HomeMy WebLinkAbout02/18/2020 PACKETBEAUMONT
TEXAS
. REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS FEBRUARY 18, 2020 1:30 PM
CONSENT AGENDA
* Approval of minutes — February 11, 2020
* . Confirmation of board and commission member appointments
A) Authorize a resolution rejecting the bids received for the demolition of three structures
located at 747 College Street
B) Authorize the City Manager to execute a reimbursement agreement with ExxonMobil
Pipeline Company for Concrete Reconstruction in the 3500 block of Washington
Boulevard
C) Authorize the Mayor to execute a waiver granting permission for the Jefferson County
Mosquito Control District to operate aircraft at a low altitude over the City of
Beaumont for mosquito control purposes
D) Authorize the City Manager to renew the loan agreement with the National Museum of
the United States Air Force
0
BEAUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: February 18, 2020
REQUESTED ACTION:. Council consider a resolution rejecting the bids received for the
demolition of three structures located at 747 College Street.
BACKGROUND
At the Council meeting on February 4, 2020, Council decided to. sell the property located at 747
College Street and tabled the award of contract for the demolition.
Bid bonds were received from six bidders. These bid bonds can not be returnee d to the bidders
unless Council rejects all bids received for this demolition.
FUNDING SOURCE
Not applicable.
RESOLUTION NO.
WHEREAS, on December 19, 2019, bids was received for the asbestos
abatement and demolition of three (3) structures at former Fire Station No. 1 located at
747 College Street; and,
WHEREAS, SETEX Construction Corporation, of Beaumont, Texas, submitted a
low qualified bid in the amount of $62,480.00; and,
WHEREAS, on February 4, 2020, the City Council of the City of Beaumont,
Texas decided to sell the property located at 747 College Street and tabled the award of
the contract to SETEX Construction Corporation; and,
WHEREAS, the City Council finds it is not in the best interest of the citizens of
Beaumont to accept the bids for the asbestos abatement and demolition of three (3)
structures at former Fire Station No. 1 located at 747 College Street and that said bids
should be rejected;
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 Council does hereby reject the bids received for the asbestos
abatement and demolition of three (3) structures at former Fire Station No. 1 located at
747 College Street.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -
1�
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services
MEETING DATE: February 18, 2020
REQUESTED ACTION: Council consider a resolution authorizing the City Manager to
execute a reimbursement agreement with ExxonMobil Pipeline
Company for Concrete Reconstruction in the 3500 block of
Washington Boulevard.
BACKGROUND
ExxonMobil Pipeline Company agrees to remove their existingpipelines in the 3500 block of
Washington Boulevard that are in conflict with ongoing construction and backfill the area as
needed with road base. The City of Beaumont agrees to reconstruct the south half lanes of
Washington Boulevard in this area with concrete immediately afterwards to allow traffic to be
put back on the roadway in a timely manner. This work is part of the ongoing Washington
Boulevard Pavement Widening Project - Phase H.
ExxonMobil has proposed an agreement to reimburse the City for a maximum of $15,000.00 to
perform the work. The Engineer's estimate for this additional work is $10,100.00.
FUNDING SOURCE
Capital Program.
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 a Reimbursement
Agreement with ExxonMobil Pipeline Company, of Spring, Texas, in an amount not to
exceed $15,000.00 for concrete reconstruction of the pipeline crossing located in the
3500 block of Washington Boulevard relating to the Washington Boulevard Pavement
Widening Project -Phase II. The agreement is substantially in the form attached hereto
as Exhibit "A" and made a part hereof for all purposes.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -
REIMBURSEMENT AGREEMENT
Concrete reconstruction in the 3500 block of Washington Boulevard
This REIMBURSEMENT AGREEMENT is entered into between the City of
Beaumont, Texas, .an incorporated municipality..and Texas governmental entity ("the
City") and ExxonMobil Pipeline Company, a Delaware Corporation, ("the Company"), on
. 2020.
RECITALS
A. The purpose of this Agreement is to set forth the terms and conditions upon
which the City will reconstruct the concrete pavement in the 3500 block of Washington.
Boulevard, in the south half lanes of the roadway, at the Exxon Mobil pipeline crossing.
B. To set forth the terms and conditions upon which the Company will provide
reimburse money to. the City for such construction.
WHEREFORE, in consideration - of the above recitals and other good and
valuable consideration, the parties hereby agree as set forth -below.
1. Work to Be Performed. The Company agrees to. remove all of their existing
pipelines and backfill the area (as needed) with road base material. The City agrees that
It shall conduct the engineering work, design work, permitting, procurement of materials,
construction, and cleanup activity associated to reconstruct the concrete pavement in the
3500 block of Washington Boulevard in the south half lanes of the roadway.
2. Reimbursement Money to Be Provided. The Company agrees that it will
reimburse the City for actual direct and indirect costs incurred or $15,000.00, whichever
amount is less, for the Work to Be Performed as reflected above.
a. Method of Reimbursement. The Company will reimburse the City in a
timely fashion as costs are incurred by the City and upon submission of documentation
and request by. the City to the Company.
3. Permitting and Coordination. The City agrees to coordinate any permitting-
related
ermittingrelated or utility -related activity that may be required for the Work to Be Performed, as
well as securing any necessary rights of way or easements, if applicable.
4. Right of _Termination. The City and the Company each reserve the right to
terminate this Agreement should any federal agency or any State of Texas agency or other
1
EXHIBIT "A"
political subdivision take action that adversely affects the approval or completion of the
Work to Be Performed.
S. Conformity with Labor and Safety laws. The City agrees to carry on the Work
to Be Performed in a timely manner and.in conformity with all applicable federal or state.
labor and safety laws.
6. Entire Agreement. This Agreement contains the entire agreement and
.understanding concerning the Work to Be Performed and its reimbursement. The Parties
.acknowledge that neither the other party nor its .agents norattorneys have made
any promise, representation, or warranty whatsoever, express or implied, not contained
herein to induce the execution of this Agreement and acknowledge that this Agreement
has not been executed in reliance upon any promise, representation, or warranty not
contained herein.
7. Amendment must be in Writing. This Agreement shall only be modified by a
writing signed by the Parties.
8: Venue for Resolving Disputes. Any arbitration or litigation arising out of this
Agreement shall be conducted only. in Beaumont, Jefferson County, Texas. .
9. Interpretation Guides. In interpreting this Agreement, it shall be deemed to
have been prepared by the Parties jointly and no ambiguity shall be resolved against
either Party on the. premise that it or its attorneys was responsible.for drafting -this
Agreement or any provision hereof. 'tbe captions or headings set forth in this Agreement
are for convenience only and in no way define, limit, or describe the scope or intent
or any Sections, Subsections, or other provisions of this Agreement. Any reference in
the Agreement to a Section or to a Subsection, unless specified otherwise,- shall be a
reference to a Section or Subsection of this Agreement.
10. Due Authority of Signatures. Each individual signing this Agreement warrants
and represents that he or she has been authorized by appropriate action of the Party
which he or she represents to enter into this Agreement on behalf of the Party.
