HomeMy WebLinkAboutPACKET AUG 25 2009 RICH WITH OPPORTUNITY
r
T • E • X - A - S
REGULAR MEETING OF THE CITY COUNCIL
BEAUMONT CIVIC CENTER AUGUST 25, 2009 1:30 P.M.
CONSENT AGENDA
* Approval of minutes
* Confirmation of committee appointments
Lauren Williams Mason will fill the unexpired term of Chris Reed on the Planning and Zoning
Commission. The term would commence August 25, 2009 and expire December 10, 2010.
(Councilmember Alan B. Coleman)
A) Authorize the City Manager to execute a contract with Lamar University for the lease of
space in the Downtown Public Library located at 801 Pearl Street
B) Approve the waiver of penalties and interest on three tax accounts processed by the
Jefferson County Tax Assessor-Collector's Office
C) Approve Change Order No. 1 and the final payment for the 2008 Asphalt Street
Rehabilitation Program
D) Approve a contract for the purchase of asphalts, oils and emulsions for use by the Streets
and Drainage Division
E) Adopt an alternative retirement plan for part-time, seasonal and temporary employees and
appoint a Plan Administrator for the Public Agency Retirement System
F) Approve a contract for concession management services
G) Authorize the acquisition of property in the N. A. McMillan Addition for the Downtown
Park and Event Center
H) Authorize the settlement of the claim of Edward E. Zachary
A
RICH WITH OPPORTUNITY
r
T • E . x • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council consider authorizing the City Manager to execute a
contract with Lamar University for the lease of space in the
Downtown Public Library located at 801 Pearl Street.
RECOMMENDATION
Administration recommends approval.
BACKGROUND
Downtown is the historic, cultural and entertainment center of the city. City staff and
representatives of Lamar University have a desire for the University to have a presence in the
Central Business District. Lamar is excited about the revitalization efforts occurring downtown
which adds to the quality of life for its students, and the City of Beaumont is supportive of efforts
and projects that attract additional people to downtown venues. As a result, Lamar plans to lease
the bottom floor of the Downtown Library to offer continuing education programs to the public
and to relocate their Small Business Development Center.
The lease agreement is for a period of five years. Lamar would pay the City $75.00 per month as
rent and be responsible for their cost of utilities(water, electricity, heating, garbage)based on the
prorated square footage of the leased premises. Lamar would also be responsible for janitorial
services related to their lease space. The proposed lease agreement is attached for your review.
BUDGETARY IMPACT
Annual rent of$900.00 will be received.
STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF JEFFERSON §
THIS CONTRACT and LEASE made and entered into this, the day of
, 2009, by and between the City of Beaumont, Texas,
hereinafter known as Lessor, and Lamar University, a component of the Texas State
University System, a state agency, hereinafter known as Lessee.
WITNESSETH that Lessor, in consideration of the rents to be paid and of the
covenants herein contained on the part of the Lessee to be kept, observed and performed,
has demised and leased, and by these presents does hereby demise and lease, unto the
Lessee the following described property and premises and also as described in Exhibit"A"
attached hereto, hereinafter known as Leased Premises and made a part hereof:
Bottom floor of the downtown public library located at 801 Pearl,
Beaumont, Texas.
1.
(a) The term of this Lease shall commence upon Lessee's occupancy and
possession of leased premises and extend for sixty(60) months unless sooner terminated
as hereinafter provided. Lessor and Lessee will execute a letter establishing the date of
occupancy of the Leased Premises. If no such letter is executed then the lease term shall
commence within thirty (30) days of the City's issuance of a Certificate of Substantial
Completion to the contractor for renovations.
(b) Lessee shall use and occupy the Leased Premises as an educational facility
open to the public, and for related purposes, including, but not limited to, civic purposes,
and broadcast services during the full term of this lease. Should Lessee fail to continue
Page 1
to use the premises for these intended public purposes, the lease shall terminate and
Lessor shall be allowed to retake the premises.
2.
(a) Lessee agrees to pay Lessor Seventy-Five and No/100 Dollars ($75.00) per
month as rent for said premises for the term of this Lease.
(b) For the term of the Lease, Lessor shall submit to Lessee monthly statements
for the cost of those utilities (water, electricity, heating, garbage) billed to Lessee based on
the prorated useable square footage of the building occupied by Lessee accompanied by
an affidavit as required bylaw. Lessee shall be responsible to pay, by the applicable due
date,for those utilities metered directly and/or prorated to the 13371 square feet of Leased
Premises.
(c) Should the Lease term be terminated as herein provided, other than by lapse
of time, all of Lessee's obligation to pay rent under the terms of this Lease shall be made
only to the date of such termination. Should the Lessor furnish less or provide greater
space than is provided on its proposal, the total monthly rental and applicable utilities shall
be adjusted proportionally.
3.
Lessee hereby agrees that all payments for rent and utilities shall be made to Lessor
at the following address:
City of Beaumont
P. O. Box 3827
Beaumont, Texas 77704
Page 2
4.
(a) Lessor agrees that all invoices for rent and utilities (and any reasonably
necessary and appropriate maintenance) to be borne by Lessee and all written notices
shall be made to Lessee at the following addresses:
Dr. James Simmons ro 'c wF d
4AA9-a
Beaumont, Texas 77q-G&- '7 ''171 n
(b) Lessee is responsible for the installation, maintenance and all costs
associated with its telephone system. The Leased Premises are leased without a
telephone system.
5.
Restrooms, elevators, stairs, hallways, lobbies, parking lots, courtyards, walkways,
and all other common areas of the building are for the joint use of Lessee and the other
occupants of the building. Lessee and its officers, employees, agents, and invitees will use
such common areas in a reasonable, orderly, and sanitary manner in cooperation with all
other tenants and their officers, employees, agents and invitees.
6.
Lessor covenants and agrees to pay all taxes of whatever nature, levied and
assessed and to be levied or assessed, on or against the leased property and
improvements, if any, during the term of the Lease; and to keep the Leased Premises,
property and buildings in good repair and condition during the continuance of the term of
this Lease, said maintenance to cover parking and grounds, exterior walls, roof, and
common areas. Lessee agrees to be responsible for the janitorial services within the
13371 square feet of Leased Premises.
Page 3
i
7.
It is further understood and agreed that if the Lessor does not maintain the premises
and all appurtenances thereto, as heretofore specified, in reasonably good repair,
reasonable wear and tear excepted, the Lessee shall notify the Lessor in writing in
reference thereto by registered mail. If, within thirty (30) days after such notice has been
received by Lessor, said Lessor fails to take steps to remedy the grievance specified, the
Lessee may terminate this Lease by notice in writing to the Lessor.
8.
Lessor further covenants that it will place Lessee in possession of said premises
free from any claims of all parties in possession and of third parties claiming rights in and
to the use of said premises, and that Lessor has a good and clear title to the demised
premises. Lessor warrants and defends until Lessee against the claims of all persons to
the leasehold interests of the Lessee.
9.
Lessee shall not, without first obtaining the written consent of Lessor, make any
alterations, additions, improvements in, to or about the Leased Premises; provided,
however, that such consent shall not be unreasonably withheld. It is important that Lessor
maintain control of the premises to ensure that the Leased Premises is not inconsistent
with the Lessor's intended purpose. Any work done by Lessee in, to or about the Leased
Premises shall be done in a good and workmanlike manner and without impairing the
structural integrity of the building, and no liens shall attach to the Leased Premises or to
the building of which same are a part.
Page 4
10.
On termination of this Lease, by lapse of time or otherwise, Lessee may, within a
reasonable time thereafter, at its option and expense, remove from said premises any and
all improvements, equipment, appliances or other property placed or owned by it thereon;
and shall deliver up said premises and property to Lessor in as good order and condition
as they are , or may be put by the Lessor, provided, however, that reasonable use,
ordinary wear and tear, depreciation, damages or destruction by fire or the elements or
unavoidable casualty and repairs, and replacements,forwhich the Lessor is obligated, are
expected.
11.
If, during the term of this Lease, said premises, or any portion thereof, shall be
condemned for any public purpose, Lessee shall have the option of terminating and
cancelling this Lease upon thirty (30) days notice to Lessor of its election so to do.
12.
It is mutually agreed between the Lessor and Lessee that if said building and
premises shall, during the term of this Lease or previous thereto, be slightly damaged by
fire or any other cause or causes, the same shall be promptly repaired by Lessor. But if
said building and premises be so damaged as to render said premises unfit for occupancy,
then, and from the date of such damage, this Lease shall cease and be void; and rent and
other obligations hereunder shall be due and payable only to the date of such damage.
13.
Lessor shall not be liable to Lessee for damage or loss to personal property unless
such loss or damage is caused by negligence of Lessor, as allowed by law. Lessee shall
Page 5
procure and maintain all insurance which it deems necessary for its protection against loss
of or damage to any property in or on the Leased Premises.
14.
To the extent authorized under the Texas Tort Claims Act and the Constitution of
the State of Texas, Lessee shall indemnify Lessor in the event Lessee shall be in default
in the payment of rentals or other charges hereunder or shall otherwise breach its
covenants or obligations hereunder, and shall be and remain in default for a period of thirty
(30) days after notice from Lessor to it of such default, Lessor shall have the right and
privilege of terminating this Lease and declaring the same at an end, and of entering upon
and taking possession of said premises, and shall have the remedies now or hereafter
provided by law for recovery of rent, repossession of the premises and damages
occasioned by such default.
15.
To the extent authorized under the Texas Tort Claims Act and the Constitution of
the State of Texas, Lessor shall indemnify Lessee in the event Lessor shall breach or be
in default in the performance of any of the covenants or obligations on it herein imposed,
and shall remain in default for a period of thirty (30) days after notice from Lessee to it of
such default in which cause/event Lessee shall have the right and privilege of terminating
this Lease and declaring the same at an end, and shall have the remedies now or hereafter
provided by law for recovery of damages occasioned by such default.
16.
Lessee will comply with any and all laws, ordinances, rules, orders and regulations
of the federal, state and local governments.
6y -i-A e i s ojC ffie &'°M o i�x4s.
Page 6
17.
This Lease may be renewed and extended by mutual written agreement for an
additional five (5) year term at the same rental and under the same conditions as this
Lease.
18.
Either party may terminate this Lease with or without cause by giving written notice
to the other at least sixty (60) days prior to the date such cancellation is effective.
19.
The failure of the Lessee or Lessor to insist in any one or more instances on a strict
performance of any of the covenants of this Lease shall not be construed as a waiver or
relinquishment for the future of such covenant or option, but the same shall continue and
remain in full force and effect.
20.
All proposals, negotiations, notices, and representations with reference to matters
covered by this Lease are merged in this instrument and no amendment or modification
thereof shall be valid unless evidenced in writing and signed by both parties.
EXECUTED this day of , 2009.
LESSOR
CITY OF BEAUMONT
ATTEST: By:
Kyle Hayes
City Manager
City Clerk
LESSEE
LAMAR U SI Y
By:
Dr. Ja plMns
V
Page 7
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LAMAR UNIVERSITY Beaumont,Tx 77710
A:Member of The Texas State University Syztcm (409) 880-2233
Fax: (409) 880-1832
http://www.lamar.edu/ce http://www.lamar.edu/ce
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The mission of the Division of Continuing Education is to promote life-long learning by extending the
resources of Lamar University to the Southeast Texas region,the state,the nation and in some
instances,internationally.
Non-Credit Programs (NCP) is a non-profit,
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Small Business Development Center - College of Business - Lamar University Page 1 of 2
LAA UIVITY
A MEMBER OF THE TEXAS STATE UNIVERSITY SYSTEM
Small Business Development Center
SBDC Neblrork
Home News Resource Training & Events Contact Us Entrepreneurship @ Lamar University
CLASSES
Call 409-880-2367
We provide free one-on-one
consulting and affordable
training seminars. Our expert
consultants act as your sounding
board, helping you work through
management, marketing,
finance and operational business
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business experience with you in
training sessions.
Whether you're just starting out,
experiencing your first growing
pains, or wanting to take your
business to the next level,you
can access vital business
information, education and assistance through the Lamar University Small Business
Development Center(SBDC). SBDC consultants help clients develop strategies, attract
customers, increase sales, improve productivity and profitability.
Since the LU SBDC is part of the University of Houston SBDC Network we can connect your
business to resources and tools you need to succeed.Through network programs we can help
you sell to the government, do business internationally, or commercialize your technology.
To schedule an appointment, call our SBDC office at 880-2367 or 1-800-722-3443.
The Lamar University SBDC is a business consulting and training center of the University of Houston Small Business Development Center Network.The UH
SBDC Network serves 32 counties in Southeast Texas.
The Lamar University SBDC is also part of the Lamar University College of Business. Lamar University is part of the Texas State University System.The views
and opinions expressed in this document are strictly those of the author(s)and do not necessarily reflect the views or opinions of the State of Texas,the
Regents or officials of The Texas State University System,the Lamar University Administration,any Lamar University college or department,or any
recognized Lamar University organization.Comments on the contents of this document should be directed to the author(s).
UH SBDC Network is a program of the UH CT Bauer College of Business and a resource partner of the US SMall Business Administration.The SBDC is partially
funded by the US Small Business Administration.SBA's funding is not an endorsement of any products,opinions or services. SBA's programs are extended to
the public on a non-discriminatory basis.The University of Houston is an EEO/AA institution.
http://sbdc.cob.lamar.edu/ 8/21/2009
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 University for the lease of space in the Downtown Public Library located at 801 Pearl Street.
The lease is $75 per month for an annual amount of$900. Lamar is responsible for their cost of
utilities (water, electricity, heating, garbage) based on the prorated square footage of the
leased premises. Lamar will also be responsible for janitorial services.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
B
RICH WITH OPPORTUNITY
r
T . E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
MEETING DATE: August 25, 2009
REQUESTED ACTION: Approve the waiver of penalties and interest on three tax accounts
processed by the Jefferson County Tax Assessor-Collector's Office.
BACKGROUND
Section 3 3.011 of the State Property Tax Code states"the governing body of a taxing unit may
provide for the waiver of penalties and interest on a delinquent tax if an act or omission of an
officer, employee, or agent of the taxing unit caused the taxpayer's failure to pay the tax before
the delinquency and if the tax is paid within 21 days after the taxpayer knows or should know of
the delinquency." The Jefferson County Commissioners' Court approved the waiver of penalties
and interest on the accounts on August 10, 2009. A letter from the Tax Assessor-Collector is
attached for your review as well as information relating to the three tax accounts.
BUDGETARY IMPACT
None.
ON C0��
MIRIAM K. JOHNSON
� 'ac SUSIE JAMES
TAX ASSESSOR-COLLECTOR 1 CHIEF DEPUTY
August 12, 2009
Kyle Hayes
City of Beaumont
P O Box 3827
Beaumont, TX 77704
Dear Mr. Hayes:
The Tax Office has accepted three (3) payments that were processed according to Sec.
33.011 of the State Property Tax Code. For your information, Sec. 33.011 reads as
follows: "The governing body of a taxing unit may provide for the waiver of penalties
and interest on a delinquent tax if an act or omission of an officer, employee, or agent of
the taxing unit caused the taxpayer's failure to pay the tax before the delinquency and if
the tax is paid within 21 days after the taxpayer knows or should know of the
delinquency."
The Commissioners' Court met on August 10, 2009 and approved waiver of penalty and
interest on these accounts which are listed on Attachment A. I am now requesting that
you present this information to your governing body in order to ratify the Commissioners'
Court action in accepting these payments. If you should have any problems or questions
concerning this matter, please let me know right away. Please notify me in writing as
soon as ratification has occurred. I look forward to hearing from you.
Sincerely,
iJ
MIRIAM K. JOHN ON
Assessor-Collector of Taxes
Jefferson County, Texas
MKJ:db
Attachment
Waive p&i letter
JEFFERSON COUNTY COURTHOUSE • P.O. BOX 2112 • BEAUMONT, TEXAS 77704-2112
PHONE: (409)835-8516 • FAX: (409)835-8589
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF BEAUMONT:
THAT the penalty and interest on the accounts shown on Attachment A be and are hereby
waived pursuant to Section 33.011(a)(2) of the Texas Property Code.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
ATTACHMENT A
WAIVER OF P & I— CITY OF BEAUMONT
Taxpayer's Name Total Levy Waiver of P & I
Account Number Paid Re uested
1. Sabih Mostafa 1247.70 286.97
017250-100/043800-00000
2007
2. Galen Key 34.21 4.11
047550-001700
2007
3. Michael Hall 344.64 62.04
051000-001200
2008
TOTAL 1626.55 358.25
c
RICH WITH OPPORTUNITY
r
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: August 25, 2009
REQUESTED ACTION: Council consider a resolution authorizing approval of
Change Order No. 1 in the amount of$7,085.96 and final
payment in the amount of$194,030.77 for 2008 Asphalt
Street Rehabilitation Program.
RECOMMENDATION
Administration recommends approval of Change Order No. 1, in the amount of$7,085.96, for
adjusting estimated construction quantities to match quantities actually used during the
performance of the project and to authorize final payment in the amount of$194,030.77 to LD
Construction.
BACKGROUND
On May 27, 2008, City Council awarded LD Construction the contract for the 2008 Asphalt
Street Rehabilitation Program Project for the amount of$3,873,529.40.
Due to increase in the construction quantities, Change Order No. 1 in the amount of$7,085.96 is
required to adjust the estimated quantities during the performance of the project increasing the
contract amount to $3,880,615.36.
The MBE participation will not be required because the general contractor has been certified as a
Minority Business Enterprise. The project has been inspected by the Engineering Division and
found to be complete in accordance with the provisions and terms set out in the contract.
BUDGETARY IMPACT
Funds are available in the Capital Program.
STATE OF TEXAS
COUNTY OF JEFFERSON
PROJECT
PROJECT NO.
CONTRACTOR t�UQ
ADDRESS 14,-�WM kD a&( �,PY
777`7
AFFIDAVIT OF PAYMENT
. F RE , the undersigned authority, on this day personally appeared,
who being by me duly sworn, stated the following:
"My name is I am Av2y=LCz
and as such am dul authorized to make this affidavit. 0All, bills for
labor, materials, equipment, and other indebtedness connected with the work which
forms the basis for the attached certified estimate have been paid, . _
within dytc
(INDIVID AL'S SIGNATURE
,SWORN TO AND SUBSCRIBED TO BEFORE ME, the undersigned authority on
20 Y.
Notary Si re
SEAL
Notary P =4 IOVKX LYTLE
' MY COMMISSION EXPIRES
State of Texa 'yam, Mey29,2013
CITY OF BEAUMONT
OTE: August 5,2009
PROJECT: 2008 ASPHALT STREET REHABILITATION PROGRAM PROJECT
OWNER: CITY OF BEAUMONT
CONTRACTOR: LD CONSTRUCTION
CHANGE ORDER NO.: 1 (FINAL)
THE FOLLOWING CHANGES IN THE PLANS AND/OR SPECIFICATIONS ARE HEREBY MADE:
Adjust the Estimated Quantities to reflect the Actual Quantities used in completing the project.
ORIGINAL CONTRACT AMOUNT: $3,873,529.40
NET FROM PREVIOUS CHANGE ORDERS: $3,873,529.40
'r
TOTAL AMOUNT OF THIS CHANGE ORDER: $7,085.96_
PERCENT OF THIS CHANGE ORDER: 0.1_8%
TOTAL PERCENT CHANGE TO DATE: 0.18%
NEW CONTRACT AMOUNT: $3,880,615.36
CONTRACT TIMES IS NOT AFFECTED BY THIS CHANGE ORDER'
OCCEPTED BY:
C NTRACTOR
APPROVED BY:
JORIS P.COLBERT,P.E- CITY ENGINEER
THOMAS A.WARNER,P.E.
DIRECTOR OF PUBLIC WORKS
KYLE HAYES,CITY MANAGER
ATTESTED BY:
CITY CLERK
OF BEAUMONT ES TE 0,
_ - - -
[PROJECT: 2008 ASPHALT STREET REHABILITATION PROJECT JNEW CONTRACT AMOUNT $3,873,529.40 PERCENT OF TIME USED 98 66
CONTRACTOR: LD CONSTRUCTION CONTRACT DATE: MAY 27,2008 PERCENT OF WORK COMPLETED: 100.18
MONTHLY ESTIMATE NO.: 14(FINAL) NEW CONTRACT CALENDAR DAYS 374 _
-- - -
PERIOD ENDING: AUGUST 1-31,2009 CALENDAR DAYS USED 369
CHANGE ORDERS: NO.01(FINAL)
I ITEM DESC DESCRIPTION UNIT EST --PREVIOUS TO GATE TOTAL ESTIMATE UNIT +--TOTAL
�� -- - - -- - �-4 2 0.00 -ESTIMATE
zs oo ESTIMA o 0o TO DATE eao.o6r PRICE 24.04 AMOUNT
$141.601
r 00 CODE REMOVING CONCRETE(CURBS) MEASURE 9 394.00 7,840.08, 0.00, $
110 001 ,EXCAVATION(ROADWAY) - __ F -_ -__-
132 I. 001 EMBANKMENT-FLEX BASE(TYA)(GR 1)(DC)(COMP IN PL)(FINAL POSITION) TN 4,673.00 1,146.90 0.00 1,146.90 -_ -- $30.001 $34,407.00
1 _-__ -__ �. _-MG _ - _- -_ ._
247 -002 FLEX BASE(TYA)(GR 1)(DC)(COMP IN PL)(FNL POS)NDEW BASE(1(2"')-6) TN 1,500.001 387.80 0.00 387.80 $5.00._ $1,939.00
_ -
204 I 001 SPRINKLING(DUST CONTROL) _ _ _
- 16,406 00 15,392.74 0.00 15,392.74 $33.00 $507,960.42
1 24 ' --_ - _. - _._ ._.-
r 17,848 001 17,674.13 0.00 17,874.13 $33.00 $589,846.29
I_. ( )( )( ) ) ___
I
251 001 REWORKING BASE COURSE(EXIST)(TY D)(DC) t GAL ! 12,719.00 8,700.00 0.00 87'366 57 $2.60' $227,153.08
+- SY 79,549.00 87,366.57' 0.00
31310 001 ASPHALTIC MATERIAL(AE-P) GAL 19,212.00, 23,525.00 0.00 23,525 00 $3.50 $82,337.50
01) ASPHALTIC MATERIAL(AC 10) - -- --.-- - -- - -- --- --- - --- 8,700 00 -_ $3.00 $26,'00.00
340 001 HOT MIX ASPHALT(TY D)(1-112-)(PG64-20)ROADWAY f TN 17,736.00 18,860.27 0.00 18,860.27 $81.00 $1,527,681.87'
340 002 )HOT MIX ASPHALT(TY D)(1-1/2")(PG64-20)TRANSITIONS ! TN + 547.00 377.41 0.00 377.41 $80.00, $30, 92.00
h 340 _003 HOT MIX ASPHALT TY D)(1-1/2")(PG64-20 DRIVEWAYS -.-_ _ 2,137.32, 0.00 2,137.32 $75.00 $160,299.00i
351 001 FLEX STRUCTURE PVMT REPAIR(BASE COURSE)(12") SY 301.00 -~
- I-- -- 2 39 41.76 -_0.00 941.76 $80.001 $75,340.801
340 004 HOT MIX ASPHALT(TY F)(1 1/2)(PG64-20)LEVEL UP - TN _ 941 761 0.00 72 22� - ---$50.00 $3,611.00'
( ) __ _ _ _ _ _ _ _
' 354 001 PLANING&TEXTURING PAVEMENT SY 29,561.00 27,773.00 0.00 27,773.00 $2.001 $55,546.00,
356 001 FA1 BRICUNDERSEAL SY 37,58 0 35,762.00 0. O 35,762.00 $2.00 $71,524.00;
438 001 CLEANING&SEALING JTS&CRACKS LARGER THAN 1-1/2" LF 31,320,001 56,286.001 0.00 56,286.001 $1.25, $70,357.50
14 - _ _- -_-- _ - --- EA _ 12400
- 87.00 - 0.00 -- 87.00 $10000 $8,700.00
500 I 001 MO UST2AWAOTN R GATE VALVE --. _ LS 71 001 31.00 0 00 3LO00' $200,000 0 $200,000 001
502 001 BARRICADES,SIGNS&TRAFFIC HANDLING - MO 10.001 10.00 0.00 10.00 $1,00 $10 000. 00 III
506 001 TEMP.EROS. SED.,&ENVIR.CNTRL.(HAY BALES) EA 50.00 0.00 0.001 _.0.001 $10.00
506 002 TEMP.EROS.SED.,&ENVIR.CNTRL.(FABRIC SILT FENCE) T LF 379000 65.00 61.0 65.00 $1.00 $65.00!
529_ 001 CONCRETE CURB AND GUTTER COMBINED LF 210.00 O.Oo 0 00 0.00 $20.001 $0.00
760_ 001 CLEANING AND RESHAPING DITCHES(NEW DITCH) _ ---__ LF I- 880.001 - --0.00 - 000' 0.00 - $�_ -- - $0.00
251 1 001 (CEMENT TREATMENT(ROAD MIX)(EXISTING MATERIALS)(5/) C.O #1 - TN i 600.001 295.30 - 0 00 - 295.30 __ $125 00 - $36,912.50
GRAND TOTAL AMOUNT OF WORK DONE: $3,880,615.36
PREPARED BY: LESS 5%RETAINAGE: $0.00
FAEL G.MIRANDA,Cl IL E GINEER III
SUB TOTAL: $3,880,615.36
APPROVED BY:
JORIS P.COLBERT,P.E. CITY ENGINEER LESS PREVIOUS PAY ESTIMATE: $3,686,584.59
AMOUNT DUE THIS ESTIMATE: $194,030.77
THOMAS A. WARNER,P.E. DIRECTOR OF PUBLIC WORKS
RESOLUTION NO.
WHEREAS, on May 27, 2008, the City Council of the City of Beaumont, Texas,
passed Resolution No. 08-162 awarding a contract in the amount of$3,873,529.40 to LD
Construction, Beaumont, Texas, for the 2008 Asphalt Street Rehabilitation Program;
WHEREAS, Change Order No. 1 in the amount of $7,085.96 is required to adjust
estimated construction quantities to match quantities actually used, thereby increasing the
contract amount to $3,880,615.36; and
WHEREAS, the project has been inspected and completed in accordance with the
terms and conditions of the contract and should be accepted;
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
in the amount of$7,085.96, thereby increasing the contract amount to $3,880,615.36.
BE IT FURTHER RESOLVED THAT the 2008 Asphalt Street Rehabilitation Program
Project be and the same is hereby accepted.
BE IT ALSO RESOLVED THAT the City Manager is hereby authorized to make final
payment in the amount of $194,030.77 to LD Construction.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
D
[117LAIIII�Icl
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: August 25, 2009
REQUESTED ACTION: Council consider authorizing the award of a contract for the
purchase of asphalts, oils, and emulsions.
RECOMMENDATION
The administration recommends the award of a contract to Martin Asphalt Company of Houston
in the annual estimated amount of$121,850.00.
BACKGROUND
Bids were requested for an annual contract for asphalts, oils and emulsions for use by the Public
Works Department, Streets and Drainage Division. The materials are used as bonding agents in
the maintenance and repair of streets. In addition to street repairs, these materials will be used for
the Street Rehabilitation Program. Bid notices were provided to three (3) vendors with Martin
Asphalt being the only bidder responding with pricing reflected in the table below.
Product Description Estimated Unit Price/Gal. Total Price
Quantity-
Gallons
SS-1: Slow set oil base 6,000 $1.85 $11,100.00
RS-2: Rapid set oil base 10,000 $1.85 $18,500.00
AES-300: Water base emulsion 30,000 $1.95 $58,500.00
AE-P: Primer 15,000 $2.25 $33,750.00
TOTAL $121,850.
BUDGETARYIMPACT
Funds are available in the Public Works Department, Streets and Drainage Division's operating
budget and in the Capital Program.
RESOLUTION NO.
WHEREAS, bids were solicited fora contract for the purchase of asphalts, oils, and
emulsions for use by the Public Works Department, Streets and Drainage Division; and,
WHEREAS, Martin Asphalt Company of Houston, Texas, submitted a bid in the
estimated amount of $121,850.00 in the unit amounts shown below:
Product Description Estimated Unit Price / Total Price
Quantity - Gal.
Gallons
SS-1: Slow set oil base 6,000 $1.85 $11,100.00
RS-2: Rapid set oil base 10,000 $1.85 $18,500.00
AES-300: Water base 30,000 $1.95 $58,500.00
emulsion
AE-P: Primer 15,000 $2.25 $33,750.00
TOTAL $121,850.00
;and,
WHEREAS, City Council is of the opinion that the bid submitted by Martin Asphalt
Company 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 Martin Asphalt Company of Houston, Texas, for a contract to
purchase asphalts, oils, and emulsions for use by the Public Works Department, Streets
and Drainage Division in the unit amounts as shown above for an annual estimated
amount of $121,850.00 be accepted by the City of Beaumont.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
E
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
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council consider adopting an alternative retirement plan
for part-time, seasonal, and temporary employees and
appointing a Plan Administrator.
RECOMMENDATION
Administration recommends Council adopt the PARS 457 Trust, including the PARS Section
457 FICA Alternative Retirement Plan and appointing the Chief Financial Officer as the City's
Plan Administrator for the Public Agency Retirement System.
BACKGROUND
On July 29, 2009 by Resolution 09-217, Council authorized the City Manager to execute an
agreement with Public Agency Retirement Services (PARS) to provide an alternative retirement
system for part-time, seasonal, and temporary employees (PSTs). In the Alternative Retirement
Plan the employee will contribute 6.2% which is the current amount contributed for Social
Security (FICA) and the City will contribute 1.3% for a total contribution of 7.5%. The
employee will be fully vested in his/her individual accounts upon the date of employment, will
see an increase in take-home pay because the 6.2% contribution will be deducted pre-tax, and
upon separation from the City, may immediately receive, without penalty, the amount in the
account.
BUDGETARYIMPACT
Potential savings of$27,000, in payroll taxes in the first year, depending upon the total number
of employees and their related wages.
I
Resolution No.
CITY OF BEAUMONT
JEFFERSON COUNTY, TEXAS
WHEREAS it is determined to be in the City's best interest and its employees to provide a
Qualifying Retirement System for its employees not currently eligible for such a Qualifying
Retirement System, thereby meeting the requirements of Section 11332 of the Omnibus Budget
Reconciliation Act (OBRA 90) and Section 312 1(b)(7)(F) of the Internal Revenue Code (IRC);
WHEREAS the Public Agency Retirement System (PARS) has made such a system available to
the City and its eligible employees and qualifies under OBRA 90 Section 11332, IRC Sections
3121(b)(7)(F) and 457(b), and meets the meaning of the term "retirement system" as given by
Section 218(b)(4) of the Federal Social Security Act.
NOW THEREFORE, BE IT RESOLVED THAT:
1. The City Council hereby adopts the PARS 457 Trust, including the PARS Section
457 FICA Alternative Retirement Plan, effective , 2009, the Effective Date
for the benefit of employees on that date and hired thereafter; and
2. The City Council hereby appoints the Chief Financial Officer, or his/her successor or
his/her designee, as the City's Plan Administrator for the Public Agency Retirement
System; and
3. The City's Plan Administrator is hereby authorized to implement the plan(s), execute
the PARS legal documents on behalf of the City and to take whatever additional
actions are necessary to maintain the City's participation in PARS and to maintain
PARS compliance of any relevant regulation issued or as may be issued; therefore,
authorizing him/her to take whatever additional actions are required to administer the
City's PARS plan(s).
AYES: NOES: ABSENT: ABSTAIN:
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
STATE OF TEXAS
COUNTY OF JEFFERSON
, the City Clerk of the City Council of the City of Beaumont of
Jefferson County, Texas, hereby certifies that the above foregoing resolution was duly and
regularly adopted by said City at a regular meeting thereof held on the , and passed
by a vote of said Council.
IN WITNESS WHEREOF I have hereunto set my hand and seal this
City Clerk
RICH WITH OPPORTUNITY
BEA,UMON*,
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: August 25, 2009
REQUESTED ACTION: Council consider authorizing the award of contract for
concession management services.
RECOMMENDATION
The Administration recommends the award of a contract to Treat America Food Service of
Merriam, Kansas.
BACKGROUND
Requests for Proposal were solicited for a three (3)year contract with an option to renew for an
additional three (3) years for concession management services. Concession management services
include catering, concessions and event sales of beer, liquor and novelties. Facilities include the
Civic Center, Julie Rogers Theater, Jefferson Theater and Riverfront Park.
