HomeMy WebLinkAbout09/26/2023 PACKETREGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS CITY HALL 801 MAIN STREET
TUESDAY, SEPTEMBER 26, 2023 1:30 PM
AGENDA
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL
PROCLAMATIONS
PRESENTATIONS
Classification and Compensation Results and Implementation by Evergreen
Solutions
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 19, 2023, City Council Meeting Minutes
B. Council consider a resolution approving the reappointment of Gillian Jenkins to the
Civil Service Commission.
C. Council to consider a resolution appointing individuals to the Construction Board of
Appeals.
D. Council consider a resolution approving the City of Beaumont Investment Policy.
E. Council consider a Resolution authorizing the City Manager to execute a lease
agreement renewal with the Beaumont Art League.
REGULAR AGENDA
1. Council consider a resolution approving an ordinance to amend Article 6.10 Gaming
Sites and Gaming Machines.
2. Council to consider amending Section 2.04.002 of the Code of the Ordinances related
to declaring Presidents' Day as an official holiday for City employees.
3. Council consider a resolution to award HOME ARP (American Resue Plan) funding
for the development of non-congregate shelter, tenant based rental assistance and
the administration associated with the planning and management of the projects.
4. Council consider a request to extend the deadline to allow an ambulatory surgery
center at 6510 Folsom Drive, as approved in September of 2021.
5. Council consider a resolution approving the write-off of uncollectible water accounts
totaling $51,055.48 for which each individual account exceeds $1,000.
6. Council consider a resolution authorizing a contract with Zion Industrial Group, LLC,
and TMT Utilities, Inc., for the Citywide Emergency Water Main Repairs III.
7. Council consider a request to Rezone a portion of property from RS (Residential
Single Family Dwelling) to GC-MD-2 (General Commercial-Multiple Family Dwelling-
2) or more restrictive district for property located at 1845 S. Major Drive.
PUBLIC HEARING
Council to conduct a Public Hearing to receive comments on the 2022 Consolidated
Annual Performance and Evaluation Report (CAPER).
WORK SESSION
Review and Discuss the City's Sanctioned Encampment Strategy.
PUBLIC COMMENT - MISC
COUNCIL COMMENTS
ADJOURNMENT
EXECUTIVE SESSION
Consider matters to deliberate the employment, evaluation, duties of a public officer
or employee in accordance with Section 551.074 of the Government Code, to wit
specifically:
• Kenneth R. Williams, City Manager
• Sharae Reed, City Attorney
• Tina Broussard, City Clerk
• Craig Lively, Chief Magistrate
Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
• The Claim of Manely Rosales Cordero
• Caleb Fenter v. City of Beaumont and Christopher S. Boone; Cause No. B-
210244
• International Association of Firefighters Local 399 v. City of Beamont, Kenneth
R. Williams, in his official Capacity as City Manager, and Earl White, in his
official Capacity as Fire Chief; Cause No. D-210950
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 26, 2023
REQUESTED ACTION: Council to consider approving the September 19, 2023, City Council
Meeting Minutes
BACKGROUND
None
FUNDING SOURCE
None
RECOMMENDATION
None
ATTACHMENTS
Minutes - September 19, 2023
Minutes – September 19, 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 19, 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 19,
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 1-6
Mayor West called the council meeting to order at 1:30 p.m.
Reverend Terrell Wilson with Cathedral of Faith Baptist Church 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
“SETX Veteran Stand Down Day” - September 2023 - Proclamation read by Councilmember
Durio; accepted by Mr. Seth Wells
“National Ovarian and Breast Cancer Awareness Month” - October 2023 – Proclamation read
by Tina Broussard, City Clerk; accepted by Norma Sampson and others
“National Clean Energy Week” - September 22-29, 2023 - Proclamation read by Tina
Broussard, City Clerk
Public Comment: Persons may speak on the Consent Agenda/Regular Agenda Items 1-6 (or
any other topic) (Public comments can be heard or seen at the City of Beaumont website at
beaumonttexas.gov
David Kent 3400 Veterans Circle Beaumont TX
Martha Chisom 1130 Condon St. Beaumont TX
Minutes – September 19, 2023
John Fears 458 N. 8th St. Beaumont TX
Joshua Moore 1225 Glendale Beaumont TX
Antonia Jones 3400 Veterans Circle Beaumont TX
Charlie Crabbe 928 East Dr. Beaumont TX
David Pete 6355 Chinn Ln. Beaumont TX
Alfred Dean 9690 Meadowbrook Dr. Beaumont TX
Juanita Louise 3400 Veterans Circle Beaumont TX
Roy Malveaux 2346 Broadway St. Beaumont TX
Jason Capps No Address 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 September 12, 2023, City Council Meeting Minutes.
B. Council to consider a resolution approving an agreement with Triangle Stagecraft, Inc., for
skilled temporary workers utilized in the Event Services Department – Resolution 23-248
C. Council consider a resolution authorizing an Industrial Development Agreement with
Golden Triangle Storage LLC – Phase I - Resolution 23-249
D. Council to consider a resolution authorizing an Industrial Development Agreement with
Golden Triangle Storage LLC – Phase II - Resolution 23-250
E. Council to consider a resolution authorizing an Industrial Development Agreement with
Golden Triangle Storage LLC – Phase III - Resolution 23-251
F. Council to consider a resolution authorizing an Industrial Development Agreement with
Golden Triangle Storage LLC – Phase IV - Resolution 23-252
G. Council to consider a resolution authorizing an Industrial Development Agreement with
Linde, Inc - Resolution 23-253
H. Council to consider a resolution authorizing an Industrial Development Agreement with
Zero Parks Management LLC - Resolution 23-254
I. Council to consider a resolution authorizing the execution of a License to Encroach
Agreement with Korey Jackson - Resolution 23-255
Minutes – September 19, 2023
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” -
Resolution 23-256
K. Council to consider a resolution rejecting all responses for bid number MF0823-43 for a
standby generator for the Parks Operation Center - Resolution 23-257
L. Council to 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 - Resolution 23-
258
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 -
Resolution 23-259
N. Council consider a resolution approving an annual contract for grounds maintenance on
Martin Luther King Jr. Parkway - Resolution 23-260
Councilmember Durio 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
REGULAR AGENDA
1. Council to consider an ordinance authorizing the City Manager to approve the last stage
in the Film Friendly Designation process.
On February 21, 2023, the 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.
Approval of the Ordinance.
Councilmember Feldschau moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE TO SET
GUIDELINES FOR THE FILM FRIENDLY DESIGNATION PROCESS. 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
Minutes – September 19, 2023
ORDINANCE 23-071
2. Council to consider a resolution authorizing the purchase of a Standby Diesel Generator
from Mustang CAT, of Houston, for the Pine Street Water Treatment Plant.
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 best value. The total cost is $870,000.00 with an estimated 100-week
delivery time which would place the estimated expense in FY26.
Funds will come from the Water Utilities Fund.
Approval of the Resolution.
Councilmember Getz moved to APPROVE A RESOLUTION 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 Councilmember Durio seconded the motion.
AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ,
FELDSCHAU, SAMUEL AND NEILD
NAYS: NONE
MOTION PASSED
RESOLUTION 23-261
3. Council to consider an ordinance amending the FY 2023 Budget.
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:
Minutes – September 19, 2023
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 $56,333.00
Minutes – September 19, 2023
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
Approval of the Ordinance.
Councilmember Feldschau moved to ADOPT 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 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
MOTION PASSED
ORDINANCE 23-072
4. Council to consider a resolution providing for the reimbursement of the capital
expenditure incurred prior to the closing of financing.
Minutes – September 19, 2023
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.
Approval of the resolution.
Councilmember Durio moved to APPROVE A RESOLUTION THAT THE FY 2023 BUDGET
INCLUDED THE ORDER OF A NEW FIRE TRUCK AND APPROVED BY COUNCIL ON NOVEMBER 2,
2021, IN THE AMOUNT OF $713,315.00; DUE TO THE LONG LEAD TIME ON FIRE TRUCKS, THE
FINANCING WILL BE INCLUDED IN THE FY 2024 BUDGET, THE FIRE TRUCK WILL BE FINANCED OVER
A PERIOD NOT TO EXCEED FIVE (5) YEARS AND 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. 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
RESOLUTION 23-262
5. Council to consider a resolution approving the write off of uncollectible delinquent
accounts.
This request is in accordance with the write-off policy approved by the 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
The charges are for ambulance transports which 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.
Minutes – September 19, 2023
Worker’s Comp – $6,549.69
The original charge date is from 2020.
Total to be written off - $217,001.55
Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY COUNCIL
HEREBY APPROVES, AS AN INTERNAL ACCOUNTING PROCEDURE, THE WRITE-OFF OF DELINQUENT
ACCOUNTS TOTALING $217,001.55 FOR WHICH EACH INDIVIDUAL ACCOUNT EXCEEDS $1,000.00.
Councilmember Durio seconded the motion.
AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ,
FELDSCHAU, SAMUEL AND NEILD
NAYS: NONE
MOTION PASSED
RESOLUTION 23-263
PUBLIC HEARING
Council to conduct a Public Hearing authorizing Zip to temporarily waive transit
fares for Veterans on September 22, 2023.
Public Hearing Open: 2:43 p.m.
None
Public Hearing Close: 2:43 p.m.
6. Council to consider a resolution authorizing Zip to temporarily waive transit fares for
veterans on September 22, 2023.
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.
The 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.
Approval of the Resolution.
Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE
AND HE IS AUTHORIZED TO ALLOW ZIP TO TEMPORARILY WAIVE TRANSIT FEES FOR VETERANS ON
SEPTEMBER 22, 2023. Councilmember Getz seconded the motion.
AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ,
FELDSCHAU, SAMUEL AND NEILD
Minutes – September 19, 2023
NAYS: NONE
MOTION PASSED
RESOLUTION 23-264
WORK SESSION
Council to conduct a Work Session to review the proposed adoption of a Naming
Ordinance
COMMENTS
Public Comments (Persons are limited to three minutes)
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 -
CITY MANAGER WILLIAMS -
MAYOR WEST –
With there being no Executive Session, Council adjourned at 3:22 p.m.
Roy West, Mayor
Tina Broussard, City Clerk
B
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Catalina, Director of Human Resources
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution approving the reappointment of
Gillian Jenkins to the Civil Service Commission.
BACKGROUND
The Civil Service Commission consists of three members appointed by the City Manager. In
accordance with Local Government Code §143.006, a Commission member can be reappointed
by the City Manager for more than a third consecutive term upon confirmation by a two-thirds
majority of the municipality’s governing body. Ms. Jenkins has served three consecutive terms.
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 following reappointment be made:
Reappointment Commission Beginning Expiration
of Term of Term
Gillian Jenkins
Civil Service Commission
09/26/2023
10/03/2024
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
C
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Sharae Reed, City Attorney
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council to consider a resolution appointing individuals to the
Construction Board of Appeals.
BACKGROUND
The Construction Board of Appeals ("Board") shall be appointed by the City Council to hear
appeals of orders, decisions, or determinations made by the Building Official or Fire Marshal
relative to the application or interpretation of the applicable codes. The Board shall consist of
seven (7) members: (1) architect, (1) engineer, (1) member at-large from the building industry,
(1) building contractor, (1) member at- large from the building industry, and (2) members from
the fire service and fire safety professions.
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 following appointments be made:
Appointments Commission Beginning Expiration
of Term of Term
George Dearborne
Ed Long, P.E.
Construction Board of Appeals Committee
Construction Board of Appeals Committee
09/26/2013
09/26/2023
09/25/2025
09/25/2025
; and,
THAT Dwayne Herrmann would be appointed to the Building Board of Appeals to
fill the unexpired term of Craig Washington. The term would commence September 26,
2023 and would expire April 11, 2024; and,
THAT Tim Sudela would be appointed to the Building Board of Appeals and fill the
unexpired term of Justin Lyons. The term would commence September 26, 2023 and
would expire November 8, 2023; and,
THAT Vince Jabbia would be appointed to the Building Board of Appeals and fill
the unexpired term of Eddie Senigaur. The term would commence September 26, 2023
and would expire October 18, 2023: and,
THAT David Devor would be appointed as an Alternate to the Building Board of
Appeals. The term would commence September 26, 2023 and would expire September
26, 2025; and,
THAT the following reappointments be made:
Reappointment
Commission Beginning Expiration
of Term of Term
Wayne Duerler
Sina Nejad, P.E.,
P.Eng.
Construction Board of Appeals
Committee
Construction Board of Appeals
Committee, Chair
09/26/2023
09/26/2023
09/25/2025
09/25/2025
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
D
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution approving the City of Beaumont
Investment Policy.
BACKGROUND
State law mandates the City Council to review the Investment Policy and approve modifications,
if any, on an annual basis. The City last made amendments to the Investment Policy on December
12, 2022 through resolution 22-329. Only slight wording changes, renumbering of the table of
contents, and changes to the broker/dealer list are being proposed to the policy by the City to
update old information. We also removed the business certification exhibit as most business
organizations have their own form or process for providing them. No changes are required due to
a change in legislation.
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, State law mandates the City Council to review the Investment Policy
and improve modifications, if any, on an annual basis; and,
WHEREAS, on December 12, 2022, by Resolution 22-239 amendments were
made to the Investment Policy; and,
WHEREAS, only minor word changes, renumbering, and exhibits were affected,
no changes are required due to a change in legislation;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the Council be and they are hereby authorized to approve the City of
Beaumont Investment Policy.
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 26th
day of
September, 2023.
- Mayor Roy West -
Investment Policy
Adopted by
City Council
September 26, 2023
City of Beaumont - Investment Policy
Table of Contents
I. Introduction................................................................................................................1
II. Scope............................................................................................................................1
III. Prudence .....................................................................................................................1
IV. Objectives....................................................................................................................1
A. Safety of Principal..........................................................................................2
B. Liquidity..........................................................................................................2
C. Public Trust ....................................................................................................2
D. Yield.................................................................................................................2
V. Delegation of Authority .............................................................................................2
VI. Ethics and Conflicts of Interest.................................................................................3
VII. Training.......................................................................................................................3
VIII. Selection of Financial Dealers, Institutions and Investments Pools .....................4
A. Broker/Dealers ...............................................................................................4
B. Public Depositories.........................................................................................4
C. Investment Pools ............................................................................................5
IX. Authorized and Suitable Investments ......................................................................5
X. Competitive Environment .........................................................................................7
XI. Collateralization.........................................................................................................7
XII. Safekeeping and Custody ..........................................................................................8
XIII. Diversification.............................................................................................................8
XIV. Investment Strategies ................................................................................................9
A. Pooled Fund Groups .......................................................................................9
B. Debt Service Funds .......................................................................................10
C. Debt Service Reserve Funds .........................................................................10
D. Natural Gas Account ……………………………………………………….11
XV. Internal Control ......................................................................................................12
XVI. Performance Standards .........................................................................................12
XVII. Reporting .................................................................................................................12
XVIII. Investment Policy Adoption...................................................................................13
Exhibit
Exhibit A - Approved List Broker/Dealers...........................................................................15
1
City of Beaumont
Investment Policy
I. Introduction
It is the policy of the City of Beaumont to invest public funds in a manner that will ensure
that the investments are duly authorized, properly managed, adequately protected and
fully collateralized. The City shall seek the optimum investment return with the
maximum security while meeting daily cash needs and conforming to the City Charter,
the Public Funds Investment Act (Chapter 2256, Government Code as amended) and all
other state and local statutes governing the investment of public funds.
II. Scope
This Investment Policy applies to all financial assets of the City as accounted for in the
City's Annual Comprehensive Financial Report. These include General, Special
Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Permanent
Funds. All are pooled for investment purposes except debt service and debt service
reserve funds, and the natural gas account. Interest is allocated monthly to each fund
based on its individual cash balance.
III. Prudence
Investments shall be made with judgment and care, under prevailing circumstances, that
a person of prudence, discretion, and intelligence would exercise in the management of
the person's own affairs, not for speculation, but for investment, considering the probable
safety of capital and the probable income to be derived. The "prudent person" standard
shall be applied in the context of managing the total portfolio rather than a single
investment providing that the decision was consistent with this Investment Policy.
Investment Officers acting in accordance with written procedures and the Investment
Policy and exercising due diligence shall be relieved of responsibility for an individual
investment's credit risk or market price changes provided that deviations from exceptions
are reported in a timely fashion and appropriate action is taken to control adverse
developments.
IV. Objectives
The primary objectives, in priority order, of the City's investment activities shall be safety
of principal, liquidity, public trust, and yield.
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A. Safety of Principal
The City has as its foremost objective to ensure the safety of principal. Investments
of the City shall be undertaken in a manner that seeks to ensure the preservation of
principal in the overall portfolio. To attain this objective, diversification is required
in order to eliminate an over-concentration of assets in one institution, maturity or
type of investment, where appropriate.
B. Liquidity
The City's investment portfolio will remain sufficiently liquid to enable the City to
meet all operating requirements that might be reasonably anticipated. The portfolio
shall be constructed so that investment maturities are matched with forecasted cash
flow requirements and limited by investments with an active secondary market or
convertible to cash with little or no penalty.
C. Public Trust
Investment Officers shall seek to act responsibly as custodians of the public trust.
Investment Officers shall avoid any transaction that might impair public confidence
in the City’s ability to govern effectively.
D. Yield
The City's investment portfolio shall be designed with the objective of attaining a
rate of return that is consistent with risk limitations and cash flow characteristics of
the City's investments.
V. Delegation of Authority
Authority to manage the City's investment program is derived from the City Charter
(article VII, section 1-2). The Charter designates the City Manager as Director of Finance
who shall have custody of all public funds, investments, bonds and notes of the City and
be responsible for their safekeeping. The City Manager shall establish written
procedures for the operation of the investment program consistent with this Investment
Policy that include explicit delegation of authority to persons responsible for investment
transactions. The City Manager shall be responsible for all transactions undertaken and
shall establish a system of controls to regulate the activities of subordinate officials.
The City Manager, the Chief Financial Officer, and the City Controller are approved as
Investment Officers of the City. Such approval of specific persons shall remain in effect
until rescinded by the City Council or until termination of the person's employment by
the City. Investment Officers shall not deposit, withdraw, transfer or manage the funds
of the City in a manner that is not consistent with the “prudent person” standard as
described in section III of this Policy.
