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HomeMy WebLinkAbout09/19/2023 PACKETREGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, SEPTEMBER 19, 2023 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PROCLAMATIONS PRESENTATIONS RECOGNITIONS PUBLIC COMMENT ON AGENDA/CONSENT Persons may speak on the Consent Agenda and Regular Agenda Items 1-6 (or any other topic) 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. Council to consider approving the September 12, 2023, City Council Meeting Minutes. B. Council consider a resolution approving an agreement with Triangle Stagecraft, Inc., for skilled temporary workers utilized in the Event Services Department. C. Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase I. D. Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase II. E. Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase III. F. Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase IV. G. Council consider a resolution authorizing an Industrial Development Agreement with Linde, Inc. H. Council consider a resolution authorizing an Industrial Development Agreement with Zero Parks Management LLC. I. Council consider a resolution authorizing the execution of a License to Encroach Agreement with Korey Jackson. J. Council to consider a resolution authorizing the City Manager to execute all documents necessary to accept the project titled “Step Comprehensive Fiscal Year 2024.” K. Council consider a resolution rejecting all responses for bid number MF0823-43 for a standby generator for the Parks Operation Center. L. Consider authorizing the Beaumont Convention and Visitors Bureau to apply for grant monies from the Jefferson County Tourism Commission (JCTC), for $40,000 for partial payment of pollinator gardens off the nature trail at Tyrrell Park. M. Council consider a resolution authorizing the City Manager to execute all documents necessary to accept new funding for the Southeast Texas Auto Theft Task Force. N. Council consider a resolution approving an annual contract for grounds maintenance on Martin Luther King Jr. Parkway. REGULAR AGENDA 1. Council consider an ordinance authorizing the City Manager to approve the last stage in the Film Friendly Designation process. 2. Council consider a resolution authorizing the purchase of a Standby Diesel Generator from Mustang CAT, of Houston, for the Pine Street Water Treatment Plant. 3. Council consider an ordinance amending the FY 2023 Budget. 4. Council consider a resolution providing for the reimbursement of a capital expenditure incurred prior to the closing of financing. 5. Council consider a resolution approving the write off of uncollectible delinquent accounts. PUBLIC HEARING Council to conduct a Public Hearing authorizing Zip to temporarily waive transit fares for Veterans on September 22, 2023. REGULAR AGENDA 6. Council consider a resolution authorizing Zip to temporarily waive transit fares for veterans on September 22, 2023. WORK SESSION Council to conduct a Work Session to review the proposed adoption of a Naming Ordinance. PUBLIC COMMENT - MISC COUNCIL COMMENTS ADJOURNMENT Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Minick at (409) 880-3777. A TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Tina Broussard, City Clerk MEETING DATE: September 19, 2023 REQUESTED ACTION: Council to consider approving the September 12, 2023, City Council Meeting Minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the Minutes ATTACHMENTS Minutes - September 12, 2023 Minutes - September 12, 2023 MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Randy Feldschau, At-Large Taylor Neild, Ward I CITY COUNCIL MEETING Michael Getz, Ward II Audwin Samuel, Ward III SEPTEMBER 12, 2023 Chris Durio, Ward IV Tina Broussard, City Clerk 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 September 12, 2023, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING  Invocation Pledge of Allegiance Roll Call  Proclamations, Presentation and Recognition  Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1- 10 (or any other topic) Mayor West called the council meeting to order at 1:30 p.m. Pastor Carl Vickery with Calvary Tabernacle Ministries gave the invocation. Mayor West led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio, Getz, Feldschau, Samuel and Neild. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation and Recognition “Lamar University Centennial Celebration 1923-2023” – September 17, 2023 – Proclamation read by Councilmember Samuel; accepted by Dr. Jaime Tayler, Lamar University President “National Suicide Prevention Month” – September 2023 – Proclamation read by Tina Broussard, City Clerk; accepted by Ms. Julie O’Malley, Director of Mental Health Association of SETX “National Recovery Month” – September 2023 – Proclamation read by Tina Broussard, City Clerk; accepted by Ms. Emily Ross, on behalf of Connected Path Recovery “Celebrating the 117th Anniversary of the Pride of Beaumont #291” – Proclamation read by Councilmember Durio; accepted by current Master Mr. Clay and past Master Mr. Stacey Lewis Jr. Minutes - September 12, 2023 Public Comment: Persons may speak on the Consent Agenda/Regular Agenda Items 1-10 (or any other topic) (Public comments can be heard or seen at the City of Beaumont website at beaumonttexas.gov) Rhonda Girard 3980 N. Major Dr. Beaumont TX Charles Moore 1995 McFaddin Beaumont TX Charline Sam 2370 Monroe Beaumont TX Charlie Crabb 928 East Dr. Beaumont TX Addie Allen 9695 Gross Beaumont TX Jessica Choi 5610 Winfred St. Beaumont TX Amy Gorrell 9010 Manion Beaumont TX John Fears 458 N. 8th Beaumont TX 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. Council to consider approving the August 29, 2023, City Council Meeting Minutes. B. Council to consider a resolution approving the purchase of one fire truck – Resolution 23-243 C. Council to consider a resolution authorizing the City Manager to renew a contract with Motorola Solutions Inc – Resolution 23-244 Councilmember Feldschau moved to approve the Consent Agenda. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED PUBLIC HEARING Council to hold a Public Hearing on the 2023 (FY 2024) Proposed Tax Rate Public Hearing Open: 2:27 p.m. None Public Hearing Close: 2:27 p.m. Minutes - September 12, 2023 REGULAR AGENDA 1. Council to consider an ordinance adopting the FY 2024 Budget by a record vote. Article VI, Section 8 of the City Charter states that “the budget shall be adopted by the favorable votes of at least a majority of all members of the Council.” Section 9 states that “the budget shall be finally adopted in accordance with the Texas Local Government Code. Should the Council take no final action in accordance with the Texas Local Government Code, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council.” Also, SB 1760 provides that if the tax rate exceeds the no new revenue tax rate, the vote on the ordinance setting the tax rate must be a record vote and must be approved by at least 60 percent of the members of the governing body. If the tax rate vote fails, then the lower of the no new revenue tax rate or prior year tax rate will be the tax rate. Section 102.007 of the Government Code requires the vote to adopt a budget to be a record vote. In addition, the adopted budget will contain a cover page that includes the statement on whether the budget will raise more, less or the same amount of property taxes as the prior year, the record vote of each member of council by name, property tax rates for the preceding and current fiscal years, the no new revenue tax rate, the no new revenue maintenance and operations tax rate, the voter approval tax rate, and the debt rate, along with the amount of debt secured by property taxes. This information is required to be posted on the city’s website and remain there for one year after adoption of the budget. The FY 2024 Budget was submitted to Council on August 15, 2023. Approval of the Ordinance. Councilmember Neild moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ADOPTING THE FY 2024 BUDGET BY A RECORD VOTE. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE RECORD VOTE: ADOPTION OF THE FY 2024 BUDGET MAYOR WEST – YES COUNCILMEMBER FELDSCHAU - YES MAYOR PRO TEM TURNER - YES COUNCILMEMBER SAMUEL - YES COUNCILMEMBER DURIO – YES COUNCILMEMBER NEILD - YES COUNCILMEMBER GETZ - YES MOTION PASSED ORDINANCE 23-064 Minutes - September 12, 2023 2. Council to consider a resolution adopting the 2024 Capital Program. Article VI, Section 20 states that “the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing in accordance with the Texas Local Government Code.” The Capital Program was originally submitted to the Council on May 15, 2023. Also, it was submitted to the Council on August 15, 2023, with the Budget. Approval of the resolution. Councilmember Getz moved to APPROVE A RESOLUTION THAT THE CITY COUNCIL OF THE CITY OF BEAUMONT BE AND THEY ARE HEREBY AUTHORIZED TO ADOPT THE 2024 CAPITAL PROGRAM. Councilmember Neild seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-245 3. Council to consider an ordinance accepting the appraised roll and approving the property tax rate for the tax year 2023 (FY 2024). The Jefferson Central Appraisal District submitted the Certified Appraisal Roll on July 20, 2023, in the amount of $10,517,782,408. Based on this taxable value, a property tax rate of $0.681485/$100 valuation for the tax year 2023 (FY 2024) is proposed, which is 1.35 cents less than the current tax rate. The tax rate would be apportioned $0.491480/$100 assessed valuation to the General Fund and $0.190005/$100 assessed valuation to the Debt Service Fund. As required by Section 26.05 of the Tax Code: The tax rate consists of two components, each of which must be approved separately by a record vote and at least 60 percent of the governing body must vote in favor of the ordinance. That ordinance must include the following statement: “THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 14.65% AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $20.” Approval of the ordinance. Minutes - September 12, 2023 Councilmember Getz moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ACCEPTING THE CERTIFIED APPRAISAL ROLL FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX RATE; PROVIDING FOR LEVYING, ASSESSING AND COLLECTING OF AD VALOREM TAXES FOR THE TAX YEAR 2023 (FY 2024); PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE RECORD VOTE: PROPERTY TAX RATE OF $0.681485/$100 VALUATION MAYOR WEST – YES COUNCILMEMBER FELDSCHAU - YES MAYOR PRO TEM TURNER – YES COUNCILMEMBER SAMUEL – YES COUNCILMEMBER DURIO – YES COUNCILMEMBER NEILD – YES COUNCILMEMBER GETZ – YES RECORD VOTE: $0.491480/$100 ASSESSED VALUATION TO THE GENERAL FUND MAYOR WEST – YES COUNCILMEMBER FELDSCHAU - YES MAYOR PRO TEM TURNER – YES COUNCILMEMBER SAMUEL – YES COUNCILMEMBER DURIO – YES COUNCILMEMBER NEILD – YES COUNCILMEMBER GETZ – YES RECORD VOTE: $0.190005/$100 ASSESSED VALUATION TO THE DEBT SERVICE FUND MAYOR WEST – YES COUNCILMEMBER FELDSCHAU - YES MAYOR PRO TEM TURNER – YES COUNCILMEMBER SAMUEL – YES COUNCILMEMBER DURIO – YES COUNCILMEMBER NEILD – YES COUNCILMEMBER GETZ – YES MOTION PASSED ORDINANCE 23-065 4. Council to consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2024 Budget. Section 102.007 of the Local Government Code includes the following: “Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law.” The current tax rate of $0.695 per $100 assessed will decrease by 1.35 cents for a new tax rate of $0.681485 per $100 of assessed valuation. The budgeted revenue from property taxes is expected to be $5,645,000 more than FY 2023. Of this amount, $977,792 is attributable to new property added to the tax roll this year. Approval of the ordinance. Minutes - September 12, 2023 Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE RATIFYING THE BUDGETED PROPERTY TAX INCREASE REFLECTED IN THE FY 2024 BUDGET. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE RECORD VOTE: NEW PROPERTY TAX RATE OF $0.681485/$100 OF ASSESSED VALUATION MAYOR WEST – YES COUNCILMEMBER FELDSCHAU - YES MAYOR PRO TEM TURNER – YES COUNCILMEMBER SAMUEL – YES COUNCILMEMBER DURIO – YES COUNCILMEMBER NEILD – YES COUNCILMEMBER GETZ – YES MOTION PASSED ORDINANCE 23-066 5. Council to consider an ordinance amending Section 22.05.211 of the Code of Ordinances to increase garbage rates by $1.00 per month effective October 1, 2023. On August 8, 2023, Council had a budget work session and discussed the garbage collection rates and the need to increase those rates to maintain the required minimum fund balance per the financial policies approved by Council within the Budget each year. The Solid Waste Fund anticipates ending the fiscal year 2023 under the required minimum fund balance due to increased operational costs due to inflation, increased maintenance costs on heavy equipment and increased capital expenses. The proposed rate increase of $1 per month ($22.25 to $23.25) will ensure that the minimum fund balance requirement of fifteen percent (15%) is maintained per financial policies. Approval of the ordinance. Mayor Pro Tem Turner moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 22, SECTIONS 22.05.211(B)(1)(A) OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, TO INCREASE GARBAGE AND TRASH RATES; PROVIDING FOR SEVERABILITY; PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE DATE. Councilmember Durio seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED ORDINANCE 23-067 Minutes - September 12, 2023 6. Council to consider amending Section 22.02.001, Water Service Rates and Section 22.02.002, Wastewater Service Rates of the Code of Ordinances to increase water rates by four percent (4%) and sewer rates by ten percent (10%) effective October 1, 2023. On August 8, 2023, the Council had a work session to discuss the FY 2024 Budget. During the work session, HDR and staff discussed the need for a water and sewer rate increase to support the five￿year Community Investment Plan and to increase the required minimum fund balance from 15% of annual expenses to 25% of annual expenses over the next few years. The increased minimum required fund balance is necessary in order to meet the concerns of rating agencies when the City goes to the market to issue water and sewer revenue bonds. As operating costs within the fund continue to rise due to inflation and employee increases, it is necessary to increase the revenues of the fund as well. A customer using an average of 5,000 gallons per month would see an increase in their bill by $4.80 per month from $70.06 per month to $74.86 per month. Approval of the ordinance. Councilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 22, WATER SERVICE RATES AND SECTION 22.02.002, WASTEWATER SERVICE RATES OF THE CODE OF ORDINANCES TO INCREASE WATER RATES. Councilmember Feldschau seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU AND SAMUEL NAYS: COUNCILMEMBER NEILD MOTION PASSED ORDINANCE 23-068 7. Council to consider an ordinance amending Section 22.05.214 of the Code of Ordinances to increase landfill disposal fees by $1 per cubic yard effective October 1, 2023. On August 8, 2023, Council had a budget work session and discussed the landfill disposal fees and the need to increase those fees to maintain the required minimum fund balance per the financial policies approved by Council within the Budget each year. The Solid Waste Fund anticipates ending the fiscal year 2023 under the required minimum fund balance due to increased operational costs due to inflation, increased maintenance costs on heavy equipment and increased capital expenses. The proposed fee increases of $1 per cubic yard would bring the compacted refuse fee to $7.10/cy and the noncompacted refuse fee to $6.31/cy which will ensure that the minimum fund balance requirement of fifteen percent (15%) is maintained per financial policies. Approval of the ordinance. Councilmember Durio moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 22, SECTIONS 22.05.214 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, TO INCREASE LANDFILL DISPOSAL FEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; Minutes - September 12, 2023 PROVIDING A PENALTY; AND PROVIDING AN EFFECTIVE DATE. Councilmember Getz seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED ORDINANCE 23-069 8. Council to consider a resolution authorizing the City Manager to execute Change Order No. 5, accept maintenance, and authorize final payment to To-Mex Construction, LLC, of Houston, for the Street Rehab Sewer Line Pipe Bursting Project. On June 14, 2022, by Resolution No. 22-151, the City Council awarded a contract to To- Mex Construction, LLC, of Houston, in the amount of $589,861.80. Previous Change Order Nos. 1-4, in the amount of $33,865.00 are attached for your review. Proposed Change Order No. 5, in the amount of ($60,091.40) is requested to adjust the estimated quantities in the contract to reflect the actual quantities used and the addition of 37 calendar days to reflect the actual time used in the completion of the project. If approved, the adjustment in quantities would result in a final contract amount of $563,635.40. The project has been inspected by Water Utilities and found to be complete in accordance with the provisions and terms set out in the contract. Acceptance of Change Order No. 5, maintenance, and final payment in the amount of $28,181.77 is recommended. Funds will come from the American Resue Fund. Approval of the Resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 5, IN THE AMOUNT OF ($60,091.40), THEREBY DECREASING THE TOTAL CONTRACT AMOUNT TO $563,635.40 FOR THE STREET REHAB SEWER LINE PIPE BURSTING PROJECT AND THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO MAKE FINAL PAYMENT IN THE AMOUNT OF $28,181.77 TO TO-MEX CONSTRUCTION, LLC, OF HOUSTON, TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-246 Minutes - September 12, 2023 9. Council to consider a resolution authorizing the City Manager to award a contract to King Solution Services, LLC, of Houston, for the Street Rehab Phase V Sewer Line Replacement Project. The Street Rehab Phase V Sewer Line Replacement Project will rehabilitate existing sanitary sewer lines via pipe bursting methods and replace or install new manholes along streets that are planned to be rehabilitated at a later date. On August 24, 2023, four (4) bids were received for furnishing all labor, materials, and equipment for the project. The Engineer’s Estimate for the contract is $2,290,561.60. The bid totals are indicated in the table below: Contractor Location Total Bid Amount King Solution Services, LLC Houston, TX $2,210,675.00 Lopez Utilities Contractor, LLC Houston, TX $2,303,675.00 To-Mex Construction, LLC Houston, TX $2,547,746.20 Vortex Services, LLC Houston, TX $2,942,937.50 Based on a review of the bids and required documents received, the Water Utilities staff recommend awarding the project to the lowest bidder, King Solution Services, LLC, in the amount of $2,210,675.00. A total of 270 calendar days are allocated for substantial completion of the project. Funds will come from the American Rescue Fund. Approval of the Resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH KING SOLUTIONS SERVICES, LLC, OF HOUSTON, TEXAS IN THE AMOUNT OF $2,210,675.00. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-247 10. Council to consider the adoption of the disaster declaration issued by the Mayor on September 8, 2023. The Governor of the State of Texas issued a disaster proclamation on July 8, 2023, certifying that exceptional drought conditions posed a threat of imminent disaster in several counties, including Jefferson County. On August 14, 2023, the City initiated Stage 2 drought restrictions pursuant to Article 22.06 Drought Contingency Plan of the City Code of Ordinances. After several weeks of continued lack of rain and excessive heat the City of Beaumont has had to increase drought restrictions to Stage 3. The city has Minutes - September 12, 2023 experienced several major and minor water leaks, and the demand for water has increased. Approval of the ordinance. Councilmember Neild moved to ADOPT AN ORDINANCE DECLARING AN EMERGENCY UNTIL THE STATE OF DISASTER IS TERMINATED; PROVIDING NOTICE; PROVIDING A PENALTY; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Mayor Pro Tem Turner seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED ORDINANCE 23-070 WORK SESSION Council to conduct a Work Session to review and discuss adopting amendments to gaming site regulations and licensing. Mayor West 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) (Comments can be heard or seen on the City of Beaumont website at beaumonttexas.gov) None  Councilmembers/City Manager/City Attorney comments on various matters (Comments can be heard or seen on the City of Beaumont website at beaumonttexas.gov) COUNCILMEMBER COMMENTS COUNCILMEMBER TEM DURIO - COUNCILMEMBER GETZ - MAYOR PRO TEM TURNER - COUNCILMEMBER FELDSCHAU - COUNCILMEMBER SAMUEL - COUNCILMEMBER NEILD - CITY ATTORNEY REED - Minutes - September 12, 2023 CITY MANAGER WILLIAMS - CITY CLERK BROUSSARD- MAYOR WEST - EXECUTIVE SESSION Consider matters related to the contemplated or pending litigation in accordance with Section 551.087 of the Government Code to wit; specifically: Projects Linde, Gemstone and Zero Open session of meeting recessed at 4:18 p.m. Roy West, Mayor Tina Broussard, City Clerk B TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Emily Wheeler, Director of Event Services MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution approving an agreement with Triangle Stagecraft, Inc., for skilled temporary workers utilized in the Event Services Department. BACKGROUND Triangle Stagecraft, of Port Neches, provides skilled temporary workers to load, unload, set up and take down equipment needed for a variety of events and performances. They are the only local source for providing these services. The Event Services Department and their clients utilize these services on an as needed basis for various events held at City venues. In FY22, a total of $238,113.53 was spent with Triangle Stagecraft. However, of that total, all but $50,603.72 was recouped from the various productions as part of their agreements. The continued agreement is a one-year contract, with the option to renew for two (2) one (1) year terms, with no increase allowed during the term of the contract. The agreement has been reviewed by Legal, and all parties agree to the listed terms. FUNDING SOURCE Event Services. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an agreement with Triangle Stagecraft, Inc., of Port Neches, Texas for skilled temporary workers utilized in the Event Services Department for one (1) year, with the option to renew for two (2) one (1) year terms, with no increase allowed during the term of the contract. 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 19th day of September, 2023. - Mayor Roy West - Page 1 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 LETTER OF UNDERSTANDING BETWEEN TRIANGLE STAGECRAFT, INC. AND CITY OF BEAUMONT This Letter of Understanding is made this 5TH day of NOVEMBER, 2023, by and between Triangle Stagecraft, Inc. (Triangle Stagecraft) and City of Beaumont, Beaumont, Texas (City). Triangle Stagecraft is to provide temporary workers for the following services on an as-needed basis for the City of Beaumont. This Letter of Understanding supersedes any previously executed Agreement. The terms and conditions of this Letter of Understanding follow. 1. PAYMENT FOR WORKERS All temporary workers provided by Triangle Stagecraft will be billed/paid at the hourly rate included in this Letter of Understanding. There will be an additional charge of one and one- half times (x 1.5) the applicable straight time rate for hours worked between 12:00 Midnight and 8:00 A.M. and/or after eight (8) consecutive hours. For pay purposes, ten (10) minutes of an hour constitutes one (1) hour billed/paid. 2. ADMINISTRATIVE CHARGE The hourly rates shall include an additional twenty-five percent (25%) to cover Workers’ Comp Insurance, Liability Insurance, and Payroll Costs. A Certificate of Workers’ Compensation Insurance, as well as other insurances as required by the City, will be provided by Triangle Stagecraft to the City. 3. CALL MINIMUMS The minimum call is three (3) hours for load-ins, load-outs. Rehearsals and shows have a three (3) hour minimum beginning with a one (1) hour advance call-back time. 4. STEWARD/SUPERVISOR A dedicated supervisor is required for calls of fifteen (15) or more workers. 5. LOADERS A minimum of four (4) loaders are required on all semi-trucks, and two (2) loaders are required on bob-tail trucks. 6. RIGGERS When riggers are requested, there shall be a minimum call of two (2) riggers. Page 2 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 7. REHEARSALS AND PERFORMANCE RATES Rehearsal and performance rates are based on a three (3) hour minimum, beginning with a one (1) hour advance call-back time. Any additional hours after five (5) hours without a one (1) hour meal break, shall be charged at one and one-half (x 1.5) the applicable hourly rate. 8. HOLIDAYS Holiday pay will be at time and one-half (x1.5) the regular rate at appropriate times. Holiday pay will be applied for all Triangle Stagecraft workers that work on the following holidays: New Year’s Day Labor Day Martin Luther King, Jr. Birthday Veterans Day Easter Sunday Thanksgiving Day Memorial Day Day after Thanksgiving Day Juneteenth Christmas Eve Fourth of July Christmas Day 9. MEAL PERIODS Meal Periods and Breaks will be coordinated between show Production Manager and Triangle Stagecraft Supervisor. All Triangle Stagecraft workers will receive a meal period of one (1) hour, not later than five (5) hours after commencement of work. 10. BREAKS Each Triangle Stagecraft worker shall receive a fifteen (15) minute break approximately two (2) hours into the load in. 11. UNIFORMS Uniforms must have a company logo or other means of identifying workers. COMPANY ID MUST BE WORN OVER ANY WEATHER GEAR. 12. HAZARDOUS CONDITIONS Hazardous conditions exist when a Triangle Stagecraft worker is working over thirty (30) feet above the floor and/or truss focusing while climbing, not to include working in loading bridges, fly floors, gridirons or any safety walk over thirty (30) inches in width that is enclosed with permanent safety railing. In hazardous locations, basic safety systems such as OSHA approved lifeline and fall restraint systems must be present or Triangle Stagecraft workers will not be allowed to work there. 13. TERM FOR LETTER OF AGREEMENT This letter of Agreement shall be in effect for a period of one (1) year beginning NOVEMBER 5, 2023, with the option to renew for two (2) one (1) year terms, for a total of three (3) years. Any renewals will be subject to the same terms and conditions referenced in this Agreement. Renewals will be offered through an extension letter generated by the City of Beaumont and Page 3 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 approval with signature provided by Triangle Stagecraft. The hourly rate shall remain fixed for a period of three (3) years from the start of this Agreement. Any increases in the hourly rate after the original term must be agreed by the City and Triangle Stagecraft and be provided in Amendment to this Agreement. 14. TERMINATION OF AGREEMENT This Agreement may be terminated for any reason by either Triangle Stagecraft or the City of Beaumont upon providing thirty (30) days’ written notice to the other party. 15. INDEMNITY Triangle Stagecraft agrees to indemnify and save harmless the City of Beaumont and its officers, agents and employees from any and all claims, causes or action and damages of every kind, for injury to or death of any person and damages to property arising out of or in connection with the work done by Triangle Stagecraft under this Agreement, and including acts or omissions of the City of Beaumont or its officers, agents or employees in connection with said Agreement. The requirements of this paragraph shall survive the termination of this Agreement. 16. INSURANCE Triangle Stagecraft shall obtain and maintain in full force and effect for the duration of this Agreement, and any extension hereof, at Triangle Stagecraft’s sole expense, insurance coverage called for in Exhibit “A” attached hereto. Triangle Stagecraft shall require its insurance agent provider such insurance to complete City-approved Certificate of Insurance forms. The requirements of this paragraph shall survive the termination of this Agreement. 17. CONTACT INFORMATION TRIANGLE STAGECRAFT, INC. CITY OF BEAUMONT 681 Ridgewood Drive Finance Dept./Purchasing Division Port Neches, TX 77651 Physical Address: Phone: 409-626-1880 801 Main Street, Suite 315 Fax: 409-729-0578 Beaumont, TX 77701 Mailing Address: P. O. Box 3827 Beaumont, TX 77704-3827 Phone: 409-880-3720 Page 4 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date set forth within this Agreement. AGREED AND ACCEPTED: AGREED AND ACCEPTED: TRIANGLE STAGECRAFT, INC. CITY OF BEAUMONT By: ______________________________ By: ____________________________ (Signature) (Signature) Name: James B. Strawther Name: Kenneth R. Williams Title: Operations Manager Title: City Manager Date: ________________________________ Date: ______________________________ Page 5 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 LETTER OF UNDERSTANDING BETWEEN TRIANGLE STAGECRAFT, INC. AND CITY OF BEAUMONT _________________________________________________________________________ POSITION RATE PER HOUR * ** Supervisors / Electricians $36.39 Riggers $46.73 Stage Technicians (all other positions) $28.78 * RATES EFFECTIVE NOVEMBER 5, 2023. ** Hourly rates include twenty-five percent (25%) to cover insurance and payroll costs. Page 6 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 EXHIBIT “A” Letter of Understanding Between Triangle Stagecraft, Inc. and City of Beaumont _____________________________________________________________ ATTACHMENT “A” (Revised 10/12/2021) ____________________________________________________________________________________________________________ INSURANCE SECTION A. Prior to the approval of this contract by the City, CONTRACTOR shall furnish a completed Insurance Certificate to the Purchasing office. The certificate shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits (on a form approved and provided by the City), and termination provisions shown thereon, and shall furnish and contain all required information referenced or indicated thereon. CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH CERTIFICATE IS RECEIVED BY THE CITY OF BEAUMONT'S PURCHASING DIVISION, and no officer or employee of the City shall have authority to waive this requirement. INSURANCE COVERAGE REQUIRED SECTION B. CITY reserves the right to review the insurance requirements of this section during the effective period of the contract and to adjust insurance coverages and their limits when deemed necessary and prudent by CITY, based upon changes in statutory law, court decisions, or the claims history of the industry as well as the CONTRACTOR. SECTION C. Subject to CONTRACTOR'S right to maintain reasonable deductibles in such amounts as are approved by CITY, CONTRACTOR shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at CONTRACTOR'S sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to CITY, in the following type(s) and amount(s): TYPE AMOUNT 1. Workers' Compensation and Statutory Employer’s Liability NOTE: For building or construction projects, and services provided at City-owned facilities, the successful Contractor shall meet the minimum requirements defined in the Texas Workers' Compensation Commission Rule 28 TAC '110.110 which follows this insurance attachment. 2. Commercial General (public) Liability including coverage for the following: a. Premises operations Combined single limit for bodily injury and b. Independent contractors and property damage of $500,000 per c. Products/completed operations occurrence or its equivalent with an aggregate d. Personal injury limit of $1,000,000. e. Advertising injury f. Contractual liability g. Medical payments h. Professional liability* i. Underground hazard* j. Explosion and collapse hazard* k. Liquor liability* l. Fire legal liability* m. City's property in Contractor's* care, custody, or control n. Asbestos specific liability* Page 7 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 * Not required for this contract 3. Comprehensive Automobile Liability Combined single limit for bodily injury and insurance, including coverage for loading property damage of $500,000 per occurrence and unloading hazards, for: or equivalent. a. Owned/leased vehicles b. Non-owned vehicles c. Hired vehicles 4. Errors and Omissions Provide a prudent amount of coverage for the insurance policy willful or negligent acts or omissions of any (when applicable) officers, employees or agents thereof. ADDITIONAL POLICY ENDORSEMENTS CITY shall be entitled, upon request, and without expense, to receive copies of the policies and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by CITY, CONTRACTOR shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. REQUIRED PROVISIONS CONTRACTOR agrees with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions. a. Name, the City of Beaumont and its officers, employees, and elected representatives as additional insured(s), (as the interest of each insured may appear) to all applicable coverage. b. Provide for 30 days’ notice to City for cancellation, non-renewal, or material change. c. Provide for notice to City at the address shown below by registered mail. d. CONTRACTOR agrees to waive subrogation against the City of Beaumont, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance. e. Provide that all provisions of this agreement concerning liability, duty, and standard of care together shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. f. For coverages that are only available with claims made policies, the required period of coverage will be determined by the following formula: Continuous coverage for the life of the contract, plus one year (to provide coverage for the warranty period) and an extended discovery period for a minimum of five (5) years which shall begin at the end of the warranty period. NOTICES CONTRACTOR shall notify CITY in the event of any change in coverage and shall give such notices not less than thirty (30) days prior to the change, which notice must be accompanied by a replacement CERTIFICATE OF INSURANCE. All notices shall be given to CITY at the following address: Purchasing Division City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Page 8 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 SECTION D. Approval, disapproval, or failure to act by CITY regarding any insurance supplied by CONTRACTOR shall not relieve CONTRACTOR of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate CONTRACTOR from liability. Page 9 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 WORKERS COMPENSATION INSURANCE for Building or Construction Projects and Services Provided at City-Owned Facilities TEXAS WORKERS' COMPENSATION COMMISSION RULE 28, '110.110 ************************************************************************************************* As required by the Texas Workers' Compensation Rule 28, '110.110, the Contractor shall accept the following definitions and comply with the following provisions: Workers' Compensation Insurance Coverage A. Definitions: 1. Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. 2. Duration of the project-includes the time from the beginning of the work on the project until the Contractor's/person's work on the project has been completed and accepted by the City of Beaumont. 