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08/10/2021 PACKET
BEAUM© NT TEXAS MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY,AUGUST 10,2021 1:30 PM AGENDA CALL TO ORDER * Invocation Pledge Roll Call • Presentations and Recognitions * Public Comment: Persons may speak on Items 1-9 CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non-controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) I. Approval of the July 27, 2021 City Council Meeting Minutes 2. Approve a contract for the purchase of liquid chlorine for use in the Water Utilities Department 3. Authorize the City Manager or his designee to execute a Memorandum of Understanding between the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives 4. Authorize the City Manager to execute Change Order No. I, accept maintenance, and authorize a final payment to Place, Ltd. for the Astor Street Lift Station Repairs Project 5. Approve a contract for the emergency repair of a storm sewer line at the Port of Beaumont REGULAR AGENDA 6. Consider a resolution receiving the proposed FY 2022 Budget and schedule a public hearing 7. Consider a resolution receiving the proposed 2022 Capital Program and schedule a public hearing 8. Consider establishing and taking a record vote on the proposed 2021 tax rate and schedule a public hearing 9. Consider authorizing publication of a notice of intention to issue Certificates of Obligation in an amount not to exceed $33 Million EXECUTIVE SESSION • To discuss and or deliberate economic development negotiations in accordance with Section 551.087 of the Government Code to wit; specifically: Arbor Renewable Gas, LLC is seeking incentives for the creation and potential future expansion of their facility situated between Highway 347 and Ilighway 69 South, to the southwest of the OCI Methanol Plant property. PUBLIC HEARING * Receive comments on a Tax Abatement Agreement with Arbor Renewable Gas, LLC 10. Consider authorizing the City Manager to enter into a Tax Abatement Agreement with Arbor Renewable Gas, LLC COMMENTS * Public Comment(Persons are limited to 3 minutes) + Councilmembers/City Manager/City Attorney comment on various matters EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Claim of Enterprise Rent-A-Car 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 August 10, 2021 Approval of the July 27, 2021 City Council Meeting Minutes BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tina Broussard, TRMC, City Clerk MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider approval of the July 27,2021 City Council Meeting Minutes. BEAUM © NT T E X A S MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert"A.J."Turner Jr., At-Large ROBIN MOUTON, MAYOR Randy Feldschau,At-Large Taylor Neild,Ward I CITY COUNCIL MEETING Michael Getz,Ward II Audwin Samuel, Mayor Pro Tom July 27,2021 Chris Durio,Ward IV Tyrone Cooper, City Attorney Kyle Hayes, City Manager Tina Broussard, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on July 27, 2021, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call * Presentation and Recognition * Public Comment: Persons may speak on items 14-16 Mayor Mouton called the council meeting to order at 1:30 p.m. Pastor Ruby Nelson with First United Methodist Church gave the invocation. Eagle Scout Sam Morshane led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Mouton, Mayor Pro Tem Samuel, Councilmembers Durio, Getz, Turner, Feldschau and Neild. Also, present were Kyle Hayes, City Manager, Tyrone Cooper, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation, Recognitions "Pioneering Women Day" — August 5, 2021 — Proclamation read by Mayor Mouton; accepted by Moline Guillory, President and others Pioneering Women 2021 Honorees Sade' Chick, Stephanie Davis, Debbie Bando, Gabriela Properzi, Belinda George, Susan Gonzalez, Kim Phelan Mayor Mouton read the announcement regarding Executive Session being held at the conclusion of the General Business portion of the meeting. Minutes-July 27,2D21 Public Comment: Persons may speak on items 14-16 Gregory Rice 1130 Monterrey Beaumont TX Spoke regarding Item#9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase of 555 Main Street Preston Frank 7895 Boyt Road Beaumont TX Spoke regarding Item #9 on the agenda, Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, in favor of purchasing 555 Main Street Ketih Blackwood 7740 Weaver Dr. Beaumont TX Spoke regarding Item #9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase of 555 Main Street Steve Hoffman 7045 Blarney St. Beaumont TX Spoke regarding Item #9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase of 555 Main Street Brian Nepveux 6956 Shanahan Dr. Beaumont TX Thanked Councilmember Getz for appointing him to the Economic Development Advisory Board Steve Kuritz 215 E. Florida Ave. Beaumont TX Spoke regarding Item#9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, in favor of purchasing 555 Main Street Brenda Beadle 11136 Cole Dr. Beaumont TX Spoke regarding Item #3 on the consent agenda; approve a management agreement with the Beaumont Council of Garden Club for the Beaumont Botanical Gardens located at 5520 Babe Zaharias Drive Mike Cacioppo 710 Monterrey Dr. Beaumont TX Spoke regarding Item#9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase 555 Main Street, opposed the purchase of 555 Main Street Minutes—July 27,2021 Christopher Matthews 3875 N. Major Dr. Beaumont TX Spoke regarding Item#9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, in favor of purchasing 555 Main Street Dayna Rothenberger 3890 E. Lynwood Dr. Beaumont TX Spoke regarding Item #9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase 555 Main Street, opposed the purchase of 555 Main Street Eric Bender 2770 1 H 10 E. Beaumont TX Spoke regarding Item #9 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase 555 Main Street, opposed the purchase of 555 Main Street David Aldridge 6920 Blarney Beaumont TX Spoke regarding Items#9 and#15 on the agenda; Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase 555 Main Street, Hollis Peterson 825 Norwood Beaumont TX Spoke regarding Item #15 on the agenda; review and discuss water and sewer rates Alto Watson 2605 Gladys Beaumont TX Spoke regarding Item #9 on the agenda, Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street, opposed the purchase 555 Main Street, opposed the purchase of 555 Main Street CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non-controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) Brian Nepveux would be appointed to the Community Development Advisory Committee. The term would commence July 27, 2021 and expire September 30, 2021. (Councilmember Mike Getz) — Resolution 21-174 1. Approval of the July 20, 2021, City Council Meeting Minutes 2. Approve a contractfor painting and related services in various cityfacilities—Resolution 21- 175 3. Approve a Management Agreement with the Beaumont Council of Garden Club for the Beaumont Botanical Gardens located at 5520 Babe Zaharias Drive - Resolution 21-176 Minutes—July 27,2021 4. Authorize the City Manager to execute Change Order No. 2, to the contract with Viking Painting, LLC forthe West Elevated Storage Tank Rehabilitation Project-Resolution 21-177 5. Authorize the City Manager to execute documents to receive supplemental funding through the Department of Homeland Security Grant Program - Resolution 21-178 6. Authorize the execution of a new Mutual Aid Agreement with the local governmental entities within the South East Texas Regional Planning Commission region - Resolution 21-179 7. Amend Resolution 21-162 to include the authorization of a one-time payment to the two Assistant Police Chiefs and the Assistant Fire Chief in an amount equal to 2% of their base wages — Resolution 21-162A 8. Approve a payment to Jefferson County related to the 800 MHz radio system - Resolution 21-180 Councilmember Neild moved to approve the Consent Agenda. Mayor Pro Tern Samuel seconded the motion. AYES: MAYOR MOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS DURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE MOTION PASSED REGULAR AGENDA 9. Consider authorizing the City Manager to execute all documents necessary to acquire the building and property located at 555 Main Street. The City of Beaumont lost property, in certain areas, along the shoreline of Riverfront Park during and as a result of Hurricane Harvey. The property located at 555 Main Street is approximately 3.68 acres in size and includes the formerATT Building that has been vacant for a number of years. The property is located west of the Neches River and is surrounded by City-owned parking lots and streets, specifically the Civic Center Parking Lot; Main Street; Tevis Street and Cypress Street. The additional acreage will allow for possible expansion of Riverfont Park; public spaces such as sidewalks; hike and bike trails and other amenities for citizens and visitors. Once acquired, the City Council would be in control of the building and property and would decide the priorities and next steps. The City would acquire the property for $2,785,000 plus associated fees including various closing cost fees and title company expenses. All of the above expenditures will be paid for with available cash in the General Fund's Fund Balance. The Fund Balance has approximately$50 Million,which is 36% of expenditures in the General Fund. The Financial Policies, adopted by the City Council as a part of the FY 2021 Budget, state the General Fund ending fund balance not to be less than 20% of that fund's annual operating expenditures. Approval of the resolution. Minutes—July27,2021 Mayor Pro Tom Samuel moved to ADOPT A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE ALL DOCUMENTS NECESSARY TO ACQUIRE THE BUILDING AND PROPERTY LOCATED AT 555 MAIN STREET. Councllmember Neild seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM SAMUEL, COUNCILMEMBERS DURIO, TURNER, FELDSCHAU AND NEILD NAYS: COUNCILMEMBER GETZ MOTION PASSED RESOLUTION 21-181 10. Consider a request for a Specific Use Permit to allow a sports bar in a GC-MD (General Commercial — Multiple-Family Dwelling) District located at 2455 S. 111h Street. William Griffin is applying for a Specific Use Permit to allow a sports bar in a GC-MD (General Commercial-Multiple-Family Dwelling) District. The facility will be located in an existing strip center on 11th Street. The address of the property is 2455 S. 11th Street. Hours of operation will be Wednesday -Monday 6 p.m.-2 a.m. and closed on Tuesday. Security will be provided at night. This location pre-dates the landscaping ordinance, so no privacy fence exists between the strip center and the residential properties to the east. An eight (8) foot tall privacy fence will need to be installed and maintained for the full width of the property. At a Joint Public Hearing held on July 19, 2021, the Planning Commission recommended 7:1 to approve the request for a Specific Use Permit to allow a sports bar in a GC-MD (General Commercial-Multiple-Family Dwelling) District with the following conditions: 1. Install and maintain an eight (8) foot tall wood or masonry privacy fence for the width of the property. 2. Construction plans must meet all requirements by Water Utilities for water and sanitary sewer services, including any requirements of the City's pre-treatment and/or F.O.G. program. Approval of the ordinance with the following conditions: Councllmember Turner moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A SPORTS BAR IN A GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 2455 s. 11TH STREET, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Durio seconded the motion. AYES: MAYORMOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS DURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE MOTION PASSED Ordinance 21-043 Minutes-July 27.2021 11. Consider a request for a Specific Use Permit to allow a drive-thru Daiquiri shack or bar in a GC-MD (General Commercial — Multiple-Family Dwelling) District located at 5305 College Street. Chrystal Carter, has requested a Specific Use Permit to allow a drive-thru daiquiri shack or bar at 5305 College Street. This is an operational snow cone stand that is adding alcohol to their menu. All sales will be drive-thru only, and hours of operation will be Monday-Thursday noon-10 p.m., Friday & Saturday noon-midnight and Sunday 1 p.m.-10 p.m. At a Joint Public Hearing held on July 19, 2021, the Planning Commission recommended 8:0 to approve the request for a Specific Use Permit to allow a drive-thru Daiquiri shack or bar in a GC-MD (General Commercial — Multiple-Family Dwelling) District. Approval of the ordinance. Mayor Pro Tern Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DRIVE-THRU DAIQUIRI SHACK OR BAR IN A GC-D (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 5305 COLLEGE STREET IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. COuncilmember Durio seconded the motion. AYES: MAYOR MOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS CURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE MOTION PASSED Ordinance 21-044 12. Consider a request for a Specific Use Permit to allow for a beauty/spa salon in a GC-MD-2 (General Commercial—Multiple-Family Dwelling —2) District located within the 6500 block of Delaware Street. Hani Tohme is requesting a Specific Use Permit to allow a beauty salon/spa on the north side of Delaware just west of Valmont Drive. This space would be rented to hairstylists, nail technicians and massage therapists along with other related professionals. Sola Salon Studios is a chain with 550 locations. Each professional has their own suite to decorate and operate to their own standards and needs. Landscaping requirements for new developments include perimeter landscaping with screening for parking areas and islands throughout the parking area with required trees. At a Joint Public Hearing held on July 19, 2021,the Planning Commission recommended 8:0 to approve the request for a Specific Use Permit to allow for a beauty/spa salon in a GC-MD- 2 (General Commercial—Multiple-Family Dwelling—2) District with the following conditions: 1. Construct a 6' wide landscaping strip for the perimeter of the parking lot to meet City requirements along Delaware Street. 2. Install three (3) landscaped islands to meet City requirements. Minutes—July 27,2021 3. Constructions plans must meet all requirements by Water Utilities for water and sanitary sewer improvements, including any requirements of the City's backflow, pre- treatment and/or F.O.G. program. Approval of the ordinance with the following conditions: 1. Construct a 6'wide landscaping strip for the perimeter of the parking lot to meet City requirements along Delaware Street. 2. Install three (3) landscaped islands to meet City requirements. 3. Constructions plans must meet all requirements by Water Utilities for water and sanitary sewer improvements, including any requirements of the City's backflow, pre- treatment and/or F.O.G. program. Councilmember Turner moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A BEAUTY/SPA SALON IN A GC-MD-2 (GENERAL COMMERCIAL MULTIPLE FAMILY DWELLING-2) DISTRICT FOR PROPERTY LOCATED WITHIN THE 6500 BLOCK OF DELAWARE STREET,WITH THE CONDITIONS,IN THE CITY OF BEAUMONT,JEEFERSON COUNTY,TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR MOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS DURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE MOTION PASSED Ordinance 21-045 13. Consider a request for a Revised Specific Use Permit to allow condominiums in a GC-MD-2 (General Commercial—Multiple-Family Dwelling—2) District located at 4515 N. Major Drive. Phuc Nhat Le is requesting an Amended Specific Use Permit to allow condominiums at4515 N. Major Drive. In September of 2020, Dr. Le requested a development consisting of seventeen (17) condominiums and approximately 23,080 square feet of retail space. In December of 2019, a request for retail and storage was approved. Now, the retail space has been eliminated and seventy (70) condominium units are proposed. The number and location of driveways is subject to approval of TXDOT. Any substantial changes to the site plan resulting from driveway approval may necessitate additional review of the plan via the Specific Use Permit process. At a Joint Public Hearing held on July 19, 2021,the Planning Commission recommended 8:0 to approve the request for a Revised Specific Use Permit to allow condominiums in a GC- MD-2 (General Commercial — Multiple-Family Dwelling — 2) District. Approval of the ordinance. Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE PERMIT TO ALLOW CONDOMINIUMS IN A GC-MD-2(GENERAL COMMERCIAL- MULTIPLE FAMILY DWELLING-2) DISTRICT LOCATED AT 4515 N. MAJOR DRIVE IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Feldschau seconded the motion. Minutes—July 27,2021 AYES: MAYOR MOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS DURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE MOTION PASSED Ordinance 21-046 14. Consider amending Section 20.03.003 of the Code of Ordinances that would change the speed limits on College Street (U.S. Hwy 90). The Texas Department of Transportation (TxDOT) performed a traffic survey on College Street (U.S. Hwy 90) from Dowlen Road to 23r" Street on January 27, 2021. The study indicated an excessive number of crashes compared to similar roadways in Texas.Adetailed crash analysis provided by TxDOT can be found in Exhibit 3. It is anticipated that lowering the speed limit will reduce the number and severity of crashes. Administration and TxDOT propose the speed zone boundaries and speed limit for these sections of College Street (U.S. Hwy 90) be amended under the schedule Chapter 20 Section 20.03.003 to read as follows: Speed In Miles Street Limits of Zone Direction of Per Hour Travel Max. Min. College (a) From a point 90 feet east of the East and 35 Street centerline of the Santa Fe Railroad West (U.S. Hwy tracks to a point 30 feet west of the 90) centerline of Hillebrandt Bayou. (b) From a point 30 feet west of the East and 45 centerline of Hillebrandt Bayou to the West centerline of Dowlen Road. (c) From the centerline of Dowlen Road East and 50 to a point 60 feet east of Wescalder. West (d) From a point 60 feet east of the East and 55 centerline of Wescalder to the west West city limits. Approval for amending Title I Chapter 20 Section 20.03.003 of the Code of Ordinances. Councllmember Nelld moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 20, ARTICLE 20.03, SECTION 20.03.003 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS BY CHANGING AND AMENDING SPEED LIMITS AND SPEED ZONE BOUNDARIES TO THE SCHEDULE FOR COLLEGE STREET (U.S. HWY 90); PROVIDING FOR REPEAL; AND PROVIDING FOR A PENALTY. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON,MAYOR PRO TEM SAMUEL,COUNCILMEMBERS CURIO,GETZ, TURNER, FELDSCHAU AND NEILD NAYS: NONE Minutes—July 27,2021 MOTION PASSED Ordinance 21-047 DISCUSSION ITEMS 1. Review and discuss water and sewer rates Kyle Hayes City Manager reviewed and discussed the water and sewer rates. The City Manager discussed the proposed rate increase of 5% to the water and sewer which would generate an estimated $2.35 million in additional revenue for the water fund. There was, also discussion of the history of water and sewer and the water fund balance increases. FY 2008 8% FY 2013 5% FY 2009 7% FY 2014 6% FY 2010 7% FY 2015 5% FY 2011 6% FY 2017 3% FY 2012 6% FY 2020 5% ".P._tl mfeclttlFY 2022 r 2.i8 FY 2020ey:ey eue¢a tlea� 1wJ13eYnct 16155524 g0]e5tl4 N8J1,461 IS$48,566 1;913 M` R... 49,875,078 47.1.161 121.7tl0 W Eyyiyturcf f48452298 (5043] SOOI1032 (549]6200) (5Ey6290J E—,(D,n,X) 1422789 0.11-1 417105 131355W 340N.p1 FlW 9ativtt I 0]83 D1 I 14.BIL461 S 15248566 S 10913 M6 E 930E E6 %af H.�mdlwes 3A.o 24/o J66 23% IB% 53�6 multll iron nmm^xomatt 2. Review and discuss garbage collection rates Kyle Hayes, City Manager reviewed and discussed garbage collection rates. The City Manager discussed the proposed $1 increase to the garbage rate which would increase garbage from$19.75 to $20.75. The last increase was done in FY 2020. The increase will generate an estimated $400,000 in additional revenue for the solid waste fund. There was, also discussion of the history of garbage rate and solid waste fund balance increases. There was also a rate comparison to other cities that was discussed. Minutes—July 27,2021 Garbage Percentage Rate Increase FY 2008 $ 14.50 3.6% FY 2013 $ 15.00 3.4% FY 2014 $ 16.00 6.7% FY 2016 $ 17.00 6.3% FY 2018 $ 18.25 7.4% FY 2020 $ 19.75 8.2% FY 2022 (Proposed) $ 20.75 5.0% P�Fo,.a Prvjeu FY 20E2 FY20E8 FY E019 FY 2020 FV 202t2] Hutl¢el Bcg=m8 Fund Belsme 50399]5 q,832,]IO 3,843,895 2,938632 2353�'63 He eewes I2,0I7,073 12,1�0,591 1J.J9$Ih2 134.,0. 126f5 W0 Papenddmss 122E13341 (IJ 129390) (16]10405) IO IG93691 (124]O W03 Pxcess(BefwYJ (209261) 938819 m"'6 ) (685369) 325500 [ndmg Rmd..6— $ 6832716 $ 3193195 $ 2938632 E 2"+53'S3 E 192]J63 urngzndnwex 00% 3. 20"/ I6V, 15% COMMENTS * Public Comment (Persons are limited to 3 minutes) Steve Hoffman 7045 Blarney Beaumont TX Spoke to Council regarding the USS Texas, thinks that it's a big item for the city, it can be made a part of history, sounds like people want to make it happen, asked that Council talk about it and get behind it, stated that the city could tie the USS Texas and the river front into one, it will be a jewel in Beaumont's history Mage McMillian 3395 Highland Beaumont TX Stated that he pays child support and has been trying to get in touch with the Attorney Generals Office to go back to court to speak with a judge to get a job so he can go back to work, the Police Department has ruined his background and because of that he can't get a job, asked where does he need to go to find a job that will pay his child support so that he can get his life back and be with his kids Rodney Dencklau 4105 Chaison Ave Beaumont TX Spoke to Council regarding the hydraulic chair at Alice Keith Pool that still hasn't been repaired, the chair has been broken for two years, the lifeguard has requested that it be repaired, and it still hasn't been done, asked that whoever needs to have it repaired to please do so before the pool closes Minutes—July 27,2021 Thefarro Richard 5275 Parkview Dr. Beaumont TX Spoke to Council regarding the homeless that she has helped with tents, sleeping bags and chairs, stated that she comes to Council every week, but this will be her last meeting, she's tired and has gotten five trespassing warrants for giving someone a sleeping bag, also made comments regarding writing a grant Christopher Matthews 3875 N. Major Dr. Beaumont TX Stated that he listened to the discussion item about the water and sewer, asked Council a few questions regarding that issue, also knows that the City of Groves had a grant some years ago to replace all of their sewer lines, the lines in Groves had the clay and old iron lines that had a lot of breakage, was wondering if Beaumont is having those same issues, if so could those lines be replaced and if any funds could be allocated towards that project, commented on water wells also Dayna Rothenberger 3890 E. Lynwood Dr. Beaumont TX Spoke regarding the purchase of property at 555 Main St., stated that Council voted to add more sewage and water responsibility to what the city already has with building new apartments on Major Dr., commented on empty parking lots that had beautiful buildings that are no longer there, asked that people can use the restroom and that they are unlock as well as a place to get something to drink, asked that these things be thought of when moving forward Eric Bender 2770 1 H 10 E. Beaumont TX Stated that he understands that emails don't count, if someone wants to voice their opinion about something that city council wants to do, emails don't count, only letter mail and if there's a letter in the mail it has to have your information, so for people that are concerned about things, it's his understanding that emails aren't considered as a vote or an opinion by Councilmembers and city leaders, it's hard to swallow an increase in two departments when the city has excess money in their slush fund, knows that the Council has good intentions for the riverfront, what he saw at the town hall meeting doesn't seem like there's a plan, it makes no sense to him that Council would do that Hollis Petersen 825 Norwood Beaumont TX Stated to the City Manager that the comments that he made about protocol and what happens with the city when people have sewage issues wasn't her experience or the experience of her neighbors who were having problems at the same time that she was, stated that she did call 311 multiple times, there are many wonderful people that work at the Water Department, stated that she had a sweet gentlemen that gave her their cell phone numbers and came out on Father's Day to help them,the problem was with the city's line and no one would hear that, plumbers or anyone until she spent thousands of dollars to prove that it could not be problem on her line, she also stated to the City Manager that she takes exception when he says that there's a social media problem, stated that she didn't post what was going on with her family, she went through the proper channel, also made additional comments regarding social media, stated that citizens do what works,social media does and the city isn't working right now Minutes—July 27,2021 Steve Kuritz 215 East Florida Beaumont TX Stated that all the land that Nancy Tevis donated to be a park was all of the land on the bluff, all of the city buildings are built on the land that was donated to be a park, stated that he would like to see a park in this area so that development could proceed from the park, stated that he was against the USS Texas coming to Beaumont, since then he has changed his mind, thinks that there's room for both projects, asked that all Council envision what that will look Councilmembers/City Manager/City Attorney comment on various matters COUNCILMEMBER COMMENTS COUNCILMEMBER DURIO - THANKED EVERYONE FOR ATTENDING THE MEETING AND FOR THEIR COMMENTS AND INPUT, IT'S HIS HOPE THAT CITIZENS WILL CONTINUE TO GIVE INPUT AS THEY MOVE FORWARD WITH THE RIVERFRONT PROJECT,ANNOUNCED THAT HARVEST FOR LOST SOULS CHURCH,3395 HIGHLAND,WILL BE GIVING AWAY FREE MEALS FOR THE YOUTH (IT'S A GRAB AND GO) ON WEDNESDAY,JULY 28,2021, FROM 4:00 P.M. TO 6:00 P.M., THERE WILL ALSO BE FREE COVID TESTING COUNCILMEMBER GETZ- CONGRATULATED THE CITY MANAGER, STATED THAT HE FINALLY CAUGHT HIS GREAT WHITE WHALE,STATED THAT THE PURCHASE AND DEMOLITION OF THE AT&T BUILDING THAT EVERYONE ELSE EXCLUDING HIM VOTED ON TODAY SHOWS ARROGANT DISREGARD FOR THE PROCESS, IT SEEMS THAT THEY CAN DO ONE THING HERE AND NOT DO IT ELSEWHERE, STATED THAT HE POINTED THAT OUT IN PREVIOUS COMMENTS IN WHICH HE WAS INTERRUPTED,MADE ADDITIONAL COMMENTS ABOUT WHAT THE CITY COULD DO WITH$5 MILLION DOLLARS THAT COULD BE USED FOR THE HOMELESS, STATED THAT HE WILL GET BEHIND THE PROJECT AND HOPE FOR THE BEST, DOES THINK THAT DOWNTOWN REVITALIZATION AND DEVELOPMENT IS IMPORTANT, THINKS THAT RIVERFRONT DEVELOPMENT IS IMPORTANT ALSO, THE LIKELIHOOD OF A DEVELOPER COMING TO BUILD A RESTAURANT ON THE BACK PARKING LOT OF THE CIVIC CENTER IS REMOTE,STATED THAT HE WILL OFFER NOW DURING HIS COMMENTS AN ALTERNATIVE THAT HE THINKS THE PUBLIC NEEDS TO SEE AS TRULY BEING ABLE TO GET OUT IN FRONT AS RIVERFRONT DEVELOPMENT, SHOWED POSTERS OF DEVELOPMENT AS THEY HAVE IN NAPLES, FLORIDA WITH FOOD TRUCKS ETC., STATED THIS PROJECT COULD COME IN AT LESS THAN A MILLION DOLLARS, STATED THAT IF COUNCIL WOULD LIKE TO DISCUSS THIS FURTHER HE WOULD LIKE TO ASK FOR A SECOND TO HAVE A WORKSHOP Minutes—July 27,2021 COUNCILMEMBER TURNER- STATED THAT THERE WAS A"KNOWYOUR WORTH"BRUNCH HELD ON SUNDAY, JULY 25, 2021, THERE WAS OVER FORTY YOUNG LADIES BETWEEN THE AGES OF 13 AND 18, STATED THAT HE'S AN ADVOCATE OF WHAT IS CURRENTLY BEING DONE IN LEADERSHIP TO HAVE IMPACT ON OUR YOUTH,STATED THAT IT'S HIS UNDERSTANDING THAT THE ENTIRE COUNCIL WILL HAVE INPUT ON WHAT THE COUNCIL WILL DO REGARDING THE RIVERFRONT PROJECT, THINKS IT'S A GREAT OPPORTUNITY FOR ALL OF COUNCIL TO CHIME IN AND HAVE THE IDEAS THAT THEY WANT TO PRESENT FOR THE RIVERFRONT,ANNOUNCED A FREE BASKETBALL CAMP SPONSORED BY PROFESSIONAL BASKETBALL PLAYER NIGEL PEARSON WHO PLAYS OVERSEAS,THE CAMP WILL BE SATURDAY,JULY 21,2021,IF ANY YOUTH IS INTERESTED, HE ASKED THAT THEY REACH OUT TO HIM, STATED THAT EMAILS DO WORK AND HAS BEEN CONTACTED BY A LOT OF CITIZENS AND HAS GOTTEN A LOT DONE THROUGH THAT PROCESS, THANKED EVERYONE FOR ATTENDING THE MEETING COUNCILMEMBER FELDSCHAU - STATED THAT THE AT&T BUILDING HAS BEEN AN EMOTIONALLY CHARGED ISSUE, THERE'S BEEN A LOT OF DISCUSSION AND THERE'S DIFFERENT IDEAS THAT HAVE BEEN PRESENTED, CONVINCED THAT AT THE TOWN HALL MEETING THERE SEEMED TO BE MORE PEOPLE SPEAKING FOR THAN AGAINST,THERE WERE OTHERS THAT SPOKE THROUGH EMAILS THAT HE SAT DOWN AND PERSONALLY RESPONDED TO SIXTY EMAILS, STATED THAT HE DOES TRY AND ANSWERS ALL THE EMAILS THAT HE GETS AND RETURN ALL CALLS THAT HE RECEIVES,KNOWS THAT AT THE TOWN HALL MEETING THE ONE THING THAT HE TOOK AWAY FROM THE MEETING IS THAT THERE IS A GOOD PORTION OF BEAUMONT THAT IS ASKING FOR HOPE, LEADERSHIP THAT IS WILLING TO TAKE RISKS AND BE BOLD AND TRY TO MOVE THE CITY FORWARD, IT WAS A BOLD MOVE WHEN MAYOR AMES AND THE PAST COUNCIL MOVED FORWARD WITH BUILDING THE EVENT CENTRE,STATED THAT BEAUMONT'S POPULATION IS DECLINING,EITHER THE COUNCIL MOVES FORWARD AND TAKE BOLD STEPS TO DO SO OR THE POPULATION WILL CONTINUE TO DECLINE,IT'S NOT EITHER OR DO WE DO THE AT&T BUILDING OR WATER, SEWER OR INFRASTRUCTURE,THE COUNCIL CAN DO BOTH,THANKED ALL OF THE CITIZENS THAT CAME OUT TO SPEAK FOR OR AGAINST, THE COUNCIL HAS ONE AGENDA AND THAT'S TO MAKE BEAUMONT BETTER MAYOR PRO TEM SAMUEL- NONE COUNCILMEMBER NEILD- NONE CITY ATTORNEY COOPER- NONE CITY MANAGER HAYES - NONE Minutes—July 27,2021 MAYOR MOUTON - STATED THAT NO ONE HAS HEARD MORE ABOUT THE AT&T PROJECT THAN SHE HAS, SHE STATED THAT SHE WORKED IN THAT BUILDING FOR THIRTY-TWO YEARS AND AFTER RETIRING FOR ELEVEN YEARS, IN HER NEXT CAREER HERE AT THE CITY SHE'S STILL DEALING WITH THE AT&T BUILDING, EXCITED TO SEE THE PROCESS THAT WENT FORWARD TODAY WITH A SIX TO ONE VOTE, SHE WOULD HAVE LOVED TO SEE A UNANIMOUS VOTE WITH ALL 7, BUT EVEN WHEN IT'S NOT, EVERYONE IS ENTITLED TO THEIR VOTE AND THEIR OPINION, THINKS THAT FOR SIX COUNCILMEMBERS TO MOVE FORWARD TO SEE A CHANGE AND MAKE A BOLD MOVE FOR THE CITY IS SHOWING A DIRECTION IN UNIFYING OUR CITY, IN REGARDS TO THE TOWN HALL MEETING THE COUNCIL HALTED THE VOTE TO HAVE A TOWN HALL MEETING AND HAVE SOME TRANSPARENCY,WHICH IS WHAT THE CITIZENS REQUESTED,EVERYONE THAT WANTED TO SPEAK GOT THE OPPORTUNITY, THE MAJORITY OF THE CITIZENS THAT SPOKE WERE IN FAVOR OF THE PROJECT, AT THIS POINT A VOTE WAS TAKEN, THE VOTE WAS SIX TO ONE AND THE COUNCIL-WILL MOVE FORWARD,WHAT THE COUNCIL IS DOING IS FOR THE CITIZENS OF BEAUMONT, FEELS THAT MOST OF THE CITIZENS ARE EXCITED ABOUT THE PROJECT, THANKED EVERYONE FOR ATTENDING THE MEETING Open session of meeting recessed at 4:34 p.m. CLOSED SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Claim of L&L General Contractors Claim of Enterprise Rent-A-Car Claim of Christopher Shaw Robin Mouton, Mayor Tina Broussard, City Clerk Minutes—July 27.2021 2 August 10, 2021 Approve a contract for the purchase of liquid chlorine for use in the Water Utilities Department BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider a resolution approving a contract for the purchase of liquid chlorine for use in the Water Utilities Department. BACKGROUND Liquid Chlorine is used to purify the City's water supply and to treat sewage discharge. The Water Utilities Department expects to purchase approximately one hundred fifty(150)tons of this material during the term of this contract, which is six months. Bids were requested from six vendors and two responses were received. One of the responses was a no bid. DXI Industries,Inc. of Houston holds the current contract and responded with the sole bid of$1,164.00 per ton and a container rental fee of$3,000 for six months, for a total estimated amount of$177,600. This represents a 34% increase in the price of this material over the last contract. Material shortages in the industry, partly due to a manufacturing facility being offline, has caused the increase in cost. Specifications allow for a six month contract with the option of two renewals of six month terms at the same pricing as the awarded contract. There are no local vendors of this commodity. Bid tabulation is attached. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. WHEREAS, bids were solicited for a six (6) month contract, with the option of two (2) renewals of six (6) month terms at the same pricing as the awarded contract, for the purchase of Liquid Chlorine for use by the Water Utilities Department; and, WHEREAS, DXI Industries, Inc., of Houston, Texas, submitted a bid for a total estimated amount of$177,600.00 in the unit amounts as shown on Exhibit 'A" attached hereto; and, WHEREAS, the City Council is of the opinion that the bid submitted by DXI, Industries, Inc., of Houston, Texas, is the lowest responsible bidder providing the best value to the City 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 DXI Industries, Inc., of Houston, Texas, for a six (6) month contract, with the option of two (2) renewals of six (6) month terms at the same pricing as the awarded contract, for the purchase of Liquid Chlorine for a total estimated amount of$177,600.00 in the unit amounts as shown on Exhibit "A," attached hereto, be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with DXI Industries, Inc., of Houston, 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10th day of August, 2021. - Mayor Robin Mouton - City of Beaumont Texas BEAUM©NT Purchasing Division Bid Tabulation Bid Name: Six(6(Month Contract for Liquid Chlorine Bid Number: TF0721-30 Bid Opening: Thursday,July 29,2021 Contact Person: Terry Welch, Purchasing Manager tenw.welch(fteaumonttexas.aov Phone 409-880-3107 DXI Industries Bmnnlag Vendor City/State Houston,Tx Q Phone or Faz No. 281-457-4807 Lancaster,Tx F- Q ITEM DESC (TONS) Unit Price Extended Price Unit PricePn tl = X 11 1 Liquid Chlorine 150 $1,164.00 E174,600.00 no bid no bid 2 Rental/Other $3,000.00 no bid no bid Charges TOTAL BID $177,600.00 NO BID Qualified low bidder is DXI Industries, as Hi Lighted in Bold. 3 August 10, 2021 Authorize the City Manager or his designee to execute a Memorandum of Understanding between the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: James P. Singletary, Chief of Police MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider a resolution authorizing the City Manager or his designee to execute a Memorandum of Understanding between the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. BACKGROUND For many years, the Beaumont Police Department has participated in the ATF Task Force, and currently has one sworn officer assigned as a Task Force Officer. Main activities of the Task Force are to investigate firearms trafficking and firearms related violent crime. The attached Memorandum of Understanding provides guidelines under which the two agencies participate in the Task Force. It addresses procedures and responsibilities regarding personnel assignment and supervision, resource allocation, case assignments, evidence handling, and information sharing. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. 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 Memorandum of Understanding between the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the purpose of addressing procedures and responsibilities regarding personnel assignment and supervision, resource allocation, case assignments, evidence handling, and information sharing. The Memorandum of Understanding 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 10th day of August, 2021. - Mayor Robin Mouton - U.S.Department of Justice 2615 Calder Avenue,Suite 330 Beaumont, TX 77702 Bureau of Alcohol,Tobacco, Firearms and Explosives Houston Field Division w atceov MEMORANDUM OF UNDERSTANDING BETWEEN THE BUREAU OF ALCOHOL,TOBACCO,FIREARMS AND EXPLOSIVES (ATF), And THE BEAUMONT POLICE DEPARTMENT (BPD) This Memorandum of Understanding ("MOU") is entered into by and between the Bureau of Alcohol,Tobacco, Firearms and Explosives ("ATF") and the Beaumont Police Department ("participating agency") as it relates to the ATF Task Force(herein referred to as the "Task force"). AUTHORITIES The authority to investigate and enforce offenses under provisions of this MOU are found at 28 U.S.C. § 599A, 28 C.F.R. §§ 0.130, 0.131, and 18 U.S.C. § 3051. PURPOSE The Task Force will perform the activities and duties described below: a. Investigate firearms trafficking b. Investigate firearms related violent crime c. Gather and report intelligence data relating to trafficking in firearms d. Conduct undercover operations where appropriate and engage in other traditional methods of investigation in order that the Task Force's activities will result in effective prosecution before the courts of the United States and the State of Texas. e. Combat criminal organizations MEASUREMENT OF SUCCESS The success of this initiative will be measured by the participating agencies willingness to share certain information, (i.e crime statistics) for the purpose of measuring the success of the task force as well as its performance. ATF)LEO Task Force MOU -March 2021, v2 Page 1 EXHIBIT "A" PHYSICAL LOCATION Officers/hoopers/agents assigned to this Task Force by their employer shall be referred to as task force officers (TFOs). TFOs will be assigned to the ATF Beaumont Field Office and will be located at 2615 Calder Avenue, Suite 330, Beaumont,TX 77702. SUPERVISION AND CONTROL The day-to-day supervision and administrative control of TFOs will be the mutual responsibility of the participants, with the ATF Special Agent in Charge or his/her designee having operational control over all operations related to this Task Force. Each TFO shall remain subject to their respective agencies'policies and shall report to their respective agencies regarding matters unrelated to this agreement/task force. With regard to matters related to the Task Force,TFOs will be subject to Federal law and Department of Justice(DOJ) and ATF orders, regulations and policy, including those related to standards of conduct, sexual harassment,equal opportunity issues and Federal disclosure laws. Failure to comply with this paragraph could result in a TFO's dismissal from the Task Force, PERSONNEL,RESOURCES AND SUPERVISION To accomplish the objectives of the Task Force, ATF will assign Special Agents to the Task Force. ATF will also, subject to the availability of funds, provide necessary funds and equipment to support the activities of the ATF Special Agents and officers assigned to the Task Force. This support may include office space,office supplies, travel funds,funds for the purchase of evidence and information, investigative equipment, training, and other support items. Each participating agency agrees to make available to their assigned task members any equipment ordinarily assigned for use by that agency. In the event ATF supplies equipment (which may include vehicles, weapons or radios), TFOs must abide by any applicable ATF property orders or policy and may be required to enter into a separate agreement for their use. To accomplish the objectives of the Task Force, the Beaumont Police Department agrees to detail one(1) fulltime TFO to the Task Force for a period of not less than two (2) years. All TFOs shall qualify with their respective firearms by complying with ATF's Firearms and Weapons Policy. SECURITY CLEARANCES All TFOs will undergo a security clearance and background investigation, and ATF shall bear the costs associated with those investigations.TFOs must not be the subject of any ongoing investigation by their department or any other law enforcement agency, and past behavior or punishment, disciplinary, punitive, or otherwise, may disqualify one from eligibility to join the ATF JLEO Task Force MOU- March 2021,v2 Page 2 Task Force. ATF has final authority as to the suitability of TFOs for inclusion on the Task Force. DEPUTATIONS ATF,as the sponsoring Federal law enforcement agency,may request at its sole discretion that the participating agency's TFOs be deputized by the U.S. Marshals Service to extend their jurisdiction, to include applying for and executing Federal search and arrest warrants, and requesting and executing Federal grand jury subpoenas for records and evidence involving violations of Federal laws. Such requests will be made on an individual basis as determined by ATF. A TFO will not be granted Department of Justice legal representation if named as a defendant in a private-capacity lawsuit alleging constitutional violations unless all deputation paperwork has been completed prior to the event(s) at issue in the lawsuit. The participating agencies agree that any Federal authority that may be conferred by a deputation is limited to activities supervised by ATF and will terminate when this MOU is terminated or when the deputized TFOs leave the Task Force, or at the discretion of ATF. ASSIGNMENTS, REPORTS AND INFORMATION SHARING An ATF supervisor or designee will be empowered with designated oversight for investigative and personnel matters related to the Task Force and will be responsible for opening, monitoring, directing, and closing Task Force investigations in accordance with ATF policy and the applicable United States Attorney General's Guidelines. Assignments will be based on,but not limited to, experience, training and performance,in addition to the discretion of the ATF supervisor. All investigative reports will be prepared utilizing ATF's investigative case management system, (N-Force) utilizing ATF case report numbers. The participating agency will share investigative reports, findings, intelligence, etc.,in furtherance of the mission of this agreement, to the fullest extent allowed by law. For the purposes of uniformity, there will be no duplication of reports, but rather a single report prepared by a designated individual which can be duplicated as necessary. Every effort should be made to document investigative activity on ATF Reports of Investigation (ROI), unless otherwise agreed to by ATF and the participating agency(ies). This section does not preclude the necessity of individual TFOs to complete forms required by their employing agency. Information will be freely shared among the TFOs and ATF personnel with the understanding that all investigative information will be kept strictly confidential and will only be used in furtherance of criminal investigations. No information gathered during the course of the Task Force, to include Informal communications between TFOs and ATF personnel, may be disseminated to any third party, non-task farce member by any task force member without the express permission of the ATF Special Agent in Charge or his/her designee. ATF JLEO Task Force MOU-March 2021,v2 Page 3 Any public requests for access to the records or any disclosures of information obtained by task force members during Task Force investigations will be handled in accordance with applicable statutes, regulations, and policies pursuant to the Freedom of Information Act and the Privacy Act and other applicable federal and/or state statutes and regulations. INVESTIGATIVE METHODS The parties agree to utilize Federal standards pertaining to evidence handling and electronic surveillance activities to the greatest extent possible. However, in situations where state or local laws are more restrictive than comparable Federal law, investigative methods employed by state and local law enforcement agencies shall conform to those requirements, pending a decision as to a venue for prosecution. The use of other investigative methods (search warrants, interceptions of oral communications, etc.) and reporting procedures in connection therewith will be consistent with the policy and procedures of ATF. All Task Force operations will be conducted and reviewed in accordance with applicable ATF and Department of Justice policy and guidelines. None of the parties to this MOU will knowingly seek investigations under this MOU that would cause a conflict with any ongoing investigation of an agency not party to this MOU. It is incumbent upon each participating agency to notify its personnel regarding the Task Force's areas of concern and jurisdiction. All law enforcement actions will be coordinated and cooperatively carried out by all parties to this MOU. INFORMANTS ATF guidelines and policy regarding the operation of informants and cooperating witnesses will apply to all informants and cooperating witnesses directed by TFOs. Informants developed by TFOs may be registered as informants of their respective agencies for administrative purposes and handling. The policies and procedures of the participating agency with regard to handling informants will apply to all informants that the participating agency registers. In addition, it will be incumbent upon the registering participating agency to maintain a file with respect to the performance of all informants or witnesses it registers. All information obtained from an informant and relevant to matters within the jurisdiction of this MOU will be shared with all parties to this MOU. The registering agency will pay all reasonable and necessary informant expenses for each informant that a participating agency registers. DECONFLICTION Each participating agency agrees that the deconfliction process requires the sharing of certain operational information with the Task Force, which,if disclosed to unauthorized persons, could endanger law enforcement personnel and the public. As a result of this concern, each participating agency agrees to adopt security measures set forth herein: a. Each participating agency will assign primary and secondary points of contact. ATF JLEO Task Force MOU -March 2021,v2 Page 4 b. Each participating agency agrees to keep its points of contact list updated. The points of contact for this Task Force are: ATF: ARAC Jennifer Doreck Participating Agency: Lt. Mike Mills EVIDENCE Evidence will be maintained by the lead agency having jurisdiction in the court system intended for prosecution. Evidence generated from investigations initiated by a TFO or ATF special agent intended for Federal prosecution will be placed in the ATF designated vault, using the procedures found in ATF orders. All firearms seized by a TFO must be submitted for fingerprint analysis and for a National Integrated Ballistic Information Network(NIBIN) examination. Once all analyses are completed, all firearms seized under Federal law shall be placed into the ATF designated vault for proper storage. All firearms information/descriptions taken into ATF custody must be submitted to ATF's National Tracing Center. dURISDICTION/PROSECUTIONS Cases will be reviewed by the ATF Special Agent in Charge or his/her designee in consultation with the participating agency and the United States Attorney's Office and appropriate State's attorney offices, to determine whether cases will be referred for prosecution to the U.S. Attorney's Office or to the relevant State's attorney's office. This determination will be based upon which level of prosecution will best serve the interests of justice and the greatest overall benefit to the public. Any question that arises pertaining to prosecution will be resolved through discussion among the investigative agencies and prosecuting entities having an interest in the matter. In the event that a state or local matter is developed that is outside thejurisdiction of ATF or it is decided that a case will be prosecuted on the state or local level, ATF will provide all relevant information to state and local authorities,subject to Federal law. Whether to continue investigation of state and local crimes is at the sole discretion of the state or local participating agency. USE OF FORCE All fulltime TFOs will comply with ATF and the Department of Justice's (DOD's) Use of Force orders and policies. TFOs must be briefed on ATF's and DOS's Use of Force policy by an ATF official, and will be provided with a copy of such policy. BODY WORN CAMERAS AND TASK FORCE OFFICERS ATF JLEO Task Force MOU- March 2021,v2 Page 5 In accordance with DOI policy, dated October 29, 2020,Body Worn Cameras(BWCs)may be worn by TFOs operating on a Federal Task Force when their parent agency mandates their use by personnel assigned to the task force. In such cases, the parent agency must formally request to participate in the TFO BWC program and, upon approval, shall comply with all DOJ and ATF policies, and the required procedures,documentation, and reporting while participating on the task force. MEDIA Media relations will be handled by ATF and the U.S. Attorney's Office's public information officers in coordination with each participating agency. Information for press releases will be reviewed and mutually agreed upon by all participating agencies, who will take part in press conferences. Assigned personnel will be informed not to give statements to the media concerning any ongoing investigation or prosecution under this MOU without the concurrence of the other participants and, when appropriate, the relevant prosecutor's office. All personnel from the participating agencies shall strictly adhere to the requirements of Title 26, United States Code, § 6103. Disclosure of tax return information and tax information acquired during the course of investigations involving National Firearms Act (NFA) firearms as defined in 26 U.S.C., Chapter 53 shall not be made except as provided by law. SALARY/OVERTIME COMPENSATION During the period of the MOU, participating agencies will provide for the salary and employment benefits of their