HomeMy WebLinkAbout06/09/2020 PACKETBEAUMONT
TEXAS
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS CITY HALL 801 MAIN STREET
TUESDAY, JUNE 9, 2020 1:30 PM
CONSENT AGENDA
Approval of minutes — June 2, 2020
Confirmation of board and commission member appointments
A) Approve the purchase of Chest Compression Systems for use in the EMS Division
B) Approve contracts to provide lubricants for use in City vehicles and equipment
C) Authorize the City Manager to execute a lease agreement with the Beaumont Art League
D) Authorize the settlement of the lawsuit styled James "Chad" York et al v. City of
Beaumont et al; Civil Action No. 1: 1 8-cv-00522
E) Authorize the acceptance of a ten foot wide Exclusive Water Line Easement located at
1030 West Cardinal Drive
BEAUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider a resolution approving the purchase of Chest
Compression Systems for use in the EMS Division.
BACKGROUND
The Lucas System delivers vital oxygen to the brain and heart during CPR and is designed to
deliver uninterrupted compressions at a consistent rate and depth helping to improve a patient's
chance for a successful outcome. Additionally, as a new normal due to the COVID=19 pandemic,
the Lucas System will also help decrease the number of first responders being exposed to the
patient as it does not require multiple responders to perform chest compressions.
Pricing for 10 units was obtained from Stryker, of Redmond, Washington in the amount of
$178,766.
Stryker is a sole source provider of this product and provides the warranty on the Lucas Systems.
FUNDING SOURCE
Coronavirus Emergency Supplemental Funding Program.
RECOMMENDATION
Approval of the resolution.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Council hereby approves the purchase of ten (10) Chest Compression
systems for use by the EMS Division from Stryker, of Redmond, Washington, a sole
source provider, in the amount of $178,766.
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.
K0101
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of June,
- Mayor Becky Ames -
BEAUMONT
TO:
FROM:
PREPARED BY:
MEETING DATE:
REQUESTED ACTION:
BACKGROUND
City Council
Kyle Hayes, City Manager
Todd Simoneaux, Chief Financial Officer
June 9, 2020
Council consider a resolution approving contracts to provide
lubricants for -use in City vehicles and equipment.
Bids were solicited for a six-month contract to supply approximately 16,310 gallons of various
lubricants at fixed costs for use by various City departments in maintaining vehicles and
equipment. Specifications allow for a six-month extension upon expiration of the original term at,
the same pricing as awarded herein.
Bids were requested from eight vendors and three responses were received. Specifications stated
that the City could award the contract(s) to multiple vendors as deemed to be in the best interest
of the City. The specifications have been divided into four sections. It is recommended that
Sections 1 and 3 be awarded to Midtex Oil, L.P., of Beaumont in the amount of $38,143.90 and
that Sections 2 and 4 be awarded to Spidle and Spidle Inc., of Port Arthur in the amount of
$99,549.45. Tri -Con was not given local bidder preference for Section 2 because they are not
located within the City limits as required per the policy.
Bid tab is attached.
FUNDING SOURCE
Fleet and Transit Fund.
RECOMMENDATION
Approval of the resolution.
RESOLUTION NO.
WHEREAS, bids were solicited for a six (6) month contract, with an option to renew
for a period of six (6) months, for the purchase of lubricants for use by various City
departments in maintaining vehicles and equipment; and,
WHEREAS, Midtex Oil, L.P., of Beaumont, Texas, submitted a qualified bid for
Section 1 in the unit amounts shown on Exhibit "A," attached hereto, for an estimated total
expenditure of $28,413.90; and,
WHEREAS, Spidle and Spidle, Inc., of Port Arthur, Texas, submitted a qualified
bid for Section 2 in the unit amounts shown on Exhibit "A," attached hereto, for an
estimated total expenditure of $54,736.25; and,
WHEREAS, Midtex Oil, L.P., of Beaumont, Texas, submitted a qualified bid for
Section 3 in the unit amounts shown on Exhibit "A," attached hereto, for an estimated total
expenditure of $9,730.00; and,
WHEREAS, Spidle and Spidle, Inc., of Port Arthur, Texas, submitted a qualified
bid for Section 4 in the unit amounts shown on Exhibit "A," attached hereto, for an
estimated total expenditure of $44,813.20; and,
WHEREAS, City Council is of the opinion that the bids submitted by Midtex Oil,
L.P., of Beaumont, Texas and Spidle and Spidle, Inc., of Port Arthur, Texas, offers the
City the best combination of contract price and additional economic development
opportunities for the municipality created by the contract award, including the employment
of residents of the municipality and increased tax revenues to the municipality and 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 Midtex Oil, L.P., of Beaumont, Texas, for a six (6) month
contract, with an option to renew for a period of six (6) months, for the purchase of
lubricants for use by various City departments in maintaining vehicles and equipment in
the unit amounts shown in Section 1 on Exhibit "A," attached hereto, for an estimated
amount of $28,413.90 be accepted by the City of Beaumont; and,
THAT the bid submitted by Spidle and Spidle, Inc., of Port Arthur, Texas, for a six
(6) month contract, with an option to renew for a period of six (6) months, for the purchase
of lubricants for use by various City departments in maintaining vehicles and equipment
in the unit amounts shown in Section 2 on Exhibit "A," attached hereto, for an estimated
amount of $54,736.25 be accepted by the City of Beaumont; and,
BE IT FURTHER RESOLVED THAT the bid submitted by Midtex Oil, L.P., of
Beaumont, Texas, for a six (6) month contract, with an option to renew for a period of six
(6) months, for the purchase of lubricants for use by various City departments in
maintaining vehicles and equipment in the unit amounts shown in Section 3 on Exhibit
"A," attached hereto, for an estimated amount of $9,730.00 be accepted by the City of
Beaumont; and,
BE IT ALSO RESOLVED THAT the bid submitted by Spidle and Spidle, Inc., of
Port Arthur, Texas, for a six (6) month contract, with an option to renew for a period of six
(6) months, for the purchase of lubricants for use by various City departments in
maintaining vehicles and equipment in the unit amounts shown in Section 4 on Exhibit
"A," attached hereto, for an estimated amount of $44,813.20 be accepted by the City of
Beaumont; and,
BE IT ALSO RESOLVED THAT the City Manager be and he is hereby authorized
to execute a contract with Midtex Oil, L.P., of Beaumont, Texas, and Spidle and Spidle,
Inc., of Port Arthur, Texas, for the purposes described herein.
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.
2020.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of June,
- Mayor Becky Ames -
a
CITY OF BEAUMONT,TEXAS
BEAUMONT PURCHASING DIVISION BID TABULATION
TEXAS
Bid Name: SIX (6) MONTH CONTRACT FOR AUTOMOTIVE LUBRICANTS
Bid Number: MF0420-21
Bid Opening: Thursday, May 28, 2020
Contact Person: Christy Williams, Buyer II
christv.willia ms(a)bea umonttexas. goy
Phone: 409-880-3758
Vendor
City/State
Phone No.
TRI -CON, INC. SPIDLE & SPIDLE, INC. MIDTEX OIL, LP
BEAUMONT PORTARTHUR BEAUMONT
409-835-2237 409-727-4400 409-866-0333
Item No.
APPROX
QTY
DESCRIPTION
Unit
Price
Extended Unit
Price Price
Extended Unit
Price Price
Extended
Price
ENGINEOIL SECTION I
Item 1
3,200 GAL
Engine Oil OW20, 5W20, 1 OW30, I5W-40
(BULK DELIVERIES >250 GALLONS) $ 8.32
$26,624.00 $ 7.85
$` 25,120.00 O 000.00
Item 2
1,000 GAL
Engine Oil OW20, 5W20, l OW30, 15W-40
(55 GALLON DRUMS) $ 8.32
$8,320.00 $ 8.20
$8,200.00 $ 7,26
Item 3
TOTAL Rubia Optima 1300
MANUFACTURER AND BRAND BID for Items 1 and 2 above I SW40 CITGO/CAM2QUAKER S�7AlTIE
Item 4
110 GAL Engine Oil SAE 40 (55 gal drums) $ 3.99 $438.90 $ 8.74 $961.40
Item 5
MANUFACTURER AND BRAND BID: TOTAL Rubia S 30w CITGO/CAM2 SHELL ROOT€L , TI1 40
TOTAL BID SECTION 1 $35,382.90 $34,281.40 $28,,413.,90
TRANSMISSIONFLUID/HYDRAULICOIL'SECTION l_�_.
Item 1 1,300 QT Dexron III 91
(quart containers) S 2.72 $3 536.00 VIEW
$ 3 $87.00 $ 2.23 $2,899.00
Item 2 250 GAL Dexron III bulk deliveries >250 a0 $ 3.99 $997.50 VIIIIIIIIIEST16
2,TS00 $ 7.80 $1,950.00
Item 3 100 GAL Decron III (55 gal drums) $ 5.50 $550.00 $9.26
$9'26, O $ 8.84 $884.00
MANUFACTURER AND BRAND BID for Items 1,2, & 3 above: EiTG0
Item 4 100 QT Mercon 5 (quart containers) $ 2.50 $250.00 $ 5.5.0 $ 0,QO 55 $ 4.79 $479.00
MANUFACTURER AND BRAND BID for Item 5 above:: TOTAL Fluid H3 G)ii[GO PENNZOIL
Item 5 4,700 GAL
Multi-purpose Transmission/Hydraulic 011
(bulk deliveries >250 a0 $ 8.22
$38 634.006-227
F$92 -9,469.00 $ 8.24
$38,728.00
Item 6 500 GAL
Multi-purpose Transmission/Hydraulic Oil
(55 gal drums) $ 8.35
$4,175.00 5 7.35
53,6715..90 $ 9.31
$4,655.00
MANUFACTURER AND BRAND BID for Items 7 & 8 above: TOTAL Dynatrans MP C(TGO
SHELL SPIRAX S4 TXM
Item 7 500 GAL
Caterpillar TO -4 Compatible Lubricants,
SAE l OW (bulk deliveries > 259gallons) $ 3.99
$1 995.009.95
&4;975.00 I $ 7.35
$3,675.00
Item 8 500 GAL
Caterpillar TO -4 Compatible Lubricants,
SAE 50 (bulk deliveries >250gallons) $ 6.99
$3,495.001_=7809
$3,945.00 $ 7.85
$3,925.00
Item 9 275 GAL
Caterpillar TO -4 Compatible Lubricants,
SAE IOW (55 al. drum) $ 3.99
$1,097.25$2,7,22.50
$ 8.29
$2,279.75
Item 10 275 GAL
Caterpillar TO -4 Compatible Lubricants,
SAE 50 (55 gal. drum) $ 9.57
$2,631.75?$W9.1
$2,5211 JrS $ 8.87
$2,439.25
MANUFACTURER AND BRAND BID for Items 10-13 above: TOTAL Dynatrans AC Gil GO Total Dynatrans AC
Item 11 ' DRUM DEPOSIT CHARGE: $0.00S,O:QO $0.00
TOTAL BID SECTION II $57,361.50 INNEEP754,736.2.5 $61,914.00
SYNTHETIC ALLISON TRANSMISSION;F.LUID SECTIONIll. _
Item 1
350 GAL
SHELL SPIRAX 56 ATF A295 AUTOMATIC
TRASNMISSION FLUID DESIGNED SPECIFICALLY
FOR TRANSMISSIONS REQUIRING ALLISON TES
295 FLUIDS $ 44.26
$15,491.00 1 $ 37.50
S 13,125.00
102
$9,.7�i4.Q0
TOTAL BID SECTION III $15,491.00 $13,125.00
$ 9,70.0,0
BMT MUNICIPAL TRANSIT SPECIFIC,LUBRICANTS:SECTION.IV
Item 1
12-18 DRUMS
FULLY FORMULATED 50/50 PREMIXES BLUE
ANTIFREEZE FOR CNG POWERED VEHICLES NO BID
$ 297.80
$3,573.60
Item 2
18 DRUMS
15W40 ENGINE OIL FOR CNG POWERED BUSES $ 668.44 $12.031.92
f$1
=11S
$ 969.00
$17,442.00
Item3
12-18 DRUMS
SYNTHETICAUTOMATICTRANSMISSIONFLUID $ 760.29 $9,123.48
$1,529.00
$18,348.00
Item 4
6-12 DRUMS
15W40 HD ENGINE OIL FOR DIESEL POWERED 8.32/GAL 8.36/GA9.54/GAL
ENGINES 457-1 DR. $2 745.60 4 :9.80%RR.
524.70/DR.i
$3,148.20
Item 5
18 CASES (6 GAL/CASE)
DEXCOOL 50/50 PRE MIXED ORANGE
ANTIFREEZE NO BIDS
31.24
$562.32
Item 6
80 QUARTS
SYNTHETIC 5W30 OIL FOR CNG POWERED
PARATRANSIT VEHICLES $ 3.89 $311.20 $ 8.3.9$67y1.20
NO BID
TOTAL BID SECTION IV $24,212.20
$ 44 813.20
$43,074.12
Bids were solicited from: Tri -Con, Inc., Sun Coast Resources, Apache Oil, Matrix Lubricants, Thomas Petroleum, Spidle & Spidle, Certified Laboratories, Maxx Marka, JAM Distributors, Smarts
Recommended approvals as shown below:
Jeff Harville Date
EXHIBIT "A"
Jonathan Clegg Date
c
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider a resolution authorizing the City Manager to
execute a lease agreement with the Beaumont Art League.
