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12/12/2022 PACKET
TEXAS MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET MONDAY, DECEMBER 12, 2022 3:00 PM AGENDA CALL TO ORDER Invocation Pledge Roll Call Proclamations, Presentations and Recognitions Public Conualent: Persons may speak on the Consent Agenda and Items 1-6 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.) A. Approval of the December 6, 2022 City Council Meeting Minutes B. Approve a payment of dues to the South East Texas Regional Planning Commission for Fiscal Year 2023 C. Authorize the City Manager to execute Change Order No. 3, accept maintenance and authorize final payment to Vortex Companies for the Threadneedle Outfalt Rehabilitation Project D, Authorize the City Manager to accept maintenance and authorize final payment to SETEX Construction Corp., for the Lawson's Canal Reclamation Planting Project E. Approve the City of Beaumont Investment Policy F. Approve a resolution to participate in the Texas Class Texas Cooperative Liquid Assets Securities System Trust G. Authorize the City Manager to execute all documents necessary to enter into an Interlocal Agreement with Harris County for vehicle leasing H, Authorize the City Manager to execute an Industrial District Agreement with Enterprise Refined Products Authorize the City Manager to execute an Industrial District Agreement with Arkenia J. Authorize the City Manager to execute an Industrial District Agreement with Martin LP K. Authorize the City Manager to execute an Industrial District Agreement with Dow Chemical EXECUTIVE SESSION Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section SS 1.072 of the Governnnent Code, to wit: Riverfront Project REGULAR AGENDA I . Consider authorizing the City Manager to enter into an agreement with Garfield Public/Private LLC to conduct a market study, perform planning and design services, determine estimated costs and develop a business and financing plan related to the possible development of a hotel on property owned by the City 2. Consider authorizing the City Manager to approve grant funding for Lamar University (elated to equipment used for the local Public, Educational, and Government Channel 3. Consider approving a tri-annual contract with Patriot Security Inc., of Nederland, for Security Guard Services 4. Consider authorizing the emergency repair of a six inch sanitary sewer main fionn Wheat Drive to Brentwood Drive Consider approving a contract with Gulf Coast a CRII Company, to supply asphaltic concrete for use by the Public Works Department b, Consider approving a contract with Allied Electrical Systems & Solutions, Inc. for alarm monitoring, maintenance and repair WORK SESSION * Review and discuss the desired graphics for the Southwest Elevated Storage Tank located near Washington Boulevard and I-10 COMMENTS Public Comment (Persons are limited to 3 minutes) Councilmembers/City Manager/City Attorney comment on various matters EXECUTIVE SESSION Consider Tatters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: The Claim of Devin O'Haver * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Caleb Fenter v. City of Beaumont and Chris S. Boone: Cause No. B- 210244 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, ,0 TEXAS TO: City Council FROM: Kemieth R. Williams, City Manager PREPARED BY: Tina Broussard, TRMC, City Clerk MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider approval of the December 6, 2022 City Council Meeting Minutes. 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 11 Audwin Samuel, Ward III DECEMBER 6, 2022 Chris Durio, Mayor Pro Tern Tina Broussard, City Cleric Kenneth R. Williams, City Manager Sharae Reed, City Attorney 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 December 6, 2022, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 5:30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Cali Proclamations, Presentation and Recognition Public Comment: Persons may speak on the Consent Agenda and Agenda items 14-25 Mayor Mouton called the council meeting to order at 5:30 p.m. Pastor Jim Boykin with Sabine Pass Tabernacle Church gave the invocation. Mayor Mouton led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Mouton, Mayor Pro Tem Durio, Councilmembers Getz, Turner, Feldschau, Samuel and Neild. Also, present were Kenneth Williams, City Manager, Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation, Recognitions "Presentation" Mamie McFaddin Ward Heritage Foundation and the Trust Department of Hancock Whitney "Presentation" Golden Triangle Cowboys Football coaches presented plaques to Mayor Mouton, Mayor Pro Tern Durio and Councilmembers Turner and Samuel Mayor Mouton read the announcement regarding the Executive Session being held at the conclusion of Public and Councilmember Comments, COMMENTS Public Comments (Persons are limited to three minutes) Minutes -- December 6, 2022 Mrs. Isaac Jefferson 4785 Lufkin St. Beaumont TX Spoke to Council regarding the sewer issues at her home, stated that on Thanksgiving day due to the heavy rain the sewer backed up in the toilet, they had company and it was very embarrassing, this is the second time they have been to Council regarding this issue and nothing has been done, they had a plumber come out who stated the issue wasn't on their side, the city has also come out and stated it wasn't on their side, she's hoping that they can get something done, her husband is so upset he is willing to go on CNN Carolyn Wright 2335 St. Anthony Beaumont TX Spoke regarding the ditches in her neighborhood, has spoken to Council once before regarding this issue, stated that the day after Thanksgiving when she returned from out of town her toilet had sewer backed up in it, the city came out and started draining the ditches, they left and never returned, this is an ongoing issue, something needs to be done David Thrash 6510 Caswell Beaumont TX Complained about ultra -loud noise coming from the Pour09 bar behind PetSmart, stated that he lives a mile'/2 from Pour09 and they dread the weekend to the extent that they want to move out of Beaumont, the music is so loud it seems like they are at their front door, most of the neighbors won't say anything because they feel that nothing will be done, it's becoming a public nuisance, he's not requesting that the bar be shut down, just asking for help to get the bar to tone their music down, asked that someone speak with those in charge at Pour09 and monitor this establishment Terry Roy 9150 Shepherd Beaumont TX Spoke to Council regarding the same issue that was discussed in previous comments about the sewer backing up in toilets, stated that he had the same issue on Thanksgiving day due to the heavy rain, he's been dealing with this for a long time and he's tired of the temporary solutions that has been given by staff, if the person that's over Water and Sewer doesn't know how to stop this from happening then something should be done, if he did this on his job he would be fired, he's not calling for anybody's job but if the city is trying to grow, it won't grow with these types of issues, this is a health nuisance where feces backs up and stays for twelve hours or more, stated that he will keep coming to Council to complain until they get the issue corrected Mary Williams 9380 Riggs St, Beaumont TX Stated that she lives in the Amelia Neighborhood and very compassionate about her neighbors like Mr. Roy who spoke before her, the problems that he and others are having with their toilets overflowing when there's a heavy rain is unacceptable, Ms. Williams stated that her street was one of the last streets built in their area and so she doesn't deal with the issue, feels the complaints are failing on deaf ears, doesn't think some of the richer neighborhoods have to deal with this, everyone deserves to have their toilets flushing properly, knows that no one on Council would want to deal with that issue in their homes, stated that Beaumont has a new City Manager and she's so glad that he's here, asked that this issue get resolved and get Beaumont back to what it was Minutes —December 6, 2022 Public Comment: Persons may speak on the Consent Agenda and Agenda Items 14-25 None 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.) A. Approval of the November 22, 2022, City Council Meeting Minutes B. Approve an annual maintenance renewal from Automox of Boulder, Colorado for patch management of servers and computers on the city network for use by all city Departments - Resolution 22-314 Councilmember Getz moved to approve the Consent Agenda. Councilmember i=eldschau seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS; NONE MOTION PASSED REGULAR AGENDA Consider a request for a street dedication in honor of William "Boy" Brown. The applicant, Velina Hayes Johnson on behalf of Billie Renee Brown, requests to have the entirety of Bob Street dedicated to William "Bay" Brown. This will serve to honor Beaumont's local disc jockey featured on K-JET radio. The request follows a Proclamation approved by the City Council in 2020 to dedicate December 8th as "Boy Brown Day". This year, friends, family, and supporters of "Boy" Brown will gather for a celebration as he was a nationally acclaimed disc jockey, air personality, and announcer who assumed the household name "BOY" in Beaumont, Texas. The beginning of his career dates back to the historic Beaumont K-JET radio station, where he discs jockeyed for seventeen (17) years beginning in the early 1950's. He became the Program and Music Director of K-JET and hosted Beaumont's first African American owned radio station on 1380 on the a.m. dial. Staff recommends instead of completely changing the street name, this street be designated as an "honorary," naming of "Boy Brown." Such signage will be in a similar fashion to the existing Oaks Historic District signs. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a street dedication in honor of William "Boy" Brown. Approval of the ordinance. Minutes - December 6, 2022 Mayor Pro Tern Durio moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE DEDICATING THE ENTIRE PORTION OF BOB STREET TO WILLIAM "BOY" BROWN STREET IN BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-071 2. Consider a request for a Rezoning from RCR--H (Residential Conservation Revitalization - Historic) District to RCR (Residential Conservation Revitalization) District with a Specific Use Permit to allow a yoga studio located at 1890 Broadway Street. The applicant, Julian Davila requests a Rezoning from RCR-H (Residential Conservation Revitalization Historic District) to RCR (Residential Conservation Revitalization) District and Specific Use Permit to allow a yoga studio at 1890 Broadway Street. Ms. Davila is the current owner of Love Yoga, which is an existing business on Calder Avenue. She is seeking a larger space within the same area to better serve the community and her existing clientele. The hours of operation will be from 8:30 a.m. to 7.00 p.m., the property has continuous sidewalks, which provides connectivity to all patrons, and twenty (20) existing paved parking spots. There is a new privacy fence along the east property line to provide a buffer to the adjacent apartment complex. Per our City's Comprehensive Plan, the property is considered to be located in a Conservation and Revitalization area. Conservation and Revitalization areas are known to have incompatible land uses, dilapidated structures, and decline in population and need immediate action to prevent continued deterioration. Love Yoga is a thriving business and for it to be relocated to 1890 Broadway may bolster this area to attract future investments. The land use of a yoga studio appears to fit within the Comprehensive Plan of Beaumont. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request far a Rezoning from RCR-H (Residential Conservation Revitalization -Historic) District to RCR (Residential Conservation Revitalization) District with a Specific Use Permit to allow a yoga studio. Approval of the ordinance. Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RCR-H (RESIDENTIAL CONSERVATION REVITALIZATION -HISTORIC) DISTRICT TO RCR (RESIDENTIAL CONSERVATION REVITALIZATION) DISTRICT FOR PROPERTY LOCATED AT 1890 BROADWAY STREET, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Turner seconded the motion. Minutes — December 6, 2022 AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-072 Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A YOGA STUDIO IN AN RCR (RESIDENTIAL CONSERVATION REVITALIZATION) DISTRICT AT 1890 BROADWAY STREET IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-073 3. Consider a request for a Rezoning from RM-H (Residential Multiple Family Dwelling -Highest Density) District to GC-MD-2 (General Commercial -Multiple Family Dwelling-2) District with a Specific Use Permit to allow a veterinarian clinic and kennel located at 2040 N. Dowlen Road. Danny Hurych would like to rezone the property at 2040 N. Dowlen Road from RM-H (Residential Multiple -Family Dwelling -Highest Density) to GC-MD-2 (General Commercial - Multiple -Family Dwelling-2) District with a Specific Use Permit to allow a veterinarian clinic and kennel. Property directly across Dowlen Road is zoned GC-MD-2 and this entire area is chopped up with various zoning districts. The requested zoning will allow for stipulations that will protect the residential properties to the north and east. The comprehensive plan recognizes this area as a stable area, As this is a commercial business located next to an RS (Residential Single -Family Dwelling) District, an eight (8) foot tall wood or masonry screening fence along with a ten (10) foot wide landscaped buffer must be installed and maintained along the east property line. The buffer will require one (1) class A Or two (2) class B trees every twenty-five (25) linear feet along the property line. A six (6) foot wide landscape buffer will be required between parking areas and city right-of-way. The buffer will contain a three (3) foot tall wall, berm, or hedge along with one (1) class A or two (2) class B trees every twenty-five (25) linear feet. In addition, one landscaped island containing one (1) class A or two (2) class B trees will be required for every twenty (20) parking spaces on the property. Signage will require a separate permit. All lighting at the rear of the property will need to be directional and shielded to protect the residential property to the east To help control sound from the outdoor relief areas, these areas should be enclosed by an eight (8) foot tall wood or masonry fence, and the sidewalk required along Dowlen Road must be a minimum of five (5) feet wide. Minutes — December 6, 2022 In addition, detention will be needed to ensure that the proposed runoff of the developed site is equal to that of the pre -developed runoff rate for the 100-yr event using Atlas 14 rainfall data. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Rezoning from RM-H (Residential Multiple Family Dwelling -Highest Density) District to GC-MD-2 (General Commercial -Multiple Family Dwelling-2) District with a Specific Use Permit to allow a veterinarian clinic, with the following condition: 1. Install landscaping, screening, and irrigation to meet Zoning Ordinance requirements. 2. Install eight (8) foot tali wood or masonry fences around outdoor relief areas. 3. The sidewalk along Dowlen Road must be a minimum of five (5) feet wide. 4. All lighting at the rear of the property must be directional and shielded from residential property to the east. 5. Construction 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. 6. Detention required to ensure that the proposed runoff of the developed site is equal to that of the pre -developed runoff rate for the 100-yr event using Atlas 14 rainfall data. Approval of the ordinance with the following conditions: 1. Install landscaping, screening, and irrigation to meet Zoning Ordinance requirements. 2. Install eight (8) foot tall wood or masonry fences around outdoor relief areas. 3. The sidewalk along Dowlen Road must be a minimum of five (5) feet wide. 4. All lighting at the rear of the property must be directional and shielded from residential property to the east. 5. Construction 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. 6. Detention required to ensure that the proposed runoff of the developed site is equal to that of the pre -developed runoff rate for the 100-year event using Atlas 14 rainfall data. Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OR ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING -HIGHEST DENSITY) DISTRICT TO GC -MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 2040 N. DOWLEN ROAD, WITH THE CONDITIONS, Minutes — December 6, 2022 BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Getz seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-074 Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A VETERINARIAN CLINIC AND KENNEL IN AN RS (RESIDENTIAL SINGLE- FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 2040 N. DOWLEN ROAD, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS, Councilmember Feldschau seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-075 4. Consider a request for a Specific Use Permit to allow a gaming site in a GD-MD (General Commercial -Multiple Family Dwelling) District located at 2770 College Street. Sajid Lalani has requested a Specific Use Permit to allow a game room at 2770 College Street, suite B, with fifteen (15) gaming machines. The hours of operation for the business would be Monday through Sunday, 12:00 pm to 10:00 pm. Mr. Lalani intends to employ two (2) individuals and one security guard, if needed. It should be noted that gaming facilities that have five (5) or fewer machines are considered to be accessory in nature, when part of a primary use, and as such tend to result in fewer negative impacts on surrounding land uses. However, larger game rooms with dozens of machines require careful consideration as to their location and compatibility with surrounding land uses. Some of these considerations include compatibility with other land uses, noise, and traffic as well as safety considerations. As such, proximity to parks, schools and residential uses should be carefully considered in the review of gaming facilities. This property is immediately adjacent to residential single-family dwellings and within 1,500 feet of Baptist Hospital and Central Park. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to deny the request for a Specific Use Permit to allow a gaming site in a GD- MD (General Commercial -Multiple Family Dwelling) District. Denial of the ordinance. Minutes -- December 6, 2022 Councilmember Samuel moved to DENY AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A GAMING SITE IN A GC -MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 2770 COLLEGE STREET IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Neild seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION DENIED 5. Consider a request for a Specific Use Permit to allow the expansion of an existing funeral home in a GC -MD (General Commercial -Multiple Family Dwelling) District located at 1225 S. 7tt, Street. Freddy Broussard is requesting a Specific Use Permit to allow the expansion of a funeral home at 1225 S. 7t" Street. Mr. Broussard would like to build a garage for use by the funeral home. This garage will allow for the storage of up to three (3) vehicles. Access will be from the existing funeral home property. Mr. Broussard states the garage is needed to protect the vehicles from weather, theft, and vandalism. Calvary Mortuary's hours of operation are Monday through Friday, 8:00 a.m. to 5:00 p.m.;Hours vary on Saturday and Sunday. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request fora Specific Use Permit to allow the expansion of an existing funeral home in a GC -MD (General Commercial -Multiple Family Dwelling) District. Approval of the ordinance. Councilmember Turner moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW THE EXPANSION OF AN EXISTING FUNERAL HOME IN A GC -MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 1225 S. 77H STREET IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Mayor Pro Tem Durio seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-076 6. Consider a request fora Specific Use Permitto allowthree duplexes on three adjacent lots in an RS (Residential Single -Family Dwelling) District located at 3320 Kipling Drive. Brenda Mendez is requesting a Specific Use Permit to allow duplexes on three (3) lots at 3320 Kipling Drive. The property is located at the dead end of Kipling Drive and is Minutes — December 6, 2022 surrounded by single family homes. As these duplexes will be located in an RS (Residential Single -Family Dwelling) District, an eight (8) foot tall wood or masonry screening fence along with a ten (10) foot wide landscaped buffer will be required along the north, east and south property lines. The buffer will require one (1) call A or two (2) class B trees every twenty-five (25) linear feet along the property line. The existing house is red tagged. A work program will need to be signed by the applicant and all work completed/Certificate of Occupancy issued, prior to issue of permits for construction of the other two (2) structures. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Specific Use Permit to allow three (3) duplexes on three (3) adjacent lots in an RS (Residential Single -Family Dwelling) District, with the following conditions: 1. Install landscaping and screening to meet Zoning Ordinance requirements. 2. Must sign a work program and obtain a Certificate of Occupancy for the existing structure before permits may be issued or construction may begin for the other two (2) structures. Approval of the ordinance with the following conditions: 1. Install landscaping and screening to meet Zoning Ordinance requirements. 2. Must sign a work program and obtain a Certificate of Occupancy for the existing structure before permits may be issued or construction may begin for the other two (2) structures. Councilrnember Neild moved to DENY AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW THREE (3) DUPLEXES ON THREE (3) ADJACENT LOTS IN AN RS (RESIDENTIAL SINGLE-FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 3320 KIPLING STREET, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. COunciimember Getz seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS; NONE MOTION DENIED 7. Consider a request for a Specific Use Permit to allow two dwellings on one property in an RS (Residential Single -Family Dwelling) District located at 8325 Morgan Lane. Tory Wingate has requested a Specific Use Permit to allow two dwellings on the property located at 8325 Morgan lane. In 2013 a permit was pulled to allow an accessory garage addition for the property. When inspectors arrived at the property, it was discovered that much more than a garage had been added. An entire house had been constructed without Minutes — December 6, 2022 permits, As the property is located in RS (Residential Single -Family Dwelling) District, only one dwelling is permitted by right on each lot that meets city standards. A stop work order was issued. No power was released to the structure and no certificate of completion was issued. In 2018 it was discovered that additions were being constructed, again with no permits. A second stop work order was issued. This property is in an RS District and as such will only be permitted one meter for each utility. All utilities for the second structure must extend from the existing house. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Specific Use Permit to allow two (2) dwellings on one property in an RS (Residential Single -Family Dwelling) District, with the following conditions: 1. All utilities for the second structure must extend from the existing house. 2. All structures must meet all building and fire codes and receive a Certificate of Occupancy. 3. The second structure must not become a rental unit. Approval of the ordinance with the following conditions: 1. All utilities for the second structure must extend from the existing house, 2. All structures must meet all building and fire codes and receive a Certificate of Occupancy. 3. The second structure must not become a rental unit. Councilmember Getz made a motion, the motion failed due to a lack of a second. Councilmember Samuel made a motion that the item be denied with a second by Councilmember Turner. After further discussion both Councilmembers Samuel and Turner withdrew their motion and second. Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW TWO (2) DWELLINGS ON ONE (1) PROPERTY IN AN RS (RESIDENTIAL SINGLE-FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 8325 MORGAN LANE, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBE;RS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-077 Minutes —December 6, 2022 8. Consider a request for a Specific Use Permit to allow the parking of vehicles with a rated carrying capacity in excess of two tons on undeveloped property in a GC -MD (General Commercial -Multiple Family Dwelling) District located at 5457 Fannett Road. Hani Tohme on behalf of Taz Services, L.L.C., has requested a Specific Use Permit to allow commercial truck parking at 5457 Fannett Road. Plans are to lay gravel and construct an 8,000 square foot structure for oil changes and general maintenance of the trucks. As this property is located adjacent to an RS (Residential Single -Family Dwelling) District, an eight (8) foot tall wood or masonry screening fence along with a ten (10) foot wide landscaped buffer must be installed and maintained along the east property line. The buffer will require one (1) class A or two (2) class B trees every twenty-five (25) linear feet along the property line. A six (6) foot wide landscape buffer will be required between parking areas and city right-of-way. The buffer will contain a three (3) foot tall wall, berm, or hedge along with one (1) class A or two (2) class B trees every twenty-five (25) linear feet. In addition, one landscaped island containing one (1) class A or two (2) class B trees will be required for every twenty (20) parking spaces on the property. Gravel must remain at least two (2) feet from side property lines, All lighting provided must be directional and shielded to protect the residential properties located to the east, and a five (5) foot wide sidewalk will be required along Fannett Road for the width of the property. Ditch 108-A1 begins at the rear of this property and flows southwest before connecting to Ditch 108 and outfalling at Hillebrandt Bayou. This ditch needs to be considered so as not to negatively impact the drainage. Due to this area being prone to flooding, detention will be required to ensure that the runoff rate of the developed site is equal to that of the existing site runoff for the 100-yr event using Atlas 14 rainfall data. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Specific Use Permit to allow the parking of vehicles with a rated carrying capacity in excess of two (2) tons on undeveloped property in a GC -MD (General Commercial -Multiple Family Dwelling) District, with the following conditions: 1. Install landscaping, screening and irrigation to meet Zoning Ordinance requirements. 2. Gravel must remain two (2) feet from side property lines. 3. Install a five (5) foot wide sidewalk for the width of the property along Fannett Road. 4. All lighting to be directional and shielded from properties to the east. 5. Provide on -site detention. 6. Construction 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. 7. Add ADA compliant parking. Approval of the ordinance with the following conditions: Minutes — December 6, 2022 1. install landscaping, screening and irrigation to meet Zoning Ordinance requirements. 2. Gravel must remain two (2) feet from side property lines, 3. Install a five (5) foot wide sidewalk for the width of the property along Fannett Road. 4. All lighting to be directional and shielded from properties to the east. 5. Provide on -site detention. 6. Construction 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. 7. Add ADA compliant parking. Mayor Pro Tern Durio moved to ADOPT AN ORDINANCE, ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW THE PARKING OF VEHICLES WITH RATED CARRYING CAPACITY IN TEXAS IN EXCESS OF TWO (2) TONS ON UNDEVELOPED PROPERTY IN A GC -MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 5457 FANNETT ROAD, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBI RS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS; NONE MOTION PASSED Ordinance 22-078 9. Consider a request for a Specific Use Permit to allow a duplex in an RS (Residential Single - Family Dwelling) District located at 867 Ewing Street. Gerardo Sifuentes is requesting a Specific Use Permit to allow a duplex at 867 Ewing Street. As this duplex will be located in an RS (Residential Single -Family Dwelling) District, an eight (8) foot tall wood or masonry screening fence along with a ten (10) foot wide landscaped buffer must be installed and maintained along the west and south property lines. The buffer will require One (1) class A or two (2) class B trees every twenty-five (25) linear feet along the property line. In addition, the existing sidewalk At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Specific Use Permit to allow a duplex in an RS (Residential Single -Family Dwelling) District, with the following conditions: 1. Install landscaping and screening to meet Zoning Ordinance requirements. 2. Construction 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. Minutes — December 6, 2022 Approval of the ordinance with the following conditions: 1. Install landscaping and screening to meet Zoning Ordinance requirements. 2. Construction 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 Neild made a motion to deny, with a second by Councilmember Feldschau. After further discussion Councilmembers Neild and Feldschau withdrew their motion and second. Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DUPLEX IN AN RS (RESIDENTIAL SINGLE-FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT 867 EWING STREET, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Mayor Pro Tem Durio seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-079 10. Consider a request for a Specific Use Permit to allow a loan business in an RCR (Residential Conservation Revitalization) District located at 2880 Concord Road. Francis Lee is requesting a Specific Use Permit to allow a loan business at 2880 Concord Road. Tower Loan originates and collects installment loans between $4,000 and $25,000. Business hours are Monday through Friday, 8:30 a.m. to 5:30 p.m. As this property is adjacent to an RS (Residential Single -Family Dwelling) District to the north, an eight (8) foot tall wood or masonry screening fence will be required for the width of the property. Lighting will need to be directional and screened from the adjacent residential district. In addition, the parking layout shown on the site plan is unacceptable. A revised parking layout will need to be submitted per city standards. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for a Specific Use Permit to allow a loan business in an RCR (Residential Conservation Revitalization) District, with the following conditions: 1. Install an eight (8) foot tall wood or masonry fence along the north property line. 2. Lighting must be directional and shielded from the adjacent residential district. 3. Revise parking layout per city standards. 4. Bring sign into compliance. Approval of the ordinance with the following conditions: Minutes — December 6, 2022 1. Install an eight (8) foot tall wood or masonry fence along the north property line. 2. Lighting must be directional and shielded from the adjacent residential district. 3. Revise parking layout per city standards. 4. Bring sign into compliance. Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A LOAN BUSINESS IN AN RCR (RESIDENTIAL CONSERVATION REVITALIZATION) DISTRICT FOR PROPERTY LOCATED AT 2880 CONCORD ROAD, WITH THE CONDITIONS, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED 10170 1�-W*z11:111 11, Consider a request for the abandonment of the alleyway in Block 57 of the Van Wormer Addition. Husain Dadabhoy, Pawan Kumar and Ahmed Vaid are requesting the abandonment of the alleyway in Block 57 of the Van Wormer Addition. The applicants own the proposed Beaumont Recycling Center at 565 Orange Street and have purchased the property on both sides of an existing twenty (20) foot wide alley, There is a sanitary sewer line crossing the east end of the alley. A Specific Use Permit will be required for a recycling center in an LI (Light Industrial) District prior to any construction permits or a Certificate of Occupancy being issued. This item was sent to all interested parties with no responses in opposition. At a Joint Public Hearing held on May 16, 2022, the Planning Commission recommended 6:0 to approve the request for an abandonment of a portion of the alleyway in Block 57 of the Van Wormer Addition, with the following condition: 1. If approved, the applicant shall obtain an appraisal and Title Commitment for the property to be abandoned at their expense. Appraisal and Title Commitment must be submitted to the Planning office along with proof that payment has been arranged prior to the item being placed on the City Councils agenda. All required items for the condition have been submitted. Approval of the ordinance. 1. If approved, the applicant shall obtain an appraisal and Title Commitment for the property to be abandoned at their expense. Appraisal and Title Commitment must be Minutes — December 6, 2022 submitted to the Planning office along with proof that payment has been arranged prior to the item being placed on the City Council's agenda. Councilmember Neild moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ABANDONING A 20-FOOT-WIDE ALLEY IN BLOCK 57 OF THE VAN WORMER ADDITION BETWEEN NORTHEAST RIGHT-OF- WAY LINE OF ORANGE AVENUE AND SOUTHWEST RIGHT-OF-WAY OF VICTORIA STREET, WITH THE CONDITION, BEAUMONT, JEFF'ERSON COUNTY, TEXAS, Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-081 12. Consider a request for an abandonment of a portion of the alleyway in Block G, Southerland Addition. Applicant, Kayla Koch, is requesting the abandonment to a portion of the alleyway within the 5100 block between Pennock and Sutherland Streets. Ms. Koch is preparing to sell the five (5) lots located at 5175 Pennock Street. Lots seven (7) through nine (9), west of 5175 Pennock Street may only be accessed by boat at this time. Approval of this request will allow the five (5) lots to have access to Pennock Street and could be developed as a unit under a common development plan. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request for an abandonment of a portion of the alleyway in Block G, Southerland Addition, with the following conditions: 1. Elevation Certificates will be required for construction on the property. 2. Centerpoint Energy shall retain a 10' easement to accommodate future needs to install a gas pipeline. 3. Future utilities shall be placed along the frontage right-of-way. 4. Any further development of these lots must have adequate frontage on an improved street maintained by the city. 5. If approved, the applicant shall obtain an appraisal and Title Commitment for the property to be abandoned at their expense. Appraisal and Title Commitment must be submitted to the Planning office along with proof that payment has been arranged prior to the item being placed On the City Council's agenda. Approval of the ordinance with the following conditions: 1. Elevation Certificates will be required for construction on the property. Minutes —December 6, 2022 13. 2. Centerpoint Energy shall retain a 10' easement to accommodate future needs to install a gas pipeline. 3. Future utilities shall be placed along the frontage right-of-way. 4. Any further development of these lots must have adequate frontage on an improved street maintained by the city. 5. If approved, the applicant shall obtain an appraisal and Title Commitment for the property to be abandoned at their expense. Appraisal and Title Commitment must be submitted to the Planning office along with proof that payment has been arranged prior to the item being placed on the City Council's agenda. Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ABANDONING AN 90' X 20' PORTION OF THE ALLEY LOCATED IN BLOCK G OF THE SOUTHERLAND ADDITION, WITH THE CONDITIONS, BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Getz seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-082 Consider a request to abandon a portion of Sabine Pass Avenue between Blanchette Street and Emmett Avenue, The City of Beaumont, on behalf of Port of Beaumont, is requesting the abandonment of Sabine Pass Avenue between Blanchette Street and Emmett Avenue. The Port of Beaumont is preparing to expand their existing Buford Rail Yard Interchange Track to increase the efficiency of operations and adjust to the growing infrastructure needs associated with moving goods and services to and from the Port. Approval of this request will be paired with a property swap for the City to acquire land near Riverfront Park as part of a larger interlocal agreement between the City and the Port. Note, a natural gas pipeline does exist and runs along Sabine Pass Avenue. At a Joint Public Hearing held on November 21, 2022, the Planning Commission recommended 7:0 to approve the request to abandon a portion of Sabine Pass Avenue, with the following conditions: 1. Retain the abandoned street right-of-way as a drainage and utility easement. 2. The existing streetlights would become security lights within private property upon approval of the abandonment. Security lighting is optional, and therefore, billing for continued usage shall transfer ownership to the developer or the lights shall be removed. Approval of the ordinance with the following conditions: Minutes —December 6, 2022 14 1. Retain the abandoned street right-of-way as a drainage and utility easement. 2. The existing streetlights would become security lights within private property upon approval of the abandonment. Security lighting is optional, and therefore, billing for continued usage shall transfer ownership to the developer or the lights shall be removed. Councllmember Neild moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE VACATING AND ABANDONING A PORTION OF SABINE PASS AVENUE BETWEEN BLANCHETTE STREET AND EMMETT AVENUE, CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS; AND RETAINING A GENERAL UTILITY EASEMENT WITH AN ADDITIONAL CONDITION THAT #3 THE PORT OF BEAUMONT CONVEY TO THE CITY THE APPROXIMATELY 6.7 ACRES OF PROPERTY (UNUSED PORTION OF THE FORMER RAIL YARD) LOCATED BETWEEN THE BEAUMONT CIVIC CENTER AND RIVERFRONT PARK, Councllmember Getz seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-083 Consider an ordinance denying Entergy Texas, Inc.'s proposed rate increase. On July 1,2022, Entergy Texas, Inc. (ETI) filed a Statement of Intent and Application for Authority to Change Rates (Application). ETI's Application was filed with the municipal regulatory authorities that have original ratemaking jurisdiction over electric rates. The increase was intended to become effective on August 5, 2022. On July 19, 2022, the Council adopted an ordinance to suspend the rate increase for a period of ninety (90) days or until November 3, 2022, to allow for review by the City's experts. ETI requested an increase of approximately $131.4 million, which represents an average 11.2% increase across all customer classes. This proposed rate increase would result in a monthly increase of $13.50 for the average residential customer using 1,000 kWh per month. Based on the findings of the City's expert rate consultants retained to review ETI's rate request the city has been advised to adopt an ordinance to deny ETI's Application. The reasonable expenses associated with rate cases are reimbursable by the company. Approval of ordinance. Councllmember Feldschau moved to ADOPT AN ORDINANCE 13Y THE CITY OF BEAUMONT, TEXAS, DENYING ENTERGY TEXAS, INC'S STATEMENT OF INTENT AND APPLICATION FOR AUTHORITY TO CHANGE RATES FILED ON JULY 1, 2022; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Mayor Pro Tem Durio seconded the motion. Minutes — December 6, 2022 AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Ordinance 22-084 15. Consider authorizing the City Manager to execute Change Order No. 2, accept maintenance, and authorize final payment to Elite Contractors and Equipment LTD for the Fleet Management Parking Lot Reconstruction Project Phase If. On February 16, 2022, by Resolution No. 22-057, the City Council awarded a contract to Elite Contractors and Equipment LTD, of Kirbyville, Texas, in the amount of $1,584,104.00, for the Fleet Management Parking Lot Reconstruction Project --- Phase II. Previous Change Order No. 1, had no dollar amount. Proposed Change Order No. 2, in the amount of $466.00, is required to adjust the estimated quantities in the contract to reflect the actual quantities used in the completion of the project. If approved, the adjustment in quantities would result in a final contract amount of $1,584,570.00. The project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of Change Order No. 2, maintenance, and final payment in the amount of $86,822.70 is recommended. Funds will come from the Capital Program. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION CHANGE ORDER NO. 2, IN THE AMOUNT OF $466.00, IS REQUIRED TO ADJUST THE ESTIMATED QUANTITIES IN THE CONTRACT TO REFLECT THE ACTUAL QUANTITIES USED IN THE COMPLETION OF THE PROJECT, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT TO $1,584,570.00; AND THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER No. 2, IN THE AMOUNT OF $466.00 AND THEREBY INCREASING THE CONTRACTAMOUNT TO $1,584,570.00 FOR THE FLEET MANAGEMENT PARKING LOT RECONSTRUCTION PROJECT PHASE II. Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-315 16. Consider authorizing the City Manager to enter into an agreement with Helms Pipe Organ Builders to upgrade the Jefferson Theatre Robert -Morton Organ located at 345 Fannin Street. Minutes — December 6, 2022 The City Council approved, by Resolution No. 22-305, the acceptance of grant funding from the Mamie McFaddin Ward Heritage Foundation, managed by Hancock Whitney, in the amount of $150,000.00, for the restoration and enhancement of the Jefferson Theatre's Robert -Morton Organ. A proposal to upgrade the Jefferson Theatre Robert -Morton Organ has been submitted by Helms Pipe Organ Builders in the amount of $150,000.00 for the transportation, restoration, and installation costs of the upgrade. In addition, Helms Pipe Organ Builders will be donating the additional instruments and related pipes at no cost to the City of Beaumont. The estimated value of the donated items is estimated at $150,000.00. This upgrade will result in a 100% increase in potential power and newly found richness and balance of tone to the already astonishing sound the organ currently produces. Helms Pipe Organ Builders performed the latest renovation and repairs to the organ and are considered the best value contractor for the project due to the specialized knowledge required to restore a Robert Morton Organ and the generous donation of components to make the upgrade complete. Funds will come from the Mamie McFaddin Ward Heritage Foundation and Helms Pipe Organ Builders Approval of the resolution. Councllmember Getz moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN AGREEMENT WITH HELMS PIPE ORGAN BUILDERS OF HOUSTON, TEXAS, IN THE AMOUNT OF $150,000.00 FOR THE TRANSPORTATION, RESTORATION, AND THE INSTALLATION COST OF THE UPGRADE TO THE JEFFERSON THEATRE ROBERT-MORGAN ORGAN. Councilmember Feldschau seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-316 17. Consider authorizing the City Manager to execute an Industrial District Agreement with Slamback. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Slamback that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 16t of each year. Approval of the resolution. Minutes —December B, 2022 Councilmember Neild moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH SLAMBACK PARTNERS, TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Getz seconded the motion. AYES; MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-317 18. Consider authorizing the City Manager to execute an Industrial District Agreement with Goodyear. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Goodyear that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% Of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1st of each year. Approval of the resolution. Councilmember Getz moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH GOODYEAR, TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Mayor Pro Tem Durio seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-318 19. Consider authorizing the City Manager to execute an Industrial District Agreement with Energy Transfer Spindletop LLC, Minutes — December 6, 2022 Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Coastal Caverns which has been acquired by Energy Transfer Spindletop that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 18t of each year. Approval of the resolution. Councilmember Felschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH ENERGY TRANSFER SPINDLETOP, LLC., TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS. NONE MOTION PASSED Resolution 22-319 20. Consider authorizing the City Manager to execute an Industrial District Agreement with DCP Southeast Texas Plant, LLC. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with DCP Southeast Texas Plant, LLL., that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 75% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1st of each year. Approval of the resolution. Mayor Pro Tern Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH DCP SOUTHEAST TEXAS PLANT, LLC., TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Turner seconded the motion. Minutes — December 6, 2022 AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-320 Councilmember Samuel left the meeting at 7:02 p.m. 21, Consider authorizing the City Manager to execute an Industrial District Agreement with Chemtrade Refinery Services, Inc. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Chemtrade Refinery Services, Inc., that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1st of each year. Approval of the resolution. Councilmember Neild moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH CHEMTRADE REFINERY SERVICES INC., TO ENABLE, THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, AND NEILD NAYS: NONE MOTION PASSED Resolution 22-321 Councilmember Samuel returned to the meeting at 7:03 p.m. 22. Consider authorizing the City Manager to execute an Industrial District Agreement with Centana Intrastate Pipeline, LLC. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. Minutes —December 6, 2022 The city currently has an agreement with Centana Intrastate Pipeline, LLC., that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1st of each year. Approval of the resolution. Councilmember Getz moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH CENTANA INTRASTATE PIPELINE, LLC., TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-322 23. Consider authorizing the City Manager to execute an Industrial District Agreement with Exxon Mobil. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Exxon Mobil that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1s' of each year. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH EXXON MOBIL, TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Turner seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU AND SAMUEL NAYS: NONE Minutes —December 6, 2022 ABSTAIN: COUNCILMEMBER NEILD MOTION PASSED Resolution 22-323 24. Consider authorizing the City Manager to execute an Industrial District Agreement with Entergy. Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with Entergy that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 19t of each year. Approval of the resolution. Mayor Pro Tern Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH ENTERGY TEXAS INC., TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Councilmember Feldschau seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-324 25. Consider authorizing the City Manager to execute an Industrial District Agreement with International Brotherhood of Electrical Workers (1BEW). Industrial District Agreements enable the city to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The city currently has an agreement with the International Brotherhood of Electrical Workers (I BEW) that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1st of each year. Minutes — December 6, 2022 Approval of the resolution. Councilmember Neild moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (1BEW) TO ENABLE THE CITY TO COLLECT PAYMENTS IN LIEU OF TAXES FROM INDUSTRIES LOCATED OUTSIDE OF THE CITY LIMITS, BUT WITHIN THE EXTRA TERRITORIAL JURISDICTION OF THE CITY. Mayor Pro Tem Durio seconded the motion. AYES: MAYOR MOUTON, MAYOR PRO TEM DURIO, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-325 WORK SESSION Review and discuss Economic Development Concepts, Alternatives and Implementation Councilmembers/City Manager/City Attorney comments on various matters COUNCILMEMBER COMMENTS COUNCILMEMBER NEILD - NONE COUNCILMEMBER SAMUEL - NONE COUNCILMEMBER FELDSCHAU - THANKED THE CITY MANAGER FOR THE PRESENTATION, IT WAS WELL DONE COUNCILMEMBER TURNER - STATED THAT CITIZENS HAVE QUESTIONS REGARDING THE EMPTY HEB BUILDING ON E. LUCAS AND THE DEED RESTRICTION, THE BUILDING IS AN EYE SORE IN THE NORTH END, STATED THAT BEFORE HE BECAME A COUNCILMEMBER HE SAW WHERE COUNCILMEMBER SAMUEL FOUGHT AGAINST THE DEED RESTRICTION, ASKED THE CITY ATTORNEY IF SHE WOULD SPEAK TO THE DEED RESTRICTION FOR THE BENEFIT OF THE CITIZENS, ALSO STATED THAT ON AUGUST 23, 2022, HE REQUESTED DOCUMENTS FROM STAFF, HE RECEIVED THE DOCUMENTS ON DECEMBER 2, 2022, IT HAS TAKEN 102 DAYS TO RECEIVE THE INFORMATION, THIS IS UNACCEPTABLE, 1F A CITIZEN REQUESTS SOMETHING THROUGH AN OPEN RECORDS REQUEST THEY RECEIVE THE INFORMATION WITHIN TEN DAYS, MOVING FORWARD IF THERE COULD BE SOME CONSISTENCY THAT WOULD BE GREAT, AS A COUNCILMEMBER IT WAS FAR TOO LONG FOR HIM TO WAIT TO RECEIVE THE DOCUMENTS, FEELS THIS WAS VERY DISRESPECTFUL, COUNCILMEMBER Minutes — Decembef 6, 2022 TURNER MADE IT CLEAR THAT HE DIDN'T REQUEST THE DOCUMENTS THROUGH THE NEW CITY MANAGER, THIS IS NOT ON HIM COUNCILMEM13ER GETZ - THANKED THE CITY MANAGER FOR THE PRESENTATION, THINKS THAT THE TOOLS THAT HE PRESENTED IN HIS PRESENTATION COULD BE USED SO THAT BEAUMONT COULD BE THAT SHINING STAR MAYOR PRO TEM DURIO - THANKED THE CITY MANAGER FOR THE PRESENTATION, GLAD THERE'S A NEW SET OF EYES THAT CAN LOOK AT THE SAME OLD PROBLEMS AND COME UP WITH NEW SOLUTIONS, THANKED COUNCILMEMBER TURNER FOR ASKING FOR THE PRESENTATION TO BE DONE, HE HAS ASKED FOR THIS IN THE PAST, GLAD THEY FINALLY GET INFORMATION REGARDING ECONOMIC DEVELOPMENT CITY ATTORNEY REED - NONE CITY MANAGER WILLIAMS - NONE PUBLIC WORKS BARTKOWIAK - NONE ASSISTANT CC MANAGER BOONE - NONE CFO SIMONEAUX - THANKED STAFF FOR THE WORK THAT WAS DONE ON THE INDUSTRIAL AGREEMENTS CITY CLERK BROUSSARD - NONE MAYOR MOUTON - THANKED EVERYONE FOR COMING OUT TO THE MEETING, HOPED THAT EVERYONE HAD A GREAT THANKSGIVING, ALSO THANKED THE BEAUMONT POLICE DEPARTMENT, STATED THAT MR. EDWARD PHILLIPS WENT MISSING OVER A YEAR AGO, HIS BODY WAS FOUND ON SUNDAY NIGHT, GAVE CONDOLENCES TO THE FAMILY OF MR. PHILLIPS WHO NOW HAS CLOSURE, ASKED THAT EVERYONE KEEP THE FAMILY IN PRAYER, THANKED CITY MANAGER WILLIAMS FOR THE GREAT ECONOMIC DEVELOPMENT PRESENTATION, THINKS THAT THE CITY HAS THE RIGHT SET OF EYES AND A NEW CITY MANAGER TO LEAD THE CITY IN THE RIGHT DIRECTION, ASKED THAT EVERYONE GO OUT AND SPREAD THE LOVE Open session of meeting recessed at 7:53 p.m. EXECUTIVE SESSION Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Cade, to wit: Minutes — December 8, 2022 Riverfront Project Robin Mouton, Mayor Tina Broussard, City Clerk Minutes — December 6, 2022 41 AIM TEXAS TO: City Council FROM: Kenneth R Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution approving a payment of dues to the South East Texas Regional Planning Commission (SETRPC) in the amount of $43,233.92 for Fiscal Year 2023. The SETRPC was established in June of 1970 under enabling legislation as a voluntary association of local governments. Its purpose is to encourage and permit local govenunents to join and cooperate with one another to improve the health and safety of their citizens, to plan for Riture development and transportation efforts, and to recognize the needs of agriculture, business and industry, among other things. The City of Beaumont supports the SETRPC and the conununity projects they perform. Some of the programs these dues will fund are the Criminal Justice Program; the Area Agency on Aging (AAA) Program; the Homeless Coalition; the Foster Grandparents Program (FGP); and the Retired Senior Volunteer Program (RSVP), FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. South East Texas Regional Planning Commission 2210 Eastex Freeway Beaumont, Texas 77703-4929 (409) 899-8444 October 18, 2022 INVOICE City of Beaumont P.O Box-3.827 Beaumont, Texas .77704 FY 2023 SETRPC MEMBERSHIP DUES SETRPC Dues $14,195.52 Criminal Justice Programs $ 1,874„34 AAA Program $10,903.02 Homeless Coalition $ 9,298.56 FGP Program $ 2,661.28 RSVP Program $ 4,301,20 Total Invoice 14aA33. 2 r1:rW PLEASE RETURN COPY WITH PAYMENT RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL Ol✓ THE CITY OF BEAUMONT: THAT the City Council hereby approves the payment of fiscal year 2023 dues to the South East Texas Regional Planning Commission (SETRPC) in the amount of $q 3,233.92. 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 12th day of December, 2022. - Mayor Robin Mouton C� TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PRE, PARrD BY: Bart Bartkowiak, Director of Public Works & Technology Services MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute Change Order No. 3, accept maintenance and authorize final payment to Vortex Companies for the Threadneedle Outfall Rehabilitation Project. BACKGROUND On January 11, 2022, by Resolution No. 22-016, City Council awarded a contract to Vortex Companies, of Houston, in the amount of $3,652,012.63 for the repair of the 72" Threadneedle Outfall storm line located within the ExxonMobil Refinery, Previous Change Order Nos. 1 & 2, in the amount of $1,204,571.39, are attached for your review. Proposed Change Order No. 3, in the amount of ($16,234.80), is required to adjust the estimated quantities in the contract to reflect the actual quantities used in the completion of the project. If approved, the adjustment in quantities would result in a final contract amount of $4,840,349,22, The project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of Change Order No. 3, maintenance and final payment in the amount of $484,230.40 is recommended. FUNDING SOURCE Capital Program. RECOMMENDATION Approval of the resolution. RESOLUTION NO, 22-117 WHEREAS, on January 11, 2022 the City Council of the City of Beaumont, Texas passed Resolution No. 22-016 awarding a contract in the amount of $3,652,012.63, through the Houston -Galveston Area Council (HGAC), to Vortex Companies, of Houston, Texas, for the repair of the 72" Threadneedle Outfall storm line located within the ExxonMobil Refinery; and, WHEREAS, Change Order No. 1, in the amount of $1,204,671,39, is necessary to adjust the amount of chemical grouting used to fill In and stabilize the soils around the top of the 72" storm line and to increase the length of the point repair to bring the 72" pipe to grade, thereby Increasing the total contract amount to $4,856,5,84.02; 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 $1,204,571.39 for the additional work described above, thereby increasing the total contract amount to $4,856,584.02 for the repair of the 72" Threadneedle Outfall storm line located within the ExxonMobil Refinery. 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. n PASSED BY THE CITY COUNCIL of the City of Beaumont this the 26th day of April, 2022. - Mayor Pr Audwin Samuel - RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on January 11, 2022, the City Council of the City of Beaumont, Texas passed Resolution No. 22-016 awarding a contract in the amount of $3,652,012.63 to Vortex Companies, of Houston, Texas, for the Threadneedle Outfall Rehabilitation Project; and, WHEREAS, Change Order Nos. 1 and 2, in the amount of $1,204,571,39 are attached for your review shown on Exhibit "A," attached hereto; and, WHEREAS, Change Order No. 3, in the amount of ($16,234.80) is required to adjust quantities in the contract to reflect the actual quantities used in the completion of the project. No additional days will be added to the contract for additional work. If approved, Change Order No. 3 will result in a new contract amount of $4,840,349.22; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute Change Order No. 3, in the amount of ($16,234.80) to adjust quantities in the contract to reflect the actual quantities used in the completion of the project above thereby making the total contract amount to $4,840.349.22 for the Threadneedle Outfall Rehabilitation Project; and, BE IT FURTHER RESOLVED THAT the Threadneedle Outfall Rehabilitation 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 $484,230.40 to Vortex Companies, of Houston, 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 12th day of December, 2022. - Mayor Robin Mouton Contract - 001.003 02-Dec-2022 04,44 f M CST Threadneedle Outfall Rehabilitation Beaumont Beaumont, texas 77701 001.003: CHANGE ORDER NO.3 Grand Total: $-16,234.80 For 001 Threadneedle Outfall Rehab Division 01 Line Item Unit price Typo Group- _ 3.0 Construction Scope of Work Notes Awarded To Vortex Turnkey Solutions LLC Jacob Nix 27956 Reason Quantity Adjustment Code _. . 0 Days Changed Attachments Change Order Summary Original Contract Sum 3,652,012,631 Substantial Completion pate 30-Sep-2022 . r .... Not Cost by Previous Approved COG 1,204,571.39' } Net Time Change By Previous COG 0 bays Contract Sum Before This CO 4,$56,584.42 I Substantial Completion before This CO 30-Sep-2022 Contract Sum Changed By This CO 16,234.80I Time Changed By This CO 0 days -"---- ....... .. Now Contract Sum 4,840,349.22 New Substantial Completion Date 30 Sep-2022 All Change Orders make up 32.54% of the original Contract } Accounting and Status Accounting status Item ld 317 PO Number 422496 i FEMA Number EXHIBIT "A„ ICustomAccounting Field 04 Accounting Project Code STTHRD Custom Accounting Field 06 CustomAccounting Field 05 Custom Accounting Field 07 j Custom Accounting Field 08 Line items Account WBSJ Unit Total Item #Y Code Section f Description Quantity UaNt Price Amount 3.0 Construction A42 GC 01000 72ineh CLEAN AND TV STORM SEWER -1 a.00 LF 10.40 -1 a0.00 Contract ' C01A 01000 GROUND PENETRATING RADAR STUDY-542.00 EA 30,00 -16,250.00 C01B - " 01000 ' CHEMICAL GROUTING (AS NEEDED) -1.00 LB 12.00 -12.00 DT1 01000 MISC.DOWNTIME DUE TO UNFORESEEN DEWATERING 1.00 L5 34,717,20 34,717.20 ACTIVITIES REQUIRED DT2 01000 MISC. DOWNTIME DUE TO DELAYS CAUSED FROM 3,00 DAYS 15,000.00 45,000.00 UNFORESEEN ISSUES WITH BURRIED MANHOLES H8B- 01000 62 INCH TO 72 INCH POINT REPAIR (VARIOUS DEPTHS) -15,00 LF 7,000.00 -105.000.00 Cot MH1 01000 RAISING MANHOLES (MH2, MHC a MHD) (TO INCLUDE PLATES, 1.00 LS 26,600.00 25,500.00 RISERS, BACKFILL, EQUIPMENTAND LABOR) -18,234.80 Total Grand Total.-16,234.B0 Approval Approved Due: B-Dec-2022 or Role Status .... .. .. ... .. ... .. .. Actions ..,name � .. 1 External -GC Approved Jacob Nix 15-Nov-2022 09.17 AM CST 2 Project Manager y1 Approved David Tingle 15-Nov-2022 09:22 AM CST 3 City Engineer ^ f.. Y Approved' Amalia "Moliy" Villarreal 15-Nov-2022 01:14 PM CST . _... ., ... 4 Director Approved Bart Bartkowiak 01-Dec-2022 03:57 PM CST _. 