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HomeMy WebLinkAboutPACKET MAR 20 2012 RICH WITH OtPORTUNtT'Y BEAUMON* T * 19 * X * A * REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS MARCH 20, 2012 1:30 P.M. CONSENT AGENDA * Approval of minutes—February 28, 2012 * Confirmation of committee appointments Jesus Perales would be appointed to the Community Development Advisory Committee. The term would commence March 20, 2012 and expire March 19, 2014. (Councilmember Audwin M. Samuel) Ronald Jackson would be appointed to the Parks and Recreation Advisory Committee. The term would commence March 20, 2012 and expire March 19, 2014. (Councilmember Audwin M. Samuel) Charles E. Heare would be reappointed to the Parks and Recreation Advisory Committee. The current term would expire February 11, 2014. (Councilmember Alan B. Coleman) Mel Shelander would be reappointed to the Parks and Recreation Advisory Committee. The current term would expire December 17, 2013. (Councilmember Alan B. Coleman) Carol Dixon would be reappointed to the Convention and Tourism Advisory Board. The current term would expire March 1, 2014. (Councilmember Jamie D. Smith) Jon Reaud would be reappointed as Chairman of the Community Development Advisory Committee. The current term would expire January 18, 2013. (Mayor Becky Ames) A) Adopt the Reinvestment Zone Tax Abatement Policy for the City of Beaumont B) Authorize the City Manager to increase the Cattail Marsh Constructed Wetland Rehabilitation Project C) Approve the purchase of mobile computers for use by the Police Department D) Approve the purchase of two vehicles for use by the Police Department's Auto Theft Task Force E) Approve Change Order No. 9 for work at the Downtown Event Centre Complex F) Approve a change order related to the East Lucas Lift Station and Force Main and Interceptor Rehabilitation Project G) Authorize the City Manager to execute a Lease Agreement for the use of property at 8155 Phelan as an EMS Station H) Authorize the City Manager to renew the loan agreement with the National Museum of the United States Air Force A RICH WITH OPPORTUNITY r E A,,T • 11 . g •M, ,A S City Council Avenda Item TO: City Council FROM: Kyle Hayes,City Manager c0 PREPARED BY: Chris Boone, Community Development Director MEETING DATE: March 20,2012 REQUESTED ACTION: Council consider adopting the Reinvestment Zone Tax Abatement Policy for the City of Beaumont. RECOMMENDATION The Administration recommends approval. BACKGROUND The City of Beaimnont's Reinvestment Zone Tax Abatement Policy is adopted every two years by the City Council and was last adopted on March 2,2010. The proposed Reinvestment Zone Tax Abatement Policy remains unchanged from that last adopted in 2010. The policy provides criteria for eligibility and implementation in accordance with Texas Tax Code,Chapter 312,otherwise known as the Property Redevelopment and Tax Abatement Act, governing property tax abatement agreements. All applications are considered on a case-by-case basis. Approval of any and all abets within a designated Reinvestment Zone are contingent upon final consideration and action by the City Council. BUDGETARY EWPACT None. RESOLUTION NO. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby adopts the City of Beaumont's Reinvestment Zone Tax Abatement Policy attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - CITY OF BEAUMONT ZONE TAX ABATEMENT POLICY PHILtIlSt?PHY Tax abatement is an economic development strategy to mitigate the snbstan ial.costs usually associated with the construction of a new or expansion of an existing facility that enhances the economic and/or social base of the community. Because property tax revenue is the means to provide vital community services,it is the position of City of Beaumont that tax abatement be utilized sparingly,and only after careful consideration of the economic impact on the community. Northing herein shall.imply or warrant that the City of Dumont is under any obligation to provide tax abatement to any applicant. ELIG This policy document provides criteria for eligibility and policy implementation as adopted by the City Council of the City of Beaumont,in accordance with Texas Tax Code,Chapter 312, otherwise known as the Property Redevek4mu rt and Tax Abatement Act(Act),governing property tax abatement agreements within Reinvestment Zones. All applications will be considered on a case-by-case basis. The following types of enterprises are eligible to apply for tax amt. • Industrial/Manufacturing-activities such as engaging in the mechanical or chemical transformation of materials or substances into new products; assembling component parts of mangy products,if the new product is neither a structure nor other fixed impmvemeat;and blending of materials,such as lubricating oils,plastic toxins or liquors. Other eligible activities include specialty resins and polymers,pharmaceuticals,medical devices wad specialty foods. • Distriibution-activities described as the wholesale distribution of durable and/or nondurable goods,such as motor vehicles,furniture,lumber and other construction materials,professional and commercial equipment, electrical goods,hardware and plumbing and heating equipment,paper and paper per,apparel and 8roceries- • Central administrative office services-examples include performing management,support services or telecommunication functions for related entities. • Properties subject to a Texas Commission on Environmental Quality (TCEQ)Voluntary Cleanup Program Agreement. Eligible property for which agent may be granted includes neon-residential real property and/or tangible personal property located on the real property other than that personal property EXHIBIT "A" I that was located on the real property at any time before the abatement agreement is executed. Abatement of taxes shall be the value of real or personal property located on the property for each year of the Tax Abatement Agreement only to the extent that the value for the year exceeds the value for the year in which the agreement was executed. Excluded from eligible personal property are inventory or supplies. Personal property with a useful life of less than tenn years is also not eligible for tax abet A. The City of Beaumont herein("Governmental Entity")adopts these guidelines and criteria for tax abatement("Policy')for real property owners who propose a project ("Project")to develop,redevelop and improve taxable qualifying real property("Real Property"). The Governmental Entity is willing to provide a subsidy to a Real Property Owner in the form of a special exemption from certain taxes provided the Real Property Owner agrees to accept and abide by this Policy. If the Real Property owner leases said properly to a third party,the Governmental Entity may require assurances any that the conditions outlined in this policy for the Real Property Owner will be met. B. The abatement of ad valorem taxes on Real Property Improvements and Eligible Personal Property will be evaluated and determined according to the following formula and will be subject to the remaining terms of this policy. NUMSER OF NEW PERCENT OF CREATED CAPITAL COST OF FULL-TIME JOBS VALUE TO BE ABATED THE PROJECT(OR) TO BE CREATED $ 0-S 500,000 Not Applicable 100'X.for 2 ym after project coon $ 500,001-52,000,000 20-30 100'X.for 3 years $2,000,001-53,500,000 31-40 1000K for 4 years $3,500,001 -$5,000,000 41-50 individual Case Basis $5,000,001 or more 51 or more A f dl4ime equivalent employment position is one that provides at least 2,080 hours annually within the City's taxing jurisdiction. The number of full-time equivalent employment positions is determined by adding the total number of hours worked and/or actual paid leave(such as vacation,sick leave,jury duty)of all employees,less overtime hours,and dividing that sum by 2,080. All existing jobs as well as those created must be maintained throughout the term of a tax abatement agreement C. With respect to a Project with a minimum investment of$5,000,001, each tax abatement request will be individually reviewed by the Governmental Entity and approved or declined based on the merits of the application. The percentage of taxes abated is one hundred punt went until Project Completion,not to exceed the first and second Tax Year. The percentage of taxes abated for the first through fifth Tax Years next following Project Completion shall be that percentage of abatement granted by the Governmental Entity at the time of the application. The City Council may extend the abatement period longer than the periods stated above if warranted based on an analysis of the direct economic impact. 2 The period of time that the taxes are abated will be referred to as the"Abatement Period". The"first Tax Year"is defined as the first full calendar year next following the commencement of construction of the Project. PROPERTIES SUBJECT TO VOLUNTARY CLEANUP AGREEMENT Tax abatement may apply to properties that are subject to a Voluntary Cleanup Program Agreement as executed with the Texas Commission on Environmental Quality(TCEQ)in accordance with§361.601 et.seq.of the Health and Safety Code for the cleanup or removal of a hazardous substance or contaminant from the envir nment,as follows: Coital Expenditure Abatement Years Minimum of$250,000 1000/0 1 75% 2 50% 3 25% 4 Tax abet for such properties shall not exceed four years and will take effect on January 1 of the year following the date the property owner receives a certificate of completion for the property. The City of Beaumont may cancel or modify the agreement if it determines that the use of the land is changed from the use specified in the certificate of completion,and the new use may result in an increased risk to human health or the environment. D. Prior to beginning the actual construction work or buying personal property for the Project proposed for tax abatement,the Real Property Owner requesting tax abatement within a lawfully created reeinvetrrern zone must: (1) Provide the Governmental Entity with(a)a description of the Project clearly defining and delineating the work to perform;(b)a statement agreeing to expend a designated amount("Project Cost")for the Project and,if the abort is based on Required Jobs,a separate statement agreeing that the required minimum number of full time jobs will be created("Required Jobs")and maintained during the term of the Contract;(c)an explanation as to how the Project will provide tong berm significant positive economic benefit to the community,the Governmental Entity and its taxpayers;(d)information as to what attempt will be made to utilize Jefferson County contractors and workers;and(e)information as to what attempt will be made to utilize Jefferson County minority contractors and workers. 3 (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. (3) Agree to execute a Contract with the Governmental Entity containing the covenants and conditions required by the Governmental Entity. E. Should the Governmental Entity agree to grant an abatement to the Real Property Owner after compliance with the procedure outlined above,then: (1) Subject to the terms,and conditions of the contract,a stipulated percentage as set forth above of those particular ad valorem real property taxes("Taxes")which are generated by virtue of fair market value created("Created Value")solely due to the construction and completion of the Project on the real Property will be abated. (2) The Period of Construction("Construction Period")for the Project shall not go beyond the end of the second Tax Year During the Construction Period the Real Property Owner must actually expend the Project Cost. (3) Within six months next following the end of the Construction Period,the Project must be operational;i.e.,it must actively serve the purpose for which it is designed. (4) In the event the Project is either. (a) Not complete at the Minimum Cost by the end of the Construction Period; or (b) Is timely completed at the Minimum Cost but is not operational within six months next following the end of the Construction Period;or (c) Is timely completed but the Required Jobs are not created or maintained as set forth in paragraph(B); or (d) Is timely completed at the Minimum Cost,is operational within six months next following the end of the Construction Period and,if applicable,meets the job requirements,but its operations are discontinued for a continuous period of six months,then the Contract shall terminate with respect to the Project and so shall the abatement of Taxes for the Created Value of the Project The Taxes othemse abated with respect to the Project shall be paid to the Governmental Entity on the date specified by law,or,if such date has passed,then within sixty(60)days of the accelerated termination of the Abatement Period (S) Employees and/or designated representatives of the Governmental Entity will have access to the Project during the term of the contract for inspection purposes so as to determine if the terms and conditions of the Contract are being met. All 4 inspections will be made only after the giving of twenty-four(24)hours prior notice and will only be conducted in such a manner as to not unreasonably interfere with the construction and/or operation of the Project. All inspections will be made with one or more representatives of the Real Property Owner, and in accordance with its safety standards. (6) In the event that(a)The Real Property Owner allow its ad valorem taxes owed the Governmental Entity to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest,or(b)the Real Property Owner violates any of the terms and conditions of the Contract,and fails to cure during the Cure Period(as hereafter provided),then the Contract may be terminated by the Governmental Entity,and all taxes otherwise abated by virtue of the Contract will be recaptured and paid to the Governmental Entity by the Real Property Owner within sixty(60)days of the termination. (7) The term"Base Year Value"as used herein is the market value of all realty improvements of the Real Property Owner located within the taxing entity as of January 1 of the year a contract is executed less the abated value of all projects granted the Real Property Owner by the taxing entity for the"Base Year". The term"Taxable Value"is determined by deducting the amount of any abatements granted for that Tax Year from the appraised market value of all realty improvements of the Real Property Owner located within that taxing entity. If on January ls'of any Tax Year all of the legally determined realty improvements owned by the Real Property Owner within the jurisdiction of the Governmental Entity is less than the legally determined Base Year Value and/or in the event that the Real Property Owner reduces their ad valorem taxes on personal property otherwise payable to the Governmental Entity by participating in a foreign trade zone or by having otherwise taxable property exempted pursuant to special legislation,e.g.,the"Freeport Amendment"("Special Treatmenf'),then the abatement otherwise available shall be reduced by one dollar for each dollar that the taxable value is less than the Base Year Value and,also,for each dollar of tax reduction attributable to Special Treatment;provided,however,that in no event shall the offset exceed the Created Value of the Project otherwise subject to the abatement of taxes. (8) Notwithstanding any other provision herein to the contrary in the event that the Governmental Entity adopting this Policy is required to adopt a tax rate which would subject the Entity to a tax rollback election under Section 26.07 of the Pray Tax Code,and this increase is caused by require;rax�ts set forth by the State;mandated by the judiciary;expenses required to repair,rebuild or rehabilitate improvements which are damaged or destroyed;or due to a significant decline in value of a major industrial complex located in the jurisdiction of the Entity,then the Entity may allocate the taxable value necessary to reduce the actual rate below the rollback rate to the Owners of abated property based on the Owner's prorate share of the total abated value for the current tax year 5 (9) Should the Governmental Entity determine that the Real Property Owner is in default in the terms and conditions of the Contract,then the Governmental Entity will notify the Real Property Owner at the address stated in the Contract of such claimed default,and if such is not cured within sixty(60)days from the date of such notice("Cure Period"),the Contract may be terminated by the Governmental Entity. Any notice of default shall be in writing and shall be given by personal delivery or by certified mail,return receipt requested. In the event the notice is affected by personal delivery,the date and hour of actual delivery shall be the time and date of such notice to the Business. Absent a postal strike or the stoppage of the mails,in the event of delivery of notice by registered or certified United States mail,the date and hour following 48 hours after the date and hour at which the sealed envelope containing the notice is deposited in the United States maul,properly addressed,and with postage prepaid,shall be the time and date of such notice to Real Property Owner. F. The Governmental Entity adopting this Policy shall have the final decision with respect to its inerpretation and,also,as to whether the minimum standards set forth above have been met by the Real Property Owner. G. This Policy shall terminate on the second anniversary from the date of its adoption by the Governmental Entity. APFLICATI4N For additional information on tax abatement,contact the Community Development Department at(409)880-3100. In determining how and with whom tax abatement will be utilized,the City will examine the potential return on the public's investment,including net jobs created,jobs ruined,broadening of the tax base,expansion of the economic base and competitive impact upon existing industries and businesses. Approval is contingent upon final consideration and action by the Beaumont City Council. To the extent permitted by law,information provided by an applicant in connection with a request for tax abatement is confidential and not subject to public disclosure until the tax abatement agreement is executed. 6 Application for Tax Abatement City of Beaumont This apron will become pert of the Tax Abmemcat Agreements and any b owingtyfalse representations will be grounds for the voiding of the agreement. An original copy of this request should be submitted to the Community Development Department, C City of P.O.Box 3827,BesumoK Texas 77704. Part I—Appliwt I>ttsr>Batioe AppLit WWR Date Company Name: Address: Telephone: Current Number of Employees: Annual Sales: Employees in Taxing Jurisdiction: Beaumont Address: Years in Jefferson County: Legal Counsel: Address: Telephone: Corporation Partnership Proprietorship Has the Applicant Company recently been cited or cunently under investigation for any violations of Federal, State,and/or City laws,codes,or ordinances? ( )No ( )Yes If yes,please provide detailed information on the nature and status of the vioMon(s)on a separate sheet of paper. Is any interest in the project presently held by a member of the Beaumont City Council,Planning and Zoning Commission,or any City employee? ( )No ( )Yes Attach a description of the Applicant Company,indu ing a brief history.corporate sbwdw4 and business plan and wunral statement f available. 7 Part II—Project Information Location Address: Legal Description: Tax Acct.Numbers: Attach t1 idly smog project describe euistigg site and nxprove MUS describe all pra)wsed improveNrenRs andprovide list of&pwvmenft and eq*wwnt for wlrrich abament is requested If available, provide a map showing location of existing and proposed improvements. Section A Economic Development Type of Facility/abatement: Industrial Central Administrative office services Manufacturing Distribution Brown fields site Other Describe product or service to be provided: Part III—Economic Information Construction Estimate: Contractor. Start Date: Contract Amount: Completion Date: Peak Construction Jobs: If Modernization: Part II—Project Information Location Address: Legal Description: Tax Acct.Numbers: Attach statement filly explaining project,describe existing site and improvements, describe all proposed improvements andprovide list of improvements and equipment far which abatement is requested If available, provide a map showing location of'eristing avid proposed hwo vemena. Section A—Economic Development Type of Facility/abatement: Industrial Central Administrative office services Manufacturing Distribution Brown fields site Other Describe product or service to be provided: I other City departments and/or utility companies; (6) describe any goodwill benefits your company will provide to the community. E91 MATO AM%AI M VALUE ON SM LAND IMPROVEMENTS (FURNt�' U>RrlIr MUS AM value on Jamey+1 proocofts abatem w Esdnm fed valve of nevr abadbae inva4msent Fantod value of propudes"subject to dWOMart i,e. F bmftd"ine of property subject to ad valorem tax at and of absotaM Please state the method used to determine the atirnated value of proposed improvements(i.e.approbal of plans and specs,etc.) (1) Provide the Governmental Entity with(a)a statement agreeing to expend a designated amount("Project Cost")for the Project and,if the abatement is based on Required Jobs,a separate statement agreeing that the required minimum number of full-time jobs will be created("Required Jobs")and maintained during the term of the Contract;(b)an explanation as to how the Project will provide a long term significant positive economic benefit to the community,the Governmental Entity and its taxpayers;(c)information as to what attempt will be made to utilize Beaumont contractors and workers; and(d)information as to what attempt will be made to utilize Beaumont or Jefferson County contractors and workers;and(e)information as to what attempt will be made to utilize Beaumont or Jefferson County minority contractors and workers. (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development, redevelopment or improvement of the Real Property will take place. (3) Agree to execute a Contract with the Government Entity containing the covenants and conditions required by the Governmental Entity. 