HomeMy WebLinkAboutPACKET MAR 29 2005 City of Beaumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS MARCH 29,2005 1:30 P.M.
CONSENT AGENDA
* Approval of minutes
* Confirmation of committee appointments
A) Approve a resolution supporting Stone Way Limited Partnership's efforts to receive a
2005 Forward Commitment Allocation from the Texas Department of Housing and
Community Affairs
B) Approve a resolution authorizing the granting of an amended Pipeline License Agreement
to Mission Resources Corporation to cross Helbig Road, Piney Point Lane and Sherwood
Road
C) Authorize the City Manager to execute an oil and gas lease agreement
A
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Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Janett Lewis, Housing M er
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 22,2005
REQUESTED ACTION: Council consider a resolution supporting Stone Way Limited
Partnership's efforts to receive a 2005 Forward Commitment
Allocation from the Texas Department of Housing and Community
Affairs.
RECOMMENDATION
The Administration recommends approval of a resolution supporting Stone Way Limited
Partnership's efforts to receive a 2005 Forward Commitment Allocation from the Texas Department
of Housing and Community Affairs.
BACKGROUND
Stone Way Limited Partnership is seeking low income housing tax credits for a townhome
development it proposes to build at 1650 East Lucas Drive. The development will encompass 27
acres and will be comprised of a community center,residential activity areas and 104 townhome units.
By passing this resolution, the City of Beaumont is showing its support for Stone Way Limited
Partnership's application for low income housing tax credits and its efforts to bring affordable housing
to the City.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director, Planning Manager, Housing Manager
RESOLUTION#
RESOLUTION IN SUPPORT OF STONE HEARST TOWNHOMES
WHEREAS, Stone Way Limited Partnership, proposes to build Stone Hearst Townhomes on
approximately 27 acres located at 1650 East Lucas Drive, Beaumont, Texas, and
WHEREAS,Stone Hearst Townhomes will be comprised of a community center building containing
on-site management offices, residential activity areas, as well as 104 townhome units;and
WHEREAS, Stone Hearst Townhomes will consist of a two and three bedroom units,which will be
beneficial to families in Beaumont;and
WHEREAS,Because of the Texas Department of Housing&Community Affairs'high score issued
to Stone Hearst Townhomes and the strong demand for affordable housing in our city, this
development should be awarded its tax credits.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BEAUMONT:
That the City Council finds that R J Collins and Stone Way Limited Partnership have the historical
experience in developing high quality affordable housing;and
That the City Council supports the efforts of Stone Hearst Townhomes,and especially its application
to the Texas Department of Housing and Community Affairs for Low Income Housing Tax Credits.
APPROVED AND ADOPTED by the City Council of the City of Beaumont held on this the
day of , 2005.
Evelyn M. Lord, Mayor
ATTEST:
...... City of Beaumont 13•�• Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Joris P. Colbert, City Engineer
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 21, 2005
REQUESTED ACTION: Council consider a resolution authorizing the granting of an
amended Pipeline License Agreement to Mission Resources
Corporation to cross Helbig Road , Piney Point Lane and Sherwood
Road.
RECOMMENDATION
Mission Resources Corporation has requested permission to install an 8-5/8 inch pipeline across
Helbig Road, Piney Point Lane and Sherwood Road. The pipelines are for the purpose of
transporting gas, water and condensate and will be constructed in accordance with City
requirements.
Administration recommends authorization to grant an amended Pipeline License Agreement.
BACKGROUND
A Pipeline License Agreement was approved January 25, 2005 [Resolution No. 05-021] for
Mission Resources to cross Helbig Road and Piney Point Lane. The pipeline company has since
altered the route of the pipeline at the intersection of Piney Point and Sherwood Road to include
Sherwood in the crossing.
BUDGETARY IMPACT
There is a one-time fee of$500 for the Pipeline License Agreement and an annual fee of$471.58
which represents $2.25 per linear foot of pipeline crossing the 60 foot right-of-way of Helbig,
69.19 feet of Piney Point right-of-way and 80.4 feet of Sherwood right-of-way.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY:
City Manager, Public Works Director and City Engineer.
Fngmission_pincy-point_uwrd-ib.wpd
21 Much,2005
CITY OF BEAUMONT
APPLICATION FOR
PIPELINE LICENSE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
Business Name: MISSION RESOURCES CORPORATION Business Phone: (713)495-3000
Business Address: 1331 LAMAR, SUITE 1455, HOUSTON,TEXAS 77010-3039
The City of Beaumont,hereinafter called"City", for and in consideration of the sum
specified herein
hereby grants to
hereinafter called"Licensee",the license
to lay,maintain,operate,replace,or remove a pipeline for the transportation of oil,gas,water,
or their products, on or across the following streets, alleys and easements or other right-of-
way situated in the City of Beaumont, Jefferson County, Texas, to-wit:
Street Name or R.O.W. Description Length(Linear Feet)
HELBIG ROAD 60'
PINEY POINT LANE [previously Voth Cut-Off Road] 69.19'
SHERWOOD ROAD 80.40'
1
MISSION
RESOURCES
1331 Lamar,Suite 1455 Houston,TX 77010-3039
FAX COVER SHEET
Date: 0 3 / 1 7 / 0 5 Time:
To: Ms. Ilona Baker Company: City of Beaumont
Fax: 409-880-3732 Phone: 409-880-3725
From: Nancy Gatti Department: Operations
Fax: 713-652-2916 Phone: 713-495-3128
Number of pages including cover sheet:
RE: PIPELINE LICENSE AGREEMENT - City of Beaumont -AMEND 8-5/8" ILES
PIPPELINE CROSSING ROUTE FOR PINEY PT. LANE AT SHERWOOD RD.
Ms. Baker:
Please find attached the REVISED CROSSING DRAWING for the Pipeline License Agmt.
previously approved—dated Jan. 26,2005. On the attached are the distances from the Center
Line of Sherwood to Mission's Proposed PL. Per our conversation the other day you were going
to confirm if the Sherwood ROW was 60 feet—by showing the referenced distance from the
Center Line to PL Route will reflect the route that is in the ROW of Sherwood.
Originals will be over nighted to your attention for Fri. A.M Delivery
Also, the thicker wall thickness (.500 inch) to be used under the street crossing in lieu of being
cased (same as original approval & same to be used for the boring under the Lower Neches Canal
—which was approved by the LNVA.)
Please attach the revised drawings to the previous application to be presented at the City Council
Meeting on 03/22/05. Please advise should you require additional information.
Thank-you,
Nancy K. Gatti- Regulatory Manager
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MISSION RESOURCES CORPORATION
To Serve Res WeR No.001
WITHIN THE CITY LIMITS OF BEAUMONT
JEFFERSON COUNTY.TEXAS
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MISSION RESOURCES CORPORATION
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WITHIN THE CITY LIMITS OF •
JEFFERSON COUNTY,TEXAS
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City of Beaumont
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 23, 2005
REQUESTED ACTION: Council authorize the City Manager to execute an oil and gas lease
agreement.
RECOMMENDATION
Administration recommends authorizing the City Manager to execute an oil and gas lease agreement
with the TexBrit Corporation.
BACKGROUND
The TexBrit Corporation of Beaumont,Texas,has requested to lease approximately 0.0249 acres of
land located at the intersection of Tram Road and Major Drive. The property is a remnant from the
purchase of street right-of-way for Major Drive. TexBrit is leasing surrounding property in the area
for the production of oil, gas and other liquid hydrocarbons.
The proposed agreement specifies that the City will receive royalty payments in the amount of
twenty-five percent(25%)of market value,or any amount realized by TexBrit, for oil,gas and other
liquid hydrocarbons produced from the land. After the end of the three(3)year primary term,should
the total payments made under the lease for the preceding production year be less than$75 per acre,
TexBrit will pay the difference between that amount and the payments actually made.
Due to the location of the property, the agreement specifies that TexBrit may not use the surface of
the property without the written consent of the City and other governmental entities having
jurisdiction. TexBrit is also liable for any and all damages to the surface and subsurface of the land
covered in the agreement, including pollution and noncompliance with all Federal, State and other
regulatory agencies.
A copy of the proposed agreement is attached in its substantial form.
Oil and Gas Lease Agreement
March 29, 2005
Page 2
BUDGETARY IMPACT
All funds collected from the lease will be deposited in the General Fund. Minimal revenue is
anticipated because of the diminished size of the property.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Internal Services Director and Public Works Director.
EXHIBIT "A"
SUBJECT
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OIL & GAS LEASE a_
0.0249 ACRES OF LAND = R< w RPM
OUT OF z
W
THE DANIEL EASLEY SURVEY ¢ A
JEFFERSON COUNTY =
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LOCATION MAP
N.T.S.