11. Notices. All notices, demands, and communications between the Parties shall
be duly addressed as indicated below and given by personal delivery, registered or
certified mail (postage prepaid and return receipt requested), Federal Express or other
reliable private express delivery, or by electronic mail transmission -with confirmation by
the other. Party. Such notices, demands, or communications shall be deemed received
(i) upon deliver if personally served or sent by email, or (ii) after three business days
if given or. sent by any other -approved manner specified above. Any Party to this
Agreement may change its below -specified name, address, email, or person to whom
attention should be directed by giving notice as specified in this Section. A copy of any
notice; demand, or communication sent to City pursuant to this Agreement shall be sent
to. the City's. legal. counsel. Not demands, and. communications shall be duly
addressed and sent as follows:
To the City:
Tyrone. E. Cooper, City Attorney
801 Main Street
Beaumont, Texas 77701
(409) 880.3715
Tyrone.Cooper@ Bea umontTexas.gov
To the Company:..
Christopher D. Hinson, Manager, Right of Way and Claims
ExxonMobil Pipeline Company
22777 Springwoods Village Parkway,
EMHC/E3.5A.528
Spring; Texas 77389
(832) 624-5451
Christopher.D.Hinson@exxonmobil.com
12. Texas Law Governs. This Agreement and all rights and obligations arising out
of it shall be construed in accordance with the laws of the State of Texas.
13. Counterparts. This Agreement may be signed in one or more counterparts;
which, taken together, shall constitute one original document.
14. Effective Date. This Agreement shall be effective as of the date noted on page
one (1) of. this Agreement.
3
IN WITNESS WHEREOF, the undersigned execute this Agreement on behalf of -the
Parties.
CITY:
THE CITY OF BEAUMONT
By: .
Name:
Title:
ATTEST:
COMPANY:
EXXONMOBILJUREUNE COMPANY
i�By..
Name:
Title: Z! L#A�
ATTEST:
4
C
BEAUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
MEETING DATE: February 18, 2020
REQUESTED ACTION: Council consider a resolution authorizing the Mayor to execute a
waiver granting permission for the Jefferson County Mosquito
Control District to operate aircraft at a low altitude over the City of
Beaumont for mosquito control purposes.
BACKGROUND
The Jefferson County Mosquito Control District is requesting that the City of Beaumont grant
authority for them to operate their aircraft at a low altitude over the City of Beaumont for
mosquito control purposes. The Jefferson County Mosquito Control District operates their
aircraft in accordance with all federal and state rules and regulations governing this type of
application.
The Jefferson County Mosquito Control District makes this request on an annual basis.
FUNDING SOURCE
Not applicable. .
RECOMMENDATION
Approval of the resolution.
Jefferson .County Mosquito Control District
Organized in 1950
Kevin J. Sexton, Director 5
8905 First Street 1 /
Beaumont, Texas 77705
Phone: (409) 719-5940
Fax: (409) 727-4176
ksexton@co.iefferson.tx.us
January 7, 2020
Mayor's Office
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704
Dear Mayor:
Advisory Commission:
Dr. M. 0. Way, Chairman
Denise Wheeler, Secretary
George Mitchell
Matt Vincent
Paul Jones
Reginald Boykins Sr.
Each year the Jefferson County Mosquito Control District requests the governing bodies
of the different communities in Jefferson County to furnish a waiver permitting the Mosquito
Control aircraft to fly at low altitudes over the territory under their jurisdiction.
It is respectfully requested that the City Council sign the enclosed waiver granting
permission for the Jefferson County Mosquito Control District to operate aircraft over the City of
Beaumont for mosquito control purposes.
Federal Regulations places the responsibility of maintaining all records and complying
with all rules and regulations upon the operator of the aircraft. This file is open at all times for
inspection.
We furthermore request that you please mail or fax the signed copy of the waiver to the
number listed above.
If at any time you may have any questions, please contact our office for assistance
Respectfully yours,
Bryan Farrar, Pilot
Cc: County Judge Jeff Branick, Jefferson County
Commissioner Eddie Arnold, Precinct 1
9/0/1127
7a,
Commissioner Brent Weaver, Precinct 2
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Commissioner Michael Sinegal, Precinct 3
Commissioner Everett Alfred, Precinct 4Y
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Jefferson County Mosquito Control District
Organized in 1950
Kevin J. Sexton, Director
8905 First Street
Beaumont, Texas 77705
Phone: (409)719-5940
Fax: (409) 727-4176
ksexton@co.iefferson.tx.us
Mayor's Office
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704
January 7, 2020
AERIAL WAIVER-
The
AIVER
Advisory Commission:
Dr. M.O. Way, Chairman
Denise Wheeler, Secretary
George Mitchell
Matt Vincent
Paul Jones
Reginald Boykins Sr.
The Jefferson County Mosquito Control District is authorized to fly at low altitudes as
required for the application of pesticides for the control of mosquitoes within the limits of City of
Beaumont, Texas. Jefferson County Mosquito Control operates in accordance with all Federal
and State Rules and Regulations governing this type of application.
Signature:
Mayor's Office, City of Beaumont, Texas
Date:
Bryan Farrar, Pilot
___Jefferson County -Mosquito Control District
BF/dw
2
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the Mayor is hereby authorized to execute a document furnishing an aerial waiver
to the Jefferson County Mosquito Control District to allow their aircraft to fly at low
altitudes over the City of Beaumont for mosquito control purposes.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -
51
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Jimmy Neale, Parks & Recreation Director
MEETING DATE: February 18, 2020
REQUESTED ACTION: Council consider a resolution authorizing the City Manager to
renew the loan agreement with the National Museum of the United
States Air Force.
BACKGROUND
In 1992, the United States Air Force loaned the City a jet to be used for display purposes. The
jet is located at Babe D. Zaharias Park. Department of Defense regulations require the Air
Force to check each year on the status of the jet to be sure that it is being used as intended. The
National Museum of the United States Air Force, which is now charged with the responsibility of
verifying the status of the jet, is requesting that the loan agreement be renewed in accordance
with the original terms of the loan and federal regulations.
The jet is an attractive addition to the park and staff wishes to keep it there on display.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the resolution.
NATIONAL MUSEUM OF THE UNITED STATES AIR FORCE (NMUSAF)
STATIC DISPLAY LOAN PROGRAM
2020 LOAN AGREEMENT, SDA0282
1.0. Parties. The United States of America or "the Government," represented by the National Museum of
the United States Air Force (NMUSAF), and collectively referred to hereinafter as "the Lender," hereby
establishes with the CITY OF BEAUMONT, hereinafter called "the Borrower," incorporated and
operating under the laws of the State/Country of TX and located at BEAUMONT, a Loan Agreement
hereinafter called "the Agreement" for U.S. Air Force (USAF) historical property. This Agreement is
entered pursuant to Public Law 80-421 [10 United States Code (USC) §2572], and any amendments thereto,
and is effective for the period commencing 1 April 2020 and ending 31 March 2021. This Agreement is
not transferable. .
2.0. Borrower Obligations/Costs. The Borrower has applied, in writing, for the loan of USAF historical
property, and hereby agrees to be responsible for all arrangements and, in accordance with 10 USC §2572,
is required to pay all costs, charges and expenses incident to the loan of this property, including, but not
limited to, the cost of preparation, demilitarization, hazardous material removal, disassembly, packing,
crating, handling, maintenance, repair, restoration, transportation and all other actions incidental to the use
and/or movement of the loaned property to or from the Borrower's location.
