HomeMy WebLinkAbout01/10/2023 PACKET 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 Property 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 Property Tax Rate=Assumed City Tax
Due Year 1 80% of Assumed City Taxes Due=2023 Payment
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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,
2023, the 2023 assessed values shall be used for the February 1, 2024 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) With respect to each year during the term of this Agreement, (i) City hereby agrees to
bill Company for its payments due hereunder on or before the January 1 following such year, and
(ii) Company shall pay to City the amount billed on or before the later of (A) the February 1
following such year, and(ii)thirty(30) days after Company's receipt of such bill from City. 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 the due date of same, the same penalties, interest, attorneys' fees and costs
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of collection shall be recoverable by the City as would be collectible in the case of
delinquent ad valorem taxes. Further, if payment is not timely made and such non-payment is not
fully corrected within thirty (30) days after City gives written notice of said non-payment to
Company, an amount equal to all payments of property taxes which otherwise would have been
paid to the City had Company been in the City limits of City through the year of such non-payment,
reduced by the amount of all payments made by Company to City under this Agreement through
the year of such non-payment, 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.
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
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1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be
annexed any portion of lands or facilities or properties of said Company covered by this Agreement
for the period of the agreement except as follows:
(a) If the City determines that annexation of all or any part of the properties covered
by this Agreement belonging to said Company is reasonably necessary to promote and protect the
general health, safety and welfare of persons residing within or adjacent to the City,the City will
notify Company in accordance with State law of the proposed annexation. In the event of such
annexation, Company will not be required to make further payment under this Agreement for any
calendar year commencing after such annexation with respect to the property so annexed but shall
nevertheless be obligated to make full payment for the year during which such annexation 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.
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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
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
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question, owns or has the power to exercise the control over fifty percent (50%) or more of the
stock having the right to vote for the election of directors. The word"parent" as used herein shall
mean all companies which directly or indirectly,through one or more intermediaries at the time in
question owns or has the power to exercise control over fifty percent (50%) of the stock having
the right to vote for the election of directors of Company.
ARTICLE VII
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 TotalEnergies Petrochemical&Refining USA,Inc.
City of Beaumont Plant Manager
801 Main 11455 IH-10
P. O. Box 3827 Beaumont,Texas 77705
Beaumont, Texas 77704
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With copy to: With copy to:
Chief Financial Officer TotalEnergies Petrochemical &Refining USA, Inc.
City of Beaumont Attn:Accounts Payable
P.O.Box 3827 PO Box 674411
Beaumont, Texas 77704 Houston,Texas 77267-4411
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 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.
Signature Page Follows
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IN WITNESS THEREOF, this Agreement, consisting of 9 pages is executed in
duplicate counterparts as of this day of December, 2022.
CITY OF BEAUMONT, TEXAS
By:
Kenneth R. Williams
City Manager
ATTEST:
Tina Broussard
City Clerk
TotalEnergies Petrochemical &Refining USA,Inc.
By: P6tiL
Name: Y14^'
pti K Padrf(,
Title: fad /ite ✓14r
ATTEST:
liL~sita
BEAUAOT
TEXAS
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: January 10, 2023
REQUESTED ACTION: Council consider an ordinance establishing the City
Communication Department and Recreation Department.
BACKGROUND
In an effort to improve and enhance the services provided by the City of Beaumont, the
Administration is proposing to establish two new departments within the organizational structure
of the City. Elevating City Communications to a full department will ensure the continuation of
recent improvements in delivering information and content to our citizens through a variety of
traditional and social media channels.
In addition, the Administration is proposing to reorganize the Parks and Recreation Department
into a new Recreation Department, focused on recreation, whereas the existing Parks Department
will focus on maintaining and enhancing park facilities, highway maintenance and beautification.
In accordance with Article XIII of the City Charter, departments of the City are to be established
by ordinance.
FUNDING SOURCE
General Fund.
RECOMMENDATION
Approval of the Ordinance.
.4**;'• T
TEXAS
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: January 10, 2023
REQUESTED ACTION: Council consider an ordinance amending the FY 2023 Budget.
BACKGROUND
In accordance with Article VI of the City Charter, the City Manager shall strictly enforce the
provisions of the budget as specified in the ordinance adopting the budget. He shall not authorize
or approve any expenditure unless an appropriation has been made in the budget ordinance
adopting the budget,and there is an available unencumbered balance of the appropriation sufficient
to pay the liability to be incurred. Approving the proposed amendment will ensure that
expenditures are within the approved budget.
In accordance with Article XIII of the City Charter, there shall be a Finance Department and such
other department and offices as may be established by ordinance. At the head of each department
there shall be a director who shall have supervision and control of the department subject to the
supervision and approval by the City Manager except as specifically provided otherwise by the
Charter. Approving the proposed amendment will ensure that the creation of new departments is
in accordance with the Charter.