3. Persons providing services on the project ("subcontractor" in '406.096) - includes all persons or entities performing all or part of the services the Contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the Contractor and regardless of whether that person has employees. This includes, without limitation, independent Contractors, subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The Contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the Contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the City of Beaumont prior to being awarded the contract. D. If the coverage period shown on the Contractor's current certificate of coverage ends during the duration of the project, the Contractor must, prior to the end of the coverage period, file a new certificate of coverage with the City of Beaumont showing that coverage has been extended. E. The Contractor shall obtain from each person providing services on a project, and provide to the City of Beaumont: 1. A certificate of coverage, prior to that person beginning work on the project, so the City of Beaumont will have on file certificates of coverage showing coverage for all persons providing services on the project; and 2. No later than seven (7) days after receipt by the Contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The Contractor shall retain all required certificates of coverage for the duration of the project and for one (1) year thereafter. G. The Contractor shall notify the City of Beaumont in writing by certified mail or personal delivery, within ten (10) days after the Contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. Page 10 – Theatrical Workers Contract – TF0903-63 – Contract Extension 2023 H. The Contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The Contractor shall contractually require each person with whom it contracts to provide services on a project, to: 1. Provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project; 2. Provide to the Contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project. 3. Provide the Contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 4. Obtain from each other person with whom it contracts, and provide to the Contractor: a. A certificate of coverage, prior to the other person beginning work on the project; and b. A new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project. 5. Retain all required certificates of coverage on file for the duration of the project and for one (1) year thereafter; 6. Notify the City of Beaumont in writing by certified mail or personal delivery, within ten (10) days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and 7. Contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the Contractor is representing to the City of Beaumont that all employees of the Contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the Contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The Contractor's failure to comply with any of these provisions is a breach of contract by the Contractor which entitles the City of Beaumont to declare the contract void if the Contractor does not remedy the breach within ten (10) days after receipt of notice of breach from the City of Beaumont. As defined by the Texas Labor Code, Chapter 269, Section 406.096(e), building or construction is defined as: 1. Erecting or preparing to erect a structure, including a building, bridge, roadway, public utility facility, or related appurtenance; 2. Remodeling, extending, repairing, or demolishing a structure; or 3. Otherwise improving real property or an appurtenance to real property through similar activities. The employment of a maintenance employee who is not engaging in building or construction as the employer's primary business does not constitute engaging in building or construction. Page 11 – Theatrical Workers Contract – TF0903-63 CITY OF BEAUMONT INSURANCE REQUIREMENT AFFIDAVIT To be Completed By Appropriate Insurance Agent and submitted with bid proposal. I, the undersigned Agent/Broker, certify that the insurance requirements contained in this bid document have been reviewed by me with the below identified Contractor. If the below identified Contractor is awarded this contract by the City of Beaumont, I will be able to, within ten (10) days after being notified of such award, furnish a valid insurance certificate to the City meeting all of the requirements defined in this bid. Agent (Signature) Agent (Print) Name of Agency/Broker: Address of Agent/Broker: City/State/Zip: Agent/Broker Telephone #: ( ) CONTRACTOR'S NAME: (Print or Type) NOTE TO AGENT/BROKER If this time requirement is not met, the City has the right to invalidate the bid award and award the contract to the next lowest bidder meeting specifications. Should an awarded bid be invalidated the Contractor may be liable for breach of contract. If you have any questions concerning these requirements, please contact the Purchasing Manager for the City of Beaumont at (409) 880-3720. Page 12 – Theatrical Workers Contract – TF0903-63 Form No. COB1 CERTIFICATE OF INSURANCE Edition Date: 12/12/2018 Page 1 of 4 This form is for informational purposes only and certifies that policies of insurance listed below have been issued to insured named below and are in force at this time. Notwithstanding any requirements, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, insurance afforded by policies described herein is subject to all terms, exclusions and conditions of such policies. Prior to the beginning of work, the vendor shall obtain the minimum insurance and endorsements specified. Agents must complete the form providing all requested information and submit by fax, U.S. mail or e-mail as requested by the City of Beaumont (“COB”). The endorsements listed below are required as attachments to this certificate; copies of the endorsements are also acceptable. PLEASE ATTACH ALL ENDORSEMENTS TO THIS FORM AND INCLUDE THE MATCHING POLICY NUMBER ON THE ENDORSEMENT. Only City of Beaumont certificates of insurance are acceptable; commercial carriers’ certificates are not. This certificate shall be completed by a licensed insurance agent: Page 13 – Theatrical Workers Contract – TF0903-63 Name and Address of Agency: ________________________________________ ________________________________________ _______________________________________ Phone: /__________________________ Name and Address of Insured: ________________________________________ ________________________________________ ________________________________________ Phone: / _______ Prime or Sub-Contractor: _ ______ Name of Prime Contractor, if different from Insured: _________________________________________ City of Beaumont Reference: Project Name: _____________________________ Project Location: ____________________________ __________________________________________ Managing Dept.: ____________________________ Project Mgr.: _______________________________ Insurers Affording Coverages: __________________________________________ Insurer A __________________________________________ Insurer B __________________________________________ Insurer C __________________________________________ Insurer D Form No. COB1 CERTIFICATE OF INSURANCE Edition Date: 12/12/2018 Page 2 of 4 INSR LTR TYPE OF INSURANCE POLICY NO. POLICY EFF. DATE (MM/DD/YYYY) POLICY EXP. DATE (MM/DD/YYYY) LIMITS OF LIABILITY Commercial General Liability Policy As defined in the Policy, does the Policy provide: Each Occurrence $ General Aggregate $ G Yes G No – Completed Operations/Products Completed Operations/ Products Aggregate $ G Yes G No – Contractual Liability Personal & Advertising Injury $ Page 14 – Theatrical Workers Contract – TF0903-63 G Yes G No – Explosion Deductible or Self Insured Retention $ G Yes G No – Collapse G Yes G No – Underground G Yes G No – Contractors / Subcontractors Work G Yes G No – Aggregate Limits per Project Form - CG 2503 0509 or Equivalent G Yes G Yes G No – Additional Insured Form (not construction) - CG 2010 1001 or Equivalent G Yes G Yes G No – Completed Operations Additional Insured Form (construction only) - CG 2037 1001 or Equivalent G Yes G Yes G No – 30 Day Notice of Cancellation Form - CG 2804 1093 or Equivalent G Yes G Yes G No – Waiver of Subrogation Form - CG 2404 0509 or Equivalent G Yes INSR LTR TYPE OF INSURANCE POLICY NO. POLICY EFF. DATE (MM/DD/YYYY) POLICY EXP. DATE (MM/DD/YYYY) LIMITS OF LIABILITY Pollution / Environmental Impairment Policy Occurrence $ Aggregate $ INSR LTR TYPE OF INSURANCE POLICY NO. POLICY EFF. DATE (MM/DD/YYYY) POLICY EXP. DATE (MM/DD/YYYY) LIMITS OF LIABILITY Commercial Auto Liability Policy As defined in the Policy, does the Policy provide: CSL $ Bodily Injury (Per Incident) $ G Yes G No – Any Auto Bodily Injury (Per Person) $ G Yes G No – All Owned Autos Property Damage (Per Accident) $ Form No. COB1 CERTIFICATE OF INSURANCE Edition Date: 12/12/2018 Page 3 of 4 G Yes G No – Non-Owned Autos G Yes G No – Hired Autos G Yes G No – Waiver of Subrogation - CA0444 0410 or Equivalent G Yes G Yes G No – 30 Day Notice of Cancellation - CA0244 or Equivalent G Yes Page 15 – Theatrical Workers Contract – TF0903-63 G Yes G No INSR LTR TYPE OF INSURANCE POLICY NO. POLICY EFF. DATE (MM/DD/YYYY) POLICY EXP. DATE (MM/DD/YYYY) LIMITS OF LIABILITY Excess Liability G Umbrella Form G Excess Liability Follow Form Occurrence $ Aggregate $ Workers Compensation & Employers Liability As defined in the Policy, does the Policy provide G Statutory Each Accident $ G Yes G No – Waiver of Subrogation - WC420304 Disease - Policy Limit $ G Yes G No – 30 Day Notice of Cancellation - WC420601 Disease - Each Employee $ Is a Builders Risk or Installation Insurance Policy provided? G Yes G No $ G Yes G No – Is the City shown as loss payee/mortgagee? Professional Liability As defined in the Policy, does the Policy provide: Each Claim $ G Yes G No – 30 Day Notice of Cancellation Retroactive Date: Deductible or Self Insured Retention $ Form No. COB1 CERTIFICATE OF INSURANCE Edition Date: 12/12/2018 Page 4 of 4 Page 16 – Theatrical Workers Contract – TF0903-63 AGENT CERTIFICATION: THIS IS TO CERTIFY TO THE CITY OF BEAUMONT that the insurance policies above are in full force and effect. Name of Insurance Company: Name of Authorized Agent: Company Address: Agent’s Address: City: State: Zip: City: State: Zip: Authorized Agent’s Phone Number (including Area Code): Original signature of Authorized Agent: X ___________________________________________ Date: CERTIFICATE HOLDER: DATE ISSUED: ____________________________ City of Beaumont _________________________________________ P. O. Box 3827 AUTHORIZED REPRESENTATIVE SIGNATURE Beaumont, Texas 77704-3827 Licensed Insurance Agent Printed Name: _____________________________ Page 17 – Theatrical Workers Contract – TF0903-63 C TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase I. BACKGROUND Golden Triangle Storage has approached the City about entering an Industrial Development Agreement to offer economic incentives to develop 5 underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 construction workers during construction and up to 7 permanent employees. Phase I will construct 1 cavern for the storage of helium, with an estimated investment of $45 million. The terms of the agreement will provide a 100% abatement period of 15 years. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Golden Triangle Storage LLC – Phase I. 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 19th day of September, 2023. - Mayor Roy West - 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 Golden Triangle Storage, LLC, its parent, subsidiaries and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering a project to develop additional underground storage caverns with the intent to expand its operation and further develop new and existing mid-stream energy storage assets, possibly in the Industrial District, but is considering other locations for this investment; and, WHEREAS, if Company does develop the assets in the industrial district, it will be mutually- advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ICONTINUED ON NEXT PAGE) ARTICLE I COMPANY'S COMMITMENT 1. Company will develop five underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 peak construction workers during construction and up to 7 new permanent employees. Because the caverns will be developed in four phases with construction on each successive phase starting a year after the previous phase, each phase will be the subject of a separate Industrial District Agreement. This Agreement pertains only to phase 1, construction of a cavern for the storage of helium, with an investment of $45 million. 2. Company will receive 100 percent tax abatement for payments due for the fifteen (15) tax years beginning January 1, 2026 (taxes due February 1, 2027) or the tax years immediately following completion of construction and commissioning, whichever is earlier. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 3. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 4. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the Phase 1 cavern as described in Article I of this Agreement and does not govern and affect other properties of Company affiliates that are subject to industrial district agreements that were in effect prior to execution of this Agreement. ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) tax years beginning January 1, 2026 (taxes due February 1, 2027) or the tax year immediately following completion of construction and commissioning, whichever is earlier, and ending on December 31 fifteen (15) tax years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 David Saindon Golden Triangle Storage LLC 919 Milam Street, Suite 2425 Houston, Texas 77002 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. GOLDEN TRIANGLE STORAGE, LLC. CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk D TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase II. BACKGROUND Golden Triangle Storage has approached the City about entering an Industrial Development Agreement to offer economic incentives to develop 5 underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 construction workers during construction and up to 7 permanent employees. Phase II will construct 2 caverns for the storage of natural gas and other energy assets, with an estimated investment of $125 million. The terms of the agreement will provide a 100% abatement period of 15 years. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Golden Triangle Storage LLC – Phase II. 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 19th day of September, 2023. - Mayor Roy West - 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 Golden Triangle Storage, LLC, its parent, subsidiaries and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering a project to develop additional underground storage caverns with the intent to expand its operation and further develop new and existing mid-stream energy storage assets, possibly in the Industrial District, but is considering other locations for this investment; and, WHEREAS, if Company does develop the assets in the industrial district, it will be mutually- advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ICONTINUED ON NEXT PAGE) ARTICLE I COMPANY'S COMMITMENT 1. Company will develop five underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 peak construction workers during construction and up to 7 new permanent employees. Because the caverns will be developed in four phases with construction on each successive phase starting a year after the previous phase, each phase will be the subject of a separate Industrial District Agreement. This Agreement pertains only to phase 2, construction of two caverns for the storage of natural gas and other energy assets, with an investment of $125 million. 2. Company will receive 100 percent tax abatement for payments due for the fifteen (15) tax years beginning January 1, 2027 (taxes due February 1, 2028) or the tax years immediately following completion of construction and commissioning, whichever is earlier. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 3. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 4. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the Phase 1 cavern as described in Article I of this Agreement and does not govern and affect other properties of Company affiliates that are subject to industrial district agreements that were in effect prior to execution of this Agreement. ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) tax years beginning January 1, 2027 (taxes due February 1, 2028) or the tax year immediately following completion of construction and commissioning, whichever is earlier, and ending on December 31 fifteen (15) tax years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 David Saindon Golden Triangle Storage LLC 919 Milam Street, Suite 2425 Houston, Texas 77002 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. GOLDEN TRIANGLE STORAGE, LLC. CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk E TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase III. BACKGROUND Golden Triangle Storage has approached the City about entering an Industrial Development Agreement to offer economic incentives to develop 5 underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 construction workers during construction and up to 7 permanent employees. Phase III will construct 1 cavern for the storage of energy assets, with an estimated investment of $35 million. The terms of the agreement will provide a 100% abatement period of 15 years. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Golden Triangle Storage LLC – Phase III. 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 19th day of September, 2023. - Mayor Roy West - 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 Golden Triangle Storage, LLC, its parent, subsidiaries and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering a project to develop additional underground storage caverns with the intent to expand its operation and further develop new and existing mid-stream energy storage assets, possibly in the Industrial District, but is considering other locations for this investment; and, WHEREAS, if Company does develop the assets in the industrial district, it will be mutually- advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ICONTINUED ON NEXT PAGE) ARTICLE I COMPANY'S COMMITMENT 1. Company will develop five underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 peak construction workers during construction and up to 7 new permanent employees. Because the caverns will be developed in four phases with construction on each successive phase starting a year after the previous phase, each phase will be the subject of a separate Industrial District Agreement. This Agreement pertains only to phase 3, construction of a cavern for the storage of energy assets, with an investment of $35 million. 