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PACKET SEP 11 2009
RICH WITH OPPORTUNITY r T • E • X • A • S REGULAR MEETING OF THE CITY COUNCIL BEAUMONT CIVIC CENTER SEPTEMBER 15, 2009 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments Suzanne Alexander would be appointed to the Small Business Revolving Loan Fund Board. The term would commence September 15, 2009 and expire September 14, 2011. (Councilmember Alan B. Coleman) Beverly Hatcher would be reappointed to the Martin Luther King, Jr. Parkway Commission. The current term would expire December 4, 2010. (Councilmember W.L. Pate, Jr.) A) Authorize the City Manager to execute all documents necessary to accept funding for the Community Preparedness Section -Public Health Emergency Response (PHER) Grant for the Beaumont Public Health Department B) Authorize the acquisition of property for the Downtown Event Center and Park C) Approve Change Order No. 3 related to the City Hall First Floor Renovations Project D) Authorize the settlement of the lawsuit styled Fannette Entertainment, Inc. v. City of Beaumont, Texas, et al A RICH WITH OPPORTUNITY C T • E - x - A - S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Ingrid Holmes, Public Health Director MEETING DATE: September 15, 2009 REQUESTED ACTION: Council consider authorizing the City Manager to execute all documents necessary to accept funding for the Community Preparedness Section- Public Health Emergency Response (PHER) Grant for the Beaumont Public Health Department. RECOMMENDATION Administration recommends Council approval. BACKGROUND The Texas Department of State Health Services(D.S.H.S.)has awarded the Beaumont Public Health Department grant funds for Public Health Emergency Response (PHER) in the amount of $198,587.00. This Contract begins 09/15/2009 and ends on 07/31/2010. A statement of work summary is attached for your review. BUDGETARY IMPACT City would receive grant funding in the amount of$198,587.00. There is not a match requirement. CONTRACT NO. 2010-033278- PROGRAM ATTACHMENT NO. 001 PURCHASE ORDER NO. 0000355111 CONTRACTOR: BEAUMONT PUBLIC HEALTH DEPARTMENT DSHS PROGRAM: Community Preparedness Section/Public Health Emergency Response (PHER) TERM: 09/15/2009 THRU: 07/31/2010 SECTION 1. STATEMENT OF WORK: Contractor shall perform activities in support of the Centers for Disease Control and Prevention (CDC) Cooperative Agreement Work Plan for Public Health Emergency Response (Funding Opportunity CDC-RFA-TP09-902-H IN 109)Focus Area 1. Contractor shall identify gaps related to mass vaccination planning and implementation,vaccine delivery,vaccine administration,and related communications planning and implementation. Contractor shall perform activities to remedy the identified gaps. The following activities are allowed: • Hiring of staff to conduct accelerated vaccine planning, preparation and implementation activities. • Initiating contracts for in-state vaccine transportation and distribution,temporary staff and/or local organizations(e.g.,visiting nurses,community vaccinators)to ensure personnel will be available to vaccinate (or distribute antiviral) for potential vaccine clinics, and adequate storage space for sufficient quantities of vaccine. These contracts should only be executed following a decision by the federal government to initiate a mass vaccination campaign. Contracts should allow for termination for convenience and de-obligation of funds remaining if a decision is made to not conduct a full-scale vaccination campaign. All contracts for vaccine transportation and distribution shall be coordinated with the DSHS Immunization Branch to reduce the potential for duplication of efforts. • Purchasing supplies that will be needed during the event (e.g., storage space, cold chain supplies,ancillary supplies for vaccination, lab testing supplies,general supplies, personal protective equipment and antivirals for public health response workers in accordance with Center for Disease Control (CDC)National Institute for Occupational Safety and Health guidelines, and non-pharmaceutical supplies). • Purchasing the HIN1 vaccine. In