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PACKET NOV 17 2015TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 17, 2015 1:30 P.M. CONSENT AGENDA Approval of minutes —November 10, 2015 Confirmation of committee appointments A) Authorize the City Manager to execute an Industrial District Contract with DCP Southeast Texas Plant, LLC. B) Authorize the City Manager to execute Change Order No. 1, accept m ' aintenance and release final payment to Bruce's General Construction, Inc., for the Best Years Center Parking Lot No. 2 BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: November 17, 2015 UA REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Contract with DCP Southeast Texas Plant, LLC. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has a contract with DCP Southeast Texas Plant, LLC that will expire December 31, 2015. The new contract will be effective January 1, 2016. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2016 through 2018 and 75% of property taxes due to the City in 2019 through 2022. The 2016 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2015 or $0.69 per $100 of assessed valuation. Payments will be due to the City by February 1St of each year. A copy of the agreement is attached for your review. FUNDING SOURCE The estimated FY 2016 payment is $42,400. RECOMMENDATION Approval of the resolution. 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 Industrial District Agreement with DCP Southeast Texas Plant, LLC, of Houston, Texas. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and DCP Southeast Texas Plant, LLC, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2016 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2016 shall be due and payable on or before February 1, 2016 and calculated as follows: 2 Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2016 Payment Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October, 2015, the 2015 assessed values shall be used for the February 1, 2016 payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2016 — 2018 payments shall be 80% of assumed City taxes due. The 2019 - 2022 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt 3 of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra -territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY 1. Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights, rd title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and assigns. ARTTCT.R. TV 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its W1 limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. The City will also provide police protection if called upon by the Jefferson County Sheriff's Department for assistance. ARTICLE V TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2016, and ending on December 31, 2022. ARTICLE VII NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY City Manager City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 7 TO COMPANY DCP Midstream, LP. Property Tax Division 5718 Westheimer, Suite 1900 Houston, Texas 77057 Fax: (713) 735-3134 ARTICLE VIII CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this day of 52015. CITY OF BEAUMONT, TEXAS LIN ATTEST: Tina Broussard City Clerk Kyle Hayes City Manager DCP SOUTHEAST TEXAS PLANT, LLC IIn ATTEST: ran FAX11 A L, A 1*-1Zk1 TEXAS. TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Director -,7w MEETING DATE: November 17, 2015 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance and release final payment in the amount of $10,097.89 to Bruce's General Construction, Inc., for the Best Years Center Parking Lot No. 2. BACKGROUND On June 2, 2015, by Resolution No. 15-101, City Council awarded Bruce's General Construction, Inc., a contract for the Best Years Center Parking Lot No.2 Project in the amount of $188,780.50. Change Order No. 1 is requested due to estimated quantities originally bid that were not required to complete the project resulting in a decrease of ($2,828.25) to the original contract amount making the final contract amount $185,952.25. The project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set out in the contract. It is recommended that final payment in the amount of $10,097.89 be approved. FUNDING SOURCE Capital Program. RECOMMENDATION Approval of resolution. RESOLUTION NO. 15-101 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the award of a contract to Bruce's General Construction, Inc., of Beaumont, Texas, in the amount• of $188,780.50 for the Best Years Center Parking Lot No. 2 Project. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 2nd day of June, 2015. - M ayor Becky Ames - MY OF BE, AUMONT DATE: N OVE iM B_ E R 2015 PROJECT: Bk§T-YEARS CENTER PARKING LOT NO. 2 OWNER: c nEA1A1ONT CONTRACTOR: BhUCEISGENERAL CONSTRUCTI INC. CHANGE _ A'bt*RNO.: 01 (FINAL) Ni `�`iti�..... A 061 M". s ".0 Adjust the EitiiiifitcdQuantities t&i-ellecllife AitiidlQuantities used iiitiiieiDt4ble1I ft o�b hCO ic yoj ORIGINAL -CONTRACT. ATUOUNT: NET I m614i PRE violAcRANO.E. 64TW-As: TOTAL ANIOUNT OF THIS CHANGE ORDER; PERCENT OF TIM CHANGE ORDER: TOTAL PERCENT orrhis CHANGE _T0 A D -ER: FINAL CON' AACT AMOUNT: 5188,780.50 5i88,780 .50 ($2,82825)_ -6.015% 4.015% 5185,952,25 ACCEP'llb IiY-. PREPARED BY: RRV...'GENERAL ECI.51AKAGER CONSTRUCTION, INC. APPROYMO BY: ZIIEttG'1'AN, P.E. CITY ENGI.MBEft 7 4-A I lCYLETIAYES,CI'T'YAIANAGER UCS 'Cj�o P LIC IV, j . ArrEtm BY: TINA BROUSSARD, CITY CLERIC CITYOF BEAUMONT ESTIMATE 'PAOF I OF I .......... ...................... ....................... KOJ -. ":: ....... .............. .................. .............. EA :6, ........ . . Eiil.... . .... ....... kJSE O X X., ....... .......... I ... .. ...... .......... ........... ... ....... .............. P AT9' A •.100. Coi Prep ROW-(Tree,RCm0vaf/SaIvage) EA :6, 6.00 o.bb" 6.004, $60 . C).C)O.*. 1600.00 $3,600.00 104 001 Removing Concrete (4W.), SY 31 .3L00 3.78. '34.78 $25.00 ''$869.SO 110, 001 Excavation Cyl 7W 760-00 '040,; - 160.00' . $16.00; $=60.00 1321 001 Eriibahkiiient(Sidiwilk)(T.Y-S)(OrdrComp.1' Si' .5740 0.0011' =57:00:- $41:00 $2,337.00 2471 001 Flex Base (Ty.A)((3r..2)(&")(Dt)(lbomp..in Pl) SY 1X8 11968.06 0.00 1,968.00: $20.00 b.00 $39,360M 360 001 Cdnc.;Pvmt(CI.P)(Ind.6-• 'Cu'rb), SY. 1,929- 1,92940, 0.00- 1,929.00" $SIXW $96,450.00 500, 001 mobilization ILS I Lao 0.00. Lao $5,060.00 S5'000.00 Sos' 007; Temp. Erpsn.,:t6d., &,ErrWron. Contri. (Tubd) EA 2. Lao 0.= Lao. $llsoo-oo $100.001, 531, 001 jSIdeWaIks:(C3.A)-, Syl .201 -200.37 -$5540 $ 12.228 25 .618r 001 Co6dtdt-(r-)(Sch. 40)(IricL-Excay.& Ord. Bkfli)(Ord.zomp) LF in, -181.00 "0.00: ISLW -$6.So 51,176Z0' 642 001. Ground Box(TY06mp, in PQ EA. L 6.00 0.00 0.00: sss000 $(LOD -:W, 001 SinalfRood SideSIgn Stipp6rts &AzembIies'(Kecp-Ri&llt) EA 1 0.00 Loo. Lao .$Sqb.00 1,900 001 Precast Con . cretif.Wheel Stops (Comp. In 01.) . �EA. 22, 22.00 1:0.0¢ 21W $4040- 5970.00 '$2;234.C)D- .666, 001 Refl. Pav,Mr1mgs ;.