2. Company will receive 100 percent tax abatement for payments due for the fifteen (15) tax years beginning January 1, 2028 (taxes due February 1, 2029) or the tax years immediately following completion of construction and commissioning, whichever is earlier. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 3. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 4. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the Phase 1 cavern as described in Article I of this Agreement and does not govern and affect other properties of Company affiliates that are subject to industrial district agreements that were in effect prior to execution of this Agreement. ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) tax years beginning January 1, 2028 (taxes due February 1, 2029) or the tax year immediately following completion of construction and commissioning, whichever is earlier, and ending on December 31 fifteen (15) tax years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 David Saindon Golden Triangle Storage LLC 919 Milam Street, Suite 2425 Houston, Texas 77002 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. GOLDEN TRIANGLE STORAGE, LLC. CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk F TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Golden Triangle Storage LLC – Phase IV. BACKGROUND Golden Triangle Storage has approached the City about entering an Industrial Development Agreement to offer economic incentives to develop 5 underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 construction workers during construction and up to 7 permanent employees. Phase IV will construct 1 cavern for the storage of hydrogen, with an estimated investment of $75 million. The terms of the agreement will provide a 100% abatement period of 15 years. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Golden Triangle Storage LLC – Phase IV. 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 19th day of September, 2023. - Mayor Roy West - 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 Golden Triangle Storage, LLC, its parent, subsidiaries and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering a project to develop additional underground storage caverns with the intent to expand its operation and further develop new and existing mid-stream energy storage assets, possibly in the Industrial District, but is considering other locations for this investment; and, WHEREAS, if Company does develop the assets in the industrial district, it will be mutually- advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ICONTINUED ON NEXT PAGE) ARTICLE I COMPANY'S COMMITMENT 1. Company will develop five underground storage caverns in a phased development with an anticipated investment of $280 million and will employ up to 160 peak construction workers during construction and up to 7 new permanent employees. Because the caverns will be developed in four phases with construction on each successive phase starting a year after the previous phase, each phase will be the subject of a separate Industrial District Agreement. This Agreement pertains only to Phase IV, construction of a cavern for the storage of hydrogen, with an investment of $75 million. 2. Company will receive 100 percent tax abatement for payments due for the fifteen (15) tax years beginning January 1, 2029 (taxes due February 1, 2030) or the tax years immediately following completion of construction and commissioning, whichever is earlier. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 3. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 4. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the Phase 1 cavern as described in Article I of this Agreement and does not govern and affect other properties of Company affiliates that are subject to industrial district agreements that were in effect prior to execution of this Agreement. ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) tax years beginning January 1, 2029 (taxes due February 1, 2030) or the tax year immediately following completion of construction and commissioning, whichever is earlier, and ending on December 31 fifteen (15) tax years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 David Saindon Golden Triangle Storage LLC 919 Milam Street, Suite 2425 Houston, Texas 77002 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. GOLDEN TRIANGLE STORAGE, LLC. CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk G TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Linde, Inc. BACKGROUND Linde, Inc. has approached the City about entering an Industrial Development Agreement to offer economic incentives for a new trucking terminal and related infrastructure as part of the Golden Triangle Storage Project with an anticipated investment of $115 million and will employ up to 135 construction workers during construction and up to 10 permanent employees. The terms of the agreement will provide a 100% abatement period of 15 years. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Linde Inc., of the Woodlands, 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 19th day of September, 2023. - Mayor Roy West – 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 Linde, Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering development of a trucking terminal with the intent to receive and distribute helium assets stored in an underground cavern developed, owned and operated by Golden Triangle Storage; and, WHEREAS, if Company does develop the facilities in the industrial district, it will be mutually advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I COMPANY'S COMMITMENT 1. Company will construct a trucking terminal and related infrastructure as part of the Golden Triangle Storage project with a construction cost of $115 million and will employ up to 135 peak construction workers during construction and up to 10 permanent employees. 2. Company will receive 100 percent tax abatement for payments due for the fifteen (15) tax years beginning January 1, 2027 (taxes due February 1, 2028) or the tax years immediately following completion of construction and commissioning, whichever is earlier. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 3. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 4. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the trucking terminal and related infrastructure (facilities, real, personal, and mixed) as described in Article I of this Agreement, and does not govern and affect other properties of Company affiliates that are subject to industrial district agreements that were in effect prior to execution of this Agreement. ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) tax years beginning January 1, 2027 (taxes due February 1, 2028) or the tax year immediately following completion of construction and commissioning, whichever is earlier, and ending on December 31 fifteen (15) tax years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Michael Ashton, Manager-Gov’t Affairs 1585 Sawdust Road, Suite 300 The Woodlands, Texas 77380 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. LINDE, INC. CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk H TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing an Industrial Development Agreement with Zero Parks Management LLC. BACKGROUND Zero Parks Management LLC has approached the City about entering an Industrial Development Agreement to offer economic incentives for a new green hydrogen manufacturing facility with an anticipated investment of $213 million and will employ up to 250 construction workers during construction and up to 17 permanent employees. The terms of the agreement will provide a 100% abatement period of 4 years followed by a 90% abatement period of 5 years. The company will make 2 annual payments in the amount of $75,000 beginning in calendar year 2026 and concluding in calendar year 2027. At the end of this agreement, the company agrees to enter into a standard Industrial District Agreement going forward. FUNDING SOURCE Not Applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS 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 enter into an Industrial Development Agreement with Zero Parks Management LLC. 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 19th day of September, 2023. - Mayor Roy West - 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 Zero Parks Management, LLC, its parent, subsidiaries, and affiliates, hereinafter called "COMPANY" and, together, the “Parties.” PREAMBLE WHEREAS, 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 (the “Industrial District”); and, WHEREAS, Company is considering development of a green hydrogen manufacturing and storage facility, possibly in the Industrial District, but is considering other locations for this investment; and, WHEREAS, if Company does develop the manufacturing facilities in the industrial district, it will be mutually advantageous to the Parties for the company to utilize local vendors and suppliers and extend opportunities for local contractors and sub-contractors to participate; and, WHEREAS, given the proposed investment amount, permanent job creation and other benefits, the City finds the terms of the Agreement to reasonable and appropriate; and, In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I COMPANY'S COMMITMENT 1. Company will construct a green hydrogen manufacturing and storage facility with an anticipated investment of $213 million and will employ up to 250 peak construction workers during construction and up to 17 permanent employees. 2. Company will receive a tax abatement based on the following schedule for tax years beginning January 1, 2026 (taxes due February 1, 2027) or the tax year immediately following completion of construction and commissioning, whichever is earlier. YEAR 1 100% YEAR 2 100% YEAR 3 100% YEAR 4 100% YEAR 5 90% YEAR 6 90% YEAR 7 90% YEAR 8 90% YEAR 9 90% 3. This abatement does not include the value of existing property owned by Company affiliates, which may be the subject of separate industrial district agreements. 4. The Company shall notify City in writing at least thirty (30) days prior to the date any construction that will be subject to abatement is scheduled to commence. 5. Company will make a good faith effort to utilize a diverse local workforce in constructing the project and will utilize established local contractor lists, including historically underutilized businesses and minority and women-owned businesses. 6. Company will make two annual payments to the City of $75,000 (seventy-five thousand dollars), beginning in calendar year 2026 and concluding in calendar year 2027. 7. At the expiration of this Agreement, which may not be renewed or extended, Company agrees to enter into a new Industrial district agreement with City containing City’s standard terms to encompass all of Company’s property and improvements in the Industrial District. ARTICLE II PROPERTY COVERED BY AGREEMENT It is the intention of the Parties hereto that this Agreement shall govern and affect only the green hydrogen manufacturing and storage facility (facilities, real, personal, and mixed) as described in Article I of this Agreement, and does not govern and affect other properties of Company affiliates that may be subject to industrial district agreements that were in effect prior to execution of this Agreement ARTICLE III SALE BY COMPANY 1. 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 any amounts to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. 2. Company shall have the right to assign, transfer or convey all, or any part of, its rights title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and assigns. 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 this 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 becomes effective if the annexation becomes effective after January 1 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, 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. The City will also provide police protection if called upon by the Jefferson County Sheriff’s Department for assistance. ARTICLE V TERMINATION FOR 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 TERM OF AGREEMENT The term of this Agreement shall be for nine (9) years, commencing tax year January 1, 2026 (taxes due February 1, 2027) or the tax year following completion of construction and commissioning, whichever is earlier, and ending on December 31 nine (9) years later. ARTICLE VII 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 City of Beaumont 801 Main Beaumont, Texas 77704 Fax: (409) 880-3132 E-mail:______________ Adam Cowan, Managing Director ZeroParks I LLC 111 W. 19th St. New York, NY 10011 ARTICLE VIII 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. IN WITNESS THEREOF, this Agreement, consisting of 6 pages, is executed in duplicate counterparts as of this __ day of___________________2023. ZERO CITY OF BEAUMONT, TEXAS By:______________________________ By:______________________________ ATTEST: Tina Broussard, City Clerk I TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the execution of a License to Encroach Agreement with Korey Jackson. BACKGROUND There is a structure located at 1447 Grand Street encroaching onto a twenty foot (20’) public alley in Lots 7-8, Block 1, North Addition. The structure encroaches 10.1’onto the 20’ alley. Planning and Zoning has approved the building for the demolition work program. Upon approval of the License to Encroach, the demolition work program will begin and be fully enforced. During the License to Encroach review process, Water Utilities Administration discovered that sewer service is not available to the site. In order to bring the building into compliance, the sewer line will need to be extended. The cost to extend the sewer line will cost approximately $17,000 to $20,000. The owner, Korey Jackson, has accepted the conditions and agrees with the cost. The request from Mr. Jackson was submitted to all city departments and utility companies with no objections. The City Utility Administration approved the license to encroach with the following conditions: The City of Beaumont will not be responsible for any damages to the structures if the sewer mains should ever develop a cavity or due to any repairs to the City mains by City crews or contractor crews hired by the City. The City of Beaumont shall not be responsible for the repair and replacement of the structure within the Easement property. The agreement will be filed in the County Clerk Office as permanent record. The License Agreement protects the City from liability and provides a thirty (30) day cancellation clause. FUNDING SOURCE There is a one time non-refundable fee of $500 for the License to Encroach. RECOMMENDATION Approval of the resolution. ATTACHMENTS Agenda - License to Encroach - 1774 Grand Street License to Encroach Agreement Exhibit A RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, Korey Jackson has requested that the City of Beaumont grant a License to Encroach into a City right of right-of-way, which is described as being a structure located at 1477 Grand Street encroaching onto a twenty foot (20’) public alley in Lots 7-8, Block 1, North Addition to the City of Beaumont. The structure encroaches 10.1’ onto the 20’ alley, as described in Exhibit “A,” attached hereto and made apart hereof for all purposes; and, WHEREAS, City staff has expended considerable time and effort in investigating the effect of such encroachment upon the City’s easement and utilities therein; and, WHEREAS, it appears that it would be equitable to allow such encroachment at this time; 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 a License to Encroach with Korey Jackson to encroach into the City right-of-way which is described as being a structure located at 1477 Grand Street encroaching onto a twenty foot (20’) public alley in Lots 7-8, Block 1, North Addition to the City of Beaumont. The structure encroaches 10.1’ onto the 20’ alley, as described in Exhibit “A,” attached hereto and made apart 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 19th day of September, 2023. - Mayor Roy West - Page 1 of 4 LICENSE TO ENCROACH STATE OF TEXAS § § ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § On the date last indicated below, the City of Beaumont, a municipal corporation, of Beaumont, Jefferson County, Texas, herein called "Licensor" and Korey Jackson, owner, hereinafter called "Licensee", contracted and agreed as set forth herein. Licensee desires a license from Licensor to use that real property (the subject of this license agreement) described as follows: Said encroachment being a structure encroaches 10.1’ onto the 20’ alley in Lots 7-8, Block 1, North Addition (1447 Grand Street). Said encroachment is shown on Exhibit "A", attached. Subject property may continue to be occupied and used by Licensee solely in connection with the existing structures and for incidental purposes related thereto during the term of this license or until termination thereof. Said license shall terminate upon removal or demolition of said encroachment. Substantial improvements shall not be made upon any encroachment without first obtaining the written consent of Licensor and giving notice to Licensor in writing of how, when and to what extent such improvements are to be made. A copy of this license shall be attached to such notice. Substantial improvement means any repair, construction, or improvement of a structure, the cost of which equals or exceeds twenty-five percent (25%) of the market value of the structure either: (1) before the improvement or repair is started; or (2) if the structure has been damaged and is being restored, before the damage occurred. For the purposes of this definition, "substantial improvement" is considered to occur when the first alteration of any portion of the structure commences, whether or not that alteration affects the external dimensions of the structure. The term does not, however, include any projects or improvements of a structure to comply with existing state or local