LEGEND
SUBJECT PROPERTY
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N.T.S.
OIL AND GAS LEASE
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
THIS AGREEMENT made and entered into this the day of March 23, 2005 by and between the
City of Beaumont, a municipal corporation, domiciled in Jefferson County, Texas, hereinafter called
Lessor, and TexBrit Corporation, 505 Milam Street, Suite 600, Beaumont, Texas, Jefferson County,
Texas 77701, hereinafter called Lessee, whether one or more,
WITNESSETH:
1. GRANTING CLAUSE: Lessor, for and in consideration of the sum of TEN AND NO/100
DOLLARS ($10.00) cash in hand paid, and other valuable consideration, receipt of which is hereby
acknowledged, hereby grants, leases and lets exclusively unto Lessee for the purpose of exploring for
and producing oil and gas and other liquid hydrocarbons upon the following terms and conditions, the
following described land, to wit:
As fully described in Exhibit "A" attached hereto and made a part hereof.
Due to the nature of the present use of the surface of the herein leased premises, Lessee shall make no
surface use whatsoever without the prior written consent of Lessor and all other governmental
authorities having jurisdiction hereof. Permission, though, shall not be unreasonably withheld.
There is expressly reserved and excepted unto Lessor (except as herein above provided) all other
mineral substances (except those expressly covered in this lease) owned by Lessor in, under, or upon the
leased premises together with the rights of ingress and egress for purposes of exploration for and
production of those mineral substances and forms of energy hereby reserved and excepted unto Lessor.
There is further reserved unto Lessor the right to authorize any and all geophysical and geological tests
on the leased premises reasonably necessary and incident to the exploration for such mineral substances
and forms of energy. Such exploration and production shall not unreasonably interfere with the
operations of the Lessee herein.
For the purpose of calculating payments hereinafter provided (except royalties), the land described in
Exhibit "A" attached hereto is considered to constitute one(1) acre, whether actually more or less.
2. LEASE TERM: Subject to the other provisions herein contained, this lease shall be for a term of
three (3) years from this date (called primary term) and as long thereafter as oil, gas and other liquid
hydrocarbons are produced in paying quantities (herein defined) from the leased premises, or this lease
is otherwise maintained in effect as hereinafter provided.
3. PAID UP LEASE: Lessor hereby acknowledges receipt of payment in advance by Lessee of all
rentals accruing or payable by Lessee during the entire primary term of this lease.
1
4. ROYALTY: The royalties to be paid by Lessee to Lessor are:
(i) On oil and condensate or other liquid hydrocarbons produced at the well or at an oil and gas separator
of the conventional type twenty-five percent (25%) of the entire eight-eights (8/8) of that produced and
saved from the land described herein, free of any expense to Lessor, to be, at Lessor's option either (1)
delivered into the pipelines, tanks or other receptacles to which Lessee may connect Lessee's well or
wells for the purpose of storage and/or sale of the oil produced, (2) delivered at the well into tanks or
other receptacles provided by Lessor, at Lessor's own expense, (3) purchased by Lessee or any affiliate
of Lessee, at the market price being paid on the date of purchase, or (4) sold by Lessee (for Lessor's
account) to the purchaser of Lessee's oil if sold by Lessee at the well or on the lease, for the price
received by Lessee, or any affiliate of Lessee, for its own oil produced from said land. In no event shall
the price paid be less than the market value on the date produced or the price received by Lessee, or any
affiliate of Lessee, for its own oil produced from said land. In no event shall the price paid be less than
the market value on the date produced or the price received by Lessee or an affiliate of Lessee,
whichever is greater. Provided, however, if the oil and condensate or other liquid hydrocarbons be run
through or processed in a plant of the type authorized below, the royalty therefore shall be calculated
and paid under the terms and provisions as herein provided.
(ii) Lessee agrees that before any gas containing recoverable liquid hydrocarbons (except gas run
through an absorption plant or other type of plant for the extraction of hydrocarbon products as
hereinafter authorized below) produced from said land is sold or used, it will be run through an adequate
oil and gas separator of the conventional type or other equipment at least as efficient, so that as much of
such liquid hydrocarbons as can be reasonably recovered from the gas by such means will be recovered,
without diminishing the BTU rating below the prevailing minimums of the industry for the sale of such
gas in the area.
(iii) If gas, casinghead gas or the gaseous substances produced from said land is sold at the well or at a
delivery point on or off the leased land, the royalty on same shall be twenty-five percent (25%) of the
market value of the gas at the time it is produced, provided that in no event shall the price paid be less
than twenty-five percent (25%) of the amount realized therefrom by Lessee or an affiliate of Lessee.
(iv) If Lessee, or an affiliate of Lessee shall themselves, or by arrangement with others, run oil,
condensate, other liquid hydrocarbons, gas, casinghead gas, or other gaseous substances produced from
said land through a processing absorption or extraction plant, or use such production from said land in
the manufacture, extraction or separation of gasoline, condensate, distillate, butanes, propanes,
chemicals, chemical compounds, or other liquid or gaseous hydrocarbons, or products manufactured,
processed, separated, or extracted therefrom, the royalty therefor shall be, at the option of Lessor, either
twenty-five percent (25%) of the market value of such oil, condensate, other liquid hydrocarbons gas,
casinghead gas, or other gaseous substances at the well or delivery point on the leased premises, or
twenty-five percent (25%) of the market value of the gross production of products and components
derived therefrom by such processing and manufacturing at such plant, and Lessor shall be paid on
residue gas twenty-five (25%) percent of the market value at the tail gate of the plant, but in no event
less than the proportionate amount realized by Lessee or an affiliate of Lessee for such residue gas. The
market value paid hereunder for gasoline, condensate, distillate, butanes, propanes, chemicals, chemical
compounds or other liquid or gaseous hydrocarbons, or products manufactured, processed, so separated
or extracted, shall be not less than the average selling price of the respective grades thereof f.o.b. at the
plant for the month in which same is delivered and shall be not less than the average price quoted (if
prices are quoted) in two of the leading periodicals of the industry for similar grades of the products
enumerated above.
(v) The royalty on any gas, casinghead gas or other gaseous substances, produced from the land herein
described and used, sold or delivered in anyway other than specifically provided above shall be twenty-
2
five percent (25%) of the market value at the well at the time it is produced, except that if the same is
run through an oil and gas separator as hereinabove provided, the royalty shall be twenty-five percent
(25%) of the market value at the downstream outlet of such separator, but not less than the amount
realized by the Lessee, or an affiliate of Lessee.
(vi) Should Lessee or an affiliate of Lessee use, sell, deliver, or contract with others for the use, sale,
delivery or processing of gas, oil or other hydrocarbons from said land for any purposes or under any
condition not specifically covered by this Paragraph 4, then Lessor shall have the option at any time, and
from time to time, to elect as to the royalty thereon to (1) either receive the royalty herein provided for
gas, oil or other liquid hydrocarbons produced and saved or sold, or (2) to be paid twenty-five percent
(25%) of the amount realized by Lessee or Lessee's affiliate from the use, sale, delivery or processing of
such gas, oil or other liquid hydrocarbons produced from said land or received by Lessee or an affiliate
of Lessee in exchange for or in lieu of gas, oil or other liquid hydrocarbons produced from the said land,
or any components thereof.
(vii)Lessee shall not have the right to reinject or store oil, gas or other hydrocarbons produced from said
land into any underground reservoir or formation in or under the land described herein.
(viii) The term "affiliate of Lessee" as herein used, means and includes any partner, joint venturer,
creditor, agent or representative of Lessee; any firm or corporation that, at the time in question, is a
subsidiary or part firm of Lessee; any firm or corporation which has the same parent firm or corporation
as or substantially the same officers or directors as Lessee; any firm or corporation in which any
officers, directors, stockholders, partners, joint venturers, agents or representatives of Lessee own
controlling interest; or any person, firm or corporation which owns a controlling interest in the capital
stock or interest of Lessee. In addition to the foregoing definition of "affiliate of Lessee," it is
understood and agreed that if any oil, gas or other liquid hydrocarbons of any portion thereof produced
from the land described herein is delivered or sold to any person or entity and subsequently the same or
any portion thereof is redelivered or resold to Lessee, or an affiliate of Lessee, then within the meaning
of this lease, and for the purposes of calculating the royalty hereunder, the person or entity to which
such oil gas or other liquid hydrocarbons are delivered or sold, shall be regarded as an "affiliate of
Lessee." If Lessee or an affiliate of Lessee receives, purchases or uses all or any portion of the oil, gas
or other liquid hydrocarbons which were produced from the land covered by this lease which were
obtained after Lessee, or an affiliate of Lessee, has sold, transferred or delivered to a party, not an
affiliate of Lessee, at such time; or if Lessee, or an affiliate of Lessee, obtains by purchase or exchange
or in a trade out or exchange, gas, oil or other liquid hydrocarbons of a similar nature to those produced
or reasonably suited to the use to which the production from the land covered hereby could be put, then
in that event, the gas, oil or other liquid hydrocarbons obtained shall be treated for all purposes under
this Paragraph as if same had remained in the hands of Lessee, or an affiliate of Lessee.