(Ty Q (W),(0) (SLO)(100,Ni1l):: LF IA79'1' 1AVLOO 040] 1,U7.0M $400] :678 001 Pa Surf. Piep.lbr'Mrkrigs- LF. - -- 1,�9.1 1=7.00 ',0.001 1,U7. p00' - -1 $Loo l $1;117:00'.'. 9000 001 11nVie Piildng Lot tight L302,Steel pole)t incL,Fndn, E16ctcis Zj d6ndz�iL)(6mp. in PI.) EA 2T Lao '0-.00,1 LOU - $7,500.06"I $7,500.00 A PREPARED BY. GRAND TOTALAMOUNT OFWORK DONE:. $135,952 25 LESS §KRIFTAMAGE: APPROVED BY: ':21 G.TAN.P.F-j.CITY ENGINEER SUBTOTAL: $135A52.25 LESS PREVIOUSRAY ESTIMATE: $175,854.36 VVPSEPHIVIAJDAU*f BUC WORKS DIRECTOR LESS- RETESTIINGV. BASE COURSE AMOUNT DUE THIS ESTIMATE: $10,097.89 RYAN M ORGAN,,S A21-VAIV Dam= N, INC: No Text RESOLUTION NO. WHEREAS, on June 2, 2015, the City Council of the City of Beaumont, Texas, passed Resolution No. 15-101 awarding a contract in the amount of $188,780.50 to Bruce's General Construction, Inc., of Beaumont, Texas, for the Best Years Center Parking Lot No. 2 Project; and, WHEREAS, Change Order No. 1, in the amount of ($2,828.25), is required to adjust the estimated quantities to reflect the actual quantities used in the completion of the project, thereby decreasing the total contract amount to $185,952.25; and, WHEREAS, the project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract; 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. 1 adjusting quantities used to complete the project as described above, thereby decreasing the contract amount by ($2,828.25) for a revised total contract amount of $185,952.25; and, BE IT FURTHER RESOLVED THAT the Best Years Center Parking Lot No. 2 Project be and the same is hereby accepted; and, BE IT ALSO RESOLVED THAT the City Manager is hereby authorized to make final payment in the amount of $10,097.89 to Bruce's General Construction, Inc., of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - OW 19. A" T T1 r*1 B REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS NOVEMBER 17, 2015 1:30 P.M. AGENDA CALL TO ORDER Invocation Pledge Roll Call Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items 1-6 /Consent Agenda Consent Agenda GENERAL BUSINESS I Consider transferring a solid waste transportation service agreement from Enviro Waste Solutions (EWS) to Industrial Transportation Waste LLC 2. Consider authorizing the City Manager to execute an Industrial District Contract with The Goodyear Tire and Rubber Company 3. Consider authorizing the City Manager to execute an Industrial District Contract with Arkema, Inc. 4. Consider authorizing the City Manager to execute an Industrial District Contract with Centana Intrastate Pipeline LLC 5. Consider a resolution authorizing the City Manager to execute Change Order No. 2 for the Washington Boulevard Pavement and Drainage Improvement Project Phase I (Amarillo to Martin Luther King Parkway) 6. Consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance and release final payment to LD Construction for the Delaware Street Asphalt Resurfacing Project— Phase 11 WORK SESSION Review and discuss private warranty programs available for customer water/sewer lines Review and discuss options related to the management of the Tennis Center at the Athletic Complex COMMENTS Councilmembers/City Manager comment on various matters Public Comment (Persons are limited to 3 minutes) Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. fl November 17, 2015 Consider transferring a solid waste transportation service agreement from Enviro Waste Solutions (EWS) to Industrial Transportation Waste LLC TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: November 17, 2015 REQUESTED ACTION: Council consider transferring a solid waste transportation service agreement from Enviro Waste Solutions (EWS) to Industrial Transportation Waste LLC. BACKGROUND On November 2, 2015, Industrial Transportation Waste LLC (ITW) sent a letter to the City indicating that ITW bought Enviro Waste Solutions-(EWS). EWS has a solid waste franchise agreement with the City of Beaumont. According to City Ordinance 22.05.101, no person shall engage in the business of collecting, hauling or transporting, in the city, any garbage, waste or refuse, without first having obtained a franchise from the City. Five (5) entities currently have nonexclusive franchise agreements with the City and are doing business in this area. ITW serves southeast Texas with its corporate office located at 2300 Hwy 365, Suite 400 in Nederland. ITW has requested that the City Council transfer the franchise agreement from EWS to ITW. The existing franchise provides for a term of one year from its effective date and a franchise fee of seven percent (7%) of gross revenues received for service. It also requires the entity to indemnify the City of Beaumont and provide insurance which names the City of Beaumont as a named insured. According to City Charter, unless provided in the ordinance granting the same, no public utility franchise shall be transferable except with the approval of the City Council expressed by ordinance. FUNDING SOURCE A franchise fee of seven percent (7%) of gross receipts will be paid to the City. RECOMMENDATION Approval of resolution. ORDINANCE NO. ENTITLED AN ORDINANCE APPROVING THE TRANSFER OF THE SOLID WASTE COLLECTION AND TRANSPORTATION SERVICE FRANCHISE FROM ENVIRO WASTE SOLUTIONS TO INDUSTRIAL TRANSPORTATION WASTE, LLC. WHEREAS, by Ordinance No. 11-071, passed on its third and final reading on October 25, 2011, Enviro Waste Solutions (EWS) was granted a franchise to operate a solid waste collection and transportation service within the City of Beaumont, Texas; and, WHEREAS, Industrial Transportation Waste, LLC (ITW) merged and acquired EWS effective April of 2015; and, WHEREAS, ITW has requested a transfer of EWS franchise rights under the existing franchise; and, WHEREAS, Section 12 of the Ordinance agreement provides that franchise rights granted shall not be transferred to another without the approval of the City; and, WHEREAS, the Council finds that it is in the best interest of the citizens of Beaumont to approve the transfer; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and; THAT the terms and conditions provided for in Ordinance No. 11-071 are to be transferred and assigned to and assumed by Industrial Transportation Waste, LLC as follows: Section 1. Grant of Authority There is hereby granted by the City to Industrial Transportation Waste, LLC (the "Company") the right and privilege to operate and maintain within the City a solid waste collection and transportation service (the "service"). For purposes of this franchise, the term "solid waste collection and transportation service" shall mean the regular business of collection, hauling or transporting any garbage, rubbish, waste or refuse from locations in the City, and the disposal of such material in accordance with law. The franchise granted herein is nonexclusive, and franchises may be granted to other persons for service. Section 2. Term of Franchise The franchise herein granted shall