addition to the HIN1 vaccine,Texas will receive supplies including, but not limited to, syringes, needles, alcohol swabs, and needle disposal containers to administer the H1N1 vaccine during a clinic. Funds may be used to purchase additional supplies as needed. Details on how to purchase these supplies will be provided by DSHS as they are available. PROGRAM ATTACHMENT—Page 1 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 all documents necessary to accept grant funding from the Texas Department of State Health Services (D.S.H.S.)for the Community Preparedness Section-Public Health Emergency Response in the amount of $198,587.00. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of September, 2009. - Mayor Becky Ames - B RICH WITH OPPOR'T'UNITY [IEA,UMON* T • E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: September 15, 2009 REQUESTED ACTION: Council consider authorizing the acquisition of property for the Downtown Event Center and Park. RECOMMENDATION The Administration recommends approval. BACKGROUND As part of the development of the Downtown Event Center and 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 connecting road to the event center: City Plat E, Tracts 43 and 48, Noah Tevis Survey Value: $44,000.00 Owners: TARM Properties, LLC BUDGETARY IMPACT Funds are available in the Capital Program. engtarm-ib.wpd 3 September 2009 r 35 • r 4 MT E C 1 1 Rercgniffn4:me knarrra�ks of the A ....sef6bD arrr faresghE ta*ards the......' LAND SUF`ur-YOBS, INC. Richard LVftkbey,RPLS J3.Sims,Jr..F{PLS EN L IT"A" January 6,200.9` Revised April 27,2009. Survevor's Field.Note Description;.PARCEL13 BEING a 0.264 acre tract of land out of and apart of those certain T.ARIvI Properties,:L.L.C. l 11 tracts of land,more fully described as Tracts 1 &2 recorded in Clerks_File No.2005038589 of the Official Public Records of Jefferson County, Texas. Said 0.264 acre tract of land being situated in the Noah Tevis League, Abstract No. 52, Jefferson County, Teus and being more particularly described as follows: r CONINENCI.NG at a 112 inch iron rod found at the Northwest comer of said Tract 2, same being the most Westerly Northeast comer of that certain Tideland.Specialty,Ltd.called 11.4488 acre tract of land,more fully described and recorded in Clerks File No.2002046131 and being in the South line of South Street(30 feet wide right-of-way); Thence North 69 deg:07 min..36 sec. East along and with the North line of said Tract 2,same being the South.Inre of said South Street,a distance of 408.948 feet to a 5/8 inch iron rod with cap stamped. "WO,RTECFf SURVEYORS" set at the Northwest corner and PLACE OF BEGINNING of the tract of land herein described; THENCE North 69 deg. 07 min. 36 sec. East continuing along and with the North line of said j Tracts 1 &Z,same being the South line of said.South Street,a.distance of 73.04 feet to a 5/8 inch iron rodwith cap stamped"WORTECH SURVEYORS"set for comer: THENCE in a Southwesterly direction along and with a non-tangent curve to the right,having a f delta angle of 14 deg.44 min. 00 sec.,a radius of 455:00 feet..along chord that-beers South 11 deg.45 min.30 sec.West,a distance of 116.68 feet and an arc length of 117:00 feetto a 5/8 inch ` iron rod with cap stamped d"WORTECH SURVEYORS"set for corner; THENCE continuing in a Southwesterly direction along and with a reverse curve to the left, having a delta angle of 6-deg. 54 min. 35 sec.,a radius.of 383.00 feet, a long chord that bears 1: �. South 15 deg. 44 min. 12 sec. West,a distance of 46.40 feet and an am length of 46,43 feet to a 5/8,inch iron rod with cap.stamped"WORT}✓CI-i SURVEYORS."set for corner in the South line of said Tract 1,same being the North line of said 11.4488 acre tract-, i THENCE South 69 deg.OT min.36.sec. West along and with the South line o'f.said Tracts I & 2, same being the North line of said 11.4488 acre tract,at a distance.of 59,51 feet pass a 1/2 inch iron rod found at the Southwest comer of said Tract I,same being the;Sotrtheast corner of said i l I 1480 Cornerstone Court j Hcaumont,Texas 77705 Tel:409.066.V69 Fax:4091166.7075 F^ vww.wortxch.cam 