agreement with MBE Contractors for work listed in this schedule conditioned upon execution with the City of Beaumont. p of a contract NOTE: 1. This schedule should be submitted with your bid. SIGNNAT l:�ETt�e���Gl+�rntE2� TITLE - 5 - 9 i 0 CITY OF REAUM NT BID TAB GILL STREET DRAINAGE AND PAVEMENT IMPROVEMENT PROJECT EX-S -TRUMI 1� SIR CONSTRU-N PARTIE, R-EC W111-101 I E SOU BC 11L LIAIS11 11-17UN ITV IT, NC E_'MCNT 511111 1--( SI-0 ENTE1111111 I 1ER-TS,I L I IT-N� IT "T"AIII T-I NIT"'[ T.T-I INIT 1- N"P-1 I TOTAI lES-PTUN -N T" UNIT IRICE T.TAI -TI-I 1-1 --T MCI T.-I -1 11 .-CN1. 11 $2,49- 12,- ISIDMAL�L ly Z. S3 n0 51,296.. 5+00 51,]28. 53 x40[0 51500 55,61600 IE--ll-FUAVI-TXl 11 o S,II 1150 `.64ea 4,C 51301 MI0 Sg M c�..........-1", 11 S.o - - -- $711 M s- 520 S2,-�U $13.01 -'NT, ..0� UT - 104 10 '_1 IIAIIIAVI.INTI 11 -,00 1- $14 54.11 5"'. 51 E U. 0� 11 Illoo sl,5 $11- 54.10 -N s- S. IlAl-All 3 D, - U $is w .1,- 114. 544,225.01 W 511,8]0 $21 5 Il,-DI 120 Z-1. $1.. $12 $,,U 510,x00.00 Se IN ,02 10 12 11 5' $,m U.-NI oc616'rlxll0cl 5100 $1,655.00 51804 $29,1. 534.00 $13,110 SU,,U,W 55.00 58,x15.00 5ss.10 51+,ers la 55.00 58.2)511 101 11.1 T11ATEDIU.-I ly 6 777.00 $,- .2.3Y.40 540,66240 59.50 $14,1.111 $IT $74,511 DI Ss Oa 540,66x.10 45F IPUM wxilcc 111ty All-U'll"1 $10.50 513,111 S2B.0o 5VJ-0 530. $12,110-$30,n36. 530.00 532,610 11 $21,11U A,,.,, 11011v11021111 Il�1 ly I,- $20.M." 523. 71 $1..1 -,834 00 53200 $,.,- 515.x0 $18,43711 '--Ti31 301811 ----- -- - W.. $-,3-20 5112.792 M 544 5132,79201 $,, $-'- I129114 -1 -T-I DE-P ACVOE-NTE11 11 -, --- - - $-'- NTU4 80C-$UI1, $33 $126 531. 51 540.00 ...IU). 13�10 ,I� 14 s-.1 $39 54310 'U"- -1 1U--,(, $" $11..]0 141. , U), 57- S1,10 20 54'1' 581100 $11U.x 12,-11 553.51 51.x46.51--- - -I' 595000 5100.00 UU �I- y IN, -'. 552 $U,- "U,m S29 Stoo 10 516,660.00 SIT,- ST-ML F-T-IT9ENCglleaxa-IT 1 7,- 0 $311M.x 56.50 5505]000- - 1-1 53112000 510, 117,-- $62,241 W $ "NUN, W $41 $-,- - $3- Sl8 515x,1211 530., 5120.1.0.00 53610 ID ,11, LI -II 51 --- - 507 U. 5 1,112 U0 510.. 54,.]0.00 5311 51pst.o0 gbrxr c-," Ll 1.11 $311.x0 $515,x1. 12.6 5113121 5315.. 16205696100.00 $614 M m 51%2.O0 5x19,.00 552.00 11%- 12 J- _464 112 11 5700 -- 53x_ 11 1. 3, Is IS Is,IS IS IS IS$ I.,Is IS I's —So 1.15 —.," — 1 4� —IES M III ~' IIII'M 1.5 o o- ~' IOTAI .G v �G m s—Go m— s2oo. s—CG GO 5G,—GO 5—G OG GO 1 53 wo no TOTIL CONT—.1.1 sL—W'.I sljlG,-GO 71 5�,—,121 IG $2,351,556 GO 52,670,666 70 RESOLUTION NO. WHEREAS, bids were solicited fora contract for the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street); and, WHEREAS, Excavators and Constructors, Ltd., submitted a bid in the amount of $1,803,062.60; and, WHEREAS, City Council is of the opinion that the bid submitted by Excavators and Constructors, Ltd., should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by Excavators and Constructors, Ltd., in the amount of $1,803,062.60 forthe Magnolia Avenue Drainage and Pavement Improvement Project(Gill Street) be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - 2 June 16, 2009 Consider approving a bid for the construction of new tennis courts at the Athletic Complex RICH WITH OPPORTUNITY BEA,UMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works WG MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider the award of a bid for construction of tennis courts. RECOMMENDATION Administration recommends the award of a bid to McInnis Construction in the amount of $1,156,900 for furnishing all materials, labor, equipment and supplies for the construction of eight (8) tennis courts and additional parking at the Athletic Complex. BACKGROUND Six (6) bids were received on Thursday, June 4, 2009 to furnish all labor, materials, and equipment necessary to construct eight tennis courts and additional parking at the Athletic Complex located on College Street. The construction of the eight courts will complete Phase I of the master plan developed by Richter Architects for the tennis complex. Phase II and III include the construction of a new pro shop/clubhouse and covered courts. The following bids were received: Contractor Base Bid Alt. Completion Time McInnis Construction $1,105,000 $51,900 120 days Silsbee, TX General Contractor Services $1,269,000 $80,000 150 days Houston, TX Bruce's General Construction $1,340,000 $42,000 150 days Beaumont, TX i I Tennis Courts June 9, 2009 Page 2 Contractor Base Bid Alt. Completion Time Brammer Construction $1,528,773 $37,922 150 days Nederland, TX Allco $1,571,800 $48,762 190 days Beaumont, TX N & T Construction $1,549,900 $93,000 180 days Beaumont, TX At the request of the architect, the alternate bid for the excavation of an additional 1 ft. of soil is recommended to provide further stabilization to the foundation. The low bid submitted by McInnis Construction includes subcontracting 6% of the work to a City certified Minority Business Enterprise (MBE). The project should commence by mid July and be completed by January 2010. BUDGETARY IMPACT Funds for this project are available in the Capital Program. RESOLUTION NO. WHEREAS, bids were solicited for furnishing all materials, labor, equipment and supplies for the construction of eight(8)tennis courts and additional parking at the Athletic Complex; and, WHEREAS, McInnis Construction of Silsbee, Texas, submitted a bid in the amount of$1,156,900; and, WHEREAS, City Council is of the opinion that the bid submitted by McInnis Construction of Silsbee, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by McInnis Construction of Silsbee, Texas, in the amount of $1,156,900 for furnishing all materials, labor, equipment and supplies for the construction of eight(8)tennis courts and additional parking at the Athletic Complex be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - 3 June 16, 2009 Consider authorizing the City Manager to apply for and accept grant funding through the Energy Efficiency and Conservation Block Grant Program funded by the American Recovery and Reinvestment Act of 2009 RICH WITH OPPORTUNITY BEA,UMON* T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the City Manager to apply for and accept grant funding through the Energy Efficiency and Conservation Block Grant (EECBG) Program funded by the American Recovery and Reinvestment Act (ARRA) of 2009. RECOMMENDATION Administration recommends authorizing the City Manager to submit an application and to accept grant funds through the EECBG program funded by ARRA. BACKGROUND The EECBG program funded by the Reinvestment Act represents a Presidential priority to implement the most reliable energy technologies for energy efficiency and conservation throughout the United States. The funds are intended to assist cities to develop, promote, implement and manage energy efficiency and conservation projects and programs designed to reduce fossil fuel emissions; reduce the total energy use of the eligible entities; improve energy efficiency in transportation and building; and create and retain jobs. Beaumont is eligible for a direct formula grant in the amount of$1,104,200. Cost sharing is not required, however leveraging of funds by grantees is encouraged in order to maximize the total additional energy-related benefits resulting from the program. If approved, the grant funding will be used to install HVAC automation controls in the Civic Center, City Hall, Police Building, Julie Rogers Theatre, Tyrrell Historical Library, Municipal Court and the Main Library; replace the original windows installed in 1927 at the Julie Rogers Theatre with Low E insulated glass windows and fund the cost of an energy management study of all City facilities. BUDGETARY IMPACT This grant requires no matching funds from the City. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to apply for and accept grant funding through the Energy Efficiency and Conservation Block Grant (EECBG) Program funded by the American Recovery and Reinvestment Act (ARRA) of 2009 to be used to install HVAC automation controls in the Civic Center, City Hall, Police Building, Julie Rogers Theatre, Tyrrell Historical Library, Municipal Court and the Main Library; replace the original windows at the Julie Rogers Theatre with Low E insulated glass windows; and fund the cost of an energy management study of all City facilities. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - 4 June 16, 2009 Consider approving a bid for air conditioning modifications at the Police Station and Julie Rogers Theatre RICH WITH OPPORTUNITY [I 11C City Council Agenda Item T - E - X - A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Worksli�b MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider the award of a bid for air conditioning modifications at the Police Building and Julie Rogers Theatre. RECOMMENDATION Administration recommends the award of a bid to Commercial & Institutional Mechanical, Ltd. in the amount of$640,000 for modifications to the air conditioning system located in the Police Building servicing both the Main Library and Julie Rogers Theatre. BACKGROUND The City contracted with Galewsky and Johnston Consulting Engineers, Inc. to design a new chilled water system to replace the obsolete unit currently located within the Police building. The 390 ton chilled water system services the Police Building, the Main Library and 30% of the Julie Rogers Theatre. Two chillers were ordered in December and have been delivered. The new units will be installed outside of the Police Building. This project includes the installation of the new chillers, replacing and insulating the chilled water piping, and replacing the circulating pumps and valves in the Police Building. Components to be replaced at the Julie Rogers Theatre include the air handler, hot and chilled water coils, three pumps and piping. The new 520 ton chilled water system will provide all heating and air conditioning to the Police Building, the Main Library and 90% of the Julie Rogers Theatre. The new chilled water system will reduce energy consumption and maintenance and repair costs. The following bids were received: Modifications to Chilled Water System June 9, 2009 Page 2 Contractor Base Bid Commercial and Institutional Mechanical, $640,000 Ltd. Kountze, TX Gowan, Inc. $671,342 Houston, TX JMC Mechanical, Inc. $726,789 Mauriceville, TX There is no Minority Business Enterprise (MBE)participation on this project. All work will be performed by the contractor. Work must commence within two weeks and be completed by August 31, 2009 so as not to conflict with scheduled events at the Julie Rogers Theatre. BUDGETARYIMPACT Funds are budgeted in the Capital Program for this project. RESOLUTION NO. WHEREAS, bids were solicited for air conditioning modifications at the Police Building and Julie Rogers Theatre; and, WHEREAS, Commercial & Institutional Mechanical, Ltd., of Kountze, Texas, submitted a bid in the amount of$640,000; and, WHEREAS, City Council is of the opinion that the bid submitted by Commercial & Institutional Mechanical, Ltd., of Kountze, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THATthe bid submitted by Commercial&Institutional Mechanical, Ltd.,of Kountze,Texas, for air conditioning modifications at the Police Building and Julie Rogers Theatre in the amount of $640,000 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - ' 5 June 16, 2009 Consider approving the purchase of two modular buildings for use at Fire Station No. 1 RICH WITH OPPORTUNITY 11EM . � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warne, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider approval of the purchase of two modular buildings for use at Fire Station No. 1 located at 747 College. RECOMMENDATION Administration recommends approval of a purchase of two modular buildings through the Houston-Galveston Area Council (H-GAC) from Ramtech Building Systems in the amount of $82,890. BACKGROUND Fire Station No. 1 has sustained considerable foundation failure due to existing soil conditions and its proximity to a metal foundry. There has been considerable movement in the structure's walls resulting in doors not closing and the separation of interior walls. The east wing of the station which houses the restrooms, shower facility, weight room and sleeping quarters has significant damage that cannot be repaired without demolishing the structure and installing a new structurally engineered foundation. Rebuilding this station would not be cost effective since there are plans to replace and consolidate this station within a Fire Department Complex in the 2010-2014 Capital Program budget. After consulting with the Fire Chief and the staff of Station 1, it was determined that modular buildings placed adjacent to the station could temporarily provide the firefighters with a comfortable living environment. After reviewing several options, a 12' x 36' shower/restroom modular building and a 24' x 32' classroom building was recommended. The shower/restroom building will be placed on the south side of the fire station. The classroom building will be placed in the west parking lot and the classroom currently located within the station will be converted to sleeping quarters. The buildings will be delivered in 90 days. The Building Services Division will provide all utility connections. BUDGETARY IMPACT Funds are available in the Capital Reserve Fund. 4 318° 31'-3 1/4" 4 3/8" m cF+b�1L1®D. i TAGKW. oin Q _ n - - - - - - de Q m N ~ m v 20'-03/4" 12'-034" 2_834 O'REF FLOOR PLAN tv n X N ci V I I I I I 7 `\ \ i r- -�`------------- -------------- #� - -------4-, I I I i > oe- � I I I I I X I I I RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of two (2) modular buildings in the amount of$82,890 from Ramtech Building Systems through the Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Program for use by the Fire Department. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - 6 June 16, 2009 Consider authorizing the City Manager to apply for and accept funding through the American Recovery and Reinvestment Act of 2009-Assistance to Firefighter's Fire Station Construction Grants Program RICH WITH OPPORTUNITY IIEW A,[I 1�1 U1 I I ( T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Anne Huff, Fire Chiefu*__ MEETING DATE: June 16, 2009 REQUESTED ACTION: Consider authorizing the City Manager to apply for and accept funding through the FY 2009 A.R.R.A. Assistance to Firefighter's Fire Station Construction Grants Program. RECOMMENDATION Administration recommends Council authorize the City Manager to submit an application and to accept a grant from the A.R.R.A. Assistance to Firefighters Fire Station Construction Grants for the construction of fire stations outlined in the City's Capital Program for Fiscal Years 2009 through 2013. BACKGROUND The American Recovery and Reinvestment Act (A.R.R.A) of 2009 (Public Law 111-5)provided the Department of Homeland Security with $210 million to fund the construction of fire stations. This funding is part of President Obama's stimulus package and is intended as a one-time opportunity. The FY 2009 Capital Program includes relocations of Fire Stations No. 2,No. 1, No. 7, and No. 11. Strategically re-locating each of these facilities will provide more uniformed emergency response coverage City-wide, and will replace facilities that have become comparatively obsolete due to age and other structural issues. BUDGETARY IMPACT The A.R.R.A. Assistance to Firefighters Fire Station Construction Grant has no matching requirements on the part of the City, but there are costs that are not eligible to be funded by the grant such as land acquisition, landscaping, furniture, exercise equipment, security systems, among others. These costs related to Station No. 2 will be approximately$500,000 of the estimated $2.5M project. The total estimated cost for relocating Station No. 1 is estimated to be between $8M and $1 OM. The maximum amount the grant will fund is $5M. Although the costs to construct Station No. 7 and Station No. 11 are estimated at $2.5M each, land costs are unknown, therefore, the City will incur the same costs estimated for Station No. 2 of$500,000 each in addition to land acquisition which is unknown at this time. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to apply for and accept grant funding through the FY 2009 American Recovery and Reinvestment Act Assistance to Firefighters Fire Station Construction Grants Program for the relocation and construction of Fire Stations No. 1, 2, 7 and 11. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - I 7 June 16, 2009 Consider approving the rate refund of Entergy Texas, Inc., to implement a New Rough Production Cost Equalization Rider filed by Entergy Texas, Inc. RICH WITH OPPORTUNITY [I 17C A► � T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attomx_- MEETING DATE: June 16, 2009 REQUESTED ACTION: Consider an ordinance approving the rate refund of Entergy Texas, Inc., to implement a New Rough Production Cost Equalization Rider filed by Entergy Texas, Inc., on May 26, 2009. RECOMMENDATION Administration recommends approval of an ordinance approving the rate refund of Entergy Texas, Inc., to implement a New Rough Production Cost Equalization Rider filed by Entergy Texas, Inc., on May 26, 2009. BACKGROUND On May 26, 2009, Entergy Texas, Inc., filed an Application with the City of Beaumont for Authority to Implement a New Rough Production Cost Equalization Rider to more equally allocate production cost payments for all Entergy operating companies. In 2005, the Federal Energy Regulatory Commission adopted a remedy which Entergy has since incorporated into a system agreement which provides for the equalization of production costs among all Entergy operating companies. Should any disparity in system average production costs fall outside of a +/- 11%bandwidth, payments will be made by the low cost companies to the high cost companies such that all operating companies come within the 11%bandwidth. The Entergy Texas operating company's costs were substantially higher than system average production costs requiring a refund to Texas customers. The total projected refund to Texas retail customers is $67.4 million over a three (3) month period. Residential customers will receive between $12.71 and $14.79 per 1000 kilowatt hours per month for three (3) months. It is intended that the refund would be received during the summer months. The application has been reviewed and is recommended for approval. ORDINANCE NO. ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY") APPROVING THE RATE REFUND OF ENTERGY TEXAS INC. CONTAINED IN THE APPLICATION OF ENTERGY FOR AUTHORITY TO IMPLEMENT NEW RPCEA RATE FILED BY ENTERGY TEXAS, INC. ON MAY 26, 2009; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about May 26, 2009, Entergy Texas, Inc. ("ETI") filed an Application for Authority to Implement New Rough Production Cost Equalization ("RPCEA") Rider ("Application") with the City to refund to customers rough production equalization receipts for ETI's Texas service territory; WHEREAS, the RPCEA rates are anticipated to refund $13.24 in July, $12.71 in August, and $14.79 in September for average residential customers using 1000 kWh per month of electricity; WHEREAS, the rough production cost equalization receipts were received by ETI in 2008 pursuant to an order of the Federal Energy Regulatory Commission ("FERC"). The FERC determined that the Entergy System Agreement no longer operated to maintain the production costs of the various Entergy operating companies within a reasonable level of parity. As a remedy, FERC implemented a Rough Production Cost Equalization system as part of the Entergy System Agreement. The remedy requires payments among the Entergy Operating Companies whenever an operating company's production costs are greater or less than a percentage of the system average production costs. For 2007, Entergy Arkansas, Inc.'s ("EAI") production costs were substantially below system average production costs. FERC ordered EAI to make 1 payments to the other operating companies in order to roughly equalize the production cost disparity; WHEREAS, ETI calculates the total rough production cost equalization receipts from EAI due to Texas retail customers to be $67.4 million and such amount is subject to future adjustment; WHEREAS, the RPCEA is designed to refund the amounts calculated by ETI to be currently due in a timely manner over the summer of 2009; WHEREAS, the law firm and consultant hired by City have reviewed the Application, find it to be sufficient, and recommend the Application's approval; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. Section 2. The City of Beaumont hereby approves the refund rates established in ETI's Application. Section 3. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 2 Section 4. This Ordinance shall become effective from and after its passage. PASSED AND APPROVED this 16th day of June, 2009. - Mayor Becky Ames - ATTEST: Tina Broussard City Clerk 3 8 June 16, 2009 Consider approving a contract for the Summer Food Service Program Ri(111 W11ft 0 11 11 0 R FLNITY 17L A► ( T • E • X • A • S Cit y g Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the award of a contract for the Summer Food Service Program. RECOMMENDATION Administration recommends the award of a contract to Moncla's Inc., of Beaumont, Texas, in the amount of$3.29 per lunch served. BACKGROUND The program, which is funded by the US Department of Agriculture and administered by the Texas Department of Agriculture, provides free, nutritious, and well-balanced meals for any child up to eighteen (18) years of age. This is the eighteenth year the Recreation Division has participated in this program. The 2009 Summer Food Service Program will begin June 15, 2009 and continue through August 14, 2009. Lunches will be served Monday through Friday excluding the Independence Day holiday on July 3, 2009. The number of lunches to be served at each location will be determined by the enrollment in summer activities although participation is not a requirement to receive a lunch. Last year, 34,709 meals were delivered by Moncla's Inc., at a cost of$3.14 per lunch for a total of$108,986.26. Lunches were served for forty-nine (49) days last summer at nine (9) locations. This year's program includes an additional location at Central Park. Award of Summer Food Program Contract June 16, 2009 Page 2 The ten (10) locations are as follows: SITE ADDRESS Central Park 640 Fourth L.L. Melton Y.M.C.A. 3455 Sarah Sprott Park 4325 Usan Roberts Park 2755 Avenue C. Alice Keith Park 4050 Reed SE TX Family Resource Center 2060 Irving Magnolia Park 2930 Gulf Tracewood Apartments 4925 Concord North Ridge Apartments 4155 Maida Concord Homes Apartments 2020 Cottonwood Bids were solicited from seven (7) food service vendors and the sole bid from Moncla's Inc., was in the amount of$3.29 per lunch. BUDGETARY IMPACT The estimated total cost based on serving an estimated 52,888 lunches at $3.29 each is $172,414.88. This increase in the estimated number of meals for this year's program is due to the added location and also to the completion and full occupancy of the Hope VI Housing Project located near the Sterling Pruitt Center. The cost of$2.88 per lunch served will be reimbursed to the City from the Texas Department of Agriculture. The balance of$.41 per lunch will be funded by the Recreation Division's operating budget. City of Beaumont 2008 Summer Food Program Page 1 of 1 RICH WITH OPPORTUNITY r Fun C 00 T e E X A S -a son 1 L `` ■ ■ with the 0 ■ W W •s 1w w !w s sss� ws! ♦was ■_w wsw ws�4ww® ■ . Summer Food Progrom — City of Beaumont Parks &Recreation Division wwvd.statr,merf°«a°rg 2009 Summer Food Program r")r t Sponsored by: The Texas Department of Agriculture: Meals will be provided at the sites(s)and times below.In accordance with Federal law and USDA policy,this institution is prohibited from discriminating on the basis of race,color, national origin,sea,age or disability a _ i C ? ` _151: a 2^.a 31 - { '6Y# � x9., 8 ' r r±—�a � x¢'..: '4 a '� ,5. 1 -d�.�%a,x .•� p �� �^n x'9 rws v xR n}i8p l Lfl 111111\, 111 11/1 111 01 4 411!! \l/ll4Cl\l• e-mad flemellCa ci.beaumont.tx.us 18 years awl raider rvlondav thru Fridav, mhttnl:file:HC:\Documents%20and%2OSettings\sara\Local%2OSettings\Temp\notesE6A98... 6/12/2009 RESOLUTION NO. WHEREAS, bids were received for a contract to furnish lunches for the Summer Food Service Program funded and administered by the U.S. Department of Agriculture, and sponsored by the Recreation Division; and, WHEREAS, Moncla's, Inc., Beaumont, Texas, submitted a bid for an estimated quantity of 52,888 lunches served in the amount of $3.29 per lunch for an estimated expenditure of $172,414.88; and, WHEREAS, City Council is of the opinion that the bid submitted by Moncla's, Inc., Beaumont, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THATthe bid submitted by Moncla's, Inc., Beaumont,Texas,forthe Summer Food Service Program administered through the Recreation Division for an estimated quantity of 52,888 lunches served in the amount of $3.29 per lunch for an estimated expenditure of $172,414.88 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - 9 June 16, 2009 Consider authorizing the City Manager to execute an Interlocal Agreement with Jefferson County Drainage District No. 6 for the Fannin Street Drainage Project RICH WITH OPPORTUNITY [1EA11140N* T • E `. x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Interlocal Agreement with Jefferson County Drainage District No. 6 for the Fannin Street Drainage Project. RECOMMENDATION Administration recommends Council authorize the City Manager to execute an Interlocal Agreement with Jefferson County Drainage District No. 6 for the Fannin Street Drainage Project. BACKGROUND FEMA awarded the City a Flood Mitigation Assistance(FMA) Grant in the amount of $2,942,748.38 for the construction of the Fannin Street Drainage Project. The total estimated construction cost of the project is $6,300,000. The City desires to construct a portion of this project within the District's Fannin Street easement and right-of-way. A concrete lined drainage ditch will be constructed within the District's easement and right-of-way from just west of Eleventh Street to Interstate 10. The completed concrete lined ditch will be maintained by the District. A copy of the agreement is attached. BUDGETARYIMPACT Funds for the project are available in the Capital Program. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute an interlocal Agreement with Jefferson County Drainage District No. 6 for the Fannin Street Drainage Project. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - INTERLOCAL AGREEMENT STATE OF TEXAS . COUNTY OF JEFFERSON This Interlocal Agreement ("the agreement") is entered into between the City of Beaumont, a municipal corporation of Jefferson County, Texas (hereinafter referred to as "City") and Jefferson County Drainage District No. 6, a special district of the State of Texas (hereinafter referred to as "District"). Both entities are authorized to enter into interlocal agreements in accordance with Title 7 of the Government Code of the State of Texas (Vernon 1996) Section 791.001, et seq. The City and the District agree as follows: WITNESSETH FEMA awarded the City a grant of$2,942,784.38 for the construction of the Fannin Street Drainage Project. The project has a total estimated construction cost of$6,300,000. The City desires to construct a portion of this drainage project within the District's Fannin Street easement and right-of-way. A concrete lined drainage ditch will be constructed within the District's Fannin Street easement and right-of-way from just west of Eleventh Street to Interstate 10. The City and District have agreed to share the workload and cost of this project on the following basis: 1. The City will be responsible for all cost of engineering, design, coordination (to include bidding, letting of materials and construction contracts); construction, and project management for this project. 2. The District will be responsible for the maintenance of the concrete lined ditch after the completion of the project. EXHIBIT "A" Executed this day of 22009. ATTEST: THE CITY OF BEAUMONT By: By: City Clerk City Manager ATTEST: JEFFERSON COUNTY DRAINAGE DISTRICT NO. 6 By: By: Vice-Preside t/ ecretary President to June 16,2009 Consider approving a contract for the purchase and installation of Illuminated Street Name Signs RICH WITH OPPORTUNITY IIEA,111�10111 City Council Agenda Item T E • X • A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider authorizing the award of a contract for the purchase and installation of Illuminated Street Name Signs. RECOMMENDATION Administration recommends the award of a contract to Southwest Signal Supply, Inc., of Houston, in the amount of$810,867.20. BACKGROUND On April 13, 2009 the City of Beaumont received 3 proposals for the supply and installation of approximately 416 Illuminated Street Name Signs. This was a best value bid that ranked the proposals on price, as well as, ease of maintenance, installation time, warranty repair time, availability of replacement parts, and appearance. Subsequently, the proposal with the lowest price also scored the highest best value rating. Price and best value score are detailed in the table. Bidder Unit Cost Total Est. Cost Total Score Republic ITS (Quantumlite) $2,500 $1,040,000 53.3 Republic ITS (Lighting Technologies) $3,018 $1,255,488 61.67 Southwest Signal Supply, Inc. $1,949.20 $810,867.20 72 The engineering estimate is $1,400,000. The best value bid tabulation is attached. BUDGETARY IMPACT Funds for the purchase of this equipment are included in the Capital Program. Bidder Southwest Republic ITS Republic ITS Signal So. Grand Prairie, Grand Prairie, Houston, TX TX TX (Quantumlite) (Lighting Technologies) 1. Price 20 13.3 6.67 2. Delivery Time 0 12 12 3. Repair/Replacement Time 4 16 16 4. Consistent Appearance with Existing 16 0 16 5. Overall Appearance 16 0 11 6.Ease of Maintenance 16 12 0 Final Tally 72 53.3 61.7 RESOLUTION NO. WHEREAS, bids were solicited for a contract for the purchase and installation of illuminated street name signs; and, WHEREAS, Southwest Signal Supply, Inc., of Houston, Texas, submitted a bid in the amount of $810,867.20; and, WHEREAS, City Council is of the opinion that the bid submitted by Southwest Signal Supply, Inc., of Houston, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by Southwest Signal Supply, Inc., of Houston, Texas, for a contract for the purchase and installation of illuminated street name signs in the amount of$810,867.20 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - I WORKS S SION * Review and discuss proposed changes to the City of Beaumont Investment Policy 11 June 16, 2009 Consider approving the City of Beaumont Investment Policy III(- If 1.8I'I If OPP0111 I'LSII ) [111EA► � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer y"' MEETING DATE: June 16, 2009 REQUESTED ACTION: Council consider a resolution approving the City of Beaumont Investment Policy. RECOMMENDATION The Administration requests a review of the City of Beaumont Investment Policy and approval as attached. BACKGROUND State law mandates the City Council review the Investment Policy and approve modifications, if any, to the policy on an annual basis. On April 28, 2009, by Resolution 09-115, City Council approved entering into an agreement with Valley View Consulting, LLC, for investment management services. Consultants with Valley View have thoroughly reviewed the City's investment policy and have recommended modifications to it. The recommended revisions are highlighted in the attached policy. The revisions add language which clarifies the policy as recommended by the Public Funds Investment Act. The Investment Policy was last amended on November 18, 2008. BUDGETARY IMPACT None. I RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City of Beaumont Investment Policy, substantially in the form attached hereto as Exhibit"A," has been reviewed and is hereby in all things adopted. All changes to the policy are reflected therein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of June, 2009. - Mayor Becky Ames - Cloty of Beaumont RICH WITH OPPORTUNITY IIEA,111�ICIN14( T - E - X - A - S Investment Policy I Proposed I Adopted Resolution of City Council on June 16, 2009 City of Beaumont-Investment Policy Table of Contents I. Introduction....................................................................................................................I II. Scope.................................................................................................................................1 III. Prudence..........................................................................................................................1 IV. Objectives........................................................................................................................1 A. Safety of Principal. B. Liquidity..............................................................................................................2 C. Yield.....................................................................................................................2 V. Delegation of Authority.............................................»..................................................2 VI. Ethics and Conflicts of Interest....................................................................................3 VII. Training...........................................................................................................................3 VIII. Selection of Financial Dealers,Institutions and Investments Pools ......................3 A. Broker/Dealers...................................................................................................4 B. Public Depositories............................................................................................4 C. Investment Pools................................................................................................5 IX. Authorized and Suitable Investments.............»....................................»....................5 X. Marking to Market............................... ., XI. Collateralization.............................................................................................................7 XII. Safekeeping and Custody..............................................................................................8 XIII. Diversification.................................................................................................................8 XIV. Investment Strategies....................................................................................................9 ii A. Pooled Fund Groups........................................................................................ lil B. Debt Service Funds ........................................................................................ 1 I C. Debt Service Reserve Funds......._..............»..»..._.._.._......_......................... 12 XV. Internal Control.......................................................................................................... 12 XVI. Performance Standards........................................................................................... 13 XVII. Reporting..................................................................................................................... 13 XVIII. Investment Policy Adoption...................................................................................... 13 Exhibits Exhibit A -Approved List Broker/Dealers.............................................................................A I Exhibit B-Certification By Business Organization .............................................................BI iii City of Beaumont Investment Policy I. Introduction It is the policy of the City of Beaumont to invest public funds in a manner which will ensure that the investments are duly authorized, properly managed, adequately protected and fully collateralized. The Cir< shall seek the o finnun investment return with the nnam.mum security Deleted: highest while meeting daily cash needs and conforming to the City Charter. the Public Funds Investment Act (Chapter 2256_ Government Code as amended) and all other state and local statutes eoverning the investment of public funds. II. Scope This Investment Police applies to all financial assets of the CAN as accounted for in the City's Comprehensne Annual Financial Report. These include General. Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service and Fiduciary Funds. All are pooled for investment purposes except debt service and debt service reserve funds. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care,under prevailing circumstances,that a person of prudence,discretion,and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The"prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent with this investment Policy. Investment Officers acting in accordance with written procedures and the Investment Policy and exercising due diligence shall be relieved of responsibility for an individual security's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the Citv's investment activities shall be preservation and safely of principal.liquidity,yield and public trust. 