take effect and be in force after the final passage hereof as required by law and upon the filing by the Company of an acceptance with the City Clerk, and shall continue in force and effect for the remainder of the original term of the franchise. The acceptance required hereunder must be in writing and filed with the City Clerk within thirty (30) days after final passage hereof. Upon the expiration of the term hereof, this franchise shallcontinue on a month-to- month basis until terminated by either party or extended or replaced. Section 3. Rates The Company shall establish rates for service which are uniform as to customer class based upon such criteria as type of waste, container size, frequency of collection, and distance of travel. The Company shall file its initial rates for service with its acceptance as required herein. Such rates shall, unless modified by the City, be effective with the effective date of this franchise. Any modifications in rates by the Company shall first be filed with the City Clerk and City Attorney and shall be effective thirty (30) days after such filing unless modified by City as provided herein. Nothing herein shall prevent the Company from charging uniform rates which are less than the rates filed with the City. The City shall have the right to establish rates charged by Company for services performed hereunder, after notice and hearing. Rates established by the City shall be sufficient to allow the Company an opportunity to earn a reasonable return on its invested capital used in providing such services. Ccrfinn d Franchise Fee The Company shall pay to the City, on or before the fifteenth (15th) day of each month, a sum equal to SEVEN PERCENT (7%) of the gross revenues received for service in the previous month as payment for the use of the City's streets, alleys and rights-of-way. The payments herein provided do not relieve Company from the payment of ad valorem taxes, special assessments, charges, or other fees applicable to the public generally. City shall have the right, at any reasonable time, to audit the books and records of the Company and the Company is hereby required to make such books and records available at the request of City. Upon written acceptance, the Company shall furnish to the City a listing of customers served, including customer name, address, frequency of pick-up, size of container or type of service and charge for same. The following reports shall be filed monthly with the City Manager or his designee along with the street rental payment required herein: Upon written request and within thirty (30) days of receipt, the Company shall furnish to the City adequate reconciliation of reported revenues which would include: a listing of names and addresses of all customers served, frequency of pick-up, size of container or type of service and charge for same, and date service was initiated and discontinued. Section 5. Indemnity, Insurance and Bond The Company shall at all times during the effective period of this franchise, carry liability insurance as provided herein. The Company covenants and agrees at all times to indemnify and save harmless the City, its officers, agents, employees, and any member of the public against any and all injuries, damages, claims, causes of action or loss of compensation arising or resulting from Company's operations under this franchise, whether or not such loss was caused by the negligence of the City, its agents, servants or employees. Upon notice given Company by City, Company must defend at its own expense, any action or suit brought against the City because of any work or other acts done by the Company under the terms of this franchise. Counsel chosen by Company to defend City must be satisfactory to City. Company will pay any final judgment which might be obtained against City by reason of any work or acts done hereunder by Company, its agents, servants or employees, and Company will pay all damages occurring to any person or property, public or private, resulting from any fault or neglect on its part or on the part of its agents or employees. The Company agrees to carry insurance as follows: 1) Workers' Compensation The Company shall furnish the City Clerk a certificate of insurance indicating workers' compensation coverage as required by the State of Texas. 2) Automobile Liability Insurance The Company shall carry, in its own name, a policy in comprehensive form to insure the automobile liability of its operation with limits of not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence for bodily injury and, in addition, not less than One Hundred Thousand Dollars ($100,000.00) property damage. This policy shall include City as an additional named insured and provide for thirty (30) days notice to City prior to cancellation. A certificate of insurance certifying such coverage shall be filed with the City Clerk before the effective date of this franchise, and it shall be maintained in force during the term of the franchise. 3) General Liability The Company shall carry, in its own name, a comprehensive liability insurance policy including contractual coverage for operations other than automobile with limits of not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence for bodily injury, and One Hundred Thousand Dollars ($100,00.00) per occurrence for property damage. The policy shall name the City as named insured and provide for thirty (30) days notice to City prior to cancellation. A certificate of insurance certifying such coverage shall be filed with the City Clerk before the effective date of this franchise and maintained in force during the term of the franchise. Section 6. Comaliance with Laws and Ordinances The Company shall, at all times during the term of this franchise, be subject to all lawful exercise of police power by the City and to such reasonable regulations as the City shall hereafter by ordinance provide. In addition, the Company will observe all city, county, state, and federal laws regulating the collection and disposal of solid waste. Section 7. Service Standard and Equipment The Company shall maintain and operate its collection system and equipment in good order to render efficient service subject to the terms of this franchise. All vehicles, containers, and equipment used for the collection and transportation of solid waste shall be constructed, operated and maintained to prevent loss of liquid or solid waste material and to minimize health and safety hazards to solid waste management personnel and the public. Such vehicles, containers, and equipment used shall be maintained in a clean, sanitary condition and free from odors at all times. All vehicles and equipment shall comply with federal, state, and local regulations. Collection vehicles and all bulk, commercial, and roll -off type containers shall be painted and numbered and shall have the Company's name and telephone number painted in letters of a