Bid notifications were provided to four(4) vendors and one(1) response was received. Treat
America Food Service has been the vendor for the past six(6) years. The proposed percentages
of gross sales to be paid to the City are as follows:
DESCRIPTION PERCENTAGE
Vending N/A
Beer/ Liquor 26.5
Catering 12
Third Party/Novelties 50
Concessions 23
Commission rates remained the same except for catering which was 14.1 percent and concessions
which was 26.5 percent.
Page 2
August 25, 2009
Concession Management Services
The concessionaire is responsible for maintaining all state and local licensing and insurance for the
operation of a food and liquor service. They are granted exclusive rights to sell and distribute
food, alcoholic and non-alcoholic beverages, catering rights and privileges, incidental sales,
services, programs, periodicals and novelties. The concessionaire is not allowed to sell tobacco or
tobacco products.
BUDGETARY IMPACT
Revenue for fiscal year 2009 was budgeted at $75,800 and revenue for fiscal year 2010 is
budgeted at $84,000. Revenues will be deposited in the General Fund.
RESOLUTION NO.
WHEREAS, bids were received for a three (3) year contract for concession
management services at the Civic Center, Julie Rogers Theater, Jefferson Theater and
River Front Park; and,
WHEREAS, Treat American Food Service, Merriam, Kansas, submitted a bid with
fixed percentages to be paid to the City as shown below:
DESCRIPTION PERCENTAGE
Vending NA
Beer/ Liquor 26.5
Catering 12
Third Party / Novelties 50
Concessions 23
and
WHEREAS, City Council is of the opinion that the bid submitted as shown above
should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the bid submitted by Treat America Food Service, Merriam, Kansas, for a three (3)
year contract for concession management services at the Civic Center, Julie Rogers
Theater, Jefferson Theater and River Front Park, with an option to renew for an additional
three (3) years, at the fixed percentages shown above be accepted by the City of
Beaumont.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
G
RICH WITH OPPORTUNITY
111'CmA,111�IU1111)(
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: August 25, 2009
REQUESTED ACTION: Council consider a resolution authorizing the acquisition
of property.
RECOMMENDATION
The Administration recommends authorizing City Council approve a resolution for the
acquisition of property in the N. A. McMillan Addition for the Downtown Park and Event
Center
BACKGROUND
As part of the development of the Downtown Event Center and Lake Park, lots are being
acquired in downtown Beaumont in the area bordered by Martin Luther King Jr. Parkway,
Crockett Street, Neches Street and an abandoned rail line. Owners of the property listed below,
have agreed to convey to the City,property for a parking area adjacent to the event center:
Lots One through Six (1-6), inclusive, Block Eight(8)
N. A. McMillan Addition
Value: $165,996.00
Owners: Loretta A. Watkins and Cecil W. DuBois
The total value of the property includes the subtraction of$4.00 for retained property.
BUDGETARYIMPACT
Funds are available in the Capital Program.
engdubois-ib.wpd
17 August 2009
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RESOLUTION NO.
WHEREAS, an agreement has been negotiated for the acquisition of property as
shown below for the Downtown Event Center and Lake Park:
Lots One through Six (1-6), inclusive, Block Eight (8), N. A.
McMillan Addition
Value: $165,996.00
Owners: Loretta A. Watkins and Cecil W. DuBois
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the purchase of the above described property be, and the same is hereby,
approved.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
H
RICH WITH OPPORTUNITY
[I I'CA,
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tyrone E. Cooper, City AttojY ll�
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council consider a resolution authorizing the settlement of the
claim of Edward E. Zachary.
RECOMMENDATION
Council approval of a resolution authorizing the settlement of the claim of Edward E. Zachary.
BACKGROUND
Council discussed the settlement of this claim in Executive Session on August 4, 2009.
BUDGETARYIMPACT
There are sufficient funds in the Liability Trust Fund to pay the sum of$55,000.00.
RESOLUTION NO.
WHEREAS, the claim of Edward E. Zachary has been discussed in an Executive
Session properly called and held Tuesday, August 4, 2009; and,
WHEREAS, the Council desires to authorize the settlement of the claim;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City Attorney be and he is hereby authorized to settle the claim of Edward E.
Zachary in the amount of Fifty-Five Thousand Dollars ($55,000).
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
RICH WITH OPPORTUNITY
r
T • E • X • A • S
REGULAR MEETING OF THE CITY COUNCIL
BEAUMONT CIVIC CENTER AUGUST 25, 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 2-13/Consent
Agenda
* Consent Agenda
GENERAL BUSINESS
1. Consider a request for an amended specific use permit to allow the expansion of a
medical office in an RM-H(Residential Multiple Family Dwelling-Highest Density)
District at 4229 Eastex Freeway
2. Consider approving the purchase of a fire truck
3. Consider amending Article II Sec. 26-23 of the Code of Ordinances by adding
Tyrrell Park Road to the Schedule of Streets to increase the speed limit to a 40
miles per hour speed limit between the Milebrandt Bayou Bridge and Fannett
Road (SH 124)
4. Consider amending Article II Sec. 26-23 of the Code of Ordinances by adding
R.F.D. Road to the Schedule of Streets to increase the speed limit to a 40 miles
per hour speed limit between SH 105 and US 69/96 (Eastex Freeway)
5. Consider amending Article II Section 26-24 of the Code of Ordinances to update
the locations and limits of school speed zones
6. Consider adopting an ordinance approving the institution of a Cost of Service
Adjustment rate schedule by Centerpoint Energy Entex which provides for an
annual rate cost of service and rate base adjustment based upon the Company's
annual cost data
7. Consider adopting an ordinance granting a public utility franchise to Centerpoint
Energy Texas Gas Operations to operate a gas utility within the City of Beaumont
8. Consider adopting the 2009 Drought Contingency Plan and renewing the City's
commitment to Chapter 28, Article III, Section 28-59 of the Code of Ordinances
9. Consider authorizing the City Manager to enter into contracts for the purchase of
homes and the provision of relocation assistance for their owners of houses
flooded during Hurricane Ike in conjunction with the approved Hazard Mitigation
Grant Program's Acquisition and Demolition Program
10. Consider approving a resolution authorizing the City Manager to execute water
and/or wastewater service agreements with City of Beaumont wholesale customers
11. Consider approving a one year contract with Blue Cross Blue Shield of Texas for
employee medical and dental insurance
12. Consider authorizing the City Manager to implement contribution rate changes for
retirees in the medical plans
13. Consider approving a contract with CVS Caremark for Pharmacy Benefit Manager
services for City employees
14. PUBLIC HEARING: Dangerous Structures
Consider approval of an ordinance declaring certain structures to be dangerous
structures and ordering their removal within 10 days or authorizing the property
owner to enroll the dangerous structure in a work program
WORKSESSION
* Review and discuss the proposed FY 2010 Budget
* Review and discuss the proposed FY 2010 Capital Program
* Review and discuss the proposed 2009 (FY 2010) Tax Rate
PUBLIC HEARING
* Receive comments on the proposed FY 2010 Budget and proposed FY 2010
Capital Program
PUBLIC HEARING
* Receive comments on the proposed 2009 (FY 20 10) Tax Rate
COMMENTS
* Councilmembers/City Manager comment on various matters
* Public Comment (Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
Douglas Manning, et al v. City of Beaumont
Derrick Newman v. David Todd Burke, et al
Fannett Entertainment, Inc. v. City of Beaumont, et al
Eric Kvarme, et al v. City of Beaumont, et al
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or
services are requested to contact Lenny Caballero at 880-3716 three days prior to the meeting.
1
August 25, 2009
Consider a request for an amended specific use permit to allow the expansion of a medical office
in an RM-H(Residential Multiple Family Dwelling-Highest Density)District at 4229 Eastex
Freeway
RICH WITH OPPORTUNITY
11 r
C Ai 11 1�1 C1 11 (
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
CSC
PREPARED BY: Chris Boone, Community Development Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council to consider a request for an amended specific use
permit to allow the expansion of a medical office in an RM-
H (Re.,idential Multiple Family Dwelling-Highest Density)
District at 4229 Eastex Freeway.
RECOMMENDATION
The Administration recommends approval of the amended specific use permit subject to the
following condition:
• The building shall meet all building code requirements and shall be securely fixed
to a permanent foundation.
BACKGROUND
Dr. John Webb, representing Beaumont Medical Clinic, has applied for an amended specific use
permit.
In August, 1986, City Council approved a specific use permit to allow a parking lot on the
subject property. The parking lot was to serve the Medi-Quick Medical Care Centers medical
office that was located at 5220 Eastex Freeway. At that time, the property was also rezoned to
RM-H.
Beaumont Medical Clinic, the current tenant, has moved a 2,016 sq. ft. portable commercial
building onto a portion of the rear parking lot to augment the existing medical practice. A
building permit was applied for on July 3, 2007. The building had been moved to its present
location approximately seven days prior to the permit application.
Dr. Webb states that the building will be open from 8:30 a.m. to 6:00 p.m. A 7' tall wood
screening fence exists along the north property line and a portion of the east property line. Staff
has been informed that the building will be at this location for two years. However, windstorm
requirements require that the building be placed on a permanent foundation.
With the placement of the building, the parking lot is being re-arranged to accommodate 39
parking spaces. Twenty-two parking spaces are required for the existing building and the new
addition.
At a Joint Public Hearing held August 17, 2009, the Planning Commission recommended
approval 6:0 of an amended specific use permit subject to the following condition:
• The building shall meet all building code requirements and shall be securely fixed
to a permanent foundation.
BUDGETARY IMPACT
None.
ORDINANCE NO.
ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC
USE PERMIT TO BEAUMONT MEDICAL CLINIC TO ALLOW THE
EXPANSION OF A MEDICAL OFFICE IN AN RM-H (RESIDENTIAL
MULTIPLE FAMILY DWELLING-HIGHEST DENSITY)DISTRICTAT
4229 EASTEX FREEWAY.
WHEREAS, on August 5, 1986, City Council approved Ordinance 86-78 issuing a
specific use permit to Medi-Quick Medical Care Centers to allow a parking lot on property
located at 4325 Treadway; and,
WHEREAS, the applicant, Beaumont Medical Clinic, current tenant, wishes to
amend the specific use permit to allow the expansion of a medical office in an RM-H
(Residential Multiple Family Dwelling - Highest Density) District at 4229 Eastex Freeway,
being Tract 98, Plat D-23, F. Bigner Survey, Ab. 26, City of Beaumont, Jefferson County,
Texas, containing 0.2639 acres, more or less, as shown on Exhibit"A"attached hereto and
made a part hereof for all purposes; and,
WHEREAS, the Planning and Zoning Commission of the City of Beaumont
considered the request to amend the specific use permit to allow the expansion of a
medical office in an RM-H (Residential Multiple Family Dwelling - Highest Density) District
for property located at 4229 Eastex Freeway; and,
WHEREAS, the City Council is of the opinion that the amendment of such specific
use permit is in the best interest of the City of Beaumont and its citizens, subject to the
hereinafter described conditions;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
THAT Ordinance 86-78 be amended by amending the specific use permit granted to Medi-
Quick Medical Care Centers, their legal representatives, successors, and assigns for that
certain tract shown on Exhibit"A" attached hereto and made a part hereof for all purposes,
to allow the expansion of a medical office at 4229 Eastex Freeway subject to the following
condition:
• The building shall meet all building code requirements and shall be
securely fixed to a permanent foundation.
Section 2.
Notwithstanding the site plan attached hereto as Exhibit"B," the use of the property
herein above described shall be in all other respects, subject to all of the applicable
regulations contained in Ordinance 07-108 and the regulations contained in Chapter 30 of
the Code of Ordinances of the City of Beaumont, Texas, as amended, as well as comply
with any and all federal, state and local statutes, regulations or ordinances which may
apply.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
File 1997-P: Request for an amended specific use permit to allow the expansion of a
medical office in an RM-H(Residential Multiple Family Dwelling -High Density)District.
Location: 5220 Eastex Freeway
Applicant: Beaumont Medical Clinic
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2
August 25, 2009
Consider approving the purchase of a fire truck
It a 1,it u4 A I'It 0 f't',,xi I r. N IT ;
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 k-11
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council consider approving the purchase of a Pierce ladder
truck for use by the Fire Department.
RECOMMENDATION
The administration recommends approval of the purchase from Martin Apparatus, Inc., of
Houston in the amount of$832,497.
BACKGROUND
Pricing for this fire truck is obtained through the Houston-Galveston Area Council. H-GAC is a
cooperative purchasing association providing cities and political subdivisions with the means to
purchase specialized equipment at volume pricing. H-GAC complies with the State of Texas
procurement statutes. The purchase price of$832,497 includes the H-GAC administrative fee of
$2,000.
The fire truck specified is a combination pumper and ladder truck. The truck is equipped with a
one hundred five (105) foot ladder with a waterway. The ladder meets ISO standards for the
area where it will be stationed. The truck is also equipped with a one thousand five hundred
(1,500) gallon-per-minute pump, a foam injection system and a five hundred (500) gallon water
tank. The truck will be placed into service at Fire Station No. 5., located at 6375 Walden Rd.,
and will replace unit 7056 which was stolen and wrecked.
Delivery time for the new truck will be up to four (4) months. The various components are
warrantied for specified time periods which are as follows:
• Bumper-to-Bumper 1 year
• Engine, Transmission and Pump 5 years
• Pierce body and ladder 10 years
Purchase of Ladder Truck
August 25, 2009
Page 2
Warranty service for the Pierce water tank, cab, and body will be provided by Martin Apparatus,
Inc., of Houston.
BUDGETARY IMPACT
The purchase will be financed through a lease purchase agreement upon delivery.
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 approve the purchase of a
Pierce ladder truck from Martin Apparatus, Inc., of Houston, Texas, in the amount of
$832,497 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 25th day of
August, 2009.
- Mayor Becky Ames -
3
August 25, 2009
Consider amending Article II Sec. 26-23 of the Code of Ordinances by adding Tyrrell Park Road
to the Schedule of Streets to increase the speed limit to a 40 miles per hour speed limit between
the Hillebrandt Bayou Bridge and Fannett Road (SH 124)
RICII WITH OPPORTUNITY
[I[hl City Council Agenda Item
A T a E a X a A • S
TO: City Council
FROM: Kyle Hayes, City Manager
i.1.0
PREPARED BY: Tom Warner, Director of Public Works
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of an ordinance amending Article II Sec.
26-23. Maximum and minimum speeds established in
certain zones of the Code of Ordinances that would add
Tyrrell Park Road to the Schedule of Streets with a 40 miles
per hour speed limit between the Hillebrandt Bayou Bridge
and Fannett Road (SH 124).
RECOMMENDATION
Administration recommends approval of an ordinance amending Article II Sec. 26-23.
Maximum and minimum speeds established in certain zones that would add Tyrrell Park to the
Schedule of Streets with a 40 miles per hour speed limit between Hillebrandt Bayou and Fannett
Road (SH 124). The schedule of streets to be amended include the following:
Street Limits of Zones Direction Speed In
of Miles
Travel Per Hour
Maximum
Minimum
Tyrrell Park From the centerline of the Hillebrandt Bayou North and South 40
Bridge to the centerline of Fannett Road(SH
124)
BACKGROUND
A speed limit study was requested to be performed on Tyrrell Park Road to determine if 30 miles
per hour is an appropriate speed limit. State law dictates that speed limits be set at a safe and
reasonable speed quantified by the prima facie speed limit or in accordance with a traffic
Article II Revision
August 25, 2009
Page 2
engineering study. The Transportation Division conducted a traffic engineering study on Tyrrell
Park in July, 2009. The study showed Tyrrell Park Road to have a good safety record and an 85cn
percentile speeds ranging from 46.5 to 55.5 miles per hour. Based on the study results, adjacent
land use, and engineering judgment the Transportation Division concludes that 40 miles per hour
is a safe and prudent speed limit. A follow up study will be conducted and reported to the
Beaumont Police Department for on-going speed limit enforcement.
BUDGETARY IMPACT
No budgetary impact to the City of Beaumont.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-23
OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT BY
ADDING R.F.D. ROAD AND Tyrrell PARK ROAD TO THE SCHEDULE OF
STREETS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL
AND PROVIDING A PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That Chapter 26, Section 26-23 of the Code of Ordinances of the City of Beaumont
be, and the same is hereby amended by adding the following streets to the Schedule of
Streets:
SCHEDULE
In accordance with this section, and when signs are erected giving notice thereof,
the prima facie speed limit shall be as set forth in this schedule, at all times, upon those
streets or portions thereof specified herein:
Street Limits of Zones Direction Speed In
of Miles
Travel Per Hour
Maximum
Minimum
R.F.D. Road From the centerline of SH 105 to the centerline oi North and South 40
the U.S. Highway 69/96 (Eastex) Southbound
Frontage Road.
Tyrrell Park From the centerline of the Hillebrandt Bayou Bridg North and South 40
Ito the centerline of Fannett Road (SH 124)
Section 2.
That if any section, subsection, sentence clause or phrase of this ordinance, or the
application of same to a particular set of persons or circumstances should, for any reason, be held
to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and, to such
end, the various portions and provisions of this ordinance are declared to be severable.
Section 3.
That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of
the conflict only.
Section 4.
That any person who violates any provision of this ordinance shall, upon conviction, be
punished, as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of August,
2009.
- Mayor Becky Ames -
4
August 25, 2009
Consider amending Article II Sec. 26-23 of the Code of Ordinances by adding R.F.D. Road to the
Schedule of Streets to increase the speed limit to a 40 miles per hour speed limit between SH 105
and US 69/96 (Eastex Freeway)
RICH WITH OPPORTUNITY
[JE City Council Agenda Item I[IIJ(
TaE6XaA • S
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tom Warner, Director of Public Works
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of an ordinance amending Article II Sec.
26-23. Maximum and minimum speeds established in
certain zones of the Code of Ordinances that would add
R.F.D. Road to the Schedule of Streets with a 40 miles per
hour speed limit between SH 105 and US 69/96 (Eastex
Freeway).
RECOMMENDATION
Administration recommends approval of the ordinance amending Article II Sec. 26-23.
Maximum and minimum speeds established in certain zones that would add R.F.D. Road to
the Schedule of Streets with a 40 miles per hour speed limit between SH 105 and US 69/96
(Eastex Freeway). The schedule of streets to be amended to include the following:
Street Limits of Zones Direction Speed In
of Miles
Travel Per Hour
Maximum
Minimum
R.F.D.Road From the centerline of SH 105 to the centerline North and South 40
of the U.S. Highway 69/96 (Eastex) Southbound
Frontage Road.
BACKGROUND
The City received a request to raise the speed limit on R.F.D. Road from 30 miles per hour to 45
miles per hour. State law dictates that speed limits be set at a safe and reasonable speed
quantified by the prima facie speed limit or in accordance with a traffic engineering study. The
Transportation Division conducted a traffic engineering study on R.F.D. Road in May, 2009. The
study showed R.F.D. Road to have a good safety record and an 85 th percentile speed of 45.4
Article II Revision
August 25, 2009
Page 2
miles per hour. Based on the study results, adjacent land use, and engineering judgment the
Transportation Division concludes that 40 miles per hour is a safe and prudent speed limit.
BUDGETARY IMPACT
No budgetary impact to the City of Beaumont.
5
August 25, 2009
Consider amending Article II Section 26-24 of the Code of Ordinances to update the locations
and limits of school speed zones
RICH WITH OPPORTUNITY
[I[ [III IN City Council Agenda Item
T • E , X • A , S
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tom Warner, hirector of Public Works
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of an ordinance amending Article II Sec.
26-24. Speed limits decreased in school zones of the Code
of Ordinances that would update the locations and limits of
school speed zones.
RECOMMENDATION
Administration recommends Council approval of an ordinance amending Article II Sec. 26-24.
Speed limits decreased in school zones of the Code of Ordinances that would update the
locations and limits of school speed zones. The existing and proposed revisions to the school
speed zone limit schedules follow:
Sec. 26-24. Speed limits decreased in school zones.
It is hereby determined upon the basis of an engineering and traffic investigation, that the speed
permitted by state law upon those streets, or portions of streets described in the following
schedule is greater than is reasonable or safe under the conditions found to exist upon such
streets and it is hereby declared that the prima facie speed limit upon those streets or portions
thereof described in the following schedule shall be decreased as therein stated and the limits so
declared shall be effective at the times specified therein when signs are erected giving notice
thereof.
SCHEDULE A
In accordance with this section, and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty(20)miles per hour in the following zones between the hours of 7:30
a.m. to 9:00 a.m. and 3:00 p.m. to 4:15 p.m., Monday through Friday on school days:
SCHEDULE A (Existing)
SCHOOL ZONE SPEED LIMITS
Street Direction of Description
Travel
Arthur E & W From a point 65 feet west of the centerline of Overbrook to a
point 50 feet west of the centerline of Cleveland.
Elinor E & W From a point 55 feet east of the centerline of Ethel to the
centerline of Iola.
Howell N & S From a point 50 feet north of the centerline of Derby to a
point 160 feet south of the centerline of Pickwick.
Iola N & S From a point 40 feet south of the centerline of West Euclid to
a point 40 feet north of the centerline of Westmoreland.
Magnolia N & S From a point 400 feet south of the centerline of Trinidad to a
point 100 feet south of the centerline of East Lucas.
Magnolia N & S From a point 80 feet north of the centerline of Delaware to a
point 50 feet south of the centerline of Prince.
Regina E & W From a point 165 feet west of the centerline of Rikisha to a
point 650 feet west of the centerline of Howell.
Waverly E & W From a point 250 feet west of the centerline of Iola to a point
630 feet east of the centerline of Ethel.
SCHEDULE A (Proposed)
SCHOOL ZONE SPEED LIMITS
Street Direction of Description
Travel
Arthur E & W From a point 85 feet east of the centerline of Overbrook to a
point 50 feet west of the centerline of Cleveland.
Elinor E & W From a point 125 feet east of the centerline of South Eight to
a point 225 feet east of the centerline of Iola.
Howell N & S From a point 350 feet North of the centerline of Regina to a
point 150 feet south of the centerline of Regina.
Iola N & S From a point 40 feet south of the centerline of West Euclid to
a point 240 feet south of the centerline of Waverly.
Magnolia N & S From a point 325 feet south of the centerline of Trinidad to a
point 50 feet north of the centerline of Taylor.
Magnolia N & S From a point 350 feet north of the centerline of Pope to a
point 375 feet south of the centerline of Pope.
Peyton N & S From a point 50 feet south of the centerline of Wynden to the
western limit of N. Circuit.
Regina E & W From a point 280 feet east of the centerline of Howell to a
point 50 feet west of the centerline of Brewton.
Waverly E & W From a point 225 feet east of the centerline of Iola to a point
325 feet east of the centerline of Ethel.
SCHEDULE D (Existing)
In accordance with this section and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty(20)miles per hour in the following zones between the hours of 7:45
a.m. and 9:15 a.m. and 3:00 p.m. and 4:30 p.m., Monday through Friday on school days:
Street Direction of Description
Travel
Westgate E & W From a point 95 feet west of the centerline of Peyton to a
Drive point 300 feet west of the centerline of Dowlen.
SCHEDULE D (Proposed)
In accordance with this section and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty(20) miles per hour in the following zones between the hours of 7:45
a.m. and 9:15 a.m. and 3:00 p.m. and 4:30 p.m., Monday through Friday on school days:
Street Direction of Description
Travel
Westgate E & W From a point 350 feet east of the centerline of Dowlen to the
Drive 1 1 centerline of Peyton.
SCHEDULE E (Existing)
In accordance with this section and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty (20) miles per hour in the following zones between the hours of 7:00
a.m. and 8:30 a.m. and 2:45 p.m. and 3:45 p.m., Monday through Friday on school days:
Street Direction of Description
Travel
Delaware E & W From a point 30 feet east of the centerline of Briarcliff to a
point 165 feet east of the centerline of West Lucas.
SCHEDULE E (Proposed)
In accordance with this section and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty(20) miles per hour in the following zones between the hours of 7:00
a.m. and 8:30 a.m. and 2:45 p.m. and 3:45 p.m., Monday through Friday on school days:
Street Direction of Description
Travel
Delaware E & W From a point 30 feet east of the centerline of Briarcliff to a
point 285 feet east of the centerline of West Lucas.
SCHEDULE F
In accordance with this section, and when signs are erected giving notice thereof, the prima facie
speed limit shall be twenty(35) miles per hour in the following zones between the hours of 7:30
a.m. to 9:00 a.m. and 3:00 p.m. to 4:15 p.m., Monday through Friday on school days:
SCHEDULE F (Proposed)
SCHOOL ZONE SPEED LIMITS
Street Direction of Description
Travel
Major Drive N & S From a point 265 feet south of the centerline of Manion to a
point 170 feet south of the centerline of Westgate.
BACKGROUND
Many school signs were damaged during Hurricane Ike. Repairs have been made in accordance
with the Texas Manual on Uniform Traffic Control Devices (TMUTCD), which outlines school
zone signage requirements. The TMUTCD has been updated since many of the City's school
zones were established. This amendment will update the code of ordinances to reflect required
changes to the limits of school zones resulting from Hurricane Ike sign repairs. Schedule "F"
has been added to accommodate a temporary elementary school on Major Drive that has been
established in cooperation with the Texas Department of Transportation.
BUDGETARY IMPACT
No budgetary impact to the City of Beaumont.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-24
OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT BY
MODIFYING AN EXISTING SCHOOL ZONE; PROVIDING FOR
SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A
PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That Chapter 26, Section 26-24 of the Code of Ordinances of the City of
Beaumont be, and the same is hereby amended to read as follows:
SCHEDULE A
In accordance with this section and when signs are erected giving notice thereof,
the prima facie speed limit will be twenty (20) miles per hour in the following zones
between the hours of 7:30 a.m. to 9:00 a.m. and 3:00 p.m. to 4:15 p.m., Monday
through Friday on school days:
Street Direction of Description
Travel
Arthur E &W From a point 85 feet east of the centerline of Overbrook to a point
50 feet west of the centerline of Cleveland.
Elinor E &W From a point 125 feet east of the centerline of South Eight to a
point 225 feet east of the centerline of Iola.
Howell N & S From a point 350 feet North of the centerline of Regina to a point
150 feet south of the centerline of Regina.
Iola N & S From a point 40 feet south of the centerline of West Euclid to a
point 240 feet south of the centerline of Waverly.
Magnolia N & S From a point 325 feet south of the centerline of Trinidad to a point
50 feet north of the centerline of Taylor.
Magnolia N & S From a point 350 feet north of the centerline of Pope to a point 375
feet south of the centerline of Pope.
Peyton N & S From a point 50 feet south of the centerline of Wynden to the
western limit of N. Circuit.
Regina E &W From a point 280 feet east of the centerline of Howell to a point 50
feet west of the centerline of Brewton.
Waverly E &W From a point 225 feet east of the centerline of Iola to a point 325
feet east of the centerline of Ethel.
SCHEDULE D
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit will be twenty (20) miles per hour in the following zones between
the hours of 7:45 a.m. to 9:15 a.m. and 3:00 p.m. to 4:30 p.m., Monday through Friday
on school days:
Street Direction of Description
Travel
Westgate E &W From a point 350 feet east of the centerline of Dowlen to the
Drive centerline of Peyton.
SCHEDULE E
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit shall be twenty (20) miles per hour in the following zones
between the hours of 7:00 a.m. and 8:30 a.m. and 2:45 p.m. and 3:45 p.m., Monday
through Friday on school days:
Street Direction of Description
Travel
Delaware E &W From a point 30 feet east of the centerline of Briarcliff to a
point 285 feet east of the centerline of West Lucas.
SCHEDULE F
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit will be twenty (35) miles per hour in the following zones between
the hours of 7:30 a.m. to 9:00 a.m. and 3:00 p.m. to 4:15 p.m., Monday through Friday
on school days.
Street Direction of Description
Travel
Major Drive N & S From a point 265 feet south of the centerline of Manion to a
point 170 feet south of the centerline of Westgate.
Section 2.
That if any section, subsection, sentence clause or phrase of this ordinance, or
the application of same to a particular set of persons or circumstances should, for any
reason, be held to be invalid, such invalidity shall not affect the remaining portions of
this ordinance, and, to such end, the various portions and provisions of this ordinance
are declared to be severable.
Section 3.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
Section 4.
That any person who violates any provision of this ordinance shall, upon
conviction, be punished, as provided in Section 1-8 of the Code of Ordinances of
Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
6
August 25, 2009
Consider adopting an ordinance approving the institution of a Cost of Service Adjustment rate
schedule by Centerpoint Energy Entex which provides for an annual rate cost of service and rate
base adjustment based upon the Company's annual cost data
RICH WITH OPPORTUNITY
[I 11CM (
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tyrone E. Cooper, City Attome)<0 /
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting an ordinance approving the institution of
a Cost of Service Adjustment rate schedule by Centerpoint
Energy Entex which provides for an annual rate cost of
service and rate base adjustment based upon the Company's
annual cost data.
RECOMMENDATION
Administration recommends approval of an ordinance approving the institution of a cost of
service adjustment rate schedule by Centerpoint Energy Entex which provides for an annual cost
of service and rate base adjustment based upon the annual cost data of the Company.
BACKGROUND
During the process of negotiating the Centerpoint gas franchise, Centerpoint and City
representatives negotiated the proposed cost of service adjustment for the municipal regulation of
the rates of Centerpoint within the City of Beaumont. The proposal before the City would allow
the annual rate setting process to occur at the City level and caps the annual change in rates at 5%
of the previous year's customer charge. Under the proposed rate making formula, the Company's
rates would be adjusted annually to account for any increase or decrease in the Utility's cost of
service. Calculation of the rate adjustment will be based upon calendar year operating expenses,
return on investment, and Texas franchise tax. The calendar year operating expenses shall be
those reported to the Railroad Commission of Texas in the annual report of the Company.
Centerpoint would be required to file with the City each year and adjust it rates up or down
depending on the last year's cost of service. The annual filing by Centerpoint would not become
effective unless approved by the City. The City can approve in part, in total or deny in total any
rate change request which retains to the City all regulatory oversight.
City of Beaumont, Texas, Ordinance No. 2009 -
AN ORDINANCE APPROVING THE INSTITUTION OF A COST OF SERVICE
ADJUSTMENT RATE SCHEDULE BY CENTERPOINT ENERGY ENTEX
("CENTERPOINT" OR "THE COMPANY"); APPROVING THE THREE-YEAR
AMORTIZATION OF CENTERPOINT'S 2009 INCREASE IN PENSIONS AND
BENEFITS EXPENSE, PROVIDING AN EFFECTIVE DATE; REPEALING ANY
ORDINANCES INCONSISTENT WITH THIS ORDINANCE; AND REQUIRING
DELIVERY OF THIS ORDINANCE TO THE COMPANY.
WHEREAS, the City of Beaumont, Texas ("City") is a gas utility customer of
CenterPoint Energy Entex ("CenterPoint" or the Company"), and a regulatory authority
with an interest in the rates and charges of CenterPoint; and
WHEREAS, within thirty (30) days after passage, CenterPoint intends to file with
the City a new tariff whereby gas utility charges within the City may be adjusted without
the need to file a Statement of Intent pursuant to Subchapter C of the Texas Utilities
Code (Vernon 2007);
WHEREAS, CenterPoint has also requested approval to amortize over a three-
year period the increase in pension and benefits expense experienced by CenterPoint
in 2009 as reflected in FERC Account 926 and the adjustments contemplated by the
new tariff ;
WHEREAS, the attached tariff provides for an expedited and less expensive rate
review process than the current Statement of Intent process; and
WHEREAS, the attached tariff implements a mechanism to adjust gas utility
charges in a manner that is just, reasonable, and in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
Section 1. That the findings contained in the preamble of this Ordinance are
determined to be true and correct and are hereby adopted as part of this Ordinance.
Section 2. That the Cost of Service Adjustment Rate Schedule, which is
attached hereto and incorporated as Attachment A, is in the public interest and is
hereby endorsed in all respects.
Section 3. That the CenterPoint annual Cost of Service Adjustment will be
subject to City review, and the annual rate adjustments may be approved, approved in
part, or denied.
Section 4. That CenterPoint's request to amortize over a three-year period the
increase in its pension and benefits expense experienced in 2009, as reflected in FERC
Account No. 926, is approved.
Section 5. That this Ordinance shall become effective from and after its
passage.
