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PACKET AUG 20 2013
149('1{ 'All It OPPOHT1 5111 �^1 i T e E'. 0 _X 0 _A * S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS AUGUST 20, 2013 1:30 P.M. CONSENT AGENDA * Approval of minutes—August 13, 2013 * Confirmation of committee appointments A) Approve a resolution approving the renewal of an annual support agreement for the ShoreTel phone systems B) Approve a resolution authorizing the settlement of the claim of Johnny Owens C) Approve a resolution approving the waiver of interest charges on a demolition lien in the amount of$11,849.48, fees in the amount of$16.00 and a reduction of principle in the amount of$7,924.00 for property described as Blanchett 1, W1/2 Lot 73 to Lot 75, Block 7, and accepting a payment of$10,000 from the property owner D) Approve a resolution recertifying the Small Business Revolving Loan Fund Plan A RICH WITH OPPORTUNITY r T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer$I5 MEETING DATE: August 20, 2013 REQUESTED ACTION: Council consider a resolution approving the renewal of an annual support agreement for the ShoreTel phone systems from Creative Switching Designs, Inc. in the amount of $66,649.60 for use throughout the City of Beaumont. BACKGROUND The ShoreTel phone system is in use in a large number of City facilities. The ShoreTel phone system provides telephone communications, voice mail and four digit dialing to all facilities with ShoreTel installed. The purchase is exempt from competitive bidding since it is available from only one (1) source having exclusive rights to maintain the ShoreTel infrastructure. FUNDING SOURCE General Fund—Information Technology Department. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the renewal of an annual support agreement for the ShoreTel phone systems from Creative Switching Designs, Inc., of Houston, Texas,the sole source having exclusive rights to maintain the ShoreTel infrastructure, in the amount of $66,649.60 for use by all City departments. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of August, 2013. - Mayor Becky Ames - B DIGIT WITH OPPORTUNITY 111'CA,[11�ICI 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: August 20, 2013 REQUESTED ACTION: Council consider a resolution authorizing the settlement of the claim of Johnny Owens. BACKGROUND This matter was most recently presented and discussed in Executive Session held on August 13, 2013. The City Attorney is requesting authority to settle this claim in the amount of$25,316.81. FUNDING SOURCE General Liability Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO. WHEREAS, the claim of Johnny Owens has been discussed in an Executive Session properly called and held Tuesday, August 13, 2013; and, WHEREAS, the City Attorney is requesting authority to settle this claim; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be and he is hereby authorized to settle the claim of Johnny Owens and pay for the repair of damages in the amount of Twenty-Five Thousand Three Hundred Sixteen and 81/100 Dollars ($25,316.81); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the claim. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of August, 2013. - Mayor Becky Ames - c <'ti tiffs 0 PP0&t UNIT Y 111'EA,[11�ICI T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer) MEI,:TING DATE: August 20, 2013 REQUESTED ACTION: Council consider a resolution approving the waiver of interest charges on a demolition lien in the amount of $11,849.48, fees in the amount of$16.00 and a reduction of principle in the amount of$7,924.00 for property described as Blanchett 1, WI/2 Lot 73 to Lot 75, Block 7 resulting in a remaining lien amount of$10,000.00. BACKGROUND The property described above is located at 1438 College Street and owned by Demetria Juarez. The City demolished a structure on the property on or about July 11, 2006 when the property was owned by Ms Juarez's mother, Debra Hunt. No payment for the demolition was received and a demolition lien was placed on the property January IL 2007. The demolition lien and other cliarges total $29,789.48, which represents $17,924.00 in principal, $11,865.48 in interest and fees. The property is currently on the tax roll at a value of$9,380.00. Mr. Mike Aref is interested in purchasing the property for commercial development on College Street but has not moved forward with the purchase due to the City of Beaumont's lien. Ms Juarez is proposing a payment of$10,000.00 and requesting the remaining balance of principal, interest and fees be waived. She has also entered in a payment arrangement to pay the delinquent taxes of 511,000.00 on the property. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. NIs. Nada Ro<(ers City of Beaumont - Cash Management 11. O. Box 3827 Beaumont, TX 77704 Deal- Ills. Rogers: My name Demetria Juarez and own the following piece of property-1438 College Street. Beaumont, Texas 77702. In this letter, I'm requesting that the City of Beaumont reduce the demolition lien amount to $10,000. I bought the property through a quit-claim deed from my mother on February 16, 2011. I'm not a sophisticated purchaser and was unaware of the negative consequences of a quit-claim deed. When I bought the piece of property. I was entirely unaware that the City of Beaumont had demolished a structure on the property in July of 2006. The maximum market value of the property as of 2013 is $9,380.00. See the attached document setting forth the property value. Immediately after receiving the property through the quitclaim deed, I realized the property had back taxes in the amount of $t 1,000. I immediately entered into a payment plan to pay off the back taxes and have