health, sanitary, or safety code specifications which are solely necessary to protect the health, safety and welfare of the public, inhabitants, or users of such structure. In the event the City of Beaumont, by resolution of the City Council, determines it needs the subject property, or any part thereof, for the benefit of the City or to protect the health, safety or welfare of the public, and it terminates this license or any part thereof, Licensee shall not receive any compensation and the City of Beaumont shall not be liable therefore, whether for the value of property taken, damage to the abutting or remaining property or improvement, loss of business or profit, loss of access, or otherwise. Page 2 of 4 The City Utility Administration approved the license to encroach with the following conditions: The City of Beaumont will not be responsible for any damages to the structure if the sewer mains should ever develop a cavity or due to any repairs to the City mains by City crews or contractor crews hired by the City. The City of Beaumont shall not be responsible for the repair and replacement of the structures within the Easement property. Licensee shall at all times indemnify and hold harmless Licensor and any franchised entity of licensor against, and pay in full, for all claims, losses, damages, law suits, attorney's fees, costs, judgments or expenses, that Licensor and any franchised entity of Licensor may sustain, incur, be required to pay or become liable for, resulting in any manner from the construction, maintenance, use, state of repair, or presence of such encroaching structure. Licensor, and any franchised entity of Licensor, reserves the right to make improvements, perform maintenance and construction to the right-of-way or premises covered by this license where such is deemed necessary for the health, welfare and safety of the community. In doing so, Licensor and any franchised entity of Licensor shall not be liable to Licensee for any damage occasioned thereby and Licensee shall not be entitled to prosecute or maintain a claim against such parties for any such damage sustained by Licensee to said encroaching structure or any abutting or attached structures, improvements or land caused by the removal or alteration of any encroachment. In addition, Licensee shall reimburse Licensor and any franchised entity of Licensor any additional costs resulting from the encroachment. Licensor will not be responsible for any damages to the structures if the sanitary sewer line or the storm sewer should ever develop a cavity or due to any repairs to the Licensor main by Licensor crews. The Licensor shall not be responsible for the repair and replacement of any paving or other structures within the Easement property. Licensee shall not permit trees, shrubs, plants, or any object to be placed on the subject property in such a manner as to obstruct the view of traffic. In addition, Licensor will not be responsible for any damages to the structure if the sewer main should ever develop a cavity or due to any repairs to the Licensor main by Licensor crews. As part of the consideration for this agreement, Licensee shall pay to Licensor the sum of Five Hundred Dollars ($500.00). Said sum being non-refundable. This license shall be recorded in the Real Property Records in the Office of the County Clerk of Jefferson County, Texas by Licensor. This agreement is terminable by either party by giving written notice to the other specifying the date of termination. Said notice shall be given not less than thirty (30) days prior to the termination date, therein specified, and shall be recorded in the Real Property Records in the Office of the County Clerk of Jefferson County, Texas by Licensor. Page 3 of 4 This license is neither assignable nor transferable except in conjunction with, and as part of, Licensee's conveyance of all the abutting property this license serves, through probate or warranty deed or lease. In any such event, Licensor shall be notified of such occurrence by being delivered a copy of the document or documents conveying or leasing the same. Any notice to Licensor shall be sufficient if it is mailed or hand delivered to the Office of the City Engineer, City of Beaumont, P. O. Box 3827, Beaumont, Texas 77704. Any notice to Licensee or their successors shall be sufficient if mailed or hand delivered to Property Owner at 1790 Shady Circle, Beaumont, Texas 77707. IN WITNESS, WHEREOF, the parties hereto have executed this agreement as of the day of , 2023. LICENSOR: LICENSEE: CITY OF BEAUMONT By: By: ____________________________ Kenneth R. Williams, City Manager Korey Jackson {INTENTIONALLY LEFT BLANK} Page 4 of 4 ACKNOWLEDGMENTS STATE OF TEXAS § § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of , 2023, by Kenneth R. Williams, City Manager of the City of Beaumont, a municipal corporation, on behalf of said corporation. _____________________________ Notary Public, State of Texas STATE OF TEXAS § § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of , 2023, by Korey Jackson. ______________________________ Notary Public, State of Texas RETURN TO: City of Beaumont Antoinette Hardy - Engineering P. O. Box 3827 Beaumont, Texas 77704 G Yes G No – Additional Insured - CA2048 or Equivalent G Yes J TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: James Singletary, Chief of Police MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute all documents necessary to accept the project titled “Step Comprehensive Fiscal Year 2024.” BACKGROUND In January 1999, the City Council passed a resolution authorizing the City to apply for matching funds for traffic safety “Safe and Sober S.T.E.P.” grant project. The Police Department has successfully applied for and the City Council approved several traffic safety grants since that time. This grant application will provide funding for a single step grant program which occurs between October 1, 2023 and September 30, 2024 and would assist in enhancing the safety of the motoring public and reducing motor vehicle crashes, which often result in loss of life or personal injury. The grant would be in an amount not to exceed $89,970.00 from the Texas Department of Transportation with a City “match” funding of $27,818.72 as our portion of the costs for the project titled “Step Comprehensive Fiscal Year 2024.” FUNDING SOURCE City would receive grant funding in an amount not to exceed $89,970.00 with a city contribution of $27,818.72. RECOMMENDATION Approval of resolution. ATTACHMENTS Step Comprehensive Fiscal Year 2024 K TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution rejecting all responses for bid number MF0823-43 for a standby generator for the Parks Operation Center. BACKGROUND On Thursday, August 31, 2023, staff opened the sealed proposals for Bid No. MF0523-29, a Standby Generator at the Parks Operations Center located at 1370 Langham Road. Notifications of the bid opportunity were sent to forty vendors, with three responses. The low responsive bid received was $69,500 over the budgeted estimate. This was the second time to bid this project, with simultaneous high bids received. Staff will evaluate other options for pricing. Council is requested to reject all bids. FUNDING SOURCE N/A RECOMMENDATION Approval of the resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, the City requested sealed proposals for a standby generator for the Parks Operation Center; and, WHEREAS, due to budgetary constraints, staff is recommending the rejection of all bid; 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 reject all bids submitted for a standby generator for the Parks Operation Center. 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 19th day of September, 2023. - Mayor Roy West - L TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Dean Conwell, Director of Convention and Tourism MEETING DATE: September 19, 2023 REQUESTED ACTION: Consider authorizing the Beaumont Convention and Visitors Bureau to apply for grant monies from the Jefferson County Tourism Commission (JCTC), for $40,000 for partial payment of pollinator gardens off the nature trail at Tyrrell Park. BACKGROUND The Beaumont Convention and Visitors Bureau would like to apply for grant monies from the Jefferson County Tourism Commission for half the cost of planting pollinator pocket areas off of the nature trail to teach the importance of bees, butterflies, and birds. The Nature Trail connects the recently restored CCC Building to Cattail Marsh Wetlands. The Beaumont Convention and Visitors Bureau would like to enhance the visitor experience at Tyrrell Park by expanding on the trail to teach the importance of pollinators and native plants through interactive QR codes along the trail. FUNDING SOURCE None. RECOMMENDATION Administration recommends approval for the Beaumont Convention and Visitors Bureau to apply for grant monies from the Jefferson County Tourism Commission through the Jefferson County Hotel Occupancy tax in the amount of $40,000 to be used for the Tyrrell Park Nature Trail. ATTACHMENTS 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 apply for grant monies from the Jefferson County Tourism Commission (JCTC) in the amount of $40,000.00 to be used for partial payment of pollinator gardens off the nature trail at Tyrrell Park. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of September, 2023. - Mayor Roy West - M TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: James Singletary, Chief of Police MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute all documents necessary to accept new funding for the Southeast Texas Auto Theft Task Force. BACKGROUND The City of Beaumont has been the grantee for the Southeast Texas Auto Theft Task Force since 1993. The total budget that has been awarded is $889,335, with state funds in the amount of $711,619. The Beaumont Police Department will provide $117,716 as a cash match in the form of personnel salaries, benefits, fuel and vehicle maintenance, while other agencies will provide an additional $60,000 for a total cash match of $177,716. The upcoming grant cycle will begin on September 1, 2023 and will end on August 31, 2024. This grant application was previously approved by the City Council on May 9, 2023. FUNDING SOURCE The City's required match will be included in the Police Department's Operating Budget in the General Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS FY24 MVCPA Statement of Taskforce Grant Award and Grantee Acceptance Notice 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 all documents necessary to accept new funding for the Southeast Texas Auto Theft Task Force in the amount of $889,335.00. 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 19th day of September, 2023. - Mayor Roy West - N TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution approving an annual contract for grounds maintenance on Martin Luther King Jr. Parkway. BACKGROUND The City solicited bids for an annual contract for grounds maintenance on Martin Luther King Jr. Parkway. The contract is for one year with possible two, one-year extensions at the price bid. One hundred twenty-one invitations were sent out and four vendors submitted bids. Beaumont Products & Services provided the lowest qualified bid. See attached bid tabulation for all bid submissions. FUNDING SOURCE General Fund RECOMMENDATION Staff recommends awarding the contract to Beaumont Products & Services at an annual amount of $89,100, which is a 10.2% decrease in cost from the current contract. ATTACHMENTS Bid Tabulation RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, bids were solicited for an annual contract, for one (1) year with possibly two (2) one-year options to renew at the same pricing as the awarded contract, to provide grounds maintenance of Martin Luther King, Jr. Parkway; and, WHEREAS, Beaumont Products & Services, of Beaumont, Texas, submitted a bid in the amounts shown on Exhibit “A,” attached hereto, for an estimated total annual cost of $89,100.00; and, WHEREAS, the City Council is of the opinion that the bid submitted by Beaumont Products & Services, 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 bid submitted by Beaumont Products & Services, of Beaumont, Texas, for an annual contract, for one (1) year with possibly two (2) one-year options to renew at the same pricing as the awarded contract, to provide grounds maintenance of Martin Luther King, Jr. Parkway for an estimated total annual cost of $89,100.00 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 Beaumont Products & Services, 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 19th day of September, 2023. - Mayor Roy West - Bid Number DF0723-10 Addendum 3 City of Beaumont, Texas eBids Title Annual Contract for Grounds Maintenance at Martin Luther King Jr. Parkway Brenda Dean, Procurement Coodinator brenda.dean@beaumonttexas.gov Description The City of Beaumont requests bids for a contract to provide grounds (409) 880-3720 maintenance for the Martin Luther King, Jr. Parkway, Beaumont, Texas. (409) 880-3747 Issue Date 8/10/2023 03:00:05 PM (CT) Close Date 8/31/2023 02:00:00 PM (CT) Responding Supplier City State Response Submitted Response Total Bmt Products & Services, Inc. Beaumont TX 8/29/2023 07:15:14 AM (CT) $89,100.00 BST Solutions LLC Port Arthur TX 8/30/2023 09:40:49 PM (CT) $95,582.52 King Specialty Services LLC Kountze TX 8/29/2023 12:08:19 PM (CT) $103,818.00 Garden of Gethsemane Beaumont TX 8/30/2023 10:30:21 AM (CT) $114,840.00 Please note: Lines Responded and Response Total only includes responses to specification. No alternate response data is included. DF0723-10 Addendum 3 - Page 1 1 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Miles Haynes, Assistant to the City Manager/Special Projects MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider an ordinance authorizing the City Manager to approve the last stage in the Film Friendly Designation process. BACKGROUND On February 21, 2023 Council approved Resolution No.23-062 to apply for the Film Friendly program. The City of Beaumont is now Film Friendly Certified and the last step would be to approve an Ordinance establishing requirements and procedures for film production within the City limit of Beaumont, Texas, FUNDING SOURCE Not applicable. RECOMMENDATION Approval of Ordinance ATTACHMENTS ORDINANCE NO. ENTITLED AN ORDINANCE TO SET GUIDELINES FOR THE FILM FRIENDLY DESIGNATION PROCESS. BE IT ORDAINED BY THE CITY OF BEAUMONT: THAT the guidelines of the Film Friendly designation process be and the same is hereby to read as follows: Guidelines for Filming in Beaumont, Texas I. PURPOSE The Guidelines contained herein are intended to create a program for promoting economic development activity within the City of Beaumont and surrounding areas. The following Guidelines are also intended to protect the personal and property rights of Beaumont, Texas residents and businesses, and to promote public health, safety and welfare. The City Manager or their designee reserves the right to impose additional regulations in the interest of public health, safety and welfare, or if otherwise deemed appropriate by the City Manager or their designee. These Guidelines cover requests for commercial use of City-owned property (including but not limited to streets, rights-of-way, parks, and/or public buildings), commercial use of private property which may affect adjacent public or private property, and the use of City equipment and personnel in all types of motion picture production, including, but not limited to, feature films, television programs, commercials, music videos and corporate films. II. CITY CONTROL/CITY MANAGER OR DESIGNEE AUTHORITY The City Manager or their designee may authorize the use of any street, right-of-way, park, or public building, equipment or personnel for commercial uses in the filming or taping of movies, television programs, commercials, or training films and related activities. In conjunction with these uses, the City Manager or their designee may require that any or all of the conditions and/or remuneration herein and as specified on the application be met as a prerequisite to that use. The Applicant agrees that the City shall have exclusive authority to grant the Applicant the use of public streets, rights-of-way, parks and public buildings of the City, as well as authority to regulate the hours of production and the general location of the production. The City reserves the full and absolute right to prohibit all filming or to order cessation of filming in order to promote public health, safety or welfare. The Applicant shall allow City departments to inspect all structures, property, devices and equipment to be used in connection with the filming and taping, as deemed appropriate by the City Manager or their designee. III. PERMIT REQUIREMENTS Before filing an application for filming in Beaumont, the Special Events Coordination Team must be contacted to discuss the production's specific filming requirements and the feasibility of filming within the City. Any commercial producer who desires to undertake a commercial production within the City is required to complete and return an application for filming to the Special Events Coordination Team, within the time frames below: • Commercials or episodic television: a minimum of fifteen (15) business days prior to the commencement of filming or any substantial activity related to the project. • Feature films: a minimum of fifteen (15) business days prior to the commencement of filming or any substantial activity related to the project. • Road closure: a minimum of ten (10) business days prior to the commencement of filming or any substantial activity related to the project that requires public street closures. • Law Enforcement Personnel: a minimum of fifteen (15) business days prior to the commencement of filming or any substantial activity related to the project that includes law enforcement personnel. • City Equipment: a minimum of ten (10) business days prior to the commencement of filming or any substantial activity related to the project that includes City equipment. IV. APPLICATON FEE An application processing fee of $25.00 should accompany each