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Home My WebLink AboutPACKET DEC 15 2009 i RICH WITH OPPORTUNITY [I 17C A► ( T - E • X • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 15, 2009 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Approve a six (6) month contract for liquid chlorine for use by the Water Utilities Department B) Authorize the City Manager to acknowledge the Texas Department of Transportation's Plan Title Sheets for proposed improvements to the Burlington Northern and Santa Fe Railroad Crossings at Calder, McFaddin and North Streets C) Approve ratification of a letter agreement with Cimarex Energy Company D) Approve a resolution to write-off uncollectible water accounts A RICH WITH OPPORTUNITY 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: December 15, 2009 REQUESTED ACTION: Council consider authorizing the award of a six(6) month contract for liquid chlorine. RECOMMENDATION The Administration recommends the award of a contract to Altivia Corp., of Houston, Texas in the estimated amount of$70,720. BACKGROUND Bids were requested for a six (6)month contract to supply water treatment chemicals for use by the Water Utilities Department. Liquid chlorine is used to disinfect and purify the City's water supply. The contract is to furnish liquid chlorine at the fixed unit price of$544 per ton. The price for the previous six(6)months was $522 per ton. Bids were requested from seven(7)vendors and two (2) responses were received. Bid tabulation is as follows: VENDOR TONS PRICE/TON TOTAL Altivia Corporation 130 $544 $70,720 Houston, TX DXI Industries 130 $725 $94,250 Houston, TX BUDGETARY IMPACT This expenditure is budgeted in the Water Utilities Fund. RESOLUTION NO. WHEREAS, bids were solicited for a six(6) month contract for the purchase of liquid chlorine for use by the Water Utilities Department; and, WHEREAS,Altivia Corporation of Houston,Texas, submitted a bid for an estimated total expenditure of $70,720 in the unit amounts shown below: TONS PRICE / TON TOTAL 130 $544 $70,720 and, WHEREAS, City Council is of the opinion that the bid submitted by Altivia Corporation 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 Altivia Corporation, Houston, Texas, for the purchase of liquid chlorine in the unit prices shown above for an estimated total expenditure of $70,720 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of December, 2009. - Mayor Becky Ames - �I B RICH WITH OPPORTUNITY BEA,UMON* T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: December 15, 2009 REQUESTED ACTION: City Council authorize the City Manager to acknowledge the Texas Department of Transportation's Plan Title Sheets for proposed improvements to the Burlington Northern and Santa Fe Railroad Crossings at Calder, McFaddin, and North Streets. RECOMMENDATION Administration recommends City Council authorize the City Manager to acknowledge the Texas Department of Transportation's Plan Title Sheets for proposed improvements to the Burlington, Northern and Santa Fe Railroad Crossings at Calder, McFaddin, and North Streets. BACKGROUND The Texas Department of Transportation(TxDOT) has submitted to the City plans for improvements to the railroad warning devices at the Calder, McFaddin and North Street crossings with the Burlington Northern and Santa Fe(BNSF)Railroad. The proposed improvements include upgrades to the flashing lights, electrical circuits, bells and the installation of gate arms at all the crossings. Upon completion of the proposed improvements, the City will be responsible for the maintenance of the advanced warning signs and pavement markings at both crossings. Additionally, the City will be responsible for the trimming and maintaining trees and vegetation for adequate visibility of the crossing signals and warning signs. BUDGETARY IMPACT None. 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 acknowledge the Texas Department of Transportation's Plan Title Sheets for proposed improvements to the Burlington Northern and Santa Fe Railroad crossings at Calder, McFaddin, and North Streets. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of December, 2009. - Mayor Becky Ames - 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: December 15, 2009 REQUESTED ACTION: Council consider ratification of a letter agreement with Cimarex Energy Company. RECOMMENDATION Administration recommends the ratification of an agreement executed on December 8, 2009 by the City Manager with Cimarex Energy Company. BACKGROUND The City has a lease agreement with Cimarex Energy Company for drilling on the Beaumont Municipal Airport. Currently, Cimarex has constructed one well on the north side of the airport property with another one under construction on the south side of the property. This new letter agreement is specifically for drilling a deeper well that includes 80.07 acres out of the City of Beaumont lease. Construction of the well has begun and it was imperative that the contract be executed as quickly as possible to prevent any loss of revenue from the pooled well. A copy of the agreement is attached. BUDGETARY IMPACT Royalty fees will be paid to the City within ninety (90) days after production begins. RESOLUTION NO. WHEREAS, the City of Beaumont currently has an agreement with Cimarex Energy Company for drilling on the Beaumont Municipal Airport property; and WHEREAS, a new agreementwas required to drill a deeper well that includes 80.07 I acres of the Beaumont Municipal Airport and 83.35 acres on an adjacent tract; and WHEREAS, it was imperative that the agreement be expeditiously executed to prevent loss of revenue from the pooled well; and WHEREAS, on December 8, 2009, City Manager Kyle Hayes executed the new agreement with Cimarex Energy Company; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the agreement with Cimarex Energy Company executed on December 8, 2009, by the City Manager, attached hereto as Exhibit "A," be and it is hereby ratified. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of December, 2009. - Mayor Becky Ames - Cimarex Energy Co. 15 East 5"' Street, Suite 1000 Tulsa, Oklahoma 74103-4346 Phone: (918) 295-1768 Fax: (918) 295-1893 i November 16, 2009 City of Beaumont 801 Main Street Beaumont, Texas 77701 Attn: Mr. Kyle Hayes RE: Nine Dragons No. 1 Part of A. Huston, A-33 Part of A. Savery, A-46 Jefferson County, Texas Dear Mr. Haves: Cimarex Energy Co. is preparing to drill the Nine Dragons No. 1 well in the A. Huston League, A- 33, Jefferson County, Texas. The surface and bottom hole locations will be located on the Manion, et al tract just north of the City of Beaumont airport lease; however Cimarex proposes forming the unit shown below and requests your permission to include 80.07 acres out of the City of Beaumont lease. 1.) In the event Cimarex drills and completes the Nine Dragons No. 1 well, the unit will comprise 180 acres and will include the following tracts: Tract 1 Manion, et al 83.35 acres Tract 2 Airport Acres 16.58 acres Tract 3 City of Beaumont 80.07 acres Total 180.00 acres i 2.) After the presentation to you of a recorded copy of the Unit Designation that establishes a unit meeting the criteria set forth in Paragraph 1 above, you will promptly execute a Ratification of Unit, substantially similar in form and content to the instrument which is attached hereto and made a part hereof as Exhibit "A". 3.) It is specifically understood and agreed that nothing contained herein shall alter or amend the provisions of the City of Beaumont lease except as may be necessary to permit the formation of the unit for the proposed Nine Dragons No. 1 well. The parties reserve all of their respective rights and obligations under the City of Beaumont lease pertaining to matters other than the unit for the Nine Dragons No. 1 well. EXHIBIT "A" Page Two 4.) This Letter Agreement constitutes the entire agreement among the parties with respect to the matters discussed herein and supersedes any prior representations or understandings, whether written or oral, among the parties. owl-Air S=X' 5.) This Letter Agreement will remain in effect for a period of from the date hereof; provided that a unit formed in accordance with this agreement will remain in effect for as long as production or operations maintain Lessee's ri(,hts in accordance with the City of Beaumont lease. 