1 A. Safety of principal The City has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order to eliminate an over-concentration of assets in one institution,maturity or type of security. B. Li uidi The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with forecasted cash flow requirements and limited by investments in securities with an active secondary market. C. Yield The City's investment portfolio shall be designed with the objective of attaining a rate of return which is consistent with risk limitations and cash flow characteristics of the Citv's investments. D Public Tiust In\estinent Officers shall seek to act responsibly as custodians of the public trust. lnvestrnent Officers shall avoid any transaction that might impair public confidence in the Oh's ability to eovem effectiveh V. Delep-ation of Authority Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds,investments,bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this Investment Policy which include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. I lie itN N1111 ,er_ the Chief F inanci.1l t 411rer and the City COmu()ller are currtintll, Al)pi cd us Inv cstin nt (lthcci,o the C iu. Fach itwestinent t p,t;, shall be approved by resolution of City Council to ingest the City funds Stich approval of specific 2 persons shall remain in effect until rescinded by the Cite Council or until termination of the person's employmient by the City. Investment Officers shall not deposit_withdraN\. transfer or manage the funds of the CAN in a manner that is not consistent with the "prudent person"standard as described in section III of this Police. The CON Council maintains the-right to lure hn\_estment Advisers-to assist City staff in the investment of funds. Investment Advisers shall adhere to the spirit, nhiloscophN and specific terms of this Police and shall invest within the same objectives. The City Manager shall establish criteria to evaluate Intl estment Ad%tsers_including: 1. Adherence to the Citv's mAicies and strategies. 2. Investment strategy recomrnendations within accepted risk constraints: 3. Ices owji_eness_to the CitN's request for services and inhumation, 4. 1.1nderstanding of the inherent fiduciary responsibilm of mx_estim-, public funds:and 5. Similaritl in philosopht and strategy with the Cily-s objectives. Selected In\estmnent Advisors must be registered under the Investment Advisers Act of 1940 or with the State Securities Board_ A contract with an Investment Adviser may not be for a term longer than two years and any contract. renewal or extension nnist he apprm ed he the_C_lty Council VI. Ethics and Conflicts of Interest Investment Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment Officers shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City . They shall also disclose any specific individuals who seek to sell investments to the City and are related to the Investment Officer within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council. VII. Training In order to ensure qualified and capable investment management, each Investment Officer of the City shall attend at least ten(10)hours of training relating to investment responsibilities within 12 months after assuming such duties and shall continue to attend an investment training session not less than once every two years thereafter consisting of at least ten(10)hours of instruction. Training shall be in accordance with the Public Funds Investment Act and include education in investment controls,security 3 risks, strategy risks, market risks, and compliance with state statutes governing the investment of public funds. All training shall be conducted by an independent source which has been approved by City Council. The approved "independent sources" to provide such training are: the Government Treasurers Organization of Texas, the Government Finance Officers Association of Texas, the Texas Municipal League, and the University of North Texas. VIII. Selection of Broker/Dealers Financhd Institutions and Investment Pools Authorized investments shall only be purchased from those institutions selected_and a ullrov-ed in accordance vy Itli thl. 1`olicv . Any organization which seeks to execute investment transactions with the C1tC shall provide a v\ritten instrument certifying that they lime received and thoroughh- re\iev\ed the City's Investment Police and have implemented reasonable procedures and controls in an effort to preclude investment transactions that are not authorized by this Policy-. The certification_as shown bN_ example_m E.thibit B must be signed by a qualified representative of the business organization. Investment Officers shall not buy any securities from a till of makc dc�losits VA-Itl1 a tull,d_ pool of tlnallcla,l 111stitLitwo which has not tiled this instrument. Each time Ciq Council approves a material revision to the Investment Policy, the certification should be sent to the approved business organizations along with the newly revised Investment Polity. A. Broker/Dealers The Cit-, shall select broker/dealers bN the ahilit} to provide effective market access and ma-, include 'Primary Government Securities Dealers" or regional dealers that qualif\- under Securities and Exchange Commission (SEC) Rule 1503-1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the l_inanclal Institution he ulatwly Authority i-HINk a_ and be licensed by the State of Texas. Each broker/dealer vv ill be reviewed bv In\estment Officers and a recommendation made for approx al by City Council. Au 'approved hroker/dealer list". as shovyn in Exhibit:4. shall he maintained by the mestmcnt at all times and revievyed by the City Council ou an annual basis ....-. ...._....._._.... 111c City shall not enter into transactions vyith a hroker/dealer until official l_� CUURCIl apprt \al. B. Public Depositories;l-in_ui�--Lal Irnstinal"n" The City Council shall select a primary depository as required by lavv. The primary depositor-as authorized by the City Council shall meet all requirements 4 of the state law concerning depositories for municipal funds (Chapter 10-5. Government Code) The priniary depositol\ ?!I,: and offer the most fit\orable terms and conditions for the handling of City funds The City may also establish agreements with other financial institutions tinder separate contract for additional services which are necessary in the adnimistrati0ii, collection, investment_ and transfer of municipal funds. Such deposits NNIII only be niade after the financial iuStItUtloll has completed andreturned- the required %N ritten instruments and depository p1cligle aareements.. No deposit shall be made except in a qualified public depository as established by State Law. Deleted: The Citv"I not place deposits or investments Aith C. InN estnient Pools Saving and Loan Associations or Credit Unions. Investment Officers may invest funds of the through C ty an eligible investment City pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular which contains specific and detailed information, investment transaction confirmations, and detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing participants and non-participants who do not have a business relationship with the pool. Before selection, pools shall be thoroughly reviewed and evaluated by Investment Officers. IX. Authorized and Suitable Investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. Suitable investments for the City are limited to the following: 5 ♦ Direct Obligations of the United States or its agencies and instrumentalities which lime a maximum stated matrtrit, date of 5 \ears or less. Federal agencies and instrumentalities which do not carrn the explicit U.S. Government guarantee must he continuously rated no lower than AAA/A-1 or an equivalent rating by at least one nationally recognized rating agency. ♦ Financial institution deposits Oaced vv-nth approved banks as described above (section VIII-I3) which ha'l e a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit insurance Corporation_or their successors; or secured as described in section XI Collateralizatio 1. Addiuonalh. the Cite all`, C Ccule CCI(Iticate� of 'lei)LsIt ttuou.!h_.1 de 1o,ltolA IR,titutloll that has Il, 1111111 +'I iCc )I a branch office rn Texh {flat_)antcipates In the C'ertlficatc of Derosa Account KeLnstl, Selvlce J I)AKSi atxl meets the re(juuCIl)Cnls (4 Section 2250 009(h) ♦ I lllk collatciak/ed direct repurchase as ree3nents \�_Itha defined termuultuxl_dale ,,t* gill dm'; or ICSS MUCK Are ,CCllled bN ohhi?atloll, of the I'Illted Slate, t'r Ito 'ILIVIICICS agkl.111.,J[unlentalltie, and ptedUed "itIl a third party (,thrr than stn ugellt tor_the plcd_'�'or Imestnlcltt ()tinsels nlaN lwcst ill rC)ulch.l,C aeenlents till nil) ul a ploy rcllinlzlt� goy Crnnlelnt securities de_de_r ul all lide x,;ltorV-haul, .1, ,.leSeribcd CIhole fse�Uoll VIII-'V B) I"acil r"lien Vf lCimiCha:ie aL1Ce.111Cllt' _.hall IIe Icy 01ledtto s11-111 a llla,tel_rel)ulcha:c atireculent. Fol lle\ible le urcha,_e A leemellk eyec•uted bill) holed loceeds_tile defiled terulination date of y(i (Itil); �I lc•,' tll x he 11a1Ac'd to alloy'. the tCrlll of rile flexible IepurclllsC au'leenlclit k) ()lore elowk tltllChl the CArecled tellll of the bond pio1c,:1 _ ♦ No load alone} market mutual fiords registered with and regulated h} the Securities and_ F xcha-nge C'onlrnlssion l\lthl dollar _t\eightr I a\_erl� stated mattult} of 90 dat s or-lea, \v hose assets consist e\clu_srn elf of dlree-t-obligations of the F inited .States and '<i hose investment objectives include the maintenance of a staple net asset Xalue of $1 per share. Money market mutual hinds must maintain a_AAAnl. or ec Lmalent rating-from at least one nahonalh recognized rating agency_. and pro:lde the CAN _vNIth a_prospectus and other untulluatuOn required bN the Securities and Exchange Act of t034 and be speciticalh approved by City Council or purchased thnxlgIl the Cite ; prilnar% depository as an oN ernight inv estment tool_ The Cit}•mar not own more than 10% of the mono market mutual fund's total assets. ♦ Approved investment pools as described above (section VIII-C) which are continuously rated no lower than AAA,AAA-m or an equivalent rating by at least one nationally recognized rating agency. Imcstinents Not Authorized - Hi.'2 11"t 1!1111,11zed illl,.h2l dii, ...... S -ILI\llt�Ltl L__j.C_L�I �2 Ill.,. �!jL, i) rut:, �)11 the prjn.op�z I k,t I nr e the oiidci I�I'i" u cd r,2ckii i I� colla 1121�i I aiid I-,, l't 111 !Jlzd 11IL: pi IIICIII 11 ,I t;rd', h ,in 111,: ulldc I I\I 1)�I I lo I c kcd wc u i i o� I Li i c i a I a i id bv<q,, i w i i i(ci i:,I, 4111 11 Z I IC I I I I Zed I Ilk' 2,11-'(: OH I ic,11 111,11 ha\c I 't'llcd I l,ltulll ,.III ol !hali 1cI] C'k I�. a I)d t (,thItjIlI/ed lnortu,;I_,,c the HI1C12A 1 0,1,11C,6 i, +k2l 11 11111 kc, tI 11 ;il, !'I, Prudent measures kill be taken to liquidate an in estnient that is downgraded to less than the required minimum rating- The CM is not required to liquidate inNestineuts, that\Nerc authorized ime.stinews at tile tHile(if purchase. The purchase of stock is not an authorized investment for municipal governments. HoNNe\er- stock iiiaN be accepted as a donation. provided that it is held in accordance with the terms of the donation and sold as soon as it is advantageous to do so. Reinvestment of proceeds must be in accordance with authorized and suitable investments for the City as listed above. X. Marking to Market All securities and certificates of deposit will be purchased of sold after at least thi-co 11) offers or bids are taken to N-er&- that the City is recen ing a fair market value or price for the investment. The market value shall continue to he monitored at least quarterly through on-line inx-estment software to which the CitN- subscribes. the Wall Street T(--)umal. of some other ilideficiident-mark-et pricing source. The Clt\ shall not obtain market pricing Boni business organizations who ma-,. engage in im estnient transactions with the CAN. X1. Collateralization Collateralization-xi-ill be required on all deposits. certificates of deposit and repurchase agreements. With the exception of deposits secured \\Ith Lrre\ocable letters of credit at 100% of amount. he collateralization le\-el shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or Lilivestinent including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. EN[dence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the collateral pledged clearly listed in the agreement. Collateral shall be reviewed monthly to assure that the market value of the securities pledged equals or exceeds the related deposit or investment balance. Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: ♦ Direct obligations of the United States or its agencies and instrumentalities. Direct obligations of this state or its agencies and instrumentalities. ♦ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States and excluding those mortgage backed securities considered a high-risk mortgage security as described by Section 2257.0025 of the Government Code as well as those of the nature described by section 2256.009(b)of the Government Code. ♦ Other obligations which are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. • Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. • Letters of credit issued bs the I Inited States or its agencies and instrumentalities. Financial institutions sensing as depositofies NN ill be required to sign a depositors agreement xx iththe City The collateralized de )sit_p<)rttolio of the aereement shall define the CitN__s rialits to the collateral in case of detau_lt,_haiil npteN or closme acid shall establish a perfected securitt interest in cx)mjlhance \sith Federal and State regulatiotvs. mcluduIe. 