BACKGROUND
The Beaumont Art League is located at 2675 Gulf Street and has a mission of supporting the visual
arts and arts education in southeast Texas.
The City owns the land and building and has leased the property to the Art League since 1977.
The City's current lease with the Art League expires on August 31, 2020. The proposed
agreement would extend the lease by one year.
FUNDING SOURCE
The City will receive $1.00 upon execution of the lease.
RECOMMENDATION
Approval of the resolution.
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RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager, or his designee, be and they are hereby authorized to execute
a Lease Agreement between the City of Beaumont and the Beaumont Art League for the
lease of property located at 2675 Gulf Street for a one (1) year term commencing on
September 1, 2020 and ending on August 31, 2021. The Lease 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.
2020.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of June,
- Mayor Becky Ames -
THE STATE OF TEXAS
COUNTY OF JEFFERSON §
LEASE AGREEMENT
THIS LEASE CONTRACT, dated September 1, 2020, by and between the CITY OF
BEAUMONT, a municipal corporation of Jefferson County, Texas, acting herein by and through
its duly authorized City Manager, hereinafter referred to as LESSOR, and the BEAUMONT ART
LEAGUE, a corporation of Jefferson County, Texas, acting herein by and through its legally
constituted officers, hereinafter referred to as LESSEE;
WITNESSETH:
For and in consideration of the sum of One Dollar ($1.00) cash and the performance by
LESSEE of the covenants and conditions hereinafter recited, LESSOR does by these presents
lease, let and demise unto LESSEE the following described property and improvements thereon,
located within the City of Beaumont, Jefferson County, Texas, and being part of Fair Park, and
more particularly described as follows:
Being a tract of land out of the South Texas State Fair Grounds property in the James
Drake Survey in the City of Beaumont, Jefferson County, Texas, and being more
particularly described as follows:
Beginning at a point lying sixty-seven and sixty-five hundredths feet (67.65') west of the
west line of Gulf Street and three hundred sixty-one and thirty-five hundredths feet
(361.35') north of the north line of Plum Avenue as both are now established in the City of
Beaumont, said point being marked by a one-half inch (1/2") iron rod;
Thence west two hundred two feet (202') to corner marked by a one-half inch (W') iron
rod, said point being at the south edge of an existing concrete walk and being thirty feet
(30') east of the easterly line projected of what is now known as the Agricultural Building;
Page 1 of 6
EXHIBIT "A"
Thence south 00 degrees 03 minutes west along a line parallel with and thirty feet (30') east
of the easterly line of said Agricultural Building ninety-six and sixty-five hundredths feet
(96.65') to corner marked by a one-half inch (W') iron rod, said point being in line with the
southerly line of said Agricultural Building projected eastward;
Thence south 89 degrees 54 minutes east along the southerly line of said Agricultural
Building projected eastward two hundred two feet (202') to corner marked by a one-half
inch (A") iron rod;
Thence north 00 degrees 03 minutes east ninety-seven feet (97') to the place of beginning;
The above described tract, herein referred to as Leased Premises, contains 0.449 acres and
improvements, more or less;
1.
The lease shall be for a term of one (1) year, beginning September 1, 2020 and ending on August
31, 2021, unless terminated as provided for herein.
PA
The Leased Premises (see Exhibit "A") hereunder shall be used by the LESSEE for the
purpose of advancing the arts and for such other further purposes as the LESSEE desires in the
furthering of fine arts.
0
, LESSOR reserves the right to park motor vehicles on the Leased Premises in connection with
its use of the premises for purposes of advancing the arts.
Q
LESSOR, its employees and agents, shall have the right at all times to go on or about
the said premises for the purpose of inspecting same, or for any other legitimate purpose.
Page 2 of 6
5.
LESSEE shall not make alterations, additions or improvements to the Leased Premises or
buildings thereon without the prior written approval of the City Manager of LESSOR or his
DESIGNEE, and all such alterations, improvements and additions made by LESSEE upon the
Leased Premises shall remain upon the Leased Premises at the expiration of this lease and become
the property of LESSOR.
1.1
LESSEE shall be responsible for any and all maintenance, repairs, and improvements,
either major or minor, that are necessary to the Leased Premises and LESSEE agrees to keep the
Leased Premises in a good state of repair throughout the term of this lease or any extension thereof.
LESSOR agrees to pay all utility charges during the term of this lease and any extensions. On the
expiration of this lease, LESSEE shall deliver the premises described herein and all improvements
thereon to LESSOR in good condition.
LESSOR may, at its own cost and expense, make improvements or repairs to the Leased
Premises, subject to the appropriation of City funds, although LESSOR is under no obligation to
do so. The LESSOR shall consult with LESSEE prior to making said improvements.
7.
LESSEE shall not sublease or rent any portion of the Leased Premises without the prior
written consent of the LESSOR.
8.
LESSEE agrees to indemnify and save the LESSOR free and harmless from all claims or
liability for damages to any person or persons for injuries to person or personal
Page 3 of 6
injuries resulting in the death of any person, or loss or damage to property occasioned
by or in connection with the use of the premises hereby rented caused by any source
whatsoever, expressly including claims arising from the alleged negligence of LESSOR.
LESSEE hereby assumes full responsibility for the character acts and conduct of all
persons admitted to said premises, or to any portion of said building by the consent of
said LESSEE, by or with the consent of the said LESSEE.
0
LESSEE agrees to obtain and maintain in full force and effect for the duration of this
Agreement, and any extension thereof, Commercial General Liability Insurance on the Leased
Premises in the following types and amounts:
8.1
Premises Operations
8.2
Independent Contractors
8.3
Personal Injury
8.4
Advertising Injury
8.5
Medical Payments
8.6
Fire Legal Liability
8.7
Contractual Liability
Combined single limit for bodily
injury and property damage of
$500,000.00 per occurrence with an
aggregate limit of $500,000.00
$5,000.00
$50,000.00
$500,000.00
The cost of said policies shall be borne by LESSEE, and said policies shall name LESSOR
as a named insured as well as LESSEE. Policies shall provide for fifteen (15) days' notice to
LESSOR for cancellation, non -renewal or material change.
LESSEE shall further maintain fire insurance with extended coverage endorsements on a
replacement basis for the full insurable value covering all of the Leased Premises, with the LESSOR
named as co -loss payee. This policy shall be for a term of not less than one (1) year and renewed
annually prior to expiration so long as this lease is in existence. Certificates evidencing said insurance
Page 4 of 6
shall be provided to the LESSOR. The certificate shall provide for a minimum of fifteen (15) days'
notice to LESSOR of any cancellation of the insurance required herein. Should the Leased Premises
or any.portion thereof be wholly or partially destroyed or lost by fire, explosion, windstorm, theft or
any other cause, any and all monies payable and collectible on policies of insurance covering the
Leased Premises shall be paid to LESSOR. LESSOR shall have sole discretion concerning whether
to rebuild or repair the Leased Premises or take no action to rebuild or repair. LESSOR has no
insurance on contents within the Leased Premises. Should LESSEE desire to insure contents,
LESSEE must provide such insurance at its own cost and expense.
Should LESSOR opt not to repair the Leased Premises after an insured loss then LESSEE
may at its option terminate this lease and whether it terminates or not, shall have no responsibility
to repair the damages caused by the insured loss to the Leased Premises, notwithstanding the
provisions of Paragraph 6.
10.
At the expiration of the term of this lease, LESSEE may hold over on a month-to-month
basis only under the same terms and conditions as set out in this lease.
Either party may terminate the lease agreement upon sixty (60) days' notice in writing to
the other party. In the event of termination LESSEE agrees to remove its property from the leased
premises and to leave the premises in good repair without damage.
Page 5 of 6
12.
LESSOR reserves the right to enter into Agreements with other entities at any time during the
term of this Agreement, or any extension thereof, which may limit access to Leased Premises as
described.
13.
This lease is made subject to all provisions of the City Charter of the City of Beaumont,
Texas.
EXECUTED in duplicate originals this day of
LESSOR:
CITY OF BEAUMONT ATTEST:
KYLE HAYES, CITY MANAGER
LESSEE:
BEAUMONT ART LEAGUE
JERRY F. BLOUNT, President/Chairman
Page 6 of 6
2020.
TINA BROUSSARD, CITY CLERK
ATTEST:
(Typed or Printed Name & Signature)
ED
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Tyrone E. Cooper, City Attorney
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider a resolution authorizing the settlement of the
lawsuit styled James "Chad" York et al v. City of Beaumont et al;
Civil Action No. 1: 1 8-cv-00522.
BACKGROUND
The lawsuit styled James "Chad" York et al v. City of Beaumont et al; Civil Action No.
1: 1 8-cv-00522, was presented and discussed in Executive Session held on May 12, 2020. The
City Attorney is requesting authority to settle this suit in the amount of $50,000.00.
FUNDING SOURCE
General Liability Fund.
RECOMMENDATION
Approval of resolution.
RESOLUTION NO.
WHEREAS, the lawsuit styled James "Chad" York, et al v. City of Beaumont, et al;
Civil Action No. 1: 1 8-cv-00522, was discussed in Executive Session properly called and
held Tuesday, May 12, 2020; and,
WHEREAS, the City Attorney is requesting authority to settle the lawsuit; and,
WHEREAS, the City Council has considered the merits of the request and is of the
opinion that it is in the best interest of the City to settle the suit;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
THAT the City Attorney be, and he is hereby, authorized to settle the matter of
James "Chad" York in the lawsuit styled James "Chad" York, et al v. City of Beaumont, et
al; Civil Action No. 1:18-cv-00522, for the sum of Fifty Thousand and XX/100 Dollars
($50,000.00); and,
BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby
authorized to execute all documents related to settlement of the lawsuit.
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 9th day of
June, 2020.
- Mayor Becky Ames -
E
BEAUMONT
. TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a ten
foot (10') wide Exclusive Water Line Easement.
BACKGROUND
Beaumont Lamar Apartments, LLC has agreed to convey an 8,450.64 square foot ten foot (10')
wide exclusive Water Line Easement to the City of Beaumont. The easement is described as
being a 0.194 acre tract of land situated in the J.A. Veatch Survey, Abstract No. 55, City of
Beaumont, Jefferson County, Texas. The easement is for the construction of new apartments
located at 1030 West Cardinal Drive.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the. resolution.
RESOLUTION NO.
WHEREAS, Beaumont Lamar Apartments, LLC has agreed to convey one (1)
eight thousand, four hundred fifty and sixty-four hundredths (8,450.64) square foot, ten
foot (10') wide exclusive water line easement, said easement being a 0.094 acre tract of
land situated in the J.A. Veatch Survey, Abstract No. 55, City of Beaumont, Jefferson
County, Texas as described and shown in Exhibit "1," attached hereto, to the City of
Beaumont to facilitate the construction of a new apartment complex located at 1030 West
Cardinal Drive; and,
WHEREAS, the City Council has considered the purpose of said conveyance and
is of the opinion that the acceptance of said conveyance is necessary and desirable and
is in the best interest of the City of Beaumont and that same 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 one (1) eight thousand, four hundred fifty and sixty-four hundredths
(8,450.64) square foot, ten foot (10') wide exclusive water line easement, said easement
being a 0.094 acre tract of land situated in the J.A. Veatch Survey, Abstract No. 55, City
of Beaumont, Jefferson County, Texas as described and shown in Exhibit "1," attached
hereto, be and the same is hereby, in all things, accepted for the stated 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 9th day of
June, 2020.
- Mayor Becky Ames -
STATE..OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF JEFFERSON §.
WATERLINE EASEMENT
THAT, BEAUMONT LAMAR APARTMENTS, LLC, a Texas limited liability
company, hereinafter called "GRANTOR", whether one or, more, for and in consideration of the
sum, of ONE AND N0/100 DOLLAR ($1.00), and other good;and valuable .consideration to us
in hand paid by the CITY OF BEAUMONT,, a municipal corporation domiciled in Jefferson
County,, Texas, hereinafter called "GRANTEE", the receipt and .sufficiency of which
consideration is hereby acknowledged, hasGRANTED, :SOLD "and. CONVEYED, and by these
presents does GRANT, SELL. and CONVEY unto the CITY OF BEAUMONT,, P. O. Box 3827,
Beaumont, Texas 77704, Jefferson County, Texas, its successors and assigns, a Water.Line
Easement and the exclusive right to construct;. alter, and maintain said waterlines and
appurtenances on the hereinafter described lands which.said easement is under; over; in. and
across those certain tracts or parcels of land owned by GRANTOR situated in the County of
Jefferson, State of Texas; and being, rhomparticulaily described in Exhibits "A &c B", attached
and. made. a part hereof for all purposes.
The>easement herein granted shall be used for-th.e7 purpose of.placing,,:constructing,
operating, repairing, rebuilding, replacing, relocating, and/or.rernoving waterlines and.
appurtenances, and the:following rights are also herebyconveyedcollectively, the "Easement
Rights:".
It is expressly understood and agreed that the City of Beaumont shall-. have the right of
ingress to and egress from the tracts of landhereinbefore described and use of the same for the
purposes aforesaid, and giving. said City the right and privilege to improve, maintain. and operate.
EXHIBIT "1"
the same as permitted.by law.
GRANTOR agrees not to place any structures or appurtenances- within the Easement
Property that will interfere with Grantee's ability to exerciseahe. Easement Rights.
GRANTEE shall not be responsible for the repair and.replacement.of any paving or other
structures within the Easeinent Property.
TO HAVE AND TO HOLD- the: above described easement and right-of-way unto the said
CITY OF "BEAUMONT; its successors and assigns forever,
EXECUTED this day of , 2020.