respective employees. All participating agencies will retain control over their employees' work hours,including the approval of overtime. ATF may have funds available to reimburse overtime to the State and Local TFO's agency, subject to the guidelines of the Department of Justice Asset Forfeiture Fund. This funding would be available under the terms of a memorandum of agreement (MOA) established pursuant to the provisions of 28 U.S.C. section 524. The participating agency agrees to abide by the applicable Federal law and policy with regard to the payment of overtime from the Department of Justice Asset Forfeiture Fund. The participating agency must be recognized under State law as a law enforcement agency and their officers/troopers/investigators as sworn law enforcement officers. If required or requested, the participating agency shall be responsible for demonstrating to the Department of Justice that its personnel are law enforcement officers for the purpose of overtime payment from the Department of Justice Asset Forfeiture Fund. This MOU is not a funding document. In accordance with these provisions and any MOA on asset forfeiture, the ATF Special Agent in Charge or designee shall be responsible for certifying reimbursement requests for overtime expenses incurred as a result of this agreement. AUDIT INFORMATION ATF 11,130 Task Force MOU- March 2021,v2 Page 6 Operations under this MOU are subject to audit by ATF, the Department of Justice's Office of the Inspector General, the Government Accountability Office, and other Government-designated auditors. Participating agencies agree to permit such audits and to maintain all records relating to Department of Justice Asset Forfeiture Fund payments for expenses either incurred during the course of this Task Force or for a period of not less than three(3) years and, if an audit is being conducted, until such time that the audit is officially completed, whichever is greater. FORFEITURES/SEIZURES All assets seized for administrative forfeiture will be seized and forfeited in compliance with the rules and regulations set forth by the U,S. Department of Justice Asset Forfeiture guidelines. When the size or composition of the item(s) seized make it impossible for ATF to store it, any of the participating agencies having the storage facilities to handle the seized property agree to store the property at no charge and to maintain the property in the same condition as when it was first taken into custody. The agency storing said seized property agrees not to dispose of the property until authorized to do so by ATF. The MOU provides that proceeds from forfeitures will be shared, with sharing percentages based upon the U.S. Department of Justice Asset Forfeiture policies on equitable sharing of assets, such as determining the level of involvement by each participating agency. Task Force assets seized through administrative forfeiture will be distributed in equitable amounts based upon the number of full-time persons committed by each participating agency. Should it become impossible to separate the assets into equal shares, it will be the responsibility of all the participating agencies to come to an equitable decision. If this process fails and an impasse results, ATF will become the final arbitrator of the distributive shares for the participating agencies DISPUTE RESOLUTION In cases of overlapping jurisdiction, the participating agencies agree to work in concert to achieve the Task Force's goals and objectives. The parties to this MOU agree to attempt to resolve any disputes regarding jurisdiction, case assignments and workload at the lowest level possible. LIABILITY ATF acknowledges that the United States is liable for the wrongful or negligent acts of omissions of its officers and employees, including TFOs, while on duty and acting within the scope of their federal employment, to the extent permitted by the Federal Tort Claims Act. Claims against the United States for injury or loss of property,personal injury, or death arising or resulting from the negligent or wrongful act or omission of any Federal employee while acting within the scope of his or her office or employment are governed by the Federal Tort Claims Act, 28 U.S.C. sections 1346(b), 2672-2680 (unless the claim arises from a violation of the Constitution of the United States, or a violation of a statute of the United States under which other recovery is authorized). ATF JLEO Task Force MOU- March 2021,v2 Page 7 Except as otherwise provided, the parties agree to be solely responsible for the negligent or wrongful acts or omissions of their respective employees and will not seek financial contributions from the other for such acts or omissions. Legal representation by the United States is determined by the United States Department of Justice on a case-by-case basis. ATF cannot guarantee the United States will provide legal representation to any State or local law enforcement officer. Liability for any negligent or willful acts of any agent or officer undertaken outside the terms of this MOU will be the sole responsibility of the respective agent or officer and agency involved. DURATION This MOU is effective with the signatures of all parties and terminates at the close of business on September 30, 2026. This MOU supersedes previously signed MOUs and shall remain in effect until the aforementioned expiration date or until it is terminated in writing (to include electronic mail and facsimile), whichever comes first. All participating agencies agree that no agency shall withdraw from the Task Force without providing ninety (90)days written notice to other participating agencies. If any participating agency withdraws from the Task Force prior to its termination, the remaining participating agencies shall determine the distributive share of assets for the withdrawing agency, in accordance with Department of Justice guidelines and directives. The MOU shall be deemed terminated at the time all participating agencies withdraw and ATF elects not to replace such members, or in the event ATF unilaterally terminates the MOD upon 90 days written notice to all the remaining participating agencies. MODIFICATIONS This agreement may be modified at any time by written consent of all participating agencies. Modifications shall have no force and effect unless such modifications are reduced to writing and signed by an authorized representative of each participating agency. SIGNATURES James Singletary Date Frederick Milanowski Date Chief Special Agent in Charge, ATF Beaumont Police Department Houston Field Division ATF JLEO Task Force MOU- March 2021,v2 Page 8 4 August 10, 2021 Authorize the City Manager to execute Change Order No. 1, accept maintenance, and authorize a final payment to Place, Ltd. for the Astor Street Lift Station Repairs Project BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bar( Bartkowiak, Director of Public Works&Technology Services MEETING DATE: August 10,2021 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute Change Order No. 1, accept maintenance, and authorize a final payment to Place, Ltd. for the Astor Street Lift Station Repairs Project. BACKGROUND On July 28, 2020, by Resolution 20-157, City Council awarded a contract to Place, Ltd., of Lumberton,for the Astor Street Lift Station Repairs Project in the amount of$151,546.39. Proposed Change Order No. 1, with no dollar amount, is required to add a total of seven (7) calendar days to the contract time to reflect the actual time used in the completion of the project. 'the additional seven (7) days were needed for utility coordination with Entergy. If approved, Change Order No. 1 would result in no change to the original contract amount. The project has been inspected by Water Utilities and found to be complete in accordance with the provisions and terms set out in the contract. Acceptance of Change Order No. 1, maintenance, and a final payment in the amount of$7,577.32 is recommended. FUNDING SOURCE $101,647.43 from FEMA and$49,898.96 from the Harvey Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. 20-157 WHEREAS, the City of Beaumont solicited bids for furnishing all labor, materials, equipment, and supplies for the Astor Street Lift Station Repairs Project; and, WHEREAS, Placo, Ltd., of Lumberton, Texas, submitted a complete bid meeting specifications in the amount of$151,546.39; and, WHEREAS, the City Council is of the opinion that the bid submitted by Placo, Ltd., of Lumberton,Texas, is the lowest responsible bidder providing services at the best value to the City 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 City Council hereby approves the award of a contract to Placo, Ltd., of Lumberton, Texas, in the amount of$151,546.39, for the Astor Street Lift Station Repairs Project; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Placo, Ltd., of Lumberton, 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. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28th day of July, 2020. eayor Becky Ames - APPROVAL OF CONTRACT CHANGE CHANGE ORDER No.One(1)&Final DATE: July 27,2021 _ PROIEa: City of Beaumont,Texas Lift Station&W WTP Nepai's Tropical Storm Harvey Astor Street Lift Station Bid No.WU0620 0(FEMA Project 413476 OWNER: City Of Beaumont,Texas 801 Main Street Beaumont,Texas 72204 CONTRACTOR: Place,Ltd, 11939 Leatherwood Drive Lumberton,Texas 27657 TO THE OWNER. Approval of the following contract change is requested. Reason for Change: To adjust Contract Time due to coordination with Energy on power connection at the lift station site ORIGINAL CONTRACT AMOUNT: $ 15154639 TOTAL AMOUNT OF THIS CHANGE ORDER NO.1&FINAL $ 000 TOTAL REVISED CONTRACT AMOUNT INCLUDING THIS CHANGE ORDER $ 15154639 CONTRACT TIME Original Contract Time: 120 calendar days Additional time requested for coordination with Entergy ).lend.,days _ Revised Contract Time per this Change Order 127 c.tender days CONDITION OF CHANGE: "Contractor acknowledges and agrees that the adjustments In contract price and contract time stipulated in this Change Order represents full compensation for all increases and decreases in the cost ol,and the time required to perform the entire work under the Contract arising directly or indirectly from this Change Order and all previous Change Orders. Acceptance of this waiver constitutes an agreement between Owner and Contractor that the Change Order represents an all inclusive,mutually agreed upon adjustment to the Contract,and that Contractor will waive all rights to file a claim on this Change Order after it is properly executed" Re< m a APprovetl by: AccePte A Uri Schaumburg& elk,Inc. C!"t Beaumont Place Ltd. Engineer o p Owner Contr ctor Pan:O G7 L cote: Date: — � — Page 1 of 1 PLACO,LTD. Invoice No. 12554 P.O.BOX 8120 pwj c, LUMBERTON,TX 77657 LX[St4tlorreaW R"al. Office(409)755-3878 Tropical seam Harvey Aetw9 tart Station Fax (409)755-IW Md No.WUOR009/PEMI1Pro)eotMUM cwvk lCmbactAmt E 151,516.39 WT. CHyaBas oot wm maN SL Baaasaek TX EsOmab No.RETAINAOE Dab:OW17M a7a% a,.wenea.pfr. ao„uyanramt Anaa.a caiepleen ouemryoae,va ]w eaepe.m cam Na MaerlWon Fato am, IMa Umo,b CamwV Foe Nwle,e Comle►lalr F .Ndbda Mla9a MI01 latr4Mloa oele 1 NaEWulbn 1 LS 1516.39 100% 15 .W 0% 11M 4645M 2 Eftft Ektakal i LS 23000.00 100.0% 23o00A0 O% iw.m 23000.00 3 sm,l 1 LS ztlmm 1000% 21000.W 0.0% 1110.o% 21000.W 4 EWsW PlaBmn 1 LS 000.00 100% 25000.00 0% 100% 25000.00 5 El"k 1 IS ]8000.00 100% ] 000.00 0% 100% 78.000.W Total Work-Odpkal Convect 151,548.39 - 151,546.39 Cnmpe Orders Malerlatm HaW Total Wort 8 Nelerbl on Hanr 151,58.E - 151,518.59 Pals: Rebkrepe 5% 7.577.32 7,577M Law Plevlow Estlnalas 143,969.07 113,989.0] Amcom Use Maim Ps, 0.00 7,A7.E2 ],ST7.32 Approval: coakaear oako- •z Jdl R klem Oab� rtaeG, Omer Doh: 1 Owner Dale: RESOLUTION NO. WHEREAS, on July 28, 2020, the City Council of the City of Beaumont, Texas, passed Resolution No. 20-157 awarding a contract in the amount of $151,546.39 to Placo, Ltd., of Lumberton, Texas, for the Astor Street Lift Station Repairs Project; and, WHEREAS, Change Order No. 1, in the amount of ($0.00) is necessary to add a total of seven (7) calendar days to the contract time to reflect the actual time used in the completion of the project, thereby having no effect on the total contract amount of $151,546.39; and, WHEREAS, the project has been inspected by the Water Utilities Division and found to be complete in accordance with the provisions and terms set forth in the contract; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Manager be and he is hereby authorized to execute Change Order No. 1, in the amount of ($0.00), to add a total of seven (7) calendar days to the contract time to reflect the actual time used in the completion of the project, thereby having no effect on the total contract amount of$151,546.39; and, BE IT FURTHER RESOLVED THAT the Astor Street Lift Station Repairs Project be and the same is hereby accepted; and, BE IT ALSO RESOLVED THAT the City Manager is hereby authorized to make final payment in the amount of$7,577.32 to Placo, Ltd., of Lumberton, Texas. 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 10th day of August, 2021. - Mayor Robin Mouton - 5 August 10, 2021 Approve a contract for the emergency repair of a storm sewer line at the Port of Beaumont BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider a resolution approving a contract for the emergency repair of a storm sewer line at the Port of Beaumont. BACKGROUND A storm sewer line that serves the area of Main Street at Blanchette Street crosses the Port of Beaumont's property. This line has collapsed under a train track, causing localized street flooding and affecting the integrity of the track. Due to the strict security requirements of the work area within the Port's property, coupled with the specialty nature of railroad track work, the City recommends awarding the contract to the Port's preferred contractor to perform the emergency repair, Trans-Global Solutions, Inc. of Beaumont in the amount of$79,093.69. The contractor will complete the project in seven(7) calendar days. FUNDING SOURCE Public Works General Fund. RECOMMENDATION Approval of the resolution. 6 August 10, 2021 Consider a resolution receiving the proposed FY 2022 Budget and schedule a public hearing BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider a resolution receiving the proposed FY 2022 Budget and schedule a public hearing. BACKGROUND Article VI, Section 2 of the City Charter requires that the proposed budget be submitted to the Council at least 45 days prior to the beginning of the new fiscal year. In addition, Section 4 requires Council to schedule a public hearing on the proposed budget. FUNDING SOURCE Not applicable. RECOMMENDATION The Administration recommends that a public hearing be held on August 24, 2021, at 1:30 p.m. in Council Chambers, located at 801 Main Street. The City Clerk will publish the notice of the public hearing. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the proposed FY 2022 Budget has been received and a public hearing is hereby scheduled for August 24, 2021 at 1:30 PM in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas; and, BE IT FURTHER RESOLVED THAT the City Clerk is to publish notice of said hearing pursuant to the Charter of the City of Beaumont. 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 10th day of August, 2021. - Mayor Robin Mouton - August 10, 2021 Consider a resolution receiving the proposed 2022 Capital Program and schedule a public hearing BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider a resolution receiving the proposed 2022 Capital Program and schedule a public hearing. BACKGROUND The proposed 2022 Capital Program was originally submitted to Council on May 14, 2021. Article VI, Section 20 of the City Charter requires Council to schedule a public hearing on the proposed Capital Program. FUNDING SOURCE Not applicable. RECOMMENDATION The Administration recommends that a public hearing be held on August 24, 2021, at 1:30 p.m. in Council Chambers, located at 801 Main Street. The City Clerk will publish the notice of the public hearing. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the proposed FY 2022 Capital Program has been received and a public hearing is hereby scheduled for August 24, 2021 at 1:30 PM in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas; and, BE IT FURTHER RESOLVED THAT the City Clerk is to publish notice of said public hearing pursuant to the Charter of the City of Beaumont. 