3.0. Loaned Property. The NMUSAF shall loan to the Borrower the historical property identified in the
inventory report, which has been included in the loan package and is incorporated into this Agreement by
reference as if fully rewritten herein (hereinafter the "Property"). The Borrower accepts the Property on an
"as is, where is" basis, and the Lender makes no warranties, expressed or implied, as to the Property's
condition, fitness for any particular purpose, or other warranty of any kind.
4.0 Loan Conditions.
4.1. The Borrower agrees that the Property shall be used for static display purposes only. Loaned
aerospace vehicles will not be flown or restored to flying condition. under any circumstance, nor will they
be licensed with the Federal Aviation Administration (FAA). The Borrower shall not remove any parts .
from loaned aircraft except as directed in paragraph 42. Relocation of the Property for temporary special
events (parades, ceremonies, air shows, etc.) is not authorized under any circumstances. No decorations of
any type, for any purpose (special event, seasonal display, ceremonies, etc.) are authorized to be displayed
on any of the Property. The Property shall not be used in a manner that provides the appearance of
endorsement by the USAF of any non-federal entity or political candidate, or the expression of a political
viewpoint of any kind.
4.2. The Borrower agrees to allow the Lender to remove parts from loaned aerospace vehicles for the.
NMUSAF or military requirements, upon written direction from the NMUSAF. Such parts are generally
internal in nature and removal or replacement should not alter the external aesthetic appearance of the
aerospace vehicle.
4.3. The Borrower shall not part with possession of the Property or any component of the Property in
any manner to any third party. either directly or indirectly. The ' Borrower shall not enter into any
negotiations with a third party regarding any future disposition of the loaned material, in whole or in part.
Revised November 2018
4.4. The Borrower agrees to all of the following: to use the Property in a careful and prudent manner;
to not modify the Property in any manner, without prior written permission of the Lender, which would
alter the original form, design, or the historical significance of said Property; to perform routine
maintenance to include, but not limited to, annual. upkeep, periodic painting, tire inflation, repair of damage,
day-to-day, care and management of the Property, so as to provide an acceptable appearance and to not
reflect negatively on the Lender; and to display and protect the Property in accordance with the instructions
set forth in Attachments 1 and 2, which are incorporated into this Agreement by.reference as if fully
rewritten herein.
4.5. The Borrower agrees that any additions, modifications or alterations that improve the Property
become part of said Property and are owned by the NMUSAF.
4.6. Interior access to loaned aerospace vehicles (cockpit, cargo areas, etc.) for purposes other than
maintenance or restoration work by persons other than staff or authorized maintenance personnelis
prohibited. This is to ensure not only the -integrity and preservation of the aircraft, but more importantly,
the safety and security of the public.
5.0. Use as Security, Sale or Lease. The Borrower agrees not to use the Property as security for any loan,
and not to sell, lease, rent, lend or exchange the Property under any circumstances.
6.0. Professional Photography. The Borrower shall not make.or allow the use of the Property, for any
commercial purpose, including, but not limited to, use of the Property for still photography, motion picture, -
television or video production, without prior written: approval from the Lender.. Casual photography or
motion video created by visitors for personal or non -promotional use is permitted.
7.0. Incident Reporting. The Borrower shall within one (1) working day of discovery, notify the Lender
of any instance of loss, damage or destruction of the Property.
8.0. Title. The Borrower shall obtain no interest in the Property by reason of this Agreement and title shall
remain in the Lender at all times.
9.0.. Receipt, Custody & Liability.
9.1. This Agreement shall be executed prior to the Borrower accepting physical custody of the
Property or on or before 1 April 2020.
9.2. The Borrower agrees to provide a receipt to the Lender at the time it assumes physical custody
of the Property (unless the Property is already in itspossession).
9.3. The Borrower agrees that it is strictly liable for up to .the full replacement value (FRV) of the
Property, as identified in the inventory report, and to accept such liability upon assuming physical custody
of the Property or execution of this Agreement, whichever occurs first.
9.4. The Borrower agrees that the FRV of the Property is as identified in the inventory report and
waives any right to contest the FRV in any legal proceeding. In the event any item Property does not have
an FRV identified in the inventory report, the FRV shall be determined at the sole discretion of the
NMUSAF.
9.5. The Borrower agrees that if the Property, or any portion thereof, has been irreparably damaged,
destroyed or stolen the NMUSAF may direct the Borrower to either replace the. Property with an historical
item of equal value to the satisfaction of the NMUSAF or require monetary reimbursement equaling the
Revised November 2018
FRV. In the event of less than total loss to the Property, or any portion thereof, the Borrower agrees to
repair/replace the damage to the Property to the satisfaction of the NMUSAF or reimburse the NMUSAF
for the full value of the damage, as determined by the NMUSAF. The election of a remedy under this
subparagraph is at the sole discretion of the NMUSAF. This subparagraph is not intended to waive or limit
the Government's rights and remedies, legal or equitable, and the Government reserves all such rights and
remedies.
9.6: The Borrower agrees to place the Property on exhibit within ninety (90) days from the date it
takes physical custody, or as otherwise mutually agreed upon.
10.0. Borrowers Responsibilities.
10.1. The Borrower agrees to indemnify, hold harmless, and defend the Lender fiom and against all
claims, demands, actions, liabilities, judgments, costs, and attorney's fees, arising out of, claimed on account
of, or in any manner predicated upon personal injury, death, or property damage caused by or resulting
from possession and/or use of the Property.
10.2. The Borrower agrees to report, as requested,"to the Lender on the condition and location of the
Properly. Further, the Borrower agrees to allow authorized Department of Defense representatives access
to the Borrower's records and facilities to assure accuracy of information provided by the Borrower and
compliance with the terms of this Agreement.
10.3. The Borrower agrees to return said Property to the Lender on termination of this Agreement or
earlier, if it is determined that the Property is no longer required, at no expense to the Lender. In the event
of a partial termination, the Borrower agrees to the return of all items of the Property subject to the partial
termination, at no expense to the Lender.
11.0. Initial Loan Agreement Requirements.
11.1. The Borrower agrees to furnish the Lender a CD/DVD containing digital images of the Property
within fifteen (15) days of taking physical possession of the Property. The image file name must be the
accession number for that item (e.g..SD-2000-0123.JPG). For aircraft and ballistic missiles, images will
_include views showing all external surfaces including tail number and all accessible interior areas including
instrument panels, avionics racks and equipment, aircrew, passenger, cargo and payload compartments,
wheel wells, and bomb bays. Digital images for all other artifacts will be of sufficient detail to ensure
positive identification of each object.
11.2. The Borrower shall arrange insurance coverage for the Property on an all-risk, wall-to-wall
basis, at a minimum, for an amount that equals the total agreed upon FRV for all items in the inventory
report, plus any additional amount to cover the inventory that does not have an identified FRV, so long as
the Property remains in its possession. The Borrower further agrees to furnish the Lender proof of said
insurance. For Borrowers with private insurance coverage, proof shall constitute a copy of the insurance
certificate from the commercial provider, noting any deductible, and showing coverage up to the FRV of
the Property and any additional coverage for Property that does not have an FRV identified in the inventory
report. For self-insured organizations, proof shall constitute a written and signed statement attesting to its
ability to reimburse the Government for the FRV of the Property (as identified in the inventory report and/or
as determined by the NMUSAF).