1 " t' r 36 PtAFtC1•;L B W4' �. EC1 1 January 6,2009 L N t] S.0 RW E Y O R 5, t N C. Revised April 27, 2009 Page 2 Tract 2 and continue on a total distance of 80.98 feet to a 5/8 inch iron rod with cap stamped "WORTECH SURVEY016'set for corner; THENCE in a Northeasterly direction along and with a non-tangent curve to the right,having a delta angle of 12 deg.29 min. 08 see.,a radius of 455.00 feet,.a long chord that bears INorth 12 degr 52 ,nin. 56 sec. East a distance of 496 feet and an 4rc length of 99.15 feet to a 518 inch iron rod with cap stamped"WORTECT--SURVEYORS"set for corner; THENCE continuing in a Northeasterly direction along,and with a reverse curve to the left, having a delta angic of 9 deg,42 min.23-see', a radius of 385:00 feet; a long chord that bears North 14 deg. 16 min. 19 sec. East,a distance of 65.14 feet and an are length of 64.22 feet to the PLACE OF BEGINNING,containing 0.264 acre of land,more or less. (This description is based upon a survey made on the giractnd under my direct supervision on December 17 20.08 crud is being submitted along with a survey Plal EXhtbia "B" 7h0mAvig the property and facts found as described herein.gill bearings are based upon the 7esas State Plane Coordinate System, Lctntbert Projection, North Americcnr. Datum of.*1983 (M-083), South Central Zone 'U.S. Survey foot', All distances and acreages are Surface.) OF bA., ayf ery-4- . R �isiere, Yofes i6dit Land Surveyor IL R. o b9J8' �r 4.. trsV 0 4° ok". ' Revised Parcel 8 PARCEL B ONVnR--'TAR-M-Properties,LIZ. � FROIOSLD TAK NO.6.26'4 ACRE REMAINDEP+:.I':81;6 AtM.'(calculated} D.. ;. �"` -,.• a sty 59' tza• f Vlf[MiTY MAP �titi?C 1 r r, 5T' TARM_PRODERnI!S,4.LC. ,P�. 448`7a C! Clarks41�-2tOt1„O:fE899 FIR �a�a�136" aa �T r0 O:PAJ.C. FA TARM PROPERTIES,LLC. 1-.2id Atre.Tnref M11ACT:21 darks File No•2003038394. Subject FND IJ2` �7 1,ROD ,�6•v3 3ti TIDElANO SPECIALI Y,LTM FNO IX 11 A1488:Aoe7Md I.ROQ' ClorKFlltNp:SW1049131 CURVE DELTA ANGLE RADIUS CIiOItD.BEAIdfNOr CHORD LENGTIi .AR"C:LEr`IGTfi C1 14°44'00" 453.00' SI4°45'30"W 116:68' 1.17.00' C2 G°54'35° 385.0(1' Si3°40'12"W 46.49 46.43! 0 12°29'08" 145SAY NI3°92'56"L A>i:9t1' n4.t5' C4` 6""33 9°4 „ 385.00` 1N14'F6"a9"E 56:1.4' 65:22' Mi wei(arreousNo#as 1=ieod 2 orio fnfcctnation 1. Alt beating*era bsaeddn Iha Texaa'Slale.Rlane Coanlli+ate System, Aecordhis to Map No 4864570020 C,a(Uu FsdsraPFlnsrgancy tarnbert PmlecUgn,"North Otrtrericen Ostum of i a83:(NAD83),ScuUr MenagementAgencys Flood ituurancb Rats fdiipe forJglfars<m Central Z6rW(U:S:Survey Foolj..ADdislaniAsandac_4a araSurrace. County.defed.Autlli82002;the,strbled Inset Is situated within;. (Unchadad).Zene.X -kn aedatarrnhsdto'b*&WIde90q•.year 2 .518'Iron Rods wt caps staimped'VVORTCCH SURVEYORS'set at ell tlaadpWr.l.66110 of the subject traet:on sold maps were. cumerst ma*ed r:unleae.otherwise noted. dMa!mtned by+W rt with actual 40 alevedons rioCdstemmned, WGRTE.CH Land Survdyoie.Ina do"notwarrant nor subscribe-W 3. This survey is a.bound ary survey.onty,MW was prepared wilhout.the tha.aoctrrat:y or stela of said maps. banallt of a artrsini,Commlpmori[for Tlde-fnsurance,.Construction Plane, orASab"oft CerttGCale and therefore eaaomenle.P10411685,ul lftw!t,pr encumbrances may existwhieh arc rwL shown hareon:.No subsurface probing,excavallonorexploration:wea.parfrnmeJiorthissurybynot was {1TJfJr91fi2#IQIt$—�� any'reavaroh:ofthu PubUe Records of Jefferson County regarding these easements,utlWae.,piRelinesorencumbrancea pwf6 1mod.byN/ORTECH FNO Found' 'O:P R.JA Offtlal Publ_ic'Rocords Land Urveyors,Ins.,The local6aof an pipelines,utilities and easements K.C. Fdm.Code JaRarson County (If any)shown horeon';ar a based upon acluKflald-focellon as:aQwioed 1.ROD Iron.Rod RA.W: Right-af-way kom visible plpea ie-markets,physcaifealuow andtorwilNnn dasciiplions of 1110 physical locations 99 scolded hi documents fildd In No Number NIL S. Not to Stile Ns County.Clerk R'acoldrt whkh.wom prov ded•to the aneYorby others. '08 NQ .2009.094O8 Suaw—yaR'S CER'.TIFIOATION JaD SOthf 861028.