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The City Council maintains the right to hire Investment Advisers to assist City staff in
the investment of funds. Investment Advisers shall adhere to the spirit, philosophy and
specific terms of this Policy and shall invest within the same objectives. The City
Manager shall establish criteria to evaluate Investment Advisers, including:
E. Adherence to the City’s policies and strategies;
F. Investment strategy recommendations within accepted risk constraints;
G. Responsiveness to the City’s request for services and information;
H. Understanding of the inherent fiduciary responsibility of investing public funds;
and
I. Similarity in philosophy and strategy with the City’s objectives.
Selected Investment Advisers must be registered under the Investment Advisers Act of
1940 or with the State Securities Board. A contract with an Investment Adviser may
not be for a term longer than two years and any contract, renewal or extension must be
approved by the City Council.
VI. Ethics and Conflicts of Interest
Investment Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions.
Investment Officers shall disclose any personal business relationships with business
organizations approved to conduct investment transactions with the City. They shall also
disclose any specific individuals who seek to sell investments to the City and are related
to the Investment Officer within the second degree by affinity or consanguinity, as
determined under Chapter 573. Disclosure shall be filed with the Texas Ethics
Commission and the City Council.
VII. Training
In order to ensure qualified and capable investment management, each Investment
Officer shall attend at least ten (10) hours of training relating to investment
responsibilities within 12 months after assuming such duties and shall continue to attend
an investment training session consisting of at least eight (8) hours of instruction not less
than once every two years thereafter. The two-year period shall begin on the first day of
the City’s fiscal year and consist of the two consecutive fiscal years after that date.
Training shall be in accordance with the Public Funds Investment Act and include
education in investment controls, security risks, strategy risks, market risks, and
compliance with State statutes governing the investment of public funds. All training
shall be conducted by an independent source that has been approved by City Council.
The approved “independent sources” to provide such training are: the Government
Treasurers Organization of Texas, the Government Finance Officers Association, the
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Government Finance Officers Association of Texas, the Council of Governments, the
Texas Municipal League, and the University of North Texas.
VIII. Selection of Broker/ Dealers, Financial Institutions and Investment Pools
Authorized investments shall only be purchased from those institutions selected and
approved in accordance with this Policy.
Any investment pool or discretionary investment management firm which seeks to
execute investment transactions with the City shall provide a written instrument
certifying that they have received and thoroughly reviewed the City's Investment Policy
and have implemented reasonable procedures and controls in an effort to preclude
investment transactions that are not authorized by this Policy. Each time City Council
approves a material revision to the Investment Policy, the newly revised Investment
Policy must be sent to the approved investment pool or discretionary investment
management firm and a business certification should be obtained.
A. Broker/Dealers
The City shall select broker/dealers by their ability to provide effective market
access and may include "Primary Government Securities Dealers" or regional
dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-
1 (uniform net capital rule). Broker/dealers selected must be members in good
standing of the Financial Industry Regulatory Authority (“FINRA”) and be licensed
by the State of Texas. Each broker/dealer will be reviewed by the Investment
Officers and a recommendation will be made for approval by the City Council.
An "approved broker/dealer list", as shown in Exhibit A, shall be maintained by the
Investment Officers at all times and approved by the City Council on an annual
basis.
The City shall not enter into transactions with a broker/dealer until official City
Council approval.
B. Public Depositories/Financial Institutions
The City Council shall select a primary depository as required by law. The primary
depository as authorized by the City Council shall meet all requirements of the state
law concerning depositories for municipal funds (Chapter 105, Government Code).
The primary depository shall be selected through the City’s banking services
procurement process, including a formal Request for Application (RFA) issued in
compliance with applicable State law, and offers the most favorable terms and
conditions for the handling of City funds.
The City may also establish agreements with other financial institutions under
separate contract for additional services that are necessary in the administration,
5
collection, investment, and transfer of municipal funds. Such deposits will only be
made after the financial institution has completed and returned the required written
instruments and depository pledge agreements. No deposit shall be made except in
a qualified public depository as established by State Law.
C. Investment Pools
Investment Officers may invest funds of the City through an eligible investment
pool with specific approval by resolution of City Council and execution of a written
agreement. To become eligible, investment pools must first meet all requirements
of State Law. They shall provide the City with an offering circular that contains
specific and detailed information, investment transaction confirmations, and
detailed monthly transaction and performance reports. Pools shall have advisory
boards composed of qualified members representing participants and non-
participants who do not have a business relationship with the pool. Before
selection, pools shall be thoroughly reviewed and evaluated by the Investment
Officers.
IX. Authorized and Suitable Investments
Authorized investments for municipal governments in the state of Texas are set forth in
the Public Funds Investment Act, as amended. Suitable investments for the City are
limited to the following:
▪ Direct Obligations of the United States or its agencies and instrumentalities that
have a maximum stated maturity date of 5 years or less.
▪ Financial institution deposits placed with approved financial institutions as
described above (section VIII-B) which have a maximum stated maturity date of 5
years or less and are insured by the Federal Deposit Insurance Corporation, or their
successors; or secured as described in section XI Collateralization. Additionally,
the City may execute certificates of deposit, and other forms of deposit, in any
manner authorized by the Public Funds Investment Act.
▪ Fully collateralized direct repurchase agreements with a defined termination date
of 90 days or less which are secured by cash or obligations of the United States or
its agencies and instrumentalities and pledged with a third party other than an agent
for the pledgor. Investment Officers may invest in repurchase agreements through
an approved primary government securities dealer or an approved depository bank
as described above (section VIII-A, B). Each issuer of repurchase agreements shall
be required to sign a master repurchase agreement. For flexible repurchase
agreements executed with bond proceeds, the defined termination date of 90 days
or less may be waived to allow the term of the flexible repurchase agreement to
more closely match the expected term of the bond project.
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▪ No load money market mutual funds registered with and regulated by the Securities
and Exchange Commission whose investment objectives include the maintenance
of a stable net asset value of $1 per share. Money market mutual funds must
maintain a AAAm, or equivalent rating from at least one nationally recognized
rating agency; have a average weighted maturity of less than two years; and provide
the City with a prospectus and other information required by the Securities and
Exchange Act of 1934 and be specifically approved by City Council or purchased
through the City’s primary depository as an overnight investment tool. The City
may not own more than 10% of the money market mutual fund’s total assets.
▪ Approved investment pools as described above (section VIII-C) which are
continuously rated no lower than AAA, AAA-m or an equivalent rating by at least
one nationally recognized rating agency.
Investments Not Authorized - The following investments are not authorized under this
section:
a. Obligations whose payment represents the coupon payments on the outstanding
principal balance of the underlying mortgage-backed security collateral and pay no
principal;
b. Obligations whose payment represents the principal stream of cash flow from the
underlying mortgage-backed security collateral and bears no interest;
c. Collateralized mortgage obligations that have a stated final maturity date of greater
than ten years; and
d. Collateralized mortgage obligations the interest rate of which is determined by an index
that adjusts opposite to the changes in a market index.
Not less than quarterly, the Investment Officers will monitor the credit rating for each
held investment that has a Public Fund Investment Act required minimum rating. Any
Authorized Investment that requires a minimum rating does not qualify during the period
the investment does not have the minimum rating. Prudent measures will be taken to
liquidate an investment that is downgraded to less than the required minimum rating.
The City is not required to liquidate investments that were authorized investments at the
time of purchase.
The purchase of stock is not an authorized investment for municipal governments.
However, stock may be accepted as a donation, provided that it is held in accordance with
the terms of the donation and sold as soon as it is advantageous to do so. Reinvestment
of proceeds must be in accordance with authorized and suitable investments for the City
as listed above.
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X. Competitive Environment
It is the policy of the City to provide a competitive environment for all individual security
purchases and sales, financial institution deposits, and money market mutual fund and
local government investment pool selections. The Investment Officers shall develop and
maintain procedures for ensuring competition in the investment of the City’s funds.
XI. Collateralization
Collateralization will be required on all financial institution deposits and repurchase
agreements. With the exception of deposits secured with irrevocable letters of credit at
100% of principle plus anticipated accrued interest, the collateralization level shall be
equal to at least one hundred two percent (102%) of the aggregate market value of the
deposit or investment including accrued interest less an amount insured by the Federal
Deposit Insurance Corporation. Evidence of the pledged collateral shall be documented
by a custodial or a master repurchase agreement with the eligible collateral clearly listed
in the agreement. Collateral shall be reviewed at least monthly to assure that the market
value of the securities pledged equals or exceeds the related deposit or investment
requirement.
Collateral requirements shall be in accordance with both the Public Funds Investment
Act and the Public Funds Collateral Act. Collateral underlying repurchase agreements is
limited to direct obligations of the United States or its agencies and instrumentalities.
The City shall accept a surety bond or the following investment securities as collateral
on deposits and certificates of deposit:
▪ Direct obligations of the United States or its agencies and instrumentalities. Direct
obligations of this state or its agencies and instrumentalities.
▪ Collateralized mortgage obligations directly issued by a federal agency or
instrumentality of the United States and excluding those mortgage-backed
securities considered a high-risk mortgage security as described by Section
2257.0025 of the Government Code.
▪ Other obligations that are guaranteed or backed by the full faith and credit of this
state or the United States or their respective agencies and instrumentalities.
▪ Obligations of states, agencies, counties, cities and other political subdivisions
rated not less than A or its equivalent.
▪ Letters of credit issued by the United States or its agencies and instrumentalities.
Financial institutions serving as depositories will be required to sign a depository
agreement with the City. The collateralized deposit portion of the agreement shall define
the City’s rights to the collateral in case of default, bankruptcy or closing and shall
8
establish a perfected security interest in compliance with Federal and State regulations,
including:
1. The agreement must be in writing;
2. The agreement has to be executed by the Depository and the City
contemporaneously with the acquisition of the asset:
3. The agreement must be approved by the Board of Directors or designated
committee of the Depository and a copy of the meeting minutes must be
delivered to the City; and
4. The agreement must be part of the Depository’s “Official Record”
continuously since its execution.
XII. Safekeeping and Custody
Collateral shall be placed for safekeeping in a custodial account at the Federal Reserve
Bank or at an institution not affiliated with a firm pledging collateral acceptable to the
City. All safekeeping arrangements shall clearly define the responsibilities of each party
and outline the steps to be taken in order for the City to gain access to the collateral in
the event of a "failure". The custodial agreement shall be executed between the City, the
firm pledging the collateral and the custodial institution, as applicable. All safekeeping
receipts shall be delivered to the City and all collateral (whether a pledge or substitution)
shall be formally accepted and released by Investment Officers.
All security transactions, including collateral for repurchase agreements, entered into by
the City shall be conducted on a delivery-versus-payment (DVP) basis. That is, funds
shall not be wired or paid until verification has been made that the correct security was
received by the safekeeping institution. Financial institution deposits, pool funds, and
mutual funds are excluded from this requirement. The investment shall be held in the
name of the City or on behalf of the City.
XIII. Diversification
The City will diversify its investments to eliminate an over-concentration of assets in any
one security type or institution.
▪ Up to ninety percent (90%) par of the portfolio may be invested in direct obligations
of the United States (U.S. Treasury Securities).
▪ Up to seventy percent (70%) par of the portfolio may be invested in U.S. Agency
or Instrumentalities.
▪ Up to one hundred percent (100%) par of the portfolio may be invested in
investment pools for liquidity purposes with no more than eighty percent (80%) par
of the portfolio invested in any one pool.
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▪ No more than fifty percent (50%) par of the portfolio may be invested in money
market mutual funds.
XIV. Investment Strategies
The City shall maintain a separate investment strategy for each of the fund types
represented in the portfolio.
A. Pooled Fund Groups
Suitability – Any investment eligible in the Investment Policy is suitable for
Pooled Fund Groups.
Safety of Principal – All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur. However,
managing the weighted average days to maturity of each fund’s portfolio to
less than 365 days and restricting the maximum allowable maturity to three
years using the final stated maturity dates of each investment will minimize
the price volatility of the portfolio.
Liquidity – Pooled Fund Groups require the greatest short-term liquidity of
any of the fund-types. Short-term financial institution deposits, investment
pools and money market mutual funds will provide daily liquidity and may be
utilized as a competitive yield alternative to fixed maturity investments.
Marketability – Investments with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement. Historical
market “spreads” between the bid and offer prices of a particular security-type
of less than a quarter of a percentage point will define an efficient secondary
market.
Diversification – Investment maturities should be staggered throughout the
budget cycle to provide cash flow based on the anticipated operating needs of
the City. Diversifying the appropriate maturity structure up to the three-year
maximum will reduce interest rate risk.
Yield – Attaining a competitive market yield for comparable investment-types
and portfolio restrictions is the desired objective. The yield of an equally
weighted, rolling three-month Treasury Bill portfolio will be the minimum
yield objective.
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B. Debt Service Funds
Suitability – Any investment eligible in the Investment Policy is suitable for
Debt Service Funds.
Safety of Principal – All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur. However, by
managing Debt Service Funds to not exceed the debt service payment schedule
the market risk of the overall portfolio will be minimized. The stated final
maturity date on investments purchased shall not exceed the debt service
payment date unless excess funds are available. In that case, maximum
maturities shall not exceed two (2) years from the date of purchase.
Liquidity – Debt Service Funds have predictable payment schedules.
Therefore, investment maturities should not exceed the anticipated cash flow
requirements. Financial institution deposits, investments pools, and money
market mutual funds may provide a competitive yield alternative for short-
term fixed maturity investments. A singular repurchase agreement may be
utilized if disbursements are allowed in the amount necessary to satisfy any
debt service payment. This investment structure is commonly referred to as a
flexible repurchase agreement.
Marketability – Investments with active and efficient secondary markets are
not necessary as the event of an unanticipated cash flow requirement is not
probable.
Diversification – Market conditions influence the attractiveness of fully
extending maturity to the next “unfunded” payment date. Generally, if
investment rates are anticipated to decrease over time, the City is best served
by locking in most investments. If the interest rates are potentially rising, then
investing in shorter and larger amounts may provide advantage. At no time
shall the debt service schedule be exceeded in an attempt to bolster yield.
Yield – Attaining a competitive market yield for comparable investment-types
and portfolio restrictions is the desired objective. The yield of an equally
weighted, rolling three-month Treasury Bill portfolio shall be the minimum
yield objective.
C. Debt Service Reserve Funds
Suitability – Any investment eligible in the Investment Policy is suitable for
Debt Service Reserve Funds. Bond resolution and loan documentation
constraints and insurance company restrictions may create specific
considerations in addition to the Investment Policy.
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Safety of Principal – All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur. However, by
managing Debt Service Reserve Fund maturities to generally not exceed the
call provisions of the borrowing will reduce the investment’s market risk if the
City’s debt is redeemed and the Reserve Fund liquidated. No stated final
investment maturity shall exceed the shorter of the final maturity of the
borrowing or five years. Annual mark-to-market requirements or specific
maturity and average life limitations within the borrowing’s documentation
will influence the attractiveness of market risk and influence maturity
extension.
Liquidity – Debt Service Reserve Funds have no anticipated expenditures.
The Funds are deposited to provide annual debt service payment protection to
the City’s debt holders. The funds are “returned” to the City at the final debt
service payment. Market conditions and arbitrage regulation compliance
determine the advantage of investment diversification and liquidity.
Generally, if investment rates exceed the cost of borrowing, the City is best
served by locking in investment maturities and reducing liquidity. If the
borrowing cost cannot be exceeded, then concurrent market conditions will
determine the attractiveness of locking in maturities or investing shorter and
anticipating future increased yields.
Marketability – Investments with less active and efficient secondary markets
are acceptable for Debt Service Reserve Funds.
Diversification – Market conditions and the arbitrage regulations influence
the attractiveness of staggering the maturity of fixed rate investments for Debt
Service Reserve Funds. At no time shall the final debt service payment date
of the bond issue be exceeded in an attempt to bolster yield.
Yield – Achieving a positive spread to the applicable borrowing cost is the
desired objective. Debt Service Reserve Fund portfolio management shall
operate within the limits of the Investment Policy’s risk constraints.
D. Natural Gas Account
Suitability – Any investment eligible in the Investment Policy is suitable for
the Natural Gas Account.
Safety of Principal – All investments shall be of high quality with no
perceived default risk. Market price fluctuations will occur. However,
managing the weighted average days to maturity to less than 365 days and
restricting the maximum allowable maturity to three years using the final stated
maturity dates of each investment will minimize the price volatility of the
portfolio.
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Liquidity – Natural Gas Account funds require moderate short-term liquidity.
Short-term financial institution deposits, investment pools and money market
mutual funds will provide daily liquidity and may be utilized as a competitive
yield alternative to fixed maturity investments.
Marketability – Investments with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement. Historical
market “spreads” between the bid and offer prices of a particular security-type
of less than a quarter of a percentage point will define an efficient secondary
market.
Diversification – Investment maturities should be staggered throughout the
anticipated expenditure schedule. Diversifying the appropriate maturity
structure up to the three-year maximum will reduce interest rate risk.
Yield – Attaining a competitive market yield for comparable investment-types
and portfolio restrictions is the desired objective. The yield of an equally
weighted, rolling three-month Treasury Bill portfolio will be the minimum
yield objective.
XV. Internal Control
The City, in conjunction with its annual financial audit, shall perform a compliance audit
of management controls on investments and adherence to the City's Investment Policy.
XVI. Performance Standards
The City intends to pursue an active versus a passive portfolio management philosophy.
That is, investments may be sold or redeemed before they mature if market conditions
present an opportunity for the City to benefit from the trade.
The investment portfolio shall be designed with the objective of obtaining a rate of return
throughout budgetary and economic cycles that is consistent with risk limitations and
cash flow needs of the City. “Weighted average yield to maturity” shall be the portfolio
performance measurement standard.
XVII. Reporting
Investment Officers shall submit a monthly report to City Council summarizing the
results of the City's investment activity. This report shall include the status of the current
portfolio position, performance, trading activity, interest earnings, and collateral.
A quarterly report shall be submitted to the City Manager, as Chief Executive Officer,
and the City Council detailing investment transactions and performance for the reporting
period in accordance with State law. The report shall be jointly prepared and signed by
all Investment Officers. It shall include a summary statement prepared for each fund
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type and a detailed listing that states the beginning market value, ending market value
and fully accrued interest for the period. In addition, Investment Officers shall report on
adherence to the City's investment strategies as expressed in this Policy.
In conjunction with the annual audit, the quarterly reports shall be formally reviewed by
the City’s independent auditor on an annual basis and the results of the review shall be
reported to City Council.