paid off the entire amount. Recently I entered into negotiations to sell the property to a commercial land developer in Beaumont. The commercial land developer intends to convert the vacant lot into commercial property which will generate tax revenue to the City. In the course of negotiations, l realized that a demolition lien existed on the property for approximately $31,113.61 ($17,924.00 comprised of principal). However, the market value of the property is $9,380.00. This lien will prevent me from selling the property unless I can get the amount reduced to a manageable amount--$10,000.00. I'm already losing money on the property (already paid $11,000.00) in back taxes and cannot bleed much more money into the property. It does not make economical sense to sell the property and I will actually lose money on the sale unless I can get the lien amount reduced to $10,000.00. 1 much rather the commercial developer make good use of the property than letting it rot a,,vay as a vacant piece of land because I cannot pay off the lien. I know this may not matter, but I'm 34 years of age, a life-long resident of Beaumont, married, and have 6 kids. My most recent child (Francisco Juarez) was born on March 27, 2013, with severe medical complications and I'm selling this property in order to pay for his medical treatment. Thank you very much for reading my letter and considering my situation. If you have any questions please feel free to call me day or night (409-791-0236). I really want to get square with the City and sell the property for my son. Jefferson CAD Property Search Results > 8810 JUAREZ DEMITRIA THRESE for Year 2013 Property Account Property ID: 8810 Legal Description: BLANCHETTE 1 E1/2 L73 TO L 75 B 7 Geographic ID: 005250-000-004800-00000-5 Agent Code: Type: Real Property Use Code. C2 Property Use Description: "COMMERCIAL,VACANT" Location Address: 1408 COLLEGE ST Mapsco: 13 TX Neighborhood: Map ID: 0 Neighborhood CD Owner Name: JUAREZ DEMITRIA THRESE Owner ID: 289934 Mailing Address: 3240 WILLOWOOD DR %Ownership: 100.0000000000% BEAUMONT,TX 77703-2744 Exemptions: Values (+)Improvement Homesite Value: + $0 (+)Improvement Non-Homesite Value: + $0 (+)Land Homesite Value: + $0 (+)Land Non-Homesite Value: + $9,380 Ag!Timber Use Value (+)Agricultural Market Valuation: + $0 $0 (+)Timber Market Valuation + $0 $0 (_)Market Value: _ $9,380 (—}Ag or Timber Use Vaiue Reduction:— $0 (_)Appraised Value- _ $9,380 (—} HIS Cap: — $0 (_)Assessed'Value: _ $9,380 Taxing Jurisdiction Owner: JUAREZ DEMITRIA THRESE %Ownership: 100.0000000000% Total Value: $9,380 Entity Description Tax Rate Appraised Value Taxable Value Estimated Tax 101 BEAUMONT INDEPENDENT 1.315000 $9,380 $9,380 $123.35 SCHOOL DISTRICT 221 CITY OF BEAUMONT 0.64D000 $9,380 $9,380 $60.03 341 PORT OF BEAUMONT 0.070800 $9,380 $9,380 $6.64 755 SABINE-NECHES 0.027870 $9,380 $9,380 $2.62 NAVIGATION DIST 849 DRAINAGE DIST RICT#6 0.205587 $9,380 $9,380 $19.29 901 JEFFERSON COUNTY 0.365000 $9,380 $9,380 $34.23 A59 FARM AND LATERAL ROAD 0.000000 $9,380 $9,380 $0.00 CAD JEFFERSON CO 0.000000 $9,380 $9,380 $0.00 APPRAISAL DISTRICT Total Tax Rate: 2.624257 Taxes w/Current Exemptions: $246.16 Taxes w/o Exemptions: $246.16 Improvement/Building No improvements exist for this property. Land # Type Description Acres Sqft Eff Front Eff Depth Market Value Prod.Value 1 RES125 RES125 0.2583 11250.00 75.00 150.00 $9,380 $0 Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Assessed 2014 NIA NIA NIA N/A N/A N/A 2013 $0 $9,380 0 9,380 $0 $9,380 2012 $0 $10,780 0 10,780 $0 $10,780 2011 $0 $10,780 0 10,780 $0 $10,780 2010 $0 $10,780 0 10,780 $0 $10,780 2009 $0 $10,780 0 10,780 $0 $10,780 2008 $0 $10,780 0 10,780 $0 $10,780 2007 $0 $10,780 0 10,780 $0 $10,780 2006 $0 $10,780 0 10,780 $0 $10,780 2005 $0 $10,780 0 10,780 $0 $10,780 2004 $0 $10,780 0 10,780 $0 $10,780 2003 $0 $10,780 0 10,780 $0 $10,780 2002 $0 $10,780 0 10,780 $0 $10,780 2001 $0 $10,780 0 10,780 $0 $10,780 Deed History-(Last 3 Deed Transactions) # Deed Date Type Description Grantor Grantee Volume Page Deed Number 1 2/16/2011 12:00:00 AM WD WARRANTY DEED HUNT DEBRA RAE JUAREZ DEMITRIA 2011007724 2 4/7/2006 12:00.00 AM WD WARRANTY DEED EST OF RUBY NEV HUNT DEBRA ARE 2006014336 3 5/15/2002 12:00:00 AM WD WARRANTY DEED NEWSOME RUBY 2002038749 Questions Please Call (409)840-9944 Website version. 1.2.2.2 Database last updated on: 8/13/2013 11:48 PM ©2013 True Automation, Inc.All Rights Reserved. Privacy Notice This site only supports Internet Explorer 6+, Netscape 7+and Firefox 1.5+. RESOLUTION NO. WHEREAS, a demolition lien, dated January 11, 2007, in the amount of$29,789.48 represented by $17,924.00 in principal, $11,849.48 in interest and $16.00 in fees, exist against property described as 1438 College Street, Blanchett 1, W 1/2 Lot 73 to Lot 75, Block 7; and, WHEREAS, Demetria Juarez is attempting to sell the property described as 1438 College Street, Blanchett 1, W 1/2 Lot 73 to Lot 75, Block 7 and the net balance of the pending sale will be greatly diminished by said lien; and, WHEREAS, the City recommends approving payment in the amount of$10,000.00 for a demolition lien on property described as 1438 College Street, Blanchett 1, W 1/2 Lot 73 to Lot 75, Block 7 and waiving principal in the amount of$7,924.00, waiving interest in the amount of $11,849.48 and waiving fees in the amount of $16.00; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted, and, THAT the lien payoff for 1438 College Street, Blanchett 1, W 1/2 Lot 73 to Lot 75, Block 7 be and it is hereby approved in the amount of $10,000.00, principal be and it is hereby waived in the amount of $7,924.00, interest be and it is hereby waived in the amount of $11,849.48 and fees be and are hereby waived in the amount of $16.00 and; BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to execute all documents necessary to evidence the release of the demolition lien in the amount of $29,789.48 for the above described property in return for the payment of $10,000.00 principal. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of August, 2013. - Mayor Becky Ames - D z is it '+r"t';'"z'ii: eb 5'I`f3 kz"I'l7 iS, 'r y [I 11E A,11 1�1 C1 I T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Offieero MEETING DATE: August 20, 2013 REQUESTED ACTION: Council consider a resolution recertifying the Small Business Revolving Loan Fund (RLF) Plan. BACKGROUND The Small Business Revolving Loan Fund Program was created with an initial grant from the Economic Development Administration (EDA) of$500,000 with matching funds from the Community Development Block Grant (CDBG) of$250,000. To be approved for the grant, the City was required to develop a plan to support the area's economic development strategy and to create policies and procedures to administer the program. The original City of Beaumont RLF Plan was adopted by the City Council on February 24, 1987, was last revised June 16, 2009 and last re-certified August 28, 2012. The plan is required to be certified annually by council The plan is consistent with and supportive of the area's current economic adjustment strategy. is being operated in accordance with the policies and procedures contained in the RLF Plan and the portfolio meets the standards contained therein. There are no recommended changes to the plan since the last re-certification. Tlic Small Business Revolving Loan Fund Plan is attached for your review. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby certifies that the Small Business Revolving Loan Fund (RLF) Plan is consistent with and supportive of the area's current economic adjustment strategy, and the RLF is operating in accordance with the policies and procedures contained in the RLF Plan and the loan portfolio meets the standards contained therein. The Plan is substantially in the form attached hereto as Exhibit"A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of August, 2013. - Mayor Becky Ames - CITY OF BEAUMONT, TEXAS SMALL BUSINESS REVOLVING LOAN FUND PLAN ORIGINAL PLAN APPROVED OCTOBER 31, 1987 REVISED SEPTEMBER 18, 2004 REVISED JUNE 16, 2009 EXHIBIT "A„ TABLE OF CONTENTS Introduction 2 Program Element to the Plan 3 Goals and Objectives 3 Identification of the Area's Financing Problems 6 Targeting Criteria 7 Standards for the Revolving Loan Fund Portfolios 7 Financing Policies 8 Related Activities 9 Administration Element of the Plan 10 Small Business Revolving Loan Fund Board 10 Staff 10 Conflict of Interest 10 Loan Selection and Approval Process 11 Loan Servicing 12 Administrative Expenses 12 Recapitalization Strategy 12 Other Requirements 13 1 INTRODUCTION Beaumont is the largest populated city in the southeast portion of Texas. The southeast Texas region is highly industrialized and significantly agricultural with two navigable rivers (Sabine and Neches) which allow ocean-going vessels to transport import and export trade to the Gulf of Mexico. Due to the discovery of oil in the area, the petrochemical industry developed as a major economic contributor for the region. In the 1980's the oil industry saw a worldwide downturn which resulted in historically high unemployment rates for southeast Texas and Beaumont. The need for new economic goals and strategies for the area became apparent. In 1987 the City of Beaumont created a new Economic Development division and pursued the approval and acquisition of a grant from the Department of Commerce, Economic Development Administration. With a grant of $500,000 from EDA and a city match of $250,000, the City was able to begin the financing of the expansion and start-up needs of local small businesses. The South East Texas Economic Development District, Inc. (SETEDD) was created in 1993 to facilitate the flow of U.S. Department of Commerce and Economic Development Administration grant and loan funds for creating new jobs and/or saving existing jobs in the southeast Texas region. SETEDD through a Comprehensive Economic Development Strategy or CEDS creates objectives and strategies that help to steer the economic direction of the region. According to the Vision Statement of the CEDS, goals are: Workforce Development New and Existing Business Development Infrastructure Develop Advanced Materials Cluster Tourism Quality of Life The City of Beaumont and the Small Business Revolving Loan Fund Board use these goals in administering the City's Small Business Revolving Loan Fund and creating loan opportunities for small businesses that will better not only those businesses but the City and the entire southeast Texas region. 2 I. PROGRAM ELEMENT TO THE PLAN A. Goals and Objectives 1. COMMITMENT TO ECONOMIC DEVELOPMENT: The Economic Development Policy Plan consists of goals, objectives, policies, and proposals for guiding Beaumont's future economic growth and development. Outside assistance is provided through a contact with the Beaumont Chamber of Commerce for various economic development activities such as marketing analysis, business retention efforts and working with business prospects. 