-01141022. F, �. The undersigned-does herabycetVy thatlnfs survey platacculetely F yt T TtN f roprarm a err or Via ground survey made,under my direct supervikim WE. Revised 04-27-0A 4 + t•.•9 ' ICAtE: R•r90' .. 4• Q; on Daumbar 15,20091 and is Whg.subrmllfad along with the FiMS JR 8urvo cesFtuktNQtedoacnplWn(exhibilA)oflhs:propertyshown �. hereon,which 7; In Jeftersan County,Texas. 4 tier+ta{�O Revised April 2T:2009. LAND 5'URVEY019I INC 1490 Cornerstone Court aaatimo.t,Texa}77709 - - Tali'!109,88G.y7b9 1Nle aoctrr.Rrrr'NQLVALIb - .. Pax. 1.09:956,7,075 WM UT011 aouLseanto ., FE SIO SU f2 viww:wortcchaom srcuuttmttorr!mearrcarrstrwo. RESOLUTION NO. WHEREAS, an agreement has been negotiated for the acquisition of property as shown below for the Downtown Event Center and Lake Park: City Plat E, Tracts 43 and 48, Noah Tevis Survey Value: $44,000.00 Owners: TARM Properties, LLC 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 15th day of September, 2009. - Mayor Becky Ames - c RICH WITH OPPORTUNITY C City Council Agenda Item T • E • X - A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: September 15, 2009 REQUESTED ACTION: Council consider Change Order No. 3 related to the City Hall First Floor Renovations Project. RECOMMENDATION Administration recommends approval of Change Order No. 3 for in the amount of$20,626.59. BACKGROUND In December 2008, Council awarded the construction contract to renovate the first floor of City Hall to Bruce's General Construction, Inc. of Beaumont in the amount of$610,000. Change Order No. 1 for additional work in the amount of$17,104.85 was deducted from the Contingency balance. Change Order No 2 in the amount of$5,726.38 included converting an existing janitor's closet into a new employee's restroom increasing the contract total to $615,726.38. Change Order No. 3 includes the following additional work not in the original plans and specifications: • Installation of a new cabinet in the Human Resources office • Refinish wood handrails and paint metal balusters on the Lobby stairway • Electrical modifications in several areas • Additional painting in several areas • Replacement of drywall in two areas, including one to repair unforseen termite damage • Installation of new VCT and ceiling in an additional room Change Order No. 3 totals $20,626.59 which represents approximately 3.4% of the original contract amount. A total of$14,145.15 will be taken from the Contingency and Allowance City Hall First Floor Renovation September 9, 2009 Page 2 balances. The remaining balance of$6,481.44 will increase the total contract amount to $622,207.82. The date of substantial completion remains unchanged. BUDGETARY IMPACT The portion of Change Order No. 3 to be deducted from the Contingency balance and the Hardware, Signage, and Technology Allowances is $14,145.15. Funds are available in the Capital Program for the balance of$6,481.44. ® OWNER'S COPY f_ Document G701 TM - 2001 Change Order PROJECT(Name and address): CHANGE ORDER NUMBER:003 OWNER: BEAUMONT CITY HALL FIRST DATE:July 9,2009 ARCHITECT: FLOOR RENOVATION PO BOX 3827 CONTRACTOR: BEAUMONT,TEXAS 77704 TO CONTRACTOR(Name and address): ARCHITECT'S PROJECT NUMBER:07101 FIELD:❑ BRUCE'S GENERAL CONTRACT DATE: December 17,2007 OTHER.-E] CONSTRUCTION CONTRACT FOR:General Construction 1 175 REYNOLDS ROAD BEAUMONT,TEXAS 77707 THE CONTRACT IS CHANGED AS FOLLOWS: (Include, where applicable,any undisputed amount attributable to previously executed Construction Change Directives) RFC#8- Install new cabinet in HR as per Brenda B. See attached quote from Quality Case and Fixture $1,071.13 RFC#10-Strip and refinish wood handrail at front of City Hall. Paint metal ballisters bronze $4,728.00 RFC#I 1 -Install one(1)30-amp 120 volt dedicated circuit for the new employee restroom water heater. - install l2'of wire mold for a duplex receptacle below the windows in Room#117 1/2 time for 3.5 overtime hours worked by one journeyman on 6-2-09 from 5:00 p.m.to 8:00 p.m. - Install one(1)single pole switch,remove and replace two(2)light fixtures and extend the existing lighting circuit to the new switch in Room#113. -Install one(I)single pole switch,remove and replace two(2)light fixtures