(ix) Notwithstanding anything herein to the contrary contained, it is expressly stipulated that Lessor, at
Lessor's option, and from time to time, upon thirty (30) days prior written notice to Lessee, may elect to
take in kind any of its royalty share of gas, oil or other hydrocarbons produced hereunder, and to
separately sell, use or dispose of same or any portion thereof. In the event Lessor so elects to take in
kind all or a portion of its royalty share of any mineral or production, Lessor shall install the necessary
additional facilities at Lessors cost and expense. Any contract entered into by the Lessee for the sale of
gas, oil or other liquid hydrocarbons produced shall be subject to and express that it is subject to
Lessor's right to take in kind. Lessor may exercise such right to take in kind from time to time, and also
may countermand same from time to time on like written notice. Unless and until and at all times,
except when Lessor is receiving and separately disposing of Lessor's royalty portion of gas, oil and other
liquid hydrocarbons, Lessee will be obligated to receive and dispose of same under the royalty
provisions of this lease.
3
(x) Lessee agrees that division order or other such documents shall not constitute a valid amendment,
alteration or addition to the provisions of this lease.
(xi) Notwithstanding any provisions of Paragraph 4 of this lease to the contrary, it is specifically agreed
that no gathering, dehydration, compression, separating, processing, treating and marketing or other
charges of any kind, either directly or indirectly, to make the gas ready for sale or use, except
transportation shall be assessed against the royalty interest of the Lessor resulting from the sale or use of
minerals produced from the land covered by this lease or from land pooled therewith. In regard to
transportation costs and expenses, Lessee may not, either directly or indirectly, charge Lessors royalty
for any costs or expenses of transportation where such gas is sold at the wellhead. Where gas is sold off
the premises, Lessee may deduct from the gross proceeds received for the sale of such gas, a reasonable
transportation fee or expense so long as the resulting price for such gas, after deduction for a reasonable
transportation fee, is greater than the then prevailing price being paid for gas at the wellhead in the field.
Said prevailing price shall be defined as that price published in the first issue of each month of"Natural
Gas Weekly" under the heading "Gas Price Report" for "Texas Gulf Coast, On Shore, Spot Wellhead."
Upon written request by Lessor, Lessee shall furnish a quote of the then current "Natural Gas Weekly"
publication and any documents supporting the transportation charges. Lessee will make all reasonable
efforts to obtain the highest prices for gas sales.
(xii) It is expressly provided that Lessee and any affiliate of Lessee shall at all times exercise due
diligence as the fiduciary agent for Lessor in the marketing of all products produced under the terms of
this lease.
(xiii) Royalties payable on production hereunder shall be due within sixty (60) days after the sale of
such production provided, however, it is agreed that the royalty payment due on the first sale of a
product produced hereunder shall not be due until one hundred twenty (120) days after such sale. Any
royalties not paid as herein provided, including suspended royalties shall accrue interest at the rate of ten
percent(10%) per annum until paid.
5. SHUT-IN GAS PROVISION ON GAS: Notwithstanding anything to the contrary herein, it is
agreed that if and while there is a gas well or wells on the leased premises (the term "gas well" shall be
wells capable of producing natural gas which are classified as gas wells by the governmental authority
having jurisdiction) and such well or wells are shut-in, then Lessee shall pay Lessor annually an amount
equal to TWENTY-FIVE DOLLARS AND NO/100 ($25.00) per well. This amount shall be paid yearly,
the first payment being due no later than sixty (60) days after completion of such shut-in well or wells;
and shall continue until such gas is produced and sold. Provided, however, Lessee may maintain this
lease in force and effect solely by the tender of shut-in payments in accordance with this paragraph for a
period not to exceed twenty-four (24) consecutive months for the first and twelve (12) consecutive
months for any subsequent occurrence during the term of this lease. It is expressly understood and
agreed that such shut-in payments shall be considered a rental and shall not constitute advance royalty.
It is understood that shut-in gas payments are additional delay rental payments and must be timely
made.
6. MINIMUM ROYALTY: After the end of the primary term, should the total payments made under
this lease for the preceding production year, calculated from first day of production, be less than
SEVENTY-FIVE DOLLARS AND NO/100 ($75.00) per acre for each acre covered by this lease, then
within 60 days after the end of such production year, Lessee shall pay to Lessor the difference between
that amount and the payments actually made. The term "production year" shall mean each year
4
commencing on the anniversary date of first production. Should this minimum royalty payment not be
timely made to Lessor, then it shall be considered that this lease is not producing in paying quantities.
7. PARTIAL OWNERSHIP OF MINERAL ESTATE: It is agreed that if Lessor owns an interest in
said land less than the entire mineral estate then rentals or other payments herein to be paid or delivered
to Lessor shall be reduced proportionately and all outstanding royalties shall be deducted from those
herein provided.
8. CESSATION OF PRODUCTION AND CONTINUOUS OPERATIONS: After discovery and
production of oil, gas or other liquid hydrocarbons on the leased premises, and after the expiration of the
primary term of this lease, if production thereof should cease from any cause, this lease shall not
terminate if Lessee commences operations for drilling or reworking an existing or new well within
ninety(90) days thereafter. If at the expiration of the primary term Lessee is then engaged in any drilling
or reworking operations thereon or shall have completed a dry hole thereon within sixty (60) days prior
to the end of the primary term, this lease shall remain in force so long as operations on said well or for
the drilling or reworking of any well are prosecuted with no cessation of more than sixty (60)
consecutive days, and if they result in the production of oil, gas, or other liquid hydrocarbons, this lease
shall remain in force as hereinabove provided so long thereafter as oil, gas or other liquid hydrocarbons
are produced from said land, or on acreage pooled therewith (if so provided for in this lease). In the
event, and during such period of time, this lease is being continued in effect under the provisions of this
paragraph, Lessee upon written request of Lessor, shall render to Lessor weekly reports of all operations
begun, conducted or terminated by Lessee upon the leased premises. Reworking operations hereunder
shall be deemed to be commenced when the first work is commenced and prosecuted with reasonable
diligence and drilling operations on a new well shall be deemed to be commenced on the date when the
well is spudded in with a rig capable of reaching the permitted depth.
9. PARTIAL SURRENDER: Should any part of this lease be pooled, as provided in paragraph 22
hereof, with an adjoining tract of land during the primary term of this lease and a well actually drilled on
said unit, then Lessee shall reasonably develop the acreage hereunder. In complying with this
provision, it is agreed that in the event more than 180 days elapse between the completion of the unit
well and the commencement of actual drilling operations on the next unit well, Lessee shall upon
written demand of Lessor forthwith execute and place of record in the county of which such land is
located a release of all the premises covered by this lease save and except that Lessee may retain under
the terms hereof the minimum number of acres as provided in paragraph 22. To comply with the
requirement of"commencement of actual drilling operations" as used herein Lessee shall have a drilling
rig capable of drilling to the permitted depth on the location of the well and on a unit designated of
record. Shall Lessee fail or refuse to place of record in the proper county the necessary release of lease
as required herein, Lessor shall have the right to recover from Lessee all reasonable and necessary
expenses of obtaining and filing such release including attorneys fees and costs of court.
10. OFFSET OBLIGATIONS: After discovery of oil, gas or other liquid hydrocarbons upon the leased
premises, in addition to the other provisions of this lease, Lessee agrees to conduct such further
operations as a reasonably prudent operator would do under the same or similar circumstances in order
to reasonably develop the leased premises. In the event a well or wells producing oil in paying quantities
should be brought in on adjoining lands within six hundred sixty (660) feet from the leased premises, or
draining the leased premises, or in the event a well or wells producing gas in paying quantities should be
brought in on adjoining lands within one thousand three hundred twenty (1,320) feet from the leased
premises, or draining the leased premises, Lessee agrees to commence actual drilling operations on the
leased premises of an offset well within one hundred twenty (120) days from the date production
commences from said well or wells and Lessee receives all necessary permission from the Lessor and
other governmental authorities having jurisdiction over the surface and mineral use of the leased
premises. In lieu of drilling such well or wells, Lessee may, at Lessee's option, pay Lessor, as
5
compensatory royalty, a sum equal to the royalty which would be payable under this lease on the
volume of production from a well or wells on other lands or covered by this lease had same been
produced hereunder. Notwithstanding anything to the contrary herein contained, Lessee shall not be
obligated to drill such well or wells or to pay such compensatory royalty if Lessee already has a
producing well on these leased premises which may reasonably be held to provide drainage protection.