2. GOAL: INCREASE THE NUMBER OF PERMANENT JOBS AVAILABLE TO CITIZENS OF BEAUMONT AND SOUTHEAST TEXAS Emphasis should be placed on value added jobs which are most likely to lead to further job creation. Jobs in "export" industries bring money into the region through production of goods or services that are exported outside of Beaumont. These jobs, which are generally highly paid, create spendable.household income, thus generating new jobs in sales and services. Beaumont also needs jobs which can be filled by workers who were previously employed in shipyards, refineries, and chemical plants. These skilled workers are among Beaumont's most valuable economic resources and will leave the area if new job opportunities are not developed. Because of an especially high unemployment rate among Beaumont's sizable minority population, entry level jobs with on-the-job training are needed to bring unskilled workers from low-income backgrounds into the workforce. WHERE WILL THESE JOBS COME FROM? New jobs come from three sources: 1) Expansion of existing business 2) Creation of new, entrepreneurial enterprises 3) Attraction of plants or business from outside the community Research indicates that expansion of existing business and creation of entrepreneurial enterprises account for 80 to 90% of all new jobs. OBJECTIVE NO. 1: MAINTAIN AN EFFECTIVE ROLE FOR THE CITY OF BEAUMONT ECONOMIC DEVELOPMENT PROCESS Policy 1.1 Role of the City The City will continue to serve in the leadership role in the following areas of economic development: A. Strategic Planning - analyzing Beaumont's competitive strengths and weaknesses in the world economy and then taking aggressive action to capitalize on the strengths and overcome the weaknesses. 3 B. Legislative Advocacy - working closely with Jefferson County, The Port of Beaumont, Drainage District #6, the Jefferson County Navigation District, BISD, other municipalities in the region, and other State and Federal elected officials to secure major funding assistance and to enact or change laws to increase the strategic competitiveness of the local/regional economy. C. Leveraging and Public/Private Partnerships - using the limited resources available to the City government, such as grants, development incentives, infrastructure, land, and staff to attract private sector investments which will create or retain jobs and/or increase the tax base. D. Develop and Communicate a Vision of the Future - the City's elected officials and staff must motivate the community to set its sights on the goal of becoming a first-class medium-sized city with a quality of life capable of attracting new private investment and population. The City will serve in a leadership and cooperative role in the following area, participating actively and lending whatever support is needed to other members of the economic development network: a. Promotion: assisting the Chamber of Commerce, the Convention and Visitors Bureau, BUILD, Inc/Beaumont Main Street, Entergy, and other prornotional groups in marketing Beaumont as a business location, tourist destination, etc. b. Business Attraction: working cooperatively with the Chamber/Economic Development Council in attracting new industry. Policy 1.2 The City's Commitment The City will commit the assets is has available—staff, incentives, land, taxing authority, infrastructure, tax-exempt bonding authority, and access to State and Federal grants—to the local and regional economic development efforts. The City will also strive for excellence in conducting its basic responsibilities of providing public services and infrastructure, recognizing that an efficient, competent and responsive city government is one of the prerequisites for economic growth of a community. Allocation of resources for construction of new or the repair or extension of existing city infrastructure and new or revised city services will be implemented on the basis of need; however, the impact of such actions on the economic development of the City as a whole will be considered of overriding importance when deciding where to allocate the City's resources among areas which are of equal need. Policy 1.3 Public Return on Investment The City will examine the potential return on the public's investment when determining where and how its limited resources will be committed. Return on public investment will be measured in terms of jobs created, jobs retained, and broadening of the tax base. 4 OBJECTIVE NO. 2 ENCOURAGE A CLIMATE WHICH FACILITATES BUSINESS GROWTH AND SUSTAINABILITY Policy 2.1 The City of Beaumont recognizes that the degree of cooperation and support of local government plays a major role in business location and expansion decisions. The City resolves to improve both its efficiency and effectiveness in providing assistance and services to business. Policy 2.2 The City of Beaumont will be committed to improving the quality of life for current and future residents. In recognition of the connection between economic development, the quality of life or livability of a city, and the development of a favorable sense of place among residents and non-residents alike, the City supports the inclusion of "quality of life" and "environmental quality" considerations in making planning and development decisions. Visual community appearance considerations in the city's planning and development efforts are to be considered important economic development actions which will improve Beaumont's ability to attract new businesses and employment opportunities. In realization of the fact that investing in the overall improvement in the quality of life or livability of the City is not a goal which can be achieved overnight, the City will concentrate its resources on the cleanup and rehabilitation of selected neighborhoods and on the development and improvement of urban design plans for selected open space, street corridor, and city entrance or gateway areas. OBJECTIVE NO. 3 ATTRACT NEW BUSINESSES AND INDUSTRIES TO THE BEAUMONT AREA Policy 3.1 The City will work with the Chamber of