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 10th day of August, 2021. - Mayor Robin Mouton - 8 August 10, 2021 Consider establishing and taking a record vote on the proposed 2021 tax rate and schedule a public hearing BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider establishing and taking a record vote on the proposed 2021 tax rate and schedule a public hearing. BACKGROUND Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rate and requires the governing body to hold a public hearing when the proposed tax rate exceeds the lower of the no-new revenue or voter-approval tax rate. Administration recommends Council establish a tax rate required to support the City Manager's proposed budget equal to the tax rate of$0.705000/$100 of valuation. In accordance with Chapter 26 of the Property Tax Code, if the proposed rate exceeds the no-new revenue rate of $0.647582/$l00 or the voter-approval tax rate of$0.706322/$100,the City Council must take a record vote to place the proposal to adopt the rate on the agenda of a future meeting. The no- new revenue tax rate is the rate that would produce the same amount of taxes in FY 2022 as was produced in FY 2021 if it was applied to the same properties taxed in both years. The proposed tax rate of$0.705000/$100 exceeds the no-new revenue tax rate of$0.647582/$100 by $0.057418/$100 or 8.87%. If the motion passes, a public hearing must be scheduled. his recommended that the public hearing be held on September 14, 2021, at 1:30 p.m. in the Council Chambers. FUNDING SOURCE Not applicable. RECOMMENDATION The Administration recommends that a public hearing be held on September 14, 2021, at 1:30 p.m. in Council Chambers, located at 801 Main Street. The City Clerk will publish the notice of the public hearing. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the 2021 tax rate is proposed to be $0.705000/$100 of valuation; and, BE IT FURTHER RESOLVED THAT the date of September 14, 2021 be and the same is hereby set as the date at which the City Council will conduct public hearings on the proposed tax rate. The meeting will be held in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas at 1:30 PM September 14, 2021 at which times the Council will receive public comment on the proposed tax rate of $0.705000/$100 of valuation; and, BE IT ALSO RESOLVED THAT the City Clerk is to publish notice of said public hearing pursuant to V.T.C.A., Tax Code §26.06. 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 10th day of August, 2021. - Mayor Robin Mouton - 9 August 10, 2021 Consider authorizing publication of a notice of intention to issue Certificates of Obligation in an amount not to exceed$33 Million BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: August 10, 2021 REQUESTED ACTION: Council consider authorizing publication of a notice of intention to issue Certificates of Obligation in an amount not to exceed $33 Million. BACKGROUND On July 20, 2021, Council discussed the proposed 2022-2026 Capital Program. The proposed Capital Program included $16 Million for the Street Rehabilitation Program; $4 Million for City- Wide Ditching; $2 Million for Storm Water Point Repairs; $4 Million for Threadneedle Storm Water Line Repairs; and $7 Million for an Asphalt Overlay on 41h Street. The proposed issue in an amount not to exceed $33 Million would be used to fund those projects. Issuance of the Certificates is tentatively scheduled for September 28, 2021, with the delivery and receipt of the proceeds by the City on October 26, 2021. FUNDING SOURCE All debt and other expenses related to the Certificates of Obligation shall be incurred by the Debt Service Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, AUTHORIZING THE PUBLICATION OF THE NOTICE OF INTENTION TO ISSUE CITY OF BEAUMONT,TEXAS CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $33,000,000 FOR THE CONSTRUCTION OF PUBLIC WORKS AND ANY ITEMS RELATED THERETO AND FOR THE PAYMENT OF CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES, AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, the City Council (the "City Council') of the City of Beaumont, Texas (the "City'), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works and machinery, any items related thereto, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; and, WHEREAS, the City Council has determined that it is in the best interest of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $33,000,000 (the "Certificates of Obligation") for the purpose of (1) the construction of public works, more specifically,the construction and improvement of roads and the drainage system, and any items related thereto, and (2) payment of professional services incurred in connection with item (1); and, WHEREAS, pursuant to Section 271.049 of the Texas Local Government Code, prior to the issuance of the Certificates of Obligation, the City is required to publish notice of its intention to issue the Certificates of Obligation (the "Notice') in a newspaper of general circulation in the City stating (i) the time and place the City Council tentatively proposes to pass the ordinance authorizing the issuance of the Certificates of Obligation, (ii) the maximum amount of Certificates of Obligation proposed to be issued, (iii) the purpose for which the Certificates of Obligation are to be issued, (iv)the manner in which the Council proposes to pay for the Certificates of Obligation; (v) the following: (A) the then-current principal of all outstanding debt obligations of the issuer; (B)the then-current combined principal and interest required to pay all outstanding debt obligations of the issuer on time and in full, which may be based on the issuer's expectations relative to the interest due on any variable rate debt obligations; (C) the maximum principal amount of the certificates to be authorized; and (D) the estimated combined principal and interest required to pay the certificates to be authorized on time and in full; (vi) the estimated interest rate for the certificates to be authorized of that the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (vii) the maximum maturity date of the certificates to be authorized; and, WHEREAS, for purposes of providing for the sale of the Certificates of Obligation, the City Council intends to authorize the preparation of a Preliminary Official Statement (the "Preliminary Official Statement') to be used in the public offering of the Certificates of Obligation; and, WHEREAS, the City Council has been presented with and has examined the proposed form of the Notice and finds that the form and substance thereof are satisfactory, and that the recitals and findings contained therein are true, correct and complete; 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, Section 1. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. Section 2. Attached hereto and marked "Exhibit A" is a copy of the Notice, the form and substance of which are hereby adopted and approved. Section 3. The Mayor or the City Clerk shall cause the Notice to be published, in substantially the form attached hereto, (i) in a newspaper, as described in Section 2051.044, Texas Government Code, of general circulation in the City for two consecutive weeks with the date of first publication to be before the 45th day before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation; and (ii) continuously on the City's website for at least 45 days before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates of Obligation. Section 4. The City Council hereby approves the preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of Obligation of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 5. The Mayor, City Clerk and other officers and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. Section 6. The following is a list of the outstanding general obligation debt of the City: Bond issue Self-Supporting Amount General Obligation Refunding Bonds, Series 2020A $25,855,000 General Obligation Refunding Bonds, Taxable Series 80,435,000 2020E Combination Tax & Revenue Certificates of Obligation, 7,890,000 Series 2018 General Obligation Refunding Bonds, Series 2016 35,835,000 General Obligation Refunding Bonds, Series 2015 30,160,000 Combination Tax & Revenue Certificates of Obligation, 10,000 Series 2013 Combination Tax & Revenue Certificates of Obligation, 6551 000 Series 2012 Total $180,840,000 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 10th day of August, 2021. - Mayor Robin Mouton - ATTEST: APPROVED AS TO FORM: Tina Brossard, City Clerk Tyrone Cooper, City Attorney EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of the City of Beaumont, Texas (the "City") will meet at its regular meeting place in the City Council Chamber at City Hall, 801 Main St., Beaumont, Texas at 1:30 p.m. on the 28th day of September, 2021, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $10,000) subordinate pledge of certain revenues of the waterworks and sewer system of the City, in the maximum aggregate principal amount not to exceed $33,000,000 bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the purpose of (1) the construction of public works, more specifically, the construction and improvement of roads and the drainage system, and any items related thereto, and (2) payment of professional services incurred in connection with item (1). The City proposes to provide for the payment of such certificates of obligation from the levy and collection of ad valorem taxes in the City as provided by law and from a pledge of limited surplus revenues of the City's waterworks and sewer system, remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the City's revenue bonds or other obligations (now or hereafter outstanding), which are payable from all or any part of the net revenues of the City's waterworks and sewer system. The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended ("Chapter 271"). Pursuant to Chapter 271, notice is further given of the following information: Current principal of all outstanding debt $180,840,000 obligations of the issuer Current combined principal and interest $235,816,193 required to pay all outstanding debt obligations of the issuer on time and in full, which may be based on the issuer's expectations relative to the interest due on any variable rate debt obligations Maximum principal amount of the certificates $33,000,000 to be authorized Estimated combined principal and interest 41,905,161 required to pay the certificates to be authorized on time and in full EXHIBIT "A" Estimated interest rate for the certificates to 3.00% be authorized of that the maximum interest rate for the certificates may not exceed the maximum legal interest rate Maximum maturity date of the certificates to 3/1/2042 be authorized The resolution designating certain outstanding debt obligations of the City as self- supporting for purposes of Chapter 271 is available upon request to the City at the address noted above. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 10th day of August, 2021. Tina Broussard, City Clerk City of Beaumont, Texas PUBLIC HEARING * Receive comments on a Tax Abatement Agreement with Arbor Renewable Gas, LLC 10 August 10, 2021 Consider authorizing the City Manager to enter into a Tax Abatement Agreement with Arbor Renewable Gas, LLC BEAUM© NT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Chris Boone, Director of Planning& Community Development MEETING DATE: August 10, 2021 REQUESTED ACTION: Council conduct a Public Hearing to receive comments and consider a resolution authorizing the City Manager to enter into a Tax Abatement Agreement with Arbor Renewable Gas, LLC. BACKGROUND The City was recently approached by Arbor Renewable Gas, LLC requesting tax abatements in order to move forward with investements of up to $1.15 billion for the creation of a plant situated between Highway 347 and Highway 69 South, to the southwest of the OCI Methanol Plant property. In July 2021,the City created the Arbor Reinvestment Zone, allowing for tax abatements in accordance with Chapter 312 of the Texas Tax Code. Attached is the application from Arbor Renewable Gas, LLC., outlining their proposal. The initial investment is estimated to be $325 million, creating 20 permanent jobs and approximately 300 construction jobs. With key infrastructure and product demand along the Gulf Coast, the company could build an additional three units at the same site, for approximately $275 million each, with an additional 300 construction jobs and 12 permanent employees at each of the three units. In regard to the successive investments,this project could be a total estimated investment of$1.15 billion. The proposed abatement agreement would result in an abatement of City taxes on the new development in the amount of 90% for 10 years towards Unit 1. In addition, Units 2 through 4 would result in an abatement of City taxes on new improvements in the amount of 100% for 10 years. The proposed abatement meets the criteria and conditions set forth in the City's Reinvestment Zone Tax Abatement Policy, adopted in September 2020. All area taxing entities have been notified of the proposed agreement. FUNDING SOURCE Not applicable. RECOMMENDATION Council conduct the Public Hearing and approve the resolution. RESOLUTION NO. WHEREAS, on July 13, 2021, the City Council of the City of Beaumont, Texas passed Ordinance No. 21-042 designating an area as the Arbor Reinvestment Zone pursuant to the Texas Redevelopment and Tax Abatement Act(Texas Tax Code, Chapter 312); and, WHEREAS, the City of Beaumont has been approached by Arbor Renewable Gas, LLC with a proposal for the creation and maintenance of their plant facility situated between Highway 347 and Highway 69 South, to the southwest of the OCI Methanol Plant property; and, WHEREAS, this project is intended to bolster local economic development by stimulating business and commercial activity within the city; and, WHEREAS, the developers have approached the City seeking economic development incentives in the form of ad valorem tax abatements and have filed an application with the City for Chapter 312 economic development incentives; and, WHEREAS, the application has been reviewed and it has been determined that the proposed project does satisfy the purpose and goals of the program in that it will enhance the City's economic base and diversify and expand job opportunities; and, WHEREAS, in order to maintain sufficient controls to ensure that the public purpose is carried out, it is necessary to enter into a tax abatement agreement with the developer establishing the expectations and terms of the transaction; and, WHEREAS, the City Council is of the opinion that approval of an application for Chapter 312 economic development incentives and entering into a tax abatement agreement with Arbor Renewable Gas, LLC for the creation and maintenance of their plant facility situated between Highway 347 and Highway 69 South, to the southwest of the OCI Methanol Plant property is in the best interest of the City of Beaumont and its citizens. Said Tax Abatement Agreement is substantially in the form attached hereto as Exhibit "1" and made a part hereof for all purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT approval of an application for Chapter 312 economic development incentives for Arbor Renewable Gas, LLC for the creation and maintenance of their plant facility situated between Highway 347 and Highway 69 South, to the southwest of the OCI Methanol Plant property is hereby approved; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a tax abatement agreement with Arbor Renewable Gas, LLC granting a 90% ad valorem tax abatement for ten (10) years towards Unit 1 and a 100% ad valorem tax abatement for ten (10) years towards Units 2 through 4 for the creation and maintenance of their plant facility situated between Highway 347 and Highway 69 South, to the southwest of the OCI Methanol Plant property. 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 10th day of August, 2021. - Mayor Robin Mouton - TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN THE ARBOR REINVESTMENT ZONE This Tax Abatement Agreement (hereinafter referred to as "the Agreement") is made, entered, and executed between The City of Beaumont, Texas (hereinafter referred to as the "City"), and Arbor Renewable Gas, LLC, (hereinafter referred to as "Arbor'), the owner of taxable property in Beaumont, Jefferson County, Texas, located in the Arbor Reinvestment Zone as described below("Arbor Reinvestment Zone"). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312, V.T.C.A., as amended, and by authorization of the City following the designation of the Arbor Reinvestment Zone. H. DEFINITIONS 1. As used in this Agreement, the following terms shall have the meanings set forth below: a. The "2021 Certified AppraisedValue" means the January 1, 2021 value of the property within the Reinvestment Zone, as certified by the Jefferson County Appraisal District as of that date and described in Paragraph 3 and Exhibit 8. b. "Improvements" means the buildings or portions thereof and other improvements, including fixed machinery, equipment and process units, used for commercial or industrial purposes that are constructed by Arbor on the property after December 31, 2021. C. "ConstructionPhase" means a material and substantial improvement of the property which represents a separate and distinct construction operation undertaken for the purpose of constructing the Improvements. The period of Construction Phase ends when commercial operation of the New Facility commences as defined by the completed installation of constructed Eligible Property that serves the purpose for which it is designed. d. "Abatement' means the full or partial exemption from ad valorem taxes of certain property in a Reinvestment Zone designated for economic development purposes. EXHIBIT "1" e, "Eligible property" means the buildings, structures, fixed machinery, equipment and process units, construction in progress and Improvements necessary to the operation and administration of the New Facility. £ "New Eligible Property " means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in the Application for Tax Abatement originally filed by Arbor, within the City of Beaumont, Texas ("the Application"), which is incorporated herein by reference and made a put hereof. During the Construction Phase of the New Eligible Property, Arbor may make such change orders to the New Eligible Property as are reasonably necessary to accomplish its intended use. g. "Ittelizible Property" means land, inventories, supplies, tools, furnishings, and other forms of movable personal property, including but not limited to, vehicles, vessels, aircraft, housing, hotel accommodations, deferred maintenance investments, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion, any improvements including those to produce, store, or distribute natural gas, fluids or gases, which are not necessary to the operation of the New Facility, and property that has an economic life of less than ten(10)years. h. "Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common control with such specified person or entity. For purposes of this definition, "control" when used with respect to any person or entity means (i) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or (ii) the right to direct the management or operations of such person or entity, directly or indirectly, whether through ownership (directly or indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meaningscorrelative to the foregoing. 2. The Tax Abatement Policy for granting tax abatements in a reinvestment zone created in Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 20- 181 by the City Council of the City of Beaumont September 8, 2020, is incorporated herein by reference, together with any applicable amendments. All definitions set forth therein are applicable to this Agreement. e, "Eligible Property" means the buildings, structures, fixed machinery, equipment and process units, construction in progress and Improvements necessary to the operation and administration of the New Facility. f. "New Eligible Property " means Eligible Property, the construction of which commences subsequent to the date of execution of this Agreement. A list of the New Eligible Property is set forth in the Application for Tax Abatement originally filed by Arbor, within the City of Beaumont, Texas ("the Application"), which is incorporated herein by reference and made a part hereof. During the Construction Phase of the New Eligible Property, Arbor may make such change orders to the New Eligible Property as are reasonably necessary to accomplish its intended use. g 'Ineli2ible Property" means land, inventories, supplies, tools, furnishings, and other forms of movable personal property, including but not limited to, vehicles, vessels, aircraft, housing, hotel accommodations, deferred maintenance investments, improvements for the generation or transmission of electrical energy not wholly consumed by a new facility or expansion, any improvements including those to produce, store, or distribute natural gas, fluids or gases, which are not necessary to the operation of the New Facility, and property that has an economic life of less than ten (10)years. h. "Affiliates" of any specified person or entity means any other person or entity which, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under direct or indirect common control with such specified person or entity. For purposes of this definition, "control" when used with respect to any person or entity means (i) the ownership, directly or indirectly, or fifty percent (50%) or more of the voting securities of such person or entity, or(ii) the right to direct the management or operations of such person or entity, directly or indirectly, whether through ownership (directly or indirectly) of securities, by contract or otherwise, and the terms "controlling" and "controlled" have meaningscorrelative to the foregoing. 2. The Tax Abatement Policy for granting tax abatements in a reinvestment zone created in Beaumont, Jefferson County, Texas, which was adopted via Resolution No. 20- 181 by the City Council of the City of Beaumont September 8, 2020, is incorporated herein by reference, together with any applicable amendments. All definitions set forth therein are applicable to this Agreement. Ill. SUBJECT PROPERTY 3. The Reinvestment Zone is an area within Beaumont, Jefferson County, Texas, comprising approximately 53.54 acres of land. The Arbor Reinvestment Zone was designated by the City under Ordinance No. 21-042 dated July 13, 2021, a copy of which is attached hereto as Exhibit C and is hereby incorporated. The 2021 Certified Appraised Value is: Land O $8,545 Improvements $0 Personal Property $0 (includes Inventory) The 2021 Certified Appraised Value is subject to change based upon final certification of the values by Jefferson County Appraisal District. Upon certification, by consent of the parties, the 2021 Certified Appraised Value will be attached to Exhibit B. IV. VALUE AND TERM OF AGREEMENT 4. Arbor anticipates this project will entail construction of the first of up to four separate units with an investment for unit 1 of$325 million and 20 jobs (and all four units totaling up to $1.15 billion and 56 jobs), with construction on unit 1 starting by the last day of March 2022,and construction start dates for each unit set sequentially over a period not to exceed six years. In order to incentivize construction of all four units in the City of Beaumont, the City has developed a tax abatement schedule where Arbor will receive the benefit of a tax abatement for each unit except that the abatement term for any individual unit shall not exceed ten (10) years. Each unit will be assigned its own individual tax account by the Jefferson County Appraisal District. The Term of the Abatement pursuant to this Agreement(the"Abatement Term")for each unit shall begin on the date dictated by the construction completion schedule applicable to that unit and shall terminate on the date dictated in the abatement schedule applicable to that unit, unless sooner terminated pursuant to other provisions of this Agreement. City will request that the Jefferson Central Appraisal District establish discrete account numbers for each unit to facilitate efficient administration of this Agreement. In each year that this Agreement is in effect, the amount of abatement shall be an amount equal to the percentage indicated below. The appraised value, as defined in the Property Tax Code, of New Eligible Properties comprising each unit shall be abated in accordance with the following scale which is also found in Exhibit D: UNFF 1 UNIT 2 111VFF 3 UNFF 4 CONSTR CONSTR CONSTR CONSTR STARTQ122 START 124 STARTQ126 START 127 $600 MIL $875 MIL $1.15 BIL $325 MI CUMULATIV CUMULATN CUMULATIVE E E 32 44 56 TAX 20IOBS CUMULATN CUMULATIVE CUMULATN YEAR EIOBS JOBS EIOBS YEAR Percentage of ABATED Value Abated 2024 1 90 2025 2 90 YEAR Percentage of 2026 3 90 ABATED Value Abated 2027 4 90 1 100 YEAR Percentage of 2028 5 90 2 100 ABATED Value Abnted Percentage of 2029 6 90 3 ]00 1 ]00 AYEAR BATED Valne Abated 2030 7 90 4 too 2 100 1 100 2031 8 90 5 100 3 100 2 100 2032 9 90 6 100 4 too 3 too 2033 10 90* 7 10V 5 100* 4 to0* 2034 8 100 6 100 5 100 2035 9 100 7 too 6 100 2036 10 too** 8 too** 7 too** 2037 9 100 8 100 2038 10 100*** 9 100*** -----'- 10 100 2039 *LAST ABATEMENT YEAR FOR UNIT I **LAST ABATEMENT YEAR FORUNFf 2 ***LAST ABATEMENT YEAR FORUATC 3 V. TAXABII3TY 5. During the period that this tax abatement is effective("abatementperiod"): I. The value of Ineligible Property shall be fully taxable; 2. The appraised value, as defined in the Property Tax Code, of New Eligible Property shall be abated as set forth above under the section entitled "VALUE AND TERM OF AGREEMENT.' VI. CONTEMPLATED IMPROVEMENTS 6. As set forth in the Application, which is incorporated herein for all purposes, Arbor represents that it will construct up to four units in four phases. The approximate cost of the first unit is $325 million, with each additional unit costing approximately $275 million(for a total of$1.15B for all four units). During the Construction Phase,Arbor may make such change orders to the project as are reasonably necessary. All Improvements shall be completed in accordance with the Application and all applicable laws, ordinances, rules, or regulations. Arbor agrees to make bidding information available to qualified local contractors, vendors, manufacturers and labor and to conduct pre-bid meetings from time to time with potential local bidders and suppliers of services and materials for the project. VIL EVENTSOFDEFAULT 7. During the abatement period covered by this Agreement, the City may declare a default hereunder by Arbor if Arbor (i) fails to commence construction of the first unit within one (1) year from the date this Agreement is executed or (ii) fails to construct the New Facility or(iii) fails to comply with any of the material terms of this Agreement, or (iv) if any representation made by Arbor in this Agreement is false or misleading in any material respect. 8. If the City declares that Arbor is in default of this Agreement, the City shall notify Arbor in writing. If such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then this Agreement may be terminated. In the case of a default for causes beyond Arbor's reasonable control which cannot with due diligence be cured within the Cure Period, the Cure Period shall be deemed extended if Arbor(i) shall notify the City of Arbor's intention to institute steps reasonably necessary to cure such default, (ii) shall proceed to cure such default, and (iii) shall submit a proposed schedule for the completion of the New Facility, including the estimated date for completion of the New Facility, a reasonable explanation concerning the reason for the delay, and a reasonable estimate of the overall percent of the New Facility that is completed as of the date of such notice. 9. In the event Arbor (i) allows its ad valorem taxes on the New Facility to become delinquent or fails to timely and properly follow the legal procedures for the protest and appeal of the ad valorem taxes on the New Facility or (ii) defaults under this Agreement and fails to cure, this Agreement may then be terminated. In the event of termination of this Agreement pursuant to the provisions of this paragraph, all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination, together with penalties and interest as required by the Texas Property Tax Code. 10. In the event the New Facility is completed and begins commercial operations, but subsequently discontinues operations for any reason excepting fire, explosion, or other casualty, accident, or natural disaster, force majeure or governmental mandate, for a period of one (1) year during the abatement period, then this Agreement shall terminate. In the event of termination pursuant to the provisions of this paragraph, the abatement of the taxes for the calendar year during which the New Facility no longer operates shall terminate, but there shall be no recapture of prior years' taxes abated by this Agreement. The taxes otherwise abated shall be paid to the City prior to the delinquency date for such year. In no event shall Arbor be required to pay such taxes within less than sixty (60) days of the termination. VIII. ADMINISTRATION 11. This Agreement shall be administered on behalf of the City by its City Manager. Upon completion of the New Facility, the City Manager shall annually evaluate the New Facility to ensure compliance with this Agreement. The Chief Appraiser of the Jefferson County Appraisal District is required to annually determine(i)the taxable value pursuant to the terms of this abatement of the real and personal property comprising the Arbor Reinvestment Zone and(it)the full taxable value without abatement of the real and personal property comprising the Arbor Reinvestment Zone. The Chief Appraiser is required to record both the abatement taxable value and the full taxable value in the appraisal records. The full taxable value listed in the appraisal records shall be used to compute any recapture.Each year Arbor shall cooperate with the Chief Appraiser and furnish him or her with information reasonably requested pursuant to Chapter 22,Tax Code,V.T.C.A. Such information shall also be provided to the City to facilitate evaluation for compliance with this Agreement. 12. If after notice of default and failure to cure, the City terminates this Agreement, it shall provide Arbor written notice of such termination. In the event of termination, Arbor may file suit in the Jefferson County District Court appealing termination within ninety (90) days after receipt from the City of written notice of termination. If an appeal is filed, Arbor shall remit to the City within sixty (60) days after receipt of the notice of termination, any recaptured taxes as may be payable during the pendency of the litigation under Section 42.08, Tax Code, V.T.C.A. If the final determination of the appeal increases Arbor tax liability, Arbor shall pay the additional tax to the City pursuant to Section 42.42, Tax Code, V.T.C.A. If the final determination of the appeal decreases Arbor tax liability, the City shall refund to Arbor the difference between the amount of tax paid and the amount of tax for which Arbor is liable together with interest pursuant to Section 42.43, Tax Code, V.T.C.A. IX. ASSIGNMENT 13. Arbor may assign this Agreement to an Affiliate without the written consent of the City, provided that Arbor shall provide written notice of such assignment to the City. Except as provided in the immediately preceding sentence, Arbor may assign this Agreement with the written consent of the City, which consent shall not be unreasonably withheld, delayed or conditioned. Any assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor upon the same terms and conditions as set out in this Agreement. No assignment shall be approved if Arbor or the assignee is delinquent in ad valorem taxes due the City. X. NOTICE 14. Any notice required to be given under the provisions of this Agreement shall be in writing and shall be served when it is deposited, enclosed in a wrapper with the postage prepaid thereon, and by registered or certified mail, return receipt requested, in a United States Post Office, addressed to the City or Arbor. If mailed, any notice shall be deemed to be received three (3) days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices shall be delivered to the following addresses: To Arbor: OWNER: Mr.Trey Fielder EVP Project and Site Development Arbor Renewable Gas 1800 Bering Drive Suite 510 Houston,TX 77057 With a copy to: Megan Gallien Griffith, Moseley, Johnson 2901 Turtle Creek Drive, Ste 445 Port Arthur,TX 77642 To the City: City of Beaumont Kyle Hayes City Manager 801 Main Beaumont,TX 77701 With a copy to: Tyrone Cooper City Attorney 801 Main Beaumont,TX 77701 Chris Boone Director of Planning&Community Development 801 Main Beaumont,TX 77701 Either party may designate a different address by giving the other party ten(10)days written notice. XI. AUTHORITY 15. Each of the parties hereto represents and warrants to the other party that (i) it has all requisite power and authority to execute and deliver, to perform its obligations under and to consummate the transactions contemplated by this Agreement and (ii) the execution and delivery of this Agreement, the performance of its obligations under and the consummation by each party of the transactions contemplated by this Agreement have been duly authorized by all requisite corporate authority on the part of Arbor and by all requisite governmental authority on the party of the City and(iii) upon execution and delivery of this Agreement, this Agreement will constitute valid and binding legal obligations of such party. XII. DATE 16. This Agreement may be executed in counterparts and the effective date of the Agreement shall be the date the City executes this Agreement, so authorizing, on the date of the countersignature hereto by the Manager of the City of Beaumont on this day of 2021. XIIL MISCELLANEOUS 17. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreementshall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 18. The City agrees to record certified copy of this Agreement in the Deed Records of Jefferson County,Texas. 19. This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Jefferson County, Texas. 20. This Agreement shall be subject to change, modification or, except in the event of default which has not been cured as provided herein, termination, only with the mutual written consent of the City and Arbor. 21. SEVERABILITY In the event any provision of this AGREEMENT is illegal, invalid, or unenforceable under present or future laws, then, and in that event, it is the intention of the Parties hereto that the remainder of this AGREEMENT shall not be affected thereby, and it is also the intention of the Parties to this AGREEMENT that in lieu of each clause or provision that is found to be illegal, invalid, or unenforceable, a provision be added to this AGREEMENT which is legal, valid, and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 22. This complete Agreement has been executed by the parties in multiple originals, each having full force and effect. Arbor Renewable Gas,LLC By: (Signature) Tim Vail, CEO Date City of Beaumont By: (Signature) Kyle Hayes City Manager Date ATTEST: (Signature) (Printed Name and Title) Date Executed in duplicate this day of ,2021. EXHIBIT A "Description of Project and Owner Property" Description of Project Applicant plans to design and construct a manufacturing facility that will utilize woody biomass as a feedstock. The process will produce renewable syngas,which can be further processed into either renewable gasoline or renewable hydrogen. The project will include up to four units, with a total investment of up to $1.15 billion. The projected investment for the first unit is approximately $319,650,000, not including $5,350,000 for the purchase of the project site, which will accommodate all four units. The total estimated investment for unit 1, including the land,is$325,000,000. Unit 1 will employ 20 new permanent employees,averaging an annual base salary of$83,000, and consisting of a facility manager, office manager,operators,mechanic and an electrician.The construction phase of the project could create up to 300 peak construction jobs with opportunities to be built by local contractors, laborers,vendors and suppliers. The Company plans to build an additional three units at the same site over a six-year period,with an investment of approximately$275 million for each unit, creating an additional 12 permanent employees at each unit, with salaries averaging$83,000. The four units would employ a total of 56 new permanent employees and the total estimated investment for the units is an estimated$1.15 billion. Construction start for unit 1 is estimated to be QI 2022. Construction start for unit 2 is estimated to be Q 12024. Construction start for unit 3 is estimated to be Q12026. Construction start for unit 4 is estimated to be Q 12027. The project will process woody biomass into syngas, which will be converted into crude methanol and finally into gasoline,LPG and COz. Alternatively,the plant can transport renewable syngas or the syngas be further processed to create hydrogen and COz. The primary product will be renewable gasoline. If the facility manufactures renewable industrial hydrogen, that product is at pipeline specification purity and pressure, molecularly identical to natural gas-produced hydrogen, and becomes a fungible product once in the pipeline.The facility will also produce COr at industrial scale. The unit will produce very few emissions, as the majority of the COz produced will be captured and sequestered in an approved storage facility. Because of this, the product manufactured at the facility is considered to be carbon negative, meaning that it removes more carbon from the atmosphere than it produces. Customers can then use this carbon negative attribute to offset the environmental impacts of their own processes. During normal operations, the facility will produce three waste gas streams and LPG. Applicant will bum these in a gas turbine to generate renewable electricity for use by the facility. Though Applicant is not primarily engaged in activities related to renewable energy electric generation, Applicant will be producing a continuous 11.5 megawatts of renewable electricity, which the facility will utilize to meet aver 75 percent of the facility's power needs and will purchase less than 25 percent of the facility's power needs from the grid. Significant components of the facility would include: • process and final product storage tanks • wood grinding and processing • biomass gasification island • methanol synthesis plant • gasoline production • acid gas removal system • steam turbine power generation • other chemical processing equipment • Compressors • Motors and motor control centers • Process control systems • Waste heat recovery boiler • Flare stack • Refining columns • Pollution control equipment • CO2 capture equipment • Process control buildings • Warehouse,maintenance and other buildings • Electric wood grinders • Wood dryers Owner Property The construction of the facility would be constructed on the OWNERS land, located within the City of Beaumont's Municipal Boundaries and within the boundaries of the Arbor Reinvestment Zone. EXHIBIT B "Base Year Property" The reinvestment zone does not contain any existing improvements. The base year taxable value as certified for January 1, 2021 will be attached, by consent of the parties, when same is calculated and adopted by the Jefferson County Appraisal District. EXHIBIT C "Reinvestment Zone" EXHIBIT D "Tax Abatement Schedule" UNR'I UN1T2 UND'3 UNU4 COMER COMER CONSTR COMER START 0122 START 124 STARTQ126 START Q127 $600 MR, $875M8, $1.15 BB. CUMULATN $325 M1 CUMULATN CUMULATNE E E 32 44 56 TAX 20 JOBS CUMULATIV CUMULATNE CUMULATN YEAR EJOBS JOBS EJOBS YEAR Percentage of ABATED Value Abated 2024 1 90 2025 2 90 2026 3 gp YFAR Percentage of ABATED Value Abated 2027 4 90 1 100 2028 5 90 2 100 YEAR Percentage of ABATE) Value Abated YEAR Percentage of 2029 6 90 3 100 1 100 ABATED Value Abated 2030 7 90 4 100 2 100 1 100 2031 8 90 5 100 3 100 2 100 2032 9 90 6 l00 4 100 3 100 2033 10 90* 7 100* 5 100* 4 100* 2034 8 100 6 100 5 100 2035 - 9 100 7 100 6 100 M036 10 100** 8 l00** 7 100** 2037 9 100 8 100 2038 - - 10 100*** 9 100*** 2039 - 10 100 *LAST ABATEMENT YEAR FORUNIT I **LAST ABATIMENT YEAR FOR UNIT 2 ***LAST ABATEMENT YEAR FOR UNIT EXHIBIT E "City of Beaumont Abatement Policy" It is understood and agreed that all abatement agreements granted herein shall conform to this abatement policy and to the Texas Tax Code EXMrr F "Affiliates of Owner" There are six Arbor-related entities,as follows: I. Arbor Renewable Gas Holdings, LLC. 2. Arbor Renewable Gas LLC. 3. Arbor Renewable Gas Employer Co, LLC. 4. Arbor Renewable Gas Intermediate,LLC. 5. Arbor Renewable Gasoline-Phase 1 LLC(the Applicant). 6. Anejo Partners LLC (dormant/mactive). Application for Tax Abatement City of Beaumont This applicant ion will become pan of the Ties Abatement Agreements and any knowingly false representations will be grounds for the voiding ofthe agreement An miumal copy of this request should be submitted to the Community Development Dspamnent,City ofBv..nt,P.0. Box 3827,Beaunionh'1'exas 77704. Part I- Applicant Information Application Date 6/28/2021 Company Name: Arbor Renewable Gasoline—PhaseI LLC (See Attachment"A"for Arbor elated entities) Address: 1800 Bering Dr,Suite 510 Houston,Texas 77057 Telephone: 346-388-1066 (Trey Field - EVP Operations) Current Number of Employees: 0 Annual Sales: 0 Employees in Taxing Jurisdiction: 0 Beaumont Address: Address pending—property located H'ghwav 347 Beaumont Texas Years in Jefferson County: 0 Legal Counsel: King&Spalding, LLP Address: 1100 Louisiana,_Suf[e.4100 Houston, Texas 77002_. _ ........ Telephone: 713-751-3200 Corporation Partnership Proprietorship (x) LLC Has the Applicant Company recently been cited or currently under investigation for any violations of Federal, State, and/or City laws,codes, or ordinances? (x )No ( )Yes If yes, please provide detailed information on the nature and status of the violation(s) on aseparate sheet of paper. Is any interest in the project presently held by a member of the Beaumont City Council,Planningand Zoning Commission, or any City employee? (x)No ( ) Yes Attach a description of the Applicant Company, including a brief history, corporate structure, and business plan andannual statement, if available. Arbor Renewable Gas LLC Part B- Project Information Location Address: Highway 347 Beaumont,Texas Legal Description: 53 41-acres Tract 21(H-2) P. Humphries Survey Abstract 32 Jefferson County, Texas Tax Acet. Numbers: 300032-000-003900-00000 Attach statement fully explaining project, describe existing site and improvements, describe all proposed improvements and provide list of improvements and equipment for which abatement is requested. If available,provide a map showing location of existing and proposed improvements. See attachment"B, no existing improvements. Section A- Economic Development 'Type of Facility/abatement: Central Administrative office services Industrial X Manufacturing Other Brown fields site Describe product or service to be provided: Renewable gasoline or renewable hydrogen,see attachment"B"for company&moiect description details Part III- Economic Information Construction Estimate: Contractor: To be determined Start Date: Unit 1 OI-2022 Contract Amount: Unit 1 construction cost Completion Date: Unit 1 04-2023 estimated to be$325-million excluding the cost oftheland. Peak Construction Jobs: 300 See attachment`B"for each additional unit If Modernization: N/A Estimated current economic life of structure years Added economic life from modernization years Permanent Job Creation/Retention: Current employment 0 Jobs to be Retained: Unit L 20; each additional unit adds 12 FTE's. All 4 units is 56 FTE's. Full-time jobs created at opening: Unit 1'20 each additional unit adds 12 FTE's for a total of 56 FTE's. at 3 years: Unit I� 20,each additional unit adds 12 FTE's for a total of 56 FTE's. (A full-time Arbor Renewable Gas LLC Provide information, if available. (1) new employee needs; e. g. skilled vs. non-skilled, level of education, experience, etc.; Unit I: There will be 20 new permanent employees, including a Plant Manager,an Office Manager,a Chemist/Lab Technician,two Mechanic/Electrician,and 15 Operators. All will need to be skilled in their field and require any certifications needed for such. Each additional unit: Adds 12 new permanent employees(operators). All 4 units: 56 new permanent employees. (2) any training the company will provide to its new employees; Company will provide any on-site training needed for this specific site, but all employees will need to be skilled in their field. (3) attach a list of new jobs to be created by job class with associated wage and salary ranges. Also, provide an average wage for hourly jobs and an average salary for managementjobs; Hourly wages for non-professionals is $40+/hour and professionals $50+/hour. Please refer to the below for the job classifications and salaries for the new permanent employees. UNIT 1 (20 FTE'S): Jobs Headcount Base Salary(without benefits) Plant Manager 1 150,000 Office Manager 1 65,000 Chemist/Lab Technician 1 70,000 Mechanic/Electrician 2 65,000 Operators 15 85,000 UNIT2,3,&4: Each additional unit would add 12 new permanent employees, it is estimated that these positions would be operators at a base salary without benefits of$85,000. All four units would create 56 new permanent employees. ANNUALPAYROLL: Average annual base salary without benefits is estimated to be$83,000 perjob. Unit 1: Total annual payroll in the first year after operations begin is estimated to be $2,576,750 with benefits and$1,985,250 without benefits. Each additional unit: Creates an additional annual payroll of$1,581,000 with benefits and $1,224,000 without benefits. All 4 units: $7,319,750 with benefits and$5,657,250 without benefits. Arbor Renewable Gas LLC (4) attach a list of benefits provided to employees. Indicate if employees'dependents have access to the company's health plan; Medical insurance and retirement plan. Employee's dependents have access to the Company's health plan. (5) attach a list describing the type of incentive and/or assistance you will be requesting from other City departments and/or utility companies; Tax abatement agreement to ensure the project is economically viable; expedited permits on any city permits; potable water&sewer; consideration of water tax rate savings. (6) describe any goodwill benefits your company will provide to the community. This project will create well-payingjobs and a payroll that will turn over in the community multiple times. Company is committed to being a good corporate citizen and encourages participation and volunteerism by its employees. The project will produce very few emissions,as the majority of the COz produced will be captured and sequestered in an approved storage facility. Because of this, the product manufactured at the facility is considered to be carbon negative, meaning that it removes more carbon from the atmosphere than it produces. Customers can then use this carbon negative attribute to offset the environmental impacts of their own processes. OTHER ECONOMIC INFORMATION—(PART ❑t CONTINUED) UNIT 1 Estimated Appraised Value—Unit 1: ESTIMATED APPRAISED VALUE LAND* IMPROVEMENTS* PERSONAL PROPERTY ON-SITE (F FIXTURE AND EQUIPMENT) S Value on January I proceeding $4,280,000 $0 No estimate available at this abatement time. Estimated value of new abatable $0 $255,720,000 No estimate available at this investment time. Estimated value of properties $4,280,000 $0 No estimate available at this not subject foabatement (i.e. time. inventory,supplies) Estimated value of property subject to $4,280,000 $255,720,000 No estimate available at this ad valorem mat end of abatement time. * Please state the method used to determine the estimated value of proposed improvements (i.e. appraisal of plans and specs, etc.): *Method estimated spend multiplied by 80%of the industrial valuation factor. Land spend of$5,350,000,multiplied by 80%valuation factor is$4,280,000. The improvement spend is estimated at$319,650,000,multiplied by 80%valuation factor is$255,720,000. There is no estimate available at this time for personal property. Please see the attached Economic Impact Study at attachment"C". Arbor Renewable Gas LLC Estimated Spend—Unit 1: Total Capital Investment: $325-million Land: $5.35-million Buildings: $10-million Pollution Control: $16-million Labor: $95-million Equipment: $95-million Materials: $103.65-million Type of construction: Industrial (Tiltwall, Build-Out of Existing Facility,Etc.) Value of Construction: $224.65-mil lion Value of Equipment: $95-million UNIT 2,3 & 4 Estimated appraised value of each additional unit: ESTIMATED APPRAISED VALUE LAND IMPROVEMENTS* PERSONAL PROPERTY ON-SITE (PAN EQUIPMENT) (FURNITURE Value on January 1 proceeding $0 $0 No estimate available at this abatement time. Estimated value of new abatable $0 $220,000,000 No estimate available at this investment time. Estimated value of properties $0 $0 No estimate available at this not subject o abatement(i.e. time. inventory, supplies) Estimated value of property subject to $0 $220,000,000 No estimate available at this ad valorem meat end of abatement time. * Please state the method used to determine the estimated value of proposed improvements (i.e. appraisal of plans and specs, etc.): *Method estimated spend multiplied by 80%of the industrial valuation factor.The improvement spend of each additional unit is estimated at$275,000,000,multiplied by 80%valuation factor is$220,000,000.There is no estimate available at this time for personal property. Please