GRANTOR:
BEAUMONT LAMAR APARTMENTS, LLC
a Texas limited liability company
BY: SELIM-,KIRALRLLC, a Texas limited liability company
Its Member
Selim B.;Kiralp", Managing Member
{1-f'4 fiE1N1'T'10N'A L 1r,Y L XT BLA N KI
AC10TONMEDGMENTS
'STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument -was acknowledged -before me on day of
.2020, by.$elim B. KirAlA Managing Member of'.SELIM KIRALPLLC, a T xas, limited. liability
company, acting in itsr capacity as Managing Member of BEAUMONT -tAMAR
APARTMENTS LLC, d Texas limited liability company.
Notary Public, State of Texas
RETOIZ14 TO:: City of Beaumont
Antoinette.'HArdy. - Engineeri.ng
P. 0. B 6k3827
Beaumont,JX 77704
Commercial • Residential • Indrtstrial
Surveyors, LLC
EXHIBIT "A"
April 9, 2020
FIELD NOTE DESCRIPTION
0.194 Acres of Land
1030 West Cardinal Drive., Beaumont, Texas
Finn No. 10136400
BEING a 0.194 acre exclusive water line easement lying in the J.A. Veatch Survey,
Abstract No. 55, Jefferson County, Texas, being located in that certain called 2.98 acre tract of
land designated as "Tract I" and in that certain called 0.50 acre tract of land designated as "Tract
II", both tracts described in an instrument to Beaumont Lamar Apartments LLC of record in
County Clerk's File No. 2019024865, Official Public Records, Jefferson County, Texas, said
0.194 acre easement being more particularly described by metes and bounds as follows:
Note: 411 bearings and coordinates are grid, based on the Texas Coordinate System of 1983
(V,083), South Central Zone with a scale factor of 0.99993719 and a convergence angle at the
POB of 02°2425". All distances and areas are based on surface measurements.
BEGINNING at a capped iron rod stamped "Access Surveyors" found marking the
Southwesterly right of way line of Kenneth Avenue (60' right of way), the East corner of that
certain tract of land designated as "Tract IV" in an instrument to J & E Investment Group, Inc. of
record in County Clerk's File No. 9737770 of said Official Public Records, the Northernmost
East corner of said "Tract II", and being Northernmost East corner of the herein described
easement, said iron rod having Texas State Plane Coordinate Values of N: 13,955,667.73, E:
3,522,657.51;
THENCE S 30°48128" E (called S 30°33'52" E) with the Southwesterly right of way line of said
Kenneth Avenue, a Northeasterly line of said "Tract II", and a Northeasterly line of the herein
easement a distance of 7.16' to a 1/2" iron pipe found marking the Southwesterly line of said
Kenneth Avenue, being the North comer of that certain called 4.1523 acre tract of land described
in an instrument to Southeast Texas New Horizons of record in County Clerk's File No.
2015011969 of said Official Public Records, the Easternmost East comer of said "Tract H", and
being the Easternmost East corner of the herein described easement;
THENCE S 59009119" W (called S 59°09'39" W ) with the Northwesterly line of said 4.1523
acre tract, the Southeasterly line of said "Tract II", and a Southeasterly line of the herein
described easement a distance of 186.61' to a point lying in the Northwesterly line of said
4.1523 acre tract, the Southeasterly line of said "Tract lI", an being an exterior angle point of the
herein described easernent;
THENCE over and across said"Tract H" and said "Tract I" the following courses and
distances to points for corner:
N 30152142" W a distance of 130.271;
S 59°13'47" W a distance of 416.64';
S 06°09'26" W a distance of 47.721;
S 74°16'58" E a distance of 92.611;
S 17°59'18" W a distance of 19.51' to a point lying in the Northeasterly right of way line of
U.S. Highway No. 69, 96, and 287 (a.k.a. West Cardinal Drive) (right of way varies), the
Southwesterly line of said "Tract I", and being a Southerly comer of the herein described
easement, from which a 1/2" iron pipe found marking the South corner of said Tract II bears S
70°00'25" E (called S 69'56'14" E) a distance of 16.27';
Page 1 of 2
11025 Old Voth Road, Beaumont, Texas 77713 Office: (409) 838-6322 Fax: (409) 838-6122
Email: rpls5163@aol.com Web: www.access-surveyors.com
File: 2020086 FND.Docx
11 �',� E
`S/ cress Commercial • Residential • Industrial
Surveyors, LLi. Finn No. 10136400
THENCE N 70000'25" W (called N 69°56' 14" W) with the Northeasterly right of way line of
said U.S. Highway No. 69, 96, and 287, the Southwesterly line of said "Tract I", and a
Southwesterly line of the herein described easement a distance of 10.01' to a point lying in the
Northeasterly right of way line of said U.S. Highway No. 69, 96, and 287, the Southwesterly line
of said "Tract I", and being a Southerly corner of the herein described easement;
THENCE over and across said "Tract H" and said "Tract I" the following courses and
distances to points for corner:
L6 N 17°59'18" E a distance of 8.75';
L7 N 74°16'58" W a distance of 90.66'
L8 N 06°09'26" E a distance of 61.17'
N 59°13'47" E a distance of 431.61' to a point for coiner located at 10.00' perpendicular
distance from the Northeasterly line of said "Tract I";
THENCE S 30052142" E, over and across said "Tract I" and said "Tract II", parallel to and at
10.00' perpendicular distance from the said Northeasterly line of said "Tract 11" a distance of
133.27' to a point for corner intersecting the projected Southeasterly line of said "Tract IV" and a
projected Southeasterly line of said "Tract II";
THENCE N 59005'59" E over and across said "Tract H", at 26.54' passing a capped iron rod
stamped "Whitely" found marking the South coiner of said "Tract IV" and an interior angle
point said "Tract II", and continuing along the Southeasterly line of said "Tract IV" and a
Southeasterly line of the said "Tract ll" a total distance of 176.61' to the POINT OF
BEGINNING, containing 0.194 acre of land, more or less.
A plat of even date, shown as "Exhibit B", accompanies this field note description.
Page 2 of 2
11025 Old Voth Road, Beaumont, Texas 77713 Office: (409) 838-6322 Fax: (409) 838-6122
Email: rpls5l63@aol.com Web: www.access-suivEyors.com
File: 2020086 FND.Doex
2
Fnd. Conc. Mon.
EXHIBIT "B "
Perricone Place Easement Plat
Vol 9, Pg. 20
MRJCT
Block 1
3 4 5 6 7 8 9 10
15'U.E. N 59'07'41 " E 664.86' _
N 59'08'11' E 664.89' —_
0.I94ACRE
VARIABLE WIDTH
EXCLUSIVE WATERLINE
• f� �y EASEMENT
r r.
q.15
o
y �
cp T sy
� � •A S. V 1
�sJ
Beaumont Lamar Apartments LLC
"Tract I"
(called 2.98 acres)
CF# 2019024865
OPRJCT
N 59'13'47' E 431.61'
S 59.13'47' W 416.64'
Fnd. 1/2"
Rod
0 10.00'
Telephone (—su 838-6M 2 6 rpls51 838-6122 in Clark'sWes File in 2019024885 rive.,eau (ont, Texas,
www.access—surveyors.com § rp1s5163®aoLcom Address: 1030 West Cardinal Drive., Beaumont, Texas, 77705
Me: 2020066 Watedine Easmt Plat Technician: 80 Plat Dated. April 9, 2020
N
Michael L. Allen
W
�J
Direction
CF# 2002000390
W N
OPRJCT
7.16'
L2
S 70'00'25' E Beaumont Lamar Apartments LLC
16.27'
..
Fnd. Rod V
Fnd. 1/2" "Tract 11" (called 0.50 acres)
92.61'
(bent)
Pipe CF# 2019024865, OPRJCT
Z
N 70'00 25' W 60.48'
(N 6956'14" W 60.20)
S 59'09 W '
—(S
S 30.38$3' E
30'40'23" E)
39.93'
(S 59'09'3399"" W 5772.812.81 ')
8.75'
L7
Plat Dated: 02/19/20
Southeast Texas New Horizons
LB
N OF 09' 26" E
Revised:
L9
(called 4.1523 acres)
133.27'
SCALE:1" = 80'
04/06/20
176.61'
CF# 2015011969
Finn No. 10136400
04/09/20
OPRJCT
W+E cress
Found Capped Rod "Access
...
s J
a — stamped
SCO"
Surveyors" unless otherwise noted.
••••••
surveyors, LLE
EXCLUSIVE WATERLM EASEMENT
9tii
Commercial - .rndustriaZ - Residential
OUT OF "TRACT I" AMID "TRACT II"
11025 Old Voth Road — Beaumont, Texas 77713
Conveyed to Beaumont Lamar Apartments LLC
Telephone (—su 838-6M 2 6 rpls51 838-6122 in Clark'sWes File in 2019024885 rive.,eau (ont, Texas,
www.access—surveyors.com § rp1s5163®aoLcom Address: 1030 West Cardinal Drive., Beaumont, Texas, 77705
Me: 2020066 Watedine Easmt Plat Technician: 80 Plat Dated. April 9, 2020
N
Michael L. Allen
W
(called 0.8975 acres)
Direction
CF# 2002000390
W N
OPRJCT
7.16'
L2
h M
47.72-
L3
S 74' 16' 58" E
92.61'
(N 59.12'02" E 16.97)
H
N 59.24'13' E 16.69'
_ 10.00A/F'
N 70' 00' 25" W
—(S
S 30.38$3' E
30'40'23" E)
39.93'
Rod "Whiteley"
186.61'
l
3
Line Table
Line #
Direction
Length
L1
S 30' 48' 28" E
7.16'
L2
S 06' 09' 26" W
47.72-
L3
S 74' 16' 58" E
92.61'
L4
S 17' 59' 18" W
19.51'
L5
N 70' 00' 25" W
10.01'
L6
N 17' 59' 18" E
8.75'
L7
N 74' 16' 58" W
90.66'
LB
N OF 09' 26" E
61.17'
L9
S 3D' 52' 42" E
133.27'
L10
N 59' 05' 59" E
176.61'
3
o
v
*� J & E Investment
Group, Inc.
Tract 1V"
—CF#
9737770
OPRJCT
P.O.B.
Fnd. Capped Rod
III
Access Surveyors"
-L1
N. 13,955,667.73
k
E: 3,522, 657.51
`Fnd. 1/2" Pipe
Surveyor's Notes:
1. This survey was completed without the benefit
of a title commitment, and not all easements
or servitudes, whether of record or not, were
researched at the time of this survey or shown
hereon.
2. A field note description of even date, shown as
"Exhibit A", accompanies this plat.
J. All bearings and coordinates are grid, based on
the Texas Coordinate System of 1983 (NAD83),
South Central Zone with a scale factor of
0.99993719 'and a convergence angle at the
POB of 02'2425". All distances and areas are
based on surface measurements.
1030 W Cardinal Drive
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BEAUMONT
TEXAS
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS CITY HALL 801 MAIN STREET
TUESDAY, JUNE 9, 2020 1:30 PM
AGENDA
CALL TO ORDER
* Invocation Pledge Roll Call
Presentations and Recognitions
Public Comment: Persons may speak on scheduled agenda items 1-3/Consent
Agenda
Consent Agenda
GENERAL BUSINESS
1. Consider an ordinance amending the FY 2020 Budget
2. Consider an ordinance granting a new solid waste franchise agreement with
Action Trucking Company
3. Consider a resolution approving a five-year lease purchase agreement with K S
State Bank, located in Manhattan, Kansas for the purchase of a fire truck
WORK SESSION
Review and discuss a Master Drainage Plan prepared by Lockwood, Andrews &
Newnam, Inc.
* Review and discuss possible amendments to the 2019 CDBG Action Plan
PUBLIC HEARING
Receive comments on the amended Public Services and Public Facilities and
Improvements line items of the Consolidated Grant Program's 2019 Annual
Action Plan
4. Consider approving a resolution adopting the amended 2019 Annual Action Plan
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
June 9, 2020
Consider an ordinance amending the FY 2020 Budget
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider an ordinance amending the FY 2020 Budget.
BACKGROUND
In accordance with Article VI of the City Charter, the City Manager shall strictly enforce the
provisions of the budget as specified in the ordinance adopting the budget. He shall not authorize
or approve any expenditure unless an appropriation has been made in the budget ordinance
adopting the budget, and there is an available unencumbered balance of the appropriation sufficient
to pay the liability to be incurred. Approving the proposed amendment will ensure that
expenditures are within the approved budget and that interfund transfers are in accordance with
financial policies as approved within the budget document.
The details of the proposed amendment are as follows:
1. On August 14, 2018, City Council approved a budget amendment to transfer $2.1 million
from the Hotel Occupancy Tax (HOT) Fund to the General Improvements Projects Fund
for the renovation of the Tyrrell Park Community Building. On May 12, 2020, City
Council awarded a contract to McInnis Construction for those renovations in the amount
of $1,473,000 for the base bid and approximately $52,600 for several alternate bids.
Since the bids came in under the amount that was estimated, it is recommended that
$450,000 be transferred back from the General Improvements Projects Fund to the HOT
Fund. Additionally, the HOT Fund is expected to receive less tax revenue than what was
budgeted this year due to COVID-19. Hotel tax collections for the months of April and
May of 2020 were $214,823 and $219,961, respectively. Hotel tax collections for the
months of April and May of 2019 were $303,195 and $296,176, respectively.
