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Home My WebLink AboutPACKET JUN 15 2010 RICH WITH OPPORTUNITY IIEA,UMON* T - E - X - A - S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 15,2010 1:30 P.M. CONSENT AGENDA * Approval of minutes-June 8,2010 * Confirmation of committee appointments A) Authorize the purchase of a fifteen foot Utility Easement from the Beaumont Independent School District B) Authorize the execution of a License to Encroach Agreement with Entergy for the installation of a power line into a City of Beaumont water line easement C) Approve a resolution approving Change Order No. 1 and final payment for the Magnolia Avenue Drainage and Pavement Improvement Project D) Authorize the settlement of the City of Beaumont's property damage claim in the lawsuit styled Jay Brocato and wife,Valerie Brocato, Individually and as Next Friends of Macy Brocato, a Minor v. The City of Beaumont,Texas E) Approve a contract for emergency catering services in the event of a natural disaster or all-hazards disaster F) Approve a six month contract for liquid chlorine for use by the Water Utilities Department A RICH WITH OPPORTUNITY BEA,UM:ON* T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner,Director of Public Works MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider authorizing the purchase of a fifteen foot Utility Easement. RECOMMENDATION The Administration recommends the purchase of a fifteen(15) foot Utility Easement from the Beaumont Independent School District in the amount of$14,100.00. BACKGROUND Beaumont Independent School District has agreed to sell a fifteen(15) foot Utility Easement to the City of Beaumont for the appraised value of the property plus the cost of the appraisal ($14,100.00). The easement is approximately 1,190 feet in length and is located on St. Helena Street. The easement, as part of the East Lucas Lift Station&Force Main and Interceptor Rehabilitation Project, is for the placement of a sanitary sewer force main for a portion of the line from the intersection of Cleveland and Tyler(the proposed East Lucas Lift Station)to south of Interstate 10. No additional easements or property will need to be acquired for the project. This Utility Easement is recommended for approval by the City Manager, Director of Public Works and the Water Utilities Director. BUDGETARYIMPACT Funds for the project are available in the Capital Program. \engsthelena h2o-ib 7 June 2010 RESOLUTION NO. WHEREAS,an agreement has been negotiated with Beaumont Independent School District in the amount of $14,100.00 for the acquisition of a fifteen foot (15') utility easement, being situated in the James Drake Survey, Abstract 71, Jefferson County, Texas, as described in Exhibits 'A" "C," "E,"and "G," and shown on Exhibits "B," "D,""F," and "H," attached hereto, for placement of a sanitary sewer force main for a portion of the line from the intersection of Cleveland and Tyler to south of Interstate 10 as part of the East Lucas Lift Station & Force Main and Interceptor Rehabilitation Project; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the purchase of the fifteen foot (15') utility easement, as described in Exhibits "A," "C," "E," and "G," and shown on Exhibits "B," "D," "F," and "H," attached hereto, in the amount of $14,100.00 for the East Lucas Lift Station & Force Main and Interceptor Rehabilitation Project be and it is hereby approved. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - I FIELD NOTE DESCRIPTION FOR A 15 FOOT UTILITY EASEMENT 15 FOOT UTILITY EASEMENT 0.1296 ACRES OUT OF A 1.865 ACRE TRACT BEAUMONT INDEPENDENT SCHOOL DISTRICT JAMES DRAKE SURVEY,AB.71 JEFFERSON COUNTY,TEXAS BEAUMONT,TEXAS BEING A 15 FOOT UTILITY EASEMENT CONTAINING 0.12%ACRES OF LAND,OUT OF THAT CERTAIN CALLED 1.865 ACRE TRACT OF LAND,CALLED TRACT TWO,TO THE BEAUMONT INDEPENDENT SCHOOL DISTRICT,IN DEED RECORDED IN COUNTY CLERKS FILE OF JEFFERSON COUNTY,TEXAS(C.C.F.J.C.T.)#2005025845,BEING LOCATED IN THE JAMES DRAKE SURVEY,ABSTRACT 71,JEFFERSON COUNTY,TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID CALLED 1.865 TRACT,BEING THE NORTHWEST CORNER OF THAT CERTAIN CALLED 0.9786 ACRE TRACT OF LAND TO B.I.S.D., CALLED TRACT ONE,RECORDED IN SAID C.C.F.LC.T.#2005025845,ALSO BEING IN THE EAST RIGHT—OF-WAY LINE OF ST.HELENA STREET,AND BEING THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH,ALONG AND WITH THE EAST RIGHT-0F-WAY LINE OF SAID ST.HELANA STREET,THE WEST LINE OF SAID CALLED 1.865 ACRE B.I.S.D.TRACT AND THE WEST LINE OF THE HEREIN DESCRIBED TRACT FOR A DISTANCE OF 380.23 FEET TO THE SOUTH LINE OF A SANTA FE RAILROAD RIGHT—OF—WAY,BEING THE NORTHWEST CORNER OF SAID CALLED 1.865 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,EAST,ALONG AND WITH THE SOUTH LINE OF SAID SANTA FE RAILROAD RIGHT— OF-WAY,THE NORTH LINE OF SAID CALLED 1.865 ACRE TRACT AND THE NORTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.00 FEET TO THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH OVER AND ACROSS SAID CALLED 1.865 ACRE TRACT AND WITH THE EAST LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 37225 FEET TO THE NORTH LINE OF SAID CALLED 0.9786 ACRE TRACT AND BEING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH 62 DEG. 00 MIN.00 SEC.WEST,ALONG AND WITH THE NORTH LINE OF SAID CALLED 0.9786 ACRE TRACT,THE SOUTH LINE OF SAID CALLED 1.865 ACRE TRACT AND THE SOUTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 16.99 FEET TO THE POINT OF BEGINNING,CONTAINING 0.1296 ACRES MORE OR LESS. OF Ay-. 4%STEq�„O� jACK .EDWIN'MfAUT r..+,* 580 r•�. G�e%Ur� ffiv 8865 COLLEGE PHONE (409)860-7168 SUITE 200 FAX (409)860-7169 C/ BEAUMONT TEXAS E-mAm jmonechesengineers com 77707 EXHIBIT "A" SANTA FE RAILROAD EAST t67.00' 0 30 60 120 EAST 15.00' I \ 0.1296 ACRE EASMENT PLAT OF N B.I.S.D. -per \ 15' UTILITY EASEMENT p 1.865 ACRE TRACT -'o ACROSS N w to TRACT TWO yd 1.865 ACRE TRACT ^ CO M C.C.F. # 2005025845 IN THE m c') 3� JAMES DRAKE SURVEY, ABSTRACT No. 71 = I �oo \ \ JEFFERSON COUNTY, TEXAS FEBRUARY 2010 v 5 6 B.I.S.D. � 0.9786 ACRE TRACT i 6 TRACT ONE I C.C.F. # 2005025845 S 6z°00'00" W ' 16.99' , oo �I y�� ' ;�e#i► Il / JACK EQWIk MEA*UT / \ B.I.S.D. \ P.0. 8. 3.266 ACRE TRACT VOL. 1903, PC. 293 SCHAUMBURG&POLK,uvc. D.R. OF J.C., TY OWN)", InUS.DM, T„M ' z ^l d ` 6663 Cabp.&—w Be Tare�s77707 409.966D341 P-409.666D337 F EDWIN MEAUT DATE ` ® Cop^2010 EXAS REC16TERED PROFESSIOM4,IN+D SURVEYOR ND.5B00 yr F./BIAT/1076.3/BISD—I5—ESMT.DWG FIELD NOTE DESCRIPTION FOR A 15 FOOT UTILITY EASEMENT 15 FOOT UTILITY EASEMENT 0.0267 ACRES OUT OF A 0.9786 ACRE TRACT BEAUMONT INDEPENDENT SCHOOL DISTRICT JAMES DRAKE SURVEY,AB.71 JEFFERSON COUNTY,TEXAS BEAUMONT,TEXAS BEING A 15 FOOT UTILITY EASEMENT CONTAINING 0.0267 ACRES OF LAND,OUT OF THAT CERTAIN CALLED 0.9786 ACRE TRACT OF LAND,CALLED TRACT ONE,TO THE BEAUMONT INDEPENDENT SCHOOL DISTRICT,IN DEED RECORDED IN COUNTY CLERKS FILE OF JEFFERSON COUNTY,TEXAS(C.C.F.J.C.T.)#2005025845,BEING LOCATED IN THE JAMES DRAKE SURVEY,ABSTRACT 71,JEFFERSON COUNTY,TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID CALLED 0.9786 TRACT,BEING THE NORTHWEST CORNER OF THAT CERTAIN CALLED 0.687 ACRE TRACT OF LAND TO B.I.S.D. RECORDED IN VOLUME 1859,PAGE 245 OF THE DEED RECORDS OF JEFFERSON COUNTY, TEXAS(D.R.J.C.T.),ALSO BEING IN THE EAST RIGHT-OF-WAY LINE OF ST.HELENA STREET, AND BEING THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH,ALONG AND WITH THE EAST RIGHT-OF-WAY LINE OF SAID ST.HELENA STREET,THE WEST LINE OF SAID CALLED 09786 ACRE B.I.S.D.TRACT AND THE WEST LINE OF THE HEREIN DESCRIBED TRACT FOR A DISTANCE OF 76.42 FEET TO THE SOUTHWEST CORNER OF THAT CERTAIN CALLED 1.865 ACRE TRACT OF LAND,CALLED TRACT TWO,TO B.I.S.D.RECORDED IN C.C.F.J.C.T.#2005025845,BEING THE NORTHWEST CORNER OF SAID CALLED 0.9786 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH 62 DEG.00 MIN.00 SEC.EAST,ALONG AND WITH THE SOUTH LINE OF SAID CALLED 1.865 ACRE TRACT,THE NORTH LINE OF SAID CALLED 0.9786 ACRE TRACT AND THE NORTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 16.99 FEET TO THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH OVER AND ACROSS SAID CALLED 0.9786 ACRE TRACT AND WITH THE EAST LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 78.89 FEET TO THE NORTH LINE OF SAID CALLED 0.687 ACRE TRACT AND BEING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH 69 DEG.50 MIN.07 SEC.WEST,ALONG AND WITH THE NORTH LINE OF SAID CALLED 0.687 ACRE TRACT,THE SOUTH LINE OF SAID CALLED 0.9786 ACRE TRACT AND THE SOUTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.98 FEET TO THE POINT OF BEGINNING,CONTAINING 0.0267 ACRES MORE OR LESS. JACK EpWIN MF�1Ui • . . . . . . . . . . 5800 .¢4 Ecimmic SUS 8865 COLLEGE ! PHONE (409)860-7168 SUITE 200 FAX (409)860-7169 `r1 BEAUMONT TEXAS E-MAIL jm0nedw5engkmrs.com 77707 EXHIBIT 'C' B.I.S.D. 1.865 ACT TWOACT D 10 20 40 N I C.C.F. # 2005025,945 g6� ow I 325i goa- 0 0, Nq 0 E 0 B.LS.D. 0.9786 ACRE TRACT TRACT ONE N 62 000'00"E 16.99' C.C.F. # 2005025845 I 0.0267 ACRE EASMENT CO ti w � CO / X3 462'00� Go to C,4 Op ' of B.LS.D. T F, S 69°50'07" W 130' I 3.266 ACRE TRACT rt R F i50• w VOL. f903, PG. 293 yti�S .EO 15.98 /i 69.51 B.LS.D. � D.R. OF J.C., TX. JACK EDMnN MEAUT � 0.687 ACRE TRACT o • VOL. 1859, PG. 245 CQ 5600 IT P.O.B. D.R. OF J.C-, TX. RSU PLAT OF 15' UTILITY EASEMENT h N ACROSS o 0.9786 ACRE TRACT IN THE �SSCHAUMBURG 6 POLK,u�c. eFaEaaar• NOUSM• rdER Z_� �� JAMES DRAKE SURVEY, ABSTRACT No. 71 f mRa94trabw0FDOU5E0 JEFFERSON COUNTY, TEXAS 8685 CslsyeB eeL Beaump[7exea777W ZK—: UT 909.86 61301 F-408.8$80.337F D PROFESSIONN.MVID SURVEYOR N0.5800 �"'� FEBRUARY 2010 ® G° 2OtO F.-/BMT/1078.3/8150-15—ESMT.DWG FIELD NOTE DESCRIPTION FOR A 15 FOOT UTILITY EASEMENT 15 FOOT UTILITY EASEMENT 0.1789 ACRES OUT OF A 15.174 ACRE TRACT BEAUMONT INDEPENDENT SCHOOL DISTRICT JAMES DRAKE SURVEY,AB.71 JEFFERSON COUNTY,TEXAS BEAUMONT,TEXAS BEING A 15 FOOT UTILITY EASEMENT CONTAINING 0.1789 ACRES OF LAND,OUT OF THAT CERTAIN CALLED 15.174 ACRE TRACT OF LAND TO THE BEAUMONT INDEPENDENT SCHOOL DISTRICT,IN DEED RECORDED IN VOLUME 1862,PAGE 81 OF THE DEED RECORDS OF JEFFERSON COUNTY,TEXAS(D.R.J.C.T.),BEING LOCATED IN THE JAMES DRAKE SURVEY,ABSTRACT 71,JEFFERSON COUNTY,TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST INTERSECTION OF CALDWELL AVENUE AND ST. HELANA STREET,BEING THE SOUTHWEST CORNER OF SAID CALLED 15.174 ACRE B.LS.D. TRACT AND BEING THE SOUTHWEST CORNER AND THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH,ALONG AND WITH THE EAST RIGHT-OF-WAY LINE OF SAID ST.HELANA STREET,THE WEST LINE OF SAID CALLED 15.174 ACRE B.I.S.D.TRACT AND THE WEST LINE OF THE HEREIN DESCRIBED TRACT FOR A DISTANCE OF 519.70 FEET TO THE SOUTHWEST CORNER OF THAT CERTAIN CALLED 0.687 ACRE TRACT OF LAND TO B.LS.D.RECORDED IN VOLUME 1859,PAGE 245 OF THE DEED D.M.C.T.,BEING THE NORTHWEST CORNER OF SAID CALLED 15.174 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH 89 DEG.56 MIN.36 SEC.EAST,ALONG AND WITH THE SOUTH LINE OF SAID CALLED 0.687 ACRE TRACT,THE NORTH LINE OF SAID CALLED 15.174 ACRE TRACT AND THE NORTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.00 FEET TO THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT, THENCE,SOUTH OVER AND ACROSS SAID CALLED 15.174 ACRE TRACT AND THE EAST LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 519.70 FEET T'0 THE NORTH RIGHT-OF-WAY LINE OF SAID CALDWELL AVENUE,THE SOUTH LINE OF SAID CALLED 15.174 ACRE TRACT AND BEING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH 89 DEG.56 MIN.00 SEC.WEST,ALONG AND-WITH THE NORTH RIGHT-OF- WAY LINE OF SAID CALDWELL AVENUE,THE SOUTH LINE OF SAID CALLED 15.174 ACRE TRACT AND THE SOUTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.00 FEET TO THE POINT OF BEGINNING,CONTAINING 0.1789 ACRES MORE OR LESS. OF JACK EDWIN iAFAUT . . . . . . . . •,� 3600 '�5•�°.'fss%.- St! 8865 COLLEGE PHONE (409)860-7168 S Alwim UITE 200 FAX (409)860-7169 —Z 8EAUMONTTBCAS EMAIL jm @necheswVneers.com 77707 EXHIBIT "E" i I V I I B.r.S.D. B.f.s.D. I 0.687 ACRE TRACT 3.266 ACRE TRACT VOL. 185 PG. 245 VOL. 1903, PC. 293 9, D.R. OF J.C., TX. D.R. OF T.C., TX. N 89.56'36" E 129.97' N 89'56'36" E 799.31' N 89056'36"E 15.00' I 0. 1789 ACRE EASMENT E- ° t ' N "- 2 B.1.S.D. w— Lo Lo 15.174 ACRE TRACT VOL. 1862, PG. 81 I Q4 h D.R. OF J.C., T. f � � I 0 30 60 120 f I S 89056'00" W 15.00' P.0.B. S 89°56'00' W 1579.7'129.97' PLAT OF CALDWELL AVENUE (60' R.O.W.) 15' UTILITY EASEMENT ACROSS _ OF r 15. 174 ACRE TRACT y�'�6tST6gf IN THE ° JAMES DRAKE SURVEY, ABSTRACT No. 71 5AU JEFFERSON COUNTY, TEXAS r•i 5800 FEBRUARY 2010 SAW Q;0-73SCHAUMBURG&POLK,iNc WmAcw• HXXMN•7YlHi 88850o1pe 9n�tB�wnmLTmw 77707 408.668=341 P-40OBBOW37F ® CaprigM2010 - 41CK EOMN MEAUT TEXAS REGISTERED PROFESWRk tARO SURVEYOR N0. 5000 F:/t3MT/7078.3/8150-IS-ESMT.DWG EXHIBIT "F" i FIELD NOTE DESCRIPTION FOR A 15 FOOT UTILITY EASEMENT 15 FOOT UTILITY EASEMENT 0.0747 ACRES OUT OF A 0.687 ACRE TRACT BEAUMONT INDEPENDENT SCHOOL DISTRICT JAMES DRAKE SURVEY,AB.71 JEFFERSON COUNTY,TEXAS BEAUMONT,TEXAS BEING A 15 FOOT UTILITY EASEMENT CONTAINING 0.0747 ACRES OF LAND,OUT OF THAT CERTAIN CALLED 0.687 ACRE TRACT OF LAND TO THE BEAUMONT INDEPENDENT SCHOOL DISTRICT,IN DEED RECORDED IN VOLUME 1859,PAGE 245 OF THE DEED RECORDS OF JEFFERSON COUNTY,TEXAS(D.RJ.C.T.),BEING LOCATED IN THE JAMES DRAKE SURVEY,ABSTRACT 71,JEFFERSON COUNTY,TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID CALLED 0.687 TRACT,BEING THE NORTHWEST CORNER OF THAT CERTAIN CALLED 15.174 ACRE TRACT OF LAND TO B.I.S.D. RECORDED IN VOLUME 1862,PAGE 81 OF THE SAID D.R.J.C.T.AND ALSO BEING IN THE EAST RIGHT-OF-WAY LINE OF ST.HELENA STREET,AND BEING THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH,ALONG AND WITH THE EAST RIGHT-OF-WAX LINE OF SAID ST.HELANA STREET,THE WEST LINE OF SAID CALLED 0.687 ACRE B.I.S.D.TRACT AND THE WEST LINE OF THE HEREIN DESCRIBED TRACT FOR A DISTANCE OF 21425 FEET TO THE SOUTHWEST CORNER OF THAT CERTAIN CALLED 0.9786 ACRE TRACT OF LAND TO B.I.S.D.RECORDED IN COUNTY CLERKS FILE OF JEFFERSON COUNTY,TEXAS(C.C.F-T.C.T.)#2005025845,BEING IN THE WEST RIGHT-OF-WAY LINE OF SAID ST.HELENA STREET,BEING THE NORTHWEST CORNER OF SAID CALLED 0.687 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH 69 DEG.51 MIN.50 SEC.EAST,ALONG AND WITH THE SOUTH LINE OF SAID CALLED 0.9786 ACRE TRACT,THE NORTH LINE OF SAID CALLED 0.687 ACRE TRACT AND THE NORTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.98 FEET TO THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH OVER AND ACROSS SAID CALLED 0.687 ACRE TRACT AND WITH THE EAST LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 219.77 FEET TO THE NORTH LINE OF SAID CALLED 15.174 ACRE TRACT AND BEING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH 89 DEG.56 MIN.36 SEC.WEST,ALONG AND WITH THE NORTH LINE OF SAID CALLED 15.174 ACRE TRACT,THE SOUTH LINE OF SAID CALLED 0.687 ACRE TRACT AND THE SOUTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.00 FEET TO THE POINT OF BEGINNING,CONTAINING 0.0747 ACRES MORE OR LESS. OF r `si ii o. JACK EDWIN MEAUT .!.� .rte.� •' . �iT.•ofifSs% *Aa G 5uft4li- �7 8865 COLLEGE PROW (409)860-7168 SUITE 200 I FAX (409)860-7169 BEAUMONT TEXAS E-mAiL jm@nechesengineers.com Z �� "" ' 7T707 EXHIBIT G, 0.9786 ACRE TRACT TRACT ONE � I C.C.F. # 2005025845 � I `}6200 007. W �g00 al I /69 5' 60 E 69 I I I N 69°51'50"E 15.98' I i I I 0.0747 ACRE EASMENT I cti RLS.D. 0.687 ACRE TRACT cQ E ^ of VOL. 1859, PC. 245 o W N D.R. OF J C., TX. to a 420 �v f � I I � I I i S 89956'36"W I 15.00' _ _S 89°56'36° W 129.97' I B.I.S.D. 15.174 ACRE TRACT VOL. 1862, PC. 81 D 15 30 60 D.R. OF J.C., T. PLAT OF 15' UTILITY EASEMENT ACROSS C r 0.0687 ACRE TRACT ��.&,STtj.cO IN THE � y• �.�,, • JAMES DRAKE SURVEY, ABSTRACT No. 71 :uu:1i Eow 1��wr JEFFERSON COUNTY, TEXAS •<• 5809 •F.4 FEBRUARY 2010 �q.•Ortss��'.to I MZWZSCHAUMBURG&POLK,nvc 86ALWOvr•HOLWON•TYLER Firm R.Y"Mw R F000920 888900E 9mt 8.40&9 L Tors 77707 40BBBBD3A/P.40S1i88f13:T7 F EDMIN MFAUT GATE TEXAS REOWERED PROFESSIONAL UND SURVEYOR NO.9P— EXHIBIT "H" F:/8NT/tO78.3/BISD-15—ESAR.OWC B RICH WITH OPPORTUNITY BEAUMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager PREPARED BY: Tom Warner,Director of Public Works MEETING DATE: June 15,2010 REQUESTED ACTION: Council consider a resolution authorizing the execution of a License to Encroach Agreement with Entergy at 1270 West Cardinal Drive. RECOMMENDATION Administration recommends authorization to execute a License to Encroach Agreement with Entergy for the installation of a power line into a City of Beaumont water line easement located at 1270 West Cardinal Drive. BACKGROUND Entergy proposes to install a power line one(1) foot into the City of Beaumont's ten(10)foot water line easement located at 1270 West Cardinal Drive. The power line will serve the new Islamic Center at Cardinal and Avenue A. The License Agreement protects the City from liability and provides a thirty(30)day cancellation clause. BUDGETARYIMPACT There is a one time fee of$500 for the License to Encroach. \engentergy-ib 8 June 2010 COMMENTS FROM DEPARTMENTS AND/OR UTILITY COMPANIES FOR LICENSE TO ENCROACH APPLICATION PROPERTY DESCRIPTION: A power line, one foot (1') into the City's ten foot (10') waterline easement for a distance of two hundred fifty feet (250') on the southwest property line of Lots 102 and 103 of the Gladys City Oil, Gas Manufacturing Co. Addition(1270 W. Cardinal Drive). APPLICANT: ENTERGY DATE OF DISTRIBUTION: May 19, 2010 DUE: May 31,2010 1) Joris P. Colbert, City Engineer Date Received: 5-24-2010 Acceptance and Approval. 