11. DAMAGES: Lessee will bury and maintain all pipelines a minimum of forty- eight (48) inches
below the surface of the ground. Lessee will pay to Lessor actual damages to timber, to crops, to
improvements and to the surface of the leased lands suffered by Lessor and any tenant of Lessor caused
by or arising out of operations under this lease. Pits and excavations made during drilling operations will
be filled by Lessee and the surface restored, as nearly as reasonably practicable, to its original condition;
and if Lessee shall fail to do so, the cost to Lessor of such filling and restoration shall be paid by Lessee.
Lessee's obligations under this paragraph shall be in addition to, and shall not in any way modify or
diminish, its obligations under any other paragraph thereof.
12. SURRENDER: Except as herein otherwise provided, Lessee may, at any time, execute and deliver
to Lessor, a release covering any portion of the above described premises and thereby surrender the
lease to such portion and be relieved of all obligations as to the acreage surrendered; provided, however,
nothing herein contained shall be construed to relieve the Lessee of any obligations or payment already
then assumed or incurred.
13. REMOVAL OF LESSEE"S PROPERTY: Lessee shall have the duty, during or within one
hundred twenty (120) days after the expiration of this lease, to remove all property and fixtures placed
by Lessee on the leased premises, including the right to draw and remove casing. Property and fixtures
not removed within such one hundred twenty (120) day period will become the property of the Lessor,
except that if Lessor requires that any of such property be removed, Lessee shall remove the same
property, or in the event Lessee fails to do so, Lessor may remove the same at the sole cost, risk and
expense of Lessee.
14. TERMINATION: Any well or wells shall be abandoned in accordance with all rules and
regulations of the Railroad Commission of the State of Texas and any other environmental or regulatory
governmental body having jurisdiction thereof. All pipelines shall be removed and the surface restored
and leveled. Any pipeline, pits or other excavations shall be dug using the two-step method as
understood in the pipeline business. Upon abandonment, top soil shall be placed on the surface to its
original depth. Any ground contamination caused by Lessee shall be corrected within a reasonable time
to conform with then existing environmental rules and regulations.
15. FORCE MAJEURE: The covenants and agreements herein expressed or implied in this agreement
shall be subject to all valid Federal and State laws, executive orders, rules or regulations, and this lease
shall not be terminated, in whole or in part and neither Lessor nor Lessee held liable in damages for
failure to comply therewith if compliance is prevented by, or if such failure is the result of any such law,
order, rule or regulation. If after the primary term, from such cause, Lessee is prevented from
conducting drilling or reworking operations on, or producing oil or gas from the leased premises, the
time while Lessee is so prevented shall not be counted against Lessee, and this lease shall be extended
for a period of time equal to that during which Lessee is so prevented from conducting such drilling or
reworking operations on, or producing oil or gas from the leased premises, notwithstanding any other
provision thereof. Similarly, when drilling or other operations are delayed or interrupted by storm,
flood, or other acts of God, fire, war, rebellion, insurrection, riot, strikes, differences with workmen, or
failure of carrier to transport or furnish facilities for transportation, or as a result of some order,
requisition, or necessity of the government, the time of such delay or interruption shall not be counted
against Lessee, anything in this lease to the contrary notwithstanding, and in such event this lease shall
6
be extended for a period of time equal to that during which such Lessee is so prevented from conducting
drilling or reworking operations on, or producing oil or gas from such leased premises, notwithstanding
any other provision hereof. Lessee shall within thirty (30) days after receiving notice of any such
Federal or State law, executive order, rule or regulation, act or event contemplated under this section,
notify Lessor thereof and advise Lessor of the effect of such upon this lease. Lessee shall similarly
notify Lessor promptly of the termination thereof. Provided, however, the provisions of this paragraph
shall in no way abridge the right of Lessor to receive, or relieve Lessee of the obligation to pay, any
minimum sums herein described and provided. Anything to the contrary notwithstanding, this lease shall
not be suspended by reason of this paragraph for longer than one year per occurrence.
16. BREACH OF TERMS: Except as herein otherwise provided, the material breach by Lessee of any
obligation arising hereunder shall not work as a forfeiture or a termination of this lease or cause a
termination or reversion of the estate hereby created nor be grounds for cancellation hereof in whole or
in part unless Lessor has first given to Lessee notice in writing specifying the particulars in which, in the
opinion of Lessor, Lessee has failed or beached this lease, and unless Lessee (if Lessee, in fact, be in
default in the particulars specified) shall fail to proceed within thirty (30) days after receipt of such
notice to comply with the obligations of said lease specified in said notice. If Lessee be of the opinion
that it is not in default in the particulars specified, Lessee shall reply to Lessor in writing within thirty
(30) days of the receipt of such notice by Lessor, specifying how, in the opinion of Lessee, Lessee is not
in breach of this lease. If Lessor brings suits to compel performance of or to recover for breach of any
covenant or condition herein contained, or for declaratory reliet and prevails therein, Lessee agrees to
pay to Lessor reasonable attorney and consultant fees in addition to the amount of judgment and costs.
17. WELL INFORMATIONANSPECTION: Upon written request of Lessor, Lessee shall furnish
Lessor with true copies of each application and report made by Lessee to the governmental authority
asserting jurisdiction pertaining to operations on the leased premises or on land pooled therewith
simultaneously with Lessee's filing of each application and report with such governmental authority.
Upon written request, Lessee shall promptly furnish Lessor with full information on the metering of
production and production runs, together with full information regarding the calculation of all royalties
payable under this lease.
18. ASSIGNMENT: The rights of Lessor hereunder may be assigned as to all or any part of the land or
as to any minerals thereunder, and the provisions hereof shall extend to the heirs, successors and assigns
but no change or division in ownership of the lands, rentals or royalties however accomplished, shall
operate to enlarge the obligation or diminish the rights of Lessee. Likewise, no change in ownership of
the leasehold rights hereby conveyed, however accomplished, shall operate to enlarge the obligations or
diminish the rights of Lessor hereunder. No sale or assignment by either party hereto shall be binding on
the other party until such other party or an authorized agent thereof shall be furnished with a certified
copy of recorded instrument evidencing same.
19. LIABILITY FOR DAMAGES: It is agreed that the terms and provisions of this agreement shall
inure to and be binding upon the respective successors, heirs, and assigns of Lessor and Lessee.
Notwithstanding that this lease may be assigned in whole or in part, it is understood and agreed that the
Lessee, both the original Lessee, as long as that Lessee owns an interest in and to the leasehold estate,
and such assignees shall nevertheless be jointly and severally liable to Lessor, their heirs, successors,
and assigns, for all damages to the surface and subsurface of the lands covered hereby, for any and all
pollution caused by operations hereunder, for the non-compliance with all Federal, State or other
governmental or regulatory body's or agency's laws, rules and regulations, either now in effect or
hereinafter enacted or promulgated, and also without limitation by enumeration, any and all other causes
of such action which may be asserted against Lessor, their heirs, successors, and assigns, for acts or
omissions caused by operations hereunder by any Lessee, and in connection with all of these, Lessee
7
and all such assignees shall be obligated to indemnify and hold harmless the Lessor, their heirs,
successors and assigns.
20. PAYMENTS, NOTICES, ETC.: All payments of monies payable to Lessor under the terms and
provisions hereof may be paid or tendered to Lessor or to the credit of Lessor in a bank as set forth by
Lessor, which bank and its successors shall continue as the depository for all monies payable hereunder,
regardless of changes in ownership of said land or said minimum royalties, unless and until Lessor shall
execute and de!iver to Lessee a recordable instrument naming and designating another and different
bank for such payments or tenders. If such bank (or any successor bank) should fail, liquidate or be
succeeded by another bank, or for any reason fail or refuse to accept said payments, Lessee shall
immediately notify Lessor thereof and shall not be held in default for failure to make such payment or
tender until thirty (30) days after Lessor shall deliver to Lessee a proper recordable instrument naming
another bank to receive such payment or tender. Any notices, reports, maps, logs, requests or any other
communications herein provided to be made to Lessor by Lessee shall be made to the City Manager or
his designee, City of Beaumont, 801 Main Street, Suite 300, Beaumont, Texas 77701. Any notices or
communications specified in this lease to be given to Lessee by Lessor shall be made to TexBrit
Corporation, 505 Miilam Street, Suite 600, Beaumont, Texas, 77701.