Revised November 2018
12.0. Annual Loan Renewal Requirements.
12.1. The Borrower agrees to furnish the Lender a CD/DVD containing current digital images of the
Property. The image name must be the accession number for that item (e.g. SD-2000-.0123.JPG). Digital
images of aircraft and missiles will provide general views to include sufficient detail to show the overall
condition and tail number of the air$-ame. Digital images for all other artifacts will be of sufficient detail
to ensure positive identification of each object and its current condition.
12.2. The Borrower agrees to furnish the Lender proof of insurance as required in subparagraph 11.2
for each renewal period.
12.3. The Borrower agrees to furnish a signed inventory as provided by the Lender with the annual
renewal package, which accurately reflects the Property in its possession. Discrepancies in the inventory
provided by the Lender shall be noted on the inventory report by the Borrower to the extent that such notes
accurately reflect the current inventory held by the Borrower. In the event of a dispute, the Lender shall
make the final determination of the current inventory on or near the renewal date and document the
NMUSAF records accordingly.
13.0. Display/Maintenance Requirements.
13.1. No aircraft will be renovated, reconfigured, painted, have markings changed, or tail number
altered, or any parts added, removed, or replaced as part of a planned restoration effort without prior written
approval from the NMUSAF.
13.2. The Borrower agrees that all aircraft, missiles and artifacts on display will have an
identification sign adjacent to each display. For aircraft and missiles note the type, model, and serial
number. If the aircraft or missile has been reconfigured, markings changed, or serial number altered after.
acquisition for display purposes, it will be stated on the sign and noted in all records as follows:
"The (item) on display is actually (nomenclature), Serial No. , but painted and marked
to depict (nomenclature), Serial No. , assigned to the (Unit and/or person) in (location or
theater) during (year)."
13.3., The sign will state that the item is part of the NMUSAF collection as follows:
"This (artifact/object) is on loan from the National Museum of the United States Air Force."
13.4. For aircraft on which the serial number has been altered for display purposes with prior written
approval, the mission, design and series (e.g. F -100C or 174C) along with the original serial number will
be stenciled in two inch letters using contrasting paint colors on the fuselage under the horizontal stabilizers.
13.5. All record keeping will reflect the true serial number.
14.0. Radioactive Components.
14.1. Completion of Section 2 of Air Force Form 3580, (USAF Museum Aerospace Vehicle Static
Display Acceptance Condition and Safety Certificate), or comparable .certification indicating that a
complete radioactive material survey has been accomplished shall be included in the official file.
Revised November 2018 4
NATIONAL MUSEUM of the U.S. AIR FORCE
INVENTORY REPORT
Loan Account Number SDA0282
09 -Jan -20 RCS: HAF-HO(A) 880
ACCESSION # NOMENCLATURE Value j
SD -2000-0079 AIRCRAFT, F-101B(GF), 59-0430 $21,000
I certify that the above listed items shown .ori Pages 1 through 1 ' .
have been accounted for with any discrepancies, so noted.
Signature:
(Historical Property Custodian) (Date)
Typed or Printed Name
Typed or Printed Title
i
I
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute the necessary
documents to renew the loan agreement with the National Museum of the United States
Air Force for the jet on display at Babe D. Zaharias Park.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -
BEAUMONT
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS FEBRUARY 18, 2020 1:30 PM
AGENDA
:\_p wCox$]_�111 DW
* Invocation Pledge Roll Call
Presentations and Recognitions
Public Comment: Persons may speak on scheduled agenda items 1 and 2/Consent
Agenda
Consent Agenda
GENERAL BUSINESS
1. Consider .adopting a resolution nominating ExxonMobil Oil Corporation for an
Enterprise Project Designation under the Texas Enterprise Zone. Program for its
Chemical Plant, Polyethylene Plant, and -Lubricant Blending and Packaging Plant -
located at 2275 Gulf States Road
2. Consider adopting a resolution.nominating ExxonMobil Oil Corporation for an
Enterprise Project Designation under the Texas Enterprise Zone Program for its
Refinery located at 1795 Burt Street
COMMENTS
* Public Comment (Persons are limited to 3 minutes)
Councilmembers/City Manager/City Attorney comment on various matters
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or
services are requested to contact Kaltrina Minick at 880-3777.
1
February 18, 2020
Consider adopting a resolution nominating ExxonMobil Oil Corporation for an Enterprise
Project Designation under the Texas Enterprise Zone Program for its Chemical Plant,
Polyethylene Plant, and Lubricant Blending and Packaging Plant located at 2275 Gulf States
Road
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Chris Boone, Planning and Community Development Director
MEETING DATE: February 18, 2020
REQUESTED ACTION:. Council consider adopting a resolution nominating ExxonMobil
Oil Corporation for an Enterprise Project Designation under the
Texas Enterprise Zone Program for its Chemical Plant,
Polyethylene Plant, and Lubricant Blending and Packaging Plant
located at 2275 Gulf States Road.
BACKGROUND
Chapter 2303 of the Texas Government Code provides for the Texas Enterprise Zone Program as
an economic development tool for cities to partner with the State of Texas to promote job creation
and capital investment within economically distressed areas. If awarded, companies are eligible
for State sales and use tax refunds on qualified expenditures for up to five (5) years, with no cost to
the jurisdiction. The refunded amount is based upon a formula related to the amount of capital
investment and the number of jobs created or retained. In addition, the company agrees to hire a
minimum of 35% of the new employees from within economically distressed areas of Beaumont.
Confirmation of this requirement will be the responsibility of the company and the Texas
Comptroller's office. The Planning and Community Development Director of the City will serve
as the required liaison between the City, the Enterprise Zone Project and the State for the
Enterprise Zone Projects.
ExxonMobil Oil Corporation requests to participate in the Texas Enterprise Zone Program as an
enterprise project for its Chemical Plant, Polyethylene Plant and Lubricant Blending and
Packaging Plant which are just outside of the City of Beaumont located at 2275 Gulf States Road,
Beaumont, Texas 77701. However, the City has the ability to sponsor such applications. The
"enterprise project" status refers to a project capital investment between $5,000,000 to
$149,999,999 or more and a potential maximum refund amount of $1,250,000 for the creation or
retention of a maximum of five hundred (500) jobs.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the resolution.
Exxon Mobil Corporation
Tax Department
P.O. Box 133366
Spring, TX 77393-3366
832-625-4284 Telephone
January 22, 2020
Honorable Becky Ames
City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704-3827
Office of the Governor
Texas Economic Development Bank
Texas Enterprise Zone Program
P.O. Box 12428
Austin, Texas 78711
Martha Castro
Assistant Secretary
Tax Reporting & Analysis Center
E*onMobil
Re: ExxonMobil Oil Corporation Enterprise Project Description and Request for Enterprise
Project Designation and Retained Job Benefit
Dear Mayor Ames and Texas Economic Development Bank:
ExxonMobil Oil Corporation ("ExxonMobil" or "EMOC" or the "Company") hereby requests
your consideration of ExxonMobil Oil Corporation for nomination as an Enterprise Project for
existing jobs to be retained and new jobs to be created at its integrated Beaumont Chemical
Plant, Polyethylene Plant, and Lubricant Blending and Packaging Plant. Below is a summary of
key information on the Company, the Beaumont investments, and critical issues related to the
industry. A designation as an Enterprise Project and potential tax savings for the Company are
important to the Company and the community, facilitating improvements to enhance
manufacturing performance, promote operating efficiency, and meet changing consumer
demand. The Company estimates capital expenditures of more than $50 million during the
course of these improvements over the upcoming five years.