Commerce and other economic development groups in a team effort to bring new businesses and industries to the Beaumont area. Policy 3.2 Efforts to attract new business and industry will be targeted on industries whose locational needs are consistent with the Beaumont area's locational attributes. Policy 3.3 Continue to promote the Beaumont area's resources and quality of life factors through the efforts of the Beaumont Convention and Visitors Bureau. OBJECTIVE NO. 4: RETAIN AND EXPAND EXISTING BUSINESSES AND INDUSTRIES Policy 4.1 The City of Beaumont recognizes that existing businesses and industries are the community's most important economic resources and will support the efforts of existing businesses to expand and improve operations. Policy 4.2 An "outreach" program to foster open lines of communication between the city government and existing businesses and industries will continue. 5 OBJECTIVE NO. 5: STIMULATE THE CREATION OF NEW BUSINESSES Policy 5.1 Continue the City's Small Business Revolving Loan Fund which provides financing assistance for new businesses having difficulty in obtaining conventional financing. Policy 5.2 Continue to work with the Small Business Development Center at Lamar University, which assists start up businesses and processes applications for the City's Small Business Revolving Loan Fund. OBJECTIVE NO. 6: IMPROVE THE COMPETITIVE ADVANTAGES OF THE BEAUMONT AREA ECONOMY Policy 6.1 The City of Beaumont will assume a role of partnership with local business and industry in competing with producers in other regions, state and countries. This means city actions involving taxes, infrastructure, regulations and development incentives will focus on making it easier, more efficient and more advantageous for doing business in Beaumont. Policy 6.2 Expand the scope of Beaumont's market area by capitalizing on its role as a regional cent of trade, professional services, entertainment, distribution, and medical services. B. Identification of the Area's Financing Problems A review of Beaumont's capital market and discussions with local small business persons indicate that local capital market has the following characteristics. 1. Beaumont banks typically follow conservative policies and practices regarding allocation of deposits for lending purposes. While this is not unique to Beaumont or the region, the adverse effect of the local and statewide economy has even further reduced the availability of the banks' capital in Beaumont. Beaumont banks are looking for additional outside capital projects as a cushion for their loans. 2. There is reluctance to provide financing to younger or higher risk companies or to companies located in blighted or depressed areas of the community. 3. There is a shortage of long term reasonably priced commercial financing available to small business located in Beaumont. 4. Local banks appear to be reluctant to make loans smaller than $75,000.00. 5. There is a lack of capital for minority business. The Revolving Loan Fund (RLF) will serve a critical function in the City's economic development program by providing assistance in financing small business that will provide jobs primarily for persons of low and moderate income, the unemployed, and the underemployed, and projects which will diversify and strengthen Beaumont's economic base. 6 Specific Objectives of the Revolving Loan Fund: The Revolving Loan Fund will promote economic development by: 1. Creating New Employment. Opportunities: The Revolving Loan Fund will be utilized to assist in expansion or creation of small business enterprises, owned or operated by minorities, women, or the economically disadvantaged. 2. Increasing Private Financing Availability: Revolving loan fund monies will be used to leverage private financing for small business, availability of financing for small business enterprises owned or operated by minorities, women or the economically disadvantaged and to provide incentives to the financial institutions to make loans to small businesses. C. Targeting Criteria The Revolving Loan Fund will target small businesses which can best assist the City in achieving economic development objectives. The order or priority will be: 1. Small businesses which will create the greatest number of jobs available to the unemployed, underemployed, or low or moderate income persons at the least cost to the Revolving Loan Fund; 2. Small businesses which are owned and operated by minorities, women, or the economically disadvantaged; 3. Small businesses which are located within Beaumont's Community Development and Housing Neighborhood Strategy Areas. D: Standards for the Revolving Loan Fund Portfolios To ensure the effectiveness of the Revolving Loan Fund as an economic development tool, the following standards will serve as guidelines for Revolving Loan Fund participation: 1. It is the objective of the Revolving Loan Fund to leverage each dollar three or four times through participation with private sector lending institutions, the SBA and other government loan programs and private investors. For each $10,000 of total investment, one job will be generated. The Revolving Loan Fund will leverage two private sector dollars for every one RLF dollar at a minimum. 2. Revolving Loan Fund monies will be available to finance the expansion and start-up needs of small businesses. Financing will be available for fixed assets (plant and equipment) and for working capital. The Revolving Loan Fund will give priority to the businesses that create the maximum number of new jobs. The Revolving Loan Fund applicants will be screened for potential use of vacant facilities located in blighted areas of the community. 