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HomeMy WebLinkAboutPR 20741: HURRICANE HARVEY ACQUISITIONS/BUYOUTS COMMUNITY DEVELOPMENT BLOCK GRANT INTEROFFICE MEMORANDUM Date: March 11. 2019 To: The Ilonorable Mayor and City Council Through: Harvey Robinson, Interim City Manager From: Rebecca Underhill,Assistant City Manager/Acting Finance Director RE: P. R. #20741 Introduction: The intent of this Agenda Item is to seek the City Council's approval to submit the Hurricane Harvey Acquisitions/Buyouts Community Development Block Grant—Disaster Recovery(CDBG-DR) application with the Texas General Land Office(GLO) in the amount of$4,142,753.39. Background: The Texas General Land Office has allocated$4,142,753.39 to the City of Port Arthur for acquisitions/buyouts projects under the Community Development Block Grant Disaster Recovery Program. The original due date for the application was January 31,2019; however,the Texas General Land Office has granted the City a 60 day extension to submit its Infrastructure and Buyout applications. The completed applications will be submitted to the Texas General Land Office by March 31,2019. Traylor and Associates will assist the City with completing the application as well as administering the program for a three year contract period. Recommendation: It is recommended that City Council approve P. R. #20741 as discussed above. S:lgrants21LIurricane Harvey\RESOLUTIOMCAM for PR20741.docx P. R.No.20741 03/11/2019 ME-Grants Management • Page 1 of 4 RESOLUTION NUMBER A RESOLUTION AUTHORIZING THE CITY MANAGER TO FILE A GRANT APPLICATION WITH THE TEXAS GENERAL LAND OFFICE IN THE AMOUNT OF $4,142,753.39 FOR THE HURRICANE HARVEY ACQUISITIONSBUYOUTS COMMUNITY DEVELOPMENT BLOCK GRANT—DISASTER RECOVERY(CDBG-DR) GRANT. WHEREAS, the SETRPC Disaster Recovery Division (DRD) is working with the Texas General Land Office (GLO) in the development of plans to distribute and administer $5.024 billion in Community Development Block Grants for Disaster Recovery (CDBG-DR) funding allocated to the state from the U.S. Department of Housing and Urban Development(HUD); and, WHEREAS, GLO published the State of Texas Action Plan on April 10, 2018 describing the proposed use of the funds and encouraged communities to submit comments during a public comment period; and, WHEREAS, in the Action Plan, the GLO allocated $51,687,614 of recovery funds to the SETRPC region for local buy-out/acquisition programs and $105,013,221 for local infrastructure programs. GLO required that SETRPC submit a Method of Distribution (MOD) for funding for the twenty-four(24) Southeast Texas incorporated cities and counties; and, WHEREAS, the SETRPC-DRD developed a MOD that included the amount of funding available to eligible jurisdictions (cities and counties) for Hurricane Harvey related to buy- outs/acquisitions and infrastructure projects; and, WHEREAS, the City of Port Arthur has been allocated $4,142,753.39 for local Acquisitions/Buyouts projects; and, WHEREAS, Buyouts projects will reduce risk from future flooding or from the hazard that led to the property's Disaster Risk Reduction Area by converting the property to open space, recreational, or floodplain and wetland; and, P. R. No.20741 03/11/2019 ME-Grants Management Page 2 of 4 WHEREAS, Acquisitions projects may use the property for redevelopment activities while ensuring resiliency and mitigating the impact of future disasters; and, WHEREAS, the application, as delineated in Exhibit "A", will be submitted to the Texas General Land Office before March 31, 2019; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the City Manager is hereby authorized to file a grant application in an amount of $4,142,753.39 for the Hurricane Harvey Acquisitions/Buyouts Community Development Block Grant—Disaster Recovery (CDBG-DR) application with the Texas General Land Office (GLO). THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED AND APPROVED this day of March A. D., 2019 at a Regular meeting of the City Council of the City of Port Arthur Texas by the following vote: AYES: MAYOR COUNCILMEMBERS: NOES: DERRICK FREEMAN, MAYOR ATTEST: SHERRI BELLARD, TRMC, CITY SECRETARY P.R. No.20741 03/11/2019 ME-Grants Management Page 3 of 4 APPROVED AS TO FORM: J.4 7-0 VALECIA"VA�ZENO, CITY ATTORNEY APPROVED FOR ADMINISTRATION: HARVEY ROBINSON, INTERIM CITY MANAGER ROVED FOR AVAILABILITY OF FUNDS: REBECCA UNDERHILL ASSISTANT CITY MANAGER/ACTING FINANCE DIRECTOR S:\grants2\Hurricane Harvey\RESOLUTION\CAM for PR20741.docx P.R.No.20741 03/11/2019 ME-Grants Management Page 4 of 4 EXHIBIT "A" Client#: 11050 AMEQU ACORDr, CERTIFICATE OF LIABILITY INSURANCE DATE(MM(DD/YYYY)03/22/2019 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT:If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NAMEACT Carolyn Ruffeno x134 Insurepointe of Texas,Inc. PHONE 713 964-0022 FAX 713 964 0044 (A/c,No,Ext): (ac,No): 2909 Hillcroft Ste#600 ADDRESS: cruffeno@insurepointe.com Houston,TX 77057 INSURER(S)AFFORDING COVERAGE NAIC N 713 964-0022 INSURER A Admiral insurance Company 24856 INSURED INSURER B:Tana Mutual Insurance Company 22945 American Quality Fire&Safety, Inc. INSURER C Ohio Security u lnsuranGonpany 24082 P.O. Box 5054 INSURER D: Alvin,TX 77512-5054 _ INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: 19-20 All lines REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDLSUB POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) UNITS A GENERAL LIABILITY CA0000175380 03/25/2019 03/25/2020 EEACH OCCURRENCEEp $1,000,000 PRE X COMMERCIAL GENERAL LIABILITY MEa o rrrence) $100,000 CLAIMS-MADE X OCCUR MED EXP(Any one person) $5,000 PERSONAL 8 ADV INJURY I$1,000,000 GENERAL AGGREGATE I$2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $2,000,000 —1 POLICY n JEC7 LOC $ C AUTOMOBILE LIABILITY BAS2056572918 03/25/2019 03/25/2020(F°MBI.dgiSINGLE LIMIT $1,000,000 X ANY AUTO BODILY INJURY(Per person) $ ALL OWNED �SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE X HIRED AUTOS X AUTOS (Per accident) $ UMBRELLA UAB _ OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ _ $ B WORKERS COMPENSATION 0001235555 03/25/2019 03/25/2020 X WC STATU- OTH- ERAND EMPLOYERS'LIABILITY TORY LIMITS Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT �$1,000,000 OFFICER/MEMBER EXCLUDED? N N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $1,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(Attach ACORD 101,Additional Remarks Schedule,if more space is required) The General Liability and Automobile policies include a blanket automatic additional insured endorsement that provides additional insured status to the certificate holder only when there is a written contract between the named insured and the certificate holder that requires such status.The General Liability, Workers Compensation and Automobile policies include a blanket automatic waiver of subrogation endorsement that provides this feature only when there is a written contract between the named insured and the (See Attached Descriptions) CERTIFICATE HOLDER CANCELLATION Cityof Port Arthur SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Attn: Cheryl Salton ACCORDANCE WITH THE POLICY PROVISIONS. 444 4th St. Port Arthur,TX 77640 AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION.All rights reserved. ACORD 25(2010/05) 1 of 2 The ACORD name and logo are registered marks of ACORD #S438552/M438504 KGH DESCRIPTIONS (Continued from Page 1) certificate holder that requires it.The General Liability, Automobile&Workers Compensation policies include a specific notice of cancellation endorsement, providing for 30 days advance notice if the policy is cancelled by the company other than for nonpayment of premium, 10 days notice after the policy is cancelled for nonpayment of premium.The endorsement does not provide for notice of cancellation if the named insured requests cancellation.The General Liability policy includes an endorsement that contains primary and non-contributory wording. SAGITTA 25.3(2010/05) 2 of 2 #S438552/M438504 Le Pham From: certificates@insurepointe.com Sent: Friday, March 22, 2019 8:19 AM To: City Secretary; kharris@insurepointe.com Subject: Proof of Insurance Coverage from Insurepointe of Texas Attachments: 438552.pdf Please see the attached certificate of insurance and supporting documents (if any) for our mutual customer. NOTE - If there are any issues with the certificate or revisions needed, please include our CUSTOMER name in your reply subject line Thank you, Certificate Department Insurepointe of Texas, Inc. Phone: 713-964-0022 Fax: 713-964-0044 Email: certificates@insurepointe.com The information accompanying this email transmission contains information from Insurepointe of Texas, Inc. which is confidential and/or privileged. The information is intended to be for the use of the individual or entity named in this email. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this email information, is prohibited. If you have received this email in error, please immediately notify the sender by telephone or return email so that we can arrange for the retrieval of the original documents at no cost to you. 1 Hurricane Harvey: Local Buyout and Acquisition Program Texas General Land Office, P.D. Box 12873, Austin,Texas 78711-2873 Texas General Land Office 1-844-893-8937 or 512-475-5000, cdr@glo.texas.gov Commuoih Ih eIu,iu "I mid Kc italvunun This application is not to be filled out by individuals. City of Port Arthur APPLICANT NAME Jefferson SETRPC COUNTY COG/Regional Planning Commission DR-4332 - 2017 Disaster Declaration Number and Year City of Port Arthur Jefferson DR-4332-2017 Page 1 of 14 IaE owi1ON SICrNeo 1A2L1 APPLICATION FOR FEDERAL ASSISTANCE SF-424 Each applicant for Community Development Block Grant Disaster Recovery(CDBG-DR)funding must certify by signing Form SF-424 that local certifications included in the application guide governing this funding have been followed in the preparation of any CDBG-DR program application, and, if funded, will continue to be followed. (Note: False certification can result in legal action against the jurisdiction). Further, by signing the SF-424 and submitting with the application, the signee authorizes the state or any of its duly authorized representatives to verify the information contained therein. Title 18, Section 1001 of the U.S.code states that a person is guilty of a FELONY for knowingly and willingly making false statements to any department of the United States Government. All applications must be accompanied by a completed and signed Application for Federal Assistance SF-424,OMB Number: 4040-0004, Expiration Date: 10/31/2019, SF424_2_1-V2,1 This form is available on the GLO-CDR website with detailed instructions available in the CDR Application Guide. htt,://recovery.texasgov/files/resources/housing/s2-form424.Ddf or www.recovery.texas.gov INTRODUCTION AND INSTRUCTIONS INTRODUCTION:This application is for the residential Local Buyout and Acquisition Program for Hurricane Harvey CDBG-DR funding.It is created to be used for the buyout or acquisition of residential housing activities affected by Hurricane Harvey. CDBG-DR funds must be used for disaster-related expenses in the most impacted and distressed areas. An activity underway prior to a Presidential disaster declaration will not qualify unless the disaster impacted the project. Applicants are required to provide sufficient detail about the buyout or acquisition of residential property, the National Objective, the geographic/target area that will receive benefit, the estimated costs and materials needed, the projected schedule to completion, any potential environmental impact, and other details specific to the buyout or acquisition activity involved. Please be thorough in completing this application to ensure prompt review. Applicants are encouraged to develop these recovery activities in a manner that considers an integrated approach to housing, fair housing obligations, economic revitalization, and overall community recovery. The Applicant must document how the activity(s) will address long-term recovery and community resilience, INSTRUCTIONS: 1.Complete and sign the SF-424 as indicated above. 2.Complete this Local Buyout and Acquisition application. 3. AUDIT: If applicable, provide the most recent Single Audit in accordance with 2 CFR Part 200,Subchapter F. Texas General Land Office (GLO) - Community Development and Revitalization (CDR) Staff will review single audit requirements for applicable recipients, who have open contracts with GLO. 4. ANNUAL FINANCIAL STATEMENTS: Provide the most recent financial statement prepared in accordance with 2 CFR 200.510. Include a schedule of expenditures and schedule of findings and questioned costs. 5. KEY STAFF: Provide the names and contact information for staff that will provide local oversight of the application, the potential contract,and all applicable requirements. 6. Provide LOCAL PROCUREMENT POLICIES AND PROCEDURES along with other required documentation. For detailed application instructions, see the Community Development and Revitalization (CDR) Hurricane Harvey Buyout and Acquisition Application Guide. Select the Activity for this application: Buyout Program City of Port Arthur Jefferson DR-4332-2017 Page 2 of 14 CITIZEN PARTICIPATION DETERMINED THE NEEDS IN THIS PLAN BY: Did the applicant carry out citizen participation procedures in accordance with the Citizen Participation Plan as 0 Yes ❑No required by the governing documentation? Refer to your governing Federal Register and Action Plan for specific information regarding Citizen Participation Plans. NOTE: The Citizen Participation Plan must be posted for a 30-day local comment period. List all opportunities where citizens, especially low-to-moderate income citizens of the target area, were given to participate in the determination of these needs. Click the+to add events,X to remove events. Opportunity: Other Date: 3/26/2019 Date of resolution authorizing application submission: 3/26/2019 COMMUNITY NEEDS ASSESSMENT DESCRIPTION OF THE NEED(S)ADDRESSED IN THIS APPLICATION In this section, provide full and complete answers to each of the questions below. Descriptions should include the cause of the damage,current condition of the activity,and a detailed description of the project that coincides with the information contained in both Tables 1 and 2. The Buyout or Acquisition activities must demonstrate impact by Hurricane Harvey. CDBG-DR funds must be used for disaster-related expenses in the most impacted and distressed areas. The situation addressed in this application first occurred: Aug 24,2017 1. Describe the specific flood and storm-related condition that caused direct damage(include date and duration),the areas(example: subdivisions,cities,etc.)receiving.disaster-related damage,and the threat that was posed to public health and safety: As a result of Hurricane Harvey (TX-DR-4332),the City of Port Arthur received over 26 inches of rainfall on August 30, 2017, and total rainfall of 47.99 Inches during the period between August 24, 2017 and August 30, 2017. At times, rainfall averaged 3.87 inches per hour. Streets, homes and businesses throughout the City were inundated with water. Thousands of residents were trapped in their homes while thousands of others had to be rescued from rooftops, the tops of vehicles and even emergency shelters. During the disaster event, residents suffered an immediate threat to public health and safety. Emergency responders could not offer support, as roads were impassable. It Is estimated that 80% of the City's housing suffered at least minor damage as a result of the flooding. Today, a year and a half after Hurricane Harvey, residents are just now beginning what will likely be a decade long period of recovery from this historic storm. 2. Describe the impacts on the community that resulted from the disaster-related damage: Hurricane Harvey devastated the City of Port Arthur. The City estimates that public and private damages exceeded $1.3 billion. As a result of the massive, widespread flooding, the City suffered significant and catastrophic damages to public infrastructure, critical facilities and housing. The City's economy came to a grinding halt. Residents and businesses continue to face the challenges associated with post-disaster recovery after a storm of unprecedented magnitude. 3. List and attach materials submitted as documentation of the Hurricane Harvey-related condition. - Photos of flooded/damaged areas - Map indicating location of photos -Jefferson County Disaster Declaration issued August 24, 2017 - FEMA DR-4332 Initial Notice issued August 25, 2017 - FEMA DR-4332 Amendment 2 issued August 30, 2017 - NOAA rainfall data - News reports CityofPortArthur Jefferson DR-4332-2017 Page 3 of 14 4. Describe how the proposed activities will address damage affected by Hurricane Harvey. During Hurricane Harvey,the homes throughout the City of Port Arthur were partially or almost completely submerged during the extensive,widespread flooding. The buyout program will assist homeowners whose homes sustained substantial damage during Hurricane Harvey who could not otherwise afford to relocate outside of flood-prone areas or who might not qualify for other types of assistance. The buyout program will support hazard mitigation,floodplain management goals,and resiliency by removing homeowners from the floodplain and disaster risk reduction areas to minimize the possibility of future flooding to homes. After purchase,homes will be demolished or relocated. Buyouts will help prevent repetitive loss and extreme risk to human health and safety. 5. Describe the proposed project. The buyout program will remove homes and people from harm's way. The City will acquire thirty-one(31)properties damaged during Hurricane Harvey or located within disaster risk reduction areas and convert the properties to green space,retention ponds,or to other non-habitable use. The program will relocate homeowners and their families to low risk areas outside of the floodplain/floodway and assist in moving/relocation expenses. Housing incentives and down payment assistance may be utilized to encourage households to relocate to a suitable living environment. 6. Describe the impact of taking no action: A"no action"alternative would leave residents with a continued threat to public health and safety. HOUSING NEEDS ASSESSMENT QUESTIONNAIRE: 1. Describe the jurisdiction's current supply of housing units available at affordable rents (Public Housing, Section 8 assisted, RHS assisted, HOME program assisted,TDHCA assisted, Local Housing Development Corp.assisted,etc.). The Housing Authority of the City of Port Arthur manages 92 units of Public Housing and an additional 2,692 Units comprised of Section 8 Housing Choice Vouchers, Project Based Vouchers (PBV), Rental Assistance Demonstration (RAD) and Veterans Assistance Supportive Housing (VASH)Vouchers. There is a shortage of Public Housing and affordable housing within the City as the City's housing stock is seriously depleted as a result of Hurricane Harvey. 2. Describe past efforts to increase the supply of affordable housing. The City completed and Analysis of Impediments in 2011. As part of its Consolidated Plan and in accordance with the AI, the City has reviewed and revised ordinances, offered incentives to developers and adopted policies aimed at removing Impediments, affirmatively furthering fair housing and ultimately increasing the supply of affordable housing. The City currently offers homebuyer programs aimed at making homeownership an attainable option for all residents of the City. 3. Describe efforts planned that will increase the supply of affordable housing. The City will continue their proactive approach to increase the supply of affordable housing. The City will continue to apply for funding where available and create opportunities for elected officials, staff, developers, and residents to work together to meet the housing needs of the community. 4. Describe any instances, within the last 5 years, where the applicant has applied for affordable housing funds and did not receive the funding. None identified. 5. Describe any instances,within the past 5 years,where the applicant has not accepted funds for affordable housing. None identified. 6. Describe any current and/or future planned compliance codes to mitigate hazard risks. Following Hurricane Ike in 2008, the City made significant changes to codes and ordinances in an effort to reduce future loss and damages, as well as protect the health and safety of residents. The City will continue to evaluate existing codes City of Port Arthur Jefferson DR-4332-2017 Page 4 of 14 and implement new policies as recommended by qualified staff and consultants to reduce the risk of future damages and remove threats to public health and safety. 7.Are there any persons/entities with a reportable interest to disclose?If so,submit all appropriate Financial Interest Forms Yes No with this application. • AFFIRMATIVELY FURTHERING FAIR HOUSING • Any locality receiving CDBG-DR funds must certify that it will affirmatively further fair housing. Using the drop-down box below, identify the activities already achieved to affirmatively further fair housing, and those new activities to be undertaken if an award is made from CDBG-DR and when that activity will be complete. Localities should be aware that,in the event of funding,these fair housing efforts will be monitored.Other activities may be eligible,and the applicant should contact GLO-CDR to determine eligibility. What methods and criteria were used to prioritize the projects in the application, including affirmatively furthering fair housing? The City prioritized projects in accordance with the application guidelines. During the development of the housing guidelines,the City will continue to determine and prioritize eligibility criteria in accordance with program guidelines. The City has extensively reviewed all assistance offered through both public, private and non-profit agencies and determined that the remaining unmet needs are best addressed by the Buyout Program, as it can provide the greatest benefit and most opportunity for long-term recovery for low to moderate income households and other vulnerable populations. The City believes that removing homes from flood prone areas will reduce and eliminate threats to public health and safety, thereby increasing accessibility to suitable living environments in accordance with HUD-based national program objectives. Activity(ies) Designating a Fair Housing Month Date Achieved o Be Apr 30,2020 C Complete By p Publishing the contact information —at the local, state and federal levels—for reporting a Fair Housing complaint To Be Date Achieved Complete BY Apr 30,2020 x Date Achieved To Be Complete By LIST OF UNMET NEEDS Taking Into consideration the disaster-related damage described,citizen participation responses,and the assessment of housing and affirmatively furthering fair housing,provide a list(in priority order)of all the disaster-related needs still unmet from Hurricane Harvey. Use the+to add a line. Use X to delete a line as needed. The City of Port Arthur evaluated unmet needs as part of its Disaster Recovery and Resiliency Plan. Priority projects were determined to be most needed in areas containing the both the most significant reductions in housing stock and the highest numbers of vulnerable populations: Port Acres,Montrose,El Vista-Vista Village,Lakeview,Park Central and Downtown. Unmet needs identified in these target areas include: Single Family Housing-$40,000,000 Housing Buyouts-$29,250,000 Housing/Floodplain Elevations-TBD Multifamily Housing-$21,000,000 Economic Enterprise Infrastructure Repair City of Port Arthur Jefferson DR-4332-2017 Page 5 of 14 Infrastructure Mitigation-$26,000,000 Similar unmet needs outside of priority areas: Single Family Housing-$16,000,000 Housing Buyouts-$9,750,000 Housing/Floodplain Elevations-TBD Multifamily Housing-$13,000,000 Senior Housing-$9,000,000 Unmet Needs(Citywide): Emergency Operations Center Facilities-$5,000,000 to$20,000,000 Recovery Permitting Center Economic Recovery Assistance-Business Incubator/Business Economic Recovery Assistance Center-$5,000,000 to$7,000,000 Drainage-$597,237,000 Streets-$200,000,000 to$300,000,000 Building Facilities-$3,500,000 Water and Sewer Mains-$100,000,000 Main WWTF-$65,000,000 Large Lift Station-$75,000,000 Smaller Lift Station-$105,000,000 Lift Station Generator-$1,750,000 Water Trunk Main-$17,000,000 Regulatory Enforcement and City Services-$7,000,000 LONG-TERM PLANNING Applicants must develop their community recovery projects in a manner that considers an Integrated approach to housing, fair housing obligations, infrastructure, economic revitalization, and overall community recovery. Consideration of long-term planning processes is also highly encouraged. Disaster recovery presents communities with unique opportunities to examine a wide range of Issues including(1)housing quality and availability,(2)road and rail networks, (3)environmental issues, (4)the adequacy of existing Infrastructure, (5)opportunities for the modernization of public facilities and the built environment, (6)the development of regional and integrated systems,and(7)the stimulation of the local economy impacted by the disaster. Applicants must provide a brief description of how the project addressed in this application form part of an integrated approach to recovery. Describe the applicant's overall recovery plan and how the project addressed in this application further that plan. Include information about how the project will specifically address the long-term recovery and restoration of housing in the most impacted and distressed areas. Include how the community will be more resilient against future disasters as a result of these projects. The City's overall recovery plan consists of two phases: repair and mitigation. The City's first priority is to replace,repair,and reconstruct 'lousing and infrastructure damaged by disaster events. it is imperative to the long-term viability of a community to restore functionality of infrastructure in support of both commerce and housing in areas impacted by disasters. The City proposes to offer a Buyout Program to eligible residents. The Buyout Program will remove homes and residents from harm's way and convert the land to uninhabitable areas(such as green space or retention ponds)to reduce future risks. During the development of the 'mousing guidelines,the City will evaluate unmet needs and determine what assistance will be most advantageous to low to moderate income and otherwise vulnerable households to ensure a successful long-term recovery. During the development of the housing guidelines,the City will receive input from citizens to determine priority areas,priority subsets of the population(such as female head of households or elderly residents) and other criteria necessary for the successful implementation of the program. The buyout program will support hazard mitigation,floodplain management goals,and resiliency by removing homeowners from the floodplain and disaster risk reduction areas to minimize the possibility of future flooding to homes. After purchase,homes will be demolished or relocated. Buyouts will help prevent repetitive loss and extreme risk to human health and safety. PROCUREMENT INFORMATION City of Port Arthur Jefferson DR-4332-2017 Page 6 of 14 All applicants are required to follow the procurement process guidelines set forth in 2 CFR §200.318-§200.326 for grant administration,environmental,and engineering services if using CDBG-DR funds to pay third-party vendors for those services. Along with this application,applicants must provide a copy of local procurement policies and procedures. Yes No 1. Has the applicant chosen to use a third-party administrator to administer the proposed project? ❑ Yes No If Yes,will the vendor also provide environmental services? FT If Yes to either question,and the vendor has been procured,provide the vendor's name,phone,and email. I I If Yes, but the vendor has not been procured,adhere to 2 CFR§200.318-§200.326 regulations in the procurement process. Company Name Traylor&Associates,Inc. Contact Name Melinda Smith Phone (903)581-0500 Email melinda.smith@grtraylor.com Yes No 2. Has the applicant procured any other services? If Yes,and the vendor has been procured,provide the vendor's name,phone,and email. If Yes,but the vendor has not been procured,adhere to 2 CFR §200.318-§200.326 regulations in the procurement process. Type of Service N/A Company Name Contact Name Phone Email UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION ACT(URA) 1. Does the project require acquisition of property, purchase of easements, relocation or any other activity requiring Yes No N/A compliance with the URA? ® ❑ ❑ Yes No N/A 2. Will the assistance requested cause the displacement of families,individuals,farms, or businesses? El El ❑ If yes,explain The proposed Buyout Program will cause the displacement of thirty-one(31)families. Should any proposed projects cause the displacement of people,the GLO will work with the Subrecipient to follow the requirements set forth under the Uniform Relocation Assistance and Real Property Acquisition Policies Act,and applicable waivers... City of Port Arthur Jefferson DR-4332-2017 Page 7 of 14 PROJECT SUMMARY • The Project Summary consists of three parts for each target area, Disaster Risk Reduction Area designation, and/or activity: (1) Summarize Problem(s),(2)Location and Acquisition Description,and(3)Detailed Actions to Address Problems. 