application for filming within the City. The City Manager or their designee may waive this fee upon proof of an organization’s non-profit status or for any other reason deemed appropriate by the City Manager or their designee. V. USE OF CITY EQUIPMENT AND PERSONNEL The Applicant shall pay for all costs of any Police, Fire, Public Works, or other City personnel assigned to the project; whether or not specifically requested by the production. Remuneration rates for the use of any City equipment, including police cars and fire equipment, will be established on a case-by-case basis as determined by the City Manager or their designee. All permit and facility fees require advance payment upon receipt of approval confirmation. The City Manager or their designee may, at their discretion, require an advance deposit for all costs related to City personnel and/or the use of City equipment. The City Manager or their designee, in consultation with the Chief of Police and/or Fire Chief, shall have the authority to stipulate Fire or Police requirements and level of staffing, at any time during a film project if it is determined to be in the best interest of public health, safety and/or welfare, which cost shall be borne entirely by the Applicant. The City shall be reimbursed the full cost of police officers, firefighters, and any other City personnel. VI. USE OF CITY-OWNED REAL ESTATE The City Manager or their designee may authorize the use of any street, right-of-way, park or public building, use of the Beaumont, Texas name, trademark or logo and/or use of City equipment and/or personnel for commercial uses in motion picture production. In conjunction with these uses, the City Manager or their designee may require that any or all of the conditions and/or remuneration as specified herein and on the application be met as a prerequisite to that use. A security or damage deposit may be required within the discretion of the City Manager or their designee. The Applicant shall reimburse the City for inconveniences when using public property. Following is the rate schedule: Activity Cost per calendar day: Total or disruptive use (regular operating hours) of a public building, park, right-of-way, or public area $500 Partial, non-disruptive use of a public building, park, right-of-way, or public area $250 Total closure or obstruction of public street or right-of-way, including parking lots and on-street parking $50 Partial closure or obstruction of public street or right-of-way, including parking lots and on-street parking $25 Use of City parking lots, parking areas, and City streets (for the purpose of parking film trailers, buses, catering trucks, and other large vehicles) $50 The Applicant acknowledges and agrees that the City possesses and retains exclusive authority to grant the Applicant a revocable license for the use of its name, trademark, and logo, public streets, rights-of-way, parks and buildings of the City as well as control over the hours of production and the general location of the production. The City reserves the full and absolute right to prohibit all filming or to order cessation of filming activity in order to promote public health, safety and/or welfare. The Applicant is responsible for and must provide professional cleaning and/or sanitation services upon completion of work, if the City requests such cleaning and/or sanitation services at any time. Upon such a request by the City, the Applicant must obtain approval from the City of the Applicant’s arrangements for cleaning and/or sanitation services, which will not be unreasonably withheld. The City may require such approval before use of the City-owned property for Production Activity begins. VII. VEHICLES AND EQUIPMENT The Applicant shall provide a report listing the number of vehicles and types of equipment to be used during the filming, including proposed hours of use and proposed parking locations. Such locations will need to be specifically approved by the City Manager or their designee. On-street parking or use of public parking lots is subject to City approval. The use of exterior lighting, power generators, or any other noise- or light-producing equipment requires on-site approval of the City Manager or their designee. The use of drones is subject to the Applicant being in compliance with current FAA regulations governing their use. VIII. HOURS OF FILMING Unless express written permission has been obtained from the City Manager or their designee in advance, and affected property owners, tenants and residents have been notified, filming will be limited to the following hours: Monday through Friday: 7:00 a.m. to 9:00 p.m. Saturday, Sunday and holidays: 8:00 a.m. to 8:00 p.m. IX. NOTIFICATION OF NEIGHBORS The Applicant shall provide a short, written description, approved by the City Manager or their designee, of the schedule for the proposed production to the owners, tenants and residents of each property in the affected neighborhood(s). The Applicant, or their designee, shall make a good faith effort to notify each owner, tenant and resident of all such property, and shall submit, as part of this application, a report noting owners, tenants and/or residents’ comments, along with their signatures, addresses and phone numbers. X. CERTIFICATE OF INSURANCE The Applicant shall attach a valid certificate of insurance, issued by a company authorized to conduct business in the state of Texas, naming the City and its agents, officers, elected officials, employees, and assigns, as additional insured, in an amount not less than $1,000,000 general liability, including bodily injury and property damage with a $5,000,000 umbrella; and automobile liability (if applicable) in an amount not less than $1,000,000 including bodily injury and property damage. XI. DAMAGE TO PUBLIC OR PRIVATE PROPERTY The Applicant shall pay in full, within ten (10) days of receipt of an invoice, the costs of repair for any and all damage to public or private property, resulting from or in connection with, the production, and restore the property to its original condition prior to the production, or to better than original condition. XII. HOLD HARMLESS AGREEMENT The Applicant shall sign the following Hold Harmless Agreement holding the City harmless from any claim that may arise from their use of designated public property, right- of-way, or equipment in conjunction with the permitted use. That this ordinance shall be effective from and after September 19, 2023. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of September, 2023. - Mayor Roy West - NOTIFICATION OF PROPOSED FILMING PERMIT AND SIGN OFF REQUEST Beaumont, TX requires that all property owners / residents whose property is adjacent to the filming activity must be notified and provided with a map of the area, which indicates all impacts to the area. The notification must indicate by signature, whether the property owner / resident approves or disapproves of the proposed closure. Name of Film: ______________________________________________________________________________ Film Company: _____________________________________________________________________________ Permit Application Name: _____________________________________________________________________ Applicant Contact Information: ___________________________________________________________ Film Preparation Information: If the applicant intends to use right of way for preparation prior to the film activity, that information is included here. Dates and Times: ___________________________________________________________________________ Streets Affected: ____________________________________________________________________________ Description of Activity: ________________________________________________________________________ __________________________________________________________________________________________ Film Activity Information: Dates and Times: ___________________________________________________________________________ Streets Affected: ____________________________________________________________________________ Description of Activity: ________________________________________________________________________ __________________________________________________________________________________________ PROPERTY OWNER / RESIDENT Please fill out this section completely as this information is used by City of Beaumont, Texas to determine whether or not the filming activities indicated above will be approved or denied. ⬜ APPROVE ⬜ DISAPPROVE RECEIVED MAP: ⬜ YES ⬜ NO _________________________________________________ ________________________________ (Print Name and Title) (Signature) _________________________________________________ ________________________________ (Print Address) (Phone Number) ⬜ RESIDENCE ⬜ BUSINESS (Choose one) Name of Business: _____________________________ Comments: __________________________________________________________________________________________ __________________________________________________________________________________________ 2 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the purchase of a Standby Diesel Generator from Mustang CAT, of Houston, for the Pine Street Water Treatment Plant. BACKGROUND During power outages, the Pine Street Water Treatment Plant has limited operations with the current generator capacity. An electrical analysis was concluded in January 2023 by JK Engineering, Inc. of Nederland in conjunction with LJA Engineering, Inc. of Beaumont. The study assessed critical equipment power needs at the facility in comparison to existing generator capacity. In conclusion, the report called for increasing the total generator capacity at the plant. The oldest (1998) and smallest generator (1250kW) that is currently installed at the Water Production Plant is recommended to be replaced with a 1750kW generator. In combination with the two newer 1500kW generators this will provide enough capacity for critical equipment. Pricing for the proposed generator was obtained from Mustang CAT, of Houston. The paralleling generator system requires Mustang CAT generators to operate. This purchase will be made as a best value. Total cost is $870,000.00 with an estimated 100 week delivery time which would place the estimated expense in FY26. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the resolution. ATTACHMENTS WTP Standby Diesel Generator RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of a Standby Diesel generator from Mustang CAT, of Houston, Texas, for the Pine Street Water Treatment Plant in the amount of $870,000.00. 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 19th day of September, 2023. - Mayor Roy West - P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 1 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Generator Set: Customer Net Price (1) Unit 1750kW $870,000.00 FOB Houston, TX Local Start Up & Commissioning of Generator Set Included 1750kW Standby Generator Set: The EPA Tier 2 Emergency Stationary Only system shall consist of a Caterpillar Model 3512 Diesel Generator Rated 1750 kW Standby, 2400 Volt, 1800 RPM, 3Phase, 60 Hertz, 4 Wire, 0.8 pf. With the Following Additional Accessories Included: • 2 YEAR WARRANTY • 24HR UL142 SUB BASE TANK • WEATHERPROOF SOUND ENCLOSURE (75dBA @ 23FT) • ENCLOSURE ELECTRICAL PACKAGE • CRITICAL GRADE SILENCER • ENGINE MOUNTED RADIATOR • JACKET WATER HEATER • EMCP 4 CONTROLLER • LOCAL ANNCIATOR NFPA 110 • REMOTE ANNUNCIATOR NFPA • DIGITAL VOLTAGE REGUALTOR • GENERATOR SPACE HEATER • HD ELEC START MOTOR DUAL 24V • BATTERIES • BATTERY CHARGER 20A NFPA • AIR CLEANER • SPRING ISOLATORS Delivery: Approximately 100 Weeks after submittal approval. Delivery times do not start until after the submittal is approved. P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 2 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Clarifications/Exceptions: • This quotation is based on customer email. • Submittals available 4-6 weeks after receipt of order. • All fuel provided by others. • No maintenance tools included. • No instillation included. Equipment Only. • The package quoted is manufacturer's standard. Welding, painting, and all internal parts are manufacturer’s standard. • Mustang Cat requires a minimum of three (3) weeks notice to schedule all start- up/commissioning/testing. • The engine will be visually and mechanically inspected for proper functioning. Terms: • In the event Mustang consents in writing to cancellation, Customer shall pay Mustang, at Mustang'’ option, the following as liquidated damages: a. Invoice price of all goods which have been identified to the contract, whether such goods have been delivered to Customer or not. b. Actual costs incurred by Mustang for goods not completed which are allocable to the balance of the contract, including the cost of discharging Mustang’s liabilities, which are so applicable and costs of materials on hand which were acquired or produced in connection with partial finished work and materials. c. A reasonable allowance for profit in connection with goods called for under the contract, but with respect to which production has not yet begun at the time of cancellation. Reasonable costs incurred by Mustang, including accountants’ and attorney’s fees, if any, in making any termination settlement hereunder. • Mustang CAT Payment Terms are NET 30. The invoice will be issued once the equipment is shipped to site. • All customers that are not tax exempt will be charged a TERP Tax of 1.5% P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 3 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Notes: • Offloading is to be provided by others. • References to right hand and left hand items refer to their location on the engine as viewed facing the flywheel end. • Each Engine Shipment Includes one (1) Parts Catalog and one (1) Operator's Instruction Manual. • Mustang Power Systems does not have copies of other states/cities/counties regulations and, therefore, we may not meet these regulations. • Mustang Cat accepts no penalty charges for any liquidated damages due to late deliveries. • Mustang Cat takes exception to ALL items that are not in above quote. Equipment supplied will be limited to that described in this proposal. The field service technicians will: • Ensure that the user has received the proper literature. • Review safe start, stop and operation procedures with the user. • Review maintenance, service, and adjustments with the user. • Generator and ATS are to be installed by others. Installation shall be completed prior to start- up/testing by others, additional charges will incur if installation is not completed before start- up/testing. • Start-up/Commissioning/Training shall be performed during regular business hours (Mon. – Fri. 8:00 AM to 5:00 PM). • Additional field assistance is available from Mustang at the current rates. Mustang Cat takes exception to ALL items that are not in above quote. Equipment supplied will be limited to that described in this proposal. Nick Traber Mustang Power Systems EPG Engine Sales Office: 713-452-7217 Cell: 361-649-2187 Email: ntraber@mustangcat.com P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 4 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set TERMS AND CONDITIONS OF SALE 1. All prices are exclusive of sales tax and unless terms to Mustang are agreed to in advance, all prices are payable in full prior to delivery. Orders are placed at manufacturer’s current list price. In the event of price changes by manufacturer, customer will pay the price prevailing at the time of delivery. 2. This proposal shall terminate unless Mustang receives written acceptance hereof within the period set forth on the reverse side hereof. Such written acceptance must refer to the proposal number and date of this proposal. 3. Customer acknowledges and agrees that this proposal contains all agreements between Customer and Mustang and Customer hereby accepts them. Customer further agrees and acknowledges that no verbal contracts, agreements or warranties other than what is written within this proposal have been received or given, and signature on this proposal by Customer acknowledges this fact.4. Unless otherwise stated herein, all prices are F.O.B. Mustang’s plant, except in cases of overseas shipment, in which cases, at Mustang’s option, prices are F.O.B. Port of Exit. Method of delivery in writing from F.O.B. point shall be at Mustang’s discretion unless specifically designated by Customer. Notwithstanding any agreement to pay freight, legal title to, beneficial ownership of, right to possession of and risk of loss and damage to all merchandise described herein shall pass from Mustang to Customer upon delivery to a common carrier or licensed trucker or in cases of overseas shipment, upon delivery on board an aircraft or vessel at the Port of Exit, which delivery shall constitute delivery to the Customer. 5. Every effort will be made to meet the Customer’s required delivery dates but Mustang will not be liable for damages or be deemed to be in default by reason of any failure to deliver or delay in delivery due to any preference, priority, allocation, or allotment order issued by the Government, whether Federal, State o local, or causes beyond its control including, but not limited to, Acts of God or a public enemy, acts of Government, fires, floods, epidemics, quarantine restrictions, strikes, lockouts, freight embargoes, unusually severe weather, unavailability of materials or shipping space, delays of carriers or suppliers or delays of any subcontractors. 6. Mustang reserves the right to make delivery in installments unless otherwise expressly stated herein. All such installments shall be separately invoiced and paid for when due, without regard to subsequent deliveries. Delay in delivery of an installment shall not relieve Customer of its obligations to accept remaining deliveries. 