21. SECTION HEADINGS: Paragraph and section headings and titles are for convenience only, and
do not represent interpretation or intent of the substance of the terms and provisions of this agreement.
22. POOLING: At the expiration of the primary term and after all continuous development operations
have ceased, this lease shall terminate as to all depths 100 feet below the deepest depth drilled in any
unit containing all or part of the above described lands. Lessor reserves the right of ingress and egress
through all formations for the purpose of drilling to and producing oil or gas from the formations which
may revert to Lessor and the right to use as much of said surface as is necessary for the drilling for,
production of and storage of oil and gas from such formations.
It is expressly agreed and understood Lessee is hereby granted the right, at its option, to pool or unitize
any land covered by this lease, with any other land covered by this lease, and/or with any other land,
lease, or leases, as to any or all minerals or horizons, so as to establish units, the size of which shall be
limited in the same manner described herein below for limiting producing acreage retained after the
expiration of the primary term. The size of any established unit may be changed from time to time as
required by any governmental ruling or order to conform to the size required by such governmental
order or ruling. There shall be allocated to the land covered by this lease within each such unit that
proportion of the total production of unitized minerals from the unit, after deducting any production
used in lease or unit operations, which the number of surface acres in the land covered by this lease that
is put in the unit bears to the total number of surface acres in the unit. Lessee shall establish all such
units by filing an instrument identifying such unit for record in the Office Public Records of Real
Property in Jefferson County, Texas.
HOWEVER, after the expiration of the primary term, and after the discovery and production of oil, gas
or other liquid hydrocarbons in paying quantities on the leased premises, Lessee shall reasonably
develop the acreage retained hereunder, and in complying with this provision, it is agreed that in the
event more than one hundred eighty (180) days elapse between the completion of one well and the
commencement of actual drilling operations on the next well, Lessee shall upon written demand of
Lessors, forthwith execute and deliver to the Lessors, or place of record in the county in which said land
is located, a release of all the premises covered by this lease, save and except that Lessee may retain
under the terms hereof not more than eighty (80) acres surrounding each producing oil well or oil well
then being reworked; not more than six hundred forty (640) acres surrounding each producing gas well,
shut-in gas well, gas well then being reworked, unless otherwise agreed to by Lessors, provided that if at
any time the foregoing arises, the Railroad Commission of Texas or any government authority asserting
8
jurisdiction has prescribed a spacing pattern for the orderly development of the field or allocates a
producing allowable for a well with acreage content as a factor which is in greater than or less than the
above-described acreage, this lease shall remain in force and effect as to the tract or tracts of land
designated by Lessee in the manner herein provided containing the maximum number of acres so
prescribed or allocated and in effect at the time, such tracts around each such well and in each pooled
gas unit being hereinafter referred to as "well tracts."
23. LESSEE shall abandon any well or wells on lands covered by this lease within 120 days after such
well ceases to produce or at such time as that part of this lease containing such well or wells terminates.
whichever is the earlier date.
24. NOTWITHSTANDING anything to the contrary herein contained, this lease is granted without
warranty of title of any kind whatsoever, expressed or implied. The Lessors warranty of title herein is
limited to the refund to Lessee of the original per acre bonus paid for each mineral acre on which title
fails. This shall be the only recourse against the Lessor in the event of any failure of title.
25. WHEREVER the term "Lessor" is used it shall mean the named "Lessor," its successors, or assigns.
Wherever the term "Lessee" is used, it shall mean the named "Lessee," its successors, heirs, devisees or
assigns.
26. ALL development of this lease shall be by directional drilling from adjacent tracts or by pooling
with adjacent tracts unless there is a specific written agreement approved by both the City of Beaumont
and TexBrit Corporation.
IN WITNESS WHEREOF, this instrument is hereby executed to be effective as of the date first above
written.
LESSOR: LESSEE:
CITY OF BEAUMONT TEXBRIT CORPORATION
By: By:
Kyle Hayes, City Manager Michael E. Brennan, President
9
STATE OF TEXAS §
COUNTY OF JEFFERSON §
BEFORE ME, the undersigned authority, personally appeared Kyle Hayes, City Manager of the
City of Beaumont, known to me to be the person and officer whose name is subscribed to the foregoing
instrument, and acknowledged to me that the same was the act of the City of Beaumont, a municipal
corporation, and that he executed the same by appropriate resolution of the City Council for the purpose
and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of ,
A.D. 2005.
Notary Public, State of Texas
STATE OF TEXAS §
COUNTY OF JEFFERSON §
BEFORE ME, the undersigned authority, personally appeared Michael E. Brennan, President for
TexBrit Corporation known to me to be the person and officer whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
A.D. 2005.
Notary Public, State of Texas
10
EXHIBIT "A"
ATTACHED TO and by reference made a part of that certain Oil and Gas Lease dated February ,
2005 by and between the City of Beaumont, as Lessor, and TexBrit Corporation, as Lessee.
0.0249 acres of land, more or less, out of the Daniel Easley Survey, A-20, Jefferson County, Texas,
being more particularly described in that certain Warranty Deed dated June 1, 1944, executed by C. C.
Crain, et ux, in favor of Will W. Click, recorded in Volume 556, Page 18 of the Deed Records of
Jefferson County, Texas.
SIGNED FOR IDENTIFICATION:
CITY OF BEAUMONT
By:
Kyle Hayes, City Manager
TEXBRIT CORPORATION
By:
Michael E. Brennan, President
11
El
City of Beaumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS MARCH 29,2005 1:30 P.M.
AGENDA
CALL TO ORDER
* Invocation Pledge Roll Call
* Presentations and Recognition
* Public Comment: Persons may speak on scheduled agenda items 3-7/Consent
Agenda
* Consent Agenda
GENERAL BUSINESS
1. Consider approving a request for a specific use permit to allow a cellular telephone
transmission tower in a C-M (Commercial-Manufacturing) District at 6285 Walden
Road
2. Consider approving a request for an amendment to the Zoning Ordinance, Section
30 to delete GC-MD-3 and to delete halfway houses for delinquents and offenders
as a use permitted with a specific use permit in the CBD and PUD Districts
3. Consider approving a bid for mowing privately owned properties in violation of
City ordinances
4. Consider approving a bid for mowing city-owned and abandoned properties
5. Consider authorizing the City Manager to execute a lease agreement with the
Beaumont Association for Senior Citizens (BASC)
6. Consider approving a new solid waste collection and transportation service
franchise to Arrow Waste, Inc.
7. Consider approving a new solid waste collection and transportation service
franchise to Triangle Waste Solutions, LLC
COMMENTS
* Councilmembers/City Manager comment on various matters
* Public Comment (Persons are limited to 3 minutes)
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids
or services are requested to contact Pat Buehrle at 880-3725 a day prior to the meeting.
I
March 29, 2005
Consider approving a request for a specific use permit to allow a cellular telephone transmission
tower in a C-M (Commercial-Manufacturing) District at 6285 Walden Road
Ci ty of Beaumont
ter• Council Agenda Item
K g
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Stephen C. Richardson, Planning Manager
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 22, 2005
REQUESTED ACTION: Council consider a request for a specific use permit to allow a cellular
telephone transmission tower in a C-M(Commercial-Manufacturing)
District at 6285 Walden Road.
RECOMMENDATION
The Administration recommends approval of a specific use permit to allow a cellular telephone
transmission tower in a C-M (Commercial-Manufacturing) District at 6285 Walden Road.
BACKGROUND
Voice Stream of Houston (dba T-Mobile) wishes to construct a 190' tall self-supporting cellular
telephone transmission tower at the rear of Mason Construction Company. Within the 65'x 65'lease
area,the facility will include the tower and a 10'x 16'equipment building and a 4'x 8'generator pad.
The lease area will be accessed by a 30' wide access easement off of Walden Road and will be
surrounded by a chainlink fence.
The subject property is more than 2,600 feet from the nearest residentially zoned property.
BUDGETARY IMPACT
None.
PREVIOUS ACTION
At a Joint Public Hearing held March 21, 2005, the Planning Commission voted 8:0 to approve a
specific use permit to allow a cellular telephone transmission tower in a C-M (Commercial-
Manufacturing) District at 6285 Walden Road.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
Planning Commission, City Manager, Public Works Director and the Planning Manager.