2) Luke Stevens, Streets & Drainage Superintendent Date Received: N/A 3) Jack Maddox, Fire Marshall Date Received: N/A 4) Hani Tohme, Water Utilities Date Received: 5-25-2010 Acceptance and Approval.The City has an existing water main within the vicinity of this property. According to the water map, we have a six (6) inch water main located within the ten (10) foot exclusive water line easement. 5) Stephen Richardson,Planning Manager Date Received: N/A 6) Mark Horelica, Transportation Manager Date Received: N/A 7) Patrick Sam, CenterPoint Energy Entex Date Received: N/A 8) Jeffrey Richard, Entergy[Applicant] Date Received: N/A 9) Cliff Moore, AT&T Date Received: N/A 10) Richard Le Blanc, D.D.#6 Date Received: N/A 11) Tyrone Cooper, Legal Department Date Received: 6-7-2010 Acceptance and Approval. comments summary-entergy 1270 u/. Gar�liaa/ fir. l I• v' I •to� w.��r�� .._..J Gr/. Car�inQ l Dr. Applieation for Lieense to Eneroseh City of Beaumont, Texas 1. NAME OF APPLICANT: ENT A5R G Y TG 3f AS ADDRESS: 4p^/i/ eUA>AM PHONE: yp9-71rS- i�.2 b� 2. AUTHORITY OF APPLICANT: 3. NAME OF OWNER: .ss14m,,c. ADDRESS: lo?70 !•r/. CQ.�/,,;,�Or PHONE: LEGAL DESCRIPTION OF OWNER'S PROPERTY(Lots, Blocks, Subdivision) TO BE SERVED BY EASEMENT OR RIGHT-OF-WAY: y.Zb�3 AGr, tro .f' e� ea�o{r' 4«0� Perk . Lic !i,? f X03 of t4* � � �• 4! �ecer� $4�v�sis., Qece.+c►'S l/e� /, P� SS Ts�'�'e�s�e Ciaa�y TX. 4. DESCRIPTION OF EASEMENT OR RIGHT-OF-WAY INVOLVED: lO k/a/ei 64#Se'MrC..7 Q4.1> Siu f we,it Oror��y �1•� e. 5. PRESENT USE OF EASEMENT OR RIGHT-OF-WAY (List Utilities if Present): 6. USE //OF EASEMENT OR RIGHT-OF-WAY DESIRED BY OWNER: Ei e/och w�� P ✓er 1,•,,e, IDNet Foil o f p 7. ATTACH A MAP OR PLAT DELINEATING THE EASEMENT OR PUBLIC RIGHT- OF-WAY (Dimensioned and to Engineering Scale). PLEASE INCLUDE ALL PERTINENT INFORMATION ON THE MAP: i. Distances from edge of pavement or back of curb ii. Street names and nearest cross streets Side of the street [east, west, north, south] 8. COST TO BE PAID FOR LICENSE TO ENCROACH AT TIME APPLICATION S SUBMITTED— $500 SAID COST BEING NON-REFUNDABLE. TO THE BEST OF MY KNOWLEDGE, THE ABOVE INFORMATION IS TRUE AND CORRECT. SIGNATURE RESOLUTION NO. WHEREAS, Entergy Texas has requested that the City of Beaumont grant a License to Encroach for installation of a power line one foot (1') into a ten foot (10') water line easement for a distance of two hundred fifty feet(250')on the southwest property line of Lots 102 and 103 of the Gladys City Oil, Gas Manufacturing Co. Addition (1270 W. Cardinal Drive), as shown on Exhibit "A" attached hereto and made a part hereof for all purposes; and, WHEREAS, City staff has expended considerable time and effort in investigating the effect of such encroachments upon the City right-of-way and utilities serving the same; and, WHEREAS, it appears that it would be equitable to allow such encroachment at this time; 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 a License to Encroach for installation of a power line one foot (1') into a ten foot (10') water line easement for a distance of two hundred fifty feet(250') on the southwest property line of Lots 102 and 103 of the Gladys City Oil, Gas Manufacturing Co.Addition (1270 W.Cardinal Drive),as shown on Exhibit "A" attached hereto and made a part hereof for all purposes, to Entergy Texas for a one-time fee of Five Hundred Dollars ($500.00). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - Q50/74594-A 0 45 --035 � BC °P 8Q. 1j `\`O ° 1170 G/. \v ap,3 100/56422-A Q a G __ �� SBA 5 JJAA 1 1974 ; ;U85= 5a o N(100) (�I HFS N I hp ro� O C+i %d1i.85_ • j _.�o �� P 40 c A50/3008800-A 45-2,,- HFS '040 Entergy Texas 4014 V L� 8738.'2 �. 10/12/09 c RICH WITH OPPORTUNITY BEAUMDN* City Council Agenda Item T • E • R • A • S TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider a resolution accepting the Magnolia Avenue Drainage and Pavement Improvement Project(Gill Street). RECOMMENDATION The Administration recommends acceptance of the Magnolia Avenue Drainage and Pavement Improvement Project(Gill Street), approval of Change Order No. 1 in the amount of ($58,112.06) and final payment in the amount of$87,247.53 to Excavators and Constructors, Ltd. BACKGROUND On June 16, 2009, City Council awarded Excavators and Constructors, Ltd. the contract for the Magnolia Avenue Drainage and Pavement Improvement Project(Gill Street) for an amount of $1•;803,062.60. This project has been inspected and completed in accordance with the Terms and Conditions set out in the contract documents. Change Order No. 1 in the amount of($58,112.06)is required to adjust the quantities actually used during the performance of the project, decreasing the contract amount to $1,744,950.54. The MBE goal was met by subcontracting with the MBE firms of American Remediation,Speciality Sales Co.and Highway Pavement Specialties,Inc.in the amount of$369,855.69 representing 21.2% of the final contract amount. BUDGETARYIMPACT Funds are available through the Capital Program. C C CITY OF BEAMMONT , C SCHEDULE OF IMBE Pr,RTICIPPATiON k n c i!IAYIE C3 CERTIFIED jVME CONTRACTOR ADDRESS TYPE OF WORK AGREED PRICE PO, x 2/#L32 CS jam ;?77-7ge2 ,- .351 1.31 1 a v ��/C/�jt✓�'flj'�S/o��i'®l4� /"`�i �i{' 0�� Chi C W 0 0 Ln The undersigned will enter into a formal agreementwith IVIBE Contractors forwork listed in this schedule cpnditionedupon execution of a contract Iz with the City of Beaumont. 0 i N NOTE: 1. This schedule should be submitted with your bid r Sl r'1 TITLE D a) M - 5- m N M 63 CITY OF BEAUMONT !1 E: June 3,2010 PROJECT: Magnolia Avenue Drainage And Pavement Improvement(Gill St.) OWNER: City of Beaumont CONTRACTOR: EXCAVATORS&CONSTRUCTORS,LTD. CHANGE ORDER NO.: 1&FINAL Adjusting the estimated quantities to match final quantities used during the performance of the project. r of ORIGINAL CONTRACT AMOUNT: $1,803,062.60 NET FROM PREVIOUS CHANGE ORDER: $1,803,062.60 TOTAL AMOUNT OF THIS CHANGE ORDER: ($58,112.06) PERCENT OF THIS CHANGE ORDER: (3.22%) OTAL PERCENT CHANGE ORDER TO DATE: (3,22%) CONTRACT AMOUNT: $1,744,950.54 ACCE E BY: CONTRACTO APPROVED BY: JORIS P.COLBERT,CITY ENGINEER TOM WARNER,DIRECTOR OF PUBLIC WORKS KYLE HAYES,CITY MANAGER 1110ED BY: 'RWRA BROUSSARD,CITY CLERK RESOLUTION NO. WHEREAS, on June 16, 2009, the City Council of the City of Beaumont, Texas, passed Resolution No. 09-178 awarding a contract in the amount of $1,803,062.60 to Excavators and Constructors, Ltd., for the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street); WHEREAS,Change Order No. 1 in the amount of($58,112.06)is required to adjust the quantities actually used during the performance of the project, thereby decreasing the contract amount to $1,744,950.54; 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($58,112.06), thereby decreasing the contract amount to $1,744,950.54. BE IT FURTHER RESOLVED THAT the Magnolia Avenue Drainage and Pavement Improvement Project (Gill Street) 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$87,247.53 to Excavators and Constructors, Ltd. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. Mayor Becky Ames - I D RICH WITH OPPORTUNITY BEAUM,ON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: June 15, 2010 REQUESTED ACTION: Consider a resolution authorizing the settlement of the City of Beaumont's property damage claim in the lawsuit styled Jay Brocato and wife, Valerie Brocato, Individually and as Next Friends of Macy Brocato, a Minor v. The City of Beaumont, Texas RECOMMENDATION Administration recommends approval of a resolution authorizing the settlement of the City of Beaumont's property damage claim in the lawsuit styled Jay Brocato and wife Valerie Brocato, Individually and as Next Friends of Macy Brocato, a Minor v. The City of Beaumont, Texas in the amount of$14,542.07. BACKGROUND Allstate Insurance Company has agreed to pay the City's property damage. Ms. Brocato has brought a claim against the City for her personal injury. The proposed settlement will not resolve Ms. Brocato's claim. This matter was most recently presented and discussed in Executive Session held on June 8, 2010. The City Attorney is requesting authority to settle the property damage claim only for the $14,542.07 amount. BUDGETARYIMPACT The funds will be deposited into the Fleet Miscellaneous Revenue Account. RESOLUTION NO. WHEREAS, the City of Beaumont's property damage claim, made a part of the lawsuit styled Jay Brocato and wife Valerie Brocato Individually and as Next Friends of Macy Brocato a Minor v. The City of Beaumont, Texas, was discussed in Executive Session properly called and held Tuesday, June 8, 2010; and, WHEREAS, the Council desires to authorize the settlement of the City of Beaumont's property damage claim only in the lawsuit styled Jay Brocato and wife Valerie Brocato Individually and as Next Friends of Macy Brocato, a Minor v. The City of Beaumont, Texas; 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 City of Beaumont's property damage claim, made a part of the lawsuit styled Jay Brocato and wife Valerie Brocato Individually and as Next Friends of Macy Brocato, a Minor v. The City of Beaumont, Texas, by accepting the sum of Fourteen Thousand Five Hundred Forty-Two and 07/100 Dollars ($14,542.07). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - E 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: June 15, 2010 REQUESTED ACTION: Council consider approval of a contract for emergency catering services. RECOMMENDATION The Administration recommends the award of a contract to High Sendero, Inc., of Beaumont and Arkel Besh of Baton Rouge,Louisiana to provide emergency catering services. BACKGROUND The City of Beaumont's Emergency Preparedness Plan identified the need for catering services in the event of a natural disaster or all-hazards disaster. Emergency catering services were requested for essential employees that provide services during the evacuation process. The contract will provide three meals a day,which will include breakfast, lunch and dinner. There is an option for an additional serving time for those working the late evening shift. The vendor will provide all labor, equipment, food, condiments, disposable dinnerware and beverage supplies. Vendors were requested to provide pricing per meal and provide menus for each meal to be served during the emergency event. Bids were solicited from eighteen(18)vendors and three(3)responses were received. International Management Assistance Corporation(IMAC) of Cleveland, OH did not meet specifications and was disqualified from evaluation. A panel of various City employees who serve on the Logistics Team during a hurricane or an all- hazards event met and evaluated the vendors utilizing the scoring method provided in the Request for Proposal. It was determined that the award of this contract should be split into two awards. In the event an evacuation is required prior to a hurricane,the contract for meals will be issued to High Sendero, Inc. This contract will commence approximately seventy-two (72)hours prior to the hurricane's expected land fall and end approximately twenty-four(24)hours prior to an expected landfall. Page 2 June 15, 2010 Emergency Catering Services The contract for meals served for other emergency events or within twenty-four(24)hours after the storm has passed and is downgraded to a tropical storm will be issued to Arkel Besh. Copies of pricing per meal and evaluation sheets of vendors are attached. BUDGETARYIMPACT The budgetary impact of this contract is contingent upon the occurrence of a declared emergency. RFP Name: EMERGENCY SERVICES-CATERING RFP Number: PF7010-03 RFP Opening: 5/27/2010 Contact Person: Patrick Bardwell pbardwel[ Oci.beaumont.tx.us Phone: 409-880-3175 Section I: Meals served prior to Tropical Storm Event (72 to 24 Hours prior to storm) Vendor High Sendero Inc Arkel Besh International Management City / State Beaumont, TX Baton Rouge, LA IStrongsville, OH Description Price per meal Price per meal Price per meal Breakfast 100- 300 Meals $9.00 $8.20 $40.89 301 - 500 Meals $9.00 $7.95 $23.95 Lunch 100 - 300 Meals $13.00 $11.25 $61.34 301 - 500 Meals $13.00 $10.75 $35.92 Dinner 100 - 300 Meals $18.00 $14.50 $102.23 301 - 500 Meals $18.00 $13.25 $59.87 * Does not meet specifications Provided menu yes no yes Additional Charges by Vendor Mobilization charge $4,861.00 Tent rental with equipment per day $1,889.00 Minimum one week tent rental yes Emergency Services - Catering PF1010-03 Page 2 Section II: Meals served within twenty-four(24) hours after the downgrade to a Tropical Storm or Emergency Event Vendor High Sendero Inc Arkel Besh International Management City / State Beaumont, TX Baton Rouge, LA iStrongsville, OH Description Price per meal Price per meal Price per meal Breakfast 200 - 400 Meals $9.00 $6.20 $29.59 401 - 600 Meals $9.00 $5.95 $20.56 601 - 800 Meals $9.00 $5.45 $16.68 Lunch 200 - 400 Meals $13.00 $9.25 $44.39 401 - 600 Meals $13.00 $8.75 $30.83 601 - 800 Meals $13.00 $8.00 $25.02 Dinner 200 - 400 Meals $18.00 $12.50 $73.99 401 - 600 Meals $18.00 $11.25 S 51.39 601 - 800 Meals $18.00 $10.50 $41.71 Optional Sandwich type meal 50 - 150 Meals $15.00 $10.25 $11.22 Unit price per day Unit price per day Unit price per day Air conditioned Tent, suppli es $600.001 $1,889.001 $1,142.86 * Does not meet specifications Provided ten (10) menus per meal yes yes yes Additional charges by vendor Mobilization charge $4,861.00 Minimum one week tent rental yes Tent rental only if needed yes Criteria Evaluation for Emergency Services-Catering RFP Number: PF1010-03 RFP opening date: 5272010 Table 1 Meals served prior to Tropical Storm Event Vendor Vendor Crileria Meodmuro High Sandero Arkel Mesh Points Beaummont, TX Baton kouge,LA of Contractor 40 35 35 Price 35 34 27 Menu Selection 1 25 1 22 15 Total Pointe 1 100 1 91 78 Table 2 Meals served within twenty-four(24)hours of the downgrade to a Tropical Storm or Emergency Event Vendor Vendor Criteria Mm&mm KO Sendero Arkel Besh Points Beaumont, TX Baton R , lA of Conitractor 40 32 37 Price 35 30 34 Menu Selec lion 25 1 20 1 23 Total Points 1 100 82 94 RESOLUTION NO. WHEREAS, bids were solicited for contracts for catering services in the event of a natural disaster or all-hazards disaster; and, WHEREAS, High Sendero, Inc., of Beaumont and Arkel Besh of Baton Rouge, Louisiana, submitted bids in the amounts shown below: Section I-Meals served prior to tropical storm event(72 to 24 hours prior to storm): High Sendero, Inc. Beaumont, Texas DESCRIPTION Price Per Meal Breakfast 100-300 Meals $9.00 301-500 Meals $9.00 Lunch 100-300 Meals $13.00 301-500 Meals $13.00 Dinner 100-300 Meals $18.00 301-500 Meals $18.00 Provide menu yes I Section fl: Meals served within twenty-four (24) hours after the downgrade to a tropical storm or emgMncy event. Arkel Bosh Baton Rouge, LA DESCRIPTION Price Per Meal Breakfast 200-400 Meals $6.20 401-600 Meals $5.95 601-800 Meals $5.45 Lunch 200-400 Meals $9.25 401-600 Meals $8.75 601-800 Meals $8.00 Dinner 200-400 Meals $12.50 401-600 Meals $11.25 601-800 Meals $10.50 Optional Sandwich Type Meal 50-100 Meals $10.25 Unit Price Per Day Air conditioned tent, supplies $1,889.00 Provide ten (10) menus per meal yes Additional Charges by Vendor Mobilization Charge $4,861.00 Minimum one week tent rental yes and, WHEREAS, City Council is of the opinion that the bids submitted by High Sendero, Inc., and Arkel Besh should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bids submitted by High Sendero, Inc., and Arkel Besh, in the amounts shown above, for contracts for catering services in the event of a natural disaster or all-hazards 'I disaster be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - RICH WITH OPPORTUNITY BE-AUMON* T • E ,• X • A • S Ci Council A ends Item tY g TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 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$64,220. 