XVIII. Investment Policy Adoption
The City's Investment Policy is hereby adopted by resolution of the City Council. The
City Council shall review and approve the Policy on an annual basis. This Policy serves
to satisfy the statutory requirement to define and adopt a formal investment policy.
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EXHIBIT
15
Exhibit A
CITY OF BEAUMONT
Approved List
Broker/Dealers
Broker/Dealers:
FHN Financial Capital Markets
Oppenheimer & Co.
RBC Capital Markets
Wells Fargo Securities
Hancock Whitney
PNC Investments LLC
Hilltop Securities
Crews & Associates
E
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a Resolution authorizing the City Manager to
execute a lease agreement renewal with the Beaumont Art League.
BACKGROUND
The Beaumont Art League is located at 2675 Gulf Street and has a mission of supporting the
visual arts and arts education in Southeast Texas. The City owns the land and building and has
leased the property to the Art League since 1977. The proposed agreement will provide for a five
year lease, beginning September 1, 2023 and will end on August 31, 2028. Agreement is
attached.
FUNDING SOURCE
The lease cost is $1 per year and the City will receive $5.00 upon execution of the agreement.
RECOMMENDATION
Approval of Resolution
ATTACHMENTS
Beaumont Art League Agreement
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 a Lease
Agreement between the City of Beaumont and the Beaumont Art League for the lease of
property located at 2675 Gulf Street for a five (5) year term commencing on September
1, 2023 and ending on August 31, 2028. The Lease Agreement is substantially in the form
attached hereto as Exhibit “A” and made a part hereof for all purposes.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
Page 1 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
THE STATE OF TEXAS
COUNTY OF JEFFERSON §
LEASE AGREEMENT
THIS LEASE CONTRACT, dated September 1, 2023, by and between the CITY OF
BEAUMONT, a municipal corporation of Jefferson County, Texas, acting herein by and through its
duly authorized City Manager, hereinafter referred to as LESSOR, and the BEAUMONT ART
LEAGUE, a corporation of Jefferson County, Texas, acting herein by and through its legally
constituted officers, hereinafter referred to as LESSEE;
WITNESSETH:
For and in consideration of the sum of Five Dollars ($5.00) ($1.00 per year) and the
performance by LESSEE of the covenants and conditions hereinafter recited, LESSOR does by
these presents lease, let and demise unto LESSEE the following described property and
improvements thereon, located within the City of Beaumont, Jefferson County, Texas, and being
part of Fair Park, and more particularly described as follows:
Being a tract of land out of the South Texas State Fair Grounds property in the James Drake
Survey in the City of Beaumont, Jefferson County, Texas, and being more particularly
described as follows:
Beginning at a point lying sixty-seven and sixty-five hundredths feet (67.65') west of the west
line of Gulf Street and three hundred sixty-one and thirty-five hundredths feet (361.35') north
of the north line of Plum Avenue as both are now established in the City of Beaumont, said
point being marked by a one-half inch (1/2") iron rod;
Thence west two hundred two feet (202') to corner marked by a one-half inch (W') iron rod,
said point being at the south edge of an existing concrete walk and being thirty feet (30') east
of the easterly line projected of what is now known as the Agricultural Building;
Thence south 00 degrees 03 minutes west along a line parallel with and thirty feet (30') east
of the easterly line of said Agricultural Building ninety-six and sixty-five hundredths feet
(96.65') to corner marked by a one-half inch (W') iron rod, said point being in line with the
southerly line of said Agricultural Building projected eastward;
Thence south 89 degrees 54 minutes east along the southerly line of said Agricultural
Building projected eastward two hundred two feet (202') to corner marked by a one-half inch
(A") iron rod;
Thence north 00 degrees 03 minutes east ninety-seven feet (97') to the place of beginning;
Page 2 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
The above described tract, herein referred to as Leased Premises, contains 0.449 acres and
improvements, more or less;
1. The lease shall be for a term of five (5) years, beginning September 1, 2023 and ending on
August 31, 2028, unless terminated as provided for herein.
2. At the expiration of the term of this lease, LESSEE may hold over on a month-to-month
basis only under the same terms and conditions as set out in this lease.
3. The Leased Premises (see Exhibit “A”) hereunder shall be used by the LESSEE for the
purpose of advancing the arts and for such other further purposes as the LESSEE desires in the
furthering of fine arts.
4. LESSOR reserves the right to park motor vehicles on the Leased Premises in connection with its
use of the premises for purposes of advancing the arts.
5. LESSOR, its employees and agents, shall have the right at all times to go on or about
the said premises for the purpose of inspecting same, or for any other legitimate purpose.
6. LESSEE shall not make alterations, additions or improvements to the Leased Premises or
buildings thereon without the prior written approval of the City Manager of LESSOR or his
DESIGNEE, and all such alterations, improvements and additions made by LESSEE upon
the Leased Premises shall remain upon the Leased Premises at the expiration of this lease and
become the property of LESSOR.
7. LESSEE shall be responsible for any and all maintenance, repairs, and improvements, either
major or minor, that are necessary to the Leased Premises and LESSEE agrees to keep the
Leased Premises in a good state of repair throughout the term of this lease or any extension
thereof. LESSOR agrees to pay all utility charges during the term of this lease and any
extensions. On the expiration of this lease, LESSEE shall deliver the premises described
herein and all improvements thereon to LESSOR in good condition.
LESSOR may, at its own cost and expense, make improvements or repairs to the Leased
Premises, subject to the appropriation of City funds, although LESSOR is under no
obligation to do so. The LESSOR shall consult with LESSEE prior to making said
improvements.
8. LESSEE shall not sublease or rent any portion of the Leased Premises without the prior
written consent of the LESSOR.
9. LESSEE agrees to indemnify and save the LESSOR free and harmless from all
claims or liability for damages to any person or persons for injuries to person or
Page 3 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
personal injuries resulting in the death of any person, or loss or damage to
property occasioned by or in connection with the use- of the premises hereby
rented caused by any source whatsoever, expressly including claims arising from
the alleged negligence of LESSOR. LESSEE hereby assumes full responsibility for
the character acts and conduct of all persons admitted to said premises, or to any
portion of said building by the consent of said LESSEE, by or with the consent of
the said LESSEE.
10. LESSEE agrees to obtain and maintain in full force and effect for the duration of this
Agreement, and any extension thereof, Commercial General Liability Insurance on the
Leased Premises in the following types and amounts:
10.1 Premises Operations
10.2 Independent Contractors
10.3 Personal Injury
10.4 Advertising Injury
10.5 Medical Payments
10.6 Fire Legal Liability
10.7 Contractual Liability
Combined single limit for bodily
injury and property damage of
$500,000.00 per occurrence with an
aggregate limit of $500,000.00
$5,000.00
$50,000.00
$500,000.00
The cost of said policies shall be borne by LESSEE, and said policies shall name LESSOR as
a named insured as well as LESSEE. Policies shall provide for fifteen (15) days’ notice to
LESSOR for cancellation, non-renewal or material change.
LESSEE shall further maintain fire insurance with extended coverage endorsements on a
replacement basis for the full insurable value covering all of the Leased Premises, with the
LESSOR named as co-loss payee. This policy shall be for a term of not less than one (1) year
and renewed annually prior to expiration so long as this lease is in existence. Certificates
evidencing said insurance shall be provided to the LESSOR. The certificate shall provide for a
minimum of fifteen (15) days’ notice to LESSOR of any cancellation of the insurance required
herein. Should the Leased Premises or any portion thereof be wholly or partially destroyed or
lost by fire, explosion, windstorm, theft or any other cause, any and all monies payable and
collectible on policies of insurance covering the Leased Premises shall be paid to LESSOR.
LESSOR shall have sole discretion concerning whether to rebuild or repair the Leased
Premises or take no action to rebuild or repair. LESSOR has no insurance on contents within
the Leased Premises. Should LESSEE desire to insure contents, LESSEE must provide such
insurance at its own cost and expense.
Should LESSOR opt not to repair the Leased Premises after an insured loss then LESSEE
may at its option terminate this lease and whether it terminates or not, shall have no
Page 4 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
responsibility to repair the damages caused by the insured loss to the Leased Premises,
notwithstanding the provisions of Paragraph 6.
11. Either party may terminate the lease agreement upon sixty (60) days’ notice in writing to the
other party. In the event of termination LESSEE agrees to remove its property from the
leased premises and to leave the premises in good repair without damage.
12. LESSOR reserves the right to enter into Agreements with other entities at any time during the
term of this Agreement, or any extension thereof, which may limit access to Leased Premises as
described.
13. This lease is made subject to all provisions of the City Charter of the City of Beaumont,
Texas.
EXECUTED in duplicate originals this __________ day of ______________________________, 2023.
LESSOR:
CITY OF BEAUMONT ATTEST:
BY: _____________________________________ _____________________________________
KENNETH R. WILLIAMS TINA BROUSSARD, CITY CLERK
LESSEE:
BEAUMONT ART LEAGUE ATTEST:
BY: _____________________________________ _____________________________________
DR. SHEILA BISHOP, PRESIDENT (Typed or Printed Name and Signature)
Page 5 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
Page 6 of 6 – City of Beaumont/Beaumont Art League - Lease Agreement 2023
1
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution approving an ordinance to amend
Article 6.10 Gaming Sites and Gaming Machines.
BACKGROUND
The Planning and Community Development proposes to amend Article 6.10 Gaming Sites and
Gaming Machines. Game rooms often result in gambling activities and increase calls for service
from Police and Fire Departments. The intent of the proposed amendments is to increase City
oversight of game rooms and their operators in order to improve public safety and oversight.
These changes should better insulate sensitive communities by better buffering children,
churches, hospital, residential districts from gaming sites, while also decreasing concentration by
establishing distance requirements between established game rooms.
Currently, direct costs to the City exceed approximately $500,000 per year. An increase in fees
will allow the program to become self-funding for processing applications, inspections and
enforcement. A work session was conducted on September 12, 2023 to review the proposed
changes. Attached are the proposed amendments.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the ordinance.
ATTACHMENTS
Gaming Ordinance Draft
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING ARTICLE 6.10 GAMING SITES
AND GAMING MAHCHINES.
Division 1. Generally
Sec. 6.10.001 Definitions.
For the purposes of this Article, the following definitions shall apply unless the context
clearly indicates or requires a different meaning:
Accessory Gaming. A building, facility, or other place that contains five (5) or less
amusement redemption machines and is considered accessory to a business with an
existing certificate of occupancy on record with the Building Codes Department.
Accessory gaming shall be in strict compliance with the regulations of Article 6.10 unless
otherwise specified.
Amusement Redemption Machines. Means any electronic, electromechanical, or
mechanical contrivance designed, made, and adopted for bonafide amusement purposes
that rewards the player exclusively with non-cash merchandise, prizes, toys, or novelties,
or a representation of value redeemable for those items, that have a wholesale value
available from a single play of the game or device of not more than ten (10) times the
amount charged to play the game or device once, or $5.00, whichever amount is less.
Applicant. The applicant is the intended owner of the game room.
City Manager. The City Manager of the City of Beaumont or the designated
representative of the City Manager.
Chief Building Official. The Chief Building Official for the City of Beaumont or the
designated representative of the Chief Building Official.
Church. A building, in possession of a certificate of occupancy, in which persons regularly
assemble for purposes of religious worship, intended primarily for purposes connected
with such worship or for propagating a particular form of religious belief.
Coin Operated Machine. Any kind of machine or device operated by or with a coin or
other United State currency, metal slug, token, electronic card, or check including a skill
or pleasure coin operated machine.
Child Care Facility. An establishment that provides assessment, care, training, education,
custody, treatment, or supervision for a child who is not related by blood, marriage or
adoption to the owner or operator of the facility for all or part of the twenty-four (24) hour
day whether or not the establishment operates for profit or charges for its services.
Door Attendant. An individual who acts to regulate entry of customers or other persons
into a game room.
Eight Liner. See Amusement Redemption Machines.
Fire Chief. The Chief of the City of Beaumont Fire Department or the designated
representative of the Chief of the Fire Department.
Gaming Machine. See Amusement Redemption Machines.
Game Room. A building, facility, or other place that contains six (6) or more amusement
redemption machines.
Game Room Owner. An individual who:
(1) Has ownership interest in or receives income from a game room or an amusement
redemption machine located in a game room;
(2) Is a partner, director or officer of a business, company, or corporation that has an
ownership interest in a game room or in an amusement redemption machine
located in a game room;
(3) Is a shareholder that holds more than ten (10%) percent of the outstanding shares
of a business, company, or corporation that has an ownership interest in a game
room or in an amusement redemption machine located in a game room;
(4) Has been issued by the Jefferson County Clerk an assumed name certificate for a
business that owns a game room or an amusement redemption machine located
in a game room;
(5) Signs a lease for a game room;
(6) Opens an account for utilities for a game room; or
(7) Receives a certificate of occupancy for a game room.
Game Room Permit Administrator. The Game Room Permit Administrator or the
designated representative of the Game Room Permit Administrator.
Hospital. A building, in possession of a certificate of occupancy, where the primary
function is to provide medical and/or surgical treatment to sick or injured people and or
otherwise defined by the Texas Occupations Code Chapter 241.
Operator. Individual who supervises, manages, or participates in the performance of
activities that contribute to the functioning of a game room, including the following
activities:
(1) Operates a cash register, cash drawer, or other depository on the premises of a
game room or of a business where the money earned or the records of credit card
transactions or other credit transactions generated in any manner by the operation
of a game room or activities conducted in a game room are kept;
(2) Displays, delivers, or provides to a customer of a game room merchandise, goods,
entertainment, or other services offered on the premises of a game room;
(3) Takes orders from a customer of a game room for merchandise, goods,
entertainment, or other services offered on the premises of a game room; or
(4) A door attendant.
Owner. See Game Room Owner.
Permit. A document issued by the City Manager pursuant to the terms of this Article to an
owner of a game room.
Permit Holder. An individual in possession of an unexpired permit issued pursuant to this
Article.
Police Chief. The Chief of Police of the City of Beaumont Police Department or the
designated representative of the Chief of Police.
Residential Zoning District. A zoning district which allows the use of a single-family
dwelling or two-family dwelling as listed in Section 28.03.023 Permitted uses.
School. A building, in possession of a certificate of occupancy, where persons regularly
assemble for the purpose of instruction or education together with the playgrounds, stadia
and other structures or grounds used in conjunction therewith. The term is limited to:
(1) public and private schools used for primary and/or secondary education, in which
any regular kindergarten or grades one (1) through twelve (12) classes are taught;
(2) colleges and universities; and
(3) special education facilities in which students who have physical or learning
disabilities receive specialized education in lieu of attending regular classes in
kindergarten or any grades one (1) through twelve (12);
Skill or Pleasure Coin Operated Machine. Any kind of coin operated machine that
dispenses, or is used or is capable of being used to dispense or afford amusement, skill,
or pleasure, or is operated for any purpose, other than for dispensing only merchandise,
music or service. This includes:
(1) a marble machine, marble table machine, marble shooting machine, miniature
racetrack machine, miniature football machine, miniature golf machine, miniature
bowling machine, billiard or pool game, or machine or device that dispenses
merchandise or commodities or plays music in connection with or in addition to
dispensing skill or pleasure; and
(2) does not include any amusement machine designated exclusively for a child.
Sec. 6.10.002 Declaration of Findings.
The necessity of the public interest for the provisions and prohibitions hereinafter
contained and enacted is declared as a matter of legislative determination and public
policy, and it is further declared that the provisions and prohibitions contained in sections
6.10.001 through 6.10.032 are in the furtherance of and for the purpose of securing and
promoting the public health, comfort, convenience, safety, welfare and prosperity of the
city and its inhabitants.
Division 2. Permits
Sec. 6.10.003 Permit Required.
(a) It shall be unlawful for any operator or owner of the game room to operate, use, or
maintain a game room without first obtaining a permit from the City of Beaumont
issued under the terms and conditions of this Article.
(b) It shall be unlawful for any operator, permit holder or owner of the game room to
operate, use, or maintain a game room located within the City unless a valid permit,
issued pursuant to this Article to the registered owner, for that site is posted at or
near the principal public entrance to the game room in such a manner that it will
be conspicuous to patrons who enter the game room.
(c) In any prosecution under subsection (a) above, it shall be presumed that there was
no permit at the time of the alleged offense, unless a permit was then and there
posted as provided in subsection (b).
(d) If there is a change in ownership or operation as delineated in subsection (a), a
new application and permit will be required. Additionally, after the denial or
revocation of a gaming permit, a new application will be required and is not
considered to be a renewal.
(e) A game room owner shall obtain a permit from the City of Beaumont, prior to
operation, for each game room located in the City.
(f) The application for a permit required by this section shall be in the form prescribed
by the Game Room Permit Administrator and shall contain such information as
they shall require. Any failure to provide the information required by this section
or a determination is made that inaccurate, erroneous or incomplete information
has been submitted shall be grounds for denial of the application.
(g) The proposed game room must comply with all locally adopted ordinances and
comply with all federal and state statutes and regulations at the time of the
submission of the application for a permit.
(h) Each application shall also be accompanied by:
(1) A copy of a certificate of occupancy issued by the Chief Building Official as
appropriate for the proposed game room;
(2) In the case of a game room to be operated under an assumed name, a true
and correct copy of the registration of the assumed name filed in the office
of the Jefferson County Clerk, bearing the file mark or stamp that evidences
its filing in that office; and
(3) In the case of a game room to be operated as a corporate entity, a true and
correct copy of the Texas Secretary of State corporate filing documents,
bearing the file mark or stamp that evidence filing with the Texas Secretary
of State.
(4) Non-refundable fee(s) as listed in section 6.10.025, Fee Schedule.
i. Each application received under this section will be investigated to
determine whether the permit holder, applicant, owner(s), and
operators of a game room have been convicted of any of the
following offenses:
(5) Gambling, gambling promotion, keeping a gambling place, communicating
gambling information, possession of gambling devices or equipment, or
possession of gambling paraphernalia as described in Tex. Penal Code Ch.
47;
(6) Forgery, credit card abuse, or commercial bribery as described in Tex.