The"20% Rule"
Section 30-40. D. of the Zoning Ordinance states the following:
Protest: The City Council shall not amend, supplement, change,
modify or repeal any regulation,restriction or boundary or approve a
Specific Use Permit where a protest against such change, signed by
the owners of twenty(20) percent or more either of the area of the
lots included in such proposed change or of the lots or land
immediately adjoining the same and extending two hundred (200)
feet therefrom, except by the favorable vote of three-fourths(3/4)of
all the members of the City Council.
This means that in order to approve a zone change or specific use permit when the
20% rule has been invoked at least six Council members must vote in favor of the
Ordinance.
On File 1772-P, a protest of 50%was received,therefore invoking the Rule on this
case.
ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE
PERMIT TO ALLOW A CELLULAR TELEPHONE
TRANSMISSION TOWER IN A C - M
(COMMERCIAL-MANUFACTURING)DISTRICT LOCATED AT
6285 WALDEN ROAD IN THE CITY OF BEAUMONT,
JEFFERSON COUNTY, TEXAS.
WHEREAS,the City Council for the City of Beaumont desires to issue a specific use
permit to Voice Stream, Houston, Texas, (dba T-Mobile) to allow a cellular telephone
transmission tower in a C-M (Commercial-Manufacturing) District located at 6285 Walden
Road, being the East 175' of Lots 9-10, Block 2, Tracts A & D, Beaumont Citrus Fruit
Gardens, City of Beaumont, Jefferson County,Texas, containing 2.18 acres, more or less,
as shown on Exhibit "A" attached hereto; and,
WHEREAS, the City Council is of the opinion that the issuance of such specific use
permit is in the best interest of the City of Beaumont and its citizens;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
That all conditions necessary for issuance of a specific use permit have been met
and a specific use permit to allow a cellular telephone transmission tower in a C-M
(Commercial-Manufacturing) District located at 6285 Walden Road, being the East 175'
of Lots 9-10, Block 2, Tracts A & D, Beaumont Citrus Fruit Gardens, City of Beaumont,
Jefferson County, Texas, containing 2.18 acres, more or less, is hereby granted to Voice
Stream, Houston,Texas(dba T-Mobile), its legal representatives, successors and assigns
for those certain tracts as described in Exhibit"A" attached hereto and made a part hereof
for all purposes.
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 30 of the Code of Ordinances of Beaumont, Texas, as amended.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 29th day of
March, 2005.
- Mayor Evelyn M. Lord -
File 1772-P: Request for a specific use permit to allow a cellular telephone FORTH
transmission tower in a C-31 (Commercial-Manufacturing) District. S
Location: 6285 Walden
Applicant: Voice Stream of Houston (dba T-Mobile) SCALE
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2
March 29, 2005
Consider approving a request for an amendment to the Zoning Ordinance, Section 30 to delete
GC-MD-3 and to delete halfway houses for delinquents and offenders as a use permitted with a
specific use permit in the CBD and PUD Districts
V~107-1
City of Beaumont
VW_
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Stephen C. Richardson, Planning Manager
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 22, 2005
REQUESTED ACTION: Council consider a request for an amendment to the Zoning
Ordinance, Section 30 to delete GC-MD-3 and to delete halfway
houses for delinquents and offenders as a use permitted with a
specific use permit in the CBD and PUD Districts.
RECOMMENDATION
The Administration recommends approval of an amendment to the Zoning Ordinance, Section 30
to delete GC-MD-3 and to delete halfway houses for delinquents and offenders as a use permitted
with a specific use permit in the CBD and PUD Districts.
BACKGROUND
In 1998,the City Council approved a broad range of changes to the Zoning Ordinance. One of these
changes involved the creation of the GC-MD-2(General Commercial-Multiple Family Dwelling-2)
District and GC-MD-3 (General Commercial-Multiple Family Dwelling-3) Districts. These two
districts were to be used when a use permitted by-right in the GC-MD could produce a negative
impact upon surrounding residential uses.
The GC-MD-2 District permits all of the uses that the GC-MD District does but requires a specific
use permit for all uses. The GC-MD-3 District,while not permitting as many uses as the GC-MD-2
District, permits some uses by-right and others with a specific use permit.
In the seven years following the creation of these two districts, GC-MD-2 has been used quite
frequently. However, GC-MD-3 has never been used. Therefore, the Planning Manager is
recommending that the GC-MD-3 District be deleted.
The Planning Manager is also recommending that"halfway houses for delinquents and offenders"
be deleted from the CBD(Central Business)District and PUD(Planned Unit Development)District.
With the efforts that the City and others are making towards the revitalization of the Central
Business District, the Planning Manager does not feel that the locating of halfway houses for
criminals and delinquents in the CBD is conducive to those revitalization efforts. The PUD District
is typically used in the development of new residential and commercial developments. Rarely would
a halfway house be part of these developments. Therefore,the Planning Manager is recommending
that halfway houses for delinquents and offenders be deleted from the PUD District.
BUDGETARYIMPACT
None.
PREVIOUS ACTION
At a Joint Public Hearing held March 21,2005,the Planning Commission voted 8:0 to approve an
amendment to the Zoning Ordinance, Section 30 to delete GC-MD-3 and to delete halfway houses
for delinquents and offenders as a use permitted with a specific use permit in the CBD and PUD
Districts.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
Planning Commission, City Manager, Public Works Director and the Planning Manager.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING CHAPTER 30,
ARTICLES I AND II OF THE CODE OF ORDINANCES OF
THE CITY OF BEAUMONT BY REPEALING SECTIONS 30-
5(a)(10)AND 30-15.2 TO ELIMINATE THE GC-MD-3 ZONING
DISTRICT DESIGNATION AND AMENDING CHAPTER 30,
ARTICLE III, SECTIONS 30-24(b), (PERMITTED USE
TABLE), 30-25(b) (AREAAND HEIGHT REGULATIONS), 30-
25(c)3, 30-25(c)16, 30-28(c)3, 30-31(1)3, 30-33(b)2(e), 30-
33(b)17AND 30-33(b)23 TO ELIMINATE ALL REFERENCES
TO GC-MD-3; ALSO AMENDING CHAPTER 30, ARTICLE II,
SECTION 30-24(b) (PERMITTED USE TABLE) OF THE
CODE OF ORDINANCES TO ELIMINATEALL REFERENCES
TO HALFWAY HOUSES FOR DELINQUENTS AND
OFFENDERS AS A USE PERMITTED WITH A SPECIFIC
USE PERMIT IN CBD AND PUD DISTRICTS; PROVIDING
FOR REPEAL AND PROVIDING A PENALTY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
THAT Chapter 30,Article I, Section 30-5(a)(10)and Article II Section 30-15.2 of the
Code of Ordinances of the City of Beaumont be and the same are hereby repealed.
Section 2.
THAT Chapter 30, Article III, Sections 30-24(b) (Permitted Use Table); 30-25(b)
(Area and Height Regulation), 30-25(c)3, 30-25(c)16; 30-28(c)3; 30-31(i)3; 30-33(b)2(e),
30-33(b)17 and 30-33(b)23 of the Code of Ordinances of the City of Beaumont be and the
same are hereby amended to eliminate all references to GC-MD3.
Section 3.
THAT Chapter 30, Article II Section 30-24(b) (Permitted Use Table) of the Code of
Ordinances of the City of Beaumont be and the same is hereby amended to eliminate all
references to halfway houses for delinquents and offenders as a use permitted with a
specific use permit in the CBD and PUD Zoning Districts.
Section 4.
THAT if any section, subsection, sentence, clause or phrase of this ordinance, or
the application of same to a particular set of persons or circumstances should for any
reason 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 5.
THAT all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
Section 6.
THAT any person who violates any provision of this ordinance shall, upon
conviction, be punished as provided in Section 1-8 of the Code of Ordinances of the City
of Beaumont, Texas.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 29th day of
March, 2005.
- Mayor Evelyn M. Lord -
3
March 29, 2005
Consider approving a bid for mowing privately owned properties in violation of City ordinances
City of Beaumont
M
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 23, 2005
REQUESTED ACTION: Council approval of the award of a bid for mowing privately owned
developed and vacant property.
RECOMMENDATION
Administration recommends the award of a bid for an annual contract to Perfect Cut Lawn Care of
Beaumont for mowing privately owned developed and vacant properties as per the unit prices stated
in the attached tabulation.
BACKGROUND
Bids were received on Thursday, February 24, 2005, for providing mowing services to the Public
Works Department,Code Enforcement Division. The annual contract,scheduled to commence April
1, will provide mowing services for privately owned property in violation of weed ordinances.