9&gW uY Rotative to be Contacted: Authorized,COaMM Official: Name: Authorized Signature Title: Name and Title Address: Telephone: 9 B RICH WITH OPPORTUNITY BEAUMOK* T • E • g • A * 8 City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Hani J. Tohme,P.E., Water Utilities Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to increase the Cattail Marsh Constructed Wetland Rehabilitation Project in the amount of$92,160. RECOMMENDATION The Administration recommends approval. BACKGROUND The wetlands have undergone major physical,chemical,and biological changes since they were built in 1990. These changes prohibit the wetlands from meeting the design criteria and discharge limits set by the Texas Commission on Environmental Quality (TCEQ). The Water Utilities Department has negotiated and agreed upon a 4.5-year waiver with the TCEQ regarding discharge limits provided the City rehabilitates the wetlands. In January 2012 the TCEQ agreed to add an additional 1.5 years to the waiver. The waiver protects the City from fines that can be issued by the TCEQ as a penalty for permit limit excursions. The change order proposed by the City does not compromise the agreement with the TCEQ nor the integrity of the design. The number of plants was reduced from 468,414 plants to 125,000 in Change Order No. 1. The number of plants was increased from 125,000 plants to 225,000 in Change Order No. 2. This increase will furnish the additional 36,000 plants that are necessary to vegetate several areas of the wetlands. The proposed plant distribution is specific to certain cells for remedial planting. BUDGETARYIMPACT Funds for the project are provided by the Capital Program. APPROVAL OF CONTRACT CHANGE CHANGE ORDER No.Five,.W DATE: March 20,2012 PROJECT: City of Beaumont,Texas Cattail Marsh Constructed Wetland Rehabilitation OWNER: City of Beaumont,Texas 801 Main Street Beaumont,Texas 77704 CONTRACTOR: Brystar Contractors,Inc. 8385 Chemical Road Beaumont,Texas 77705 TO THE OWNER: Approval of the following contract change is requested. Reason for Change: To furnish all labor,equipment,materials,and supervision as required to complete the remedial planting at Cells 2,3,6,and 8. No correction in contract time(additional work days)is required in conjunction with this change. ORIGINAL CONTRACT AMOUNT: 512.894.000.00 AMOUNT OF CHANGE ORDER No.1 ($3,212,387.72) AMOUNT OF CHANGE ORDER No.2 $188,137.97 AMOUNT OF CHANGE ORDER No.3 $40,353.00 AMOUNT OF CHANGE ORDER No.4 $54,128.40 REVISED CONTRACT AMOUNT PER PREVIOUSLY APPROVED CHANGE ORDERS No.1,2,3,and 4 $9.964.231.45 THIS CHANGE ORDER Descd ion: Net Change Bid hem No.3,increase the quantity of plants specified in Section 02806,Table 1 AS MODIFIED BY CHANGE ORDER NO.2 fium 225,000 to 261,000. Species distribution shall be specified by the Consulting Engineer. Required species shall $92,160.00 be restricted to the species listed in Section 02806. Plant distribution is specific to certain cells for remedial planting.Direct supply of all plugs shall be harvested from on-site materials. TOTAL AMOUNT OF THIS CHANGE ORDER $92,160.00 TOTAL REVISED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER: 510.56.391.65 CONTRACT TIME Additional Time(Days)Requested/Granted: Q Calendar Days CONDITION OF CHANGE: "Contractor acknowledges and agrees that the adjustments in contract price and contract time stipulated in this Change Order represents full compensation for all increases and decreases in the cost of,and the time required to perform the entire work under the Contract arising directly or indirectly from this Change Order and all previous Change Orders. Acceptance of this waiver constitutes an agreement between Owner and Contractor that the Change Order represents an all inclusive,mutually agreed upon adjustment to the Contract,and that Contractor will waive all rights to file a claim on this Change Order after it is properly executed." Approved by: Accepted by: City of Beaumont Brystar Contracting,Inc. Owner Contractor Date: Date: F:\WWc91p\C.WL.UWan PWmmmlWdl-d Rehshiltt—\Cbnjp Order No 5—.1. RESOLUTION NO. WHEREAS, on November 6,2007,the City Council of the City of Beaumont,Texas, passed Resolution No.07-369 awarding a contract in the amount of$12,894,000 to Brystar Contracting,of Beaumont,Texas,forthe Cattail Marsh Constructed Wetland Rehabilitation Project; and, WHEREAS, on November 6, 2007,the City Council of the City of Beaumont,Texas passed Resolution No. 07-369 approving Change Order No. 1 in the amount of ($3,212,387.72), thereby decreasing the contract amount to $9,681,612.28; and, WHEREAS, on February 1, 2011, the City Council of the City of Beaumont, Texas passed Resolution No. 11-053 approving Change Order No. 2 in the amount of $188,137.97, thereby increasing the contract amount to $9,869,750.25; and, WHEREAS, on April 12, 2011, the City Council of the City of Beaumont, Texas passed Resolution No. 11-127 approving Change Order No. 3 in the amount of $40,353.00, thereby increasing the contract amount to $9,910,103.25; and, WHEREAS, on September 27, 2011, the City Council of the City of Beaumont, Texas, passed Resolution No. 11-284 approving Change Order No. 4 in the amount of $54,128.40, thereby increasing the contract amount to $9,964,231.65; and WHEREAS,proposed Change Order No. 5, in the amount of$92,160.00, is required to furnish the additional 36,000 plants that are necessary to vegetate several areas of the wetlands, thereby increasing the contract amount to $10,056,391.65; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute Change Order No. 5 for additional work described above, thereby increasing the contract amount by $92,160.00 for a total contract amount of$10,056,391.65. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - RICH WITH OPPORTUNITY B,EAUMON*- T • g • a * A • 8 City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer b� MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider approving the purchase of mobile computers for use by the Police Department. RECOMMENDATION The administration recommends approval of the purchase from Austin Ribbon and Computer of Austin in the amount of$79,886.16. BACKGROUND Pricing for the equipment was obtained through the State of Texas Department of Information (DIR). DIR provides cities and political subdivisions with the means to purchase information technology at volume prices contracted under the procurement statues of the State of Texas. The mobile computers will be used to replace current models in Police vehicles that went into service in 2005. The current computers have reached the end of their useful life and are incurring frequent repair costs. A three (3)year no fault warranty is included in the purchase. Warranty service is provided by the vendor. BUDGETARYIMPACT Funds for this purchase are available from the 2011 Justice Assistance Grant(JAG). No match is required. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of mobile computers for use by the Police Department from Austin Ribbon and Computer of Austin, Texas, through the State of Texas Department of Information Resources (DIR) contract, in the amount of $79,886.16. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - D RICH WITH OPPORTUNITY BEAU, #ON* T • $ • a • A • S City Couneii Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officdkj MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider approving the purchase of two(2) vehicles for use by the Police Department's Auto Theft Task Force. RECOMMENDATION The administration recommends approval of the purchase from Caldwell Couttry Chevrolet of Caldwell, Texas in the amount of$53,532. BACKGROUND Pricing for the vehicles was obtained through BuyBoard. BuyBoard is a co ve purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. BuyBoard complies with the State of Texas procurement staudes. The purchase price of$53,532 includes the BuyBoartl administrative fee of$400. The Auto Theft Task Force(ATTF)currently utilizes two vehicles for transportation relating to investigations; for surveillance and for other covert operations. The new vehicles will replace units 2530 and 2535. The age and mileage of these units has rendered them unfit for further service. They will be disposed of according to the City's surplus property disposal polices. Standard warranties of 36,000 miles or three(3)years are provided for each new vehicle. The warranty service is provided by the local authorized dealership. Delivery is expected within sixty(60)to ninety(90)days. BUDGETARY IlKPACT Funds are available in the amount of$41,386 from the Texas Automobile Burglary and Theft Prevention Authority Grant. The balance of$12,146 is available from the ATTF Program Income Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of two (2) vehicles for use by the Police Department Auto Theft Task Force from Caldwell Country Chevrolet of Caldwell, Texas, in the amount of $53,532.00 through the BuyBoard Cooperative Purchasing Program. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - E RICH WITH OPPORTUNITY 14u.nu BEA T • E • X • A • s City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart, Public Works Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider the approval of Change Order No. 9 for work at the Downtown Event Centre Complex. RECOMMENDATION Administration recommends approval of Change Order No. 9 to C. F. Jordan Construction in the amount of$44,863. BACKGROUND A contract in the amount of$8,126,000 was awarded to C. F.Jordan Construction of Houston for the construction of the new Downtown Event Centre Complex in April 2010. Change Order No. 9 in the amount of$44,863 includes costs associated with the installation of an electrical panel on the mechanical building located on the north side of the Event Centre. This additional power panel will provide electrical service for caterer's bringing their own portable catering kitchens and additional power for outdoor events. A copy of the change order is attached for your review. BUDGETARYIMPACT Funds for this change order are available in the Capital Program. *AIA Wcument G701 M - 2001 CIS 0AW MID ECT and a&$vss>: CHOMM NIMI M 009 OWNER p The Event Coda,Lawn and Lake DATE:Mardi 9,2012 ARCHITECT:❑ CONTRACTOR❑ TO CO RMCM(Now and address): lIRCINTE=S PRO$=M AU R CBUn701.B FIELD:❑ CF to daa Casetimfim CONTRACT DATE 5/118010 9801 Wr a',11 te320 CONTRACT FOR:General Coodroction OTHER Harstow TX 77042-3978 THE CONT00a,IS AS FOUAYM: (Include,whets appheable;any aw*spuied amotert attributable to previously executed Consowcoon Change Directives) Additional power outlets on west side of building per CIOD056(Attached)..................................................$44,863.00 The odlind contact Son was : 8,126,000.00 The ad doW by previously aced Change Orders : 139,523.00 The Caatrad Sun Pe" so amp Oder was i 8,265,523.00 The Coalraet Sum wig be wed by this Change Order m dke amount of s 44,863.00 The new Contract Sam iochiding dun Change Order will be i 8,3104386 00 Toe C autad Time wdl be increased by fifty eight(58)days. The dde of S ibstaetial CoMpletion as of the date of this Change Order thaefow is August 22,2011 MOTE:Thu Cie Older does ad iadudechauges in the Contract Sum,Contract Tme or Guaranteed MMximum,Price which have been im6atmed by Gt mbuction Change Dieedive until the cost sad time have been agreed upon by both the(honer and Ccntractor,at which cow a Change Order is executed to supersede the Caostraetian Change Directive. NOT VAM Wfill. SK3M BY IM ARCMTECT, CONTRACTOR AND OMER CA Csnuu CF Cam_ ran city" f� ARCHffM( , ) Finn name) P rraw he e) 1245 west le Street 9901 Wesdu ima,Suite 320 801 Main Street 200 M*ft 7X 770M _,_-- T1�042:3978 w TX 77701 ADDRESS ADDRESS ADDRESS BY(Signature) BY givaum) @Y(SfgMMM) (Typed name) 05ped Hanna) (T)ped name) DATE DATE DATE eta DoewwW OMm—2M.GappW 0 t9M"07,2449 and 200 1 4r'TM Arankaw MrrMMMe d Arorilaaa M#%Oft resarred.wAtiti 0:TMs Ate Document is protacrid by U.&6opyrlpht Law and International Treades.Unauthorized reproduction or distribution of Mb Alan Docunwid or aryr � portion of k,may result In sewue&A and cri nlnd pwWMss,and will tie prosecuted to the inmi nan extent posslift wrdsr Me law.Ttds dom and vm aroduoed by AM saaew a at 10.129,06m 03109rl012 andar Order#10.3190613527 1 v**h enkm an 01IMM3.red is sat for reeds. RESOLUTION NO. WHEREAS, on April 20, 2010, the City Council of the City of Beaumont, Texas, passed Resolution No. 10-100 awarding a contract in the amount of$8,126,000 to C. F. Jordan Construction, L.L.C., of Houston, Texas, for Alternates 1, 2, 3, 4, 5, 6 and 8 forthe construction of the Event Centre, Lake and Lawn in downtown Beaumont; and WHEREAS, on December 14, 2010, the City Council of the City of Beaumont, Texas passed Resolution No. 10-326 approving Change Order No. 1 in the amount of $60,101 that included costs associated with the unforseen casing and concrete work, additional excavation and rough grading beyond the original scope of work, substitution of aluminum composite exterior building panels, thereby increasing the contract amount to $8,186,101 and extending the completion time by twenty-eight (28) days; WHEREAS, on May 3, 2011, the City Council of the City of Beaumont, Texas passed Resolution No. 11-138 approving Change Order No. 2 in the amount of$56,647 for additional costs incurred by the contractor, C.F. Jordan Construction, L.L.C., for the excavation and removal of fill material, thereby increasing the contract amount to $8,242,748; WHEREAS,on June 20, 2011, Change Order No. 3 in the amount of$2,031.00 was executed to extend piping and locate isolation valves for accessibility, thereby increasing the contract amount to $8,244,779 ; and, WHEREAS, on August 17, 2011, Change Order No.4 in the amount of($7,850.00) was executed for the use of alternate materials, thereby decreasing the contract amount to $8,236,929; and, WHEREAS, on December 20, 2011, the City Council of the City of Beaumont, Texas passed Resolution No. 11-357 approving Change Order No. 5 in the amount of $13,009 for additional framing material and electrical outlets, thereby increasing the contract amount to $8,249,938; and, WHEREAS, on February 7, 2012, the City Council of the City of Beaumont, Texas, passed Resolution No. 12-023 approving Change Order No. 6 in the amount of$14,421 for the addition of a mechanical fastening system to granite pieces which are partially submerged at the water's edge,the addition of bird screens in all four overflow spouts,and the replacement of one overflow 8" nozzle with a 10" nozzle, thereby increasing the contract amount to $8,264,359; and WHEREAS, on February 24, 2012, Change Order No. 7 in the amount of$1,164 was executed for additional data drops and concrete curbs,thereby increasing the contract amount to $8,265,523; and, WHEREAS, Change Order No. 8, currently pending, requests additional time for landscaping and does not affect the total contract amount; and WHEREAS, proposed Change Order No. 9 in the amount of$44,863 is required for costs associated with the installation of an electrical panel on the mechanical building located on the north side of the event centre, thereby increasing the contract amount to $8,310,386; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and i THAT the City Manager be and he is hereby authorized to execute Change Order No. 9 for additional work described above, thereby increasing the contract amount by $44,863 for a total contract amount of$8,310,386. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - F RICH WITH OPPORTUNITY BEAUMOfflyk T • $ • X • A • $ City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Hani Tohme, P.E., Director of Water Utilities MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider approving a change order related to the East Lucas Lift Station and Force Main and Interceptor Rehabilitation Project. RECOMMENDATION The Administration recommends approval of decreasing the contract with Brystar Contracting, Inc., of Beaumont in the amount of$29,589.66. BACKGROUND The existing sanitary sewer lines built in the 1940's and 1950's have deteriorated and require major rehabilitation. The City has been steadily rehabilitating sanitary sewer lines which flow to the East Lucas Interceptor. The cost to rehabilitate the existing sanitary sewer lines in the area is in excess of$50 million. The proposed lift station will provide the customers in the vicinity and to customers in adjacent basins with uninterrupted service as we continue to rehabilitate the area. The lift station is strategically located near the intersection of Cleveland Street and Tyler Street to provide the best possible service. The proposed changes to the contract will include an increase to the allowance for electrical service, additional embedment material, and additional 36"HDPE gravity sanitary sewer line. The proposed changes will include the decrease in the amount of 12"PVC sanitary sewer line, deduction of two (2) air release valves, a deduction in the number of replaced short side services, and deductions in the amount for bypass pumping, special shoring, and cement stabilized sand. BUDGETARYIMPACT Funds for the project are provided by the Capital Program. APPROVAL OF CONTRACT CHANGE CHANGE ORDER No.Two (2)&Final DATE:March 5,2012 PROJECT: City of Beaumont,Texas East Lucas Lift Station&Interceptor Rehabilitation OWNER: City of Beaumont,Texas 801 Main Street Beaumont,Texas 77704 CONTRACTOR: Brystar Contracting,Inc. 8382 Chemical Road Beaumont,Texas 77705 TO THE OWNER: Approval of the following contract change is requested. Reason for Change: To provide final quantity adjustment and include new item to project ORIGINAL CONTRACT AMOUNT: $ 2,105,056.80 AMOUNT OF CHANGE ORDER No.1 $ 37,472.05 REVISED CONTRACT AMOUNT PER PREVIOUSLY APPROVED CHANGE ORDER No.1 $ 2,142,528.85 THIS CHANGE ORDER Description: Net Change Item 12- 12"PVC(slick bore),Decrease-65 LF @$70/LF $ (4,550.00) Item 13-3"Air Release Valves,Decrease-2 EA @$8,400/EA $ (16,800.00) Item 27-Electrical Service Allowance,increase- 1 LS @$569.21/LS $ 569.21 Item 34-Replace'short side services,Delete-8 EA @$650/EA $ (5,200.00) Item 39-Bypass Pumping,Delete-2,500 LF @$1.50/LF $ (3,750.00) Item 40-Special Shoring,Delete- 12308 LF @$0.10/LF $ (1,230.80) Item 43-Embedment,Add-45.21 TN @$331TN $ 1,491.93 Item 44-Cement Stabilized Sand,Delete-200 TN @$21/TN $ (4,200.00) Item A2-36"HDPE Gravity-Add 8 LF @$510/LF $ 4,080.00 TOTAL AMOUNT OF THIS CHANGE ORDER $ (29.589.66) TOTAL REVISED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER: $ 2,112,939.19 CONTRACT TIME Original Contract Time: 360 Calendar Days Additional Time Requested: 225 Calendar Days Revised Contract Time per this Change Order: 585 Calendar Days CONDITION OF CHANGE: "Contractor acknowledges and agrees that the adjustments in contract price and contract time stipulated in this Change Order represents full compensation for all increases and decreases in the cost of, and the time required to perform the entire work under the Contract arising directly or indirectly from this Change Order and all previous Change Orders. Acceptance of this waiver constitutes an agreement between Owner and Contractor that the Change Order represents an all inclusive,mutually agreed upon adjustment to the Contract, and that Contractor will waive all rights to file a claim on this Change Order after it is properly PvvrntPA" *RecoiAm b Approved by:bu &Polk,Inc. City of Beaumont Brystar Contracting,Inc. Enginee Owner Contractor Date: 2, Date: Date: Q"76-- RESOLUTION NO. WHEREAS, on April 20, 2010, the City Council of the City of Beaumont, Texas, passed Resolution No. 10-101 awarding a contract in the amount of $2,105,056.80 to Brystar Contracting, Inc. for the East Lucas Lift Station and Force Main and Interceptor Rehabilitation Project; and, WHEREAS, on August 9, 2011, the City Council of the City of Beaumont, Texas, passed Resolution No. 11-212 approving Change Order No. 1 in the amount of $37,472.05, thereby increasing the contract amount to $2,142,528.85; and, WHEREAS, proposed Change Order No. 2, in the amount of$29,589.66, includes an increase to the allowance for electrical service, additional embedment material and additional 36" HDPE gravity sanitary sewer line, a decrease in the amount of 12" PVC sanitary sewer line, deduction of two (2) air release valves, a deduction in the number of replaced short side services and deductions in the amount for bypass pumping, special shoring and cement stabilized sand, thereby increasing the contract amount to $2,172,118.51; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute Change Order No. 2 in the amount of $29,589.66, thereby increasing the contract amount to $2,172,118.51. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - G RICH WITH OPPORTUNITY B E A,U M uft'n'* T - E X • A S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to execute a Lease Agreement for the use of property at 8155 Phelan as an EMS Station. RECOMMENDATION Administration recommends authorizing the City Manager to execute a three (3)year Lease Agreement with David Derharoutian(Landlord)for the use of property located at 8155 Phelan. BACKGROUND EMS Med No. 4 has operated at 8155 Phelan Blvd., an 800 square foot facility, since April 2004. The current lease of$1,175.20 per month will expire on March 31, 2011. The Landlord has proposed a new three(3)year lease with the rental rate increasing 10%to $1,292.72 per month. There has not been a rate increase since April 2010. The new lease will begin on April 1, 2012 and end on March 31, 2015. All other provisions of the lease will remain the same. All utilities will be paid by the City, and minor maintenance of the facility, such as the air conditioning filter replacement and grounds maintenance, will be the responsibility of the City. Sherry Ulmer, Interim Public Health Director, approves of the terms of the proposed new lease. BUDGETARYIMPACT Lease payments of$1,292.72 per month total $15,512.64 annually over the term of the lease. Funds are budgeted in the EMS Division's operating budget. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a three (3)year Lease Agreement, substantially in the form attached hereto as Exhibit "A," in the amount of $1,292.72 per month with David Derharoutian (Landlord) for the use of property located at 8155 Phelan Boulevard, Beaumont, Texas, for EMS Med No. 4. The new lease would begin April 1, 2012, and end on March 31, 2015. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 201h day of March, 2012. - Mayor Becky Ames - 40P TEXAS ASSOCIATION OF REALTORS(H) COMMERCIAL LEASE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORM IS NOT AUTHORIZED. OTesas Assocle0en or REALTt1fM Me.Me Table of Contents Nn, Paragraph Description Pg. &L Paragnptpb Description P9- 1. Parties 2 22. Holdover 10 2. Leased Premises 2 23. Landlord's Lien&Security Interest 11 3. Term 2 24. Assignment and Subletting 11 A. Term 25. Relocation 11 B. Delay of Occupancy 26. Subordination 11 4. Rent and Expenses 3 27. Estoppel Certificates &Financial Info. 11 A. Base Monthly Rent 28. Casualty Loss 12 B. First Full Month's Rent 29. Condemnation 12 C. Prorated Rent 30. Attorney's Fees 12 D. Additional Rent 31. Representations 12 E. Place of Payment 32. Brokers 13 F. Method of Payment 33. Addenda 13 G. Late Charges 34. Notices 13 H. Returned Checks 35. Special Provisions 14 5. Security Deposit 4 36. Agreement of the Parties 14_ 6. Taxes 4 7. Utilities 4 ADDENDA Nat EXHWITS(chet*an that pp*) 8. Insurance 5 ❑ Exhibit 9. Use and Hours 6 10. Legal Compliance 6 ❑ Exhibit 11. Signs 7 ❑ Commercial Lease Addendum for Broker's Fee 12. Access By Landlord 7 (TAR-2102) 13. Move-In Condition 7 ❑ Commercial Lease Addendum for Expense 14. Move-Out Condition 7. Reimbursement(TAR-2103) 15. Maintenance and Repairs 8 ❑ Commercial Lease Addendum for Extension A. Cleaning Option (TAR-2104) B. Conditions Caused by a Party ❑ Commercial Lease Addendum for Percentage C. Repair&Maintenance Responsibility Rent(TAR-2106) D. Repair Persons ❑ Commercial Lease Addendum for Parking E. HVAC Service Contract (TAR-2107) F. Common Areas ❑ Commercial Landlord's Rules and Regulations G. Notice of Repairs (TAR-2108) H. Failure to Repair ❑ Commercial Lease Guaranty(TAR-2109) 16. Alterations 9 ❑ Commercial Lease Addendum for Right of First 17. Liens 9 Refusal(TAR-2105) 18. Liability 10 ❑ Commercial Lease Addendum for Optional 19. Indemnity 10 Space(TAR-2110) 20. Default 10 ❑ Commercial Lease Addendum for Construction 21. Abandonment, Interruption of Utilities, (TAR-2111) or(TAR-2112) Removal of Property& Lockout 10 ❑ Commercial Lease Addendum for Contingencies (TAR-2119) ❑ ❑ Information About Brokerage Services (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 1 of 15 American Real Estate 3550 Dowlen Rd,Suite A Beaumont,TX 77706 Phone:409.966.9129 Fax: Kelli Maness D.DERHAROUT] Produced with ZipFormW by zipLogix 18070 Fifteen Mile Road,Fraser,Michigan 48028 bmmr zlpUQk.= EXHIBIT "A" 41�� TEXAS ASSOCIATION OF REALTORS® COMMERCIAL LEASE USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTOA80116 NOT AUTHORIZED. *T"n Association of REALTORIM Mo.MO 1. PARTIES:The parties to this lease are: Landlord: DAVID DERHAROUTIAN and Tenant: CITY OF BEAuNONT '+-*• BRMMA DJW 2. LEASED PREMISES: A. Landlord leases to Tenant the following described real property, known as the"leased premises,".along with all its improvements (Check only one box): O (1) Mu_It &Janant Property: Suite or Unit Number containing approximately squire feet of rentable area in (project name) at (address) in (city), (county), Texas, which is legally described on attached Exhibit or as folloi rl : ® (2) Single-Tenant Property: The real property at: '8155 PHZLRN (address)in Ashu m (city), k1lum RSON (county), Texas, which is legally described on attached Exhibit C. WILLTAMS or as follows:ABSTRACT 59 TR 72-A SP-6 BLOCK 18 B. If Paragraph 2A(1)applies: (1) "Property" means the building or complex in which the leased premises are located, inclusive of any common areas, drives, parking areas, and walks; and (2) the parties agree that the rentable area of the leased premises may not equal the actual or useable area within the leased premises and may include an allocation of common areas in the Property. The rentable area ❑ will ❑ will not be adjusted if re-measured. 3. TERM: A. Term: The term of this lease is 36 months and -o- days, commencing on: APRIL 1. 2012 (Commencement Date) and ending on MARCH 31. 2015 (Expiration Date). (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 2 of 15 Produced with ZOForm®by zipLogbc 18070 FMosn Mile Road,Fraser,Michigan 48026 moLzologiLaimn D.DEMAROUn 8155 PHELAN .Commercial Lease concerning: BEAUMONT. Tex 77706 B. Delay of Occupancy: If Tenant is unable to occupy the leased premises on the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant for such delay and this lease will refrain enforceable. In the event of such a delay, the Commencement Date will automatically be extended to the date Tenant is able to occupy the Property and the Expiration Date will also be extended by a like number of days, so that the length of this lease remains unchanged. If Tenant is unable to occupy the leased premises after the 90th day after the Commencement Date because of construction on the leased premises to be completed by Landlord that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may terminate this lease by giving written notice to Landlord before the leased premises become available to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant. This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs. C. Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for the leased premises if required by a governmental body. 4. RENT AND EXPENSES: A. Rase Monthly Rent; On or before the first day of each month during this lease, Tenant will pay Landlord base monthly rent as described on attached Exhibit N/A or as follows: Dates Rate per rentable sc uare foot tional Base Monthly From To Monthly Rate Annual Rate Rent B. Additional Rent: In addition to the base monthly rent, Tenant will pay Landlord all other amounts, as provided by the attached(Check all that apply.): ❑ (1) Commercial Lease Addendum for Expense Reimbursement(TAR-2103) ❑ (2) Commercial Lease Addendum for Percentage Rent(TAR-2106) ❑ (3) Commercial Lease Addendum for Parking(TAR-2107) ❑ (4) All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this lease. C. First Full Month's Rent:The first full monthly rent is due on or before APRIL I. 2012 D. Prorated Rent: If the Commencement Date is on a day other than the first day of a month, Tenant will pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following fraction: the number of days from the Commencement Date to the first day of the following month divided by the number of days in the month in which this lease commences.The prorated rent is due on or before the Commencement Date. E. place of Pa;ment: Tenant will remit all amounts due Landlord under this lease to the following person at the place stated or to such other person or place as Landlord may later designate in writing: Name: DAVID DERFAROUTIAN a/o Stacy 3vmter Address: Beatgrgflnt Area Federal Craft Union (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 3 of 15 Produced with ZifformO by zipLogix 18070 Fften We Road,Fraser,Michigan 48028 www z0Lng1x= D.DERHAROLM 8155 PHELAN Commercial Lease concerning: BEAtMM. Tex 77706 F. Payment: Tenant must pay all rent timely without demand, deduction, or offset, except as permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any I check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after providing written notice to Tenant may require Tenant to pay subsequent amounts that become due under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this W lease for Tenant's failure to make timely payments with good funds. N C w G. Late C 3t:,�: c Within 6 d isle it is due,Tenant vWN pay ltandwd a late eherge equal le 6% of the amewFil 2:c 5 __10 'a PiN11116.414 —941—F—Allee'se remedieg tinder Paragraph PA t.se of the Texas Goverment Code. Shall be controlled by §552.001 H. Returned s-Tenant will pay$25.00 for each check Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment. 5. SECURITY DEPOSIT: A. Upon execution of this lease,Tenant will pay$ n/a to Landlord as a security deposit. B. Landlord may apply the security deposit to any amounts owed by Tenant under this lease. If Landlord applies any part of the security deposit during any time this lease is in effect to amounts owed by Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to the amount stated. C. Within 60 days after Tenant surrenders the leased premises and provides Landlord written notice of Tenant's forwarding address, Landlord will refund the security deposit less any amounts applied toward amounts owed by Tenant or other charges authorized by this lease. 6. TAXES: Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes assessed against the leased premises. 7. UTILITIES: A. The party designated below will pay for the following utility charges to the leased premises and any connection charges for the utilities. (Check all that apply.) NIA Landlord Tenant (1) Water ❑ ❑ (2) Sewer ❑ ❑ �] (3) Electric ❑ ❑ (4) Gas ❑ ❑ (5) Telephone ❑ ❑ (6) Internet ❑ ❑ (7) Cable ❑ ❑ (8) Trash ❑ ❑ (9) ❑ ❑ ❑ (10)All other utilities ❑ ❑ Q B. The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility service provider. The responsible party may select the utility service provider except that if Tenant selects the provider, any access or alterations to the Property or leased premises necessary for the utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold. If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay and Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse Landlord such amount. (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 4 of 15 Produced with ZipForm®by zipLogix 18070 Fifteen Mile Road.Fraser,Michigan 48028 3ioieLxkd Qgir.mm D.DERHAROLM i 8155 PHELAN Commercial Lease concerning: BEAMrnM Tex 77706 C. Notice: Tenant should determine if all necessary utilities are available to the leased premises and are adequate for Tenant's intended use. D. After-Hours HVAC Charges: "HVAC services" means heating, ventilating, and air conditioning of the leased premises. (Check one box only.) ❑ (1) Landlord is obligated to provide the HVAC services to the leased premises only during the Property's operating hours specified under Paragraph 9C. ❑ (2) Landlord will provide the HVAC services to the leased premises during the operating hours specified under Paragraph 9C for no additional charge and will, at Tenant's request, provide HVAC services to the leased premises during other hours for an additional charge of$ per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of Landlord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be rounded up to the next half hour. Tenant will comply with Landlord's procedures to make a request to provide the additional HVAC services under this paragraph. O (3) Tenant will pay for the HVAC services under this lease. cny WOW Landlord Inloats: 8. INSURANCE: City is self insured. Ste Attachment "A" . m an insurer authorized to operate in Texas: (1 blic liability insurance naming Landlord as an additional insured with policy limits on an occ-,V nce bas a minimum amount of (check only(a)or(b)below) ❑ (a) $1, 000; or ❑ (b) $2,000, If neither box is c ed the minimum amount will be$1,000,000. (2) personal property da insurance for the business operations conducted in the leased premises and contents in leased premises in an amount s to replace such contents after a casualty loss; and ❑ (3) business interruption insurance s nt to pay 12 months rent payments; B. Before the Commencement Date, Tenant m ro andlord with a copy of insurance certificates evidencing the required coverage. If the insuran verage is renewed or changes in any manner or degree at any time this lease is in effect, T nt m not later than 10 days after the renewal or change, provide Landlord a copy of an in nce certificate ' ncing the renewal or change. C. If Tenant fails to maintain the re insurance in full force and e t at all times this lease is in effect, Landlord may: (1) purchase insurance will provide Landlord the same coverage as required insurance and Tenant must im ately reimburse Landlord for such expense;or (2) exercise Lan d's remedies under Paragraph 20. D. Unless t arties agree otherwise, Landlord will maintain in full force and effect insurance : (1) fire and nded coverage in an amount to cover the reasonable replacement cost of the improve is of roperty; and (2) any public liability insurance in an amount that Landlord determines reasona and appropriate. E. If there is an increase in Landlord's insurance premiums for the leased premises or Property or its contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase immediately after Landlord notifies Tenant of the increase. Any charge to Tenant under this Paragraph 8E will be equal to the actual amount of the increase in Landlord's insurance premium. (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 5 of 15 Produced with ZipFormt9 by zlplogbc 18070 Fifteen Mile Road,Fraser,Michigan 48026 mumaJitLagbLamm D.DERHAROU 1 8155 PHELAN Commercial Lease concerning: BEAUMONT Tex 77706 9. USE AND HOURS: A. Tenant may use the leased premises for the following purpose and no other. xmftrawmy Medical Service for the CITY OF BRAXIMNT. including storage of iMrgencv units and living guart®rs for emszlavees B. Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased premises during business hours that are typical of the industry in which Tenant represents it operates. C. The Property maintains operating hours of(specify hours, days of week, and if inclusive or exclusive of weekends and holidays): 24 HOURS A DAY-SEVEN (7) DAYS A WEER 10.LEGAL COMPLIANCE: A. Tenant may not use or permit any part of the leased premises or the Property to be used for: (1) any activity which is a nuisance or is offensive, noisy,or dangerous; (2) any activity that interferes with any other tenants normal business operations or Landlord's management of the Property; (3) any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant, governmental order, owners' association rules, tenants' association rules, Landlord's rules or regulations, or this lease; (4) any hazardous activity that would require any insurance premium on the Property or leased premises to increase or that would void any such insurance; (5) any activity that violates any applicable federal, state, or local law, including but not limited to those laws related to air quality, water quality, hazardous materials, wastewater, waste disposal, air emissions, or other environmental matters; (6) the permanent or temporary storage of any hazardous material;or (7) B. "Hazardous material" means any pollutant, toxic substance, hazardous waste, hazardous material, hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law, regulation, ordinance, or rule existing as of the date of this lease or later enacted. C. Landlord does not represent or warrant that the leased premises or Property conform to applicable restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio ' requirements, and other matters that may relate to Tenant's intended use.Tenant must sa elf that the leased premises may be used as Tenant intends by Ji crost*gWi_ng all Cnaders related to the use,stf,jhs.lease1 nremises_Qr Prnpflrty, t -hetjt-j8jjoj lelying on-my warranty-a representationmade.2y Landlord. Landlord's aaent.ja any poker concernina-thasw-&Teased premises or Property. 11.SIGNS: A. Tenant may not post or paint any signs or place any decoration outside the leased premises or on the Property without Landlord's written consent. Landlord may remove any unauthorized sign or decorations, and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign or decorations. B. Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental order relating to signs on the leased premises or Property. Landlord may temporarily remove any authorized sign to complete repairs or alterations to the leased premises or the Property. (TAR-2101)1-26-10 Initialed for Identification by Landlord: ,and Tenant Page 6 of 15 Produced with ZlpFomA by zipLogix 18070 F teen Mile Road,Fraser.Michigan 48426 www z0Laghc= D.DERHAROLM 8155 PHELAN Commercial Lease concerning: AF.AUMINT Tex 77706 C. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any or all signs that were placed on the Property or leased premises by or at the request of Tenant. Any signs that Landlord does not require Tenant to remove and that are fixtures,become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 12.ACCESS BY LANDLORD: A. During Tenant's normal business hours Landlord may enter the leased premises for any reasonable purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the leased premises to prospective tenants or purchasers. Landlord may access the leased premises after Tenant's normal business hours if: (1) entry is made with Tenants permission; or (2)entry is necessary to complete emergency repairs. Landlord will not unreasonably interfere with Tenants business operations when accessing the leased premises. B. During the last_30_days of this lease, Landlord may place a"For Lease" or similarly worded sign in the leased premises. 13.MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is) condition unless expressly noted otherwise in this lease or in an addendum. LandlaW and nay agent have made _Qt_implied warranties-mla-tba conditionjor pa use-ofAhe laased premises Property. 14.MOVE-OUT CONDITION AND FORFEITURE OF TENANTS PERSONAL PROPERTY: A. At the time this lease ends, Tenant will surrender the leased premises in the same condition as when received, except for normal wear and tear. Tenant will leave the leased premises in a dean condition free of all trash, debris, personal property, hazardous materials, and environmental contaminants. B. If Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the leased premises, Landlord may: (1) require Tenant, at Tenants expense, to remove the personal property by providing written notice to Tenant; or (2) retain such personal property as forfeited property to Landlord. C. "Surrender" means vacating the leased premises and returning all keys and access devices to Landlord. "Normal wear and tear'" means deterioration that occurs without negligence, carelessness, accident, or abuse. D. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon move-out and at Tenants expense, to remove, without damage to the Property or leased premises, any or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any fixtures that Landlord does not require Tenant to remove become the property of the Landlord and must be surrendered to Landlord at the time this lease ends. 15. MAINTENANCE AND REPAIRS: A. : Tenant must keep the leased premises clean and sanitary and promptly dispose of all garbage in appropriate receptacles. ❑ Landlord W Tenant will provide, at its expense, janitorial services to the leased premises that are customary and ordinary for the property type. Tenant will maintain any grease trap on the Property which Tenant uses, including but not limited to periodic emptying and cleaning, as well as making any modification to the grease trap that may be necessary to comply with any applicable law. (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 7 of 15 Produced with ZipFormO by zoLogix 18070 Fifteen Mile Road,Fraser,Michigan 48028 bmw zWLagL=m D.DERHAROUTI 8155 PHELAN Commercial Lease concerning: BEAUMONT, Tex 77706 B. Repaks of Conditions Caused by ate: Each party must promptly repair a condition in need of repair that is caused, either intentionally or negligently, by that party or that party's guests, patrons, invitees, contractors or permitted subtenants. C. Repair and Maintenance Responsibilb: Except as otherwise provided by this Paragraph 15, the party designated below, at its expense, is responsible to maintain and repair the following specified items in the leased premises (if any). The specified items must be maintained in clean and good operable condition. If a governmental regulation or order requires a modification to any of the specified items, the party designated to maintain the item must complete and pay the expense of the modification. The specified items include and relate only to real property in the leased premises.Tenant is responsible for the repair and maintenance of its personal property. (Check all that apply.) NLA Landlord Tenant (1) Foundation, exterior walls, roof, and other structural components....❑ 0 ❑ (2) Glass and windows ...........................................................................❑ ❑ (3) Fire protection equipment and fire sprinkler systems........................❑ ❑ (4) Exterior & overhead doors, including closure devices, molding, locks, and hardware .........................................................................❑ ❑ (5) Grounds maintenance, including landscaping and irrigation systems ............................................................................................❑ ❑ (6) Interior doors, including closure devices, frames, molding, locks, andhardware ...................................................................................❑ ❑ W (7) Parking areas and walks ...................................................................❑ ❑ ❑ (8) Plumbing systems, drainage systems and sump pumps ..................❑ ❑ Q (9) Electrical systems, mechanical systems ..........................................❑ ❑ (10) Ballast and lamp replacement ..........................................................❑ ❑ d (11) Heating, Ventilation and Air Conditioning(HVAC)systems..............Cl ❑ d (12) Signs and fighting: (a) Pylon ...........................................................................................❑ ❑ (b) Facia ...........................................................................................❑ ❑ (c) Monument ...................................................................................❑ ❑ d (d) Door/Suite ...................................................................................❑ ❑ 0 (e) Other. .............❑ ❑ (13) Extermination and pest control, excluding wood-destroying insects ❑ ❑ d (14) Fences and Gates ............................................................................❑ ❑ ❑ (15) Storage yards and storage buildings.................................................Cl ❑ Q (16) Wood-destroying insect treatment and repairs .................................❑ Q ❑ (17) Cranes and related systems .................... ❑ ❑ ❑ (18) ❑ ❑ (19) ❑ ❑ (20) All other items and systems. ............................................................. ❑ ❑ D. Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons. E. HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(11), Tenant ®is ❑ is not required to maintain, at its expense, a regularly scheduled maintenance and service contract for the HVAC system. The maintenance and service contract must be purchased from a HVAC maintenance company that regularly provides such contracts to similar properties. If Tenant fails to maintain a required HVAC maintenance and service contract in effect at all times during this lease, Landlord may do so and Tenant will reimburse Landlord for the expense of such maintenance and service contract or Landlord may exercise Landlord's remedies under Paragraph 20. (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 8 of 15 Produced with ZipFormO by zipLoglx 18070 Fifteen Mlle Road,Fraser,Michigan 48026 Amai zipLaoixmizi D.DERHAROLM 8155 PHELAN Commercial Lease concerning: BEAUMN'T. Tex 77706 F. Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord determines to be in the best interest of the Property. Landlord will maintain any elevator and signs in the common area. Landlord may change the size, dimension, and location of any common areas, provided that such change does not materially impair Tenant's use and access to the leased premises. Tenant has the non-exclusive license to use the common areas in compliance with Landlord's rules and regulations. Tenant may not solicit any business in the common areas or interfere with any other person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2)applies. G. Notice of Repairs: Tenant must promptly notify Landlord of any item that is in need of repair and that is Landlord's responsibility to repair. All requests for repairs to Landlord must be in writing. H. Failure to Re k: Landlord must make a repair for which Landlord is responsible within a reasonable period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse Landlord for the cost to repair or maintain;or(2)exercise Landlord's remedies under Paragraph 20. 16. ALTERATIONS: A. Tenant may not alter (including making any penetrations to the roof, exterior walls or foundation), improve, or add to the Property or the leased premises without Landlord's written consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable non-structural alterations, modifications, or improvements to the leased premises. B. Tenant may not alter any locks or any security devices on the Property or the leased premises without Landlord's consent. if Landlord authorizes the changing, addition, or rekeying of any locks or other security devices,Tenant must immediately deliver the new keys and access devices to Landlord.. C. If a governmental order requires alteration or modification to the leased premises,the party obligated to maintain and repair the item to be modified or altered as designated in Paragraph 15 will, at its expense, modify or alter the item in compliance with the order and in compliance with Paragraphs 16A and 17. D. Any alterations, improvements, fixtures or additions to the Property or leased premises installed by either party during the term of this lease will become Landlord's property and must be surrendered to Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove under Paragraph 11 or 14 or if the parties agree otherwise in writing. 17. LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be encumbered in any way. If Tenant causes a lien to be filed against the Property or leased premises, Tenant will within 20 days after receipt of Landlord's demand: (1)pay the lien and have the lien released of record; or (2)take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant obtains pursuant to this paragraph. 18. LIABILITY: To the extent permitted by law-Landlord is NOT responsible to Tenant or Tenants e_mpiooyeec patrons- fl,_s , or invitm forte damages,iiniuries or losses to person or pcQpsdy caused bv: A. an act. omission or neglect of* Tenant: Tenant's agent; Tenants guest; Tenant's employee; Tenant's patrons,Tenanrs invitees* or any other tenant on the Property; B. fiM flood- wata leaks..iW, snow. hjW. winds Est losion- smoke,lisit. strike,n -of-utilities tole& burp ary. row assault- vandalism. other persons, environmental contaminants. _M othe Occurrences or Casualty losses. (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 9 of 15 Produced with ZipForm®by zipLogix 18070 Fifteen Mite Road,Fraser,Michigan 48026 g{Yj= D.DERHAROUTI 8155 PHELAN Commercial Lease concerning: SEWWRT, Tex 77706 19. INDEMNITY: h xy 1 be, res n i le for an ro ert damage personal-injury. suits- actions, damages,.S�t�frepairs SU s�ds� �heJesicnises� Property--ar ay other loss caused, negligently-gr otherwise,-by Ahat-party-aI-tbat12ars empyees. patrons- guests or invitees. A caused City Initials: 20. DEFAULT: Landlord Initials: A. If Landlord fails to comply with this lease within 30 days after Tenant notifies Landlord of Landlord's failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law. If, however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not be in default if the cure is commenced within the 30-day period and is diligently pursued. B. If Landlord does not actually receive at the place designated for payment any rent due under this lease within 5 days after it is due, Tenant will be in default. If Tenant fails to comply with this lease for any other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in default. ?eefe"•:remedies as provided by Texas law. C. If Tenant is in default, Landlord may, a lerate all rents which are payable during the remainder of this lease or any renewal Landlo attempt to mitigate any damage or loss caused by Tenants breach by using rcially 0 E reasonable If Tenant is in default, Tenant will be liable for: E.2 (1) any lost rent; Z C (2) Landlord's cost of re the leased premises, including brokera , advertising fees, and -' other fees necessary to re le eased premises; (3) repairs to the leased premises for yond normal wear tear, (4) all Landlord's costs associated with evi of Ten , such as attorney's fees, court costs, and prejudgment interest; (5) all Landlord's costs associated with co on of re uch as collection fees, late charges, and returned check charges; (6) cost of removing any of Ten equipment or fixtures left on the premises or Property; (7) cost to remove any , debris, personal property, hazardous 'als, or environmental contaminants le Tenant or Tenant's employees, patrons, guests, or I ' s in the leased premises operty; (8) cost eplace any unretumed keys or access devices to the leased premises, parking petty; 21. ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT: Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to: (a) abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and (d) "lock-out"of Tenant. 22. HOLDOVER: If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become a tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord. No holding over by Tenant, with or without the consent of Landlord, will extend this lease. Tenant will indemnify Landlord and any prospective tenants for any and all damages caused by the holdover. Rent for any holdover period will be 468 f the base monthly rent plus any additional rent calculated on a daily basis and will be immediatehTue and payable daily without notice or demand. I City Initials: 100% Landlord Initials: (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 10 of 15 Produced with ZipFonn®by zipLogix 18070 Fifteen Mile Road,Fraser,Michigan 48026 www ziPl Qghf- D.DERHAROU n 8155 PHELAN Commercial Lease concerning: BEAM ONT, Tex 77706 h 23. and security interest a ahnst_-fl --f. 1@nanVsjaQemdnVt;2fl%929 ps that is *n the leased premises or on a security agreement for the purposes of the ° Uniform Cam may file a financing statemen 's security interest 24. ASSIGNMENT AND SUBLETTING: Landlord may assign this lease to any subsequent owner of the Property. Tenant may not assign this lease or sublet any part of the leased premises without Landlord's written consent.An assignment of this lease or subletting of the leased premises without Landlord's written consent is voidable by Landlord. If Tenant assigns this lease or sublets any part of the leased premises, Tenant will remain liable for all of Tenants obligations under this lease regardless if the assignment or sublease is made with or without the consent of Landlord. 25. RELOCATION: (] A. By providing Tenant with not less than 90 days advanced written notice, Landlord may require Tenant to relocate to another location in the Property, provided that the other location is equal in size or larger than the leased premises then occupied by Tenant and contains similar leasehold improvements. Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location. "Moving expenses" means reasonable expenses payable to professional movers, utility companies for connection and disconnection fees,wiring companies for connecting and disconnecting Tenants office equipment required by the relocation, and printing companies for reprinting Tenants stationary and business cards. A relocation of Tenant will not change or affect any other provision of this lease that is then in effect, including rent and reimbursement amounts, except that the description of the suite or unit number will automatically be amended. ❑ B. Landlord may not require Tenant to relocate to another location in the Property without Tenants prior consent. 26. SUBORDINATION: A. This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to: (1) any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the Property that-Landlord authorizes; (2) all advances made under any such lien,encumbrance, or ground lease; (3) the interest payable on any such lien or encumbrance; (4) any and all renewals and extensions of any such lien,encumbrance, or ground lease; (5) any restrictive covenant affecting the leased premises or the Property; and (6) the rights of any owners'association affecting the leased premises or Property. B. Tenant must, on demand, execute a subordination, attornment, and non-disturbance agreement that Landlord may request that Tenant execute, provided that such agreement is made on the condition that this lease and Tenants rights under this lease are recognized by the lien-holder. 27. A. Within 10 days a e a written request from Landlord, Ten u e and deliver to C o Landlord an estoppel certificate the I terms ns of this lease. C v3 B. Within 30 days after re en request from Landlord, Tenan to Landlord Tenant's cur In ormation (balance sheet and income statement). Landlord may re ncial (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant Page 11 of 15 Produced with ZoForm®by zoLoglx 18070 Fifteen Mile Road,Fraser,Michigan 48026 www zkJa &= D.DERHAROUrl 8155 PHELAN Commercial Lease concerning: BEMMiNT Tex 77706 28. CASUALTY LOSS: A. Tenant must immediately notify Landlord of any casualty loss in the leased premises. Within 20 days after receipt of Tenant's notice of a casualty loss, Landlord will notify Tenant if the leased premises are less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially restore the leased premises within 120 days after Tenant notes Landlord of the casualty loss. B. If the leased premises are less than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notes Landlord of the casualty, Landlord will restore the leased premises to substantially the same condition as before the casualty. If Landlord falls to substantially restore within the time required, Tenant may terminate this lease. C. If the leased premises are more than 50% unusable and Landlord can substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may: (1) terminate this lease; or (2) restore the leased premises to substantially the same condition as before the casualty. If Landlord chooses to restore and does not substantially restore the leased premises within the time required, Tenant may terminate this lease. D. If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss, Landlord may: (1) choose not to restore and terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give Tenant the option to terminate this lease by notifying Landlord within 10 days. E. If this lease does not terminate because of a casualty loss, rent will be reduced from the date Tenant notes Landlord of the casualty loss to the date the leased premises are substantially restored by an amount proportionate to the extent the teased premises are unusable. 29. CONDEMNATION: If after a condemnation or purchase in lieu of condemnation the leased premises are totally unusable for the purposes stated in this lease, this lease will terminate. If after a condemnation or purchase in lieu of condemnation the leased premises or Property are partially unusable for the purposes of this tease, this lease will continue and rent will be reduced in an amount proportionate to the extent the leased premises are unusable. Any condemnation award or proceeds in lieu of condemnation are the property of Landlord and Tenant has no claim to such proceeds or award. Tenant may seek compensation from the condemning authority for its moving expenses and damages to Tenant's personal property. N 30. ATTORNEYS FEES: Any pefeen who ie e preysiling paKy in aRy leglel preeesding bfwVM mndeF eF B w c ' a P ' nenprevailimg pedy. A party's entitlement U 31. REPRESENTATIONS: to attorney fees shall be controlled by Texas law. A. Tenant's statements in this lease and any application for rental are material representations relied upon by Landlord. Each party signing this lease represents that he or she is of legal age to enter into a binding contract and is authorized to sign the lease. If Tenant makes any misrepresentation in this lease or in any application for rental, Tenant is in default. B. Landlord is not aware of any material defect on the Property that would affect the health and safety of an ordinary person or any environmental hazard on or affecting the Property that would affect the health or safety of an ordinary person, except: (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 12 of 15 Produced with ZlpForm®by zipLogix 18070 Fifteen Mlle Road,Fraser,Michigan 48026 mmw2JpLagkxAm D.DERHAROLM 8155 PHELAN Commercial Lease concerning: BEAUMONT, Tex 77706 C. Each party and each signatory to this lease represents that: (1) it is not a person named as a Specially Designated National and Blocked Person as defined in Presidential Executive Order 13224; (2) it is not acting, directly or indirectly, for or on behalf of a Specially Designated and Blocked Person; and (3) is not arranging or facilitating this lease or any transaction related to this lease for a Specially Designated and Blocked Person. Any party or any signatory to this lease who is a Specially Designated and Blocked person will indemnify and hold harmless any other person who relies on this representation and who suffers any claim, damage, loss, liability or expense as a result of this representation. 32. BROKERS: A. The brokers to this lease are: G_ W_ PERTIES Principal Broker License No. Cooperating Broker License No. Agent Agent 1102 Longfellow Drive quite 2 Address Address Beaumont. Texas 77706 409 673-6333 (409)892-5 454 one ax Phone Fax Maness(ahotmail.com E-Mail License No. E-Mail icense No. Principal Broker: (Check only one box) Cooperating Broker represents Tenant. ® represents Landlord only. ❑'representsTenant only. ❑ is an intermediary between Landlord and Tenant. B. Eem: 91 (1) Principal Broker's fee will be paid according to: (Check only one box). X (a) a separate written commission agreement between Principal Broker and: 0 Landlord ❑ Tenant. ❑ (b) the attached Addendum for Broker's Fee. ❑ (2) Cooperating Broker's fee will be paid according to: (Check only one box). ❑ (a) a separate written commission agreement between Cooperating Broker and: ❑ Principal Broker❑ Landlord ❑ Tenant. ❑ (b) the attached Addendum for Broker's Fee. 33. ADDENDA: Incorporated into this lease are the addenda, exhibits and other information marked in the Addenda and Exhibit section of the Table of Contents. If Landlord's Rules and Regulations are made part of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion, amend from time to time. 34. NOTICES: All notices under this lease must be in writing and are effective when hand-delivered, sent by mail, or sent by facsimile transmission to: Landlord at: David Derharoutian Address: 8114 High Terrace, Sugar Land Texas 77479 Phone: Fax: and a copy to:David Derharoutian Address: e-mail: david.derharoutianlit-online.de Phone: (281)343-5866 Fax: ❑ Landlord also consents to receive notices by e-mail at: (TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 13 of 15 Produced with ZipForrnO by zipLogix 18070 Fifteen Mile Road,Fraser,Michigan 48026 www TIP,�—+fly=^ D.DERHAROUT! 8155 PHEI" Commercial Lease concerning: B1i' UMONT Tex 77706 Tenant at the leased premises, and a copy to: City of Beaumont c/o Brenda Dean Address: P O Box 3827 Beaumont Texas 77704 Phone: (409)781-4731 Fax: (409) 880-3747 ® Tenant also consents to receive notices by e-mail at: 35. SPECIAL PROVISIONS: Monthly Rents to be mailed to: Stacy Tywater Beaumont Area Educators Federal Credit Union P.O. Box 751 Beaumont, Texas 77704 All IMPROVEMENTS to 8155 Phelan will stay with property. If existing carpet removed it is to be replaced. Tenant responsible for carport and electricity to carport. Either party may terminate lease by providing thirty (30) day written notice. 36. AGREEMENT OF PARTIES: A. Entire Agireemen t:This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. B. Binding Effect: This lease is binding upon and inures to the benefit of the parties and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several:All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its renewal, or its termination is binding on all Tenants. D. Controlling Law: The laws of the State of Texas govem the interpretation, performance, and enforcement of this lease. Venue and jurisdiction for all disputes shall be exclusively in Jefferson County and none othibr E. Severable Clauses: If any clause in this lease is found invalid or unenforceable by a court of law, the remainder of this lease will not be affected and all other provisions of this lease will remain valid and enforceable. F. Waiver: Landlord's delay, waiver, or non-enforcement of acceleration, contractual or statutory lien, rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by Tenant or any other term in this lease. G. Quiet Enjoyment: Provided that Tenant is not in default of this lease, Landlord covenants that Tenant will enjoy possession and use of the leased premises free from material interference. (TAR-2101) 1-26-1D Initialed for Identification by Landlord: and Tenant: Page 14 of 15 Produced with ZlpForm®by zipLogix 15070 Fifteen Mile Road,Fraser,Michigan 48026 www 4i ndrc mm D.DERHAROUTI 8155 PHELAN Commercial Lease concerning: BEAUMONT_ Tex 77706 H. Force�Maure: If Landlord's performance of a term in this lease is delayed by strike, lock-out, shortage of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for Landlord's performance will be abated until after the delay. I. Time: Time is of the essence. The parties require strict compliance with the times for performance. Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies, environmental assessments, tax advice, or compliance inspections. The parties should seek experts to render such services. READ THIS LEASE CAREFULLY. If you do not understand the effect of this Lease, consult your attorney BEFORE signing. CITY OF BEAMONT Landlord: DAVID DERHAROUTIAN Tenant: P.O.Bax 2827,Beaumont, Tx 77704 att: 8RE14DA DEAN By: By: By(signature): By(signature): Printed Name: Printed Name: gyt.F Nnvrc Title: Title: (-TTY MANAC'F.R By: By: By(signature): By(signature): Printed Name: Printed Name: Title: Title: (TAR-2101)1-26-10 Page 15 of 15 Produced with ZlpFom-AD by zoLogix 18070 Fifteen Mlle Road.Fraser,Mkftan 48026 z%w z0jAgk=m DDERHAROUTI .� L City of Beaumont February 20, 2012 TO WHOM IT MAY CONCERN: The City of Beaumont is currently self-insured for all lines of coverage normally made available under the Texas Business Auto Policy. Comprehensive and collision accidents are paid as normal operating expenses. The City has a self-insured trust fund from which it pays all liability claims. The City currently purchases insurance for real and personal property. All real and personal property are protected by all risk type coverage including flood. Real and personal property are subject to a $50,000 deductible. If we can be of further assistance to you or provide you with additional information, please do not hesitate to contact us. Very truly yours, Matthew Martin, AIC, ARM Liability Administrator MM:rw Legal Department • (409)880-3715 • Fax(409)880-3121 P.O.Box 3827 • Beaumont,Texas 77704-3827 H RICH WITH OPPORTUNITY as BEAU-M-011* T E • X A . s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Ryan Slott, Parks and Recreation Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to renew the loan agreement with the National Museum of the United States Air Force. RECOMMENDATION Administration recommends approval of this action. BACKGROUND In 1992, the United States Air Force loaned the City a jet to be used only for display purposes. The jet is located at Babe D. Zaharias Park. Department of Defense regulations require the Air Force to check each year on the status of the jet to be sure that it is being used as intended. The National Museum of the United States Air Force, which is now charged with the responsibility of verifying the status of the jet, is requesting that the loan agreement be renewed in accordance with the original terms of the loan and federal regulations. The jet is an attractive addition to the park and staff wishes to keep it there on display. BUDGETARYIMPACT None. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute the necessary documents to renew the loan agreement with the National Museum of the United States Air Force for the jet on display at Babe D. Zaharias Park. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - MCU WITS OFFORTvxzst B,EAM* T * Z * X * A # 8 REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS MARCH 20,2012 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-11/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider authorizing the City Manager to execute a contract for the Wastewater Treatment Plant Holding Pond Project and Dredging of Ponds 1 and 2 Project 2. Consider approving the purchase of radio system improvements in order to be compliant with the State of Texas Statewide Communications Interoperability Plan 3. Consider authorizing the City Manager to execute a contract for the Sanitary Sewer Rehabilitation of Small Diameter Mains Contract XXII 4. Consider approving the purchase of air conditioning condensing units for the Civic Center 5. Consider authorizing the City Manager to execute an Easement Agreement with TransCanada Keystone Pipeline, LP 6. Consider approving the purchase of a street sweeper for use by the Streets and Drainage Division 7. Consider approving an ordinance denying the rate increase request of Entergy Texas, Inc. 8. Consider approving a contract for collection agency services 9. Consider amending the Neighborhood Empowerment Zone Incentive Policy COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: James Mathews v. City of Beaumont, Texas In the Matter of Arbitration between Beaumont Firefighters Local 399(James Mathews)and the City of Beaumont, Texas Derrick Newman vs. City of Beaumont, Texas, Frank C. Coffin,Jr.,James Kyle Hayes, James Cody Guedry, Charles J. Duchamp III, David Todd Burke, Jason J. Torres, and John David Brown, Case No. 1:1 0-cv-00795-RC Dana Gollihare and Ray Rattray,Individually and as Next Friend of Cameron Rattray v. City of Beaumont;No. E-186, 787 Juanita Burdge v. City of Beaumont, Texas;No. E-185, 269 10. Consider authorizing the settlement of the lawsuit styled Dana Gollihare and Ray Rattray,Individually and as Next Friend of Cameron Rattray v. City of Beaumont; No. E-186, 787 11. Consider authorizing the settlement of the lawsuit styled Juanita Burdge v. City of Beaumont,Texas;No. E-185,269 Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. 1 March 20,2012 Consider authorizing the City Manager to execute a contract for the Wastewater Treatment Plant Holding Pond Project and Dredging of Ponds 1 and 2 Project RICH WITH OPPORTUNITY BEAUNO'No I TT'V ko" T • $ • X • A • B City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Hani Tohme,P.E., Director of Water Utilities MEETING DATE: March 6, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to execute a contract for the Wastewater Treatment Plant Holding Pond Project and Dredging of Ponds 1 and 2 Project. RECOMMENDATION The Administration recommends approval of a contract with Brystar Contracting, Inc. of Beaumont in the amount of$4,391,500.00. BACKGROUND The contract will furnish all labor,materials, and equipment to clean Wastewater Treatment Plant Pond#1 and convert it into a flow equalization basin, construct three (3)junction boxes and a large-diameter manhole, and install all related piping. The contract includes Alternate Bid No. 2 that will furnish all labor, materials, and equipment to clean all ponds. The MBE participation will be with the following: Wholesale Electric of Beaumont, Texas; H.D. Tractor of Lake Charles, Louisiana; and Vision Equipment of Spring, Texas. The total amount of the subcontracts is $826,900.00, which represents 18.83%of the total bid. The Wastewater Treatment Plant is designed to process 46 million gallons per day. During a 2.5"rain event,the Plant receives up to 170 million gallons per day. Pond No. 1 of the Wastewater Treatment Plant was originally designed and constructed as part of the Waste Treatment Plant Improvements Project of 1971. The conversion of this pond into a flow equalization basin will increase the treatment capacity of the plant by increasing the storage capacity of the pond by 70 million gallons. The cleaning of Ponds No. 2 and No. 3 will also increase their storage capacity and improve their functionality. BUDGETARYIMPACT Funds for the project are provided by the Capital Program. SCHAUMBURG & POLK,IN., BEAUMONT * HOUSTON " TYLER February 15,2012 Dr.Hani Tohme,P.E. Water Utilities Manager City of Beaumont 1350 Langham Rd. Beaumont,Texas 77707 Re: City of Beaumont Wastewater Treatment Plant—Wet Weather Flow Improvements Recommendation ofAward Dear Dr.Tohme, Bids were received on Thursday,February 9,2012 for the above referenced project. This project is to clean the existing Wastewater Treatment Plant Pond 1 and convert it into a flow equalization basin at the existing plant site. Schaumburg&Polk, Inc has reviewed the submitted bids and-recommends that the Base Bid Items plus Additive Item No. 2 be awarded to Brystar Cont<ac 6n& Inc. in the amount of$4,391,500.00. Please find attached a copy of the Bid Tabulation,and the submitted Schedule of MBE Participation for your use If you have any questions or require any additional information please contact me. Sincerely, SCHAUMBURG&POK INC. Mark Mama,P.E. Project Manager Enclosures cc: Mr.Bryan Phelps,Brystw Contacting Ms.Molly Villarreal,P.E.,City of Beaumont,Water Utilities Mr.Jeffrey G.Beaver,P.E.,Schaumburg&Polk Inc Bmt-1105-cow F-\BMt\11051L1oc1Reco®mdrrionofAwamd doc 02/15/12 8 oliege Street I Beaumont,Texas 77707 www.spi-eng.com f 409.966.0341 P 409.866.0337 F , , i BID TABULATION CITY OF BEAtfmoNT WASTEWATER TREATMENT FACILITY WET WEATHER FLOW IMPROVEMENTS BID OPENING DATE: THURSDAY,FEBRUARY 9,2012 Brystar Contracting,Inc Alko Braces General Construction,Inc. 8381 Chemical Road Post Office Box 3684 1175 ReynoMe Road Baamottt,Texan 77705 Beaumont,Texas 77707 Beaumont,Teter 77707 409.842.6768 p 409.8604459 p 409.866.6345 p Item Qty Unit Description Unit Price Item Total Unit Price Item Total Unit Price Item Total I. t LS Mob laatim including payment bond,performance bond,insurance, $50,000.00 $50,000.00 $75,000.00 $75,000.00 S 107,889.00 $107,889.00 erection of field ofi5a and moving equipment to project,all in strict conformance with plans and specifications;NOT TO EXCEED 3%OF TOTAL PROJECT BID for, 2. 1 LS Furnish all labor,materials and equipment for the Conversion of Pond $1,790,000.00 $1,790,000.00 $1,698,925.00 $1,698,925.00 $1,800,000.00 $1,800,000.00 No 1.to a Flow Equalisation Basin,including the draining of the pond, removal of existing and installation of new aeration equipment,construction of aaaw pads,Flow Control Station,screen structure&bar screen equipment,proposed MCC building,overflow structure,and all required eleCIFIC81 equipment and-appurtenances,complete and operable,all in strict accordance with the plans and specifications for, 3. 105,600 CY Furnish all labor,materials and equipment to Clan Pond No 1, $10.50 $1,108,800.00 $12.12 $1,279,872.00 $19.75 $2,085,600.00 including dewawdng,excavation,transport and disposal of all solids content above the clay liter,all in strict accordance with the plans and specifications for, 4. 1 _ LS Furnish all labor,materials and equipment to construct three(3) $250,000.00 $250,000.00 $163,205.00 $163,205.00 $325,000.00 $325,000.00 proposed Junction Boxes,including grating,new gates and operators, electrical equipment and appartmoices.mud all required tle ins,complete and operable,all In strict accordance with the plans and specifications for, 5. 439 LF Furnish and Install 60"pipe,complete in place,including excavation, $300.00 $131,700.00 $350.60 $153,913.40 $504.00 $221,256.00 embedment.backfi8,compaction,fittings,tie-ins,testing,and surBce restoration,all in strict accordance with the plans and specifications for, "(Contractor to select pipe material,see page 24) 6. '1,795 LF Furnish anii Install 42"pipe,complete in place,including excavation, $200.00 $359,000.00 $232.23 $416,852.85 $289.00 $518,755.00 embedment,beckfi8,compaction,fittings,tic-inn,testing,and surface restoration,all in strict accordance with the plans and specifications for, **(Contractor to select pipe material,see page 24) 7. 3 EA Furnish all labor,materials and equipment to Install 6 foot diameter 59,000.00 $27,000.00 $7,610.x0 $22,830.00 510,500.00 S3I,500.00 lvfaahole,including rings and covers,all excavating,back Me& compacting, required tie-ins,and tenting,all in strict accordance with the phw and specifications Cor, Total Base Bid(Items 1 thru 7) $3,716,500.00 $3,810,598.25 55,090,000.00 BID TABULATION CITY OF BEAUMONT WASTEWATER TREATMXNT FACILITY WET WEATHER FLOW MMOVEMENTS BID OPENING DATE: THURSDAY,FEBRUARY 9,2012 Brystar Ciastiialam Inc. Afico Bruce's General Construction,Inc 8335 Chamileal Road Post Office Box 3684 1175 Reynolds Road Beaumont,Texas 77105 Beaumont,Texas 77707 Texas 77707 409.841.6768 p 409.360.4459 p 409.366.6245 p Item Qty• Unit Description Unit Price Item Total Unit Price Item Total Unit Price Item Total L DD 1 100,000 CY Furnish all labor,materials and equipment to Clean Pond No.2 and $13.50 $1,350,000.00 $12.89 S1,289.0DO.00 $19.75 $1,975,000.00 Pond No.3, ofDty/Dewatered materials,including dewatering, excavation,transport and disposal of all solids content above the clay liner, all in strict accordance with the plans and specifications for, DD 2 50,000 CY Furnish all labor,materials and equipment to Clean all pomds,(E.xeess $13.50 $675,000.00 $12.89 $644,500.00 $19.75 $987,500.00 over other Bid Item Qty.)of Dry/Dewatered materials,including dewatering,excavation,transport and disposal of all solids content above the clay liner,all in strict accbrdanoe with the plans and specifications for, D 3 12 EA Furnish all labor,materials and equipment to install Solar Bee units in $60,500.00 $726,000.00 $61,034.00 $732,408.00 $60,000.00 $720,000.00 Ponds No 2 and No 3,including relocation of existing aeration units, electrical equipment and appurtenances,all in strict accordance with the plans and specifications for, D 4 1 LS Furnish all labor,materials Rod equipment to remove/replace the $800,000.00 $800,000.00 $720,575.00 $720,575.00 $590,000.00 $590,000.00 existing influent I unction box,including excavation,bypass pumping,, structural concrete,paving,restoration and all required tie-ins,complete and operable,all in strict accordance with the plans and specifications for, Bonding'Company Information YES YES YES Bid Bond YES YES YES Bid Schedule YES YES YES Selected Pipe Material for Bid Items 5 and 6 FIBERGLASS FIBERGLASS FIBERGLASS Schedule C MME Participation) 'YES YES NO Corporate Resolution YES YES YES Minority Business Utilization Commitment YES YES NO �m F on Statement/Financial Stateincut:I YES YES YES ? �• • got Ackno a Addendum No.I-3 YES YES YES � �AV • • * ••` Th314 posals submitted bave been reviewed,ind to the best or my knowledge this is an accurate tabulation of the Bids received. MAfiK MA�iN �� Z I is tz_ 9; 91897 Signature Date ©�F`�� N � ;i� .AM CITY OF BEAUMONT SCHEDULE OF MBE PARTICIPATION NAME CERTIFIED MBE ADDRESS TYPE OF WORK AGREED PRICE CONTRACTOR esi e ! (c. 4790 W. ej,► ,Ad ZWfIvf Ae,,^ + 14.bw 1 rj 30I Pe J .. U kt �jeS,GA ,ty TIC -7-737Y ��+. 41— +s 0z The undersigned will enter into a formal agreement with MBE Contractors for work listed in this schedule conditioned upon execution of a contract with the City of Beaumont. NOTE: 1. This schedule should be submitted with your b' SIGNATURE TITLE_&L ,e4 AZn�I 45 RESOLUTION NO. WHEREAS, bids were solicited for a contract for the Wastewater Treatment Plant Holding Pond Project and Dredging of Ponds 1 and 2 Project to include all labor, materials, and equipment to clean Wastewater Treatment Plant Pond #1 and convert it into a flow equalization basin, construct three (3)junction boxes and a large-diameter manhole, and install all related piping, and Additive No. 2 that will furnish all labor, materials, and equipment to clean all ponds; and, WHEREAS, Brystar Contracting, Inc., of Beaumont, Texas, submitted a bid in the amount of$4,391,500; and, WHEREAS, City Council is of the opinion that the bid submitted by Brystar Contracting, Inc., of Beaumont, Texas should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Brystar Contracting, Inc., of Beaumont, Texas in the amount of $4,391,500 for a contract for the Wastewater Treatment Plant Holding Pond Project and Dredging of Ponds 1 and 2 Project be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Brystar Contracting, Inc.,of Beaumont,Texas,for the purposes described herein. l PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 2 March 20,2012 Consider approving the purchase of radio system improvements in order to be compliant with the State of Texas Statewide Communications Interoperability Plan i RICH WITH OPPORTUNITY REAUMON* T - Z • x - A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Chief Technology Officer MEETING DATE: March 20,2012 REQUESTED ACTION: Council consider approving the purchase of radio system improvements in order to be compliant with the State of Texas Statewide Communications Interoperability Plan RECOMMENDATION The administration recommends approval of the purchase from Motorola Solutions Inc. of Schaumburg, IL in the amount of$2,495,059.00. BACKGROUND Pricing for the proposal was obtained through the Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Program. H-GAC is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. H-GAC complies with the State of Texas procurement statutes. The State of Texas Statewide Communications Interoperability Plan(SCIP), adopted by the Governor's Office on November 26, 2007 and approved by the U.S. Department of Homeland Security on April 4, 2008 requires Texas agencies to be fully"Project 25 compliant(P25)by January 1,2015. Project 25 implements a digital"suite of standards" for radio systems that ensures any P25 radio can talk to any P25 radio system regardless of manufacturer. Our current system is not capable of P25 compliance and will require upgrades to meet the new standard. We have been working towards compliance for several years and have a plan in place to attain compliance by the January 1, 2015 deadline. On November 1, 2011 Council authorized the City Manager to accept funding for the City of Beaumont in the amount of$2,500,000 through the Department of Homeland Security Supplemental 2011 Port Security Grant Program(PSGP)and to enter into a memorandum of understanding with Jefferson County to facilitate expenditure of the grant funding through the PSGP fiduciary process. ti Motorola's proposal will upgrade the master radio site to full P25 compliance,will migrate all of the master site radio equipment to the new Communications building when it is completed and allow us to replace a large number of older radios with P25 compliant radios. There is an additional incentive provided by Motorola of$144,127.00 to be used towards the purchase of radios,radio programming or radio accessories if the contract is fully executed by March 29, 2012. BUDGETARY IMPACT No match is required by the City. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of a Smart X System Migration, which will bring the City of Beaumont's radio system into Project 25 compliance, from Motorola Solutions, Inc.,of Schaumburg, Illinois, in the amount of$2,495,059 through the Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Program. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 3 March 20,2012 Consider authorizing the City Manager to execute a contract for the Sanitary Sewer Rehabilitation of Small Diameter Mains Contract XXII RICH WITH OPPORTUNITY BEAUMON* T • 11 • X • A • s City Council Agenda. Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Hani J. Tohme, P.E., Water Utilities Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to execute a contract for the Sanitary Sewer Rehabilitation of Small Diameter Mains Contract XXII. RECOMMENDATION Administration recommends approval of a contract with Horseshoe Construction, Inc. of LaPorte, Texas, in the amount of$738,473.00. BACKGROUND The contract will rehabilitate approximately 216 linear feet of 6-inch, 7,500 linear feet of 8-inch, 2,713 linear feet of 12-inch, and 2,183 linear feet of 16-inch sanitary sewer lines,to stabilize approximately 10 (ten)vertical feet of existing manhole,to furnish and install approximately 7 (seven)manholes,to remove and replace approximately 26 manholes,to furnish and install 7 (seven)end of line cleanouts,to replace approximately 312 short side and 5 (five)long side service line connections,clean and televise 12,612 linear feet of existing and newly burst sanitary sewer lines and televise approximately 317 existing sanitary sewer service lines. The MBE participation will be with Chief Solutions, Inc. for$37,836.00,which represents 5.12 percent of the total bid. The project is divided among two areas. The first area is located along Bessemer Avenue east of Bethlehem Avenue and west of Carnegie Avenue between Tyler Street and Buchanan Street. The second area is located east of El Paso Avenue and west of Buffalo Avenue between Hayes Lane and East Lucas Drive. The project was designed by City Staff and the Engineer's estimate for the project was $775,000. March 20, 2012 Page 2 of 2 The existing sewer lines built in the 1940's and 1950's have deteriorated and require major rehabilitation. The primary goals of the project are to restore the integrity of the sanitary sewer lines,restore the carrying capacity,provide customers with uninterrupted and adequate service and meet the Sanitary Sewer Overflow Initiative agreement requirements with the State. Rehabilitation of Small Diameter Mains—Contract XXII BUDGETARY IMPACT Funds for the project are provided by the Capital Program. k t w i w OF T ...........µ..».. . BID TABULATION AMALIA VILLARREAL SANITARY SEWER REHABILITATION OF SMALL DIAMETER MAINS CONTRACT XXII �•••••y•»••»•»•»»••-•w•••" BID OPENING DATE:Thursday March 8,2012 @ 2:00 PM l� o .� X90340 The Bid Proposals submitt have been reviewed and to the best of my knowledge this is an accurate tabulation of the bids received. Ill O, .4."N SAO•��� \ �� � pJ-q-a l'� ,tt 1',%O"`� By:Amalie Villarreal,PE,Water Utilities Engineer Date:3/9/2012 Horseshoe Construction,Inc Lopez Utilities Contr.,LLC PM Construction&Rehab,LP ITEM NUMBER QUANTITY DESCRIPTION La PORTE,TX SOUTH HOUSTON,TX PASADENA,TX JAMES R.HOLT FRANCISCO LOPEZ BRENT KELLER UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL ITEM NO.1 1 MOBILIZATION $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 12,000.00 $ 20,000.00 $ 20,000.00 ITEM NO.2 216 6"HOPE by pipe bursting $ 25.00 $ 5,400.00 $ 26.00 $ 5,616.00 $ 27.00 $ 5,832.00 ITEM NO.3 7,500 8"HOPE by pipe bursting $ 25.00 $ 187,500.00 $ 28.00 $ 210,000.00 $ 27.00 $ 202,500.00 ITEM NO.4 2,713 12"HOPE by pipe bursting $ 39.00 $ 105,807.00 $ 38.00 $ 103,094.00 $ 40.00 $ 108,520.00 ITEM NO.5 2,183 16"HOPE by pipe bursting $ 60.00 $ 130,980.00 $ 59.00 $ 128,797.00 $ 58.00 $ 126,614.00 ITEM NO.6 10 Stabilization of existing manhole. $ 500.00 $ 5,000.00 $ 120.00 $ 1,200.00 $ 215.00 $ 2,150.00 ITEM NO.7 7 Furnish and install manhole. $ 2,250.00 $ 15,750.00 $ 2,800.00 $ 19,600.00 $ 2,400.00 $ 16,800.00 ITEM NO.8 26 Remove and replace manhole. $ 2,250.00 $ 58,500.00 $ 3,100.00 $ 80,600.00 $ 2,490.00 $ 62,400.00 ITEM NO.9 1 Abandon existing manhole in place. $ 500.00 $ 500.00 $ 450.00 $ 450.00 $ 1,000.00 $ 1,000.00 ITEM NO.10 7 Furnish and install end of line cleanout. $ 1,850.00 $ 12,950.00 $ 750.00 $ 5,250.00 $ 750.00 $ 5,250.00 ITEM NO.11 5 Replacement of 4"long side service connection. $ 1,000.00 $ 5,000.00 $ 1,350.00 $ 6,750.00 $ 1,600.00 $ 8,000.00 ITEM NO.12 312 Replacement of 4"short side service connection. $ 450.00 $ 140,400.00 $ 525.00 $ 163,800.00 $ 715.00 $ 223,080.00 ITEM NO.13 317 Televise existing sanitary sewer service lines $ 50.00 $ 15,850.00 $ 35.00 $ 11,095.00 $ 45.00 $ 14,265.00 Clean and televise 6,8,and 10-inch existing ITEM NO.14 12,612 sanitary sewer lines. $ 2.00 $ 25,224.00 $ 2.25 $ 28,377.00 $ 2.10 $ 26,485.20 ITEM NO.15 12,612 Clean and televise 6,8,and 10-inch newly pipe burst sanitary sewer lines. $ 1.00 $ 12,612.00 $ 1.50 $ 18,918.00 $ 1.20 $ 15,134.40 ITEM NO.16 1 Trench Safety Plan $ 2,500.00 $ 2,500.00 $ 2,000.00 $ 2,000.00 $ 1,850.00 $ 1,850.00 ITEM NO.17 1 Trench Safety System $ 2,500.00 $ 2,500.00.$ 2,000.00 $ 2,000.00.$ 1,850.00.