Penal Code Ch. 32;
(7) Money laundering as described in Tex. Penal Code Ch. 34;
(8) Criminal attempt, conspiracy or solicitation to commit any of the foregoing
offenses; or any other offense to the laws of another state or the United
States that, if committed in this state, would have been punishable as one
or more of the aforementioned offenses; or
(9) A criminal offense as described in Tex. Local Government Code Ch. 352,
subch. B; and
i. Less than two (2) years have elapsed since the date of conviction or
the date of release from confinement for the conviction, whichever is
the later date, if the conviction is of a misdemeanor offense; or
ii. Less than five (5) years have elapsed since the date of conviction or
the date of release from confinement for the conviction, whichever is
the later date, if the conviction is of a felony offense.
(i) A conviction, within the past ten (10) years, for an offense involving gambling and
the possession of gambling paraphernalia, as defined above, shall be grounds for
denial, revocation, or refusal to renew such licenses because these businesses
offer special opportunities for gambling activities.
(j) Any failure of a proposed game room to meet all requirements of this section shall
be grounds for denial, revocation, or suspension of a game room license.
(k) Each game room permit is valid for one (1) year and shall expire on the anniversary
date of the issuance of the permit. A permit may be renewed for the following
calendar year beginning sixty (60) days before the expiration of the current permit
by filing a completed application for each permit and paying the applicable fee set
forth in section 6.10.025, Fee Schedule.
(l) A machine that provides the possibility, probability and/or certainty of dispensing
a non-cash prize, toy, or novelty with a value of not more than ten (10) times the
amount charged to play the game or device once, or $5.00, whichever is less at
the time of play, but does not allow the player to amass or accumulate points,
tokens or any other method to accumulate credits towards larger or greater value
non-cash merchandise prizes, toys, or novelties is exempt from the requirements
of this Article.
Sec. 6.10.004 Machine Registration Requirements.
Gaming machines, as defined in this Article, shall be registered as follows:
(a) The permit holder, game room owner(s) or operators are required to maintain in
its game room a complete inventory list, along with serial numbers or equivalent
identification, as set forth in subsections (d) and (e) below at all times. The initial
application for permit shall include a certificate of the inventory, along with serial
numbers or equivalent identification, as set forth in subsections (d) and (e) below,
of the machines that the permit holder intends to put into operation when the game
room begins its business activities.
(b) Each renewal permit application shall contain a certificate of inspection of updated
inventory list, along with serial numbers or equivalent identification, as set forth in
subsections (d) and (e) below, of the gaming machines that the permit holder
intends to put into operation when the game room begins its business activities
under the renewal license.
(c) Before a new gaming machine is put into operation at the game room, the permit
holder shall update the inventory list and register the gaming machine with the City
and pay all taxes and regulatory license fees as required. Changes or additions
to the inventory list submitted separately from the initial application are subject to
the regulatory enforcement license fee listed in section 6.10.025, Fee Schedule.
(d) Upon review of the inventory of machines under subsections (a), (b) and (c) above,
the City of Beaumont registration decal will be issued for each gaming machine.
The registration decal will contain an inventory number. The registration decal for
each machine shall be permanently affixed thereto and in plain view at all times
and shall match the Texas Comptroller issued identification number displayed on
the machine as indicated on the submitted inventory list as described under
subsection (a). Registration decals are not transferable. The failure of any
machine to display a current registration decal shall be a violation of this section
and subject to enforcement action by the City.
(e) The inventory of machines under subsections (a), (b) and (c) above shall provide
the following information: the manufacturer(s); the serial number(s); common
name, type or description of the game played on the machine. The registration
decal shall contain the inventory number of the machine.
(f) A penalty as listed in section 6.10.032 will be assessed against each unregistered
machine found to be in operation at a game room.
Sec. 6.10.005 Site Plan Required.
(a) A site plan of the location must be provided upon initial application or a permit
renewal if modifications to the site have been made or gaming machines have
been added. The site plan must include the following details:
(1) Overall view of the property;
(2) Parking spaces for the location;
(3) Floor plan of building(s);
(4) Location of gaming machine(s); and
(5) Location of windows and doors.
Sec. 6.10.006 Certificate of Occupancy Required.
(a) It shall be unlawful to operate any game room located within the City unless the
certificate of occupancy issued for that site is posted at or near the principal public
entrance to the game room in such a manner that it will be conspicuous to patrons
who enter the game room.
(b) All associated laws, ordinances and adopted codes shall apply to obtaining said
certificate of occupancy.
Sec. 6.10.007 Initial Application and Renewal Application Requirements.
(a) A permit issued under this Article does not vest any property rights in the applicant
or permit holder; except to display, exhibit or maintain for public patronage the use
of any gaming machines in accordance with the terms and conditions of this Article.
(b) A permit is non-transferable and non-refundable.
(c) A permit shall be issued for a twelve (12) month term beginning on the date of
issuance.
(d) Any false statement made by an applicant on the application shall subject the
permit to immediate suspension, pending revocation, and the applicant may be
prosecuted as a violation of section 37.10 of the Texas Penal Code (tampering
with governmental records), a third-degree felony.
(e) An application for permit shall be made by the intended game room owner(s) of
the game room.
(f) Prior to application of a gaming permit, a gaming locate form shall be submitted to
the City in a form prescribed by the Game Room Permit Administrator for each
proposed location to ensure distancing requirements are met in accordance with
section 6.10.021 and collect fees as listed in section 6.10.025, Fee Schedule.
(g) The gaming permit application must be submitted with the following:
(1) A copy of a certificate of occupancy issued by the Chief Building Official of
the City for the proposed game room;
(2) A list of game room owner(s) and operators with fingerprint reports of the
game room owner(s) and operators of the proposed game room;
(3) Name, address and telephone number of the game room owner(s) and
operators, including the trade name by which owner(s) and operators does
business and the street address of the proposed game room, and, if
incorporated, the name registered with the Secretary of State;
(4) In the case of corporate ownership, a copy of the certificate of incorporation;
(5) In the case of a game room to be operated under an assumed name, a true
and correct copy of the registration of the assumed name filed in the office
of the Jefferson County Clerk, bearing the file mark or stamp that evidences
its filing in that office;
(6) An inventory list, along with serial numbers or equivalent identification, as
set forth in subsections 6.10.004 (d) and (e), of the machines that the permit
holder intends to put into operation when the game room begins its business
activities;
(7) A game room permit shall not be issued to the applicant unless the applicant
acknowledges the following statement in the application:
i. I am applying for a permit to operate a game room. I have actual
knowledge of the operation of a game room. I acknowledge that any
person operating a game room under this permit will do so under my
direction and control. I further acknowledge that I may be held
criminally liable for illegal activity associated with the game room
under this permit, including gambling, gambling promotion, or
keeping a gambling place under Chapter 47 of the Penal Code;
operating an unauthorized game room under Chapter 6 of the City
Code; and other applicable penal statutes.
(8) A game room permit shall not be issued to the applicant unless that
application is signed by a natural person:
i. Who is
a. The property owner or,
b. If the property owner is a business organization, a natural
person who attaches to the application documentary evidence
demonstrating that they are authorized to sign the application
on behalf of the property owner; and
ii. Who signs the following acknowledgement;
a. I have actual knowledge of the operation of a game room
under this permit. I acknowledge that any person operating a
game room under this permit will do so under my direction and
control. I further acknowledge that I may be held criminally
liable for illegal activity associated with the game room under
this permit, including gambling, gambling promotion, or
keeping a gambling place under Chapter 47 of the Penal
Code; operating an unauthorized game room under Chapter
6 of the City Code; and other applicable penal statutes.
(9) A site plan as set forth in section 6.10.005;
(10) The application or renewal fee as listed in the fee schedule in section
6.10.025;
(11) The occupation tax fee per machine as listed in the fee schedule in section
6.10.025;
(12) Whether a previous permit of the game room owner(s) and operators or, if
applicable, a corporate officer of the game room owner(s) and operators has ever been
revoked;
(13) A statement that all the facts contained in the application are true and correct;
and
(14) Proof of having submitted to and passed any applicable annual inspections.
(h) Any false statement made by an applicant on the application shall subject the permit
to immediate suspension, pending revocation, and the applicant may be prosecuted as a
violation of V.T.C.A., Penal Code 37.10 (tampering with evidence), a third-degree felony.
Sec. 6.10.008 The Application Process.
(a) The application process shall commence upon the submission of a complete
application, with all required attachments and the application fee, to the Game
Room Permit Administrator.
(b) Once a complete application has been received, the Fire Chief will conduct up to
three (3) inspections of the applicant’s proposed game room to ensure compliance
with these regulations. The game room owner must be present, in person, during
these inspections.
(1) The Fire Chief shall conduct the initial inspection within twenty-one (21)
days of receipt of the completed application and payment of the regulatory
enforcement license fees as listed in section 6.10.025, Fee Schedule. It
shall be the responsibility of the applicant to schedule all required
inspections.
(2) After the initial inspection, the applicant will be informed of what corrections,
if any, must be made to the proposed game in order to comply with these
regulations.
(3) If necessary, a second inspection will be performed not less than seven (7)
days no more than fourteen (14) days after the initial inspection. After this
inspection, the applicant will again be informed of what corrections must be
made to the proposed game room, if any, in order to comply with these
regulations.
(4) If necessary, a third and final inspection will be performed not less than
seven (7) days no more than fourteen (14) days after the second inspection.
A re-inspection fee as listed in section 6.10.025 shall be paid prior to
conducting the third inspection. If, after the third and final inspection, the
proposed game room fails to comply with these regulations, the Game
Room Permit Administrator shall deny the application.
(5) If the proposed game room passes inspection and meets all requirements
of these regulations after any inspection, the Game Room Permit
Administrator shall approve the application.
(c) Failure to provide any information required by this section or a determination by
the Game Room Permit Administrator that inaccurate, erroneous, or incomplete
information has been submitted shall be grounds for denial of the application.
Sec. 6.10.009 Grounds for Denial or Revocation.
(a) The Game Room Permit Administrator shall refuse to approve the issuance or
renewal of a permit or shall revoke a permit for one or more of the following
reasons:
(1) A false statement as to a material matter made in an application for a permit;
(2) Revocation of a permit, issued to the applicant pursuant to this Article, for
any reason within one (1) year;
(3) The owner or operator for such permit has, within the past ten (10) years,
been convicted of a crime involving moral turpitude or gambling.
(b) The Game Room Permit Administrator shall not issue or renew a permit under this
Article and shall suspend or revoke a permit if it is determined that the applicant or
permit holder is indebted to the City for any fee, costs, penalties, or delinquent
taxes at the time of application or renewal.
(c) The Game Room Permit Administrator shall have the authority to deny or revoke
all permits issued under this provision for any violation of this Article by giving
written notice, stating the reason(s) for denial or revocation, and same shall be
cancelled thirty (30) days from the date of receipt of such notice; unless the
applicant resolved all violations listed in the written notice, if applicable.
(d) No permit shall be issued to an applicant whose permit has been revoked within
one (1) year of the revocation, except through the appeals process as described
in section 6.10.010.
Sec. 6.10.010 Appeal from Denial or Revocation.
If the Game Room Permit Administrator denies, or refuses to approve the issuance of a
permit or the renewal of a permit to an applicant, or revokes a permit issued under this
Article, this action is final unless the applicant or permit holder, within ten (10) days after
the receipt of written notice of the action, files a written appeal to the City Council by
delivering said notice to the City Clerk setting forth specific grounds for the appeal. The
City Council shall hear the appeal or select a hearing officer to preside over the appeal
hearing. The City Council or hearing officer shall within fourteen (14) days of the notice
of appeal, grant a hearing to consider the action. The City Council and hearing officer
have the authority to sustain, reverse, or modify the action appealed. The decision of
either the City Council or hearing officer is final.
Sec. 6.10.011 Transfer of Permit.
A permit issued under the provisions of this Article shall be specific to the site and
personal to the applicant thereof and shall not be transferable or assignable.
Sec. 6.10.012 Replacement Permits or Decals.
(a) A replacement permit shall be issued to the original applicant for one lost,
destroyed, or mutilated after an application is submitted with the fee listed in
section 6.10.025, Fee Schedule to the Game Room Permit Administrator on a form
provided by the City for such purpose.
(b) A replacement permit shall bear the same expiration date as the one it replaces.
Sec. 6.10.013 Occupation Tax.
(a) Every permit holder who controls, possesses, exhibits, or displays, or who permits
to be exhibited or displayed in the City for public patronage or operation by the
public, any gaming machines shall pay, and is hereby levied on each such gaming
machine, except those exempt under this Article, an annual occupation tax in the
amount equal to one-fourth (1/4) of the current state occupation tax. All occupation
taxes for gaming machines are payable annually in advance. The fee for issuing
a replacement occupation tax receipt for one lost, destroyed or mutilated shall be
fifteen dollars ($15.00), listed in section 6.10.025, Fee Schedule.
(b) Since the tax is payable in advance on an annual calendar year basis, the following
pro rata tax rate schedule will be applicable to a gaming machine which is first
exhibited or displayed for a commercial use within the City during any quarter of
the calendar year:
(1) First quarter: January 1 to March 31 – an amount equal to the applicable
local annual occupation tax;
(2) Second quarter: April 1 to June 30 – an amount equal to three-quarters (3/4)
of the applicable local annual occupation tax;
(3) Third quarter: July 1 to September 30 – an amount equal to one-half (1/2)
of the applicable local annual occupation tax; and
(4) Fourth quarter: October 1 to December 31 – an amount equal to one-quarter
(1/4) of the applicable local annual occupation tax.
(c) In computing any tax payable under the aforesaid pro rata tax schedule, amounts
calculated thereunder shall be rounded to the next higher full cent amount as
required.
Division 3. Inspections
Sec. 6.10.014 Inspections; Compliance.
(a) The game room shall conform to all locally adopted ordinances and comply with
all federal, state, and local ordinances and regulations relevant to the operation of
a game room or gaming machine.
(b) The Fire Chief, the Chief Building Official, all law enforcement, and all code
enforcement officials shall have the right to immediately access to the area of the
game room where gaming machines are located at any time during normal
business hours or when the site is occupied for the purpose of inspecting said
game room and enforcement of the terms of this Article and state law.
(c) A game room owner, operators, or any person who does not allow immediate
access to the area of the game room where gaming machines are located to
officials for the purpose of inspection or enforcement commits an offense under
this article.
Sec. 6.10.015 Fire and Life Safety.
(a) A game room shall provide doors that are readily accessible without the use of a
key, buzzer, or special knowledge or effort, during business hours or any other
hours of operation.
(b) A game room or commercial establishment shall comply with all Building and Fire
Codes, and shall pay any court-approved fees associated with a fire and life safety
inspection, plan review, occupancy load calculation, or complaint.
(c) All Building and Fire Code regulations will be strictly enforced and game rooms
shall provide the Fire Chief with immediate access to the premises at all times.
Sec. 6.10.016 Operating Hours of Gaming Machines.
(a) It shall be the duty of the game room owner, permit holder and operators of a game
room to ensure compliance with this subsection. The owner, permit holder and
operators of a game room are liable for compliance with this subsection.
(b) A game room shall operate only between the hours of 9:00 a.m. and 10:00 p.m.
Monday through Sunday. Outside of operating hours, all gaming machines located
at a game room must be made physically inaccessible to the public and unusable
from 10:00 p.m. to 9:00 a.m. Each hour and/or portion of an hour that a gaming
machine is accessible and operational during prohibited hours is a separate
violation.
(c) Accessory gaming shall operate only between the hours of 9 a.m. and 10:00 p.m.
Monday through Sunday. Outside of operating hours, the machines must be made
inoperable from 10:00 p.m. to 9 a.m. Each hour and/or portion of an hour that a
gaming machine is operational during prohibited hours is a separate violation.
(d) The game room owner, permit holder and operators of a game room that operate
a game room in violation of this subsection shall be assessed a penalty as listed
in Sec. 6.10.031. Each hour and/or portion of an hour that a game room is
operational during prohibited hours is in violation of these regulations and is a
separate violation.
(e) A person commits a Class C misdemeanor offense if they intentionally or
knowingly operate a game room in violation of this section.
Sec. 6.10.017 Signage.
(a) Notwithstanding section 28.04.003 of the Code of Ordinances or any other City
ordinance, code or regulation to the contrary, it shall be unlawful for the operators
or owner of a game room to not to clearly identify the site with a sign as required
by this Article.
(b) The sign displayed should be one provided by the City with a white background
with black Arial font lettering of 1.5 inches.
(c) The sign must clearly read “GAME ROOM” for establishments with six (6) or more
amusement redemption machines and may not include any advertisements.
(d) The sign must clearly read “ACCESSORY GAMING” for establishments with five
(5) or less amusement redemption machines and may not include any
advertisements.
Sec. 6.10.018 Transparent, Uncovered Windows Required.
(a) Every game room shall have transparent, unobstructed windows or open space on
at least one side so that the area is open to view by the general public passing by
on a street. The owner or operators of a game room shall not permit any
obstruction of such public view by the use of drawn shades, blinds, partitions,
tinting or other structure or obstructions. Violation of this section will result in the
penalty listed in section 6.10.032.
(b) The requirement of subsection (a) may be waived or modified by the Game Room
Permit Administrator if the owner can demonstrate all of the site’s gaming
machines are visible upon entering the premises from the front door.
Sec. 6.10.019 Security Camera System Required.
(a) All game rooms must have Closed Caption Television (CCTV) camera systems
and/or security monitoring system at the owner’s expense. Those systems and
any records or recordings made by those systems shall be stored such that they
can be made available to law enforcement or City officials upon request. It shall
be a violation of this section if any requested footage or other records have been
deleted, recorded over, or otherwise made irretrievable by any person. The
security monitoring system must be installed such that all amusement redemption
machines within the building are being monitored at all times.
Sec. 6.10.020 Game Room Memberships.
(a) It shall be the duty of the game room owner, permit holder and operators to ensure
compliance with this subsection.
(b) Game room memberships are prohibited for any purpose.
(c) A game room shall not restrict entry to a game room and/or prohibit the
participation in any activity inside a game room by a patron through the
requirement of a game room membership.
(d) Game rooms shall not issue membership cards to any individual for any purpose.
(e) A person who operates a game room in violation of this subsection shall be
assessed a fine as listed in section 6.10.032. Each person denied entry based on
any requirement of a game room membership is considered a separate violation.
Each day a violation occurs or continues to occur is considered a separate
violation.
(f) Any violation of this subsection is grounds for denial, revocation, or suspension of
a game room permit.
Sec. 6.10.021 Prohibited Locations.