Section 6. That to the extent any resolution or ordinance previously adopted
by the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 7. That 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.
Section 8. That a copy of this Ordinance shall be sent to the Company, care of
Denise Hardcastle at CenterPoint Energy, P.O. Box 2628, Houston, Texas 77252-2628.
Section 9. That, if any provision, section, subsection, sentence, clause, or
phrase of this Ordinance, or the application of same to any person or set of
circumstances, is for any reason held to be unconstitutional, void or invalid, the validity
of the remaining portions of this Ordinance or their application to other persons or sets
of circumstances shall not be affected thereby, it being the intent of the City Council in
adopting this Ordinance that no portion hereof or provision or regulation contained
herein shall become inoperative or fail by reason of any unconstitutionality, voidness or
invalidity of any other portion hereof, and all provisions of this Ordinance are declared to
be severable for that purpose.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the 25th day
of August, 2009.
- Mayor Becky Ames -
CENTERPOINT ENERGY RESOURCES CORP.
DB/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
A. APPLICABILITY
This Cost of Service Adjustment Clause applies to the Residential Service, General Service - Small, and General
Service - Large Volume rate schedules of CenterPoint Energy Texas Gas currently in force in the Company's
Beaumont-East Texas Division' service area. All rate calculations under this tariff shall be made on a Beaumont-
East Texas Division system wide basis. If, through the implementation of the provisions of this mechanism, it is
determined that rates should be decreased or increased, then rates will be adjusted accordingly in the manner set
forth herein. The rate adjustments implemented under this mechanism will reflect annual changes in the Company's
cost of service and rate base as computed herein. This Rate Schedule No. COSA-4 is authorized for an initial
implementation period of three (3) years commencing with the Company's filing under this rate schedule for the
calendar year 2009, effective August 1,2010, and ending with the implementation of the rate adjustment, if any, for
the calendar year 2011, effective August 1, 2012; and shall automatically renew for successive three year periods
unless either the Company or the regulatory authority having original jurisdiction gives written notice to the
contrary to the other by February 1, 2012, or February 1, of the third filing year of any succeeding three year
renewal period.
B. EFFECTIVE DATE
Rate adjustments shall be made in accordance with the procedures described below on an annual basis. The
Company shall make its annual filing no later than May 1, with the rate adjustments to be effective with the bills
rendered on or after August 1st of each year. The first filing pursuant to this Rider shall be no later than May 1,
2010 and shall be based on the financial results for the calendar year ending December 31, 2009.
C. COMPONENTS OF THE RATE ADJUSTMENT
Calculation of the rate adjustment will be based on calendar year operating expenses, return on investment, and
Texas Franchise Tax. The calendar year operating expenses shall be those reported to the Railroad Commission of
Texas in the annual report of the Company. The rate adjustment shall be included in the monthly customer charge
of the Residential Service, General Service - Small, and General Service - Large Volume rate schedules. Company
shall file with each regulatory authority having original jurisdiction over the Company's rates the schedules
specified below, by FERC Account, for the prior calendar year period. The schedules will be based upon the
Company's audited financial data, as adjusted, and provided in a format that will allow for the same analysis as that
undertaken of a Company Statement of Intent filing. Sample schedules are attached as Exhibit A to this tariff and
shall include the following information:
CA Operating Expenses - Operating expenses will be determined by the ending amounts for the
applicable calendar year.
The applicable expenses are:
Depreciation and Amortization Expense(Account Nos. 403-407)*
Taxes Other Than FIT(Account No. 408)**
Operation and Maintenance Expenses(Account Nos. 870-894)
Customer Related Expenses(Account Nos. 901-916)
Administrative &General Expenses(Account Nos. 920-932)
' For this calculation, the Beaumont-East Texas Division includes the cities and environs areas listed on the Company's
Rate Schedule PGA-4. The summary pages from the 2008 Annual Report which sum to the Beaumont-East Texas
Division, as defined herein, are designated Beaumont Division (34-001), East Texas Division (34-002), Northeast Texas
(34-006)and Tyler Area(34-007).
EXHIBIT "A"
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
Interest on Customer Deposits(Account No. 43 1)
* Based on the last approved depreciation methods and lives.
** Excluding City Franchise Fees, Gross Receipts, and any other revenue-based tax. Rate adjustments due
to changes in revenue-based taxes will be governed by the Company's Tax Adjustment and Municipal
Franchise Fee Rate Schedules.
This information will be presented with supporting calculations. The Company shall provide additional
information for all operating expenses upon request by the regulatory authority during the ninety (90) day
review period specified in Section D.
C.2 Return on Investment - The return on investment is the pre-tax rate of return (11.8%) multiplied
by the rate base balance for the applicable calendar year.
The rate base balance is composed of:
Net Utility Plant in Service*
Plus:
Other Rate Base Items:**
Materials and Supplies Inventories
Prepayments
Cash Working Capital
Less:
Customer Deposits(Account No.235)
Customer Advances(Account No. 252)
Deferred Federal Income Taxes
* Net Utility Plant in Service as shown by FERC account adjusted to exclude asset retirement obligation
amounts. Gross utility plant in service and accumulated depreciation by account will be shown separately
by month so that an annual average utility plant in service can be calculated.
** These items will reflect the 13 month average materials and supplies inventories and prepayments. The
Company shall perform a lead/lag study for the initial filing under this tariff and at least once every three
(3)years thereafter.
Supporting information for all rate base items shall be provided to the regulatory authority during the
ninety(90)day review period specified in Section D upon request to the Company.
C.3 Texas Franchise Tax - The Texas Franchise Tax will be the calendar year-end amount as
recorded in FERC Account No. 409.
CA Cost of Service Adjustment The amount to be collected through the Cost of Service
Adjustment will be the sum of the amounts from Sections C.1, C.2, and C.3, less the calendar year actual
non-gas revenue and other revenue (i.e., transportation revenue and service charges), adjusted for the
revised Texas Franchise Tax described in Chapter 171 of the Texas Tax Code and the resulting revenue
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
change of the previous year's COSA per bill adjustment if it had been effective for all customers in each
class on a division-wide basis as of August 1 of the previous calendar year. If the effective date of the
COSA is different from August 1, then the calculation of the revenue change shall be calculated as of the
effective date of the COSA.
The formula to calculate the Cost of Service Adjustment is:
(C.1 Operating Expenses + C.2 Return on Investment + C.3 Texas Franchise Tax - Actual non-Gas (as
adjusted)and Other Revenues)_(1 -Texas Franchise Tax statutory rate)*
* Currently,the Texas Franchise Tax statutory rate is I%.
C.5 Cost of Service Adjustment Rate
The Cost of Service Adjustment as calculated in Section CA will be allocated among the customer classes
in the same manner as the cost of service was allocated among classes of customers in the Company's latest
effective rates for the Beaumont-East Texas Division. The cost of service adjustment for each customer
class will then be converted into a per-customer per-month amount to produce the Cost of Service
Adjustment Rate. The per customer adjustment will be the Cost of Service Adjustment as allocated to that
class, divided by the average number of gas sales customers in each class for the Beaumont-East Texas
Division as reported in the Company's annual report to the Railroad Commission of Texas. The Cost of
Service Adjustment Rate will be this per customer adjustment amount divided by 12 to produce a monthly
adjustment amount, either an increase or decrease, which will be included in the Residential Service,
General Service - Small, and General Service- Large Volume customer charges. Any change in the Cost of
Service Adjustment shall not exceed an amount equal to five percent (5%) of the Customer Charge
effective for service in the Beaumont-East Texas Division at the end of the calendar year immediately
preceding the year in which the Cost of Service Adjustment is made.
In order to meet Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission
reporting requirements, the Company shall record its best estimate of the total amount to be collected
through the Cost of Service Adjustment so as to reflect in its books and records a fair representation of
actual earnings for that year. Such estimate shall not be included in the computation of the Cost of Service
Adjustment.
C.6 Attestation
A sworn statement shall be filed by the Company's Chief Accounting Officer of CenterPoint Energy Texas
Gas Operations, affirming that the filed schedules are in compliance with the provisions of this tariff and
are true and correct to the best of his/her knowledge, information, and belief. No testimony shall be filed.
C.7 Proof of Revenues
The Company shall also provide a schedule demonstrating the "proof of revenues" relied upon to calculate
the proposed cost of service adjustment rate. The proposed rates shall conform as closely as practicable to
the revenue allocation principles in effect prior to the adjustment.
C.8 Notice
Notice of the annual Cost of Service Adjustment shall be published in the Beaumont Enterprise in a form
similar to that required under Section 104.103, TEX. UTIL. CODE ANN. no later than forty-five (45) days
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
after the Company makes its annual filing pursuant to this rate schedule with the regulatory authority. The
notice to customers shall include the following information:
a) a description of the proposed revision of rates and schedules;
b) the effect the proposed revision of rates is expected to have on the rates applicable to each
customer class and on an average bill for each affected customer class;
C) the service area or areas in which the proposed rate adjustment would apply;
d) the date the proposed rate adjustment was filed with the regulatory authority; and
e) the Company's address, telephone number, and website where information concerning the
proposed cost of service adjustment may be obtained.
D. REGULATORY REVIEW OF ANNUAL RATE ADJUSTMENT
The regulatory authority with original jurisdiction will have a period of not less than ninety (90) days within which
to review the proposed annual rate adjustment. During the review period, Company shall provide additional
information and supporting documents as requested by the regulatory authority and such information shall be
provided within ten(10)working days of the original request.
The rate adjustment shall take effect with the bills rendered on or after August 1 st of each year. This Cost of Service
Adjustment Rate Schedule does not limit the legal rights and duties of the regulatory authority.Nothing herein shall
abrogate the jurisdiction of the regulatory authority to initiate a proceeding at any time to review whether rates
charged are just and reasonable. The provisions of this Cost of Service Adjustment are to be implemented in
harmony with the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101-105). The Company's annual
rate adjustment will be made in accordance with all applicable laws. If at the end of the ninety (90) day review
period, the Company and the regulatory authority with original jurisdiction have not reached agreement on the
proposed Cost of Service Adjustment Rate, the regulatory authority may take action to deny such adjustment, and
the Company shall have the right to appeal the regulatory authority's action. Upon the filing of any appeal the
Company shall have the right to implement the proposed Cost of Service Adjustment Rate, subject to refund.
To defray the cost, if any, of regulatory authorities conducting a review of Company's annual rate adjustment,
Company shall reimburse the regulatory authorities for their reasonable expenses for such review in an aggregate
amount not to exceed $100,000. Any reimbursement contemplated hereunder shall be deemed a reasonable and
necessary operating expense of the Company in the year in which the reimbursement is made. If more than one
regulatory authority should request reimbursement in any year, each regulatory authority shall receive the lesser of
its reasonable and necessary expenses for conducting its review or an amount equal to $100,000 multiplied by the
fraction of which the numerator is the total number of customers subject to the original jurisdiction of the regulatory
authority seeking reimbursement and the denominator of which is the total number of customers subject to the
jurisdiction of all regulatory authorities seeking reimbursement for review of an annual rate adjustment. A
regulatory authority seeking reimbursement under this provision, shall submit its request for reimbursement to
Company no later than September I" of the year in which the adjustment is made and Company shall reimburse
regulatory authorities in accordance with this provision on or before September 15`h, of the year the adjustment is
made. Amounts reimbursed by Company shall be recovered by Company from customers located in the
jurisdiction[s] seeking reimbursement through a monthly, per bill surcharge not to exceed 30 cents beginning
October 1 S`of the year in which expenses were reimbursed and ending when Company has fully recovered amounts
reimbursed to each regulatory authority. Amounts collected through the surcharge shall be excluded from the
revenue and expenses of the COSA and are not subject to the limitations set forth in C.S.
7
August 25, 2009
Consider adopting an ordinance granting a public utility franchise to Centerpoint Energy Texas
Gas Operations to operate a gas utility within the City of Beaumont
RICH WITH OPPORTUNITY
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 AttorneA�/
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting an ordinance granting a public utility
franchise to Centerpoint Energy Texas Gas Operations to
operate a gas utility within the City of Beaumont.
RECOMMENDATION
Administration recommends approval of an ordinance granting a public utility franchise to
Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont.
BACKGROUND
The Charter of the City of Beaumont gives to the City Council authority to grant and renew
franchises of all public utilities operating within the City of Beaumont. Ordinance No. 88-64
granted to Entex a 20-year franchise to operate a gas utility in the City of Beaumont. That
franchise expired in June of 2008. Since that time City representatives have been negotiating
with Centerpoint Energy Texas Gas Operations, successor in interest to Entex, for the renewal of
a franchise to continue its operations in Beaumont. The proposed franchise provides for a term
of operations for 25 years, providing for a payment by the Company to the City based upon four
percent (4%) of the gross receipts from the sale of gas within the city limits and seven cents
($.07) per MCF for the transportation of gas to transportation customers within the corporate
limits of the city for consumption within the city. The fees will be calculated for the calendar
quarters ending March 31, June 30, September 30 and December 31 and shall be payable on or
before the 15th day of May, August,November and February following the quarter for which
payment is due.
Ordinances granting franchises requires three (3) readings at separate regular meetings of the
City Council and shall not be considered finally passed until the third reading which shall not be
less than thirty (30) days from the first reading. The ordinance will not take effect until sixty (60)
days after its adoption on the third and final reading.
BUDGETARYIMPACT
For the year 2008, the City of Beaumont received $795,900 in franchise fees from Centerpoint
Energy. Year to date, the City has received $691,468 in franchise fees.
ORDINANCE NO.
AN ORDINANCE GRANTING CENTERPOINT ENERGY
RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS
GAS OPERATIONS, ITS SUCCESSORS AND ASSIGNS, THE
RIGHTS, PRIVILEGE AND FRANCHISE FOR A PERIOD OF
TWENTY-FIVE (25) YEARS TO CONSTRUCT, LAY,
MAINTAIN, OPERATE, EXTEND, REMOVE, REPLACE AND
REPAIR A SYSTEM OF PIPELINES, GAS MAINS,
LATERALS AND ATTACHMENTS AND ALL DESIRABLE
INSTRUMENTALITIES IN, UNDER, OVER, ACROSS AND
ALONG ANY AND ALL STREETS, AVENUES, PARKWAYS,
SQUARES, ALLEYS AND ALL OTHER PUBLIC PLACES IN
THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS,
FOR THE PURPOSE OF TRANSPORTING, DISTRIBUTING,
SUPPLYING AND SELLING GAS (NATURAL AND/OR
ARTIFICIAL AND/OR MIXED) FOR HEATING, LIGHTING,
POWER, AND FOR ALL OTHER PURPOSES FOR WHICH
GAS MAY BE USED, TO THE MUNICIPALITY OF SAID CITY
OF BEAUMONT, TEXAS, AND ITS INHABITANTS AND
OTHERS;PROVIDING CONDITIONS CONTROLLING THE USE
OF PUBLIC THOROUGHFARES AND EXTENSIONS THEREIN;
ESTABLISHING STANDARDS OF SERVICE; PROVIDING
FOR PAYMENT OF FOUR PERCENT (4%) OF THE GROSS
RECEIPTS FROM THE SALE OF GAS WITHIN THE CITY OF
BEAUMONT AND SEVEN CENTS (7¢) PER MCF FOR THE
TRANSPORTATION OF GAS TO TRANSPORTATION
CUSTOMERS;PROVIDING FOR ACCEPTANCE;PROVIDING A
SEVERABILITY CLAUSE; MAKING MISCELLANEOUS
PROVISIONS; AND REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
The City of Beaumont, Jefferson County, Texas, (hereinafter referred to as "Grantor" does
hereby grant unto CenterPoint Energy Resources Corp., DBA CenterPoint Energy Texas Gas
Operations, its successors and assigns (hereinafter referred to as"Grantee")the right,privilege and
franchise to construct, install, lay, maintain, operate, use, extend, remove, replace and repair in,
under, over, across and along any and all of the present and future streets, avenues, parkways,
squares, alleys, thoroughfares, roads, highways, sidewalks, viaducts, bridges, streams, public
grounds, public properties (including City building sites) and other public places in the City of
Beaumont, and in all tracts, territories and areas hereafter annexed to or acquired by and placed
within the corporate boundaries of said municipality,a system of pipes,pipelines,gas mains,laterals,
conduits, feeders, regulators, meters, fixtures, connections, attachments and other desirable
instrumentalities and appurtenances necessary or proper for the purpose of transporting,distributing,
supplying and selling gas(natural and/or artificial and/or mixed)for heating,lighting,power and for
any other purpose for which gas may now or hereafter be used in and to said municipality and its
inhabitants or any other person or persons within or without the corporate boundaries of said
municipality.
Section 2.
All Facilities installed by Grantee shall be of sound material and good quality, and shall be
laid so that they will not interfere with the artificial drainage of the Grantor or its underground
fixtures,or with navigation in or the natural drainage of any stream.All Facilities shall be installed in
accordance with applicable Federal, State and City regulations and in the absence of such regulations
in accordance with accepted industry practice. Within the Public Rights-of-Way, the location and
route of the Facilities by the Grantee shall be subject to the reasonable and proper regulation,
direction and control of the Grantor or the City official to whom such duties have been delegated.
Such regulation shall include, but not be limited to, the right to require in writing to the extent
provided in Section 13 the relocation of Grantee's Facilities at Grantee's cost within the Public
Rights-of-Way of the Grantor whenever such relocation shall be reasonably necessary to
accommodate the widening, change of grade, or relocation by Grantor of Streets or Public
Rights-of-Way, or construction or relocation by Grantor of City utility lines or drainage facilities.
The Grantee and the Grantor shall work together to develop a procedure under which Grantee shall
make available to the Grantor maps showing the location of Grantee's Facilities within the corporate
limits of the City.
Section 3.
Except as provided herein, Grantee expressly agrees that it shall not undertake major
replacements or extensions of pipe, mains or other facilities within the boundaries of city parks
currently owned or later established by Grantor without the prior written consent of the City of
Beaumont. Grantee,however, shall not be required to remove or relocate its existing facilities in city
parks established as of the date of this ordinance nor shall Grantee be required to remove or relocate
facilities from land declared to be a city park subsequent to the date of this ordinance. Provided
further, that Grantee shall not be required to obtain such prior written consent to perform routine
maintenance or repairs of its facilities within city parks or when failure to repair, replace or extend
such facilities would, in the good faith opinion of Grantee,pose a danger to public health or safety.
Section 4.
This Franchise shall extend to and include any and all territory that is annexed by the Grantor
during the term of this Franchise. Within sixty(60)days from the receipt of notice from the Grantor
of any such annexation, the Grantee shall assure that any and all customers within such annexed
territory are included and shown on its accounting system as being within the corporate limits of the
City of Beaumont.After such sixty(60)day period the payment provisions specified in Section 8 of
this Franchise shall apply to gross receipts received by the Grantee from customers located within
such annexed territory. Grantee shall true-up its map of City boundaries to the Grantor's map on an
annual basis.
Section 5.
Grantee and its contractors shall give Grantor reasonable advance notice, of the dates,
location and nature of all work to be performed on its Facilities within the Public Rights-of-Way..
While Grantee and Grantee's Contractors must secure all permits that may be required, Grantee or
Grantee's Contractor shall not be required to pay any fee in addition to the franchise fee in order to
perform work on Grantee's facilities within the public right-of-way, or park within the streets and
other public rights-of-way. Grantee's property shall be so constructed and maintained as not to
interfere unreasonably with traffic over the public thoroughfares of said municipality and the same
shall be laid in accordance with the lines,grades,and conditions established by Grantor. Following
completion of work in the Public Rights-of-Way, Grantee shall repair the affected Public
Rights-of-Way as soon as possible, but in all cases Grantee shall comply with all City ordinances
governing time periods and standards relating to excavating in the Public Rights-of-Way.No street,
alley, highway or public place shall be encumbered for a longer period than shall be necessary to
execute the work.
Section 6.
Grantee shall not be required to run or extend any pipe a distance exceeding one hundred
(100) feet, not to exceed a diameter of two (2) inches, in order to bring gas service to the property
line of each additional customer.
Section 7.
The service furnished hereunder by Grantee to the Grantor and its inhabitants shall be in
accordance with the quality of service rules of the Railroad Commission of Texas and all other
applicable local, state and federal regulations. Grantee shall furnish the grade of service to its
customers as provided by its rate schedules and shall maintain its system in reasonable operating
condition during the continuance of this Franchise.An exception to this requirement is automatically
in effect, but only for so long as is necessary,when caused by a shortage in materials, supplies and
equipment beyond the control of the Grantee as a result of fires, strikes, riots, storms, floods and
other casualties,governmental regulations,limitations and restrictions as to the use and availability
of materials,supplies and equipment and as to the use of the services,and unforeseeable and unusual
demands for service.In any of such events the Grantee shall do all things reasonably within its power
to restore normal service as quickly as practicable.
Section 8.
In consideration of the rights and privileges herein granted, after the effective date of this
ordinance, Grantee agrees to pay to Grantor quarterly during the continuance of this ordinance a
franchise fee equal to four percent (4%) of the Grantee's gross receipts for the preceding calendar
quarter received by the Grantee from the sale of gas within the corporate limits of the City of
Beaumont plus seven cents (7¢) per Mcf for natural gas transported by Grantee for its Transport
Customers during such quarter. "Transport Customer" means any person or entity for whom
Company transports gas through the distribution system of Company within the corporate limits of
City for consumption within the corporate limits of City. The franchise fees hereunder shall be
calculated for the calendar quarters ending March 31,June 30, September 30,and December 31 and
shall be payable on or before the fifteenth day of May,August,November, and February following
the quarter for which payment is made, beginning with the first such date following the Effective
Date of this Franchise and each August 15th, November 15th, February 15th, and May 15th
thereafter; provided, however, the first such payment shall be prorated as necessary to reflect only
those gross receipts received and transportation volumes delivered by Company after the Effective
Date of this Franchise. In no event shall the Company be required to remit to the City franchise fee
amounts that for any reason whatsoever are not fully recoverable from its customers. Upon receipt
of the above amount of money,the City Finance Officer shall deliver to the Company a receipt for
such amount. If any payment due date required therein falls on a weekend or bank holiday,payment
shall be made on or before the close of business of the first working day after the payment due date.
All payments to Grantor shall be accompanied by a certified statement of Grantee in a form
prescribed by Grantor. Upon receipt of such payments,the City Finance Officer shall deliver to the
Grantee a receipt for such amount.
Should Grantee fail to tender payment to Grantor within ten (10) days following the date
such payment is due,Grantee shall pay to Grantor,as a late payment penalty,an additional amount
equal to three percent (3%) of the amount otherwise payable to Grantor on such due date. The
consideration hereinabove set forth shall be paid and received in lieu of any license, charge, fee,
street or alley rental,or other character of charge for the use and occupancy for the streets,alleys and
public places within the city, and in lieu of any pipe tax or inspection fee or tax,but shall not in any
way increase or diminish Grantee's obligation to pay Grantor ad valorem taxes or in any way
interfere with the collection thereof.
Any special taxes,rentals or other charges accruing after the effective date of this ordinance,
under the terms of any preexisting ordinance, or imposed upon Grantee by subsequent action of
Grantor shall,when paid to Grantor,be applied as a credit to the amount owed to Grantor under the
terms of this franchise agreement.
Section 9.
Grantee shall keep complete and accurate books of accounts and records of its business and
operations under and in connection with this Franchise.All such books of accounts and records shall
be kept at Grantee's principal office in Houston, Texas.
Grantor may conduct an audit or other inquiry or may pursue a cause of action in relation to
the payment of the franchise fee only if such audit,inquiry,or pursuit of a cause of action concerns a
payment made less than three(3)years before the commencement of such audit, inquiry, or pursuit
of a cause of action. Each party shall bear its own costs of any such audit or inquiry.Upon receipt of
a written request from Grantor, all books and records related to Grantee's operations under this
Franchise shall be made available for inspection and copying no later than thirty (30) days from
receipt of such request.
Section 10.
If the Legislature of the State of Texas amends the ceiling on utility gross receipts payments
to municipalities established by Tex.Tax Code§182.025,then Grantor may prospectively change the
percentage of Grantee's gross receipts payable to Grantor under Section 5 of this franchise to the
level established by such amendment; provided, however, that such change in the percentage of
Grantee's gross receipts payable to Grantor shall not become effective unless and until Grantor shall
have approved and authorized rate schedules acceptable to Grantee which will permit Grantee to
fully recover through its rates effective within the corporate limits of Grantor any increase in
amounts payable to Grantor resulting from such change.
Section 11.
GRANTEE, ITS SUCCESSORS AND ASSIGNS SHALL PROTECT AND HOLD
GRANTOR AND ITS OFFICERS,AGENTS AND EMPLOYEES HARMLESS AGAINST
ANY AND ALL CLAIMS OR DEMANDS FOR DAMAGES TO ANY PERSON OR
PROPERTY BY REASON OF THE CONSTRUCTION AND MAINTENANCE OF
GRANTEE'S NATURAL GAS DISTRIBUTION SYSTEM, OR IN ANY WAY GROWING
OUT OF THE RIGHTS GRANTED BY THIS FRANCHISE ORDINANCE, EITHER
DIRECTLY OR INDIRECTLY, OR BY REASON OF ANY ACT, NEGLIGENCE OR
NONFEASANCE OF GRANTEE OR THE CONTRACTORS,AGENTS OR EMPLOYEES
OF GRANTEE,ITS SUCCESSORS AND ASSIGNS,AND SHALL REFUND TO GRANTOR
ALL SUMS WHICH GRANTOR MAY BE ADJUDGED TO PAY ON ANY SUCH CLAIM,
OR WHICH MAY ARISE OR GROW OUT OF THE EXERCISE OF THE RIGHTS AND
PRIVILEGES HEREBY GRANTED, OR BY THE ABUSE THEREOF, AND GRANTEE,
ITS SUCCESSORS AND ASSIGNS SHALL INDEMNIFY AND HOLD GRANTOR, ITS
OFFICERS, AGENTS AND EMPLOYEES HARMLESS FROM AND ON ACCOUNT OF
ALL DAMAGES,COSTS,EXPENSES,ACTIONS AND CAUSES OF ACTION THAT MAY
ACCRUE TO OR BE BROUGHT BY A PERSON,PERSONS,COMPANY OR COMPANIES
AT ANY TIME THEREAFTER BY REASON OF THE EXERCISE OF THE RIGHTS AND
PRIVILEGES HEREBY GRANTED, OR OF THE ABUSE THEREOF.
Section 12.
Grantee shall not prosecute or maintain any claims against Grantor or its employees for any
damage or injury to Grantee's pipelines or facilities resulting from Grantor's performance of work or
repairs upon city streets; provided, however, that the provisions hereof shall in no way limit
Grantee's right to prosecute or maintain any such claim against any person, association, or
corporation other than Grantor or its employees.
Section 13.
The Grantee shall, upon written request of the Grantor, relocate its Facilities within Public
Rights-of-Way at Grantee's own expense, exclusive of Facilities installed for service directly to
Grantor,whenever such shall be reasonably necessary on account of the widening,change of grade,
or relocation by Grantor of Streets or Public Rights-of-Way,or construction or relocation by Grantor
of City utility lines or drainage facilities. Grantor shall bear the costs of all relocations of Facilities
installed for service directly to Grantor and of any relocation of other Facilities requested by Grantor
for reasons other than the widening, change of grade, or relocation by Grantor of Streets or Public
Rights-of-Way,or construction or relocation by the Grantor of City utility lines or drainage facilities.
Section 14.
Grantor,by granting of this ordinance,does not surrender or to any extent lose,waive,impair
or lessen the lawful powers, claims and rights now or hereafter vested in Grantor under the
Constitution and statutes of the State of Texas and under the Charter of the City of Beaumont to
regulate public utilities within Grantor's city limits, to regulate the rates of public utilities within
Grantor's city limits and to regulate the use of the streets by Grantee;and Grantee,by its acceptance
of this ordinance,agrees that all lawful powers and rights,whether regulatory or otherwise,as are or
as may be from time to time vested in or reserved to Grantor, shall be in full force and effect and
subject to the exercise thereof by Grantor at any time and from time to time. All of the regulations
and activities required by this franchise are hereby declared to be governmental and for the health,
safety and welfare of the general public.
Section 15.
In the event Grantee, by act or omission, violates any term, condition or provision of this
ordinance, Grantor shall notify Grantee in writing of such violation. Grantee shall correct any such
violation within thirty(30) days of receipt of such notice.
Should Grantee fail or refuse to correct any such violation within such thirty(30)day period,
Grantor may terminate this agreement by ordinance adopted by the City Council of the City of
Beaumont;provided,however,before any such ordinance is adopted. Grantee must be given at least
sixty (60) days advance written notice, which notice shall set forth the causes and reasons for the
proposed termination and cancellation, and shall advise the Grantee that it will be provided an
opportunity to be heard by the City Council of the City of Beaumont regarding such proposed action
before any such action is taken and shall set forth the time, date and place of the hearing.
Other than its failure, refusal or inability to pay its debts and obligations, including,
specifically, the payments to Grantor required by this ordinance, Grantee shall not be declared in
default or be subject to any sanction under any provision of this ordinance in those cases in which
performance of such provision is prevented by reasons beyond its control; provided, however,that
such performance shall not be excused when based solely upon financial limitations of Grantee.
Section 16.
Subject to the terms,conditions and restrictions stated herein,within five(5)years of,but not
less than twelve (12)months before,the expiration of the term of this franchise, Grantor shall have
the option to purchase Grantee's distribution system within the corporate limits of Grantor. Grantor
must present Grantee with written notice of Grantor's intent to exercise its option to purchase the
franchised property. Within thirty(30)days of receipt of notice, Grantee shall make a written offer
(the "Offer") stating the cash price for the purchase and sale of said distribution system. Within
twenty (20) days of Grantor's receipt of the Offer, Grantor will submit written notice rejecting or
accepting the Offer. Should Grantor reject the Offer,Grantor and Grantee shall enter into good faith
negotiations to determine a cash price to be paid by Grantor for said distribution system.Failure of
Grantor and Grantee to agree on a cash price for Grantee's distribution system shall not constitute
grounds for termination or cancellation under Section 13 of this ordinance.
Should Grantor accept the Offer or should Grantee and Grantor reach an agreement on a cash
purchase price after good faith negotiations, Grantee shall not be required to sell or transfer said
distribution system to Grantor until the expiration of the term of this franchise or such earlier time as
may be mutually agreeable to Grantee and Grantor.The foregoing notwithstanding,Grantor shall not
purchase Grantee's distribution system until the matter of the acquisition of such property has
been submitted at a municipal election to be determined by a majority vote of the qualified taxpayers
voting therein.
Nothing in this franchise shall be construed as limiting or otherwise affecting Grantor's
authority to acquire franchised property under Grantor's powers of eminent domain.
Section 17.
Nothing herein contained shall ever be held or considered as conferring upon Grantee and its
successors and assigns any exclusive rights or privileges of any nature whatsoever.
Section 18.
This ordinance shall not be assigned by Grantee without the authorization and approval of
Grantor.
Section 19.
All ordinances and parts of ordinances in conflict herewith are hereby repealed.
Section 20.
Grantor and Grantee hereby acknowledge that all of the provisions hereof are the result of
negotiations between Grantor and Grantee. The provisions of this ordinance shall be constructed
fairly and reasonably and not more strictly against the party drafting such provisions than against the
non-drafting party.
Section 21.
This ordinance shall take effect and continue and remain in effect for a period of twenty-five
(25) years from and after the date which is sixty (60) days after the adoption and passage of this
franchise ordinance on third and final reading; provided Grantee files a written acceptance of this
franchise ordinance with Grantor within thirty (30) days after final passage of this franchise
ordinance.
Section 22.
If any provision, section, subsection, sentence,clause or phrase of this ordinance is for any
reason held to be unconstitutional,void or invalid(or for any reason unenforceable),the validity of
the remaining portions of this ordinance shall not be affected thereby,it being the intent of Grantor in
adopting this ordinance that no portion hereof or provision or regulation contained herein shall
become inoperative or fail by reason of any
unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all
provisions of this ordinance are declared to be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the 25th
day of August, 2009.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the
day of 12009.
PASSED BY THE CITY COUNCIL of the City of Beaumont on third reading this the
day of , 2009.
- Mayor Becky Ames -
ATTEST:
CITY SECRETARY
TO THE CITY OF BEAUMONT, TEXAS:
CenterPoint Energy Resources Corp.,DBA CenterPoint Energy Texas Gas Operations itself,
its successors and assigns,hereby accepts the above and foregoing ordinance and agrees to be bound
by all of its terms and provisions.