7. If the product(s) is not paid for in full in cash at the time of delivery, Mustang will retain and Customer hereby grants to Mustang a security interest in such product(s) within the meaning of the Uniform Commercial Code together with all and any substitutions, additions, or accessions to such product(s), and in any and all proceeds from the sale, exchange or disposal thereof to secure payment of the purchase price of such product(s). Customer, prior to or after delivery, specifically agrees to enter into and execute a financing statement, or statements, and an Agreement between the parties in relation to the security interest of Mustang. Customer further appoints Mustang, as it’s attorney-in-fact to execute any such financing statement or security agreement in the place and stead of Customer. In the event Customer fails to execute any such financing statement of security agreement upon request by Mustang, the entire balance of the purchase price shall at Mustang’s option become due and payable and Mustang shall have all remedies available to it provided for and set out in the Uniform Commercial Code. Customer also agrees to execute and deliver to Mustang any notes or other evidences of indebtedness that may be required by Mustang. However, any note taken herewith shall be evidence of Customer’s obligation to pay the unpaid time balance only and is not to be considered or construed to be payment for the product(s). LATE OR DEFERRED PAYMENT SHALL BEAR INTEREST AT THE HIGHEST CONTRACT RATE PERMITTED BY LAW. 8. Customer further agrees to indemnify and save harmless Mustang from all loss, damage, expense and penalty arising from any action on account of any injury to person or property of any character whatsoever occasioned by the operation, handling or transportation of any of the product(s) covered by this proposal and while the product(s) is in the possession or under the custody and control of the customer. 9. In consideration of the sale of the product(s) by Mustang. Customer agrees to pay Mustang for such product(s) at Mustang’s principal office in Houston, Harris County, Texas. 10. In the event any action either to collect payment or enforce the terms and provisions of this proposal becomes necessary. Customer agrees to pay reasonable attorney’s fees to Mustang should this matter be placed in the hands of an attorney for collection. 11. Customer agrees that this proposal, upon acceptance by Customer, shall not be countermanded by him and that when it is accepted (and until the execution and delivery of the contract and note or notes required to consummate the sale of this above specified) it will, together with any security agreement, promissory note or other evidence of indebtedness executed by Customer subsequently hereto, constitute the entire agreement between the parties relative to this transaction. Customer further agrees that Mustang is not bound by any representations or agreements made b y any agent or employee of Mustang relative to this transaction unless specifically embodied herein. 12. The only warranties, if any, applicable to any item of machinery, equipment or other personal property subject hereto are identified on the reverse side hereof. a. Mustang will not make nay warranties, express or implied, regarding any item of machinery, equipment o other personal property subject hereto, and Mustang DISCLAIMS ALL WARRANTIES. EXPRESS OR IMPLIED. INCLUDING, BUT NOT LIMITED TO, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE with respect to each such item. Customer’s sole and exclusive remedy, if any, for defects in materials or workmanship with respect to any new item of machinery, equipment or other personal property subject hereto shall be against the manufacturer or manufacturers thereof pursuant to the express, written warranty, if any, extended by such manufacturer or manufacturers with respect to such products and described on the reverse side hereof. If any such express, written warranty is applicable, a copy thereof will be furnished upon request. b. Neither Mustang nor other manufacturers are responsible for any warranty other than that warranty as set out in the warrant(is) described above. Customer further acknowledges and agrees that this proposal contains all agreements between Customer and Mustang, and Customer hereby accepts them. Customer further agrees and acknowledges that no verbal contracts, agreements or warranties other than what is written in this proposal have been given or received, and so acknowledges by his signature hereon. c. CATERPILLAR WARRANTIES extend only to parts or attachments sold by CATERPILLAR. Mustang and CATERPILLAR DISCLAIM ANY WARRANTY, express or implied, including any warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE, for parts or attachments manufactured by persons other than CATERPILLAR. d. DISCLAIMER OF WARRANTY FOR NON- CATERPILLAR PRODUCTS: Provisions in the following two paragraphs apply only to products sold by Mustang which were manufactured by persons other than CATERPILLAR. e. DISCLAIMER OF IMPLIED WARRANTIES: The parties agree that any IMPLIED WARRANTIES OF MERCHANTABILITY or OF FITNESS FOR A PARTICULAR PURPOSE and all warranties, express or implied, except for any express warranties given by the manufacturer of the product, are EXCLUDED from this transaction by Mustang and shall not apply to the products sold. f. Customer further agrees that his SOLE AND EXCLUSIVE remedy against the manufacturer of the product shall be as contained in any manufacturer’s warranty forms he has received. Customer further agrees that no other remedy (including but not P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 1 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Generator Set: Customer Net Price (1) Unit 1750kW $870,000.00 FOB Houston, TX Local Start Up & Commissioning of Generator Set Included 1750kW Standby Generator Set: The EPA Tier 2 Emergency Stationary Only system shall consist of a Caterpillar Model 3512 Diesel Generator Rated 1750 kW Standby, 2400 Volt, 1800 RPM, 3Phase, 60 Hertz, 4 Wire, 0.8 pf. With the Following Additional Accessories Included: • 2 YEAR WARRANTY • 24HR UL142 SUB BASE TANK • WEATHERPROOF SOUND ENCLOSURE (75dBA @ 23FT) • ENCLOSURE ELECTRICAL PACKAGE • CRITICAL GRADE SILENCER • ENGINE MOUNTED RADIATOR • JACKET WATER HEATER • EMCP 4 CONTROLLER • LOCAL ANNCIATOR NFPA 110 • REMOTE ANNUNCIATOR NFPA • DIGITAL VOLTAGE REGUALTOR • GENERATOR SPACE HEATER • HD ELEC START MOTOR DUAL 24V • BATTERIES • BATTERY CHARGER 20A NFPA • AIR CLEANER • SPRING ISOLATORS Delivery: Approximately 100 Weeks after submittal approval. Delivery times do not start until after the submittal is approved. P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 2 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Clarifications/Exceptions: • This quotation is based on customer email. • Submittals available 4-6 weeks after receipt of order. • All fuel provided by others. • No maintenance tools included. • No instillation included. Equipment Only. • The package quoted is manufacturer's standard. Welding, painting, and all internal parts are manufacturer’s standard. • Mustang Cat requires a minimum of three (3) weeks notice to schedule all start- up/commissioning/testing. • The engine will be visually and mechanically inspected for proper functioning. Terms: • In the event Mustang consents in writing to cancellation, Customer shall pay Mustang, at Mustang'’ option, the following as liquidated damages: a. Invoice price of all goods which have been identified to the contract, whether such goods have been delivered to Customer or not. b. Actual costs incurred by Mustang for goods not completed which are allocable to the balance of the contract, including the cost of discharging Mustang’s liabilities, which are so applicable and costs of materials on hand which were acquired or produced in connection with partial finished work and materials. c. A reasonable allowance for profit in connection with goods called for under the contract, but with respect to which production has not yet begun at the time of cancellation. Reasonable costs incurred by Mustang, including accountants’ and attorney’s fees, if any, in making any termination settlement hereunder. • Mustang CAT Payment Terms are NET 30. The invoice will be issued once the equipment is shipped to site. • All customers that are not tax exempt will be charged a TERP Tax of 1.5% P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 3 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set Notes: • Offloading is to be provided by others. • References to right hand and left hand items refer to their location on the engine as viewed facing the flywheel end. • Each Engine Shipment Includes one (1) Parts Catalog and one (1) Operator's Instruction Manual. • Mustang Power Systems does not have copies of other states/cities/counties regulations and, therefore, we may not meet these regulations. • Mustang Cat accepts no penalty charges for any liquidated damages due to late deliveries. • Mustang Cat takes exception to ALL items that are not in above quote. Equipment supplied will be limited to that described in this proposal. The field service technicians will: • Ensure that the user has received the proper literature. • Review safe start, stop and operation procedures with the user. • Review maintenance, service, and adjustments with the user. • Generator and ATS are to be installed by others. Installation shall be completed prior to start- up/testing by others, additional charges will incur if installation is not completed before start- up/testing. • Start-up/Commissioning/Training shall be performed during regular business hours (Mon. – Fri. 8:00 AM to 5:00 PM). • Additional field assistance is available from Mustang at the current rates. Mustang Cat takes exception to ALL items that are not in above quote. Equipment supplied will be limited to that described in this proposal. Nick Traber Mustang Power Systems EPG Engine Sales Office: 713-452-7217 Cell: 361-649-2187 Email: ntraber@mustangcat.com P.O. Box 1373 • 12800 Northwest Freeway Quote #31212352 Houston, Texas 77251-1373 Phone (713) 460-7211 June 5, 2023 Fax (713) 460-3852 Page 4 of 4 Reference: City of Beaumont – Pine St. Subject: Standby Diesel Generator Set TERMS AND CONDITIONS OF SALE 1. All prices are exclusive of sales tax and unless terms to Mustang are agreed to in advance, all prices are payable in full prior to delivery. Orders are placed at manufacturer’s current list price. In the event of price changes by manufacturer, customer will pay the price prevailing at the time of delivery. 2. This proposal shall terminate unless Mustang receives written acceptance hereof within the period set forth on the reverse side hereof. Such written acceptance must refer to the proposal number and date of this proposal. 3. Customer acknowledges and agrees that this proposal contains all agreements between Customer and Mustang and Customer hereby accepts them. Customer further agrees and acknowledges that no verbal contracts, agreements or warranties other than what is written within this proposal have been received or given, and signature on this proposal by Customer acknowledges this fact.4. Unless otherwise stated herein, all prices are F.O.B. Mustang’s plant, except in cases of overseas shipment, in which cases, at Mustang’s option, prices are F.O.B. Port of Exit. Method of delivery in writing from F.O.B. point shall be at Mustang’s discretion unless specifically designated by Customer. Notwithstanding any agreement to pay freight, legal title to, beneficial ownership of, right to possession of and risk of loss and damage to all merchandise described herein shall pass from Mustang to Customer upon delivery to a common carrier or licensed trucker or in cases of overseas shipment, upon delivery on board an aircraft or vessel at the Port of Exit, which delivery shall constitute delivery to the Customer. 5. Every effort will be made to meet the Customer’s required delivery dates but Mustang will not be liable for damages or be deemed to be in default by reason of any failure to deliver or delay in delivery due to any preference, priority, allocation, or allotment order issued by the Government, whether Federal, State o local, or causes beyond its control including, but not limited to, Acts of God or a public enemy, acts of Government, fires, floods, epidemics, quarantine restrictions, strikes, lockouts, freight embargoes, unusually severe weather, unavailability of materials or shipping space, delays of carriers or suppliers or delays of any subcontractors. 6. Mustang reserves the right to make delivery in installments unless otherwise expressly stated herein. All such installments shall be separately invoiced and paid for when due, without regard to subsequent deliveries. Delay in delivery of an installment shall not relieve Customer of its obligations to accept remaining deliveries. 7. If the product(s) is not paid for in full in cash at the time of delivery, Mustang will retain and Customer hereby grants to Mustang a security interest in such product(s) within the meaning of the Uniform Commercial Code together with all and any substitutions, additions, or accessions to such product(s), and in any and all proceeds from the sale, exchange or disposal thereof to secure payment of the purchase price of such product(s). Customer, prior to or after delivery, specifically agrees to enter into and execute a financing statement, or statements, and an Agreement between the parties in relation to the security interest of Mustang. Customer further appoints Mustang, as it’s attorney-in-fact to execute any such financing statement or security agreement in the place and stead of Customer. In the event Customer fails to execute any such financing statement of security agreement upon request by Mustang, the entire balance of the purchase price shall at Mustang’s option become due and payable and Mustang shall have all remedies available to it provided for and set out in the Uniform Commercial Code. Customer also agrees to execute and deliver to Mustang any notes or other evidences of indebtedness that may be required by Mustang. However, any note taken herewith shall be evidence of Customer’s obligation to pay the unpaid time balance only and is not to be considered or construed to be payment for the product(s). LATE OR DEFERRED PAYMENT SHALL BEAR INTEREST AT THE HIGHEST CONTRACT RATE PERMITTED BY LAW. 8. Customer further agrees to indemnify and save harmless Mustang from all loss, damage, expense and penalty arising from any action on account of any injury to person or property of any character whatsoever occasioned by the operation, handling or transportation of any of the product(s) covered by this proposal and while the product(s) is in the possession or under the custody and control of the customer. 9. In consideration of the sale of the product(s) by Mustang. Customer agrees to pay Mustang for such product(s) at Mustang’s principal office in Houston, Harris County, Texas. 10. In the event any action either to collect payment or enforce the terms and provisions of this proposal becomes necessary. Customer agrees to pay reasonable attorney’s fees to Mustang should this matter be placed in the hands of an attorney for collection. 11. Customer agrees that this proposal, upon acceptance by Customer, shall not be countermanded by him and that when it is accepted (and until the execution and delivery of the contract and note or notes required to consummate the sale of this above specified) it will, together with any security agreement, promissory note or other evidence of indebtedness executed by Customer subsequently hereto, constitute the entire agreement between the parties relative to this transaction. Customer further agrees that Mustang is not bound by any representations or agreements made b y any agent or employee of Mustang relative to this transaction unless specifically embodied herein. 