(a) Game rooms must comply with the City of Beaumont Zoning Regulations.
(b) A game room in operation shall not be located:
(1) within 600 feet from any school, child care facility, church, hospital, or
residential zoning district; or
(2) within a distance of 1,000 feet from an existing game room. Accessory
gaming is exempt from this requirement.
(c) The measurement of the distance between the place of business and an existing
game room, residential zoning district, child care facility, church, hospital, or school
shall be determined by measurements made in a straight line, without regard to
intervening structures or objects, from the nearest point on the applicant’s property
line to the nearest point of the residential zoning district, child care facility, church,
hospital or school property line.
(d) Game rooms are exempt from these distancing restrictions upon proof that the
game room location held a valid permit for the year preceding re-application. If the
game room permit is suspended, revoked, denied renewal, allowed to lapse, or
otherwise the game room does not have a valid permit for any period of time, then
the game room will be considered a new game room and not exempt from the
distancing requirements.
Sec. 6.10.022 Responsibility of Permit Holder.
(a) A door attendant must be present at all times during the operating hours of the
facility. Accessory gaming is exempt from this requirement.
(b) On-premises consumption of alcohol is prohibited at any location containing
amusement redemption devices and/or skill pleasure coin operated machines.
Sec. 6.10.023 Regulatory Enforcement License Fee.
A game room owner shall be required to secure a regulatory enforcement license
annually. A game room shall be required to secure a regulatory enforcement license by
paying to the City an annual inspection and regulatory enforcement license fee as listed
in section 6.10.025, Fee Schedule for each amusement redemption machine. The
regulatory license fee is implemented to cover the costs to issue the permits, regulate the
game rooms, and to determine whether the provisions of this Article are complied with.
The annual term for all gaming machines within a game room shall have an expiration
date which coincides with the gaming room permit expiration/renewal date irrespective of
the gaming machine initial licensing date.
(a) Any back-up or replacement amusement redemption machines shall be secured
in a locked storage area or closet to which the public is not allowed to enter and
such machines shall not be connected to electricity or otherwise operational. The
occupation tax on such back-up or replacement amusement redemption machines
shall be paid annually regardless of whether such machines are used by the game
rooms. Any back-up or replacement amusement redemption machine must
comply with section 6.10.004 and pay the regulatory enforcement license fee listed
in section 6.10.025, Fee Schedule.
Sec. 6.10.024 ID Badges—Game Room Owners and Operators.
All game room owners and operators in a game room shall be required to secure an ID
badge issued from the City annually following the completion of the required background
checks as described in section 6.10.007(f)(2). ID badge fees and replacement fees are
listed in section 6.10.025, Fee Schedule. Game room owner and operator ID badges
shall be worn and visible at all times while operating and working in a game room, and
the failure to do so is a violation subject to a fine according to the penalty schedule in
section 6.10.032. An ID badge issued under the provisions of this Article shall be specific
to the site and personal to the holder thereof and shall not be transferable or assignable.
Sec. 6.10.025 Fee Schedule.
Fee Description Article Reference Fee
Gaming Locate Form Fee
Application fee
Renewal fee
Occupation tax per machine
Replacement decals
Regulatory enforcement license fee per machine
Re-inspection fee
Initial ID badge fee per person
Replacement for lost ID badge fee
6.10.007(f)
6.10.003(f)(2)
6.10.003(j)
6.10.013(a)
6.10.012(a)
6.10.023; 6.10.004(c)
6.10.008(b)(4)
6.10.024
6.10.024
$60.00
$3000.00
$3000.00
$15.00
$50.00
$700.00
$150.00
$120.00
$100.00
Division 4. Enforcement
Sec. 6.10.026 Violations of Existing Laws Not Authorized.
Nothing herein shall be construed or have the effect to license, permit, authorize or
legalize any machine, device, table, or gaming machine, the keeping, exhibition,
operation, display or maintenance of which is illegal or in violation of any ordinance of the
City, any section of the Penal Code of this state, or the Constitution of this state.
Sec. 6.10.027 Penalties.
(a) It shall be the duty of all owners or operators of a game room, or other persons
exercising control over a game room, a portion of a game room, to provide the
Police Chief, the Fire Chief, or any code enforcement officer with immediate
unrestricted access during business hours to all areas of a game room and to all
amusement redemption machines.
(b) The game room must comply with all locally adopted ordinances and comply with
all federal, state, and local ordinances and regulations at the time of the
submission of the application for a permit.
(c) A game room owner, operator or any person who does not allow immediate access
to the area of the game room where such machines were located to officials for
the purpose of inspection or enforcement commits an offense.
(d) A game room shall provide doors that are readily accessible without the use of a
special key, special knowledge or effort during business hours or any other hours
of operation.
(e) It shall be unlawful for a game room owner or operator to exhibit or display, or
permit to be exhibited or displayed for commercial use, any gaming machine
which:
(1) Does not have properly attached decal evidencing payment of applicable
occupation tax and machine registration;
(2) Is located at any address or location other than the location listed for such
machine as shown in the records of the City; or
(3) Has affixed to it a decal other than the decal issued for such as shown in
the records of the City.
(f) Except other provided by this section, if it be shown that a person has violated this
Article, upon conviction, the defendant shall be punished by a fine of not less than
two hundred dollars ($200.00).
(g) Upon second conviction for a violation of this Article, the defendant shall be
punished by a fine of not less than five hundred dollars ($500.00).
(h) Any violation charged pursuant to this section shall be independent of and may be
in addition to any administrative penalties which may be imposed regarding the
suspension, revocation, or denial of any permit or license granted under this
Article.
Sec. 6.10.028 Sealing Machine for Nonpayment; Hearings.
(a) The Fire Chief shall seal, in a manner that will prevent further operation, any
gaming machine upon which the tax required by this Article has not been paid or
upon which the decal is not properly displayed. The game room owner or operator
of any machine subject to this Article shall be required to pay a fee equal to the
maximum amount permitted under §2153.453 of the Texas Occupations Code for
the release of any machine sealed, as provided herein, for nonpayment of the tax
or failure to properly display the decal evidencing the payment of the tax and proper
registration of the machine. The current fee amount shall be five dollars ($5.00) for
each sealed machine. Upon proof of payment of the occupation tax provided for in
section 6.10.013 of this Article, and the release fee, the Fire Chief will remove the
seal.
(b) Any game room owner desiring to contest the tax, fee, or penalty owed to the City
to secure the release of a sealed machine may request a hearing by delivering
written notice to the City Clerk setting forth the specifics of the challenge. The City
Council shall either hear the challenge or select a hearing officer to preside over
the hearing. The City Council or hearing officer shall within fourteen (14) days of
the notice of challenge grant a hearing to consider the action. The decision of either
the City Council or hearing officer is final.
Sec. 6.10.029 Penalty for Removal of Sealed Machines.
It shall be unlawful to remove from the permitted site any machine that has been sealed
pursuant to section 6.10.028 of this Article. Whoever removes or causes to be removed
a machine that is sealed shall be guilty of a misdemeanor and, upon conviction, shall be
punished by a fine of not less than $200.00.
Sec. 6.10.030 Injunctions.
(a) In addition to the fines and penalties provided in this Article, if it appears that a
person has violated or is violating or is threatening to violate any provisions of this
Article, the City Attorney may institute a civil suit in a court of competent jurisdiction
for injunctive relief to restrain the person from continuing the violation or threat or
violation.
(b) On application for injunctive relief and a finding that a person is violating or
threatening to violate any provision of this Article, the court shall grant such
injunctive relief as the facts may warrant.
Sec. 6.10.031 Strict enforcement; exemptions.
(a) All law enforcement personnel, inspectors, and other designated personnel shall
carry out the provisions of this Article and may issue citations for violations of this
Article. All law enforcement officers and representatives shall strictly enforce and
prosecute the provisions of this Article, and court officials shall see that this Article
receives strict interpretation and adjudication in a court of competent jurisdiction.
(b) A person in possession or control of a gaming machine is exempt from this Article
if:
(1) The gaming machine is maintained exclusively in a personal residence and
solely for personal use;
(2) The gaming machine has been altered in such a way that it no longer
functions as a coin-operated machine and is not patronized for the purpose
of winning cash or cash value prizes; or
(3) The gaming machines is owned by, leased or rented to organizations
operated exclusively for charitable, educational, religious or benevolent
purposes. An organization with social or fraternal activities does not qualify;
(4) The gaming machines designed for and utilized exclusively by children are
expressly exempt from the tax levied in Division 2 hereof.
Sec. 6.10.032 Penalty fees.
(a) Proof of a culpable mental state is not required for a conviction of an offense under
this Article.
(b) Any violation charged pursuant to this Article shall be independent of and may be
in addition to any administrative penalties which may be imposed regarding the
suspension, revocation or denial of any permit or license granted under this Article.
(c) Each day a violation occurs shall be deemed a separate offense.
Violation Description Article
Reference
Fine Range
Violation of operating hours, per machine, per
hour and/or portion of an hour
6.10.016 Not less than
$200.00
Signage 6.10.017 Not less than
$200.00
Transparent, uncovered windows required 6.10.018 Not less than
$200.00
Machine registration requirements 6.10.004 Not less than
$200.00
Game Room Memberships Violation 6.10.020 Not less than
$200.00
Refusal of Inspection 6.10.027 Not less than
$200.00
Removal of sealed machine 6.10.029 Not less than
$200.00
No visible ID badge 6.10.024 Not less than
$200.00
Second conviction of this Article 6.10.02(g) Not less than
$500.00
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
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Division 1. Generally
Sec. 6.10.001 Definitions.
For the purposes of this Article, the following definitions shall apply unless the context clearly indicates
or requires a different meaning:
Accessory Gaming. A building, facility or other place that contains five (5) or less amusement
redemption machines and is considered accessory to a business with an existing certificate of occupancy
on record with the Building Codes Department. Accessory gaming shall be in strict compliance with the
regulations of Article 6.10 unless otherwise specified.
Amusement Redemption Machines. Means any electronic, electromechanical, or mechanical
contrivance designed, made, and adopted for bonafide amusement purposes that rewards the player
exclusively with non-cash merchandise, prizes, toys, or novelties, or a representation of value
redeemable for those items, that have a wholesale value available from a single play of the game or
device of not more than ten (10) times the amount charged to play the game or device once, or $5.00,
whichever amount is less.
Applicant. The applicant is the intended owner of the game room.
City Manager. The City Manager of the City of Beaumont or the designated representative of the City
Manager.
Chief Building Official. The Chief Building Official for the City of Beaumont or the designated
representative of the Chief Building Official.
Church. A building, in possession of a certificate of occupancy, in which persons regularly assemble for
purposes of religious worship, intended primarily for purposes connected with such worship or for
propagating a particular form of religious belief.
Coin Operated Machine. Any kind of machine or device operated by or with a coin or other United State
currency, metal slug, token, electronic card, or check including a skill or pleasure coin operated machine.
Child Care Facility. An establishment that provides assessment, care, training, education, custody,
treatment or supervision for a child who Is not related by blood, marriage or adoption to the owner or
operator of the facility for all or part of the twenty-four (24) hour day whether or not the establishment
operates for profit or charges for its services.
Door Attendant. An individual who acts to regulate entry of customers or other persons into a game
room.
Eight Liner. See gaming machine.
Fire Chief. The Chief of the City of Beaumont Fire Department or the designated representative of the
Chief of the Fire Department.
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Gaming Machine. See amusement redemption machine.
Game Room. A building, facility, or other place that contains six (6) or more amusement redemption
machines.
Game Room Owner. An individual who:
(1) Has ownership interest in or receives income from a game room or an amusement redemption
machine located in a game room;
(2) Is a partner, director or officer of a business, company, or corporation that has an ownership
interest in a game room or in an amusement redemption machine located in a game room;
(3) Is a shareholder that holds more than ten (10%) percent of the outstanding shares of a business,
company, or corporation that has an ownership interest in a game room or in an amusement
redemption machine located in a game room;
(4) Has been issued by the county clerk an assumed name certificate for a business that owns a
game room or an amusement redemption machine located in a game room;
(5) Signs a lease for a game room;
(6) Opens an account for utilities for a game room; or
(7) Receives a certificate of occupancy for a game room.
Game Room Permit Administrator. The Game Room Permit Administrator or the designated
representative of the Game Room Permit Administrator.
Hospital. A building, in possession of a certificate of occupancy, where the primary function is to provide
medical and/or surgical treatment to sick or injured people and or otherwise defined by the Texas
Occupations Code Chapter 241.
Operator. Individual who supervises, manages, or participates in the performance of activities that
contribute to the functioning of a game room, including the following activities:
(1) Operates a cash register, cash drawer, or other depository on the premises of a game room or of
a business where the money earned or the records of credit card transactions or other credit
transactions generated in any manner by the operation of a game room or activities conducted
in a game room are kept;
(2) Displays, delivers, or provides to a customer of a game room merchandise, goods,
entertainment, or other services offered on the premises of a game room;
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(3) Takes orders from a customer of a game room for merchandise, goods, entertainment, or other
services offered on the premises of a game room; or
(4) A door attendant.
Owner. See game room owner.
Permit. A current, valid permit issued by the City Manager pursuant to the terms of this Article to an
owner of a game room.
Permit Holder. An individual who has been issued a valid permit pursuant to this Article.
Police Chief. The Chief of Police of the City of Beaumont Police Department or the designated
representative of the Chief of Police.
Residential Zoning District. A zoning district which allows the use of a single-family dwelling or two-
family dwelling as listed in Section 28.03.023 Permitted uses.
School. A building, in possession of a certificate of occupancy, where persons regularly assemble for the
purpose of instruction or education together with the playgrounds, stadia and other structures or
grounds used in conjunction therewith. The term is limited to:
(1) public and private schools used for primary and/or secondary education, in which any regular
kindergarten or grades one through twelve (12) classes are taught;
(2) colleges and universities; and
(3) special education facilities in which students who have physical or learning disabilities receive
specialized education in lieu of attending regular classes in kindergarten or any grades one
through twelve (12);
Skill or Pleasure Coin Operated Machine. Any kind of coin operated machine that dispenses, or is used or
is capable of being used to dispense or afford amusement, skill, or pleasure, or is operated for any
purpose, other than for dispensing only merchandise, music or service. This includes:
(1) a marble machine, marble table machine, marble shooting machine, miniature racetrack
machine, miniature football machine, miniature golf machine, miniature bowling machine,
billiard or pool game, or machine or device that dispenses merchandise or commodities or plays
music in connection with or in addition to dispensing skill or pleasure; and
(2) does not include any amusement machine designated exclusively for a child.
Sec. 6.10.002 Declaration of Findings.
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The necessity of the public interest for the provisions and prohibitions hereinafter contained and
enacted is declared as a matter of legislative determination and public policy, and it is further declared
that the provisions and prohibitions contained in sections 6.10.001 through 6.10.032 are in the
furtherance of and for the purpose of securing and promoting the public health, comfort, convenience,
safety, welfare and prosperity of the city and its inhabitants.
Division 2. Permits
Sec. 6.10.003 Permit Required.
(a) It shall be unlawful for any operator or owner of the game room to operate, use, or maintain a
game room without first obtaining a permit from the City of Beaumont issued under the terms
and conditions of this Article.
(b) It shall be unlawful for any operator, permit holder or owner of the game room to operate, use,
or maintain a game room located within the city unless the permit issued for that site is posted
at or near the principal public entrance to the game room in such a manner that it will be
conspicuous to patrons who enter the game room.
(c) In any prosecution under subsection (a) above, it shall be presumed that there was no permit at
the time of the alleged offense, unless a permit was then and there posted as provided in
subsection (b).
(d) If there is a change in ownership or operation as delineated in subsection (a), a new application
and permit will be required. Additionally, after the denial or revocation of a gaming permit, a
new application will be required and is not considered to be a renewal.
(e) A game room owner shall obtain a permit from the City of Beaumont, prior to operation, for
each game room located in the city.
(f) The application for a permit required by this section shall be in the form prescribed by the Game
Room Permit Administrator and shall contain such information as they shall require. Any failure
to provide the information required by this section or a determination is made that inaccurate,
erroneous or incomplete information has been submitted shall be grounds for denial of the
application.
(g) The proposed game room must comply with all locally adopted ordinances and comply with all
federal and state statutes and regulations at the time of the submission of the application for a
permit.
(h) Each application shall also be accompanied by:
5
(1) A copy of a certificate of occupancy issued by the Chief Building Official as appropriate
for the proposed game room;
(2) In the case of a game room to be operated under an assumed name, a true and correct
copy of the registration of the assumed name filed in the office of the Jefferson County
Clerk, bearing the file mark or stamp that evidences its filing in that office; and
(3) In the case of a game room to be operated as a corporate entity, a true and correct copy
of the Texas Secretary of State corporate filing documents, bearing the file mark or
stamp that evidence filing with the Texas Secretary of State.
(4) Non-refundable fee(s) as listed in section 6.10.025, Fee Schedule.
(i) Each application received under this section will be investigated to determine whether the
permit holder, applicant, owner and operators of a game room have been convicted of any of
the following offenses:
(1) Gambling, gambling promotion, keeping a gambling place, communicating gambling
information, possession of gambling devices or equipment, or possession of gambling
paraphernalia as described in Tex. Penal Code Ch. 47;
(2) Forgery, credit card abuse or commercial bribery as described in Tex. Penal Code Ch. 32;
(3) Money laundering as described in Tex. Penal Code Ch. 34;
(4) Criminal attempt, conspiracy or solicitation to commit any of the foregoing offenses; or
any other offense to the laws of another state or the United States that, if committed in
this state, would have been punishable as one or more of the aforementioned offenses;
or
(5) A criminal offense as described in Tex. Local Government Code Ch. 352, subch. B; and
i. Less than two (2) years have elapsed since the date of conviction or the date of
release from confinement for the conviction, whichever is the late date, if the
conviction is of a misdemeanor offense; or
ii. Less than five (5) years have elapsed since the date of conviction or the date of
release from confinement for the conviction, whichever is the later date, if the
conviction is of a felony offense.
(j) A conviction, within the past ten (10) years, for an offense involving gambling and the
possession of gambling paraphernalia, as defined above, shall be grounds for denial, revocation,
6
or refusal to renew such licenses because these businesses offer special opportunities for
gambling activities.
(k) Any failure of a proposed game room to meet all requirements of this section shall be grounds
for denial, revocation, or suspension of a game room license.