7 $100,000.00 of the Revolving Loan Fund wilt be made available to small businesses for low interest, bridge/gap, $10,000-$20,000 loans to be distributed within 6 months of a natural disaster if the City of Beaumont is declared a national disaster area. Existing Small Business loan recipients who are in a current or 1-2 month delinquent status with their loans may request a deferral of loan payments to help them recover from the natural disaster. 3. Other economic development objectives and standards include the following: The Revolving Loan Fund borrower wit[ be required to have a 10% equity position in the project. Minorities and females wilt be encouraged to participate in the Revolving Loan Fund. To prevent displacement of existing capital, all applicants must have written evidence of the need for the RLF funds. E. Financing Policies: The Revolving Loan Fund will include the following goals: 1. The Revolving Loan Fund loans are expected to range between $10,000 and $200,000. 2. No more than 50% of the total SBRLF available capital shall be loaned to any one borrower during any one time period. 3. Terms and Conditions of the Loans The expected amortization period for Revolving Loan Fund loans will be as follows: Working capital loans: Negotiated within normal commercial financing range Machinery and Equipment: Based upon the useful life of equipment financed Land and Building: 15-25 years 4. Interest Rates: Interest rates for all Revolving Loan Fund loans will be variable depending on the needs and financial condition of the applicant. Interest rate floors and ceiling will be established. The minimum interest rate wilt be four percent. 5. Special Financing Techniques: Revolving Loan Fund staff and administration will employ flexible financing techniques designed to meet the needs of the borrowers and to maximize the effectiveness of the Revolving Loan Fund program. The special financing techniques that may be utilized include: Lower than market rates. Extended amortization period for loans. Moratoriums on loan payments for a specified period of time up to a maximum of six months. 8 Existing Loan Program recipients may request to change the payment terms of their loan in an effort to facilitate the continued repayment of the loan when they are having difficulty in doing so. 6. Collateral and Equity requirements: Fixed asset financing will be secured by the fixed assets financed with other assets included if required. Collateral for working capital loans will include inventory, accounts receivable, fixed assets, cash and personal guarantees. The Revolving Loan Fund will mandate the contribution of equity by the borrower, requiring not less than 10%. 7. Restructuring Loans: The Revolving Loan Fund will not be involved in restructuring third-party loans or in refinancing projects. 8. Use of RLF Income: RLF income includes all interest earned on outstanding loan principal, interest earned on accounts holding idle RLF funds, loan fees and other loan-related earnings. RLF income does not include repayment of RLF loan principal and any interest remitted to the U. S. Treasury pursuant to a sequestration of excess funds. RLF income will be used to pay administrative expenses as long as RLF income and administrative expense are earned in the same 12-month reporting period and administrative expenses don't exceed 50% of the RLF income or $100,000.00. Any excess RLF income in a 12-month reporting period will be added to the RLF capital base and made available for loans. Any administrative expenses that exceed 50% of the RLF income may be paid from the City of Beaumont Community Development Block Grant Funds and the appropriate RLF Income and Expense Statement will be prepared and submitted according to EDA regulations. 9. Participation with other loan programs: To accomplish the stated goals of the Revolving Loan Fund, participation on loans with the following financial institutions ins anticipated: • Banks throughout the City. • Small Business Administration. • Farmer's Home Administration. • SBA Certified Development Corporation (504's). • SBA Small Business Investment Corporation (MESBIC). • Savings and Loan Associations. • Local equity capital funds. F. Related Activities: 1. Loan Packaging and Referral Service: The Revolving Loan Fund loans will be packaged by the staff in cooperation with the loan officer and staff of the participating financial organization. Those applicants who do not qualify for Revolving Loan Fund loans but are viable applicants for other financing assistance will be referred to the local office of the Small Business Administration, the Southeast Texas Economic Development Foundation (A SBA 504), and other commercial banks or savings and loans in the community. 2. Linking Jobs to the Long-Term Unemployed: Should the borrowers need assistance in recruiting the long-term unemployed and low-income persons, the company will be referred to agencies capable of providing assistance. Those agencies include: • Workforce Solutions Southeast Texas • Local Employment Agencies • Advertisement in Local Newspapers 9 II. Administrative Element of the Plan A. Small Business Revolving Loan Fund Board The Mayor and City Council establishes citizen advisory boards, committees and commissions and appoints citizens within the community to serve on these various committees by approval of City Council. A Loan Administration Board will be formed with the membership as follows: 1. Members will be drawn from local financial institutions. 2. Other members will be appointed from the Small Business Development Center at Lamar University. 3. One member will be appointed representing the City of Beaumont. 