5 Admin Approved Crystal Garza 01-Dac,2022 03:59 PM CST Approved By: Chris Boone Interim City Manager Attested By: tma Broussard City Clerk Contract - 001.002 04•Aug-2022 08,30 AM CST 001.002; CHANGE ORDER NO.2 For 001 'Threadneedle Outtall Rehab Division 01 Line Item Unit price Type Threadneedle Outfall Rehabtiitatlon Beaumont beaumont, texas 77701 Grand Total: $0.00 Group 3.0 Construction Scope of Adjustment to the point repair length from the first change order and adjustment to the number of days for the 6" inch pumping Item (J11) Worst Notes Awarded To Vortex Turnkey Solutions LLC Jacob Nix ' 27958 Reason QuantltyAdjustment Code Days 0 Changed Attachments Change Order Summary Original Contract Sum 3,652,012.t33 Net Cost by Previous Approved OOs 1,204,571.39', Contract Sum Before This CO 4,856,584.02 Contract Sum Changed By Thls CO 0.00 Now Contract Sum 4,866,584.02 All Change Orders make up 32.98% of the Original Contract Accounting and Status Accounting Status Item Id 203 PO Number 422490 Substantial Completion Date Net'Cime Change By Previous COs Substantial Completion before This CO Time Changed By This CO New Substantial Completion Dale FEMA Number 30-Sep-2022 0 days 30-Sep-2022 0 days 30-Sep-2022 Accounting Project Code CustomAccountfng Field 06 Custom Accounting Fluid 07 Line Items STTHRD �Custom Accounting Field 04 Custom Accounting Fluid 06 Custom Accounting Field 08 Account item # Code WBS! Section Description Quantity UoM Unit Price Total Amount 10 Construction H86 - 01000 60 INCH TO 72 INCH POINT REPAIR (VARIOUS DEPTHS) -1.40 LF 7.000.00-0,800.00 Gll1 J11 01000 OPERATE 6inch PUMPING SYSTEM 14.00 DY 700.00 9,800.00 Total 0,00 Grand Total: 0.00 Approval Apprmd Name or Role Status 1 Extemal-GC Approved Jacob Nix GI-Aug-2022 10:24 AM CST 2 Project Manager Approved Remington Whitt 01-Aug-2022 10:28 AM CST 3 City Fngineer Approved Arnalfa "Molly" Vllarreal 02-Aug-2022 01 A 8 PM CST 4 Director Approved Bart Bartkowfak 02-Aug-2022 04:48 PM CST 5 Admin Approved Crystal Garza 02-Atlg-2022 07:08 PM CST Approved By: Interim City Manager Due: 8-Aug-2022 Actions Attas By: Q- U—wQA Ol Tina Broussard My Clerk 9 Contract # 001 .001 22-Apr-2022 01:39 PM CST 001.001: CHANGE ORDER NO, 1 Threadneedlo Outfall Rehabil€tatlon Beaumont Beaumont, texas 77701 Grand Totat: $1,204,571.39 For 001 Threadneedle Outfall Rehab Division 01 Line Item Unit price Type Group 3.0 Construction scope of CHEMICAL GROUTING WAS USED TO FILL IN SUBSURFACE VOIDS A13OVE THE 72" PIPE AND 53 LF 1S ADDED TO THE POINT Work REPAIR TO BRING THE PIPE To GRACE. Notes Awarded To Vortex Tumkey Solutions LLO dawn Nix 27958 Reason QuantllyAdjustment Code Days 0 Changed Attachments Change Order Summary Original Contract Sum 3,662,012,63 ° Substantial Completion date 30-Sep 2022 Net Cost by Previous Approved COs 0.00 !Net Time Change By Provlous COs 0 days Contract sutra Before This CO 3,652,012.63' Substantiat Completion before This CO 30-Sep-2022 Contract Sum Changes{ By This CO 1,204,571.39' Tima Changed By This CO 0 days Now Contract Sum 4,856,584.02 ` New Substantial Completion Date 30-Sep-2022 Ali Change Orders make up 32.98% of the Original Contract Accounting and Status Accoultthig Status Item Id 244 PO Number 42206 PEMA Number Accounting Project Co de STTHRD Custom Accounting Field 04 Custom Accounting Field 05 Custom Accounting Field O8 Custom Accounting Field 07 I Custom Accounting Field 00 € Line Items unit Total I Account Item 0 Code WBS! Section Description Quantify Uoi41 Price Amount 3.0 Construction f CO 1h 01000 CHEMICAL GROUTING (AS NEEDED) 67,980.82 LB 12.00 815,769.84 60 INCH TO 72 INCH POINT REPAIR (VARIOUS 53.00 LF 7,000.00 371,000.00 i H86_ 01000 CO1 DEPTHS) 0100 PAYMENT AND PERFORMANCE BOND (1.5%) 1,00 LS 17,801.56 17,801.55 ' PPB. i 1,204,571.39 Total Grand Total: 1,204,671,39 ApprOVal Approved Name or Role 1 Extemal-GC 2 Project Manager 3 City Engineer 4 Director l Approved By: Chris Bootie Interim City Manager Status Approved Jacob NIX 22-Apr-202211:49 AM CST Approved Remington Whitt 22-Apr-202211:57 AM CST Approved Amalia'Molly" Villarreal 22-Apr 2022 01:36 PM CST Approved Bert Bartkowiak 22-Apr-2022 01:37 PM CST Attested By: Tina Brous City Clerk Due: 29-Apr-2022 i Actions i Invoice # 001.006 02-Dec-2022 03:54 PM CST Threadneedle Outfalt Rehabilitation Beaumont beaumont, texas 77701 001,006: Vortex Turnkey Solutions LLC - Threadneedle Outfall Rehab Amount Clue: $484,230.40 For Contract Contract- 001 Threadneedle Outfall Rehab Date ~I '02-Dec-2022 Line Item Unit price Type -- Group 3,0 Construction Pay Period 01-Sep-2022 to 02-Dec-2022 Retainage WC 10,00 - MS 0.00 Payment To Vortex Turnkey Sotutlons LLC Jacob Nix 27958 1 Date Due Terms... Attachments i Line Items Work Materials Account WBS{ Unit Completed Stored % WC % MS Item # Code Section Description Quantity tloM Price (WC) (MS) Rot ainage Retainage 3.0 Construction A42 GC 01000 721nch CLEAN AND TV STORM 0.00 LF 10.00 180.00 0.00 0.00 0A0 Contract SEWER B7 - - 01000 721neh STORM PIPE - QLS 0.00 LF 765.00 0.00 0.00 0.00 0.00 REHABILITATION C01A T ~ « 01000 GROUND PENETRATING-„ 0,00 EA 30.00 16,260.00 0.00 0.00 0.00 RADAR STUDY C01B 01000 CHEMICAL GROUTING (AS" ' " 0.00 LB 12.00 12.00 0.00 0.00 0.00 NEEDED) CO1C 01000 MOBIL17ATION 0.00 LS 3,680.00 0.00 0,00 0.00 0.00 I G34� ^ - - `01000 SEWER STRUCTURES 0.00 SF 30.00 0.00 0.00 0.00 0.00 REHABILITATION H86 01000 601nch - 721nch POINT REPAIR 0.00 LF 7,000.00 0.00 0.00 0.00 0.00 J11 01000 OPERATE 61nch PUMPING 0.00 DY 700.00 0.00 0.00 0,00 0.00 SYSTEM 's Work Materials Account WB51 Unit Completed Stored %WC %MS Item 1# Code Section Description Quantity UOM Price (WC) (MS) Rotainage Retainage J2 W000 SET UP 61nch PUMP AND 0.00 EA 4,600.00 0.00 0.00 0100 0.00 PIPING P13 01000 TRAVEL AND MOBILIZATION - 0.00 EA 3,250.00 0.00 0.00 0.00 0.00 TML REGION 14 PP 01000 PAYMENTAND 0.00 EA 63,374.80 0.00 0.00 0,00 0.00 PERFORMANCE BOND PP �- 01000 PAYMENTAND 0.00 LS 555.83 0.00 0.00 0.00 0.00 PERFORMANCE BOND Total 16,462.00 0.00 CHANGE ORDER NO. 1 3.0 Construction CO lb 01000 CHEMICAL GROUTING (AS 0.00 LB 12.00 0.00 0.00 0.00 0,00 '. NEEDED) H86 - 01000 60 INCH TO 72 INCH POINT 0.00 LF 7,000.00 0.00 0.00 0.00 0.00 C01 REPAIR (VARIOUS DEPTHS) PPB 0100 PAYMENTAND 0.00 LS 17,801.55 0.00 0.00 0.00 0.00 PERFORMANCE. BOND (1.5%) Dotal 0,D0 0.00 CHANGE ORDER NO.2 - 3.0 Construction H86 - 01000 60 INCH TO 72 INCH POINT 0.00 LF 7,000.00 0.00 0.00 0.00 0.00 C01 REPAIR (VARIOUS DEPTHS) J11 01000 OPERATE 61nch PUMPING 0.00 DY 700.00 0.00 0.00 0.00 0.04 SYSTEM Total 0.00 0.00 CHANGE ORDER N0.3.3.0 Construction A42 Go 01000 72inch CLEAN AND TV STORM 0.00 LF 10.00 -180.00 0.00 0.00 0.00 Contract SEWER C01A 01000 GROUND PENETRATING 0.00 EA 30.00 -16,260.00 0.00 0.00 0,00 RADAR STUDY 001E _ 01000 CHEMICAL GROUTING (AS 0.00 LB 12.00 -12.00 0.00 0.00 0.00 NEEDED) I :. DT1 0100D MISC DOWNTIME DUE TO 0.00 LS 34,717,20 34,717.20 0.00 0.00 0100 UNFORESEEN DEWATERING ACTIVITIES REQUIRED DT2 -01000 MISC DOWNTIME DUE TO 0.00 DAYS 15,000.00 46,000.00 0.00 0.00 0.00 DELAYS CAUSED FROM UNFORESEEN ISSUES WITH BURRIED MANHOLES H86- 01000 62 INCH TO 72 INCH POINT 0.00 LF 7,UOO.00 -106,000.00 0.00 0.00 0.00 C01 REPAIR (VARIOUS DEPTHS) Work Materials Account WBSI Unit Completed Stored % WG % MS Item # Code Section Description Quantity UoM price (WC) (MS) Retainage Retainage MH1 � + Ot000 ^ RAISING MANHOLES (MH2, 0.00 LS 26,600.00 25,500.00 0.00 0.00 0.00 MHC & MHD) (TO INCLUDE PLATES, RISERS, BACKFILL, EQUIPMENTAND LABOR) Total -16,234.80 0100 Grand Total: $217,20 Summary 1, CONTRACT SUM +AMENDMENTS 3,652,012.63 2, NET CHANGE: BY Change Order 1,188,336.59 3. CONTRACT SUM TO DATE (Line 1+ Line 2) 4,840,349.22 4. TOTAL. COMPLETED & STORED TO DATE 4,840,349.22 5. RETAINAGE 5a. 10.00% Of Completed Work (Column I on Continuation Sheet) 0.00 5b. 0,00 /a Of Stored Material (Column J on Continuation Sheet) 0.00 TOTAL R1TAI NAG E (5a + 5b) 0,00 6. TOTAL EARNED LESS TOTAL RETAINAGE 4,840,349.22 7. LESS PREVIOUS CERTIFICATES FOR PAYMENT 4,366,111. 8.82 $484,230.40 8. CURRENT AMOUNT DUE 9. BALANCE TO FINISH, INCLUDING RETAINAGE (Line 3 less Llne 6) 0.00 Change Order Summary NET CHANGE by Change Order $1,188,336.59 ADDITIONS DEDUCTIONS Total changes approved In previous pay periods 1,214,371.39 -9,800.00 Total approved this pay period 105,217.20 -121,452.00 TOTAL 1,319,588.,99 -131,252.00 Accounting and Payment Status Invoice Id 473 Payment Status Check #s paid Amount $ fl.00 Paid bate PO Number ' - 422496 FEMA Number Accounting Project Code STTHRD ; Custom Accounting Field 04 Custom Accounting Field 05 Custorn Accounting Field 06 I Custom Accounting Field 08 Custom Accounting Field 07 Approval Approved Due: J-Dec-2022 Name or Role Status Actions 1 External -GC Approved Jacob Nix 02-Dec-202211:59 AM CST ~2 ^'Project Managerv~� ... �...�. � ..,�. ,�... Approved David Tingle 02-Dec-2022 01:19 PM CST 3 "City Engineer' V Approved Ama€la "Molly" Villarreal 02-Dec-2022 02:12 PM CST 4 ...Director ., . .... ... ,. , • . W .. ...., , _ .. Approved Bart Badkow€ak 02-Dec-2022 02:33 PM CST , .5... Admin •.� �.......,....,........... . .... � _ .._ �... lPApproved Crystal Garza 02-Dec-2022 03:54 PM CST Created by: David Tingle on 02-Doc-2022 Last Modified by: Crystal Garza on 02-Dec-2022 BEAUMONT TO: City Council FROM: 1�enneth R. Williams, City Manager PREPARED BY: Bait Bartkowiak, Director of Public Works & Technology Services MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to accept maintenance and authorize final payment to SETEX Construction Corp., for the Lawson's Canal Reclamation Planting Project. BACKGROUND On May 10, 2022, by Resolution 22-122, City Council awarded a contract to SETEX Construction Corp., of Beaumont, in the amount of $59,000,00, for the Lawson's Canal Reclamation Planting Project. 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 maintenance and final payment in the amount of $2,950.00 is recornmended. FUNDING SOURCE Water Fund — Non -Operating Construction. RECOMMENDATION Approval of the resolution. RESOLUTION NO, 22-122 WHEREAS, the City of Beaumont solicited bids for furnishing all labor, materials, and equipment for the Lawson's Canal Reclamation Planting Project; and, WHEREAS, SETEX Construction Corp., of Beaumont, Texas, submitted a bid In the amount of $59,000.00; and, WHEREAS, the City Council is of the opinion that the bid submitted by SETEX Construction Corp., of Beaumont, 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 SETEX Construction Corp., of Beaumont, Texas, In the amount of $59,000.00, for the Lawson's Canal Reclamation Planting Project; and, 13E IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with SETEX Construction Corp,, of Beaumont, 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 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10th day of May, 2022, Mayor Robin Mouton RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on May 10, 2022, the City Council of the City of Beaumont, Texas passed Resolution No. 22-122 awarding a contract in the amount of $59,000.00 to SETEX Construction Corp., of Beaumont, Texas, for the Lawson's Canal Reclamation Planting Project; 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; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute final payment in the amount of $2,950.00 for additional work described above for the Lawson's Canal Reclamation Planting Project; and, BE IT FURTHER RESOLVED THAT the Lawson's Canal Reclamation Planting Project be and the same is hereby accepted; and, 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 12th day of December, 2022. - Mayor Robin Mouton PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2022. - Mayor Robin Mouton - 41 U ,D % 1 of U0 M CI © P, p o 0 0 Q O o p d O o E m o p U c z a ool I a) M 0 3: sQ� �,Jj CD ti o m Cl h- S''? 0 IL © A � o O 0qS r E R } Y LO O a d z -N 0'd,to 1� TEXAS TO: City Council FROM: Kenneth R Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution approving the City of Beaumont investment Policy. BACKGROUND State law mandates the City Council to review the Investment Policy and approve modifications, if any, on an annual basis. The City last made amendments to the Investment Policy on September 28, 2021 through resolution 21-230. Only slight wording changes, renumbering of the table of contents, and changes to the broker/dealer list are being proposed to the policy by the City to update old information, Under diversification, we also removed the clause that stated that no more than thirty percent (30%) par of the portfolio may be invested with any one U.S. Agency or Instrumentality since U.S. investments are considered secure investments. No changes are required due to a change in legislation. 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 of Beaumont Investment Policy, substantially in the form attached hereto as Exhibit "A," has been reviewed and is hereby in all things adopted. 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 12th day of December, 2022. - Mayor Robin Mouton - TEXAS Investment Policy Adopted by City Council December 12, 2022 EXHIBIT "A" City of Beauntont - lnvestrnent Policy „- FMd code C,anged Table of Contents 1. Introduction................................................... ............................................................. I H. Scope .............................. ............. ................................................................................. I III. Prudence ........................... ................................................... ...................................... I IV. Objectives,.„................................................................................................................I A. Safety of Principal..........................................................................................2 B. Liquidity ....... .................................... ...................................................... — ..... 2 C. Public Trust.........................................................................................„.........2 D. Yield................................................................................................................2 V. Delegation of Authority.............................................................................................2 VI. Ethics and Conflicts of Interest................................................................................3 VII. Training..............................................................................................„.....................3 VIE. Selection of financial Dealers, Institutions and Investments Pools ........„...........3 A. Brol(erlDealers...............................................................................................4 B. Public Depositories.........................................................................................4 C. Investment Pools............................................................................................5 IX. Authorized and Suitable Investments......................................................................5 X. Competitive Environment .........................................................................................7 X1. Collateralization.........................................................................................................7 XH. Safekeeping and Custody.........................................................................................8 X11I. Diversification............................................................................................................8 XIV. Investment Strategies................................................................................................9 A. Pooled Fund Groups.......................................................................................9 B. Debt Service Funds.......................................................................................10 C. Debt Service Reserve Funds.........................................................................10 D. Natural Gas Account................................................................11 XV. Intel-Itial Control......................................................................................................12 XVI. Performance Standards.........................................................................................12 XVU, Reporting.................................................................................................................12 XVIII. Investment Policy Adoption...................................................................................13 Exhibits Exhibit A - Approved List Broker/Dealers...........................................................................15 Exhibit B - Certification by Business Organization............................................................16 City of Beaumont Field Code Changed Investment Policy ,i. Introduction ---------------- it is the policy of the City of Beaumont to invest public funds in a manner that will ensure that the investments are duly authorized, properly managed, adequately protected and fully collateralized. The City shall seek the optimum investment return with the maximum security while meeting daily cash needs and conforming to the City Charter, the Public Funds Investment Act (Chapter 2256, Government Code as amended) and all other state and local statutes governing the investment of public funds. II. Scope This Investment Policy applies to all financial assets of the City as accounted for in the City's Annual Comprehensive Financial Report. These include General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Permanent Funds. All are pooled for investment purposes except debt service and debt service reserve funds, and the natural gas account. Interest is allocated monthly to each fund based on its individual cash balance. III. Prudence Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. The "prudent person" standard shall be applied in the context of managing the total portfolio rather than a single investment providing that the decision was consistent' with this Investment Policy. Investment Officers acting in accordance with written procedures and the Investment Policy and exercising due diligence shall be relieved of responsibility for an individual investment's credit risk or market price changes provided that deviations from exceptions are reported in a timely fashion and appropriate action is taken to control adverse developments. IV. Objectives The primary objectives, in priority order, of the City's investment activities shall be safety of principal, liquidity, public trust, and yield, Field Code Changed A. Safety of Principal The City has as its foremost objective to ensure the safety of principal. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. To attain this objective, diversification is required in order to eliminate an over -concentration of assets in one institution, maturity or type of investment, where appropriate. B. Uquidity The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated. The portfolio shall be constructed so that investment maturities are matched with forecasted cash flow requirements and limited by investments with an active secondary market or convertible to cash with little or no penalty. C. Public Trust Investment Officers shall seek to act responsibly as custodians of the public trust. Investment Officers shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. D. Yield The City's investment portfolio shall be designed with the objective of attaining a rate of return that is consistent with risk limitations and cash flow characteristics of the City's investments. V. Delegation of Authority Authority to manage the City's investment program is derived from the City Charter (article VII, section 1-2). The Charter designates the City Manager as Director of Finance who shall have custody of all public funds, investments, bonds and notes of the City and be responsible for their safekeeping. The City Manager shall establish written procedures for the operation of the investment program consistent with this investment Policy that include explicit delegation of authority to persons responsible for investment transactions. The City Manager shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager, the Chief Financial Officer, and the City Controller are approved as Investment Officers of the City. Such approval of specific persons shall remain in effect until rescinded by the City Council or until termination of the person's employment by the City. Investment Officers shall not deposit, withdraw, transfer or manage the funds of the City in a manner that is not consistent with the "prudent person" standard as described in section III of this Policy. The City Council maintains the right to hire Investment Advisers to assist City staff in the investment of funds. Investment Advisers shall adhere to the spirit, philosophy and specific terms of this Policy and shall invest within the same objectives. The City Manager shall establish criteria to evaluate Investment Advisers, including: E, Adherence to the City's policies and strategies; F. Investment strategy recommendations within accepted risk constraints; G. Responsiveness to the City's request for services and information; H. Understanding of the inherent fiduciary responsibility of investing public funds; and 1. Similarity in philosophy and strategy with the City's objectives. Selected Investment Advisers must be registered under the Investment Advisers Act of 1440 or with the State Securities Board. A contract with an Investment Adviser may not be for a term longer than two years and any contract, renewal or extension must be approved by the City Council. VI. Ethics and Conflicts of Interest Investment Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment Officers shall disclose any personal business relationships with business organizations approved to conduct investment transactions with the City. They shall also disclose any specific individuals who seek to sell investments to the City and are related to the Investment Officer within the second degree by affinity or consanguinity, as determined under Chapter 573. Disclosure shall be filed with the Texas Ethics Commission and the City Council. VII. Training In order to ensure qualified and capable investment management, each Investment Officer shall attend at least ten (10) hours of training relating to investment responsibilities within 12 months after assuming such duties and shall continue to attend an investment training session consisting of at least eight (8) hours of instruction not less than once every two years thereafter. The two-year period shall begirt on the first day of the City's fiscal year and consist of the two consecutive fiscal years after that date. Training shall be in accordance with the Public funds Investment Act and include education in investment controls, security risks, strategy risks, market risks, and compliance with State statutes governing the investment of public funds. All training shall be conducted by an independent source that has been approved by City Council. The approved "independent sources" to provide such training are: the Government Treasurers Organization of Texas, the Government Finance Officers Association, the Government finance Officers Association of Texas, the Texas Municipal league, and the University of North Texas. Vill. Selection of Broker/ Dealer's, Financial Institutions and Investment Pools Authorized investments shall only be purchased from those institutions selected and approved in accordance with this Policy. Any investment pool or discretionary investment management firm which seeks to execute investment transactions with the City shall provide a written instrument certifying that they have received and thoroughly reviewed the City's Investment Policy and have implemented reasonable procedures and controls in an effort to preclude investment transactions that are not authorized by this Policy. The certification, as shown by example, in Exhibit B, must be signed by a qualified representative of the investment pool or discretionary investment management firm. Each th ne City Cotucil approves o ntnaterial revision to the Investment Policy, The eertifreationn should be sent to file approved iuvestnntenit pool ar discretionaary intves(nnnenf nttanagernnetef ftrntt along ivifh the newly revised Ittveshnte►at Policy. A. Brolcerll)ealers The City shall select broker/dealers by their ability to provide effective market access and may include "Primary Government Securities Dealers" or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3- 1 (uniform net capital rule). Broker/dealers selected must be members in good standing of the Financial Industry Regulatory Authority ("FINRA") and be licensed by the State of Texas. Each broker/dealer will be reviewed by the Investment Officers and a recommendation will be made for approval by the City Council. An "approved broker/dealer list", as shown in Exhibit A, shall be maintained by the Investment Officers at all times and approved by the City Council on an annual basis. The City shall not enter into transactions with a broker/dealer until official City Council approval. B. Public De€tositorles/Financial institutions The City Council shall select a primary depository as required by law, The primary depository as authorized by the City Council shall meet all requirements of the state law concerning depositories for municipal funds (Chapter 105, Government Code). The primary depository shall be selected through the City's banking services procurement process, including a formal Request for Application (RFA) issued in compliance with applicable State law, and offers the most favorable terms and conditions for the handling of City funds. The City may also establish agreements with other financial institutions under separate contract for additional services that are necessary in the administration, collection, investment, and transfer of municipal funds. Such deposits will only be made after the financial institution has completed and returned the required written instruments and depository pledge agreements. No deposit shall be made except in a qualified public depository as established by State Law. C. Investment Pools Investment Officers may invest funds of the City through an eligible investment pool with specific approval by resolution of City Council and execution of a written agreement. To become eligible, investment pools must first meet all requirements of State Law. They shall provide the City with an offering circular that contains specific and detailed information, .investmment transaction confrrmallons, and detailed monthly transaction and performance reports. Pools shall have advisory boards composed of qualified members representing participants and non- participants who do not have a business relationship with the pool. Before selection, pools shall be thoroughly reviewed and evaluated by the Investment Officers, IX. Authorized and Suitable investments Authorized investments for municipal governments in the state of Texas are set forth in the Public Funds Investment Act, as amended. Suitable investments for the City are limited to the following; ■ Direct Obligations of the United States or its agencies and instrumentalities that have a maximum stated maturity date of 5 years or less. Financial institution deposits placed with approved financial institutions as described above (section VIII-B) which have a maximum stated maturity date of 5 years or less and are insured by the Federal Deposit Insurance Corporation, or their successors; or secured as described in section XI Coll ateralization. Additionally, the City may execute certificates of deposit, and other forms of deposit, in any manner authorized by the Public Funds Investment Act. Fully collateralized direct repurchase agreements with a defined termination date of 90 days or less which are secured by cash or obligations of the United States or its agencies and instrumentalities and pledged with a third party other than an agent for the pledgor. Investment officers may invest in repurchase agreements through an approved primary government securities dealer or an approved depository bank as described above (section VIII-A, B). Each issuer of repurchase agreements shall be required to sign a master repurchase agreement. For flexible repurchase agreements executed with bond proceeds, the defined termination date of 90 days or less may be waived to allow the term of the flexible repurchase agreement to more closely match the expected torm of the bond project. No load money market mutual funds registered with and regulated by the Securities and Exchange Commission whose investment objectives include the maintenance of a stable net asset value of $1 per share. Moncy market mutual funds must maintain a AAAm, or equivalent rating from at least one nationally recognized rating agency; have a average weighted maturity of less than two years; and provide the City with a prospectus and other information required by the Securities and Exchange Act of 1934 and be specifically approved by City Council or purchased through the City's primary depository as an overnight investment too). The City ntay not own more than .la% of the money market nmtual final's total assets. ■ Approved investment pools as described above (section VHI-C) which are continuously rated no lower than AAA, AAA-m or an equivalent rating by at least one nationally recognized rating agency. Investments Not Authorized - The following investments are not authorized under this section: a. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage -backed security collateral and pay no principal; b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage -backed security collateral and bears no interest; c. Collateralized mortgage obligations that have a stated final maturity date of greater than ten years; and d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Not less than quarterly, the Investment Officers wilt monitor the credit rating for each held investment that has a Public Fund Investment Act required minimum rating. Any Authorized Investment that requires a minimum rating does not qualify during the period the investment does not have the minimum rating, Prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. The City is not required to liquidate investments that were authorized investments at the time of purchase. The purchase of stock is not an authorized investment for municipal governments. However, stock may be accepted as a donation, provided that it is held in accordance with the terms of the donation and sold as soon as it is advantageous to do so. Reinvestment of proceeds must be in accordance with authorized and suitable investments for the City as listed above, X. Competitive Environment It is the policy of the City to provide a competitive environment for all individual security purchases and sales, financial institution deposits, and money market mutual fund and local government investment pool selections. The Investment Officers shall develop and maintain procedures for ensuring competition in the investment of the City's funds. XI. Coliateralization Collateral ization will be required on all financial institution deposits and repurchase agreements, With the exception of deposits secured with irrevocable letters of credit at 100% of amount, the collateralization level shall be equal to at least one hundred two percent (102%) of the aggregate market value of the deposit or investment including accrued interest less an amount insured by the Federal Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented by a custodial or a master repurchase agreement with the eligible collateral clearly listed in the agreement. Collateral shall be reviewed at least monthly to assure that the market value of the securities pledged equals or exceeds the related deposit or investment requirement. Collateral requirements shall be in accordance with both the Public Funds Investment Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is limited to direct obligations of the United States or its agencies and instrumentalities. The City shall accept a surety bond or the following investment securities as collateral on deposits and certificates of deposit: ■ Direct obligations of the United States or its agencies and instrumentalities. Direct obligations of this state or its agencies and instrumentalities. ■ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States and excluding those mortgage -backed securities considered a high -risk mortgage security as described by Section 2257.0025 of the Government Code. ■ Other obligations that are guaranteed or backed by the full faith and credit of this state or the United States or their respective agencies and instrumentalities. • Obligations of states, agencies, counties, cities and other political subdivisions rated not less than A or its equivalent. ■ betters of credit issued by the United States or its agencies and instrumentalities. Financial institutions serving as depositories will be required to sign a depository agreement with the City. The collateralized deposit portion of the agreement shall define the City's rights to the collateral in case of default, bankruptcy or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including: 1. The agreement must be in writing; 2. The agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset: 3. The agreement must be approved by the Board of Directors or designated committee of the Depository and a copy of the meeting minutes must be delivered to the City; and 4. The agreement must be part of the Depository's "Official Record" continuously since its execution. XI.I. Safekeeping and Custody Collateral shall be placed for safekeeping in a custodial account at the federal Reserve Bank or at an institution not affiliated with a firm pledging collateral acceptable to the City. All safekeeping arrangements shall clearly define the responsibilities of each party and outline the steps to be taken in order for the City to gain access to the collateral in the event of a "failure". The custodial agreement shall be executed between the City, the firm pledging the collateral and the custodial institution, as applicable. All safekeeping receipts shall be delivered to the City and all collateral (whether a pledge or substitution) shall be formally accepted and released by Investment Officers. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a delivery -versus -payment (I)VP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the safekeeping institution. Financial institution deposits, pool funds, and mutual funds are excluded from this requirement. The investment shall be held in the name of the City or on behalf of the City. XIII. Diversification The City will diversify its investments to eliminate an over -concentration of assets in any one security type or institution. • Up to ninety percent (90%) par of the portfolio may be invested in direct obligations of the United States (U.S. Treasury Securities). ■ Up to seventy percent (70%) par of the portfolio may be invested in U.S. Agency or Instrumentalities. ■ Up to one hundred percent (1{10°/a) par of the portfolio may be invested in investment pools for liquidity purposes with no more than eighty percent (901/0) par of the portfolio invested in any one pool. ■ No more than fifty percent (50%) par of the portfolio may be invested in money market mutual funds. XIV, Investment Strategies The City shall maintain a separate investment strategy for each of the fund types represented in the portfolio, A. Pooled Fund Groups Suitability — Any investment eligible in the Investment Policy is suitable for Pooled Fund Groups. Safety of Princi al — All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, managing the weighted average days to maturity of each fund's portfolio to less than 365 days and restricting the maximum allowable maturity to three years using the final stated maturity dates of each investment will minimize the price volatility of the portfolio, Li uldit — Pooled Fund Groups require the greatest short-term liquidity of any of the fund -types. Short-term financial institution deposits, investment pools and money market mutual funds will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Marketability — Investments with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Historical market "spreads" between the bid and offer prices of a particular security -type of less than a quarter of a percentage point will defmc an efficient secondary market. Diversification — Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Diversifying the appropriate maturity structure up to the three-year maximum will reduce interest rate risk. Yield — Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio will be the minimum yield objective. B. Debt Service Funds Suitabilit — Any investment eligible in the Investment Policy is suitable for Debt Service Funds. Safety of Prilrcipal — All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Funds to not exceed the debt service payment schedule the market risk of the overall portfolio will be minimized. The stated final maturity date on investments purchased shall not exceed the debt service payment date unless excess funds are available. In that case, maximum maturities shall not exceed two (2) years from the date of purchase. Liquidity — Debt Service Funds have predictable payment schedules. Therefore, investment maturities should not exceed the anticipated cash flow requirements. Financial institution deposits, investments pools, and money market mutual funds may provide a competitive yield alternative for short- term fixed maturity investments. A singular repurchase agreement may be. utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement. Marketability — Investments with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not probable, Diversification — Market conditions influence the attractiveness of fully extending maturity to the next "unfunded" payment date. Generally, if investment rates are anticipated to decrease over time, the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield — Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio shall be the minimum yield objective. C. Dent Service Reserve Funds Suitability —Any investment eligible in the Investment Policy is suitable for Debt Service Reserve Funds. Bond resolution and loan documentation constraints and insurance company restrictions may create specific considerations in addition to the Investment Policy. to Safety of Principal — All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur, However, by managing Debt Service Reserve Fund maturities to generally not exceed the call provisions of the borrowing will reduce the investment's market risk if the City's debt is redeemed and the Reserve Fund liquidated. No stated final investment maturity shall exceed the shorter of the final maturity of the borrowing or five years, Annual mark -to -market requirements or specific maturity and average life limitations within the borrowing's documentation will influence the attractiveness of market risk and influence maturity Extension. Liquidity — Debt Service Reserve Funds have no anticipated expenditures. The Funds are deposited to provide annual debt service payment protection to the City's debt holders. The funds are "returned" to the City at the final debt service payment. Market conditions and arbitrage regulation compliance determine the advantage of investment diversification and liquidity. Generally, if investment rates exceed the cost of borrowing, the City is best served by locking in investment maturities and reducing liquidity. If the borrowing cost cannot be exceeded, then concurrent market conditions will determine the attractiveness of locking in maturities or investing shorter and anticipating future increased yields. Marketability — Investments with less active and efficient secondary markets are acceptable for Debt Service Reserve Funds. Diversification --- Market conditions and the arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for Debt Service Reserve Funds. At no time shall the final debt service payment date of the bond issue be exceeded in an attempt to bolster yield. Yield -- Achieving a positive spread to the applicable borrowing cost is the desired objective, Debt Service Reserve Fund portfolio management shall operate within the limits of the Investment Policy's risk constraints. D. Natural Gas Account Suitability — Any investment eligible in the Investment Policy is suitable for the Natural Gas Account. Safety of Princi al -- All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, managing the weighted average days to maturity to less than 365 days and restricting the maximum allowable maturity to three years using the final stated maturity dates of each investment will minimize the price volatility of the portfolio. Liquidity —Natural Gas Account funds require moderate short-term liquidity. Short-term financial institution deposits, investment pools and money market mutual funds will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Marketability -- Investments with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. historical market "spreads" between the bid and offer prices of a particular security -type of less than a quarter of a percentage point will define an efficient secondary market. Diversification -- Investment maturities should be staggered throughout the anticipated expenditure schedule. Diversifying the appropriate maturity structure up to the three-year maximum will reduce interest rate risk. field — Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio will be the minimum yield objective. Xv. Internal Control The City, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the City's Investment Policy. XV1. Performance Standards The City intends to pursue an active versus a passive portfolio management philosophy. That is, investments may be sold or redeemed before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles that is consistent with risk limitations and cash flow needs of the City. "Weighted average yield to maturity" shall be the portfolio performance measurement standard. XVI1. Reporting Investment Officers shall submit a monthly report to City Council summarizing the results of the City's investment activity. This report shall include the status of the current portfolio position, performance, trading activity, interest earnings, and collateral. A quarterly report shall be submitted to the City Manager, as Chief Executive Officer, and the City Council detailing investment transactions and performance for the reporting period in accordance with State law. The report shall be jointly prepared and signed by all Investment Officers. It shall include a summary statement prepared for each fund 12 type and a detailed listing that states the beginning market value, ending market value and fully accrued interest for the period. In addition, Investment Officers shall report on adherence to the City's investment strategies as expressed in this Policy. In conjunction with the annual audit, the quarterly reports shall be formally reviewed by the City's independent auditor on an annual basis and the results of the review shall be reported to City Council. XVHL Investment Policy Adoption The City's Investment Policy is hereby adopted by resolution of the City Council. The City Council shall review and approve the Policy on an annual basis. This Policy serves to satisfy the statutory requirement to define and adopt a formal investment policy. 13 EXHIBITS Exhibit A CITY OF BBAUMONT Approved List Broker/Dealers Business/Organizations Broker/Deaters: FHN Financial Capital Markets Oppenheimer & Co. RBC Capital Markets Wells Fargo Securities Hancock Whitney PNC Investments LLC Hilltop Securities Certificate of Deposit Purchase Program: PFM Asset Management LLC Exhibit B City of Beamnont, Texas Certification By Business Organization - Sample This certification is executed on behalf of the City of Beaumont (the Investor) and (the Business Organization) pursuant to the Public Funds Investment Act, Chapter 2256, Texas Government Code (the Act) in connection with investment transactions conducted between the Investor and the Business Organization. The undersigned Qualified Representative of the Business Organization hereby certifies on behalf of the Business Organization that: 1. The undersigned is a Qualified Representative of the Business Organization offering to enter an investment transaction with the Investor as such terms are used in the Public Funds Investment Act, Chapter 2256, Texas Government Code and 2. The Qualified Representative of the Business Organization has received and reviewed the Investment Policy furnished by the Investor and 3. The Qualified Representative of the Business Organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Business Organization and the Investor that are not authorized by the Investor's Investment Policy, except to the extent that this authorization is dependent on an analysis of the makeup of the Investor's entire portfolio or requires and interpretation of subjective investment standards, or relates to investment transactions of the Investor that are not made through accounts or other contractual arrangements over which the business organization has accepted discretionary investment authority. (Firm) Qualified Representative of the Business Organization (Signature) (Name) (Title) (Date) 16 1� EAUMONT ■; I T E X A S TO: City Council FROM: Kenneth R Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution to participate in the Texas Class Texas Cooperative Liquid Assets Securities Systern Trust BACKGROUND The City is currently invested in certificates of deposit for most of our investments. Along with engaging Valley View Consultants to assist us with diversification of our investments and the possible purchase of securities for better return on our investment, we would like to put some money in a stable investment pool that earns market rates and provides for liquidity of funds in case we need additional monies quickly for a project or emergency. We would like to put fiends in the Texas Class Government Account, which is rated "AAAm" by S&P Global Ratings. This fiend seeks to provide participants with a competitive market yield while maintaining daily liquidity and a stable net asset vahie. Texas Class has been in business since 1996 and has a good reputation and local representatives that are knowledgeable about the market and.available to assist us with any questions we may have. 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 be and he is hereby authorized to execute an agreement with Texas Class, of Denver, Colorado, substantially in the form attached hereto as Exhibit "A," to allow funds to be deposited in the Texas Class Government Account to earn market rates and provide for liquidity of funds in case additional monies need to be disbursed quickly for projects and/or emergencies; and, 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, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute an agreement for investment management services with Texas Class, of Denver, Colorado, substantially in the form attached hereto as Exhibit "A," to allow funds to be deposited in a stable investment pool that earns market rates and provides for liquidity of funds in case additional monies need to be disbursed quickly for projects and/or emergencies. 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 12th day of December, 2022. -- Mayor Robin Mouton - yw© , . y:< � � IS Texas CL�$gTexas Cooperative Liquid Assets Securities System Trust Thank you for choosing Texas CLASS! We believe you have made a sound financial decision in choosing the Texas Cooperative Liquid Assets Securities System Trust (Texas CLASS). We look forward to being your trusted partner to your organization and its investment management goals and are excited to connect with you to make your Investment process a positive, easy experience. This packet contains all the materials necessary to set up your Texas CLASS account(s). If you have any questions about the registration process or about your Texas CLASS account(s), please do not hesitate to contact us. The Texas CLASS Client Service team can be reached any business day from 8:30 a.m. to 4:30 p.m. CT by phone at (800) 707-6242 or by email at clientservices@texasclass,coom, 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.com Page 1 Texas CL�$g Texas Cooperative Liquid Assets Securities System Trust To join Texas CLASS, please complete the following: 1) Read the Trust Agreement (a copy can be Pound on +hrtn,3u tauacrlacG.rnm), 2) Pass the resolution authorizing participation in Texas CLASS (page 3 and 4). 3) Adopt the Trust Agreement by signing Exhibit D (page 5). 4) Complete the Entity Registration (page 6). 5) Complete the Authorized Contacts Form (page 7/8). 6) Complete the Accounts to be Established Form; you may open as many accounts as you wish (page 9), 7) Keep the original forms for your records, and send the completed packet to the Texas CLASS Client Service team by fax (855) 848-9910 or by email riiantcar+�IracCa_ltaxerlass_rnm., Questions? Please contact us; we would love to hear from you! Texas CLASS Client Service Team T (800) 707-6242 HIPOtsarviroe; na Ppxasclassco 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.com Page 2 Texas CL�$g Texas Cooperative Liquid Assets Securities System Trust WHEREAS, the Public Funds Investment Act, Texas Government Code, Section 2256,001 et seq. (the Act) requires the governing body of each local government in this state to adopt Investment policies in accordance with the terms of the Act; and WHEREAS, pursuant to the requirements of the Act, the Board of Trustees (the Governing Body) of the city of Beaumont, Tx (the Local Government) has previously reviewed and adopted an Investment policy (the Policy) that provides in part that the funds of the local government will be invested in investments permitted by the Act in order to: (1) invest only in investments legally permitted under Texas law; (ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable net asset value; (lli) manage portfolio investments to ensure that cash will be avaiiable as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety, and liquidity; and WHEREAS, pursuant to the Policy and the Act, the Local Government has appointed Kenneth R Williams (the Investment Officer) to act as the investment officer of the Local Government; and WHEREAS, the Act provides that funds under the control of a Local Government may be invested through investment pools meeting the standards of Section 2256.016 of the Act; and WHEREAS, the Local Government has received and reviewed the Information Statement, dated April 2021 (the Information Statement), of Texas Cooperative Liquid Assets Securities System Trust (the Program), an investment pool administered by Public Trust Advisors, LLC that sets forth the information required by Section 2256.016(b) of the Act; and WHEREAS, the Local Government has determined that the Investments proposed to be acquired by the Program are of a type that are permitted by the Act and are consistent with the Policy; and WHEREAS, the Local Government has determined that an investment In the Program will assist the Local Government in achieving the goals set forth in the Policy and will tend to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and WHEREAS, the Local Government understands that the Program operates through the Ninth Amended and Restated Trust Agreement dated as of February 25, 2021 (the Trust Agreement), that provides the terms on which the Program will operate and the rights of the Participants in the Program and sets forth the responsibilities of Public Trust Advisors, LLC as the administrator of the Program (the Administrator) and of UMB Bank as custodian (the Custodian); 717 17th Street, Suite 1850 T (800) 707-6242 clientservlces@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.corn Page 3 luxas CL�$g Texas Cooperative Liquid Assets Securities System Trust NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE LOCAL GOVERNMENT: That the form, terms, and provisions of the Trust Agreement, a draft of which was presented and reviewed at this meeting, providing for the creation of the Program and for the rights of the Program Participants and the duties and responsibilities of the Administrator be and the same are hereby approved and adopted; and that the Investment Officer be and he or she is hereby authorized and directed to execute and deliver to the Administrator and the Custodian in the name and on behalf of the Local Government a participation certificate evidencing the agreement of the Local Government to be bound by the Trust Agreement substantially In the form of the Trust Agreement reviewed and approved at this meeting, together with such changes therein as may be approved by the said officer, such approval to be conclusively evidenced by the execution thereof; and be it further Resolved that the investment program established by the Trust Agreement is hereby found and determined to be consistent with the Policy and to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and be it further Resolved that the Governing Body hereby officially finds and determines that the facts and recitations contained in the preamble of this Resolution are true and correct; and be it further Resolved that the Governing Body hereby finds and declares that written notice of the date, hour, place, and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered, and formally acted upon all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act; and be it further Resolved that the officers of the Local Government, and each of them, shall be and each is expressly authorized, empowered, and directed from time -to -time to do and perform all acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Local Government all certificates, Instruments, and other papers, whether or not herein mentioned, as they may determine to be necessary or desirable in order to carry out the terms and provisions of this Resolution and of the Trust Agreement hereby authorized and approved, such determination to. be conclusively evidenced by the performance of such acts and things and the execution of any such certificate, financing statement, instrument, or other paper; and be it further Resolved that this Resolution shall take effect and be in full force upon and after its passage. Kenneth R Williams Authorized Signature Date Printed Name Authorized Signature Date Printed Name 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.com Page 4 Texas CL�$:5 Texas Cooperative Liquid Assets Securities System Trust 74 �'. ll • The undersigned City of Beaumont, Tx (the Local Government) does hereby request that It be admitted as a Participant pursuant to Section 2.3 of the Ninth Amended and Restated Trust Agreement (the Agreement) dated as of February 25, 2021, by and between the Participants, UMB Bank as Custodian, and Public Trust Advisors, L.LC. By executing this Participation Certificate, the undersigned agrees that, upon the execution hereof by the Program Administrator, it will become subject to the same obligations and shall have the same rights as If it had executed the Agreement. The undersigned hereby certifies that Kenneth R Williams (the Investment Officer) is the duly designated Representative of the undersigned as required by the Agreement. The undersigned hereby certifies that its governing body has taken all actions required by Section 2256.016 of the Public Funds Investment Act, Texas Government Code, for it to participate in the Trust created by the Agreement. of Beaumont, TX Entity Name City Manager Signature Date Title Accepted by Administrator (to be completed by Texas CLASS): Signature pate Title 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.com Page 5 Texas CL�$g Texas Cooperative Liquid Assets Securities System Trust Entity Information Entity Name (Participant) City of Beaumont, TX Entity Type: ❑ City/Town ❑ County ❑ other (Specify) Malling Address PO Box 3827 City Beaumont ZIP 77704 -. • ❑ School District Physical Address (If different than above) 801 Main Stroot, Suite 320 City Beaumont Tax ID 74-6000278 Zip 77701 County Jefferson County Jefferson Fiscal Year End Date (Month/Day) 09130 ❑ Special District The City of Beaumont, TX (the Local Government) hereby wishes to invest in the following portfolio: ❑ Texas CLASS 0 Texas CLASS Government ❑ Both Texas CLASS is hereby authorized to honor any telephoned, faxed, or electronic request believed to be authentic for withdrawal of funds. The withdrawal proceeds can be sent only to the bank(s) indicated below unless changed by written instructions. Each local government is responsible for notifying Texas CLASS of any changes to Its account. Wires will be distributed every hour with the final distribution ending at 4:00 p.m, CT; distribution times are subject to change as needed by the Texas CLASS Administrator. Banking Information Bank Name Allegiance Bank Bank Routing Number (ABA) 11302572 3 Account Title Concentration Bank Contact Josh Rodriguez ❑ Wire 0 ACH ❑ Both Additional Banking Information (Optional) Bank Name Account Title Bank Contact ❑ Wire ❑ ACH ❑ Both Account Number 1004207880 Contact's Phone Number 409-937-0400 Bank Routing Number (ABA) Account Number Contact's Phone Number 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass,com Denver, Colorado 80202. F (855) 848-9910 www.texasclass.com Page 6 Texas CL�$g Texas Cooperative Liquid Assets Securities System Trust Representative and Authorized Signer Kenneth R Williams Print First and Last Name Signature Required kenneth.williams@1beaumonttexas,gov Email Email Notifications (notice of report availability In the online portal) ❑ Monthly Statements ❑ Transaction Confirmations Additional Contact (Optional) Todd Simoneaux Print First and last Name *(Signature Required if Authorized Signer) todd,simoneaux@beaumonttexas.gov Email Permissions (check only one) [�] Authorized Signer to Move Funds* ❑ Read -Only Access Additional Contact (Optional) Cheryl Ray Print First and Last Name City Manager Title 409-880-3716 Phone Fax CFO Title 409-880-3116 Phone 409-880-3132 Fax Email Notifications (notice of report availability In the online portal) ❑ Monthly Statements Q Transaction Confirmations Controller Title 409-785-4779 *(Signature Required if Authorized Signer) Phone cheryl.ray@beaumonttexas.gov 409-880-3132 Email Fax Permissions (check only one) Authorized Signer to Move Funds* Read -Only Access 717 17th Street, Suite 1850 Denver, Colorado 80202 Email Notifications (notice of report availability In the online portal) Monthly Statements 0 Transaction Confirmations T (800) 707-6242 clientservices@texasclass,corn F (855) 848-9910 www,texasclass.com Page 7 Teexas CL�$g Texas Cooperative Liquid Assets Securities System Trust Additional Contact (Optional) Print First and Last Name Title Phone *(Signature Required If Authorized Signer) Fax Email Permissions (check only one) Email Notifications (notice of report availability In the online portal) ❑ Authorized Signer to Move Funds* ❑ Monthly Statements ❑ Read -Only Access ❑ Transaction Confirmations Additional Contact (Optional) Title Print First and Last Name Phone *(signature Required if Authorized Signer) Fax Email Permissions (check only one) Email Notifications (notice of report availability In the online portal) ❑ Authorized signer to Move Funds* ❑ Monthly Statements ❑ Read -Only Access ❑ Transaction Confirmations Additional Contact (Optional) Title Print First and Last Name *(Signature Required if Authorized Signer) Phone Fax Email Permissions (check only one) Email Notifications (notice of report availability in the online portal) ❑ Authorized Signer to Move Funds* ❑ Monthly Statements ❑ Read -Only Access ❑ Transaction Confirmations 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass,com Denver, Colorado 80202 F (855) 848-9910 www,texasclass,com Page 8 Texas CL�$g Texas Cooperative Liquid Assets Securities System Trust Entity Name: City of Beaumont, TX Texas CLASS Accounts Desired Subaccount Name(s)*: (To be completed by Participant) *Name must be limited to 40 characters. Texas CLASS Government Accounts Desired Subaccount Names *; (To be completed by Participant) Texas Class Primary Account Once your Texas CLASS account has been established, you will receive a confirmation email with your login credentials from no-reolv@texasclass.�. If you do not receive your login credentials within 48 business hours of submission, please first check your junk or spam folder before calling the Texas CLASS Client Service team, 717 17th Street, Suite 1850 T (800) 707-6242 clientservices@texasclass.com Denver, Colorado 80202 F (855) 848-9910 www.texasclass.com Page 9 r TEXAS TO: City Council FROM: Kenneth R, Williams, City Manager P1tEPARE,D BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute all documents necessary to enter into an Interlocal Agreement with Harris County for vehicle leasing. BACKGROUND Texas Local Goverwrient Code 791.001 allows for local governing entities to enter into interlocal agreements with each other in order to utilize each other's contracts for goods and services that have been competitively bid according to State guidelines and according to the terns and conditions of the contracts as executed, The term of the agreement between Harris County and the City, shall be twelve months from execution date and shall automatically renew each year unless terminated immediately by either party. Staff recommends approval. The agreement has been attached for review. FUNDING SOURCE Not Applicable, RECOMMENDATION Approval of the resolution, RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE 0 CITY OF BEAUMONT: THAT the City Manager or his designee be and they are hereby authorized to execute an lnterlocal Agreement between the City of Beaumont and the City of Harris County. The lnterlocal Agreement is substantially in the form attached hereto as Exhibit "A," and made a part hereof for all purposes. BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to executing this Agreement. 