and extend the existing lighting circuit to the new switch in Room#115. Install one(1)single pole switch in the hall between Room#116 and#114 to control the existing hall and cashier fixtures $ 2,626.31 RFC#12-BGC to provide ventilation for dust control $ 500.00 See attached breakdown S 4,546.00 RFC#13 -Remove and replace four(4)sheets of sheetrock,clean and seal studs, tape,float and texture,repaint two(2)rooms. S 1,635.90 RFC#14-Scrape and clean walls,fire tape and two(2)coats of kilz. Replace grid and tile. $ 1,237.50 RFC#15-Repaint one(1) wall in work room as per Brenda. $ 117.00 RFC#16-Install new VCT tile,install new grid ceiling,patch and paint walls (area originally a no-work room). S 1,332.00 RFC#17-Remove damaged drywall and replace ten(10)sheets due to termite damage. Fire tape and paint with two(2)coats of enamel real wall of chambers. $ 2,832.75 Total Change Order Amount $20,626.59 Amount taken from contingency balance and a]lowances S 14,145.15 Total Adjusted Change Order Amount $ 6,481.44 The original Contract Sum was $ 610,000.00 The net change by previously authorized Change Orders $ 5,726.38 The Contract Sum prior to this Change Order was $ 615,726.38 The Contract Sum will be increased by this Change Order in the amount of $ 6,481.44 The new Contract Sum including this Change Order will be $ 622,207.82 The Contract Time will be increased by Zero(0)days. The date of Substantial Completion as of the date of this Change Order therefore is NOTE:This Change Order does not include changes in the Contract Sum,Contract Time or Guaranteed Maximum Price which have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change AIA Document G70111—2001.Copyright©1979,1987,2000 and 2001 by The American Institute of Architects.All rights reserved.WARNING:This AIA® Document is protected by U.S.Copyright Law and International Treaties.Unauthorized reproduction or distribution of this AIAe Document,or any portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law.This document was produced by AIA software at 09:43:27 on 07/17/2009 under Order No.1000369257_1 which expires on 09/05/2009,and is not for resale. User Notes: (1298214727) J � Directive. NOT VALID UNTIL SIGNED BY THE ARCHITECT,CONTRACTOR AND OWNER. Architectural Alliance Inc. Bruce's General Construction City of Beaumont ARCHITECT(Firm name) CONTRACTOR(Firm name) OWNER(Firm name) 6654 Phelan Blvd. 1175 Reynolds Road PO Box 3827 Beaumont,TX 77706 Beaumont,TX 77707 Beaumont,TX 77704 ADDRESS AD RE' S ADDRESS 17- 01 BY(Signature) .Signature) BY(Signature) J.Rob Clark,AIA Sean Tilley Brenda Beadle (Typed name) (Typed name (Typed name) -7 -- f�- � D E DATE DATE AIA Document G701 T1—2001.Copyright©1979,1987,2000 and 2001 by The American institute of Architects.All rights reserved.WARNING:This AIA" Document is protected by U.S.Copyright Law and International Treaties.Unauthorized reproduction or distribution of this A10 Document,or any 2 portion of it,may result in severe civil and criminal penalties,and will be prosecuted to the maximum extent possible under the law.This document was produced by AIA software at 09:43:27 on 07/1 712 00 9 under Order No.1000369257_1 which expires on 09/05/2009,and is not for resale. User Notes: (1298214727) RESOLUTION NO. WHEREAS, on December 9, 2008,the City Council of the City of Beaumont,Texas, passed Resolution No. 08-333 awarding a contract in the amount of$610,000 to Bruce's General Construction of Beaumont, Texas, for furnishing all labor, materials, supplies and equipment to renovate the first floor of City Hall; and, WHEREAS,Change Order No. 1 in the amount of$17,104.85 was required forextra work described as partial removal and reinstallation of the stage and wall in Council Chambers to allow access for conduit; additional coat of bonding primer to doors and frames for better adhesion; change specified water coolers to refrigerated units; relocate door in Human Resources Training Room hallway; and removal of existing VCT and installation of new ceramic tile and cove base in Human Resources Training Room, said amount being deducted from the $20,000 contingency