contrasting color. Such containers may not be placed on any street or right-of-way within the City. All collections shall be made directly from the premises of the customer and any emptied containers returned directly to such premises. Section 8. Providing Services The Company shall provide service to any person, firm, corporation, association or entity inside the City of Beaumont who requests such service and is not delinquent in the payment of collection charges due the Company. Section 9. Office The Company shall establish and maintain an office with telephone service and shall keep said office open for business from 9:00 A.M. to 5:00 P.M. each and every day except Saturday, Sunday and holidays. Section 10. Interruption of Service In the event that service shall be interrupted for any reason for more than forty- eight (48) hours, the City shall have the right to make temporary independent arrangements for the purposes of continuing this necessary service to its residents in order to provide or protect the 'public health and safety. If the interruption in service mentioned herein continues for a period of seventy-two (72) hours, then the City shall have the right to terminate the rights and privileges granted in this franchise. Section 11. Termination In the event that any provision of this franchise is violated by the Company, the City may serve written notice upon the Company of its intention to terminate this franchise. The notice shall contain the reasons for such intention to terminate the franchise. Unless within ten (10) days after mailing such notice by City to the Company, such violation shall cease, or satisfactorily arrangements for correction be made by Company, the City Council may, after a public hearing in which Company is provided an opportunity to present evidence concerning such violation, declare the franchise terminated and serve written notice upon the Company of the termination and the termination of the franchise shall be effective upon the mailing of such notice. Section 12. Transfer of Franchise Rights Franchise rights granted hereunder shall not be transferred to another without the approval of City. A single transfer or a series of transfers of Company's stock which constitute a transfer of a majority interest in Company is subject to the prior approval of City. Section 13. Notices Where written notices are provided for in this ordinance, same shall be sufficient to notify Company when provided by certified mail to the address furnished by Company to City. Notice to City is sufficient if mailed by certified mail to City Manager, P.O. Box 3827, Beaumont, Texas 77704. Section 14. If any section, sentence, clause, paragraph or phrase of this ordinance, other than Section 4, is for any reason held to be invalid or illegal, such invalidity shall not affect the remaining portions of this ordinance. If Section 4 hereof is held to be invalid for any reason, the ordinance shall be immediately invalid. Section 15. It is agreed by City and Company that venue of any legal proceedings under this franchise agreement shall be in Jefferson County, Texas. Section 16. Vehicle Permits Twenty (20) days prior to the effective date of this franchise, the Company shall furnish to the City a list of all vehicles to be providing solid waste collection and disposal service under this franchise. Such list shall include state license number, year, make, model and manufacturer's rated capacity for each vehicle. Vehicles not having a valid City of Beaumont landfill permit will not be allowed to operate under this agreement nor utilize the City refuse disposal facility. If at any time a vehicle or equipment is found to be in noncompliance with Section 7 of this franchise, the Company will be notified of its violation and said equipment or vehicle shall be removed from service upon receipt of written notification. Failure to comply with this provision or to falsify the information concerning the location of the service of the vehicle shall be a material breach of this franchise. Should City decide not to terminate this franchise because of any violation of this Section, Company's disposal fee at City's landfill shall be doubled for all of Company's vehicles for a period of sixty (60) days. PASSED BY THE CITY COUNCIL of the City of Beaumont on this the 17th day of November, 2015. - Mayor Becky Ames - 2 November 17, 2015 Consider authorizing the City Manager to execute an Industrial District Contract with The Goodyear Tire and Rubber Company TEXAS TO: FROM: PREPARED BY: MEETING DATE: REQUESTED ACTION: -XITSYMOW118WED City Council Kyle Hayes, City Manager Laura Clark, Chief Financial Officer November 17, 2015 Council consider authorizing the City Manager to execute an Industrial District Contract with The Goodyear Tire and Rubber Company. Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has a contract with The Goodyear Tire and Rubber Company that will expire December 31, 2015. The new contract will be effective January 1, 2016. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2016 through 2018 and 75% of property taxes due to the City in 2019 through 2022. The 2016 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2015 or $0.69 per $100 of assessed valuation. The payments at 80% are subject to a floor and ceiling of 10% of the prior year payment and those at 75% are subject a floor and ceiling of 7%. Payments will be due to the City by February 1St of each year. A copy of the agreement is attached for your review. FUNDING SOURCE The estimated FY 2016 payment is $1,051,900. RECOMMENDATION Approval of the resolution. 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 Industrial District Agreement with The Goodyear Tire and Rubber Company, of Akron, Ohio. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and The Goodyear Tire and Rubber Company, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2016 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties"). 2. By the term "Assessed Value" is meant the 100% valuation of the Company properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2016 shall be due and payable on or before February 1, 2016, and calculated as follows: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = Payment due 2 Each October, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this Agreement; for example, in October, 2015, the 2015 assessed values shall be used for the February 1, 2016 payment. This assessed value, less exclusions as described in Article 10, shall be used in the calculation of the payment. If the assessed values for'the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2016 - 2018 payments shall be 80% of assumed City taxes due, except such payment shall not exceed or be less than the 2015 payment by 10%. The 2019 - 2022 payments shall be 75% of assumed City taxes due, except such payment shall not exceed or be less than the previous year's payment by 7%. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of 3 delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District, which are within the extra -territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides fora continuation of like payments to the City. ARTTCT.F. TV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: 4 (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this Agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property 5 located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an,unusual emergency situation occurs. ARTICLE V TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. G ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent", "affiliates" and to any properties owned or acquired by said parent and affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its parent and or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2016, and ending on December 31, 2022. ARTICLE VIII CONTRACT REOPENERS Either party, by giving written notice to the other party a minimum of one hundred twenty (120) days prior to the end of the fifth year of this contract may reopen for negotiation any portion or all of this Agreement for the years 2021 and 2022. 7 ARTICLE IX NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager The Goodyear Tire & Rubber Company City of Beaumont Attn: Secretary 801 Main 1144 East Market Street P. O. Box 3827 Akron, Ohio 44316 Beaumont, Texas 77704 ARTICLE X EXCLUSIONS 1. In determining the assessed value of the Company facilities there may be excluded therefrom the value of any new plant facilities or modernization of or additions that increase the assessed value of Company's properties. "Significantly increase" shall be defined as an increase in assessed value of thirty percent (30%) or more above the assessed value of Company's properties the year prior to the year construction began. The intent of this exclusion is to encourage major new capital investment within the extraterritorial environs of the City. Determination of qualifications for this exclusion shall be made by the City Manager upon petition by Company and presentation of all pertinent data. This exclusion will be restricted to include only a new and distinct processing facility or modernization of or additions to present facilities and shall not include the maintenance, reconditioning, replacement, upgrading, refurbishing or repairing of existing process facilities. Company shall notify the City Manager of its intention to claim exclusion at least one hundred twenty (120) days prior to the end of the calendar year prior to the year in which the 8 exclusion will take place. Subject to the upper and lower limitations on payments set out in Article I 4 (c) hereof, Company agrees that to whatever extent that the non -excluded plant's assessed value on realty improvements is reduced for whatever reason (excepting from fire, explosion, or other casualty or accident or from any natural disaster), an equivalent amount (dollar for dollar) of assessed value on realty improvements of the excluded facilities shall be deemed for the purposes of this Agreement to lose its exclusion for the current year and accordingly shall be deemed to be included in the non -excluded plant's total assessed value and payments shall be calculated and made by Company thereon to City for the subsequent year; however, in no event shall the offset exceed the fair market value of the realty improvements that would otherwise be excluded. Company agrees to provide the City Manager with all the information necessary for the City Manager to determine whether the expenditure by the Company is qualified for exclusion. The exclusion shall commence the first calendar year following the completion of construction and it shall be in the amount of 100% for the first, second and third years, 75% of value for the fourth and fifth years, and 50% of value for the remaining years of this contract. 2. In determining the assessed value of the Company's facilities, there is also to be excluded therefrom the value of incomplete construction also known as construction in progress. This exclusion applies to new and distinct plant facilities or modernization of or additions to present facilities as specified in item (1) above, regardless of whether such will significantly increase the assessed values of Company's properties. 3. If a question arises relating to the exclusion amount, payment shall be made based on the last certified assessed value, without the questioned exclusion. An adjustment to the payment, if any, shall be made following resolution of the question. The determination 9 concerning whether a capital expenditure by Company is qualified for exclusion hereunder shall be made by the City Manager. Any appeal of the decision of the City Manager shall be made in writing to the City Council within fifteen (15) days of the decision of the Manager. The decision of the City Council shall be final. ARTICLE XI CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. 10 IN WITNESS THEREOF, this Agreement, consisting of 11 pages is executed in duplicate counterparts as of this day of , 2015. CITY OF BEAUMONT, TEXAS LIN ATTEST: Tina Broussard City Clerk Kyle Hayes City Manager THE GOODYEAR TIRE & RUBBER COMPANY IIn ATTEST: 11 3 November 17, 2015 Consider authorizing the City Manager to execute an Industrial District Contract with Arkema, Inc. TEXAS TO: FROM: PREPARED BY: MEETING DATE: REQUESTED ACTION: I:.Vel"101MOIKf 1� City Council Kyle Hayes, City Manager l Laura Clark, Chief Financial Officer U� November 17, 2015 Council consider authorizing the City Manager to execute an Industrial District Contract with Arkema, Inc. Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has a contract with Arkema, Inc., that will expire December 31, 2015. The new contract will be effective January 1, 2016. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2016 through 2018 and 75% of property taxes due to the City in 2019 through 2022. The 2016 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2015 or $0.69 per $100 of assessed valuation. Payments will be due to the City by February 1St of each year. A copy of the agreement is attached for your review. FUNDING SOURCE Arkema's payment in FY 2015 was $699,239 RECOMMENDATION Approval of the resolution. The estimated FY 2016 payment is $681,000. 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 Industrial District Agreement with Arkema, Inc., of Beaumont, Texas. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a -municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and Arkema Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: Arkema — 2016 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2016 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed, located on Company's land covered by this contract as described in Article II (hereinafter called "the properties"). 