Hotel Occupancy
Tax Fund
Original Budget
Proposed Amendment
Amended Budget
Total Revenues
$3,050,600
$450,000
$3,500,600
Total Expenditures
$3,190,600
$0
$3,190,3600
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the ordinance.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING THE FISCAL BUDGET OF THE
CITY OF BEAUMONT FOR THE FISCAL YEAR 2020 TO APPROPRIATE
ADDITIONAL REVENUES IN THE HOTEL OCCUPANCY TAX FUND; TO
APPROPRIATE ADDITIONAL EXPENDITURES IN THE HOTEL
OCCUPANCY TAX FUND; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR REPEAL.
WHEREAS, the City Charter of the City of Beaumont requires the City Manager to
strictly enforce the provisions of the budget and not authorize or approve any expenditure
unless an appropriation has been made in the budget ordinance adopting the budget and
there is an available unencumbered balance of the appropriation sufficient to pay the
liability to be incurred; and,
WHEREAS, it is necessary to amend the FY 2020 budget to ensure that
appropriations are sufficient to ensure that expenditures are authorized within the
approved budget;
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY OF BEAUMONT:
Cortinn 1
THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1,
2019 through September 30, 2020, be and the same is hereby amended to appropriate
additional revenues and expenditures in the Hotel Occupancy Tax Fund as shown below:
Hotel Occupancy Tax
Fund
Original Budget
Proposed Amendment
Amended Budget
Total Revenues
$3,050,600
$450,000
$3,500,600
Total Expenditures
$3,190,600
$0
$3,190,600
Section 3.
That if any section, subsection, sentence, clause or phrase of this ordinance or the
application of same to a particular set of persons or circumstances should for any reason
be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance and, to such end, the various portions and provisions of this ordinance are
declared to be severable.
Section 4.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
The meeting at which this ordinance was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
2020.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of June,
- Mayor Becky Ames -
2
June 9, 2020
Consider an ordinance granting a new solid waste franchise agreement with Action Trucking
Company
BEAUMONT
TEXAS
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider an ordinance granting a new solid waste franchise
agreement with Action Trucking Company.
BACKGROUND
According to Section 22.05. 101 of the Code of Ordinances, no person shall engage in the
business of collecting, hauling or transporting, in the cit)-. any garbage, waste or refuse, without
first having obtained a franchise from the City. Eight entities currently have nonexclusive
franchise agreements with the City. Action Trucking Company has requested a franchise
agreement. The company is focused on construction and demolition waste and construction earth
materials hauling with plans to operate from 16147 Sabine Consolidated Rd. Beaumont, TX
77705.
The 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, franchise ordinances require readings at three separate Council
meetings, with the third not less than thirty (30) days from the first reading. The ordinance does
not take effect until sixty (60) days after its adoption on the third and final reading. After
passage, the ordinance must be published for four consecutive weeks in a newspaper of general
circulation in the City. All publication costs are paid by the franchisee. Attached is a copy of the
franchise agreement for your review.
This is the first reading.
FUNDING SOURCE
A franchise fee of seven percent (7%) of gross receipts v ill be paid to the City.
RECOMMENDATION
Approval of the ordinance.
ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR SOLID
WASTE COLLECTION AND TRANSPORTATION SERVICES TO ACTION
TRUCKING COMPANY.
WHEREAS, Action Trucking Company (the "Company") has requested a franchise
to operate a solid waste collection and transportation service within the City of Beaumont,
Texas (the "City"); and,
WHEREAS, the City desires to grant such franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
Grant of Authority
There is hereby granted by the City to Action Trucking 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 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 sixty (60) days 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 until one (1) year
thereafter. 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 shall continue on a month-to-month basis until terminated by either
party or extended or replaced.
Section 3.
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.
Section 4.
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 name City
as an additional 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.
Compliance 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.
Ccr4inn R
Providinq 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.
Mnrminn inn
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:
Action Trucking Company
1306 East Anderson Road
Houston, TX 77047
Notice to City is sufficient if mailed by certified mail to:
City Manager
City of Beaumont
P.O. Box 3827
Beaumont, TX 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 effect 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 first reading this
the 9th day of June, 2020.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading
this the day of 12020.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this
the day of )2020.
ACCEPTANCE:
Action Trucking Company
13
(Company Owner/Representative)
- Mayor Becky Ames -
June 9, 2020
Consider a resolution approving a five-year lease purchase agreement with K S State Bank,
located in Manhattan, Kansas for the purchase of a fire truck
BEAUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: June 9, 2020
REQUESTED ACTION: Council consider a resolution approving a five-year lease purchase
agreement with K S State Bank, located in Manhattan, Kansas
related to the purchase of a fire truck.
BACKGROUND
On March 17, 2020, Council approved a reimbursement resolution for the lease purchase
agreement to reimburse the City for the purchase of a Pierce Velocity Fire Pumper Truck in the
amount of $749,488. Bids were requested for a fixed interest rate to finance the truck with the
first payment in arrears following the date of purchase of the truck which was on January 30,
2020. The total lease purchase cost, including interest. of $60,622.95, is $810,110.95.
Bids were solicited for a fixed interest rate lease purchase finance agreement from twenty-two
(22) vendors and one response was received. The Bid tab is attached. The Administration is
recommending an agreement with K S State Bank with an interest rate of 2.65%.
FUNDING SOURCE
Funds will be budgeted in FY21 - Capital Reserve Fund.
RECOMMENDATION
Approval of the resolution.
RESOLUTION NO.
WHEREAS, on March 17, 2020, the City Council of the City of Beaumont, Texas
adopted Resolution No. 20-050 approving a lease purchase agreement to reimburse the
City for the purchase of one (1) Fire Pumper Truck in the amount of $749,488.00; and,
WHEREAS, bids were requested for a fixed interest rate to finance the truck with
the first annual payment in arrears following the purchase of the truck which was on
January 30, 2020; and,
WHEREAS, the total lease purchase cost including interest of $60,622.95 is
$810,110.95; and,
WHEREAS, bids were received for a five (5) year lease purchase agreement for
the lease purchase of a Pierce Velocity Fire Pumper Truck; and,
WHEREAS, K S State Bank, of Manhattan, Kansas, submitted a bid at a fixed
interest rate of 2.65% and,
WHEREAS, the City Council is of the opinion that the bid submitted by K S State
Bank of Manhattan, Kanas, is in the best interest of the City of Beaumont and 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 K S State Bank, of Manhattan, Kansas, for a five (5)
year lease purchase agreement at a fixed interest rate of 2.65% and a total lease
purchase cost of $810,110.95, as shown on Exhibit "A," attached hereto, for the lease
purchase of a Pierce Velocity Fire Pumper Truck, be accepted by the City of Beaumont.
THAT the City Manager be and he is hereby authorized to execute a five (5) year
lease purchase agreement with K S State Bank, of Manhattan, Kansas, substantially in
the form attached hereto as Exhibit "B," for the purposes described herein.
2020.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of June,
- Mayor Becky Ames -
City of Beaumont
Bid Tab
10
Bid Number:
PF0420-12
Bid Name:
Fixed Interest Rate Lease Purchase Financing Agreement
Bid Open Date:
May 28, 2020
KS Statebank
Fixed Interest Rate Term Manhattan, KS.
Four(4)Year 2.59%
Five (5) Year 2.65%
EXHIBIT "A"
(Reference: Bid No. PF0420-12)
LEASE PURCHASE AGREEMENT
BETWEEN
The City of Beaumont, as Lessee
and
KS STATE BANK , as Lessor
THIS LEASE PURCHASE AGREEMENT (the Lease), is by and between
KS STATE BANK as LESSOR,
a limited liability company duly organized and existing under the laws of the State of Texas, whose
address is: P. O. BOX 69, MANHATTAN, KS 66502 ,
and the City of Beaumont, a political subdivision of the State of Texas, as LESSEE (the City), whose
address is: P. O. Box 3827, Beaumont, Texas 77704-3827.
WITNESSETH:
WHEREAS, the City is authorized by law to acquire such items of personal property as are
needed to carry out its governmental functions, and to acquire such personal property by entering into a
lease with the options to purchase; and
WHEREAS, the City has determined that it is necessary for it to acquire under this Lease certain
items of personal property described herein as the Property; and
WHEREAS, Lessor is willing to acquire and lease such Property to the City pursuant to this
Lease; the parties hereto recite and agree as follows:
ARTICLE I
DEFINITIONS AND EXHIBITS
Section 1.1 Definitions.
The terms defined in this Section, shall for all purposes of this Lease, have the following meanings:
Business Day: Each day on which the City is open for business.
Contractor: Each manufacturer or vendor from whom the City has ordered or contracted for the
manufacture, delivery, construction, and/or installation of the Property.
Fiscal Year: The twelve (12) month fiscal period of the City which commences on October 1 in every
year and ends on the following September 30.
Page 1 of 26
EXHIBIT "B"
Interest: The portion of any Rental Payment designated as and comprising interest as shown in the
attached Exhibit "B" as now or hereafter constituted.
Net Proceeds: Any insurance proceeds or condemnation award, paid with respect to any Property,
remaining after payment therefrom of all expenses incurred in the collection thereof.
Non -appropriation: The failure of the City Council of the City to appropriate money for any Fiscal
Year sufficient for the continued performance of this Lease by the City with respect to any Property
Group, which may be evidenced by a budget ordinance or resolution which does not appropriate any
moneys to pay the Rental Payments due under this Lease with respect to such Property Group for a
designated Fiscal Year.
Payment Date: The date upon which any Rental Payment is due and payable as provided in Exhibit "B"
as now or hereafter constituted.
Permitted Encumbrances: As of any particular time: (i) liens for taxes and assessments not then
delinquent, or which the City may, pursuant to the provisions of Section 7.3 hereof, permit to remain
unpaid, (ii) this Lease and amendments hereto, (iii) and Lessor's interest in the Property.
Principal: The portion of any Rental Payment designated as principal in the attached Exhibit "B" as
now or hereafter constituted.
Property Individually or collectively as the context requires, the personal property designated by the
City, which shall be described in the attached Exhibit "A" as now or hereafter constituted.
Propejjy GrouR: The Property listed on any addendum of Lease Exhibit "A," comprising a single
purchase of a group of items, equipment, construction of building, or associated products.
Purchase Option Price: With respect to the Group of Property listed on any single addendum of Exhibit
"A," the amount designated and set forth opposite each Payment Date in the addendum of the attached
Exhibit "B" relating to such Property Group.
Rental Past_ The payment due from the City to Lessor on each Payment Date as shown on Exhibit
11B."
Specifications: The bid specifications and contract documents which the City has executed.
Term of this Lease or Lease Term: The period during which this Lease is in effect as specified in
Section 4.1.
Section 1.2 Exhibits.
The following Exhibits are attached to and by reference made a part of this Lease:
Exhibit "A": Attached addendum comprising of a schedule describing each Property Group
being leased by the City pursuant to this Lease, including serial numbers thereof which shall be
inserted when available, each schedule comprising a number of pages numbered consecutively,
each addendum containing the description of all Property comprising a Property Group.
Exhibit "B": A schedule to be completed by Lessor as provided herein and furnished to the
City as provided in Section 3.2, comprising pages to be consecutively numbered, and each page
to contain the date and amount of each Rental Payment coming due during the Lease Term with
Page 2 of 26
respect to the Property Group listed on the corresponding addendum of Exhibit "A," the amount
of such Rental payments comprising Principal and Interest, the price at which the City may
exercise its option to purchase Lessor's interest in such Property Group in accordance with
Article X, and the due date of each Rental Payment.
Exhibit "C": A form of Certificate of Acceptance of the City indicating that the Property
Group described therein has been constructed in accordance with the Specifications, and has been
accepted by the City, the date on which Rental Payments shown on the page of Exhibit "B"
relating thereto shall commence, and that certain other requirements have been met by the City.
Exhibit "D": A form of opinion of counsel to the City as to the organization, nature, and
powers of the City; the validity, execution, and delivery of this Lease and various related
documents; the absence of litigation; and related matters.
Exhibit "E": Certificate of Incumbency.
Exhibit "F": Copy of the Reimbursement Resolution.
Exhibit "G": Payment information as provided by successful bidder.
ARTICLE II
REPRESENTATION, COVENANTS, AND WARRANTIES
Section 2.1 Representations, Covenants, and Warranties of the City.
The City represents, covenants, and warrants as follows:
(a) The City is a municipal corporation and political subdivision of Texas, duly organized
and existing under the Constitution and laws of the State.
(b) The City is authorized under the Constitution and laws of Texas to enter into this Lease
and the transactions contemplated hereby, and to perform all of its obligations hereunder.
(c) The City Manager has been duly authorized to execute and deliver this Lease by the
official action of the City's governing body, the City Council.
(d) In authorizing and executing this Lease, the City has complied and/or will comply with
all public bidding laws applicable to this Lease and the acquisition of the Property by the
City.
(e) The City will not pledge, mortgage, or assign this Lease, or its duties and obligations
hereunder to any other person, firm, or corporation except as provided under the terms of
this Lease.
(f) The City will use the Property during the Lease Term only to perform essential
governmental functions.
(g) Upon the request and direction of Lessor, the City will take all affirmative actions legally
within its power necessary to ensure that the Interest portion of the Rental Payments does
not become includible in gross income of the recipient for federal income tax purposes
under the Internal Revenue Code of 1986 (the Code) and Treasury Regulations
Page 3 of 26
promulgated thereunder (the Regulations).