4. The remaining members will be appointed from small and minority businesses or community organizations. Provisions will be made to assure strong representation among women and minorities. At least one member with financing experience must be present for each loan decision. Board members will be appointed to two year terms, which will be staggered to assure continuity on the board. The board will include members from both the public and private sectors. B. Staff The City's Finance Department, Cash Management Division, will provide support staff to the Revolving Loan Fund. The Cash Management staff has experience in analysis of business operations and financial statements and substantial billing and collection experience. The RLF staff will work closely with the particular commercial lending officers of the private financial institution(s) involved in the leveraging of each loan. The loan packages will be prepared to provide adequate loan security and allow maximum operating flexibility to the borrowers. C. Conflict of Interest 1. RLF funds shall not be available to a business entity if the owner of such entity or any owner of an interest in such entity is related by blood, marriage, law or business arrangement to an employee of the City of Beaumont or any member of the City Council, or a member of the SBRLF Loan Advisory Board unless the person(s) affected first discloses in writing to the Loan Advisory Board the potential benefit and the Loan Advisory Board determines that the benefit involved is not so substantial as to affect the integrity of the Board's decision process. 2. An officer, employee or board member of the SBRLF shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment or any other thing of monetary value for himself or for another person, from any person or organization seeking to obtain a loan. 3. Former Loan Advisory Board members and/or Officers are ineligible to apply for or receive loan funds for a period of one year from the date of termination of his/her service. D. Loan Selection and Approval Process 1. Marketing The Finance Department will have a coordinative managerial role in the areas of capital formation and supporting the existing network of economic development groups active in the area. The staff will also continue its ongoing contacts with the SBA and financial institutions. 10 Presentations will be made to the Chamber of Commerce, Minority Business Development Organizations and other potential sources of applicants. 2. Screening, Potential applicants for the RLF will be screened by the staff at the Small Business Development Center (SBDC) at Lamar University and participating financial institutions. Preliminary screening by the SBDC will include, but will not be limited to the following: • Eligibility criteria • Ownership and organizational structure • Potential for job creation • Funding requirements If the preliminary screening process indicates that the potential applicant is appropriate for the RLF, the applicant will be invited to make full application. The RLF staff and the Small Business Development Center will provide technical assistance to help applicants with the preparation of necessary documents. Applicants that are ineligible will be referred to other sources which may be appropriate including the SBA, the local 504 Corporation or other programs which may fit the needs of the applicant. 3. Applications At this phase of the process, the following information may be requested from the applicant and his/her financial institution: • Application Form • Summary description of business and the project being financed • Financial Statement (3 years) • Projections (3 years) Assumption (2 years existing) New Company (3 years) Profit and Loss Statements; Balance Sheets; Cash Flow Analysis • Personal Financial Statements • Cost Summary • Listing of Collateral • Commitment Letter • Appraisal (Financing Real Estate) • Jobs Form • Resume on Principals • Business Plans New (detailed description of the business to include the market, competition, location, management, personnel, and purpose of loan) Existing (one page document describing plans to grow or expand) • Certification of Cost-Architectural estimates; equipment vendor quotes; construction cost estimates 11 4. Evaluations Once all materials requested from the applicant have been submitted, an analysis of the loan request will occur, including review of the applicant's credit report. Staff assembles the information into a complete package and submits to the Loan Advisory Board for review. A decision is based upon factors including, but not limited to: • the ability of the applicant to repay the loan, • the applicant's managerial capabilities, • the long term retention of jobs that will be provided. 5. Considerations All loans shall be presented to the Loan Advisory Board for consideration. Applicants will be afforded an opportunity to address the Board and to answer questions. 6. Loan Closing Once final approval has been authorized by the board, staff and legal counsel will assist in preparation of loan closing documents in conjunction with the financial institution, including necessary deeds of trust, liens, mortgage instruments and loan agreements. 7. Disbursement Prior to closing, a schedule of loan disbursements will have been negotiated. 