1.Summarize the problem(s)to be addressed within the application by target area. Homes throughout the City sustained substantial damages due to partial or complete submersion during flooding caused by Hurricane Harvey. Households located in floodplains/floodways and other high risk areas faced imminent threats to human health and safety. 2.Identify the Project Title and location of each activity and any acquisition. Provide a map identifying the project location. NOTE: For the title,the spelling and capitalization of the project titles/locations identified in this application must be consistently used throughout to ensure clear identification of each project. For example, a project title of 'Green Acres, Site 3" here should appear as "Green Acres, Site 3" at every other reference in this application. A reference to some other title such as"green acres subdivision" or "#3 Green Street"elsewhere in the application could cause delays in the eligibility review process. Project Title: City of Port Arthur Buyout Program Location: Various locations throughout the City Is this activity Buyout or Acquisition?(Choose one only) r Buyout ❑ Acquisition Is this activity Voluntary or Involuntary?(Choose one only) ® Voluntary ❑ Involuntary What is the end use Green Space,Retention Pond or other uninhabitable purpose of the property? Incentives or Relocation Assistance,Down Payment Assistance,Housing Incentives additional activities: 3. Identify the action(s)to resolve the problem(s)and their anticipated outcomes. Include specific materials and quantities. The buyout program will remove homes and people from harm's way. The City will acquire thirty-one(31)properties damaged during Hurricane Harvey and convert the properties to green space,retention ponds,or other non-habitable use. The program will relocate homeowners and their families to a low risk area outside of the floodplain/floodway and assist in moving/relocation expenses. Housing incentives and down payment assistance may be utilized to encourage households to relocate to a suitable living environment. 4. If you are leveraging funds,provide the source of the funds,the funding amount,and a description of it's use. N/A NATIONAL OBJECTIVES National Objective being met: 1. Activities benefiting low-and moderate-Income persons. ® LMHI Housing Incentive ® LMB Buyout ❑ LMH Housing Benefit ® LMH Down Payment Assistance ❑ 2. Prevention/Elimination of Slums or Blight. ❑ Area Basis n Spot Basis Yes No Has the proposed project area been officially designed as a slum or blighted area? IT El City of Port Arthur Jefferson DR-4332-2017 Page 8 of 14 If yes,what conditions are present in the area to designate and qualify the area as a slum or blighted area? Describe the boundaries of the slum or blighted area. (Do not use this field to document the Census Tract/Block Group data.) Enter the percentage of deteriorated buildings/properties in the area at the time it was designated a slum or blighted area(enter value as decimal). If the activity qualifies for CDBG-DR assistance on the basis that public improvements throughout the area are in a general state of deterioration, enter a description of each type of improvement in the area and its condition at the time the area was designated as slum/blight. Enter the year the area was designated as a slum/blighted area. If the period during which such designations are valid has lapsed,the applicant entity must re-evaluate and re-designate the area. ® 3. Urgent Need Yes No Do the existing conditions pose a serious and immediate threat to the health or welfare of the community? ❑ Yes No Is the applicant able to finance the project on their own?Or are other sources of funding available? 0 Provide justification of the beneficiary identification method used to meet the National Objective: Households whose income is less than 80% of the area median income will meet the requirement of the LMI national objective and households whose income Is no greater than 120% of the area median income will meet the urgent need national objective. City of Port Arthur Jefferson DR-4332-2017 Page 9 of 14 § CO 0 \ . 2 fa 7 \ = \ % { k� \ / vi � � f6.9 - G. - j / � 6 j 0 # co 00 _ a > e■ $■ 91 § 92 ] rn t-§ f E $ 0 $ a 8� § oo 0. 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CO 0 o $ $ « k 5 2 . cr 2 0 _ - co' 0 \ 7 \ * o - u $ § \ ƒ R } 4 - / 0 2 2 k , a # . • u E ¥ § $ E / f $ k 0 $ _ _ d / - . 0 0 / \ / / / 0 2 2 _ _ t 0 = : _ , : _ ± _ = Q < = 0 00 _ 00 = 00 00 0 City of Port Arthur Jefferson DR-4332-2017 Page 12 of 14 73 N _c111. a> 1501Ta. E o co cv ■ IIIo 42) .0 N d epi O N a . . U N N . a ■ ■ 0 a 0 m m I L ■U . r✓ e-I o > CD ro Eco ■ ■ a 0 I -.5 I ■ ■ ■ r-- C a) e-1 co 7 1 my � L Co IN 1111 � Q I ma) u' II MIN t ,i N no c-1 U NI 0 f I a E cr. ` i co ■co -1II o c ? ) c 0.) .0 E � .N-I o E o I a coU O . . co .Q J a C m y ar to L us W 0R U h — t � c_ > i • p (� N O Csi to _c d i O . . N F- O O 0 CI y w co co U E C7 ■ ■ — ON Z' 1 - Cl) O CC o u N- . . �' � co ti y co CO U . E C ._ O a c • to 11 II N c co I (a U C 'zt . . . L. 0 bft 0 LO 00 C N L M . •. . N '.% t F. N . . . U 10 N CD C LC vi ■ ■ ■ II " to O a) L L• o O . . 2 C0 a C lc L N (%j N C N CD E 3 a) c = 0) E a� 3 a o a a ci a' C- Z L, 'O O O 0 0@ "> N V U 0 d > V (X C - C N w co a.) a o .0 N U Q @ fS .@ 0. L .L- N m aci .J Y 3 O _ a C 0 @ E a7 .� -- a) O. Q 0) 0 (n a) C C E e .� C N a .0 E v 0 a� c� v .0 o c c 0 o C Q) 0 c 03 0 a 5 Iii :_° Qi E m o v 0 5 o v >. • . -0• o O 2 3 a ry a x o m m m 2 m c Z V U LOCAL CERTIFICATIONS Every Application must be signed by the authorized signatory.By signing this application,the signee authorizes the state or any of its duly authorized representatives to verify the information contained herein.It should be noted that 18 USC§1001 states that any person who(1)knowingly or willfully falsifies,conceals,or covers up by any trick,scheme,or device of material fact,(2)makes any materially false,fictitious,or fraudulent statement or representation;or(3)makes or uses any false writing or document knowing the same to contain any materially false fact,fictitious,or fraudulent statement or is a federal offense and punishable under the law.Title 18,Section 1001 of the U.S.code states that a person is guilty of a FELONY for knowingly and willingly makes false statements to any department of the United States Government. r ...' _ '.r • q; 1.' . r-r - . -► . i' u •o.-r•-• . .u. - -. , e i•n-. A..• •r • -r• : 7, ..r. . u • 4 £SF-424). Each applicant must comply with the provisions of the National Environmental Policy Act(NEPA),the Council on Environmental Quality(CEQ)regulations,the requirements set forth in title 24 of the Code of Federal Regulations (CFR) part 58, and applicable GLO-CDR policy directives. All applicable federal and state laws, including environmental,labor(Davis-Bacon),procurement procedures and contract requirements of 2 CFR 200.318-200.326,and civil rights requirements apply to the use of these funds.Each applicant certifies,in compliance with the requirements presented In Volume 81,Number 224 of the Federal Register effective November 28,2016, that a. It has In effect and is following a residential anti-displacement and relocation assistance plan in connection with any activity assisted with funding under the CDBG-DR program;, b. It is in compliance with restrictions on lobbying required by 24 CFR part 87,together with disclosure forms,if required by part 87;. c. It will comply with the acquisition and relocation requirements of the Uniform Act(URA),as amended,and implementing regulations at 49 CFR part 24,except where waivers or alternative requirements are provided for in the Federal Register notice. d. It will comply with section 3 of the Housing and Urban Development Act of 1968(12 U.S.C.1701u),and implementing regulations at 24 CFR part 135. e. It is following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105 Public Participation Plan as it pertains to local government administration of CDBG-DR funds.or 91.115 Public Participation Plan as it pertains to State administration of CDBG-DR funds.,as applicable(except as provided for in notices providing waivers and alternative requirements for this grant).Also,each Unit of General Local Government(UGLG)receiving assistance from a state grantee must follow a detailed citizen participation plan that satisfies the requirements of 24 CFR 570.486(except as provided for In notices providing waivers and alternative requirements for this grant). 1) Funds will be used solely for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization In the most impacted and distressed areas for which the President declared a major disaster in 2016 pursuant to the Robert T.Stafford Disaster Relief and Emergency Assistance Act of 1974(42 U.S.C.5121 et seq.)related to the consequences of the 2016 flood events. f. The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964(42 U.S.C.2000d)and the Fair Housing Act(42 U.S.C.3601 -3619) and implementing regulations,and that it will affirmatively further fair housing. g. It has adopted the following policies: 1) A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations;and 2) A policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location that is the subject of such nonviolent civil rights demonstrations within its iurisdiction. Date Mar 26,2019 Printed Name Harvey Robinson Title Interim City Manager Email harvey.robinson@portarthurtx.gov Phone Number +1 (409)983-8101 Authorized Signature City of Port Arthur Jefferson DR-4332-2017 Page 14 of 14 5 � /AM ; Il _ • - Chevron 1 • 7R+.Sr fir '. _2..`7.19 I. . ta(WIu .� t 1. Intersection of Hwy 73 at Twin City Hwy near Stonegate Golf Course—8/30/17 �' 1 .. h�K W t • .y . :. • r :Z 1 v 14. I •-� • ''"Illilim "". -2-* - ; •- - * .,...: ' '. T 1,iiiiity 4111H. f 2. Bowers Convention Center—8/30/17 t _ AP ` r =' i .....i.- 4.0 -x •yff i ik- — PORT ARTHUR TEXAS 3. Aerial View of Port Arthur—8/31/17 a ... ��- ,1"91P ••• r i 7:41e-,T t �� I ' , 4 lr _ ge a,es ' 4. Hwy 73 at 9th Ave. Underpass . .0; . r- ‘r ' ,A• , • ..' . _l • 4.. i r . I•;'' .! :' . •Pik. •1. , • . ... — 1, • . . ' '414stis.0*, • P ./CO3•St. I Or i i ----, goL.-.i.•• ,... • . r , Fr RI , •• 1 a ^ D **• -_ .. L._;,.._....,.....- •____ :--- •'.. -.3 - cr-0,4/7,2""'',1 -'1' — ' -, -.. . „ .. .... i . .4.*.• ....-1* • . 4 - . . • -— ,i 'qte!A.:•'''''. - -,•.4.' ' . , r1c. • : ,.r.- ••..f..- 4 - ...;,•...., , .--... •-. . . ,; ..,.. -, ria.(7Nrarliiik44 '' ''' . i. . 5. Flood Gates Closed at FM 365 (Port Acres Subdivision)—8/28/17 ...,..--'” - • - - . ..._ . _ .. 1 ird. 1 .....- ' ir 0.. I it - -- - 4-I- -, it , - .., .- ,•.., :: . , 1/4•T i 1,4-14---4-_:-..: ,,,„#.0" . 1 I ...... _ --... ' "' .-^,..5• r *-ji........_Airirlik:\4111 J' -,,..-- , .. • • .3,- Wan. .. _ e-'''2.... .....- 11 .- ' NO'", • * .4,4-A.. '.."..'"...;.-•••:-.Nli " t- . ...•L•A' ,, • , r t-,....z..... - ..- -, t 4 ,it . ,•,- .`,- . - —. '''' - •leY• 't . ,. , . •E.....„:„. - t '• :--'`.--- .:-.4111.4 „.• , . -4, 1,,..!:-_ .• • -- ... , •-'-..-1.46.0,3p,.. ,. , ,.._ 11111..., _„,• , ....._,__ ..:...."..!.. , ..i,404.". :1•:,-,,%.,;;. 1r i 4. „,,..,..• t•1•41:--,:, -.4,41,..3,::7 ,-..,114- 6. Home damaged by Hurricane Harvey in El Vista community Google Maps Page 1 of 1 Go g 1 e Hcip„, City of Port Arthur CDBG-DR Photo 1 Photo 4 . r, 'Photo 2 1—\1 'Photo 5 , , . i .- ' .• :~'-:.. • '-‘,.. .t.t;',,,r, , 1 ''. A . . ,....i. __,,,.......L ,,,,......N,,,.. ..%:. ,e IL - . •--,...,:•v,,w'r4:, r,,,ri A ii,,u, e 4t-t.--_,1,....• •',.L.!•:•:.-. •••••,,,,, ...i,'...i.- • -,.,,...4., <4^:f"c•,- : -4.....-'.0..' t 1.,.!" • Photo 6 • 'il'i it .,,,.::,` ',, • -,-- :-.r.r:. • i I mt.q 4,1,:it1!". •-• ,..o..K1t. ..'„:: '-'. •?id-%'.••if..' '.1•11.4., "''' 1:•4,.;ite..1:,- •,..-• , t hp hum*. •'. • s':, A.I -4 Mg.,f' I te. • 2:.' ..* tuft%saw. c,.i'44 -'t fit 'AP;- •- :',.-.4,. - ‘',.. 0.4.49.....• • '• --'''''':•It..CP1- ..,,Ae t•rj." • ';g1,-.-....,...;.-,:t.'s. , A/111 = ,x.,a ...:41,4,4.9 •, — ''''';'''711-1:tk .. -0.•"YASIXO .I 4...,,*‘.4'. ! .11:14: " '-'T'r •', .." .'3.s.11. '.1.-n' -tit...V .:.1..' I ..i'::4‘...t4,....y.1 ',..,,,, -, ;,',a:'1.`„-.,....,,,,,,,A. -,•;'. ,- '..' ..410k;....1 ....-n- • ;•':,,.,.--....•.", ..,-- -,7-.l•-• • - 4....27.,_ . i•', .v i- •••=•,-;!...p.A:•'•• .,- , . ' • . t..1.,,,eft,* ' . . adaos ogle ..... map data 02019 Google 1 mi • httnvilwww anot,ie corn/manc/r3T29 RR 1 7R,7 -9'1 9557947 117 1/15/2019 1 /I,_,S--SCC, I w;,,!' •. , ,�• , ,3 �,r 1, r , rG 1 hr,, J ., �.gc r, */ JEFF R. BRANICK County Judge Jeft'erson County Courthouse Beaumont(409)835-8466 P.O. Box 4025 Pt.Arthur(409)727-2191 Ext.8466 Beaumont,TX 77704 Facsimile(409)839-2311 JEFFERSON COUNTY, TEXAS DECLARATION OF DISASTER WHEREAS, the County of Jefferson on theday of , 2017, is facing the imminent threat of suffering widespre d or severe damage, injury, or loss of life or property resulting from Tropical Storm Harvey storm system; and WHEREAS, the Judge of the County of Jefferson has determined that extraordinary measures must be taken to alleviate the suffering of people and to protect or rehabilitate property, NOW, THEREFORE, BE IT PROCLAIMED BY THE COUNTY JUDGE OF JEFFERSON COUNTY, TEXAS 1. That a local state of disaster is hereby declared for the County of Jefferson pursuant to Section 418.108(a) of the Texas Government Code; 2. Pursuant to Section 418.108(b) of the Government Code,the state of disaster shall continue for a period of not more than seven days from the date of this declaration unless continued or renewed by the Commissioner's Court of Jefferson County; 3. Pursuant to Section 418.108(c) of the Government Code,this declaration of a local state of disaster shall be given prompt and general publicity and shall be filed promptly with the County Clerk; 4. Pursuant to Section 418.108(d) of the Government Code, this declaration of a local state of disaster activates the County Emergency Management Plan; 5. That this proclamation shall take effect immediately from and after its issuance. ORDERED this the L lig da of 2017 at f o'cloc !p.m. .Y � � � 1 2 JEFF.,s1 B' .. MICK, COUNTY JUDGE JEFFE' ON COUNTY, TEXAS Initial Public Notice for DR-4332-TX I FEMA.gov Page 1 of 4 FEMAE Initial Public Notice for DR-4332-TX Navigation Date of Notice: Wednesday,September 27, 2017 Search The Federal Emergency Management Agency(FEMA) hereby gives notice Languages to the public of its intent to reimburse eligible applicants for eligible costs to repair and/or replace facilities damaged by Hurricane Harvey News beginning August 23, 2017, and ending September 15, 2017.This notice (/disaster/notices/updates- applies to the Public Assistance(PA), Individual Assistance (IA), and blog and news) Hazard Mitigation Grant(HMGP)programs implemented under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121-5207, Under a major disaster declaration (FEMA 4332-DR-TX)signed by the President on August 25, 2017, and amended on August 27, 2017,August 30, 2017, September 1, 2017, September 2, 2017, September 4, 2017, September 12, 2017, September 15, 2017, September 18, 2017, and September 19, 2017 the following counties have been designated adversely affected by the disaster and eligible for PA:Aransas, Austin, Bastrop, Bee, Bexar, Brazoria, Burleson,Calhoun, Chambers, Colorado, Dallas, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Hardin,Harris,Jackson,Jasper,Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Madison, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio,Tarrant,Travis, Tyler, Victoria,Walker,Waller,Washington, and Wharton. The following counties have been designated eligible for IA.Aransas,Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris,Jackson,Jasper,Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto,San Patricio,Tyler, Victoria, Walker, Waller, and Wharton.Additional counties may be designated at a later date. All counties in the State of Texas are eligible for HMGP. https://www.fema.gov%disaster/notices/initial-public-notice-dr-4332-tx 3/15/2019 Initial Public Notice for DR-4332-TX I FEMA.gov Page 2 of 4 This notice concerns activities that may affect historic properties, activities that are located in or affect wetland areas or the 100-year floodplain, and critical actions within the 500-year floodplain. Such activities may adversely affect the historic property,floodplain or wetland, or may result in continuing vulnerability to flood damage. Presidential Executive Orders 11988 and 11990 require that all federal actions in or affecting the floodplain or wetlands be reviewed for opportunities to relocate, and evaluated for social, economic, historical, environmental, legal and safety considerations. Where there is no opportunity to relocate, FEMA is required to undertake a detailed review to determine what measures can be taken to minimize future damages. The public is invited to participate in the process of identifying alternatives and analyzing their impacts through this notification. FEMA has determined that for certain types of facilities there are normally no alternatives to restoration in the floodplain/wetland.These are facilities that meet all of the following criteria: 1) FEMA's estimate of the cost of repairs is less than 50 percent of the cost to replace the entire facility,and is less than $100,000; 2)the facility is not located in a floodway; 3)the facility has not sustained major structural damage in a previous presidentially declared flooding disaster or emergency; and 4)the facility is not critical(e.g., the facility is not a hospital,generating plant, emergency operations center, or a facility that contains dangerous materials). FEMA intends to provide assistance for the restoration of these facilities to their pre-disaster condition, except that certain measures to mitigate the effects of future flooding or other hazards may be included in the work. For example, a bridge or culvert restoration may include a larger waterway opening to decrease the risk of future washouts. For routine activities, this will be the only notice provided. Other activities and those involving facilities that do not meet the four criteria are required to undergo a more detailed review, including the study of alternate locations. Subsequent public notices regarding such projects will be published if necessary, as more specific information becomes available. https://www.fema.gov/disaster/notices/initial-public-notice-dr-4332-tx 3/15/2019 Initial Public Notice for DR-4332-TX I FEMA.gov • Page 3 of 4 ti In many cases, an applicant may have started facility restoration before federal involvement. Even if the facility must undergo detailed review and analysis of alternate locations, FEMA will fund eligible restoration at the original location if the facility is functionally dependent on its floodplain location (e.g., bridges and piers), or the project facilitates an open-space use, or the facility is an integral part of a larger network that is impractical or uneconomical to relocate,such as a road, In such cases, FEMA must also examine the possible effects of not restoring the facility, minimize floodplain/wetland impacts, and determine both that an overriding public need for the facility clearly outweighs the Executive Order requirements to avoid the floodplain/wetland,and that the site is the only practicable alternative.The State of Texas and local officials will confirm to FEMA that proposed actions comply with all applicable state and local floodplain management and wetland protection requirements. FEMA intends to provide IA program funding for disaster-related emergency housing.These actions may adversely affect a floodplain or wetland, or may result in continuing vulnerability to floods.These actions may include repair, restoration, or construction of housing or private bridges, purchase and placement of travel trailers or manufactured housing units, or repair of structures as minimum protective measures. This will be the only public notice concerning these actions. FEMA also intends to provide HMGP funding to the State of Texas to mitigate future disaster damages. These projects may include construction of new facilities, modification of existing, undamaged facilities, relocation of facilities out of floodplains, demolition of structures, or other types of projects to mitigate future disaster damages. In the course of developing project proposals, subsequent public notices will be published if necessary, as more specific information becomes available. The National Historic Preservation Act requires federal agencies to take into account the effects of their undertakings on historic properties. Those actions or activities affecting buildings, structures, districts or objects 50 years or older or that affect archeological sites or undisturbed ground will require further review to determine if the property is eligible for listing in the National Register of Historic Places(Register). https://www.fema.gov/disaster/notices/initial-public-notice-dr-4332-tx 3/15/2019 Initial Public Notice for DR-4332-TX I FEMA.gov Page 4 of 4 If the property is determined to be eligible for the Register, and FEMA's undertaking will adversely affect it, FEMA will provide additional notices. For historic properties not adversely affected by FEMA's undertaking,this will be the only notice. As noted,this may be the only notice regarding the above-described actions under the PA, IA, and HMGP programs. Interested persons may obtain information about these actions or a specific project by writing to Kevin Jaynes, Regional Environmental Officer, Federal Emergency Management Agency, Region 6, 800 North Loop 288, Denton,TX 76209 or by emailing FEMA-R6-EHP@fema.dhs,gov(mailto:FEMA-R6- EHP@fema.dhs.gov). Comments should be sent in writing within 15 days of the date of this notice. Last Updated: 09/26/2017 - 19:06 If Share This Page. 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You are here:United States>Texas>Port Arthur 2017 Past weather Port Arthur-august 2017 August Average high temperature: 88.1°F(normal:92°F) Weather history Port Arthur august 2017 Average low temperature: 74.5°F(normal:74°F) Day High Low Predp. Snow Snow Average temperature: 81.3°F(normal:83°F) depth Total Precipitation: 54.74 inch(format 5.39 inch) (°F) 1°F) (loth) (Inch) (inch) Total snowfall; 0 inch 1 aug 2017 88.0 77.0 0.07 0.00 0.00 2 aug 2017 86.0 73.9 0,29 0.00 0.00 Highest max temperature: 97.0°F 3 aug 2037 91.0 73.9 0.02 0.00 0.00 Lowest max temperature: 73.9°F 4 aug 2017 90.0 75.0 0.26 0.00 0.00 5 aug 2017 87.1 73.9 0.34 0.00 0.00 Highest min temperature: 78.1°F 6 aug 2017 91.9 75.0 0.34 0.00 0.00 Lowest min temperature: 68.0°F 7 aug 2017 84.0 73.9 0.73 0.00 0.00 8 aug 2017 87.1 73.9 2.42 0.00 0.00 r°n+''r+cyr cc r 1 vyr aura (D x 9 aug 2017 84.9 73.9 0.38 0.00 0.00 10 aug 2017 91.9 75.0 0.00 0.00 0.00 Earn your degree one 4-week classal a tore at 11 aug 2017 91.0 77.0 0.01 0.00 0.00 12 aug 2017 91.9 73.9 0.00 0.00 0.00 13 aug 2017 91.9 73.9 0.00 0.00 0.00 14 aug 2017 93.0 75.9 0.00 0.00 0.00 15 aug 2017 89.1 77.0 1.23 0.00 0.00 16 aug 2017 91.0 78.1 0.02 0.00 0.0D 17 aug 2017 93.9 75.9 T 0.00 0.00 18 aug 2017 95.0 75.9 0.00 0.00 0.00 19 aug 2017 97.0 75.0 0.00 0.00 0.00 20 aug 2017 91.9 78.1 0.85 - 0.00 21 aug 2017 91.9 77.0 0.01 0.00 0.00 22 aug 2017 91.0 75.0 0.23 0.00 0.00 23 aug 2017 89.1 75.9 0.02 0.00 0.00 24 aug 2017 91.9 73.9 0.04 D.00 0.00 25 aug 2017 80.1 73.0 1.23 0.00 0.00 26 aug 2017 81.0 73.9 2.74 0.00 0.00 27 aug 2017 78.1 73.0 8.98 0.00 0.00 28 aug 2017 82.0 72.0 5.52 0.00 0.00 29 aug 2017 73.9 69.1 26.03 0.00 0.00 30 aug 2017 73.9 68.0 2.97 0.00 0.00 31 aug 2017 89.1 72.0 0.01 0.00 0.00 T.Trace ©2019 US Climate Data I version 2.3 I Programming&Design by Ygyr Weather Service I World Climate I Weemetwerk About u4 I Disclaimer I Lg98 httns://www.usc]imatedata.com/climate/nort-arthiir/texa�h)nit.e(1-states/))stx 1 O71/2O17/R 1/15/2019 Harvey becoming a problem for SETX - Port Arthur News I Port Arthur News Page 1 of 5 -4...P _ 4. • .. f aC • -• ''''Vli '.44,-" , :,C 7, �� fit"�-c :r`�� 1.'. } � � S,a?�r 1„- V.s c .3,c < 11.* yh cer .v - ei r }Wi �,,•,.. ::6,-A;'4•__a ;? '.