(h) Upon delivery and installation of any Property Group, the City will provide to Lessor a
completed and executed copy of a Certificate of Acceptance relating thereto in the form
attached hereto as Exhibit "C."
(i) Upon the execution of this Lease, the City will provide the Lessor an opinion of its legal
counsel in the form attached hereto as Exhibit "D."
(j) Upon the request and direction of Lessor, the City will submit to the Secretary of the
Treasury an information reporting statement at the time and in the form required by the
Code and Regulations, and furnished by Lessor.
(k) The City shall take or has taken such appropriate official action by its governing body to
approve the placement of any Property Group under the terms and conditions of this
Lease.
Section 2.2 Representation, Covenants and Warranties of Lessor.
Lessor represents, covenants, and warrants as follows:
(a) Lessor is a corporation duly organized, existing and in good standing under and by virtue
of the laws of the State of Texas, or is duly qualified and in good standing as a foreign
corporation authorized to transact business in the State of Texas; has power to enter into
this Lease, is possessed of full power to own and hold personal property, and to lease the
same; engages in the leasing of personal property such as the Property in the ordinary
course of business; and has duly authorized the execution and delivery of this Lease and
all addenda thereto.
(b) Neither the execution and delivery of this Lease, nor the fulfillment of or compliance
with the terms and conditions thereof, nor the consummation of the transactions
contemplated thereby, conflicts with or results in a breach of the terms, conditions, or
provisions of any restriction, Agreement, or instrument to which Lessor is now a party or
by which Lessor is bound, constitutes a default under any of the foregoing, or results in
the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the
property or assets of Lessor, or upon the Property except Permitted Encumbrances.
ARTICLE III
LEASE OF PROPERTY
Section 3.1 Property Delivery: Documentation.
Lessor shall furnish to the City completed copies of Exhibit "A" and "B" relating to each Property
Group. Upon delivery of any Property Group, the City shall inspect such Property, and if such Property
meets the City's Specifications contained in the contract relating thereto, the City shall provide to Lessor a
completed and executed copy of a Certificate of Acceptance relating thereto in the form attached hereto as
Exhibit "C." Lessor and the City shall take all actions necessary to vest legal title to the Property Group
in the City, and to perfect a security interest in favor of Lessor or a person, firm, or corporation designated
by Lessor. However, Lessor will not be shown as a lienholder on the instrument of title.
Lessor shall pay Contractor or reimburse City for any payment it made to a Contractor for a Property
Group within three (3) business days after receipt of the following in form and substance satisfactory to
Page 4 of 26
Lessor:
(a) an Exhibit "A" and Exhibit "B" executed by Lessor and City;
(b) an Exhibit "C" executed by City;
(c) a motion or other evidence of official action taken by or on behalf of the City to authorize
acquisition of the property group on the terms provided in Exhibit "A";
(d) Contractor's invoice(s) and/or bill(s) of sale relating to the Property Group, and if such
invoices have been paid by City, evidence of payment thereof and, if applicable, evidence
of official intent to reimburse such payment as required by the Regulations;
(e) as applicable, financing statements executed by City as debtor and/or the original
certificate of title or manufacturer's certificate of origin and title application if any of the
Property Group is subject to certificate of title laws;
(f) a completed and executed Form 8038-G or -GC or evidence of filing thereof with the
Secretary or Treasury; and
(g) within three (3) business days of Lessor's receipt of the documents listed above in (a) -(g)
in form and substance satisfactory to Lessor, Lessor shall make full payment to
Contractor(s) or City of all funds applicable to the accepted Property Groups by either
wire transfer or overnight delivery of a check at the direction of the Purchasing Manager.
Section 3.2 Lease.
Lessor hereby leases all Property made subject to this Lease to the City, and the City hereby leases such
Property- from Lessor, upon the terms and conditions set forth in this Lease.
Section 3.3 Possession and Enioyment.
Lessor hereby covenants to provide the City during the Term of this Lease with the quiet use and
enjoyment of the Property, and the City shall during the Term of this Lease peaceably and quietly have
and hold and enjoy the Property, without suit, trouble or hindrance from Lessor, except as expressly set
forth in this Lease. Lessor will, at the request of the City and at the City's costs, join in any legal action in
which the City asserts its right to such possession and enjoyment to the extent Lessor lawfully may do so.
Section 3.4 Lessor's Access to Property.
The City agrees that Lessor shall have the right at all reasonable times to examine and inspect the
Property. The City further agrees that Lessor shall have such rights of access to the Property as may be
reasonably necessary to cause the proper maintenance of the Property in the event of failure by the City to
perform its obligations hereunder.
ARTICLE IV
TERM OF LEASE
Section 4.1 Lease Term.
This Lease shall be in effect for a Term commencing upon its date of execution and ending as provided in
Section 4.5.
Page 5 of 26
Section 4.2 Termination by the City.
In the sole event of Non -appropriation relating to any particular Property Group or specific item within a
Property Group, the City shall have the right to terminate this Lease with respect to such Property Group
or specific item, at the end of any Fiscal Year of the City. The City may effect such termination by giving
Lessor a written notice of termination with respect to such Property Group and by paying to Lessor any
Rental Payments and other amounts with respect to such Property Group which are due and have not been
paid at or before the end of its then current Fiscal Year. The City shall endeavor to give notice of such
termination not less than sixty (60) days prior to the end of such Fiscal Year, and shall notify Lessor of
any anticipated termination. In the event of termination of this Lease, the City shall deliver possession of
such Property Group to Lessor in accordance with Section 12.3, and shall convey to Lessor or release its
interest in such Property Group within ten (10) days after termination of this Lease with respect to such
Property Group.
Section 4.3 Intent to Continue Lease Term: Appropriations.
The City presently intends to continue this Lease for its entire Term with respect to all Property Groups
made subject hereto and to pay all Rental Payments relating thereto specified in Exhibit "B." The City
Manager will include in its budget request for each Fiscal Year the Rental Payments to become due in
such Fiscal Year with respect to all Property Groups. The City reasonably believes that moneys in an
amount sufficient to make all such Rental Payments can and will lawfully be appropriated and made
available for this purpose.
Section 4.4 Effect of Termination.
Upon termination of this Lease with respect to any Property Group, the City shall not be responsible for
the payment of any additional Rental Payments coming due with respect to succeeding Fiscal Years, but
if the City has not delivered possession and conveyed to Lessor or released its interest in the Property
Group within ten (10) days after the date of termination, the termination shall nevertheless be effective,
but the City shall be responsible for the payment of damages equal to the amount of the Rental Payments
thereafter coming due under the page of Exhibit "B" attributable to the number of days after such ten
(10) day period during which the City fails to take such actions and for any other loss suffered by Lessor
as a result of the City's failure to take such actions as required.
Section 4.5 Termination of Lease Term.
The Term of this Lease will terminate upon the occurrence of the first of the following events:
(a) the termination thereof by the City with respect to all Property Groups in accordance with
Section 4.2;
(b) the exercise by the City of its option to purchase Lessor's interest in all Property Groups
pursuant to Article X;
(c) a default by the City with respect to all Property Groups and Lessor's election to
terminate this Lease with respect to all Property Groups pursuant to Article XII;
(d) the payment by the City of all Rental Payments and all other amounts authorized or
required to be paid by the City hereunder with respect to all Property Groups.
Page 6 of 26
ARTICLE V
RENTAL PAYMENTS
Section 5.1 Rental Payments.
The City agrees to pay Rental Payments during the Term of this Lease, in the amounts and on the dates
specified in Exhibit "B." All Rental Payments shall be paid to Lessor at its offices at the address
specified in the first paragraph of this Lease, or to such other person(s) or entity to which Lessor has
assigned such Rental Payments as specified in Article XI, at such place as such assignee may designate
by written notice to the City. The City shall pay the Rental Payments exclusively from moneys legally
available therefor, in lawful money of the United States of America. Interest with respect to the Rental
Payments for any Property Group shall accrue from the date of acceptance of a Property Group.
Payments to be forwarded electronically as per instructions stated in Exhibit "G", as provided by the
successful bidder.
Section 5.2 Current Expense.
The obligations of the City under this Lease, including its obligation to pay the Rental Payments due with
respect to the Property, in any Fiscal Year for which this Lease is in effect, shall constitute a current
expense of the City for such Fiscal Year and shall not constitute an indebtedness of the City within the
meaning of the constitution and laws of Texas. Nothing herein shall constitute a pledge by the City of any
taxes or other moneys, other than moneys lawfully appropriated from time to time by or for the benefit of
the City in the annual budget of the City and the proceeds or Net Proceeds of the Property, to the payment
of any Rental Payment or other amount coming due hereunder.
Section 5.3 Interest Component.
As shown on Exhibit `°B", a portion of each Rental Payment is paid as and represents the payment of
Interest.
Section 5.4 Rental Payments to be Unconditional.
Except as provided in Section 4.2, the obligation of the City to make Rental Payments or any other
payments required hereunder shall be absolute and unconditional in all events. Notwithstanding any
dispute between the City and Lessor or any other person, the City shall make all Rental Payments when
due and shall not withhold any Rental Payment pending final resolution of such dispute nor shall the City
assert any right of set-off or counterclaim against its obligation to make such Rental Payments required
under this Lease. The City's obligation to make Rental Payments during the Lease Term shall not be
abated through accident or unforeseen circumstances. However, nothing herein shall be construed to
release Lessor from the performance of its obligations hereunder; and if Lessor should fail to perform any
such obligation, the City may institute such legal action against Lessor as the City may deem necessary to
compel the performance of such obligations or to recover damages therefore.
ARTICLE VI
INSURANCE AND NEGLIGENCE
Section 6.1 Liability Insurance.
The City is self-insured as to all liability. The self-insurance program contains a separate liability fund
which is funded by other funds as needed.
Section 6.2 Workers' Compensation Insurance.
If required by State law, and unless self-insurance is provided by the City, as evidenced by a written
certificate specifying the terms and amounts thereof delivered to Lessor, the City shall carry worker's
compensation insurance covering all employees on, in, near, or about each Property, and upon request,
Page 7 of 26
shall furnish to Lessor certificates evidencing such coverage throughout the period when the City is
required to make Rental Payments with respect thereto.
Section 6.3 City's Negligence.
The City assumes all risks and liabilities for loss or damage to any Property and for injury to or death of
any person or damage to any property, in any manner arising out of or incident to any possession, use,
operation, condition or storage of any Property by the City, whether such injury or death be with respect
to agents or employees of the City, and whether such property damage be to the City's property or the
property of others.
Section 6.4 Casualty Loss and Insurance.
If any loss, theft, damage or destruction occurs to any Property in whole or in part from any reason
whatsoever ("Casualty Loss"), the City shall immediately notify Lessor of the same and the City shall,
unless otherwise directed by Lessor, immediately repair the same. If Lessor reasonably determines that
any item of Property has suffered a Casualty Loss beyond repair ("Lost Equipment"), then the City shall
either: (i) immediately replace the Lost Equipment with similar equipment in good repair, condition and
working order free and clear of any liens (such equipment may be equipment that was acquired by the
City prior to the Casualty Loss and such equipment shall be equipment of equal value in the opinion of
Lessor to the value of the Lost Equipment immediately prior to the Casualty Loss), in which event such
replacement equipment shall automatically become part of the Property Group to which the Lost
Equipment belonged, and deliver to Lessor true and complete copies of the invoice or bill of sale covering
the replacement equipment or (ii) on earlier of 60 days after the Casualty Loss of the next scheduled
Rental Payment date, pay Lessor (A) all amounts owed by the City under the Lease, including the Rental
Payments due on or accrued through such date plus (B) an amount equal to the Option to Purchase Price
as of the Rental Payment date (or if the Casualty Loss payment is due between Rental Payment dates,
then as of the Rental Payment date preceding the date that the Casualty Loss payment is due) specified in
Exhibit "B". If the City is making such payment with respect to less than all of a Property Group, then
Lessor will provide the City with the pro rate amount of the Rental Payment and Option to Purchase Price
to be paid by the City with respect to the Lost Equipment and a revised Exhibit `B".
ARTICLE VII
OTHER OBLIGATIONS OF THE CITY
Section 7.1 Use: Permits.
The City shall obtain all permits and licenses necessary for the installation, operation, possession, and use
of the Property. The City shall comply with all state and federal laws applicable to the installation, use,
possession, and operation of the Property, and if compliance with any such state and federal law requires
changes or additions to be made to the property, such changes or additions shall be made by the City at its
expense.
Section 7.2 Maintenance of Property by the City.
The City shall maintain, preserve, and keep the Property in good repair, working order and condition, and
shall make all repairs and replacements necessary to keep the Property in the same condition and levels as
recommended by original equipment manufacturer.
Section 7.3 Taxes. Other Governmental Charges and Utility Charges.
Except as expressly limited by this Section, the City shall pay all taxes and other charges of any kind
which are at any time lawfully assessed or levied against the City with respect to the Property, the Rental
Payments or any part thereof, which become due during the Term of this Lease. The City shall also pay
when due, all gas, water, steam, electricity, heat, power, telephone, and other charges lawfully assessed or
Page 8 of 26
levied against the City incurred in the operation, maintenance, use, occupancy, and upkeep of the
Property, and all special assessments and charges lawfully made by any governmental body for public
improvements that may be secured by a lien on the Property; provided that with respect to special
assessments or other governmental charges that may lawfully be paid in installments over a period of
years, the City shall be obligated to pay only such installments as are required to be paid during the Term
of this Lease as and when the same become due. The City shall not be required to pay any federal, state,
or local income, inheritance, estate, succession, transfer, gift, franchise, gross receipts, profit, excess
profit, capital stock, corporate, or other similar tax payable by Lessor, its successors or assigns.