1. The agreement must be_in_}%rite 2. The agreement has to be executed bs the DeM)sitors and the CAN contemporaneously with the acquisition of the asset �. The agreement must he approN ed h�the Board of Directors or desigiated conunittee of the Depositors and a cops of the meeting minutes must be delisered to the City:and 4. The agreement must be_part of the Depository-s -Official Record— crmtinuoush since its execution. XII. Safekeeping;and Custody Collateral shall be placed for safekeeping in a custodial account at the Federal Keserge Bank or at an institution not affiliated NNAh a Linn pledging collateral-, i.ti)I 1, c 1l safek-eeping arringenients,hall be in accordance with a tri-party custodial agreement which clearly defines the responsibilities of each party and outlines the steps to he taken in order for the City to gain access to the collateral in the event of a "failure". The custodial agreement shall be e%ecuted between the City, the firm pledging the collateral and the custodial institution. All safekeeping receipts shall be deligered to the City and all collateral t«hether a pledge or substitution) shall he formally_ accepted and released by Investment Officers. neletea: c in council All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security Ngas received by the safekeeping institution. Financial institution a pool hinds_and mutual funds are excluded from this requirement. The shall be held in the name of the City or on behalf of the City. The Cite shall not purchase securities from the firm or banking institution designated as the safekeeping institution. XIU. Diversification The City will diversify its investments to eliminate an over-concentration of assets in any one security type or institution. ♦ Up to ninety percent (90%) par of the portfolio may be invested in direct obligations of the United States(U.S.Treasury Securities). ♦ Up to seventy percent(70%)par of the portfolio may be invested in U.S. Agency or Instrumentalities. ♦ No more than thirty percent(30%)par of the portfolio may be invested with anv one U.S.Agency or Instrumentality. ♦ No more than t�percent (80%) par of the portfolio may be ingested in Deleted: fife certificates of deposit or repurchase agreements. ♦ Up to one hundred percent (100%) par of the portfolio may be invested in investment pools for liquidity purposes with no more than eighty percent (80%) par of the portfolio invested in any one pool. ♦ No more than fifty percent(50 9/6)par of the portfolio may be invested in money market mutual funds. ♦ No more than tN,,-entri five percent(25%)par of the portfolio may be invested with Formatted: Pattern: any one institution in certificates of deposit and/or repurchase agreements. Additionalh, these investments shall not exceed ten percent (IM/4) of the capitalization of the financial institution. XIV. Investment Strategies The City shall maintain a separate investment strategy for each of the three fund types represented in the portfolio. A. Pooled Fund Groins Suitabiiitv -Anx investment eligible in the In\estment Policy is suitable for iFormatted: Highlight Pooled Fund Crroups Safety of Principal -All investments shall be of his h Quality securities +with no perceived default risk. Market price fluctuations will occur. Ho+\e\er. managM the�vei ted average d�i\s_tu maturit\_of_each fund_sportfolio to less than 365 days and restricting the maximum allo+viable maturity to t+vo \ears using the final stated maturity dates of each security +\ill nunimize the price+olatihtN of the portfoho_ Marketability - Securities uith acti\c and efficient secondary markets are necessary in the event of an unanticipated cash flo+\requirement. Historical market__spreads- between the bid and offer prices of a particular securit\.- t�i on le„ thari_a �luarter of a__percenta e point \\illdefine_an efficient secondary market_ Lieuidity —Pooled Fund Croups reuuire the greatest short-term liquidity of any of the fiend-types. Short-term investment_ rxxrls and money market mutual funds will provide dais, liquidity and ma\ tx utilized as a competitive yield alternative to fixed maturity investment,. Diversification - Investment maturities should be staggered throughout the hudget c\-cle to provide cash tlo+y based on the anticipated operating needs of the Cit\. Diversih-ing the appropriate maturity structure uv to the two-Fear maximum+cuff reduce interest rate risk. Yield - Attaining a competitive market yield for comparable sectirity-t\i2es and porttuho restrictions is the desired objectne__ The vield of an egtra_l,IN �N eighted rolling three-month Treasury Bill portfolio xN ill be the inininnun field ohtectn e _ Deleted: InNestment strategies B. Debt Service Funds for pooled tund groups containing operating funds have as their primary otyective to ensure that anticipated _g he InN estinent Poll\ is suitable tier cash flows are matched with Suitabi6h-.-Atn uneshuent ell rble ur_t — _— _ Debt 1cn ice Funds. adequate investment hiquiditt. Securities purchased shall not have a final stated maturity-date which SafetN of Principal -All in,estments shall be of high qualit\ securities X\1111 exceeds two t?t yeas from the date no percelN ed default risk. Market _rice fluctuations will occur. However, b\ of purchase without-specific approval bN the CAN Council. The managing Debt Service Funds to not exceed the debt service pa\-ment dollar weighted average maturity-of schedule the market risk of the overall portfolio vi ill be ininintized. The the portfolio shall not exceed 365 stated final maturitc date iui securities urchased shall not exceed the debt da}s as calculated using the stated —— final nu�turih dates of each secocity.¶ set�-ice Ivan inent date unless excess fund,_are._available. In that_case_ Maximum maturities shall not exceed t-%\o(?)rears from the date of purchase , Formatted: Highlight and the dollar weiyhted a\erage maturity of the portti�lio shall not exceed )( da%s as is consistent i}_1111 1m estntent stratea-ies for operating funds_ Marketabi6ri - Securities with acti\e and efficient secondan markets are not necessan as the eNent of an unanticipated cash flogy requirement is not probable. Liquidit} - Debt Serxice Funds ha\e predictable pa went schedules. Therefore investment maturities should not exceed the antici tted cash d(m requirements._ In\estmentspxjuvls and mane\ _market mutual funds_ina� prop fide a cotnl etiti\e Meld altermati\e for slwwt-term fixed maturity investments. A singular repurchase agreement mat be utilized it' disbursements are alk)-%\ed in the amount necessarn to satistV any debt seniee Paiment- This investment structure is coon_r_non1v referred to as a flexible repurchase agreement, Diversification - Market conditions influence the attracti,eness of fulh extendiW matruit\ to the next '_unfunded= . Deleted: Investment strategies C. Debt Service Reserve Funds for debt service fwrds shall have as their primary objective to ensure that investments mature as necessar'to Suitability - Any inyestnlent eligible in the Investruent PoilC 1 is suitable for corer the debt service obligation on Debt Sera ice Resen e Fund,. Bond resolution and loan dtxumentation the required payment date. The stated final maturitv date on constraints and insurance_c��nipanti restrictions max__create _specific securities purchased shall not exceed considerations in addition to the hnV-estment Poltc,. the debt service payment date urdess excess finds are available. In that Safeh• of Principal -All investments shall be of high uality securities with case,maximum maturities shall not �` tl exceed two(2)years from the date of nojvrcened default risk.Market rn ice fluctuations grill occur. HoNN ever_b\_ purchase and the dollar ne;elted Managing Debt Service Reserve Fund maturities to not exceed the call average maturity of the portfolio shall not exceed 36;days as is provisions of the borrowing will reduce the inveshnent-s market risk if the consistent mlthinestmentstrategies t_tv`s_debt_ is redeemed anti the Reserx.e Fund li uu idatedNo stated final for operating finds.¶ investment matuuith_ shall exceed the shorter of the final maturitv_of the `Formatted: Highlight borrowing_Of five \ears Annual mark-to-market requirements or specific maturity and average life limitations within the lxirrowing's dtx:uunentation Noill influence the ittractr\eness_ of inarket risk and influence_rnaturit\ extensjou Marketabikh- - Securities with less active and efficient secondan markets are acceptable for Debt Se_r ice__Resene I-unds Liquidih —Debt Serf ice Reserve Funds have no anticipated expenditures. The_Funds_ re depgsiteti tu_ roti ide annual debt_serN ice payment protection to_the City-s debt holders The funds are returned'_ to the City at the final debt service payment. Market conditions and arbitrage regulation compliance deternune the advantage of security diversification and liquidity. (,xenerall%_._if investinent_rates exceed the cost of_borroxxin, the C)ATis.best serNed_b\ -Icxkui a irtNestment maturities and redueir litqu_idit . _ If the borrowing cost cannot be exceeded, then concurrent market conditions will deternune the attractiveness of locking in mahuities or investing shorter and anticipating hiture tricreased N fields. Dig ersifiretion - Market conditions and the arbitrage regulations influence Deleted: Investment strategies the attractiveness of staggering, the maturity of fixed rate investment 1 for debt service reserve funds shall for have as[heir primary-objective to DebtSerx ice Reserve Funds_ At no tirne_shall the final debt sen_iee paw nien,t seek the highest investment return date of the bond issue be exceeded in an attempt to bolster v ield_ ;nth maximum seemih-in order to produce a dependable revenue stream to the appropriate find. Yield - Achieving a positive spread to the applicable borrowing cost is the 1 Securities shall be invested in desu_etj_obi tire._Debt_Service Reserl_e Fund wofolio management_shall accordance with specific bond ordinances and shall not have a operate within the lints of the Investment Policy's risk constraints_ stated matte i[n date ryhich exceeds the final mate rity date of the bonds. At no time shall maximum maturities XV. Internal Control exceed five(5)years from the date of purchase J The City. in conjunction with its annual financial audit shall perform a compliance audit of management controls on investments and adherence to the City's investment policy. XVI. Performance Standards The City intends to pursue an active versus a passive portfolio management philosoph\. That is. 1 ,,;. may be sold before they mature if market conditions present an opportunity for the Citv to henefit front the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and econonuc cycles which is consistent with risk linnitations and cash flow needs of the City. Given this strategy.the basis used by Investment Officers to determine whether market yields are being achieved shall be the average return on 91 dati U.S. Treasur, Bills. ,13��_i ik,i;_l_� XVII. Reporting Investment Officers shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position,performance, trading activity, interest earnings and collateral. A quarterly report shall be submitted to the City Manager. as Chief Executive Officer, and the City Council detailing investment transactions and performance for the reporting period in accordance with state law. The report shall be jointly prepared and signed by all Investment Officers. It shall include a sunurlary statement prepared in compliance with generally accepted accounting principles for each fund type and a detailed listing that states the beginning market value. changes to the market value. ending market value and full accrued interest for the period In addition.Investment Officers shall report on adherence to the Cit_y's investment strategies as expressed in this Policy. In_onnIuncUun .�ith the annual audit. the 41 arierl� re�irrt:;,hall he tinnall� jL:%tr'�NCd k the (-m ;_ ndt.pendent miditur�)n an auuual basis and Elie «suits 1ht_ren lc\1 ,1,111 he re of ed to o 11 l ,unrii_ XVIII. Investment Police Adoption The City's Investment Policy is hereby adopted by resolution of the City Council, (Deleted: on September 26, The City Council shall review and approve the Policy on an annual basis. This 119" Policy serves to satisfy the statutory requirement to define and adopt a formal investment policy. rDeleted: ¶ cAossarni Accretion: Adiustmentofthe difference between the price of a bond bought at a discount and the par xahie of the bond.¶ I¶ Accrued Interest: Interest due from the last interest payment to the present da.. ¶ amortization: The reduction of principal(of debt)at regular inten als.