$ 1,850.00 TOTAL $738,473.00 $799,647.00 $841,730.60 Acknowledge Addenda 1 Yes Yes Yes Bid Summary Yes Yes Yes Bid Bond Yes Yes Yes Corporate Resolution Yes Yes Yes Information Required of Bidder Yes Yes Yes Provision on Conflict of Interest Yes Yes Yes Conflict of Interest Questionnaire Yes Yes Yes Minority Business Utilization Commitment Yes Yes Yes Schedule C(MBE Participation) Yes Yes Yes Minimum Experience Yes No Yes Bound Book Enclosed with Bid Yes Yes Yes SIP TABULATION SANITARY SEWER REHABILITATION OF SMALL DIAMETER MAINS CONTRACT XXI BID OPENING DATE:Thursday March 8,2012 @ 2:00 PM The Bid Proposals submitted have been reviewed and to the best of my knowledge this is an accurate tabulation of the bids received. Allco Simco Enterprises,LTD Brystar Contracting,Inc. ITEM NUMBER QUANTITY BEAUMONT,TX GROVES,TX BEAUMONT,TX T.W.HARRISON MARK SIMON BRYAN PHELPS UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL ITEM NO.1 1 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 $ 25,000.00 ITEM NO.2 216 $ 31.38 $ 6,778.08 $ 40.00 $ 8,640.00 $ 33.00 $ 7,128.00 ITEM NO.3 7,500 $ 33.63 $ 252,225.00 $ 30.00 $ 225,000.00 $ 35.00 $ 262,500.00 ITEM NO.4 2,713 $ 41.89 $ 113,647.57 $ 42.00 $ 113,946.00 $ 57.00 $ 154,641.00 ITEM NO.5 2,183 $ 56.49 $ 123,317.67 $ 65.00 $ 141,895.00 $ 85.00 $ 185,555.00 ITEM NO.6 10 $ 250.00 $ 2,500.00 $ 150.00 $ 1,500.00 $ 385.00 $ 3,850.00 ITEM NO.7 7 $ 2,530.00 $ 17,710.00 $ 3,000.00 $ 21,000.00 $ 2,800.00 $ 19,600.00 ITEM NO.8 26 $ 2,650.00 $ 68,900.00 $ 3,200.00 $ 83,200.00 $ 3,450.00 $ 89,700.00 ITEM NO.9 1 $ 500.00 $ 500.00 $ 1,200.00 $ 1,200.00 $ 575.00 $ 575.00 ITEM NO.10 7 $ 500.00 $ 3,500.00 $ 600.00 $ 4,200.00 $ 455.00 $ 3,185.00 ITEM NO.11 5 $ 1,625.00 $ 8,125.00 $ 2,000.00 $ 10,000.00 $ 1,500.00 $ 7,500.00 ITEM NO.12 312 $ 528.00 $ 164,736.00 $ 850.00 $ 265,200.00 $ 600.00 $ 187,200.00 ITEM NO.13 317 $ 85.00 $ 26,945.00 $ 140.00 $ 44,380.00 $ 100.00 $ 31,700.00 ITEM NO.14 12,612 $ 3.00 $ 37,836.00 $ 5.00 $ 63,060.00 $ 3.50 $ 44,142.00 ITEM NO.15 12,612 $ 1.00 $ 12,612.00 $ 2.50 $ 31,530.00 $ 2.10 $ 26,485.20 ITEM NO.16 1 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 1,500.00 $ 950.00 $ 950.00 ITEM NO.17 1 $ 100.00 $ 100.00 $ 2,500.00 $ 2,500.00 $ 1,200.00 $ 1,200.00 TOTAL 865,932,32 1,043,751.00 ,050,911.20 Acknowledge Addenda 1 Yes Yes Yes Bid Summary Yes Yes Yes Bid Bond Yes Yes Yes Corporate Resolution Yes Yes Yes Information Required of Bidder Yes Yes Yes Provision on Conflict of Interest Yes Yes Yes Conflict of Interest Questionnaire Yes Yes Yes M.B.Utilization Commitment Yes Yes Yes Schedule C(MBE Participation) No Yes Yes Minimum Experience Yes Yes Yes Bound Book Encl.w/Bid Yes Yes Yes RESOLUTION NO. WHEREAS, bids were solicited for a contract for the Sanitary Sewer Rehabilitation of Small Diameter Mains Contract XXII Project; and, WHEREAS, Horseshoe Construction, Inc. of LaPorte,Texas, submitted a bid in the amount of$738,473.00; and, WHEREAS, City Council is of the opinion that the bid submitted by Horseshoe Construction, Inc., of Beaumont, Texas, in the amount of $738,473.00 should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Horseshoe Construction, Inc., of LaPorte, Texas, in the amount of $738,473.00 for the Sanitary Sewer Rehabilitation of Small Diameter Mains Contract XXII Project be accepted by the City of Beaumont; and, THAT the City Manager be and he is hereby authorized to execute a contract with Horseshoe Construction, Inc., of LaPorte, Texas, for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 4 March 20,2012 Consider approving the purchase of air conditioning condensing units for the Civic Center RICH WITH OPPORTUNITY BEAUMOK, * T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart, Public Works Director MEETING DATE: March 20,2012 REQUESTED ACTION: Council consider the purchase of air conditioning condensing units for the Civic Center. RECOMMENDATION Administration recommends the purchase of twelve(12)air conditioning condensing units from Trane Company of Houston in the amount of$273,984 through The Cooperative Purchasing Network. BACKGROUND The Cooperative Purchasing Network(TCPN) is a national governmental purchasing cooperative locally administered by the Region 4 Education Service Center, a government agency authorized by the Texas Education Code. The purchasing network is available for use by public and private schools, colleges,cities, counties,and other government entities. TCPN complies with all state bidding statutes and participation allows members to purchase items or services from contracted vendors. TCPN has contracted with Trane Company to provide heating,ventilating, and air conditioning (HVAC)products. The twelve(12) existing condensing units to be replaced were manufactured between 1992 and 1997. Replacement parts are becoming increasingly difficult to obtain. The condensing units to be purchased include four(4) 100-ton units, four(4) 10-ton units,three (3) 7.5 -ton and one (1) 20-ton unit. The new high efficiency air cooled condensers will result in less energy consumption, potentially lowering utility costs. Delivery is expected in approximately ten(10)weeks and installation will be provided by the City's contracted HVAC vendor. Units are warranted for five(5)years. BUDGETARYIMPACT Funds are budgeted in Capital Reserve for this project. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council approves the purchase of twelve (12) air conditioning condensing units for the Civic Center from Trane Company, of Houston, Texas, in the amount of $273,984 through The Cooperative Purchasing Network. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 5 March 20,2012 Consider authorizing the City Manager to execute an Easement Agreement with TransCanada Keystone Pipeline, LP RICH WITH OPPORTUNITY BEAUMON* T • $ • X . A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager QO PREPARED BY: Patrick Donart, Public Works Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Easement Agreement within the City of Beaumont limits. RECOMMENDATION The Administration recommends the execution of the Easement Agreement with TransCanada Keystone Pipeline, LP. BACKGROUND TransCanada Keystone Pipeline, LP has requested the City of Beaumont grant a perpetual permanent easement for the purposes of surveying, laying, constructing, inspecting, maintaining, operating,repairing,replacing, altering, reconstructing,removing and abandoning in place one pipeline together with all fittings, cathodic protection equipment,pipeline markers and all other equipment and appurtenances thereto, for the transportation of oil,natural gas, and all by- products thereof that will cross Christian Hillebrandt Survey Abstract No. 28 and Samuel Stivers League,Abstract No. 51 located within the Tyrrell Park Marsh and will be constructed in accordance with City requirements. BUDGETARYIMPACT TransCanada Keystone Pipeline,LP will pay$240,640.00 to the City of Beaumont for the use of the permanent easement, all temporary workspaces and damages to the timber. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Easement Agreement with TransCanada Keystone Pipeline, LP, granting a perpetual permanent easement that will cross Christian HUlebrandt Survey,Abstract No.28,and Samuel Stivers League, Abstract No. 51, located within the Tyrrell Park Marsh, said agreement attached hereto as Exhibit"A"and made apart hereof for all purposes. The easement will be used for the purposes of surveying, laying, constructing, inspecting, maintaining, operating, repairing, replacing, altering, reconstructing, removing and abandoning in place one pipeline together with all fittings, cathodic protection equipment, pipeline markers and all other equipment and appurtenances thereto, for the transportation of oil, natural gas, and all byproducts thereof, and will be constructed in accordance with City requirements. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - Prepared by and return to: TransCanada Keystone Pipeline, LP 2700 South Post Oak Blvd.,Suite 400 Houston,TX 77056 (Above Space for Recorder's Use Only) Tract No. ML-TX-JE-00402.000 ML-TX-JE-00402.500 ML-TX-JE-00404.000 EASEMENT AGREEMENT For and in consideration of the sum of Ten Dollars ($10.00) paid in accordance with this Easement Agreement (this "Agreement"), the mutual promises of the parties herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged (collectively, the "Consideration'), City of Beaumont, of the state of,Texas, of Jefferson County, Texas, whose mailing address is 801 Main Street, Suite 210, Beaumont, Texas 77701 (hereinafter called "Grantor") does hereby grant, sell, convey and warrant unto TransCanada Keystone Pipeline, LP, a limited partnership having its principal place of business at 717 Texas Street, Houston, Texas 77002, its successors and assigns (hereinafter calked "Grantee"), a perpetual permanent easement for the purposes of surveying, laying, constructing, inspecting, maintaining, operating, repairing, replacing, altering, reconstructing, removing and abandoning in place one pipeline, together with all fittings, cathodic protection equipment, pipeline markers and all other equipment and appurtenances thereto (it being expressly understood, however, that this Easement shall not give Grantee the right to construct or operate above-ground high voltage electrical transmission lines), for the transportation of oil, natural gas, hydrocarbon, petroleum products and all by-products thereof, on, under, across and/or through a strip of land 50 feet in width, as more particularly described in Exhibit A, which is attached hereto and made a part hereof(the"Easement Area") located on real property situated in the County of Jefferson, State of Texas owned by Grantor and described as follows: That certain tract or parcel of land situated in the Christian Hiilebrandt Survey, Abstract No. 28, Jefferson County, Texas, being more particularly describes! In that certain General Warranty Deed from Harry Holloway and wife, Christie E. Holloway to City of Beaumont, of the State of Texas, recorded as Instrument No. 9003030 of the Official Public Records of Jefferson County, Texas; less and except any conveyances heretofore made. And That certain tract or parcel of land situated in the Samuel Stivers League, Abstract No. 51, Jefferson County, Texas, being more particularly described in that certain Correction Deed from W.C. Tyrrell Trust,a joint stock association, to City of Beaumont, of the State of Texas, recorded In Book 278, Page 374 of the Deed Records of Jefferson County, Texas; less and except any conveyances heretofore made. EXHIBIT "A" _ : I (The "Property"). In addition, during the original construction of the pipeline, the easement granted hereunder shall also include the area described under the headings 'Temporary Work Space" and "Additional Temporary Work Space' and are more particularly described in Exhibit A hereto (the "Temporary Work Space'). The aforesaid Easement is granted subject to the following terms, stipulations and conditions which are hereby covenanted and agreed to by Grantor. By acceptance of any of the benefits hereunder, Grantee shall be deemed to have agreed to be bound by the covenants applicable to Grantee hereunder. 1. The liabilities and responsibilities of the Grantor and Grantee for claims for damages and losses relating to the Easement, the Easement Area or Temporary Work Space are described in the paragraphs below: A. Grantee will pay all commercially reasonable costs and expenses that result from the Grantee's, or anyone acting on the Grantee's behalf, use of the Easement Area or Temporary Work Space, including but not limited to damages caused by petroleum leaks and spills and damages to Grantor's crops, pastures, drainage systems, produce, water wells, wetland cells, livestock, bridges, lanes, improvements, equipment, fences, structures or timber, except to the extent the damages are caused by the negligence, recklessness, or willful misconduct of the Grantor or anyone acting on the Grantor's behalf. B. Except as otherwise specified herein, neither Party shall in any circumstances whatsoever be liable to the other Party(whether in contract, tort, or otherwise)with respect to the performance or non-performance of this Agreement for any loss of profit, loss of revenue, loss of use, loss of business, loss of goodwill, loss of product, operating costs, plant downtime, financing and interest costs, business interruption, or any indirect, special or consequential cost, regulatory fines, expense, loss or damage, even if the same arises wholly or partly through the negligence of such Party. All releases, waivers, and limitations between Grantor and Grantee shall also apply to their respective parents, affiliates, subsidiaries, as well as their directors, officers, and employees. C. If Claims or legal actions for damages arises from Grantee's or anyone acting on the Grantee's behalf, operations under this agreement and/or use of the Easement, Easement Area, or Temporary Work Space, Grantee will be responsible for those claims or legal actions, and will defend, indemnify and hold the Grantor harmless in this regard, except to the extent that those claims or legal actions are determined to have resulted from the negligence, recklessness, or willful misconduct of the Grantor or anyone acting on the Grantor's behalf. 2. Grantee shall have the right to remove all fences from the Easement Area and the Temporary Work Space, as required for purposes of construction or repairs of Grantee's pipeline(s) and Grantee shall repair all such fences promptly upon completion of construction or repairs on Grantor's Property to substantially the same condition as such fences were in prior to removal by Grantee. Grantee agrees to erect a temporary barged wire fence around the Easement and Temporary Work Space, within Grantor's storm drain area prior to construction to prevent wildlife from crossing onto the Easement Area or Temporary Work Space during construction activities. 3. Provided its use of the Property does not in any manner interfere with or prevent the exercise by Grantee of its rights hereunder, or create an actual or potential hazard to the pipeline(s) or its appurtenances, the undersigned Grantor, its successors, heirs or assigns, reserve all oil, gas and minerals on and under the Property and the right to farm, graze and otherwise fully use and enjoy the Property; provided, however, that Grantee shall have the right hereafter to cut, keep clear and remove all trees, brush, shrubbery, structures and other obstructions or facilities with prior coordination with and approval by Grantor, such approval not to be unreasonably withheld, conditioned or delayed, without additional compensation, in the Easement Area being conveyed that are deemed by Grantee to injure, endanger or interfere in any manner with the proper and efficient construction, use, inspection or maintenance of said pipeline(s), or fittings,cathodic protection equipment and other appurtenances. 2 4. All notices under this Agreement shall be in writing, addressed to the.addresses first set forth above and be delivered by certified mail, postage prepaid, and return receipt requested, next business day delivery via a reputable national courier service, regular United States mail, facsimile, e-mail or hand delivery. A party may change its address for notice by giving notice of such change to the other party. 5. The undersigned hereby bind themselves, and their respective heirs, executors, administrators, successors and assigns, to this Agreement unto Grantee, its successors and assigns. The Easement granted hereby shall create a covenant and burden upon the Property and running therewith. 6. It is agreed that this Agreement, together with the Keystone Pipeline Project Landowner/Tenant Construction Conditions Agreement by and between Grantor and Grantee of even date herewith, constitutes the entire agreement between the parties and that no other agreements have been made modifying, adding to or changing the terms of the same. Agreement shall not be abrogated, modified, rescinded or amended in whole or in part without the consent of Grantor and Grantee, in writing and executed by each of them, and duly recorded in the appropriate real property records. 7. The rights granted hereby to Grantee may be assigned by Grantee in whole or in part, in Grantee's sole discretion with prior approval by the Grantor, such approval not to be unreasonably withheld, conditioned or delayed. 8. The terms, stipulations, and conditions of this Easement are subject to all applicable laws, regulations, and permit conditions. 9. This Agreement shall be governed by the law of the State in which the Easement Area is situated. 10. This Agreement may be executed in counterparts, each of which shall be considered an original for all purposes; provided, however, that all such counterparts shall together constitute one and the same instrument. 11. Grantee shall grade and slope the Easement Area and Temporary Work Space in order to restore the same as the pre-construction grade to the extent it does not interfere with the maintenance and/or safe operation of the pipeline. Upon completion of construction of the pipeline, Grantee shall leave no noxious materials or other hazards or obstacles on Grantor's land. 12. The Easement and rights conveyed in this instrument are non-exclusive. Grantor may grant other easements for pipelines'running parallel to Grantee's pipeline, provided, any such grant to a third party shall be made expressly subject to the rights herein granted and shall contain a provision that such third party's pipeline shall be constructed a sufficient distance from Grantee's pipeline so as not to create an actual or potential hazard to the pipeline or its appurtenances or interfere with Grantee's rights hereunder or exercise of same. 13. Following completion of original construction of the pipeline and the date the pipeline is put into service on the Property, in the event Grantee, its successors or assigns ceases to use or otherwise maintain the Easement Area or the pipeline for a period in excess of twenty-four(24)consecutive months, the Easement shall terminate and all right, title and interest in the Easement Area shall revert back to the Grantor, provided Grantee shall have the right, but not the obligation, to remove its property therefrom within a reasonable period of time following termination. In the event of a termination pursuant to this Section, Grantee shall quitclaim all rights and interest in this Easement to Grantor upon receipt of Grantor's written request of same. 14. Grantee shall have all privileges necessary or convenient for the full use of the rights herein granted, together with reasonable ingress and egress over and across that part of the Property located adjacent to the Easement Area and the Temporary Work Space. Notwithstanding the foregoing, Grantee agrees that it shall provide Grantor no less than 24-hours advance notice prior to accessing any portion of the Easement Area located within an established wetland cell for any routine or non-emergency purposes 3 and shall coordinate such access with Grantor. In the event of an emergency,Grantee shall be permitted access, without advance notice, to the wetland cells as may be reasonably necessary in order to prevent or mitigate damage to the wetland cells and the surrounding property. Grantee shall provide notice to Grantor of any such emergency access as soon as is reasonably practicable. Grantee agrees that only foot traffic shall be permitted on the levee slopes or wetland cells, and vehicular access shall be limited to graveled and/or paved roads. IN WITNESS WHEREOF, Grantor has executed this Agreement as of the day of , 2012. GRANTOR: City of Beaumont By: Name: Title: THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on this day of , 2012, by Of a on behalf of said Notary Public in and for the State of Texas Printed Name: My Commission Expires: 4 EXHIBIT "All LEGEND JEFFERSON COUNTY, TEXAS $ Vol. VOLUME N0. 51 K PAGE SAMUEL SMWRS LEAGUE, ABSTRACT FOUND PRO: PROPOSEDCHRISTIAN HUEBRANT LEAGUE, ABSTRACT NO. 28 N.T.S. NOT TO SCALE —�— PROPERTY UNE CENTERUNE`(¢� K. fEW;E LW POINT OF COMMENCING —�— DENOTES SAME OWNER r IRON ROD 20 WIDE TAE 1 C:IP: GALVAMZED WON FEE � Rm Syr 0AP. TW.S. MdPORARY WORKSPACE II A.TY1:S. ADDIiKtNAI 7130*UXY WORI(SPACE r� P.E. PETRMA ENT EASEWNT TATS TEMPORARY ACCESS EASgumT p WAD 93 NORTH AMERICAN DATUM OF 10W CPS OLOSAL,posroo m SYSTEM T4 (R m 1000 UTM Lwnv SA1.ll"SVERv-1"CAUR » C.iC.F.N. COUNTY CLERKS FU NNt'10EW'_ OX-ACT. DEED ECORDS OE t,-a•ow O.P: d,C1 MMAL#RC = OS UM. TEXAS: 3rt� CITY OF BEAUMONT lY'I6X PRaf�oRl►ES,1:TD � I RAE of A CALLED tl53 4ti ACRES CALLED 500' ACRES TRA 6,ft" VOL 27.$, PG. i7# F DYA33dC.T. a D.R.J.C.T. : Y OF IUT CIT CALLED:41S.&M j POIt111r DF .. D.P R J.CT PgbiT aF S ta>=TAIL "AIR � s �t08df . �f SEE DETAIL "B" FbKt Of f , ZR,: z aw ar Q i 7dE anRf NIP OF nlc �CT�,' tM fE71ECKN,is. -d4- OV �' Dt4 LINE TABLE s • - 'OE, A1711: .. 20' WIDE -A.E: 1 WAWA IDWANDE 'r 1 sas,s�e1< rl 2 N'!ii'E .1348' 9EitRQ1 PEAIW' 3k tEUCS71 WIlQi A7IIE NAPPY'�iWDyRI �t 3 t801' "y 4 SOO'ss IVI 1 1.71&T Z ALL Isom W:W aitlf HY!RN l!ke lm MARCH 3000 3. SW MEM 4 8;T±:$0, 1G it-Cr 11 FdR flEt VON* IF IN�SS..M��TIME ! gm 16'fl8i :: � dZD1ISE3OW A COPY iki NO Ti E ��p CITY OF BEAL"T s1Ral�x� 11 a �r ll+ fN ar T#tAl tVAN S1LY WI A 1ltE i�ACTS FTiRAV6 A.-"fFFfE 141E 6F suR�+E1r.. A OF PONA14ENT EA EKT: i 1.33 ACRES ARSIk OF TEMPMARY WOWOPkC 389 ACRER AREA OF ADDITIONAL TEMPORARY WORKSPACE: 1.72 ACRES A.S. saSENUORFF, aL AREA OF 20' WIDE TEXAS REGISTERED STRAiroN wo, 4i4'D SURVEYOR TEMPORARY ACCESS EASEMENT: 3.36 ACRES PA# EASEMENT PLAT CH04we: PERMANENT EASEMENT 4646 OW C MAi�M lae sett ,/ UPON THE PROPERTY OF mm 700 CITY OF BEAUMONT NOUSTM 1x 77om OfDUE L 17vC0..INC-_ O o E9FLtfIE rN 713-977-7770 . 00'MC 11041170 DMWW AM SFtE57 t -.RTC t 1 � Al.-1X�-1E-ODIIOt.ODI�! �3 16_W EII .DWG 8.5064 - CAOD. .. W7=NANUAL RFJ WONS PLOTTED SIZE: LEGAL(84x14) DR . Od.Ndf EXHIBIT "All g JEFFERSON COUNTY, TEXAS VOL VOLUME SAMUEL STIVERS LEAGUE, ABSTRACT N0. 51 ' FWD. FOUND CHRISTIAN HILLEBRANT LEAGUE, ABSTRACT N0. 28 >S PROP. PROPOSED N.T.S. NOT TO SCALE —e— PROPERTY LINE — CENTERLNE((L) —X— FENCE LIE G.I.P. GALVANIZED IRON PIPE T.W.S. TEMPORARY WORKSPACE A.T.W.S, ADDITIONAL TEMPORARY WORKSPACE P.E. PERMANENT EASEMENT NAD 83 NORTH AMERICAN DATUM OF 1983 GPS GLOBAL POSITIONING SYSTEM 0 300 1000 UTM UNIVERSAL TRANSVERSE MERCATOR ' C.C.F.N. COUNTY CM'S FIE NUMBER wi D.R.J.C.T. DEED RECORDS OF JEWERSON COUNTY. TEXAS X SCALE. 1'1.000' O.P.R.J.C.T. OFFICIAL PUBLIC RECORDS OF JEFFERSON COUNTY. TEXAS P.R.J.C.T. PROBATE RECORDS OF JEFFERSON COUNTY.TEXAS T.A.E. TEMPORARY ACCESS EASEMENT N1194434 ,-848."6' ET AL AND OTTERS POINT OF COMMENCING OF BEGUNING 20' WADE T.A.E. 2, 3 do 4 20' NUDE T.A.E. 2 o F HD.1'G.LP. r GJ.P. Z.� /7 1 TRACT N06 -TA-JE 500. / f -N0.ML-W-9-00104:000 / U < CITY OF BEAUMONT r 1 t ai CALLED 2,1&3.50 ACRES ,;y 1 1 C C FA._ 9003030 3 I. j HitT BAYOU >F s POINT ! POINT Of.F1Ffii(i _ E�WT� / W WADE T.A.E. 4 bF FAG 2(P WEE TAf:. 3 . DETAL T OF >r» 2" s 20' W1DE FONT POINT OF ;. SEA_ " ( T C 7ERINIA ON , . TERiNAT10N 11 T.A E.4 20' WIDE T.A E T OF lER1J1 20' WIDE T.A.E 3 KW-601-5 L0 la THE ESTATE OF B.E.OUIIMMI.JR.ET AL CAUSE NQ 1590 PR.J.C.T. :r -- DESCRIBED AS LINE TABLE UNE TAF3lE CALLED SC18 ACRES 20 .WIDE T.A.E. 2 &3 20' WIDE T.A.E. 4 VOL 417. PC.SW g° ,{ W/1111119..-bSTANmM ! - DISTANCE DR.J.C.T. _ / HM*w 812:1' t .579RJ 810.5:, 3 2 41tU'!B'rAB'w 420' 2 sxEvi [ 1 70.0' 3 0w6•JY'LE 319mv 4 S71o41 U s W!41105E 340.0' fildi SEE SHEET 1 OF 11 FOR DISTANCE AND AREA CALCULATIONS fl IF EASEMENT PLAT PERMANENT EASEMENT 460 LOOP caima w 'SCAR ,00e'. UPON THE PROPERTY OF SUM sw Nousm TEL nom UImmmL BtSCCc TIC. f CITY OF BEAUMONT PN.713.977-7770 JOB N0; . 004200 owes ASO 9"m 2 OF 17 No ML-TX-aE-004OL000 3 TC„12;_IN bwa S.'W4 CARD DRAWING: DO NOT MAKE MANUAL REmONS PLOTTED SIZE: LEGAL(8.5.14) EXHIBIT "A" JEFFERSON COUNTY, TEXAS a SAMUEL STIVERS LEAGUE, ABSTRACT NO. 51 a CHRISTIAN HILLEBRANT LEAGUE, ABSTRACT NO. 28 � N x ' N8039'41`W x 7 f x � � W T2.ss-y PMT CF � w Stu, 0 [EfiAJL .*A4'' PMT OF + _ TERMATM 20' MDE T.A.E. t Ad `��: '.:4.38)• 0 a i z z - w i _ DETAIL "B" N.T.S. FIA EASEMENT PLAT ` PERMANENT EASEMENT 'B"LOOP ODMAL OR � SCAtE UPON THE PROPERTY OF ""'E/O0 CITY OF BEAUMONT HaisloN.nc 77os1 awweERaAi: �. 4. PK 71"77-7774 M1!W. 1.1042.00 #�� ASO 9a0Ef OAYO ft REY s or ii , c —ootozr000 TC—1W—MZV 8.3X14 CAM DRAWWC: DO NOT MAKE MANUAL REVOONS KOTMV ME LEGAL(O.5o:14) i EXHIBIT "All JEFFERSON COUNTY, TEXAS g SAMUEL STIVERS LEAGUE, ABSTRACT N0. 51 CHRISTIAN HILLEBRANT'LEAGUE, ABSTRACT N0. 