Dated this the day of , 2009.
CENTERPOINT ENERGY RESOURCES
CORP., DBA CENTERPOINT ENERGY
TEXAS GAS OPERATIONS
Richard A. Zapalac, Vice-President - Texas
Southern Gas Operations
NOTE TO THE CITY SECRETARY:
Please do not complete the certificate below until an officer of CENTERPOINT ENERGY
RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS, has
executed the Acceptance above.
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
1,the duly appointed,qualified and acting City Secretary of Beaumont,Texas,hereby certify
that the above and foregoing Acceptance was received and filed in the office of the City Secretary of
Beaumont, Texas, on the day of , 2009.
City Secretary of Beaumont, Texas
[SEAL]
8
August 25, 2009
Consider adopting the 2009 Drought Contingency Plan and renewing the City's commitment to
Chapter 28, Article III, Section 28-59 of the Code of Ordinances
RICH WITH OPPORTUNrry
r
T • E • x • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Dr. Hani J. Tohme, Water Utilities Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting the 2009 Drought Contingency Plan and
renewing the City's commitment to Chapter 28, Article III,
Section 28-59 of the Code of Ordinances.
RECOMMENDATION
Administration recommends adopting the 2009 Water Conservation and Drought Contingency
Plan and renewing the City's commitment to Chapter 28, Article III, Section 28-59 of the Code
of Ordinances.
BACKGROUND
The Texas Commission on Environmental Quality requires a wholesale public water supplier that
holds a water right in the amount of 1,000 acre-feet or more for municipal use, and provides
water service to 3,300 or more connections to have an Ordinance for a Drought Contingency Plan
that should be renewed every 5 years. The plan must meet all of the minimum requirements as set
forth in the TCEQ rules, Title 30 Texas Administrative Code Chapter 288. The Plan establishes
water conservation goals and means to achieve them; establishes criteria for the initiation and
termination of drought response stages; establishes restrictions on certain water uses; establishes
penalties for the violation of and provisions for enforcement of these restrictions, and establishes
procedures for granting variances.
The adoption of the 2009 Water Conservation and Drought Contingency Plan and renewal of the
City's commitment to Chapter 28, Article III, Section 28-59 of the Code of Ordinances is
recommended by the City Manager and the Water Utilities Director.
BUDGETARY IMPACT
None.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the 2009 Water Conservation and Drought Contingency Plan is hereby adopted.
The Plan is substantially in the form attached hereto as Exhibit "A."
BE IT FURTHER RESOLVED THAT the City of Beaumont hereby renews its
commitment to Chapter 28, Article III, Section 28-59, "Drought Contingency."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
CITY OF BEAUMONT
JEFFERSON COUNTY, TEXAS
WATER CONSERVATION PLAN
AND
DROUGHT CONTINGENCY PLAN
SUBMITTED TO:
WATER CONSERVATION
AND
DROUGHT MANAGEMENT TEAM
WATER RIGHT PERMITTING
AVAILABILITY SECTION
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
October 1990
August 1992
October 2001
April 2005
April 2009
1
EXHIBIT "A"
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
MUNICIPAL WATER CONSERVATION PLANNING DAT: UTILITY SURVEY
Name of Applicant: City of Beaumont—Water Utilities PWSID No. 1230001
Address: 1350 Langham Road
Beaumont,TX 77707
Telephone Number: (409) 785-3000
Fax Number: (409)861-4836
Form Completed by: Dr. Hani J. Tohme,P.E.
Title: Water Utilities Director
Signature: Date:
2
I. CUSTOMER DATA
A. Population and Service Area Data
1. Please provide a description of the service area. If the applicant has
Received a Certificate of Convenience and Necessity (CCN) from the TCEQ, please
include a copy of the CCN and a service-area map.
The distribution system consists of 780 miles of water lines and six elevated storage
tanks with approximately 42,221 connections, encompassing a service area of 85.74
square miles. The service area is flat in nature and contains residential,commercial
and industrial customers. Water lines range in size from 2" to 42" in diameter.
Most of the city is operated as one pressure plane. However,a booster station in the
southern portion of the city serves the prison system. The north and west parts of
the city receive ground water, the remainder of the city receives surface water.
Refer to Appendix A for the CCN information.
2. Service area size (square miles): 85.74
3. Current population of service area: 121,579
4. Current population served by Utility:
a. Water 121,579 b. Wastewater 121,579
5. Population served by water utility 6. Projected population
for each of the previous five years: For service area:
Year Population Year Population
2004 129,130 2009 121,579
2005 123,799 2010 122,000
2006 122,230 2011 122,500
2007 123,400 2012 123,000
2008 121,800 2013 123,500
List source(s) and/or method(s)for the calculation of current and projected population:
Chamber of Commerce
Population for prison system 12,000
2009 population for Beaumont- 121,579
2013 projected population 123,500
Projected population increase in next five years based on ongoing developments and
housing projects.
3
B. Active Connections
1. Current number of active connections by user type:
Treated water users: Metered Not metered Total
Residential 35,841 None 35,841
Commercial 4,555 None 4,555
Industrial 16 None 16
Public 174 None 174
Other None None
Is multi-family service with a single meter counted as Residential or Commercial?
Commercial
2. Net number of new connections per year for previous five years:
Type 2004 2005 2006 2007 2008
Residential 181 14 488 (-750) (- 175)
Commercial 36 85 (- 13) (- 165) 284
Industrial 2 None 4 (- 7) 9
Public (-3) 3 1 (- 7) 10
Other None None None None None
Note: The numbers submitted in the 2004 plan were actual new connections for the
year.
The numbers in this report represent the difference in the total connections
for consecutive years.
4
C. High Volume Retail Customers
1. Two year average annual use (in 1,000 gallons) for the 5 highest volume retail and
wholesale customers whose water use is included in Section HA2 on Page 5.
Customer Use(1000eal.lyr.) Treated or raw
water
(1) Federal Correctional Complex 299,194 Treated
(2) TDCJ/Utilities & Energy 264,688 Treated
(3) Lucite International 45,428 Treated
(4) Peak Sulfur Inc. 34,590 Treated
(5) Betz Chemical Co. 22,862 Treated
2. Two year average annual use(in 1,000 gallons)for wholesale and other customers whose
water use is not included in Section HA2 on Page 5:
Customer Use Treated or Raw water
(1) N/A
11. WATER USE DATA FOR SERVICE AREA
A. Water Accounting Data
1 a. Amount of water diverted(pumped)for previous five years(in, 1000 gal.)Total
amount diverted for both ground and surface(raw water) sources.
2004 2005 2006 2007 2008
January 701,962 690,903 713,514 663,022 706,487
February 673,382 614,825 608,433 633,463 633,013
March 728,567 691,736 680,552 691,387 674,456
April 710,201 727,440 718,292 643,585 672,023
May 736,788 806,475 768,657 685,774 701,487
June 720,606 829,037 744,661 681,743 730,891
July 815,843 797,793 731,624 688,225 751,804
August 872,421 802,430 779,332 754,186 744,736
September 867,077 814,851 723,937 654,375 784,641
October 784,932 857,651 694,329 779,155 790,196
November 724,003 715,629 652,025 694,111 723,681
December 729,761 706,189 670,216 678,421 706,971
Total 9,065,543 9,054,959 8,485,582 8,247,447 8,620,386
5
lb. Please indicate how the above figures were determined (e.g. from a master meter
located at the point of diversion from a stream or located at a point where raw water
enters the treatment plant, or from water sales).
Master meters on raw water entering the treatment plant and meters on well flow
at the ground water pump station.
2. Amount of water (in 1,000 gallons) delivered (sold) as recorded by the following
account types(See#1, Appendix A) for the past five years. Total Consumption includes
Residential, Commercial, Industrial, Public, and other.
Year Total Consumption + Used for water treatment Total
2004 6,206,675 131,332 6,338,007
2005 6,389,841 175,590 6,565,431
2006 5,995,283 184,907 6,180,190
2007 5,410,261 137,766 5,548,027
2008 5,714,711 155,408 5,870,119
Note: Volume used for treatment decreased due to changing the type of polymer
suggested by research and experimentation.
3. Unaccounted-for water 4. Annual,peak-to-average daily use ratio
Year Amount(gall o Year Average MGD Peak MGD Ratio
04 2,727,536 30.09 04 24,410 34,138 1.399
05 2,489,528 27.49 05 24.808 34,530 1.392
06 2,305,392 27.16 06 23.248 30.896 1.329
07 2,699,420 32.73 07 22.596 28.602 1.266
08 2,750,267 31.90 08 23.553 33.961 1.442
5. Municipal per capita water use for previous five years(in gallons per capita per day):
(Industrial Sales are not available)
Total Industrial Municipal
Year Population Diverted/Year Sales Per Capita Use
04 129,130 9,065,543,000 N/A 192
05 123,799 9,054,959,000 N/A 200
06 122,230 89485,582,000 N/A 190
07 123,400 8,247,447,000 N/A 183
08 121,800 8,620,386,000 N/A 194
Note: In 2005 and 2008 Hurricanes Rita and Ike caused extensive damage to the
City of Beaumont that required continuous flushing for over 2 months. The
6
salt intrusion during Hurricane Ike required the pumping of salt water into
the distribution system that had to be flushed out. This emergency situation
caused the increase in the Municipal per Capita Use value that has seen a
decline since 2004.
6. Seasonal water use for the previous five years(in gallons/person/day):
Base per Summer per Seasonal
Year Population capita use capita use use
04 129,130 192 228 36
05 123,799 200 218 18
06 122,230 190 205 15
07 123,400 183 191 8
08 1219,800 194 203 9
B. Projected Water Demands
Provide estimates for total water demands for the planning horizon of the utility. Indicate
sources of data and how projected water demands were determined. Attach additional sheet
if necessary.
The following table is part of a report that was prepared for the City of Beaumont by
Freese& Nichols in 2004.
The City of Beaumont maintains an excellent set of production records from which an
analysis of historic water usage can be made. The total requirements are computed by
adding the total of both surface and well water to City.
This historical average day per capita demand has increased steadily from the 1950's
through 2004 with slight fluctuation in demands reflecting wet and dry years. Average
water consumption and per capita usage for the years 1998 was very high due to an
extended drought period. The table that follows displays the figures for population,
per capita water demand (GPCD),total water requirement for an average day(MGD),
and maximum daily requirements (MGD) excluding raw water usage. When this
report was prepared in 2004, it projected no decrease in the per capita demand
(GPCD)due to previous historic trends. However,the actual per capita values are less
than the 2004 projections by 5 and 12 percent for 2005 and 2007 respectively. The
decreasing per capita demand values is a result of increased usage of water
conservation measures. A couple of examples would be a leak detection program
conducted in 2007 and 2008, and continuous public education. The Texas Water
Development Board (TWDB) estimates these savings in per capita per day to be as
follows:
7
City of Beaumont
Projected Water Requirements
Year Projected Beaumont Per Capita Total Requirements Maximum
Population Demand for Avg Day (MGD) Daily
(GP D) Requirements
1950 94014 89.0 8.36 14.21
1960 119175 111.0 13.22 22.47
1970 117548 138.0 16.22 27.57
1980 118102 175.0 20.65 35.11
1990 114323 159.0 18.21 27.70
1997 119838 186.0 22.31 37.93
1998 120595 211.0 25.39 43.16
2000 122109 210.0 25.64 43.59
2005 125772 209.5 26.35 44.80
2010 129545 209.0 27.07 46.02
2015 133431 208.5 27.82 47.29
2020 137434 208.0 28.59 48.60
Population figures for 1950-1990 were taken from U.S. Census data. Population figures
for 1997 and 1998 were derived using a 3.2% grown rate predicted by SETRPC for this
period. Population figures from 2000-2020 were taken from the SETRPC estimated
growth gate. Average day requirements for 1950 to 1998 were provided by the City of
Beaumont. Per capita usage from 1998 through 2020 were based on below normal
rainfall (drought) conditions and a decrease of 0.5 GPCD per 5 year increment based
on increased usage of water conservation plumbing fixtures, and water conservation
programs implemented by the city.
8
III. WATER SUPPLY SYSTEM
A. Water Supply Sources
1. List all current water supply and the amounts available with each:
Source Amount Available
Surface Water: Neches River 50 MGD
Groundwater: Chicot Aquifer 16 MGD
Contracts: None None
Other: None None
B. Treatment and Distribution System
1. Design daily capacity of system: 56 MGD
2. Please describe the water system. Include the number of treatment plants, wells, and
storage tanks. If possible, include a sketch of the system layout.
The City of Beaumont is served by one surface water treatment plant and one
ground water pump station. The Neches River is the raw water source for the
surface water treatment plant (40 MGD). The surface water treatment plant is a
conventional-type water treatment plant with normal disinfection, up flow
pulsate clarifier, and dual media filtration. The raw water flows from the Neches
River to the surface water treatment plant via a canal system, pump station, and
pipe. The canal system has three intakes from the Neches River: Weiss Bluff
intake, Bunn's Bluff intake, and Lawson's intake. Only one intake is in use at a
time. Bunn's Bluff, Gravity flow intake is the normal operating intake. Lawson's
intake is used only in emergencies. The raw water is pumped from the end of
Bunn's Canal to the rapid mix where alum is added as the primary coagulant. I€
necessary caustic, is added to increase alkalinity. The water proceeds through
the up flow clarifiers to the filters. Chlorine can be added at this point, before
filtration, for disinfection zone 1; however, D1 is normally not utilized.
Phosphate is added before and after filtration for sequestration of manganese.
Chlorine, caustic and fluoride are added after filtration, just before the water
reaches the clear well, a 5 million gallon ground storage tank. D2 is from the
clear well influent to clear well effluent. After the clear well ammonia is added to
form chloramines and caustic is added to increase the pH. The water is then
9
pumped to the distribution system. The ground water system (16 MGD) consists
of three wells,two 5 million gallon ground storage tanks and four booster pumps,
all located in Hardin County north of Beaumont. The wells pump from the
Chicot Aquifer (a minor aquifer within the Gulf Coast aquifer). Free chlorine is
added before and after the ground storage tanks. The water is pumped from the
ground storage tanks to the distribution system.
The distribution system consists of 780 miles of water lines and six elevated
storage tanks with approximately 42,221 connections, encompassing a service
area of 85.74 sq. miles. Water lines range in size from 2" to 42' in diameter.
Most of the city is operated as one pressure plane. However, a booster station in
the southern portion of the city serves the prison system. The north and west
parts of the city receive ground water, the remainder of the city receives surface
water. Refer to Appendix B.
IV. WASTEWATER SYSTEM
A. Wastewater System Data
1. Design Capacity of wastewater treatment plant: 46 M D
2. Briefly describe the wastewater system(s) of the area serviced by the water utility.
Describe how treated wastewater is disposed of Where applicable, identify treatment
plant(s) with the TCEQ name and number, the operator, owner, and if wastewater is
discharged, the receiving stream. Please provide a sketch or map which located the
plant(s)discharge points or disposal sites.
The City of Beaumont's Wastewater Treatment Plant is a high rate continuous
recirculation, two stage bio-trickling filter plant followed by three polishing
ponds. Following chlorination and dechlorination the wastewater treatment
plant's effluent is pumped to a constructed wetland for tertiary treatment prior to
being discharged into a natural wetland and then to the receiving stream. Plant
site is locate at 4900 Lafin Road, approximately 3000 feet south of US Highway 69
and Highway 124 in Jefferson County. Since 2003 the wastewater treatment
plant received a major upgrade to its treatment units, electrical and SCADA
system.
The City of Beaumont's Wastewater Treatment Plant is owned and operated by
the City and is identified by TCEQ Permit Number 100501-020 Hillebrandt
Bayou Wastewater Treatment Plant.
Treatment effluent discharged is into Hillebrandt Bayou in segment number 0704
of the Neches-Trinity Coastal River Basin.
10
The City of Beaumont's wastewater treatment plant disposes of its aerobically
digested sludge at the City of Beaumont's Type 1 Landfill (TCEQ Number 1486)
owned and operated by the City of Beaumont. Refer to Appendix C.
B. Wastewater Data for Service Area
1. Percent of water service area serviced by wastewater system: 100%
2. Monthly volume treated for previous five years(in 1,000 gallons):
2004 2005 2006 2007 2008
January 467,110 917,330 516,240 1,019,760 1,524,100
February 459,520 495,090 430,280 759,390 800,500
March 483,030 911,050 429,140 803,850 753,790
April 611,760 484,220 357,070 956,970 563,520
May 695,940 489,130 500,440 742,090 565,220
June 508,460 904,280 594,050 1,081,630 602,040
July 525,410 653,560 1,385,510 1,475,760 678,400
August 481,120 710,490 548,450 647,920 1,242,960
September 546,580 870,776 597,280 840,050 620,920
October 490,510 835,140 1,078,770 528,150 669,390
November 819,250 824,226 366,090 689,800 738,760
December 571,920 934,770 572,940 783,190 1,068,110
Total 6,661,610 9,030,062 7,346,260 10,328,560 7,989,670
V. UTILITY OPERATING DATA
A.Water and Wastewater Rates and Rate Structure (Indicated if there are different rate
structures for industrial users).
ORDINANCE NO. 04-042
ENTITLED AN ORDINANCE AMENDIND CHAPTER 28, SECTION28-50 and
28-51, OF THE CODE OF ORDINANCE TO INCREASE WATER AND
WASTEWATER RATES EFFECTIVE JULY 1 IN THE YEARS 2004, 2005, AND
2006; PROVIDING FOR SEVERRABILITY; PROVIDING FOR REPEAL; AND
PROVIDIND A PENALITY.
11
BE IT ORDAINED BY THE CITY OF BEAUMONT:
ARTICLE M.WATER AND SEWER
REGULATIONS GENERALLY*
Section I
*Note: Additional provision for regulations and rates may be contained in
ordinances and papers not contained in this Code.
Sec. 28.50. Water service rates.
(a) Effective October 1, 2008, as shown below, the following rates per month shall be the rates
charged for water service furnished to customers within and outside of the corporate limits of the
City except as provided in paragraph(b) of this section.
Water/Sewer Rate Increase
October 1,2008
Minimum Monthly Rates
WATER
Meter Size/Inches Inside City Rate Outside City Rate
5/8 $9.02 $13.54
1 9.98 14.97
11/2 10.95 16.41
2 13.66 20.50
3 27.77 41.66
4 33.66 50.49
6 60.67 90.99
8 83.45 125.16
10 114.84 172.27
12 143.17 214.76
Usage rate first 1,000 gallons Minimum Minimum
Over 1,000 gallons $per $3.05 $4.58
1,000 gallons
12
(b) The rate for senior citizens who comply with subsection (c) below will be at a discounted rate
equivalent to the rate per one thousand(1,000)gallons of water.
(c)Eligible senior citizens shall mean customers residing in a single-family residence inside the city
who are over the age of sixty-five (65) years. To obtain the monthly minimum charge deduction,
persons eligible must file a sworn application on a form provided therefor, with water customer
services. Upon approval of the application the senior citizen's monthly minimum charge shall be
applicable for the life of the applicant.
(Ord. No. 88-72, § 1, 8-9-88; Ord. No. 89-79, § 1, 10-24-89; Ord. No. 90-68, § 1, 11-13-90; Ord.
No. 92-81, § 1, 12-8-92; Ord. No. 00-45, § 1, 5-30-00; Ord. No. 00-56, § 1, 6-27-00; Ord. No. 04-
042, § 1, 6-22-04; Ord. No. 07-093, § 1, 9-25-07; Ord. No. 08-075, § 1, 9-9-08)
Editor's note: Ord. No. 88-72, § 1, adopted Aug. 9, 1988, repealed §§ 28-50--28-55, pertaining to
water and sewer regulations and enacted new provisions designated as §§ 28-50--28-55 to read as
herein set out. Former §§ 28-50--28-55 derived from Code 1958, §§ 32-8, 32-9, 40-8, 40-9, 40-16;
Ord. No. 76-107, §§ 1-4, adopted Sept. 27, 1976; Ord. No. 76-108, § 1, adopted Sept. 26, 1976;
Ord.No. 76-125, § 1, adopted Oct. 19, 1976; Ord. No. 76-126, §§ 1,2, adopted Oct. 19, 1976; Ord.
No. 81-26, § 1, adopted April 21, 1981; Ord. No. 82-5, § 1, adopted Jan. 12, 1982; Ord. No. 83-123,
§ 1 (App. A, § II), adopted Sept. 27, 1983; Ord. No. 84-127, § 1, adopted Sept. 25, 1984; Ord. No.
85-96, §§ 1, 2, adopted Sept. 24, 1985; Ord. No. 86-99, §§ 1, 2, adopted Sept. 23, 1986; Ord. No. 87-
15, § 1, adopted March 17, 1987 and Ord.No. 87-51, § 1, adopted July 7, 1987.
Sec. 28-51.Wastewater service rates.
(a) Effective October 1, 2008, in each year as shown below, the following rates per month shall be
the rates charged for wastewater services furnished to customers within and outside of the corporate
limits of the city where the wastewater produced by such customers is a normal strength wastewater
(150 mg/1 lb)except as provided in paragraph(b) of this section.
13
WATER/SEWER RATE INCREASES
October 1, 2008
MIN' IMUM MONTHLY RATES
SEWER
Meter Size/Inches Inside City Rate Outside City Rate
5/8 $5.76 $8.63
1 5.86 8.78
11/2 5.95 8.92
2 6.47 9.69
3 7.32 10.97
4 10.72 16.09
6 17.57 26.33
8 21.47 32.22
10 29.29 43.92
12 37.09 55.62
Usage rate first 1,000 gallons Minimum Minimum
Over 1,000 gallons$per $2.76 $4.15
1,000 gallons
(b) The rate for senior citizens who comply with subsection (c) below will be at a discounted rate
equivalent to the rate per one thousand(1,000)gallons of water.
(c)Eligible senior citizens shall mean customers residing in a single-family residence inside the city
who are over the age of sixty-five (65) years. To obtain the monthly minimum charge deduction,
persons eligible must file a sworn application on a form provided therefor, with water customer
Services. Upon approval of the application the senior citizen's monthly minimum charge shall be
applicable for the life of the applicant.
(d) (1)Residential sewer charges shall be based on the average of the actual monthly water usage of
the preceding months of November, December, January and February which preceded the months
billed.
(2) The monthly individual residential sewer volume charge shall not exceed the average of the
actual metered water volume usage for the previous months of November through February. Where
no preceding November through February monthly average volume is available from records, the
water customer services shall establish an average monthly volume based on the average monthly
usage of all residential users in each particular cycle route for the winter months set out above.
14
(e) Commercial and industrial sewer usage charges shall be based on one hundred (100) percent of
the metered water usage. In circumstances where a commercial or industrial customer desires a
credit for metered water being consumed but not being returned to the sanitary sewer, it shall be the
responsibility of the user to furnish to the director of water utilities an engineering report, certified
by a professional engineer, that justifies and supports the discharge reduction as being a continuous
normal part of the process. Based on the data provided, the director of water utilities may estimate
said return or require submetering of the process water. Meter used for submetering shall be
furnished at the customer's expense and shall be approved by the director of water utilities.
(Ord. No. 88-72, § 1, 8-9-88; Ord. No. 89-79, § 2, 10-24-89; Ord. No. 90-68, § 2, 11-13-90; Ord.
No. 92-81, § 1, 12-8-92; Ord. No. 00-45, § 2, 5-20-00; Ord. No. 00-56, § 2, 6-27-00; Ord. No. 04-
042, § 2, 6-22-04; Ord. No. 07-093, § 2, 9-25-07; Ord. No. 08-040, § 24, 5-13-08; Ord. No. 08-075,
§ 2, 9-9-08)
Note: See the editor's note at §28-50.
VI. CONSERVATION GOALS
Please use the data provided in this survey to establish conservation goals(additional data may
be used).
A. Water conservation goals for municipal utilities are generally established to maintain or
reduce consumption, as measured in:
1. gallon per capita per day used;
2. unaccounted-for water uses;
3. peak-day to average-day ratio; and/or
4. an increase in reuse or recycling of water.
B. TCEQ conservation staff assess the reasonableness of water conservation goals based on
whether the applicant addresses the following steps:
1. identification of a water or wastewater problem;
2. performance of a system audit (completion of this form).
3. selection of goals based on the technical potential to save water as identified in the
audit; and
4. performance of a coast-benefit analysis of conservation strategies.
If at least the first three steps have been completed and are summarized in the water
conservation plan, then TCEQ staff can conclude that there is substantiated basis for the
goals, and that the water conservation plan is integrated into water management.
Therefore, the established conservation goals are deemed reasonable.
15
C. Complete the following in gallons per capita per day(gpcd)to quantify the water
conservation goals for the utility's service area.
1. Estimation of the technical potential for reducing per capita water use:
Conservation Scenario
Most Likely Advanced
a. Reduction in unaccounted-for users: 7.0 34.5 gpcd
b. Reduction in indoor water uses due to
water-conserving plumbing fixtures: 6.0 21.7
c. Reduction in season use: 4.0 7.65
d. Reduction in water use due to public
education programs: 4.0 9.55
TOTAL TECHNICAL POTENTIAL FOR
REDUCING PER CAPITA WATER USE: 21.00 73.40
2. Planning goal
The planning goal equals the dry year per capita water use minus the total technical
potentials calculated in number one above.
Goal to be achieved by 2013 (in gpcd): 172 gpcd
Goal to be achieved by 2018 (in gpcd): 162 gpcd
Note: Projections are based on using actual 2007 values since the 2008 values
were effected by Hurricane Ike.
3. Needed reduction in per capita use to meet planning goal
Current per capita use: 183
Planning goal for 2013(from#2 above): 172
Planning goal for 2018(from#2 above): 162
Difference between current use and 2018 goal: 21 gpcd
(Represents needed reduction in per capita use to meet goal.)
4. Methods to reduce per capita use:
a. Water line replacement program:
In 2000 the City of Beaumont adopted an aggressive water line replacement
program. The program continue to replace approximately 20,000 linear feet of
water lines per year. The replacement of corroded, unlined cast iron water lines
16
improves water quality, reduces water loss, and reduces production costs. Refer to
Appendix D.
b. Installation of conservative plumbing fixtures:
The City of Beaumont Code Enforcement section adopted the use of plumbing
fixtures that promotes water conservation. The City of Beaumont will continue to
enforce such measures.
c. Water Leak Detection and Elimination Program:
The water meter and alley lines relocation program, reduced the water leaks and
relocated the lines to the street making any future leak easier to detect.
The City of Beaumont contracted with ADS the leak detection program that
identified leaks and trained City staff on how to operate the equipment. The City is
in the process of buying leak detection equipment to conduct daily in-house leak
detection. Refer to Appendix E
d. Annual water meter testing.
In 2000 the City of Beaumont started conducting an annual test of all its meters 3
inches and larger. This program will continue to be a part of the standard
operations.
e. Water System Master Plan:
The City of Beaumont Contracted out to Schaumburg and Polk, Inc. the design of a
Master Plan that will be completed by the end of 2009. The Master Plan will field
survey and locate all existing lines, create a water model, and identify areas of low
pressures and potential water leaks.
f. Leak Detection Program:
The City of Beaumont executed a contract with ADS Environmental Services to
identify leaks in the distribution system. This program started in February 2007 and
was completed in April 2008. The leaks found have been repaired by City forces.
The City is in the process of buying leak detection equipment to establish an
ongoing leak detection program. Refer to Appendix F for Resolution and results of
study.
g. Self Audit Program:
The City of Beaumont will conduct a self audit for all its facilities every two years.
17
h. Water Bill Inserts
In the next five years the City of Beaumont will continue to include inserts in the
water bills to educate the public on water conservation. In addition the City will
insert in the water bill a self audit to the customers to help them conserve water and
save money. Refer to Appendix G
i. Public Education:
The City of Beaumont adopted a five year educational program(2009 through
2013)that will continue to educate the public by presenting brochures at
community centers, town hall meetings, schools and entertainment festivals. In
addition, the City is sponsoring water conservation school programs and projects
Refer to Appendix H
18
ATTACHMENTS
Appendix A Certificate of Convenience and Necessity(CCN), Site Maps
Appendix B Water Treatment Plant Flow Schematic
Appendix C Wastewater Treatment plant Flow Schematic
Appendix D Water Line Replacement Program
Appendix E Water Meter and Alley Lines Relocation Program
Appendix F Leak Detection Program
Appendix G Customer Self Audit
Appendix H Public Education Handout/School Programs
Appendix I Resolution R-92-184
Appendix J Ordinance No. 01-058
Apendix K Ordinance No. 01-078
Appendix L Drought Contingency Plan
19
9
August 25, 2009
Consider authorizing the City Manager to enter into contracts for the purchase of homes and the
provision of relocation assistance for their owners of houses flooded during Hurricane Ike in
conjunction with the approved Hazard Mitigation Grant Program's Acquisition and Demolition
Program
RICH WITH OPPORTUNITY
[IEA,111�1011
T • E , X . A , S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
(-)k3
PREPARED BY: Chris Boone, Community Development Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider authorizing the City Manager to enter into contracts for
the purchase of homes and the provision of relocation assistance
for their owners of houses flooded during Hurricane Ike in
conjunction with the approved Hazard Mitigation Grant
Program's Acquisition and Demolition Program.
RECOMMENDATION
The Administration recommends approval.
BACKGROUND:
As a result of Hurricane Ike, some homes located within the floodplain, east of Pine Street,
received flood damage. Because the City's floodplain land use ordinance requires that homes
in the floodplain that are substantially damaged be elevated prior to repair, many residents
have found elevating their homes and repairing them difficult if not impossible.
In order to provide relief to the residents and avoid future, repetitive flooding of these homes,
the City applied for Hazard Mitigation funds to acquire and demolish these homes. The City
was successfully awarded this grant for acquisition and removal of sixteen (16) homes. To
date, we have inspected and secured appraisals for each of the sixteen (16) homes and made
purchase and relocation offers. Those addresses listed below and attached contracts represent
offers accepted by the owners, up to this point. Please note that the purchase offer amounts
are based on pre-storm appraisal values, less any proceeds from insurance and/or other disaster
relief assistance. The amount of relocation assistance is based on the grant formula and
differs, depending upon the resident's desire to secure rental housing or purchase a new home.
Address Owners Name Purchase Relocation
Amount Amount
410 Manning Dorothy Green $26,845.71
3105 Taliaferro Willis-Joubert $22,527.56
3150 Taliaferro Timmie Bell $22,738.60
385 E Delaware Marshall Terry $10,000.00
445 Manning Horace&Lilly Dean $22,500.00
Total: $82,111.87 $22,500.00
FEMA Grant Amount(at 75%) $61,583.90 $16,875.00
Local CDBG Match Amount(at 25%) $20,527.97 $5,625.00
This grant provides seventy-five percent (75%) of the costs, with a required twenty-five
percent (25%) local match, which will be paid through a reallocation of 2008 Program Year
CDBG demolition funds. It is expected that additional purchase contracts will be forthcoming
as offers are accepted by the homeowners. Once these properties are acquired, the City will
demolish these homes and deed restrict the properties, to prevent future flooding losses. These
costs will also be covered by the grant.
BUDGETARY IMPACT
Funds this local match are available through the 2008 Program Year CDBG Budget.
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this "day of 2009,by and between the City of
Beaumont,Texas, hereinafter referred to as the Ci , and Dorothy Green, Befty Gray,Georgia Gray-Guillory,Jackie
Gray,William Paul Gray,and Betty Joseph,hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address, 410
Manning and described as North End N 122 Ft Lot 8 Block 7 Abstract 046750. The Seller represents that this property was
damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that there is NO
OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$26,845.71 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$42,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$5,072.67 and$13,522.62
for any Disaster Housing Assistance program(DI-IA)(structural repairs)and/or$0.00 for Other Needs Assistance
(ONA) for which SELLER cannot document as expended on repair of the damaged structure, and a
reimbursement of$3,441.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price, if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
S. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses, to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnities,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers, agents, employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this ay of �. 2009.