¶ 9 Basis Point: 1 100th of loo or.01oo.1 Book Value: The original acquisition cost of an investment EXHIBITS plus t minus the accrued xirti u amortization or aretion.¶ Broker: A broker brings btw ers and sellers together for a commission¶ T Cash Forecastine: Longer-term (one month or longer)prediction of cash flows,t picall}focusing on the aggregate cash position. In contrast, cash scheduling focuses on shorter- ten»predictions•emphasizing cash position management.¶ Certificate of Deposit(CD): A time deposit with a specific maturih cNidenced bv a certificate. ¶ Collateral: assets pledged to secure deposits,investments,or loans.¶ iT Collateral Mortgage Obligation C( 1110): multi-class securih collateralized b}whole loans or regtdar mortgage securities whose cash floes are paid through to meet debt seniee on the CAlO bond.¶ Comprehensive Annual Financial Report(C AFR): The official annual report for the Cih-of Beaumont. $ T, Credit Risk: The risk that a counterpart to an investment transaction will not fulfill its obligations. Credit risk can be associated with the issuer of a securih-,with a financial insti Exhibit A CITY OF BEAUMONT Approved List Broker/Dealers Business/OManization Broker/Dealers: JP Morgan/Chase Securities Coastal Securities Duncan-Williams,Inc. Wells Fargo Brokerage Services,LLC Rice 1`111,111c];I[ I'Iodllr(;(�'Jllpaty. N_1orz.111 ii,er,,.u1 l_t�l lml)i. hic ---I—--- F31 I Exhibit B City of Beaumont, Texas Certification By Business Organization Tlus certitICation I;executed on hetial of the (-'it, of Beaumont oIic Imcstur)a ld )the Rusinc s I)ruanlzalloll)pursuant to the Public-Fund." I iv estnie[it ,AcI-Chapter -'-'5(,_1 evas(ioN crluncat C cede I the Ach III cunnecIIon\ti tth imest enI tl )I i,uctJOII;cculducte,.i I'ete\e(2n the Im est")I a I I d (he Ilu,in<,�;t)r''a nizotion. IIle 1111del1,i1U ncd t)uahtied 1",cprc:;entatIvc ol,II)c Iius lie"s )_)rt�n I/z Iticm hcIchv Cat fic on hehall ul'the Business(huauizatioll that - 1 I he Linder�LLncd is a Qualified Of the-HLISIne;!;t)r�L,.u)(zatu,n utti:ru),z tc) enter alt In%CS1nlent ti an,actu,n lv itli the tllyestul AS sueli tern).,are used in the I'uhlIC I tin,h IIIvestment.Act-._t'lmom :' _1C\ast9uvcn)uiew ( tnlc and ' I he QuAllled-hepiCe entall\e otthc IWS111C s(hL"anlzatloll ha., I,2eeived and rep leaved the Imc,�tlncnt Polio: tlu-nldled hN the and I he t)uallt)etl lZelale ntaht c ul the litrmwss t)rumization has unhlemented rcasolial 1 lklcc&llcla ,Intl Control•, In,III e11011 tip lrle,lude 1mcstnlent Llallsactioli>Ct nducted hct���en the kusuless t )yanlzatwil and the Ime.stcu that ate nut authorized by the ellim" HIvCAMeW 1�011C% eNCel)t tO the c_stent that thu auth(Itizutlun Is dependent on an anal%si,_ ,Ittx. n)al:euh ot'the cutlt" ,rntsle p)[0,01 it) of lctlnire:.t,nll inlerhretA1011 utsuhtccti c it In In�e>•Uiient �tandardti Uualiticd kcpC'entat NL:A fthe ktlslnc ()ILzaill/ah ll ti1LTnahUY i (Name l Itle i B1 Page 15: [1] Deleted Susan Anderson 6/8/2009 3:24:00 PM Glossary Accretion: Adjustment of the difference behyeen the price of a bond bought at a discount and the par value of the bond. Accrued Interest: Interest due from the last interest payment to the present day. Amortization: The reduction of principal(of debt)at regular inten-als. Basis Point: 1/100th of I%or.O1%. Book Value: The original acquisition cost of an investment plus or minus the accrued amortization or accretion. Broker: A broker brings buyers and sellers together for a conunission. Cash Forecasting: Longer-terns(one month or longer)prediction of cash flows. typically focusing on the aggregate cash position. In contrast.cash scheduling focuses on shorter-terns predictions. emphasizing cash position nnanagement. Certificate of Deposit(CD): A time deposit with a specific maturity evidenced by certificate. Collateral: Assets pledged to secure deposits. investments or loans. Collateral Mortgage Obligation(CMO): Multi-class security collateralized by whole loans or reguular mortgage securities whose cash flows are paid through to meet debt sen-ice on the CMO bond. Comprehensive Annual Financial Report(CAFR): The official annual report for the City of Beaumont. Credit Risk: The risk that a counterpart\,to an investment transaction will not fulfill its obligations. Credit risk can be associated with the issuer of a security.with a financial institution holding deposits or with parties holding securities or collateral. Credit risk exposure can be affected b— a concentration of deposits or investments in air,* one investment type or with any one counterparh-. Dealer: A dealer. as opposed to a broker.acts as a principal in all transactions, bin_ ing and selling for his own account. Deliver-Versus Pavment(DVP): There are two methods of dehver\, of securities:deliven- versus payment and delivery versus receipt. Deliver-versus payment is delivers of securities with an exchange of money for the securities. Deliver-versus receipt is a deliven_- of securities with an exchange of a signed receipt for the securities. ------------------------------------ Break--------------------------------------- Discount: The difference between the cost price of a security and its maturity value when quoted at lower than face value. Diversification: Dividing investment funds among a variety of securities offering independent returns. Dollar Weighted Average Maturity: Represents the average number of days remaining until the final maturity date,appropriately weighted by the dollar amount of each security in the portfolio. Federal Agency Securities(agencies): Discount and coupon obligations of the federal agencies that were established by Congress to provide credit to specific sectors of the economy. Federal Deposit Insurance Corporation(FDIC): A federal institution that insures deposits of federally chartered banks,currently up to$100,000 per deposit. Effective October 3,2008,the President signed a bill that temporarily increases FDIC deposit insurance from$100,000 to $250,000 through December 31,2009. Federal Reserve Bank: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington,D.C., 12 regional banks. Investment Pool: An entity created to invest public funds jointly on behalf of the entities that participate in the pool. Liquidity A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. Market Risk: The risk that the market value of an investment,collateral protecting a deposit or securities underlying a repurchase agreement will decline. Market risk is affected by the length to maturity of a security,the need to liquidate a security before maturity,the extent to which collateral exceeds the amount invested and how often the amount of collateral is adjusted for changing market values. Market Value: The current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date. It is the price at which a security is trading and could presumably be purchased or sold. Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase reverse repurchase agreements that establishes each party's rights in the transactions. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. Par Value: Face amount or 100%of the principal amount of a security at original issue. Pooled Fund Group: An internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. Portfolio: Collection of securities held by an investor. Premium: The difference between the price of a bond and its value at maturity when the price is higher than the maturity value. Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission(SEC)-registered securities broker-dealers,banks,and a few unregulated firms. Principal: The amount of debt remaining on a loan On the date a loan is originated,or issued,the total amount equals the initial principal balance. Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so- called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. Oualified Public Depositories: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state,which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. Qualified Representative: A person who holds a position with a business organization who is authorized to act on behalf of the business organization If the business organization is regulated by or registered with a securities commission then the qualified representative must be a person who is registered under the rules of the National Association of Securities Dealers. If the business organization is a banking institution then the person must be a member of the loan committee or a person authorized by corporate resolution to act on behalf of and bind the banking institution For an investment pool,the person must be authorized by the elected official or board with authority to administer the activities of the investment pool and to sign the written instrument on behalf of the investment pool. Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. See yield. — Page Break Repurchase Agreement(RP or REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer"in effect lends the"seller"money for the period of the agreement,and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception:When the Fed is said to be doing RP,it is lending money,that is,increasing bank reserves. Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution. Securities&Exchange Commission(SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation Sec Rule 15C3-1: See Uniform Net Capital Rule. Settlement Date: The date agreed upon by the parties to a transaction for the payment of funds and the delivery of securities. Stated Maturity: A predetermined final maturity date that cannot be altered by prepayments. Treasury Bills: A non-interest bearing discount security issued by the U.S.Treasury to finance the national debt. Most bills are issued to mature in three months,six months,or one year. Treasury Notes: An interest bearing security issued by the U.S.Treasury to finance the national debt. Most notes are issued to mature in one to ten years. Interest is paid semi-annually. Treasury Securities: "Full faith and credit"obligations of the U.S. Government issued by sale at periodic auctions,delivered and cleared electronically. Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1;also called net capital rule and net capital ratio. Indebtedness covers all money owed to a fain,including margin loans and commitments to purchase securities,one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash Page Break Yield: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b)NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price,with the adjustment spread over the period from the date of purchase to the date of maturity of the bonds. :::::::Section Break(Next Page) PUBLIC HEARING * Receive comments related to a proposed drilling permit at 9890 Phelan i 12 June 16, 2009 Consider approving a drilling permit at 9890 Phelan RICH WITH OPPORTUNITY BEA,U14011T City Council Agenda Item T • E - X - A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: June 16, 2009 REQUESTED ACTION: Council conduct a Public Hearing and consider approving a drilling permit at 9890 Phelan. RECOMMENDATION Administration recommends approval of this permit. BACKGROUND In April, 2009, the City Council amended its ordinance relating to oil and gas drilling permits, requiring City Council review of any proposed well within a distance of three hundred feet (300')to five hundred feet (500') of a habitable structure. This review process includes a public hearing, notification of property owners within five hundred feet (500') of the proposed well-hole and consideration of the following criteria: (1) That the proposed drilling operation will be compatible with and not injurious to the use and enjoyment of other property, nor significantly diminish or impair property values within the immediate vicinity, (2) That the drilling operation will not impede the normal and orderly development and improvement of surrounding vacant property; (3) That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; (4) The design, location and arrangement of all driveways and parking spaces provided for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; (5) That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odors, fumes, dust, noise and vibration; (6) That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and, (7) That there are sufficient landscaping and screening to insure harmony and compatibility with adjacent property. Samson Lonestar, LLC is requesting a drilling permit at 9890 Phelan. The drill location is proposed to be on the property at the northeast corner of Keith Road and Phelan (Old Sour Lake Road), at least one hundred seventy-five feet (175') from Phelan and more than three hundred feet (300') from the nearest