Exxon Corporation was incorporated in the State of New Jersey in 1882. On November 30, 1999,
Mobil Corporation and Exxon Corporation merged to form Exxon Mobil Corporation
("ExxonMobil" or "EMC"), an international oil and gas corporation headquartered in Irving,
Texas, with the Upstream, Downstream, and Chemical operations based in the Houston area and
Texas manufacturing facilities in Beaumont, Baytown, and Mont Belvieu. In 2018, ExxonMobil
generated earnings of $21 billion and cash flow from operations and asset sales of $40 billion.
ExxonMobil, employs more than 26,000 employees in Texas and more than 78,000 worldwide.
Exxon Mobil Corporation is the parent company of ExxonMobil Oil Corporation, and the
companies maintain separate payroll and tax records for the business activity at the Beaumont
site.
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 2
ExxonMobil's principal business is energy, involving the exploration for and production of crude
oil and natural gas, manufacture of petroleum products, and transportation and sale of crude oil,
natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of basic
petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a
wide variety of specialty products. Affiliates of ExxonMobil conduct extensive research
programs in support of these businesses. Divisions and affiliated companies of ExxonMobil
operate or market products in the United States and about 200 other countries and territories.
As one of the world's largest publicly traded energy providers and chemical manufacturers,
ExxonMobil develops and applies next -generation technologies to help safely and responsibly
meet the world's growing needs for energy and high-quality chemical products. ExxonMobil's
business spans various hydrocarbon value chains from end-to-end, involving production of raw
materials into high value fuels, lubricants, chemical products, and unique customer applications.
Our integrated business provides additional scale, allows us to share support organizations and
facility infrastructure, and capture synergies in organizational capabilities and competencies. Our
North American Upstream business produces oil and natural gas in the Permian and other basins.
Permian crude volumes are transported via integrated midstream assets to refineries and
chemical complexes along the U.S. Gulf Coast, where they are upgraded. to higher -value fuels
and products for global markets. Our Upstream business is one of the largest and most diverse
upstream companies, with active presence in 41 countries. With a diverse portfolio, we are active
in all aspects of the Upstream, from exploring, developing, and producing, to marketing
hydrocarbon resources around the world. Our Downstream business is one of the world's largest
integrated refiners and marketers of fuels and lubricants. Our portfolio includes refining and
lubricant blending facilities in 25 countries. We are one of the largest integrated refiners and
marketers of fuels and lube basestocks, as well as a leading manufacturer of petroleum products
and finished lubricants. Our Chemical business is one of the most profitable chemical
companies, with operations in 16 countries.
ExxonMobil's principal business is energy, involving the exploration for and production of crude
oil and natural gas, manufacture of petroleum products, and transportation and sale of crude oil,
natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of basic
petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a
wide variety of specialty products. Affiliates of ExxonMobil conduct extensive research
programs in support of these businesses. Divisions and affiliated companies of ExxonMobil
operate or market products in the United States and about 200 other countries and territories.
Since its beginnings during the Spindletop oil booms -ExxonMobil in Beaumont -has- contributed
to the economic and social landscape of southeast Texas. We provide quality jobs,
technologically innovative products, and a commitment to help develop the community where
we work and live.
The Beaumont petrochemical manufacturing complex, which consists of the refinery, chemical
plant, polyethylene plant, and lubricant blending and packaging plant, has grown to 2,700 acres.
The refinery, chemical plant, and lubricant blending and packaging plant are located on
- approximately 2,400 acres near downtown Beaumont. The polyethylene plant, established in
1977, occupies approximately 300 acres west of Beaumont. More than 2,100 employees work at
the facilities at the Beaumont complex, along with about 3,000 contractors, depending on
construction and turn -around activity.
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 3
The Beaumont Refinery processes 366,000 barrels of crude oil per day and produces 2.8 billion
gallons of gasoline annually. The Beaumont Chemical Plant, which is located at 2775 Gulf States
Road, produces building-block chemicals, such as ethylene and propylene, synthetic fluids and
lubricant base stocks, and more than 25 different types of zeolite catalyst. In addition, the
Chemical Plant produces the feed stock for the Beaumont Polyethylene Plant and the base stock
for Mobil 1 automotive oil. The Beaumont Lubricant Blending and Packaging Plant, which is
located at 1795 Burt Street, processes 200 million gallons of finished lubricant and base stock
throughput annually. It manufactures 365 lube oil products in 1,250 package combinations and
69 grease products in 230 package combinations, including synthetic oil and greases used in the
wind turbine industry, and is the only manufacturer of Mobil aviation greases. Mobil 1, the
world's leading synthetic motor oil, is manufactured and packaged at the Beaumont Lubricant
Blending and Packaging Plant. The Beaumont Polyethylene Plant, which is located at 11440
Highway 90, produces granular and pelletized polyethylene, which is used in the manufacture of
plastic products. Because they are highly integrated, EMOC's Beaumont Chemical Plant,
Polyethylene Plant, and Lubricant Blending and Packaging Plant will be combined on a single
Enterprise Project Application.
The safety, health and security of employees, contractors, and neighbors in the surrounding
community are the top priority for ExxonMobil in Beaumont. We have reduced overall
emissions by approximately 70 percent since 2002, have invested more than $1 billion dollars in
environmental performance measures over the last 15 years, have reduced nitrogen oxide
emissions by 600 tons per year since the installation of three cogeneration plants in 2005, and
have reduced sulfur dioxide emissions by 10,000 tons per year since the installation of a wet gas
scrubber in 2005.
Exxon1\4obil plans to spend more than $20 billion over 10 years to build and expand
manufacturing facilities on the U.S. Gulf Coast. More than $1.5 billion of that expansion is
already underway in Beaumont, with the construction of a new production unit at the
Polyethylene Plant and major expansion projects at the Beaumont refinery. A new production
line has been added to the Polyethylene Plant that will increase polyethylene capacity by 650,000
tons per year, or by 65 percent, allowing the plant to produce almost 1.7 million tons of
pelletized polyethylene that will be shipped by rail to manufacturers across the country. The
refinery's recently completed SCANfiner (Selective Cat Naphtha Hydrofining) project will
increase production of ultra-low fuels by approximately 45,000 barrels per day. The purpose of
SCANfiner is to take out sulfur in fuels while meeting environmental standards. Additionally,
improvements to the ISOM unit will enable increased production of supreme gasoline.