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 12th day of December, 2022. - Mayor Robin Mouton - INTERLOCAL AGREEMENT BETWEEN HARRIS COUNTY AND CITY OF BEAUMONT, TEXAS THE STATE OF TEXAS § COUNTY OF HARRIS § This Interlocal Agreement (the "Agreement") is made and entered by and between Harris County, Texas ("Harris County"), a body corporate and politic under the laws of the State of Texas, acting by and through its Commissioners Court and the City of Beaumont, Texas (the "City"), and pursuant to the Interlocal Cooperation Act, Tex. Gov't Code Ann. §§ 791.001— 791.030. Harris County and the City are referred to herein collectively as "Parties" and individually as a "Party." Recitals The City desires Harris County's assistance in purchasing certain materials, goods or services and Harris County desires the City's assistance in purchasing certain materials, goods or services. Harris County and the City currently purchase certain materials, goods, and services from various businesses ("Vendors") under executed Harris County and City of Beaumont, Texas contracts. Harris County agrees to allow the City to utilize its current contracts and the City agrees to allow Harris County to utilize its current contracts in order to increase the efficiency and effectiveness of government. Ternis I. Each Party agrees to supply the other Party with information concerning contracts each Party currently utilizes or will utilize in the future with various Vendors. This Agreement shall apply only to those materials, goods, or services for which the Party currently has, or will have in the future, under an executed contract with a Vendor. Nothing herein shall obligate a Party to purchase any materials, goods, or services from any particular Vendor. A Party shall not, under any circumstances, be obligated to procure any materials, goods, or services for the other Party nor to include the other Party in any procurement effort. Each Party reserves the right, in its sole discretion, to terminate any or all of its contracts with any Vendor(s) without the prior written notice or approval of the other Party. Neither Party owes the other Party any obligation whatsoever for the use of its contracts. Neither Party owes compensation to the other Party for the use of its current executed contracts. Neither Party shall enter into any contract allowing any third party including, but not limited to other municipalities, agencies, departments, counties, cooperative purchasing organizations or other governmental entities, the use of the other Party's contracts Page 1 of G EXHIBIT "A" through the utilization of this Agreement. II. Each Party requesting Vendor to supply materials, goods, or services (the "Requesting Party ") under an executed contract from the other Party ("Contracting Party") will enter into a contract with the Vendor. Each Vendor, in its own discretion, must agree to allow the Requesting Party to purchase materials, goods, or services under the contract between the Vendor and the Contracting Party. The following language shall be included in each contract the Requesting Party enters into with a Vendor. The materials, goods, or services subject to this contract are being procured using an executed contract between Vendor and (name of Contracting NMI, subject to the following. Vendor has the right to refuse the name of Requesting Par ] request to use the name of Contracting Party] executed contract; If Vendor agrees to contract with name of Requesting Part ] using its executed contract with [name of Contracting Party], then all materials, goods, or services purchased under the Agreement between [name of Requesting Party] and Vendor shall be in accordance with the current terms and conditions of the [name of Contracting Party] executed contract; [name of Requesting Party] shall have no authority whatsoever to change any terms, conditions, or pricing in any [name of Contracting Party] contract; In the event that the contract was procured using a Request For Proposals or any other procurement process that allows for negotiation, the [name of Requesting Parry] may negotiate pricing and terms that would apply to [name of Reguestin�-ty] only; Vendor shall bill [name of Requesting_ Party] directly for any and all materials, goods, or services purchased by [name of Requesting Party] under the [name of Contracting Party] executed contract; Vendor shall look only to [dame of Requesting Party] for any and all compensation owed for purchases made by [name of Requesting_Pat_ty] utilizing the executed n4me of Contracting Party] contract; and Vendor shall settle any and all disputes with [name of RequestingPartyl concerning any purchases made by name of Requesting Par ]. name of Contracting Par! ] shall not be a party to any dispute between Vendor and [name of Requesting Party], nor be responsible in any way for the acts or omissions of [name of Requesting Party_] Each Party understands that all the materials, goods, or services procured using the other Party's executed contracts shall be procured by the Party in accordance with all applicable federal, state, Page 2 of 6 and local laws, rules, regulations, or ordinances, including but not limited to the County Purchasing Act Tex. Loc. Gov't Code §§ 262.021, ef. seq as amended and the Purchasing and Contracting Authority of Municipalities Tex. Loc. Gov't Code Ann. §§ 252.001, et. seq., as amended. IV. Each Party shall be, responsible to a Vendor only for the materials, goods, or services ordered and received by the Party and shall not, by the execution of this Agreement, assume any liability or waive any rights under the applicable contract or as provided by law. Any and all disputes arising between Vendor and the Requesting Party shall be handled between the Requesting Party and Vendor. Vendors shall bill the Requesting Party directly for all materials, goods, or services ordered by it. The Requesting Party understands and agrees it shall mare all payments to Vendors in accordance with all applicable laws including, but not limited to Tex. Gov't Code Ann. §§ 101.021, et, seq., as amended. V. EACH PARTY SHALL BE RESPONSIBLE FOR ALL CLAIMS AND LIABILITY DUE TO THE ACTIVITIES OF THE PARTY'S EMPLOYEES, OFFICIALS, AGENTS OR SUBCONTRACTORS ARISING OUT OF OR UNDER THIS AGREEMENT AND WHICH RESULT FROM ANY ACT, ERROR, OR OMISSION; INTENTIONAL TORT; INTELLECTUAL PROPERTY INFRINGEMENT; OR FAILURE TO PAY A VENDOR; COMMITTED BY THE PARTY OR ITS EMPLOYEES, OFFICIALS, AGENTS, CONSULTANT UNDER CONTRACT, OR ANOTHER ENTITY OVER WHICH IT EXERCISES CONTROL. VI. This Agreement is subject to the federal, state, and local laws, orders, rules, ordinances, and regulations relating to the Agreement and funded by state or federal funds, or of applicable conditions of participation in Medicaid or Medicare program(s). Each Party shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations concerning the performance of this Agreement. This Agreement is governed by the laws of the State of Texas. The forum for any action under or related to the Agreement is exclusively in a state or federal court of competent jurisdiction in Texas. The exclusive venue for any action under or related to the Agreement is in a state or federal court of competent jurisdiction in Houston, Harris County, Texas. Page 3 of 6 Vil. This instrument contains the entire Agreement between the Parties relating to the rights herein granted and obligations herein assumed. Any oral or written representations or modifications concerning this instrument shall not be effective excepting a subsequent written modification signed by both Parties. However, any alterations, additions, or deletions to the terms of this Agreement which are required by changes in federal or state law or regulations are automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. Vill. The term of this Agreement shall commence upon approval of all Parties, shall run for the next consecutive twelve (12) months, and shall automatically renew each year unless earlier terminated. Each Party shall have the right to immediately terminate this Agreement upon a material breach by the other Party, which shall include but not be limited to noncompliance with Article II. Either Parry may cancel this Agreement at any time upon thirty (30) days written notice to the other Party to this Agreement. The obligations of the Requesting Party to pay Vendor for all materials, goods, or services if any, purchased pursuant to this Agreement prior to such notice shall survive such cancellations, as well as any other obligation incurred under the Contracting Party's contracts, until performed or discharged by the Requesting Party. IX. Any notice required to be given under the provisions of this Agreement shall be in writing and shall be duly served when it shall have been personally delivered to the address below, or deposited, enclosed in a wrapper with the proper postage prepaid thereon, and duly registered or certified, return receipt requested, in a United States Post Office, addressed to Harris County or the City of Beaumont at the following addresses. If mailed, any notice or communication 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 City: City of Beaumont 801 Main Street, Suite 315 Beaumont, TX 77704 Attn: Terry Welch To Harris County: Harris County Purchasing Agent I I I I Fannin, 121h floor Houston, Texas 77002 Attn: Margaret Obot Page 4 of 6 Either Party may designate a different address by giving the other Party ten (10) days written notice. X. If any provision or part of the Agreement or its application to any person, entity, or circumstance is ever held by any court of competent jurisdiction to be invalid for any reason, the remainder of the Agreement and the application of such provision or part of the Agreement to other persons, entities, or circumstances are not affected. Any provision of this Agreement that by its plain meaning is intended to survive the expiration or earlier termination of this Agreement, including without limitation the indemnification provisions herein, shall survive such expiration or earlier termination. If an ambiguity exists as to survival of any provision, the provision shall be deemed to survive. ►W EXECUTION. Multiple Counterparts: The Agreement may be executed in several counterparts. Each counterpart is deemed an original. All counterparts together constitute one and the same instrument. Each Party warrants that the undersigned is a duly authorized representative with the power to execute the Agreement. CITY OF BEAUMONT, TEXAS HARRIS COUNTY By: By: LINA HIDALGO COUNTY JUDGE APPROVED AS TO FORM: CHRISTMN D. MENEFEE COUNTY ATTORNEY T. Scott Petty Assistant County Attorney C.A. File 21 GEN4178 Page 5of6 ORDER OF COMMISSIONERS COURT Authorizing Execution of an Interlocal Agreement The Commissioners Court of Harris County, Texas, met in regular session at its regular term at the Harris County Administration Building in the City of Houston, Texas, on , with all members present except A quorum was present. Among other business, the following was transacted: ORDER AUTHORIZING EXECUTION OF AN INTERLOCAL AGREEMENT BETWEEN HARRIS COUNTY AND CITY OF BEAUMONT, TEXAS Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: Yes No Abstain Judge Lina Hidalgo ❑ ❑ ❑ Comm. Rodney Ellis 11 ❑ ❑ Comm. Adrian Garcia ❑ ❑ ❑ Comm. Tom S. Ramsey, P.E. ❑ ❑ ❑ Comm. R. Jack Cagle ❑ ❑ ❑ The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: IT IS ORDERED that the Harris County Judge is authorized to execute, for and on behalf of Harris County, the Interlocal Agreement between the City of Beaumont, Texas and Harris County, pursuant to Tex. Gov't Code Ann. §§ 791.001 — 791.030; to allow Harris County to utilize the current contracts of the City of Beaumont, Texas and to allow the City of Beaumont, Texas to utilize the current contracts of Harris County in order to increase the efficiency and effectiveness of government. The Interlocal Agreement is incorporated by reference for all purposes as though fully set out in this Order word for word. All Harris County officials and employees are authorized to do any and all things necessary or convenient to accomplish the purpose of this Order. Page 6 of 6 TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Agreement with Enterprise Refined Products, BACKGROUND Industrial District Agreements enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has an agreement with Enterprise that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1" of each year. A copy of the agreement is attached for your review. FUNDING SOURCE Prior year revenue was $621,629, current year revenue is estimated at $642,543. RECOMMENDATION Approval of the resolution. RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Agreement with Enterprise Refined Products Company, LLC, to enable the City to collect payments in lieu of taxes from industries located outside the city limits, but within the extra territorial jurisdiction of the City. The Agreement is substantially in the form attached hereto as Exhibit "A° and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 561. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2022. - Mayor Robin Mouton - THE STATE OF TEXAS COUNTY OIL JEF ERS ON § AGREEMENT This Agreement is invade under the authority of Section 42,044 of the Texas Local Goveynnnent Code. The parties to the Agreement are The City of Bearmnont, a municipal corporation and a home -rule city located in Jefferson County, 'Texas, hereinafter called "CITY," and Enterprise Refined Pyoducts Company, LLC, the surviving entity after the merger with Enterprise Beaunnont Marine West L.P. effective May 31, 2017 together with its direct and hidizeet subsidiaries, Hereinafter called "COMPANY." PREAMBLE WITEREAS Company owns land and improvements which are a part of the manufacturirng, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District, WHEREAS the Company recognizes (lie benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount conunnensurate with the burdens placed upon the City and benefits derived by the Company by reason of behig located innnnedlately adjacent to said City, WHEREAS the Cornnpany and the City desire to base the industrial district payment oil assessed, value to ensure equity among the companies, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows., 1 kEXl-i]BIT "A" ARTICLE 1 COMPANY'S OBLIGATION Annual. Payment on Company's Property 1. Commeueing witli the calendar year 2023 and each calendar year thereafter for the duration of this Agreement, the Company will pay the City a certain sum which will be computed on the Assessed Value of the Company's facilities and. property, real, personal, and nixed located on Company's land covered by this Agrewncnt. (Herein "the Company Properties"), 2. By the term "Assessed Value" is meant tine 100% valuation of the Company Properties, as determined by the Jefferson Central Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2023 shall be due and payable on or before February 1, 2023, and calculated as follows: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2023 Payment 2 Each October thereafter, the Chief Einaticial Officer shall obtain the most recent Assessed Valises as set by the Jefferson Central Appraisal District for the Company's Properties, real, personal and mixed, having, taxable situs within the areas described in this Agreement; for example, in October 2022, the 2022 Assessed Values shall be used for filie Febrtiaty 1, 2023, payment, This Assessed Value shall be used hi the calculation of the payment. If the Assessed Values for the period required are in question and/or under litigation with the Jefferson Central Appraisal. District, payment shall be computed on the most recent certified values from the Jefferson Central Appraisal District, The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the Assessed Value of the Company's Properties has been determined, the payments due hereunder shall be calculated hi accordance with the following schedule: provided that the payments due heretuider are subject to reduction if the City's tax rate is reduced during the term of this Agreement or if a temporary exemption is granted for any part of the Company Properties pursuatit to 'Texas Tax Code Section 11.35; The 2023-2025 payinent shall be 80% of assumed City taxes due, except that the amount inay not be suture that; 10% more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that the antouttt may not be more than 7% more or less than the prior year payment. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year, Company shall pay to City the amount billed on or before lwebrttary 1 each year. Upott receiving; the final payment, the Chief l+inancial Officer shall issue ati official receipt of said City acknowledging full, timely, fatal and complete payment due by said Compa 3 for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the sank penalties, interest, attorney's fees and costs of collection shall be recoverable by the City as would be collectible in. the case of delinquent ad valorem taxes. Further, if paynien.t is not timely made, all payments which otherwise would have been Maid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of tl.e parties hereto that this instrument shall govern and affect the Company Properties (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson Central Appraisal District, which are within the extra -territorial jurisdiction of the City of Beaumont. Should the Company file reports as niay be. required by the chief appraiser of the Jefferson Central Appraisal District under Section 22,04 of the Texas Property Tax. Code relating to (i) third parties` property that is in the Affected Area, consent is hereby given for the City to obtain a copy front the Chief Appraiser. If the City is unable to obtain the report or the report does not include fire names and addresses of persons or entities That store tangible property in the Affected Area, Company agrees to provide the report within fifteen (IS) days upon written request. ARTICLE III SALE BY COMPANY Company shall notify City of ally sale of any or all of Company's facilities to any person or entity, It is the intent of the parties thatno sale of ally of Company's facilities will affect the amount to be paid to the City as provided trader this Agreement, Accordingly, and as to payments due tinder this Agreement no such sale shall reduce the amount dire the City wider this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a contimation of like payments to the City. ARTICLE IV CITY'S OBLIGATIONS L City agrees that it will not arurex, attempt to aimex or in anyway cause or permit to be annexed any portion of lands or facilities or Company Properties covered by this Agreement for the period of the agreement except as Follows: (a) If the City determines that annexation of all or any ,part of the Company Properties covered by this Agreement is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will gratify Company in accordance with State law of the proposed annexation; provided, however, such annexation can only be initiated after expiration of dais Agreement. Ili the event of such almexatiozr, Company will not be required to make further payment tinder this Agreement for ally calendar year commencing after such annexation with respect to the property so annexed but shall nevertheless be obligated to slake full payment for the year driving which such amrexation become effective if the annexation becomes effective after January 1st of said year, (b) In the event any rxrm3icipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to iticlude within its limits any land, which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable *under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed vahies, 2, The City f irther agrees that. during the terns of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and siibdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof, 3. It is understood and agreed that during the tern* of this Agreement or any renewals thereof, the City shall not be required to finrnish any municipal services to Conapat1y`s property located Nvithin the City of Beaumont Industrial District, provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs, ARTICLE V TERMINATION OIL BREACH It is agreed by the parties to this Agreement that only Rill, complete, and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment. or enforcement of any ordiiiance or charter aniendnient in violation of, or in conflict with, the ternns of this Agreement and shall be entitled to obtain such 6 oilier equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement a«d such other equitable relief necessary to enforce its rights. ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent" and "affiliates" and to any properties owned or acquired by said parent and affiliates within the extraterritorial jurisdiction, and where reference is niade herein to land, property and improvements owned by Company that shall also include land, property and improvements owned by its parent and or affiliates, The word "affiliates" as used Herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at (lie time in question, owns or has the power to exercise the control over E'ifty percent (541/1o) or more of the stock leaving the right to vote for the election of directors. The word "parent' as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock leaving the right to vote for the election of directors of Company, ARTICLE VIl ASSIGNMENT Company may assign this Agreement to any entity succeeding to the ownership of its Company Properties covered by this Agreement after providing written notice to the City. It is specifically agreed by the City that the covenants, promises, and guarantees of the City made 7 to Compaixy ill this agreement extend to its respective successors and assigns and to all of the manufacturing facilities/lands included within the area described throughout the entire term of this Agreement notwithstanding the fact that the legal title to srich lairds or properties may pass, in whole or in part, to successors or assigns during the term of this agreement. ARTICLE V1I1 TE1W OF AGREEMENT The tenp of this Agreement shall b.e for Severe (7) years, coirin-micing January 1, 2023, and ending on December 31, 2029, ARTICLE IX NOTICES Any notice provided for in this Agreement, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows; TO CITY City Manager City ofBeaunaant 801 Main P. 0, Box 3827 Beaumont, 'Texas 77704 With copy to: Chief Financial Officer City of Beammont PO Box 3827 Beatimont, TX 77704 TO COMPANY Enterprise Refined Products Company, LLC Attn: Crirt Tate P.O. Box 4018 Houston, Texas 77210-4018 With a cope to: General Counsel F�;terprise Refined Products Company LLC PO Box 4018 Houston, TX 77210-4018 ARTICLE X CONTINUATION If this Agreement shall be held itivalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent acid separable provision not to be affected by sucli adjudication. 9 IN WITNESS THERE40 , this Agreement, consisting of 10 pages is executed in duplicate c01111terparts as of this day of ATTEST; Tina Bioussaxd City Cleric CITY OF BEAUrMONT, TEXAS I: Kemieth R. Williams Cite Manager Enterprise Refined Products Company, LLC 13y. Pemiy It, Itlouy Senior Vice president, Tax 10 P TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Agreement with Arkema. BACKGROUND Industrial District Agreements enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has an agreement with Arkema that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February t" of each year. A copy of the agreement is attached for your review. FUNDING SOURCE Prior year revenue was $600,852, current year revenue is estimated at $660,937. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Agreement with Arkema Inc., to enable the City to collect payments in lieu of taxes from industries located outside the city limits, but within the extra territorial jurisdiction of the City. The Agreement is substantially in the form attached hereto as Exhibits "A" and "B," 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 12th day of December, 2022. Mayor Robin Mouton - THE STATE OF TEXAS COUNTY OF JEFFERSON § A I EEMENT This Agreement is made tinder the authority of Section 42.044 of the Texas Local Government Code. `1'he, parties to the Agreement are The City of Bcaunnont, a nnunicipal corporation and a lnotue�itiile city located in Jefferson County, Texas, hereinafter called "CITY," and AAkcnm Inc,, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Companny owns land and innprovements which are a part of the mantifacturing, industrial, and refining facilities of said Company. The City has established an industrial district connprising a certain pant of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. VA—MRRAS, the, Company recognizes the benefits of this Agreement and atn obligation to contribute to the Revenue needs of said City in all amount coniinensurate with the burdens placed tipon the City and benefits derived by the Company by reason of being located iilnniedi.ately adjacent to said City, WHEREAS, the Company and the City desire to base the industrial district payment on Assessed Value (as defined in Article 1, Section 2 hereof) to ensure equity among the companies located within the City of Beatunont Industrial District, tin view of the above and foregoing reasons, and in consideration of the mutual agreonneints herein contained, Company and City hereby agree as follows. 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Paymeiht on Company's Property 1, Commoncing with the calendar year 2023 and each, calendar year thereafter for the duration of this Agreement, the Company will pay theCity a certain sum wlhiclh will be computed on the .Assessed Value of fire Company's facilities and property, real, personal, and mixed located having taxable sites within the City of Beathauont Industrial District. (Herein "the Properties") 2. By the term "Assessed Value" is meant the 100% valuation oftlhe Company Properties, as determined by the refferson Central Appraisal District for the previous tax year. 3. The tern- "assumed City faxes due" shall be. caleulated by the following formula; Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate,- Assumed City Tax. Due d. Paymont Procedures The procedures for determining and malting such payments shall be as follows; (a) The payment for 2023 shall be due and payable on or before February 1, 2023, and calculated as follows; Assunhed City Taxes Due; Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due = 2023 Payment KA Each. October thereafter, the Chief Financial Officer shall obtain the most recent Assessed Values as set by the Jefferson Central Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the City of Beatunont -Industrial District; for example, in October, 2022, the 2022 Assessed Values shall be used for the February 1, 2023 payment. "finis .Assessed Valuue shall be used in the calculation of the payment. If the Assessed Values for the period required are in question and/or under litigation with the Jefferson Central Appraisal District, payment shall be computed on the most recent certified values fronn the Jefferson Central Appraisal District, The Company shall notify the City following resoluution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the Assessed Value of the Company's properties lnas been determined, the payments due hereunder shall be calculated in accordance with the following sehedtule; The 2023-2025 payment shall be 80% of assumed City taxes due, except that the amount may not be more than 10% more or less than the prior year payment. The 2026.2029 payment shall be 75% of assumed City taxes due, except that the amount may not be nnore than 7% more or less than the, prior year paynnent. (c) City hereby agrees to bill Company for its paynnents due hereunder on or before January 1 each year. Company shall pay to City the anmu1lt billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging Rill, timely, final, and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the caso of delinquent 3 ad valorein- taxes, Further, if payment is not finely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event, ARTICLE Xl PROPERTY COVERED BY AGREEMENT This instroment will reflect the intention of the parties hereto that this itrsttoment shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson Central Appraisal District, which are within the extra -territorial jurisdictioan of the City of Beaunnont. On or before May I of each year during the term of this Agreement, the Property Owner shall fivnish to the City a written report listing the names and addresses of all personas and entities who store any tangible personal property on the land in the Affected Area with the Property Owixer and are in the possession or t1nder the ninanagernent of Property Owner on 3aiwary l of such year, and further giving a description of such tangible personal property. The Property Owner sliall file all reports required by the chief appraiser of the Jefferson Central Appraisal District tinder Sectioja 22,04 of the Texas Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the Property Owner's possession or tinder the Property Owner's management by bailment, lease, consignunient, or other arrangentent, and (11) storage space leased or otherwise provided to third parties for storage of personal property in the Affected Area, .ART] CLE III SALE BY COMPANY Company shall notify City of any sale of arty ar all of C01111any's facilities to at2y persona or entity, It is the intent of the parties that no sale of any of Company's facilities will affect tite 4 amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this Agreement no such sale shall reduce the amount due the City under this Agreement until the purchaser of such facility has entered into a contract in lien of taxes with the City that provides for a continuation of like payments to the City, ARTICLE 1V CITY'S OBLIGATIONS 1, City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that anitioxation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. Ll the event of such annexation, Company will not be required to make farther payment under this Agreement for any calendar year commencing after such atmoxation with respect to the property so