Seller Si Afurs ' Witne: attesting for Seller(signature)
,Y
s s A A A.--p
Seller MAW Name Witness,attesting for Seller(P ed Name)
j
Sc ler Sig uture Witness ttesting for Seller(signature)
Seller Print'td Name
.�/ \ Witness, attesting fo•Sellri . Nam e)
'Seller Signatures Witnes ,'attesting for Seller(signature)
Seller Printed N me Wit e...attesting for S ller(Printed Name)
SeIIOY Si-nature Witness,attestin-for Seller(signat e)
�- e
Seller Printed Name Witness,'utesting for( I�Piinted LL ame)
• f
Seller Signa e W�tne; ;atte;t' of Seller_(signtu ) ,
Seller Prin cd Name Witness,attesting for Seller(Printed Name)
AU
tiller Stgna re Witness, attesting for Seller(signature
Seller Printed Name Witness,attesting for Seller( rinte i ame)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this 10th day of June 2009,by and between the City of Beaumont,Texas,
hereinafter referred to as the City,and Elnora Willis-Joubert hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address, 3105
Talinferro and described as Part of Mt Olive Lot 16, Lot 17, Block 3 Abstract 045250. The Seller represents that this
property was damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that
there is NO OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$22,527.56 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$35,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$0.00 and$12,472.44 for
any Disaster Housing Assistance program(DHA) (structural repairs) and/or$0.00 for Other Needs Assistance
(ONA) for which SELLER cannot document as expended on repair of the damaged structure, and a
reimbursement of$0.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price,if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures, materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers,agents,employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this 1091h day of June,2009.
�r"� �' �.Jam• s,✓- A,.y 't y, t� �,_ v ,....r ��1a ,.i '.`..-e y ��� q y,._..,
Seller Signature Witness,attesting for Seller(signature)
Elnora Willis-Joubert w, �� �
Seller Printed Name Witness,attesting for S 11 (Pri ted Name)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this _(+_day of 2009,by and between the City of
Beaumont,Texas,hereinafter referred to as the City,and Timmie Bell he rafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address,3150
Taliaferro and described as Mt Olive Lot 13 Block 4 Abstract 045250. The Seller represents that this property was
damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that there is NO
OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$22,738.60 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the a to be paid for the property is the pre-flood value of$40,000.00 with
deductions for any flood insurance payment received by SELLER for structural damage of$20,300.00, wind
insurance payment received by SELLER for structural damage of$4,611.40, $0.00 for any Disaster Housing
Assistance program (DHA) (structural repairs) and/or $0.00 for Other Needs Assistance (ONA) for which
,SLLER cannot document as expended on repair of the damaged structure,and a reimbursement of$7,650.00 for
certain repairs and/or unreimbursed temporary living expenses for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price,if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers,agents, employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this day of titer ,2009.
3tller Signature 4Wyiess, ttesting for Seller(signature)
Timmie Bell ,
Seller Printed Name i att sting for Sell r(Printed Name)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this day of a i° 2009,by and between the City of
Beaumont,Texas,hereinafter referred to as the City,and Marshell G Terry hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont,Texas in which the SELLER owns a parcel of land known by the physical address,385 E.
Delaware and described as Part of Mt Olive Lot 16, Lot 17, Block 3 Abstract 045250. The Seller represents that this
property was damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that
there is NO OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$10,000.00 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title; provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$10,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$0.00 and$0.00 for any
Disaster Housing Assistance program(DHA)(structural repairs)and/or$0.00 for Other Needs Assistance(ONA)
for which SELLER cannot document as expended on repair of the damaged structure, and a reimbursement of
$0.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price, if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases, indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers, agents,employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this day of 2009.
Seller Signature _ —T Witness,attesting for Seller(signature)
Marshell G Terry s �°
Seller Printed Name
Witness,attesting for Seller(Pia<CecC Na*)
City of Beaumont Approval:
Oti T.r R RE_0 'F_TION AGREEMENT
THIS AGREEMENT is made and entered into this j: �° day of ;, t r_; t 200'4. by and
between the City of Beaumont, Texas, hereinafter referred to as "CITIPI and flor2ce & LKiv Lean,
hereinafter referred to as the"RECIPIENT."
WITNESSETH:
The CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's
Division of Emergency Management(GDEM) to purchase certain property in Beaumont, Texas in which the
SELLER owns a parcel of land known by the physical address,445 Manning and described as North End Lot-
12 Block-4 Abstract 046750,(the"Property")in which the RECIPIENT resides.
THAT,the State and FEMA have allocated additional grant funds to assist the RECIPIENT in fording
and affording a decent,safe,and sanitary replacement home,outside of the floodplain.
THAT,the RECIPIENT was the Owner of the above-referenced Property and entered into a voluntary
agreement to sell the above-referenced Property to CITY.
THAT, the RECIPIENT represents that he resided in the above-referenced residence and that the
RECIPIENT meets the qualification requirements for Environmental Justice Relocation Assistance.
NOW,THEREFORE,CITY and the RECIPIENT(collectively,the"Parties")agree as follows:
1. CITY agrees to pay the RECIPIENT the sum of Twenty Two Thousand Five Hundred and No/100
($22,500.00) payable upon acceptance of this Agreement by both parties and after the RECIPIENT
has vacated the above-referenced Property.
2. The amount to be paid was determined in accordance with applicable procedures as follows:
ITEM PRESENT COST NEW COST DIFFERENCE
Purchase of replacement home $30,000.00 $85.000.00 $55,000.00
Amount of City contribution toward replacement home $22,500.00
*Capped at$22,500
Total benefits to be paid= $22,500.00
3. The RECIPIENT acknowledges that this payment will satisfy any and all obligations of the CITY
as to this transaction and agrees to accept this payment as complete and full compensation.
4. The RECIPIENT acknowledges that he has had an opportunity to review this Agreement and that
he has had an opportunity, if he so chooses, to contact an attorney of his choice to review this
Agreement and the RECIPIENT enters into this Agreement fully understanding the nature thereof and
saves and holds harmless the CITY as a result of this Agreement or anything incident to the purchase
of the above-referenced Property.
This Agreement is binding upon the heirs,executors,successors,and assigns of the Parties.
�t
4
DATED this'" `day of j,, ,�t 2003
RECIPIENT W'TNESS
IECIPIENT ��'ITT�TESS
Accepted by: _
CITY OF BEAUMONT
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 contracts with the
owners of homes flooded during Hurricane Ike for the purchase of those homes and the
provision of relocation assistance through the Hazard Mitigation Grant Program's
Acquisition and Demolition Program as described below:
Address Owners Name Purchase Relocation Amount
Amount
410 Manning Dorothy Green $26,845.71
3105 Taliaferro Willis-Joubert $22,527.56
3150 Taliaferro Timmie Bell $22,738.60
385 E Delaware Marshall Terry $10,000.00
445 Manning Horace&Lilly Dean $22,500.00
Total: $82,111.87 $22,500.00
FEMA Grant Amount(at 75%) $61,583.90 $16,875.00
Local CDBG Match Amount(at 25%) $20,527.97 $5,625.00
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
10
August 25, 2009
Consider approving a resolution authorizing the City Manager to execute water and/or
wastewater service agreements with City of Beaumont wholesale customers
RICH WITH OPPORTUNITY
r
T • E • x • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Dr. Hani J. Tohme, Water Utilities Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of a resolution authorizing the City
Manager to execute water and/or wastewater service
agreements with City of Beaumont wholesale customers.
RECOMMENDATION
Administration recommends approval of executing water and/or wastewater service agreements
with Arkema, Inc., Equistar Chemicals, LP, Exxon Mobil Polyethylene Plant, Exxon Mobil
Refinery, Exxon Mobil BCSP/OA, Lucite, Northwest Forest MUD, Peak Sulfur, Inc., Martin
Resources, BASF Corporation, Republic Services, Texas Department of Criminal Justice,
Cardinal Meadows Improvement District, Federal Bureau of Prisons, Gerdau Ameristeal of
Beaumont, GE Betz, West Jefferson County MUD, and Meeker MUD.
BACKGROUND
The Texas Commission on Environmental Quality, Chapter 290, Sub-Chapter D, Rules and
Regulations for Public Water Systems, require municipalities to execute service agreements with
wholesalers as well as non-transient non communities which are not a community water system
but regularly serve at least 25 of the same persons at least six months out of the year. Once
service agreements are executed with such entities, they will be required by state law to monitor
and report the water quality inside of their property on a monthly basis. This procedure will
prevent any possible contamination of the City of Beaumont water system and protect public
health.
The Water Utilities Department provides water and/or sanitary sewer services to 16 industrial
customers and 4,800 commercial customers. The industrial and commercial facilities will be
evaluated, and agreements will be executed for those who will be identified as wholesalers and
non-transient non-communities.
The execution of the service agreements is recommended for approval by the City Manager and
the Water Utilities Director. A sample service agreement is attached for your review.
BUDGETARY IMPACT
None.
RICII \VITIf 0VALITY
T E - X - A - S City of Beaumont
SERVICE AGREEMENT CONTRACT
STATE OF TEXAS §
COUNTY OF JEFFERSON §
CITY OF BEAUMONT §
CONTRACT BETWEEN
City of Beaumont ■ Arkema Inc.
WHEREAS, Arkema Inc., doing business in the State of Texas (herein"Owner"), and the
City of Beaumont, a municipal corporation of the State of Texas(herein"City")entered into a Contract
on Date for the City to provide potable drinking water services to Arkema.
WHEREAS,the City and Owner desire to adopt a Service Agreement Contract for the provision
of potable drinking water services to Arkema and agree as follows:
WITNESSETH
I
Owner agrees to maintain, free of charge to the City, the water lines within its property.
11
The City shall have the right to enter on the Owner property or premises with 24 hour prior notice
for any purposes reasonably incidental to or necessitated by the terms and provisions of this Contract. The
City wilt abide by all Owner site safety rules and other site access rules while on Owner property.
III
Owner agrees to install and maintain a UL approved RPZ (reduced pressure zone) backflow
prevention device at the point of service(the meter). The City will give a variance of several feet so that the
Ciq of Beaumont 1350 Langliam Road
\\atei Utilities Department Page I of 6 Beaumont,Texas 77707
RPZ can be placed inside the fence for protection. The RPZ must be installed according to the requirements
in City Ordinance 01-032, Section 28-57.12. The assembly must be tested upon installation and annually
by a certified tester.
IV
Owner agrees to install and maintain all appropriate required backflow and backsiphonage
prevention assembly devices deemed necessary by the Texas Commission on Environmental Quality
regulations to protect the internal owners. The internal protection of the drinking water supplied to Owner
employees and/or owners is the responsibility of Owner. The City will provide guidance on proper cross
connection prevention.
V
Owner agrees to comply with applicable City Code of Ordinances including the following
restrictions and unacceptable practices prohibited by State regulations:
1. No direct connection between the public drinking water supply and a potential source of
contamination is permitted. Potential sources of contamination shall be isolated from the public
drinking water supply by an air-gap or a reduced pressure-zone backflow prevention device.
2. No cross-comlection between the public drinking water supply and a private water system is
permitted. These potential threats to the public drinking water supply shall be eliminated at the
service connection by the installation of an air-gap or an approved backflow prevention device.
3. No connection which allows water to be returned to the public drinking water supply is permitted.
4. No pipe or pipe fitting which contains more than 8.0% lead may be used for the installation or
repair of plumbing at any connection which provides water for human use.
5. No solder or flux which contains more than 0.2%lead shall be used for installation or repair of any
water supply which provides water for human use.
VI
The Water Utilities Department will maintain a copy of this Contract as long as the Owner and/or
the premises are connected to the Water Utilities Department. Additional requirements are listed below:
City of Beaumont 1350 Langham Road
Watcr Utilities Department Page 2 of 6 Beaumont,Texas 77707
I. Owner shall have their property inspected for possible cross-connections and other potential
contamination hazards. These inspections shall be conducted by a qualified inspector acceptable
to the Water Utilities Department annually,or when there is reason to believe the cross-connection
or other potential contamination hazards exist due to changes to the private water distribution
facilities.
2. Owner shall notify the Water Utilities Department in writing of any cross-connection or other
potential contamination hazard which has been identified during the initial inspection or the
annual reinspection.
3. Owner shall immediately remove or adequately isolate any potential cross-connections or other
potential contamination hazards on their pre>nises.
4. Owner shall, at their expense, properly install, test annually, and maintain any backflow
prevention device required by the Water Utilities Department. Copies of all testing and
maintenance records shall be provided to the Water Utilities Department by July 30 of each year
or date of annual testing schedule.
VII
Owner will be responsible for all reporting requirements to the State as a Public Water Supply
System. The City will provide annually the Consumer Confidence Report for its distribution. In the event
of a change in treatment or distribution such as utilizing treated water other than City supply,Owner agrees
to promptly report to the City. This is to include any violations of chlorine and/or coliform monitoring.
VIII
Owner is authorized to use a maximum of 9,000 gallons per hour on a daily average or 216,000
gallons per day. The rates applied by the City can be negotiated if the demand of Owner changes.
IX
Owner agrees to pay to the City all charges for water service within thirty(30) days from date of
statement from the City. In the event of failure of Owner to so pay said charges, City shall have the right,
City ol'Beaumont 1350 Langhatn Road
water Utilities Depaivnent Page 3 of 6 Beaumont,Texas 77707
upon thirty(30) days written notice to Owner, to refuse to provide potable water service to Owner.
X
Owner will pay the same rate for water services as established from time-to-time by the City
Council for outside the City of Beaumont. The event said rates are altered or amended by City Ordinance,
Owner agrees to pay said amended rates.
XI
Owner agrees to:
1. Adopt a resolution or take some other official action agreeing to the terms and conditions of this
Contract,
2. Adopt a resolution or take some other official action ratifying, affirming and accepting the
benefits and agreeing to the terms, conditions and requirements of this Contract; and
3. Enter into such other or additional contracts or agreements as may be reasonably required to carry
out the purpose and intent of this Contract.
XII
This Contract shall be for a period of 12 months from and after the date of execution and shall continue there
after year to year until either party gives 30 days written notice of intent to terminate this agreement..
XIII
Owner may, from time to time, convey or assign this Contract with respect to all or any part of
the land contained within Owner's property boundaries,and the assignee or assignees shall be bound by this
Contract. Upon prior approval by the City Council,of the assignee or assignees,and only upon the condition
that the assignee or assignees assume the liabilities,responsibilities and obligations under this Contract with
respect to the land involved in the assignment or assigmnents,or as may be otherwise approved by the City
Council.
City of Beaumont 1350 Langham Road
Water Utilitie,Department Page 4 of 6 Beaumont,Texas 77707
In connection with this Contract, official addresses for notification shall be:
A. Hann J. Tolmle, Director
City of Beaumont
Water Utilities Department
1350 Langham Road
Beaumont, Texas 77707
B. Robert Martinez
Arkema Inc.
PO Box 1427
Beaumont, TX 77704
Any changes in said addresses may be made by notifying the other parties by certified mail of the
new or changed contact person and/or address.
XIV
This Service Agreement represents the entire and integrated Contract between the City of
Beaumont and Owner and supersedes all prior negotiation, representatives, or agreements, either oral or
written. This Contract may be amended only by written instrument signed by both the City of Beaumont's
City Manager and Owner.
IN WITNESS WHEREOF,the City of Beaumont Water Utilities Department has lawfully caused
these presents to be executed by the hand of the City Manager of said City,and the municipal corporate seal
of said City to be hereunto affixed, and the said Owner, Owner, acting by hand of the President and/or
Manager whereunto Authorized Representative, does now sign, execute and deliver this document.
Executed in duplicate originals at Beaumont, Texas, on this day of A.D., 2008.
Owner CITY OF BEAUMONT/CITY MANAGER
By: By
(PRINT) Authorized Representative Date Kyle Hayes, City Manager Date
By:
Signature of Authorized Representative Date
Attest: Attest:
Date Date
City of Beaumont 1350 Langham Road
Water Utilities Department Page 5 of 6 Beaumont,Texas 77707
STATE OF TEXAS §
COUNTY OF JEFFERSON §
CITY OF BEAUMONT
BEFORE ME,the undersigned,a Notary Public in and for the said county and state, on this day personally
appeared known to me to be the person and officer whose name is subscribed to the foregoing
instruction, and acknowledged to me that the same was the act of the said Owner, and that he executed the same as
the act of such company for the purposes and consideration therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of A.D. 2008.
Notary Public
My Commission Expires:
City of Beaumont 1350 Lam�ham Road
Water Utilities Department Page 6 of 6 Beaumont.Texas 77707
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 water and/or
wastewater service agreements with Arkema, Inc., Equistar Chemicals, LP, Exxon Mobil
Polyethylene Plant, Exxon Mobil Refinery, Exxon Mobil BCSP/OA, Lucite, Northwest Forest
MUD, Peak Sulfur, Inc., Martin Resources, BASF Corporation, Republic Services, Texas
Department of Criminal Justice, Cardinal Meadows Improvement District, Federal Bureau
of Prisons, Gerdau Ameristeal of Beaumont, GE Betz, West Jefferson County MUD, and
Meeker MUD.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
11
August 25, 2009
Consider approving a one year contract with Blue Cross Blue Shield of Texas for employee
medical and dental insurance
RICH WITH OPPORTUNITY
.1(
1111EA,111�lcl rk
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Lillie Babino, Human Resources Director ,��
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of a one year agreement with Blue Cross
Blue Shield of Texas (BCBSTX) for employee medical and
dental insurance.
RECOMMENDATION
Administration recommends that Council award to Blue Cross Blue Shield of Texas (BCBSTX)a
one year contract effective January 1, 2010 for third party administration of the City's fully insured
Health Maintenance Organization(HMO Blue Texas), self funded Preferred Provider Organization
(PPO) medical plan and a self funded dental plan.
BACKGROUND
The City offers its full time employees medical and dental benefits.The medical and dental benefits
consist of a self funded PPO plan, a fully insured HMO plan, and a self funded dental plan. There
are 997 participants enrolled in the PPO plan, consisting of 861 active employees, 132 retirees, and
4 COBRA participants. There are 457 participants enrolled in the HMO plan, consisting of 403
active employees, 52 retirees, and 2 COBRA participants.
In May 2009, City staff began analyzing the City's health care costs. In June 2009, staff also began
working with the City's health benefit consultant,Holmes Murphy&Associates to determine if the
City should request bid proposals for the City's HMO, PPO, and dental plans or remain with the
current administrator, BCBSTX for 2010. The City has the option to negotiate new rates with
BCBSTX without seeking bids. The prior year bid states the City has the option to request renewal
rates from the current administrator,BCBSTX.The current agreement with BCBSTX started January
1, 2006 and can be renewed for up to five years.
After analyzing and negotiating the BCBS renewal rates, staff concluded that BCBSTX offered the
most cost effective plans.Initial renewal rates projected by BCBSTX for the fully insured HMO plan
increased 10.4%. Actual claims experience resulted in the high initial renewal projection. PPO
overall fixed costs consisting of stop loss and administration fees remained the same. Renewal rates
for the self funded dental plan did not increase. Final negotiations by Holmes Murphy&Associates
resulted in the HMO plan renewal being held to a 4.5%increase. The HMO increase was a function
of increasing utilization due to aging members and medical inflation.
Medical and Dental Insurance
August 25, 2009
Page 2
Holmes Murphy & Associates recommends that the City remain with BCBSTX because it offers
cost effective plans with an extensive network and deep provider discounts. The final negotiated
rates are lower than the projected industry trends of 10 to 12%.
Staff recommends implementation of the following rates to be paid by the City for HMO coverage,
PPO and Dental administration effective January 1, 2010:
2009 Monthly HMO Rates 2010 Monthly HMO Rates
Employee Only $336.92 $352.08
Employee + 1 Dependent $811.94 $848.48
Employee + Family $1155.56 $1,207.56
2009 Monthly PPO Stop Loss 2010 Monthly PPO Stop Loss
and Administration Rates and Administration Rates
Employee Only $60.69 $60.69
Employee + 1 Dependent $86.47 $86.47
Employee +Family $86.47 $86.47
2009 Monthly Dental 2010 Monthly Dental
Administration Rates Administration Rates
Employee Only $5.66 $5.66
Employee + 1 Dependent $5.66 $5.66
Employee + Family $5.66 $5.66
BUDGETARYIMPACT
Funds are available for this expenditure in the Employee Benefits Fund.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into a one-year contract
with Blue Cross Blue Shield of Texas (BCBSTX) for third party administration of the City's
fully insured Health Maintenance Organization (HMO Blue Texas), self-funded Preferred
Provider Organization (PPO) medical plan and a self-funded dental plan effective January
1, 2010.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
12
August 25, 2009
Consider authorizing the City Manager to implement contribution rate changes for retirees in the
medical plans
RICH WITH OPPORTUNITY
r
C .
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Lillie Babino, Human Resources Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council authorize the City Manager to implement the
contribution rate change for retirees in the medical plans.
RECOMMENDATION
Administration recommends that Council approve medical contribution rate changes for retirees
including their dependents, effective January 1, 2010.
BACKGROUND
Retirees and their dependents are allowed to elect continuation of medical coverage as provided by
state statue. The retiree/dependent may continue coverage until the retiree/dependent is covered by
Medicare/Medicaid but not beyond age 65. Currently,there are 184 retirees on the City's medical
plans.
The retiree contribution rate for Police and Fire retirees is based on a provision in the Police and Fire
contract agreements which states, "Any employee who retired on or after February 1, 1992 may be
subject to an annual increase in contribution. The increase will be effected in accordance with the
labor agreement. The single rate will be established at 69%; single rate + I at 58%; and the family
rate at 54% of the COBRA rate on January 1 s` annually." This same formula is utilized when
calculating the contribution rate for civilian retirees.
The City requested Holmes Murphy&Associates,its benefits consultant,to analyze the City's health
costs and to determine the 2010 medical COBRA rates. Based on Holmes Murphy & Associates
analysis, it is recommended that retiree medical rates effective January 1, 2010 be as follows:
Retiree Medical Plan Rates for 2010
August 25, 2009
Page 2
Plan 2010 2010 2010 2010 2009
and Medical Prescription COBRA Retiree Retiree
Category Rate Drug Rate Rate* Rate Rate
PPO (EO) $308.79 $63.08 $371.87 $256.59 $256.59
(El) $764.29 $156.16 $920.45 $533.86 $533.86
(E2) $1003.82 $205.11 $1208.93 $652.82 $652.82
HMO (EO) $352.08 $62.94 $415.02 $286.36 $275.90
(E1) $848.48 $151.70 $1000.18 $580.10 $558.91
(E2) $1207.56 $215.91 $1423.47 $768.67 $740.59
*Rate does not include COBRA administration fee.
BUDGETARYIMPACT
Appropriation of funds is available in the Employee Benefits Fund.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to implement the following medical
contribution rates for retirees, including their dependents, effective January 1, 2010:
Plan 2010 2010 2010 2010 2009
and Medical Prescription COBRA Retiree Retiree
Category Rate Drug Rate Rate* Rate Rate
PPO (EO) $308.79 $63.08 $371.87 $256.59 $256.59
(E1) $764.29 $156.16 $920.45 $533.86 $533.86
(E2) $1003.82 $205.11 $1208.93 $652.82 $652.82
HMO (EO) $352.08 $62.94 $415.02 $286.36 $275.90
(E1) $848.48 $151.70 $1000.18 $580.10 $558.91
(E2) $1207.56 $215.91 $1423.47 $768.67 $740.59
*Rate does not include COBRA administration fee.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
13
August 25, 2009
Consider approving a contract with CVS Caremark for Pharmacy Benefit Manager services for
City employees
RICH WITH OPPORTUNITY
111rCA,IIMONW.
T • E • x • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Lillie Babino, Human Resources Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council consider authorizing a five year agreement with
CVS Caremark for Pharmacy Benefit Manager services for
City employees.
RECOMMENDATION
The Administration recommends that Council authorize a five (5)year agreement with the current
vendor CVS Caremark, with an option to terminate, with or without cause, after the first year.
BACKGROUND
As prescription drug costs continue to rise, the City faces a challenge in providing the same level of
drug benefits as in previous years. The decision to recommend the agreement with CVS Caremark
was based on their projected annual plan costs and continuity of services provided to City employees.
For FY 2009, City drug costs are estimated to total $2.5 million which is approximately an eight
percent (8%) increase over the prior year. This increase is representative of industry trends which
predicted an 8-10% increase in pharmaceutical costs for 2009. Industry trends predict an 8-12%
increase in pharmaceutical costs in 2010. The 2010 trend takes into consideration the increasing use
of high cost speciality pharmacy medications.
In May, 2009, City staff began analyzing the City's prescription drug costs and requested bid
proposals from pharmacy benefit management companies. Nine(9)bid proposals were received and
City staff along with the City's pharmacy benefit consultants, Action RX and Holmes Murphy
interviewed the top three(3) companies.
After evaluating the bid proposals, City staff, Action RX, and Holmes Murphy concluded that CVS
Caremark offered the most robust and cost effective program. Besides placing first in the financial
analysis, CVS Caremark offers high touch case management in its exclusive specialty pharmacy unit
and placed an emphasis on adherence programs for five major disease states. Specialty Pharmacy is
where some of the most expensive medications are dispensed to treat some of the sickest members.
For example, medications to treat Multiple Sclerosis, Rheumatoid Arthritis, and Cancer which cost
an average of$1,500 to $4,000 per month are dispensed through Caremark's Specialty Pharmacy
division. Their national network of 61 speciality pharmacies provides continuous services 24/7/365;
and supports emergency and/or disaster events. CVS Caremark also provides a case
August 25, 2009
Page 2
management team to each chronically ill member that includes a Registered Nurse who specializes
in that disease state, a reimbursement specialist, and pharmacy tech support. For the rest of the
utilizers who use pharmacy services, CVS Caremark has 12 certified call centers that provide 24
hour assistance and members also have the option to speak with a pharmacist. The other bidders
could not offer this level or depth of service. Further, with CVS Caremark's adherence programs
for five (5) major disease states, CVS Caremark has the clinical assistance in place to measure,
monitor, and provide robust programs to improve adherence.
While CVS Caremark is a national company, CVS contributes heavily to the communities they
serve. CVS employs 102 full-time and 40 part-time employees in Beaumont. CVS Caremark was
very active in Hurricane relief efforts for Southeast Texas which included a $250,000 donation to
the National Relief Fund of the Red Cross.
The pricing structure proposed by CVS Caremark projects a cost savings of approximately 16.97%
from the current pricing structure. This is based upon improved pricing on discounts, fees, and
rebates**. Bid tabulations for the top three (3) finalists are as follows:
VENDOR PROJECTED PROJECTED
ANNUAL MEMBER
PLAN COST** COST
CVS Caremark (incumbent) $2,057,915 $881,964
Northbrook, Illinois
Medco Health Solutions, Inc. $2,104,866 $902,085
Franklin Lakes,New Jersey
Script Care $2,072,027 $888,012
Beaumont, Texas
The current 30% co-pay plan design for City employees will remain the same.
BUDGETARY IMPACT
Funds are available in the Employee Benefits Fund.
**An assumption based on actual plan year claims data
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Council hereby approves a five (5)-year agreement, with the option to
terminate, with or without cause, after the first year, with CVS Caremark as the City's
Pharmacy Benefit Manager (PBM).
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
14
August 25, 2009
PUBLIC HEARING: Dangerous Structures
Consider approval of an ordinance declaring certain structures to be dangerous structures and
ordering their removal within 10 days or authorizing the property owner to enroll the dangerous
structure in a work program
F ?
RICH WITH OPPORTUNITY
r
T • E • x • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
c V
PREPARED BY: Chris Boone, Community Development Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: City Council, after conducting a public hearing, consider an
ordinance to declare the following seventy(70) structures to
be dangerous structures and order the owners to raze said
structures within ten(10)days. If the property owner fails to
comply within ten (10) days, staff is requesting City Council
authorization to demolish these structures without further
notification to the property owner or City Council action.
Additionally,if the property owner of a structure requests and
is authorized by City Council to enroll in a work program, all
delinquent taxes shall be paid in full or a payment plan shall be
established prior to enrollment in the work program.
Enrollment in the work program shall occur within ten days
after the effective date of this ordinance.
1. 620 Adams (Storage Shed) 11. 3149 Case
2. 3995 Adilade 12. 940 Church and Garage
3. 1110 Amarillo (Garage) 13. 5465 Cole Road and Shed
4. 1650 Avenue A(Garage& Storage Bldg) 14. 5475 Cole Road and Shed
5. 1647 Avenue H(Garage) 15. 3545 Corley
6. 2035 Brooklyn 16. 3029 W. Crockett
7. 2595 Brooklyn 17. 3179 W. Crockett
8. 2580-82 Calder(Commercial) 18. 3145 Dorothy Avenue(Storage Building)
9. 4770 Carnegie(Garage) 19. 1125 Doucette Avenue (Garage)
10. 11675 Carpenter Road 20. 1350 Doucette Avenue (Garage)
(#) Indicates number of times structure has been enrolled in work program.
t
Continued
21. 1640 Earl 46. 3550 Pradice
22. 1433 Emile(Garage) 47. 1798 Prairie(Garage)
23. 1435 Emile 48. 3435 Quinn(Garage)
24. 2415 Euclid (Garage and Shed) 49. 5225 '/Z Roberts(Barn/Shed)
25. 830 Fulton(Garage and Shed) 50. 2652 Sabine Pass Avenue
26. 1157 Georgia Avenue 51. 870 Sherman
27. 1780 Gladys(Garage/Shed) 52. 2320 Sonny Perkins
28. 5915 Greenmoor Lane 53. 3657 St. James Blvd.
29. 910 Harriot and Rear Shed 54. 645 Sunnyside Drive
30. 2185 Hemlock(Shed) 55. 2780 Tannis and Shed
31. 2285 Hemlock and Shed 56. 3285 N. 10ffi St. (Garage)
32. 1066 Isla 57. 2195 Terrell Avenue and Garage
33. 415 Jackson 58, 2565 Texas and Auxiliary Structure
34. 1307 Laurel 59. 985-87 Std Street
35. 490 Lethia(Carport) 60. 695 Threadneedle(Garage)
36. 11640 Loop Road (Garage&Rear Shed) 61. 1835 Threadneedle
37. 2222 North 62. 1811 Tilson(Metal Shed)
38. 2545 North(Garage Apartment) 63. 1140 Van Buren and Garage
39. 2740 Palestine 64. 1410 Van Buren
40. 825 Porter 65. 1420 Van Buren
41. 995 Porter 66. 1665 Victoria(Garage)
42. 2045 Potts and Shed 67. 2830 Victoria(Garage)
43. 2440 Potts(Rear Auxiliary Building) 68. 805 W. Virginia
44. 2450 Potts 69. 2818 Waco (1)
45. 3540-42 Pradice 70. 4095 Willie Mae(Rear Garage)
(*) Indicates number of times structure has been enrolled in work program.
RECOMMENDATION
Administration recommends City Council condemn these seventy(70)structures and order the owner
to raze within ten (10) days. Additionally, if the property owner of a structure requests and is
authorized by City Council to enroll in a work program, all delinquent taxes shall be paid in full or a
payment plan shall be established prior to enrollment in the work program. Enrollment in the work
program shall occur within ten days after the effective date of this ordinance.
BACKGROUND
These structures have been inspected by the Building Codes Division and found to be dangerous
structures as defined by the City of Beaumont's Code of Ordinances, Article III, Dangerous
Structures, Section 14-50. Additionally, these structures have deteriorated to a condition that they
are no longer considered suitable for repair.
BUDGETARY IMPACT
City may incur the cost of demolition.
ORDINANCE NO.