allowance, thereby decreasing the contingency balance to $2,895.15 with the contract amount remaining at $610,000; and WHEREAS, Change Order No. 2 in the amount of $5,726.38 was required to convert an existing janitor's closet into an employees restroom and a minor addition to the hallway leading to the Human Resources Training Room, thereby increasing the contract amount to $615,726.38; and WHEREAS, Change Order No. 3 in the amount of $20,626.59 is required for additional work described as installation of a new cabinet in the Human Resources office, refinish wood handrails and paint metal balusters on the lobby stairway, electrical modifications, additional painting, replacement of drywall in two areas, including one to repair unforseen termite damage, and installation of new VCT and ceiling in an additional room, $14,145.15 of said amount to be deducted from the Contingency and Allowance balances, thereby depleting said balances and increasing the contract amount by $6,481.44 for a total contract amount of$622,207.82. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute Change Order No. 3 in the amount of$20,626.59 for additional work described above,thereby depleting the Contingency and Allowance balances and increasing the contract amount by $6,481.44 for a total contract amount of $622,207.82. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of September, 2009. - Mayor Becky Ames - D RICH WITH OPPORTUNITY [111EMA► ( T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City AttomC5�� MEETING DATE: September 15, 2009 REQUESTED ACTION: Consider a resolution authorizing the settlement of the lawsuit styled Fannette Entertainment, Inc., v. Cites Beaumont, Texas, et al RECOMMENDATION Administration recommends approval of a resolution authorizing the settlement of a lawsuit styled Fannette Entertainment, Inc., v. City of Beaumont, Texas, et al. BACKGROUND This matter was most recently presented and discussed in Executive Session held on September 8, 2009. The City Attorney is requesting authority to settle this suit. BUDGETARY IMPACT None. RESOLUTION NO. WHEREAS, the lawsuit styled Fannette Entertainment. Inc., v. City of Beaumont, Texas, Frank Coffin, and Lieutenant Wayne Jeffcoat was discussed in Executive Session properly called and held Tuesday, September 8, 2009; and, WHEREAS, the Council desires to authorize the settlement of the lawsuit styled Fannette Entertainment. Inc., v. City of Beaumont. Texas, Frank Coffin. and Lieutenant Wayne Jeffcoat; 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 lawsuit styled Fannette Entertainment, Inc., v. City of Beaumont. Texas, Frank Coffin and Lieutenant Wayne Jeffcoat. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of September, 2009. - Mayor Becky Ames - _ _ I RICH WITH OPPORTUNITY r T - E - X - A • S REGULAR MEETING OF THE CITY COUNCIL BEAUMONT CIVIC CENTER SEPTEMBER 15, 2009 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-2/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. 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 2. Consider amending Resolution 09-193 authorizing the City Manager to apply for and receive additional Neighborhood Stabilization Program funds 3. Public Hearing: Receive comments on a proposal to allocate funds ($300,000) from the 2009 HOME Program for partial funding of affordable housing (Gracelake Townhomes)being proposed at 4060 West Cardinal Drive Consider authorizing an allocation of$300,000 from the 2009 HOME Program for the partial funding of affordable housing (Gracelake Townhomes)being proposed at 4060 West Cardinal Drive and authorizing the City Manager to issue a conditional letter of commitment for the allocation amount 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: Fannette Entertainment, Inc., 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 September 15, 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 I'Em . � T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorneo" MEETING DATE: September 15, 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. The first reading of this item took place at the August 25, 2009, council meeting. 