Isomerization is a process that converts aligned hydrocarbons to provide higher octane for motor
gasoline blending. -
ExxonMobil recently broke ground for construction of a new unit to expand the Beaumont
Refinery to increase light crude refining capacity by more than 65 percent, or 250,000 barrels per
day, with startup expected by 2022. This third crude unit within the facility's existing footprint
will expand light crude oil refining, supported by the increased crude oil production in the
Permian Basis. The project is estimated to create up to 1,850 construction -related jobs employed
by contractors during construction and an additional approximately 8 permanent jobs employed
by ExxonMobil once completed. The estimated $1.3 billion in improvements will include all
process facilities, infrastructure and auxiliary equipment and other infrastructure additions
related to the project, including fractionation units, including a Crude Distillation Tower; a new
diesel hydro -treating unit; a new jet hydro -treating unit and related facilities.
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 4
Additional planned investments at the Beaumont Chemical Plant, Polyethylene Plant, and
Lubricant Blending and Packaging Plant will allow the plants to continue to enhance plant safety
and environmental performance and reduce plant energy consumption. These capital investments
include the installation of new machinery and equipment to enhance recovery systems, energy
utilization, manufacturing efficiency, and manufacturing production, as well as improvements to
meet higher internal safety and environmental standards. The Company estimates capital
expenditures of more than $50 million during the course of these planned investments.
There are currently 602 full-time jobs at the Beaumont Chemical Plant, 263 full-time jobs at the
Beaumont Polyethylene Plant, and 190 full-time jobs at the Beaumont Lubricant Blending and
Packaging Plant — a total of 1,055 jobs, and the Company plans to add a total of approximately
21 new full-time jobs at these plants. For various business reasons, these employees and those at
other plants and operations are technically employees of EMOC's parent company, EMC, which
serves as the related companies' common paymaster. As such, EMC will be a participating entity
in connection with EMOC's Enterprise Project Application for the Beaumont Chemical Plant,
Polyethylene Plant, and Lubricant Blending and Packaging Plant. ExxonMobil requests that the
Beaumont Chemical Plant, Polyethylene Plant, and Lubricant Blending and Packaging Plant
receive a nomination for an Enterprise Project Designation for both new and retained jobs.
ExxonMobil qualifies for the retained jobs benefit under Texas Government Code Section
2303.406(a)(4)(D), because it has been and will continue to be able to employ individuals who
are enterprise zone residents, economically disadvantaged individuals, or veterans, as provided in
Section 2303.402. A breakdown of the types of jobs to be retained for benefit is attached to the
Enterprise Project Application.
ExxonMobil appreciates the opportunity to work with you to further the purposes of the Texas
Enterprise Zone Program. If you have any questions, please contact Mona Shoemate, at 512-335-
5900, ext. 1313.
Assistant Secretary
Exxon Mobil Corporation
RESOLUTION NO.
WHEREAS, the City of Beaumont (City) has previously passed Ordinance No
11-087 electing to participate in the Texas Enterprise Zone Program, and the local
incentives offered under this resolution are the same on this date as were outlined in
Ordinance No. 11-087; and,
WHEREAS, the Office of the Governor Economic Development and Tourism
through the Economic Development Bank (Bank) will consider ExxonMobil Oil
Corporation as an enterprise project pursuant to a nomination and an application made
by the City; and,
WHEREAS, the City desires to pursue the creation of the proper economic and
social environment in order to induce the investment of private resources in productive
business enterprises located in the City and to provide employment to residents of
enterprise zones and to other economically disadvantaged individuals; and,
WHEREAS, pursuant to Texas Government Code, Chapter 2303, cited as the
Texas Enterprise Zone Act, (the "Act"), ExxonMobil Oil Corporation has applied to the
City for designation as an enterprise project; and,
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act at its
Chemical Plant, Polyethylene Plant, and Lubricant Blending and Packaging Plant
located at 2275 Gulf States Road on the following grounds:
1. ExxonMobil Oil Corporation is a "qualified business" under Section 2303.402 of
the Act since it will be engaged in the active conduct of a trade or business at a
qualified business site located outside of an enterprise zone and at least thirty-
five percent (35.0%) of the business' new employees will be residents of an
enterprise zone, economically disadvantaged individuals, or veterans; and,
2. There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities within the area; and,
3. The designation of ExxonMobil Oil Corporation as an enterprise project will
contribute significantly to the achievement of the plans of the City for
development and revitalization of the area
; and,
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for
tax relief and other incentives adopted by the City and nominates ExxonMobil Oil
Corporation for enterprise project status on the grounds that it will be located at the
qualified business site, will create a higher level of employment, economic activity and
stability; and,
WHEREAS, the City finds that it is in the best interest of the City to nominate
ExxonMobil Oil Corporation as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the findings of the City and its actions approving this resolution taken at
the council meeting are hereby approved and adopted; and,
BE IT FURTHER RESOLVED THAT ExxonMobil Oil Corporation is a "qualified
business," as defined in Section 2303.402' of the Act, and meets the criteria for
designation as an enterprise project, as set forth in Chapter 2303, Subchapter F of the
Act for its Chemical Plant, Polyethylene Plant, and Lubricant Blending and Packaging
Plant located at 2275 Gulf States Road; and,
BE IT ALSO RESOLVED THAT the enterprise project shall take effect on the
date of designation of the enterprise project by the agency and terminate five years from
the date of designation.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -
2
February 18, 2020
Consider adopting a resolution nominating ExxonMobil Oil Corporation for an Enterprise
Project Designation under the Texas Enterprise Zone Program for its Refinery located at 1795
Burt Street
BEAUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Chris Boone, Planning and Community Development Director
MEETING DATE: February 18, 2020
REQUESTED ACTION: Council consider adopting a resolution nominating ExxonMobil
Oil Corporation for an Enterprise Project Designation under the
Texas Enterprise Zone Program for its Refinery located at 1795
Burt Street.
BACKGROUND
Chapter 2303 of the Texas Government Code provides for the Texas Enterprise Zone Program as
an economic development tool for cities to partner with the State of Texas to promote j ob creation
and capital investment within economically distressed areas. If awarded, companies are eligible
for State sales and use tax refunds on qualified expenditures for up to five (5) years, with no cost to
the jurisdiction. The amount of the refund is based upon a formula related to the amount of
capital investment and the number of jobs created or retained. In addition, the company agrees to
hire a minimum of 25% of the new employees from within economically distressed areas of
Beaumont. Confirmation of this requirement will be the responsibility of the company and the
Texas Comptroller's office. The Planning and Community Development Director of the City will
serve as the required liaison between the City, the Enterprise Zone Project and the State for the
Enterprise Zone Projects.
ExxonMobil Oil Corporation requests to participate in the Texas Enterprise Zone Program as an
enterprise project for its Refinery which is just outside of the City of Beaumont located at 1795
Burt Street, Beaumont, Texas 77701. However, the City has the ability to sponsor such
applications. The "enterprise project" status refers to a project capital investment amount between
$5,000,000 to $149,999,999 or more and a potential maximum refund amount of $1,250,000 for
the creation or retention of a maximum of five hundred (500) jobs.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the resolution.