6.) This Letter Agreement shall bind and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. If the foregoing meets with your approval, please execute in the space below and return one (1) original to the attention of the undersigned. Should you have any questions in this regard, please do not hesitate to call. Very truly yours, Cindy A. Croft Senior Landman CAC: sn Attachment fl ACCEPTED AND AGREED TO THIS DAY OF �►�(/ 2009. City of Beaumont B` Kyle Hayes City Manager RATIFICATION OF POOLED UNIT CIMAREX NINE DRAGONS UNIT NO 1 STATE OF TEXAS § COUNTY OF JEFFERSON § KNOW ALL MEN BY THESE PRESENTS: WHEREAS: Cimarex Energy Co.,as Operator, whose address is 15 East 5"' Street, Suite 1000, Tulsa, Oklahoma 74103-4346 executed and filed of Record that certain Unit Declaration and Designation as Instrument #2009023892 of the Official Records of Jefferson County, Texas ("Unit Declaration"); and, WHEREAS: The pooled unit established by the Unit Declaration is depicted on the plat and description which is attached hereto and made a part hereof as Exhibit"A", and, WHEREAS; The undersigned, Kyle Hayes, City Manager for the City of Beaumont, whose address is 801 Main Street, Beaumont, Texas, 77701, executed an Oil and Gas Lease. as `'Lessor' in favor of Cimarex Energy Co., a Memorandum of which Oil, Gas and Mineral Lease is recorded as Instrument 42007041074 of the Official Records of Jefferson County, Texas ('Lease"),- and, WHEREAS; The Lessor desires to ratify and adopt the Unit Declaration, as to their respective interests under the Lease. NOW THEREFORE, for good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, the Lessor hereby ratifies and adopts the Unit Declaration and confirms the validity of the pooling of the interests under the Lease in accordance with the terms and conditions of the said Unit Declaration. Executed this � // g day of �W , 2009, but effective as of the date of the Unit Declaration. LESSOR: CITY OF BEAUMONT By: Q ( L Kyle Hayes -- City Manager ACKNOWLEDGMENTS STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of �� }� k� 2009,by Kyle Hayes, City Manager of the City of Beaumont,acting in said capacity on behalf of the City of Beaumont,Texas. r° RAMONA WEEMS �1 M,Commission Expires �,�� November 04,2011 Notary Public, State of Texas D r C . T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager �/ PREPARED BY: Laura Clark, Chief Financial OfficerYcli MEETING DATE: December 15, 2009 REQUESTED ACTION: Council consider approving a resolution to write-off uncollectible water accounts. RECOMMENDATION The administration requests approval of a resolution to write-off uncollectible water accounts totaling $26,341,23 for which each individual account exceeds $1,000.00. BACKGROUND This request is in accordance with the write-off policy approved by City Council on December 21, 1999. The policy gives Council the final authority to write-off an individual account receivable identified as uncollectible when the balance due exceeds $1,000.00. All accounts have been terminated for at least one year and collection efforts have been unsuccessful. The termination dates for these accounts range from February 1, 2007 through July 31, 2007. A detailed report is attached. Auditors have requested that uncollectible balances be cleared from subsidiary ledgers. If at anytime an account becomes collectible after having been written-off, the receivables of the City will be adjusted accordingly. The balance of the account will be reinstated and payments will be applied to the balance. In addition, the customer will not be able to obtain new water service within the City until the delinquent balance has been paid. BUDGETARYIMPACT None RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT, in accordance with adopted policy, the City Council hereby approves the write-off of uncollectible water accounts totaling $26,341.23 for which each individual account exceeds $1,000 as shown on Exhibit "A" attached hereto. PASSED by the City Council of the City of Beaumont this the 15`h day December, 2009. - Mayor Becky Ames - PREPARED 12/03/09, 16:15:51 COLLECTION REPORT PAGE 2 PROGRAM Ui212L COLLECTION AGENCY - IN