-":&,..7:90'._--,:kc,. ,:t-,___ The floodgates at FM 365 and Rodair Gully were closed on Monday due to flooding in the gully.Rich Macke/The News Harveybecoming a problem for SETX -. (https://www.Danews.com/author/mary.meauxA By Mary Meaux(https://www.panews.com/author/mary.meaux/1 Email the author(mai lto:marv.meauxCapanews.com) I twitter (https://twitter.com/MaryMeauxPANews) Published 4:46 pm Monday,August 28,2017 Port Arthur and surrounding areas are coping with the problems left by Tropical Storm Harvey. Sunday's widespread, heavy rainfall led to officials closing the floodgates at FM 365 and Rodair Gully Monday afternoon. "Floodwaters were coming in from the gully and back towards the Port Acres area,"Jefferson County Sheriff Deputy Marcus McLellan said of the reason for shutting the floodgates."Nothing is coming over the levee but water started coming in from the gully.The gates are closed to prevent flooding." ADVERTISING https://www.panews.com/2017/08/28/harvey-becoming-a-problem-for-setx/ 3/15/2019 Harvey becoming a problem for SETX-Port Arthur News I Port Arthur News Page 2 of 5 inRead invented by Teads The floodgates will remains closed until the water goes down. First responders with the sheriffs department and Texas Task Force 1—an urban search and rescue group— made 10 flood rescues in a nine-hour span from 4 a.m.to 1 p.m.,mostly in the west area of the county,he said. In addition,a mandatory evacuation was called for Bevil Oaks and Northwest Forest subdivisions in Jefferson County. Acadian Ambulance experienced some minor delays due to high water with moderate street flooding and are working with their partners at the Port Arthur Fire Department to get patients the medical care they need,according to an official with Acadian. "To respond to the challenges caused by Tropical Storm Harvey,we have added an extra crew, converted our schedules to allow us to quickly increase staffing and have a number of employees on standby and ready to respond,"Denise Richter,Texas marketing and PR manager for Acadian, said. ADVERTISING inRead invented by Teads • https://www.panews.corn/2017/08/28/harvey-becoming-a-problem-for-seta/ 3/15/2019 Harvey becoming a problem for SETX - Port Arthur News Port Arthur News Page 3 of 5 Risa Carpenter,public information officer for the city of Port Arthur,said all public safety personnel were out diligently doing their jobs and asked for citizens to stay off the roads as more rain is in the forecast. "Be aware of your surroundings,"Carpenter said."Driving through flooded areas will cause a wake that will push water into people's homes so it's best not to get out and drive." Due to sporadic rain and flooding,the city is urging citizens to turn around,don't drown.They can also check drivetexas.org for current road conditions. The area has seen about 18 inches of rain since the outer rain bands hit on Saturday. But there is rain to come. "We're looking at the potential for a whole lot more rain, 10 to another 20 inches in the worse case scenario,"Donald Jones, meteorologist with the National Weather Service-Lake Charles,said. The county is under a tropical storm warning as Harvey is predicted to gradually drift off to the Gulf of Mexico then make another landfall west of Jefferson County before working its way north on Wednesday and Thursday. The storm will likely strengthen very slightly bringing tropical force winds. "We want to emphasize the winds are not the big issue. Heavy rain falling is the problem,"he said. "We are not expecting any major damage from the winds." There will be minor storm surge along the coast of one-to-three feet and timed with the high tide Tuesday morning. (link) (link) https://www.panews.com/2017/08/28/harvey-becoming-a-problem-for-setx/ 3/15/2019 2/1/2019 Port Arthur Faces Harvey Flooding Disaster:'Our Whole City Is Underwater-The New York Times Ire New Mork Einto Port Arthur Faces Harvey Flooding Disaster: 'Our Whole City Is Underwater' By Jonah Engel.Bromwich Aug.30,2017 Even as the sun began to show in Houston on Wednesday, signaling a small measure of hope after days of devastating rainfall from Tropical Storm Harvey, a region east of the city faced disaster anew after it was pummeled by rain overnight. Residents of cities in Jefferson County, Tex., about 100 miles east of Houston,were desperate for help Wednesday morning after rain there caused floodwaters to rise precipitously and lightning made things particularly difficult for those responding to the storm. Many, finding emergency services unresponsive, sought assistance on social media,where their calls were amplified by digital onlookers seeking to help from afar. Port Arthur's mayor, Derrick Freeman, said on Facebook early Wednesday morning that rescue teams were contending with fires while trying to get residents to safety. "Our whole city is underwater right now," he wrote,in a message of encouragement that nonetheless communicated the distress the city was facing. The mayor of Beaumont, Becky Ames,told NBC that the flooding was like nothing she had ever seen before. "Every single body of water around us is at capacity and overflowing and the rain is still coming down," she said. About 254,000 people live in Jefferson County, which Brock Long, the head of the Federal Emergency Management Agency, said Wednesday had been "slammed with 20 inches of rainfall" overnight. As news reports teemed with images from Port Arthur showing flooded homes and shelters,the city's name began to trend on Twitter early Wednesday morning as dozens of residents posted their addresses and conditions, saying that they were trapped in their houses with children and older people in dire need of assistance. Even the city itself used Twitter to call for help. A judge in Jefferson County, Jeff Branick, told a local news reporter that hundreds if not thousands of people were stranded on their roofs, on top of cars and in attics. https://www.nytimes.com/2017/08/30/us/port-arthur-flooding.htmI 1/3 2/1/2019 Port Arthur Faces Harvey Flooding Disaster:'Our Whole City Is Underwater-The New York Times Sites that may have been able to withstand less forceful weather gave way to the pouring rain. The Robert A. Bowers Civic Center, where at least 100 people had taken shelter,was flooded overnight, according to a county sheriff's deputy, and reports said that people were being removed. The Port Arthur-based Motiva oil refinery,the nation's largest such facility, confirmed reports that it had started a controlled shutdown in response to the flooding. In a video broadcast from his own flooded home, where the water was about knee high on Wednesday, Mayor Freeman said that the military and Coast Guard were helping with rescue efforts. He said that 911 lines were flooded, but that the city was continuing its rescue attempts. "Harvey was not playing," he said, as he sloshed through water that had invaded rooms, closets and his backyard, his optimism mingling with shock at the state of his house. "I know one thing though, it's not going to defeat us." Tevin Baker, 18, who was trapped in his Port Arthur home with his mother, Kathy Baker, 56, tweeted for help throughout the night.The two were rescued shortly after 7:30 local time. "My house just started to flood," he said in a phone interview. "We weren't ready at all. It was very horrific for me and my mom." He said that the water had come in at a rate of about five or six inches an hour throughout the night, and he took videos of the flooding. "At 1 it was in the garage, but by 4 it was at our ankles in the house," he said. "By 7 we were just begging for help. We stood outside,we finally found someone who helped us." Speaking from a shelter in the city, he said that he and his mother had been rescued by men in boats, and that he did not know where they would stay in the immediate future. "Seeing that coming through the door and the back door and the garage door like that,you're helpless, you feel helpless," he added. "It was the worst feeling I've had in a long time." Amber Robinson, 27, whose friend Keith Pinault tweeted on her behalf, was rescued with her parents, ages 67 and 61, after water flooded their home on Memorial Boulevard in Port Arthur. Mr. Pinault deleted the call for help once the family was rescued. Ms. Robinson said Wednesday that they had known that the storm was coming but did not expect the rain to be as fierce or unforgiving as it was. Her family had expected water to flood in from the garage, but instead it started coming up through the floor and was soon waist deep. The family put a flatbed truck in the garage and opened the garage door so that they could be seen by rescue workers. They were on the truck from 3 a.m. until around 10 a.m., when they were taken to a temporary shelter in a bowling alley. https://www.nytimes.com/2017/08/30/us/port-arthur-flooding.html 2/3 I 2/1/2019 Port Arthur Faces Harvey Flooding Disaster:'Our Whole City Is Underwater-The New York Times "We don't know where we're going to go for sure," she said. "But we are definitely better now." Michelle Preble,45, in Oregon City, Ore., was one of many people on Twitter trying to compile a list of the addresses being tweeted into something that could be useful to emergency medical workers and others responding to victims. In a phone interview Wednesday, Ms. Preble, who grew up in Houston and has many friends and family there, said that she had taken a list of names, addresses and conditions and passed them along to the Cajun Navy volunteer force. She was able to contact the Navy's dispatcher through the walkie-talkie style communication app Zello. She said that while it initially had been difficult to track whether individual requests for help were being answered by the group, she began to get confirmations Wednesday afternoon that the people whose addresses she had sent had been picked up by the Navy,including a 99-year-old man whose granddaughter had tweeted on his behalf. Eric Vargas, 19,had been waiting for help on a balcony in Port Arthur since early Wednesday morning, after the water inside his home rose to his stomach. He was initially with nine other adults and 10 children,including two as young as 2 years old, he said. He said he had reached the Coast Guard, and the person he spoke to had told him to make sure that there was a white blanket in plain sight. But Mr. Vargas said that he had not been given any update as to when,or whether, the much-needed help would arrive. "I'm just trying to be patient, but I guess I'm going to have to call again," he said. Reached again nearly four hours later, Mr. Vargas,who had decided to leave the balcony along with some relatives, still had not been rescued. https://www.nytimes.com/2017108/30/us/port-arthur-ttooding.html 3/3 2/1/2019 Without State Aid,Advocates Worry Port Arthur Will Bleed Residents Long After Harvey Ali OBSERVER (https://www.texasobserver.ore) Without State Aid, Advocates Worry Port Arthur Will Bleed Residents Long After Harvey Flooding was so widespread in Port Arthur during Harvey that even shelters had to be evacuated. by Michael Barajas (https://www.texasobserver.org/author/rnichael-barajas/) Wed,Mar 28,2018 at 6:09 am CST • ..il 10 / r • lrr / : , Rf1 , ,144;4. . I • 4• r"� P. I • .' '�� / 11.t.... S . . xmax...,.,_ .. - ... M': '^r .... -..r_ -•-'-* - ....ems'.*: • --.� - S i • _ •,e.. i- _ -c.t, -. ';� - . ~� :.air ,./'r•..N.. ."�•' ' ,Mins♦ - The Rainbow Bridge in Port Arthur.COURTESY/FLICKR https:!/www.texasobserver.org/port-of-no-return/ 1.9 $ 2/1/2019 Without State Aid,Advocates Worry Port Arthur Will Bleed Residents Long After Harvey Hurrican; ree acts. The first occurred on August 25, whenAp OBSERVER al ,(dtyYff•lffiil7. ph winds. Fo - . , . • - • - ed over the Texas coast for days, rliC'rcr�rrrinr4 nn iin.prenorlenter1 ain—nt -.f ruin tl-�nt tii nerl I.Trai1stnn into ua.JJabaaab ..aa �. ra vvv�avaa�....0 uaaay...SA. v. aaa v •....� ., aavu sav►avfrv.a into before drifting out into the Gulf. Janice Rogers faced Harvey's third and final act when the storm swung back for a second landfall near the Texas-Louisiana border on August 30. Rogers, 57, waded through waist-deep water outside her west Port Arthur apartment to reach a helicopter that flew her to safety. After she slept in a shelter for two days, someone convinced her to board a military plane sending evacuees to Dallas. Rogers,born and raised in Port Arthur, hasn't returned. She probably never will. Her story worries housing advocates and community leaders in the city of 55,000,which battled high poverty and double-digit unemployment well before Harvey hit. They fear that without more government assistance to help the already struggling region recover, Port Arthur will continue to bleed residents. "Port Arthur always gets ignored; ignored during Rita, during Ike and now during Harvey." "People already lived hand-to-mouth here," said John Beard, a former Port Arthur City Council member and community activist. Most homeowners, including the city's mayor, didn't have flood insurance when Harvey hit. Few could afford to fix much on their own; some still lived with damage from hurricanes Rita in 2005 and Ike in 2008. Flooding was so widespread in Port Arthur during Harvey that even shelters had to be evacuated. "A lot of people were forced to leave because there was simply no place to go," Beard said. "I still see what look like abandoned homes. I'm waiting to see if anyone ever comes back for them." https:/hvww.texasobserver.org/port-of-no-return/ 2/9 2/1/2019 Without State Aid,Advocates Worry Port Arthur Wit Bleed Residents Long After Harvey � • -s Shreveport (https://www.te°xasobserver.org/)Jacoson Mt. AP OBSERVEROdessa TEXAS Austin LOUISIANA 0 Beaumont New Orleans Houston ° o I " - San AntonioGalwastoi p • ti ti C 0 A H U I L A \ Corpus Christi 'Laredo 0 0 NUEVOIEON MrAlie, .,�p•B�O'vnSYI'iE Monterrey o saitli!o 0 All counties impacted by Hurricane Harvey, according to the Texas General Land Office. Jefferson County is in blue. Port Arthur isn't yet a priority for state officials. The Texas General Land Office recently sent three-quarters of the state's first $58 million chunk of federal housing aid to Harris County, almost entirely for property buyouts. The office allocated the remaining$11 million to build affordable multifamily housing in the tourism-dependent coastal counties ravaged by Harvey's first landfall. Port Arthur's Jefferson County, second only to Harris in the number of damaged housing units, didn't get a cent. The GLO told the Observer that some of the $38.6 million Texas allocated for critical housing assistance early this year will eventually benefit Port Arthur, but didn't say how much, or when the projects would even be identified. https://www.texasobserver.org/port-of-no-return/ 3/9 2/1/2019 Without State Ald,Advocates Worry Port Arthur Wil Bleed Residents Long After Harvey Port AOBSERVER (https://www.texasobserver.org/) 36% 33/0 22% 7%t 2%t 0%t 0%t 0%t White Black Native Asian Islander Other Two+ Hispanic *Hispanic includes respondents of any race.Other categories are non-Hispanic. Atli Census Reporter About this chart Rogers sees little reason to go back, even as she struggles to settle in Dallas. Nearly a week after evacuating, she moved into a church, where she has slept on an air mattress ever since. A school cafeteria worker in Port Arthur, Rogers eventually found work in Dallas,but she's only now on the verge of moving into an apartment. Rogers knows some people back home are disappointed by her decision. "I'm not coming back," she said. "Port Arthur always gets ignored; ignored during Rita, during Ike and now during Harvey." Rogers says perhaps it's time she ignores Port Arthur, too. Correction: This story has been updated to reflect an initial mischaracterization of the state's $61 billion recovery plan submitted to the feds. That recovery plan was meant for infrastructure, not housing projects. The story has also been updated to include a second stream offunding from the General Land Office for housing assistance that was initially omitted. The Observer regrets the error. Michael Barajas is a staff writer covering civil rights for the Observer.You can reach him on Twitter (https://twitter.com/michaelsbarajas) or at barajas@texasobserver.org (mailto:barajas@texasobserver.org). (https://www.texasobserver.org/newsletter-signup/ https://www.texasobserver.org/port-of-no-return/ 4/9 1 P. G 2/1/2019 Without State Aid,Advocates Worry Port Arthur VAII Bleed Residents Long After Harvey Get the lates - -• a-•- • • • - - • • - - - - - • vestigations via Facebook (https:// OBSERVER AP :ttps://www.texasobserve' :.1 OBSERVER (https://twit kiy news setter IP (https://www, exaso•server.org news e er-si: up/ . • Enter your email 11(1111W I Submit I Read More:Greg Abbott(https://www.texasobserver.org/tag/greg-abbott/),Houston(https://www.texasobserver,org/tag/houston/), Hurricane Harvey(https:l/www,texasobserver.org/tag/hurricane-harvey/),port arthur(https://www.texasobserver.org/taglport-arthur/) You May Also Like: i (https://www.texasobserver.org/indigenous- activists-set-up-protest-camp-at- south-texas-cemetery-to-stop- trumps-wall/ Indigenous Activists Set Up Protest Camp at South Texas Cemetery to Stop Trump's Wall (https://www.texasobserver.org/indigenous-activists-set-up- protest-camp-at-south-texas-cemetery-to-stop-trumps-wall/) Environmentalists, veterans of the Standing Rock protests and Carrizo/Comecrudo tribal members are vowing to stare down the president's bulldozers. by Gus Bova(https://www.texasobserver.org/author/gus-bova/) https://www.texasobserver.org/port-of-no-return/ 5/9 2/1/2019 Without State Aid,Advocates Worry Port Arthur Will Bleed Residents Long After Harvey `. 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CLICK HERE https://www.texasobserver.org/port-of-no-retum/ 8/9 1 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN JUNE 13-16,2019 MANCHESTER, TN rRI SAT SUN & 100* MODE! ....E2sitte ti, i, V r Weather Live TV Harvey aftermath: Death toll rises; so do the floodwaters By Holly Yan, Nicole Chavez and Ray Sanchez,CNN Updated 2:48 PM ET,Thu August 31,2017 Storyhighlights (CNN)—With countless Houstonians still awaiting rescue,Tropical Depression Harvey devoured another Texas city. Harvey is now a tropical depression,with The unrelenting storm unleashed its wrath on a wide swath east of Houston,leaving thousands winds of 35 mph stranded in flooded homes and forcing the evacuation of a nursing facility and even an emergency shelter where residents had sought refuge. At least 37 people have been confirmed dead "Our whole city is underwater right now but we are coming!"Port Arthur Mayor Derrick Freeman in Hurricane Harvey's aftermath posted Wednesday on Facebook.if you called,we are coming.Please get to higher ground if you can,but please try(to)stay out of attics." By using this site,you agree to our updated Privacy Policy and our Terms of Use. https://www.cnn.com/2017/08/30/us/harvey-texas-louisiana/index.htmr 1/7 2/112019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN 10 • • • . :1,• • A z • w .• • of i • Emily Procella r@EmilyProcella My uncles have been rescuing people in Port Arthur for 24hrs!So blessed to have such a helpful family who help others in times like this! 261 2:11 PM-Aug 30,2017 130 people are talking about this At least 37 deaths related to Hurricane Harvey and its aftermath have been reported in Texas.One of them.Houston police Sgt.Steve Perez,drowned while trying to get to work. "To those Americans who nave lost loved ones,all of America is grieving with you and our hearts are joined with yours forever,"President Donald Trump said In Springfield,Missouri. The storm left record-setting rain in Harris County--which saw 19 deaths--before unleashing 15 inches in the Beaumont area,Texas Gov.Greg Abbott said. "While there may still be flooding,the good news is there shouldn't be any rain in the region for the next several days,"said CNN Meteorologist Taylor Ward. By using this site,you agree to our updated Privacy Policy and our Terms of Use. https://www.cnn.com12017/08/30/us/harvey-texas-louisiana/index.html 2/7 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN tizh :. N ,.., s .MItIt 10110-plu . ., ti ..,, I.14,,,.4,.a,,.. .. ,, r lir s», • f-" Aro . .0•..— _..•~ r A • Evacuees at the Bob Bowers civic Center In Port Arthur face flooding again as waters rise at the shelter. Misery in Houston While heavy rains have ended in the Houston area,more danger looms. Keep track DI H;!:Jev _ Emergency workers and throngs of volunteers went door to door for a fifth day Wednesday,trying • :a". .': —f : to rescue victims of the flood.Houston Police Chief Art Acevedo said authorities have received - • 60,000 to 70,000 calls for help. . , ........„,„ ic. t. ,-._ 0 it,! -•,-` -. . - , "We just pray that the body count...won't rise significantly."Acevedo said. • The US Coast Guard is searchingfor two civilian rescuers who were swept away after their boat L ��I l;tl` " A. rr , capsized Tuesday night,the Harris County Sheriff's Office tweeted Wednesday. •• �` d.;.ci.� -, �.. • Three volunteers were trying to cross Cypress Creek when their boat crashed and capsized, 11; \1 N.:. .. sending all three under a bridge.One of the volunteers was found clinging to a tree. About one-third of the Houston area is covered In water.And it's unclear exactly how many people Related Article: Harvey evacuees face still need to be rescued,Texas Military Department spokesman Lt.Col.Travis Walters said. relief,worry at Houston convention center Harvey's devastating impact by the numbers For the first time since the weekend,authorities said,the flooding in Houston is slowly receding in ? some areas. The Houston Astros announced they will play a doubleheader at home on Saturday against the 1 New York Mets.The team played the Texas Rangers in St.Petersburg,Florida,earlier this week "' because of the hurricane. ♦$ ,'' Houston Mayor Sylvester Turner said the home game will provide"a much needed boost for our city"and offer residents"some aspect of normal life." r. r": " - But dangerous flooding will continue from Houston all the way into southwestern Louisiana for the rest of the week,the National Weather Service said. C,....l.:.,•Y...41.....17 LJ.....'.....4...Y♦..N.•. R-. : Privacy Policy and our Terms of Use. https://w w.cnn,com/2017/08130/us/harvey-texas-louisiana/index.html 3!7 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN Houses built 'inside a lake' could degrade Controversy has surrounded the placement of houses near Houston's Barker and Addicks reservoirs,especially since floodwater overflowed the latter. . P. • t.4, ,F � q3 f0s 'S illi:;.;:''. ti2., ' Sy y 4 ' , ± i 4i � .._', • ,A'.. r t '. t - •r 7 ' r it �, .--„,?4,,,s.,-, '.., .- .. - • .iK r ' -',4!1'. ` t • v� .xs q / t. -aF r Id p 5^ .o- * • - ; a Residents evacuate their homes Tuesday near the Addicks Reservoir in Houston. "They allowed them to build homes inside the reservoir.And these homes are flooded--2,500 homes are flooded,some of them up to 5 feet deep," CNN meteorologist Chad Myers said Wednesday."They built homes inside a lake." And those homes"will be inundated for several weeks,"said Jeff Lindner with Harris County Flood Control. "The closest comparison that I can draw to those homes...is Hurricane Katrina,"Lindner said. "When water sits in a house for several weeks,the house begins to degrade." Lindner said those residents will be able to return after several weeks,but"we are not sure what the condition of those homes are going to be." He also said it's unclear whether rebuilding homes in the same area will be allowed. Louisiana weathers Harvey, Texas 'taking it on the chin' Louisiana was largely spared from Harvey's wrath on Wednesday. "While things are Still serious and there is a long way to go,we...have fared much better than we'd feared might be the case,but our neighbors are still taking it on the chin,"Gov.John Bel Edwards said."In Texas,we're going to do everything we can do to be good neighbors to them." � , �� Edwards requested a federal disaster declaration be extended to seven additional Louisiana ,_ T 7i ,,''� parishes. ,enc. ' Harvey is still threatening tot dump an additional 3 to 6 inches of rain from northern Louisiana into �„ th — , western Kentucky,forecasters said.It weakened over land and fizzled to a tropical depression r.f Wednesday night,with winds of 35 mph. New Orleans Mayor Mitch Landrieu said volunteers helped New Orleans recover after Katrina and •- •i-- - ' they will do the same for Texas residents affected by Harvey .. .W:J . s.1 New Orleans officials announced a fundraiser to help the residents of Houston and other flooded By using this site.you agree to our updated Privacy Policy and our Terms of Use. https://www.cnn.com/2017/08/30/uslharvey-texas-Iouisianalindex.html 4/7 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN Related Article:Louisiana braces for "No city was more welcoming for the citizens of New Orleans than the people of Houston," Harvey's torrent Landrieu said."And our heart breaks for them as they go through their trying to times." New Orleans draws on lessons of Katrina to help Houston More rescues, mother dies In Beaumont,rescuers Tuesday afternoon came upon a toddler in a pink backpack clinging to her mother's body in floodwaters about a half mile from their car.The mother was getting out of her car when she stepped into a canal,Mayor Becky Ames said. The girl was in stable condition with hypothermia. "Had we been a few moments later,they would have been swept underneath(a trestle)and our boats wouldn't have been able to get them,"Haley Morrow,spokeswoman for the Beaumont Emergency Management Office,told CNN on Wednesday. "A true testament of a mother who put her own life at risk and sacrificed her life to save her child.That was devastating." In Port Arthur,about 90 miles east of the devastated Houston area,the deluge was so severe that floodwaters overwhelmed the Bob Bowers Civic Center,which was serving as a shelter.It was evacuated Wednesday after taking on water overnight,according to volunteer Ana Platen). Cots where people slept the night before floated on 2 feet of water on Wednesday as people waited on tables or sat on elevated bleachers to be evacuated to a nearby middle school. At Lake Arthur Place,a nursing home in Port Arthur,rescue workers evacuated up to 74 bedridden patients after an altercation involving relatives who tried to take out loved ones on their own,CNN affiliate KTRK reported. All residents were taken to local hospitals in Beaumont,the nursing home operator said. Some Port Arthur residents sought shelter in a bowling alley. Cynthia Harmon told CNN by phone that she was trapped with her two sons and two grandsons in the attic of her Port Arthur home.They began waiting for rescuers at midnight Tuesday and had run out of food and water by Wednesday afternoon. "I didn't think the water was going to rise like that,'she said."I've never been in anything like this." The family was rescued later on Wednesday. Police made an appeal for volunteers to bring boats and help. "Rescue boats welcome in Port Arthur to assist emergency personnel,"the police department posted on Facebook,The city asked anyone trapped to hang a white towel,sheet or shirt outside to alert rescuers. By using this site,you agree to our updated Privacy Policy and our Terms of Use. https://wwwcnn.com/2017/08/30/us/harvey-texas-louisiana/index.html 5/7 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN WIZ • -�� - > 4 r • • V t . •1+4 • Photos:Hurricane Harvey slams Texas Downtown Houston is reflected in the flooded Buffalo Bayou on Wednesday,August 30,five days after Hurricane Harvey made landfall in Texas.The Category 4 storm came ashore late Friday,August 25,just north of Port Aransas,and has caused historic flooding.Correction:Previous versions of this gallery incorrectly reported that Hurricane Harvey is the strongest storm to make landfall in the United States since Wilma in 2005.Harvey is actually the strongest storm to make landfall in the United States since Charley in 2004. 1 of 74 Hide Caption /\ Nation's largest oil refinery forced to shut down as Harvey floods Port Arthur The disaster in Port Arthur is part of Tropical Storm Harvey's devastating encore.Harvey made landfall once again Wednesday morning,slamming into the.Louisiana coast near the Texas border. 