Since 1998, the Clean Community Department provided crews and equipment to mow property in
violation of weed ordinances as directed by the Neighborhood Services Division. After
reorganization of the department last year,it was determined that contracting for this service is more
cost effective. Four(4)positions were eliminated from the Clean Community Department FY2005
budget. Employees in these positions were transferred to other jobs within the City.
Properties are in violation of the weed ordinance when uncultivated growth exceeds twelve (12)
inches. Property owners are notified of the violation and given a specified time to bring the property
into compliance. If property owners fail to comply with the ordinance,the City cuts the property and
the owner is fined.
Mowing Contract
March 15, 2005
Page 2
A pre-bid conference was held prior to the bid opening with ten (10) contractors attending. The
conference provided contractors with the opportunity to ask specific questions concerning the
specifications and payment process. Six(6)contractors submitted bids as per the attached tabulation.
Contract specifications requested a minimum price for cutting properties 6,500 square feet or less in
size; a price per square foot for properties greater than 6,500 square feet but less than an acre, and
a price per acre. The majority ofthe properties are standard size lots between 6,500 and 8,500 square
feet.
The contract will be managed by the Code Enforcement Division. The Contractor will be given a list
of properties to mow each week. All properties must be mowed within five (5) days after
notification. Inspection of the properties will be made by the representatives in the Code
Enforcement Division prior to payment to ensure compliance with the specifications.
BUDGETARY IMPACT
Funds are available in the Solid Waste Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and Internal Services Director.
BID TABULATION: ANNUAL CONTRACT FOR MOWING DEVELOPED AND VACANT PRIVATELY OWNED PROPERTY
BID OPENING DATE: THURSDAY, FEBRUARY 24, 2005 @ 2:00 PM
BID NUMBER: BF0205-26
Vendor ODI Perfect Cut Lawn Care Lightfoot Enterprises
City/ State Beaumont, TX Beaumont, TX Vidor, TX
Est. Annual—Q—ty7l Unit Price Ext. Pn�ce7j Unit Price Ext. Price Unit Price Ext. Price
6,500 sq.ft. or less minimum bid 600 cuttings $22.75 $13,650.00 $20.00 $12,000.00 $35.00 $21,000.00
6,500 sq.ft. up to one acre 24,000,000 sq.ft. $0.0035 $84,000.00 $0.0050 $120,000.00 $0.0050 $120,000.00
One acre or greater 10 parcel > 1 acre $129.79 $1,297.90 $40.00 $400.00 $60.98 $609.80
11TOTAL 11 Withdrew Bid 98 947.90 $132,400.00 5141 609.80
Vendor The Garden of Gethsemane Tomahawk Lawn Service Clean Cut Lawn Care Spe.
City/ State Beaumont, TX Groves TX Lumberton TX
Est, Annual Qty. 11 Unit Price Ext. Price Unit Price Ext. Price Unit Pnce7j Ext. Price
6,500 sq.ft. or less minimum bid 600 cuttings $45.00 $27,000.00 60.00 $36,000.00 $162.50 $97,500.00
6,500 sq.ft. up to one acre 24,000,000 sq.ft. $0.0063 $151,200.00 $0.0092 $220,800.00 $0.03 $720,000.00
One acre or greater _J 10 parcel > 1 acre $72.00 $720.00 $60.00 $600.00 $217.50 $2,175.00
TOTAL i $178,920.00 257 400.00 $819,675.00
4
March 29, 2005
Consider approving a bid for mowing city-owned and abandoned properties
City of Beaumont
�• Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 23, 2005
REQUESTED ACTION: Council approval of the award of a bid for mowing city-owned and
abandoned developed and vacant property.
RECOMMENDATION
Administration recommends the award of a bid for an annual contract to Yardboy Lawncare of
Beaumont for mowing city-owned and abandoned developed and vacant properties as per the unit
prices stated in the attached tabulation.
BACKGROUND
Bids were received on Thursday,March 3, 2005,for providing mowing services to the Public Works
Department,Code Enforcement Division. The annual contract,scheduled to commence April 1,will
provide mowing services for city-owned and abandoned property.
Since 1998, the Clean Community Department provided crews and equipment to mow city-owned
and abandoned property as directed by the Neighborhood Services Division. After reorganization
of the department last year,it was determined that contracting for this service is more cost effective.
Four (4) positions were eliminated from the Clean Community Department FY2005 budget.
Employees in these positions were transferred to other jobs within the City.
City-owned properties consist of lots purchased for neighborhood revitalization,street right-of-way
or donated property. Abandoned property is privately owned but the owners cannot be located.
City staff maintains a list of these properties and mows them every four weeks during the growing
season. Currently,there are approximately 270 parcels of city-owned property ranging from 2,000
sq. ft. to 219,000 sq. ft. and 267 parcels of abandoned property ranging in size from 1,625 sq. ft. to
an acre. City-owned property declared surplus and of no value to the City is routinely offered for
sale. Once sold, the property is removed from the list of properties to be mowed, therefore, the
number of properties is subject to change.
Mowing Contract
March 15, 2005
Page 2
A pre-bid conference was held prior to the bid opening with ten (10) contractors attending. The
conference provided contractors with the opportunity to ask specific questions concerning the
specifications and payment process. Six(6)contractors submitted bids as per the attached tabulation.
Contract specifications requested a minimum price for cutting properties 6,500 square feet or less in
size, a price per square foot for properties greater than 6,500 square feet but less than an acre, and
a price per acre. The majority ofthe properties are standard size lots between 6,500 and 8,500 square
feet.
The contract will be managed by the Code Enforcement Division. The Contractor will be given a list
of properties to mow each week. All properties must be mowed within five (5) days after
notification. Inspection of the properties will be made by the representatives in the Code
Enforcement Division prior to payment to ensure compliance with the specifications.
BUDGETARY IMPACT
Funds are available in the Solid Waste Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and Internal Services Director.
BID TABULATION: ANNUAL CONTRACT FOR MOWING DEVELOPED AND VACANT CITY OWNED AND ABANDONED PROPERTY
BID OPENING DATE: THURSDAY, MARCH 3, 2005 @ 2:00 PM
BID NUMBER: BF0205-27
Vendor Yardboy Lawncare The Garden of Gethsemane ODI
City/ State Beaumont TX Beaumont TX Beaumont, TX
Est. Annual Qt . Unit Price j Ext. Price Unit Price 11 Ext. Price Unit Price Ext. Price j
6,500 sq.ft. or less minimum bid 1,944 cuttings $18.00 $34,992.0 0 $36.00 $69,984.00 $21.291 $41,387.76
6,500 sq.ft. up to one acre 50,000,000 sq.ft. $0.00248 $124,000.00 $0.0027 $135,000.00 $0.0032751 $163,750.00 i
One acre or greater 10 parcel > 1 acre $80.00 $800.00 $117.00 $1,170.00 $105.001 $1,050.001
TOTAL 159 792.00 206 154.00 206,187.76 i1
Vendor Clean Cut Lawn Care Sp. Lightfoot's Tomahawk Lawn Service
City/State Lumberton, TX Vidor, TX Groves TX
Est. Annual Qty. Unit Price Ext. Price Unit Price Ext. Price 11 Unit Price_J11 Ext. Price
6,500 sq.ft. or less minimum bid 1,944 cuttings $22.00 $42,768.00 $35.00 $68,0401.00 $60.00 116,640.00;
6,500 sq.ft. up to one acre 50,000,000 sq.ft. $0.0035 $175,000.00 $0.0050 $250,000.00 $0.0092 $460,000.001
One acre or greater
10 parcel > 1 acre $100.00 $1,000.00 $60.00 $600.001 $60.00 $600.00
TOTAL $218,768.00 318,640.00 577,240.00
5
March 29, 2005
Consider authorizing the City Manager to execute a lease agreement with the Beaumont
Association for Senior Citizens (BASC)
M~
.4"fia City of Beaumont
MTKI Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 22, 2005
REQUESTED ACTION: Council consider authorizing the City Manager to execute a lease
agreement with the Beaumont Association for Senior Citizens
(BASC).
RECOMMENDATION
Administration recommends authorizing the City Manager to execute a two (2) year agreement
with BASC for Space Allocation at the Best Years Center, located at 780 South Fourth Street.
BACKGROUND
BASC has leased an area of approximately 4,768 square feet in the north wing of the Best Years
Center since 1979. The space is used to provide activity programs for approximately 50 senior
and disabled citizens each day including hot meals, arts and crafts, exercise classes, dances,
recreational games and other similar activities. More importantly, nursing services are provided
as an LVN is on duty at all times when seniors are present. The LVN administers to the needs
of the guests, including dispensing medicine and monitoring health issues.