The City may, at its own expense and in its own name, in good faith contest any such taxes, assessments,
utility, and other charges and, in the event of any such contest, may permit the taxes, assessments, utility
or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom
unless Lessor shall notify the City that, in the opinion of Independent Counsel, by non-payment of any
such items the interest of Lessor in the Property will be materially endangered or the Property or any part
thereof will be subject to loss or forfeiture, in which event the City shall promptly pay such taxes,
assessments, utility or other charges or provide Lessor with full security against any loss which may result
from non-payment, in a form satisfactory to Lessor.
Section 7.4 Advances.
If the City shall fail to perform any of its obligations under this Article, Lessor may, but shall not be
obligated to, take such action as may be necessary to cure such failure, including the advancement of
money, and the City shall be obligated to repay all such advances on demand, with interest at the rate of
15% per annum or the maximum rate permitted by law, whichever is less, from the date of the advance to
the date of repayment.
ARTICLE VIII
TITLE
Section 8.1 Title.
During the Term of this Lease, and so long as the City is not in default under Article XII, legal title to the
Property and any and all repairs, replacements, substitutions, and modifications to it shall be by the City.
Upon termination of this Lease resulting from Non -appropriation or default of the City, full and
unencumbered legal title to such Property Group shall pass to Lessor, and the City shall have no further
interest therein. In either of such events, the City shall execute and deliver to Lessor such documents as
Lessor may request to evidence the passage of legal title to such Property Group to Lessor and the
termination of the City's interest therein, and upon request by Lessor shall deliver possession of the
Property Group to Lessor in accordance with Section 12.3. Upon termination of this Lease with respect to
any Property Group through exercise of the City's option to purchase pursuant to Article X or through
payment by the City of all Rental Payments and other amounts relating thereto, Lessor's security or other
interest in such Property Group shall terminate, and Lessor shall execute and deliver to the City such
documents as the City may request to evidence the termination of Lessor's security or other interest in
such Property Group.
Section 8.2 Security Interest.
Lessor shall have and retain a security interest under the Uniform Commercial Code in the Property, the
proceeds thereof and all repairs, replacements, substitutions, and modifications thereto or thereof made
pursuant to Section 8.5, in order to secure the City's payment of all Rental Payments due during the Term
of this Lease and the performance of all other obligations herein to be performed by the City. The City,
acting through its Purchasing Agent or other designee, will join with Lessor in executing such financing
statements or other documents and will perform such acts as Lessor may request to establish and maintain
Page 9 of 26
a valid security interest in the Property, however, lessor will not be shown as a lienholder on the
instrument of title. All UCC statements shall indicate that title to a Property Group is in the City and
exempt from ad valorem taxation as public property used for a public purpose under the laws and
constitution of the State of Texas.
Section 8.3 Liens.
During the Term of this Lease, the City shall not, directly or indirectly, create, incur, assume, or suffer to
exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Property, other
than the respective rights of Lessor and the City as herein provided and Permitted Encumbrances. All
property is exempt from local ad valorem taxation as property owned by a political subdivision and used
for public purposes. Lessor shall not pay or incur any charge, assessment, or tax on any Property Group
for which the City can claim an exemption from such charges as property used by a political subdivision
of the State of Texas for public purposes as provided by the Constitution and laws of the State of Texas.
Except as expressly provided in Section 7.3 and this Article, the City shall promptly, at its own expense,
take such action as may be necessary to discharge or remove any such mortgage, pledge, lien, charge,
encumbrance, or claim if the same shall arise at any time.
Section 8.4 Installation of the City's Property.
The City may at any time in its sole discretion and at its own expense, install other items of equipment in
or upon the Property, which items shall be identified by tags or other symbols affixed thereto as property
of the City. All such items so identified shall remain the sole property of the City, in which Lessor shall
have no interest, and may be modified or removed by the City provided that the City shall repair and
restore any damage to the Property resulting from the installation, modification, or removal of any such
items. Nothing in this Lease shall prevent the City from purchasing items to be installed pursuant to this
Section under a conditional sale or lease with option to purchase contract, or subject to a vendor's lien or
security Agreement, as security for the unpaid portion of the purchase price thereof, provided that no such
lien or security interest shall attach to any part of the Property.
Section 8.5 Modification of Property.
The City shall, at its own expense, have the right to make repairs, replacements, substitutions and
modifications to- all or any of the parts of the Property. All such work and any part or component used or
installed to make a repair or as a replacement, substitution or modification, shall thereafter comprise part
of the Property and be subject to the provisions of this Lease. Such work shall not in any way damage the
Property or cause it to be used for purposes other than those authorized under the provisions of state and
federal law or those contemplated by this Lease; and the Property, upon completion of any such work
shall be of a value which is not less than the value of the Property immediately prior to the
commencement of such work. Any property for which a replacement or substitution is made pursuant to
this Section may be disposed of by the City in such manner and on such terms as are determined by the
City.
The City will not permit any mechanic's or other lien�to be established or remain against the Property for
labor or materials furnished in connection with any repair, replacement, substitution, or modification
made by the City pursuant to this Section; provided that if any such lien is established and the City shall
first notify Lessor of the City's intention to do so, the City may in good faith contest any lien filed or
established against the Property, and in such event may permit the items so contested to remain
undischarged and unsatisfied during the period of such contest and any appeal therefrom unless Lessor
shall notify the City that, in the opinion of Independent Counsel, by non-payment of any such item the
interest of Lessor in the Property will be materially endangered or the Property or any part thereof will be
subject to loss or forfeiture, in which event the City shall promptly pay and cause to be satisfied and
discharged all such unpaid items or provide Lessor with full security against any such loss or forfeiture, in
form satisfactory to Lessor. Lessor will cooperate fully with the City in any such contest, upon the request
Page 10 of 26
and at the expense of the City.
Section 8.6 Personal Property.
The Property is and shall at all times be and remain personal property notwithstanding that the Property or
any part thereof may be or hereafter become in any manner affixed or attached to or embedded in or
permanently rested upon real property or any building.
ARTICLE IX
WARRANTY
Section 9.1 Selection of Property.
The Property and the Contractor have been selected by the City, and Lessor shall have no responsibility in
connection with the selection of the Property, its suitability for the use intended by the City, the
acceptance by the Contractor of the order submitted, or any delay or failure by the Contractor to
manufacture, deliver, or install the Property for use by the City. The City authorizes Lessor to add the
serial number of the Property to Exhibit "A" when available.
Section 9.2 Installation and Maintenance of Property.
Lessor shall have no obligation to install, erect, test, inspect, service, or maintain the Property under any
circumstances, but such actions shall be the obligation of the City or the Contractor.
Section 9.3 Contractor's Warranties.
Lessor hereby assigns to the City for and during the Term of this Lease, all of its interest in all
Contractor's warranties and guarantees, express or implied, issued on or applicable to the Property, and
Lessor hereby authorizes the City to obtain the customary services furnished in connection with such
warranties and guarantees at the City's expense.
Section 9.4 Patent Infringement.
Lessor hereby assigns to the City for and during the Term of this Lease all of its interest in patent
indemnity protection provided by a Contractor with respect to the Property. Such assignment of patent
indemnity protection by Lessor to the City shall constitute the entire liability of Lessor for any patent
infringement by Property furnished pursuant to this Lease.
Section 9.5 Disclaimer of Warranties.
THE PROPERTY IS DELIVERED AS IS, AND LESSOR MAKES NO WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN,
CONDITION, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OR
FITNESS FOR THE USE CONTEMPLATED BY THE CITY OF THE PROPERTY, OR ANY OTHER
REPRESENTATION OR WARRANTY WITH RESPECT TO THE PROPERTY.
ARTICLE X
OPTION TO PURCHASE
Section 10.1 When Available.
The City shall have the option to purchase Lessor's interest in any Property Group on any Payment Date
relating thereto for the then applicable Purchase Option Price set forth on the page of Exhibit "B"
relating thereto, but only if the City is not in default under this Lease, and only in the manner provided in
this Article.
Page 11 of 26
Section 10.2 Exercise of Option.
The City shall give notice to Lessor of its intention to exercise its option with respect to any Property
Group not less than thirty (30) days prior to the Payment Date on which the option is to be exercised and
shall deposit with Lessor on the date of exercise an amount equal to all Rental Payments and any other
amounts relating to such Property Group then due or past due (including the Rental Payment relating
thereto due on the Payment Date on which the option is to be exercised) and the applicable Purchase
Option Price set forth on the page of Exhibit "B" relating thereto. The closing shall be on the Payment
Date on which the option is to be exercised.
Section 10.3 Release of Lessor's Interest.
Upon execution of the purchase option with respect to any Property Group by the City, Lessor shall
convey or release to the City, all of its right, title, and/or interest in and to the Property Group by
delivering the City such documents as the City deems necessary for this purpose.
ARTICLE XI
ASSIGNMENT, SUBLEASING, MORTGAGING, AND SELLING
Section 11.1 Assignment of Lessor.
All of Lessor's right, title and/or interest in and to any Property Group, the Rental Payments and other
amounts relating thereto due hereunder, and the right to exercise all rights under this Lease relating to
such Property Group may be assigned and reassigned in whole or in part to one or more assignees or sub -
assignees by Lessor at any time, without the consent of the City. No such assignment shall be effective as
against the City unless and until the assignor shall have filed with the City a copy of written notice thereof
identifying the assignee. The City shall pay all Rental Payments due hereunder relating to such Property
Groups to or at the direction of Lessor or the assigned named in the most recent assignment or notice of
assignment with respect to such Property Group filed with the City. During the Lease Term, the City shall
keep a complete and accurate record of all such assignments. In the event Lessor assigns participations in
its right, title, and/or interest in and to any Property Group, the Rental Payments and other amounts due
with respect thereto, and the rights granted under this Lease relating thereto, such participants shall be
considered to be Lessor with respect to their participated shares thereof.
Section 11.2 Assignment and Subleasing by the City.
Neither this Lease nor the City's interest in the Property may be assigned by the City without the written
consent of Lessor. However, the Property may be subleased by the City, in whole or in part, without the
consent of Lessor, subject, however, to each of the following conditions:
(i) This Lease and the obligation of the City to make Rental Payments hereunder, shall
remain obligations of the City.
(ii) The City shall, within thirty (30) days after the delivery thereof, furnish or cause to be
furnished to Lessor a true and complete copy of such sublease.
(iii) No sublease by the City shall cause the Property to be used for a purpose other than a
governmental function authorized under the provisions of the Constitution and laws of
Texas.
(iv) No sublease shall cause the Interest component of the Rental Payments due with respect
to the Property to become includible in gross income of the recipient for federal income
tax purposes.
Page 12 of 26
Section 11.3 Restriction on Mortgage or Sale of Property by the City.
Except as provided in Section 11.2, the City will not mortgage, sell, assign, transfer, or convey the
Property or any portion thereof during the Term of this Lease, without the written consent of Lessor.
ARTICLE XII
EVENTS OF DEFAULT AND REMEDIES
Section 12.1 Events of Default Defined.
The following shall be "events of default" under this Lease with respect to any Property Group and the
terms "events of default" and "default" shall mean, whenever they are used in this Lease, with respect to
any Property Group, any one or more of the following events:
(i) Failure by the City to pay a Rental Payment or other payment required to be paid under
this Lease with respect to any Property Group at the time specified herein and the
continuation of said failure for period of three (3) days after telephonic or telegraphic
notice given by Lessor that the payment referred to in such notice has not been received,
such telephonic or telegraphic notice to be subsequently confirmed in writing.
(ii) Failure by the City to observe and perform any covenant, condition, or Agreement on its
part to be observed or performed with respect to any Property Group, other than as
referred to in Clause (i) of this Section, for a period of thirty (30) days after written notice
specifying such failure. Such notice to the City by the Lessor shall request that the default
be remedied, unless Lessor shall agree in writing to an extension of such time prior to its
expiration; provided, however, if the failure stated in the notice cannot be corrected
within the applicable period, Lessor will not unreasonably withhold its consent to an
extension of such time if corrective action is instituted by the City within the applicable
period and diligently pursued until the default is corrected.
(iii) The filing by the City of a voluntary petition in bankruptcy, or failure by the City
promptly to lift any execution, garnishment, or attachment of such consequence as would
impair the ability of the City to carry on its governmental function or adjudication of the
City as a bankrupt, or assignment by the City for the benefit of creditors, or the approval
by a court of competent jurisdiction of a petition applicable to the City in any
proceedings instituted under the provisions of the Federal Bankruptcy Statute, as
amended, or under any similar acts which may hereafter be enacted.
The provisions of this Section 12.1 and Section 12.2 are subject to the following limitation: if by reason
of force majeure the City is unable in whole or in part to cant' out its obligations under this Lease with
respect to any Property Group, other than its obligation to pay Rental Payments with respect thereto
which shall be paid when due notwithstanding the provisions of this paragraph, the City shall not be
deemed in default during the continuance of such inability. The term "force majeure" as used herein shall
mean, without limitation, the following: acts of God, strikes, lockouts, or other labor disturbances; acts of
public enemies; orders or restraints of any kind of the government of the United States of America or the
State or their respective.departments, agencies or officials, or any civil or military authority; insurrections,
riots; landslides; earthquakes; fires; storms; droughts; floods, explosions; breakage or accident to
machinery, transmission pipes or canals; or any other causes or events not reasonably within the control
of the City and not resulting from its negligence. The City agrees, however, to remedy with all reasonable
dispatch the cause or causes preventing the City from carrying out its obligations under this Lease;
provided that the settlement of strikes, lockouts and other labor disturbances shall be entirely within the
discretion of the City and the City shall not be required to make settlement of strikes, lockouts, and other
Page 13 of 26
labor disturbances by acceding to the demands of the opposing party or parties when such course is in the
judgment of the City unfavorable to the City.