ENTITLED AN ORDINANCE FINDING CERTAIN
STRUCTURES TO BE PUBLIC NUISANCES AND
ORDERING THEIR DEMOLITION AND REMOVAL;
PROVIDING FOR SEVERABILITY AND PROVIDING FOR A
PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That the City Council of the City of Beaumont hereby finds and declares the
buildings located at:
1. 620 Adams (Storage Shed) 21. 1640 Earl
2. 3995 Adilade 22. 1433 Emile (Garage)
3. 1110 Amarillo (Garage) 23. 1435 Emile
4. 1650 Avenue A(Garage & Storage Bldg) 24. 2415 Euclid (Garage and Shed)
5. 1647 Avenue H (Garage) 25. 830 Fulton (Garage and Shed)
6. 2035 Brooklyn 26. 1157 Georgia Avenue
7. 2595 Brooklyn 27. 1780 Gladys (Garage/Shed)
8. 2580-82 Calder(Commercial) 28. 5915 Greenmoor Lane
9. 4770 Carnegie (Garage) 29. 910 Harriot and Rear Shed
10. 11675 Carpenter Road 30. 2185 Hemlock (Shed)
11. 3149 Case 31. 2285 Hemlock and Shed
12. 940 Church and Garage 32. 1066 Isla
13. 5465 Cole Road and Shed 33. 415 Jackson
14. 5475 Cole Road and Shed 34. 1307 Laurel
15. 3545 Corley 35. 490 Lethia (Carport)
16. 3029 W. Crockett 36. 11640 Loop Road (Garage& Rear Shed)
17. 3179 W. Crockett 37. 2222 North
18. 3145 Dorothy Avenue (Storage Building) 38. 2545 North (Garage Apartment)
19. 1125 Doucette Avenue (Garage) 39. 2740 Palestine
20. 1350 Doucette Avenue (Garage) 40. 825 Porter
ICI
41. 995 Porter 56. 3285 N. 10th St. (Garage)
42. 2045 Potts and Shed 57. 2195 Terrell Avenue and Garage
43. 2440 Potts (Rear Auxiliary Building) 58. 2565 Texas and Auxiliary Structure
44. 2450 Potts 59. 985-873 rd Street
45. 3540-42 Pradice 60. 695 Threadneedle (Garage)
46. 3550 Pradice 61, 1835 Threadneedle
47. 1798 Prairie (Garage) 62. 1811 Tilson (Metal Shed)
48. 3435 Quinn (Garage) 63. 1140 Van Buren and Garage
49. 5225 '/ Roberts (Barn/Shed) 64. 1410 Van Buren
50. 2652 Sabine Pass Avenue 65. 1420 Van Buren
51. 870 Sherman 66. 1665 Victoria (Garage)
52. 2320 Sonny Perkins 67. 2830 Victoria (Garage)
53. 3657 St. James Blvd. 68. 805 W. Virginia
54. 645 Sunnyside Drive 69. 2818 Waco (1)
r55, 2780 Tannis and Shed 70. 4095 Willie Mae (Rear Garage)
(#) Indicates number of times structure has been enrolled in work program.
to be public nuisances in that said buildings violate Chapter 14, Section 14-50 of the Code
of Ordinances of the City of Beaumont and are for want of repairs, or by reason of age or
dilapidated, decayed, unsafe or unsanitary condition, or otherwise unfit for human
habitation, or otherwise likely to endanger the health, safety or general welfare of the
citizens of the City.
Section 2.
In accordance with Article XVII, Section 2, of the Charter of the City of Beaumont,
Section 14-52 of the Code of Ordinances of Beaumont, Texas, it is hereby ordered that
the ownerorowners ofthe above-described buildings demolish and remove said structures
within ten (10) days of the effective date of this ordinance.
i
If the property owner(s)fail(s)to comply within ten (10)days, Council orders that the
property be demolished without further notification to the property owners or City Council
action.
Section 3.
If a property owner requests and is authorized by City Council to enroll in a work
program, all properties are to be secured from unauthorized entry, and all delinquent taxes
shall be paid in full or a payment plan executed prior to the enrollment of the property in
the work program.
Section 4.
That if any section, subsection, sentence, clause or phrase of this ordinance, or the
application of same to a particular set of persons or circumstances should for any reason
be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end the various portions and provisions of this ordinance are
declared to be severable.
Section 5.
That any person who violated any provision of this ordinance shall, upon conviction,
be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 1-
INITIAL INSPECTION DATE May 20, 2008 WARD 4
ADDRESS OF INSPECTION 620 Adams (Storage Shed)
OWNER Elizabeth L Simons and Luther Gray
ADDRESS 5220 Roberts Rd CITY/STATE (05)-6811
APPRAISAL VALUE
Land Value 3820
Improvement Value 23110
Total Value 26930
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
MAJOR CODE VIOLATIONS: This storage building has been partially demolished by the property
owner. The structure is in danger of totally collapsing. Based on the extensive repairs needed in this
structure and the fact that these repairs will exceed over 50% of its appraised value, staff is recommending
a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 2.
INITIAL INSPECTION DATE May 7, 2008 WARD 4
ADDRESS OF INSPECTION 3995 Adilade
OWNER Erastus Petry ESTATE c/o Erica Petry
ADDRESS P O Bog 3224 CITY/STATE (04)-3224
APPRAISAL VALUE
Land Value 1470
Improvement Value 14960
Total Value 16430
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$1,176.57.
MAJOR CODE VIOLATIONS: The roof on this structure has extensive deterioration and new shingles
will be needed. There is a hole in the roof. The rafters and fascia boards are rotted. There is extensive
water damage to the interior. All damaged or rotten windows and window sills need replacing. The exterior
doors need replacing The front and back porches are deteriorated and the rear steps are missing. There is
termite damage. The foundation has extensive deterioration. The interior flooring, ceilings and walls are
damaged and will need repair. The ceiling_is falling in and the walls are busted out. All damaged electrical
wiring and electrical fixtures will need to be replaced. Also all damaged plumbing and plumbing fixtures will
need to be replaced The backyard is overgrown Based on the extensive repairs needed in this structure
and the fact that these repairs will exceed over 50%of its appraised value,staff is recommending a raze order
for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 3.
INITIAL INSPECTION DATE August 12, 2008 WARD 3
ADDRESS OF INSPECTION 1110 Amarillo (Garage)
OWNER Richard R & Anna E. Heartfield
ADDRESS 5755 N. Circuit Dr CITY/STATE (06)-4426
APPRAISAL VALUE
Land Value 1960
Improvement Value 100
Total Value 2060
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
MAJOR CODE VIOLATIONS: This garage has collapsed There is only one wall standing. Based on the
extensive repairs needed in this structure and the fact that these repairs will exceed over 50%of its appraised
value, staff is recommending a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
toCITY OF BEAUMONT 4-
INITIAL INSPECTION DATE January 23, 2009 WARD 3
ADDRESS OF INSPECTION 1650 Avenue A (Garage and Storage Buildings)
OWNER Woodrow W Racca c/o Sylvia McGee
ADDRESS 1650 avenue a CITY/STATE (01)-6901
APPRAISAL VALUE
Land Value 3750
Improvement Value 39150
Total Value 42900
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
MAJOR CODE VIOLATIONS: The roof on these structures are deteriorated and new shingles will be
needed. Rafters and fascia boards are rotted. Exterior doors need to be replaced. The entire area has
completely been overtaken by vegetation. Based on the extensive repairs needed in this structure and the
Awilact that these repairs will exceed over 50%of its appraised value staff is recommending a raze order for this
Wstructure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 5.
INITIAL INSPECTION DATE October 31, 2008 WARD 3
ADDRESS OF INSPECTION 1647 Avenue H (Garage)
OWNER Leigh Maldonado
ADDRESS 1637 Avenue H CITY/STATE (01)-6822
APPRAISAL VALUE
Land Value 2250
Improvement Value 5020
Total Value 7270
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$181.42.
MAJOR CODE VIOLATIONS: The roof on this garage is deteriorated and new shingles will be needed.
The rafters and fascia boards are rotted There is extensive water damage to the interior. The structure is
Am listing Vegetation is beginning to overtake the structure. Based on the extensive repairs needed in this
tructure and the fact that these repairs will exceed over 50% of its appraised value, staff is recommending
a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 6.
INITIAL INSPECTION DATE August 26, 2008 WARD 3
ADDRESS OF INSPECTION 2035 Brooklyn
OWNER Harold & Mary P. Kelley
ADDRESS 2035 Brooklyn CITY/STATE (0l)-6216
APPRAISAL VALUE
Land Value 470
Improvement Value 13300
Total Value 13800
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$443.30.
MAJOR CODE VIOLATIONS: This structure's roof has extensive deterioration and new shingles will be
needed. The rafters and fascia boards are rotted. There is extensive water damage to the interior. All
damaged or rotten windows and window sills need replacing. There is broken glass and damaged window
rames. The side porch is collapsing. The front door is damaged. There is termite damage. The foundation
has extensive deterioration and sagging. The interior flooring,ceilings and walls are damaged and will need
repair. All damaged electrical wiring and electrical fixtures will need to be replaced. Also all damaged
plumbing and plumbing fixtures will need to be replaced. The yard is very overgrown. The backyard is like
a jungle. Based on the extensive repairs needed in this structure and the fact that these repairs will exceed
over 50% of its appraised value, staff is recommending a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT �'
INITIAL INSPECTION DATE August 14,2008 WARD 3
ADDRESS OF INSPECTION 2595 Brooklyn
OWNER Guadalupe Contreras
ADDRESS 2595 Brooklyn CITY/STATE X011-7305
APPRAISAL VALUE
Land Value 3910
Improvement Value 0
Total Value 3910
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
R Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
MAJOR CODE VIOLATIONS: This structure's roof is deteriorated. There is water damage to the interior
noted from prior inspection Inspection was viewed through the window. The front door is damaged. There
is possible termite damage The foundation is deteriorated. The interior flooring, ceilings and walls are
damaged and will need repair. There is extensive mold and mildew noted from previous inspection. All
Wdamaged electrical wirier and electrical fixtures will need to be replaced. Also all damaged plumbing and
plumbing fixtures will need to be replaced Based on the extensive repairs needed in this structure and the
fact that these repairs will exceed over 50%of its appraised value,staff is recommending a raze order for this
structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 8.
INITIAL INSPECTION DATE November 24, 2008 WARD 1
ADDRESS OF INSPECTION 2580 Calder(Commercial)
OWNER Brock Neireiter
ADDRESS 1125 Skakespeare Dr CITY/STATE (06)-4103
APPRAISAL VALUE
Land Value 15810
Improvement Value 53310
Total Value 69120
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$6,202.99.
MAJOR CODE VIOLATIONS: The roof on this commercial structure has extensive deterioration and
new shingles will be needed The rafters and fascia boards are rotted. There is extensive water da alp ge to
the interior. All damaged or rotten windows and window sills need replacing. The plate glass window is
Wmissing. The exterior doors are damaged The foundation has a possible cracked slab. The interior flooring,
ceilings and walls are damaged and will need repair. There are holes in the walls and the ceiling is Min-
All damaged electrical wiring and electrical fixtures will need to be replaced. Also all damaged plumbing and
plumbing fixtures will need to be replaced The structure is trashed and there is homeless people staving
in the rear of the building Based on the extensive repairs needed in this structure and the fact that these
repairs will exceed over 50% of its appraised value, staff is recommending a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 9.
INITIAL INSPECTION DATE Aprd 3, 2008 WARD 3
ADDRESS OF INSPECTION 4770 Carnegie (Garage)
OWNER Louella Coward Shillow
ADDRESS 4770 Carnegie CITY/STATE (03)-1617
APPRAISAL VALUE
Land Value 1%0
Improvement Value 26830
Total Value 28790
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
B. Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$3,900.00.
MAJOR CODE VIOLATIONS: The roof on this garage is completely gone. Just the walls are standing.
There is extensive water damage to the interior. Based on the extensive repairs needed in this structure and
the fact that these repairs will exceed over 50%of its appraised value,staff is recommending a raze order for
Wthis structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 10-
INITIAL INSPECTION DATE June 4, 2008 WARD 1
ADDRESS OF INSPECTION 11675 Carpenter Road
OWNER Donald R. Arnold
ADDRESS 2223 Rea Road CITY/STATE Kountze, Tx. 77625-7243
APPRAISAL VALUE
Land Value 770
Improvement Value 480
Total Value 1250
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
R Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$661.81.
MAJOR CODE VIOLATIONS:_ The metal roof on this structure is very rusty. The rafters and fascia
boards are rotted There is extensive water damage to the interior. All damaged or rotten windows and
window sills need replacing The exterior of the structure has been stripped. There is extensive termite
0damage. The foundation has extensive deterioration. The interior flooring,ceilings and walls are damaged
and will need repair. All damaged electrical wiring and electrical fixtures will need to be replaced. Also all
damaged plumbing and plumbing fixtures will need to be replaced. The yard is very overgrown. Based on
the extensive repairs needed in this structure and the fact that these repairs will exceed over 50% of its
appraised value, staff is recommending_a raze order for this structure.
SEE ATTACHED PHOTOS
SUBSTANDARD BUILDING INSPECTION REPORT
BUILDING CODES DIVISION
CITY OF BEAUMONT 11.
INITIAL INSPECTION DATE October 27, 2008 WARD 3
ADDRESS OF INSPECTION 3149 Case
OWNER Mary O letree ESTATE
ADDRESS 3149 Case CITY/STATE (03)-3605
APPRAISAL VALUE
Land Value 1820
Improvement Value 18860
Total Value 20680
A. Fifty(50)percent deterioration of non-supporting members? YES X NO
R Thirty-three(33)percent deterioration of supporting members? YES X NO
C. Fire damaged? YES NO X
D. Enrolled in Work Repair Program? YES NO X
E. DELINQUENT TAXES ARE DUE IN THE AMOUNT OF$1,500.31.
MAJOR CODE VIOLATIONS: This structure's roof has extensive deterioration and new shingles will be
needed The rafters and fascia boards are rotted There is extensive water damage to the interior. All
damaged or rotten windows and window sills need replacing Some of the windows are missing. The
Wexterior doors need replacing The front and back porches are deteriorated. There is termite damage. The
foundation has extensive deterioration and sagging The interior flooring, ceilings and walls are damaged
and will need repair. The interior is trashed All damaged electrical wiring and electrical fixtures will need
to be replaced Also all damaged plumbing and plumbing fixtures will need to be replaced. Based on the
extensive repairs needed in this structure and the fact that these repairs will exceed over 50%of its appraised
value, staff is recommending a raze order for this structure.
SEE ATTACHED PHOTOS
Waverly E &W From a point 225 feet east of the centerline of Iola to a point 325
feet east of the centerline of Ethel.
SCHEDULE D
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit will be twenty (20) miles per hour in the following zones between
the hours of 7:45 a.m. to 9:15 a.m. and 3:00 p.m. to 4:30 p.m., Monday through Friday
on school days:
Street Direction of Description
Travel
Westgate E &W From a point 350 feet east of the centerline of Dowlen to the
Drive centerline of Peyton.
SCHEDULE E
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit shall be twenty (20) miles per hour in the following zones
between the hours of 7:00 a.m. and 8:30 a.m. and 2:45 p.m. and 3:45 p.m., Monday
through Friday on school days:
Street Direction of Description
Travel
Delaware E &W From a point 30 feet east of the centerline of Briarcliff to a
point 285 feet east of the centerline of West Lucas.
SCHEDULE F
In accordance with this section and when signs are erected giving notice thereof, the
prima facie speed limit will be twenty (35) miles per hour in the following zones between
the hours of 7:30 a.m. to 9:00 a.m. and 3:00 p.m. to 4:15 p.m., Monday through Friday
on school days.
Street Direction of Description
Travel
Major Drive N & S From a point 265 feet south of the centerline of Manion to a
point 170 feet south of the centerline of Westgate.
Section 2.
That if any section, subsection, sentence clause or phrase of this ordinance, or
the application of same to a particular set of persons or circumstances should, for any
reason, be held to be invalid, such invalidity shall not affect the remaining portions of
this ordinance, and, to such end, the various portions and provisions of this ordinance
are declared to be severable.
Section 3.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
Section 4.
That any person who violates any provision of this ordinance shall, upon
conviction, be punished, as provided in Section 1-8 of the Code of Ordinances of
Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
6
August 25, 2009
Consider adopting an ordinance approving the institution of a Cost of Service Adjustment rate
schedule by Centerpoint Energy Entex which provides for an annual rate cost of service and rate
base adjustment based upon the Company's annual cost data
RICH WITH OPPORTUNITY
[I 11CM (
T • E • X • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tyrone E. Cooper, City Attome)<0 /
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting an ordinance approving the institution of
a Cost of Service Adjustment rate schedule by Centerpoint
Energy Entex which provides for an annual rate cost of
service and rate base adjustment based upon the Company's
annual cost data.
RECOMMENDATION
Administration recommends approval of an ordinance approving the institution of a cost of
service adjustment rate schedule by Centerpoint Energy Entex which provides for an annual cost
of service and rate base adjustment based upon the annual cost data of the Company.
BACKGROUND
During the process of negotiating the Centerpoint gas franchise, Centerpoint and City
representatives negotiated the proposed cost of service adjustment for the municipal regulation of
the rates of Centerpoint within the City of Beaumont. The proposal before the City would allow
the annual rate setting process to occur at the City level and caps the annual change in rates at 5%
of the previous year's customer charge. Under the proposed rate making formula, the Company's
rates would be adjusted annually to account for any increase or decrease in the Utility's cost of
service. Calculation of the rate adjustment will be based upon calendar year operating expenses,
return on investment, and Texas franchise tax. The calendar year operating expenses shall be
those reported to the Railroad Commission of Texas in the annual report of the Company.
Centerpoint would be required to file with the City each year and adjust it rates up or down
depending on the last year's cost of service. The annual filing by Centerpoint would not become
effective unless approved by the City. The City can approve in part, in total or deny in total any
rate change request which retains to the City all regulatory oversight.
City of Beaumont, Texas, Ordinance No. 2009 -
AN ORDINANCE APPROVING THE INSTITUTION OF A COST OF SERVICE
ADJUSTMENT RATE SCHEDULE BY CENTERPOINT ENERGY ENTEX
("CENTERPOINT" OR "THE COMPANY"); APPROVING THE THREE-YEAR
AMORTIZATION OF CENTERPOINT'S 2009 INCREASE IN PENSIONS AND
BENEFITS EXPENSE, PROVIDING AN EFFECTIVE DATE; REPEALING ANY
ORDINANCES INCONSISTENT WITH THIS ORDINANCE; AND REQUIRING
DELIVERY OF THIS ORDINANCE TO THE COMPANY.
WHEREAS, the City of Beaumont, Texas ("City") is a gas utility customer of
CenterPoint Energy Entex ("CenterPoint" or the Company"), and a regulatory authority
with an interest in the rates and charges of CenterPoint; and
WHEREAS, within thirty (30) days after passage, CenterPoint intends to file with
the City a new tariff whereby gas utility charges within the City may be adjusted without
the need to file a Statement of Intent pursuant to Subchapter C of the Texas Utilities
Code (Vernon 2007);
WHEREAS, CenterPoint has also requested approval to amortize over a three-
year period the increase in pension and benefits expense experienced by CenterPoint
in 2009 as reflected in FERC Account 926 and the adjustments contemplated by the
new tariff ;
WHEREAS, the attached tariff provides for an expedited and less expensive rate
review process than the current Statement of Intent process; and
WHEREAS, the attached tariff implements a mechanism to adjust gas utility
charges in a manner that is just, reasonable, and in the public interest;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
Section 1. That the findings contained in the preamble of this Ordinance are
determined to be true and correct and are hereby adopted as part of this Ordinance.
Section 2. That the Cost of Service Adjustment Rate Schedule, which is
attached hereto and incorporated as Attachment A, is in the public interest and is
hereby endorsed in all respects.
Section 3. That the CenterPoint annual Cost of Service Adjustment will be
subject to City review, and the annual rate adjustments may be approved, approved in
part, or denied.
Section 4. That CenterPoint's request to amortize over a three-year period the
increase in its pension and benefits expense experienced in 2009, as reflected in FERC
Account No. 926, is approved.
Section 5. That this Ordinance shall become effective from and after its
passage.
Section 6. That to the extent any resolution or ordinance previously adopted
by the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 7. That 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.
Section 8. That a copy of this Ordinance shall be sent to the Company, care of
Denise Hardcastle at CenterPoint Energy, P.O. Box 2628, Houston, Texas 77252-2628.
Section 9. That, if any provision, section, subsection, sentence, clause, or
phrase of this Ordinance, or the application of same to any person or set of
circumstances, is for any reason held to be unconstitutional, void or invalid, the validity
of the remaining portions of this Ordinance or their application to other persons or sets
of circumstances shall not be affected thereby, it being the intent of the City Council in
adopting this Ordinance that no portion hereof or provision or regulation contained
herein shall become inoperative or fail by reason of any unconstitutionality, voidness or
invalidity of any other portion hereof, and all provisions of this Ordinance are declared to
be severable for that purpose.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the 25th day
of August, 2009.
- Mayor Becky Ames -
CENTERPOINT ENERGY RESOURCES CORP.
DB/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
A. APPLICABILITY
This Cost of Service Adjustment Clause applies to the Residential Service, General Service - Small, and General
Service - Large Volume rate schedules of CenterPoint Energy Texas Gas currently in force in the Company's
Beaumont-East Texas Division' service area. All rate calculations under this tariff shall be made on a Beaumont-
East Texas Division system wide basis. If, through the implementation of the provisions of this mechanism, it is
determined that rates should be decreased or increased, then rates will be adjusted accordingly in the manner set
forth herein. The rate adjustments implemented under this mechanism will reflect annual changes in the Company's
cost of service and rate base as computed herein. This Rate Schedule No. COSA-4 is authorized for an initial
implementation period of three (3) years commencing with the Company's filing under this rate schedule for the
calendar year 2009, effective August 1,2010, and ending with the implementation of the rate adjustment, if any, for
the calendar year 2011, effective August 1, 2012; and shall automatically renew for successive three year periods
unless either the Company or the regulatory authority having original jurisdiction gives written notice to the
contrary to the other by February 1, 2012, or February 1, of the third filing year of any succeeding three year
renewal period.
B. EFFECTIVE DATE
Rate adjustments shall be made in accordance with the procedures described below on an annual basis. The
Company shall make its annual filing no later than May 1, with the rate adjustments to be effective with the bills
rendered on or after August 1st of each year. The first filing pursuant to this Rider shall be no later than May 1,
2010 and shall be based on the financial results for the calendar year ending December 31, 2009.
C. COMPONENTS OF THE RATE ADJUSTMENT
Calculation of the rate adjustment will be based on calendar year operating expenses, return on investment, and
Texas Franchise Tax. The calendar year operating expenses shall be those reported to the Railroad Commission of
Texas in the annual report of the Company. The rate adjustment shall be included in the monthly customer charge
of the Residential Service, General Service - Small, and General Service - Large Volume rate schedules. Company
shall file with each regulatory authority having original jurisdiction over the Company's rates the schedules
specified below, by FERC Account, for the prior calendar year period. The schedules will be based upon the
Company's audited financial data, as adjusted, and provided in a format that will allow for the same analysis as that
undertaken of a Company Statement of Intent filing. Sample schedules are attached as Exhibit A to this tariff and
shall include the following information:
CA Operating Expenses - Operating expenses will be determined by the ending amounts for the
applicable calendar year.
The applicable expenses are:
Depreciation and Amortization Expense(Account Nos. 403-407)*
Taxes Other Than FIT(Account No. 408)**
Operation and Maintenance Expenses(Account Nos. 870-894)
Customer Related Expenses(Account Nos. 901-916)
Administrative &General Expenses(Account Nos. 920-932)
' For this calculation, the Beaumont-East Texas Division includes the cities and environs areas listed on the Company's
Rate Schedule PGA-4. The summary pages from the 2008 Annual Report which sum to the Beaumont-East Texas
Division, as defined herein, are designated Beaumont Division (34-001), East Texas Division (34-002), Northeast Texas
(34-006)and Tyler Area(34-007).
EXHIBIT "A"
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
Interest on Customer Deposits(Account No. 43 1)
* Based on the last approved depreciation methods and lives.
** Excluding City Franchise Fees, Gross Receipts, and any other revenue-based tax. Rate adjustments due
to changes in revenue-based taxes will be governed by the Company's Tax Adjustment and Municipal
Franchise Fee Rate Schedules.
This information will be presented with supporting calculations. The Company shall provide additional
information for all operating expenses upon request by the regulatory authority during the ninety (90) day
review period specified in Section D.
C.2 Return on Investment - The return on investment is the pre-tax rate of return (11.8%) multiplied
by the rate base balance for the applicable calendar year.
The rate base balance is composed of:
Net Utility Plant in Service*
Plus:
Other Rate Base Items:**
Materials and Supplies Inventories
Prepayments
Cash Working Capital
Less:
Customer Deposits(Account No.235)
Customer Advances(Account No. 252)
Deferred Federal Income Taxes
* Net Utility Plant in Service as shown by FERC account adjusted to exclude asset retirement obligation
amounts. Gross utility plant in service and accumulated depreciation by account will be shown separately
by month so that an annual average utility plant in service can be calculated.
** These items will reflect the 13 month average materials and supplies inventories and prepayments. The
Company shall perform a lead/lag study for the initial filing under this tariff and at least once every three
(3)years thereafter.
Supporting information for all rate base items shall be provided to the regulatory authority during the
ninety(90)day review period specified in Section D upon request to the Company.
C.3 Texas Franchise Tax - The Texas Franchise Tax will be the calendar year-end amount as
recorded in FERC Account No. 409.
CA Cost of Service Adjustment The amount to be collected through the Cost of Service
Adjustment will be the sum of the amounts from Sections C.1, C.2, and C.3, less the calendar year actual
non-gas revenue and other revenue (i.e., transportation revenue and service charges), adjusted for the
revised Texas Franchise Tax described in Chapter 171 of the Texas Tax Code and the resulting revenue
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
change of the previous year's COSA per bill adjustment if it had been effective for all customers in each
class on a division-wide basis as of August 1 of the previous calendar year. If the effective date of the
COSA is different from August 1, then the calculation of the revenue change shall be calculated as of the
effective date of the COSA.
The formula to calculate the Cost of Service Adjustment is:
(C.1 Operating Expenses + C.2 Return on Investment + C.3 Texas Franchise Tax - Actual non-Gas (as
adjusted)and Other Revenues)_(1 -Texas Franchise Tax statutory rate)*
* Currently,the Texas Franchise Tax statutory rate is I%.
C.5 Cost of Service Adjustment Rate
The Cost of Service Adjustment as calculated in Section CA will be allocated among the customer classes
in the same manner as the cost of service was allocated among classes of customers in the Company's latest
effective rates for the Beaumont-East Texas Division. The cost of service adjustment for each customer
class will then be converted into a per-customer per-month amount to produce the Cost of Service
Adjustment Rate. The per customer adjustment will be the Cost of Service Adjustment as allocated to that
class, divided by the average number of gas sales customers in each class for the Beaumont-East Texas
Division as reported in the Company's annual report to the Railroad Commission of Texas. The Cost of
Service Adjustment Rate will be this per customer adjustment amount divided by 12 to produce a monthly
adjustment amount, either an increase or decrease, which will be included in the Residential Service,
General Service - Small, and General Service- Large Volume customer charges. Any change in the Cost of
Service Adjustment shall not exceed an amount equal to five percent (5%) of the Customer Charge
effective for service in the Beaumont-East Texas Division at the end of the calendar year immediately
preceding the year in which the Cost of Service Adjustment is made.
In order to meet Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission
reporting requirements, the Company shall record its best estimate of the total amount to be collected
through the Cost of Service Adjustment so as to reflect in its books and records a fair representation of
actual earnings for that year. Such estimate shall not be included in the computation of the Cost of Service
Adjustment.
C.6 Attestation
A sworn statement shall be filed by the Company's Chief Accounting Officer of CenterPoint Energy Texas
Gas Operations, affirming that the filed schedules are in compliance with the provisions of this tariff and
are true and correct to the best of his/her knowledge, information, and belief. No testimony shall be filed.
C.7 Proof of Revenues
The Company shall also provide a schedule demonstrating the "proof of revenues" relied upon to calculate
the proposed cost of service adjustment rate. The proposed rates shall conform as closely as practicable to
the revenue allocation principles in effect prior to the adjustment.
C.8 Notice
Notice of the annual Cost of Service Adjustment shall be published in the Beaumont Enterprise in a form
similar to that required under Section 104.103, TEX. UTIL. CODE ANN. no later than forty-five (45) days
CENTERPOINT ENERGY RESOURCES CORP.
D/B/A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
BEAUMONT-EAST TEXAS DIVISION
RATESHEET
COST OF SERVICE ADJUSTMENT
RATE SCHEDULE NO. COSA-4
after the Company makes its annual filing pursuant to this rate schedule with the regulatory authority. The
notice to customers shall include the following information:
a) a description of the proposed revision of rates and schedules;
b) the effect the proposed revision of rates is expected to have on the rates applicable to each
customer class and on an average bill for each affected customer class;
C) the service area or areas in which the proposed rate adjustment would apply;
d) the date the proposed rate adjustment was filed with the regulatory authority; and
e) the Company's address, telephone number, and website where information concerning the
proposed cost of service adjustment may be obtained.
D. REGULATORY REVIEW OF ANNUAL RATE ADJUSTMENT
The regulatory authority with original jurisdiction will have a period of not less than ninety (90) days within which
to review the proposed annual rate adjustment. During the review period, Company shall provide additional
information and supporting documents as requested by the regulatory authority and such information shall be
provided within ten(10)working days of the original request.
The rate adjustment shall take effect with the bills rendered on or after August 1 st of each year. This Cost of Service
Adjustment Rate Schedule does not limit the legal rights and duties of the regulatory authority.Nothing herein shall
abrogate the jurisdiction of the regulatory authority to initiate a proceeding at any time to review whether rates
charged are just and reasonable. The provisions of this Cost of Service Adjustment are to be implemented in
harmony with the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101-105). The Company's annual
rate adjustment will be made in accordance with all applicable laws. If at the end of the ninety (90) day review
period, the Company and the regulatory authority with original jurisdiction have not reached agreement on the
proposed Cost of Service Adjustment Rate, the regulatory authority may take action to deny such adjustment, and
the Company shall have the right to appeal the regulatory authority's action. Upon the filing of any appeal the
Company shall have the right to implement the proposed Cost of Service Adjustment Rate, subject to refund.
To defray the cost, if any, of regulatory authorities conducting a review of Company's annual rate adjustment,
Company shall reimburse the regulatory authorities for their reasonable expenses for such review in an aggregate
amount not to exceed $100,000. Any reimbursement contemplated hereunder shall be deemed a reasonable and
necessary operating expense of the Company in the year in which the reimbursement is made. If more than one
regulatory authority should request reimbursement in any year, each regulatory authority shall receive the lesser of
its reasonable and necessary expenses for conducting its review or an amount equal to $100,000 multiplied by the
fraction of which the numerator is the total number of customers subject to the original jurisdiction of the regulatory
authority seeking reimbursement and the denominator of which is the total number of customers subject to the
jurisdiction of all regulatory authorities seeking reimbursement for review of an annual rate adjustment. A
regulatory authority seeking reimbursement under this provision, shall submit its request for reimbursement to
Company no later than September I" of the year in which the adjustment is made and Company shall reimburse
regulatory authorities in accordance with this provision on or before September 15`h, of the year the adjustment is
made. Amounts reimbursed by Company shall be recovered by Company from customers located in the
jurisdiction[s] seeking reimbursement through a monthly, per bill surcharge not to exceed 30 cents beginning
October 1 S`of the year in which expenses were reimbursed and ending when Company has fully recovered amounts
reimbursed to each regulatory authority. Amounts collected through the surcharge shall be excluded from the
revenue and expenses of the COSA and are not subject to the limitations set forth in C.S.
7
August 25, 2009
Consider adopting an ordinance granting a public utility franchise to Centerpoint Energy Texas
Gas Operations to operate a gas utility within the City of Beaumont
RICH WITH OPPORTUNITY
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 AttorneA�/
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting an ordinance granting a public utility
franchise to Centerpoint Energy Texas Gas Operations to
operate a gas utility within the City of Beaumont.
RECOMMENDATION
Administration recommends approval of an ordinance granting a public utility franchise to
Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont.
BACKGROUND
The Charter of the City of Beaumont gives to the City Council authority to grant and renew
franchises of all public utilities operating within the City of Beaumont. Ordinance No. 88-64
granted to Entex a 20-year franchise to operate a gas utility in the City of Beaumont. That
franchise expired in June of 2008. Since that time City representatives have been negotiating
with Centerpoint Energy Texas Gas Operations, successor in interest to Entex, for the renewal of
a franchise to continue its operations in Beaumont. The proposed franchise provides for a term
of operations for 25 years, providing for a payment by the Company to the City based upon four
percent (4%) of the gross receipts from the sale of gas within the city limits and seven cents
($.07) per MCF for the transportation of gas to transportation customers within the corporate
limits of the city for consumption within the city. The fees will be calculated for the calendar
quarters ending March 31, June 30, September 30 and December 31 and shall be payable on or
before the 15th day of May, August,November and February following the quarter for which
payment is due.
Ordinances granting franchises requires three (3) readings at separate regular meetings of the
City Council and shall not be considered finally passed until the third reading which shall not be
less than thirty (30) days from the first reading. The ordinance will not take effect until sixty (60)
days after its adoption on the third and final reading.
BUDGETARYIMPACT
For the year 2008, the City of Beaumont received $795,900 in franchise fees from Centerpoint
Energy. Year to date, the City has received $691,468 in franchise fees.