habitable structure. In addition, the ordinance requires that all drilling operations comply with a variety of restrictions, including fencing and securing of bonds and insurance. Attached is the application information from Samson Lonestar, LLC. Based on the information provided in the permit application, the Administration recommends approval of this permit. BUDGETARY IMPACT None. Jimmy Trlieek SAMSON LONESTAR LLC Senior Surface Landman 1593 Hwy. 146 By-Pass Cell:409.284.3201 Liberty,Texas 77575 %+ Fax:918.591.7709 Phone:936.336.2530•Fax:936.336.2541 `hod E-mail:itrlicek @samson.com Samson June 3, 2009 City of Beaumont 801 North Main Beaumont, Texas 77701 Re:Samson City of Beaumont Urbanized Drilling Site Permit for the A. Huston Survey A-33 To whom it may concern: By way of this letter, the accompanying exhibits, and the enclosed $1000.00 application fee, Samson hereby applies for an urbanized drilling permit within the city limits of the City of Beaumont as required by Chapter 19 of the City Ordinances, ("City Ordinances"). The exhibits accompanying this letter are listed below and cross-reference the sections within Chapter 19 that they satisfy. Exhibit "A" — Legal description and maps of the proposed drill site area which Samson proposes to explore for oil and gas as required by Sec. 19- 4(a)(1). The surveyor's plat verifies that this drill site conforms with spacing requirements and is an urbanized drilling site as required by Sec. 194(a)(5). Exhibit `B" — Memorandums of Oil and Gas leases that grant Samson the right or permission to pass through and enter the owners' lands for drilling purposes. Samson further states that it will not enter any lands or property to which it does not have such right as required by Sec. 194(a)(2). Exhibit "C" — Insurance Certificate and proof of Oil or Gas Well Drilling Bond are also included as required by the City Ordinances and other rules and regulations. The proposed drill site location will be approximately 3.25 acres in size with the production facility located in this area. Samson intends to drill to a maximum depth of 15,000 feet. Any type of major equipment necessary to drill and operate will be operated and located as required by the City Ordinances. Samson will sell all natural gas via pipeline and all oil and condensate will be transported from the drill site via truck. During all phases of operations, all waste products will be transported to an off-site commercial disposal site in a manner compliant with all applicable regulations, including the City Ordinances. As a reputable and responsible operator, Samson is willing to work with the City of Beaumont to ensure compliance with the City Ordinances and furthermore welcomes the opportunity to address any questions or concerns to expedite the approval of this permit. Please do not hesitate to contact me at (409) 284-3201 with any questions or concerns. Your prompt attention to this matter is greatly appreciated. Thank you. Best Regar4s;, Jifiir�y Trlicek Se4or Surface Landman Enclosure(s) I aIcR WITH oProR sa11arr BEAUMON* One-Stop Permitting Phone: 409-880-3100 Faz: 409-880-3110 T E • X A 8 Community Development 801 Main Street Beaumont, Texas 77701 d Permit # Application is hereby made to the Building Codes Division of the City of Beaumont for a permit: s Street Address of Project:y'r -' i C Date: V �� Legal Description:Lot#r Block# Addition: Description of Work: t/ 1 �'�����'a cad j g i;. .t ov, TRCC Contractor# TDLR EAB Project# If no recorded map or plat metes and bounds description shall be attached and be in conformance with provision, of all ordinances of the City of Beaumont and laws of the State of Texas,whether specified herein or not, and it accordance with Plot Plan which must be drawn to scale. *It must show: (1)the actual shape and dimensions of the lot to be built upon; (2) the street or streets adjoining the lot; (3) the exact site and location on the lot o' presently existing structures, if any; (4) the exact size and location on the lot of the proposed structure; (5; proposed landscaping;(6)parking and(7)drainage. Commercial buildings must also show existing and propose( water and sewer lines. *This application is to be accom anied by three 3 complete sets of construction plans. Owner of Land Z < S ,> Address Phone Plans Prepared Jay Address Phone Contra( Address Phone Land Use Information Existing use of property Construction Cost Permit Fee Plan Check Fee Proposed use covered by this application Double Fee .6 d C Driveway Fireplace Grading Fee Number of families to occupy building(if applicable) Demo Bond Additional Information Total Permit Fee c- Living Area: Garage/Storage: Porch/Patio: SEE REVERSE SIDE APPLICATION FOR PERMIT TO DRILL AND OPERATE A WELL .'4UMBER DATE AME OF APPLICANT ADDRESS 0, 4 LX IROPOSED SITE OF WELL: (1) NameofFeeOwne, (2) Name of Lease Owner Sc->'150V\ (3) Name and/or Number of Well (4) Brief Description of Land and Location of *Include in description a diagram in space provided showing location of well on property,show property lines survey,etc.,roads,streets and closest buiildings,as well as description of building. TYPE OF DERRICK POWER OF RIG2 Uff-'i A"PROPOSED WELL DEPTH 00i k' :)ate filing fee received L,- BUILDING OFFICIAL 'kpplication approved by kmount of Insurance and Bond as set by Council: 'L—..--PD—BI BOND and Filed Ins.Certif.Filed Permit No. —Issued--_----- , w, m s 0 PHELAN BLVD � 9805 PHELAN BLVD 9735 PHELAN BLVD ri 9875 JOSE Y ST 220 TODD ST 9780 BROUN ST 9760 BROUN ST 9880 BROUN ST 9840 BR( ST a i • N I. PROGRAM ELEMENT TO THE PLAN A. Goals and Objectives 1. COMMITMENT TO ECONOMIC DEVELOPMENT: The Economic Development Policy Plan consists of goals, objectives, policies, and proposals for guiding Beaumont's future economic growth and development. Outside assistance is provided through a contact with the Beaumont Chamber of Commerce for various economic development activities such as marketing analysis, business retention efforts and working with business prospects. 2. GOAL: INCREASE THE NUMBER OF PERMANENT JOBS AVAILABLE TO CITIZENS OF BEAUMONT AND SOUTHEAST TEXAS Emphasis should be placed on value added jobs which are most likely to lead to further job creation. Jobs in "export" industries bring money into the region through production of goods or services that are exported outside of Beaumont. These jobs, which are generally highly paid, create spendable household income, thus generating new jobs in sales and services. Beaumont also needs jobs which can be filled by workers who were previously employed in shipyards, refineries, and chemical plants. These skilled workers are among Beaumont's most valuable economic resources and will leave the area if new job opportunities are not developed. Because of an especially high unemployment rate among Beaumont's sizable minority population, entry level jobs with on-the-job training are needed to bring unskilled workers from low-income backgrounds into the workforce. WHERE WILL THESE JOBS COME FROM? New jobs come from three sources: 1) Expansion of existing business 2) Creation of new, entrepreneurial enterprises 3) Attraction of plants or business from outside the community Research indicates that expansion of existing business and creation of entrepreneurial enterprises account for 80 to 90%of all new jobs. OBJECTIVE NO. 1: MAINTAIN AN EFFECTIVE ROLE FOR THE CITY OF BEAUMONT ECONOMIC DEVELOPMENT PROCESS Policy 1.1 Role of the City The City will continue to serve in the leadership role in the following areas of economic development: A. Strategic Planning - analyzing Beaumont's competitive strengths and weaknesses in the world economy and then taking aggressive action to capitalize on the strengths and overcome the weaknesses. 3 B. Legislative Advocacy - working closely with Jefferson County, The Port of Beaumont, Drainage District #6, the Jefferson County Navigation District, BISD, other municipalities in the region, and other State and Federal elected officials to secure major funding assistance and to enact or change laws to increase the strategic competitiveness of the local/regionat economy. C. Leveraging and Public/Private Partnerships - using the limited resources available to the City government, such as grants, development incentives, infrastructure, land, and staff to attract private sector investments which will create or retain jobs and/or increase the tax base. D. Develop and Communicate a Vision of the Future - the City's elected officials and staff must motivate the community to set its sights on the goal of becoming a first-class medium-sized city with a quality of life capable of attracting new private investment and population. The City will serve in a leadership and cooperative role in the following area, participating actively and lending whatever support is needed to other members of the economic development network: a. Promotion: assisting the Chamber of Commerce, the Convention and Visitors Bureau, BUILD, Inc/Beaumont Main Street, Entergy, and other promotional groups in marketing Beaumont as a business location, tourist destination, etc. b. Business Attraction: working cooperatively with the Chamber/Economic Development Council in attracting new industry. Policy 1.2 The City's Commitment The City will commit the assets is has available—staff, incentives, land, taxing authority, infrastructure, tax-exempt bonding authority, and access to State and Federal grants—to the local and regional economic development efforts. The City will also strive for excellence in conducting its basic responsibilities of providing public services and infrastructure, recognizing that an efficient, competent and responsive city government is one of the prerequisites for economic growth of a community. Allocation of resources for construction of new or the repair or extension of existing city infrastructure and new or revised city services will be implemented on the basis of need; however, the impact of such actions on the economic development of the City as a whole will be considered of overriding importance when deciding where to allocate the City's resources among areas which are of equal need. Policy 1.3 Public Return on Investment The City will examine the potential return on the public's investment when determining where and how its limited resources will be committed. Return on public investment will be measured in terms of jobs created, jobs retained, and broadening of the tax base. 4 I I OBJECTIVE NO. 2 ENCOURAGE A CLIMATE WHICH FACILITATES BUSINESS GROWTH AND SUSTAINABILITY Policy 2.1 The City of Beaumont recognizes that the degree of cooperation and support of local government plays a major role in business location and expansion decisions. The City resolves to improve both its efficiency and effectiveness in providing assistance and services to business. Policy 2.2 The City of Beaumont will be committed to improving the quality of life for current and future residents. In recognition of the connection between economic development, the quality of life or livability of a city, and the development of a favorable sense of place among residents and non-residents alike, the City supports the inclusion of "quality of life" and "environmental quality" considerations in making planning and development decisions. Visual community appearance considerations in the city's planning and development efforts are to be considered important economic development actions which will improve Beaumont's ability to attract new businesses and employment opportunities. In realization of the fact that investing in the overall improvement in the quality of life or livability of the City is not a goat which can be achieved overnight, the City will concentrate its resources on the cleanup and rehabilitation of selected neighborhoods and on the development and improvement of urban design plans for selected open space, street corridor, and city entrance or gateway areas. OBJECTIVE NO. 3 ATTRACT NEW BUSINESSES AND INDUSTRIES TO THE BEAUMONT AREA Policy 3.1 The City will work with the Chamber of Commerce and other economic development groups in a team effort to bring new businesses and industries to the Beaumont area. Policy 3.2 Efforts to attract new business and industry will be targeted on industries whose tocational needs are consistent with the Beaumont area's locationat attributes. Policy 3.3 Continue to promote the Beaumont area's resources and quality of life factors through the efforts of the Beaumont Convention and Visitors Bureau. OBJECTIVE NO. 4: RETAIN AND EXPAND EXISTING BUSINESSES AND INDUSTRIES Policy 4.1 The City of Beaumont recognizes that existing businesses and industries are the community's most important economic resources and wilt support the efforts of existing businesses to expand and improve operations. Policy 4.2 An "outreach" program to foster open tines of communication between the city government and existing businesses and industries will continue. OBJECTIVE NO. 5: STIMULATE THE CREATION OF NEW BUSINESSES 5 Policy 5.1 Continue the City's Small Business Revolving Loan Fund which provides financing assistance for new businesses having difficulty in obtaining conventional financing. Policy 5.2 Continue to work with the Small Business Development Center at Lamar University, which assists start up businesses and processes applications for the City's Small Business Revolving Loan Fund. OBJECTIVE NO. 6: IMPROVE THE COMPETITIVE ADVANTAGES OF THE BEAUMONT AREA ECONOMY Policy 6.1 The City of Beaumont will assume a role of partnership with local business and industry in competing with producers in other regions, state and countries. This means city actions involving taxes, infrastructure, regulations and development incentives will focus on making it easier, more efficient and more advantageous for doing business in Beaumont. Policy 6.2 Expand the scope of Beaumont's market area by capitalizing on its role as a regional cent of trade, professional services, entertainment, distribution, and medical services. B. Identification of the Area's Financing Problems A review of Beaumont's capital market and discussions with local small business persons indicate that local capital market has the following characteristics. 