Section 12.2 Remedies on Default.
Whenever any event of default referred to in Section 12.1 hereof shall have happened and be continuing
with respect to any Property Groups, Lessor shall have the right, at its option and without any further
demand or notice, to take one or any combination of the following remedial steps:
(i) Lessor may terminate this Lease with respect to such Property Group and declare all
Rental Payments due with respect to such Property Group during the Fiscal Year in
effect.
(ii) Lessor may terminate this Lease with respect to such Property Group and repossess the
Property Group, Lessor may enter upon the City's premises where the Property Group is
kept and take possession of the Property Group. Notwithstanding the fact that Lessor has
taken possession of the Property Group, the City shall continue to be responsible for the
Rental Payments due with respect thereto during the Fiscal Year then in effect.
(iii) If Lessor terminates this Lease with respect to such Property Group and takes possession
of such Property contained therein, Lessor shall within thirty (30) days thereafter use its
best efforts to sell such Property or any portion thereof in a commercially reasonable
manner at public or private sale in accordance with applicable state laws. Lessor shall
apply the proceeds of such sale to pay the following items in the following order: (a) all
costs incurred in securing possession of the Property Group; (b) all expenses incurred in
completing the sale; (c) the balance of any Rental Payments with respect to such Property
Group owed by the City during the Fiscal Year then in effect; and (d) the applicable
Purchase Option Price with respect to the Property Group due at the end of the Fiscal
Year. Any Sale proceeds remaining after disbursement pursuant to Clauses (a), (b), (c),
and (d) shall be payable to the City.
Section 12.3 Return of Property.
Upon the expiration or termination by the City of this Lease with respect to any Property Group prior to
the payment of all Rental Payments in accordance with Exhibit "B," the City shall allow lessor to
remove the property group from lessee's property at lessor's cost and expense, provided, however, that
such property shall be retrievable from a central location.
Section 12.4 No Remedy Exclusive.
No remedy conferred upon or reserved to Lessor by this Article is intended to be exclusive and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this Lease. No
delay or'omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof but any such right and power may be exercised from
time to time and as often as may be deemed expedient by Lessor or its assignee.
Section 12.5 Late Charge.
Whenever any event of default referred to in Section 12.1, Clause (i) hereof shall have happened and be
continuing with respect to any Property Group, Lessor shall have the right, at its option and without any
further demand or notice, to require a late payment charge for each thirty (30) day period or part thereof
during which such event of default occurs equal to fifteen percent (15%) of the delinquent amount not to
exceed the maximum authorized by law and the City shall be obligated to pay the same immediately upon
receipt of Lessor's written invoice therefor; provided, however, that this Section 12.5 shall not be
applicable if or to the extent that the application thereof would affect the validity of this Lease.
Page 14 of 26
ARTICLE XIII
ADMINISTRATIVE PROVISIONS
Section 13.1 Notices.
All notices, certificates, legal opinions, or other communications hereunder shall be sufficiently given and
shall be deemed given when delivered or deposited in the United States mail in registered form with
postage fully prepaid to the addresses specified in this Lease; provided that Lessor and the City, by notice
given hereunder, may designate different addresses to which subsequent notices, certificates, legal
opinions, or other communications will be sent. Unless otherwise changed by the City, all notices
required under this Lease and directed to the City shall be mailed to the following address:
LESSEE:
CITY OF BEAUMONT
ATTN: Todd Simoneaux, Chief Financial Officer
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704-3827
Phone: 409-880-3789
Physical Address:
801 Main Street, Suite 315
Beaumont, TX 77701
Page 15 of 26
LESSOR:
KS STATE BANK
(Lessor's Company Name)
ATTN: Dave Barr, AVP
KS State Bank
P. O. Box 69
Manhattan, KS 66502
Phone: 800-752-3562
Phone: 913-748-4628
Physical Address:
2627 KFB Plaza, Ste. 202E
Manhattan, KS 66503
Section 13.2 Financial Information.
During the Term of this Lease, the City annually will provide Lessor with current financial statements,
budgets, proof of appropriation of the ensuing Fiscal Year and such other financial information relating to
the ability of the City to continue this Lease as may be reasonably requested by Lessor or its assignee.
Section 13.3 Binding Effect.
This Lease shall inure to the benefit of and shall be binding upon Lessor and the City and their respective
successors and assigns. This Lease shall not be construed to confer any rights, duties, or interest on any
party not a successor in interest or assignee of Lessor or the City nor may any such party rely on this
Lease as evidence of any duty, right, or obligation of Lessor or the City unless both the Lessor and the
City, or their successors and assigns, acknowledge such duty, right, or obligation in writing.
Section 13.4 Severabilitv.
In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof.
Section 13.5 Amendments, Changes, and Modifications.
This Lease may be amended or any of its terms modified only by written document duly authorized,
executed, and delivered by Lessor and the City.
Section 13.6 Captions.
The captions or headings in this Lease are for convenience only and in no way define, limit, or describe
the scope or intent of any provisions, Articles, Sections, or Clauses of this Lease.
Section 13.7 Further Assurances and Corrective Instruments.
Lessor and the City agree that they will, from time to time, execute, acknowledge, and deliver, or cause to
be executed, acknowledged, and delivered, such supplements hereto and such further instruments as may
reasonably be required for correcting any inadequate or incorrect description of the Property hereby
leased or intended so to be, or for otherwise carrying out the expressed intention of this Lease. The
Purchasing Agent, or the designee thereof, is hereby authorized by the City Manager to execute such
addenda as attached hereto as Exhibits for each Property Group and such other instruments, including, but
not limited to, UCC statements, Bill of Sales, etc. that are necessary to carry out the responsibilities,
duties, and obligations required of the City in accordance with the terms and conditions of this Lease.
Section 13.8 Execution in Counterparts.
This Lease may be simultaneously executed in several counterparts, each of which shall be an original
and all of which shall constitute but one and the same instrument.
Section 13.9 Applicable Law.
This Lease shall be governed by and construed in accordance with the laws of Texas. Venue of any legal
action brought under this Agreement will be in Jefferson County, Texas.
Section 13.10 Entire Agreement.
This Lease and all Addenda and Exhibits, as may hereafter be executed, constitute the entire Agreement
between the parties and shall supersede all previous negotiations, commitments and contracts.
Page 16 of 26
IN WITNESS WHEREOF, Lessor has caused this Lease to be executed in its corporate name by its
duly authorized officer; and the City has caused this Lease to be executed in its name by its duly
authorized City Manager.
ATTEST:
APPROVED THIS THE DAY OF
LESSOR:
KS STATE BANK
(Lessor's Company Name)
Ll.",
(Signature)
t
DAVE BURR AVP
Name and Title
►.1
LESSEE:
CITY OF BEAUMONT
Page 17 of 26
(Signature)
KYLE HAYES, CITY MANAGER
Name and Title
EXHIBIT "A"
PROPERTY DESCRIPTION
Re: Bid No. PF0420-12
Lease Purchase Agreement
The following Property comprises a Property Group which is the subject to the terms and conditions of
that certain Lease Purchase Agreement entered into by and between the City of Beaumont and
KS STATE BANK (Lessor) dated the
day 120
'Quantity Description
1 I Pierce Velocity Fire Pumper Truck
All Property made subject of this Agreement is owned by and under the sole and exclusive use of
the City of Beaumont, a political subdivision of the State of Texas, and is used as part of the City's
governmental services in furtherance of its public purpose. The City asserts all exemptions
provided for political subdivisions of the State of Texas as authorized under the Constitution and
laws of the State of Texas against the assessment, levy, or charges for ad valorem taxation, personal
property taxation, or any other charges.
LESSOR:
KS STATE BANK
(Lessor's Company Name)
Name: Dave Burr
Title:
APPROVED THIS THE DAY OF
LESSEE:
CITY OF BEAUMONT
By:
Name: —Kyle Ha es
Title: Ci Mana er
Page 18 of 26
20
EXHIBIT `B"
SCHEDULE OF LEASE PAYMENTS RELATING TO PROPERTY
Re: Bid No. PF0420-12
Lease Purchase Agreement
The following schedule of Lease Payments constitutes the applicable payments for the Property Group
described on Exhibit "A" attached to that certain Lease Purchase Agreement entered by and between the
City of Beaumont and KS STATE BANK
(Lessor) dated the day , 20
FIXED INTEREST RATE: 2.65 %
Payment No.
Payment.,Amount ,�.
Interest
Principal .e.
Purchase Option.
1
$142,160.76
$19,861.43
$162,022.19
$611,732.16
2
$145,958.02
$16,094.17
$162,022.19
$464,085.68
3
$149,795.11
$12,227.08
$162,022.19
$312,969.50
4
$153,764.68
$8,257.51
$162,022.19
$158,302.09
5
$157,839.43
$4,182.76
$162,022.19
$0.00
TOTAL
$749,488.00
$60,622.95
$810,110.95
$ N/A
* Payments shall be five (5) annual payments equal in amount.
Page 19 of 26
All property made subject of this Agreement is owned by and under the sole and exclusive use of the City
of Beaumont, a political subdivision of the State of Texas, and is used as part of the City's governmental
services in furthermore of its public purpose. The City asserts all exemptions provided for political
subdivisions of the State of Texas as authorized under the Constitution and laws of the State of Texas
against the assessment, levy, or charges for ad valorem taxation, personal property taxation, or any other
charges.
LESSOR:
KS STATE BANK
(Lessor's Company Name)
am
Name: Dave Burr
Title: AVP
APPROVED THIS THE DAY OF
LESSEE:
CITY OF BEAUMONT
By:
Name: Kyle Hayes
Title: Ci Manager
Page 20 of 26
20
EXHIBIT "C"
CERTIFICATE OF ACCEPTANCE
Re: Bid No. PF0420-12
Lease Purchase Agreement
I, the undersigned, hereby certify that I am the duly qualified and acting of, the City of Beaumont,
(the City), and, with respect to the Lease Purchase Agreement dated
20 _(the Lease), by and between Lessor and the City that:
1. The Property described in the Lease listed on Exhibit "A," (the Property Group) has been
delivered in accordance with the City's Specifications (as that term is defined in the Lease) and
has been accepted by the City.
2. The Rental Payments provided for on the page of Exhibit "B" to the Lease relating to such
Property Group (the Rental Payments) shall commence and be due and payable on as shown on
said Exhibit "B" in the amounts on such page of Exhibit "B" to the Lease.
The City has appropriated and/or taken other lawful actions necessary to provide moneys
sufficient to pay all Rental Payments required to be paid under the Lease during the current fiscal
year of Lessee, and such moneys will be applied in payment of all such Rental Payments due and
payable during such current fiscal year.
4. The City is self-insured with respect to all risks required to be covered thereby pursuant to Article
VI of the Lease.
5. The City is exempt from all personal property taxes, and is exempt from sales and/or use taxes
with respect to the Property Group and the Rental Payments.
6. During the Lease Term (as defined in the Lease) the property Group will be used by the City to
perform essential governmental functions.
7. There is no litigation, action, suit, or proceeding pending before any court, administrative agency,
arbitrator, or governmental body, that challenges the organization or existence of the City; the
authority of the City or its officers or its employees to enter into the Lease; the proper
authorization, approval, and execution of the Lease and other documents contemplated thereby;
the appropriation of moneys, or any other action taken by the City to provide moneys, sufficient
to make Rental Payments coming due under the Lease in the City's current fiscal year; or the
ability of the City otherwise to perform its obligations under the Lease and the transaction
contemplated thereby.
Dated:
City of Beaumont:
Dated:
Concurred:
By:
Todd Simoneaux Kyle Hayes
Chief Financial Officer City Manager
Page 21 of 26
EXHIBIT "D"
OPINION OF COUNSEL
Re: Bid No. PF0420-12
Lease Purchase Agreement
dated as of the day of , 20 ,
by and between City of Beaumont as Lessee (the City),
and KS State Bank as Lessor.
Gentlemen:
I have acted as counsel to the City with respect to the Lease Purchase Agreement described above
(the Lease) and various related matters, and in this capacity have reviewed a duplicate original or certified
copy of the Lease and the Exhibits attached thereto. Based upon the examination of these and such other
documents as I deem relevant, it is my opinion that:
1. The City is a municipal corporation and political subdivision of the State of Texas, duly
organized, existing and operating under the Constitution and laws of the State of Texas.
2. The City is authorized and has power under applicable law to enter into the Lease, and to carry
out its obligations thereunder and the transactions contemplated thereby.
The Lease has been duly authorized, approved, executed, and delivered by and on behalf of the
City, and is a valid and binding contract of the City enforceable in accordance with its terms,
except to the extent limited by state and federal laws affecting remedies and by bankruptcy,
reorganization, or other laws of general application relating to or affecting the enforcement of
creditor's rights.
4. The authorization, approval, and execution of the Lease and all other proceedings of the City
relating to the transactions contemplated thereby have been performed in accordance with all
applicable open meeting, public bidding, and all other laws, rules, and regulations of the State of
Texas.