ORDINANCE NO.
AN ORDINANCE GRANTING CENTERPOINT ENERGY
RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS
GAS OPERATIONS, ITS SUCCESSORS AND ASSIGNS, THE
RIGHTS, PRIVILEGE AND FRANCHISE FOR A PERIOD OF
TWENTY-FIVE (25) YEARS TO CONSTRUCT, LAY,
MAINTAIN, OPERATE, EXTEND, REMOVE, REPLACE AND
REPAIR A SYSTEM OF PIPELINES, GAS MAINS,
LATERALS AND ATTACHMENTS AND ALL DESIRABLE
INSTRUMENTALITIES IN, UNDER, OVER, ACROSS AND
ALONG ANY AND ALL STREETS, AVENUES, PARKWAYS,
SQUARES, ALLEYS AND ALL OTHER PUBLIC PLACES IN
THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS,
FOR THE PURPOSE OF TRANSPORTING, DISTRIBUTING,
SUPPLYING AND SELLING GAS (NATURAL AND/OR
ARTIFICIAL AND/OR MIXED) FOR HEATING, LIGHTING,
POWER, AND FOR ALL OTHER PURPOSES FOR WHICH
GAS MAY BE USED, TO THE MUNICIPALITY OF SAID CITY
OF BEAUMONT, TEXAS, AND ITS INHABITANTS AND
OTHERS;PROVIDING CONDITIONS CONTROLLING THE USE
OF PUBLIC THOROUGHFARES AND EXTENSIONS THEREIN;
ESTABLISHING STANDARDS OF SERVICE; PROVIDING
FOR PAYMENT OF FOUR PERCENT (4%) OF THE GROSS
RECEIPTS FROM THE SALE OF GAS WITHIN THE CITY OF
BEAUMONT AND SEVEN CENTS (7¢) PER MCF FOR THE
TRANSPORTATION OF GAS TO TRANSPORTATION
CUSTOMERS;PROVIDING FOR ACCEPTANCE;PROVIDING A
SEVERABILITY CLAUSE; MAKING MISCELLANEOUS
PROVISIONS; AND REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
The City of Beaumont, Jefferson County, Texas, (hereinafter referred to as "Grantor" does
hereby grant unto CenterPoint Energy Resources Corp., DBA CenterPoint Energy Texas Gas
Operations, its successors and assigns (hereinafter referred to as"Grantee")the right,privilege and
franchise to construct, install, lay, maintain, operate, use, extend, remove, replace and repair in,
under, over, across and along any and all of the present and future streets, avenues, parkways,
squares, alleys, thoroughfares, roads, highways, sidewalks, viaducts, bridges, streams, public
grounds, public properties (including City building sites) and other public places in the City of
Beaumont, and in all tracts, territories and areas hereafter annexed to or acquired by and placed
within the corporate boundaries of said municipality,a system of pipes,pipelines,gas mains,laterals,
conduits, feeders, regulators, meters, fixtures, connections, attachments and other desirable
instrumentalities and appurtenances necessary or proper for the purpose of transporting,distributing,
supplying and selling gas(natural and/or artificial and/or mixed)for heating,lighting,power and for
any other purpose for which gas may now or hereafter be used in and to said municipality and its
inhabitants or any other person or persons within or without the corporate boundaries of said
municipality.
Section 2.
All Facilities installed by Grantee shall be of sound material and good quality, and shall be
laid so that they will not interfere with the artificial drainage of the Grantor or its underground
fixtures,or with navigation in or the natural drainage of any stream.All Facilities shall be installed in
accordance with applicable Federal, State and City regulations and in the absence of such regulations
in accordance with accepted industry practice. Within the Public Rights-of-Way, the location and
route of the Facilities by the Grantee shall be subject to the reasonable and proper regulation,
direction and control of the Grantor or the City official to whom such duties have been delegated.
Such regulation shall include, but not be limited to, the right to require in writing to the extent
provided in Section 13 the relocation of Grantee's Facilities at Grantee's cost within the Public
Rights-of-Way of the Grantor whenever such relocation shall be reasonably necessary to
accommodate the widening, change of grade, or relocation by Grantor of Streets or Public
Rights-of-Way, or construction or relocation by Grantor of City utility lines or drainage facilities.
The Grantee and the Grantor shall work together to develop a procedure under which Grantee shall
make available to the Grantor maps showing the location of Grantee's Facilities within the corporate
limits of the City.
Section 3.
Except as provided herein, Grantee expressly agrees that it shall not undertake major
replacements or extensions of pipe, mains or other facilities within the boundaries of city parks
currently owned or later established by Grantor without the prior written consent of the City of
Beaumont. Grantee,however, shall not be required to remove or relocate its existing facilities in city
parks established as of the date of this ordinance nor shall Grantee be required to remove or relocate
facilities from land declared to be a city park subsequent to the date of this ordinance. Provided
further, that Grantee shall not be required to obtain such prior written consent to perform routine
maintenance or repairs of its facilities within city parks or when failure to repair, replace or extend
such facilities would, in the good faith opinion of Grantee,pose a danger to public health or safety.
Section 4.
This Franchise shall extend to and include any and all territory that is annexed by the Grantor
during the term of this Franchise. Within sixty(60)days from the receipt of notice from the Grantor
of any such annexation, the Grantee shall assure that any and all customers within such annexed
territory are included and shown on its accounting system as being within the corporate limits of the
City of Beaumont.After such sixty(60)day period the payment provisions specified in Section 8 of
this Franchise shall apply to gross receipts received by the Grantee from customers located within
such annexed territory. Grantee shall true-up its map of City boundaries to the Grantor's map on an
annual basis.
Section 5.
Grantee and its contractors shall give Grantor reasonable advance notice, of the dates,
location and nature of all work to be performed on its Facilities within the Public Rights-of-Way..
While Grantee and Grantee's Contractors must secure all permits that may be required, Grantee or
Grantee's Contractor shall not be required to pay any fee in addition to the franchise fee in order to
perform work on Grantee's facilities within the public right-of-way, or park within the streets and
other public rights-of-way. Grantee's property shall be so constructed and maintained as not to
interfere unreasonably with traffic over the public thoroughfares of said municipality and the same
shall be laid in accordance with the lines,grades,and conditions established by Grantor. Following
completion of work in the Public Rights-of-Way, Grantee shall repair the affected Public
Rights-of-Way as soon as possible, but in all cases Grantee shall comply with all City ordinances
governing time periods and standards relating to excavating in the Public Rights-of-Way.No street,
alley, highway or public place shall be encumbered for a longer period than shall be necessary to
execute the work.
Section 6.
Grantee shall not be required to run or extend any pipe a distance exceeding one hundred
(100) feet, not to exceed a diameter of two (2) inches, in order to bring gas service to the property
line of each additional customer.
Section 7.
The service furnished hereunder by Grantee to the Grantor and its inhabitants shall be in
accordance with the quality of service rules of the Railroad Commission of Texas and all other
applicable local, state and federal regulations. Grantee shall furnish the grade of service to its
customers as provided by its rate schedules and shall maintain its system in reasonable operating
condition during the continuance of this Franchise.An exception to this requirement is automatically
in effect, but only for so long as is necessary,when caused by a shortage in materials, supplies and
equipment beyond the control of the Grantee as a result of fires, strikes, riots, storms, floods and
other casualties,governmental regulations,limitations and restrictions as to the use and availability
of materials,supplies and equipment and as to the use of the services,and unforeseeable and unusual
demands for service.In any of such events the Grantee shall do all things reasonably within its power
to restore normal service as quickly as practicable.
Section 8.
In consideration of the rights and privileges herein granted, after the effective date of this
ordinance, Grantee agrees to pay to Grantor quarterly during the continuance of this ordinance a
franchise fee equal to four percent (4%) of the Grantee's gross receipts for the preceding calendar
quarter received by the Grantee from the sale of gas within the corporate limits of the City of
Beaumont plus seven cents (7¢) per Mcf for natural gas transported by Grantee for its Transport
Customers during such quarter. "Transport Customer" means any person or entity for whom
Company transports gas through the distribution system of Company within the corporate limits of
City for consumption within the corporate limits of City. The franchise fees hereunder shall be
calculated for the calendar quarters ending March 31,June 30, September 30,and December 31 and
shall be payable on or before the fifteenth day of May,August,November, and February following
the quarter for which payment is made, beginning with the first such date following the Effective
Date of this Franchise and each August 15th, November 15th, February 15th, and May 15th
thereafter; provided, however, the first such payment shall be prorated as necessary to reflect only
those gross receipts received and transportation volumes delivered by Company after the Effective
Date of this Franchise. In no event shall the Company be required to remit to the City franchise fee
amounts that for any reason whatsoever are not fully recoverable from its customers. Upon receipt
of the above amount of money,the City Finance Officer shall deliver to the Company a receipt for
such amount. If any payment due date required therein falls on a weekend or bank holiday,payment
shall be made on or before the close of business of the first working day after the payment due date.
All payments to Grantor shall be accompanied by a certified statement of Grantee in a form
prescribed by Grantor. Upon receipt of such payments,the City Finance Officer shall deliver to the
Grantee a receipt for such amount.
Should Grantee fail to tender payment to Grantor within ten (10) days following the date
such payment is due,Grantee shall pay to Grantor,as a late payment penalty,an additional amount
equal to three percent (3%) of the amount otherwise payable to Grantor on such due date. The
consideration hereinabove set forth shall be paid and received in lieu of any license, charge, fee,
street or alley rental,or other character of charge for the use and occupancy for the streets,alleys and
public places within the city, and in lieu of any pipe tax or inspection fee or tax,but shall not in any
way increase or diminish Grantee's obligation to pay Grantor ad valorem taxes or in any way
interfere with the collection thereof.
Any special taxes,rentals or other charges accruing after the effective date of this ordinance,
under the terms of any preexisting ordinance, or imposed upon Grantee by subsequent action of
Grantor shall,when paid to Grantor,be applied as a credit to the amount owed to Grantor under the
terms of this franchise agreement.
Section 9.
Grantee shall keep complete and accurate books of accounts and records of its business and
operations under and in connection with this Franchise.All such books of accounts and records shall
be kept at Grantee's principal office in Houston, Texas.
Grantor may conduct an audit or other inquiry or may pursue a cause of action in relation to
the payment of the franchise fee only if such audit,inquiry,or pursuit of a cause of action concerns a
payment made less than three(3)years before the commencement of such audit, inquiry, or pursuit
of a cause of action. Each party shall bear its own costs of any such audit or inquiry.Upon receipt of
a written request from Grantor, all books and records related to Grantee's operations under this
Franchise shall be made available for inspection and copying no later than thirty (30) days from
receipt of such request.
Section 10.
If the Legislature of the State of Texas amends the ceiling on utility gross receipts payments
to municipalities established by Tex.Tax Code§182.025,then Grantor may prospectively change the
percentage of Grantee's gross receipts payable to Grantor under Section 5 of this franchise to the
level established by such amendment; provided, however, that such change in the percentage of
Grantee's gross receipts payable to Grantor shall not become effective unless and until Grantor shall
have approved and authorized rate schedules acceptable to Grantee which will permit Grantee to
fully recover through its rates effective within the corporate limits of Grantor any increase in
amounts payable to Grantor resulting from such change.
Section 11.
GRANTEE, ITS SUCCESSORS AND ASSIGNS SHALL PROTECT AND HOLD
GRANTOR AND ITS OFFICERS,AGENTS AND EMPLOYEES HARMLESS AGAINST
ANY AND ALL CLAIMS OR DEMANDS FOR DAMAGES TO ANY PERSON OR
PROPERTY BY REASON OF THE CONSTRUCTION AND MAINTENANCE OF
GRANTEE'S NATURAL GAS DISTRIBUTION SYSTEM, OR IN ANY WAY GROWING
OUT OF THE RIGHTS GRANTED BY THIS FRANCHISE ORDINANCE, EITHER
DIRECTLY OR INDIRECTLY, OR BY REASON OF ANY ACT, NEGLIGENCE OR
NONFEASANCE OF GRANTEE OR THE CONTRACTORS,AGENTS OR EMPLOYEES
OF GRANTEE,ITS SUCCESSORS AND ASSIGNS,AND SHALL REFUND TO GRANTOR
ALL SUMS WHICH GRANTOR MAY BE ADJUDGED TO PAY ON ANY SUCH CLAIM,
OR WHICH MAY ARISE OR GROW OUT OF THE EXERCISE OF THE RIGHTS AND
PRIVILEGES HEREBY GRANTED, OR BY THE ABUSE THEREOF, AND GRANTEE,
ITS SUCCESSORS AND ASSIGNS SHALL INDEMNIFY AND HOLD GRANTOR, ITS
OFFICERS, AGENTS AND EMPLOYEES HARMLESS FROM AND ON ACCOUNT OF
ALL DAMAGES,COSTS,EXPENSES,ACTIONS AND CAUSES OF ACTION THAT MAY
ACCRUE TO OR BE BROUGHT BY A PERSON,PERSONS,COMPANY OR COMPANIES
AT ANY TIME THEREAFTER BY REASON OF THE EXERCISE OF THE RIGHTS AND
PRIVILEGES HEREBY GRANTED, OR OF THE ABUSE THEREOF.
Section 12.
Grantee shall not prosecute or maintain any claims against Grantor or its employees for any
damage or injury to Grantee's pipelines or facilities resulting from Grantor's performance of work or
repairs upon city streets; provided, however, that the provisions hereof shall in no way limit
Grantee's right to prosecute or maintain any such claim against any person, association, or
corporation other than Grantor or its employees.
Section 13.
The Grantee shall, upon written request of the Grantor, relocate its Facilities within Public
Rights-of-Way at Grantee's own expense, exclusive of Facilities installed for service directly to
Grantor,whenever such shall be reasonably necessary on account of the widening,change of grade,
or relocation by Grantor of Streets or Public Rights-of-Way,or construction or relocation by Grantor
of City utility lines or drainage facilities. Grantor shall bear the costs of all relocations of Facilities
installed for service directly to Grantor and of any relocation of other Facilities requested by Grantor
for reasons other than the widening, change of grade, or relocation by Grantor of Streets or Public
Rights-of-Way,or construction or relocation by the Grantor of City utility lines or drainage facilities.
Section 14.
Grantor,by granting of this ordinance,does not surrender or to any extent lose,waive,impair
or lessen the lawful powers, claims and rights now or hereafter vested in Grantor under the
Constitution and statutes of the State of Texas and under the Charter of the City of Beaumont to
regulate public utilities within Grantor's city limits, to regulate the rates of public utilities within
Grantor's city limits and to regulate the use of the streets by Grantee;and Grantee,by its acceptance
of this ordinance,agrees that all lawful powers and rights,whether regulatory or otherwise,as are or
as may be from time to time vested in or reserved to Grantor, shall be in full force and effect and
subject to the exercise thereof by Grantor at any time and from time to time. All of the regulations
and activities required by this franchise are hereby declared to be governmental and for the health,
safety and welfare of the general public.
Section 15.
In the event Grantee, by act or omission, violates any term, condition or provision of this
ordinance, Grantor shall notify Grantee in writing of such violation. Grantee shall correct any such
violation within thirty(30) days of receipt of such notice.
Should Grantee fail or refuse to correct any such violation within such thirty(30)day period,
Grantor may terminate this agreement by ordinance adopted by the City Council of the City of
Beaumont;provided,however,before any such ordinance is adopted. Grantee must be given at least
sixty (60) days advance written notice, which notice shall set forth the causes and reasons for the
proposed termination and cancellation, and shall advise the Grantee that it will be provided an
opportunity to be heard by the City Council of the City of Beaumont regarding such proposed action
before any such action is taken and shall set forth the time, date and place of the hearing.
Other than its failure, refusal or inability to pay its debts and obligations, including,
specifically, the payments to Grantor required by this ordinance, Grantee shall not be declared in
default or be subject to any sanction under any provision of this ordinance in those cases in which
performance of such provision is prevented by reasons beyond its control; provided, however,that
such performance shall not be excused when based solely upon financial limitations of Grantee.
Section 16.
Subject to the terms,conditions and restrictions stated herein,within five(5)years of,but not
less than twelve (12)months before,the expiration of the term of this franchise, Grantor shall have
the option to purchase Grantee's distribution system within the corporate limits of Grantor. Grantor
must present Grantee with written notice of Grantor's intent to exercise its option to purchase the
franchised property. Within thirty(30)days of receipt of notice, Grantee shall make a written offer
(the "Offer") stating the cash price for the purchase and sale of said distribution system. Within
twenty (20) days of Grantor's receipt of the Offer, Grantor will submit written notice rejecting or
accepting the Offer. Should Grantor reject the Offer,Grantor and Grantee shall enter into good faith
negotiations to determine a cash price to be paid by Grantor for said distribution system.Failure of
Grantor and Grantee to agree on a cash price for Grantee's distribution system shall not constitute
grounds for termination or cancellation under Section 13 of this ordinance.
Should Grantor accept the Offer or should Grantee and Grantor reach an agreement on a cash
purchase price after good faith negotiations, Grantee shall not be required to sell or transfer said
distribution system to Grantor until the expiration of the term of this franchise or such earlier time as
may be mutually agreeable to Grantee and Grantor.The foregoing notwithstanding,Grantor shall not
purchase Grantee's distribution system until the matter of the acquisition of such property has
been submitted at a municipal election to be determined by a majority vote of the qualified taxpayers
voting therein.
Nothing in this franchise shall be construed as limiting or otherwise affecting Grantor's
authority to acquire franchised property under Grantor's powers of eminent domain.
Section 17.
Nothing herein contained shall ever be held or considered as conferring upon Grantee and its
successors and assigns any exclusive rights or privileges of any nature whatsoever.
Section 18.
This ordinance shall not be assigned by Grantee without the authorization and approval of
Grantor.
Section 19.
All ordinances and parts of ordinances in conflict herewith are hereby repealed.
Section 20.
Grantor and Grantee hereby acknowledge that all of the provisions hereof are the result of
negotiations between Grantor and Grantee. The provisions of this ordinance shall be constructed
fairly and reasonably and not more strictly against the party drafting such provisions than against the
non-drafting party.
Section 21.
This ordinance shall take effect and continue and remain in effect for a period of twenty-five
(25) years from and after the date which is sixty (60) days after the adoption and passage of this
franchise ordinance on third and final reading; provided Grantee files a written acceptance of this
franchise ordinance with Grantor within thirty (30) days after final passage of this franchise
ordinance.
Section 22.
If any provision, section, subsection, sentence,clause or phrase of this ordinance is for any
reason held to be unconstitutional,void or invalid(or for any reason unenforceable),the validity of
the remaining portions of this ordinance shall not be affected thereby,it being the intent of Grantor in
adopting this ordinance that no portion hereof or provision or regulation contained herein shall
become inoperative or fail by reason of any
unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all
provisions of this ordinance are declared to be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the 25th
day of August, 2009.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the
day of 12009.
PASSED BY THE CITY COUNCIL of the City of Beaumont on third reading this the
day of , 2009.
- Mayor Becky Ames -
ATTEST:
CITY SECRETARY
TO THE CITY OF BEAUMONT, TEXAS:
CenterPoint Energy Resources Corp.,DBA CenterPoint Energy Texas Gas Operations itself,
its successors and assigns,hereby accepts the above and foregoing ordinance and agrees to be bound
by all of its terms and provisions.
Dated this the day of , 2009.
CENTERPOINT ENERGY RESOURCES
CORP., DBA CENTERPOINT ENERGY
TEXAS GAS OPERATIONS
Richard A. Zapalac, Vice-President - Texas
Southern Gas Operations
NOTE TO THE CITY SECRETARY:
Please do not complete the certificate below until an officer of CENTERPOINT ENERGY
RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS, has
executed the Acceptance above.
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
1,the duly appointed,qualified and acting City Secretary of Beaumont,Texas,hereby certify
that the above and foregoing Acceptance was received and filed in the office of the City Secretary of
Beaumont, Texas, on the day of , 2009.
City Secretary of Beaumont, Texas
[SEAL]
8
August 25, 2009
Consider adopting the 2009 Drought Contingency Plan and renewing the City's commitment to
Chapter 28, Article III, Section 28-59 of the Code of Ordinances
RICH WITH OPPORTUNrry
r
T • E • x • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Dr. Hani J. Tohme, Water Utilities Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider adopting the 2009 Drought Contingency Plan and
renewing the City's commitment to Chapter 28, Article III,
Section 28-59 of the Code of Ordinances.
RECOMMENDATION
Administration recommends adopting the 2009 Water Conservation and Drought Contingency
Plan and renewing the City's commitment to Chapter 28, Article III, Section 28-59 of the Code
of Ordinances.
BACKGROUND
The Texas Commission on Environmental Quality requires a wholesale public water supplier that
holds a water right in the amount of 1,000 acre-feet or more for municipal use, and provides
water service to 3,300 or more connections to have an Ordinance for a Drought Contingency Plan
that should be renewed every 5 years. The plan must meet all of the minimum requirements as set
forth in the TCEQ rules, Title 30 Texas Administrative Code Chapter 288. The Plan establishes
water conservation goals and means to achieve them; establishes criteria for the initiation and
termination of drought response stages; establishes restrictions on certain water uses; establishes
penalties for the violation of and provisions for enforcement of these restrictions, and establishes
procedures for granting variances.
The adoption of the 2009 Water Conservation and Drought Contingency Plan and renewal of the
City's commitment to Chapter 28, Article III, Section 28-59 of the Code of Ordinances is
recommended by the City Manager and the Water Utilities Director.
BUDGETARY IMPACT
None.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the 2009 Water Conservation and Drought Contingency Plan is hereby adopted.
The Plan is substantially in the form attached hereto as Exhibit "A."
BE IT FURTHER RESOLVED THAT the City of Beaumont hereby renews its
commitment to Chapter 28, Article III, Section 28-59, "Drought Contingency."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
CITY OF BEAUMONT
JEFFERSON COUNTY, TEXAS
WATER CONSERVATION PLAN
AND
DROUGHT CONTINGENCY PLAN
SUBMITTED TO:
WATER CONSERVATION
AND
DROUGHT MANAGEMENT TEAM
WATER RIGHT PERMITTING
AVAILABILITY SECTION
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
October 1990
August 1992
October 2001
April 2005
April 2009
1
EXHIBIT "A"
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
MUNICIPAL WATER CONSERVATION PLANNING DAT: UTILITY SURVEY
Name of Applicant: City of Beaumont—Water Utilities PWSID No. 1230001
Address: 1350 Langham Road
Beaumont,TX 77707
Telephone Number: (409) 785-3000
Fax Number: (409)861-4836
Form Completed by: Dr. Hani J. Tohme,P.E.
Title: Water Utilities Director
Signature: Date:
2
I. CUSTOMER DATA
A. Population and Service Area Data
1. Please provide a description of the service area. If the applicant has
Received a Certificate of Convenience and Necessity (CCN) from the TCEQ, please
include a copy of the CCN and a service-area map.
The distribution system consists of 780 miles of water lines and six elevated storage
tanks with approximately 42,221 connections, encompassing a service area of 85.74
square miles. The service area is flat in nature and contains residential,commercial
and industrial customers. Water lines range in size from 2" to 42" in diameter.
Most of the city is operated as one pressure plane. However,a booster station in the
southern portion of the city serves the prison system. The north and west parts of
the city receive ground water, the remainder of the city receives surface water.
Refer to Appendix A for the CCN information.
2. Service area size (square miles): 85.74
3. Current population of service area: 121,579
4. Current population served by Utility:
a. Water 121,579 b. Wastewater 121,579
5. Population served by water utility 6. Projected population
for each of the previous five years: For service area:
Year Population Year Population
2004 129,130 2009 121,579
2005 123,799 2010 122,000
2006 122,230 2011 122,500
2007 123,400 2012 123,000
2008 121,800 2013 123,500
List source(s) and/or method(s)for the calculation of current and projected population:
Chamber of Commerce
Population for prison system 12,000
2009 population for Beaumont- 121,579
2013 projected population 123,500
Projected population increase in next five years based on ongoing developments and
housing projects.
3
B. Active Connections
1. Current number of active connections by user type:
Treated water users: Metered Not metered Total
Residential 35,841 None 35,841
Commercial 4,555 None 4,555
Industrial 16 None 16
Public 174 None 174
Other None None
Is multi-family service with a single meter counted as Residential or Commercial?
Commercial
2. Net number of new connections per year for previous five years:
Type 2004 2005 2006 2007 2008
Residential 181 14 488 (-750) (- 175)
Commercial 36 85 (- 13) (- 165) 284
Industrial 2 None 4 (- 7) 9
Public (-3) 3 1 (- 7) 10
Other None None None None None
Note: The numbers submitted in the 2004 plan were actual new connections for the
year.
The numbers in this report represent the difference in the total connections
for consecutive years.
4
C. High Volume Retail Customers
1. Two year average annual use (in 1,000 gallons) for the 5 highest volume retail and
wholesale customers whose water use is included in Section HA2 on Page 5.
Customer Use(1000eal.lyr.) Treated or raw
water
(1) Federal Correctional Complex 299,194 Treated
(2) TDCJ/Utilities & Energy 264,688 Treated
(3) Lucite International 45,428 Treated
(4) Peak Sulfur Inc. 34,590 Treated
(5) Betz Chemical Co. 22,862 Treated
2. Two year average annual use(in 1,000 gallons)for wholesale and other customers whose
water use is not included in Section HA2 on Page 5:
Customer Use Treated or Raw water
(1) N/A
11. WATER USE DATA FOR SERVICE AREA
A. Water Accounting Data
1 a. Amount of water diverted(pumped)for previous five years(in, 1000 gal.)Total
amount diverted for both ground and surface(raw water) sources.
2004 2005 2006 2007 2008
January 701,962 690,903 713,514 663,022 706,487
February 673,382 614,825 608,433 633,463 633,013
March 728,567 691,736 680,552 691,387 674,456
April 710,201 727,440 718,292 643,585 672,023
May 736,788 806,475 768,657 685,774 701,487
June 720,606 829,037 744,661 681,743 730,891
July 815,843 797,793 731,624 688,225 751,804
August 872,421 802,430 779,332 754,186 744,736
September 867,077 814,851 723,937 654,375 784,641
October 784,932 857,651 694,329 779,155 790,196
November 724,003 715,629 652,025 694,111 723,681
December 729,761 706,189 670,216 678,421 706,971
Total 9,065,543 9,054,959 8,485,582 8,247,447 8,620,386
5
lb. Please indicate how the above figures were determined (e.g. from a master meter
located at the point of diversion from a stream or located at a point where raw water
enters the treatment plant, or from water sales).
Master meters on raw water entering the treatment plant and meters on well flow
at the ground water pump station.
2. Amount of water (in 1,000 gallons) delivered (sold) as recorded by the following
account types(See#1, Appendix A) for the past five years. Total Consumption includes
Residential, Commercial, Industrial, Public, and other.
Year Total Consumption + Used for water treatment Total
2004 6,206,675 131,332 6,338,007
2005 6,389,841 175,590 6,565,431
2006 5,995,283 184,907 6,180,190
2007 5,410,261 137,766 5,548,027
2008 5,714,711 155,408 5,870,119
Note: Volume used for treatment decreased due to changing the type of polymer
suggested by research and experimentation.
3. Unaccounted-for water 4. Annual,peak-to-average daily use ratio
Year Amount(gall o Year Average MGD Peak MGD Ratio
04 2,727,536 30.09 04 24,410 34,138 1.399
05 2,489,528 27.49 05 24.808 34,530 1.392
06 2,305,392 27.16 06 23.248 30.896 1.329
07 2,699,420 32.73 07 22.596 28.602 1.266
08 2,750,267 31.90 08 23.553 33.961 1.442
5. Municipal per capita water use for previous five years(in gallons per capita per day):
(Industrial Sales are not available)
Total Industrial Municipal
Year Population Diverted/Year Sales Per Capita Use
04 129,130 9,065,543,000 N/A 192
05 123,799 9,054,959,000 N/A 200
06 122,230 89485,582,000 N/A 190
07 123,400 8,247,447,000 N/A 183
08 121,800 8,620,386,000 N/A 194
Note: In 2005 and 2008 Hurricanes Rita and Ike caused extensive damage to the
City of Beaumont that required continuous flushing for over 2 months. The
6
salt intrusion during Hurricane Ike required the pumping of salt water into
the distribution system that had to be flushed out. This emergency situation
caused the increase in the Municipal per Capita Use value that has seen a
decline since 2004.
6. Seasonal water use for the previous five years(in gallons/person/day):
Base per Summer per Seasonal
Year Population capita use capita use use
04 129,130 192 228 36
05 123,799 200 218 18
06 122,230 190 205 15
07 123,400 183 191 8
08 1219,800 194 203 9
B. Projected Water Demands
Provide estimates for total water demands for the planning horizon of the utility. Indicate
sources of data and how projected water demands were determined. Attach additional sheet
if necessary.
The following table is part of a report that was prepared for the City of Beaumont by
Freese& Nichols in 2004.
The City of Beaumont maintains an excellent set of production records from which an
analysis of historic water usage can be made. The total requirements are computed by
adding the total of both surface and well water to City.
This historical average day per capita demand has increased steadily from the 1950's
through 2004 with slight fluctuation in demands reflecting wet and dry years. Average
water consumption and per capita usage for the years 1998 was very high due to an
extended drought period. The table that follows displays the figures for population,
per capita water demand (GPCD),total water requirement for an average day(MGD),
and maximum daily requirements (MGD) excluding raw water usage. When this
report was prepared in 2004, it projected no decrease in the per capita demand
(GPCD)due to previous historic trends. However,the actual per capita values are less
than the 2004 projections by 5 and 12 percent for 2005 and 2007 respectively. The
decreasing per capita demand values is a result of increased usage of water
conservation measures. A couple of examples would be a leak detection program
conducted in 2007 and 2008, and continuous public education. The Texas Water
Development Board (TWDB) estimates these savings in per capita per day to be as
follows:
7
City of Beaumont
Projected Water Requirements
Year Projected Beaumont Per Capita Total Requirements Maximum
Population Demand for Avg Day (MGD) Daily
(GP D) Requirements
1950 94014 89.0 8.36 14.21
1960 119175 111.0 13.22 22.47
1970 117548 138.0 16.22 27.57
1980 118102 175.0 20.65 35.11
1990 114323 159.0 18.21 27.70
1997 119838 186.0 22.31 37.93
1998 120595 211.0 25.39 43.16
2000 122109 210.0 25.64 43.59
2005 125772 209.5 26.35 44.80
2010 129545 209.0 27.07 46.02
2015 133431 208.5 27.82 47.29
2020 137434 208.0 28.59 48.60
Population figures for 1950-1990 were taken from U.S. Census data. Population figures
for 1997 and 1998 were derived using a 3.2% grown rate predicted by SETRPC for this
period. Population figures from 2000-2020 were taken from the SETRPC estimated
growth gate. Average day requirements for 1950 to 1998 were provided by the City of
Beaumont. Per capita usage from 1998 through 2020 were based on below normal
rainfall (drought) conditions and a decrease of 0.5 GPCD per 5 year increment based
on increased usage of water conservation plumbing fixtures, and water conservation
programs implemented by the city.
8
III. WATER SUPPLY SYSTEM
A. Water Supply Sources
1. List all current water supply and the amounts available with each:
Source Amount Available
Surface Water: Neches River 50 MGD
Groundwater: Chicot Aquifer 16 MGD
Contracts: None None
Other: None None
B. Treatment and Distribution System
1. Design daily capacity of system: 56 MGD
2. Please describe the water system. Include the number of treatment plants, wells, and
storage tanks. If possible, include a sketch of the system layout.
The City of Beaumont is served by one surface water treatment plant and one
ground water pump station. The Neches River is the raw water source for the
surface water treatment plant (40 MGD). The surface water treatment plant is a
conventional-type water treatment plant with normal disinfection, up flow
pulsate clarifier, and dual media filtration. The raw water flows from the Neches
River to the surface water treatment plant via a canal system, pump station, and
pipe. The canal system has three intakes from the Neches River: Weiss Bluff
intake, Bunn's Bluff intake, and Lawson's intake. Only one intake is in use at a
time. Bunn's Bluff, Gravity flow intake is the normal operating intake. Lawson's
intake is used only in emergencies. The raw water is pumped from the end of
Bunn's Canal to the rapid mix where alum is added as the primary coagulant. I€
necessary caustic, is added to increase alkalinity. The water proceeds through
the up flow clarifiers to the filters. Chlorine can be added at this point, before
filtration, for disinfection zone 1; however, D1 is normally not utilized.