Exxon Mobil Corporation
Tax Department
P.O. Box 133366
Spring; TX 77393-3366
832-625-4284 Telephone
January 22, 2020
Honorable Becky Ames
City of Beaumont
P.O. Box 3827
Beaumont, Texas 77704-3827
Office of the Governor
Texas Economic Development Bank
Texas Enterprise Zone Program
P.O. Box 12428
Austin, Texas 78711
Martha Castro
Assistant Secretary
Tax Reporting & Analysis Center
E�onMobi9
Re: ExxonMobil Oil Corporation Enterprise Project Description and Request for Enterprise
Project Designation and Retained Job Benefit
Dear Mayor Ames and Texas Economic Development Bank:
ExxonMobil Oil Corporation ("ExxonMobil" or "EMOC" or the "Company") hereby requests
your consideration of ExxonMobil Oil Corporation for nomination as an Enterprise Project for
existing jobs to be retained and new jobs to be created by the Company at its refinery located at
1795 Burt Street, Beaumont, Texas 77701. Below is a summary of key information on the
Company, the Beaumont investments, and critical issues related to the industry. A designation as
an Enterprise Project and potential tax savings for the Company are important to the Company
and the community. In order to continue our efforts to enhance manufacturing performance and
promote operating efficiency as well as meet changing consumer demand, the Company plans to
further expand the refinery, enhance recovery systems, improve manufacturing efficiency and
production, retain existing jobs, and create new jobs. The Company estimates capital
expenditures of approximately $1.3 billion during the course of these planned investments, _
Exxon Corporation was incorporated in the State of New Jersey in 1882. On November 30, 1999,
Mobil Corporation and Exxon Corporation merged to form Exxon Mobil Corporation
("ExxonMobil" or "EMC"), an international oil and gas corporation headquartered in Irving,
Texas, with the Upstream, Downstream, and Chemical operations based in the Houston area and
Texas manufacturing facilities in Beaumont, Baytown, and Mont Belvieu. In 2018, ExxonMobil
generated earnings of $21 billion and cash flow from operations and asset sales of $40 billion.
ExxonMobil employs more than 26,000 employees in Texas and more than 78,000 worldwide.
Exxon Mobil Corporation is the parent company of ExxonMobil Oil Corporation, and the
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 2
companies maintain separate payroll and tax records for the business activity at the Beaumont
site.
ExxonMobil's principal business is energy, involving the exploration for and production of crude
oil and natural gas, manufacture of petroleum products, and transportation and sale of crude oil,
natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of basic
petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a
wide variety of specialty products. Affiliates of ExxonMobil conduct extensive research
programs in support of these businesses. Divisions and affiliated companies of ExxonMobil
operate or market products in the United States and about 200 other countries. and territories.
As one of the world's largest publicly traded energy providers and chemicalmanufacturers,
ExxonMobil develops .and applies next -generation technologies to help safely and responsibly
meet the world's growing needs for energy and high-qualitychemical products. ExxonMobil's
business spans various hydrocarbon value chains from end-to-end, involving production of raw
materials into high value fuels, lubricants, chemicalproducts, `and unique customer applications.
Our integrated business provides additional scale, allows us to share support organizations and
facility infrastructure, and capture synergies in organizational capabilities and competencies. Our.
North American Upstream business produces oil and natural gas in the Permian and other basins.
Permian crude volumes are transported via integrated midstream assets to refineries and.
chemical complexes along the U.S. Gulf Coast; where they are upgraded to higher -value fuels
and products for global markets. Our Upstream business is one of the largest and most diverse
upstream companies, with active presence in 41 countries. With a diverse portfolio-, we are active
in all aspects of the Upstream, from exploring, developing; and producing, to marketing .
hydrocarbon resources around the world. Our Downstream business is one of the world's largest
integrated refiners and marketers of fuels and lubricants. Our portfolio includes refining and
lubricant blending facilities in 25 countries. We are one of the largest integrated refiners and
marketers of fuels and lube.basestocks, aswell as a leading manufacturer'of petroleum products
and finished lubricants. Our Chemical business is one of the most profitable chemical
companies, with operations in 16 countries.
Since its beginnings during the Spindletop oil boom, ExxonMobil in Beaumont has contributed.
to the economic and social landscape of southeast Texas. We provide quality jobs,
technologically innovative products, and a commitment to help develop the community where
we work and. live.
The Beaumont petrochemical manufacturing complex, which consists of the refinery, chemical
plant, polyethylene plants and lubricant blending and packagingplant, -has grown -to- 2;700 acres:
The refinery, chemical plant and lube plant are located on approximately 2,400 acres near
downtown Beaumont. The polyethylene plant, established in 1977, occupies approximately 300
acres west of Beaumont. More than 2,100 employees work: at the facilities at the Beaumont
complex, along with about 3,000 contractors,depending on construction and turn -around
activity.
The Beaumont Refinery processes 366,000 barrels of crude oil per day and produces 2.8 billion
gallons of gasoline annually. The Beaumont Chemical Plant produces building-block chemicals,
such as ethylene and propylene, synthetic fluids _and lubricant base -stocks, and more than 25
different types of zeolite catalyst. The Beaumont Lubricant Blending and Packaging Plant
manufactures lube oil and greases, including those used in the wind turbine industry, and is the
only manufacturer of Mobil aviation greases. Mobil 1, the world's leading synthetic motor oil, is
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 3
manufactured and packaged at the Beaumont complex. The Beaumont Polyethylene Plant
produces granular and pelletized polyethylene, which is used in the manufacture of plastic
products.
The safety, health, and security of employees, contractors, and neighbors in the surrounding
community are the top priority for ExxonMobil in Beaumont. We have reduced overall
emissions by approximately 70 percent since 2002, have invested more than $1 billion dollars in
environmental performance measures over the last 15 years, have reduced nitrogen oxide
emissions by 600 tons per year since the installation of three cogeneration plants in 2005, and
have reduced sulfur dioxide emissions by 10,000 tons per year since the installation of a wet gas'
scrubber in 2005.
ExxonMobil plans to spend more than $20 billion over 10 years to build and expand
manufacturing facilities on the U.S. Gulf Coast. More than $1.5 billion of that expansion is
already underway in Beaumont, with the construction of a new production unit at the
Polyethylene Plant and major expansion projects at the Beaumont Refinery. The Polyethylene
Plant will produce almost 1.7 million tons of pelletized polyethylene that will be shipped by rail
to manufacturers across the country. The refinery's recently completed SCANfiner (Selective
Cat Naphtha Hydrofining) project will increase production of ultra-low fuels by approximately
45,000 barrels per day. The purpose of SCANfiner is to take out sulfur in fuels'while meeting
environmental standards. Additionally, improvements to the ISOM unit will enable increased
production of supreme gasoline. Isomerization is a process that converts aligned -hydrocarbons to
provide higher octane for motor gasoline blending.
ExxonMobil recently broke ground for construction of a new unit to expand the Beaumont
Refinery to increase light crude refining capacity by more than 65 percent, or 250,000 barrels per
day, with startup expected by 2022. This third crude unit within the facility's existing footprint
will expand light crude oil refining, supported by the increased crude oil production in the
Permian Basis. The project is estimated to create up to 1,850 construction -related jobs employed
by contractors during construction and an additional 8 permanent jobs employed by ExxonMobil
once completed. The improvements will include all process facilities, infrastructure and auxiliary
equipment and other infrastructure additions related to the project, including fractionation units,
including a Crude Distillation Tower; a new diesel hydro -treating unit; a new jet hydro -treating
unit and related facilities. The estimated project investments during the designation period are
comprised of building construction material costs of $150 million, construction labor costs of
$500 million, building expansion/renovation costs of $110 million, machinery and equipment
costs of $110 million, and other costs, including engineering, overhead, etc., of $430 million, for
a total of approximately $1.3 billion. Additional planned investments at the Beaumont Refinery
will allow the refinery to continue to enhance plant safety and environmental performance and
reduce plant energy consumption. These capital investments include the installation of new
machinery and equipment to enhance recovery systems, energy utilization, manufacturing
efficiency, and manufacturing production, as well as improvements to meet higher internal safety
and environmental standards.