annexed but shall nevertheless be obligated to make ftill payment for the year during which such aruiexation become effective if the annexation becomes effective after January 1 st of said year. (b) hi the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject ratter of this Agreement, City shall, with, the appro),al of Company, seek immediate legal relief against any such attempted annexation or incorporation and sball tape such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies within the City of Beaumont Industrial District with the Company's portion allocated on the basis of Assessed Values, 2, The City fLirther agrees that during the term of this Agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaun-tont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of laird, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof, 3. It is understood and agreed that during the teem of this Agreement or any renewals thereof, the City shall not be required to fiirnish any municipal services to Company's property located within the City of Beaumont Industrial District, provided, however, City agrees to filrnish fire protection to Company should such protections be requested by Company in the event an unusual emergency situation occurs, ARTICLE V TERMINATION OF BREACH It is agreed by the parties to this Agreement that only Rill, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforcc its rights, It is further agreed that should this Agreement be breached by Company, the City shall 6 be entltled, in addition to auy action at law for damages, to obtain specific perforn-iaitcc of this Agreement and such other equitable relief necessary to enforce its rights, ARTICLEVI AFFILIATE, S The benefits accruing to Arkenia Inc. under this Agreement shall also extend to Atkema Irtc,'s "parent", subsidiaries, "affiliates" and to any properties owned or acquired by said parent, subsidiaries, and affiliates within the extraterritorial jurisdiction, and where reference is made liercin to laud, property and improvements owned by Arkema Inc, that shall also inclode land, property and improvements owned by its parent, subsidiaries, and/or affiliates, The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in- question, owns or has the power to exercise the control over fifty percent (SO%) or inore of the stock having the right to vote for the election of directors, The word "parent" as used herein shall meal, that company which directly at the time in question owns or has the powor to exercise control over fifty percent (5ON of lie stock having the right to vote for the election of directors of Company, ARTICLE VII ASSIGNMENT Con1pany may assign this Agreement to ally entity succeeding to the ownership of its properties covered by this Agreement after providing written notice to the City. It is specifically agreed by the City that the covenants, promises, and guarantees of the City made to Company in this Agreement extend to its respective successors and assigns and to all of the itaanufaeturing facilities/lauds included within the area described throughout the entire term. of this Agreement notwithstanding the fact that the legal title to such lands or properties may pass, in whole or in part, to successors or assigns during the term of this agreement. ARTICLE VIII TERM OF AGREEMENT The term of this Agreement shall be for Seven (7) year's, commencing Samiary 1, 2023, and ending on December 31, 2029. ARTICLE JX NOTICES Any notice provided for in this Agreement, or which may otherwise be YegWred by lave shall be given in wfiting to the parties Hereto by Certified Mail addressed as follows, TO CITY TO COMPANY City Manager Aikenra Inc, City of Beaunroat plant Manager 801 Main P.O. Box 1427 P. O. Box 3827 Beaumont, Texas 77704 Beaumont, Texas 77704 And Katie Rasmussen Tax Director Arkema Inc, 900 First Avenue King of Prussia, PA.19406 Phone: (61.0) 205-7656 Email: katie.rasmussen a arkerna.eoin With copy to; Chief Financial Officer Jeffi-ey Moore, principal City of Beaumont Ryan, LLC P.O. Box 3827 100 Congress Ave, Ste 1900 Beaumont, Texas 77704 Houston, Texas 79701 ARTICL8 X CON`ITN U A.TION If this Agreement snail be field invalid by any court of competent jurisdiction, such holding shall not effect the right of City to any payment made or accruing to City here-ander prior to such adjudication, and this provision is Intended to be ail independent and separable pyovision wt to be affected by such adjtidicaiionk 0 IN WITNESS THEREOF, this Agreen-iont, consisting of 10 pages is executed in duplicate counterparts as of this day of CITY OF BEAUMONT, TEXAS I: ATTEST; Thia Broussard City Clerk Kenneth R, Williams City Manager Arkeina Isar. By; ATTEST: Katie Rasmussen Assistant Treasurer 10 ADDENDUM FOR ABATEMENT AND ADDITIONAL PAYMENTS 1, The abatement and payment provisions below shall apply if Arkema starts construction of an expansion project known as Project Strawberry. The payment set out hereunder shall not be dric and payable by Arke►-na in the event Project Strawberry does not go forward or does not reach operational, status. (a) Project,Strawberry expansion investment estimated at a vahie of $115 million. All new. -construction and .equipment related to this project will receive a six (6) year flax abatement at one hundred percent (100%) for tax years 2026-2027; ninety percent (90%) forJax..years.202$-2029; and seventy percent (70%) for tax years 2030-2031. 'For, conAder;ation:of-the-abatement, the City would receive an additional payment of $75,000 in years.2024 and 2025. These payments would be above and beyond the payment made -for-existing facilities. It is specifically understood and agreed by Arkenia, if at any time during the effective .dates .of.aw.agreement relating to abatement, Arkcma (owner) files or prosecutes an action to,contestithef appraised value of any property of the owner or owner's affiliates within the City's ET.I.for unequal appraisal or revision thereof pursuant to Sec, 42.26, Texas'Tax:C6dc,-any and all abatements granted by City to Owner or its affiliates shall become'null and void and cancelled. Any approved abatements that go beyond calendar year .2029 shall .be extended or included in the subsequent Industrial District Agreement. Exhibit "B" k TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Agreement with Martin LP. BACKGROUND Industrial District Agreements enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city. The City currently has an agreement with Martin that will expire December 31, 2022. The new agreement will be effective January 1, 2023. The in -lien of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be dire to the City by February 15t of each year. A copy of the agreement is attached for your review. FUNDING SOURCE Prior year revenue was $270,225, current year revenue is estimated at $296,032. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Agreement with Martin Operating Partnership L.P., to enable the City to collect payments in lieu of taxes from industries located outside the city limits, but within the extra territorial jurisdiction of the City. The Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2022. - Mayor Robin Mouton - THE STATE OF TEXAS COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and Martin Operating Partnership L.P., its parent, subsidiaries, and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2023 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company properties, as determined by the Jefferson Central Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4, Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2023 shall be due and payable on or before February 1, 2023, and calculated as follows: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate � Assumed City Tax Due Year 1 75% of Assumed City Taxes Due = 2023 Payment RAI Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson Central Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this Agreement; for example, in October, 2022, the 2022 assessed values shall be used for the February 1, 2023 payment. This assessed value shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or tinder litigation with the Jefferson Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule; The 2023-2025 payment shall be 80% of assumed City taxes due, except that the amount may not be more than 10% more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that the arnount may not be more than 7% more or less than the prior year payment. (c) City hereby agrees to bill Company for its payments due hereunder on or before January I each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent 9 ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson Central Appraisal District, which are within the extra -territorial jurisdiction of the City of Beaumont, On or before May I of each year during the term of this Agreement, the Property Owner shall furnish to the City a written report listing the names and addresses of all persons and entities who store any tangible personal property on the land in the Affected Area with the Property Owner and are in the possession or under the management of Property Owner on January 1 of such year, and further giving a description of such tangible personal property. The Property Owner shall file all reports required by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas Property Tax Code relating to (i) third parties' property that is in the Affected Area and in the Property Owner's possession or render the Property Owner's management by bailment, lease, consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third parties for storage of personal property in the Affected Area. ARTICLE III SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due under this contract no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in anyway cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promdte and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed but shall nevertheless be obligated to make full payment for the year during which such annexation become effective if the annexation becomes effective after January I st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this Agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall 6 be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent" "affiliates" and to any properties owned or acquired by said parent and affiliates within the extraterritorial jurisdiction, and where reference is made herein to land, property and improvements owned by Company that shall also include land, property and improvements owned by its parent and or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (501/1o) or more of the stock having the right to vote for the election of directors. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII ASSIGNMENT Company may assign this Agreement to any entity succeeding to the ownership of its properties covered by this Agreement after providing written notice to the City, It is specifically agreed by the City that the covenants, promises, and guarantees of the City made to Company in this agreement extend to its respective successors and assigns and to all of the manufacturing facilities/lands included within the area described throughout the entire terin of 7 this Agreement notwithstanding the fact that the legal title to such lands or properties may pass, in whole or in part, to successors or assigns during the term of this agreement. ARTICLE VIII TERM OF AGREEMENT The term of this Agreement shall be for Seven (7) years, commencing January 1, 2023, and ending on December 31, 2029. ARTICLE IX NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY City Manager City of Beaumont 801 Main P. O. Box 3827 Beaumont, Texas 77704 With copy to: Chief Financial Officer City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 TO COMPANY Martin Operating Partnership L.P. Plant Manager P.O. Box 191 Kilgore, Texas 75663 ARTICLE X CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment trade or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication, IN WITNESS THEREOF, this Agreement, consisting of 10 pages is executed in duplicate counterparts as of this day of , 2022. CITY OF BEAUMONT, TEXAS Kenneth R. Williams City Manager ATTEST: Tina Broussard City Clerk Martin Operating Partnership L.P. By: Martin Operating GP LLC, its general partner By: Martin Midstream Partners L.P., its sole member By: Martin Midstream GP LLC, its general partner By: /C Randy T scher, Exec. Vice President ATTEST: 10 F:1 AAW TEXAS TO: City Council FROM: Keruueth R Willian-ts, City Manager PREPARED BY: Todd Sirnoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Agreement with Dow Chemical, BACKGROUND Industrial District Agreements enable the City to collect payments in lieu of taxes from industries located outside the city limits but within the extra territorial jurisdiction of the city, The City currently has an agreement with Dow that will expire December 31, 2022. The new agreement will be effective Januaiy 1, 2023. The in -lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2023 through 2025 and 75% of property taxes due to the City in 2026 through 2029. The 2023 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2022, or $0.695 per $100 of assessed valuation. Payments will be due to the City by February 1" of each year. A copy of the agreement is attached for your review. FUNDING SOURCE Prior year revenue was $228,372, current year revenue is estimated at $251,209. RECOMMENDATION Approval of the resolution, RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Agreement with The Dow Chemical Company, to enable the City to collect payments in lieu of taxes from industries located outside the city limits, but within the extra territorial jurisdiction of the City. The Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, PASSE❑ BY THE CITY COUNCIL of the City of Beaumont this the 12th day of December, 2022. Mayor Robin Mouton - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code, The parties to the Agreement are The City of Beaumont, a municipal corporation and a home -rule city located in Jefferson County, Texas, hereinafter called "CITY," and The Dow Chemical Company, its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company, The City has established an industrial district comprising a certain part of the extra -territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows; 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1, Commencing with the calendar year 2023 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities and property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 1 OD% valuation of the Company properties, as determined by the Jefferson Central Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula; Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2023 shall be due and payable on or before February 1, 2023, and calculated as follows: Assumed City Taxes Due: Assessed Value / 100 X Current City Tax Rate = Assumed City Tax Due Year 1 80% of Assumed City Taxes Due — 2023 Payment 2 Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson Central Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this Agreement; for example, in October, 2022, the 2022 assessed values shall be used for the February 1, 2023 payment. This assessed value shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson Central Appraisal District, payment shall be computed on the most recent certified values from the Jefferson Central Appraisal District, The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. (b) After the assessed value of the Company's properties has been determined, the payments due hereunder shall be calculated in accordance with the following schedule: The 2023-2025 payment shall be 80% of assumed City taxes due, except that the amount may not be more than 10% more or less than the prior year payment. The 2026-2029 payment shall be 75% of assumed City taxes due, except that the amount may not be more than 7% more or less than the prior year payment. (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent 3 ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within bD days of any such event. ARTICLE 11 PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson Central Appraisal District, which are within the extra -territorial jurisdiction of the City of Beaumont, On or before May 1 of each year during the tern of this Agreement, the Property Owner shall fiirnish to the City a written report listing the names and addresses of all persons and entities who store any tangible personal property on the land in the Affected Area with the Property Owner and are in the possession or tinder the management of Property Owner on January 1 of such year, and further giving a description of such tangible personal property. The Property Owner shall file all reports required by the chief appraiser of the Jefferson Central Appraisal District under Section 22.04 of the Texas Property Tax Code relating to (i) third parties` property that is in the Affected Area and in the Property Owner's possession or under the Property Owner's management by bailment, lease, consignment, or other arrangement, and (ii) storage space leased or otherwise provided to third parties for storage of personal property in the Affected Area. ARTICLE III SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the 4 amount to be paid to the City as provided under this Agreement. Accordingly and as to payments due tinder this contract no such safe shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of like payments to the City. ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agicemcnt belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed but shall nevertheless be obligated to make full payment for the year during which such annexation become effective if the annexation becomes effective after January 1st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or companies with the Company's portion allocated on the basis of assessed values. 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the tern of this Agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V TERMINATION OF BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terns of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall s be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement skull also extend to Company's "parent" "affiliates" and to any properties owned or acquired by said parent and affiliates within the extraterritorial jurisdiction, and where reference is made herein to land, property and improvements owned by Company that shall also include land, property and improvements owned by its parent and or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (506/6) or more of the stock having the right to vote for the election of directors, The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII ASSIGNMENT Company may assign this Agreement to any entity succeeding to the ownership of its properties covered by this Agreement after providing written notice to the City. It is specifically agreed by the City that the covenants, promises, and guarantees of the City made to Company in this agreement extend to its respective successors and assigns and to all of the. manufacturing facilities/lands included within the area described throughout the entire term of this Agreement notwithstanding the fact that the legal title to such lands or properties may pass, in whole or in part, to successors or assigns during the term of this agreement. ARTICLE VIII TERM OF AGREEMENT The term of this Agreement shall be for Seven (7) years, commencing January 1, 2023, and ending on December 31, 2029. ARTICLE IX NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager The Dow Chemical Company City of Beaumont David Ngo, Tax Manager 801 Main 332 SH 332E P, O. Box 3827 Lake Jackson, TX 77566 Beaumont, Texas 77704 With copy to: Chief Financial Officer City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 8 ARTICLE X CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or aectuing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 10 pages is executed in, duplicate counterparts as of this 77"day o f2ceat" &r , Za Z2. CITY OF BEAUMONT, TEXAS Kenneth R, Williams City Manager ATTEST; Tina Broussard City Cleric The Dow Chemical Company By: ATTEST: lZussalf ro/�us Sr. Yi p i�a-mtc a c. r w:� -bt' . e ml"4' �Ii�Qn �YYli+�+ 10 fl December 12, 2022 Consider authorizing the City Manager to enter into an agreement with. Garfield Public/Private LLC to conduct a market study, perform plamming and design services, determine estimated costs and develop a business and financing plan related to the possible development of a hotel on property owned by the City TEXAS TO: City Council FROM: Kemieth R. Williams, City Manager 6.3 PREPARED BY: Chris Boone, Assistant City Manager, Community Services MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to enter into an agreement with Garfield Public/Private LLC to conduct a market study, perform plamiing and design services, determine estimated costs and develop a business and financing plan related to the possible development of a hotel on property owned by the City. BACKGROUND For several decades, the City has invested significantly in the redevelopment of Downtown Beaumont. As a result, Downtown Beaumont serves as the premier location for festivals, private events and arts and culture in Southeast Texas. However, one key element that Downtown Beaumont lacks that almost every successfully redeveloped downtown of this size has is a Rill -service hotel in its downtown. To that end, the City is seeking to enter into an agreement with Garfield Public/Private LLC (GPP) to conduct a market analysis, perform planning and design services, determine estimated costs and develop a business and financing plan related to the possible development of a hotel on property owned by the City. It should be noted that the Agreement contains multiple phases of work and the Agreement shall be terminated should the initial market study find that the project is not feasible. The initial costs of the work would be $40,000 for the market study. Should the market study indicate feasibility for the project, additional costs would include $40,000 for design work and $25,000 for construction estimate services along with a fee paid to GPP of $72,000. The total cost for• the service would be $177,000 plus travel, data acquisition and other minor expenses. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an agreement with Garfield Public/Private LLC, substantially in the form attached hereto as Exhibit "A," to conduct a market study, perform planning and design services, determine estimated costs and develop a business and financing plan related to the possible development of a hotel on property owned by the City; and, NOW, THEREFORE, BE 1T 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, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute an agreement with Garfield Public/Private LLC, substantially in the form attached hereto as Exhibit 'A" for the possible development of a hotel on property owned by the City with a cost totaling $177,000.00 plus travel, data acquisition, and other minor expenses. 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 12th day of December, 2022. - Mayor Robin Mouton - PROFESSIONAL. SERVICES PRE -DEVELOPMENT AGREEMENT CONVENTION CENTER AND HEADQUARTERS HOTEL Beaumont, Texas This Professional Services Pre -Development Agreement ("Agreement") dated as of , 2022 ("Effective Date"), is entered into by and between the City of Beaumont, Texas ("City") and Garfield Public/Private LLC, a Texas limited liability company ("GPP"), in connection with the planning, design, financing, and construction of a hotel and convention center to serve the citizens, businesses and visitors of the City. Each of City and GPP may be referred to in this agreement as a "Party" or collectively as "Parties". RECITALS: WHEREAS, the City is considering the planning, design, financing, construction, commissioning, and operation of a nationally branded hotel and meeting space on a site in Beaumont, Texas (the "Project"). The size and boundaries of such site will be determined by the City at its option following the City's review of the Final Report (as defined below); and WHEREAS, the City desires that GPP perform a strategic business plan that will include (1) a market study and business plan detailing the building program, conceptual design, estimated development cost, development schedule, and operating pro forma; (ii) recommended brands)/flag(s), operator(s), and operating structure(s); (Ili) funding, financing, and ownership alternatives for the Project; and (iv) such other services incidental to the foregoing as the Parties may reasonably approve. WHEREAS, GPP has agreed to perform such services, as more specifically detailed in this Agreement and is duly qualified and experienced to perform such services subject to Exhibit A; AGREEMENT: NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: Section 1. Pre -Development Scope of Services and Schedule. (a) The "Pre -Development Period" is the time from the Effective Date to delivery of the Final Report described in Section 1(h). The City will provide to GPP any currently existing survey, studies, documents and agreements, plans and specifications, and other documents pertaining to the Project, within thirty (30) days of the Effective Date. © Garfield - - ---- Public Private LLC Profr' i,- „'-••-'- meat Agreement Page 1 of 13 � EXHIBIT A p g g (b) During the Pre -Development Period, the Parties will negotiate in good faith a Professional Services Agreement ("PSA") on terms and conditions mutually acceptable to the parties pursuant to which GPP will develop the Project. (c) GPP will conduct a Market Study to include an analysis of the competitive set of lodging properties and an estimated profit and loss statement for the Project for its first 10 years of operations including underlying assumptions of occupancy, average daily rates, operating revenue, operating expenses, and net operating income ("Preliminary Project Operating Pro Forma"). The Market Study will include recommendations for hotel brands)/flag(s) and operators) for the Project. The Market Study will also include preliminary Project program recommendations, to include key count, mix of guestrooms and suites, amount and configuration of ballroom and meeting space, and other facilities and amenities. These program recommendations will inform the Conceptual Design described in Section 1.(d) below. (d) GPP will engage the services of an architect acceptable to the City ("Architect") to prepare a conceptual design package (including an initial conceptual masterplan of the hotel/convention district area) to include a building program, site plan, floor plans, elevations, section drawings, renderings, with architectural and engineering narratives ("Conceptual Design") for the Project. GPP will contractually obligate Architect to indemnify the City and GPP, as joint indemnitees, consistent with the provisions of Chapter 130, TEXAS CIVIL PRACTICES AND REMEDIES CODE, and Section 271.904, TEXAS LOCAL GOVERNMENT CODE, and to maintain insurance (including errors and omissions coverage) for the benefit of the City and GPP as additional insureds, in each case in form and substance not lessthan is customaryfor a City -operated design project with a similar scope. The Conceptual Design will include recommended key count and mix of guestrooms and suites, amount and configuration of ballroom and meeting space, pre -function area, back -of - house requirements, food and beverage outlets, parking, and other recommended amenities, which may include a swimming pool and pool deck, fitness center, and business center, among other facilities and amenities. (e) GPP will engage a general contractor or cost consultant acceptable to the City ("Contractor"), to prepare a preliminary estimate of the total construction costs for the Project based on the Conceptual Design, in sufficient detail to show construction costs, FF&E, OS&E, IT, soft costs and professional fees ("Preliminary Project Pricing"), and a Project development and construction schedule from completion of the pre -development assessment period through Project opening ("Preliminary Project Schedule") with input as appropriate from the City, GPP and other team members. The form of construction contract will provide protections to the City that are not substantially less than the protections in the comparable documents typically used by the City for similar projects in terms of size, scope, and cost. © Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 2 of 13 (f) If required, and subject to City advance written approval, GPP will engage third - party consultants, acceptable to the City, to provide a geotechnical report and an environmental Phase I report. (g) GPP will prepare public/private financing alternatives for the Project identifying anticipated sources of debt and equity and the anticipated amount and structure of City participation to complete the Project capitalization ("Preliminary Capital Plan of Finance"). (h) GPP will use its good faith best efforts to deliver its final report on the Project ("Final Report") to the City within two hundred and ten (210) days of the Effective Date. The Final Report will consist of the Conceptual Design, the Preliminary Project Pricing, the Preliminary Project Schedule, the Preliminary Project Operating Pro Forma, and the Preliminary Capital Plan of Finance. Notwithstanding anything to the contrary in this Section 1(h), in the event that the Final Report has not been delivered to the City within two hundred and seventy (270) days of the Effective Date, the City will have the right to terminate this Agreement and GPP will provide to the City all information it has developed to date in support of the Final Report. 