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2016 shall be due and payable on or before February 1, 2016. The February 1, 2016 payment is calculated as follows: Arkema — 2016 2 Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2016 Payment Due Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this Agreement; for example, in October, 2015, the 2015 assessed values shall be used for the February 1, 2016 payment. This assessed value shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payment due hereunder shall be calculated in accordance with the following schedule: The 2016 - 2018 payments shall be 80% of assumed City taxes due. The 2019 - 2022 payments shall be 75% of assumed City taxes due. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City such amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official Arkema — 2016 3 receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If any annual payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. (d) Novus leases land from Company for its interest in improvements made prior to 2008. The value of Novus assets will be subject to provisions of this Agreement. No separate agreement with Novus will be executed. ARTICLE II This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) and Novus located on Company's real property as shown on the records of the Jefferson County Appraisal District, which are within the extra -territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY Company shall notify City of any sale of any or all of Company's properties to any person or entity. It is the intent of the parties that no sale of any of Company's properties will affect the amount to be paid to the City under this Agreement. As to payments due under this contract, no such sale shall reduce the amount due the City under this contract until the purchaser Arkema — 2016 4 of such property has entered into a contract in lieu of taxes with the City that provides for a continuation of payments to the City as if no such sale had been made. ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of Company's properties covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the Company's properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 St of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits of the Company's properties, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action Arkema — 2016 5 being borne equally by the City and by the said Company and any other companies within the area proposed to be annexed or incorporated, with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of the Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V TERMINATION It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company may enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and may obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in Arkema — 2016 6 addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates" and to any properties owned or acquired by said affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to properties and improvements owned by Company that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2016, and ending on December 31, 2022. Arkema — 2016 7 ARTICLE VIII NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY City Manager City of Beaumont P. O. Box 3827 Beaumont, Texas 77704 TO COMPANY Plant Manager Arkema Inc. P. O. Box 1427 Beaumont, Texas 77704 ARTICLE IX CONTINUATION Copy to: Horacio Correa, Manager Ryan, LLC 2800 Post Oak, 42nd Floor Houston, Texas 77056 If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. Arkema — 2016 8 IN WITNESS THEREOF, this Agreement, consisting of 9 pages, is executed in duplicate counterparts as of this day of , 2015. CITY OF BEAUMONT, TEXAS go ATTEST: Tina Broussard City Clerk Kyle Hayes City Manager ARKEMA, INC. ATTEST: Arkema — 2016 9 November 17, 2015 Consider authorizing the City Manager to execute an Industrial District Contract with Centana Intrastate Pipeline LLC HNOWTV TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: November 17, 2015 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Contract with Centana Intrastate Pipeline LLC. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has a contract with Centana Intrastate Pipeline LLC that will expire December 31, 2015. The new contract will be effective January 1, 2016. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2016 through 2018 and 75% of property taxes due to the City in 2019 through 2022. The 2016 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2015 or $0.69 per $100 of assessed valuation. Payments will be due to the City by February 1St of each year. A copy of the agreement is attached for your review. FUNDING SOURCE The estimated FY 2016 payment is $604,800. RECOMMENDATION Approval of the resolution. 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 Industrial District Agreement with Centana Intrastate Pipeline, L.L.C., of Houston, Texas. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and Centana Intrastate Pipeline, L.L.C., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2016 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2016 shall be due and payable on or before February 1, 2016, and calculated as follows: F) Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2016 Payment Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October, 2015, the 2015 assessed values shall be used for the February 1, 2016 payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2016 - 2018 payments shall be 80% of assumed City taxes due. The 2019 - 2022 payments shall be 75% of assumed City taxes. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt 3 of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of , delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra -territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY 1. Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and assigns. ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 st of said year. 5 (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. 3 ARTICLE IV TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE V TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2016, and ending on December 31, 2022. ARTICLE VI NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: 7 TO CITY TO COMPANY City Manager Centana Intrastate Pipeline, L.L.C. City of Beaumont Property Tax Division 801 Main 5718 Westheimer, Suite 1900 Beaumont, Texas 77704 Houston, Texas 77057 ARTICLE VII CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. 