1. Beaumont banks typically follow conservative policies and practices regarding allocation of deposits for lending purposes. While this is not unique to Beaumont or the region, the adverse effect of the local and statewide economy has even further reduced the availability of the banks' capital in Beaumont. Beaumont banks are looking for additional outside capital projects as a cushion for their loans. 2. There is reluctance to provide financing to younger or higher risk companies or to companies located in blighted or depressed areas of the community. 3. There is a shortage of long term reasonably priced commercial financing available to small business located in Beaumont. 4. Local banks appear to be reluctant to make loans smatter than $75,000.00. 5. There is a lack of capital for minority business. The Revolving Loan Fund (RLF) will serve a critical function in the City's economic development program by providing assistance in financing small business that will provide jobs primarily for persons of low and moderate income, the unemployed, and the underemployed, and projects which will diversify and strengthen Beaumont's economic base. Specific Objectives of the Revolving Loan Fund: The Revolving Loan Fund wilt promote economic development by: 6 1. Creating New Employment Opportunities: The Revolving Loan Fund will be utilized to assist in expansion or creation of small business enterprises, owned or operated by minorities, women, or the economically disadvantaged. 2. increasing Private Financing Availability: Revolving loan fund monies will be used to leverage private financing for small business, availability of financing for small business enterprises owned or operated by minorities, women or the economically disadvantaged and to provide incentives to the financial institutions to make loans to small businesses. C. Targeting Criteria The Revolving Loan Fund will target small businesses which can best assist the City in achieving economic development objectives. The order or priority wilt be: 1. Small businesses which will create the greatest number of jobs available to the unemployed, underemployed, or low or moderate income persons at the least cost to the Revolving Loan Fund; 2. Small businesses which are owned and operated by minorities, women, or the economically disadvantaged; 3. Small businesses that which are located within Beaumont's Community Development and Housing Neighborhood Strategy Areas. D: Standards for the Revolving Loan Fund Portfolios To ensure the effectiveness of the Revolving Loan Fund as an economic development tool, the following standards wilt serve as guidelines for Revolving Loan Fund participation: 1. It is the objective of the Revolving Loan Fund to leverage each dollar three or four times through participation with private sector lending institutions, the SBA and other government loan programs and private investors. For each $10,000 of total investment, one job will be generated. The Revolving Loan Fund wilt leverage two private sector dollars for every one RLF dollar at a minimum. 2. Revolving Loan Fund monies will be available to finance the expansion and start-up needs of small businesses. Financing will be available for fixed assets (plant and equipment) and for working capital. The Revolving Loan Fund will give priority to the businesses that create the maximum number of new jobs. The Revolving Loan Fund applicants will be screened for potential use of vacant facilities located in blighted areas of the community. 7 $100,000.00 of the Revolving Loan Fund will be made available to small businesses for low interest bridge/gap $10,000-$20,000 loans to be distributed within 6 months of a natural disaster if the City of Beaumont is declared a national disaster area. Existing Small Business toan recipients who are in a current or 1-2 month delinquent status with their loans may re nest a deferral of loarPayments to help them recover from the natural disaster. 3. Other economic development objectives and standards include the following: The Revolving Loan Fund borrower will be required to have a 10% equity position in the project. Minorities and females will be encouraged to participate in the Revolving Loan Fund. To prevent displacement of existing capital, all applicants must have written evidence of the need for the RLF funds. E. Financing Policies: The Revolving Loan Fund will include the following goals: 1. The Revolving Loan Fund loans are expected to range between $10,000 and $x99:999200,000. 2. No more than 2950% of the total SBRLF GeRtFilgyted available capital shall be loaned to any one borrower during any one time period. 3. Terms and Conditions of the Loans The expected amortization period for Revolving Loan Fund loans will be as follows: Working capital loans: _ Negotiated within normal commercial financing range Machinery and Equipment: Based upon the useful life of equipment financed Land and Building: 15-25 years 4. Interest Rates: Interest rates for all Revolving Loan Fund loans will be variable depending on the needs and financial condition of the applicant. Interest rate floors and ceiling will be established. The minimum interest rate will be four percent. 5. Special Financing Techniques: Revolving Loan Fund staff and administration will employ flexible financing techniques designed to meet the needs of the borrowers and to maximize the effectiveness of the Revolving Loan Fund program. The special financing techniques that may be utilized include: Lower than market rates. Extended amortization period for loans. Moratoriums on loan payments for a specified period of time-up to a maximum of six months. 8 Existing Loan Program recipients may request to change the payment terms of their loan in an effort to facilitate the continued repayment of the loan when they are having difficutty in doinp, so, 6. Collateral and Equity requirements: Fixed asset financing will be secured by the fixed assets financed with other assets included if required. Collateral for working capital loans will include inventory, accounts receivable, fixed assets, cash and personal guarantees. The Revolving Loan Fund will mandate the contribution of equity by the borrower, requiring not less than 10%. 7. Restructuring Loans: The Revolving Loan Fund will not be involved in restructuring third-party loans or in refinancing projects. 4— : RepayMeRtS of hp Ga pr=egra+4-+- &. Use of RLF Income: RLF income includes all interest earned on outstanding loan principal, interest earned on accounts holding idle RLF funds, loan fees and other loan-related earnings. RLF income does not include repayment of RLF loan principal and any interest remitted to the U. S. Treasury pursuant to a sequestration of excess funds. RLF income wilt be used to pay administrative expenses as long as RLF income and administrative expense are earned in the same 12-month reporting period and administrative expenses don't exceed 50 of the RLF income or $100,000.00. Any excess RLF income in a 12-month reporting period will be added to the RLF capital base and made avaitable for loans. Any administrative expenses that exceed W,, of the RLF income may be paid from the City of Beaumont Community Development Block Grant Funds and the appropriate RLF Income and Expense Statement wit[ be prepared and submitted according to EDA regulations. 9. Participation with other loan programs: To accomplish the stated goals of the Revolving Loan Fund, participation on loans with the following financial institutions ins anticipated: • Banks throughout the City. • Small Business Administration. • Farmer's Home Administration. • SBA Certified Development Corporation (504's). • SBA Small Business Investment Corporation (MESBIC). • Savings and Loan Associations. • Local equity capital funds. F. Related Activities: 1. Loan Packaging and Referral Service: The Revolving Loan Fund loans will be packaged by the staff in cooperation with the loan officer and staff of the participating financial organization. Those applicants who do not qualify for Revolving Loan Fund loans but are viable applicants for other financing assistance will be referred to the local office of the Small Business Administration, the Southeast Texas Economic Development Foundation (A SBA 504), and other commercial banks or savings and loans in the community. 9 2. Linking Jobs to the Long-Term Unemployed: Should the borrowers need assistance in recruiting the long-term unemployed and low-income persons, the company will be referred to agencies capable of providing assistance. Those agencies include: • Workforce `solutions Southeast Texas • Local Employment Agencies »------Advertisement in Local Newspapers 10 11. Administrative Element of the Plan A. Loan Administration Board The Mayor and City Council establishes citizen advisory boards, committees and commissions and appoints citizens within the community to serve on these various committees by approval of City Council. A Loan Administration Board will be formed with the membership as follows: 1. Members will be drawn from local financial institutions. 2. Other members will be appointed from the Small Business Development Center at Lamar University. 3. One member will be appointed representing the City of Beaumont. 4. The remaining members will be appointed from small and minority businesses or community organizations. Provisions will be made to assure strong representation among women and minorities. At least one member with financing experience must be present for each loan decision. Board members will be appointed to two year terms, which will be staggered to assure continuity on the board. The board will include members from both the public and private sectors. B. Staff The City's Finance Department, Cash Management Division, will provide support staff to the Revolving Loan Fund. The Cash Management staff has experience in analysis of business operations and financial statements and substantial billing and collection experience. The RLF staff will work closely with the particular commercial lending officers of the private financial institution(s) involved in the leveraging of each loan. The loan packages will be prepared to provide adequate loan security and allow maximum operating flexibility to the borrowers. C. Conflict of Interest 1. RLF funds shall not be available to a business entity if the owner of such entity or any owner of an interest in such entity is related by blood, marriage, law or business arrangement to an employee of the City of Beaumont or any member of the City Council, or a member of the SBRLF Loan Advisory Board unless the person(s) affected first discloses in writing to the Loan Advisory Board the potential benefit and the Loan Advisory Board determines that the benefit involved is not so substantial as to affect the integrity of the Board's decision process. 2. An officer, employee or board member of the SBRLF shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment or any other thing of monetary value for himself or for another person, from any person or organization seeking to obtain a loan. 3. Former Loan Advisory Board members and/or Officers are ineligible to apply for or receive loan funds for a period of one year from the date of termination of his/her service. 11