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$494 per ton. The price for the previous six(6)months was $544 per ton. Bids were requested from five (5)vendors and two (2)responses were received. Bid tabulation is as follows: VENDOR TONS PRICE/TON TOTAL Altivia Corporation 130 $494 $64,220 Houston, TX DXI Industries 130 $518 $67,340 Houston, TX BUDGETARYIMPACT 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$64,220 in the unit amounts shown below: TONS PRICE /TON TOTAL 130 $494 $64,220 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 a six(6)month contract for the purchase of liquid chlorine in the unit prices shown above for an estimated total expenditure of$64,220 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - RICH WITH OPPORTUNITY IIEA,UMON* T • E • S • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS JUNE 15,2010 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition: * Public Comment: Persons may speak on scheduled agenda items 1-6/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider approving the City of Beaumont Investment Policy 2. Consider authorizing an interlocal agreement with the City of Pearland,Texas for the purchase of a remittance processing system 3. Consider approving a contract for asphaltic concrete to be used by the Public Works Department 4. Consider amending Chapter 10, Section 10-3 of the City Code of Ordinances regarding Fire Service Fees 5. Consider amending Section 13-16 of the Code of Ordinances establishing health fees 6. Consider amending Chapter 20,Article H, Section 20-21 of the Code of Ordinances establishing rental rates for city-owned event facilities 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: Claim of Freddy and Lisa Nolan Lewallen v. City of Beaumont Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. 1 June 15,2010 Consider approving the City of Beaumont Investment Policy 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'p " MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider a resolution approving the City of Beaumont Investment Policy. RECOMMENDATION The Administration requests a review of the City of Beaumont Investment Policy and approval as attached. BACKGROUND State law mandates the City Council review the Investment Policy and approve modifications, if any,to the policy on an annual basis. In April 2009,the City Council approved entering into an agreement with Valley View Consulting, LLC, for investment management services. As part of the contract, Valley View consultants have performed an annual review of the City's investment policy and have recommended modifications to it. The recommended revisions, mostly clarifying in nature, are highlighted in the attached policy. The Investment Policy was last amended on June 16, 2009. BUDGETARYIMPACT None. City of Beaumont RICH WITH OPPORTUNITY BEAUMON* T • 19 • X • A • S Investment Policy Adopted Resolution of City Council on June ,2010, Deleted:16 Deleted:09 City of Beaumont-Investment Policy Table of Contents I. Introduction................................................................................................................1 II. Scope............................................................................................................................1 III. Prudence.....................................................................................................................1 IV. Objectives....................................................................................................................1 A. Safety of Principal..........................................................................................2 B. Liquidity..........................................................................................................2 C. Yield................................................................................................................2 V. Delegation of Authority.............................................................................................2 VI. Ethics and Conflicts of Interest................................................................................3 VII. Training......................................................................................................................3 VIII. Selection of Financial Dealers,Institutions and Investments Pools .....................3 A. Broker/Dealers...............................................................................................4 B. Public Depositories.........................................................................................4 C. Investment Pools............................................................................................5 IX. Authorized and Suitable Investments......................................................................5 X. Marking to Market....................................................................................................7 XI. Collateralization.........................................................................................................7 XII. Safekeeping and Custody..........................................................................................8 XIII. Diversification............................................................................................................8 XIV. Investment Strategies................................................................................................9 ii A. Pooled Fund Groups ....................................................................................10 B. Debt Service Funds ......................................................................................11 C. Debt Service Reserve Funds........................................................................12 XV. Internal Control.....................................................................................................12 XVI. Performance Standards........................................................................................13 XVII. Reporting..............................................,,.................................................................13 XVIII. Investment Policy Adoption..................................................................................13 Exhibits Exhibit A-Approved List Broker/Dealers...........................................................................15 Exhibit B-Certification By Business Organization ...........................................................16 iii City of Beaumont Investment Policy I. Introduction t is the policy of the City of Beaumont to invest public funds in a manner that will ensure that the investments are duly authorized, properly managed, adequately `?. protected and fully collateralized. The City shall seek the optimum investment return `'� Meted:which with the maximum security while meeting daily cash needs and conforming to the City Charter, the Public Funds Investment Act (Chapter 2256, Government Code as Fonnetted:Font:12 pt amended) and all other state and local statutes governing the investment of public Formatted:Font:12 pt funds. Il. Scope This Investment Policy applies to all financial assets of the City as accounted for in the City's Comprehensive Annual Financial Report. These include General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Fiduciary Funds. All are pooled for investment purposes except debt service and debt service reserve funds. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care,under prevailing circumstances,that a person of prudence,discretion,and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The"prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent with this investment olicy-._..___-- ------ Deleted:i Investment Officers acting in accordance with written procedures and the Investment Policy and exercising due diligence shall be relieved of responsibility for an individual Deleted:p security's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the City's investment activities shall be preservation and safety of principal,liquidity,yield and public trust. 1 A. Safety of principal The City has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order to eliminate an over-concentration of assets in one institution,maturity or type of investment,_ —_ B. Liquidi1y Deleted:security The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements t might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with f forecasted cash flow requirements and limited by investments with an active Deleted:which secondary market or convertible to cash little or no penalty. Deleted:in securities ,C. Public Trust Investment Officers shall seek to act responsibly as custodians of the public trust. \\ Foneatted:Indent:Hanging: � Investment Officers shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. Deleted:n P---Yield --- — –.-. -- — a The City's investment portfolio shall be designed with the objective of attaining a Deleted:C rate of return Jhat is consistent with risk limitations and cash flow characteristics of the City's investments. — Deleted:which V. Delegation of Authori ty Deleted: - Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds,investments,bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this Investment Policy ,that include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of Deleted:which subordinate officials. The City Manager, the Chief Financial Officer, and the City Controller are currently approved as Investment Officers of the City. Each Investment Officer shall be 2 approved by resolution of City Council to invest the City's funds. Such approval of specific persons shall remain in effect until rescinded by the City Council or until termination of the person's employment by the City. Investment Officers shall not deposit, withdraw, transfer or manage the funds of the City in a manner that is not consistent with the"prudent person"standard as described in section III of this Policy. The City Council maintains the right to hire Investment Advisers to assist City staff in the investment of funds. Investment Advisers shall adhere to the spirit, philosophy and specific terms of this Policy and shall invest within the same objectives. The City Manager shall establish criteria to evaluate Investment Advisers,including: 1. Adherence to the City's policies and strategies; 2. Investment strategy recommendations within accepted risk constraints; 3. Responsiveness to the City's request for services and information; 4. Understanding of the inherent fiduciary responsibility of investing public funds;and 5. Similarity in philosophy and strategy with the City's objectives. Selected Investment Advisers must be registered under the Investment Advisers Act of 1940 or with the State Securities Board. A contract with an Investment Adviser may not be for a term longer than two years and any contract, renewal or extension Deleted:o must be approved by the City Council. VI. Ethics and Conflicts of Interest Investment Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment Officers shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City. They shall also disclose any specific individuals who seek to sell investments to the City and are related to the Investment Officer within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council. VII. Training In order to ensure qualified and capable investment management, each Investment Officer shall attend at least ten 10 hours of training relating to investment responsibilities within 12 months after assuming such duties and shall continue to Deleted:of the city attend an investment training session consisting of at least ten(10)hours of instruction not less than once every two years thereafter, Training shall be in accordance with the / Deleted: consisting of at least ten(l0)hours of instruction 3 Public Funds Investment Act and include education in investment controls, security risks, strategy risks, market risks, and compliance with Sjate statutes governing the investment of public funds. All training shall be conducted by an independent source Pat has been approved by City Council. The approved "independent sources" to Deleted:s provide such training are: the Government Treasurers Organization of Texas, the Government Finance Officers Association, the Government Finance Officers Deleted:whion Association of Texas,the Texas Municipal League,and the University of North Texas. VIII. Selection of Broker/Dealers,Financial Institutions and Investment Pools Authorized investments shall only be purchased from those institutions selected and approved in accordance with this Policyti _ __ _ Any business organization which seeks to execute investment transactions with the City Deleted: shall provide a written instrument certifying that they have received and thoroughly reviewed the City's Investment Policy and have implemented reasonable procedures and controls in an effort to preclude investment transactions that are not authorized by this Policy. The certification,as shown by example in Exhibit B, must be signed by a qualified representative of the business organization. Investment Officers shall not buy any securities from a firm or make deposits with a fund, pool or financial institution ghat has not filed this instrument. Each time City Council approves a material revision to the Investment Policy, the certification should be sent to the approved business organizations along with the newly revised Investment Policy. Deleted:which A. Broker/Dealers The City shall select broker/dealers by their ability to provide effective market access and may include "Primary Government Securities Dealers" or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the Financial Industry Re lato Authori "FINRA" ,and be licensed by the State of Texas. Each broker/dealer will be reviewed by Investment Officers and a recommendation made for approval by City Council. Deleted:stitution An"approved broker/dealer list", as shown in Exhibit A, shall be maintained by the Investment Officers at all times and reviewed by the City Council on an annual basis. The City shall not enter into transactions with a broker/dealer until official City Council approval. B. Public Depositories/Financial Institutions 4 The City Council shall select a primary depository as required by law. The primary depository as authorized by the City Council shall meet all requirements of the state law concerning depositories for municipal funds (Chapter 105, Government Code). The primary depository shall be selected through the City's banking services procurement process, including a formal Request for Proposal (RFP) issued in compliance with applicable State law, and offers the most favorable terms and conditions for the handling of City funds. The City may also establish agreements with other financial institutions under separate contract for additional services$hat are necessary in the administration, collection, investment, and transfer of municipal funds. Such deposits will only be made after the financial institution has completed and returned the required (1eleted:which written instruments and depository pledge agreements. No deposit shall be made except in a qualified public depository as established by State Law. C. Investment Pools Investment Officers may invest funds of the City through an eligible investment pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular $hat contains specific and detailed information, investment transaction confirmations, and detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing Deleted:which participants and non-participants who do not have a business relationship with the pool. Before selection, pools shall be thoroughly reviewed and evaluated by Investment Officers. IX. Authorized and Suitable Investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. Suitable investments for the City are limited to the following: 5 az) Direct Obligations of the United States or its agencies and instrumentalities' at have a maximum stated maturity date of 5 years or less. Federal agencies and instrumentalities Jhat do not carry the explicit U.S. Government guarantee must Deleted:which be continuously rated no lower than AAA/A-1 or an equivalent rating by at least one nationally recognized rating agency. Deleted:which z-) Financial institution deposits placed with approved banks as described above (section VIII-B) which have a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit Insurance Corporation,or their successors; or secured as described in section XI Collateralization. Additionally, the City may execute certificates of deposit through a depository institution that has its main office or a branch office in Texas that participates in the Certificate of Deposit Account Registry Service (CDARS), or similar program, and meets the requirements of Section 2256.009(b). Bz) Fully collateralized direct repurchase agreements with a defined termination date of 90 days or less which are secured by obligations of the United States or its agencies and instrumentalities and pledged with a third party other than an agent for the pledgor. Investment Officers may invest in repurchase agreements through an approved primary government securities dealer or an approved depository bank as described above (section VIII-A, B). Each issuer of repurchase agreements shall be required to sign a master repurchase agreement. For flexible repurchase agreements executed with bond proceeds, the defined termination date of 90 days or less may be waived to allow the term of the flexible repurchase agreement to more closely match the expected term of the bond project. Lro No load money market mutual funds registered with and regulated by the Securities and Exchange Commissiork whose investment objectives include the maintenance of a stable net asset value of$1 per share. Money market mutual funds must maintain a AAAm, or equivalent rating from at least one nationally Deleted: with a dollar weighted average stated maturity of 90 days or less whose assets recognized rating agency; and provide the City with a prospectus and other consist exclusively of direct obligations of the information required by the Securities and Exchange Act of 1934 and be United States and specifically approved by City Council or purchased through the City's primary depository as an overnight investment tool. The City may not own more than 10%of the money market mutual fund's total assets. Bz:� Approved investment pools as described above (section VIII-C) which are continuously rated no lower than AAA,AAA-m or an equivalent rating by at least one nationally recognized rating agency. Investments Not Authorized -The following nvestments are not authorized under this Center,Relative centered,Margin on:Horizontal: g Center,Relative to:Margin section: 6 a. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pay no principal; b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; c. Collateralized mortgage obligations that have a stated final maturity date of greater than ten years;and d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. The City is not required to liquidate investments that were authorized investments at the time of purchase. The purchase of stock is not an authorized investment for municipal governments. However, stock may be accepted as a donation, provided that it is held in accordance with the terms of the donation and sold as soon as it is advantageous to do so. Reinvestment of proceeds must be in accordance with authorized and suitable investments for the City as listed above. X. Marking to Market All securities and certificates of deposit will be purchased or sold after at least three(3) offers or bids are taken to verify that the City is receiving a fair market value or price for the investment. The market value shall continue to be monitored at least quarterly through on-line investment software to which the City subscribes, the Wall Street Journal, or some other independent market pricing source. The City shall not obtain market pricing from business organizations who may engage in investment transactions with the City. XI. Collateralization Collateralization will be required on all deposits,certificates of deposit and repurchase agreements. With the exception of deposits secured with irrevocable letters of credit at 100% of amount, the collateralization level shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or investment including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the collateral pledged clearly listed in the agreement. i Collateral shall be reviewed monthly to assure that the market value of the securities a uals or exceeds the related deposit or investment balance. Center,Relative Centered,Margin on:Horizontal: pledged q 1� Center,Relative to:Margin 7 Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: Bz3 Direct obligations of the United States or its agencies and instrumentalities. Direct obligations of this state or its agencies and instrumentalities. Bz3 Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States and excluding those mortgage backed securities considered a high-risk mortgage security as described by Section 2257.0025 of the Government Code as well as those of the nature described by section 2256.009(b)of the Government Code. B0 Other obligations t are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. Deleted:which Bz3, Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. az) Letters of credit issued by the United States or its agencies and instrumentalities. Financial institutions serving as depositories will be required to sign a depository agreement with the City. The collateralized deposit portfolio of the agreement shall define the City's rights to the collateral in case of default, bankruptcy or closing and shall establish a perfected security interest in compliance with Federal and State regulations,including: 1. The agreement must be in writing; 2. The agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset: 3. The agreement must be approved by the Board of Directors or designated committee of the Depository and a copy of the meeting minutes must be delivered to the City;and 4. The agreement must be part of the Depository's "Official Record" continuously since its execution. Formatted:Centered,PositionNorizontal: Center,Relative to:Margin 8 �, XII. Safekeeping and Custody Collateral shall be placed for safekeeping in a custodial account at the Federal Reserve Bank or at an institution not affiliated with a firm pledging collateral acceptable to the City. With the exception of the Federal Reserve,all safekeeping arrangements shall be in accordance with a tri-party custodial agreement $hat clearly defines the responsibilities of each party and outlines the steps to be taken in order for the City to - gain access to the collateral in the event of a "failure". The custodial agreement shall Deleted:which be executed between the City, the firm pledging the collateral and the custodial institution. All safekeeping receipts shall be delivered to the City and all collateral (whether a pledge or substitution) shall be formally accepted and released by Investment Officers. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the safekeeping institution. Financial institution deposits, pool funds,and mutual funds are excluded from this requirement. The investment shall be held in the name of the City or on behalf of the City. XIII. Diversification Deleted:The City shall not purchase securities from the firm or banking institution designated as the safekeeping institution. The City will diversify its investments to eliminate an over-concentration of assets in any one security type or institution. l* Up to ninety percent (90%) par of the portfolio may be invested in direct obligations of the United States(U.S.Treasury Securities). z,3 Up to seventy percent(70%)par of the portfolio may be invested in U.S.Agency or Instrumentalities. No more than thirty percent(30%)par of the portfolio may be invested with any one U.S.Agency or Instrumentality. b!) No more than eighty percent (80%) par of the portfolio may be invested in certificates of deposit or repurchase agreements. l Up to one hundred percent (100%) par of the portfolio may be invested in investment pools for liquidity purposes with no more than eighty percent (80%) par of the portfolio invested in any one pool. No more than fifty percent 50% par of the portfolio may be invested in money f=ormatted:Centered,Margin on:Horizontal: tY P ( )P P Y Y Center,Relative to:Margin market mutual funds. 9 B,) No more than Jhirty percent 0% par of the portfolio may be invested with an one institution in certificates of deposit and/or repurchase agreements.L Deleted:twenty five XIV. Investment Strategies Deleted:25 The City shall maintain a separate investment strategy for each of the three fund types represented in the portfolio. Deleted: Additionally,these investments Il Po — --- — shall not exceed ten percent(10%)of the capitalization of the financial institution. A. Pooled Fund Groups Deleted: Suitability-Any investment eligible in the Investment Policy is suitable for Pooled Fund Groups. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, managing the weighted average days to maturity of each fund's portfolio to Deleted:securities less than 365 days and restricting the maximum allowable maturity to two years using the final stated maturity dates of each investment will minimize l the price volatility of the portfolio. Deleted:secnriry Marketability-Investments with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Historical market "spreads" between the bid and offer prices of a particular security- Deleted:securities type of less than a quarter of a percentage point will define an efficient secondary market. Li ui i —Pooled Fund Groups require the greatest short-term liquidity of any of the fund-types. Short-term investment pools and money market mutual funds will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Diversification - Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Diversifying the appropriate maturity structure up to the two-year maximum will reduce interest rate risk. Yield - Attaining a competitive market yield for comparable investmen- types and portfolio restrictions is the desired objective. The yield of a equally weighted, rolling three-month Treasury Bill portfolio will be the Deleted:security minimum yield objective. B. Debt Service Funds Formatted:Centered,PositionNorizontal: Center,Relative to:Margin 10 Suitability-Any investment eligible in the Investment Policy is suitable for Debt Service Funds. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Funds to not exceed the debt service payment Deleted:securities schedule the market risk of the overall portfolio will be minimized. The stated final maturity date on investment,purchased shall not exceed the debt service payment date unless excess funds are available. In that case, maximum maturities shall not exceed two(2)years from the date of purchase Deleted:securities and the dollar weighted average maturity of the portfolio shall not exceed 365 days as is consistent with investment strategies for operating funds. Marketability-Investments,with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not Deleted:securities probable. Li idi - Debt Service Funds have predictable payment schedules. Therefore investment maturities should not exceed the anticipated cash flow requirements. Investments pools and money market mutual funds may provide a competitive yield alternative for short-term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification - Market conditions influence the attractiveness of fully extending maturity to the next "unfunded" payment date. Generally, if investment rates are anticipated to decrease over time,the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield - Attaining a competitive market yield for comparable investmen- -� types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio shall be the Deleted:security minimum yield objective. C. Debt Service Reserve Funds Suitability-Any investment eligible in the Investment Policy is suitable for Formatted:Centered,Position:Horizontal: Debt Service Reserve Funds. Bond resolution and loan documentation Center,Relative to:Margin 11 constraints and insurance company restrictions may create specific considerations in addition to the Investment Policy. Safety of Princival - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Reserve Fund maturities to not exceed the call Deleted:securities provisions of the borrowing will reduce the investment's market risk if the City's debt is redeemed and the Reserve Fund liquidated. No stated final investment maturity shall exceed the shorter of the final maturity of the borrowing or five years. Annual mark-to-market requirements or specific maturity and average life limitations within the borrowing's documentation will influence the attractiveness of market risk and influence maturity extension. Marketability-Investmentk with less active and efficient secondary markets are acceptable for Debt Service Reserve Funds. Deleted:Securities Li idi — Debt Service Reserve Funds have no anticipated expenditures. The Funds are deposited to provide annual debt service payment protection to the City's debt holders. The funds are "returned" to the City at the final debt service payment. Market conditions and arbitrage regulation compliance determine the advantage of investment diversification and liquidity. Generally, if investment rates exceed the cost of borrowing, the City is best served by locking in investment maturities and reducing liquidity. Deleted:security If the borrowing cost cannot be exceeded,then concurrent market conditions will determine the attractiveness of locking in maturities or investing shorter and anticipating future increased yields. Diversification - Market conditions and the arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for Debt Service Reserve Funds. At no time shall the final debt service payment date of the bond issue be exceeded in an attempt to bolster yield. Yield - Achieving a positive spread to the applicable borrowing cost is the desired objective. Debt Service Reserve Fund portfolio management shall operate within the limits of the Investment Policy's risk constraints. XV. Internal Control Deleted:i The City, in conjunction with its annual financial audit, shall perform a Deleted:p compliance audit of management controls on investments and adherence to the City's vestment Policy. _ Formatted:Centered,Position:Horizontal: -% Center,Relative to:Margin 12 XVI. Performance Standards The City intends to pursue an active versus a passive portfolio management philosophy. That is, investments may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles$hat is consistent with risk limitations and cash flow needs of the City. Given this strategy,the basis used by Investment Officers to determine whether market yields are being achieved shall Deleted:which be the average return on 90 day U.S. Treasury Bills. "Weighted average yield to maturity"shall be the portfolio performance measurement standard. XVII. Reporting Investment Officers shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position,performance,trading activity, interest earnings and collateral. A quarterly report shall be submitted to the City Manager,as Chief Executive Deleted:a Officer,and the City Council detailing investment transactions and performance for the reporting period in accordance with Sxate law. The report shall be jointly Deleted: - prepared and signed by all Investment Officers. It shall include a summary statement prepared in compliance with generally accepted accounting principles / Formatted:Justified,Indent Left 0", for each fund type and a detailed listing that states the beginning market value, Hanging: 1",Line spacing: single,Tabs: changes to the market value,ending arket value and full accrued interest for 01,Left+ I",Left+ 1.38",Left+ 1.63", g Y Left+ 2",Left+ 2.5",Left+ 3",Left+ the period. In addition,Investment Officers shall report on adherence to the City's ; 3.5",Left+ a",Left+ 4.5",Left+ 51,Left investment strategies as expressed in this Policy. _ _ _ � + 5.5",Left+ 6",Left+ 6.5",Left+ 7", Left+ 7.5",Left+ 8",Left+ 8.5",Left+ �.- ---------- — 9",Left+ 9.51,Left+ 10",Left+ 10.5", In conjunction with the annual audit, the quarterly reports shall be formally', Left+ 11",Left+ 11.5",Left+ 12",Left+ reviewed by the City's independent auditor on an annual basis and the results of 12.5%Left+ 13",Left+ 13.5",Left+ the review shall be reported to City Council. 