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. 09-047 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. �I 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. i I 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 I 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 15th day of September, 2009. 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 52009. 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 § I,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] 2 September 15, 2009 Consider amending Resolution 09-193 authorizing the City Manager to apply for and receive additional Neighborhood Stabilization Program funds RICH WITH OPPORTUNITY r T - E • x - A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Christopher S. Boone, Community Development Director MEETING DATE: September 15, 2009 REQUESTED ACTION: Council consider amending Resolution 09-193 authorizing the City Manager to apply for and receive an estimated $1,185,129 in Neighborhood Stabilization Program funds instead of the originally indicated amount of$900,000. RECOMMENDATION Administration recommends approval. BACKGROUND On June 30, 2009, the City Council approved Resolution 09-193 authorizing the City Manager to apply for, represent the City and execute a contract for the Neighborhood Stabilization Program (NSP) in the amount of$900,000. This program is being administered by the Texas Department of Housing and Community Affairs(TDHCA). After review of the application, TDHCA has indicated that the grant amount will be $1,185,129, not the originally indicated amount of $900,000. The resolution will allow the City Manager to receive additional funds above the estimated $1,185,129 if TDHCA notifies the City that additional funds are available. The NSP program requires no local match. Contracts for this program are expected within the next two weeks. The Neighborhood Stabilization Program(NSP) is a HUD-funded program authorized by the "Housing and Economic Recovery Act of 2008" (HERA), as a supplemental allocation to the Community Development Block Grant (CDBG)Program. The purpose of the program is to acquire and encourage redevelopment of foreclosed, abandoned and blighted properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. This program offers a variety of eligible activities, including demolition of properties, establishing land banks for foreclosed properties and the rehabilitation and selling of properties to provide affordable housing. Due to the limited amount of funding, the most advantageous use of the funds would be to identify approximately fifty(50)unsafe and abandoned structures within specific targeted areas and remove these blighted structures for approximately $121, 073. The balance of the funding could then be used to purchase and rehabilitate approximately nine (9) homes for approximately $1,004,800. The balance of funds, $59,256, would be used for the administrative costs associated with the program. The targeted areas are based on high concentrations of foreclosures and would include those neighborhoods near the Beaumont Housing Authority's Hope VI project and near Lamar University. BUDGETARY IMPACT None. Funds would be available through this grant, with no required local match. RESOLUTION NO. WHEREAS, City Council approved Resolution No. 09-193 on June 30, 2009, authorizing the City Manager to apply for and receive funding in an amount up to$900,000 through the Neighborhood Stabilization Program provided by the Texas Department of Housing and Community Affairs (TDHCA); and WHEREAS, after TDHCA review of the application, TDHCA has indicated that the grant amount will be $1,185,129; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT Resolution No. 09-193 be and it is hereby amended to authorize Kyle Hayes to apply for, represent and execute a contract in an amount up to $1,185,129 through the Neighborhood Stabilization Program, a reimbursement program provided by the Texas Department of Housing and Community Affairs. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of September, 2009. - Mayor Becky Ames - 3 September 15, 2009 Public Hearing: Receive comments on a proposal to allocate funds ($300,000) from the 2009 HOME Program for partial funding of affordable housing (Gracelake Townhomes) being proposed at 4060 West Cardinal Drive Consider authorizing an allocation of$300,000 from the 2009 HOME Program for the partial funding of affordable housing (Gracelake Townhomes)being proposed at 4060 West Cardinal Drive and authorizing the City Manager to issue a conditional letter of commitment for the allocation amount RICH WITH OPPORTUNITY BEA,11140N* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: September 15, 2009 REQUESTED ACTION: Council conduct a public hearing to receive comments on a proposal to allocate funds in the amount of$300,000 from the 2009 HOME Program, approve a request to allocate said funds, and authorize the City Manager to issue a conditional letter of commitment to Gracelake Townhomes for the construction of affordable housing located at 4060 West Cardinal Drive. RECOMMENDATION The Administration recommends approval. BACKGROUND ITEX Property Management, LLC has been allocated $1,287,056 in Low Income Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA) for the construction of Gracelake Townhomes, a proposed 128-unit apartment complex that will provide affordable rental housing to low-to-moderate income families in an area targeted for revitalization. Gracelake will be located at 4060 West Cardinal Drive near the Jehovah Jireh subdivision currently under construction, and will supplement community revitalization efforts. The total cost of the proposed development is$13,772,368. This conditional commitment provides $2,343.75 per unit, representing 2.18% of the total development. An actual commitment of funds is contingent upon the development receiving the final allocation of tax credits, satisfactory Phase 1 Environmental Review and clearance from all other related environmental authorities,and compliance with applicable HOME Program regulations. In 2007, the City of Beaumont made a commitment of$1,367 per unit for the rehabilitation of Sunlight Manor, located at 2950 S. 8`' St., for which ITEX received an allocation of tax credits. BUDGETARYIMPACT Funds are available from the HOME Program. There is $1,191,559 available at this time from the 2008 ($459,671)and 2009($731,888)program years. Below is an outline of available funds in the 2008 and 2009 program years as well as current funding requests under consideration. 2008 HOME Pro rg am $459,671 Helbig CDC $109,946 (CHDO Reserve new housing construction) Owner-Occupied Rehab Program $300,000 (proposed single-family rehabilitation program) Habitat For Humanity $ 49,725 (total request - $75,797) 2009 HOME Prop-ram $731,888 Habitat For Humanity $ 26,072 (to fund balance of request) Jehovah Jireh CDC $200,000 (CHDO Reserve new housing construction) Gracelake Townhomes $300,000 (LITHO_construction of a128 unit apartment complex) 2009 HOME Funds Available Balance: $205,816 RESOLUTION NO. WHEREAS, the City Council has conducted a public hearing concerning the allocation of $300,000 from the 2008 HOME Program for the construction of affordable housing located in a neighborhood targeted for revitalization; 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 allocate$300,000 from the 2008 HOME Program for the construction of affordable housing located in a neighborhood targeted for revitalization. BE IT FURTHER RESOLVED THAT the City Manager is authorized to issue a conditional letter of commitment to ITEX Property Management, LLC, for the construction of Gracelake Townhomes, a proposed 128-unit apartment complex that will provide affordable rental housing to low-to-moderate income families in an area targeted for revitalization at 4060 Cardinal Drive. The commitment is contingent upon ITEX Property Management, LLC, receiving a final allocation of tax credits, satisfactory Phase 1 environmental review and clearance from all other related environmental authorities, and compliance with applicable HOME Program regulations. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of September, 2009. - Mayor Becky Ames -