During the fiscal year 2023,two Assistant City Manager(ACM)positions were created and filled.
Those positions were not accounted for in the original budget as the details were not known during
the budget process. Also, during fiscal year 2023, three division managers were promoted to
department director status. This included the Chief Technology Officer, over the existing
Information Technology Department, the Director of the proposed Communications Department,
previously a division, and the Director of the proposed Recreation Department which was part of
Parks and Recreation Department. The division of Parks and Recreation Department into two
separate departments will not impact the budget. The two new ACM positions and the promotion
of two department directors have an estimated additional cost of$507,000.00 since the time of
their creation to the end of this fiscal year. While such budget amendments typically take place
at the end of the fiscal year, due to the proposed reorganization necessary to improve and enhance
the delivery of City services, it is appropriate to take this action now.
General Fund Original Budget Proposed Amendment Amended Budget
Total Expenditures $145,612,400 $507,000.00 $146,119,400
FUNDING SOURCE
General Fund.
RECOMMENDATION
Approval of the Ordinance.
•
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BEAUMONT
TEXAS
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: January 10, 2023
REQUESTED ACTION: Council consider a resolution authorizing a contract with BCBS for
Stop Loss Insurance
BACKGROUND
The City's health insurance plans are self-insured as opposed to fully funded plans to reduce
health related costs to the City. However,to protect the city from large health claims by any one
individual, stop loss coverage is purchased to cover claims that exceed$275,000.
At the end of each calendar year, the City's benefits consultant (Holmes Murphy) gathers the
claims history of that year and solicits quotes from the market and negotiates the most favorable
terms for the City. This year 7 carriers were contacted, and 7 quotes were received. BCBS
responded with a quote of$1,641,139 and other vendors responded with quotes ranging from
$1,800,537 to $2,136,796 with the same terms. BCBS currently holds the contract.
FUNDING SOURCE
Employee Benefits Fund.
RECOMMENDATION
Approval of the resolution.
STEALTH PARTNER GROUP rs a a I tit`
1 Clifton Browning fill GROUP
5949 Sherry Lane,Suite 1170
M AtalThls CcenDenY
Dallas,TX 75225
(214)5523520 •
GROUP: City of Beaumont
EFFECTIVE DAM January1,2023-
SPECIFIC STOP LOSS Curront Rrnew,l Option 1 Option 2 Option 3 Option 4 Option S Option 6
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Specific 8eeerd;indudtrt Med♦Re Med+Rt Med+Pot Mcd+Re Med+RLc Med+Pat Med+Rs Med+Rx
Plan Lifetime Mmdnunre Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Speel eiifetimeMendmumRelmbwsanne Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Ondirideatsperi cDedudibPm S275,000 5275000 6275,000 3275,000 $275.000 3275300 $275,000 5275,000
Specific Centred 24/12 24/12 24/12 24/12 24/12 24/12 24/12 24/12
Composite 1404 581.11 t.97X7 $91.90 $9438 $9 s76 $99.04 $105.49 $111.03
Nadi*Specific Premium 5114,041 $136,762 3129,211 $132,698 5137,451 $139,250 3153,943 $157.233
Additional Lacer Claim Liability SO 6250.000 $260300 $250.000 3260.000 $250A00 $250.000
Annual Specific Premium $1.368,487.92 $1.641,139.44 51,800336.80 S1.84237936 S1.899.408.72 51,921,002.88 52,09731528 52,136,795.76
$Difference Over Current 072.652 5432.049 5478391 5530.919 5552,515 5128,827 6768,308
%D/Rorenee 19.92% 31.57% 34.63% 38,30% 4037% SJ-26% 56.4%
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Minoring Waded Iadoebd Iactudid Wader! Ioshtded IOdldsd fnduds4 Included
TOTAL REINSURANCE EXPENSE Cc'rc^ c,. .11 0;tior1. ^ric,; Optic..3 1 4 on 5 nation:
. -._._. ►d'l ,r Q ail 1t ells ��'? Tr`,. t.+
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Annual Fixed Pranlmn 51368.488 61.641.139 S1.800.537 S1.842.379 51.899A07 61,921.003 52.097315 62.136.796
$D"dferenec Over Current 5272.652 S432349 5473.891 5530.19 1352315 3728.827 3760,308
%Difference ... 19.9596 93.,3,% 34.63N - 38.80 __40,37 ,_-__-___ 53.2656 5644%
Maxine=Colt Liability 51368A88 S1.641.139 51.800537 31.842379 51.899A07 S1.921.003 62.097315 S2.138.796
S Cliffeireneo Over Cams! 5272552 5432.049 S473.891 5530,919 5557315 5728.827 5768,308
%DBferencO 194f'L i1.r'r7G VL396 RrtAII% M�'rat ea 14%
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Exhibit "A"