26 inches in 24 hours Harvey has broken the US record for rainfall from a single storm,CNN senior meteorologist Dave Hennen said.It has dumped almost 52 inches of rain in parts of Texas. - t�q The coastal cities of Beaumont and Port Arthur got pummeled with 26 inches of rain in 24 hours. .] "Life-threatening flash flooding continues in far east Texas around Beaumont and Port Arthur," `� `' `' Hennen said, ' • Port Arthur,a city of about 55,000,is in exceptional danger because water from Beaumont is expected to flow toward it. • In Beaumont,a man who accidentally drove a truck into a flooded ravine that looked like a street was rescued by CNN correspondent Drew Griffin,producer Brian Rokus and photographer Scott Related Article: Here's how you can help Pisczek on Wednesday."I want to thank these guys for saving my life."said the driver,Jerry the victims of Hurricane Harvey Sumrall. In Woodville.a town north of Beaumont,US Rep.Brian Babin was trapped for part of Wednesday at home with members of his family after a creek overflowed. "I'm in my home in Tyler County,and we could not get out unless a helicopter plucks me out or I get my boat and launch it,"the Texas Republican told CNN by phone early in the day."We're fine.These waters are going to recede hopefully sometime this evening." On Wednesday afternoon,a US Navy helicopter plucked seven people from floodwaters. By using this site,you agree to our updated Privacy Policy and our Terms of Use. https:l/www.cnn.com12017/08/30/us/harvey-texas-louisianalindex.html 6/7 • 2/1/2019 Port Arthur underwater after Tropical Storm Harvey landfall-CNN Strangers from across the country descended on Texas and braved treacherous floodwater to evacuate victims. Tom Dickers is among those who came hauling boats from Dallas and San Antonio. "This is what Texans would do.We help each other out,"Dickers said. Hollywood rallies for Harvey relief support At least 9,000 to 10,000 people have been rescued in the.Houston region by first responders. Volunteers said they have helped as many as 400 in one day. Some would just"come crying,just wanting help,"volunteer Bobba Bedri said."I just felt like I had to get more people out,keep going and keep going." CLARIFICATION:Harvey made its first landfall at 10 p.m.local time Friday,initially striking a barrier island near Port Aransas, Texas,before moving onto the US mainland two hours later near Copano Related Video:CNN crew helps rescue Bay, Texas.After re-emerging into the Gulf of Mexico on Monday,it made another landfall man from truck 02:05 Wednesday in Louisiana. CNN's Donle O'Sullivan, Tina Burnside,Amanda Watts,AnneC/sire Stapleton,Paul Vercammen, Samfra Said,Cheri Mossburg and Darran Simon contributed to this report. • By using this site,you agree to our updated Privacy Policy and our Terms of Use. https://www.cnn.com/2017/08/30/us/harvey-texas-louisiana/index.html 7/7 I r 2/1/2019 As Texas Recovers From Harvey,Port Arthur Struggles-WSJ THE WALL STREET JOURNAL. This copy is for your personal,non-commercial use only.To order presentation-ready copies for distribution to your colleagues,clients or customers visit https:/hwvw.djreprints.com. https://www.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 ' U.S. As Texas Recovers From Harvey, Port Arthur Struggles Blue-collar Gulf Coast city still digging out from hurricane _ 7.:i Ir. . ' it1/1 • . • i - F, 4 r rstr --"2"14-7-.r— . �k; U_.. 14 -..\ sgt r Rev.Kevin Badeaux walks through repairs in the St.Joseph Catholic Church in Port Arthur. LOREN ELLIOTT FOR THE WALL STREET JOURNAL 1 of 11 By Jim Carlton I Photographs by Loren Elliott for The Wall Street Journal Aug.13,2018 5:30 a.m. ET PORT ARTHUR, Texas—A year after Hurricane Harvey upended the lives of most people here, the concrete floors on Laura Welch's home remain uncovered,her kitchen is only partially https://w wv.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 1/5 2/1/2019 As Texas Recovers From Harvey,Port Arthur Struggles-WSJ usable and she has to wash dishes in a bathtub. Ever since the storm flooded the three-bedroom home she shares with her 20-year-old daughter and 15-year-old special-needs son, Ms.Welch has received$12,000 from the Federal Emergency Management Agency out of the approximate$40,000 she said she needs to fully restore it.There are piles of carpet,tile and other materials that have been purchased,but they sit near her front doorway until she can afford to have them installed. "All we want is to have our house back,but I just can't do it on my own,"the 52-year-old social worker said as her son, Kobe King,who suffers from muscular dystrophy,played on a tablet computer in his wheelchair. With a poverty rate of 29%,Port Arthur was among the poorest communities along the Texas Gulf Coast before Hurricane Harvey—and in the year since, it has struggled to recover from flooding that left almost the entire city of 55,000 underwater. The 60.5 inches of rainfall recorded just north of Port Arthur over four days broke a new U.S.record for a storm total, and covered many homes up to their rooftops. Home to one of the nation's largest concentrations of oil refineries,Port Arthur was still recovering from direct hits from two other hurricanes, Rita in 2005 and Ike in 2008,when it was inundated by Harvey in late August last year. The storm caused as much as $1.3 billion in damage in Port Arthur,according to a city recovery plan.Despite 80%of the housing being damaged,the city trails many others along the Gulf Coast in rebuilding.That's in part because,so far, roughly$10 billion in approved disaster aid for the Harvey region has been slower to reach it, according to housing advocates. For example,the Texas General Land Office in June allocated 80%of the state's first$58 million in federal Harvey housing aid to Harris County,where Houston is located,with the rest dispersed for rental housing in three tourism-dependent counties. Coastal tourist towns like Rockport and Port Aransas have reopened many of their closed hotels and shops,but Port Arthur's Jefferson County didn't get any of that initial funding. Port Arthur recently was allocated $15.7 million out of$156.7 million in federal money slated for communities in southeast Texas for home buyouts,infrastructure repairs and other housing needs.But,critics say,per home,the city came out far below most other cities. Port Arthur received$71 per home, compared to as high as$151,495 in one upscale community, according to an analysis of the grant money by Texas Housers, a housing advocacy group in Austin. The group suggested race might have been a factor: Port Arthur has a relatively high percentage of African-American and Latino residents, at 38%and 32%,respectively. https://wv w.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 2/5 2/1/2019 As Texas Recovers From Harvey,Port Arthur Struggles-WSJ I hardly ever smile,because it's not a happy story. —Beatrice Sanders,71 Others say Port Arthur is more likely a victim of its geography, sitting 90 miles east of the giant Houston metro area. "If you are a big city like Houston,you get attention," said Rosa Rios Valdez,president and chief executive officer of Business and Community Lenders of Texas, a nonprofit that has brought in donated supplies and other relief to Port Arthur and other flood- damaged cities. Brittany Eck,spokeswoman for the General Land Office, dismissed race as a motive, noting the official who heads the agency's disbursement program is African-American.She said her agency doled the money out in accordance with guidelines from the U.S.Department of Housing and Urban Development,which specifies where it should go.A HUD spokesman deferred comment to the state. https://www.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 3/5 2/1/2019 As Texas Recovers From Harvey,Port Arthur Struggles-WSJ Ms.Eck also said the land office this month awarded$13.3 million to a project for low-income housing in Port Arthur, subject to a final review. Officials of the Southeast Texas Regional Planning Commission,which is disbursing the$156.7 million,said Port Arthur received the largest amount of any local city in its three-county region,which doesn't include Houston's Harris County. Federal aid was so slow in coming to Port Arthur after Hurricane Rita in 2005 and Hurricane Ike in 2008 that the city just received a check for about another$2 million in Ike relief money last month,Mayor Derrick Ford Freeman said. • dill -- 1 • .A41., i�r • %\ki Beatrice Sanders is living in a FEMA trailer parked next to her home,which Harvey left uninhabitable with rot and mold. PHOTO:LOREN ELLIOTT FOR THE WALL STREET JOURNAL Beatrice Sanders said she also was still awaiting government help in rebuilding from Hurricane Ike when Harvey hit and flooding rains submerged her house. Now, a year later,the 71-year-old great-grandmother is still living in a FEMA trailer parked next to her home,which Harvey left uninhabitable with rot and mold. Ms. Sanders said the$17,000 she has received from FEMA isn't nearly enough for the $80,000 she estimates it will cost to rebuild. "I hardly ever smile,because it's not a happy story,"Ms. Sanders said as she sat in a rocking chair outside her home,with her Chihuahua,Jake. Meanwhile,Mr.Freeman himself remains shut out of his three-bedroom home,pending the arrival of federal aid to repair extensive damage.He,his wife and their five children are sharing a relative's two-bedroom home. "Would you say I'm frustrated across the board?," asked the 42-year-old mayor. "Yes, sir." Write to Jim Carlton at Jim.Carlton@wsj.com https://www.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 4/5 2/1/2019 As Texas Recovers From Harvey,Port Arthur Struggles-WSJ Appeared in the August 14, 2018,print edition as 'Harvey's Toll Weighs on Texas City.' Copyright©2019 Dow Jones&Company,Inc.All Rights Reserved This copy is for your personal,non-commercial use only.To order presentation-ready copies for distribution to your colleagues,clients or customers visit https://wvwN.djreprints.corn, https://wvw.wsj.com/articles/as-texas-recovers-from-harvey-port-arthur-struggles-1534152600 5/5 EVIDENCE OF FAIR HOUSING ACTIVITY WILL BE PROVIDED UPON COMPLETION S ) 6Nio P`{,(.JVIIEYIJ, U.S.Department of Housing and Urban . IIILIU I`!VI Development e` IIIII';s 451 Seventh Street,SW Washington,DC 20410 •,oevc� www.hud.gov espanol,hud.gov Environmental Review for Activity/Project that is Exempt or Categorically Excluded Not Subject to Section 58.5 Pursuant to 24 CFR Part 58.34(a) and 58.35(b) Project Information Project Name: City of Port Arthur CDBG-DR Responsible Entity: City of Port Arthur Grant Recipient (if different than Responsible Entity): State/Local Identifier: TBD Preparer: Melinda Smith, Project Manager Certifying Officer Name and Title: Harvey Robinson, Interim City Manager Consultant (if applicable): Traylor&Associates, Inc. Project Location: City-wide Description of the Proposed Project [24 CFR 58.32; 40 CFR 1508.25]: Administration and environmental services to be performed related to the proposed project: City of Port Arthur Buyout Program Level of Environmental Review Determination: X❑ Activity/Project is Exempt per 24 CFR 58.34(a): 3 ❑ Activity/Project is Categorically Excluded Not Subject To §58.5 per 24 CFR 58.35(b): 1 g Project Name Project Locality and State HEROS Number Funding Information Grant Number HUD Program Funding Amount TBD CDBG-DR $4,142,753 Estimated Total HUD Funded Amount: $4,142,753 This project anticipates the use of funds or assistance from another Federal agency in addition to HUD in the form of(if applicable): Estimated Total Project Cost(HUD and non-HUD funds) [24 CFR 58.32(d)]: $4,142,753 Compliance with 24 CFR §50.4 and §58.6 Laws and Authorities Record below the compliance or conformance determinations for each statute, executive order, or regulation. Provide credible, traceable, and supportive source documentation for each authority. Where applicable, complete the necessary reviews or consultations and obtain or note applicable permits of approvals. Clearly note citations, dates/names/titles of contacts, and page references. Attach additional documentation as appropriate. Compliance Factors: Statutes, Are formal Compliance determinations J Executive Orders, and compliance Regulations listed at 24 CFR 50.4 steps or and 58.6 mitigation required? STATUTES,EXECUTIVE ORDERS,AND REGULATIONS LISTED AT 24 CFR§58.6 Airport Runway Clear Zones Yes No and Accident Potential Zones ❑ 24 CFR Part 51 Subpart D Coastal Barrier Resources Yes No Coastal Barrier Resources Act,as ❑ amended by the Coastal Barrier Improvement Act of 1990[16 USC 3501] Flood Insurance Yes No 1 Flood Disaster Protection Act of ❑ Project Name Project Locality and State HEROS Number 1973 and National Flood Insurance Reform Act of 1994 [42 USC 4001-4128 and 42 USC 5154a] Mitigation Measures and Conditions (40 CFR 1505.2(c)] Summarize below all mitigation measures adopted by the Responsible Entity to reduce, avoid, or eliminate adverse environmental impacts and to avoid non-compliance or non-conformance with the above-listed authorities and factors. These measures/conditions must be incorporated into project contracts,development agreements,and other relevant documents. The staff responsible for implementing and monitoring mitigation measures should be clearly identified in the mitigation plan. Law,Authority,or Factor Mitigation Measure Preparer Signature: ' ylpisA '""'jkyrt Date: 3/14/19 Name/Title/Organization: Melinda Smith, Project Manager, Traylor&Associates, Inc. Responsible Entity Agency Official Signature: Date: 3/26/19 Name/Title: Harvey Robinson, Interim City Manager This original, signed document and related supporting material must be retained on file by the Responsible Entity in an Environmental Review Record (ERR) for the activity/project(ref: 24 CFR Part 58.38)and in accordance with recordkeeping requirements for the HUD program(s). 1 Q s a`R"L. Texas General Land Office W I. : Community Development & Revitalization Program ti/ FINANCIAL INTEREST REPORT - Form A503 Grant Recipient Name: City of Port Arthur Contract Number: TBD -'`Y: '-.• • ,.---3. ,: T' • I� .f• t V tc '({ X j. 5,1,-%77, -..a•:_ , 7 , -..a• ---47-.73",-r - --- aS--�'• --r ^r te _s. y. cy! �J S 4,,C m'{`�'CV k' A f -.-.,- S. .. -2--,; ----.-.-�- .v'��� `.tSy.'� �J .-S�:.t- K��n �:�v.'�' •� ��+�Y :1,4-, n.@e?ke a'- � � r5�4�'s #'+ ���.-.�3��e-.J., _ ._:....5�•''f'+�.J Name of Company Gary R.Traylor&Associates,Inc. CDBG-DR Funds Other Funds Total Dollars Name of Owner Gary R.Traylor $497,130.00 $0.00 $497,130.00 Point of Contact Melinda Smith ® Prime Contractor ❑ Subcontractor Phone Number +1(903)581-0500 Fax Number If a sub-contractor,list Prime Email melinda.smith@grtraylor.com r--si ys, 1 3 ,2 -r - r Mailing P.0.Box 7035,Tyler,TX 75711 - `1 "�.� •1r Address 0 The company reported qualifies as a Section 3 Business Type of Procurement Competitive Proposals Concern. Trade 2 Professional Services ® The contract reported is for$100,000 or more.(Company is sub'ect to Section 3 re•ortin• re•uirements if checked). Service Provided 5 Management/Administration '2.i: . !LriAtii- .4 i ' it * r 'r -*-„ - 1 '3,, ''-$',--, 130- 4i*. M.410p ._=r- `- -k.-z xa�` r The company reported is a business with a contract for at Environmental Clearance Date(for activity) Mar 26,2019 ® least$10,000.(Report MBE info below if checked.) Excluded Party List System Clearance Date Race of Owner 1 White (Contractor Verification/Clearance) Dec 12,2018 Ethnicity of Owner Non Hispanic Contract Executed Date Mar 5,2019 Gender of Owner Male Describe the work to be completed: (if more than one business will be procured for similar work,indicate the specific work included in this contract) Project Delivery,Administration and Environmental Service Provider This form must be submitted to GLO-CDR for all contracts of$2,000 or more. For Prime Contractors,form is due within 30 days of executing the construction contract. For Subcontractors,this Financial Interest Report(FIR)is due before the final draw. Revised form effective July 13,2017. A complete copy of the City' s 2017 CAFR may be found at : https ://cityhall . porta rth u rtx . go v :444/WebLink/0/edoc/ 158398 /ComprehensiveAnnualFinancia IREportFYE2017 . pdf 1 CITY OF PORT ARTHUR,TEXAS FEDERAL SINGLE AUDIT REPORT For the Year Ended September 30,2017 CITY OF PORT ARTHUR,TEXAS TABLE OF CONTENTS Pale Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Report on Compliance for each Major Program;Report on Internal Control over Compliance;and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance. 3 Schedule of Findings and Questioned Costs 6 Schedule of Expenditures of Federal Awards 10 Notes to Schedule of Expenditures of Federal Awards 11 Summary Schedule of Prior Audit Findings 12 Corrective Action Plan 13 • Is Houston Office 3737 Buffalo Speodwoy Vhi{ fieypenn Suite 1600 Houston.Toxas 77096 713.62_1.1515 Alain ereuoypenn.Cor REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council City of Port Arthur, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities,the business-type activities,the aggregate discretely presented component units,each major fund, and the aggregate remaining fund information of City of Port Arthur,Texas(the"City"), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated June 28,2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.Accordingly,we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent,or detect and correct misstatements on a timely basis. A material weakness is a deficiency,or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies,and therefore,material weaknesses or significant deficiencies may exit that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items#12017-001 through 2017- 007 that we consider to be significant deficiencies. 1,-::....�....: 1\12Xia Austin I oa:,as Fort Worth Housto:f To the Honorable Mayor and Members of City Council City of Port Arthur,Texas Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City's Response to Findings The City's response to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs.The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and,accordingly,we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. r7 ¢MPJ L LP Houston,Texas June 28,2018 • 2 Houston Otho h } p p ■R 3737 Buffalo Speedway t�/ VYhi leypenn Sulle1600 Houston.Texas 77038 713.a21,1515M n whdtoypenn corn REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of City Council City of Port Arthur, Texas Report on Compliance for Each Major Federal Program We have audited City of Port Arthur, Texas' (the "City") compliance with the types of compliance requirements described in OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended September 30,2017.The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes,regulations,and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Those standards, and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining,on a test basis,evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However,our audit does not provide a legal determination of the City's compliance. 3 Nexla. san uo'las For,wb.; Houston ;err To the Honorable Mayor and Members of City Council City of Port Arthur, Texas Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30,2017. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item #2017-008. Our opinion on each major federal program is not modified with respect to this matter. The City's response to the noncompliance findings identified in our audit is described in the accompanying Corrective Action Plan. The City's response was not subjected to the auditing procedures applied in the audit of compliance and,accordingly,we express no opinion on the response. Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented,or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency,or a combination of deficiencies,in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance,yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as Finding #2017-008, that we consider to be a significant deficiency. 4 To the Honorable Mayor and Members of City Council City of Port Arthur,Texas The City's response to the internal control over compliance findings identified in our audit are described in the accompanying Corrective Action Plan.The City's response was not subjected to the auditing procedures applied in the audit of compliance and,accordingly,we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.Accordingly,this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended September 30, 2017, and the related notes to the financial statements,which collectively comprise the City's basic financial statements. We have issued our report thereon dated June 28, 2018, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion,the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects in relation to the basic financial statements taken as a whole. LLP Houston,Texas June 28,2018 5 CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30,2017 I. Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? None reported Significant deficiency(ies) identified that are not Yes; #2017-001,2017 002,2017-003, considered to be material weaknesses? 2017-004,2017-005,2017-006,2017- 007 Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weakness(es)identified? None reported Significant deficiency(ies) identified that are not Yes;#2017-008 considered to be material weaknesses? Type of auditors' report issued on compliance with major Unmodified programs: Any audit findings disclosed that are required to be No reported in accordance with section 2 CFR 200.516(a)? Identification of major programs Name of Federal Program or Cluster CFDA Numbers U.S. Department of Housing and Urban Development Community Development Block Grant—Disaster Recovery 14.228 U.S. Department of Transportation Federal Transit Formula Grants 20.507 1. Dollar Threshold Considered Between Type A and $750,000 Type B Federal Programs 2. Auditee qualified as low-risk auditee? No 6 CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 II. Financial Statement Findings Finding#2017-001 —Anti-Fraud Policy Criteria: Organizations should have a fraud risk management program identifying fraud risks specific to their entity,and take appropriate action to mitigate the risks. Condition: Although the City implemented a fraud hotline and performed an initial risk assessment of its operations and activities, City personnel have not instituted a formal process for reporting suspected fraud or fraudulent behavior. Effect: Without a formal anti-fraud policy, City personnel are unable to identify or report potential fraudulent activities within the course of performing their assigned duties. Cause: Lack of established procedures and internal controls over risk assessment and fraud prevention and detection. Recommendation: The City should move forward with the refinement and adoption of a working draft of an anti-fraud policy that was begun but not completed in the past two years.The final policy would address the City's commitment to ethical behavior and provide formal channels for reporting suspected activities through the City organization structure by enhancing the visibility of the City's fraud hotline and giving city personnel direction on these matters. Finding#2017-002—Written Financial Closing Policies and Procedures Criteria:Organizations should have internal controls in place to should ensure the production of both timely and accurate financial statements on a monthly and annual basis. Condition: City financial staff have been unable to produce annual financial statements within six months of year end for the last four fiscal years. Effect: Without timely and accurate financial statements to review, management and council are not provided with sufficient information to make informed financial decisions. Cause: For the past five fiscal years,City management and the finance staff have undergone a great deal of turnover. Since 2013, the City has had three different city managers and is on its fourth finance director. The City's finance department has, in the past six months, filled most of the open positions allotted for in the City's budget that are crucial for completing timely and accurate financial statements. Recommendation: Financial management and staff should begin immediately to produce a policy and procedures manual addressing monthly and annual closing procedures to include detailed tasks and functions of each position along with standards for timing of each function. 7 CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 II. Financial Statement Findings (continued) Finding#2017-003—Purchase Orders Criteria: The purchase order is a tool that assist management with the budget process. Approvals are necessary to ensure the planned purchases are proper and funding exists. Condition: Based on our testing of 40 sample items,9 purchase orders were created after the invoice dates and approval signatures were not present on 3 purchase orders. Effect: Unauthorized purchases could be made and purchasing in compliance with the state and local policies could be circumvented and budgets are exceeded. Cause: The City has accepted the practice of creating purchase orders after goods or services have been procured. The financial software allows payments to process without approvals being entered into the purchasing system. Recommendation: The City should review their purchasing policy and revise as necessary. Management should require periodic training for employees that are responsible for procuring goods and services. Employees should complete the purchase order process prior to any goods or services being received.Check requests should be completed for any purchase in which the purchase order process is not feasible or necessary under policy. The approval of purchase orders should be required electronically in the financial software system prior to the procurement of the goods or services. 8 CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 II. Financial Statement Findings (continued) Finding#2017-004—Personnel File Maintenance Criteria: Documentation in personnel files should be adequate to provide support for compensation adjustments for those processing payroll as well as well as support adequate for Human Resource personnel to review the payroll process for differences whether due to errors or fraud. Condition: Based on our testing of 40 sample items,we noted the following: • detail account distribution for 20 employees was not available in the personnel file, • a personnel file was not provided for 1 employee, • the FY 2017 pay rate was not available for 20 employees, • the position was not available on an approved wage rate schedule for 4 employees, • a timesheet was not provided for I employee,and • Support for salary adjustments were not provided for 2 employees. Effect: Payments to employees are a risk of being incorrect. Cause:The pay rates for prior periods is not available in employee's personnel files. Support is not readily available to verify that employees are paid the correct amount for their base salary, supplemental pay,and any salary adjustments. Recommendation: The City should maintain enough information in employee's personnel files and timekeeping records to verify the following: • an employee was paid the correct amount according to their approved salary, • the employee was paid from the correct funding source, • the employee is paid according to the wage rate schedules, • proper support for salary adjustments and any supplemental pay is available,and • The employee's pay is supported by approved time records. 