(l) Each game room permit is valid for one year and shall expire on the anniversary date of the
issuance of the permit. A permit may be renewed for the following calendar year beginning
sixty (60) days before the expiration of the current permit by filing a completed application for
each permit and paying the applicable fee set forth in section 6.10.025, Fee Schedule.
(m) A machine that provides the possibility, probability and/or certainty of dispensing a non-cash
prize, toy or novelty with a value of not more than ten (10) times the amount charged to play
the game or device once, or $5.00, whichever is less at the time of play, but does not allow the
player to amass or accumulate points, tokens or any other method to accumulate credits
towards larger or greater value non-cash merchandise prizes, toys or novelties is exempt from
the requirements of this Article.
Sec. 6.10.004 Machine Registration Requirements.
Gaming machines, as defined in this Article, shall be registered as follows:
(a) The permit holder, game room owner or operator is required to maintain in its game room a
complete inventory list, along with serial numbers or equivalent identification, as set forth in
subsections (d) and (e) below at all times. The initial application for permit shall include a
certificate of the inventory, along with serial numbers or equivalent identification, as set forth in
subsections (d) and (e) below, of the machines that the permit holder intends to put into
operation when the game room begins its business activities.
(b) Each renewal permit application shall contain a certificate of inspection of updated inventory
list, along with serial numbers or equivalent identification, as set forth in subsections (d) and (e)
below, of the gaming machines that the permit holder intends to put into operation when the
game room begins its business activities under the renewal license.
(c) Before a new gaming machine is put into operation at the game room, the permit holder shall
update the inventory list and register the gaming machine with the city and pay all taxes and
regulatory license fees as required. Changes or additions to the inventory list submitted
separately from the initial application are subject to the regulatory enforcement license fee
listed in section 6.10.025, Fee Schedule.
(d) Upon review of the inventory of machines under subsections (a), (b) and (c) above, the City of
Beaumont registration decal will be issued for each gaming machine. The registration decal will
contain an inventory number. The registration decal for each machine shall be permanently
7
affixed thereto and in plan view at all times and shall match the Texas Comptroller issued
identification number displayed on the machine as indicated on the submitted inventory list as
described under subsection (a). Registration decals are not transferable. The failure of any
machine to display a current registration decal shall be a violation of this section and subject to
enforcement action by the City.
(e) The inventory of machines under subsections (a), (b) and (c) above shall provide the following
information: the manufacturer(s); the serial number(s); common name, type or description of
the game played on the machine. The registration decal shall contain the inventory number of
the machine.
(f) A penalty as listed in section 6.10.032 will be assessed against each unregistered machine found
to be in operation at a game room.
Sec. 6.10.005 Site Plan Required.
(a) A site plan of the location must be provided upon initial application or a permit renewal if
modifications to the site have been made or gaming machines have been added. The site plan
must include the following details:
(1) Overall view of the property;
(2) Parking spaces for the location;
(3) Floor plan of building(s);
(4) Location of gaming machine(s); and
(5) Windows and doors.
Sec. 6.10.006 Certificate of Occupancy Required.
(a) It shall be unlawful to operate any game room located within the city unless the certificate of
occupancy issued for that site is posted at or near the principal public entrance to the game
room in such a manner that it will be conspicuous to patrons who enter the game room.
(b) All associated laws, ordinances and adopted codes shall apply to obtaining said certificate of
occupancy.
Sec. 6.10.007 Initial Application and Renewal Application Requirements.
(a) A permit issued under this Article does not vest any property rights in the applicant or permit
holder; except to display, exhibit or maintain for public patronage the use of any gaming
machines in accordance with the terms and conditions of this Article.
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(b) A permit is non-transferable and non-refundable.
(c) A permit shall be issued for a twelve (12) month term beginning on the date of issuance.
(d) Any false statement made by an applicant on the application shall subject the permit to
immediate suspension pending revocation and the application may be prosecuted as a violation
of section 37.10 of the Texas Penal Code (tampering with governmental records), a third degree
felony.
(e) An application for permit shall be made by the intended game room owner of the game room.
(f) Prior to application of a gaming permit, a gaming locate form shall be submitted to the city in a
form prescribed by the Game Room Permit Administrator for each proposed location to ensure
distancing requirements are met in accordance with section 6.10.021 and collect fees as listed in
section 6.10.025, Fee Schedule.
(g) The gaming permit application must be submitted with the following:
(1) A copy of a certificate of occupancy issued by the Chief Building Official of the city for
the proposed game room;
(2) A list of game room owner(s) and operators with fingerprint reports of the game room
owners and operators of the proposed game room;
(3) Name, address and telephone number of the game room owner(s) and operators,
including the trade name by which owner(s) and operators does business and the street
address of the proposed game room, and, if incorporated, the name registered with the
Secretary of State;
(4) In the case of corporate ownership, a copy of the certificate of incorporation;
(5) In the case of a game room to be operated under an assumed name, a true and correct
copy of the registration of the assumed name filed in the office of the Jefferson County
Clerk, bearing the file mark or stamp that evidences its filing in that office;
(6) An inventory list, along with serial numbers or equivalent identification, as set forth in
subsections 6.10.004 (d) and (e), of the machines that the permit holder intends to put
into operation when the game room begins its business activities;
(7) Game room permits shall not be issued to the applicant unless the application is signed
by the applicant:
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i. I am applying for a permit on behalf of the Permittee and I have actual
knowledge of the operation of a game room under this permit; I acknowledge
that any person operating a game room under this permit will do so under my
direction and control, and I further acknowledge that I may be held criminally
liable for illegal activity associated with the game room under this permit,
including gambling, gambling promotion, or keeping a gambling place under
Chapter 47 of the Penal Code; operating an unauthorized game room under
Chapter 6 of the City Code; and other applicable penal statutes.
(8) Game room permits shall not be issued to the applicant unless that application is signed
by a natural person:
i. Who is
a. The property owner or,
b. If the property owner is a business organization, a natural person who
attaches to the application documentary evidence demonstrating that
they are authorized to sign the application on behalf of the property
owner; and
ii. Who signs the following acknowledgement;
a. I have actual knowledge of the operation of a game room under this
permit; I acknowledge that any person operating a game room under
this permit will do so under my direction and control, and I further
acknowledge that I may be held criminally liable for illegal activity
associated with the game room under this permit, including gambling,
gambling promotion, or keeping a gambling place under Chapter 47 of
the Penal Code; operating an unauthorized game room under Chapter 6
of the City Code; and other applicable penal statutes.
(9) A site plan as set forth in section 6.10.005;
(10) The application or renewal fee as listed in fee schedule in section 6.10.025;
(11) The occupation tax fee per machine as listed in the fee schedule in section 6.10.025;
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(12) Whether a previous permit of the game room owner(s) and operators or, if applicable,
a corporate officer of the game room owner(s) and operators has ever been revoked;
(13) A statement that all the facts contained in the application is true and correct; and
(14)Proof of having submitted to and passed any applicable annual inspections.
(h) Any false statement made by an applicant on the application shall subject the permit to
immediate suspension pending revocation and the applicant may be prosecuted as a violation of
V.T.C.A., Penal Code 37.10 (tampering with evidence), a third degree felony.
Sec. 6.10.008 The Application Process.
(a) The application process shall commence upon the submission of a complete application, with all
required attachments and the application fee, to the Game Room Permit Administrator.
(b) Once a complete application has been received, the Fire Chief will conduct up to three (3)
inspections of the Applicant’s proposed game room to ensure compliance with these
regulations. The game room owner must be present in person during these inspections.
(1) The Fire Chief shall conduct the initial inspection within twenty-one (21) days of receipt
of the completed application and payment of the regulatory enforcement license fees as
listed in section 6.10.025, Fee Schedule. It shall be the responsibility of the permit
holder to schedule all required inspections.
(2) After the initial inspection, the applicant will be informed of what corrections, if any,
must be made to the proposed game in order to comply with these regulations.
(3) If necessary, a second inspection will be performed not less than seven (7) days nor
more than fourteen (14) days after the initial inspection. After this inspection, the
applicant will again be informed of what corrections must be made to the proposed
game room, if any, in order to comply with these regulations.
(4) If necessary, a third and final inspection will be performed not less than seven (7) days
nor more than fourteen (14) days after the second inspection. A re-inspection fee as
listed in section 6.10.025 shall be paid prior to conducting the third inspection. If, after
the third and final inspection, the proposed game room fails to comply with these
regulations, the Game Room Permit Administrator shall deny the application.
(5) If the proposed game room passes inspection and meets all requirements of these
regulations after any inspection, the Game Room Permit Administrator shall approve
the application.
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(c) Failure to provide any information required by this section or a determination by the Game
Room Permit Administrator that inaccurate, erroneous, or incomplete information has been
submitted shall be grounds for denial of the application.
Sec. 6.10.009 Grounds for Denial or Revocation.
(a) The Game Room Permit Administrator shall refuse to approve the issuance or renewal of a
permit or shall revoke a permit for one or more of the following reasons:
(1) A false statement as to a material matter made in an application for a permit;
(2) Revocation of a permit, pursuant to this Article, of the owner or operator;
(3) The owner or operator for such permit has, within the past ten (10) years, been
convicted of a crime involving moral turpitude or gambling.
(b) The Game Room Permit Administrator shall not issue or renew a permit under this Article and
shall suspend or revoke a permit if it is determined that the applicant or permit holder is
indebted to the City for any fee, costs, penalties, or delinquent taxes at the time of application
or renewal.
(c) The Game Room Permit Administrator shall have the authority to deny or revoke all permits
issued under this provision for any violation of this Article by giving written notice, stating the
reason for denial or revocation, and same shall be cancelled thirty (30) days from the date of
receipt of such notice unless the applicant resolved all violations listed in the written notice.
(d) No permit shall be issued to an owner or operator whose permit has been revoked, except
through the appeals process as described in section 6.10.010.
Sec. 6.10.010 Appeal from Denial or Revocation.
If the Game Room Permit Administrator denies, refuses to approve the issuance of a permit or the
renewal of a permit to an applicant, or revokes a permit issued under this Article, this action is final
unless the applicant or permit holder, within ten (10) days after the receipt of written notice of the
action, files a written appeal to the City Council by delivering said notice to the City Clerk setting forth
specific grounds for the appeal. The City Council shall hear the appeal or select a hearing officer to
preside over the appeal hearing. The City Council or hearing officer shall within fourteen (14) days of
the notice of appeal, grant a hearing to consider the action. The City Council and hearing officer have
the authority to sustain, reverse, or modify the action appealed. The decision of either the City Council
or hearing officer is final.
Sec. 6.10.011 Transfer of Permit.
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A permit issued under the provisions of this Article shall be specific to the site and personal to the
holder thereof and shall not be transferable or assignable.
Sec. 6.10.012 Replacement Permits or Decals.
(a) A replacement permit shall be issued to the original applicant for one lost, destroyed, or
mutilated after an application is submitted with the fee listed in section 6.10.025, Fee Schedule
to the Game Room Permit Administrator on a form provided by the City for such purpose.
(b) A replacement permit shall bear the same expiration date as the one it replaces.
Sec. 6.10.013 Occupation Tax.
(a) Every permit holder who controls, possesses, exhibits, or displays, or who permits to be
exhibited or displayed in the city for public patronage or operation by the public, any gaming
machines shall pay, and is hereby levied on each such gaming machine, except those exempt
under this Article, an annual occupation tax in the amount equal to one-fourth (1/4) of the
current state occupation tax. All occupation taxes for gaming machines are payable annually in
advance. The fee for issuing a replacement occupation tax receipt for one lost, destroyed or
mutilated shall be fifteen dollars ($15.00), listed in section 6.10.025, Fee Schedule.
(b) Since the tax is payable in advance on an annual calendar year basis, the following pro rata tax
rate schedule will be applicable to a gaming machine which is first exhibited or displayed for a
commercial use within the city during any quarter of the calendar year:
(1) First quarter: January 1 to March 31 – an amount equal to the applicable local annual
occupation tax;
(2) Second quarter: April 1 to June 30 – an amount equal to three-quarters (3/4) of the
applicable local annual occupation tax;
(3) Third quarter: July 1 to September 30 – an amount equal to one-half (1/2) of the
applicable local annual occupation tax; and
(4) Fourth quarter: October 1 to December 31 – an amount equal to one-quarter (1/4) of
the applicable local annual occupation tax.
(c) In computing any tax payable under the aforesaid pro rata tax schedule, amounts calculated
thereunder shall be rounded to the next higher full cent amount as required.
Division 3. Inspections
Sec. 6.10.014 Inspections; Compliance.
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(a) The game room shall conform to all locally adopted ordinances and comply with all federal,
state, and local ordinances and regulations relevant to the operations of a game room or gaming
machine.
(b) The Fire Chief, the Chief Building Official, all law enforcement, and all code enforcement officials
shall have the right to immediately access to the area of the game room where such machines
are located at any time during normal business hours or when the site is occupied for the
purpose of inspecting said game room and enforcement of the terms of this Article and state
law.
(c) A game room owner, operator, or any person who does not allow immediate access to the area
of the game room where such machines are located to officials for the purpose of inspection or
enforcement commits an offense.
Sec. 6.10.015 Fire and Life Safety.
(a) A game room shall provide doors that are readily accessible without the use of a key, buzzer, or
special knowledge or effort, during business hours or any other hours of operation.
(b) A game room or commercial establishment shall comply with all construction and fire codes,
and shall pay any court-approved fees associated with a fire and life safety inspection, plan
review, occupancy load calculation, or complaint.
(c) All construction and fire code regulations will be strictly enforced and game rooms shall provide
any Fire Safety Official with immediate access to the premises at all times.
Sec. 6.10.016 Operating Hours of Gaming Machines.
(a) It shall be the duty of the game room owner, permit holder and operators of a game room to
ensure compliance with this subsection. The owner, permit holder and operators of a game
room are liable for compliance with this subsection.
(b) A game room shall operate only between the hours of 9:00 a.m. and 10:00 p.m. Monday
through Sunday. Outside of operating hours, all gaming machines located at a game room must
be made physically inaccessible to the public and unusable from 10:00 p.m. to 9:00 a.m. Each
hour and/or portion of an hour that a gaming machine is accessible and operational during
prohibited hours is a separate violation.
(c) Accessory gaming shall operate only between the hours of 9 a.m. and 10:00 p.m. Monday
through Sunday. Outside of operating hours, the machines must be made inoperable from
10:00 p.m. to 9 a.m. Each hour and/or portion of an hour that a gaming machine is operational
during prohibited hours is a separate violation.
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(d) The game room owner, permit holder and operators of a game room that operate a game room
in violation of this subsection shall be assessed a penalty as listed in Sec. 6.10.031. Each hour
and/or portion of an hour that a game room is operational during prohibited hours is in violation
of these regulations and is a separate violation.
(e) A person commits a Class C misdemeanor offense if they intentionally or knowingly operate a
game room in violation of this section.
Sec. 6.10.017 Signage.
(a) Notwithstanding section 28.04.003 of the Code of Ordinances or any other city ordinance, code
or regulation to the contrary, it shall be unlawful for the operator or owner of a game room not
to clearly identify the site with a sign as required by this Article.
(b) The sign displayed should be one provided by the City with a white background with black Arial
font lettering of 1.5 inches.
(c) The sign must clearly read “GAME ROOM” for establishments with six (6) or more amusement
redemption machines and may not include any advertisements.
(d) The sign must clearly read “ACCESSORY GAMING” for establishments with five (5) or less
amusement redemption machines and may not include any advertisements.
Sec. 6.10.018 Transparent, Uncovered Windows Required.
(a) Every game room shall have transparent, unobstructed windows or open space on at least one
side so that the area is open to view by the general public passing by on a street. The owner or
operator of a game room shall not permit any obstruction of such public view by the use of
drawn shades, blinds, partitions, tinting or other structure or obstructions. Violation of this
section will result in the penalty listed in section 6.10.032.
(b) The requirement of subsection (a) may be waived or modified by the Game Room Permit
Administrator if the owner can demonstrate all of the site’s gaming machines or eight-liners are
visible upon entering the premises from the front door.
Sec. 6.10.019 Security Camera System Required.
(a) All game rooms must have Closed Caption Television (CCTV) camera systems and/or security
monitoring system at the owner’s expense. Those systems and any records or recordings made
by those systems shall be stored such that they can be made available to law enforcement or
City officials upon request. It shall be a violation of this section if any requested footage or
other records have been deleted, recorded over, or otherwise made irretrievable by any person.
The security monitoring system must be installed such that all amusement redemption
machines within the building are being monitored at all times.
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Sec. 6.10.020 Game Room Memberships.
(a) It shall be the duty of the game room owner, permit holder and operator to ensure compliance
with this subsection.
(b) Game room memberships are prohibited for any purpose.
(c) A game room shall not restrict entry to a game room and/or prohibit the participation in any
activity inside a game room by a patron through the requirement of a game room membership.
(d) Game rooms shall not issue membership cards to any individual for any purpose.
(e) A person who operates a game room in violation of this subsection shall be assessed a fine as
listed in section 6.10.032. Each person denied entry based on any requirement of a game room
membership is considered a separate violation. Each day a violation occurs or continues to
occur is considered a separate violation.
(f) Any violation of this subsection is grounds for denial, revocation, or suspension of a game room
permit.
Sec. 6.10.021 Prohibited Locations.
(a) Game rooms must comply with the City of Beaumont Zoning Regulations.
(b) A game room in operation shall not be located:
(1) within 600 feet from any school, child care facility, church, hospital, or residential zoning
district; or
(2) within a distance of 1,000 feet from an existing game room. Accessory gaming is
exempt from this requirement.
(c) The measurement of the distance between the place of business and an existing game room,
residential zoning district, child care facility, church, hospital or school shall be determined by
measurements made in a straight line, without regard to intervening structures or objects, from
the nearest point on the applicant’s property line to the nearest point of the residential zoning
district, child care facility, church, hospital or school property line.
(d) Game rooms are exempt from these distancing restrictions upon proof that the game room
location held a valid permit for the year preceding re-application. If the game room permit is
suspended, revoked, denied renewal, allowed to lapse, or otherwise the game room does not
have a valid permit for any period of time, then the game room will be considered a new game
room and not exempt from the distancing requirements.
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Sec. 6.10.022 Responsibility of Permit Holder.
(a) A door attendant must be present at all times during the operating hours of the facility.
Accessory gaming is exempt from this requirement.