HOUSE City of Beaumont - Customer Service ---------------- CUSTOMER ID/NAME ALTERNATE CUSTOMER ID PHONE NUMBER MAILING ADDRESS - - - - - - MISCELLANEOUS INFORMATION - - - - - - - - - - - - - - - - - - - - LOCATION ID/LOCATION ADDRESS TRANSACTION TRANSACTION CURRENT TERMINATION TOTAL CREDIT HELD LOCATION DATE AMOUNT BALANCE DATE OFFENSES EXCEPTION 158851 MOLETTE,SHANQUESIIA S 060891957511 (409) 835-1105 5025 PARK BEAUMONT TX 77705 210322 5025 PARK ST 9/23/09 1,564.92 1,564.92 3/01/07 41 YES 176577 PEAR ORCHARD APARTMENTS 062302223701 (409) 842-1775 3312 COLUMBUS CT JORGE NEWBERRY COLUMBUS OH 43209 416006 2830 LINCOLN DR 9/23/09 3,806.68 3,806.68 6/29/07 88 YES YES 176579 PEAR ORCHARD APARTMENTS 062302223801 (409) 842-1775 3312 COLUMBUS ST JORGE NEWBERRY COLUMBUS OH 43209 416008 2861 LINCOLN DR 9/23/09 6,573.43 6,573.43 6/29/07 90 YES 176601 PEAR ORCHARD APARTMENTS 062302224101 (409) 842-1775 3312 COLUMBUS CT JORGE NEWBERRY COLUMBUS OH 43209 416010 2870 LINCOLN DR 9/23/09 3,324.51 3,324.51 6/29/07 84 YES YES 176603 PEAR ORCHARD APARTMENTS 062302224201 (409) 842-1775 M 3312 COLUMUS CT X JORGE NEWBERRY COLUMBUS OH 43209 �1 41.6012 2939 LINCOLN DR 9/23/09 2,567.65 2,567.65 6/29/07 90 YES YES W 225183 PEAR ORCHARD APARTMENTS ^81012891501 (409) 842-1775 3312 COLUMBUS CT JORGE NEWBERRY D COLUMBUS OH 43209 419500 4355 FOURTH S ST 9/23/09 6,027.37 6,027.37 6/29/07 80 YES YES 138391 TEXAS PIG STANDS INC 050341690001 (409) 835-9702 PO BOX 10568 SAN ANTONIO TX 78210-0568 268632 1595 CALDER 9/23/09 1,323.56 1,323.56 2/15/07 45 YES 351399 WA.SHINGTON,LINDA 091285413200 (409) 892-3663 3345 MAIDA BEAUMONT TX 77708 427912 3345 MAIDA 9/23/09 1,1.53.11 1,153.11 4/04/07 65 YES — COLLECTION AGENCY TOTALS- NO. OF CUSTOMERS- 8 26,341.23 26,341.23 DELETED RECORDS .00 .00 RICH WITH OPPORTUNITY [I r ►[I 1�1 U1 11 TO( T • E • X - A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 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 approving the purchase of fleet vehicles for use in various city departments 2. Consider authorizing the City Manager to apply for and receive funding through the U.S. Department of Homeland Security, 2010 Emergency Management Performance Grant (EMPG) Program 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: John Smith v. City of Beaumont In Re: City of Beaumont, Texas, and Local 399, AAA Case No. 70 390 00042 09, Disciplinary Appeal of James Mathews, Jr. 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 December 15, 2009 Consider approving the purchase of fleet vehicles for use in various city departments RICH WITH OPPORTUNITY [I I'Em ► � 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: December 15, 2009 REQUESTED ACTION: Council consider approving the purchase of fleet vehicles. RECOMMENDATION The administration recommends approval of the purchase of vehicles from Philpott Motors of Nederland in the amount of$757,077 BACKGROUND Pricing for this purchase is obtained through the Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Program and BuyBoard. H-GAC and BuyBoard are cooperative purchasing associations providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. Pricing includes the BuyBoard administrative fee of $400. Both H-GAC and BuyBoard comply with the State of Texas procurement statutes. Twenty (20) vehicles, budgeted in Fiscal Year 2010, are available through H-GAC and BuyBoard as follows: D+ept.l i�uis u' Dcsen tion, Q►ty. T" ai,Price Communications F-150 Supercab 1 $20,909 Communications F-150 Supercab 1 $18,724 Building Codes F-150 Supercab 1 $19,234 EMS F-350 XLT Cab 1 $29,708 Planning/Library Escape Hybrid 1 $28,908 P.D./Animal Svcs F-250 Cab & Chassis 56" CA 1 $25,523 Purchase of Fleet Vehicles December 15, 2009 Page 2 1ept +e se Bldg Svcs E-250 Cargo Van 1 $19,992 Streets F-450 Crew Cab 1 $42,294 Transportation F-550 Regular Cab 1 $97,917 Transportation F-350 Crew Cab 1 $42,679 Parks F-450 Standard Cab 1 $42,034 Parks F-250 Crew Cab 1 $33,853 Parks F-250 Cab Chassis 45" CA 1 $32,378 Water Utilities F-150 Supercab 1 $18,949 Water Utilities F-250 Supercab 1 $31,871 Water Utilities F-350 Regular Cab 1 $42,004 Water Utilities F-750 Crew Cab 1 $73,861 Water Utilities