12. The only warranties, if any, applicable to any item of machinery, equipment or other personal property subject hereto are identified on the reverse side hereof. a. Mustang will not make nay warranties, express or implied, regarding any item of machinery, equipment o other personal property subject hereto, and Mustang DISCLAIMS ALL WARRANTIES. EXPRESS OR IMPLIED. INCLUDING, BUT NOT LIMITED TO, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE with respect to each such item. Customer’s sole and exclusive remedy, if any, for defects in materials or workmanship with respect to any new item of machinery, equipment or other personal property subject hereto shall be against the manufacturer or manufacturers thereof pursuant to the express, written warranty, if any, extended by such manufacturer or manufacturers with respect to such products and described on the reverse side hereof. If any such express, written warranty is applicable, a copy thereof will be furnished upon request. b. Neither Mustang nor other manufacturers are responsible for any warranty other than that warranty as set out in the warrant(is) described above. Customer further acknowledges and agrees that this proposal contains all agreements between Customer and Mustang, and Customer hereby accepts them. Customer further agrees and acknowledges that no verbal contracts, agreements or warranties other than what is written in this proposal have been given or received, and so acknowledges by his signature hereon. c. CATERPILLAR WARRANTIES extend only to parts or attachments sold by CATERPILLAR. Mustang and CATERPILLAR DISCLAIM ANY WARRANTY, express or implied, including any warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE, for parts or attachments manufactured by persons other than CATERPILLAR. d. DISCLAIMER OF WARRANTY FOR NON- CATERPILLAR PRODUCTS: Provisions in the following two paragraphs apply only to products sold by Mustang which were manufactured by persons other than CATERPILLAR. e. DISCLAIMER OF IMPLIED WARRANTIES: The parties agree that any IMPLIED WARRANTIES OF MERCHANTABILITY or OF FITNESS FOR A PARTICULAR PURPOSE and all warranties, express or implied, except for any express warranties given by the manufacturer of the product, are EXCLUDED from this transaction by Mustang and shall not apply to the products sold. f. Customer further agrees that his SOLE AND EXCLUSIVE remedy against the manufacturer of the product shall be as contained in any manufacturer’s warranty forms he has received. Customer further agrees that no other remedy (including but not 3 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 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 amendments will ensure that expenditures are within the approved budget and that interfund transfers are in accordance with financial policies as approved within the budget document. The details of the proposed amendments are as follows: 1. The General Liability Fund does not charge user fees but relies solely on transfers to fund its operations. A transfer of $1,000,000 from the General Fund is being proposed to cover additional legal costs for FY 22023. The General Liability Fund is projected to exceed budgeted expenditures by $750,000 due to more claim settlements than expected. A budget amendment in the amount $850,000 is being proposed to cover the projected costs and to appropriate an extra contingency for any other unforeseen expenditures that may occur. General Liability Fund Previously Amended Budget Proposed Amendment Amended Budget Total Revenues $4,000 $1,000,000 $1,004,000 Total Expenditures $1,414,200 $850,000 $2,264,200 2. The Employee Benefits Fund has a proposed budget amendment for transfers into the fund in the amount of $4,910,000 ($4,010,000 million from the General Fund, $300,000 from the Solid Waste Fund, and $600,000 from the Water & Sewer Fund) to offset increased expenses. Also, the Employee Benefits Fund is projected to exceed budgeted expenditures by $2,640,000 due to high health claims. A budget amendment in the amount $4,000,000 is being proposed to cover the projected costs and to appropriate an extra contingency for any other unforeseen expenditures that may occur. Employee Benefits Fund Original Budget Proposed Amendment Amended Budget Total Revenues $23,701,400 $4,910,000 $28,611,400 Total Expenditures $27,677,200 $3,000,000 $30,677,200 3. The Solid Waste Fund is projected to exceed budgeted expenditures by $1,120,000 due to overtime, inflation, a $300,000 transfer to the Employee Benefits Fund as mentioned in item 2 and an additional payment in lieu to the General Fund in the amount of $400,000. A budget amendment in the amount $1,300,000 is being proposed to cover the projected costs and to appropriate an extra contingency for any other unforeseen expenditures that may occur. Solid Waste Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $14,925,600 $1,300,000 $16,225,600 4. The Water & Sewer Fund is projected to exceed budgeted expenditures by $1,106,000 due to inflation in chemicals and a $600,000 transfer to the Employee Benefits Fund as mentioned in item 2. An amendment in the amount of $1,250,000 is being proposed to cover the projected costs and to appropriate an extra contingency for any other unforeseen expenditures that may occur. Water & Sewer Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $55,083,000 $1,250,000 $56,333,000 5. The Capital Reserve Fund is proposing to receive transfers of $3,960,000 ($1.46 million from the General Improvements Fund and $2.5 million from the ARPA Fund) to support capital improvement costs in FY2023 and to help build fund balance for the FY 2024 Budget. Capital Reserve Fund Original Budget Proposed Amendment Amended Budget Total Revenues $3,067,600 $3,960,000 $7,027,600 6. Transfers in the amount of $7,510,000 are being proposed in the General Fund. A $2.5 million transfer to the Municipal Transit Fund is being recommended to help fund costs and build more fund balance for the FY24 Budget, $1 million to the General Liability Fund as mentioned in item 1, and a $4.010 million to the Employee Benefits Fund as mentioned in item 2. The General Fund is also expected to exceed budgeted expenditures by over $1.5 million, thus an additional $1.75 million is being proposed to cover the projected costs and to appropriate an extra contingency for any other unforeseen expenditures that may occur. Municipal Transit Fund Original Budget Proposed Amendment Amended Budget Total Revenues $3,933,000 $2,500,000 $6,433,000 General Fund Previously Amended Budget Proposed Amendment Final Amended Budget Total Expenditures $148,604,400 $9,260,000 $157,864,400 FUNDING SOURCE Not applicable. RECOMMENDATION Council approve the ordinance amending the budget. ATTACHMENTS ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING THE FISCAL BUDGET OF THE CITY OF BEAUMONT FOR THE FISCAL YEAR 2023 TO APPROPRIATE ADDITIONAL REVENUES IN THE GENERAL LIABILITY AND CAPITAL RESERVE FUNDS; TO APPROPRIATE ADDITIONAL EXPENDITURES IN THE EMPLOYEE BENEFITS, SOLID WASTE, WATER AND SEWER FUND, MUNICIPAL TRANSIT FUND, AND GENERAL FUNDS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. WHEREAS, the City Charter of the City of Beaumont requires the City Manager to strictly enforce the provisions of the budget and not authorize or approve any expenditure unless an appropriation has been made in the budget ordinance adopting the budget and there is an available unencumbered balance of the appropriation sufficient to pay the liability to be incurred; and, WHEREAS, it is necessary to amend the FY 2023 budget to ensure that appropriations are sufficient to ensure that expenditures are authorized within the approved budget and that interfund transfers are in accordance with the financial policies as approved within the budget document; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional revenues in the General Liability Fund as shown below: General Liability Fund Original Budget Proposed Amendment Amended Budget Total Revenues $4,000.00 $1,000,000.00 $1,004,000.00 Total Expenditures $1,414,200.00 $850,000.00 $2,264,200.00 Section 2. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional expenditures in the Employee Benefits Fund as shown below: Employee Benefits Fund Original Budget Proposed Amendment Amended Budget Total Revenues $23,701,400.00 $4,910,000.00 $28,611,400.00 Total Expenditures $27,677,200.00 $3,000,000.00 $30,677,200.00 Section 3. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional expenditures in the Solid Waste Fund as shown below: Solid Waste Fund Previously Amended Budget Proposed Amendment Final Amended Budget Total Expenditures $14,925,600.00 $1,300,000.00 $16,225,600.00 Section 4. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional expenditures in the Water Utilities Fund as shown below: Water & Sewer Fund Original Budget Proposed Amendment Final Amended Budget Total Expenditures $55,083,000.00 $1,250,000.00 $56,333,000.00 Section 5. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional expenditures in the Laura Recovery Fund as shown below: Capital Reserve Fund Original Budget Proposed Amendment Amended Budget Total Expenditures $3,067,600.00 $3,960,000.00 $7,027,600.00 Section 6. THAT the Fiscal Budget of the City of Beaumont for the period commencing October 1, 2022 through September 30, 2023, be and the same is hereby amended to appropriate additional funds to cover expenditures in the General Fund and to approve the transfer of funds into the Capital Reserve Fund as shown below: Municipal Transit Fund Original Budget Proposed Amendment Amended Budget Total Revenues $3,933,000.00 $2,500,000.00 $6,433,000.00 General Fund Previously Amended Budget Proposed Amendment Final Amended Budget Total Expenditures $148,604,400.00 $9,260,000.00 $157,864,400.00 Section 7. That if any section, subsection, sentence, clause or phrase of this ordinance or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance and, to such end, the various portions and provisions of this ordinance are declared to be severable. Section 8. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of September, 2023. - Mayor Roy West - 4 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution providing for the reimbursement of a capital expenditure incurred prior to the closing of financing. BACKGROUND The FY 2023 Budget included the order of a new fire truck and was approved by Council on November 2, 2021, in the amount of $713,315. Due to the long lead time on fire trucks, the financing will be included in the FY 2024 Budget. The truck will be financed over a period not to exceed 5 years. The truck was received prior to the financing being secured. A reimbursement resolution is warranted to allow the City to reimburse itself out of the proceeds of the financing for the truck since payment was required prior to the lease purchase being secured. FUNDING SOURCE Not applicable RECOMMENDATION Approval of the resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, the FY 2023 Budget included the order of a new fire truck and was approved by Council on November 2, 2021, in the amount of $713,315.00; and, WHEREAS, due to the long lead time on fire trucks, the financing will be included in the FY 2024 Budget; and, WHEREAS, the fire truck will be financed over a period not to exceed five (5) years; and, WHEREAS, the City is allowed to reimburse itself out of the proceeds of the financing for the truck since payment was required prior to the lease purchase being secured; 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 Council be and they are hereby authorized to provide the reimbursement of the capital expenditure. 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 19th day of September, 2023. - Mayor Roy West - 5 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution approving the write off of uncollectible delinquent accounts. BACKGROUND This request is in accordance with the write-off policy approved by City Council on December 21, 1999. The policy gives Council the final authority to write-off an individual account receivable identified as uncollectible when the balance due exceeds $1,000.00. Accounts included are for transactions prior to July 2022 which have been sent to the collection agency and collection efforts have been unsuccessful for more than one year. A summary by receivable type is shown below. EMS Ambulance Charges - $90,930.00 These charges from ambulance transports include uninsured claims or co-pay and deductibles that the customer is responsible for. The original charge dates range from 2018 to 2021. General Nuisance – $3,800.00 The original charge date is from 2019. Landfill - $1,320.00 The original charge dates are from 2019. Weed Abatement Charges - $114,401.86 The original charge dates range from 2019 to 2021. Worker’s Comp – $6,549.69 The original charge date is from 2020. Total to be written off - $217,001.55 If at any time an account becomes collectible after having been written off, the receivable shall be adjusted accordingly. The balance of the account shall be reinstated and payments shall be applied to that balance. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves, as an internal accounting procedure, the write- off of the following delinquent accounts totaling $217,001.55 for which each individual account exceeds $1,000.00, as shown on Exhibit "A" attached hereto: EMS Ambulance Charges $90,930.00 General Nuisance Charges $3,800.00 Landfill Charges $1,320.00 Weed Abatement Charges $114,401.86 Worker’s Comp Charges $6,549.69 BE IT FURTHER RESOLVED THAT these debts are not being extinguished or forgiven and if, at any time, an account becomes collectible after having been written off, the receivable shall be adjusted accordingly and the balance of the account shall be reinstated and payments shall be applied to that balance. 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 19th day of September, 2023. - Mayor Roy West - limited to claims for INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES OR ANY CAUSE, LOSS, ACTION, CLAIM, DEMAND, OR DAMAGE WHATSOEVER, or INJURY TO PERSON OR PROPERTY OR ANY OTHER CONSEQUENTIAL, ECONOMIC OR INCIDENTAL LOSS) shall be available to him. g. This WARRANTY IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. REMEDIES SET FORTH IN THIS WARRANTY ARE EXPRESSLY DECLARED TO BE SOLE AND EXCLUSIVE REMEDIES UNDER THE WARRANTY, AND MUSTANG SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE USE OR PERFORMANCE OF ITS EQUIPMENT. 13. Customer shall indemnify, defend and hold Mustang harmless and against all claims, suits, judgments, costs, losses, expenses (including attorneys fees) and liabilities from infringement (actual or claimed) of patents, copyrights or trademarks arising from compliance with Customer’s design, specifications or instructions and the fulfillment of Customer’s Order. 14. This proposal shall be interpreted and construed in accordance with the laws of the State of Texas. Invalidity of any portion of this proposal shall not affect the validity or enforceability of the remainder of the terms and conditions hereof, and the parties hereby agree that this proposal shall be construed as if such invalid provision had not been inserted. 15. In the event Mustang consents in writing to cancellation, Customer shall pay Mustang, at Mustang'’ option, the following as liquidated damages: a. Invoice price of all goods which have been identified to the contract, whether such goods have been delivered to Customer or not. b. Actual costs incurred by Mustang for goods not completed which are allocable to the balance of the contract, including the cost of discharging Mustang’s liabilities, which are so applicable and costs of materials on hand which were acquired or produced in connection with partial finished work and materials. c. A reasonable allowance for profit in connection with goods called for under the contract, but with respect to which production has not yet begun at the time of cancellation. Reasonable costs incurred by Mustang, including accountants’ and attorney’s fees, if any, in making any termination settlement hereunder. limited to claims for INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES OR ANY CAUSE, LOSS, ACTION, CLAIM, DEMAND, OR DAMAGE WHATSOEVER, or INJURY TO PERSON OR PROPERTY OR ANY OTHER CONSEQUENTIAL, ECONOMIC OR INCIDENTAL LOSS) shall be available to him. g. This WARRANTY IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. REMEDIES SET FORTH IN THIS WARRANTY ARE EXPRESSLY DECLARED TO BE SOLE AND EXCLUSIVE REMEDIES UNDER THE WARRANTY, AND MUSTANG SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE USE OR PERFORMANCE OF ITS EQUIPMENT. 13. Customer shall indemnify, defend and hold Mustang harmless and against all claims, suits, judgments, costs, losses, expenses (including attorneys fees) and liabilities from infringement (actual or claimed) of patents, copyrights or trademarks arising from compliance with Customer’s design, specifications or instructions and the fulfillment of Customer’s Order. 14. This proposal shall be interpreted and construed in accordance with the laws of the State of Texas. Invalidity of any portion of this proposal shall not affect the validity or enforceability of the remainder of the terms and conditions hereof, and the parties hereby agree that this proposal shall be construed as if such invalid provision had not been inserted. 15. In the event Mustang consents in writing to cancellation, Customer shall pay Mustang, at Mustang'’ option, the following as liquidated damages: a. Invoice price of all goods which have been identified to the contract, whether such goods have been delivered to Customer or not. b. Actual costs incurred by Mustang for goods not completed which are allocable to the balance of the contract, including the cost of discharging Mustang’s liabilities, which are so applicable and costs of materials on hand which were acquired or produced in connection with partial finished work and materials. c. A reasonable allowance for profit in connection with goods called for under the contract, but with respect to which production has not yet begun at the time of cancellation. Reasonable costs incurred by Mustang, including accountants’ and attorney’s fees, if any, in making any termination settlement hereunder. PUBLIC HEARING Council to conduct a public hearing authorizing Zip to temporarily waive transit fares for Veterans on September 22, 2023. 6 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Chris Boone, Assistant City Manager, Community Services MEETING DATE: September 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing Zip to temporarily waive transit fares for veterans on September 22, 2023. BACKGROUND The Texas Veterans Commission is hosting the Southeast Texas Stand Down 2023 event at the Civic Center on Friday, September 23, 2023. Zip, formerly known as Beaumont Municipal Transit, is requesting transit fares to be waived for U.S. Military Veterans with a valid ID on this day. This will allow veterans in need of transportation the ability to attend the event and take advantage of the services and agencies present. FUNDING SOURCE Transit system is funded through a combination of rider fares, monies from the General Fund as well as grants from the Texas Department of Transportation and the Federal Transit Administration. RECOMMENDATION Approval of the resolution. ATTACHMENTS Attachment #1: Southeast Texas Stand Down 2023 Beaumont Flyer.pdf 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 allow Zip to temporarily waive transit fees for veterans on September 22, 2023. 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 19th day of September, 2023. - Mayor Roy West - Beaumont Civic Center 701 Main Street, Beaumont, TX SPECIAL EVENT Benefitting homeless veterans, their families & the homeless Services Include: Clothing Shelter/Housing Information Information for the Disabled Medical Screenings Mental Health Screenings Legal Services COVID 19 Vaccinations Certification of Eligibility VA Claims & Benefit Information ∗Substance Abuse Treatment Info ∗HIV/AIDS Information ∗SNAP (Food Stamps) Information ∗Help with DD214 ∗Services for Women Veterans ∗Survival Benefits ∗Duffle Bags (for those that qualify) ∗45+non-profits that provide services to homeless veterans & veterans Need a form of ID (Picture ID - TX Driver’s License/ID Card/ Military ID/SS Card) LUNCH & DOOR PRIZES Friday, September 22nd, 9am to 2pm Military (or DoD) Surplus is reserved for homeless veterans: Proof of service is required: DD-214 or Veterans ID STAND Southeast DOWN Texas 2023 WORK SESSION Council to conduct a Work Session to review the proposed adoption of a Naming Ordinance.