9 is CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 II. Financial Statement Findings (continued) Finding#2017-005—Purchasing(P-cards) Criteria: Policies, procedures, and controls should be in place to prevent or detect improper purchasing with City p-cards. Condition: Based on our testing of 10 transactions, we noted • department heads approved their own purchases for 2 transactions, • department head approval was not present for 1 transaction,and • p-card user agreements were not provided for any of the 10 users tested. Effect: Improper purchases could be made with the City's p-cards and not be detected in a timely manner by employees in the normal course of their assigned duties. Cause:The department heads of the City are not required to gain additional approval when purchasing with their p-card. The p-card approval process is manual and can therefore be processed without approvals present.The p-card user agreement forms were not readily available. Recommendation: The department heads' p-card transactions should to be reviewed and approved by an employee in the Finance Department. All p-card transactions should be reviewed and approved. P-card transactions without any approver signature should be investigated. All employees using the City's p- cards should be required to sign a p-card user agreement form agreeing to comply with the City's p-card policy and these forms should be readily available. Finding 142017-006 —Utility Billing Adjustments Criteria: Policies, procedures, and controls should be in place to ensure all utility billing adjustments are appropriate. Condition: Based on our testing of 5 manual adjustments,there was no evidence of approval provided for any of the adjustments. Effect: Improper adjustments could be made and water billing representatives can make adjustments to their own accounts. Cause:Evidence of approval is not required for all types of manual adjustments.There is no periodic review of user access controls to ensure water billing representatives do not have access to make adjustments to their own accounts. Monthly reviews of all adjustments are not performed to review for any inappropriate adjustments.Procedures are not in place to reconcile payments received to the general ledger. Recommendation: The ability to make adjustments should be designated to certain individuals within the utility billing department and this access should be restricted in the system.All adjustments should require evidence of approval. If the ability to make adjustments is unable to be restricted in the system, monthly reviews of all adjustments should be performed to ensure only the designated employees are making adjustments.All adjustments should be reviewed to ensure they are appropriate. 10 I CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 H. Financial Statement Findings (continued) Finding#2017-007—Fee Department Activity Criteria: Policies, procedures, and controls should be in place to ensure all transactions for services originating in the various fee departments (utilities, courts, permits) are collected and deposited into the City's bank account and recorded in the general ledger. Condition: Based on our testing of 61 transactions, City personnel were unable to readily provide us with reports necessary to trace receipts to the bank statement for 50 transactions nor could the transactions be traced to the general ledger. While there was evidence of cash receipt totals reported by the central cashier that was able to be traced to both the bank statement and the general ledger due to the finance department bringing the bank reconciliation process current,there was no evidence of City personnel monitoring,on a routine basis, activity from the different fee departments to deposits in bank accounts or posting to the general ledger. Effect: Possible misappropriation of assets and understatement of revenues due to payments received from customers not being handle by the central cashier function or being deposited in the bank and recorded in the general ledger. Cause: The deposit worksheet prepared by the Central Cashier does not provide enough information to trace individual payments to the deposit worksheet.The Finance Department is unable to review the deposit worksheet to ensure it matches the source documents of all payments received. While the utility billing and permit production modules appear to be integrated into the cash receipts system, there is no report actively used by finance personnel to monitor these activities on a periodic basis.The municipal court system is less integrated and requires a manual process to record batch activity/deposits to the central cashier. Recommendation: All receipts processed should produce an audit trail sufficient enough to trace the transaction from the point-of-sale to the bank statement and the general ledger. The deposit worksheet prepared by the Central Cashier should provide a detailed breakdown of the sources of all payments received. The detailed support for each payment source should be available for review by the Finance Department when the deposit packet is submitted. All information should be reviewed by the Finance Department to ensure payments received in the system agree to the total deposit. The Finance Department should periodically reconcile payments received to the general ledger. II CITY OF PORT ARTHUR,TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS(continued) For the Year Ended September 30,2017 M. Federal Award Findings and Questioned Costs Finding#2017-008—Written Control Procedures for Federal Programs Community Development Block Grant—Disaster Recovery CFDA#14.228 Federal Transit Formula Grants CFDA#20.507 Criteria: The Uniform Guidance requires recipients of federal fund have written control procedures for compliance with federally funded programs. Condition: The City has no formal set of written control policies for federally funded programs being administered by the various departments. Effect: The lack of a formal set of written control policies for federally funded programs increases the likelihood that City staff will not adhere to direct and material compliance requirements of any given grant and that the lack of compliance will not be identified or corrected in a timely manner by an appropriate level of management in the normal course of their duties. Cause:The high turnover rate for the past few fiscal years has left the City short of institutional knowleugc when it comes to federal grant administration. Although we did not find any material non-compliance in regards to the City's management of federally funded programs, there was no readily available documentation of steps taken to ensure compliance on grants that were tested. Questioned Costs: None. Recommendation: Financial management and staff charged with grants management should begin immediately to produce a policy and procedures manual addressing both the programmatic compliance issues with individual grants as well as the financial and administrative requirements that accompany each grant. 12 CITY OF PORT ARTHUR,TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the year ended September 30,2017 Federal Pass-Through CFDA Entity Identifying Federal Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures U.S.Department of Agriculture Pass Through Texas Department of Agriculture: Special Supplemental Nutrition Program for Women.Infants and Children 10.557 2017-049740-001 S 645,121 Total U.S Department of Agriculture 645,121 U.S.Department of Defense Passed Through Texas Department of Public Safety: Southeast Teras Auto Theft Task Force 12.597 608-17-1230100 - 10,600 Total U.S.Deparment of Defense 10,600 U.S.Department of Housing and Urban Development Direct Community Development Block Grant-Entitlement Grants 14.218 B-15-MC-48-0005 1363,910 Home Investment Partnerships Program 14.239 M-15-MC-48.0217 177,568 Total Direct 1,541,478 Passed Through Texas General Land Office: DRS22014813-333-000-7653/12- Commuruty Development Block Grant-Disaster Recovery 14.228 449-000-6539 1,732,947 Total U.S.Department of Housing and Urban Development 3,274,425 U.S.Department of Justice Direct: Asset Forfeiture Seized Property(Federal Equitable Sharing) 16.001 TX1230700 61273 Passed Through Jefferson County: Edward Byrne Memorial Justice Assistance Grant 16.738 2015-Dl-BX-1005 27,943 Total U.S.Department of Justice 89,216 U.S.Department of Transportation Direct: Federal Transit-Formula Grants• 20.507 TX-90-X612/fX-90-X869/TX-90- - X916 2,578,771 Passed Through Jefferson County: National Priority Safety Programs-Click u or Ticket 20.616 2017-PortArthur-CLOT-00031 2,767 Total U.S.Department of Transportation 2,581,535 U.S.Department of Education Direct: School Safety National Activates 84.184 EMT-06-PA-0005 23,533 Total U.S.Department of Education 23,533 U.S.Department of Health and Human Services Passed Through Texas Department of State Health Services: Public Health Emergency Preparedness 93.069 2016-001230-02 95,321 Immunization Grants 93.268 2016-001079-01 179,135 Social Services Block Grant-Primary Health Care 93.667 2016-048585-002 151,388 Medical Assistance Program 93.778 529-I 6-0003-0005A 576,012 Preventative Health and Health Services Block Grant 93.991 2016-01188-00 141,345 Total U.S.Dpeartment of Health and Human Serivices 1,143,201 U.S.Department of Homeland Security Passed Through Jefferson County: State Homeland Security Program-Raid& Transit Security Program 97.067 EMW-2016-SS-00056 52,103 Total U.S.Department of Homeland Security 52,103 Total Expenditures of Federal Awards S 7,819,737 •See Note 3-Corningted Assistance 13 CITY OF PORT ARTHUR TEXAS NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS September 30,2017 Note 1- Basis of Accounting The City accounts for awards under federal programs in the General and Special Revenue governmental funds. In the Governmental funds, these programs are accounted for using a current financial resources measurement focus. With this measurement focus,only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources)and decreases(i.e.expenditures and other financing uses)in net current assets.The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred,if measurable,except for certain compensated absences and claims and judgments,which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Expenditures are recognized following the cost principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited to reimbursement.Pass-through entity identifying numbers are presented where available. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant,and,accordingly,when such funds are received,they are recorded as unearned revenues until earned. Generally, unused balances are returned to the grantor at the close of specified project periods. The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. All federal grants are subject to review by the grantor agencies.Any expenditures identified by the grantor agencies as disallowed could require reimbursement to the grantor agency from the City's general fund.As of the date of this report,the City's closeout audit for the Federal Emergency Management Agency was not complete. Note 2- Basis of Presentation The accompanying schedule of expenditures of federal awards(the"Schedule") includes the federal grant activity of the City under programs of the federal government for the year ended September 30,2017. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the City,it is not intended to and does not present the financial position,changes in net position or cash flows of the City. Note 3- Corningled Assistance-Federal Transit- Formula Grant The City's Transit program is funded through a combination of federal and state awards, as well as local program income. The federal portion of the expenditures related to the program is not separately identifiable because of comingling assistance from State funding. 14 � F ,r CITY OF PORT ARTHUR,TEXAS SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended September 30,2017 Federal regulations,Title 2 U.S. Code of Federal Regulations §200.511(b) requires the auditee to be responsible for follow up on all audit findings.As part of this responsibility,the auditee must prepare a summary schedule of prior audit findings to report the status of all audit findings included in the prior audit's schedule of findings and questioned costs. The Summary Schedule of Prior Year Findings and Questioned Costs has been prepared to address these requirements. I. Status of Prior Year Findings and Questioned Costs Finding#2016-001 —Reconciliation of Cash Accounts The City's cash accounts were not properly reconciled on a monthly basis during the fiscal year.As such,financial statements were not regularly provided to City Council and were not readily available to be audited at fiscal year- end. Material adjustments to the general ledger were required for year-end financial reporting. This deficiency was noted in the fiscal year 2013,2014,2015 and 2016 financial and compliance audit communications. As of the end of fiscal year 2017, the finance department staff was able to reconcile the City's bank accounts to the general ledger in a timely basis. Finding#2016-002—Risk Assessment/Anti-Fraud Policy The City is currently working on establishing an anti-fraud policy for adoption by council. Partially resolved.See Finding#2017-001. Finding #2016-003—Written Financial Closing Policies and Procedures Although the city finance department personnel have made great strides in the closing process,we have found no evidence of formal closing procedures and policies.See finding#2017-002. Finding#2016-004—Written Control Procedures for Federal Programs The City has developed policies for sub-recipient monitoring and purchasing policies to address specific federal programs. The City will work towards creating a procedures manual to address the controls and compliance procedures for all federal award programs. a 15 CITY OF PORT ARTHUR,TEXAS CORRECTIVE ACTION PLAN For the Year Ended September 30,2017 Federal regulations, Title 2 U.S. Code of Federal Regulations §200.511(c) states, "At the completion of the audit,the auditee must prepare,in a document separate from the auditor's findings described in§200.516 Audit findings,a corrective action plan to address each audit finding included in the current year auditor's reports." The Corrective Action Plan for the year ended September 30, 2017 has been prepared to address these requirements. I.Corrective Action Plan Finding#2017-001 —Anti-Fraud Policy Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Financial management is currently working on the Anti-Fraud policy to bring to council for approval. Implementation Date: February 2019 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director Finding#2017-002—Written Financial Closing Policies and Procedures Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Financial management is currently working on finalizing month end, year end closing policy and procedures. Implementation Date: July 2018 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director Finding#2017-003—Purchase Orders Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Purchasing is working on training classes for employees who are responsible for procuring goods and services with the use of the P.O. system.Also, revise purchasing policies and procedures to reflect proper handling. Implementation Date: June 2019 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director 16 CITY OF PORT ARTHUR,TEXAS CORRECTIVE ACTION PLAN For the Year Ended September 30,2017 I.Corrective Action Plan (continued) Finding#2017-004—Personnel File Maintenance Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Personnel File are reviewed and inspected for completeness with proper tab's for pertinent information. Implementation Date: May 2018 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director Finding#2017-005—Purchasing(P-cards) Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: P-Cards training is offered that covers uses, proper documentation and approvals needed to execute transactions. Implementation Date: June 2018 Responsible Person: Andrew Vasquez, Finance Director, and Harold Hankins,Assistant Finance Director Finding#2017-006 —Utility Billing Adjustments Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Utility management will be executing approval process for all Utility Billing adjustments. Implementation Date: June 2019 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director 17 CITY OF PORT ARTHUR,TEXAS CORRECTIVE ACTION PLAN For the Year Ended September 30,2017 I.Corrective Action Plan(continued) Finding#2017-007—Fee Department Activity Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Financial management has access to payment type reporting that can give date and time stamped information to track details of payment source. Implementation Date: June 2019 Responsible Person: Andrew Vasquez,Finance Director,and Harold Hankins,Assistant Finance Director Finding#2017-008—Written Control Procedures for Federal Programs Views of Responsible Officials: Management agrees with this finding. Corrective Action Plan: Financial management is working on compiling into one document that includes accounting,purchasing, monitoring policies and procedures for federal programs. Implementation Date: June 2019 Responsible Person: Andrew Vasquez,Finance Director, and Harold Hankins,Assistant Finance Director 18 Hcvstcn O$ece fid 3737 eutfab°i�ccdw whitleypenn suite MO Hous'.on.Texas 77698 713.621.sb15 Main whittoyponn,com REPORT OF INDEPENDENT AUDITORS To the Honorable Mayor and Members of City Council City of Port Arthur,Texas Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, the discretely presented component unit and aggregate remaining fund information of the City of Port Arthur,Texas(the"City")as of and for the year ended September 30,2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. AA:141104"N exia Austin Dc'us Fort Werth Houston Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of governmental activities, the business-type activities, each major fund, the discretely presented component unit and aggregate remaining fund information of the City,as of September 30,2017,and the respective changes in financial position and,where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. • Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary schedule for the General Fund and required pension system information and other post-employment benefits information on pages 4 through 10 and 68 through 74 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and budgetary schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion,the combining and individual nonmajor fund financial statements and budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 K Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of governmental activities, the business-type activities, each major fund, the discretely presented component unit and aggregate remaining fund information of the City,as of September 30,2017, and the respective changes in financial position and,where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary schedule for the General Fund and required pension system information and other post-employment benefits information on pages 4 through 10 and 68 through 74 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and budgetary schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion,the combining and individual nonmajor fund financial statements and budgetary schedules are fairly stated,in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 Key Staff Mary E. Essex Grants Program Administrator City of Port Arthur 444 4th St. P.0. Box 1089 Port Arthur,TX 77640 (409)983-8251 Mary.essex@portarthurtx.gov Alberto Elefano City Engineer City of Port Arthur (409)983-8182 Alberto.elefano@portarthurtx.gov Melinda Smith Vice President, Project Manager Traylor&Associates, Inc. P.O. Box 7035 Tyler,Texas 75711 TEL(903)939-7405 I FAX(903) 581-4245 1 CELL(903)431-0407 melinda.smith@grtraylor.com TBD— Engineering Firm(s) 1 . City of // i x \ M cert riur Z:as City of Port Arthur TX Procurement Policies and Procedures P.O. Box 1089 I 444— 44%Street,2"d Floor I Port Arthur,TX 77641 e 409.983.8160 I A 409.983.8291 I 2 purchasing@portarthur.net I www.portarthur.net Table of Contents CHAPTER 1 —GENERAL PROVISIONS §1-10 1 Purpose 5 §1-102 Public Procurement 6 §1-103 Mission 6 §1-104 Function and Responsibilities 6 A. The Purchasing Division B. The Using Departments C. Vendors §1-105 Principles 8 §1-106 Code of Ethics 8 §1-107 Conduct when dealing with vendors 9 §1-108 Procurement Records and Information 10 CHAPTER 2—ADMINISTRATIVE MATTERS §2-101 Applicability 11 §2-102 Changes to the Manual 11 §2-103 Signatory Authorities and Approval Thresholds 11 §2-104 Department Representatives 12 §2-105 Local Business Preference 12 §2-106 Historically Underutilized Business (HBs) 12 §2-107 Disadvantaged Business Enterprise (DBEs) 13 §2-108 Conflict of Interest 13 §2-109 Tax Exempt Status 14 §2-110 Confidential Information 14 CHAPTER 3—SOURCE SELECTION PART A METHODS OF'SOURCE SELECTION §3-101 Methods of Source Selection 15 §3-102 Competitive Sealed Bidding 15 §3-103 Competitive Sealed Proposals 18 §3-104 Small Purchases 19 §3-105 Sole Source Procurements 20 §3-106 Emergency Procurements 20 §3-107 Cooperative Procurements 20 City of Port Arthur Purchasing Manual Page 2 January 2019 I CHAPTER 3—CONT'D PART B DETERMINATIONS AND REPORTS §3-201 Finality of Determinations 21 §3-202 Bid Protests 21 §3-203 Reporting of Anticompetitive Practices 22 §3-204 Retention of Records 22 CHAPTER 4—SPECIFICATIONS §4-101 Specification Preparation 23 §4-102 Specifications Prepared By Other Than City Personnel 23 §4-103 Specification Amendments 23 §4-104 Pre-bid Conferences and Site Visits 23 CHAPTER 5—LEGAL PART A—BONDS §5-101 Payment Bonds 25 §5-102 Performance Bonds 26 §5-103 Bid Bonds 26 PART B —INSURANCE 26 PART C—PROMPT PAYMENT ACT 27 CHAPTER 6—CONTRACT ADMINISTRATION, MODIFICATION AND TERMINATION PART A—GENERAL INFORMATION 28 PART B —TYPES OF CONTRACTS §6-101 Multi-Year Contracts 28 PART C CONTRACT ADMINISTRATION §6-201 Execution 28 §6-202 Monitoring 29 §6-203 Renewals 29 PART D CONTRACT MODIFICATIONS AND TERMINATIONS §6-301 Change Orders 30 §6-302 Terminations 30 PART E MAINTENANCE AND LEASE AGREEMENTS §6-401 Maintenance Agreements 30 §6-402 Lease Agreements 31 City of Port Arthur Purchasing Manual Page 3 January 2019 CHAPTER 7—SURPLUS MATERIALS AND EQUIPMENT PART A—DISPOSAL §7-101 City-owned Materials and Equipment 32 §7-102 Seized, Abandoned, Unclaimed Property 34 §7-103 Gambling Paraphernalia, Prohibited Weapons, etc 34 §7-104 Explosive Weapons and Chemical Dispensing Devices 34 §7-105 Seized Weapons 34 PART B TRANSFERS/DONATIONS §7-201 Between Departments 34 §7-202 To or From an Outside Source 34 CHAPTER 8—CREDIT CARDS §8-101 Procurement Cards (p-Cards) 35 §8-102 Fuelman Cards 35 §8-103 Shell and Chevron Gas Cards 35 CHAPTER 9—FEDERAL §9-101 Compliance with Federal Requirements 36 §9-102 Excluded Parties List System (EPLS) 36 §9-103 Compliance with FTA Requirements 36 §9-104 Minority Contractors 36 §9-105 Duplicative or Unnecessary Items 37 CHAPTER 10—PROFESSIONAL SERVICES §10-101 Professional Services 38 §10-102 Competitive Sealed Qualifications 38 §10-103 Infrastructure Facilities and Services 39 EXHIBITS Exhibit A— Conflict of Interest Exhibit B — Tax Exemption Certificate Exhibit C — Sole Source/Special Procurement Request Exhibit D — Emergency Purchase Request Exhibit E — Vendor Complaint Report Exhibit F — Surplus Property Disposition City of Port Arthur Purchasing Manual Page 4 January 2019 CHAPTER 1- GENERAL PROVISIONS §1-101 Purpose. The City of Port Arthur, Texas (City) Purchasing Division presents this manual to promote understanding by employees, vendors, contractors, and the public regarding the procurement of goods and/or services on behalf of the City. The public must have confidence that public funds are spent prudently, on its behalf, and not for the personal benefit of City employees, officials, or their friends. The deliberate elements of actual or perceived conflict of interest, fraud and abuse can be destructive to the public trust. The policies and procedures incorporated within should: • Provide a combined centralized and decentralized procurement program encompassing nationally approved principles and practices. • Be reviewed, thoughtfully and regularly, to ensure the utility of procurement statutes and for periodic modifications for improvements that will enhance the efficiency and effectiveness of the procurement function. • Promote and encourage ethical management and efficiency in City procurement procedures. The purpose of this manual is to establish policies and procedures that will be used to: • Simplify, clarify and modernize the City of Port Arthur's procurement practices. • Ensure the application of consistent and sound business practices in City purchasing and demonstrate our ongoing commitment to increasing communication among the departments. • Bolster public confidence in public procurement procedures. • Ensure the fair and equitable treatment of all persons dealing with the City procurement system. • Foster effective broad-based competition within the free enterprise system. • Provide increased economy in City procurement activities. • Maximize the procurement value of City funds. • Safeguard the high quality and integrity of the procurement system. • Ensure that expenditure of public funds (including Federal and State funds) complies with the terms and conditions of the funding source. If Federal or State requirements conflict with provisions of this manual, nothing in the manual shall prevent the City from complying with the terms and conditions of the Federal or State requirements. Because the City buys diverse services and commodities to support its operation, it uses a combined centralized and decentralized procurement system. These policies set forth the following elements of a centralized/decentralized procurement function: Centralized. These policies are to be followed by anyone who has the authority to act as an agent of the City in the procurement of all goods and services regardless of the dollar value. This authority lies within the Purchasing Division. Decentralized. These policies are for the benefit of City personnel responsible for the procurement of goods and services for their departments in an amount up to $25,000. City of Port Arthur Purchasing Manual Page 5 January 2019 §1-102 Public Procurement. Procurement in the public sector is the process through which a government acquires goods and services. The terms "procurement" and "purchasing" are often used interchangeably. However, "purchasing" is only one of three stages of the procurement cycle. I. Planning and scheduling. Procurement activities to meet program and budgetary objectives; 2. Source selection. (Purchasing) The process through which solicitations are issued, advertisements run, vendors selected, and goods and services received; and 3. Contract administration. Enforcement of the terms of the purchase agreement or contract and payment of invoices. One of the most important rules of public procurement to remember is that each procurement action results in a legal contract between the City and the supplier. Each procurement action is a legal action. Public procurement activities are governed by common law, the Uniform Commercial Code (UCC), government procurement laws and ordinances and case law. Thus, those persons making procurement decisions are subject to legal constraints (and exposure) well beyond what other City officials may routinely experience. §1-103 Mission. The Purchasing Division's mission is to assist all City departments in the procurement of materials, supplies, equipment and services at the lowest possible cost, consistent with the quality and delivery required. All purchases by an employee, acting as an agent of the City, must be made in an open, fair and ethical manner to promote competition and best serve the taxpayers. §1-104 Function and Responsibilities. A. The Purchasing Division Under