14",Left XVIII. Investment Policy Adoption Deleted:In conjunction with the annual be The City's Investment Policy is hereby adopted by resolution of the City Council. audit,the quarterly reports shall en formally reviewed by the City's independent auditor on The City Council shall review and approve the Policy on an annual basis. This an annual basis and the results of the review Policy serves to satisfy the statutory requirement to define and adopt a formal , stment Policy Adoption investment policy. Formatted:Justified Formatted:Centered,Position-Norizontal: Center,Relative to:Margin 13 ` EXHIBITS Formatted:Centered,Position:Horizontai: Center,Relative to:Margin 14 Exhibit A CITY OF BEAUMONT Approved List Broker/Dealers Business/Oreanization Broker/Dealers: JP Morgan Chase Securities _ Coastal Securities Deleted:i Duncai Williams,Inc. Wells Fargo Brokerage — Deleted:- Services,LLC Deleted: Rice Financial Products Company Morgan Keegan&Company,Inc. Formatted:Position:Horizontal: 4.63", Relative to:Page,Vertical: 0.03",Relative to:Paragraph 15 Exhibit B City of Beaumont,Texas Certification By Business Organization This certification is executed on behalf of the City of Beaumont(the Investor)and (the Business Organization)pursuant to the Public Funds Investment Act,Chapter 2256,Texas Government Code(the Act)in connection with investment transactions conducted between the Investor and the Business Organization. The undersigned Qualified Representative of the Business Organization hereby certifies on behalf of the Business Organization that: 1. The undersigned is a Qualified Representative of the Business Organization offering to enter an investment transaction with the Investor as such terms are used in the Public Funds Investment Act,Chapter 2256,Texas Government Code and 2. The Qualified Representative of the Business Organization has received and reviewed the Investment Policy furnished by the Investor and 3. The Qualified Representative of the Business Organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Business Organization and the Investor that are not authorized by the Investo4s Investment Policy,exce t to the extent that this authorization is dependent on an analysis of the makeup of the Investot<s entire portfolio or requires an d interpretation of subjective investment standards. IDeleted:ed:entity ed:i (Firm) ed:p Qualified Representative of the Business Organization entity (Signature) (Name) (Title) Formatted:Position:Horizontal: 4.63", Relative to:Page,Vertical: 0.03",Relative (Date) to:Paragraph 16 �i RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City of Beaumont Investment Policy, substantially in the form attached hereto as Exhibit'A," has been reviewed and is hereby in all things adopted. All changes to the policy are reflected therein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - City of Beaumont RICH WITH OPPORTUNITY. BEAUMON* T - F , X - A - S Investment Policy Adopted Resolution of City Council on June , 2010 EXHIBIT "A" City of Beaumont - Investment Policy Table of Contents I. Introduction................................................................................................................1 II. Scope....................................................... ....................................................................1 III. Prudence.....................................................................................................................1 IV. Objectives....................................................................................................................1 A. Safety of Principal.................... .....................................................................2 B. Liquidity..........................................................................................................2 C. Yield................................................................................................................2 V. Delegation of Authority.............................................................................................2 VI. Ethics and Conflicts of Interest................................................................................3 VII. Training......................................................................................................................3 VIII. Selection of Financial Dealers, Institutions and Investments Pools .....................3 A. Broker/Dealers...............................................................................................4 B. Public Depositories.........................................................................................4 C. Investment Pools............................................................................................5 IX. Authorized and Suitable Investments......................................................................5 X. Marking to Market....................................................................................................7 XI. Collateralization.........................................................................................................7 XII. Safekeeping and Custody..........................................................................................8 XIII. Diversification ............................................................................................................8 XIV. Investment Strategies ................................................................................................9 ii A. Pooled Fund Groups .................................................................................... 10 B. Debt Service Funds ...................................................................................... 11 C. Debt Service Reserve Funds ........................................................................ 12 XV. Internal Control..................................................................................................... 12 XVI. Performance Standards ........................................................................................ 13 XVII. Reporting................................................................................................................ 13 XVIII. Investment Policy Adoption.................................................................................. 13 Exhibits ExhibitA-Approved List Broker/Dealers...........................................................................15 Exhibit B-Certification By Business Organizalion ...........................................................16 t I 1" I City of Beaumont Investment Policy I. Introduction It is the policy of the City of Beaumont to invest public funds in a manner that will ensure that the investments are duly authorized, properly managed, adequately protected and fully collateralized. The City shall seek the optimum investment return with the maximum security while meeting daily cash needs and conforming to the City Charter, the Public Funds Investment Act (Chapter 2256, Government Code as amended) and all other state and local statutes governing the investment of public funds. II. Scope This Investment Policy applies to all financial assets of the City as accounted for in the City's Comprehensive Annual Financial Report. These include General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Fiduciary Funds. All are pooled for investment purposes except debt service and debt service reserve funds. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care,under prevailing circumstances,that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The "prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent with this Investment Policy. Investment Officers acting in accordance with written procedures and the Investment Policy and exercising due diligence shall be relieved of responsibility for an individual security's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the City's investment activities shall be preservation and safety of principal, liquidity,yield and public trust. 1 A. Safety of principal The City has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order to eliminate an over-concentration of assets in one institution, maturity or type of investment. B. Li uidi The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with forecasted cash flow requirements and limited by investments with an active secondary market or convertible to cash little or no penalty. C. Public Trust Investment Officers shall seek to act responsibly as custodians of the public trust. Investment Officers shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. D. Yield The City's investment portfolio shall be designed with the objective of attaining a rate of return that is consistent with risk limitations and cash flow characteristics of the City's investments. V. Delegation of Authority Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds, investments,bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this Investment Policy that include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager, the Chief Financial Officer, and the City Controller are currently approved as Investment Officers of the City. Each Investment Officer shall be 2 approved by resolution of City Council to invest the City's funds. Such approval of specific persons shall remain in effect until rescinded by the City Council or until termination of the person's employment by the City. Investment Officers shall not deposit, withdraw, transfer or manage the funds of the City in a manner that is not consistent with the "prudent person" standard as described in section III of this Policy. The City Council maintains the right to hire Investment Advisers to assist City staff in the investment of funds. Investment Advisers shall adhere to the spirit, philosophy and specific terms of this Policy and shall invest within the same objectives. The City Manager shall establish criteria to evaluate Investment Advisers, including: 1. Adherence to the City's policies and strategies; 2. Investment strategy recommendations within accepted risk constraints; 3. Responsiveness to the City's request for services and information; 4. Understanding of the inherent fiduciary responsibility of investing public funds; and 5. Similarity in philosophy and strategy with the City's objectives. Selected Investment Advisers must be registered under the Investment Advisers Act of 1940 or with the State Securities Board. A contract with an Investment Adviser may not be for a term longer than two,years and any contract, renewal or extension must be approved by the City Council. VI. Ethics and Conflicts of Interest Investment Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment Officers shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City. They shall also disclose any specific individuals who seek to sell investments to the City and are related to the Investment Officer within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council. VII. Training In order to ensure qualified and capable investment management, each Investment Officer shall attend at least ten (10) hours of training relating to investment responsibilities within 12 months after assuming such duties and shall continue to attend an investment training session consisting of at least ten (10) hours of instruction not less than once every two years thereafter. Training shall be in accordance with the 3 Public Funds Investment Act and include education in investment controls, security risks, strategy risks, market risks, and compliance with State statutes governing the investment of public funds. All training shall be conducted by an independent source that has been approved by City Council. The approved "independent sources" to provide such training are: the Government Treasurers Organization of Texas, the Government Finance Officers Association, the Government Finance Officers Association of Texas,the Texas Municipal League, and the University of North Texas. VIII. Selection of Broker/Dealers, Financial Institutions and Investment Pools Authorized investments shall only be purchased from those institutions selected and approved in accordance with this Policy. Any business organization which seeks to execute investment transactions with the City shall provide a written instrument certifying that they have received and thoroughly reviewed the City's Investment Policy and have implemented reasonable procedures and controls in an effort to preclude investment transactions that are not authorized by this Policy. The certification, as shown by example in Exhibit B, must be signed by a qualified representative of the business organization. Investment Officers shall not buy any securities from a firm or make deposits with a fund, pool or financial institution that has not filed this instrument. Each time City Council approves a material revision to the Investment Policy, the certification should be sent to the approved business organizations along with the newly revised Investment Policy. A. Broker/Dealers The City shall select broker/deale`rs by their ability to provide effective market access and may include "Primary Government Securities Dealers" or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the Financial Industry Regulatory Authority ("FINRA"), and be licensed by the State of Texas. Each broker/dealer will be reviewed by Investment Officers and a recommendation made for approval by City Council. An "approved broker/dealer list", as shown in Exhibit A, shall be maintained by the Investment Officers at all times and reviewed by the City Council on an annual basis.. The City shall not enter into transactions with a broker/dealer until official City Council approval. B. Public Depositories/Financial Institutions 4 The City Council shall select a primary depository as required by law. The primary depository as authorized by the City Council shall meet all requirements of the state law concerning depositories for municipal funds (Chapter 105, Government Code). The primary depository shall be selected through the City's banking services procurement process, including a formal Request for Proposal (RFP) issued in compliance with applicable State law, and offers the most favorable terms and conditions for the handling of City funds. The City may also establish agreements with other financial institutions under separate contract for additional services that are necessary in the administration, collection, investment, and transfer of municipal funds. Such deposits will only be made after the financial institution has completed and returned the required written instruments and depository pledge agreements. No deposit shall be made except in a qualified public depository as established by State Law. C. Investment Pools Investment Officers may invest funds of the City through an eligible investment pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular that contains specific and detailed information, investment transaction confirmations, and detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing participants and non-participants who do not have a business relationship with the pool. . Before selection, pools shall be thoroughly reviewed and evaluated by Investment Officers. IX. Authorized and Suitable Investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. Suitable investments for the City are limited to the following: 5 E,t) Direct Obligations of the United States or its agencies and instrumentalities that have a maximum stated maturity date of 5 years or less. Federal agencies and instrumentalities that do not carry the explicit U.S. Government guarantee must be continuously rated no lower than AAA/A-1 or an equivalent rating by at least one nationally recognized rating agency. bo Financial institution deposits placed with approved banks as described above (section VIII-B) which have a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit Insurance Corporation, or their successors; or secured as described in section XI Collateralization. Additionally, the City may execute certificates of deposit through a depository institution that has its main office or a branch office in Texas that participates in the Certificate of Deposit Account Registry Service (CDARS), or similar program, and meets the requirements of Section 2256.009(b). Fully collateralized direct repurchase agreements with a defined termination date of 90 days or less which are secured by obligations of the United States or its agencies and instrumentalities and pledged with a third party other than an agent for the pledgor. Investment Officers may invest in repurchase agreements through an approved primary government securities dealer or an approved depository bank as described above (section VIII-A, B). Each issuer of repurchase agreements shall be required to sign a master repurchase agreement. For flexible repurchase agreements executed with bond proceeds, the defined termination date of 90 days or less may be waived to allow the term of the flexible repurchase agreement to more closely match the expected term of the bond project. w No load money market mutual funds registered with and regulated by the Securities and Exchange Commission whose investment objectives include the maintenance of a stable net asset value of$1 per share. Money market mutual funds must maintain a AAAm, or equivalent rating from at least one nationally recognized rating agency; and provide the City with a prospectus and other information required by the Securities and Exchange Act of 1934 and be specifically approved by City Council or purchased through the City's primary depository as an overnight investment tool. The City may not own more than 10% of the money market mutual fund's total assets. L*) Approved investment pools as described above (section VIII-C) which are continuously rated no lower than AAA, AAA-m or an equivalent rating by at least one nationally recognized rating agency . Investments Not Authorized - The following investments are not authorized under this section: 6 a. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pay no principal; b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; c. Collateralized mortgage obligations that have a stated final maturity date of greater than ten years; and d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. The City is not required to liquidate investments that were authorized investments at the time of purchase. The purchase of stock is not an authorized investment for municipal governments. However, stock may be accepted as a donation, provided that it is held in accordance with the terms of the donation and sold as soon as it is advantageous to do so. Reinvestment of proceeds must be in accordance with authorized and suitable investments for the City as listed above. ' X. Marking to Market All securities and certificates of deposit will be purchased or sold after at least three(3) offers or bids are taken to verify that the City is receiving a fair market value or price for the investment. The market value shall continue to be monitored at least quarterly through on-line investment software to which the City subscribes, the Wall Street Journal, or some other independent market pricing source. The City shall not obtain market pricing from business organizations who may engage in investment transactions with the City. XI. Collateralization Collateralization will be required on all deposits, certificates of deposit and repurchase agreements. With the exception of deposits secured with irrevocable letters of credit at 100% of amount, the collateralization level shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or investment including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the'collateral pledged clearly listed in the agreement. Collateral shall be reviewed monthly to assure that the market value of the securities pledged equals or exceeds the related deposit or investment balance. 7 Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: bz) Direct obligations of the United States or its agencies and instrumentalities. Direct obligations of this state or its agencies and instrumentalities. W Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States and excluding those mortgage backed securities considered a high-risk mortgage security as described by Section 2257.0025 of the Government Code as well as those of the nature described by section 2256.009 (b)of the Government Code. w Other obligations that are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. w Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. E,-) Letters of credit issued by the United States or its agencies and instrumentalities. Financial institutions serving as depositories will be required to sign a depository agreement with the City. The collateralized deposit portfolio of the agreement shall define the City's rights to the collateral in case of default, bankruptcy or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including: 1. The agreement must be in writing; 2. The agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset: 3. The agreement must be approved by the Board of Directors or designated committee of the Depository and a copy of the meeting minutes must be delivered to the City; and 4. The agreement must be part of the Depository's "Official Record" continuously since its execution. 8 XII. Safekeeping and Custody Collateral shall be placed for safekeeping in a custodial account at the Federal Reserve Bank or at an institution not affiliated with a firm pledging collateral acceptable to the City. With the exception of the Federal Reserve, all safekeeping arrangements shall be in accordance with a tri-party custodial agreement that clearly defines the responsibilities of each party and outlines the steps to be taken in order for the City to gain access to the collateral in the event of a "failure". The custodial agreement shall be executed between the City, the firm pledging the collateral and the custodial institution. All safekeeping receipts shall be delivered to the City and all collateral (whether a pledge or substitution) shall be formally accepted and released by Investment Officers. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the safekeeping institution. Financial institution deposits, pool funds, and mutual funds are excluded from this requirement. The investment shall be held in the name of the City or on behalf of the City. XIII. Diversification The City will diversify its investments to eliminate an over-concentration of assets in any one security type or institution. b-,) Up to ninety percent (90%) 'par of the portfolio may be invested in direct obligations of the United States (U.S. Treasury Securities). En) Up to seventy percent (70%) par of the portfolio may be invested in U.S. Agency or Instrumentalities. bt) No more than thirty percent (30%) par of the portfolio may be invested with any one U.S. Agency or Instrumentality. Er.) No more than eighty percent (80%) par of the portfolio may be invested in certificates of deposit or repurchase agreements. W Up to one hundred percent (100%) par of the portfolio may be invested in investment pools for liquidity purposes with no more than eighty percent (80%) par of the portfolio invested in any one pool. W No more than fifty percent (50%) par of the portfolio may be invested in money market mutual funds. 9 En) No more than thirty percent (30%) par of the portfolio may be invested with any one institution in certificates of deposit and/or repurchase agreements. XIV. Investment Strategies The City shall maintain a separate investment strategy for each of the three fund types represented in the portfolio. A. Pooled Fund Groups Suitability - Any investment eligible in the Investment Policy is suitable for Pooled Fund Groups. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, managing the weighted average days to maturity of each fund's portfolio to less than 365 days and restricting the maximum allowable maturity to two years using the final stated maturity dates of each investment will minimize the price volatility of the portfolio. Marketability - Investments with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Historical market "spreads" between the bid and offer prices of a particular security- type of less than a quarter of a percentage point will define an efficient secondary market. Li uidi —Pooled Fund Groups require the greatest short-term liquidity of any of the fund-types. Short-term investment pools and money market mutual funds will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Diversification - Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Diversifying the appropriate maturity structure up to the two-year maximum will reduce interest rate risk. Yield - Attaining a competitive market yield for comparable investment- types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio will be the minimum yield objective. B. Debt Service Funds 10 I Suitability - Any investment eligible in the Investment Policy is suitable for Debt Service Funds. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Funds to not exceed the debt service payment schedule the market risk of the overall portfolio will be minimized. The stated final maturity date on investments purchased shall not exceed the debt service payment date unless excess funds are available. In that case, maximum maturities shall not exceed two(2)years from the date of purchase and the dollar weighted average maturity of the portfolio shall not exceed 365 days as is consistent with investment strategies for operating funds. Marketability - Investments with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not probable. Li uidi - Debt Service Funds have predictable payment schedules. Therefore investment maturities should not exceed the anticipated cash flow requirements. Investments pools and money market mutual funds may provide a competitive yield alternative for short-term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification - Market conditions influence the attractiveness of fully extending maturity to the next "unfunded" payment date. Generally, if investment rates are anticipated to decrease over time, the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield - Attaining a competitive market yield for comparable investment- types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio shall be the minimum yield objective. C. Debt Service Reserve Funds Suitability - Any investment eligible in the Investment Policy is suitable for Debt Service Reserve Funds. Bond resolution and loan documentation tt constraints and insurance company restrictions may create specific considerations in addition to the Investment Policy. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Reserve Fund maturities to not exceed the call provisions of the borrowing will reduce the investment's market risk if the City's debt is redeemed and the Reserve Fund liquidated. No stated final investment maturity shall exceed the shorter of the final maturity of the borrowing or five years. Annual mark-to-market requirements or specific maturity and average life limitations within the borrowing's documentation will influence the attractiveness of market risk and influence maturity extension. Marketability- Investments with less active and efficient secondary markets are acceptable for Debt Service Reserve Funds. Li ui i — Debt Service Reserve Funds have no anticipated expenditures. The Funds are deposited to provide annual debt service payment protection to the City's debt holders. The funds are "returned" to the City at the final debt service payment. Market conditions and arbitrage regulation compliance determine the advantage of investment diversification and liquidity. Generally, if investment rates exceed the cost of borrowing, the City is best served by locking in investment maturities and reducing liquidity. If the borrowing cost cannot be exceeded, then concurrent market conditions will determine the attractiveness of locking in maturities or investing shorter and anticipating future increased yields. Diversification - Market conditions and the arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for Debt Service Reserve Funds. At no time shall the final debt service payment date of the bond issue be exceeded in an attempt to bolster yield. Yield - Achieving a positive spread to the applicable borrowing cost is the desired objective. Debt Service Reserve Fund portfolio management shall operate within the limits of the Investment Policy's risk constraints. Xv. Internal Control The City, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the City's Investment Policy. 12 XVI. Performance Standards The City intends to pursue an active versus a passive portfolio management philosophy. That is, investments may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles that is consistent with risk limitations and cash flow needs of the City. Given this strategy,the basis used by Investment Officers to determine whether market yields are being achieved shall be the average return on 90 day U.S. Treasury Bills. "Weighted average yield to maturity" shall be the portfolio performance measurement standard. XVII. Reporting Investment Officers shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position, performance, trading activity, interest earnings and collateral. A quarterly report shall be submitted to the City Manager, as Chief Executive Officer, and the City Council detailing investment transactions and performance for the reporting period in accordance with State law. The report shall be jointly prepared and signed by all Investment Officers. It shall include a summary statement prepared in compliance with generally accepted accounting principles for each fund type and a detailed listing that states the beginning market value, changes to the market value, ending market value and fully accrued interest for the period. In addition, Investment Officers shall report on adherence to the City's investment strategies as expressed in this Policy. In conjunction with the annual audit, the quarterly reports shall be formally reviewed by the City's independent auditor on an annual basis and the results of the review shall be reported to City Council. XVIII. Investment Policy Adoption The City's Investment Policy is hereby adopted by resolution of the City Council. The City Council shall review and approve the Policy on an annual basis. This Policy serves to satisfy the statutory requirement to define and adopt a formal investment policy. 13 EXHIBITS Exhibit A CITY OF BEAUMONT Approved List Broker/Dealers Business/Oreanization Broker/Dealers: JP Morgan Chase Securities Coastal Securities Duncan-Williams, Inc. Wells Fargo Brokerage Services, LLC Rice Financial Products Company Morgan Keegan & Company, Inc. 15 Exhibit B City of Beaumont, Texas Certification By Business Organization This certification is executed on behalf of the City of Beaumont(the Investor) and (the Business Organization)pursuant to the Public Funds Investment Act,Chapter 2256, Texas Government Code (the Act) in connection with investment transactions conducted between the Investor and the Business Organization. The undersigned Qualified Representative of the Business Organization hereby certifies on behalf of the Business Organization that: 1. The undersigned is a Qualified Representative of the Business Organization offering to enter an investment transaction with the Investor as such terms are used in the Public Funds Investment Act, Chapter 2256, Texas Government Code and 2. The Qualified Representative of the Business Organization has received and reviewed the Investment Policy furnished by the Investor and 3. The Qualified Representative of the Business Organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Business Organization and the Investor that are not authorized by the Investor's Investment Policy, except to the extent that this authorization is dependent on an analysis of the makeup of the Investor's entire portfolio or requires and interpretation of subjective investment standards. (Firm) Qualified Representative of the Business Organization (Signature) (Name) (Title) (Date) 16 2 June 15,2010 Consider authorizing an interlocal agreement with the City of Pearland, Texas for the purchase of a remittance processing system RICH WITH OPPORTUNITY BEAUMON* T • E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider authorizing an interlocal agreement with the City of Pearland, Texas. RECOMMENDATION The administration recommends the authorization of an interlocal purchasing agreement with the City of Pearland in order to award a contract to ProfitStars of Allen, Texas for the purchase of a remittance processing system. BACKGROUND The City of Pearland, in compliance with bidding requirements of the State of Texas, has awarded a contract for the purchase of a remittance processing system to ProfitStars. Chapter 791 of the Texas Government Code permits the extension of the contract to other government entities by means of a joint interlocal purchasing agreement between the governmental entities. The City has been notified by the vendor that the remittance processing system, software and hardware, currently in use by the City's Cash Management Division is about to become obsolete. This interlocal agreement will facilitate the City's purchase of a new remittance system from ProfitStars at an already competitively bid price of$36,295. A copy of the agreement is attached for review. BUDGETARYIMPACT The interlocal agreement has no budgetary impact. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an interlocal purchasing agreement, substantially in the form attached hereto as Exhibit "A," with the City of Pearland, Texas, which would allow participation in a contract with ProfitStars of Allen, Texas, for the purchase of a remittance processing system for use by the Cash Management Division. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - INTERLOCAL AGREEMENT This Interlocal Agreement ("Agreement") is made and entered into this 15th day of June, 2010, by and between the City of Beaumont, Texas (hereinafter called "Beaumont"), and the City of Pearland, Texas (hereinafter called "Pearland"), each acting by and through its duly authorized officials: WHEREAS, Beaumont and Pearland are both governmental entities engaged in the purchase of goods and services, which is a recognized governmental function; WHEREAS, Beaumont and Pearland wish to enter into this Agreement pursuant to Chapter 791 of the Texas Government Code (hereinafter "Interlocal Cooperation Act") to set forth the terms and conditions upon which Beaumont and Pearland may purchase various goods and services commonly utilized by each entity; WHEREAS, participation in an interlocal agreement will be highly beneficial to the taxpayers of Beaumont and Pearland through the anticipated savings to be realized and is of mutual concern to the contracting parties; WHEREAS, Beaumont and Pearland have purrent funds available to satisfy any fees owed pursuant to this Agreement; NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and obligations as set forth herein; Beaumont and Pearland agree as follows: 1. Beaumont and Pearland may cooperate in the purchase of various goods and services commonly utilized by the participants,where available and applicable, and may purchase goods and services from vendors under present and future contracts. 