(b) On-premises consumption of alcohol is prohibited at any location containing amusement
redemption devices and/or skill pleasure coin operated machines.
Sec. 6.10.023 Regulatory Enforcement License Fee.
A game room owner shall be required to secure a regulatory enforcement license annually. A game
room shall be required to secure a regulatory enforcement license by paying to the city an annual
inspection and regulatory enforcement license fee as listed in section 6.10.025, Fee Schedule for each
amusement redemption machine. The regulatory license fee is implemented to cover the costs to issue
the permits, regulate the game rooms, and to determine whether the provisions of this Article are
complied with. The annual term for all gaming machines within a game room shall have an expiration
date which coincides with the gaming room permit expiration/renewal date irrespective of the gaming
machine initial licensing date.
(a) Any back-up or replacement amusement redemption machines shall be secured in a locked
storage area or closet to which the public is not allowed to enter and such machines shall not be
connected to electricity or otherwise operational. The occupation tax on such back-up or
replacement amusement redemption machines shall be paid annually regardless of whether
such machines are used by the game rooms. Any back-up or replacement amusement
redemption machine must comply with section 6.10.004 and pay the regulatory enforcement
license fee listed in section 6.10.025, Fee Schedule.
Sec. 6.10.024 ID Badges—Game Room Owners and Operators.
All game room owners and operators in a game room shall be required to secure an ID badge issued
from the city annually following the completion of the required background checks as described in
section 6.10.007(f)(2). ID badge fees and replacement fees are listed in section 6.10.025, Fee Schedule.
Game room owner and operator ID badges shall be worn and visible at all times while operating and
working in a game room, and the failure to do so is a violation subject to a fine according to the penalty
schedule in section 6.10.032. An ID badge issued under the provisions of this Article shall be specific to
the site and personal to the holder thereof and shall not be transferable or assignable.
Sec. 6.10.025 Fee Schedule.
Fee Description Article Reference Fee
Gaming Locate Form Fee
Application fee
Renewal fee
Occupation tax per machine
Replacement decals
6.10.007(f)
6.10.003(f)(2)
6.10.003(j)
6.10.013(a)
6.10.012(a)
$60.00
$3000.00
$3000.00
$15.00
$50.00
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Regulatory enforcement license fee per machine
Re-inspection fee
Initial ID badge fee per person
Replacement for lost ID badge fee
6.10.023; 6.10.004(c)
6.10.008(b)(4)
6.10.024
6.10.024
$700.00
$150.00
$120.00
$100.00
Division 4. Enforcement
Sec. 6.10.026 Violations of Existing Laws Not Authorized.
Nothing herein shall be construed or have the effect to license, permit, authorize or legalize any
machine, device, table, or gaming machine, the keeping, exhibition, operation, display or maintenance
of which is illegal or in violation of any ordinance of the City, any section of the Penal Code of this state,
or the Constitution of this state.
Sec. 6.10.027 Penalties.
(a) It shall be the duty of all owners or operators of a game room, or other person exercising control
over a game room, a portion of a game room, to provide any law enforcement officer, fire life
safety officer or code enforcement officer with immediate unrestricted access during business
hours to all areas of a game room and to all amusement redemption machines.
(b) The game room must comply with all locally adopted ordinances and comply with all federal,
state, and local ordinances and regulations at the time of the submission of the application for a
permit.
(c) A game room owner, operator or any person who does not allow immediate access to the area
of the game room where such machines were located to officials for the purpose of inspection
or enforcement commits an offense. See penalty fees listed in section 6.10.032.
(d) A game room shall provide doors that are readily accessible without the use of a special key,
special knowledge or effort during business hours or any other hours of operation.
(e) It shall be unlawful for a game room owner or operator to exhibit or display, or permit to be
exhibited or displayed for commercial use, any gaming machine which:
(1) Does not have properly attached decal evidencing payment of applicable occupation tax
and machine registration;
(2) Is located at any address or location other than the location listed for such machine as
shown in the records of the City; or
(3) Has affixed to it a decal other than the decal issued for such as shown in the records of
the City.
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(f) Except other provided by this section, if it be shown that a person has violated this Article, upon
conviction, the defendant shall be punished by a fine of not less than two hundred dollars
($200.00).
(g) Upon second conviction for a violation of this Article, the defendant shall be punished by a fine
of not less than five hundred dollars ($500.00).
(h) Any violation charged pursuant to this section shall be independent of and may be in addition to
any administrative penalties which may be imposed regarding the suspension, revocation or
denial of any permit or license granted under this Article.
Sec. 6.10.028 Sealing Machine for Nonpayment; Hearings.
(a) The Fire Chief shall seal, in a manner that will prevent further operation, any gaming machine
upon which the tax required by this Article has not been paid or upon which the decal is not
properly displayed. The game room owner or operator of any machine subject to this Article
shall be required to pay a fee equal to the maximum amount permitted under §2153.453 of the
Texas Occupations Code for the release of any machine sealed, as provided herein, for
nonpayment of the tax or failure to properly display the decal evidencing the payment of the tax
and proper registration of the machine. The current fee amount shall be five dollars ($5.00) for
each sealed machine. Upon proof of payment of the occupation tax provided for in section
6.10.013 of this Article, and the release fee, the Fire Chief will remove the seal.
(b) Any game room owner desiring to contest the tax, fee, or penalty owed to the City to secure the
release of a sealed machine may request a hearing by delivering written notice to the City Clerk
setting forth the specifics of the challenge. The City Council shall either hear the challenge or
select a hearing officer to preside over the hearing. The City Council or hearing officer shall
within fourteen (14) days of the notice of challenge grant a hearing to consider the action. The
decision of either the City Council or hearing officer is final.
Sec. 6.10.029 Penalty for Removal of Sealed Machines.
It shall be unlawful to remove from the permitted site any machine that has been It shall be unlawful to
remove from the permitted site any machine that has been sealed pursuant to section 6.10.028 of this
Article. Whoever removes or causes to be removed a machine that is sealed shall be guilty of a
misdemeanor and, upon conviction, shall be punished by a fine of not less than $100.00.
Sec. 6.10.030 Injunctions.
(a) In addition to the fines and penalties provided in this Article, if it appears that a person has
violated or is violating or is threatening to violate any provisions of this Article, the City Attorney
may institute a civil suit in a court of competent jurisdiction for injunctive relief to restrain the
person from continuing the violation or threat or violation.
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(b) On application for injunctive relief and a finding that a person is violating or threatening to
violate any provision of this Article, the court shall grant such injunctive relief as the facts may
warrant.
Sec. 6.10.031 Strict enforcement; exemptions.
(a) All law enforcement personnel, inspectors, and other designated personnel shall carry out the
provisions of this Article and may issue citations for violations of this Article. All law
enforcement officers and representatives shall strictly enforce and prosecute the provisions of
this Article, and court officials shall see that this Article receives strict interpretation and
adjudication in a court of competent jurisdiction.
(b) A person in possession or control of a gaming machine is exempt from this Article if:
(1) The gaming machine is maintained exclusively in a personal residence and solely for
personal use;
(2) The gaming machine has been altered in such a way that it no longer functions as a coin-
operated machine and is not patronized for the purpose of winning cash or cash value
prizes; or
(3) The gaming machines is owned by, leased or rented to organizations operated
exclusively for charitable, educational, religious or benevolent purposes. An
organization with social or fraternal activities does not qualify;
(4) The gaming machines designed for and utilized exclusively by children are expressly
exempt from the tax levied in Division 2 hereof.
Sec. 6.10.032 Penalty fees.
(a) Proof of a culpable mental state is not required for a conviction of an offense under this Article.
(b) Any violation charged pursuant to this section shall be independent of and may be in addition to
any administrative penalties which may be imposed regarding the suspension, revocation or
denial of any permit or license granted under this article.
(c) Each day a violation occurs shall be deemed a separate offense.
Violation Description Article
Reference
Fine Range
Violation of operating hours, per machine, per hour and/or
portion of an hour
6.10.016 Not less than
$200
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Signage 6.10.017 Not less than
$200
Transparent, uncovered windows required 6.10.018 Not less than
$200
Machine registration requirements 6.10.004 Not less than
$200
Game Room Memberships Violation 6.10.020 Not less than
$200
Refusal of Inspection 6.10.027 Not less than
$200
Removal of sealed machine 6.10.029 Not less than
$200
No visible ID badge 6.10.024 Not less than
$200
Second conviction of this Article 6.10.02(g) Not less than
$500
2
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Kenneth Williams, City Manager
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council to consider amending Section 2.04.002 of the Code of the
Ordinances related to declaring Presidents' Day as an official
holiday for City employees.
BACKGROUND
The Code of Ordinances specifies the various holidays for City employees. There are currently
ele (11) declared holidays and one "special day taken at any time," often referred to a "floating
holiday." Presidents' Day became a federal holiday in 1968 and is observed on the third Monday
in February in honor of the first and sixth presidents of the United States.
FUNDING SOURCE
RECOMMENDATION
Approval of the ordinance.
ATTACHMENTS
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 2.04,
SECTION 2.04.002(a) OF THE CODE OF ORDINANCES OF
BEAUMONT, TEXAS RELATING TO DECLARING PRESIDENTS’
DAY AS AN OFFICIAL HOLIDAY FOR CITY EMPLOYEES;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That Chapter 2, Article 2.04, Section 2.04.002(a) of the Code of Ordinances of the
City of Beaumont, be and the same is hereby amended to read as follows:
Sec. 2.04.002 Holidays
(a) The following holidays shall be declared official holidays for City employees to be
observed in accordance with regulations established by the City Manager:
(1) New Year's Day;
(2) Birthday of Martin Luther King, Jr. (3rd Monday in January);
(3) Presidents’ Day;
(4) Good Friday;
(5) Memorial Day;
(6) Juneteenth;
(7) Independence Day;
(8) Labor Day;
(9) Veterans Day;
(10) Thanksgiving Day;
(11) Day after Thanksgiving Day;
(12) Christmas Day;
(13) A special day taken at any time.
Section 2.
That if any section, subsection, sentence, clause of 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 3.
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
3
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution to award HOME ARP (American
Resue Plan) funding for the development of non-congregate shelter,
tenant based rental assistance and the administration associated with
the planning and management of the projects.
BACKGROUND
The American Rescue Plan (ARP) Act of 2021 allocated $1,865,394 in supplemental HOME
funding to the City of Beaumont. The appropriated funds are to address the need for
homelessness assistance and Tenant Based Rental Assistance. In accordance with the HOME
ARP Grant Agreement, the city will use 5% of its total award for administrative and planning
costs. Our approved plan includes $1,572,124 for the acquisition & development of non-
congregate shelter (NCS) units, $200,000 for Tenant Based Rental Assistance (TBRA), and
$93,270 for administration of the programs totaling $1,865,394.
FUNDING SOURCE
U.S. Department of Housing and Urban Development (HUD) Community Development Block
Grant (CDBG) and HOME Investment Partnership Grant funds. (HOME)
RECOMMENDATION
Approval of the resolution.
ATTACHMENTS
HOME-ARP Proposals Received
CDAC Recommendations
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 award HOME ARP
(American Rescue Plan) funding in the amount of $1,865,394.00 for the development of
non-congregate shelter, tenant based rental assistance and the administration associated
with the planning and management of the projects.
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 26th
day of
September, 2023.
- Mayor Roy West -
HOME ARP PROPOSALS RECEIVED
Agency Eligible Activity Amount Requested CDAC Council
Legacy CDC Yes NCS $ 1,572,124.00 $ 1,572,124.00
TBRA $ 200,000.00 $ 200,000.00
Habitat No Rental Production $ 720,000.00 $ -
Salvation Army Yes TBRA $ 90,000.00 $ -
The HOW Center No NCS $ 500,000.00 $ -
HOME–ARP PROPSOALS FOR FUNDING
1. LEGACY CDC, LLC
Requested: $1,572,124
Funding to acquire and develop a non-congregate shelter (NCS) to include 6 or more 1 and 2
bedroom units with full bath and kitchen in each unit. The proposed project also includes an
onsite office to provide a one-stop shop for supportive services to the clients.
All qualifying populations can receive assistance. The proposal includes projections for costs
associated with land acquisition, construction, furnishings and insurance.
Requested: $200,000
Funding for administration of Tenant Based Rental Assistance (TBRA) to eligible households for
up to 12 months.
2. Salvation Army
Requested: $90,000
Funding for administration of TBRA for eligible households for one time assistance with rent or
utilities.
3. HABITAT FOR HUMANITY
Requested: $720,000
Funding for development and construction of 8 duplex rental housing units on lots owned by
Habitat.
4. The HOW CENTER
Requested: $500,000
Funding for construction/modification of existing facilities to increase capacity for a women’s
treatment unit. A 4-bedroom, 4 bathroom build out was proposed to serve as temporary housing
for women with substance abuse issues.
4
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a request to extend the deadline to allow an
ambulatory surgery center at 6510 Folsom Drive, as approved in
September of 2021.
BACKGROUND
Occu-Health Surgery Center is requesting an extension for the Specific Use Permit issued in
September of 2021, to allow an ambulatory surgery center on property located at 6510 Folsom
Drive. The City of Beaumont Zoning Ordinances, Section 28.04.001(g) Specific Use Permits
states, “Extensions of time for good cause may be approved by the city council.”
City Council approved Ordinance No. 21-064 for a Specific Use Permit to allow an ambulatory
surgery center with the following condition:
1. All building and fire codes related to the use must be met.
The applicant is requesting additional time due to delays caused by obtaining design documents
and funding. They expressed an additional year of time should allow them time to find another
doctor/investor and begin construction.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Administration recommends a new deadline of September 26, 2024 with the following condition:
1. All building and fire codes related to the use must be met.
ATTACHMENTS
Request for Extension of Specific Use Permit
PZ2021-289 Planning Commission Packet
ORDINANCE NO.
ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE
PERMIT TO ALLOW AN AMBULATORY SURGERY CENTER IN AN GC-
MD-2 (GENERAL COMMERICAL MULTIPLE FAMILY DWELLING-2)
DISTRICT FOR PROPERTY LOCATED AT 6510 FOLSOM DRIVE IN THE
CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS.
WHEREAS, on September 28, 2021, City Council approved Ordinance No. 21-064
to allow a specific use permit for an ambulatory surgery center in a GC-MD-2 (General
Commercial-Multiple Family Dwelling-2) District for property located at 6510 Folsom
Drive, being Plat RS-4, Tract 1-V-3, W.B. Dychess Survey, Abstract 17, Beaumont,
Jefferson County, Texas, containing 3.63 acres, more or less, as shown on Exhibit “A,”
attached hereto; and,
WHEREAS, Occu-Health Surgery Center wishes to amend the specific use permit
for an ambulatory surgery center in an GC-MD-2 (General Commercial-Multiple Family
Dwelling-2) District for property located at 6510 Folsom Drive, being Plat RS-4, Tract 1-
V-3, W.B. Dychess Survey, Abstract 17, Beaumont, Jefferson County, Texas, containing
3.63 acres, more or less, as shown on Exhibit “A,” attached hereto; and
WHEREAS, the Planning and Zoning Commission of the City of Beaumont
considered the request and is recommending approval to amend the specific use permit
by extending the deadline to September 26, 2024 to allow for an ambulatory surgery
center in an GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for
property located at 6510 Folsom Drive, subject to the following conditions:
1. All Building and Fire Codes related to the use must be met; and,
WHEREAS, the City Council is of the opinion that the amendment of such specific
use permit to allow an ambulatory surgery center is in the best interest of the City of
Beaumont and its citizens;
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this ordinance are
hereby, in all things, approved and adopted; and,
Section 1.
That Ordinance 21-064 be amended by amending a specific use permit granted to
Occu-Health Surgery Center, their legal representatives, successors and assigns, as
shown on Exhibit "B,” attached hereto and made a part hereof for all purposes, by
extending the deadline to September 26, 2024 to allow the construction of an ambulatory
surgery center subject to the following conditions:
1. All Building and Fire Codes related to the use must be met.
Section 2.
That the specific use permit herein granted is expressly issued for and in
accordance with each particular and detail of the site plan attached hereto as Exhibit "B,"
and made a part hereof for all purposes.
Section 3.
Notwithstanding the site plan attached hereto, the use of the property herein above
described shall be in all other respects subject to all of the applicable regulations
contained in Chapter 28 of the Code of Ordinances of Beaumont, Texas, as amended,
as well as comply with any and all federal, state and local statutes, regulations or
ordinances which may apply.
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
www.occuhealthsurgery.com * 3720 Westheimer Rd Ste 601 Houston TX 77027 * (281) 247-5554
September 1, 2023
Jay Mackey
Occu-Health Surgery Center
Managing Partner / CEO
3720 Westheimer Rd Ste 601
Extension for Specific Use Permit
Occu-Health Surgery Center
6510 Folsom Drive, Beaumont, Texas 77706
To City Council,
Request:
Occu-Health requests the Council to extend the approved Specific Use Permit for one year.
Background:
Specific Use Permit was granted for Occu-Health Ambulatory Surgery Center (PZ2021-229), this will
expire September 28, 2023.
Occu-Health received a Specific Use Permit variance. Since then, we worked on getting design
documents, permit documents for construction, and received construction permit approval on May 1,
2023. We are in the process of bringing on another doctor/investor and need to wait until that process
is complete before starting construction.
We are requesting an extension to the time limit as allowed under the Time Limit provision of the
ordinance of the Specific Use Permit. A standard extension of one year should be adequate. The original
variance for the purpose of changing a clinic to an ASC/Clinic will not change, only the existing variance
time limit needs to be extended.
Best Regards,
Jay Mackey
Occu-Health Surgery Center
Managing Partner / CEO
5
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Todd Simoneaux, Chief Financial Officer
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution approving the write-off of
uncollectible water accounts totaling $51,055.48 for which each
individual account exceeds $1,000.00.
BACKGROUND
This request is in accordance with the City’s current 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 with a balance due that exceeds $1,000.00. All accounts have
been terminated for at least one year and collection efforts have been unsuccessful. The termination
dates for these accounts range from April of 2021 through March of 2022. A detailed report is
attached.
A customer with a written-off account will not be able to obtain new water service with the City
until the delinquent balance has been paid. If at any time it is determined such a customer is
associated with a new or an existing account, the written off amount will be reinstated and
transferred to that account for payment.