There are currently 1,125 full-time jobs at the Beaumont Refinery. For various business reasons,
these employees and those at other plants and operations are technically employees of EMOC's
parent company, EMC, which serves as the related companies' common paymaster. As such,
EMC'will be a participating entity in connection with EMOC's Enterprise Project Application for
the Beaumont Refinery. ExxonMobil requests that the BeaumontRefineryreceive an Enterprise
Project Designation for both new and retained jobs. The company qualifies for the retained jobs
ExxonMobil Project Description and Request for Enterprise Project Designation and Retained Job Benefit
Page 4
benefit under Texas Government Code Section 2303.406(a)(4)(D), because it has been and will
continue to be able to employ individuals who are enterprise zone residents, economically
disadvantaged individuals, or veterans, as provided in Section 2303.402. A breakdown of the
types of jobs to be retained for benefit is attached to the Enterprise Project Application.
ExxonMobil appreciates the opportunity to work with you to further the purposes of the Texas
Enterprise Zone Program. If you have any questions, please contact Mona Shoemate, at_512-335-
5900, ext. 1313.
Assistant Secretary
Exxon Mobil Corporation
Example of Nominating Resolution for ExxonMobil Oil Corporation's Beaumont Refinery.
This resolution nominates the Refinery for an enterprise project designation. The Refinery
is located in an enterprise zone.
RESOLUTION NO. ###
WHEREAS, the City of Beaumont (City) has previously passed Ordinance No. 11-087 electing to
participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution
are the same on this date as were outlined in Ordinance No. 11-087;
WHEREAS, the Office of the Governor Economic Development and Tourism (EDC) through the
Economic Development Bank (Bank) will consider ExxonMobil Oil Corporation as an enterprise project
pursuant to a nomination and an application made by the City;
WHEREAS, the City desires to pursue the creation of the proper economic and social environment in
order to induce the investment of private resources in productive business enterprises located in the City
and to provide employment to residents of enterprise zones and to other economically disadvantaged
individuals;
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas
Government Code (the "Act"), ExxonMobil Oil Corporation has applied to the City for designation as an
enterprise. project;
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for designation as an
enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds:
ExxonMobil Oil Corporation is a "qualified business" under Section 2303.402 of the Act since it
will be engaged in the active conduct of a trade or business at a qualified business site located in
an enterprise zone and at least twenty-five percent (25.0%) of the business' new employees will
be residents of an enterprise zone, economically disadvantaged individuals, or veterans; and
2. There has been and will continue to be a high level of cooperation between public, private, and
neighborhood entities within the area; and
3. The designation of ExxonMobil Oil Corporation as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and revitalization of the
area.
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for tax relief and other
incentives adopted by the City and nominates ExxonMobil Oil Corporation for enterprise project status
on the grounds that it will be located at the qualified business site, will create a higher level of
employment, economic activity and stability; and
WHEREAS, the City finds that it is in the best interest of the City to nominate ExxonMobil Oil
Corporation as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:
That the findings of the City and its actions approving this resolution taken at the council
meeting are hereby approved and adopted.
BE IT FURTHER RESOLVED that ExxonMobil Oil Corporation is a "qualified business", as defined in
Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in
Section 2303, Subchapter F of the Act.
BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of designation of
the enterprise project by the agency and terminate five years from the date of designation.
PASSED BY THE CITY COUNCIL of the City of Beaumont this 18'h day of February, 2020.
(SEAL)
Becky Ames
Mayor
THE STATE OF TEXAS
COUNTY OF JEFFERSON
I, of the City of Beaumont, Texas
do hereby certify that the above and foregoing is a true and correct copy of Resolution Number ###
passed by the City of Beaumont City Council on the this 18'h day of February, 2020.
(City Seal)
Tina Broussard, TRMC
City Clerk
THE STATE OF TEXAS
COUNTY OF JEFFERSON
-BEFORE ME, the undersigned authority, on this day personally appeared
of the City of Beaumont, Texas, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the
purposes and consideration therein expressed.
GIVEN under my hand and seal of office this _ day of , 2020
Notary Public, State of Texas
My commission expires:
(Notary Seal)
RESOLUTION NO
WHEREAS, the City of Beaumont (City) has previously passed Ordinance No.
11-087 electing to participate in the Texas Enterprise Zone Program, and the local
incentives offered under this resolution are the same on this date as were outlined in
Ordinance No. 11-087; and,
WHEREAS, the Office of the Governor Economic Development and Tourism
through the Economic Development Bank (Bank) will consider ExxonMobil Oil
Corporation as an enterprise project pursuant to a nomination and an application made
by the City; and,
WHEREAS, the City desires to pursue the creation of the proper economic and
social environment in order to induce the investment of private resources in productive
business enterprises located in the City and to provide employment to residents of
enterprise zones and to other economically disadvantaged individuals; and,
WHEREAS, pursuant to Texas Government Code, Chapter 2303, cited as the
Texas Enterprise Zone Act, (the "Act"), ExxonMobil Oil Corporation has applied to the
City for designation as an enterprise project; and,
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act at its
Refinery located at 1795 Burt Street on the following grounds:
1. ExxonMobil Oil Corporation is a "qualified business" under Section 2303.402 of
the Act since it will be engaged in the active conduct of a trade or business at a
qualified business site located in an enterprise zone and at least twenty-five
percent (25.0%) of the business' new employees will be residents of an
enterprise zone, economically disadvantaged individuals, or veterans; and,
2. There has been and will continue to be a high level of cooperation between
public, private, and neighborhood entities within the area; and,
3. The designation of ExxonMobil Oil Corporation -as an enterprise project will
contribute significantly to the achievement of the plans of the City for
development and revitalization of the area
; and,
WHEREAS, the City finds that ExxonMobil Oil Corporation meets the criteria for
tax relief and other incentives adopted by the City and nominates ExxonMobil Oil
Corporation for enterprise project status on the grounds that it will be located at the
qualified business site, will create a higher level of employment, economic activity and
stability; and,
WHEREAS, the City finds that it is in the best interest of the City to nominate
ExxonMobil Oil Corporation as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the findings of the City and its actions approving this resolution taken at
the council meeting are hereby approved and adopted; and,
BE IT FURTHER RESOLVED THAT ExxonMobil Oil Corporation is a "qualified
business," as defined in Section 2303.402 of the Act, and meets the criteria for
designation as an enterprise project, as set forth in Chapter 2303, Subchapter F of the
Act for its Refinery located at 1795 Burt Street; and,
BE IT ALSO RESOLVED THAT the enterprise project shall take effect on the
date of designation of the enterprise project by the agency and terminate five years from
the date of designation.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 18th day of
February, 2020.
- Mayor Becky Ames -