0) GPP will update the City on the status of its efforts relating to the Project on a monthly basis or more often if requested. The meetings may be held by conference call or in person. Section 2. Development of the Project. (a) Upon delivery of the Final Report, the Parties will conclude the negotiations of the PSA. (b) If within 270 days after the Effective Date, the Parties are unable to negotiate a satisfactory PSA, then on the 271$t day after the Effective Date, this Agreement will automatically terminate and be of no further force and effect, and the City may formally end all negotiations with GPP. (c) Prior to the execution of the PSA, the relationship between GPP and the City will be governed solely by the terms of this Agreement. Section 3. Costs. (a) The City acknowledges that GPP will incur costs, as approved by the City, in connection with the services of the Architect, Contractor, and potentially other third -party consultants hereunder, subject to advance written approval of the City. The City will pay such costs in accordance with the City's normal contract payment procedures. GPP will be paid a fee of $12,000.00 per month during the first six (6) months of the term of this Agreement (in the aggregate $72,000.00) for its services, In the event the Final Report were to be delivered prior to the end of the first six (6) months of the Agreement, the unpaid balance of the aggregate GPP fee will become due and payable upon delivery of the Final Report. GPP will also be paid $40,000 for the initial Market Study, including a site selection confirmation. The estimated costs of the Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 3 of 13 Architect and Contractor are $65,000 ($40,000 for Architect and $25,000 for Contractor), subject to City approval. The Architect and Contractor fees are in addition to the GPP fee and the GPP initial Market Study. The City will have the right to access and copy any documents supporting the services provided by GPP, Architect, Contractor, and third -party -consultants pursuant to this Agreement. GPP will retain for review by the City, for a period of twenty-four (24) months following the termination of this Agreement, the financial records and reports regarding the work performed by GPP and the Architect, Contractor, and third -party consultants under this Agreement. All the aforesaid costs and fees will be included in the final budget for the Project, subject to approval by the City. (b) In addition to the cost and fee billings described in Section 3(a) above, GPP will invoice City monthly at cost for all reimbursable expenses GPP incurs in connection with its work, including third -party reproduction, data purchase, delivery services, and travel (if any) outside of the DFW Metroplex ("Expenses'), such Expenses to be supported by appropriate documentation. Travel expenses, if any will be subject to advance written approval of the City. (c) City will pay GPP's monthly invoices on or before thirty (30) calendar days from City's receipt of each such invoice, in accordance with state law. Section 4. Term; Termination. (a) This Agreement will be effective as of the Effective Date and expire upon the earlier of the execution of the PSA or 270 days from the Effective Date. The Parties further agree that this Agreement shall automatically terminate if the findings from the Market Study do not support the Project. The City will have final authority regarding whether the Market Study is viable. Moreover, this Agreement may be terminated by either Party in its sole discretion and without cause, provided that the other Party is given not less than ten (10) calendar days' written notice of intent to terminate. In the event of a termination under this Section by City or an automatic termination as described herein, City will pay GPP fee compensation owed, if any, through the end of the month in which termination occurs plus Expenses incurred, but not yet paid, through the date of such termination. (b) The City may temporarily suspend this Agreement, at no additional cost to City, provided that GPP is given advance written notice of such temporary suspension. if City gives such notice of temporary suspension, GPP will immediately suspend its activities under this Agreement. Compensation owed by City to GPP will be based upon the actual service time expended by GPP, plus Expenses incurred, but not yet paid, through the date the work is temporarily suspended. City will pay any amounts owed to GPP for work completed up to the date of the suspension of work within thirty (30) days of the date the City receives an invoice for the amounts due. (c) Notwithstanding any provisions of this Agreement, GPP will not be relieved of liability to the City for damages sustained by the City by virtue of any breach of this Agreement by GPP, and the City may withhold any payments due to GPP until such time as the exact amount of damages, if any, due the City from GPP is determined. © Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 4 of 13 (d) In the event of termination, GPP will be compensated as provided for in this Agreement. Upon termination, the City will be entitled to all work and all other such materials as may have been prepared or accumulated to date by GPP in performing this Agreement, which are not GPP's privileged information, as defined by law, performed to that date in accordance with Section 7 of this Agreement. Section 5. Amendments, Changes, or Modifications. Amendments, changes or modifications in the terms of this Agreement may be made at any time but only by mutual written agreement between the Parties and will be signed by individuals authorized to bind the Parties. Section 6. Extensions of Time. GPP may, for good cause, request extensions of time to perform the services required under this Agreement. Such extensions are subject to advance authorization by the City in its sole discretion in writing and will be incorporated in written amendments to this Agreement, in the manner provided in Section 5. Section 7. Property of Cit . It is agreed that the Parties intend this to be an Agreement for services and each considers the products and results of the services included in the work to be rendered by GPP under this Agreement to be a work made for hire. It is further mutually agreed that such products and results will become the property of the City once full payment for services is received by GPP, as provided in this Agreement. Immediately upon termination, the City will be entitled to, and the GPP will deliver to the City, the work and all other such materials as may have been prepared or accumulated to date by GPP in performing this Agreement, which are not GPP's privileged information, as defined by law, along with any other property belonging exclusively to the City which may be in GPP's possession. Section S. Compliance with Public Information Act. GPP acknowledges that City is a governmental entity subject to the Public Information Act, Chapter 552, Texas Government Code (the "Act"). The City will process all open records requests in accordance with the Act. GPP understands that the City may require GPP's full cooperation in its response to any open records request. Section 9. Warranties and Responsibilities — GPP. (a) GPP agrees and represents that it is qualified to properly provide the services set forth herein in a manner which is consistent with the generally accepted standards of GPP's profession. O Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 5 of 13 (b) GPP agrees and represents that the work performed under this Agreement will be in accordance with applicable federal, state and local law in accordance with Section 15(a) of this Agreement. (c) GPP will designate a project manager who at all times will represent GPP before the City on all matters relating to this Agreement. The project manager will continue in such capacity unless and until he or she is removed at the request of the City, is no longer employed by GPP, or is replaced with the written approval of the City, which approval will not be unreasonably withheld. Section 10. Subcontractin None of the services covered by this Agreement will be subcontracted without the prior written consent of the City, which consent will not be unreasonably withheld. GPP will be fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors, and of persons either directly or indirectly employed by them, as it is for the negligent acts and omissions of persons directly employed by GPP. Section 11. Assignability. GPP will not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of the City. Section 12. Liability. GPP will be responsible for performing the work under this Agreement in a manner consistent with the generally accepted standards of GPP's profession and will be liable for its own negligence and the negligent acts of its employees, agents, contractors and subcontractors. The City will not be charged with the responsibility of preventing risk to GPP or its employees, agents, contractors, or subcontractors. Approval by City of any service performed or product supplied by GPP hereunder shall not in any way relieve GPP of responsibility for any technical accuracy or quality of GPP's work. The City's review, approval, acceptance of, or payment for any of GPP's goods or services shall not be construed to operate as a waiver of any of City's rights under this Agreement or of any cause of action by City against GPP arising from or related to GPP's performance or lack of performance under this Agreement. Section 13. INDEMNIFICATION OF THE CITY, GPP SHALL INDEMNIFY, SAVE, AND HOLD HARMLESS CITY, ITS OFFICIALS, OFFICERS, AGENTS, EMPLOYEES, BOARDS AND COMMISSIONS WITH RESPECT TO ANY CLAIMS OR DEMANDS, ACTIONS, DAMAGES, COSTS AND EXPENSES, INCLUDING, WITHOUT LIMITATION, ATTORNEY'S FEES AND COSTS OF LITIGATION, ARISING FROM THE DEATH OR INJURY OF ANY PERSON WHOMSOEVER, RESULTING DIRECTLY OR INDIRECTLY FROM ANY INTENTIONAL, NEGLIGENT OR GROSSLY NEGLIGENT ACT, ERROR OR OMISSION OF GPP, ITS AGENTS, © Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 6 of 13 SERVANTS, EMPLOYEES OR OTHER PERSONS ACTING ON GPP'S BEHALF AND ARISING FROM OR RELATED TO GPP'S PERFORMANCE UNDER THIS AGREEMENT. Section 14. Insurance. GPP will at all times maintain or cause to be maintained such insurance as will protect GPP from any of the risks of liability imposed on it by this Agreement. Section 15. Additional Provisions. (a) GPP will keep itself fully informed of, will observe and comply with, and will cause any and all persons, firms or corporations employed by it or under its control to observe and comply with, applicable federal, state, county and municipal laws, ordinances, regulations, orders and decrees which in any manner affect those engaged or employed on the work described by this Agreement or the materials used or which in any way affect the conduct of the work. (b) GPP will not engage in unlawful employment discrimination. Such unlawful employment discrimination includes, but is not limited to, employment discrimination based upon a person's race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship, or sexual orientation. (c) GPP represents and warrants that neither it nor any of its members, managers, employees or officers has: (1) provided an illegal gift or payoff to the City or any current or former officer, official, director, member, agent, representative or employee of the City, or his or her relative or business entity; or (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; (3) knowingly breached any of the ethical standards set forth in the City's conflict of interest ordinance; or (4) knowingly influenced, and hereby promises that it will not knowingly influence, a City officer, official, director, member, agent, representative or employee or any former City officer, official, director, member, agent, representative or employee to breach any of the ethical standards set forth in the City's conflict of interest ordinance. (d) This Agreement constitutes the entire agreement between the Parties relative to the services specified in this Agreement and no modification of this Agreement will be effective unless and until such modification is evidenced by a writing signed by both Parties to this Agreement. There are no understandings, agreements, conditions, representations, warranties or promises, with respect to this Agreement, except those contained in or referred to in this agreement. (e) All notices that are required to be given by one Party to the other under this Agreement will be in writing and will be deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail addressed to the Parties at the following addresses: © Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 7 of 13 City: City of Beaumont Attn: City Manager Copy to: City of Beaumont Attn: City Attorney GPP: Garfield Public/Private LLC Attn: Steve Galbreath 14911 Quorum Drive, Suite 380 Dallas, Texas 75254 Copy to: Garfield Public/Private LLC Attn: Daniel K. Hennessy, Esq. 14911 Quorum Drive, Suite 380 Dallas, Texas 75254 (f) Limited Waiver of Immu!) tA. Notwithstanding anything to the contrary herein, the City and GPP hereby acknowledge and agree that to the extent this Agreement is subject to the provisions of Subchapter I of Chapter 271, TEXAs LOCAL GOVERNMENT CODE, as amended, the City's immunity from suit is waived only as set forth in Subchapter I of Chapter 271, TEXAS LOCAL GOVERNMENT CODE. The City expressly authorizes the prevailing Party in any adjudication involving the City to recover its reasonable and necessary attorneys fees as referenced in Section 271.159 of the Texas Local Government Code. (g) Amendment and Waiver. A provision of this Agreement may be amended or waived if such amendment or waiver is in writing and is approved by GPP and the City. No course of dealing on the part of GPP orthe City, nor any failure or delay by GPP orthe Citywith respect to exercising any right, power or privilege pursuant to this Agreement, will operate as a waiver thereof, except as otherwise provided herein. (h) Independent Parties. GPP enters into this Agreement as an independent contractor and not as an employee of the City. GPP will have no power or authority by this Agreement to bind the City in any respect. Nothing in this Agreement will be construed to be inconsistent with this relationship or status. All employees, agents, contractors or subcontractors hired or retained by GPP are employees, agents, contractors, or subcontractors of GPP and not of the City. The City will not be obligated in any way to pay any wage claims or other claims made against GPP by any O Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 8 of 13 such employees, agents, contractors, or subcontractors, or any other person resulting from performance of this Agreement. 0) Severability. The provisions of this Agreement are severable. Should any provision of this Agreement be held unenforceable, inoperable or invalid for any reason, said provision will be deemed to be modified to conform to applicable law and this Agreement, and, as so modified, will continue to be in full force and effect and will be binding on the Parties to this Agreement. (j) Interpretation. This Agreement has been negotiated jointly by the Parties and will not be construed against a Party because that Party may have assumed primary responsibility for the drafting of this Agreement. (k) Venue. This Agreement will be governed by and construed in accordance with the laws of the State of Texas, without giving effect to any choice or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Texas. Any action arising out of this Agreement will be brought in Beaumont, Jefferson County, Texas. (l) No failure or delay by City in exercising any right, power or privilege under this Agreement will operate as a waiver of this Agreement, nor will any single or partial exercise of any such right, power or privilege preclude any other or further exercise of this Agreement. (m) This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which will constitute one and the same instrument. Such executed counterparts may be delivered by facsimile which, upon transmission to the other Parties, will have the same force and effect as delivery of the original signed counterpart. (n) This Agreement sets forth the entire understanding of the Parties with respect to the subject matter hereof, and all prior agreements, whether written or oral, are deemed to be merged herein. (o) Verification Against Discrimination of Firearm or Ammunition Industries. Pursuant to Texas Government Code Chapter 2274, (as added by Texas Senate Bill 19, 87th Tex, Reg. Session (2021) (effective September 1, 2021)) unless otherwise exempt, if GPP employs at least ten (10) full-time employees and this Agreement has a value of at least $100,000 that is paid wholly or partly from public funds of the City, GPP represents that: (1) GPP does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association: and (2) GPP will not discriminate during the Term of this Agreement against a firearm entity or firearm trade association. (p) Verification Against Discrimination GPP Does Not Bo cott Energy Companies. Pursuant to Texas Government Code Chapter 2274, (as added by Texas Senate Bill 19, 87th Tex. Reg. Session (2021) (effective September 1, 2021)) unless otherwise exempt, if GPP employs at least ten (10) 0 Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 9 of 13 full-time employees and this Agreement has a value of at least $100,000 that is paid wholly or partly from public funds of the City, GPP represents that: (1) GPP does not boycott energy companies: and (2) GPP will not boycott energy companies during the Term of this Agreement. [Signature Pages Begin on the Following Page] © Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 10 of 13 Signature Page IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. CITY OF BEAUMONT By: Title: ATTEST: City Secretary APPROVED AS TO FORM: City Attorney 0 Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 11 of 13 Signature Page (Continued) PROFESSIONAL SERVICES PROVIDER GARFIELD PUBLIC/PRIVATE LLC, a Texas limited liability company By: Name: Stephen L. Galbreath Title: Chief Development Officer D Garfield Public/Private LLC Professional Services Pre -Development Agreement Page 12 of 13 EXHIBIT A EXEMPTION DISCLOSURE WHEREAS, the City of Beaumont, Texas ("City") has requested advice from GARFIELD PUBLIC/PRIVATE LLC ("GPP"), a Texas limited liability company, concerning possible financial structures for a public/private development within the State of Texas; and WHEREAS, GPP is not an independent registered municipal advisor as described in SEC Rule 15 Bal - 1(d)(3)(vi) (the "Rule"), and NOW, THEREFORE, City and GPP agree and disclose to each other as follows: 1. GPP acknowledges that any municipal entity that contemplates issuing any municipal financial securities as discussed in GPP's work must employ the services of an independent registered municipal advisor, as described in the Rule, to advise it with respect to any aspects of the municipal financial product or issuance of municipal securities. 2. Consultant hereby discloses in writing to City that GPP is not a municipal advisor and is not subject to the fiduciary duty set forth in section 1513(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78o-4(c)(1)) with respect to the municipal financial product or issuance of municipal securities as discussed in GPP'sWork. 3. City is strongly encouraged to assess the material incentives and conflicts of interest as discussed in the Rule. 4. GPP will provide a copy of this disclosure to any independent registered municipal advisor, if applicable. Executed the day of GARFIELD PUBLIC/PRIVATE LLC, a Texas limited liability company Title: Chief Development Officer 2022. Acknowledged and Agreed, City of Beaumont, Texas By: Title: 9 Garfield Publlc/Private LLC Professional Services Pre -Development Agreement Page 13 of 13 U , _ 8 , . . . . . ( fo \ { \ \ \ \ \ \ ( } { \ \ z § ( # } ( \ 4! 4 ( { } ( \ _ ` * ( ( ! } { k ( \ _ } } 2 - ( } } � ( } I [ ) } ! ! & $ { • ! , B § ) $ § § n § f 2 \ ! & | N ! , § § ` � 2 Decembex• 12, 2022 Consider authorizing the City Manager to approve grant funding for Lamar University related to equipment used for the local Public, Educational, and Goveriu-lent Channel Ir, TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to approve grant fiinding for Lamar University related to equipment used for the local Public, Educational, and Government (PEG) Channel. BACKGROUND In 2005, the Texas Legislature passed legislation enacting a new Chapter 66 to the Texas Utilities Code, authorizing a state -issued certificate of franchise authority for cable and video providers. Within Chapter 66, it specifies that the operation of public, educational and governmental (PEG) access channels for noncommercial progranuning shall be the responsibility of the municipality receiving the benefit of such channel. Currently the City of Beaumont operates the governmental PEG channel and Lamar University operates the educational PEG channel under agreement with the City of Beaumont. Lamar University is requesting funding for a new, improved, and more robust LUTV Channel 7 for students, the university, and the Southeast Texas community through the construction of a new television studio and the acquisition of new production equipment. The City of Beaumont agrees to reimburse Lamar University up to $729,132.88 for the purposes of this project. The reimbursement will be from monies received from Spectrum that are restricted for capital expenditures for public and governmental programming. FUNDING SOURCE Public Education Government Programming (PEG) Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO, BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to grant funding for Lamar University up to the amount of $729,132.88 for the equipment used for the local Public, Educational, and Government (PEG) Channel. BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to enter into a Memorandum Of Understanding with Lamar University to facilitate expenditure of the grant funding for the purposes of this project. The Agreement is substantially in the form attached hereto as Exhibit "A." 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 12th day of December, 2022. - Mayor Robin Mouton - LAMAR UNIVERSITY 2022 x < \::� / UPGRADE �� Z}� �:d � £<«d®: ° l\ EXHIBIT "A' 7 1 . Introduction 2. LUMA Studio Construction 3. LUMA Studio Expense Spreadsheet 4. LUTV Broadcasting 5. LUTV Broadcasting Expense Spreadsheet 6. LU Film & Video 7. LU Film & Video Expense Spreadsheet 8. Equipment Vendor Price Quotes 9. PEG Funding Final Total 10. Conclusion MN w BEE MMUM ME Om mm Members of the Beaumont City Council: From 2014.2018, the City of Beaumont and the Lamar University Department of Communication and Media formed a fruitful partnership to support educational access broadcasting on Channel 7, allowing students and faculty to create quality programming and build skills to prepare them for the workforce. Through the city's generous distribution of PEG funding, LUTV on Ch. 7 grew from a broadcast bulletin board to a functioning media distributor airing community events, sports games, public government meetings, marketing materials, and student produced broadcasts, documentaries, and films. Now in 2022, we present a new vision to radically redefine the department, Ch. 7, and the community courtesy of our department's new Chair, Dr. Tony DeMars. As a former president of the Broadcast Education Association and the Texas Association of Broadcast Educators, as well as a published author with many years in radio and broadcast journalism, Dr. DeMars brings a wealth of experience to the Department of Communication and Media. His experience with PEG channels is extensive, and with that deep understanding he sees a chance to revitalize Ch. 7 by pursuing a hyperlocal vision and creating a more multimedia friendly campus. The contents of this packet will outline a vision for a new, improved, and more robust Ch. 7 for students, the university, and the community through the acquisition of new production equipment and the construction of a new television studio. As Lamar University's educational opportunities expand, the reputation of the university and the City of Beaumont can only grow, and we look forward to continuing to build a brighter future together with the City of Beaumont. Sincerely, Clinton Rawls, MFA Instructor I of Humanities, Lamar Institute of Technology Phone: (409) 247-5145 About LUMA Studio: The first major step in our vision is an ambitious endeavor to further grow the department and facilitate new, cutting -edge programming on Ch, 7 for years to come: the construction of a state -of -the --art television studio within the department's own building to house the Lamar University Media Alliance (LUMA). In this space, students will continue to create the award -winning LUTV News along with several new programs to engage with community leaders, a reflection of Dr. DeMars' desire to create a more hyperlocal media presence. In the event of an emergency, this space will be in the same building as Ch. 7's fiber optic head end, allowing Beaumont residents another outlet for emergency information. The LUMA Studio creation will be done in two phases. Phase One will consist of construction and equipment integration. Construction will be handled by LU Facilities with physical labor paid for by university funds. The contents in this proposal represent only the building material costs and other capital items outlined by LU Facilities. After construction, the studio will be outfitted with industry standard equipment and software from Ross Video, a vendor whom the City of Beaumont and Lamar University have worked with in the past. So that nothing goes to waste, our current television studio will be transformed into a production soundstage for the department's Film & Video emphasis. Phase Two, which consists of the construction of news desks, sets, a video wall, greenscreen, and the installation of a lighting grid, will be the subject of a future proposal. Editing and podcast suites outfitted with cameras and microphones will surround the studio, allowing for even further content production. Through a glass window facing the hallway, students will be able to glimpse the creation of our programming, adding prestige and serving as a recruiting fool for future students, all of whom will create content for Ch. 7. Through the construction of a new television studio, the Department of Communication and Media will greatly benefit, and further recruiting will lead to greater content overall for Ch, 7. The LUMA Studio constitutes the first step in bringing all university media entities into the same building to create a more multimedia capable future. As Dr. DeMars says, "One building, better 0 OHO 0 0 i 0 0100 O O Q OOO 0 C7 O O 0 0 O O o +�i 0 to m m r4 l w I- , 00 o© m d o O o O to 0 l "iN �O:M!L m 0�o 0 an.Ein,Iqn-Iin- 010ic) 0 O j 0 j 0 O OiiN,0 V) mN'[D 1- 00 1 N Li 00 .F 00 ci O N N, O 3 m r-I1--iIH o L{� •O E Op� Q1 V! E (A oI3 m a rj -0 d o 000 H in. j -L4j -La; in. I V)- I .u} co 010 0 0 O - M 0J ) O I - p N0000 � ri I o0 L O al 0 O 0 41 00 Ln 00 Ln w O M ©# 0' rH un Fre N a �, ull f� � 1 o tA (U 07 v u ro 3 E 2 io � o v, o v, �I °jam O C LO About LUTV Broadcasting: In previous years, our partnership with the City of Beaumont has allowed for the purchase of industry standard equipment to update broadcast technology that, in some cases, was over twenty years old. Since then, our student produced flagship program, LUTV News, has continued to flourish, and we have created documentaries, marketing videos, and much more. Our broadcasts have earned awards in student and professional competitions from the Texas Intercollegiate Press Association, the Houston Press Club, the Society of Professional Journalists, and the Press Club of Southeast Texas. In addition, our alumni have gone onto careers in such media corporations as BET, CNN, Disney, ESPN, Spectrum News, Sinclair, and TEGNA, among others. To continue to build upon our successful legacy, we hope to supplement equipment from prior PEG funding proposals by adding additional lights and microphones. To further bolster the television studio's infrastructure, we seek to update our monitors, studio speakers, and control panels. Finally, broadcast news nationwide has moved into two separate tracks, both of which we seek to capitalize upon. First, as "backpack journalists" have become more common, we wish to outfit our students with the ability to shoot quality news programming on their own smartphones. Second, as "edutainment" continues to be popular, we hope to update our studio cameras by replacing them with 4K studio cameras to film in greater quality and train our students in industry standard video resolutions and workflows. LUTV News and the City of Beaumont have created an entire generation of journalists working nationwide not only in local media, but in markets like Austin, Atlanta, Charlotte, Houston, Memphis, New York, and many more. Through our continued relationship with the City of Beaumont, this PEG funding will foster the next generation of broadcast journalists and add further prestige to our community. 00 O 0 O hi O Ln iri ui rn 1 LA to rf n d rt' im M H i O t t' N pp 3 tYl � N 9 '41 :'Ln o o Cso O o + : ) H o o o 0 o o A ai !< Ci to Lo o 'n 00 a) rn rn m o0 oa n N m oo Ln 01 [T1 0 -i I' € cam[ r l Lri Lr e a) 0 00 O} LA 1 1 0 a) al O to O 0 0 cn O 00 j O al 6t C3 07 Ca C? o r--: of 6 E L11 of ai rl O Cif al § of al C) 0� cr) i 1p 0 . [ N 00 m ! � 0(00 0Y1 N i I N s-i rr-l� pp rri r•r-I Ln tq I I V) I H- H i i : � , i (UQ a1 & C o R m Q o u N-,u (U C, C o L 4! o� O Rt C t a of! c =,C oe C u o ui u ru cc 0 C C CI i (O + 1IL t4 •, C a� CL 2 MI Ll o a U ix J } o0 a 'i vi v L. 'IJ'A q/),IV)�9�. cif I ri I zr 0 C C) z � � as }oN e-� �( ro CL CL a� o, E a E ur-L a � c U } L3 O O a !iY aG �'o a000 ainloo n o 0 0 o w o a,} o0 o0 V 00 00 a1 061 i` O al S az n 4 I N d0 N n oo r-i° � � lB co,O C:) I cn "I c O Ca O}al OEEa) L1 ai Ln u)� Ln� N nJ rn �r �* NI al N N "# 00 m I i E r! 1 I � as d m C V 3 E E aj a: ia�0lC u C oC LL ` }� m a Cl}C '- u l 'ba 'o L bn E� E ,�Ztiat1" C � o U- '� z Ln ° 3 E E a T (U a Ej� Q ja •L �0 ij U,Iu U, I G o C(� x j tLo i E (v s o i 0 u �14 C: 1 a- ca c N u ro R. ro .0 N C i Iva t 'C U-, if� t/D � ifl- V), i V), A/)- to E 9 O O 0 O O cn Ln Ln O O O !! al O al Ol 01 all{ al (n ' rl Ln 0 M 'o �iNjM,N d in N r-S -in i •v)- 1 in.1 'a I V)-; V).; V)- I in } i _4 QJ X � .� C O �:a E J-- biOl E E R. J I V) u N Q t' a% : m 1 En � m u 3 v, m C `*- aJ O N V N "Q i3 o 3�© m � -a O a. o o '9 (o 3 C ca vi ago cm w a)a O C7 o ' o Q- E- a 01 U C7 � � U iY1 .a = O -r >� tm r-i m �•QI'ff u u C. 'c 'a w Ln � oj 0 0 �EIE E 9 aoro C: > O i rya fti C) n =3 : , U) 010 0 CY) o, 0 0 in 0 e 41 i-n Oi O cn I n oo w N 6 0 00 t-o .