F-750 Crew Cab 1 $75,346 Water Utilities F-350 Regular Cab 1 $39,534 7--t Water Utilities Explorer 1 $21,359 TOTAL: $757,077 Replacement vehicles and additions to the fleet are requested through the City's budget process. The Fleet Superintendent reviews the requests and evaluates the vehicles to be replaced. Based on this evaluation, a recommendation is made to replace worn and obsolete vehicles that are no longer cost effective to operate. All twenty(20) vehicles to be purchased are replacing models ranging from 1995 to 2008. The newer vehicles may be reassigned by Fleet where appropriate. The age and mileage of the older vehicles render them unfit for continued service. These vehicles will be disposed of according to the City's surplus property disposal policies. Warranties of 36,000 miles or three (3) years are provided for each new vehicle. The warranty service is provided by local authorized dealerships. BUDGETARYIMPACT Funds are budgeted in the Capital Reserve Fund in the amount of$454,153 and $302,924 in the Water Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of twenty (20) fleet vehicles from Philpott Motors of Nederland, Texas, through the Houston-Galveston Area Council (H-GAC) and BuyBoard Cooperative Purchasing Programs in the amount of$757,077 as shown below: Dept./Division Description Qty. Total Price Communications F-150 Supercab 1 $20,909 Communications F-150 Supercab 1 $18,724 Building Codes F-150 Supercab 1 $19,234 EMS F-350 XLT Cab 1 $29,708 Planning/Library Escape Hybrid 1 $28,908 P.D./Animal Svcs F-250 Cab & Chassis 56" CA 1 $25,523 Bldg Svcs E-250 Cargo Van 1 $19,992 Streets F-450 Crew Cab 1 $42,294 Transportation F-550 Regular Cab 1 $97,917 Transportation F-350 Crew Cab 1 $42,679 Parks F-450 Standard Cab 1 $42,034 Parks F-250 Crew Cab 1 $33,853 Parks F-250 Cab Chassis 45" CA 1 $32,378 Water Utilities F-150 Supercab 1 $18,949 Water Utilities F-250 Supercab 1 $31,871 Water Utilities F-350 Regular Cab 1 $42,004 Water Utilities F-750 Crew Cab 1 $73,861 Water Utilities F-750 Crew Cab 1 1 $75,346 Dept./Division Description Qty. Total Price Water Utilities F-350 Regular Cab 1 $39,534 Water Utilities Explorer 1 $21,359 TOTAL: $757,077 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of December, 2009. - Mayor Becky Ames - 2 December 15, 2009 Consider authorizing the City Manager to apply for and receive funding through the U.S. Department of Homeland Security, 2010 Emergency Management Performance Grant (EMPG) Program 11E a ._ e 1 , I c [I � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer J� MEETING DATE: December 15, 2009 REQUESTED ACTION: Council consider authorizing the City Manager to apply for and receive funding in an amount not to exceed $135,178.72 through the U.S. Department of Homeland Security, 2010 Emergency Management Performance Grant (EMPG) program. RECOMMENDATION Administration recommends approval. BACKGROUND The Department of Homeland Security EMPG funding is provided to assist states and local governments in developing and carrying out emergency management programs. This includes mitigating costs of compliance with National Incident Management System, Incident Command System, planning, and training mandates, as well as reducing the personnel costs to manage the program. The federal funding guidelines are envisioned to reduce by half the anticipated operating expenses which are currently funded through the city's budget. The City was awarded S44,000 from this funding source in fiscal years 2008 and 2009. BUDGETARY IMPACT City would receive grant funding in a total amount not to exceed $135,178.72 which could potentially reduce the $270,357.44 the City currently anticipates spending in fiscal year 2010 for the Emergency Management Program. i RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to apply for and receive funding in an amount not to exceed $135,178.72 through the U.S. Department of Homeland Security, 2010 Emergency Management Performance Grant(EMPG) program to assist in developing and carrying out various emergency management programs. PASSED by the City Council of the City of Beaumont this the 15th day December, 2009. - Mayor Becky Ames -