2. Beaumont and Pearland shall each be individually responsible for payments directly to the vendor and for the vendor's compliance with all conditions of delivery and quality of purchased items under such contracts. Beaumont and Pearland shall each make their respective payments from current revenues available to the paying party. 3 . Notwithstanding anything herein to the contrary, participation in this Agreement may be terminated by any party upon thirty (30) days written notice to the other participating entity(ies). 4. The undersigned officer and/or agents of the party(ies) hereto are duly authorized officials and possess the requisite authority to execute this Agreement on behalf of the parties hereto. 5. This Agreement may be executed separately by the participating entities, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. EXHIBIT "A" 6. This Agreement shall become effective on the day and year first written above (the "Effective Date"). The primary term of this Agreement shall be for one (1) year, commencing on the Effective Date and terminating on June 14, 2011, and shall thereafter automatically renew for successive one-year terms, unless terminated according to the terms set forth in Paragraph 3. 7. To the extent allowed by law, each party agrees to release, defend, indemnify, and hold harmless the other (and its officers, agents, and employees) from and against all claims or causes of action for injuries (including death), property damages (including loss of use), and any other losses, demands, suits, judgments and costs, including reasonable attorneys' fees and expenses, in any way arising out of, related to, or resulting from its performance under this agreement, or caused by its negligent acts or omissions (or those of its respective officers, agents, employees, or any other third parties for whom it is legally responsible) in connection with performing this agreement. 8 The laws of the State of Texas shall govern the interpretation, validity, performance and enforcement of this Agreement. 9. The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause, or phrase of this Agreement is for any reason held by a court of competent jurisdiction to be contrary to law or contrary to any rule or regulation having the force and effect of the law, the remaining portions of the Agreement shall be enforced as if the invalid provision had neverbeen included. 10. This Agreement embodies the entire agreement between the parties and may only be modified in writing executed by both parties. 11. This Agreement shall be binding upon the parties hereto, their successors, heirs, personal representatives and assigns. Neither party will assign or transfer an interest in this Agreement without the written consent of the other party. 12. It is expressly understood and agreed that, in the execution of this Agreement, neither party waives, nor shall be deemed hereby to have waived any immunity or defense that would otherwise be available to it against claims arising in the exercise of governmental powers and functions. By entering into this Agreement, the parties do not create any obligations, express or implied Qther that those set forth herein, and this Agreement shall not create any rights in parties not signatories hereto. 13. The declarations, determinations and findings declared, made and found in the preamble to this Agreement are hereby adopted, restated and made part of the operative provisions hereof. EXECUTED hereto on the day and year first above written. CITY OF BEAUMONT NAME/TITLE EXECUTING OFFICIAL Becky Ames, Mayor ATTEST: NAME/TITLE EXECUTING PERSON Tina Broussard, City Clerk APPROVED AS TO FORM: Tyrone E. Cooper, City Attorney STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the _ day of , 2010, by of the City of Beaumont, TEXAS, a home-rule municipal corporation, on behalf of such corporation. Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on the _day of , 2010, by of the CITY OF PEARLAND, TEXAS, a home-rule municipal corporation, on behalf of such corporation. Notary Public in and for the State of Texas 3 June 15,2010 Consider approving a contract for asphaltic concrete to be used by the Public Works Department 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: June 15, 2010 REQUESTED ACTION: Council consider authorizing the award of a contract for asphaltic concrete. RECOMMENDATION The administration recommends the award of a six (6)month contract to APAC-Texas, Inc., of Beaumont, with an estimated total expenditure of$628,465. BACKGROUND Bids were requested for a six (6) month contract for asphaltic concrete to be used by the Public Works Department, Streets and Drainage Division. Cold laid asphaltic concrete is used for repairing potholes and small sections of street, while hot laid asphaltic concrete is used for repairs to larger street sections. It is estimated that approximately 9,600 tons of hot laid asphaltic concrete and 700 tons of cold laid asphaltic concrete will be used during the term of the contract. Five (5)vendors were notified with only APAC-Texas responding with a bid as reflected below. Specifications requested pricing for both plant pickup by City personnel and job site delivery by the vendor. The bidder met all product requirements specified and has previously held the contract satisfactorily. Six(6)Month Contract for Asphaltic Concrete June 15, 2010 Page 2 The contract provides for the vendor to furnish asphaltic concrete at the following fixed unit prices: Description Plant Piet Job Site livery Hot Laid Concrete $60.00/ton $65.35/ton Cold Laid Concrete $74.95/ton I $79.55/ton The prior contract period prices were as follows: Description Plant Pickup Job Site Delivery Hot Laid Concrete $59.75/ton $65.10/ton Cold Laid Concrete $74.95/ton $79.55/ton BUDGETARYIMPACT Funds for the cold laid concrete are available in the Public Works operating budget. Funds are available in the Capital Program for the hot laid concrete which is used for street rehabilitation. RESOLUTION NO. WHEREAS, bids were solicited for a six (6) month contract for the purchase of asphaltic concrete for use by the Public Works Department, Streets and Drainage Division; and, WHEREAS, APAC-Texas, Inc., submitted a bid in the estimated amount of $628,465 in the unit amounts shown below: Description Plant Pickup Job Site Delivery Hot Laid Concrete $60.00/ton $65.35/ton Cold Laid Concrete $74.95/ton $79.55/ton and, WHEREAS, City Council is of the opinion that the bid submitted by APAC-Texas, Inc., should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by APAC-Texas, Inc.,fora six(6)month contract for the purchase of asphaltic concrete for the Public Works Department, Streets and Drainage Division, in the estimated amount of$628,465 in the unit amounts shown above be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of June, 2010. - Mayor Becky Ames - 4 June 15,2010 Consider amending Chapter 10, Section 10-3 of the City Code of Ordinances regarding Fire Service Fees RICH WITH OPPORTUNITY IIEA,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: June 15, 2010 REQUESTED ACTION: Council consider amending Chapter 10, Section 10-3(a)of the City Code of Ordinances regarding Fire Service Fees. RECOMMENDATION Administration recommends Council amend Chapter 10, Section 10-3(a), of the Code of Ordinances,to clarify the expenditures that may be billed for reimbursement when City Departments respond to a hazardous material incident. BACKGROUND Section 10-3(a) of the Code of Ordinances, states: "The fire chief is hereby authorized to calculate fees for the following fire related services based on the equipment,materials and labor necessary in each instance to provide the fire service. The person in control of the property or the person owning the property, real or personal, involved shall be responsible to pay the amount charged for such services upon receipt of a bill. (1) Response to and mitigation of a spill or release into the environment of a hazardous material as defined in chapter 27 of the International Fire Code. (2)Response to and standby exceeding one (t)hour at the scene of a potential release of a hazardous material as defined in chapter 27 of the International Fire Code. (3)Response to and mitigation of an unauthorized open burning associated with land clearing or demolition activities." The purpose of this section is to reclaim the direct costs incurred by the City as a result of the Fire Department's response and cleanup of hazardous material incidents. As it is written,the language does not address the direct costs incurred by the other city departments who respond to Fire Service Fees June 15, 2010 Page 2 the same incidents. For example, most responses require services supplied by Police, Public Works and/or Emergency Medical Services. In addition,the ordinance does not currently address the costs incurred by the departments to replace,repair, or restock materials and equipment used in the incident. It is proposed that an administrative fee of 15% of the total cost of the response be assessed. To provide clarification,the ordinance should be amended as follows: "The fire chief is hereby authorized to calculate fees for the following hazardous material instances and other fire related services based on the equipment,materials, and labor utilized by all responding City Departments in each instance. Fees will be assessed using equipment, material and labor rates set forth by city policy and includes a 15%administrative fee on the total cost of the response. The person in control of the property or the person owning the property,real or personal, involved shall be responsible to pay the amount charged for such services upon receipt of a bill." BUDGETARY IMPACT Amendment to the ordinance will allow reimbursement of all expenditures incurred in response to a hazardous material incident. ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 10, SUBSECTION 10-3(a) TO CLARIFY EXPENDITURES THAT MAY BE BILLED FOR REIMBURSEMENT IN RESPONSE TO HAZARDOUS MATERIAL INCIDENTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 10, Subsection 10-3(a), of the Code of Ordinances of the City of Beaumont be and the same is hereby amended to read as follows: Section 10-3. Fire service fees. (a) The fire chief is hereby authorized to calculate fees for the following hazardous material instances and other fire related services based on the equipment, materials, and labor utilized by all responding city departments in each instance. Fees will be assessed using equipment, material and labor rates set forth by city policy and includes a 15% administrative fee on the total cost of the response. The person in control of the property or the person owning the property, real or personal, involved shall be responsible to pay the amount charged for such services upon receipt of the bill. (1) Response to and mitigation of a spill or release into the environment of a hazardous material as defined in chapter 27 of the International Fire Code. (2) Response to and standby exceeding one(1)hour at the scene of a potential release of a hazardous material as defined in chapter 27 of the International Fire Code. (3) Response to and mitigation of an unauthorized open burning associated with land clearing ordemolition activities. 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. All ordinances or parts of ordinances in conflict herewith, including conflicting portions of the City Budget, 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 15th day of G' June, 2010. - Mayor Becky Ames - 5 June 15,2010 Consider amending Section 13-16 of the Code of Ordinances establishing health fees I RICH WITH OPPORTUNITY BEAi_UM0N* T • E • g • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer 4 MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider amending Section 13-16 of the Code of Ordinances establishing health fees. RECOMMENDATION Administration recommends Council amend Chapter 13, Section 13-16, of the Code of Ordinances, to reflect the name change to"Animal Services, "to separate fees for animal services from general health fees,to increase various animal services fees, and to add a fee for surrendering a dog or cat. BACKGROUND During FY 2009,the Police Department began management of the Animal Control Division. Under the Department's Supervision,the name of the division has been changed to Animal Services. Therefore, all references to "Animal Control" should be replaced with"Animal Services." In addition, Section 13-16 governs all health fees for the City of Beaumont which includes those charged by the Beaumont Health Department and those charged by theAnimal Services Division. The listing of fees within the ordinance includes both types of fees in no particular order. For clarification purposes,the animal services fees should be combined together at the end of the list of general health fees with a subheading of"Animal Services Fees." The City Staff has been conducting a city-wide fee review. Animal services fees were last amended in January 2000. The table below recaps the current and proposed fees. Animal Services Fees June 15, 2010 Page 2 Current Proposed Animal Service Fee Fee Pound Fee $ 30.00 $ 45.00 (first occurrence) Pound Fee 85.00 85.00 (second occurrence) Pound Fee 105.00 105.00 (third occurrence) Pound Fee 150.00 150.00 (Fourth occurrence) Rabies Vaccination Fees 10.00 15.00 Boarding Per Day 12.00 15.00 Dead Animal Removal Fee (up to 10.00 20.00 2 animals) per trip per trip Dead Animal Removal Fee (more 3.00 5.00 than 2 animals) per trip per trip Kennel Permit Fee 1 6.00 20.00 (less than 15 animals) Kennel Permit Fee 15.00 25.00 (15 to 25 animals) Kennel Permit Fee 25.00 35.00 (more than 25 animals) Adoption Fee 30.00 30.00 Animal Surrender Fee- Cat - 10.00 Animal Surrender Fee-Dog - 20.00 A survey of other cities is attached for your review. BUDGETARYIMPACT The total increase in revenue generated by the higher animal services fees is approximately $20,000 on an annual basis. The proposed fees attempt to cover increased operating costs and be in line with cities offering comparable services. Survey of Animal Services Fees Fee Description Bmt.Animal Services Arlington Wichita Falls San Antonio Waco Fort Worth (proposed) pound fee 1st 45.00 55.00 40.00 50.00 50.00 65.00 pound fee 2nd 85.00 110.00 100.00 75.00 85.00 pound fee 3rd 105.00 135.00 n/a 150.00 100.00 105.00 pound fee 4th 150.00 n/a 200.00 150.00 rabies vaccination 15.00 10.00 na/ 12.00 10.00 24.00 boarding per day 15.00 10.00 20.00 10.00 12.00 dead animal removal _ up to 2 20.00 25.00. dead animal removal excess of 2 5.00 25 each kennel permit 20.00 55.00 150.00 kennel permit 25 animals inclusive 25.00 110.00 150.00 kennel permit fee animals 35.00 165.00 adoption fee 30.00 100.00 81.00 70.00 animal surrender fee cat 10.00 40.00 animal surrender fee dog 20.00 40.00 These fees are the base fees stated. In most cities,there are many variables that increase the fees. Many fees were not posted on their web sites. ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 13, SECTION 13-16 TO CHANGE OR ADD VARIOUS HEALTH FEES AND TO REFLECT A NAME CHANGE FROM "ANIMAL CONTROL" TO "ANIMAL SERVICES;" PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. That Chapter 13, Sections 13-16, of the Code of Ordinances of the City of Beaumont be and the same is hereby amended to read as follows: Sec. 13-16. Health fees. The City of Beaumont is hereby authorized to charge fees for services in accordance with the following schedule: Activity Amount STD treatment $20.00 Flu shots $20.00 Birth and death certificate fees: (1) Issuing a certified copy of a birth certificate $23.00 (2) Issuing a certified copy of a death certificate $21.00 Note: The fee for the first certified copy of a certificate of death is $21.00 and the fee for each additional copy of the same certificate requested at the same time is $4.00. Immunizations per person, per visit: Childhood $10.00 Adult $15.00 Record Replacement $5.00 Computer resource charge $1.83 Search of vital records $11.00 Expedited service fee $10.00 Assistance with applications $10.00 Medical records and billing search $50.00 Notarized affidavit $6.00 Additional signature $1.00 Animal Services: Pound fee (first occurrence) $45.00 Pound fee (second occurrence) $85.00 Pound fee (third occurrence) $105.00 Pound fee (fourth occurrence) $150.00 Rabies vaccination fees $15.00 Boarding per day $15.00 Dead animal removal fee, per trip (up to 2 animals) $20.00 Dead animal removal fee, per trip (more than 2 animals) $5.00 Kennel permit fee (less than 15 animals) $20.00 Kennel permit fee (15 to 25 animals) $25.00 Kennel permit fee (more than 25 animals) $35.00 Adoption fee $30.00 Animal surrender fee - cat $10.00 Animal surrender fee - dog $20.00 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 r and, to such end, the various portions and provisions of this ordinance are declared to be severable. Section 3. All ordinances or parts of ordinances in conflict herewith, including conflicting portions of the City Budget, 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 15th day of June, 2010. - Mayor Becky Ames - 6 June 15,2010 Consider amending Chapter 20, Article II, Section 20-21 of the Code of Ordinances establishing rental rates for city-owned event facilities RICH WITH OPPORTUNITY BEAUMON* T - E ,• X • A - s Ci Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: June 15, 2010 REQUESTED ACTION: Council consider amending Chapter 20,Article II, Section 20-21 of the Code of Ordinances establishing rental rates for city-owned event facilities. RECOMMENDATION Administration recommends Council amend Chapter 20, Section 20-21, of the Code of Ordinances,to increase various rental rates for event facilities. BACKGROUND The City Staff has been conducting a city-wide fee review. The goal of the fee review has been to align the City's rates with rates of other cities with comparable programs and services and to minimize the City's subsidy of programs and services,where possible. Rental rates for event facilities were last updated December 9, 2003,while the rates for community centers were updated in 2007, 2008, and 2009, as the new community centers became available for renting. On June 8,2010, a work session was held to discuss the proposed new rates for the Civic Center, the Julie Rogers Theatre,the Jefferson Theatre,the new Event Center,Riverfront Park, After Midnight fees, and Community Centers. The proposed ordinance is attached for your review with the proposed changes highlighted in red. BUDGETARY IMPACT The total increase in revenue generated by increasing rental rates is approximately$150,000, in aggregate, on an annual basis. ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 20, ARTICLE Il, SECTION 20-21; PROVIDING FOR THE INCREASE IN RENTAL RATES; PROVIDING FOR TECHNICAL CLARIFICATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING FOR A PENALTY; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT Section 20-21 of the Code of Ordinances of the City of Beaumont is hereby amended to read as follows: Sec. 20.21. Use rate schedule. The following rates will apply to the use of the Civic Center complex facilities: (a) The Civic Center. (1) Commercial: Minimum rental shall be Fifty ($1,7W Two Thousand ($2,000.00) Dollars per all day (8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater. However, in consideration for city participation in furnishing facilities and other assistance, higher percentage rates may be negotiated. Any deviation from minimum rentef rate shall first be approved by the City Manager. (2) Non-commercial (minimum rental): a. Matinee (8:00 am -6:00 pm) $899-ee $1,200.00 (includes Saturday and Sunday) b. Evening (6:00 pm - 12:00 am): $1,190.09 $1,200.00 c. All day (8:00 am - 12:00 am): $4,3W.00 $1,500.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals or percentage rates may be negotiated.Any deviation from minimum rental shall first be approved by the City Manager. (3) The uge of i i6demial spees withim to Givie G~, ii.a.,dreseft reame.- Memeger or his desigmee. Meeting room rates are as follows: (b) Meeting rooms in the Civic Center. (1) Commercial: a. Matinee (8:00 am -6:00 pm), per room $150.00 b. Evening (6:00 pm - 12:00 am), per room $150.00 c. All day (8:00 am - 12:00 am), per room $250.00 (2) Non-commercial: a. Matinee (8:00 am -6:00 pm), per room: $76.00 $100.00 b. Evening (6:00 pm - 12:00 am), per room: $100.00 c. All day (8:00 am - 12:00 am), per room: $126.00 $150.00 (c) The Julie Rogers Theatre for the Performing Arts. (1) Commercial: Minimum rental shall be One Thousand ($1,000.00) Dollars per all day (8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater; however, in consideration for city participation in furnishing facilities and other assistance, higher percentage rates may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (2) Non-commercial (minimum rental): a. Matinee (8:00 am -6:00 pm): $688:88 $700.00 b. Evening (6:00 pm - 12:00 am): $688:98 $700.00 c. All day (8:00 am - 12:00 am): $898:98 $950.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals of percentage rates may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (d) Meeting rooms in the Julie Rogers Theatre: (1) Commercial: a. Matinee (8:00 am -6:00 pm), per room: $100.80 $150.00 b. Evening (6:00 pm - 12:00 am), per room: $150.00 c. All day (8:00 am - 12:00 am), per room: $225.00 $250.00 (2) Non-commercial: a. Matinee (8:00 am -6:00 pm), per room: $75:88 $100.00 b. Evening (6:00 pm - 12:00 am), per room: $100.00 c. All day (8:00 am - 12:00 am), per room: $426.00 $150.00 (e) The Jefferson Theatre: (1) Commercial: Minimum rental shall be eight htindred fifty One Thousand dollars ($858-993 ($1,000.00) per all day (8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater.; however, in consideration for city participation in furnishing facilities and other assistance, higher percentage may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (2) Non-commercial (minimum rental): a. Matinee (8:00 am -6:00 pm): $688:98 $700.00 b. Evening (6:00 pm - 12:00 am): $699:98 $700.00 c. AN day (8:00 am - 12:00 am): $890.99 $950.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals or percentage may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (f) 1fe"St-Filttb Event Center (1) Commercial: Minimum rental shall be Seven I lundred Fifty ($760.08) One Thousand Five Hundred (1,500.00) Dollars per all day (8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater. However, in consideration for city participation in furnishing facilities and other assistance, higher percentage rates may be negotiated. Any deviation from minimum rental shall be approved by the City Manager. (2) Non-commercial (minimum rental): a. Matinee (8:00 am -6:00 pm): $858:98 $900.00 b. Evening (6:00 pm - 12:00 am): $498:98 $900.00 c. All day (8:00 am - 12:00 am): $568:88 $1,125.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals or percentage rates may be negotiated.Any deviation from minimum rental shall first be approved by the City Manger. (g) Great Lawn: (1) Commercial: All day (8:00 am - 12:00 am): $1,000.00 (2) Non-commercial: All day (8:00 am - 12:00 am): $750.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals or percentage rates may be negotiated. Any deviation from minimum rental shall first be approved by the City Manger. (h) Riverfront Park. (1) Commercial: Minimum rental shall be Nine Hundred ($900.00) Dollars per all day(8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater. However, in consideration for city participation in furnishing facilities and other assistance, higher percentage rates may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (2) Non-commercial (minimum rental): 1. Matinee (8:00 am -6:00 pm): X59:99 $500.00 2. Evening (6:00 pm - 12:00 am): $259-89 $500.00 3. All day (8:00 am - 12:00 am): $800.09 $750.00 negotietedr Any deviation from minimum rental shall first be approved by the City Manager. Dollars. (3) Amphitheater: $150.00 (4) Pavilion only, all day(8:00 am - 12:00 am): $I W.08 $250.00 (i) Ater midnight. When any of the facilities of the Civic Center complex are used between the hours of 12:00 a.m.through 7:00 a.m.,said use shall be at the following hourly rates Civic Center, per hour. $35 :99 $500.00 Civic Center Meeting Rooms, per hour, per room: $75.99 $100.00 Julie Rogers Theatre, per hour: $290.00 $300.00 Julie Rogers Theatre Meeting Rooms, per hour per room: $75.99 $100.00 Jefferson Theatre, per hour: $299:99 $300.00 Event Center, per hour: $300.00 Q) Community Centers ity Center,. The Community Center rental rates are as follows: Per hour(tw&-heur mlimirnum) $68.0e Alice Keith, per hour (minimum two hour rental) $75.00 Central Park, per hour (minimum two hour rental) $75.00 Northend, per hour (minimum two hour rental) $65.00 Rogers Park, per hour (minimum two hour rental) $75.00 Set-up and take-down of tables and chairs: $25.00 Set-up and take-down is allowed thirty(30)minutes before and after any event. (k) Showmobilve: The following rates will apply to the rental of the city showmobile: Daily rate: $288:88 $300.00 If out of city: Plus mileage $5.00 per mile ff rented for 10 or more days, daily rate $4e8-88 $150.00 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 the City of Beaumont, Texas. Section 5. This ordinance shall be effective from and after jantrary i, 2884. October 1, 2010. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day . 8th day of June, 2010. -Mayor Becky Ames- l r ORDINANCE NO. ENTITLED AN ORDINANCE-AMENDING CHAPTER 20, ARTICLE II, SECTION 20-21; ESTABLISHING RENTAL RATES FOR THE EVENT CENTER; PROVIDING FOR AN INCREASE IN RENTAL RATES; PROVIDING FOR TECHNICAL CLARIFICATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING FOR A PENALTY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT Section 20-21 of the Code of Ordinances of the City of Beaumont is hereby amended to read as follows: Sec. 20-21. Use rate schedule. The following rates will apply to the use of the Civic Center complex facilities: (a) The Civic Center.- (1) Commercial: Minimum rental shall be Two Thousand ($2,000.00) Dollars per all day (8:00 am - 12:00 am), or ten (10) per cent of gross receipts, whichever is greater. However, in consideration for city participation in furnishing facilities and other assistance, higher percentage rates may be negotiated. Any deviation from minimum rate shall first be approved by the City Manager. (2) Non-commercial (minimum rental): a. Matinee (8:00 am - 6:00 pm) $1,200.00 (includes Saturday and Sunday) b. Evening (6:00 pm - 12:00 am): $1,200.00 c. All day (8:00 am - 12:00 am): $1 ,500.00 However, in consideration for city participation in furnishing facilities and other assistance, higher minimum rentals or percentage rates may be negotiated. Any deviation from minimum rental shall first be approved by the City Manager. (3) Meeting room rates are as follows: i I V I I B.r.S.D. B.f.s.D. I 0.687 ACRE TRACT 3.266 ACRE TRACT VOL. 185 PG. 245 VOL. 1903, PC. 293 9, D.R. OF J.C., TX. D.R. OF T.C., TX. N 89.56'36" E 129.97' N 89'56'36" E 799.31' N 89056'36"E 15.00' I 0. 1789 ACRE EASMENT E- ° t ' N "- 2 B.1.S.D. w— Lo Lo 15.174 ACRE TRACT VOL. 1862, PG. 81 I Q4 h D.R. OF J.C., T. f � � I 0 30 60 120 f I S 89056'00" W 15.00' P.0.B. S 89°56'00' W 1579.7'129.97' PLAT OF CALDWELL AVENUE (60' R.O.W.) 15' UTILITY EASEMENT ACROSS _ OF r 15. 174 ACRE TRACT y�'�6tST6gf IN THE ° JAMES DRAKE SURVEY, ABSTRACT No. 71 5AU JEFFERSON COUNTY, TEXAS r•i 5800 FEBRUARY 2010 SAW Q;0-73SCHAUMBURG&POLK,iNc WmAcw• HXXMN•7YlHi 88850o1pe 9n�tB�wnmLTmw 77707 408.668=341 P-40OBBOW37F ® CaprigM2010 - 41CK EOMN MEAUT TEXAS REGISTERED PROFESWRk tARO SURVEYOR N0. 5000 F:/t3MT/7078.3/8150-IS-ESMT.DWG EXHIBIT "F" i FIELD NOTE DESCRIPTION FOR A 15 FOOT UTILITY EASEMENT 15 FOOT UTILITY EASEMENT 0.0747 ACRES OUT OF A 0.687 ACRE TRACT BEAUMONT INDEPENDENT SCHOOL DISTRICT JAMES DRAKE SURVEY,AB.71 JEFFERSON COUNTY,TEXAS BEAUMONT,TEXAS BEING A 15 FOOT UTILITY EASEMENT CONTAINING 0.0747 ACRES OF LAND,OUT OF THAT CERTAIN CALLED 0.687 ACRE TRACT OF LAND TO THE BEAUMONT INDEPENDENT SCHOOL DISTRICT,IN DEED RECORDED IN VOLUME 1859,PAGE 245 OF THE DEED RECORDS OF JEFFERSON COUNTY,TEXAS(D.RJ.C.T.),BEING LOCATED IN THE JAMES DRAKE SURVEY,ABSTRACT 71,JEFFERSON COUNTY,TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID CALLED 0.687 TRACT,BEING THE NORTHWEST CORNER OF THAT CERTAIN CALLED 15.174 ACRE TRACT OF LAND TO B.I.S.D. RECORDED IN VOLUME 1862,PAGE 81 OF THE SAID D.R.J.C.T.AND ALSO BEING IN THE EAST RIGHT-OF-WAY LINE OF ST.HELENA STREET,AND BEING THE POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH,ALONG AND WITH THE EAST RIGHT-OF-WAX LINE OF SAID ST.HELANA STREET,THE WEST LINE OF SAID CALLED 0.687 ACRE B.I.S.D.TRACT AND THE WEST LINE OF THE HEREIN DESCRIBED TRACT FOR A DISTANCE OF 21425 FEET TO THE SOUTHWEST CORNER OF THAT CERTAIN CALLED 0.9786 ACRE TRACT OF LAND TO B.I.S.D.RECORDED IN COUNTY CLERKS FILE OF JEFFERSON COUNTY,TEXAS(C.C.F-T.C.T.)#2005025845,BEING IN THE WEST RIGHT-OF-WAY LINE OF SAID ST.HELENA STREET,BEING THE NORTHWEST CORNER OF SAID CALLED 0.687 ACRE TRACT AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,NORTH 69 DEG.51 MIN.50 SEC.EAST,ALONG AND WITH THE SOUTH LINE OF SAID CALLED 0.9786 ACRE TRACT,THE NORTH LINE OF SAID CALLED 0.687 ACRE TRACT AND THE NORTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.98 FEET TO THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH OVER AND ACROSS SAID CALLED 0.687 ACRE TRACT AND WITH THE EAST LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 219.77 FEET TO THE NORTH LINE OF SAID CALLED 15.174 ACRE TRACT AND BEING THE SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE,SOUTH 89 DEG.56 MIN.36 SEC.WEST,ALONG AND WITH THE NORTH LINE OF SAID CALLED 15.174 ACRE TRACT,THE SOUTH LINE OF SAID CALLED 0.687 ACRE TRACT AND THE SOUTH LINE OF THE HEREIN DESCRIBED TRACT A DISTANCE OF 15.00 FEET TO THE POINT OF BEGINNING,CONTAINING 0.0747 ACRES MORE OR LESS. OF r `si ii o. JACK EDWIN MEAUT .!.� .rte.� •' . �iT.•ofifSs% *Aa G 5uft4li- �7 8865 COLLEGE PROW (409)860-7168 SUITE 200 I FAX (409)860-7169 BEAUMONT TEXAS E-mAiL jm@nechesengineers.com Z �� "" ' 7T707 EXHIBIT G, 0.9786 ACRE TRACT TRACT ONE � I C.C.F. # 2005025845 � I `}6200 007. W �g00 al I /69 5' 60 E 69 I I I N 69°51'50"E 15.98' I i I I 0.0747 ACRE EASMENT I cti RLS.D. 0.687 ACRE TRACT cQ E ^ of VOL. 1859, PC. 245 o W N D.R. OF J C., TX. to a 420 �v f � I I � I I i S 89956'36"W I 15.00' _ _S 89°56'36° W 129.97' I B.I.S.D. 15.174 ACRE TRACT VOL. 1862, PC. 81 D 15 30 60 D.R. OF J.C., T. PLAT OF 15' UTILITY EASEMENT ACROSS C r 0.0687 ACRE TRACT ��.&,STtj.cO IN THE � y• �.�,, • JAMES DRAKE SURVEY, ABSTRACT No. 71 :uu:1i Eow 1��wr JEFFERSON COUNTY, TEXAS •<• 5809 •F.4 FEBRUARY 2010 �q.•Ortss��'.to I MZWZSCHAUMBURG&POLK,nvc 86ALWOvr•HOLWON•TYLER Firm R.Y"Mw R F000920 888900E 9mt 8.40&9 L Tors 77707 40BBBBD3A/P.40S1i88f13:T7 F EDMIN MFAUT GATE TEXAS REOWERED PROFESSIONAL UND SURVEYOR NO.9P— EXHIBIT "H" F:/8NT/tO78.3/BISD-15—ESAR.OWC B RICH WITH OPPORTUNITY BEAUMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager PREPARED BY: Tom Warner,Director of Public Works MEETING DATE: June 15,2010 REQUESTED ACTION: Council consider a resolution authorizing the execution of a License to Encroach Agreement with Entergy at 1270 West Cardinal Drive. RECOMMENDATION Administration recommends authorization to execute a License to Encroach Agreement with Entergy for the installation of a power line into a City of Beaumont water line easement located at 1270 West Cardinal Drive. BACKGROUND Entergy proposes to install a power line one(1) foot into the City of Beaumont's ten(10)foot water line easement located at 1270 West Cardinal Drive. The power line will serve the new Islamic Center at Cardinal and Avenue A. The License Agreement protects the City from liability and provides a thirty(30)day cancellation clause. BUDGETARYIMPACT There is a one time fee of$500 for the License to Encroach. \engentergy-ib 8 June 2010 COMMENTS FROM DEPARTMENTS AND/OR UTILITY COMPANIES FOR LICENSE TO ENCROACH APPLICATION PROPERTY DESCRIPTION: A power line, one foot (1') into the City's ten foot (10') waterline easement for a distance of two hundred fifty feet (250') on the southwest property line of Lots 102 and 103 of the Gladys City Oil, Gas Manufacturing Co. Addition(1270 W. Cardinal Drive). APPLICANT: ENTERGY DATE OF DISTRIBUTION: May 19, 2010 DUE: May 31,2010 1) Joris P. Colbert, City Engineer Date Received: 5-24-2010 Acceptance and Approval. 2) Luke Stevens, Streets & Drainage Superintendent Date Received: N/A 3) Jack Maddox, Fire Marshall Date Received: N/A 4) Hani Tohme, Water Utilities Date Received: 5-25-2010 Acceptance and Approval.The City has an existing water main within the vicinity of this property. According to the water map, we have a six (6) inch water main located within the ten (10) foot exclusive water line easement. 5) Stephen Richardson,Planning Manager Date Received: N/A 6) Mark Horelica, Transportation Manager Date Received: N/A 7) Patrick Sam, CenterPoint Energy Entex Date Received: N/A 8) Jeffrey Richard, Entergy[Applicant] Date Received: N/A 9) Cliff Moore, AT&T Date Received: N/A 10) Richard Le Blanc, D.D.#6 Date Received: N/A 11) Tyrone Cooper, Legal Department Date Received: 6-7-2010 Acceptance and Approval. comments summary-entergy