8 IN WITNESS THEREOF, this Agreement, consisting of 9 pages, is executed in duplicate counterparts as of this day of , 2015. CITY OF BEAUMONT, TEXAS am ATTEST: Tina Broussard City Clerk Kyle Hayes City Manager CENTANA INTRASTATE PIPELINE L.L.C. L'In ATTEST: G5 Name Title 5 November 17, 2015 Consider a resolution authorizing the City Manager to execute Change Order No. 2 for the Washington Boulevard Pavement and Drainage Improvement Project Phase I (Amarillo to Martin Luther King Parkway) BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Director MEETING DATE: November 17, 2015 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute Change Order No. 2 in the amount of $85,093.00 for the Washington Boulevard Pavement and Drainage Improvement Project Phase I (Amarillo to Martin Luther King Parkway). BACKGROUND On March 25, 2014, by Resolution No. 14-067, City Council awarded Brystar Contracting, Inc., of Beaumont, Texas the contract for the Washington Boulevard Pavement and Drainage Improvement Project Phase I (Amarillo to Martin Luther King Parkway) in the amount of $16,478,838.95. This project consists of reconstructing the existing dilapidated asphalt pavement, upgrading its storm sewer system and replacing water and sanitary sewer mains including its appurtenances. Change Order No. 2 is requested to replace the existing piping system and fittings that connect the elevated water storage tank on Harriot Street to the City water distribution system. Previous Change Order No. 1 approved on March 17, 2015, by Resolution No. 15-051, decreased the original contract amount by ($99,838.41) making the contract amount $16,379,000.54. Proposed Change Order No. 2 in the amount of $85,093.00 would increase the new contract amount to $16,464,093.54. FUNDING SOURCE , Beaumont Municipal Airport Oil and Gas Revenues. RECOMMENDATION Approval of resolution. RESOLUTION NO.14-067 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the award of a contract to Brystar Contracting, Inc., of Beaumont, Texas, in the amount of $16,478,838.95 for the Washington Boulevard Pavement and Drainage Improvement Project Phase I (Amarillo to Martin Luther King Parkway). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of March, 2014. -'Mayor Becky Ames - RESOLUTION NO.15-051 WHEREAS, on March 25, 2014, the City Council of the City of Beaumont, Texas, passed Resolution No.14-067 awarding a contract in the amount of $16,478,838.95 to Brystar Contracting, inc., of Beaumont, Texas, for the Washington Boulevard Pavement and Drainage Improvement Project - Phase 1 (Amarillo to Martin Luther King Parkway); and, WHEREAS, Change Order No. 1, in the amount of ($99,838.41), is required for minor design changes to better accommodate field conditions, thereby decreasing the contract amount to $16,379,000.54; 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. 1 for minor design changes to better accommodate field conditions, in the amount of ($99,838.41), thereby decreasing the contract amount to $16,379,000.54 for the Washington Boulevard Pavement and Drainage Improvement Project - Phase I (Amarillo to Martin Luther King Parkway). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of March, 2015. P, i ayor Becky Ames - CITY OF BEAUMONT DATE: 05 NOVEMBER 2015 PROJECT: WASHINGTON BOULEVARD PAVEMENT AND DAINAGE IMPROVEMENT PROJECT PHASE I OWNER: CITY OF BEAUMONT CONTRACTOR: BRYSTAR CONTRACTING, INC. CHANGE ORDER NO.: 02 €TaEE2+ O,L .. . Iai�GHA1G GES€21�I'.�:�:I; . � ...'�...... ...��............................'�'.. ANS RSP 4,dd/Delete Construction Items and/or quantities to the Contract: Item No. Item Code Description Original Unit Quantity New Quantity Unit Price Amount WATER & SANITARY SEWER UTILITIES ADDITION: 801 37 FURNISH & INSTALL 12" X 6" TEE EA - 1.00 $1,200.00 $1,200.00 801 38 FURNISH & INSTALL 12" X 8" CROSS EA - 1.00 $1,325.00 $1,325.00 801 39 FURNISH & INSTALL 2" FULL CIRCLE CLAMP EA - 1.00* $210.00 $210.00 801 40 FURNISH & INSTALL 6" FULL CIRCLE CLAMP EA - 1.00 $450.00 $450.00 801 41 FURNISH & INSTALL 12" FULL CIRCLE CLAMP EA - 1.00 $900.00 $900.00 4020 012 MOVE OBSTRUCTION IN SAN SWR LINE FOR TV, CLEANING AND PIPE BUSRTING AT DIFFERENT LOCATIONS EA - 5.00 $1,500.00 $7,500.00 5020 001 SABINE PASS/HARRIOT ST WATER TANK FEEDING & SERVICING WATER SYSTEM INSTALLATION COST OF WORK FOR LABOR & EQUIPMENT COST - PLUS 1.00 $73,508.00 $73,508.00 CHANGE ORDER TOTAL AMOUNT ADDED $85,093.00 ORIGINAL CONTRACT AMOUNT: NET FROM PREVIOUS CHANGE ORDERS: TOTAL AMOUNT OF THIS CHANGE ORDER: PERCENT OF THIS CHANGE ORDER: TOTAL PERCENT CHANGE ORDER TO DATE: NEW CONTRACT AMOUNT: $16,478,838.95 $16,379,000.54 $85,093.00 0.52% -0.02% $16,464,093.54 rvrrRAC ...s: HAN��.c�:....�.:.:.:.......:::::::::::::::::::::::: ACCEPTED BY: PREPARED BY: BRYAN PHELPS, BYS AR RAFAEL G. MIRANDA CONTRACTING, INC. PROJECT MANAGER APPROVED BY: ZUEM TAAP.E. CITY ENGINEER ATTESTED BY: DR. JOSEPH MAJDALANI, P.E. PUBLIC WORKS DIRECTOR KYLE HAYES, CITY MANAGER AMALIA VILLARREAL, P.E. WATER UTILITIES ENGINEER TINA BROUSSARD, CITY CLERK RESOLUTION NO. WHEREAS, on March 25, 2014, the City Council of the City of Beaumont, Texas, passed Resolution No. 14-067 awarding a contract in the amount of $16,478,838.95 to Brystar Contracting, Inc., of Beaumont, Texas, for the Washington Boulevard Pavement and Drainage Improvement Project — Phase I (Amarillo to Martin Luther King Parkway); and, WHEREAS, on March 17, 2015, the City Council of the City of Beaumont, Texas, passed Resolution No. 15-051 authorizing Change Order No. 1, in the amount of ($99,838.41), for minor design changes to better accommodate field conditions, thereby decreasing the contract amount to $16,379,000.54; and, WHEREAS, Change Order No. 2; in the amount of $85,093.00, is required to replace the existing piping system and fittings that connect the elevated water storage tank on Harriot Street to the City water distribution system, thereby increasing the total contract amount to $16,464,093.54; 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 for additional work described above, thereby increasing the contract amount by $85,093.00 for a total contract amount of $16,464,093.54 for the Washington Boulevard Pavement and Drainage Improvement Project — Phase I (Amarillo to Martin Luther King Parkway). PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - November 17, 2015 Consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance and release final payment to LD Construction for the Delaware Street Asphalt Resurfacing Project— Phase II BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Directory MEETING DATE: November 17, 2015 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance and release final payment in the amount of $91,163.07 to LD Construction for the Delaware Street Asphalt Resurfacing Project — Phase II. BACKGROUND On March 17, 2015, by Resolution No. 15-048, City Council awarded LD Construction of Beaumont, Texas the contract for the Delaware Street Asphalt Resurface Project Phase -II in the amount of $342,414.02. Change Order No. 1 in the amount of $53,172.29 is necessary to adjust the estimated quantities to reflect the actual quantities used in the completion of the project, which increases the final contract amount to $395,586.31. The project has'been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of maintenance, approval of Change Order