5. The execution of the Lease and the appropriation of moneys to pay the Rental Payments coming
due thereunder do not result in the violation of any constitutional, statutory, or other limitation
relating to the manner, form, or amount of indebtedness which may be incurred by the City.
6. There is no litigation, action, suit, or proceeding pending before any court, administrative agency,
arbitrator or governmental body, that challenges the organization or existence of the City; the
authority of the City or its officers or its employees to enter into the Lease; the proper
authorization, approval and/or execution of the Lease, Exhibits thereto and other documents
contemplated thereby; the appropriation of moneys to make Rental Payments under the Lease for
Page 22 of 26
the current fiscal year of the City; or the ability of the City otherwise to perform its obligations
under the Lease and the transactions contemplated thereby.
7. The Lease was duly and validly adopted by official action of the governing body of the City of
Beaumont on this the day of , 20 and such official
action has not been amended or repealed and remains in full force and effect.
Dated:
Very truly yours,
Tyrone E. Cooper
City Attorney
Page 23 of 26
EXHIBIT "E"
CERTIFICATE OF INCUMBENCY
Re: Bid No. PF0420-12
Lease Purchase Agreement
Lessee: Cijy of Beaumont
Dated:
I, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or
appointed and acting Secretary/Clerk of the above Lessee (the "Lessee"), a political subdivision duly
organized and existing under the laws of the State where Lessee is located, that I have the title stated
below, and that, as of the date hereof, the individuals named below are the duly elected or appointed
officers of the Lessee holding the offices set forth opposite their respective names.
Kyle Hayes City Manager
Name Title Signature
IN WITNESS THEREOF, I have duly executed this certificate and affixed the seal of such Lessee as
of the date set forth below.
Signature of Secretary / Clerk of Lessee
Print Name: Tina Broussard
Official Title: City Clerk
Date:
Page 24 of 26
SEAL
EXHIBIT "F"
COPY OF THE REIMBURSEMENT RESOLUTION
Re: Bid No. PF0420-12
Lease Purchase Agreement
Page 25 of 26
EXHIBIT "G"
PAYMENT INFORMATION
AS PROVIDED BY SUCCESSFUL BIDDER
Re: Bid No. PF0420-12
Lease Purchase Agreement
NOTE: To be completed by successful bidder after award of contract.
As referenced in Article V, Section 5.1, of the Lease Purchase Agreement, and as provided by the
successful Bidder, shown below are instructions for electronic payments due from Lessee to Lessor:
Page 26 of 26
WORK SESSION
Review and discuss a Master Drainage Plan
prepared by Lockwood, Andrews &
Newnam, Inc.
WORK SESSION
* Review and discuss possible amendments to
the 2019 CDBG Action Plan
BEAUMONT
TEXAS
Work Session
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Chris Boone, Planning & Community Development Director
MEETING DATE: June 9, 2020
SUBJECT: Work Session to Discuss Amendments to the 2019 CDBG Action
Plan.
The City was recently granted $801,000 in supplemental CDBG-CV-(Covid) funding. Recipients
are urged to use the funding for immediate Covid response activities such as the construction and
operation of medical testing and treatment facilities, emergency protective measures, as well as
Covid-19testing for the public. However, the funds are also . intended to assist individuals
struggling financially as the result of Covid-19. Staff is recommending that the funds be used to
help those affected economically by the pandemic.
With guidance from The -U.S. Department of Housing and Urban Development (HUD), the most
expeditious way to utilize the supplemental funding is by amending the adopted 2019 CDBG
Action Plan. Specifically, staff is proposing the following:
Utility and Rental Assistance Program: $600,000
Food Bank: $140,000
Administrative Expenses: $61,000
With regard to a Utility and Rental Assistance Program, the City has partnered in the past with
non -profits such as Henry's Place and the Salvation Army to administer such a program. These
reimbursement programs provide up to three (3) months of utility and rental assistance to those at
risk of eviction and possible homelessness. This is particularly important given the economic
impact resulting from the pandemic. Given the cost of rent and utilities that might range from
$50041,000, we estimate that we may be able to assist as many as 500 households within
Beaumont. It should be noted that income eligibility, documentation showing a risk of
homelessness as well as financial documents showing eligible expenses will be required. It
should also be noted that this is a reimbursement program.
In addition, staff is recommending an allocation of $140,000 to local food shelters which would
allow for the acquisition and distribution of food to local citizens affected by the pandemic.
Finally, staff is recommending an amendment of the 2019 Action Plan to specify that $400,000 of
the $500,000 budgeted in the Public Facility & Improvement line item be dedicated to homeless
shelter repair and enhancement. The $500,000 was approved by the City Council to allow for.a
new program whereby citizens could replace their sewer and/or water lines on their property.
Despite advertising the new program, there have not been many citizens come forward or that have
been eligible. Therefore, the Administration proposes to repurpose $400,000 of the $500,000.
Staff has been in discussion with our non-profit partners and we expect that they will make the
following requests:
Henry's Place: Repair the foundation, upgrade electrical system, upgrade kitchen, repair siding
and painting and repairs to floors. These improvements will allow for an enhanced level- of
service at this facility. The estimated cost is $266,000.
Salvation Army: Repair the foundation, repair and paint rotten wood on exterior, repair roof,
repair drywall, floors, interior and exterior doors for the two buildings at 1078 McFaddin. These
improvements will allow for this facility to be re -opened to provide shelter services to the homeless
population. The estimated cost is $200,000.
AMENDMENT TO THE 2019 HUD CONSOLIDATED GRANT PROGRAM
COMMUNITY DEVELOPMENT BLOCK GRANT -CV (CARES ACT)
Budget
PUBLIC SERVICE ORGANIZATIONS
Utility & Rental Assistance Program: Funds will be used to, reimburse 600,000
costs for rent and utility payments of low -to -moderate income residents
that were affected by the pandemic.
Food Bank: Funds would be used to partner with the Southeast Texas 140,000
Food Bank to acquire and distribute food to citizens affected by the
pandemic.
ADMINISTRATION 61,000
Funds will be used for administrative expenses necessary for compliance with.
the planning, execution, and regulatory requirements associated with the
implementation of the HUD Consolidated Grant Program.
TOTAL CDBG-CV 801,000
2019 HUD CONSOLIDATED GRANT PROGRAM -Amended
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
CLEARANCE AND DEMOLITION
Funds will be used to demolish unsafe, unsanitary and uninhabitable residential structures
located in low to moderate income areas.
PUBLIC FACILITY & IMPROVEMENT
Special Projects ($400,000 shelter repairs; $100,000 Sewer Line Repair Program)
HOUSING
Minor Rehabilitation Program (Habitat for Humanity)
PUBLIC SERVICES
Public Service Organizations
Funds will be used for administrative and operating costs for various public service organizations that
provide services to low/moderate income citizens.
ADMINISTRATION
Funds will be used for personnel and operating expenses necessary for compliance with the planning, execution,
and regulatory requirements associated with the implementation of the HUD Consolidated Grant Program.
TOTAL ENTITLEMENT
Program Income
Small Business Loan
Historic Preservation Loan Fund
Clearance and Demolition
*Program Income is Estimated
TOTAL CDBG
HOME
AFFORDABLE HOUSING PROGRAM
Funds will be awarded to a non-profit housing development organization that will assist low/moderate
income families in the process of acquiring a home (down payments assistance/closing costs, and mortgage
buy downs).
HOME ADMINISTRATION
CHDO OPERATING (5%)
(Community Housing Development Organization Operating)
CHDO RESERVE (15%)
(Community Housing Development Organization Reserve)
ENTITLEMENT (70%)
TOTAL HOME
As of 4/30/19
Final
2019
Budget
175,000
500,000
209,453
253,270
1,337,723
100,000
1,437,723
Budget
45,754
22,876
68,629
320,271
457,530
PUBLIC HEARING
Receive comments on the amended Public
Services and Public Facilities and
Improvements line items of the
Consolidated Grant Program's 2019 Annual
Action Plan
0
June 9, 2020
Consider approving a resolution adopting the amended 2019 Annual Action Plan
BE.AUMONT
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Chris Boone, Planning & Community Development Director
MEETING DATE: - June 9, 2020
REQUESTED ACTION: Council conduct a Public Hearing to receive comments on the
amended Public Services and Public Facilities and Improvements
line items of the Consolidated Grant Program's 2019 Annual Action
Plan and consider approving a resolution adopting the amended
2019 Annual Action Plan.
BACKGROUND
Approved in response to the Covid-19 pandemic, the CARES Act allocated $801,000 in
supplemental CDBG funding to the City of Beaumont. In order to utilize these funds, the
Administration is proposing to amend the 2019 Annual Action Plan to incorporate this funding.
The proposed use of the CARES Act funds would be to allocate $600,000 for a Utility and
Rental Assistance Program. This program would provide up to three (3) months of rent and
utility assistance for low -to -moderate income families at risk of becoming homeless. The
program would be administered through local non-profit partners, Henry's Place/Some Other
Place and the Salvation Army. In addition, $140,000 would be allocated to the Southeast Texas
Food Bank to help feed families affected by the pandemic. Administrative costs to administer
the programs would be set at $61,000.
Finally, in order to assist the homeless population, we are proposing to amend the 2019 Action
Plan to specify that $400,000 of the $500,000 Public Facility & Improvement line item be
dedicated to the repair and enhancement of two facilities that assist the homeless population.
These facilities would be Henry's Place/Some Other Place and the Salvation Army.
As mandated by the U. S. Department of Housing and Urban Development (HUD), City Council
has conducted public hearings and work sessions in previous years prior to adopting the City's
Annual Action Plan. Planning & Community Development staff, along with the Community
Development Advisory Committee (CDAC), has hosted Public Hearings in order to receive
public comments on the process and activities related to.the 2019 Annual Action Plan. Attached
is the proposed Amended Budget for the 2019 Program Year.
The proposed budget reflects estimated allocations of $1,337,723 in Community Development
Block Grant (CDBG) funding, an estimated $100,000 in Program Income, $457,530 in HOME
funding -and $801,000 in CDBG-CV-CARES Act funding.
)lice1aIVeM11r)Z�
U.S. Department of Housing and Urban Development (HUD) Community Development Block
Grant and HOME Investment Partnership Grant funds.
RECOMMENDATION
Conduct the Public Hearing and approve the Resolution.
Facilities are wheel chair accessible and accessible parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please
contact (409) 785-4793 for further information.
Esta instalacions ADA son accesible con estacionamineto para personas discapacitadas. En caso de
ser necesarios los servicios interpretativos, por favor, pongase en contacto 48 horas antes de la
reunion y se les proporcionara el servicio necesario. Telefono: (409) 785-4793
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council hereby adopts an amended HUD Consolidated Grant Program's
2019 Annual Action Plan, to amend the budget of the 2019 Action Plan to include
$801,000 in CDBG-CV-CARES Act Funding, thereby resulting in a new 2019 Action Plan
in the amount of $1,337,723 in Community Development. Block Grant (CDBG) funding,
an estimated $100,000 in Program Income, $457,530 in HOME funding and $801,000 in
CDBG-CV-CARES Act funding. The amended Plan 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 9th day of June,
2020.
- Mayor Becky Ames -
AMENDMENT TO THE 2019 HUD CONSOLIDATED GRANT PROGRAM
COMMUNITY DEVELOPMENT BLOCK GRANT -CV (CARES ACT)
Budget
PUBLIC SERVICE ORGANIZATIONS
Utility & Rental Assistance Program: Funds will be used to reimburse 600,000
costs for rent and utility payments of low -to -moderate income residents
that were affected by the pandemic.
Food Bank: Funds would be used to partner with the Southeast Texas 140,000
Food Bank to acquire and distribute food to citizens affected by the
pandemic.
ADMINISTRATION 61,000
Funds will be used for administrative expenses necessary for compliance with
the planning, execution, and regulatory requirements associated with the .
implementation of the HUD Consolidated Grant Program.
TOTAL CDBG-CV 801,000
EXHIBIT "A"
2019 HUD CONSOLIDATED GRANT PROGRAM -Amended
Final
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2019
Budget
CLEARANCE AND DEMOLITION 175,000
Funds will be used to demolish unsafe, unsanitary and uninhabitable residential structures
located in low to moderate income areas.
PUBLIC FACILITY & IMPROVEMENT 500,000
Special Projects ($400,000 shelter repairs; $100,000 Sewer Line Repair Program)
HOUSING
Minor Rehabilitation Program (Habitat for Humanity) 209,453
PUBLIC SERVICES 200,000
Public Service Organizations
Funds will be used for administrative and operating costs for various public service organizations that
provide services to low/moderate income citizens.
ADMINISTRATION 253,270
Funds will be used for personnel and operating expenses necessary for compliance with the planning; execution,
and regulatory requirements associated with the implementation of the HUD Consolidated Grant Program.
TOTAL ENTITLEMENT 1,337,723
Program Income 100,000
Small Business Loan
Historic Preservation Loan Fund
Clearance and Demolition
*Program Income is Estimated
TOTAL CDBG 1,437,723
HOME Budget
AFFORDABLE HOUSING PROGRAM
Funds will be awarded to a non-profit housing development organization that will assist low/moderate
income families in the process of acquiring a home (down payments assistance/closing costs, and mortgage
buy downs).
HOME ADMINISTRATION 45,754
CHDO OPERATING (5%) 22,876
(Community Housing Development Organization Operating)
CHDO RESERVE (15%) 68,629
(Community Housing Development Organization Reserve)
ENTITLEMENT (70%) 320,271
TOTAL HOME 457,530
As of 4/30/19