Phosphate is added before and after filtration for sequestration of manganese.
Chlorine, caustic and fluoride are added after filtration, just before the water
reaches the clear well, a 5 million gallon ground storage tank. D2 is from the
clear well influent to clear well effluent. After the clear well ammonia is added to
form chloramines and caustic is added to increase the pH. The water is then
9
pumped to the distribution system. The ground water system (16 MGD) consists
of three wells,two 5 million gallon ground storage tanks and four booster pumps,
all located in Hardin County north of Beaumont. The wells pump from the
Chicot Aquifer (a minor aquifer within the Gulf Coast aquifer). Free chlorine is
added before and after the ground storage tanks. The water is pumped from the
ground storage tanks to the distribution system.
The distribution system consists of 780 miles of water lines and six elevated
storage tanks with approximately 42,221 connections, encompassing a service
area of 85.74 sq. miles. Water lines range in size from 2" to 42' in diameter.
Most of the city is operated as one pressure plane. However, a booster station in
the southern portion of the city serves the prison system. The north and west
parts of the city receive ground water, the remainder of the city receives surface
water. Refer to Appendix B.
IV. WASTEWATER SYSTEM
A. Wastewater System Data
1. Design Capacity of wastewater treatment plant: 46 M D
2. Briefly describe the wastewater system(s) of the area serviced by the water utility.
Describe how treated wastewater is disposed of Where applicable, identify treatment
plant(s) with the TCEQ name and number, the operator, owner, and if wastewater is
discharged, the receiving stream. Please provide a sketch or map which located the
plant(s)discharge points or disposal sites.
The City of Beaumont's Wastewater Treatment Plant is a high rate continuous
recirculation, two stage bio-trickling filter plant followed by three polishing
ponds. Following chlorination and dechlorination the wastewater treatment
plant's effluent is pumped to a constructed wetland for tertiary treatment prior to
being discharged into a natural wetland and then to the receiving stream. Plant
site is locate at 4900 Lafin Road, approximately 3000 feet south of US Highway 69
and Highway 124 in Jefferson County. Since 2003 the wastewater treatment
plant received a major upgrade to its treatment units, electrical and SCADA
system.
The City of Beaumont's Wastewater Treatment Plant is owned and operated by
the City and is identified by TCEQ Permit Number 100501-020 Hillebrandt
Bayou Wastewater Treatment Plant.
Treatment effluent discharged is into Hillebrandt Bayou in segment number 0704
of the Neches-Trinity Coastal River Basin.
10
The City of Beaumont's wastewater treatment plant disposes of its aerobically
digested sludge at the City of Beaumont's Type 1 Landfill (TCEQ Number 1486)
owned and operated by the City of Beaumont. Refer to Appendix C.
B. Wastewater Data for Service Area
1. Percent of water service area serviced by wastewater system: 100%
2. Monthly volume treated for previous five years(in 1,000 gallons):
2004 2005 2006 2007 2008
January 467,110 917,330 516,240 1,019,760 1,524,100
February 459,520 495,090 430,280 759,390 800,500
March 483,030 911,050 429,140 803,850 753,790
April 611,760 484,220 357,070 956,970 563,520
May 695,940 489,130 500,440 742,090 565,220
June 508,460 904,280 594,050 1,081,630 602,040
July 525,410 653,560 1,385,510 1,475,760 678,400
August 481,120 710,490 548,450 647,920 1,242,960
September 546,580 870,776 597,280 840,050 620,920
October 490,510 835,140 1,078,770 528,150 669,390
November 819,250 824,226 366,090 689,800 738,760
December 571,920 934,770 572,940 783,190 1,068,110
Total 6,661,610 9,030,062 7,346,260 10,328,560 7,989,670
V. UTILITY OPERATING DATA
A.Water and Wastewater Rates and Rate Structure (Indicated if there are different rate
structures for industrial users).
ORDINANCE NO. 04-042
ENTITLED AN ORDINANCE AMENDIND CHAPTER 28, SECTION28-50 and
28-51, OF THE CODE OF ORDINANCE TO INCREASE WATER AND
WASTEWATER RATES EFFECTIVE JULY 1 IN THE YEARS 2004, 2005, AND
2006; PROVIDING FOR SEVERRABILITY; PROVIDING FOR REPEAL; AND
PROVIDIND A PENALITY.
11
BE IT ORDAINED BY THE CITY OF BEAUMONT:
ARTICLE M.WATER AND SEWER
REGULATIONS GENERALLY*
Section I
*Note: Additional provision for regulations and rates may be contained in
ordinances and papers not contained in this Code.
Sec. 28.50. Water service rates.
(a) Effective October 1, 2008, as shown below, the following rates per month shall be the rates
charged for water service furnished to customers within and outside of the corporate limits of the
City except as provided in paragraph(b) of this section.
Water/Sewer Rate Increase
October 1,2008
Minimum Monthly Rates
WATER
Meter Size/Inches Inside City Rate Outside City Rate
5/8 $9.02 $13.54
1 9.98 14.97
11/2 10.95 16.41
2 13.66 20.50
3 27.77 41.66
4 33.66 50.49
6 60.67 90.99
8 83.45 125.16
10 114.84 172.27
12 143.17 214.76
Usage rate first 1,000 gallons Minimum Minimum
Over 1,000 gallons $per $3.05 $4.58
1,000 gallons
12
(b) The rate for senior citizens who comply with subsection (c) below will be at a discounted rate
equivalent to the rate per one thousand(1,000)gallons of water.
(c)Eligible senior citizens shall mean customers residing in a single-family residence inside the city
who are over the age of sixty-five (65) years. To obtain the monthly minimum charge deduction,
persons eligible must file a sworn application on a form provided therefor, with water customer
services. Upon approval of the application the senior citizen's monthly minimum charge shall be
applicable for the life of the applicant.
(Ord. No. 88-72, § 1, 8-9-88; Ord. No. 89-79, § 1, 10-24-89; Ord. No. 90-68, § 1, 11-13-90; Ord.
No. 92-81, § 1, 12-8-92; Ord. No. 00-45, § 1, 5-30-00; Ord. No. 00-56, § 1, 6-27-00; Ord. No. 04-
042, § 1, 6-22-04; Ord. No. 07-093, § 1, 9-25-07; Ord. No. 08-075, § 1, 9-9-08)
Editor's note: Ord. No. 88-72, § 1, adopted Aug. 9, 1988, repealed §§ 28-50--28-55, pertaining to
water and sewer regulations and enacted new provisions designated as §§ 28-50--28-55 to read as
herein set out. Former §§ 28-50--28-55 derived from Code 1958, §§ 32-8, 32-9, 40-8, 40-9, 40-16;
Ord. No. 76-107, §§ 1-4, adopted Sept. 27, 1976; Ord. No. 76-108, § 1, adopted Sept. 26, 1976;
Ord.No. 76-125, § 1, adopted Oct. 19, 1976; Ord. No. 76-126, §§ 1,2, adopted Oct. 19, 1976; Ord.
No. 81-26, § 1, adopted April 21, 1981; Ord. No. 82-5, § 1, adopted Jan. 12, 1982; Ord. No. 83-123,
§ 1 (App. A, § II), adopted Sept. 27, 1983; Ord. No. 84-127, § 1, adopted Sept. 25, 1984; Ord. No.
85-96, §§ 1, 2, adopted Sept. 24, 1985; Ord. No. 86-99, §§ 1, 2, adopted Sept. 23, 1986; Ord. No. 87-
15, § 1, adopted March 17, 1987 and Ord.No. 87-51, § 1, adopted July 7, 1987.
Sec. 28-51.Wastewater service rates.
(a) Effective October 1, 2008, in each year as shown below, the following rates per month shall be
the rates charged for wastewater services furnished to customers within and outside of the corporate
limits of the city where the wastewater produced by such customers is a normal strength wastewater
(150 mg/1 lb)except as provided in paragraph(b) of this section.
13
WATER/SEWER RATE INCREASES
October 1, 2008
MIN' IMUM MONTHLY RATES
SEWER
Meter Size/Inches Inside City Rate Outside City Rate
5/8 $5.76 $8.63
1 5.86 8.78
11/2 5.95 8.92
2 6.47 9.69
3 7.32 10.97
4 10.72 16.09
6 17.57 26.33
8 21.47 32.22
10 29.29 43.92
12 37.09 55.62
Usage rate first 1,000 gallons Minimum Minimum
Over 1,000 gallons$per $2.76 $4.15
1,000 gallons
(b) The rate for senior citizens who comply with subsection (c) below will be at a discounted rate
equivalent to the rate per one thousand(1,000)gallons of water.
(c)Eligible senior citizens shall mean customers residing in a single-family residence inside the city
who are over the age of sixty-five (65) years. To obtain the monthly minimum charge deduction,
persons eligible must file a sworn application on a form provided therefor, with water customer
Services. Upon approval of the application the senior citizen's monthly minimum charge shall be
applicable for the life of the applicant.
(d) (1)Residential sewer charges shall be based on the average of the actual monthly water usage of
the preceding months of November, December, January and February which preceded the months
billed.
(2) The monthly individual residential sewer volume charge shall not exceed the average of the
actual metered water volume usage for the previous months of November through February. Where
no preceding November through February monthly average volume is available from records, the
water customer services shall establish an average monthly volume based on the average monthly
usage of all residential users in each particular cycle route for the winter months set out above.
14
(e) Commercial and industrial sewer usage charges shall be based on one hundred (100) percent of
the metered water usage. In circumstances where a commercial or industrial customer desires a
credit for metered water being consumed but not being returned to the sanitary sewer, it shall be the
responsibility of the user to furnish to the director of water utilities an engineering report, certified
by a professional engineer, that justifies and supports the discharge reduction as being a continuous
normal part of the process. Based on the data provided, the director of water utilities may estimate
said return or require submetering of the process water. Meter used for submetering shall be
furnished at the customer's expense and shall be approved by the director of water utilities.
(Ord. No. 88-72, § 1, 8-9-88; Ord. No. 89-79, § 2, 10-24-89; Ord. No. 90-68, § 2, 11-13-90; Ord.
No. 92-81, § 1, 12-8-92; Ord. No. 00-45, § 2, 5-20-00; Ord. No. 00-56, § 2, 6-27-00; Ord. No. 04-
042, § 2, 6-22-04; Ord. No. 07-093, § 2, 9-25-07; Ord. No. 08-040, § 24, 5-13-08; Ord. No. 08-075,
§ 2, 9-9-08)
Note: See the editor's note at §28-50.
VI. CONSERVATION GOALS
Please use the data provided in this survey to establish conservation goals(additional data may
be used).
A. Water conservation goals for municipal utilities are generally established to maintain or
reduce consumption, as measured in:
1. gallon per capita per day used;
2. unaccounted-for water uses;
3. peak-day to average-day ratio; and/or
4. an increase in reuse or recycling of water.
B. TCEQ conservation staff assess the reasonableness of water conservation goals based on
whether the applicant addresses the following steps:
1. identification of a water or wastewater problem;
2. performance of a system audit (completion of this form).
3. selection of goals based on the technical potential to save water as identified in the
audit; and
4. performance of a coast-benefit analysis of conservation strategies.
If at least the first three steps have been completed and are summarized in the water
conservation plan, then TCEQ staff can conclude that there is substantiated basis for the
goals, and that the water conservation plan is integrated into water management.
Therefore, the established conservation goals are deemed reasonable.
15
C. Complete the following in gallons per capita per day(gpcd)to quantify the water
conservation goals for the utility's service area.
1. Estimation of the technical potential for reducing per capita water use:
Conservation Scenario
Most Likely Advanced
a. Reduction in unaccounted-for users: 7.0 34.5 gpcd
b. Reduction in indoor water uses due to
water-conserving plumbing fixtures: 6.0 21.7
c. Reduction in season use: 4.0 7.65
d. Reduction in water use due to public
education programs: 4.0 9.55
TOTAL TECHNICAL POTENTIAL FOR
REDUCING PER CAPITA WATER USE: 21.00 73.40
2. Planning goal
The planning goal equals the dry year per capita water use minus the total technical
potentials calculated in number one above.
Goal to be achieved by 2013 (in gpcd): 172 gpcd
Goal to be achieved by 2018 (in gpcd): 162 gpcd
Note: Projections are based on using actual 2007 values since the 2008 values
were effected by Hurricane Ike.
3. Needed reduction in per capita use to meet planning goal
Current per capita use: 183
Planning goal for 2013(from#2 above): 172
Planning goal for 2018(from#2 above): 162
Difference between current use and 2018 goal: 21 gpcd
(Represents needed reduction in per capita use to meet goal.)
4. Methods to reduce per capita use:
a. Water line replacement program:
In 2000 the City of Beaumont adopted an aggressive water line replacement
program. The program continue to replace approximately 20,000 linear feet of
water lines per year. The replacement of corroded, unlined cast iron water lines
16
improves water quality, reduces water loss, and reduces production costs. Refer to
Appendix D.
b. Installation of conservative plumbing fixtures:
The City of Beaumont Code Enforcement section adopted the use of plumbing
fixtures that promotes water conservation. The City of Beaumont will continue to
enforce such measures.
c. Water Leak Detection and Elimination Program:
The water meter and alley lines relocation program, reduced the water leaks and
relocated the lines to the street making any future leak easier to detect.
The City of Beaumont contracted with ADS the leak detection program that
identified leaks and trained City staff on how to operate the equipment. The City is
in the process of buying leak detection equipment to conduct daily in-house leak
detection. Refer to Appendix E
d. Annual water meter testing.
In 2000 the City of Beaumont started conducting an annual test of all its meters 3
inches and larger. This program will continue to be a part of the standard
operations.
e. Water System Master Plan:
The City of Beaumont Contracted out to Schaumburg and Polk, Inc. the design of a
Master Plan that will be completed by the end of 2009. The Master Plan will field
survey and locate all existing lines, create a water model, and identify areas of low
pressures and potential water leaks.
f. Leak Detection Program:
The City of Beaumont executed a contract with ADS Environmental Services to
identify leaks in the distribution system. This program started in February 2007 and
was completed in April 2008. The leaks found have been repaired by City forces.
The City is in the process of buying leak detection equipment to establish an
ongoing leak detection program. Refer to Appendix F for Resolution and results of
study.
g. Self Audit Program:
The City of Beaumont will conduct a self audit for all its facilities every two years.
17
h. Water Bill Inserts
In the next five years the City of Beaumont will continue to include inserts in the
water bills to educate the public on water conservation. In addition the City will
insert in the water bill a self audit to the customers to help them conserve water and
save money. Refer to Appendix G
i. Public Education:
The City of Beaumont adopted a five year educational program(2009 through
2013)that will continue to educate the public by presenting brochures at
community centers, town hall meetings, schools and entertainment festivals. In
addition, the City is sponsoring water conservation school programs and projects
Refer to Appendix H
18
ATTACHMENTS
Appendix A Certificate of Convenience and Necessity(CCN), Site Maps
Appendix B Water Treatment Plant Flow Schematic
Appendix C Wastewater Treatment plant Flow Schematic
Appendix D Water Line Replacement Program
Appendix E Water Meter and Alley Lines Relocation Program
Appendix F Leak Detection Program
Appendix G Customer Self Audit
Appendix H Public Education Handout/School Programs
Appendix I Resolution R-92-184
Appendix J Ordinance No. 01-058
Apendix K Ordinance No. 01-078
Appendix L Drought Contingency Plan
19
9
August 25, 2009
Consider authorizing the City Manager to enter into contracts for the purchase of homes and the
provision of relocation assistance for their owners of houses flooded during Hurricane Ike in
conjunction with the approved Hazard Mitigation Grant Program's Acquisition and Demolition
Program
RICH WITH OPPORTUNITY
[IEA,111�1011
T • E , X . A , S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
(-)k3
PREPARED BY: Chris Boone, Community Development Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Consider authorizing the City Manager to enter into contracts for
the purchase of homes and the provision of relocation assistance
for their owners of houses flooded during Hurricane Ike in
conjunction with the approved Hazard Mitigation Grant
Program's Acquisition and Demolition Program.
RECOMMENDATION
The Administration recommends approval.
BACKGROUND:
As a result of Hurricane Ike, some homes located within the floodplain, east of Pine Street,
received flood damage. Because the City's floodplain land use ordinance requires that homes
in the floodplain that are substantially damaged be elevated prior to repair, many residents
have found elevating their homes and repairing them difficult if not impossible.
In order to provide relief to the residents and avoid future, repetitive flooding of these homes,
the City applied for Hazard Mitigation funds to acquire and demolish these homes. The City
was successfully awarded this grant for acquisition and removal of sixteen (16) homes. To
date, we have inspected and secured appraisals for each of the sixteen (16) homes and made
purchase and relocation offers. Those addresses listed below and attached contracts represent
offers accepted by the owners, up to this point. Please note that the purchase offer amounts
are based on pre-storm appraisal values, less any proceeds from insurance and/or other disaster
relief assistance. The amount of relocation assistance is based on the grant formula and
differs, depending upon the resident's desire to secure rental housing or purchase a new home.
Address Owners Name Purchase Relocation
Amount Amount
410 Manning Dorothy Green $26,845.71
3105 Taliaferro Willis-Joubert $22,527.56
3150 Taliaferro Timmie Bell $22,738.60
385 E Delaware Marshall Terry $10,000.00
445 Manning Horace&Lilly Dean $22,500.00
Total: $82,111.87 $22,500.00
FEMA Grant Amount(at 75%) $61,583.90 $16,875.00
Local CDBG Match Amount(at 25%) $20,527.97 $5,625.00
This grant provides seventy-five percent (75%) of the costs, with a required twenty-five
percent (25%) local match, which will be paid through a reallocation of 2008 Program Year
CDBG demolition funds. It is expected that additional purchase contracts will be forthcoming
as offers are accepted by the homeowners. Once these properties are acquired, the City will
demolish these homes and deed restrict the properties, to prevent future flooding losses. These
costs will also be covered by the grant.
BUDGETARY IMPACT
Funds this local match are available through the 2008 Program Year CDBG Budget.
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this "day of 2009,by and between the City of
Beaumont,Texas, hereinafter referred to as the Ci , and Dorothy Green, Befty Gray,Georgia Gray-Guillory,Jackie
Gray,William Paul Gray,and Betty Joseph,hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address, 410
Manning and described as North End N 122 Ft Lot 8 Block 7 Abstract 046750. The Seller represents that this property was
damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that there is NO
OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$26,845.71 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$42,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$5,072.67 and$13,522.62
for any Disaster Housing Assistance program(DI-IA)(structural repairs)and/or$0.00 for Other Needs Assistance
(ONA) for which SELLER cannot document as expended on repair of the damaged structure, and a
reimbursement of$3,441.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price, if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
S. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses, to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnities,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers, agents, employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this ay of �. 2009.
Seller Si Afurs ' Witne: attesting for Seller(signature)
,Y
s s A A A.--p
Seller MAW Name Witness,attesting for Seller(P ed Name)
j
Sc ler Sig uture Witness ttesting for Seller(signature)
Seller Print'td Name
.�/ \ Witness, attesting fo•Sellri . Nam e)
'Seller Signatures Witnes ,'attesting for Seller(signature)
Seller Printed N me Wit e...attesting for S ller(Printed Name)
SeIIOY Si-nature Witness,attestin-for Seller(signat e)
�- e
Seller Printed Name Witness,'utesting for( I�Piinted LL ame)
• f
Seller Signa e W�tne; ;atte;t' of Seller_(signtu ) ,
Seller Prin cd Name Witness,attesting for Seller(Printed Name)
AU
tiller Stgna re Witness, attesting for Seller(signature
Seller Printed Name Witness,attesting for Seller( rinte i ame)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this 10th day of June 2009,by and between the City of Beaumont,Texas,
hereinafter referred to as the City,and Elnora Willis-Joubert hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address, 3105
Talinferro and described as Part of Mt Olive Lot 16, Lot 17, Block 3 Abstract 045250. The Seller represents that this
property was damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that
there is NO OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$22,527.56 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$35,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$0.00 and$12,472.44 for
any Disaster Housing Assistance program(DHA) (structural repairs) and/or$0.00 for Other Needs Assistance
(ONA) for which SELLER cannot document as expended on repair of the damaged structure, and a
reimbursement of$0.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price,if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures, materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers,agents,employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this 1091h day of June,2009.
�r"� �' �.Jam• s,✓- A,.y 't y, t� �,_ v ,....r ��1a ,.i '.`..-e y ��� q y,._..,
Seller Signature Witness,attesting for Seller(signature)
Elnora Willis-Joubert w, �� �
Seller Printed Name Witness,attesting for S 11 (Pri ted Name)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this _(+_day of 2009,by and between the City of
Beaumont,Texas,hereinafter referred to as the City,and Timmie Bell he rafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont, Texas in which the SELLER owns a parcel of land known by the physical address,3150
Taliaferro and described as Mt Olive Lot 13 Block 4 Abstract 045250. The Seller represents that this property was
damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that there is NO
OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$22,738.60 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title;provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the a to be paid for the property is the pre-flood value of$40,000.00 with
deductions for any flood insurance payment received by SELLER for structural damage of$20,300.00, wind
insurance payment received by SELLER for structural damage of$4,611.40, $0.00 for any Disaster Housing
Assistance program (DHA) (structural repairs) and/or $0.00 for Other Needs Assistance (ONA) for which
,SLLER cannot document as expended on repair of the damaged structure,and a reimbursement of$7,650.00 for
certain repairs and/or unreimbursed temporary living expenses for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price,if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases,indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers,agents, employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this day of titer ,2009.
3tller Signature 4Wyiess, ttesting for Seller(signature)
Timmie Bell ,
Seller Printed Name i att sting for Sell r(Printed Name)
City of Beaumont Approval:
FLOOD DAMAGED PROPERTY CONTRACT FOR SALE
THIS AGREEMENT is made and entered into this day of a i° 2009,by and between the City of
Beaumont,Texas,hereinafter referred to as the City,and Marshell G Terry hereinafter referred to as the SELLER.
THAT, the CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's Division of
Emergency Management(GDEM)and/or Texas Department of Housing and Community Affairs(TH&CA)to purchase
certain property in Beaumont,Texas in which the SELLER owns a parcel of land known by the physical address,385 E.
Delaware and described as Part of Mt Olive Lot 16, Lot 17, Block 3 Abstract 045250. The Seller represents that this
property was damaged by flood,that the Seller qualifies for the assistance being granted and that the Seller understands that
there is NO OBLIGATION TO SELL THE PROPERTY UNDER THIS PROGRAM, BUT THE SELLER DOES SO
VOLUNTARILY.
The parties agree as follows:
1. The City agrees to pay the SELLER for said property the sum of$10,000.00 payable at settlement after the
acceptance of this Agreement and preliminary approval of the Seller's title; provided the Seller can execute and
deliver a good and sufficient general warranty deed conveying marketable title to said property in fee simple,clear
of all liens and encumbrances.
2. SELLER acknowledges that the price to be paid for the property is the pre-flood value of$10,000.00 with
deductions for any insurance payment received by SELLER for structural damage of$0.00 and$0.00 for any
Disaster Housing Assistance program(DHA)(structural repairs)and/or$0.00 for Other Needs Assistance(ONA)
for which SELLER cannot document as expended on repair of the damaged structure, and a reimbursement of
$0.00 for certain repairs for which receipts were provided have been added.
3. The proceeds from the sale shall first be applied to all liens on the property, including real estate taxes,
weedy lot liens,and paving assessments. All lien amounts shall be due and payable to the date of settlement.
The Hazard Mitigation Grant Program Funds being used for the purchase of the property cannot and will not
duplicate benefits received for the same from any other funds. SELLER will return any disaster aid money
received if it duplicates benefits as determined by the City or any federal or state official administering these
grant funds.
4. SELLER will execute all necessary documents to transfer marketable fee simple title to the property to the
City and also agrees to execute now and in the future, any and all documents required by the City and/or
DEM to complete this transaction and to comply with the City,state or Federal Regulations.
5. SELLER will NOT remove any property considered a portion of the real estate without prior written
notice to the City and providing appraisals of such properties. The value of the property so removed, as
finally determined,will be deducted from the purchase price, if the purchase price has not as yet been paid in
full or be repaid by the SELLER within 10 days after removal if the purchase price has been paid to the
SELLER. The value of the property removed will be solely determined by the City and must be negotiated
prior to removal. SELLER understands that no fixtures,materials or improvements to the real estate may be
removed from the premises. The City will NOT permit any materials to be salvaged at this time or at the
time of demolition. Any violation of this agreement may result in a reduction of the value of and amount
received for the structure.
6. The SELLER understands that no fixtures,materials or improvements to the real estate may be removed
from the premises, and, because of legal liability reasons, the CITY will not permit any materials to be
salvaged at this time or at the time of demolition. Any violation of this agreement may result in changing the
fair market value of the structure.
7. The SELLER understands this is a voluntary transaction and that SELLER is not entitled to relocation
benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act(URA),
and will not claim any such benefits.
8. SELLER acknowledges that it has had an opportunity to review this contract and that it has had an
opportunity, if it so chooses,to contact an attorney of it's choice to review this Agreement. SELLER enters
into this Agreement fully understanding the nature thereof. SELLER further releases, indemnifies,and saves
and holds harmless the City and the City's officers, employees, agents, and subcontractors from all suits,
actions, or claims of any character, name, or description for any matter relating to the subject matter of this
contract. The SELLER shall release and indemnify the City from and against any suits, damages,
obligations or liability regardless of the negligence, alleged misrepresentations or other intentional or
unintentional acts of the City or any of its officers, agents,employees or subcontractors performed in
relation to this contract or the administration of this buyout program.
This agreement is binding upon the heirs,executors,successors and assigns of all parties.
DATED this day of 2009.
Seller Signature _ —T Witness,attesting for Seller(signature)
Marshell G Terry s �°
Seller Printed Name
Witness,attesting for Seller(Pia<CecC Na*)
City of Beaumont Approval:
Oti T.r R RE_0 'F_TION AGREEMENT
THIS AGREEMENT is made and entered into this j: �° day of ;, t r_; t 200'4. by and
between the City of Beaumont, Texas, hereinafter referred to as "CITIPI and flor2ce & LKiv Lean,
hereinafter referred to as the"RECIPIENT."
WITNESSETH:
The CITY is acting under a federal grant from the Texas Department of Public Safety, Governor's
Division of Emergency Management(GDEM) to purchase certain property in Beaumont, Texas in which the
SELLER owns a parcel of land known by the physical address,445 Manning and described as North End Lot-
12 Block-4 Abstract 046750,(the"Property")in which the RECIPIENT resides.
THAT,the State and FEMA have allocated additional grant funds to assist the RECIPIENT in fording
and affording a decent,safe,and sanitary replacement home,outside of the floodplain.
THAT,the RECIPIENT was the Owner of the above-referenced Property and entered into a voluntary
agreement to sell the above-referenced Property to CITY.
THAT, the RECIPIENT represents that he resided in the above-referenced residence and that the
RECIPIENT meets the qualification requirements for Environmental Justice Relocation Assistance.
NOW,THEREFORE,CITY and the RECIPIENT(collectively,the"Parties")agree as follows:
1. CITY agrees to pay the RECIPIENT the sum of Twenty Two Thousand Five Hundred and No/100
($22,500.00) payable upon acceptance of this Agreement by both parties and after the RECIPIENT
has vacated the above-referenced Property.
2. The amount to be paid was determined in accordance with applicable procedures as follows:
ITEM PRESENT COST NEW COST DIFFERENCE
Purchase of replacement home $30,000.00 $85.000.00 $55,000.00
Amount of City contribution toward replacement home $22,500.00
*Capped at$22,500
Total benefits to be paid= $22,500.00
3. The RECIPIENT acknowledges that this payment will satisfy any and all obligations of the CITY
as to this transaction and agrees to accept this payment as complete and full compensation.
4. The RECIPIENT acknowledges that he has had an opportunity to review this Agreement and that
he has had an opportunity, if he so chooses, to contact an attorney of his choice to review this
Agreement and the RECIPIENT enters into this Agreement fully understanding the nature thereof and
saves and holds harmless the CITY as a result of this Agreement or anything incident to the purchase
of the above-referenced Property.
This Agreement is binding upon the heirs,executors,successors,and assigns of the Parties.
�t
4
DATED this'" `day of j,, ,�t 2003
RECIPIENT W'TNESS
IECIPIENT ��'ITT�TESS
Accepted by: _
CITY OF BEAUMONT
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 contracts with the
owners of homes flooded during Hurricane Ike for the purchase of those homes and the
provision of relocation assistance through the Hazard Mitigation Grant Program's
Acquisition and Demolition Program as described below:
Address Owners Name Purchase Relocation Amount
Amount
410 Manning Dorothy Green $26,845.71
3105 Taliaferro Willis-Joubert $22,527.56
3150 Taliaferro Timmie Bell $22,738.60
385 E Delaware Marshall Terry $10,000.00
445 Manning Horace&Lilly Dean $22,500.00
Total: $82,111.87 $22,500.00
FEMA Grant Amount(at 75%) $61,583.90 $16,875.00
Local CDBG Match Amount(at 25%) $20,527.97 $5,625.00
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
August, 2009.
- Mayor Becky Ames -
10
August 25, 2009
Consider approving a resolution authorizing the City Manager to execute water and/or
wastewater service agreements with City of Beaumont wholesale customers
RICH WITH OPPORTUNITY
r
T • E • x • A • S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Dr. Hani J. Tohme, Water Utilities Director
MEETING DATE: August 25, 2009
REQUESTED ACTION: Council approval of a resolution authorizing the City
Manager to execute water and/or wastewater service
agreements with City of Beaumont wholesale customers.
RECOMMENDATION
Administration recommends approval of executing water and/or wastewater service agreements
with Arkema, Inc., Equistar Chemicals, LP, Exxon Mobil Polyethylene Plant, Exxon Mobil
Refinery, Exxon Mobil BCSP/OA, Lucite, Northwest Forest MUD, Peak Sulfur, Inc., Martin
Resources, BASF Corporation, Republic Services, Texas Department of Criminal Justice,
Cardinal Meadows Improvement District, Federal Bureau of Prisons, Gerdau Ameristeal of
Beaumont, GE Betz, West Jefferson County MUD, and Meeker MUD.
BACKGROUND
The Texas Commission on Environmental Quality, Chapter 290, Sub-Chapter D, Rules and
Regulations for Public Water Systems, require municipalities to execute service agreements with
wholesalers as well as non-transient non communities which are not a community water system
but regularly serve at least 25 of the same persons at least six months out of the year. Once
service agreements are executed with such entities, they will be required by state law to monitor
and report the water quality inside of their property on a monthly basis. This procedure will
prevent any possible contamination of the City of Beaumont water system and protect public
health.
The Water Utilities Department provides water and/or sanitary sewer services to 16 industrial
customers and 4,800 commercial customers. The industrial and commercial facilities will be
evaluated, and agreements will be executed for those who will be identified as wholesalers and
non-transient non-communities.
The execution of the service agreements is recommended for approval by the City Manager and
the Water Utilities Director. A sample service agreement is attached for your review.
BUDGETARY IMPACT
None.
RICII \VITIf 0VALITY
T E - X - A - S City of Beaumont
SERVICE AGREEMENT CONTRACT
STATE OF TEXAS §
COUNTY OF JEFFERSON §
CITY OF BEAUMONT §
CONTRACT BETWEEN
City of Beaumont ■ Arkema Inc.
WHEREAS, Arkema Inc., doing business in the State of Texas (herein"Owner"), and the
City of Beaumont, a municipal corporation of the State of Texas(herein"City")entered into a Contract
on Date for the City to provide potable drinking water services to Arkema.
WHEREAS,the City and Owner desire to adopt a Service Agreement Contract for the provision
of potable drinking water services to Arkema and agree as follows:
WITNESSETH
I
Owner agrees to maintain, free of charge to the City, the water lines within its property.
11
The City shall have the right to enter on the Owner property or premises with 24 hour prior notice
for any purposes reasonably incidental to or necessitated by the terms and provisions of this Contract. The
City wilt abide by all Owner site safety rules and other site access rules while on Owner property.
III
Owner agrees to install and maintain a UL approved RPZ (reduced pressure zone) backflow
prevention device at the point of service(the meter). The City will give a variance of several feet so that the
Ciq of Beaumont 1350 Langliam Road
\\atei Utilities Department Page I of 6 Beaumont,Texas 77707