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 Council hereby approves the write-off of the following uncollectible
water accounts totaling $51,055.48 for which each individual account exceeds $1,000.00,
as shown on Exhibit "A," attached hereto:
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are
hereby, in all things, approved and adopted; and,
BE IT FURTHER RESOLVED THAT 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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
Location ID Name Address Balance
145286 Aguirre,Luis 710 GOLIAD ST 1,049.33
220044 Berry,Loretta M 4975 CHINQUAPIN 1,280.00
411080 Brown,Deandrea L 273 ADAMS ST 1,257.63
163490 Burleigh,Harry L 2195 EARL ST 1,791.28
211932 Chopane,Joshua Aaron 3415 AVENUE C 1,352.84
414156 Clark,Jasmine L 195 GARLAND 1,010.41
223612 Cooley, Joseph 920 WIESS ST 1,395.99
194292 Flennard,Jessie 2190 HEGELE ST 2,566.07
221362 Invictus Food Group 6680 CALDER 1,178.37
428074 Louis Dreyfus Corp 1725 BUFORD ST 3,588.20
229714 Mack,Shondra Z 4239 MARIE ST 1,192.66
213414 Pickens,Natasha 3170 WAVERLY ST 1,200.96
409092 Rochelle,Charles 1885 LUCAS E 1,008.09
233888 Savannah Park, LLC 2099 DOWLEN RD 2,032.37
220402 Simon,Reshone m 4095 WOODLAWN S 2,596.76
124550 Sonnier,Miah C 2249 LIBERTY ST 4,559.49
462786 Starship Conroe LP 600 MARINA DR A 22,028.03
51,088.48
Termination Date
10/14/2021
12/29/2021
8/13/2021
7/6/2021
3/16/2022
12/6/2021
2/4/2022
5/18/2021
9/28/2021
4/1/2021
9/21/2021
12/30/2021
5/7/2021
10/11/2021
3/9/2022
3/17/2022
5/28/2021
6
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Bart Bartkowiak, Director of Public Works
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a resolution authorizing a contract with Zion
Industrial Group, LLC, and TMT Utilities, Inc., for the Citywide
Emergency Water Main Repairs III.
BACKGROUND
On August 15, 2023, the City of Beaumont issued a Mandatory Water Restriction as determined
by Stage 3 of the Drought Contingency Plan due to the excessive heat and lack of rain. The
excessive heat and lack of rain has caused multiple water mains to burst, causing blowouts
throughout the City. The blowouts must be repaired immediately to conserve the already limited
water consumption deemed mandatory throughout the City, along with maintaining adequate
water pressure per state regulations for public health and safety.
On September 15, 2023, two (2) bids were received for furnishing all labor and equipment to
perform water line repairs for lines up to twelve (12) inches in diameter. The opportunity to bid
was sent to 202 vendors.
Based on a review of the bids, Engineering staff recommend and have executed emergency
contracts with both bidders, Zion Industrial Group, LLC, and TMT Utilities, Inc. The contracts
are not to exceed $100,000 each with the option of one (1) renewal each.
FUNDING SOURCE
Water Utilities Fund.
RECOMMENDATION
Approval of Resolution
ATTACHMENTS
Citywide Emergency Water Main Repairs Request for Bid III Supplier Response
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
WHEREAS, on September 15, 2023 two (2) bids were received for the Citywide
Emergency Water Main Repairs III; and,
WHEREAS, Zion Industrial Group, LLC, of Beaumont, Texas, submitted a bid in
the amount of $48,089.05 to complete the work and materials for the Citywide
Emergency Water Main Repairs III as shown in Exhibit "A," attached hereto; and,
WHEREAS, TMT Utilities, Inc., of Huntsville, Texas, submitted a bid in the amount
of $20,000.00 to complete the work and materials for the Citywide Emergency Water
Main Repairs III as shown in Exhibit "A," attached hereto; and,
WHEREAS, the City Council is of the opinion that the bids submitted by Zion
Industrial Group, LLC, of Beaumont, Texas, and TMT Utilities, Inc., of Huntsville, Texas
are the lowest responsible bidders providing services at the best value to the City and
should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are
hereby, in all things, approved and adopted; and,
THAT the City Council hereby approves the award of a contract to, Zion
Industrial Group, LLC, of Beaumont, Texas, in the amount of $48,089.05, and TMT
Utilities, Inc., of Huntsville, Texas, in the amount of $20,000.00, as shown in Exhibit "A,"
attached hereto, for the Citywide Emergency Water Main Repairs III; and,
THAT the City Manager be and he is hereby authorized to execute a contract
with Zion Industrial Group, LLC, of Beaumont, Texas, and TMT Utilities, Inc., of
Huntsville, Texas for the purposes described herein; and,
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th
day of
September, 2023.
- Mayor Roy West -
WU0923-22
TMT Utilities, Inc.
Supplier Response
Event Information
Number: WU0923-22
Title: Citywide Emergency Water Main Repairs Request for Bid III
Type: Invitation to Bid
Issue Date: 9/12/2023
Deadline: 9/15/2023 12:00 PM (CT)
Notes: The City of Beaumont is requesting bids for qualified contractor(s) to
perform Citywide Emergency Water Main Repairs throughout the City.
Time is of the essence.
All work to be completed per City of Beaumont Standard Details
and state regulations which are provided with this Request for
Bid.
Contact Information
Contact: Mike Harris, Director of Water & Sewer Operations
Address: 1350 Langham Road
Beaumont, TX 77707
Phone: 409 (785) 3003
Email: mike.harris@beaumonttexas.gov
Page 1 of 4 pages Vendor: TMT Utilities, Inc. WU0923-22
TMT Utilities, Inc. Information
Contact: Monica Twardeski
Address: 1172 Old Phelps Road
Huntsville, TX 77340
Phone: (936) 438-3210
Email: mjtwareski@gmail.com
By submitting your response, you certify that you are authorized to represent and bind your company.
Monica Jo Twardeski mjtwardeski@gmail.com
Signature Email
Submitted at 9/14/2023 01:13:11 PM (CT)
Requested Attachments
Completed Page 5 TMT Utilities, Inc. Page 5 Signed
Bid III.pdf
Bid Lines
1 Perform Point Repair within pavement, on lines sized 2" and smaller, up to 6' depth, complete in place including
all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT-502
2 Perform Point Repair within pavement, on lines sized 3”-4”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT - 502
3 Perform Point Repair within pavement, on lines sized 6”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT - 502
4 Perform Point Repair within pavement, on lines sized 8”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT - 502
5 Perform Point Repair within pavement, on lines sized 10”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT - 502
Page 2 of 4 pages Vendor: TMT Utilities, Inc. WU0923-22
6 Perform Point Repair within pavement, on lines sized 12”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA No Bid
Item Notes: 600 TxDOT - 502
7 Perform Point Repair outside of pavement areas, on lines sized 2" and smaller, up to 6' depth, complete in place
including all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with
the City's standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $1,750.00 Total: $1,750.00
Item Notes: 600
8 Perform Point Repair outside of pavement areas, on lines sized 3”-4”, up to 6' depth, complete in place including
all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $2,200.00 Total: $2,200.00
Item Notes: 600
9 Perform Point Repair outside of pavement areas, on lines sized 6” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $2,600.00 Total: $2,600.00
Item Notes: 600
1
0
Perform Point Repair outside of pavement areas, on lines sized 8” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $3,000.00 Total: $3,000.00
Item Notes: 600
1
1
Perform Point Repair outside of pavement areas, on lines sized 10” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $4,000.00 Total: $4,000.00
Item Notes: 600
1
2
Perform Point Repair outside of pavement areas, on lines sized 12” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $4,500.00 Total: $4,500.00
Item Notes: 600
1
3
Additional Depth past 6’ on Point Repair
Quantity: 1 UOM: VF Price: $400.00 Total: $400.00
1
4
Trench Excavation Protection (Over 10' Depth)
Quantity: 1 UOM: LF No Bid
Item Notes: TxDOT 402
Page 3 of 4 pages Vendor: TMT Utilities, Inc. WU0923-22
1
5
Removal of Cement Stabilized Sand
Quantity: 1 UOM: CY Price: $500.00 Total: $500.00
Item Notes: 2221
1
6
Weekend Premium
Quantity: 1 UOM: HR Price: $800.00 Total: $800.00
1
7
Mobilization ($250 Per Site)
Quantity: 1 UOM: EA Price: $250.00 Total: $250.00
Response Total: $20,000.00
Page 4 of 4 pages Vendor: TMT Utilities, Inc. WU0923-22
Citywide Emergency Water Main Repairs Request for Bid III
WU0923-22
5
Date of Mobilization:
Waterline Size Selection (Check off which sizes you are committing to work on)
o 2” and smaller
o 3”- 4”
o 6”
o 8”
o 10”
o 12”
The Contractor shall verify all dimensions in the field and shall check all field conditions continuously
during construction. The Contractor shall be solely responsible for any inaccuracies built into the Work.
If there are any further questions, contact Mike Harris, Director of Water and Sewer Operations at (409)
785-3003 or Mike.Harris@beaumonttexas.gov
09/18/2023
WU0923-22
Zion Industrial Group LLC
Supplier Response
Event Information
Number: WU0923-22
Title: Citywide Emergency Water Main Repairs Request for Bid III
Type: Invitation to Bid
Issue Date: 9/12/2023
Deadline: 9/15/2023 12:00 PM (CT)
Notes: The City of Beaumont is requesting bids for qualified contractor(s) to
perform Citywide Emergency Water Main Repairs throughout the City.
Time is of the essence.
All work to be completed per City of Beaumont Standard Details
and state regulations which are provided with this Request for
Bid.
Contact Information
Contact: Mike Harris, Director of Water & Sewer Operations
Address: 1350 Langham Road
Beaumont, TX 77707
Phone: 409 (785) 3003
Email: mike.harris@beaumonttexas.gov
Page 1 of 4 pages Vendor: Zion Industrial Group LLC WU0923-22
Zion Industrial Group LLC Information
Address: 9065 landis dr
Beaumont, TX 77707
Phone: (409) 365-7698
By submitting your response, you certify that you are authorized to represent and bind your company.
Joel Gonzalez Joel@Zion-group.net
Signature Email
Submitted at 9/12/2023 03:14:28 PM (CT)
Requested Attachments
Completed Page 5 Citvwide Emergency Water Main
Repairs Request for Bid II.pdf
Bid Lines
1 Perform Point Repair within pavement, on lines sized 2" and smaller, up to 6' depth, complete in place including
all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $1,432.08 Total: $1,432.08
Item Notes: 600 TxDOT-502
2 Perform Point Repair within pavement, on lines sized 3”-4”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $2,386.80 Total: $2,386.80
Item Notes: 600 TxDOT - 502
3 Perform Point Repair within pavement, on lines sized 6”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $3,341.52 Total: $3,341.52
Item Notes: 600 TxDOT - 502
4 Perform Point Repair within pavement, on lines sized 8”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $4,295.90 Total: $4,295.90
Item Notes: 600 TxDOT - 502
5 Perform Point Repair within pavement, on lines sized 10”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $5,250.96 Total: $5,250.96
Item Notes: 600 TxDOT - 502
Page 2 of 4 pages Vendor: Zion Industrial Group LLC WU0923-22
6 Perform Point Repair within pavement, on lines sized 12”, up to 6' depth, complete in place including all labor,
equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $6,205.68 Total: $6,205.68
Item Notes: 600 TxDOT - 502
7 Perform Point Repair outside of pavement areas, on lines sized 2" and smaller, up to 6' depth, complete in place
including all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with
the City's standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $1,487.16 Total: $1,487.16
Item Notes: 600
8 Perform Point Repair outside of pavement areas, on lines sized 3”-4”, up to 6' depth, complete in place including
all labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $2,478.60 Total: $2,478.60
Item Notes: 600
9 Perform Point Repair outside of pavement areas, on lines sized 6” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $3,082.40 Total: $3,082.40
Item Notes: 600
1
0
Perform Point Repair outside of pavement areas, on lines sized 8” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $4,461.48 Total: $4,461.48
Item Notes: 600
1
1
Perform Point Repair outside of pavement areas, on lines sized 10” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $5,452.92 Total: $5,452.92
Item Notes: 600
1
2
Perform Point Repair outside of pavement areas, on lines sized 12” up to 6' depth, complete in place including all
labor, equipment, excavation, bedding, backfill, compaction, and disinfection, all in accordance with the City's
standards and specifications, using City-provided materials.
Quantity: 1 UOM: EA Price: $6,444.36 Total: $6,444.36
Item Notes: 600
1
3
Additional Depth past 6’ on Point Repair
Quantity: 1 UOM: VF Price: $271.15 Total: $271.15
1
4
Trench Excavation Protection (Over 10' Depth)
Quantity: 1 UOM: LF Price: $531.25 Total: $531.25
Item Notes: TxDOT 402
Page 3 of 4 pages Vendor: Zion Industrial Group LLC WU0923-22
1
5
Removal of Cement Stabilized Sand
Quantity: 1 UOM: CY Price: $371.79 Total: $371.79
Item Notes: 2221
1
6
Weekend Premium
Quantity: 1 UOM: HR Price: $345.00 Total: $345.00
1
7
Mobilization ($250 Per Site)
Quantity: 1 UOM: EA Price: $250.00 Total: $250.00
Response Total: $48,089.05
Page 4 of 4 pages Vendor: Zion Industrial Group LLC WU0923-22
7
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council consider a request to Rezone a portion of property from RS
(Residential Single Family Dwelling) to GC-MD-2 (General
Commercial-Multiple Family Dwelling-2) or more restrictive
district for property located at 1845 S. Major Drive.
BACKGROUND
Nancy Resendez is requesting approval for a Rezoning from RS (Residential Single-Family
Dwelling) to GC-MD (General Commercial – Multiple-Family Dwelling) for the property
located at 1845 S. Major Drive. Major Drive is considered an arterial roadway and common
planning practices encourage commercial uses along such roads. However, this site abuts
residentially zoned property on the east, south and west sides of the property.
Staff recommends approval of a Rezoning from RS to GC-MD-2 (General Commercial –
Multiple Family Dwelling-2). This district would require a Specific Use Permit for any
commercial use, affording the neighboring properties the benefit of additional notifications and
public hearings before such use could be established on the property. The owners are selling the
property contingent upon the results of this case.
At a Joint Public Hearing held on September 18, 2023, the Planning Commission recommended
7:0 to approve the request to rezone a portion of property from RS (Residential Single Family
Dwelling) to GC-MD-2 (General Commercial-Multiple Family Dwelling-2) or more restrictive
district for property located at 1845 S. Major Drive.
FUNDING SOURCE
Not applicable.
RECOMMENDATION
Approval of the ordinance.
ATTACHMENTS
Legal Description
Staff Report
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF
THE CODE OF ORDINANCES OF BEAUMONT, TEXAS,
AND IN PARTICULAR THE BOUNDARIES OF THE ZONING
DISTRICTS, AS INDICATED UPON THE ZONING MAP OF
BEAUMONT, TEXAS, BY CHANGING THE ZONING OF
PROPERTY PRESENTLY ZONED RS (RESIDENTIAL
SINGLE-FAMILY DWELLING) DISTRICT TO GC-MD-2
(GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-
2) DISTRICT FOR PROPERTY LOCATED AT 1845 S.
MAJOR DRIVE, BEAUMONT, JEFFERSON COUNTY,
TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING
FOR REPEAL AND PROVIDING A PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
That Chapter 28 of the Code of Ordinances of Beaumont, Texas, and in particular
the boundaries of the zoning districts, as indicated upon the Zoning Map of the City of
Beaumont, referred to in Section 28.01.005(b) thereof, is hereby amended by changing
the zoning of property presently zoned RS (Residential Single Family Dwelling) District to
GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District for property located
at 1845 S. Major Drive, being Lots 17-19, Block A, Mayfair Addition, Beaumont, Jefferson
County, Texas, containing 2.15 acres, more or less, as shown on Exhibit “A,” attached
hereto, and the official zoning map of the City of Beaumont is hereby amended to reflect
such changes.
Section 2.
That, in all other respects, the use of the property herein above described shall be
subject to all of the applicable regulations of the underlying zoning district as well as those
regulations contained in Chapter 28 of the Code of Ordinances of Beaumont, Texas, as
amended.
Section 3.
That if any section, subsection, sentence, clause of phrase of this ordinance, or
the application of same to a particular set of persons or circumstances, should for any
reason be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end, the various portions and provisions of this ordinance are
declared to be severable.
Section 4.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
Section 5.
That any person who violates any provision of this ordinance shall, upon
conviction, be punished, as provided in Section 1.01.009 of the Code of Ordinances of
Beaumont, Texas.
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 26th day of
September, 2023.
_______________________________
- Mayor Roy West -
LEGAL DESCRIPTION FOR ORDINANCE PURPOSES
Being Lots 17-19, Block A, Mayfair Addition, Beaumont, Jefferson County, Texas, containing 2.15
acres, more or less
PUBLIC
HEARING
Council to conduct a Public Hearing to receive comments on the 2022
Consolidated Annual Performance and Evaluation Report (CAPER)
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Council conduct a Public Hearing to receive comments on the 2022
Consolidated Annual Performance and Evaluation Report
(CAPER).
BACKGROUND
As mandated by the U.S. Department of Housing and Urban Development (HUD), City Council
has conducted public hearings in previous years prior to the submittal of the City’s Consolidated
Annual Performance and Evaluation Report (CAPER). Community Development Staff published
a request to receive public comments on the 2022 CAPER in the Beaumont Examiner newspaper
on August 24, 2023. Attached is the financial summary for the grant year completed and several
IDIS reports that will be submitted to HUD with the CAPER.
FUNDING SOURCE
U.S. Department of Housing and Urban Development (HUD) Community Development Block
Grant and HOME Investment Partnership Grant funds.
RECOMMENDATION
Council conduct the Public Hearing.
ATTACHMENTS
IDIS reports
WORK
SESSION
Review and Discuss the City’s Sanctioned Encampment Strategy
TO: City Council
FROM: Kenneth R. Williams, City Manager
PREPARED BY: Chris Boone, Assistant City Manager, Community Services
MEETING DATE: September 26, 2023
REQUESTED ACTION: Review and Discuss the City's Sanctioned Encampment Strategy.
BACKGROUND
Review and Discuss the City's Sanctioned Encampment Strategy.
FUNDING SOURCE
RECOMMENDATION
Conduct the Work Session
ATTACHMENTS