8. Monitoring Monitoring of the implementation of the project will begin after the initial disbursement. Continuing technical assistance will be provided as needed by RLF staff. The Grant's Administration Division will provide assistance with environmental impact and Davis-Bacon wage requirement issues. E. Loan Servicing The loan will be serviced in house by RLF staff who will institute a portfolio management system which monitors each loan on an ongoing basis for timely payment. A servicing agreement may be established with an outside agency to service the loans for the city, if cost effective, where funds will be returned to the Revolving Loan Fund by the private financial institutions on at least a quarterly basis. If a default appears eminent, the staff of the RLF will work with the financial institutions to avert such an occurrence. When default cannot be averted, the staff will commence foreclosure proceedings as mandated by State Law. F. Administrative Expenses Administrative expenses will be funded from RLF income, by city funds or from Community Development Block Grant funds. G. Recapitalization Strategy Capitalization of the RLF will be accomplished through recapitalization of RLF loan principal payments, excess RLF income and through program income funds from the CDBG program. 12 H. Other Requirements I. Compliance with Civil Rights Laws: Applicants for RLF assistance will be required to pledge not to discriminate against employment applicants. They will be required to sign an affidavit to that effect at the loan closing. Any proven instance of discrimination proven against the loan applicant shall be grounds for calling loan. 2. Environmental Impact: Staff will consider the environmental impact of all proposed projects. 3. Access for the Handicapped: All buildings involved in the proposed project must be made accessible for persons with impaired mobility. 4. Insurance: Key man insurance, flood hazard insurance, liability insurance, or other types may be required of the applicant. 5. Davis-Bacon: Construction financed in whole or in part by the RLF will meet the requirement of the Davis- Bacon Act, as amended (40 U.S.C. 276a-5). 6. Relocation: The location of loan projects will be located within the city limits of Beaumont. The City of Beaumont assures that loans will be recalled if the project and/or business activity move from the area. Businesses relocating jobs from another labor area are not eligible borrows. 7. Hold Harmless Provision: RLF loan documents and procedures will protect and hold the Federal government harmless from and against all liabilities that the Federal government may incur as a result of providing an Award to assist (directly or indirectly) in site preparation or construction, as well as the direct or indirect renovation or repair of any facility or site. A hold harmless agreement will be added to all loan documents. 13 RICH WIT11 riPPOVITtINIT'i [1EA-[1M0N* T • IE • X • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS AUGUST 20, 2013 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda item No. 1/Consent Agenda * Consent Agenda GENERAL BUSINESS I. Consider a resolution approving a payment to Jefferson County for the renewal of an annual maintenance agreement for the 800 MHz radio system used by various city departments WORK SESSION * Review and discuss a door-to-door solicitation ordinance proposed by Councilmembers Mike Getz and W. L. Pate COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. I August 20, 2013 Consider a resolution approving a payment to Jefferson County for the renewal of an annual maintenance agreement for the 800 MHz radio system used by various city departments RIiCH WITH OPPORTUNITY [1EAl[IM011 T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak. Chief Technology Officer MEETING DATE: August 20, 2013 REQUESTED ACTION: Council consider a resolution approving a payment to .Jefferson County for the renewal of an annual maintenance agreement with Motorola in the amount of$179.571.46 for use throughout the City of Beaumont. BACKGROUND The 800 MHz radio system is used by EMS, Fire, Police and numerous other departments throughout the City for daily communications. The purchase is exempt from competitive bidding since it is available from only one (1) source having exclusive rights to maintain the radio infrastructure. The maintenance agreement provides for constant monitoring of the radio system and 911 dispatch centers as well as dispatching of repair personnel with replacement parts when required. The 800 MHz radio system is shared with agencies throughout Hardin, Jefferson and Orange counties. The annual cost of the maintenance contract is divided among all agencies by the number of radios each agency has on the system. Total billing to the City of Beaumont was reduced by a credit for costs incurred supporting the system during the past year. FUNDING SOURCE General Fund, Water, Solid Waste and Fleet. RECOMMENDATION Approval of resolution. i 4 'r i JEFFERSON COUNTY INVOICE 1149 PEARL 7TH FLOOR BEAUMONT, TX 77701 SERVICES PROVIDED FOR: City of Beaumont INVOICE DATEI 7130/13 Attn: Bart Bartkowiak INVOICE NUMBER 1301 801 Main Beaumont, Tx 77701 1 800 MHz Radio System Annual Cost 222,671,78 $222,671.78 511/2013 -4/30/2014. See attached for detail. 1 Credit for costs paid by City (36,700.96) ($36,700.96) 1 Credit for costs paid by City on behalf of Jefferson County (6,399.36) (6,399.36) 179,571.46 $179,571.46 Ouestions concerning this invoice? MAKE ALL CHECKS PAYABLE TO: PAY THIS Call: Mark Dubois JEFFERSON COUNTY AMOUNT (409)835-8734 1149 PEARL 7TH FLOOR BEAUMONT, TX 77701 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to approve payment of an invoice in the amount of $179,571.46 to Jefferson County for the renewal of an annual maintenance agreement with Motorola for support of the 800MHz radio system. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of August, 2013. - Mayor Becky Ames - WORK SESSION Review and discuss a door-to-door solicitation ordinance proposed by Councilmembers Mike Getz and W. L. Pate