28 � N 20' WOE T A.E. 4 4c$98' o. • 1 J�j .271' 4� A 4 2.277' W � . f y. d t 1 DETML 'e ^ N.T:S 0 POINT Of E TERMINATION T.A.E. 3 20' VNDE T.A.E. 3 20' WIDE T.A.E. 2 POINT OF ^ .1� TERMINATION TAIL 2 a 1.li52' 1 ` DETAIL "D" N.T.S. UwwCwwda EASEMENT PLAT CHANAM PERMANENT EASEMENT 4W a COMAi D& scicte tLts. UPON THE PROPERTY OF 'm "" '0o CITY OF BEAUMONT HOUSMN.Tx nom tMaE p + D6c KmE PK 713-977-7M IREV JDD NO. 11042.00 -mow. .. •ASO. 4 OF 11 ML-TX-JE-*DW2A00 3. TC-LO-M.DWO 5.5X14 CADO DRAWING: DO NOT MAKE MMNAL REVISIONS PLOTTED SIM LEGAL(5.5x/4) EXHIBIT "A" TRANSCANADA UEI JOB NO. 11042.00 TRACT NO.ML-TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS DESCRIPTION OF A FIFTY(50)FEET WIDE PERMANENT EASEMENT UPON THE PROPERTY OF THE CITY OF BEAUMONT DESCRIPTION OF A FIFTY(50)FEET WIDE PERMANENT EASEMENT IN THE SAMUEL STIVERS LEAGUE,ABSTRACT NO. 51 AND THE CHRISTIAN HIILEBRANT LEAGUE, ABSTRACT NO.28,JEFFERSON COUNTY,TEXAS AND BEING UPON,OVER,THROUGH AND ACROSS A PORTION OF THAT CERTAIN CALLED 500 ACRES TRACT OF LAND AS DESCRIBED IN AND CONVEYED TO THE CITY OF BEAUMONT BY INSTRUMENT RECORDED IN VOLUME 278, PAGE 374 OF THE DEED RECORDS OF JEFFERSON COUNTY,TEXAS(D.R.J.C.T.)AND THAT CERTAIN CALLED 2,183.50 ACRES TRACT OF LAND AS DESCRIBED IN AND CONVEYED TO THE CITY OF BEAUMONT BY INSTRUMENT RECORDED UNDER COUNTY CLERK'S FILE NUMBER(C.C.P.N.)9003030 OFTHE OFFICIAL PUBLIC RECORDS OF JEFFERSON COUNTY,TEXAS(O.P.R.J.C.T.)AND REFERRED TO HEREINAFTER AS"THE ABOVE REFERENCED TRACT OF LAND",SAID FIFTY(50)FEET WIDE PERMANENT EASEMENT BEING SITUATED TWENTY FIVE(25) FEET EITHER SIDE OF TIED HEREIN DESCRIBED BASELINE,THE SIDELINES OF SAID PERMANENT EASEMENT BEING LENGTHENED OR SHORTENED TO INTERSECT THE BOUNDARIES OF THE ABOVE REFERENCED TRACT OF LAND,SAID BASELINE BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: WITH ALL BEARINGS AND DISTANCES HEREIN BEING GRID, BASED UPON THE UNIVERSAL TRANSVERSE MERCATOR (UTM) COORDINATE SYSTEM, ZONE 15 NORTH, NORTH AMERICAN DATUM OF 1983 (NAD83), U.S. SURVEY FEET, AS DERIVED FROM A GLOBAL POSITIONING SYSTEM (GPS) SURVEY PERFORMED BY UNIVERSAL ENSCO, INC. MARCH 2008; COMMENCING at a 12 inch iron rod found marking the easterly comer of that certain residue of a called 853.48 acres tract of land,First Tract,described in and conveyed to Tytex Properties,LTD. by instrument recorded in Volume 2358,Page 8 of the D.R.J.C.T.and being on the westerly side of Tyrell Park Drive; THENCE South 010 53' 37"East.a distance of 166.0 feet to a point in the westerly line of the above referenced tract of land and the POINT OF BEGINNING of the herein described baseline; THENCE across a portion of the above referenced tract of land,the following bearings and distances: South 720 18' 12"East,a distance of 180.4 feet to an angle point in the herein described baseline; North 57°42'43"East,a distance of 2462 feet to an angle point in the herein described baseline; South 790 32' 33"East,a distance of 2,190.7 feet to an angle point in the herein described baseline; South 720 25' 16" East,a distance of 207.4 feet to an angle point in the herein described baseline; Sheet 5 of 11 EXHIBIT "A" TRANSCANADA UEI JOB NO. 11042.00 TRACT NO.ML TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS South 79° 30' 45" East, a distance of 3,875.6 feet to a point in the westerly line of Hillebrandt Bayou and being the POINT OF EXIT of the herein described baseline; South 73°30'45"East,a distance of 250.5 feet over and across said Hillebrandt Bayou to a point in the easterly line of said Hillebrandt Bayou and being the POINT OF RE-ENTRY of the herein described baseline; South 73°30'45" East,a distance of 952.9 feet to an angle point of the herein described baseline; South 860 50' 58" East,a distance of 201.1 feet to an angle point in the herein described baseline; TBENCE South 79°36'35"East,a distance of 2,073.1 feet to a point in the westerly line of that certain called 84.18 acres tract of land,conveyed to The Estate of B.E.Qnim,Jr.,et al under Cause Number 13690 of the Probate Records of Jefferson County,Texas and described by insttumcnt recorded in Volume 417, Page 556 of the D.R.J.C.T.,same being the easterly line of the above referenced tract of land,said point being the POINT OF TERMNATION of the herein described baseline,from which a 2 inch galvanized iron pipe found marking the southerly most northeasterly corner of the above referenced tract of land bears North 000 29'01"West,a distance of 3,714.6 feet, said baseline having a total length of 9,927.4 feet,said Permanent Easement containing 11.39 acres of land,more or less. TEMPORARY WORK SPACE 1(T.W.S.1) Being a ten(10)feet wide strip of land,parallel with and adjoining the northerly side of the above described fifty(50) feet wide Permanent Easement (P.E.),extending 3,090 feet in an easterly direction as measured along said northerly side of said P.E.from the intersection with an existing fence line along the easterly side of Tymll Park Drive to a line 10 feet westerly of and parallel with an existing westerly top of bank,extending or shortening the side lines of the herein described T.W.S.I to intersect with said existing fence line and said 10 feet offset line of said top of bank and containing 0.71 acre of land,more or less. TEMPORARY WORK SPACE 2(T.W.S.2) Being a twenty five(25)feet wide strip of land,parallel with and adjoining the southerly side of the above described fifty(50)feet wide Permanent Easement(P.E.),extending 3,101 feet in an easterly direction as measured along said southerly side of said P.E.from the intersection with an existing fence line along the easterly side of Tyrell Park Drive to a line 10 feet westerly of and parallel with an existing westerly top of bank,extending or shortening the side lines of the herein described T.W.S.2 to intersect with said existing fence line and said 10 feet offset line of said top of bank and containing 1.78 acres of land,more or less. Sheet 6 of 11 EXHIBIT "A" TRANSCANADA UEI JOB NO. 11042.00 TRACT NO.MI TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS TEMPORARY WORK SPACE 3(T.W.S.3) Being a ten(10)feet wide strip of land,parallel with and adjoining the northerly side of the above described Permanent Easement(P.E.),situated 7,688 feet in a easterly direction as measured along said northerly side of said P.E.from the intersection with an existing fence line on the easterly side of Tyrell Park Drive,extending 2,456 feet in a easterly direction as measured along said northerly side of said P.E.to the easterly line of the above referenced tract of land,extending or shortening the side lines of the herein described T.W.S.3 to intersect with said existing fence line and said easterly line of the above referenced tract of land and containing 0.56 acre of land,more or less. TEMPORARY WORKSPACE 4(T.W.S.4) Being a fifty(50)feet wide strip of land,parallel with and adjoining the southerly side of the above described Permanent Easement(P.E.),situated 7,688 feet in a easterly direction as measured along said southerly side of said P.E from the intersection with an existing fence line on the easterly side of Tyrell Park Drive,extending 2,466 feet in a easterly direction as measured along said southerly side of said P.E.to the easterly line of the above referenced tract of land,extending or shortening the side lines of the herein described T.W.S.4 to intersect with said existing fence line and said easterly line of the above referenced tract of land and containing 2.84 acres of land,more or less. DITIONAj TEM?ORARY WORK SPACE I(A.T.W.S.1) Being a fifty(50)feet wide strip of land,parallel with and adjoining the southerly side of the above described twenty five(25)feet wide Temporary Work Space 2(T.W.S.2),extending 125 feet in a southeasterly direction as measured along said southerly side of said T.W.S.2 from a line 17 feet southeasterly of and parallel with the westerly line of the above referenced tract of land,containing 0.14 acre of land,more or less.The easterly and westerly sides of the herein described A.T.W.S. 1 being parallel with said 17 feet offset line. ADDITIONAL TEMPORARY WORK SPACE 2(A.T.W.S.2) Being a fifty(50)feet wide strip of land,parallel with and adjoining the southeasterly side of the above described twenty five(25)feet wide Temporary Work Space 2(T.W.S.2),situated 169 feet in a southeasterly direction as measured along said southerly side of said T.W.S. 2 from the intersection with an existing fence line on the easterly side of Tyrell Park Drive,extending 125 feet in a northeasterly direction as measured along said southeasterly side of said T.W.S.2 to a line 18 feet southwesterly of and parallel with an existing Energy Traasfer pipeline and containing 0.14 acre of land,more or less.The northeasterly and southwesterly sides of the herein described A.T.W.S. 2 being parallel with said existing Energy Transfer pipeline. Sheet 7 of 11 EXHIBIT "A" TRANSCANADA UEI JOB NO. 11042.00 TRACT NO.ML-TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS ADDITIONAL TEMVORARY WORK SPACE 3(A.T.W.S.3) Being a fifty(50)feet wide strip of land,parallel with and adjoining the northwesterly side of the above described ten(10)feet wide Temporary Work Space 1 (T.W.S. 1),extending 122 feet in a northeasterly direction as measured along said northwesterly side of said T.W.S.1 from a line 30 feet northeasterly of and parallel with an existing foreign pipeline situated 262 feet in a southeasterly and northeasterly direction as measured along the northeasterly and northwesterly side of said T.W.S. 1 from the intersection with an existing fence line on the easterly side of Tyrell Park Drive and containing 0.13 acre of land,more or less.The southwesterly side of the herein described A.T.W.S. 3 being parallel with said existing foreign pipeline and the northeasterly side bears North 80°39'4 1" West. ADDITIONAL TEMPORARY WORK SPACE 4(A.T.W.S.4) Being a one hundred fifty(150)feet wide strip of land,parallel with and adjoining the southerly side of the above described twenty five(25)feet wide Temporary Work Space 2(T.W.S.2),situated 2,858 feet in a easterly direction as measured along said southerly and southeasterly side of said T.W.S.2 from the intersection with an existing fence line on the easterly side of Tyrell Park Drive, extending 250 feet in a southeasterly direction as measured along said southerly side of said T.W.S. 2 to a line 10 feet westerly of and parallel with an existing westerly top of bank and containing 0.86 acre of land,more or less.The easterly and westerly sides of the herein described A.T.W.S.4 being parallel with said existing westerly top of bank. ADDITIONAL TEMPORARY WORK SPACE 5(A.T.W.S.5) Being a seventy five(75)feet wide strip of land,parallel with and adjoining the southerly side of the above described fifty(50)feet wide Temporary Work Space 4(T.W.S.4),situated 7,690 feet in a easterly direction as measured along said southerly and southeasterly side of said T.W.S.2 and the easterly projection line of said T.W.S. 2 from the intersection with an existing fence line on the easterly side of Tyrell Park Drive,extending 100 feet in a easterly direction as measured along said southerly side of said T.W.S.4 and containing 0.17 acre of land,more or less.The easterly and westerly sides of the herein described A.T.W.S.5 being perpendicular to said southerly side of said T.W.S.4. ADDITIONAL TEMPORARY WORK SPACE 6(A.T.W.S.6) Being a fifty(50)feet wide strip of land,parallel with and adjoining the southerly side of the above described fifty(50)feet wide Temporary Work Space 4(T.W.S.4),situated 8,842 feet in a easterly direction as measured along said southerly and southeasterly side of said T.W.S.2,the easterly projection line of said T.W.S.2 and the southerly side of said T.W.S.4 from the intersection with an existing fence line on the easterly side of Tyrell Park Drive,extending 125 feet in a easterly direction as measured along said southerly side of said T.W.S.4 to a line 10 feet westerly of and parallel with an existing westerly top of bank and containing 0.14 acre of land,more or less.The easterly and westerly sides of the herein described A.T.W.S. 6 being parallel with said existing westerly top of bank. Sheet 8 of 11 EXHIBIT "A" TRANSCANADA UEl JOB NO. 11042.00 TRACT NO.ML-TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS ADDITIONAL TEMPORARY WORK SPACE 7(A T W S 71 Being a fifty(50)feet wide strip of land,parallel with and adjoining the southerly side of the above described fifty(50)feet wide Temporary Work Space 4(T.W.S.4),situated 972 feet in a westerly direction as measured along said southerly side of said T.W.S. 4 from the intersection with the easterly line of the above referenced tract of land,extending 125 feet in a westerly direction as measured along said southerly side of said T.W.S.4 to a line 10 feet easterly of and parallel with an existing easterly top of bank and containing 0.14 acre of land,more or less.The easterly and westerly sides of the herein described A.T.W.S.7 being parallel with said existing easterly top of bank. TWM ;i' FEET'RM=ff Qg&n AC['M EA LMRNT 1(TAX 11. COMMENCING at a 3/4 inch galvanized iron pipe found marking an interior ell corner in the northerly line of the above referenced tract of land; THENCE South 020 19'59"West across a portion of the above referencedtract of land,a distance of 3,681.8 feet to a point in Terrell Road,being the POINT OF BEGINNING of the centerline of a twenty(20)feet wide Temporary Access Easement 1,said easement being situated ten(10)feet either side of the herein described centerline; THENCE across a portion of the above referenced tract of land,the following bearings and distances: South 750 13' 26" East,a distance of 72.3 feet to an angle point of the herein described centerline; South 600 47' 59" East,a distance of 134.6 feet to an angle point of the herein described centerline; South 830 38'02"East,a distance of 188.1 feet to an angle point of the herein described centerline; THENCE South 000 50' 19"East,a distance of 1,718.7 feet to a point in the northerly line of the above described fifty(50)feet wide P.E.,said point being the POINT OF TERMINATION of the herein described centerline,from which a 1 inch galvanized iron pipe found marking an interior ell comer in the southerly line of the above referenced tract of land bears South 24°55' 15"West,a distance of 430.9 feet,said centerline having a total length of 2.113.7 feet,said Temporary Access Easement containing 0.97 acre of land,more or less. TWENTY(241 FEET WIDEM2Q!MACCESS EASE 3(T.AX-21 COMMENCING at a 1 inch galvanized iron pipe found marking an interior ell corner in the northerly line of the above referenced tract of land; THENCE North 890 44' 34"East along the northerly line of the above referenced tract of land,a distance of 668.6 feet to the POINT OF BEGINNING of the centerline of a twenty(20)feet wide Temporary Access Easement 2,said easement being situated ten(10)feet either side of the herein described centerline; THENCE across a portion of the above referenced tract of land, the following bearings and distances: Sheet 9 of 11 EXHIBIT "A" TRANSCANADA UEI JOB NO. 11042.00 TRACT NO.MIGTX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS South 620 13' 41"West,a distance of 812.1 feet to an angle point of the herein described centerline; South 16°36' 39" West,a distance of 42.8 feet to an angle point of the herein described centerline; THENCE South 07°56'39"East,a distance of 3,085.5 feet to a point in the northerly line of the above described fifty(50)feu wide P.E.,said point being the POW OF TERMINATION of the herein described centerline, from which a 2 inch galvanized iron pipe found marking the northeasterly corner of the above referenced tract of land bears North 17°45'41"East,a distance of 3,653.1 feet, said centerline having a total length of 3,940.4 feet, said Temporary Access Easement containing 1.81 acres of land,more or less. TW ENTy(w)f=W'IrYli'jjhEppg A gy A!`t'r="caa )¢lff 3(T—&L 3) COMMENCING at a 1 inch galvanized iron pipe found marking an interior ell corner in the northerly line of the above referenced tract of land; THENCE South 050 44'54"East across a portion of the above referenced tract of land,a distance of 3,114.2 feet to the intersection with the centerline of the above described T.A.E.2 and the POINT OF BEGINNING of the centerline of a twenty(20)feet wide Temporary Access Easement 3,said easement being situated ten(10)feet either side of the herein described centerline; THENCE across a portion of the above referenced tract of land, the following bearings and distances: South 71°04'43"West, a distance of 53.5 feet to an angle point in the herein described centerline; THENCE South 070 31' 05"East,a distance of 349.0 feet to a point in the northerly line of the above described fifty(50)feet wide P.E.,said point being the POINT OF TERMINATION of the herein described centerline, from which a 2 inch galvanized iron pipe found marking the northeasterly comer of the above referenced tract of land bears North 18°39'4T'East,a distance of 3,661.0 feet,said centerline having a total length of 402.5 feat,said Temporary Access Easement containing 0.18 acre of land,more or less. TWENTY(10 pUT W11pE_TENWok RY ACCT 4(f.A E.4) COMMENCING at a 1 inch galvanized iron pipe found marking an interior ell corner in the northerly line of the above referenced tract of land; THENCE South 280 58' 11"West across a portion of the above referenced tract of land,a distance of 3,497.7 feet to a point on the easterly line of Hillebrandt Bayou, being the POINT OF BEGINNING of the centerline of a twenty(20) feet wide Temporary Access Easement 4,said easement being situated ten(10)feet either sick of the herein described centerline; THENCE across a portion of the above referenced tract of land, the following bearings and distances: South 79°23'40"East,a distance of 810.5 feet to an angle point in the herein described centerline; Shed 10 of 11 EXHIBIT "A" TRANSCANADA UE1 JOB NO. 11042.00 TRACT NO.ML-TX-JE-00402.000,00402.500,00404.000 CITY OF BEAUMONT JEFFERSON COUNTY,TEXAS THENCE South 26°01'58"East,a distance of 70.0 feet to a point in the northerly line of the above described fifty(50)feet wide P.E.,said point being the POINT OF TERKWATION of the herein described centerline,from which a 1 inch galvanized iron pipe found marking an interior ell comer in the northerly line of the above referenced tract of land bears North 140 50'14"East,a distance of 3,385.0 feet,said centerline having a total length of 880.5 feet,said Temporary Access Easement containing 0.40 acre of land,more or less. For reference and further information see Dwg No. ML-TX-JE-00402.000 REV 3,prepared by Universal Ensco,Inc.,same date. If this description and accompanying plat are not sealed with the raised embossing seal of the R.P.L_S.whose signature appears below,it should be considered as a copy and not the original. A.S.Geisendorff,Jr. ZlMI Registered Professional Land Surveyor Texas Registration No.4474 Rev.3 191t` Sheet 11 of 11 x } j t P I11 !"a IM a Malm r r; j1R d s , t ; t Y. i 6 March 20,2012 Consider approving the purchase of a street sweeper for use by the Streets and Drainage Division RICH WITH OPPORTUNITY BEAUW* T - $ • X . A - a City C ouncH Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider approving the purchase of a street sweeper for use by the Streets and Drainage Division. RECOMMENDATION The administration recommends approval of the purchase from Kinloch Equipment and Supply of Houston in the amount of$216,297. BACKGROUND Pricing for the equipment was obtained through BuyBoard, a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. BuyBoard complies with State of Texas procurement statutes. The street sweeper will be used to clean and maintain City streets and will replace Unit 4290, a 2002 model with over 67,000 miles. Street sweepers are utilized daily on arterial, collector, and residential streets based on a monthly schedule. Periodic sweeping improves the appearance of City streets and is identified as a Best Practice for the reduction of poliftnt sources as mandated by the Stormwater National Pollutant Discharge Elimination System (NPDES)under the Clean Water Act of 1972. The old unit will be retained as a reserve unit. Standard warranty is one(1)year parts and labor. Warranty service is provided by the vendor. Delivery is expected within twelve(12)weeks. BUDGETARY EWPACT Funds for this purchase are budgeted in the Capital Reserve Fund. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of a street sweeper for use by the Streets and Drainage Division from Kinloch Equipment and Supply of Houston, Texas, in the amount of$216,297 through the BuyBoard Cooperative Purchasing Program. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 7 March 20,2012 Consider approving an ordinance denying the rate increase request of Entergy Texas, Inc. i RICH WITS OPPORTUNITY`1#*- T • E • BEAU-M0 • A S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorne� MEETING DATE: March 20, 2012 REQUESTED ACTION: Consider an ordinance denying the rate increase request of Entergy Texas, Inc. filed on November 28, 2011. RECOMMENDATION Administration recommends denial of the rate increase request of Entergy Texas, Inc. filed on November 28, 2011. BACKGROUND On November 28, 2011, Entergy Texas, Inc. (Entergy) filed a Statement of Intent to increase rates with each city that retains exclusive original jurisdiction over electric rates and services in the Entergy service area. This proposal would increase rates an estimated$111.8 million annually. By Ordinance 11-094,the City Council for the City of Beaumont suspended the effective date of the proposed rate increase to April 2, 2012. The suspension was granted to allow for the City to join with the other cities in the Entergy service area to review the rate filing package in order to make an informed decision as to the requested increase. After having reviewed Entergy's filings, as well as the data supporting the request, it is the recommendation of the attorneys and consultants retained by the Steering Committee of Cities that the requested rate increase be denied and that the current rates charged by Entergy Texas, Inc. be maintained. Should the rate increase request not be denied by the Council, it will become effective on April 2, 2012. This would mean that the average residential customer using 1000 kWh of electricity per month would pay an additional $14.37 per month. BUDGETARYIMPACT The reasonable expenses associated with these rate cases are reimbursable by the company as they have been in the past. ORDINANCE NO. AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY") DENYING THE RATE INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED ON NOVEMBER 28, 2011; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about November 28, 2011 Entergy Texas, Inc. ("Entergy") filed a Statement of Intent with the City to increase electric rates in the Entergy Service Area by$111.8 million per year; and WHEREAS, the City of Beaumont suspended the effective date of Entergy's rates within its jurisdictional limits until at least April 1, 2012 and hired the Lawton Law Firm, P.C. to review the Company's rate change request and proposed tariffs; WHEREAS, the expert utility rate consultants retained to review the Company's rate increase on behalf of the City have made a range of proposed adjustments and concluded that Entergy has not justified the need for a rate increase. The consultants' analyses eliminate the Company's purported annual revenue increase, as set out in the recommendations made to the City in the Final Rate Report to Cities Steering Committee ("Report"). The range of adjustments, up to $118.8 million, eliminates any increase requested by Entergy. WHEREAS, the rate experts retained for the rate review have concluded that Entergy's rate filing request includes rate increases for Entergy's proposed cost of capital, cost of cash working capital, accumulated deferred income taxes, depreciation rates, cost of purchased power capacity, employee compensation—including bonus, stock awards and other compensation—benefits, federal income tax estimates, and storm reserve charges, which are unjustified by Entergy's filing; WHEREAS, Entergy has failed to justify increasing the rates previously determined to be reasonable and necessary by this City and other Texas regulatory authorities; WHEREAS, the statutory deadline to act on Entergy's rate increase request is April 1, 2012; 1 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this Ordinance are hereby in all things approved and adopted. Section 2. The City of Beaumont hereby denies the rate increase and proposed tariff revisions requested in Entergy's Statement of Intent. Section 3. Entergy is hereby Ordered to continue operating under its existing approved rates. Section 4. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 5. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 20th of March, 2012. - Mayor Becky Ames- ATTEST: City Clerk 2 I 8 March 20,2012 Consider approving a contract for collection agency services RICH WITH OPPORTUNITY BEAUNU N* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider authorizing the award of a contract for collection agency services. RECOMMENDATION The administration recommends the award of a contract to Professional Finance Company, Inc., of Greeley, Colorado. BACKGROUND The Cash Management Division bills and collects fees for demolition, litter and weed abatements, landfill usage, water utilities, building code permits, damages to City property and emergency medical services (EMS). Customers are billed at the time of service with subsequent statements sent at 30, 60 and 90 day intervals. Upon exhaustion of the City's collection efforts, accounts in excess of 120 days past due are considered delinquent and forwarded to a collection agency. During the fiscal year ended September 30, 2011, the City accrued $3,221,262 in delinquent accounts. Requests for Proposal (RFP) were sent to twenty-one (21) vendors. Five (5) responses were received. Of the five (5) responses, two (2) did not meet specifications. Three (3) responses were evaluated by City staff and the evaluation is as follows: Description Max Vendor Vendor Vendor Points Professional Credit Financial MSB Government Finance Company Services, Inc. Services Greeley, CO. Durham,NC. Austin, TX Scope of Services 40 35 33 28 Demonstrated Experience 30 29 24 18 Cost of Service / Cost 30 28 25 26 Effectiveness Total Points 100 92 82 72 � r Page 2 March 20, 2012 Collection Agency Services Professional Finance Company received the highest ranking because it offers the City the most advantageous combination of services, experience and cost. Because of the specialized nature of EMS collections and municipal services collections, strong experience in these areas is critical to successful collections. Professional Finance Company provided a very detailed explanation of their collection process and listed innovative procedures to maximize collections. Professional Finance Company was founded in 1904 and has provided collection services for local government, businesses and health care providers since that time. They offer a full range of automated services for both EMS and miscellaneous services collections. The monthly commission rate that will be charged is twenty percent (20%). The contract will be for one (1) year with two (2) one year options to renew. BUDGETARYIMPACT Professional Finance Company will charge twenty percent (20%) of funds actually collected by their efforts. The previous contract held by MSB Government Services included a rate of 19.5%. RESOLUTION NO. WHEREAS, bids were received for an annual contract,with two(2)one year options to renew, to provide collection agency services for the Cash Management Division which bills and collects fees for demolition, litter and weed abatements, landfill usage, water utilities, building code permits, damages to City property and emergency medical services (EMS); and, WHEREAS, Professional Finance Company, Inc., of Greeley, Colorado, submitted a bid of 20% commission for both miscellaneous and EMS accounts; and, WHEREAS, City Council is of the opinion that the bid submitted by Professional Finance Company, Inc., of Greeley, Colorado, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Professional Finance Company, Inc., of Greeley, Colorado, for an annual contract, with two (2) one year options to renew, to provide collection agency services for the Cash Management Division at 20%commission for both miscellaneous and EMS accounts be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Professional Finance Company, Inc., of Greeley, Colorado, for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 9 March 20,2012 Consider amending the Neighborhood Empowerment Zone Incentive Policy RICH WITH OPPORTUNITY BEAUMON T • E • x • A - S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Community Development Director MEETING DATE: March 20, 2012 REQUESTED ACTION: Council consider amending the Neighborhood Empowerment Zone Incentive Policy. RECOMMENDATION Administration recommends approval. BACKGROUND In an effort to encourage economic development in areas of the city with higher concentrations of low to moderate income families and limited redevelopment,Neighborhood Empowerment Zones were created within the city. This Program offers incentives to attract redevelopment to these specified areas. Combined with the focused use of CDBG dollars,these economic incentives are designed to help leverage additional private investment. Specifically,the incentives currently include building fee waivers, expedited permit review,possible lien waivers and the abatement of City taxes for up to three years for the value of eligible projects. Eligible projects include single-, multi-family residential, office,retail and restaurant uses within an approved zone. In an effort to make these incentives more attractive, it is recommended to change the policy to now allow city tax abatement for up to seven(7)years for"substantial investments." These "substantial investments"would be eligible projects valued at$5,000,000 or more. In addition, the current policy excludes businesses that relocate within the city. Under the proposed policy, businesses that relocate within the city would be allowed a City tax abatement for the additional construction value, above their current assessed value at their prior location. Attached is the proposed Policy, with changes highlighted. This policy would apply to each of the four Neighborhood Empowerment Zones. BUDGETARYIMPACT Revenues from waived fees and liens and abated ad-valorem taxes would be forgone,but the long-term economic impact associated with new development should positively affect future budgets. RICH •[TN OPPORTUNITY B EAUMOM* T • S • S • A • S City of Beaumont Neigbborbood Empowerment Zone Incentive Policy Program Goals: It is the City of Beaurnonfs goal to promote development within its Neighborhood Empowerment Zones in an effort to improve the local economy and enhance the quality of life for its citizens.Insofar as these goals are served by enhancing the value of the local tax base and increasing economic opportunities,the City of Beaumont will give consideration to providing the following incentives for development within Neighborhood Empowerment Zones. t7 : A.Abatement: full or partial exemption for ad valorem taxes of eligible properties in a reinvestment zone designated as such for economic development purposes. B.Agreement:a contractual agreement between a property owner and a taxing jurisdiction for the purpose of a tax abatement. C.Base Year Value:the assessed value of either the applicant's real property and improvements looted in a designated reinvestment zone on January 1 of the year prior to the execution of the agreement plus the agreed upon value of any property improvements made after January 1 of that year but before the execution of the agreement,and/or the assessed value of any tangible personal property located on the owner's real property on January 1 of the year prior to the abatement period covered by the agreement. D.Facility:property improvements completed or in the process of construction which together comprise an integral whole. E. Incremental Value: the amount of assessed value of the project that is in addition to the Base Year Value of applicant's real property at their prior location. F.Neighborhood Empowerment Zone: is an area designated as such for the purpose of providing economic incentives,including a tax abet,as authorized by the City of Beaumont in accordance with Texas Local Government Code Annotated Section 378 as amended. G. Real Property:area of land defined by legal description as being owned by the person applying for a tax abatement,including any improvements thereto,which is to be EXHIBIT "A" improved and valued for property tax purposes,and which is to be included in the Neighborhood Empowerment Zone. H. Substantial Investment: a project deemed as an eligible facility under this policy,that exceeds $5,000,000 in capital investment. Program Policy: It is the policy of the City of Beaumont that consideration will be provided in accordance with the guidelines,criteria and procedures outlined in this document.This policy applies to the owners of real property. Project consideration will include the potential impact of the reinvestment project on the immediate and surrounding area A.Authorized Facility:Neighborhood Empowerment Zone incentives may be granted within a Neighborhood Empowerment Zone for new construction or renovation of single- family uses for investments of$50,000 or greater and may be granted for all other uses for investment of$75,000 or greater. B.Eligible Property:Neighborhood Empowerment Zone Incentives may be granted for new construction or renovation of owner-occupied single-family homes,office,retail, restaurant and multi-family residential facilities within a Neighborhood Empowerment Zone,dit*%ated by the City Council of the City of Beaumont,Texas. C.No incentives shall be granted for development resulting fi+om the relocation of an eligible facility fi+om one area of the city to within the Neighborhood Empowerment Zone, excepting projects considered"Substantial Investments,"as defined herein. Procedural Guidelines: Any person,partnership,organization,corporation or other entity desiring that the City of Beaumont consider providing Neighborhood Empowerment Zane incentives shall be required to comply with the following procedural guidelines.No representations made herein considered binding unless and until approved by the City of Beaumont City Council. Preliminary Application: Applicants shall submit a completed"Application for Neighborhood Empowerment Zone Development Incentives"form for consideration of incentives to the Community Development Department of the City of Beaumont, 801 Main Street,Beaumont,Texas 77701. 2 Consideration of the Applkation: A. The City Manager will consider requests for incentives in accordance with these policies,pursuant to Chapter 378 of the Texas Local Government Code.Additional information may be requested as needed. B. The City Council may enter into an agreement that outlines the terms and conditions between the City and the applicant,and governs the provision of the incentives. Iospediod of the Project: During the term of such agreement,the City of Beaumont will have the right to inspect the project facility during regular business hours to ensure compliance with the agreement and accuracy of the owner certification. Rerapt®re. If a project is not completed as specified,or if the terms of the incentive agreement are not met,the City has the right to cancel or amend the incentive agreement and all previously waived fees and abated taxes shall become due to the City and liens may be reattached. Effect of Sale,assigmamt or lease of property: No incentive rights may be sold or assigned without the approval of the City Council. Any sale,assignment or lease of the property may result in execution of the recapture provision,as outlined above. Tyim pf hSgahn iAvaf : ftv"Fee wwy en The Building Construction Fee Waiver Program affords property owners an exemption from planning and building fees associated with new construction or renovation and occupancy of eligible facilities within the target area. Eunedfiaed Pero ft&4M: In order to facilitate redevelopment within the Neighborhood Empowerment Zones,the Community Development Dot is committed to assisting applicants through the planning and permit review process as quickly as possible. 3 Lies Wavers In order to render properties with Neighborhood Empowerment Zones more marketable, the Lien Waiver Program affords property owners a release of liens attached to properties as the result of demolitions or expenditures associated with cutting high grass. Release of such liens would only be allowed in conjunction with new construction or renovation of eligible fiacilities within the target area. !; clion►Tax Abass The Construction Tax Abatement Program is an economic development tool designed to provide incentives for the new construction or renovation of single-family homes,office, retail,restaurant and multi-family residential facilities within a Neighborhood Empowerment Zone. The Construction Tax Abatement Program is intended to contribute to area development by attracting additional capital and human investment to the am as well as additional residents to support economic development activities within the area. Value of Abatements:authorized facilities may be granted a municipal t4x abatement on all or a portion of the increased taxable value of eligible property over the base year value for a period not to exceed three(3)years, except as outlined below. Tax Abatement Program Guidelines: The eligibility requirements are as follows: Investment Municipal Taz Abatement Schedule $50,000&up for residential uses and 100%; or 100% of the incremental value for Substantial 1s`Year $75,000&up for all other uses Investments relocating within the City. $50,000&up for residential uses and 100 o; or 100% of the incremental value for Substantial 2�Year $75,000&up for all other uses Investments relocating within the City. $50,000&up for residential uses and 100%; or 100%of the incremental value for Substantial 3�Year $75,000&up for all other uses Investments relocating within the City. $5,000,000 or more for any eligible 1000/0 for new investments and the incremental value for 4th Year use I Substantial Investments relocating within the City, $5,000,000 or more for any eligible 100% for new investments and the incremental value for. 5th Year use I Substantial Investments relocating within the City. $5,000,000 or more for any eligible 100% for new investments and the incremental value for 6h' Year use Substantial Investments relocating within the City_ F $5,000,000 or more for any eligible 100%for new investments and the incremental value for 7`"Year, use Substantial Investments relocating within the City_ 4 Abatement Program Considerations: A.The final valuation determined by the Jefferson County Appraisal District will be used to determine the actual yearly tax abatement exemption. B.The tax abatement shall be granted only to the owner of the property. C.No tax abatement exemption shall be effective until the applicant has met all of the eligibility requirenerits contained in the guidelines and policies,state law,and City of Beaumont codes. D. There shall be no retroactive tax abatement exemptions—all tax abatement exemptions become effective only on or after the date the City Council approves the tax abatement agreement. E.The applicant shall agree to hold the City of Beaumont,its agents,employees and public officials harmless and pay all attorneys'fees that are generated by any dispute regarding the tax abatement agreement. F.Personal and or real property identified before the period covered by the abatement agreement will not be eligible for abatement. 5 RESOLUTION NO. WHEREAS, on February 12, 2008, the City Council passed Ordinance No. 08-015 adopting tax abatement guidelines and criteria for Zones #1 and #2 of the Neighborhood Empowerment Zone; and, WHEREAS,on June 17,2008,the City Council passed Ordinance No.08-048 adopting tax abatement guidelines and criteria for Zones #3 and #4 of the Neighborhood Empowerment Zone; and, WHEREAS, an amendment to the Neighborhood Empowerment Zone Abatement Policy is required to allow city tax abatement for up to seven (7) years for "substantial investments" and to allow city tax abatement for businesses relocating within the City of Beaumont for the additional construction value, above their current assessed value at their prior location, as described in Exhibit "A," attached hereto and made a part hereof for all purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute an amendment to the Neighborhood Empowerment Zone Abatement Policy to aflow city tax abatement for up to seven (7) years for "substantial investments" and to allow city tax abatement for businesses relocating within the City of Beaumont for the additional construction value, above their current assessed value at their prior location, as described in Exhibit "A," attached hereto and made a part hereof for all purposes; PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames- 10 March 20,2012 Consider authorizing the settlement of the lawsuit styled Dana Gollihare and Ray Rattray, Individually and as Next Friend of Cameron Rattray v. City of Beaumont;No. E-186, 787 RICH WITS OPPORTUNITY BEAUNiR* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager �;�` PREPARED BY: Tyrone E. Cooper, City Attorne30-14-� MEETING DATE: March 20, 2012 REQUESTED ACTION: Consider a resolution authorizing the settlement of the lawsuit styled Dana Gollihare and Ray RatW, Individually,and as Next Friend of Cameron Rattray v. City of Beaumont;No. E-186,787. RECOMMENDATION Administration recommends approval of a resolution authorizing the settlement of a lawsuit styled Dana Gollihare and Ray Rattray.Individually. and as Next Friend of Cameron RatUy v. City of Beaumont in the amount of$17,453.06. BACKGROUND This matter was most recently presented and discussed in Executive Session held on March 20, 2012. The City Attorney is requesting authority to settle this suit. BUDGETARYIMPACT There are sufficient funds in the General Fund to pay the settlement amount. RESOLUTION NO. WHEREAS,the lawsuit styled Dana Gollihare and Ray_Rattray, Individually,and as Next Friend of Cameron Rattray v. City of Beaumont, Cause No. E-186,787, was discussed in Executive Session properly called and held Tuesday, March 20, 2012; and, WHEREAS, the Council desires to authorize the settlement of the lawsuit styled Dana Gogihare and Ray Rattray, Individually, and as Next Friend of Cameron Rattray v. City of Beaumont, Cause No. E-186,787; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be, and he is hereby, authorized to settle the lawsuit styled Dana GoNihare and Ray Rattray, Individually, and as Next Friend of Cameron Rattray v. City of Beaumont, Cause No. E-186,787, for the sum of Seventeen Thousand Four Hundred Fifty-Three and 06/100 Dollars ($17,453.06); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the lawsuit. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames - 11 March 20,2012 Consider authorizing the settlement of the lawsuit styled Juanita Burdge v. City of Beaumont, Texas;No. E-185, 269 RICH WITH OPPORTUNITY B:EAUMON T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: March 20, 2012 REQUESTED ACTION: Consider a resolution authorizing the settlement of the lawsuit styled Juanita Burdge v. City of Beaumont. Texas; No. E-185,269. RECOMMENDATION Administration recommends approval of a resolution authorizing the settlement of a lawsuit styled Juanita Burd e v. City of Beaumont.Texas in the amount of$15,000.00. BACKGROUND This matter was most recently presented and discussed in Executive Session held on March 20, 2012. The City Attorney is requesting authority to settle this suit. BUDGETARY IMPACT There are sufficient funds in the General Fund to pay the settlement amount. RESOLUTION NO. WHEREAS, the lawsuit styled Juanita Budge v. Cfty of Beaumont. Texas, Cause No. E-185,269, was discussed in Executive Session properly called and held Tuesday, March 20, 2012; and, WHEREAS, the Council desires to authorize the settlement of the lawsuit styled Juanita Burdge v. City of Beaumont. Texas, Cause No. E-185,269; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be, and he is hereby, authorized to settle the lawsuit styled Juanita BuLcige v. CHy of Beaumont. Texas, Cause No. E-185,269, for the sum of Fifteen Thousand and No/100 Dollars ($15,000.00); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the lawsuit. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of March, 2012. - Mayor Becky Ames -