see the attached Economic Impact Study at attachment"C". Each additional units estimated spend: Total Capital Investment: $275-million each Land: n/a Buildings: $8.6-million each Pollution Control: $13.8-million each Labor: $81.7-million each Equipment: $81.7-million each Materials: $89.2-million each Type of construction: Industrial (Tiltwall,Build-Out of Existing Facility,Etc.) Value of Construction: $193.3-million each Value of Equipment $95-million each Total estimated investment of all four units is$1.15B. ------------------------------------------------------------------------------------------------------------------------------- Arbor Renewable Gas ITC (1) Provide the Governmental Entity with(a)a statement agreeing to expend a designated amount ('Project Cost") for the Project and, if the abatement is based on Required Jobs, a separate statement agreeing that the required minimum number of full-time jobs will be created ('Required Jobs")and maintained duringthe term of the Contract; This first unit will involve an investment of$319.65-million and the creation of 20 permanent jobs. Those jobs will be maintained during the term of the contract. Each additional unit has an estimated investment of$275-million and the creation of 12 additional permanent jobs. The total estimated investment of all four units is$1.1513 and 56 permanentjobs. (b) an explanation as to how the Project will provide a long term significant positive economic benefit to the community, the Governmental Entity and its taxpayers; The project will provide a long-term significant positive economic benefit to the community,the Government entity and its taxpayers by: i. Making an investment that will add significant value and additional ad valorem real property tax revenues; ii. Making an investment that will add significant value and additional ad valorem real property tax revenues; iii. The facility will invite local vendors, suppliers, and sub-contractors to participate in procurement opportunities; (Reference economic impact study for other benefits.) (c) information as to what attempt will be made to utilize Beaumont contractors and workers; The project will identify local Beaumont contractors and workers. (d) information as to what attempt will be made to utilize Beaumont or Jefferson County contractors and workers; and The project will identify local Beaumont and Jefferson County contractors and workers. (a) information as to what attempt will be made to utilize Beaumontor Jefferson County minority contractors and workers. The project will identify local Beaumont and Jefferson County minority contractors and workers. (2) Furnish the Governmental Entity with a written statement that tax abatement will be a significant factor in determining whether the Project for the development,redevelopment or improvement of the Real Property will take place. See attachment"D" Arbor Renewable Gas LLC (3) Agree to execute a Contract with the Government Entity containing the covenants and conditions required by the Governmental Entity. Company Representative to be Contacted: Authorized Company Official: Name: Megan Gallien Trey Fielder Authorized Signature Title: Chief Financial Officer EVP,Operations Name and Title Address: 2901 Turtle Creek Di} Ste. 445, Telephone: (346) 388-1066 Part Arthur TX 77642 Telephone: (409)722-5100 Arbor Renewable Gas LLC ATTACHMENT "A" ARBOR RELATED ENTITIES There are six Arbor-related entities, as follows: I. Arbor Renewable Gas I loldings, LLC. 2. Arbor Renewable Gas LLC. 3. Arbor Renewable Gas Employer Co, LLC. 4. Arbor Renewable Gas Intermediate, LLC. 5. Arbor Renewable Gasoline- Phase I LLC(the Applicant). 6. Anejo Partners LLC(dormant, inactive) ATTACHMENT "B" PROPOSED PROJECT Description of Project Applicant plans to design and construct a manufacturing facility that will utilize woody biomass as a feedstock. The process will produce syngas, which can be further processed into either renewable gasoline or renewable hydrogen. The project will include up to four units, with a total investment of up to$1.15 billion. The projected investment for the first unit is approximately $319,650,000, not including $5,350,000 for the purchase of the project site, which will accommodate all four units. The total estimated investment for unit 1, including the land, is $325,000,000. Unit 1 will employ 20 new permanent employees, averaging an annual base salary of$83,000,and consisting of a facility manager,office manager, operators, mechanic and an electrician. The construction phase of the project could create up to 300 peak construction jobs with opportunities to be built by local contractors, laborers,vendors and suppliers. The Company plans to build an additional three units at the same site over a six year period, with an investment of approximately $275 million for each unit, creating an additional 12 permanent employees at each unit, with salaries averaging $83,000. The four units would employee a total of 56 new permanent employees and the total estimated investment for the units is an estimated $1.15 billion. Construction start for unit I is estimated to be Q 1 2022. Construction start for unit 2 is estimated to be Q12024. Construction start for unit 3 is estimated to be Q12026. Construction start for unit 4 is estimated to be Ql2027, The project will process woody biomass into syngas,which will be converted into crude methanol and finally into gasoline,LPG and CO2. Alternatively,the syngas can be used to create hydrogen and CO2. The primary product will be renewable gasoline. If the facility manufactures renewable industrial hydrogen,that product is at pipeline specification purity and pressure,molecularly identical to natural gas-produced hydrogen, and becomes a fungible product once in the pipeline. The facility will also produce CO2 at industrial scale. The unit will produce very few emissions, as the majority of the CO2 produced will be captured and sequestered in an approved storage facility. Because of this,the product manufactured at the facility is considered to be carbon negative, meaning that it removes more carbon from the atmosphere than it produces. Customers can then use this carbon negative attribute to offset the environmental impacts of their own processes. During normal operations, the facility will produce three waste gas streams and LPG. Applicant will burn these in a gas turbine to generate renewable electricity for use by the facility. Though Applicant is not primarily engaged in activities related to renewable energy electric generation,Applicant will be producing a continuous 11.5 megawatts of renewable electricity,which the facility will utilize to meet over 75 percent of the facility's power needs, and will purchase less than 25 percent of the facility's power needs from the grid. Significant components of the facility would include: • site development • process and final product storage tanks • wood grinding and processing • biomas gasification island • methanol synthesis plant • gasoline production • acid gas removal system • steam turbine power generation • other chemical processing equipment The proposed improvements will include all process facilities, infrastructure and auxillary equipment and any other infrastructure additions related to the Project facilities, including,but not limited to, the following significant components: • Methanol reactors • Gasoline reactors • Cooling fans • Final product storage tanks • Heat exchangers • Heaters • Pumps • Valves • Compressors • Motors and motor control centers • Process control systems • Waste heat recovery boiler • Flare stack • Refining columns • Pollution control equipment • CO2 capture equipment • Process control buildings • Warehouse,maintenance and other buildings • Electric wood grinders • Wood dryers III CO2 �1 Pipeline '_ Gasoline Conveyor Productio IIIIII ', Dryer Storage } Methanol Gasification Tank Farm Truck Loading I GZ Pipeline � • a � a � a a � � a N _ o ® sum gma®ii IF - " t \�� ' • • � rtili . Hill ASH � � 11111 7 a f < LEGAL DESCRIPTION OF PROPOSED SITE Being 53.54 acres of land, part of Tract H-2 of Partition Map No. 2 of the McFaddin Trust in the Pelham Umphries Survey,Abstract No. 32, recorded in Volume 7, page 133 of the Map Records of Jefferson County, Texas; being part of Tract No. 11-2 of multiple tracts of land recorded in Volume 692, page 22,of the Deed Records of Jefferson County, Texas; said 53.54 acre tract being more fully described by metes and bounds as follows,to wit BEGINNING at a brass disc found in concrete for the Northeasterly corner of a(called 7.595)acre tract of land conveyed to E. I. Du Pont De Nemours & Company, recorded in Volume 845, page 48 of the Deed Records of Jefferson County, Texas; said brass disc being on the Westerly right- of-way line of a dedicated road named State Highway 347(a.k.a. Twin City Highway); also being the Southeasterly corner of the herein described tract; having a State Plane Coordinate of N: 13948984.10, E: 3538676.65; THENCE, South 39 deg., 09 min., 57 sec., West, on the Northerly line of the (called 7.595) acre tract, a distance of 2171.12' to a %z" steel rod, capped and marked "S&P", found for the Northwesterly corner of the (called 7.595) acre tract on the Easterly line of a (called 50.84) acre tract of land conveyed to Gulf States Utilities Company,recorded as Tract 3 in Volume 370,page 38,Deed Records of Jefferson County, Texas; said ''/z"steel rod being the Southwesterly corner of the herein described tract having a State Plane Coordinate of N: 13947300.78, E: 3537305.44; THENCE, North 52 deg., 25 min., 13 sec., West, on the Easterly line of the (called 50.84) acre tract, a distance of 937.65' to a ''/2" steel rod, capped and marked "SOUTHEX", set on the intersection of the Easterly line of the (called 50.84) acre tract and the Easterly right-of-way line of a dedicated road named US Highway 69, 96,287; THENCE, North 27 deg., 32 min., 46 sec., West, on the Easterly right-of-way line of said US Highway 69, 96,287, a distance of 134.93' to a 'h" steel rod found for the Northwesterly corner of the herein described tract; THENCE, North 38 deg., 32 min., 42 sec., Fast, a distance of 2128.07' to a 5/8" steel rod found for the Northeast comer of the herein described tract on the Westerly right-of-way line of said State I lighway 347;from which a TxDOT concrete monument found bears North 51 deg.,23 min., 57 sec., West, a distance of 4.29% THENCE, South 51 deg., 40 min., 07 sec., East on the Westerly right-of-way line of said State Highway 347, a distance of 1084.41' to the POINT OF BEGINNING and containing 53.54 acres of land, more or less. jefferson CAD PtcyortySeitrh > '!j0610 AIMOT: IEi:IVDY/11[s lL L-;ASHi Iol 2021 Year 2023 Pruperfy Account Property ID: 130642 Legal Description: PHUMPHREYS-ABS32TR21(H-2)53.41AC Geographic ID: 300032-000-003900-00000 Zoning: CM Type: Real Agent Code: Property Use Code: D1 Property Use Description: 5+ACRES PASTURE/RANCH Location Address: HIGHWAY 347 Mapsox 101-87 BEAUMONT,Tx Neighborhood: Map ID: 0 Neighborhood CD: Owner Name: ARBOR RENEWABLE GAS LLC Owner ID: 708220 Mailing Address: 1800 BERING DR STE 510 %Ownership: 100.0000000000% HOUSTON,Tx 77057 Exemptions: Values (+)Improvement Homesite Value: + $0 (+)Improvement Nan-Homesite Value: + $0 (+) Land Homesite Value: + $0 (+) Land Non-Homesite Value: + $0 Ag/Timber Use Value (+)Agricultural Market Valuation: + $685,710 $8,545 (+)Timber Market Valuation: + $0 $0 -------------------------- (=)Market Value: _ $685,710 (—)Ag or Timber Use Value Reduction: — $677,165 -------------------------- (_)Appraised Value: _ $8,545 (—)HS Cap: — $0 -------------------------- (=)Assessed Value: _ $8,545 Taxing Jurisdiction Owner: ARBOR RENEWABLE GAS LLC %Ownership: 100.0000000000% Total Value: $685,710 Entity Description Tax Rate Appraised Value Taxable Value Estimated Tax 101 BEAUMONT ISD 1.220450 $8,545 $8,545 $104.29 221 CITY OF BEAUMONT 0.710000 $8,545 $8,545 $60.67 341 PORT OF BEAUMONT 0.109105 $8,545 $8,545 $9.32 755 SABINE NECHES NAV DIST 0.090426 $8,545 $8,545 $7.73 851 DRAINAGE DISTRICT N7 0.294990 $8,545 $8,545 $25.21 901 JEFFERSON COUNTY 0.364977 $8,545 $8,545 $31.18 A59 FARM AND LATERAL ROAD 0,000000 $8,545 $8,545 $0.00 CAD JEFFERSON CO APPRAISAL DISTRICT 0.000000 $8,545 $8,545 $0.00 T341 TIE PORT OF BMT 0.000000 $8,545 $8,545 $0.00 Total Tax Rate: 2.789948 Taxes w/Current Exemptions: $238.40 Taxes w/o Exemptions: $238.40 Imp,ovement/ HuiIdIn,, No improvements exist for this property. Land p Type Description Acres Sgit Eff Front Eff Depth Market Value Prod.Value 1 CPAI IMPV PAST-CITY 7.2314 315000.00 1050.00 300.00 $157,500 $1,157 2 CPAI IMPV PAST-CITY 0.8264 36000.00 0.00 0.00 $18,000 $132 3 CPAI IMPV PAST-CITY 22.6760 987940.80 0.00 0.00 $340,140 $3,628 4 CPAI IMPV PAST-CITY 22,6760 987940.80 0.00 0.00 $170,070 $3,628 Roll Ve!o._ History Year Improvements Land Market Ag Valuation Appraised HIS Cap Assessed 2021 $0 $685,710 8,545 8,545 $0 $8,545 2020 $0 $685,710 8,279 8,279 $0 $8,279 2019 $0 $685,710 7,370 7,370 $0 $7,370 2018 $0 $685,710 6,460 6,460 $0 $6,460 2017 $0 $685,710 5,390 5,390 $0 $5,390 2016 $0 $685,710 5,390 5,390 $0 $5,390 2015 $0 $685,710 4,590 4,590 $0 $4,590 2014 $0 $685,710 3,840 3,840 $0 $3,840 2013 $0 $685,710 3,200 3,200 $0 $3,200 2012 $0 $685,710 3,200 3,200 $0 $3,200 2011 $0 $685,710 3,100 3,100 $0 $3,100 2010 $0 $293,170 3,200 3,200 $0 $3,200 2009 $0 $293,170 3,310 3,310 $0 $3,310 2008 $0 $164,660 3,420 3,420 $0 $3,420 2007 $0 $164,660 3,260 3,260 $0 $3,260 Deed History - (Last 3 Deed Transactions) # Deed Date Type Description Grantor Grantee Volume Page Deed Number 1 5/6/2021 WD WARRANTY DEED CORDTS EG IF ARBOR 2021015512 &GRACE N& RENEWABLE MASHEDO GAS LLC MINERALS LP 2 1/20/2015 WD WARRANTY DEED MASHED O 2015037904 MINERALSLP 3 1/20/2015 WD WARRANTYDEED CORDTSEGIR CORDTSEGJR 2015002094 &GRACE N& MASHED O MINERALS LP lax Ilu<. vmpenv Tax mmrmahon a:pros/zs/zon Amount Due if Pala on. �- Year Taxing Taxable Base Base Taxes Base Tax Discount/Penalty& Attorney Amount Jurisdiction Value Tax Paid Due Interest Fees Due NOTE Penalty&Interest sources every month on the unpaid tax and Is added to the balance.Attorney tees may also increase your tax liability if not paid W July L If you plan t0 submit payment on a future date,make sure you enter he date and RECALCULATE to obtain the correct total amount due. l?ueefions PleasE i_all (409) 840-5,944 ATTACHMENT"D" DETERMINING FACTOR OF PROJECT SITE LOCATION One of the determining factors that renewable energy developers face when selecting an area for development is where they can achieve the greatest return on the Applicant's investment. An appraised value limitation on qualified property will allow these developers to significantly diminish the property tax liability that comprises a substantial ongoing cost of operation that directly impacts the economic rate of return for the project. As such, securing tax abatements is critical to establish a rate of return competitive with other investment opportunities, and is a determining factor affecting Applicant's final investment decision to construct and operate the proposed project in Beaumont, Texas. Applicant has received a preliminary offer from the State of Louisiana for the first unit for a 10- year tax abatement offer at 80 percent per year,and a proposed $35,600,000 projected tax savings. LED is also offering an up to 6 percent payroll rebate on gross annual payroll for qualifying new jobs for up to 10 years, or a 1.5 percent project facility expense rebate on capital expenditures. LED estimates the value of this performance-based program to be up to $3,400,000 for Applicant. The total estimated incentive value from LED is $39,000,000 on the first unit. Applicant anticipates an updated letter offer from the State to include the additional three units. The 2020 ad valorem tax rates for the Jefferson County site total 2.789948,the City of Beaumont being 0.71 of this. The estimated spend for the first unit is $319,650,000, multiplied by an 80 percent industrial valuation factor is an estimated value of$255,720,000. The City of Beaumont's tax rate of 0.71 times the industrial valuation of$255,720,000 is an $1,815,612 annual property tax burden for the first unit. Applying the same formula to each additional unit's value creates an additional annual property tax burden per unit of$1,562,000. These tax savings have a material impact on the rate of return and discounted cash flow projections for the proposed project, and consequently are a significant and determining factor in Applicant's decision to construct the proposed project in Beaumont, Texas. ,r ��,Q�: �� eta ��,�' gyp. :£ kI _. � - j,, r