—i sri 00q � � W 4o cr V) to o 00 -O X as rri V) }m a� 4 O WMISM NSHiH U1 O C LL C) O r� +u oca 1D cu x E a `aU10 2 (, a m 01 �IC]jj cn U I U i U About Film & Video: Since 2017, the Film & Video emphasis has undertaken a radical shift with the advent of the Summer Film Program. In this course, students collaborate throughout the summer semesters to create two major short films and shepherd the projects through ail stages of production under the supervision of Professor Jeremy Hawa. Hawa, a Lamar University graduate and Beaumont resident, is owner and director of the multi -award -winning Light Strike Productions, a locally owned LLC which creates commercials and industrial videos to serve the needs of Southeast Texas business owners among other clients nationwide. Under Hawa's leadership and through his years of experience in the film industry, the Summer Film Program has grown to become the capstone course for Film & Video majors and trains students to enter the workforce as videographers, set technicians, and commercial producers. Through PEG funding, the additional equipment in this proposal will not only maintain the relevancy of our students' technical education through use of cutting -edge camera and fighting platforms, but also provide them a leg up toward their career aspirations. Any graduating student with hands-on working knowledge of these technologies will be at an extreme advantage when it comes to job placement in a highly competitive field. Secondly, this equipment will greatly enhance the production value of content on Ch. 7, allowing students to create narratives filmed on location in both rural and urban spaces, and in low -light situations. The camera systems requested in this proposal are equipped with greater dynamic range and high -end sensor arrays, helping students create engaging and professional content without the hindrance of older, bulkier platforms. Finally, this equipment will allow students to produce a broader range of content to serve as superb marketing material for the continually growing film program, and double as programming on Ch. 7. t r r- m 0 0i,E� acorn Odom;r�rr r0om1mrn� mlr-i 00 rn +n 1 rn � ca o � 0 1 1n r- rn rn m (R 0 19 11) m rm••+ Lndam' � r- I Him CD LB l0 LD tD ri j 1 M U 3 � 4-0 Gi +„ to •r CL ._ a u rntr N E fa f9 Y rn is au "� Qi p �� Cam T� u u x 'ss''. •� 2 r- c U aj cncu I 141 41 `-° -- Ln I Q'cn0 (D z a Ll t } Ulm j{EjV j `p [3n CL CL 0 00 00 0 00 0'0" 00000� ci 0 C) M 0 o r. m 00 rn 00 0 � Lonri j ri d � o i m!r.D1N1rii 11,Y1, 110E rn + ni 30 0 4 ci o 0 0 un 0 0 I or 01 0 0 00i 0 o a o 0 o m N ry ai o 0 (n a) M m r. 0 N m'mI o 00jjrn of as et � 0 m t4 wr t -1- V., v/� +� v> �h to i cry � v} j t/� t/� 4 v> i V), is 0�0 0 ca o:o 0 01o�o'Ln`oko m o 0 0 o a o 0 o rn o COD oIo 0 0io o a oho n o 0 rn n o 0 0 0 0 0 . rn ai ai o 0 0 0 0104 0 0 o o .4 (i * r, a) Ln io, N +n m 0 1II Nit .-+ m ai r. o o o N ai M m m 00 100 ri �H cD r� m 001 rn o r , N I N Q I ryiE r �-I 1 cn 1 r-I I I E 1 r-Z C4 ca 06 E H N[N 1f ! �I tWi C F^i I aJ fD 3 V�1 4 c � M X on m � N LO '0 m au c x, E rD ! CD E ra v { LL El>L9 O 2 LA •- Q1 3 �- c c i� i V Ln 1E c a} 41 i1 uCa NtHiri 0. II .•.I W1�Ir 0 0 + MSal Ln CL V7 0 Y C V3 U E Ivy Op E o H c m 4-1�i a kc �! E E � 3 3 E Ear'" W aJ +n D1 W H ri it — r�a rru a. cx ¢ ¢i¢ 4 e-+ ,' ri u O 15. F-11 01 U- NrN i i � O J j 0 m blf u � L Q p 0 0 U 41 �( m a, I C p 1 © v i aD a u � ' L 4 3 Q V . v a 1! V L N9NININ N1Nirilr-1 A 00 Ix to k d aj C i r� is E 0" u c V C V1 'L IIJ rt CL wLU. 40 C (6 E 41 O u co J G CJ + rrl V iv �j�f c G6 p L9! � o� EE 01 CL Q ! £ -1 01 .c c U V1 E (n a) p C Ln p i Ca sm O E X [0 CL LL X t7i o C U \ GlG An- I-V)- PI.M. \!\ \ :e: #1Niw m Q�Q onIm 3 ^r \ ,\\ 0 o g R o Ca \.\ to ®;V-1 k \, | � � a m 0 0 0 ) x \j} 0 0 0 / e « w d a. o / e % 5 x $d m a A = n: m m m� 2 E � 5 ' ! \ ( � . ! i N`w \ � \ ./ d § \ �f 7 § T. \ 2 e 5 /� tin Cl) / 7 W ( 2 ru E \ \ _ u « o: \ / Members of the Beaumont City Council: This proposal is our most ambitious yet and outlines a true investment in the future of the university, the community, and the city. Under Dr. DeMars' leadership and with the support of the City of Beaumont, we are more excited than ever to see this bold new vision plan in action. By supporting the construction of a new television studio and fhe outfitting of our film and broadcast areas, we can strengthen the university and add further renown to our community. This PEG funding will enhance the growth of our department, our university, and reshape the lives of our students as they embark upon their careers. With renewed vision, our department will grow, and through the support of the City of Beaumont, we will all thrive. By supporting the Department of Communication and Media with a generous donation of PEG funding, we can create more new and exciting programming possibilities on Ch. 7 for years to come. Thank you for consideration and for continuing our fruitful partnership. Sincerely, Clinton Rawls, MFA Instructor I of Humanities, Lamar Institute of Technology Phone: (409) 247-5145 Email: jcrawls@iit.edu 16 2022 _ Budget Cap I I1TV RPfnrnfinn a ALDING PROGRAM = 2,050 GSF Project # TBD CONSTRUCTION COSTS Budget %,CCL %TPC ASBESTOS ABATEMEM $0 0.007. 0.007. DEMOLITION (If not included in construction) $0 0,00% 0,00% CONSTRUCTION $500,000 100.00% 73.53% Other $0 0.0070 0.00% CONSTRUCTION COST LIMITATION (CCL) $500,000 100.007 73.53% IT/SECURITY EQUIPMENT $25,000 5.00% 3.687o A/V EQUIPMENT (if not Incl. above) $0 0.0017o 0,00% FF&E (allowance) $35,000 7.00% 5.15% SUBTOTAL $60,000 12,00% 8.82% TOTAL $560,000 112.00% 82.35%� PROFESSIONAL SERVICE & TESTING FEES PROGRAMMING FEES $0 0.00% 0.00% A/E BASK FEES $62,500 12,50% 9,19% A/E REIMBURSABLES $2,000 0.40% 0,29% PRECONSTRUCTION SERVICES $0 0.0017o 0.007. SYSTEM PROJECT MGMT $0 0,001yo 0.00% GEOTECHNICAL ENGINEERING $0 0.00% 0.00% ENVIRONMENTAL SURVEY & CONSULTING $0 0,001y. 0.00% SITE SURVEY $0 0.00% 0.0070 MATERIALS TESTING $0 0.00% 0,00% AUDIT FEES $0 0.00% 0.00% COMMISSIONING $0 0.00% 0.0070 TESTING & BALANCING $5,000 1.00% 0.747o BUILDING ENVELOPE CONSULTANT $0 0.001Y.0.00% OTHER $0 0.00%1 0,00% SUBTOTAL $67,500 13,90% 10.22% MISCELLANEOUS ART PROGRAM (1% of CCL if applicable) $0 0.00% 0.007 MOVING EXPENSES $5,000 1.007o 0.747o MISCELLANEOUS/OTHER $0 0.0070 0.0070 PRINTING/DELIVIERY SERVICES $0 0.0070 0.00% PROJECT CONTINGENCY $45,500 9.10% 6.69% SUBTOTAL $50,500 10.10% 7,43% TOTAL PROJECT COST (TPC) $680,000. Construction Cost Limilotlon $244 Project Cost per Gross Square Foot (TPC / GSFi $332 Notes: COW �o E'En ©a m� Z. E U- 1 ^, fl �-'U � =U 00 m 00 0 ) N O E C3� O 0 0 = C% as a. t� U A. w W D L E O1 4! U7 4.1 G m a. e � o � m � � o d3 C7 � €1 a! Q {� U7 O G a) mN C) F� N 4D a �n m E L u c Lo F'o- UJ E N a a °—� c€ ass CL Lo m 0 0 o. w a) T-X�� :E W Q as r- 0 o, 4� '> 3 w a � 2) m a 0 W c � (D u) CL a Va 0 0 � v to m m 0 � as � L � L LL a, a ? N a C) O k 'LT J J (n Q d .0_ �1 0)) N W LO (0 LO oo ClG O mLE C C N O U) N Oo (a 00 p� (a M Q� 0 Oy G 67 U = E O O G 6) 0 +4 !L _mi � � 6 IL m 1- QO O O q p q a O O (O ti co m �t 00 CV OD r 00 0) � b 4 � 69 Ul a o o a CD o 0 � � � � (n � � 1 o N Uf 0 0 0 o 0 N 0 o, �0 0 O 0 'N CLd Vl /�/ O 1 C3 o c 0 E 0 D7 0 f/ 9 .k (C) % m � � n \[ in \�\ 7 cy 0 ® �� 3 ƒ q a o � � 2 2 � .} : _ . 0 f _ .. 2 � \ j 1,UTV Broadcasting List 2022 Wish List I B&H Photo Video https://www.bhpliotovideo,com/find/wislil isti sp/#/I CA2415 A272/j aines... Wish List: LUTV Broadcasting List 2022 Creator: James Rawls Total Value: $22,984.98 Blackmaglc Design Zoom Demand $245.00 B&H # BLZD - MFR # CINSTUDMFT/H/FZD QTY needed Purchased 4 v Dof4 Blackmagic Design SmartScope Duo 4K Rack -Mounted ... $885.00 B&H # BLSSD42 -- MFR # HDL-SMTWSCOPE➢U04K2 QTY needed Purchased 1 Doft Blackmagic Design ATPM Camera Control Panel $3,079.00 B&H # BLATFMPANEL - MFR # SWPANELCCU4 QTY needed Purchased 1 Dof1 Blackmagic Design MultiDock 1 OG 7tC**** S $615.00 B&H # BLMD10G - MFR # DISKMDOCK4/U1 oG QTY needed Purchased 2 � Dof2 Saramonic SR-ULM10L Omnidirectional USB Lavalier Mi... $45.00 B&H # SASRULMIOL - MFR SR-ULM10L QTY needed Purchased Fq" 0of4 1 of 6 11/612022, 8:05 PM LUTV Broadcasting List 2022 Wish List I B&H Photo Video https://www.bhphotovideo.com/find/wishilst.jsp/#/lCA2415A2'72/fames... Square Jellyfish jelly Grip Tripod Mount for Smartphones �k r Tk r 105 $16.95 Y B&H # SQJLYGRTM15 - MFR #JLYGRTMI5 QTY needed 4 v Purchased Oaf4 Magnus PV-333OG PhotoNideo Tripod with Geared Cen... **fir** 33 $29.95 B&H It MAPV3330G - MFR # PV-333OG QTY needed 4 v Purchased Oof4 Mobile Edge 16" Express Backpack 2.0 (Black) y ***fir 0 $59.99 B&H # MOMEBPE12 - MFR # MEBPEI2 QTY needed 4 v Purchased Oaf4 Saramonic LavMicro U1 A Omnidirectional Lavalier Micr... **** 2 $21.90 B&H # SALAVMICRUTA- MFR# LAVMICROU1A QTY needed 4 Purchased 0of4 Atomos Ninja V 5" 4K Recording Monitor with 1TB Atom... ***** 281 $899.00 B&H #ATNINJAVAX1K- MFR # QTY needed Purchased oof2 GVM 560AS Bi-Color LED Studio Video 3-Panel Light Kit 174 $269,00 B&H # GVM560ASK - MFR # GVM-560AS3L QTY needed 1 v Purchased Doff C 2 of 6 11/6/2022, 8:05 PM LUTV Broadcasting List 2022 Wish List I BR&H Photo Video https-.Hwww.bhpliotovideo,com/find/wishlist.jsp/#/1CA2415A272/jaiiies... Sennheiser EW 100 G4-ME4 Wireless Cardioid Lavalier — ****fir 1 $749,00 B&H # SEEW100G4M4A - MFR # EW 100 G4-ME4-A QTY needed � v Purchased Oof2 M-Audio BX5 D3 5" 2-Way 100W Powered Studio Monito.., *****4 $298.00 B&H # MABX5D3PK - MFR # x2 QTY needed 1 Purchased 0of1 Peerless -AV Bookshelf Speaker Mount (26 lb Capacity, 2-.,. *****4 $42.50 B&H # PESPK26 - MFR # SPK26 QTY needed 3 Purchased aof1 RapcoHoriznn SP-2DFN XLR Single Gang Wall Plate with $22.95 B&H # RASP2DFN - MFR # SP-2DFN QTY needed 2 Purchased Oof2 Blackmagic Design Studio Camera 4K Pro ***** 10 $1,865.00 B&H # BLSTUDCAM4KP - MFR # CINSTUDMFT/G24PDF QTY needed 4 v Purchased Oof4 Panasonic Lumix G Vario 14-140mm f/3,5-5.6 11 ASPH. P... ****fir 19 $497.99 B&H # PA1414035562 - MFR # H-FSA14140 QTY needed 4 Purchased a of 4 3 of 6 11/6/2022, 8:05 PM LUTV Broadcasting List 2022 Wish List I B&H Photo Video littps://www.bhphotavideo,com/find/wishlist jsp/#/1 CA2415A272/james... Blackmagic Design Focus Demand * *** 3 $245.00 B&H # BLFD - MFR # CINSTUDMFf/H/FD qTY needed Purchased 4 v Oaf4 F-Image Air -Assist Pedestal with Height -Adjustment Lever $3,999.00 B&Id # EI7903A - MFR # 0-7903-A QW needed {4"_" Purchased I`+ flafA Prompter People Flex Plus 15" Teleprompter with 15" R... Itr �kr 12 $1,399.00 B&H # PRFLEXP15 - MFR # FLEXP-15 QTY needed Purchased OoF4 AJA KUMO 1616 Compact 12G-SDI Router (1 RU) *****5 e, $2,899.00 B&H # AJKM161612G - MFR # KUMO-1616-12C QTY needed Purchased v 0ofl AJA KUMO CP Remote Control Parcel ****fir 2 $799.00 B&H # AJKUMOCP - MFR # KUMO-CP QTY needed Purchased I i Y pofl Tenba Cineluxe Wier 21 ***** 6 $369.95 B&H 4k TECR21 BLK - MFR # 637-521 QTY needed Purchased 1-7- Qof17 4 of 6 11/6/2022, 8:05 PN LUTV Broadcasting List 2022 Wish List � B&H Photo Video littps://www.blipiiotovideo,coin/find/wishlist.jsp/#/l CA2415A272/fames,,, Shure SM58-LC Cardlold Dynamic Microphone ***** 153 $89.00 B&H # SHSM58LC - MFR # SM58-LC QTY needed Purchased 15 " 0of15 Kopul Studio Elite 4000 Series Neutrik XLR M to XLR F Mi... **** * 513 $20.99 B&H # KOM4010 - MFR # M4010 QTY needed 15 Purchased Oof15 Sony MDR-ZX110 On -Ear Headphones (Black) ***** 115 $11.99 B&H # SOMDRZX110BK- MFR # MDRZX110/8LK QTY needed 1 7 - Purchased pof17 SmallRig Basic Shoulder Mount Kit *****7 $99.00 B&H # SM2896B - MFR # 2896B QTY needed 5 Purchased aofs Bescor Specter LED Single -Light Kit with Battery, Charge... ***** 1 �i $69.95 {40� B&H #t' BFSPECTERMI - MFR # SPECTERMI QTY needed 15 purchased Oof95 Sony ECM-44B Omnidirectional Lavalier Microphone *la�r145 $145.00 B&H # SOECM44B - MFR # FCM44B QTY needed 15 v Purchased OafiS 5 of 6 11/6/2022, 8:05 PN L,UTV Broadcasting Last 2022 Wish List I B&H Photo Video https://www.bhphotovideo.com/find/wishiist jsp/#/1CA2415A2'72/james... Manfrotto MVH502A Fluid Head and MVT502AM Tripod ... *** * 393 $499.88 B&H # MAMVK502AM1 - MFR MVK502AM-1 QTY needed 17 — Purchased Dof17 Sony ECM-VG1 Short Shotgun Microphone ****# 28 $199.00 B&H ## SOECMVGI - MFR # ECM-VG1 QTY needed 1 � Purchased Oof17 Panasonic HC-XI Ultra HID 4K Professional Camcorder 38 $2,497.99 B&H # PAHCXI - MFR # HC-X1 QTY needed 17 v Purchased Oof17 0 6 of 6 11/6/2022, 8:05 PM I1UTV Film Video List 2022 Wish List I B&H Photo Video https://www,bhphotovideo,com/fiiid/w ishlist.j sp#/ 1 D42EEF 2 602/J aines Wish List: LUTV Film Video list 2022 Creator; James Rawls Total Value, $78,233.74 Astera Set of 8 Titan Tubes with Charging Case ****#13 $8,300.00 B&H # ASFP1 SET - MFR # FP 1-SET QTY needed , Purchased 1 0of1 Matthews junior Steel Wheeled Stand (12.8') ***** 12 $504.00 B&H # MALSJTR -- MFR # H386033 ti. 4yi QTY needed 2 � Purchased Oof2 Sigma 18-35mm and 50-100tmm Lenses with Case (Cana... ***** 0 li99e B&H #SA0 &H # 1183550100C -MFR # WZQ966 QTY needed 1 v Purchased 0of1 Blackmagic Design URSA Mini Pro 4,6K G2 Digital Cinem.., 20 $5,995.00 e&H # BLURSAMPG2 MFR # CINEURSAMUPRO46KG2 QTY needed Purchased 2 � 0of2 Blackmagic Design Shoulder -Mount Kit for the URSA Mini ****fir 32 $395.00 B&H # BLURSAMSK- MFR # CINEURSASHMKM QTY needed Purchased 2 v 0of2 C 1 of 7 11/6/2022, 8:29 PNI LUTV FiIIII Video List 2022 Wish List I B&H Prato Video https:Hwww.bhphotovideo.coinlfind/wishlis# jsp#/1D42EEF2602/fames-... Blackmagic Design URSA Mini Handgrip *'r *** 10 $199.00 B&H # BLCAMURHANDG - MFR # BMURSACAIHGRIP QTY needed Purchased 2 v Oaf2 Blackmagic Design URSA Viewfinder *****28 $1,525.00 B&H # BLURSAVF - MFR # CINEURSANEVFP QTY needed Purchased Z v flof2 SanDisk 256GB Extreme PRO CFast 2.0 Memory Card �$ 81 irtcRmeRRO $234.99 256rse """ B&H # SAEPC256GBB MFR # SDCFSP-256G-A46D gi uDlsk QTY needed Purchased 4 � oof4 Comprehensive Standard PC Power Cord - 10' * **** 5 -.*44" $6.50 B&H # COPWCBK10 - MFR # PWC-BK-10 QTY needed Purchased v oof2 IndIPRO Tools Two 95Wh I- ion Batteries and Dual Char... * *** 51 $499.99 B&H # IN2VMDCA - MFR It 2VMDCA QTY needed Purchased 2 bof2 ARRI SkyPanel S60-C LED Softlight with Manual Yoke (Bl... _ $6,820.00 B&H # ARSPS60CEB - MFR # L0.0008989 QTY needed Purchased aof1 2 of 7 11/6/2022, 8:29 PM LUTV Film Video List 2022 Wish List I B&H Photo 'Video https;//www.bliphotovideo.com/find/wislilist jsp#/ID42BBF2602/james-... Fiilex Q5 Color Cinernatic RGBW Fresnel Light **7Ir** 2 rr $2,500,00 t B&H # FiFLXQSCLR - MFR # FLXQSCLR i QTY needed F4 Purchased " o of A Proaim Orion Geared Head 1 0 $1,979.00 B&H # PRPOGRH - MFR # P-OGR-H QTY needed Purchased Oofi Matthews Scrim and Flag Kit (18 x 24" /24 x 36") $1,832.00 B&H # MASFK - MFR # 999006 QTY needed j T^ Purchased 1 � Oof1 Proaim Victor V1.1 Video Production Camera Cart (42") $2,016.00 B&H # PRVCTRV142 - MFR# VCTR-V1-42 QTY needed 2 v Purchased oof2 Blackmagic Design URSA Vlewtinder Eyecup ****fir 2 $25.00 B&H # BLCAMURVWCUP - MFR # BMURSAWF/EYECUP QTY needed Purchased F2 0of2 CineMilled Aputure junior Baby Pin fir****o Image not availabie $39.99 B&H # CICM4036 - MFR # CM-4036 QTY needed --" T r� Purchased l� 0of2 l 3 of 7 11/6/2022, 8:29 PM LUTV Film Video List 2022 Wish List B&H Photo Video https://www.bhphotovideo. com/fitid/wishi ist.j sp4/ 1 D42F,EF 2602/j ames--. ARRI 4-Leaf Barndoors for LED SkyPanel S60 ***** 1 $457.00 B&H # ARBDSGO - MFR # L2.0007530 QTY needed purchased 2 v j Oofz ARRI Standard Diffusion Panel for SkyPanel S60-C LED Li... *****0 $140.00 B&H # ARDPSS60 - MFR # L2,0003345 QTY needed Purchased F2 v tlof2 Sachtler Cine 7+7 FT MS flowtech 100 Tripod System 0 $11,670.75 B&H # SA191 OFTMS - MFR # 191 OFTMS QTY needed Purchased 1 Oof1 Creamsource SpaceX RBGAW Color LED Light, 120OW 3 $6,500.00 m . B&H # CRSCSX1200C - MFR # K-05X-1200-C :. QTY needed Purchased 2 Oof2 Creamsource Dome Diffuser for SpaceX RBGAW LED Light -7r**** 0 $240.00 B&H It CRSCSXDOMF - MFR # OS-CSX--DOME QTY needed Purchased 2 0of2 Djl 24mm f/2.8 ASPH LS Lens ***** 2 $1,299.00 B&H # DJZMX7P2 - MFR # CP.BX.00000032,01 QTY needed Purchased 1 Oof1 4 of 7 11/6/2022, 8:29 PM LUTV Film Video List 2022 Wish List I B&14 Photo Video https://www.bhphotovideo,com/titid/wishlistjsp4/ID42EEF2602/jataies-,., Chrosziei Dual -Sided, Single -Wheel Studio Follow Focus— ***** 2 $2,180.00 ,. B&H # CHC20401 KIT - MFR # 204-01 KIT QTY needed Purchased 1 Oof1 ARRI LMB 6x6 Pro 19mm Studio Set $6,530.00 B&H # ARKKO020233 - MFR # KK.0020233 QTY needed Purchased 1 v 0 of 1 ARRI FF-5 Follow Focus Cine Set Pro ° $3,670.00 B&H # ARKK0005758 -MFR # KK.0005758 QTY needed Purchased 1 0 of 1 ARRI 19mm Lightweight Rods (Pair, 13") ***** 0 $160.00 B&H # ARK2,66269.0 - MFR # K2.66269.0 M needed Purchased 1 0of1 ARRI 15mm lightweight Support Rods (Pair, 9") $110,00 + B&H # ARK2.66253.0 - MFR # K2,66253.0 QTY needed Purchased i oof1 Matthews Knife Blade Gel Frame (48 x 48") ***** 4 $89.00 B&H # MA549126 - MFR 549126 QTY needed Purchased 2 Oof2 5 of 7 11/6/2022, 8:29 PM L,UTV Film Video List 2022 Wish List I B&H Photo Video https://www.hhphotovideo,coiiVfand/wishlist jsp#/1D42BEF2602/james-,., Matthews Knife Blade Gel Frame (24 x 36") *****4 $89.00 B&H # MAGFKB2436 - MFR # 549121 QTY needed (� Purchased IL 0of2 Matthews Diffusion Frame - 36x36" - 3/4" Square Tubing ***** 3 $78.95 B&H # MAGF3636 - MFR # 549099 r- — QTY needed Purchased Oof2 Backstage Equipment Cable/Sand Bag Mini Cart $1,34750 B&H # BAGF02MINi - MFR # GE-02 MINI QTY needed Purchased 1 Oo€1 Backstage Equipment x 4 Mini Cart 0 $2,145.00 B&H it BAG01 MINI - MFR # G-01 MINI QTY needed Purchased 1 0of1 Impact 3" Center Jaw Vise Grip *****7 $45.00 B&H # IMME114 - MFR ## ME-114 QTY needed Purchased Oof6 Bessey Steel Spring Clamp (Black, 3 5/16 x 3") 17 $6.39 B&H # XM7B - MFR # XM7-B QTY needed Purchased F6 - t3 of 6 C 6 of 7 11/6/2022, 8:29 PM LVI'V Film Video List 2022 Wish List I B&H Photo Video htips://www.bhphotovideo.conVfind/wishlist.j sp#/ID42EEF2602/fames-... Impact Plate Clamp Duckbill Style *****24 $59.95 B&H # IMME111 - MFR # ME-111 QTY needed Purchased 6 _ FOof6 CHAUVET Dj CLP-05 Heavy -Duty C-Clamp ***** 2 $13.95 B&H # CHCLP05 - MFR # CLP-05 I QTY needed I F6Purchased �o � oofG Dedolight Scissor Clamp with 5/8" Stud ***** 3 $31.78 B&H # DECLAMPS - MFR # CLAMP-S QTY needed Purchased 6 0of6 7 of 7 1 I/6/2022, 8:29 PM m O F- LL bA (J W a D December 12, 2022 Consider approving a tri-annual contract with patriot Security Inc,, of Nederland, for Security Guard Services TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution approving a tri-annual contract with Patriot Security Inc., of Nederland, for Security Guard Services. BACKGROUND Temporary staffing services are required by the Events Facilities Department for events held at various locations including the Civic Center, Julie Rogers and Jefferson Theaters, and the Event Centre. These temporary staff services include guard supervisors, armed guards, unarmed guards, overnight guards, ushers, and ticket takers. Each event has a unique set of staffing requirements. Factors including location and type of event being held, the size of the expected crowd and event promoter's specific needs dictate the number of temporary staff positions to be filled as well as the number of hours to be worked at each event. Currently, security guards are utilized at Municipal Court. Bids were solicited from five security companies. Two companies responded with bids. The quoted hourly rates were applied to five model events at various venues, as well as Security Guard positions within City departments. The contract term is for three years with the option of two - one year extensions at the price bid. Staff recommends awarding the contract to Patriot Security Inc., of Nederland, who holds the current contract, with a projected arnaual cost of $419,997.90. This includes pricing for guards at City Hall and the Health Department that are currently not being utilized. Bid tabulation is attached. FUNDING SOURCE The cost of Security Guard services utilized within the Event Facilities Department are reimbursed by event promoters. All other City Department usage is fiunded through General Fund or Grant Funds as budgeted by individual departments. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, bids were solicited for a three (3) year contract, with the option of two (2) one (1) extensions at the same pricing as the awarded contract, for the temporary staffing services required by the Event Facilities Department; and, WHEREAS, Patriot Security Inc., of Nederland, Texas, submitted a bid for a total estimated amount of $419,997.90 in the unit amounts as shown in Exhibit "A," attached hereto; and, WHEREAS, the City Council is of the opinion that the bid submitted by Patriot Security Inc., of Nederland, 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 Patriot Security Inc., of Nederland, Texas for a three (3) year contract, with the option of two (2) one (1) extensions at the same pricing as the awarded contract, the temporary staffing services required by the Event Facilities Department for a total estimated amount of $419,997.90 in the unit amounts as shown in 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 Patriot Security Inc., of Nederland, 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 12th day of December, 2022. - Mayor Robin Mouton - N Z a O w F Z 0� z mz O_ z > O � O � C7, raLL T 00 U Q' 0n 000 000 _ ni 100000 Is h li n � Lo O N Ql :1 O 0o L^ 00 O vi C? �p o c b N o0 to �+ O O U ~ C� (D r'0r, Q 0 ha Q � VV L6 (A U of Cl) N v LU o m Fx- I r t m M 00 rn m M c� °O r M �„� W ul Ln Ln 00 00 CO 00 =3 p" �/ fn N N " G r 0 M rn 41 (r a 4A to 69 kA Vi Q NO' 0000 �j �Co C3 '' M SO ' r V N b9 NN t-V Ni c e4 W bq 6R Cl) R CA v u � o d U 00000 coo oo0ao w in1�oq 0 mtnN c C v~i M NM F n f~ N MmM b4 4A b9 Mto VS rdU !A l0 69 Fl +A lD 69 O a' EW" p 7 Ix til F A �d7 m > f� M 0o W 00 a_ J 00 tL1 r }' 0 Ln 0 Ln O L In In In 0o 00 00 Fn di 69 +A d3 b o > o d d' 'd r 6 W O v a n m 00w ) Ul tn z 0.CL E9 69 b% w FP, a V H 0 a U a «+ HLLJ p �^ 00000— m �+ iC 0 LD co m co0oo0+`� n n NMI fd C b N l0 to l0 i, 0 Q ,, O O vy v a h s� N A VI 4- diw ? 4J E31 '�u In m 0. Erd ai L Uc) �..".. L O U a u_ a F ab u d B O O "b lu O U W V] �N+ .V �.. ?� N 3 £' uu?? w u� 6 N p r N M V' M i0 h 00 n z m m °' u cu a a a a O Z Q 2 C rid 0 c P "CS 0 b t~ m a m Q. '6 d 6 i 3 Cd G o N W v a E O Q a b 0 Q w a I c b z Cd 3 !T C tA r 0 LV J k December 12, 2022 Consider authorizing the emergency repair of a six inch sanitary sewer main from Wheat Drive to Brentwood Drive s TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd 5imoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution authorizing the emergency repair of a six inch sanitary sewer maim. from Wheat Drive to Brentwood Drive. BACKGROUND On November 8, 2022 the City was made aware that a 1,350 foot section of the six inch (6") sanitary sewer line in Calder Place from Wheat Drive to Brentwood Drive has multiple failures with parts causing complete back up of two streets. To correct the problem, the sewer main must be pipe burst with new manholes installed. An emergency contract has been put in place with To-Mex Construction, LLC of Houston at an estimated cost of $126,950 to complete the repairs. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on November 8, 2022, the City was made aware that a 1,350-foot section of the six (6) inch sanitary sewer line in Calder Place from Wheat Drive to Brentwood Drive has multiple failures with parts causing complete back up of two (2) streets; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an emergency contract with To-Mex Construction, LLC, of Houston, Texas in the amount of $126,950.00 to complete repairs on the sewer main. The contract 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 12th day of December, 2022. Mayor Robin Mouton - December 12, 2022 Consider approving a contract with Gulf Coast a CRH Company, io supply asphaltic concrete for use by the Public Works Department r , y T E X A S TO: City Council FROM: Kci meth R. Williams, City Manager PREPARED BY: Todd Sinroneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution approving a contract with Gulf Coast a CRH Company, to supply asphaltic concrete for use by the Public Works Department, BACKGROUND Bids were requested for the supply of a hot mix asphaltic concrete that is used for repairing and repaving street sections. Six vendors were notified of the bid opportunity with one submission received. Specifications allow for a six-month contract with the option of two renewals of six-month extensions at the sane pricing as the awarded contract. Unit pricing for both plant pickup by the City personnel and job site delivery by the vendor was requested. Staff recommends awarding the contract to Gulf Coast, a CRH Company, with a projected six- month cost of $93,460. Pricing represents a 34% increase over the current contract. Bid tabulation is attached. FUNDING SOURCE General Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: 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 supply of asphaltic concrete for use by the Public Works Department; and, WHEREAS, Gulf Coast, a CRH Company, of Beaumont, Texas, submitted a bid for a total estimated amount of $83,460.00, in the unit amounts as shown in Exhibit "A," attached hereto; and, WHEREAS, the City Council is of the opinion that the bid submitted by Gulf Coast, a CRH Company, of Beaumont, 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 Gulf Coast, a CRH Company, of Beaumont, 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 supply of asphaltic concrete for use by the Public Works Department for a total estimated amount of $83,460.00 in the unit amounts as shown in 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 Gulf Coast, a CRH Company, of Beaumont, 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 12th day of December, 2022. - Mayor Robin Mouton - z O 5 ❑ z L as u ° a M V O 2 � U 1- qA Q u z� O b Sao u Q 0 a� 00 Ln 1 ai) O O L O N r- E O U u v Y L/l ❑ Z © N tQ T L r LL LA x z Q g � w cn �zz m ©©ate. m m 0 0 o 0 o 0 d 0 0 0 0 0 0 0 0 0 o Ln O N O o O rn Sri 1\ Ln N Ln N Ln m CL isf rn r N O M d N QO to O V cn Lo 00 to 00 It - ctr t� er3 tit cat t+3 V 4- p Q � 41 m u O O O O O O O O O O O O O V G� 00 0000 0) tm N z tn uz LI) Ln LA 00 Ln co Lf) N Ln N a x � Of]LuE w T `O M. c ate+ (A L U �: N w Z N N N E d A. 1 D t0 : ' CL C_ Z:) m: V a Q fl LLJ a H. aLLJ a z w J �--' x a i a u (V , UCL u ai a� u 0. LU in .:�Q rOu E 0 1�: o C] :�; rd3— ca ❑ OO OO (-h U m W December• I2, 2022 Consider approving a contract with Allied Electrical Systems & Solutions, Inc. for alarm monitoring, maintenance and repair TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 12, 2022 REQUESTED ACTION: Council consider a resolution approving a contract with Allied Electrical Systems & Solutions, Inc. for alarm monitoring, maintenance and repair. BACKGROUND Bids were requested for monthly monitoring, maintenance, and repair of alarm systems at sixty-nine (69) City owned facilities. This contract allows for the monitoring, annual inspections and maintenance of alarm equipment currently owned by the City and the addition of any new equipment as needed, Pricing is determined by a monthly charge per location for monitoring and an hourly charge for technicians with a percentage mark up on materials for maintenance. The contract allows for the addition or removal of facilities as needed. Bids were requested from six vendors and two responses were received. Allied Electrical Systems & Solutions Inc. of Beaumont, submitted the low qualified bid of $69,940.00 for the estimated annual usage by the City. This is a five and one half percent (5.5%) increase in cost over the current contract with the addition of five more locations being monitored than previously. Specifications allow for an arulual contract with the option of two renewals of one year terms at the same pricing as the awarded contract. Allied Electrical Systems & Solutions, Inc. has the current contract, Bid tabulation is attached. FUNDING SOURCE General Fund, Airport Fund, Fleet Fund, Water Utilities Fund, Hotel Occupancy Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, bids were solicited for an annual contract, with the option of two (2) renewals of one (1) year terms at the same pricing as the awarded contract, for monthly monitoring, maintenance, and repair of alarm systems at sixty-nine (69) City owned facilities; and, WHEREAS, Allied Electrical Systems & Solutions Inc., of Beaumont, Texas, submitted a bid for a total estimated amount of $69,940.00, in the unit amounts as shown in Exhibit "A," attached hereto; and, WHEREAS, the City Council is of the opinion that the bid submitted by Allied Electrical Systems & Solutions Inc., of Beaumont, 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 Allied Electrical Systems & Solutions Inc., of Beaumont, Texas for an annual contract, with the option of two (2) renewals of one (1) year terms at the same pricing as the awarded contract for monthly monitoring, maintenance, and repair of alarm systems at sixty-nine (69) City owned facilities for a total estimated amount of $69,940.00 in the unit amounts as shown in 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 Allied Electrical Systems & Solutions Inc., of Beaumont, 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 12th day of December, 2022. - Mayor Robin Mouton - BEAUM©PIT T E X A S City of Beaumont Texas Purchasing Division Bid Tabulation Bid Name: Annual Contract for Alarm Monitoring. Maintenance and Repair Bid Number: TF1023-04 Bid Opening: Thursday, December 1, 2022 Contact Person: Terry Welch, Purchasing Manager Terry.weIch@beaumonttexas.gov Ph:409-880-3107 Vendor City/State Phone or Fax No. Allied Electrical Systems & Solutions, Inc Beaumont, Tx 409-860-4637 Firetrol Protection Systems Inc. Nederland, Tx 713-343-1605 Est Hrs Unit Price Extended Price Unit Price Extended Price Section 1— Monthly Monitoring Charges $1,570/MO $ 18,840./YR $3,195/MO $38,340/YR Section 2 -- Estimated Straight Time Service Fees Technician 260 $60.00 $15,600 $95 $24,700 Helper 260 $0 $0 $65 $16,900 Minimum Service Call Fee $60 - $105 - Section 3 - Estimated Overtime Technician 100 $90 $9,000 $130 $13,000 Helper 100 $0 $0 $90 $9,000 Minimum Service Call Fee $90 - $145 - Section 4 — Estimated Sunday/Holiday Technician 50 $90 $4,500 $130 $6,500 Helper 50 $0 $0 $90 $4,500 Minimum Service Call Fee $90 - $145 - Estimated Additional Charges $0 $0 $0 $0 Bid Sub Total $47,940 - $112,940 Percent Marie -Up on Materials ($20,000/Yr) + % MARK UP = Ext PRICE 10/% $22,000 10% $22,000 TOTAL ESTIMATED ANNUAL BID (Sub Total + Markup) $69,940 - $134,940 The low qualified bidder Is Allied Electrical Systems & Solutions Inc. as shown in bold. EXHIBIT "A" WORK SESSION Review and discuss the desired graphics for the Southwest Elevated Storage Tank located near Washington Boulevard and I-10