the general supervision of the Director of Finance, some of the functions and responsibilities of the Purchasing Division are as follows: • To observe and enforce the procedures outlined and adopted in the City of Port Arthur Procurement Manual, City Ordinances, City Charter and State Law. • To conduct the Purchasing Division in such a frank and open manner that vendors: > Will be aware of the fairness of all awards ➢ Will be encouraged to continually furnish competitive bids so the City shall secure the best goods and services of the right quality and the best price. • To encourage competitive bidding at all times while maintaining good vendor relations. • To solicit new vendors, specifically Port Arthur vendors, and do all things possible to encourage maximum participation. • To maintain a list of vendors classified according to materials, equipment, supplies and services. • 1'o assist department directors in their efforts to purchase all supplies, materials and contractual services for the City. • To explore the possibilities of consolidating purchases of like, when possible, or common items to obtain the maximum economic benefits. City of Port Arthur Purchasing Manual Page 6 January 2019 3 • To prepare specifications, where practical, governing purchases of various items. However, when it is proposed to purchase articles of technical or scientific nature for special use, the head of the requisitioning department shall submit recommended specifications. • To provide for the inspection and appropriate testing for goods delivered, although this responsibility may be delegated to the head of the using department, and to insure that inferior or unsatisfactory articles are rejected or returned. • To stay abreast of current developments in the field of purchasing, i.e. prices, market conditions and new products. Investigate and analyze, for the benefit of the City, research done in the field of purchasing by other governmental agencies and by the private industries. • To monitor contract timelines in order to assure timely bids and contract renewals. • To maintain a record of all bids,quotations and purchases. • To investigate violations of the purchasing policies. • To arrange for the disposal of surplus/scrap materials and equipment, including obsolete stock and scrap, as outlined by this manual. • To oversee the operations of the mail center. B. Using Departments The Purchasing Division shall continuously familiarize itself with the particular requirements of the other City departments and be receptive to suggestions or comments. The Using Departments can assist the Purchasing Division in complying with state and local laws and regulations by: • Planning their work so that "Rush Orders" and "Emergencies" will be held to an absolute minimum. Requests for procuring goods and services should be forwarded to the Purchasing Division far enough in advance to allow us to obtain vendors and in turn, allow the vendor sufficient time to complete the request for quotation. • Monitoring staff purchases and requiring strict compliance with policies (i.e. no splitting of invoices to avoid the City's purchasing limits). • Preparing complete and reasonable specifications for materials that require engineering or technical background. Specifications should be written in a way that encourages maximum vendor participation to ensure the City receives the best goods and services at the most advantageous cost. • Assisting the Purchasing Division in developing and maintaining vendor lists by providing contact information as new vendors are identified. • Preparing agenda items timely, to allow for review by the Purchasing Division, Finance Department, Legal Department and the City Manager. • Monitoring contract timelines in order to assure timely bids and contract renewal. • Assisting the Purchasing Manager in establishing maximum and minimum quantities for inventory items and to inform him of any abnormal usage of materials sufficiently in advance so that an adequate supply may be maintained. • No City employee shall purchase supplies, materials or equipment of any 'iu id f.;, personal use. City of Port Arthur Purchasing Manual Page 7 January 2019 C.Vendors The Vendor Community can assist the Purchasing Division in complying with state laws and regulations by: • Following ethical business practices and procedures by working within the purchasing process, treating other vendors fairly and respectfully, not colluding or offering kickbacks. • Providing goods and/or services as specified and on time. • Completing and returning required forms, bid documents, affidavits and conflict of interest questionnaires. • Breach of any one of the aforementioned responsibilities is grounds for the City's Purchasing Manager to declare the vendor irresponsible. This designation will bar that vendor from recommendation for any contracts and removal from the qualified bidder's list. §1-105 Principles. The Purchasing Division personnel shall comply with the principles: • In all transactions,to consider first what is in the best interests of the City. • To believe and carry out the established policies of the City. • To be receptive to competent counsel from colleagues. • To be guided by counsel without impairing the dignity and responsibility of the office. • To establish practical procedures for the conduct of the office. • To subscribe to and work for honesty and truth in buying and selling and to denounce all forms and manifestations of commercial bribery. • To accord a prompt and courteous reception to all who call on a legitimate business mission. • To counsel and assist fellow employees in the performance of their duties. • To cooperate with and participate in organizations and with individuals engaged in activities designed to enhance the development and standards of procurement. §1-106 Code of Ethics. Public employees must discharge their duties impartially so as to assure fair, competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City of Port Arthur's procurement organization. Any employee that makes purchases for the City is an agent of the City and is required to follow the City's Code of Ethics. Additionally, the City's Purchasing Division is a member of the National Institute of Governmental Purchasing (NIGP), a national organization of procurement professionals. As members of NIGP, the Purchasing Division believes that the following NIGP ethical principles should govern the conduct of every person employed by a public sector procurement or materials management organization. A Procurement professional: • Seeks or accepts a position as head (or employee) only when fully in accord with the professional principles applicable thereto and when confident of possessing the City of Port Arthur Purchasing Manual Page 8 January 2019 qualifications to serve under those principles to the advantage of the employing organization. • Believes in the dignity and worth of the service rendered by the organization, and the societal responsibilities assumed as a trusted public servant. • Is governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served. • Believes that personal aggrandizement or personal profit obtained through misuse of public or personal relationships is dishonest and not tolerable. • Identifies and eliminates participation of any individual in operational situations where a conflict of interest may be involved. • Believes that an official or employee of a public entity should at no time, or under any circumstances, accept directly or indirectly, gifts, gratuities, or other things of value from suppliers, which might influence or appear to influence purchasing decisions. • Keeps the governmental organization informed, through appropriate channels, on problems and progress of applicable operations by emphasizing the importance of the facts. • Resists encroachment on control of personnel in order to preserve integrity as a professional manager. • Handles all personnel matters on a merit basis, and in compliance with applicable laws prohibiting discrimination in employment on the basis of politics, religion, color, national origin, disability, gender, age, pregnancy and other protected characteristics. • Seeks or dispenses no personal favors. Handles each administrative problem objectively and empathetically, without discrimination. §1-107 Conduct When Dealing with Vendors. All employees of the City are prohibited from accepting any gifts, samples, entertainment, special personal price considerations, fees, commissions or other gratuities from any vendors or bidders consistent with the Texas Penal Code. Employees may accept items of negligible value used as obvious forms of advertisement such as pencils, calendars, notepads and key ring, etc, which shall not be considered gratuities. Vendors or bidders who offer gifts, entertainment, etc. may be declared irresponsible bidders and may be debarred from bidding. An employee who accepts a gift, entertainment, etc. shall be subject to disciplinary action, up to and including termination. Vendor contact with employees in using departments should be through or with the knowledge of a Purchasing Division employee. The intent is to prevent vendors from bypassing the Purchasing Division in an attempt to influence employees. When performing procurement duties on behalf of the City, it is important to: • Deal with suppliers fairly. • Do not play the "meet or beat"game with pricing among bidders. • Offer to give equal assistance to all suppliers and potential vendors. • Be certain to make procurement records open and available to anyone requesting information consistent with the Texas Public Information Act. This excludes information you receive that is proprietary or confidential. City of Port Arthur Purchasing Manual Page 9 January 2019 I • Make certain solicitation activities are truly competitive. • State the award criteria in the terms of the solicitation and do not change those criteria without each bidder's knowledge. • No preference should be given, goods or services should not be called proprietary or sole source unless it is determined that they are and that determination can be documented. • No subjective favoritism is permitted; for example, a statement like "We have always bought from that vendor" is reasoning that does not encourage or allow for competition. • Be certain to give the same kind of service to internal customers and external suppliers as you expect to receive from them. The ability to make purchases on behalf of the City does not entitle the purchaser to any kind of special personal privileges from the vendor and no professional buying for the City should be, in any way, tied to any personal purchases at any time. PERCEPTION IS EVERYTHING. Even if a procurement decision is sound, the method of • determination should be documented and will be open to public inspection. If a decision is perceived to be less than fair to all competitors, then the perception becomes the reality to the unsuccessful bidders. And, if the opinion is that the City has "favorite companies we always do business with," our job is to set the record straight with all who may have this complaint. It is important that awards are made based on competition or the best value for the City, that the reason(s) for those awards is documented and defensible, and that a decision is based on fact and is made in the best interest of the City. §1-108 Procurement Records and Information. Public access to procurement information. Procurement information shall be a public record and shall be available to the public consistent with the Texas Public Information Act. Copies of procurement information. Copies of procurement information, subject to public access, are available to the public upon written request. A charge of $.10 per page will be collected from the requesting party and shall be paid to the City of Port Arthur, TX prior to obtaining the copies. City of Port Arthur Purchasing Manual Page 10 January 2019 ti 1 CHAPTER 2^-ADMINISTRATIVE MATTERS §2-101 Applicability. Policies and procedures set forth in this manual shall apply to all publicly funded purchases entered into by the City. Contracts funded, in whole or in part, with federal assistance monies shall comply with the appropriate federal law and the rules and regulations promulgated pursuant to such law. Policies and procedures set forth in this manual shall apply to all employees acting as agents of the City for the purpose of procurement of goods and/or services. Any,employee who expends City funds: (a) for personal use; (b) without the written approval of his/her manager; (c) without being authorized to act as an agent of the City; or (d) without following the procedures as set forth by the City will be subject to disciplinary action(s). §2-102 Changes to the Manual. All policy changes shall be made by City Council approved resolution(s)/ordinance(s) and incorporated herein. Grammar and/or punctuation changes made for clarification or easier interpretation may be made by the Purchasing Manager provided no policy(s) is affected by the change(s). §2-103 Signatory Authorities and Approval Thresholds. Generally, a City is required to follow the bidding or proposal procedures outlined in Local Government Code Chapter 252 when it plans to make an expenditure of more than $50,000 of city funds. Only the City Council has the authority, or may designate the authority, to commit funds. The City Council, by resolution, has authorized spending limits as follows: > DEPARTMENT DIRECTOR; $.01 - $5,00 ➢ PURCHASING MANAGER $.01 - $5,000 > CITY MANAGER $.01 - $25,000 ➢ CITY COUNCIL APPROVAL >$25,000 The City Manager and Department may submit a designee to approve purchases. The City Manager approves all designee's. The designee must be an Assistant Manager or Division Head. The City Manager and Department Directors will be responsible for all purchases under their authority. A list of all authorized approvers names and signatures, including designee's will be maintained by the Purchasing Manager and Assistant Director of Finance. The Purchasing Division requests that each City Department designate a buyer for its area. Authority has been granted for each designated department buyer to obtain at least three (3) written quotes up to $25,000 for items that have been approved in the City budget. Any quotes over$25,000 must be presented to City Council for approval prior to transacting a purchase. Once written quotes have been received, a purchase requisition must be entered into the system. A purchase order will be processed by the Purchasing Division authorizing the vendor to provide the goods and/or services requested. Any authorization of a purchase to a vendor without a purchase order is not valid.The Purchasing Manager will sign any purchase order over$500. Any purchase order under$500 does not require a signature. Any department requiring assistance for any purchase, regardless of the estimated cost, should contact the Purchasing Division. City of Port Arthur Purchasing Manual Page 11 January 2019 §2-104 Department Representative(s). Department heads of each department shall appoint a responsible and qualified employee(s)who shall assume the duties of liaison between their department and the Purchasing Division. The employee shall be responsible for the proper initiation of all purchasing matters concerning their departments, for the supervision of all receiving procedures and handling inventory for their department. All department heads shall make provisions to appoint an alternate in order to ensure that this program is maintained during the representative's absence. The Purchasing Division shall be advised by each department head of the name of the individual(s) who is designated as its representative. §2-105 Local Business Preference. The City is committed to supporting our Port Arthur vendors. Departments must patronize our local vendors within the guidelines of the law. A City may provide a preference for local business when awarding bids. State law allows such a preference only in specifically authorized situations. Per Resolution No. 09-379, the City Council has adopted policy consistent with State law granting local vendors' preference in contracting. Section 271.9051 of the Texas Local Government Code allows an eligible municipality to award a contract to a local bidder if the local bidder is within five percent(5%)of the lowest bid price. In this instance, a contract for construction services must be for an amount less than$100,000.00. A contract for other purchases must be an amount less than $500,000.00. The City Council must determine, in writing, that the local bidder offers the City of Port Arthur or its affiliates the best combination of contract price and additional economic development opportunities for the City created by the contract award, including the employment of Port Arthur residents and increased tax revenues to the local government. This preference does not apply to acquisitions utilizing federal funding in whole or in part. §2-106 Historically Underutilized Business (HUB). A city must contact at least two historically underutilized businesses if the city makes an expenditure of between $3,000 and $50,000. (1) Definition. Is (a) at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American and/or American woman, (b) an entity with its principal place of business in Texas, and (c) has an owner residing in Texas with a proportionate interest that actively participates in the control, operations and management of the entity's affairs. (2) Requirements. According to §252.0215 of the Texas Local Government Code, the City, in making an expenditure of more than $3,000 but less than $50,000, must contact at least two HUBs on a rotating basis, based on information provided by the comptroller. If the list fails to identify a HUB in Jefferson County, the City is exempt. If the expenditure is for less than $3,000 or for more than $50,000, this special notification requirement does not apply. (3) Procedure. Departments must contact at least two HUBs in the procurement process of construction, goods and services (including professional and consulting) if the City of Port Arthur Purchasing Manual Page 12 January 2019 f5 expenditure is between $3,000 and $50,000. To determine what businesses within the county are classified as HUBs, departments can access the comptroller's website: http://www.window.state.tx.us/orocurement/cmbl/hubonlv.htm I and enter appropriate search criteria. §2-107 Disadvantaged Business Enterprise (DBE). (1) Definition. A for-profit small business concern: (1) that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged, or, in the case of a corporation, 51 percent of the stock of which is owned by one or more such individuals; and (2) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. (2) Requirements. 49 CFR §26.21 of the Federal Transit Administration (FTA) Best Practices Procurement Manual requires all FTA recipients who receive$250,000 or more in FTA planning, capital, and/or operating assistance in a Federal fiscal year, and who let DOT-assisted contracts, to have a DBE program meeting the requirements of 49 CFR part 26. (3) Procedure. All procurements that involve the expenditure of FTA monies shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not presently reflected in this manual. §2-108 Conflict of Interest. Chapter 176 of the Texas Local Government Code requires a vendor that wishes to conduct business or be considered for business with the City of Port Arthur, Texas to file a conflict of interest questionnaire. This statute applies to all persons or businesses who conduct business with the City, including those who submit bids on city contracts, make purchases of surplus city property, or participate in any other purchase or sales transactions with a city. Pursuant to the requirements of§176.002(a) and §176.003 of the Texas Local Government Code, vendors or respondents who meet the following criteria must fill out a conflict of interest questionnaire no later than the seventh ) day after the person begins contract discussions or negotiations with the City or submit an application, response to a request for proposal.:; or bids, correspondence, or another writing related to a potential agreement with the City: A vendor or respondent that— (1) contracts or seeks to contract for the sale or purchase of property, goods, or services with a local governmental entity; or (2) is an agent of a person described in Subdivision (1) in the person's business with a local governmental entity. Any person who meets the criteria, as for enforcement to ensure the veracity of the vendors, the statute makes it a Class C Misdemeanor to violate the vendor disclosure provisions. The forms required to comply with the above Government Code are available on the Ethics Commission website at http://www.ethics_state.ttx_us/forms/CIQ.pdf. See Exhibit A. The City shall not contract for goods or services for any department if the contract is with an employee of that department. Furthermore, contracting for goods or services with an employee, administrative officer, member of the employee's immediate family, or a company which is owned in whole or part by an City of Port Arthur Purchasing Manual Page 13 January 2019 employee, administrative officer, or a member of his/her immediate family, or a company in which an employee, administrative officer, or a member of his/her immediate family has a financial interest (as defined below), is permitted providing strict adherence to the following requirements: • The Purchasing Division shall be notified immediately in writing, of such an ownership interest or financial interest. • No contract for goods or services shall be written to an employee owned business if it could be construed or there is an appearance that the City employee owned business has an advantage over other competitors. • No solicitation of business by the employee shall take place during his/her normal duty hours. • All purchases or contracts involving employee owned businesses, regardless of estimated cost, shall be completed by the Purchasing Division. For the purpose of this provision, • Owned in part means having an ownership interest of more than 10%of the business. • Financial interest means any interest in the business by means of a loan or other evidence of indebtedness, in excess of 10%of said business' outstanding indebtedness. • Immediate family is defined as a spouse, parent, child, or sibling. §2-109 Tax Exempt Status. The City is exempt from federal, state, and local taxes except in certain prescribed cases. An exemption certificate is available from the Purchasing Division and should be furnished to any of the City's suppliers upon request. See Exhibit B §2-110 Confidential Information. It shall be a breach of ethics for any employee or former employee of the City of Port Arthur to knowingly use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person. In addition, Section 39.06 of the Texas Penal Code makes it a criminal offense for a public servant to use confidential information for personal gain. City of Port Arthur Purchasing Manual Page 14 January 2019 E S , CHAPTER 3-SOURCE SELECTION Part A- Methods of Source Selection §3-101 Methods of Source Selection. There are a variety of methods available to acquire goods and services. Unless otherwise authorized by law, all City contracts shall be awarded by one of the following methods: (a) Section 3-102(Competitive Sealed Bidding); (b) Section 3-103 (Competitive Sealed Proposals); (c) Section 3-104(Small Purchases); (d) Section 3-105(Sole Source Procurement); (e) Section 3-106(Emergency Procurements); (f) Section 3-107(Special Procurements); (g) Section 10-102 (Architectural and Engineering Services). §3-102 Competitive Sealed Bidding. (1) Conditions for Use. Contracts shall be awarded by competitive sealed bidding for any solicitation that is projected to exceed $50,000 except as otherwise provided in Section 3- 101 (Methods of Source Selection). (2) Invitation for Bids. State law requires a formal, competitive process for purchases of more than $50,000 (Texas Local Government Code §252.021). However, there are sixteen (16) general exceptions delineated in Section 252.022 of the Local Government Code. An Invitation for Bids shall be issued and shall include, at a minimum: • the purchase description, • contractual terms and conditions applicable to the procurement, • any special terms and conditions, • criteria for evaluating the bids received • whether the bid will be awarded by line item, groups of items or the entire bid. (3) Public Notice. Any solicitation that is projected to exceed $50,000 (at a minimum) will be advertised. In accordance with §252.041 of the Texas Local Government Code: "notice of the time and place at which the bids will be publicly opened and read aloud must be published at least once a week for two consecutive weeks in a newspaper published in the municipality. The date of the first publication must be before the 14`h day before the date set to publicly open the bids and read them aloud." Bids are also posted on the City's website and Public Purchase, a free internet vendor registration and bid notification system. (4) Bid Opening. Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the Invitation for Bids.The amount of each bid, and such other relevant information as may be specified by regulation, together with the name of each bidder shall be recorded; the record and each bid shall be open to public inspection. City of Port Arthur Purchasing Manual Page 15 January 2019 (5) Bid Acceptance. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this manual. Un-opened bids are to be time and date stamped to validate the time of receipt. The clock located in the City Secretary's office will be the official time. Late bids shall not be considered and will be returned un-opened to the bidder. Bids which are lacking an appropriate signature on the Bid Proposal page or Affidavit form will be rejected. The Affidavit allows bidders to verify that they are not in arrears in their obligations to the City. See Article VI, Section 2-262 of the City's Code of Ordinances. Bids which are not received in a sealed envelope by bid opening date/time will be rejected by the Purchasing Division. This includes all envelopes, which are secured by metal clasp, twist tie string, etc or those, which do not otherwise preclude unauthorized access. Bidders who deliver their bids in an envelope which is not sealed may be allowed to correct this deficiency provided they do so before time/date specified for opening of bids. (6) Bid Evaluation. Bids shall be evaluated based on the criteria set forth in the Invitation for Bids in order to determine which represents the lowest responsive and responsible bidder. Any criteria, other than price, to be used in evaluating solicitations shall be clear and exact and stated in the Invitation for Bids. They must be stated with sufficient clarity and exactness to inform each bidder of the factors which will be used in evaluating a bid in relation to others. This statement enables bidders to estimate, within reasonable limits, the effect of the application of the evaluation factors to their bid. Factors such as estimated quantities, and delivery time when the need is urgent, together with liquidated damages in case of delay and any other circumstances which may cause the award to be made in an "unusual" manner, must be set forth in the request for quotations or invitation for bids. If a bid is non-responsive then it must be rejected and there is no need to continue the evaluation. Rejected bidders are not to be considered for award. Responsiveness is compliance with the requirements of the solicitation, including specifications and contractual terms and conditions. It also insures that all bidders respond to a solicitation in a common manner that provides the basis for equal competition. Absolute conformity is not required. Conformity in material respects suffices. This protects the bidders from being denied from the competition for reasons that are inconsequential. Failure by the bidder to accept the requirements of the bid is grounds for rejection of its bid. Some common instances where bids must be rejected and declared non-responsive are: • The bidder states that it will not accept an award unless the solicitation terms and conditions are modified or altered. • The bidder states that it will only accept an award for all line items when the solicitation allows award by line item or aggregate grouping of line items. • The bid is not submitted on the City's Bid Proposal page. • The Affidavit is not signed and notarized. • The bidder is found to be in arrears in their obligations to the City. • The bidder has been identified on the EPLS. See §9-102 • The bid item does not meet the stated specifications and the bidder has not indicated the item bid is an alternate. City of Port Arthur Purchasing Manual Page 16 January 2019 (7) Correction or Withdrawal of Bids; Cancellation of Awards. Bidders are allowed to make corrections to their bid only before the bid opening date and time. Bids will still be due at the specified date and time in order to be considered for award. A bid that has been opened may not be changed for the purpose of correcting an error in the bid price. This chapter does not change the common law right of a bidder to withdraw a bid due to a material mistake in the bid. A bidder choosing to withdraw their bid may do so by providing a signed letter requesting to withdraw their bid. The withdrawal request letter must identify the method of return or identify the person authorized to receive the bid. If no method of bid return is identified, the bid shall be destroyed after bid opening. Cancellation of awards or contracts shall be permitted with City Council approval and is appropriate only under the following circumstances: • Unavailable, inadequate, ambiguous specifications, terms, conditions or requirements were cited in the solicitation; • Specifications, terms, conditions or requirements have been revised; • The supplies or services being contracted for are no longer required; • The solicitation did not provide for consideration of all factors of cost to the agency; • Bids received indicate that the needs of the agency can be satisfied by less expensive article differing from that for which the bids were invited; • All otherwise acceptable bids received are at unreasonable prices or only one bid is received and the agency cannot determine the reasonableness of the bid price; • No responsive bid has been received from a responsible bidder, or • The bid process was not fair or equitable. If any of the above criteria apply to the solicitation and an award is not consistent with the City's best interests, one of the following actions should be taken, as appropriate, after Council approval: Re-bid 1. Document the purchase file with summary narrative fully explaining the decision making process that lead to the decision to re-bid. 2. The narrative must clearly demonstrate that one or more of the statutory criteria are met. 3. Initiate the re-bid process and make changes to bid document as appropriate. Cancellation of Invitation for Bid I. The bid may be cancelled if the services or supplies are no longer needed. 2. Document the purchase file with summary narrative fully explaining the decision making process that lead to the decision to cancel the procurement. 3. The narrative must clearly demonstrate that one or more of the statutory criteria are met. (8) Award. The contract shall be awarded with reasonable promptness by the City Council to the lowest responsible bidder or to the bidder who provides goods or services at the best value for the City. In determining the best value for the City, the City may consider those City of Port Arthur Purchasing Manual Page 17 January 2019 things listed in §252.043 of the Texas Local Government Code. If the Best Value Method is utilized, it must be specifically stated in the bid specifications. Identical Bids. In cases where bidding is required and where two or more responsible bidders submit the lowest and best bids and these bids are identical in both amount and nature, the governing body of the City shall enter into a contract with only one of the responsible bidders and reject all other bids. If only one of the bidders submitting identical bids is a resident of the City of Port Arthur, the City must select that bidder. If two or more of the bidders submitting identical bids are residents of the City, the bidder shall be selected by casting of lots. In all other cases, the City must select from the identical bids by the casting of lots. The casting of lots must be in a manner prescribed by the Mayor or governing body, as the case may be, and must be conducted in the presence of the governing body of the City at which time all qualified bidders or their legal representatives may be present. Nothing herein shall prohibit the rejection of all bids by the governing body. §271.901 of the Texas Local Government Code. (9) Multi-Step Sealed Bidding. When it is considered impractical to initially prepare a purchase description to support an award based on price, a Request for Information (RFI) may be issued requesting the submission of un-priced offers to be followed by an Invitation for Bids. §3-103 Competitive Sealed Proposals. (I) Conditions for Use. A contract may be entered into by competitive sealed proposals when the Purchasing Manager or a designee above the level of the Purchasing Manager determines that the use of competitive sealed bidding is either not practicable or not advantageous to the City. (2) Request for Proposals. Proposals shall be solicited through a Request for Proposals (RFP). The relative importance of price and other evaluation factors must be specified. (3) Public Notice. Adequate public notice of the RFP shall be given in the same manner as provided in Section 3-102(3). (Competitive Sealed Bidding, Public Notice) (4) Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing offerors. Only the name and location of the responding vendors will be announced. A Register of Proposals shall be prepared and shall be open for public inspection. (5) Evaluation Factors. The RFP shall state the relative importance of price and other factors and sub-factors, if any, that will be considered in awarding a contract. Proposals shall be evaluated by committee to be formed by the Purchasing Manager. The evaluation committee shall screen and rate all of the responses that are submitted. (6) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the RFP, discussions may be conducted with up to five (5) responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best City of Port Arthur Purchasing Manual Page 18 January 2019 and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors. (7) Award. Award shall be made to the responsible offeror whose proposal conforms to the solicitation and is determined in writing to be the most advantageous to the City taking into consideration price and the evaluation factors set forth in the RFP. No other factors or criteria shall be used in the evaluation. Written notice of the award of a contract to the successful offeror shall be given to all offerors. (8) Debriefings. The Purchasing Manager is authorized to provide debriefings that furnish the basis for the source selection decision and contract award only after an award has been made by City Council. §3-104 Small Purchases. (1) Conditions for Use. Any procurement not exceeding $25,000 may be made by the Department Head or his designee in accordance with small purchase procedures provided below. Purchases above $25,000 will be procured by the Purchasing Division. Purchases shall not be artificially divided so as to constitute a small purchase under this Section. Note: Any purchase expected to exceed $25,000 must be approved by City Council. (2) Request for Quotes. Quotes are to be solicited for purchases between $1,000 and $24,999. • A minimum of three (3) quotations shall be sought from Port Arthur vendors, if available. If fewer than three (3) sources are solicited, the reasons are to be explained within the Purchase Requisition. • A minimum of one (1) minority-owned business and one (1) woman-owned business shall be invited to quote, if available. See § 2-106 • Awarded to the lowest, responsive and responsible quote. • If the description of the need is lengthy or complicated, a written solicitation should be used. The following elements should, at a minimum, be included in a Request for Quotes: • Administrative information: name, address, and phone number of using department and any special shipping instructions. • Any special terms and conditions. • The purchase description. • Specifications covering the item or items needed. • Criteria for evaluating the quotes received. (3) Procurement Cards. (pCards) An alternative procurement and payment method designed to reduce costs while preserving procurement controls. For policies and procedures pertaining to pCard purchases see §8-101. (4) Field Purchase Orders. (FPOs) FPOs are limited to a maximum dollar amount of$500 and the items must be purchased from Port Arthur vendors. City of Port Arthur Purchasing Manual Page 19 January 2019 §3-105 Sole Source Procurement. (1) Conditions for Use. Sole Source purchases are exempt from the standard bidding requirement according to §252.022(7)of the Texas Local Government Code. (2) Types of Sole Source Purchases. a) One-of-a-Kind —The product has no competitive product and is available from only one supplier. The product has essential unique design/performance features providing superior utility not obtainable from similar products. b) Compatibility — The product must match an existing brand of equipment for compatibility and is available from only one supplier. • Products that are an integral repair part or accessory compatible with existing equipment. • Products that, although not an integral repair part or accessory, must be compatible with existing equipment, systems or a substantial parts inventory and compatibility is the overriding consideration. c) Replacement Part — The product is a replacement part for a specific brand of existing equipment and is available from only one supplier • Components or replacement parts for which there is no commercially available substitute. (Ex. Components of a major assembly.) • Warranty required service and/or parts. d) Legal Monopoly — Circumstances may dictate that only one supplier can furnish the service such as Utility services. (3) Public Notice. Adequate public notice of the intent to award a sole source purchase will be posted on the City's website and Public Purchase for those purchases expected to exceed $5,000. (4) Procedure. Using Departments must complete the "Request for Sole Source Purchase" form (Exhibit C) and submit to the Purchasing Division. Upon approval by the Purchasing Manager, any purchases exceeding $25,000 must be submitted to City Council for approval. If there is any reasonable doubt to the validity of a 'sole source', competition will be attempted by the Purchasing Division in a manner appropriate to the projected budget. §3-106 Emergency Procurements. (1) Conditions for Use. An emergency purchase may be warranted to prevent a hazard to life, health, safety, welfare, property or to avoid undue additional cost to the City. (2) Procedure. Emergency purchases exceeding $5,000 require a letter of justification documenting the emergency and must be approved by the City Manager or his designee. Using Departments should complete the "Request for Emergency Purchase" form (Exhibit D) and submit to the City Manager for signature. The purchase must be placed on the next City Council agenda for ratification. §3-107 Cooperative Procurements. (1) Definition. The Interlocal Cooperation Act, Chapter 791 of the Government Code and Chapter 271, subchapters F and G, of the Local Government Code authorizes local governments to enter into interlocal agreements with other governmental jurisdictions City of Port Arthur Purchasing Manual Page 20 January 2019 3 including all states within the United States, independent school districts, counties, councils of governments, and non-profit corporations created to provide various governmental functions/services. Furthermore, §271.103 of the Texas Local Government Code provides for the purchase of goods and services under Federal supply schedules of the U.S. General Services Administration. (2) Requirements. Purchases of goods and services through co-ops satisfies any state law requiring the City to seek competitive bids for the purchase of the goods or services. Using Departments are requested to contact the Purchasing Division before attempting to secure pricing through any co-ops. Part B- Determinations and Reports §3-201 Finality of Determinations. The determinations required by Section 3-102(7) (Competitive Sealed Bidding, Correction or Withdrawal of Bids; Cancellation of Awards), Section 3-103(1) (Competitive Sealed Proposals, Conditions for Use), Section 3-103(7) (Competitive Sealed Proposals, Award), Section 3-105 (Sole Source Procurement), Section 3-106 (Emergency Procurements), Section 3-107 (Special Procurement), Section 5=101 (Multi-Year Contracts) are final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law. §3-202 Bid Protests. (1) Notice of Protest. A vendor wishing to protest any aspect of the procurement process must do so in writing and submit to the Purchasing Manager. The written protest should include, at a minimum: • Both the name and address of the protestor, as well as the vendor they represent, if different. • The name of the bid being protested. • A statement of the grounds for protest and any supporting documentation. A protest may be submitted to the Purchasing Manager no later than five (5) working days after award. (2) Staff Review. A protest must be in writing and supported by sufficient information in order to be considered. A decision and response to the protest will be prepared by the Purchasing Manager or his designee, in consultation with the department and the City Attorney, within fifteen (15) days of receipt of the protest. Within the fifteen (15) day time period, the City will: • Allow for informal conference on the merits of the protest with all interested parties. • Allow for reconsideration if data becomes available that was not previously known, or if there has been an error of law or regulation. • Render a decision supporting or canceling the award, such decision shall be in the form of a staff recommendation. (3) Appeals. If the protesting vendor does not agree with staff recommendation, they may appeal to the'City Council by contacting the City Secretary. Staff recommendations wily be made available for public review prior to consideration by the City Council. City of Port Arthur Purchasing Manual Page 21 January 2019 §3-203 Reporting of Anticompetitive Practices. When for any reason collusion or other anticompetitive practices are suspected among any bidders or offerors, a notice of the relevant facts shall be transmitted to the Attorney General. §3-204 Retention of Procurement Records. All procurement records shall be retained and disposed of in accordance with records retention guidelines and schedules approved by the City Council. All procurement records must be made available to the City Secretary in order to remain in compliance with the City's Records Retention Schedule. City of Port Arthur Purchasing Manual Page 22 January 2019 i CHAPTER 4-SPECIFICATIONS AND AMENDMENTS Part A—Specifications §4-101 Specification Preparation. The creation and submission of specifications to the Purchasing Division is the responsibility of the Using Department. Purchasing will assist the Using Department in any way necessary to develop specifications that will promote full and unrestricted competition. Departments should provide the Purchasing Division at least two (2) weeks to properly prepare a solicitation. It is imperative that Using Departments carefully plan their requests giving consideration to the Purchasing Division's timelines in connection with department deadlines. All specifications shall seek to promote overall economy for the purposes intended and encourage competition in satisfying the City's needs, and shall not be unduly restrictive. §4-102 Specifications Prepared by Other Than City Personnel. The requirements of this chapter regarding the purposes and non-restrictiveness of specifications shall apply to all specifications prepared other than by City personnel, including, but not limited to, those prepared by architects, engineers, and designers. §4-103 Specification Amendments. If, after issuance of a solicitation, changes must be made in quantity, specifications, delivery schedule, or closing date, or if corrections are needed because of defects or ambiguities, an amendment to the solicitation will be issued, in writing, no later than twenty-four (24) hours prior to the date and time fixed for submission of bids/proposals. Sole issuing authority of addenda shall be vested in the Purchasing Manager. If there was a mandatory pre-bid conference, only those vendors that were in attendance will be notified of amendments. Bidders are required to sign the amendment and submit it with their bid, attesting to the fact that the changes are reflected in their bid. Failure to submit a signed amendment may be grounds for a bid to be rejected. The City assumes no responsibility for the proposer's failure to obtain and/or properly submit any addendum. It is the vendor's responsibility to check for any addendums that might have been issued before bid closing date and time. All addenda will be numbered consecutively, beginning with I. §4-104 Pre-Bid Conferences and Site Visits. (1) Conditions for Use. A pre-bid conference may be held when specifications or the scope of work is considered somewhat complex and requirements need to be clarified by City personnel. Because of this, pre-bid conferences are mandatory and any vendor/supplier that does not attend will not be allowed to bid. (2) Process. The Purchasing Manager of the City of Port Arthur or his designee shall conduct all pre-bid meetings. In addition to the Purchasing Manager or his designee, there will be at least one city employee from the requesting department present at the pre- bid meeting. This employee must be knowledgeable of the bid specifications and should be prepared to answer all questions that pertain to the specifications. Pre-bid conferences and site visits are an opportunity for dialogue between the Purchasing Division, the Using Department and the Supplier community, and to facilitate the timely exchange of information to enable all involved to clarify bidding requirements and specific program needs. Bidder servicing or equipment capabilities, application of industry requirements or standards may be clarified. In addition, any need for changes in specifications or bid requirements may be identified to facilitate a more competitive environment or to better City of Port Arthur Purchasing Manual Page 23 January 2019 define the City's needs so that the City obtains the desired materials, equipment or services to meet the City's program needs. Sign-in sheets will be made available to all attending the pre-bid conference. Bids received from vendors not listed on the roll of attendees of mandatory pre-bid conferences will be rejected and returned unopened to the bidder. City of Port Arthur Purchasing Manual Page 24 January 2019 CHAPTER 5-LEGAL REQUIREMENTS Part A—Bonds To ensure that the successful bidder will enter into a contract with the City and complete the project as defined by the bid specifications, bidders may be required to provide the City with surety bonds guaranteeing successful completion of the contract. There are three types of surety bonds commonly used with City contracts as listed below. A surety is a firm (usually an insurance company) that will guarantee that the bidder will perform as defined by the specifications. The City will only accept corporate sureties as bonding entities. Personal sureties are unacceptable. Any required bonds must be issued to the City of Port Arthur before any work can begin. §5-101 Payment Bonds. (1) Definition. Payment Bonds are solely for the protection and use of payment bond beneficiaries who have a direct contractual relationship with the prime contractor or a subcontractor to supply public work, labor or material. (2) When Required—Amounts. In accordance with Chapter 2253 of the Government Code, a payment bond is required if a public work contract is in excess of fifty thousand dollars ($50,000). Bonds shall be furnished on prescribed forms in the amount of one hundred percent (100%) of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney. (3) Authority to Require Additional Bonds. Nothing shall be construed to limit the City to require a payment bond or other security in addition to such bonds, or in circumstances other than specified in this manual. (4) Suits on Payment Bonds — Right to Institute. Every person who has furnished labor or material to the contractor or its subcontractors for the work provided in the contract, in respect of which a payment bond is furnished under this Section, and who has not been paid in full therefore before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by such person or material was furnished or supplied by such person for which such claim is made, shall have the right to sue on the payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action for the sum or sums justly due such person; provided, however, that any person having a direct contractual relationship with a subcontractor of the contractor, but no contractual relationship express or implied with the contractor furnishing said payment bond, shall have a right of action upon the payment bond upon giving written notice to the contractor within 90 days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material upon which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be personally served or served by other form of receipted transmittal that confirms actual delivery to the contractor at any place the contractor maintains an office or conducts its business. (5) Suits on Payment Bonds — Where and When Brought. Every suit instituted upon a payment bond shall be brought in a court of competent jurisdiction for the county or district in which the construction contract was to be performed, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor City of Port Arthur Purchasing Manual Page 25 January 2019 was performed or material was supplied by the person bringing suit. The obligee named in the bond need not be joined as a party in any such suit. §5-102 Performance Bonds. (1) Definition. Performance Bonds are solely for the protection of the governmental entity awarding the public work contract and are conditioned on the faithful performance of the work in accordance with the plans, specifications, and contract documents. (2) When Required—Amounts. In accordance with Chapter 2253 of the Government Code, a performance bond is required if a public work contract is in excess of one hundred thousand dollars ($100,000). Bonds shall be furnished on prescribed forms in the amount of one hundred percent (100%) of the contract price with corporate surety duly authorized to do business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a certified and effective date copy of their Power of Attorney. §5-103 Bid Bonds. (1) Definition. A bid bond shows proof of guarantee to the governmental entity that you can comply with the bid contract and also that you can accomplish the job as laid out in the contract. It is a guarantee stating that you have the capability to take on and implement the project once you are selected during the bidding process. (2) Requirement for Bid Security. Bids for public works projects of$15,000 to $25,000 shall be accompanied by a bid guarantee of a certified check or cashier's check payable without recourse to the City. Bids for public works projects of$25,000 of more shall be accompanied by a bid bond with corporate security authorized to conduct business in the State of Texas. Chapter 2, Article VI, Sec. 2-281 of the Code of Ordinances (3) Amount of Security. Bid security, regardless of project amount, shall be in an amount not less than five percent (5%)of the amount of the total bid. (4) Rejection of Bids for Noncompliance with Bid Security Requirements. When the solicitation requires security, noncompliance requires that the bid be rejected. (5) Withdrawal of Bids. After bids are opened, they shall be irrevocable for the period of sixty(60) days or as specified in the solicitation (except as provided for bids in Section 3- 102(7)). Part B—Insurance All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by Owner. The Contractor shall, at his own expense, purchase, maintain and keep in force insurance that will protect against injury and/or damages which may arise out of, or result from, operations under a contract, whether the operations be by himself or by any subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable. The minimum insurance required for public works projects will be the types and amounts required in the most recent edition of the Standard Specifications for Public Works Construction issued by the North Central Texas Council of Governments. The Purchasing Manager, Risk Manager, City Engineer, Consulting Engineer or Architect may increase the amounts of insurance required for any project. For construction and construction-related projects, all contractors and sub-contractors, including those delivering equipment or materials, performing service on a Public Works project, shall City of Port Arthur Purchasing Manual Page 26 January 2019 F provide Texas workers' compensation for all employees. All contractors shall provide proof of coverage satisfactory to the City. Prime contractors are responsible for seeing that sub- contractors carry the same or higher insurance amounts as those required of the prime contractor. Contracts shall post required signs at job site(s) informing all workers of their right to workers' compensation coverage. Errors and Omissions Insurance Errors and omissions insurance shall be required to cover architectural and engineering services. Part C—Prompt Payment Act Payment will be made upon receipt of the original invoice and the acceptance of the goods or services by the City of Port Arthur, in accordance with the State of Texas Prompt Payment Act. The City's standard payment terms are net 30, i.e. payment is made within thirty (30) days from the date of the invoice. City of Port Arthur Purchasing Manual Page 27 January 2019 CHAPTER 6-CONTRACT ADMINISTRATION,MODIFICATION AND TERMINATION Part A—General Information All written contracts, whether they have been competitively bid or not, require City Council approval. Legal review is required on all written contracts being presented to City Council for approval. Contracts that require payment by the City must be approved by the Finance Director for the availability of funds before being presented to City Council for approval. Any contracts that have been competitively bid must be reviewed by the Purchasing Manager before being presented to City Council for approval. Part B - Types of Contracts The preferred type of contract to use for procurements is firm fixed price. It requires minimum administration and provides maximum incentive to the supplier. Examples of other contract types permitted are fixed-price with economic price adjustments, fixed-price incentive, cost- reimbursement, and time and materials contracts. However, any type of contract that will promote the best interest of the City may be used. A cost-reimbursement contract may be used only when a determination is made in writing that such a contract is likely to be less costly to the City than any other type or that it is impracticable to obtain the supplies, services, or construction required except under such a contract. The use of a cost-plus-a-percentage-of-cost contract is prohibited. Contracts based upon percentage discounts from or percentages added to prices listed in a manufacturer's published price list, in general distribution, are not considered to be cost-plus-a-percentage-of-cost contracts. §6-101 Multi-Year Contracts. (1) Specified Period. Unless otherwise provided by law, a contract for supplies or services may be entered into for any period of time deemed to be in the best interest of the City provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefore. (2) Cancellation Due to Unavailability of Funds in Succeeding Fiscal Periods. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled. Part C- Contract Administration §6-201 Execution. (1) City Administrators. The City Secretary is responsible for obtaining all City Administrator signatures on two (2) original contracts. After obtaining signatures, the City Secretary shall forward original contracts/resolutions to the Purchasing Manager for vendor signatures. (2) Vendors/Suppliers. The Purchasing Manager is responsible for obtaining all vendor/supplier signatures, as well as vendor insurance and payment/performance bonds, as necessary. This must be done before any work may commence. The vendor shall retain one (I) original signed contract and the Purchasing Manager shall return one (1) original signed contract to the City Secretary. Copies of the signed contract, Notice of Award, Notice to Proceed, Blanket Purchase Order, Certificate of Insurance and Bonds City of Port Arthur Purchasing Manual Page 28 January 2019 (if necessary) shall be supplied to the City Attorney and the Using Department. Original bonds and insurance documents shall be maintained by the Purchasing Manager. (3) Notice of Award. The Purchasing Manager shall issue a Notice of Award, in writing, notifying the successful bidder of the City Council's approval of their contract. (4) Notice to Proceed. The Purchasing Manager shall issue all Notices to Proceed, in writing, only after a signed contract, Certificate of Insurance and Payment/Performance Bonds (if necessary) hive been received. Using Departments must not issue Notices to Proceed in any form. §6-202 Monitoring. (1) Using Departments. The Using Department is responsible for monitoring the vendor and the goods and services being provided to the City. It is imperative that Using Department Heads and Superintendents familiarize themselves with their contracts in order to help facilitate vendor compliance. The scope of work, services and the terms and conditions of the contract must be met prior to making payment. (2) Vendor Performance/Complaints. Vendor performance will always be a consideration when deciding on contract award or renewal. The Purchasing Office, with the assistance of all Using Departments, will maintain a historical file of vendor performance. This information shall be used by the Purchasing Office in determining a vendor's suitability for award of future orders and contracts by the City. Using Departments should document a vendor's negative performance in meeting the terms and conditions of the contract using the Vendor Complaint Form (Exhibit E) and forward to the Purchasing Office. The Purchasing Office shall make contact with the vendor in an attempt to correct the problem within a reasonable amount of time. Should the problem not be corrected and/or negative vendor performance continues the Using Department shall terminate the contract based on the terms set forth in the solicitation. Vendors whose contracts have been terminated for poor performance shall not be allowed to bid for at least one (1) year. (3) Vendor References. The Purchasing Office may provide upon request by other governmental agencies, information as to the City's experience with a particular vendor and may request similar information from other governmental and non-governmental entities to determine a potential supplier's reliability and/or capability to perform in accordance with the City's requirements. §6-203 Renewals. (1) Vendor Agreement. The Purchasing Division shall be responsible for obtaining, in writing, a vendor's agreement to renew a contract at the original contract price. Once received, the Purchasing Division shall forward this information to the Using Department. Vendor Decline. Should a vendor.choose to decline an option to renew its contract with the City, the Purchasing Division shall obtain new pricing on behalf of the Using Department using the applicable method as listed in §3-101. (2) Using Department. The Using Department shall be responsible for preparing the necessary paperwork to submit a contract renewal to City Council for approval. The renewal process should be completed prior to a contract's expiration to allow for uninterrupted operations. City of Port Arthur Purchasing Manual Page 29 January 2019 f Part D—Contract Modifications and Terminations §6-301 Change Orders. (1) Definition. As stated in Texas Local Government Code §252.048, if changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity of work to be performed or of materials, equipment, or supplies to be furnished, the City Council may approve change orders making the changes. (2) Requirements. The original contract price may not be increased by more than twenty-five percent (25%). The original contract price may not be decreased by more than twenty- five percent (25%) without the consent of the contractor. All change orders must be approved by the City Council. (3) Appropriations. The total contract price may not be increased because of the changes unless additional money for increased costs is appropriated for that purpose from available funds. §6-302Terminations. (1) for Cause. if, through any cause, a Contractor shall fail to fulfill in a timely and proper manner his obligations under a contract, or if a Contractor shall violate any of the covenants, agreements or stipulations of a contract, the City shall thereupon have the right to terminate the contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. Notwithstanding, the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the contract by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined. (2) for Convenience. The City may terminate a contract at any time giving at least thirty(30) days notice in writing to the Contractor. If a contract is terminated by the City as provided herein, the Contractor will be paid for the service that it has performed up to the termination date. Part E--Maintenance and Lease Agreements §6-401 Maintenance Agreements. (1) Definition. The City maintains service agreements with manufacturers and authorized service centers for various machines and equipment. Criteria used to determine this need are: (a) The item cannot be repaired by City maintenance personnel without extensive training; (b) The item has many moving mechanical parts or is of such a nature that regular adjustment of an exacting nature is required; (c) The equipment is old, costly to replace, but in adequate shape for continued use. Cost benefit must be favorable; (d) The item is costly and the guarantee has expired. Computer related equipment is maintained through the Information Technology Division (IT). No computer maintenance agreements will be contracted for, until first approved by IT. City of Port Arthur Purchasing Manual Page 30 January 2019 e (2) Responsibility. It is the using department's responsibility to budget funds for and obtain necessary maintenance agreements and present them to City Council for approval, depending on the price and terms of the agreement. It is also the responsibility of the using department to assure that equipment is serviced per terms of the agreement. The using department must inform Purchasing of any disposition of equipment that makes it necessary to cancel an existing maintenance agreement. §6-402 Lease Agreements. All lease purchases or capital leases shall be coordinated with the Finance Department. This type of purchase and financing is unique and is accounted for through debt service funds, not the customary departmental expenditure accounts. City of Port Arthur Purchasing Manual Page 31 January 2019 CHAPTER 7-SURPLUS MATERIALS AND EQUIPMENT Part A- Disposal (1) Definition. The Purchasing Manager is responsible for the final disposition of City- owned surplus property through a public on-line auction. Surplus property shall consist of the following: • City-owned property, real or personal, which has been retired from service and no future need of same property is anticipated. • All abandoned, stolen or recovered property of every kind unclaimed with the Police Department for a period of sixty(60)days and bicycles unclaimed for a period of thirty (30) days. • Property seized by the Police Department and no longer of use to the department. (2) Restrictions. Under this provision, an employee may not purchase property of any type through City auction. The prohibition would also include an employee's spouse since property acquired during marriage is "community property" for which the employee would have an ownership. (3) Public Notice. The notice of an auction shall appear in the City newspaper for two consecutive weeks, with the first notice appearing fourteen (14) days prior to the auction being held. Thenotice shall also be placed on the City's website, www.portarthur.net. (4) Proceeds. The Purchasing Manager shall deposit the proceeds from the sale of salvage or surplus property into the City's general fund. §7-101 City-Owned Materials and Equipment. (1) Procedure. The Purchasing Manager will notify each department of the dates that the Adam's Building will be available to accept surplus items. Using departments will complete the Surplus Property Disposition Form (Exhibit F) and submit to the Purchasing office via e-mail (purchasing@portarthur.net) or interoffice mail, those items (including vehicles and heavy equipment) that they wish to dispose of. Once received, the Purchasing office will contact the using department to schedule the drop-off of surplus items. Each department is responsible for physically moving the surplus items to the Adam's Building and placing them in the appropriate gate. Vehicles and Heavy Equipment. Using departments that have vehicles and/or heavy equipment that they wish to dispose of must contact the City's garage and arrange for the equipment to be placed at the garage. (2) Responsibilities. Purchasing. The Purchasing Manager shall be responsible for: • Maintaining an inventory log of surplus items and equipment. • Advising all departments of the availability of the surplus items. • Releasing the item(s) to any using department based on first come-first serve. • Preparing an agenda item for City Council approval for the sale of the items and equipment, when appropriate. • Photographing all items and equipment and submitting to the auctioneer. • Notifying the public of the date and time of the auction. City of Port Arthur Purchasing Manual Page 32 January 2019 • Scheduling the auction, coordinating with the auctioneer and overseeing the sale. • Releasing the property to the successful bidder. No auction items shall be released to any buyer without a paid sales receipt from the Auctioneer. • Issuing an Application for Transfer of Title and the original title to the buyer of vehicles and equipment. • Filing a Notification of Transfer with the State. • Collecting the revenue from the auctioneer and depositing it with the Cashiers. • Ordering any of the property to be destroyed or otherwise disposed of as worthless if the City undertakes to sell that property and is unable to do so because no bids were received. • Establish contract to sell scrap metal. Equipment Services. The Garage shall be responsible for: • Removing any decals from the vehicle(s). • Removing all license tags from the vehicle(s). • Removing all additional equipment (GPS, siren, etc.) from the vehicle(s) • Preparing the appropriate forms for the auctioneer and submitting them to Purchasing. • Providing adequate personnel to assist in the management, placement and physical removal of auction vehicles and equipment prior to, during and after the auction. Auctioneer. The Auctioneer shall be responsible for: • Providing an on-line Internet auctioneering service according to the terms and conditions of the City's most current contract. • Setting minimum prices on items sold at auction. However, should it be in the best interest of the City to set a minimum price, the item should be appraised by an expert to determine a fair market value. • Collecting all monies from the successful bidder(s) per the contract agreement. • Providing receipts to the Purchasing Manager when buyers have rendered payment. • Negotiating the sale of any item(s) sold and not claimed to the next highest bidder. • Submitting payment of the total gross sales less sales tax and auctioneer commission to the Purchasing Manager, along with the sales recap outlining (for each item sold) the buyer's name and address and amount of sale. Buyer. The successful bidder shall be responsible for: • Rendering payment to the Auctioneer within forty-eight (48) hours of the auction close. • Removing the property from the City's facility within ten (10) working days. The ownership of the property shall revert back to the City if the successful bidder does not comply with the removal time limitation. City of Port Arthur Purchasing Manual Page 33 January 2019 §7-102 Seized,Abandoned,Unclaimed Property. (1) Definition. All unclaimed or abandoned personal property of every kind, other than contraband subject to forfeiture under Chapter 59 of the Code of Criminal Procedure and whiskey, wine and beer, seized by any peace officer of the City which is not held as evidence to be used in any pending case and has not been ordered destroyed or returned to the person entitled to possession of the same by a magistrate, which shall remain unclaimed for a period of (30) days shall be delivered to the Purchasing Manager for disposition. (2) Procedure. The disposition of seized, abandoned and unclaimed property shall be made in accordance with Article 18.17 of the Code of Criminal Procedure as it may be amended from time to time. §7-103 Gambling Paraphernalia,Prohibited Weapon, Criminal Instrument and Other Contraband. (1) Procedure. The disposition of gambling paraphernalia, prohibited weapons, criminal instruments and other contraband shall be made in accordance with Article 18.18 of the Code of Criminal Procedure as it may be amended from time to time. §7-104 Explosive Weapons and Chemical Dispensing Devices. (I) Procedure. The disposition of explosive weapons and chemical dispensing devices shall be made in accordance with Article 18.181 of the Code of Criminal Procedure as it may be amended from time to time. §7-105 Seized Weapons. (1) Procedure. The disposition of seized weapons shall be made in accordance with Article 18.19 of the Code of Criminal Procedure as it may be amended from time to time. Part B—Transfers/Donations §7-201 Between Departments. (1) Procedure. The Purchasing Manager shall make available the list of surplus property, including vehicles and equipment, to any using department. The property shall remain available for direct transfer to other using departments until the Adam's Building closes to prepare for auction. The Purchasing Manager will coordinate the transfer directly to another using department on a first come-first serve basis. §7-202 To or From an Outside Source. (1) To an Outside Source. The City may dispose of property by donating it to a civic or charitable organization or another governmental entity, or accept an offer of in-kind service equal to the FMV, if allowed by law. City Council approval will be required for items with a value of more than $500 prior to disposition. (2) From an Outside Source. Any donation or gift offered to the City must be approved in writing by the City Council prior to acceptance. The determination to accept or reject the donation will be based upon the best interest of the City, considering such things as projected operating, maintenance and insurance costs. City of Port Arthur Purchasing Manual Page 34 January 2019 CHAPTER 8^-CREDIT CARDS §8-101 Procurement Cards (pCards). (I) Definition. It is the policy of the City to maintain a procurement card program for the purchase of small dollar goods and services, and travel related expenses. pCards are available to individual employees upon written request by their department director. No employee shall receive a pCard until they have received training from the Purchasing Manager or his designee. Dollar limits are established by the Purchasing Manager with input from the Director of Finance and department heads. Employees on probation and temporary employees are not eligible to receive a pCard. (2) Procedure. The issuance, use and termination of pCards shall be made in accordance with the City of Port Arthur Procurement Card Program Policies and Procedures Manual as it may be amended from time to time. §8-102 Fuelman Cards. (1) Definition. A gas card assigned to each vehicle and piece of equipment in the City's fleet. (2) Procedure. The issuance, use and termination of fuel cards shall be made in accordance with the City of Port Arthur Fuel Card Program Policies and Procedures Manual as it may be amended from time to time. §8-103 Shell and Chevron Gas Cards. (1) Definition. A gas card issued to City employees to be used only for out-of-town, City- related travel while using the employee's personal vehicle or a rental. (2) Procedure. Employees must contact the Accounting Division to acquire a card for City- related travel. The gas card and all related receipts must be submitted to Accounting within one (1) week of returning to work. City of Port Arthur Purchasing Manual Page 35 January 2019 CHAPTER 9^-FEDERAL ASSISTANCE REQUIREMENTS §9-101 Compliance with Federal Requirements. (1) Procedure. All procurements that involve the expenditure of federal funds shall comply with such federal law and authorized regulations which are mandatorily applicable and which are not presently reflected in this manual. §9-102 Excluded Parties List System (EPLS). 1 (1) Definition. An electronic, web-based system that identifies those parties excluded from receiving Federal contracts, certain subcontracts, and certain types of Federal financial and non-financial assistance and benefits. (2) Procedure. It will be the responsibility of the using department to insure that the selected vendor is NOT on the EPLS up to seven (7) days before the contract date, but no later than the contract start date. The verification process involves searching for the vendor on the EPLS website http://www.epls.gov/epls/search.do. Any names found will appear in alphabetical order. If a match appears valid, the using department should contact the Purchasing office. (3) Documentation. Using departments must provide documentation from the EPLS website as to the status of a potential vendor. §9-103 Compliance with FTA Requirements. (1) The City will include the federal clauses required by FTA Circular 4220.1F. Including Buy America. (2) The Purchasing Division will contact Disadvantage Business Enterprises (DBE) for federal procurements, (3) The City will provide independent cost estimates (ICE) for federal procurements. The City will competitively purchase items, and avoid using Cooperative Purchasing Programs contracts that are not approved by FTA. §9-104 Minority Contractors. (1) The City will will make a good faith effort to contract minority contractors using the following criteria. a. Solicitation Lists. Must place small and minority businesses and women's business enterprises on solicitation lists. 2 C.F.R. § 200.321(b)(1). b. Solicitations. Must assure that it solicits small and minority businesses and women's business enterprises whenever they are potential sources. 2 C.F.R. § 200.321(b)(2). c. Dividing Requirements. Must divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women's business enterprises. 2 C.F.R. § 200.321(b)(3). d. Delivery Schedules. Must establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women's business enterprises. 2 C.F.R. § 200.321(b)(4). City of Port Arthur Purchasing Manual Page 36 January 2019 e. Obtaining Assistance. Must use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. 2 C.F.R. § 200.321(b)(5). f. Prime Contractor Requirements. Must require the prime contractor, if subcontracts are anticipated or let,to take the five affirmative steps described in steps 1-5 above. 2 C.F.R. § 200.321(b)(6). 9-105 Duplicative or Unnecessary Items 1) The City will give consideration to consolidate or break out procurements to obtain more economical purchase. 2) The City will purchase only items that are intended for the grant and not use grants funds to pay for additional items. City of Port Arthur Purchasing Manual Page 37 January 2019 CHAPTER 10^-PROFESSIONAL SERVICES §10-101Professional Services. (1) Definition. Generally, those services performed by an individual or group of individuals where education, degrees, certification and/or license is required for qualification to perform the service. The service is usually based on intellectual qualifications as opposed to craftsmanship. Certain professions are specifically named in the Professional Services Procurement Act, Government Code Sec. 2254.002(2)(a). (2) Method of Selection. The City may not select a provider of professional services or a group or association of providers or award a contract for the services on the basis of competitive bids submitted for the contract or for the services, but shall make the selection and award: (1) on the basis of demonstrated competence and qualifications to perform the services; and (2) for a fair and reasonable price. The professional fees under the contract may not exceed any maximum provided by law. Government Code Sec. 2254.003. §10-102Competitive Sealed Qualifications. (I) Conditions for Use. A contract may be entered into by competitive sealed qualifications for such professional services as architecture, land surveying, or professional engineering. (2) Request for Qualifications. Qualifications shall be solicited through a Request for Qualifications (RFQ). The relative importance of competence, qualifications and other evaluation factors must be specified. (3) Public Notice. Adequate public notice of the RFQ shall be given in the same manner as provided in §3-102(3). (Competitive Sealed Bidding, Public Notice) (4) Receipt of Qualifications. Qualifications shall be opened so as to avoid disclosure of contents to competing offerors. Only the name and location of the responding vendors will be announced. A Register of Qualifications shall be prepared and shall be open for public inspection. (5) Evaluation Factors. The RFQ shall state the relative importance dcr,onstrated compliance with requirements, offeror qualifications, financial capacity, project schedule and other factors, if any. Qualifications shall be evaluated by committee to be formed by the Purchasing Manager. The evaluation committee shall screen and rate all of the responses that are submitted. (6) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the RFQ, discussions may be conducted with up to five (5) responsible offerors who submit qualifications determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion. In conducting discussions, there shall be no disclosure of any information derived from qualifications submitted by competing offerors. (7) Negotiations. Once the evaluation committee has selected the most highly qualified provider, the City Manager, or his designee, must attempt to negotiate with that provider a contract at a fair and reasonable price. City of Port Arthur Purchasing Manual Page 38 January 2019 If a satisfactory contract cannot be negotiated with the most highly qualified provider, the City Manager, or his designee, shall formally end negotiations with that provider, select the next most highly qualified provider and attempt to negotiate a contract with that provider at a fair and reasonable price. This process shall continue until a contract is entered into. (8) Award Award shall be made to the responsible offeror whose qualifications conform to the solicitation and is determined in writing to be the most advantageous to the City taking into consideration the evaluation factors set forth in the RFQ. No other factors or criteria shall be used in the evaluation. Written notice of the award of a contract to the successful offeror shall be given to all offerors. (9) Debriefings. The Purchasing Manager is authorized to provide debriefings that furnish the basis for the source selection decision and contract award only after an award has been made by City Council. §10-103lnfrastructure Facilities and Services. (I) Definition. An infrastructure facility is a building; structure; or networks of buildings, structures, pipes, controls, and equipment that provide transportation, utilities, public education, or public safety services. Included are government office buildings; (waste)water treatment plants, and public roads and streets. (2) Project Delivery Methods. The following project delivery methods are authorized for procurements relating to infrastructure facilities and services in the City of Port Arthur: (a) Design-bid-build. A project delivery method in which the City Council sequentially awards separate contracts, the first for architectural and engineering services to design the project and the second for construction of the project according to the design. Design. The qualifications based selection process set forth in §10-102 shall be used to procure architectural and engineering services. Construction. Competitive sealed bidding, as set forth in §3-202 shall be used to procure construction in design-bid-build procurements, except where regulations authorize the use of competitive sealed proposals, as set forth in §3-203 for contracts for construction management at-risk. (b) Design-build. A project delivery method in which the City enters into a single contract for design and construction of an infrastructure facility. Contracts for design-build shall be procured by competitive sealed qualifications as set forth in §10-102. (3) Authorization. The Purchasing Manager, or his designee, has the discretion to select an appropriate project delivery method for a particular project. (4) Procedure. Project delivery methods shall be made in accordance with Chapter 271 of the Texas Local Government Code. City of Port Arthur Purchasing Manual Page 39 January 2019