No. 1, and release of final payment in the amount of $91,163.07 is recommended. FUNDING SOURCE Capital Program. RECOMMENDATION Approval of resolution. RESOLUTION NO.15-048 WHEREAS, bids were solicited. for a contract for the Delaware Street Asphalt Resurfacing Project - Phase II to include all labor, materials, equipment and supplies to provide an asphalt overlay of Delaware Street from Concord Road to US 69; and, WHEREAS, LD Construction, of Beaumont, Texas, submitted a bid in the amount of $342,414.02; and, WHEREAS, City Council is of the opinion that the bid submitted by LD Construction, 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 LD Construction, of Beaumont, Texas, in the amount of $342,414.02 for a contract for the Delaware Street Asphalt Resurfacing Project - Phase II 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 LD Construction, of Beaumont, Texas, for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of March, 2015. ayor Becky Ames - CITY OF BEAUMONT DATE: November 17, 2015 PROJECT: DELAWARE STREET ASPHALT RESURFACE PROJECT PHASE -11 OWNER: CITY OF BEAUMONT CONTRACTOR: LD CONSTRUCTION CHANGE ORDER NO.: 1 THE FLILLUAtiNG CHANGES I11i THE PI ANS ANDyOR SPECIFICATIONS.ARE $>;REBY MADE `" ;.... ,.:4........ Adjust the estimated quantities to reflect the actual quantities used in the completion of the project Item No. Item Code Description Unit Original Quantity New Quantity Unit Price Tota] 247 2003 FLEXIBLE BASE (DRIVEWAYS) SY 700.00 0 $15.25 -10,675.00 276 2001 CEMENTTREATMENT(PLANT-MtXED)(191) Cy 687.24 951.21 $150.00 39.595.50 340 2001 112 INCH TYPE D ASPR CONC. LEVEL -UP SY 9311.22 0.00 $8.50 _79.145.37 340 2001A 112 INCH TYPE D ASPIT CONC. LEVEL -UP Cy 0.00 951.21 5103.03 98003.45 340 2002 1 TYPE F ASPH. CONC. SURFACE COURSE SY 8610.86 19072.18 $5.25 54,911.43 340 2002 2' TYPE F ASPH. CONC. SURFACE COURSE SY 4566.61 0.00 57.90 -36,076.22 354 2021 PLANE ASPH. CONC. PAV. (14NCH TO 3-I1,11CH) SY 7849.13 8423.93 51.25 718.50 361 2001 FULL DEPTH CONC. PAVING REPAIR W/ASB SY 740.00 143.33 $125.00 .12.063.75 S00 2001 MOBILIZATION LS 1.00 1.00 $10,000.00 0.00 $02 24DI BARRICADE SIGNS AND TRAFFIC HANDLING MON 300 3 54,000.00 0.00 712 2001 30INT SEAL LF 5122 3,461.00 51.25 -2,076.25 TOTAL: $53,172.29 ;: =:NQ'CONTRACT..T3ME:IS/►DD.Ei1$YiTSI$CHANE}E.ORDER::c;::::::::'`-;.;.:1'::a::`.:_._:;:::.:': ORIGINAL CONTRACT AMOUNT: $342,414.02 NET FROM PREVIOUS CHANGE ORDERS: $0.00 TOTAL AMOUNT OF THIS CHANGE ORDER: $53,172.29 PERCENT OF THIS CHANGE ORDER: 15.53% TOTAL PERCENT CHANGE ORDER TO DATE: 15.53% NEW CONTRACT AMOUNT: 5395,586.31 I t ACCEPTED BY: ox" PREPARED BY: TROY DODSON, LD CONSTRUCTION RA F 7IRANDA, ROADWA DE GNER APPROVED BY-� �.�� ZHENG TAN, P.E. , CITY ENGINEER D . JOSEPH MAJDAIIANI, P.E. PUBLIC WORKS D CCOR APPROVED BY: ATTESTED BY: KYLE HAYES, CITY MANAGER TINA BROUSSARD, CITY CLERK CITY OF BEAUMONT CITY OF BEAUMONT MONTHLY PAYMENT ESTIMATE PAGE OF ..-.:.... I O' G.NEW: CONTRACTAINOUNT;:;.:'ca..:;:(:;.ri. {::,:;$342'414;02:;:;::'>'..;.;';':;:: PERGENTO.F`..TIME;U$EDr't'i.::::,•':.::''€;100.00.%.":','.:' P.ROJCT:. :DELAWARE STREET ASPHALT...RESURFAC NG.PR JE .. ..... ....:.., ... ... ... . , CONTRAETOE� CQNTRACT.° DAiE.: ` ;' ':Marah;17;:2015. :.,'.. ., ..:::°::... ' : P RCEN7`OF WORK?COMPLETE:° •,;: 115 53% .: :: "::.i:UNIT::>:':::'.;:.EST NDADAYS ..:.•.':'.: ,,.. CQ NTRAC7,,CALER `' PREVIOUS".....:.'':TO':DATEE::`..OTAL;ESTIMAT .:._ :.ESTIMATE.}..:::,..:.;.::ESTIMAT.E..:::;::.....T.O:DATE.::.: :Octohep:37,:20.15::...:;: ?€':�<;:c:'°: CA4ENDAR•DAY.S,;.IlSED;;::;::':,'ji:::i:::;'::::a`::;i:.:::i:'a3:};.::;90:;<:'.;:::;i;'::'..:;i;.::r::"f:;:;:::':'r:'::i.:r'i,::',',;:;;a,r.�,.::`':.:::a:?'::`'.':''::'r AN E O RIDERS :..................:. .:.. - .No. 1. ITEM"r:.:: .:DESC.::2 '`.:'..::....:; :" :'DES'CRIPTION :::' r:.i?}.i:..;:...5.;:.:'.... .:.,.,.. .. "::.i:UNIT::>:':::'.;:.EST ;..r.i:'. ... `' PREVIOUS".....:.'':TO':DATEE::`..OTAL;ESTIMAT .:._ :.ESTIMATE.}..:::,..:.;.::ESTIMAT.E..:::;::.....T.O:DATE.::.: DELAWARE STREET ASPHALT RESURFACING PROJECT- PHASE II 247 2003 FLEXIBLE BASE (DRIVEWAYS) SY 700.00 0.00 0.00 0.00 $15.25 $0.00 276 2001 CEMENT TREATMENT (PLANT•-MIXED)(I r) CY 687.24 701.56 249.65 951.21 $150.00 $142,681.50 340 2001 1 12 INCH TYPE D ASPH. CONC. LEVEL -UP SY 9311.22 0.00 0.00 0.00 $8.50 $0.00 340 2001A 1 1/2 INCH TYPED ASPH. CONC. LEVEL -UP CY 951.21 0.00 951.21 951.21 $103.03 $98,003.45 340 2002 1 TYPE FASPH. CONIC. SURFACE COURSE SY 8612.86 8,612.86 10,459.32 19,072.18 $5.25 $10D,128.95 340 2002 P TYPE F ASPH. CONC. SURFACE COURSE SY 4566.61 0.00 0.00 0.00 $7.90 $0.00 354 2021 PLANE ASPH. CONIC. PAV.(I-INCH TO 3 -INCH) SY 7849.13 8,423.93 0.00 8,423.93 SI.25 $10,529.91 361 2001 FULL DEPTH CONC. PAVING REPAIR W/ASB SY 240.00 143.33 0.00 143.33 5125.00 $17;916.25 500 2001 MOBILIZATION LS 1.00 1.00 0.00 1.00 $10,000.00 $10,000.00 502 2001 BARRICADE. SIGNS AND TRAFFIC HANDLING MON 3.00 3.00 0.00 3.00 $4,000.00 $12,000.00 712 2001 JOIM'SEAL LF 5122 3,461.00 0.00 3,461.00 $1.25 $4,326.25 GRAND TOTAL AMOUNT OF WORK DONE: $395,586.31 PREPARED BY: 1 LESS 5% RETAINAGE : $0.00 AEL MIRANDA, ROAQW DESIGNER MATERIAL ON HAND $0.00 SUB TOTAL: $395,586.31 RECOMMENDED BY: ../yid A- N HENG,,��EITYENGINEER LESS PREVIOUS PAY ESTIMATE: ($304,423.24) P APPROVED BY: Q/� <%r p A- r AMOUNT DUE THIS ESTIMATE; $91,163.07 DR. OSE G. JDALANI, P.E. C WORKS DIRECTOR DR1.0;SE Contractor: I certify that all work including materials covered by this invoice have been completed or delivered in accordance with Contract documents. RESOLUTION NO. WHEREAS, on March 17, 2015, the City Council of the City of Beaumont, Texas, passed Resolution No. 15-048 awarding a contract in the amount of $342,414.02 to LD Construction, of Beaumont, Texas, for the Delaware Street Asphalt Resurfacing Project — Phase 11; and, WHEREAS, Change Order No. 1, in the amount of $53,172.29, is required to adjust the estimated quantities to reflect the actual quantities used in the completion of the project, thereby increasing the total contract amount to $395,586.31; and, WHEREAS, the project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract; 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. 1 adjusting quantities used to complete the project as described above, thereby increasing the contract amount by $53,172.29 for a revised total contract amount of $395,586.31; and, BE IT FURTHER RESOLVED THAT the Delaware Street Asphalt Resurfacing Project — Phase 11 be and the same is hereby accepted; and, BE IT ALSO RESOLVED THAT the City Manager is hereby authorized to make final payment in the amount of $91,163.07 to LD Construction, of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of November, 2015. - Mayor Becky Ames - WORK SESSION * Review and discuss private warranty programs available for customer water/sewer lines WORK SESSION * Review and discuss options related to the management of the Tennis Center at the Athletic Complex