In addition, BASC provides transportation services averaging 100 rides per day for pick-up and
delivery to the Center, and 2,000 rides per month for medical needs. The Association is licensed
through the Texas Department of Health to provide an adult day care center for up to 67
individuals, and receives funding for clients attending the Center through the Texas Department
of Human Services.
The new contract provides for a two (2) year agreement, beginning April 1, 2005 and expiring
March 31, 2007. All provisions of the agreement remain the same as in previous years, with the
exception of changing the three year term to two years. BASC agrees to meet insurance policy
requirements for comprehensive general liability in the amount of $1,000,000. BASC is
Contract Agreement - BASC
March 29, 2005
Page 2
responsible for custodial maintenance of the leased area. Utilities (except for telephone service),
and structural maintenance is provided by the City. Either party has the right to terminate the
contract by giving the other party sixty (60) days' notice of termination in writing.
As consideration for use of the space, an advance payment of One Dollar ($1.00)per year for the
two year term is required.
A copy of the agreement, in substantial form, is attached for your review.
BUDGETARY IMPACT
BASC agrees to pay the City a nominal fee of One Dollar ($1.00) per year for the two-year
contract.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Internal Services Director and Libraries and Recreation Director.
C.Oacvrviu�0 SninV'bmNV.IY Docw.w.W PD(%}ImcAAS('-Biv Yas('rnwDAS('lati XIOaUReM.Fmi.BAS('.R.aw laac.M W 5+pd
THE STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF JEFFERSON §
CONTRACT FOR SPACE ALLOCATION
This Contract for Space Allocation is made and entered into this day of
, 2005, by and between the City of Beaumont, a municipal corporation organized
under the laws of the State of Texas located and domiciled in Jefferson County, Texas, hereinafter
referred to as "City," and Beaumont Association for Senior Citizens, hereinafter referred to as
"BASC."
RECITALS
The City is the sole owner of the premises described below,and desires to allocate space to
BASC for the purpose of a daily activity center for Senior Citizens.
The parties desire to enter into a contract defining their rights,duties,and liabilities relating
to the space.
In consideration of the mutual covenants and agreements herein set forth,and the benefit to
the Senior Citizens of Beaumont,BASC agrees to pay the City as rent for said space the sum of One
Dollar($1.00)per year in advance, at the City Hall in Beaumont, Texas. City does hereby demise
and allocate to BASC and BASC does hereby rent from the City, Four Thousand Seven Hundred
Sixty-Eight(4,768)square feet,more or less,of space located in the North Wing of the"Best Years
Senior Center" located at 780 South Fourth Street, Beaumont, Texas, and more particularly
described by the shaded area in the floor plan attached as Exhibit"A"hereto and hereinafter called
the "allocated space."
1.
The term of this contract shall be for two(2)years commencing on April 1,2005,and ending
March 31, 2007, unless sooner terminated as herein provided.
2.
It is understood and agreed between the parties hereto that the BASC will use the allocated
space only for Senior Citizen Activity Programs to include, but not limited to, hot meals, arts and
crafts,exercises,dances,recreational games,and other similar activities, unless the City has given
BASC prior written consent for a different use. In connection with its use of and activities in and
about the allocated space and the building, BASC, at its expense, will comply and will cause its
employees, agents, and invitees to comply with all applicable laws and ordinances, and with all
applicable rules and regulations of governmental agencies,and BASC will conduct itself and cause
its employees,agents,and invitees to conduct themselves with full regard for the rights,convenience
and welfare of all other tenants in the building. Provided BASC has performed all of the terms,
covenants, agreements, and conditions of this contract, including the payment of rent, to be
performed by BASC, BASC shall peaceably and quietly hold and enjoy the space for the term
hereof, without hindrance from the City, subject to the terms and conditions of this Contract.
3.
3.01 BASC acknowledges that its acceptance of possession of the allocated space
constitutes a conclusive admission that it has inspected the allocated space and has found it in good
condition and repair.
3.02 BASC shall perform usual janitorial and maintenance service including the sweeping
and waxing of floors,and the cleaning of windows. Replacement of light bulbs or fluorescent tubes
-2-
in the standard lighting fixtures installed in the building will be performed by the City, as general
building maintenance. BASC shall also maintain and keep the public and common areas of the
Building, such as lobbies, stairs, corridors, and restrooms, in good order and condition.
3.03 The purchase of janitorial supplies will be the responsibility of the BASC, and will
be included as part of the BASC's usual janitorial maintenance service. Utilities will be provided
by the City, with the exception of telephone service,which will be the responsibility of the BASC.
3.04 If disposal needs should necessitate the acquisition of a separate dumpster for the
Association, BASC, within thirty (30) days after receipt of written notice from the City, agrees to
acquire said dumpster, and be responsible for all expenditures related to solid waste collection for
the Association.
3.05 If the Community Services Director,or designee,should deem necessary the purchase
of toilet tissue paper, and roll paper towels for the exclusive use of the BASC, BASC within thirty
(30) days from the City's written notice will comply with such purchase requirement.
4.
4.01 BASC shall be liable for all taxes levied or assessed against personal property,
furniture, or fixtures placed by BASC in the space.
4.02 BASC shall not make any alteration, additions, or improvements to the allocated
space without the prior written consent of the City. Consent for nonstructural alterations,additions,
or improvements shall not be unreasonably withheld by the City. BASC shall have the right at all
times to erect or install furniture and fixtures, provided that BASC complies with all applicable
governmental laws,ordinances and regulations at the termination of this contract. BASC shall have
the right to remove such items so installed,provided BASC is not in default;however,BASC shall,
-3-
prior to the termination of this contract, repair any damage caused by such removal.
4.03 The City or its officers,agents, and representatives shall have the right to enter into
and upon any and all parts of the allocated space at all reasonable hours to inspect same, make
repairs, alterations or additions as the City may deem necessary (but without any obligation to do
so, except as expressly provided for herein).
5.
BASC shall carry a policy of comprehensive general liability insurance with a company
acceptable to the City, naming the City as an additional insured in the sum of One Million Dollars
($1,000,000.00) combined single limit during the entire term of the contract. The original policy
shall be filed with the City Clerk of the City of Beaumont.
6.
BASC agrees to indemnify and hold the City harmless from and against any and all claims,
demands, suits, damages, costs and expenses, including reasonable attorney's fees for the defense
thereof, arising from the conduct or management of BASC's business or its use of the allocated
space or from any breach on the part of BASC of any conditions of this contract,or from any act or
negligence of BASC, its agents, contractors, employees, subtenants, guests or invitees in or about
the allocated space and specifically including negligence by the City. In case of any action or
proceeding brought against the City by reason of any such claim,BASC,upon notice from the City,
covenants to defend such action or proceeding by counsel acceptable to the City.
7.
BASC shall not assign or sublet the allocated space or any part thereof without the written
permission of the City Manager of the City of Beaumont.
-4-
8.
8.01 The City may terminate this contract in the event the allocated space is abandoned
or vacated by BASC during the term of this contract. In such circumstance,the City shall have the
right to re-enter and repossess the demised space by force,and to dispossess and remove therefrom
all occupants and their effects, without being liable for any prosecution therefor, and to hold the
space as if this contract had not been made.
8.02 BASC hereby waives all rights and notice to quit or intention to re-enter the space
under the provisions of any statute of the State of Texas, or of this contract, in the event of any
abandonment of the allocated space.
9.
BASC shall, on the last day of the term or on earlier termination and forfeiture of the
contract, peaceably and quietly surrender and deliver the allocated space to the City free of
subtenancies, including all buildings, additions, and improvements constructed or placed thereon
by BASC, except movable trade fixtures, all in good condition and repair. Any trade fixtures or
personal property not used in connection with the operation of the allocated space and belonging to
BASC, if not removed at the termination or default, and if the City so elects, shall be deemed
abandoned and become the property of the City without any payment or offset therefor. BASC shall
repair and restore all damage to the allocated space caused by the removal of equipment, trade
fixtures, and personal property.
10.
Should BASC hold over the space,or any part thereof,after the expiration of the term of this
contract,unless otherwise agreed in writing,such holding over shall constitute and be construed as
-5-
tenancy from month-to-month only. Inclusion of the preceding sentence shall not be construed as
the City's consent for BASC to hold over.
11.
This contract contains the entire agreement between the parties and cannot be changed or
terminated except by written instrument subsequently executed by the parties hereto. This contract
and the terms and conditions hereof apply to and are binding upon the heirs, legal representatives,
successors, and assigns of both parties.
12.
This contract shall be governed by and construed in accordance with the laws of the State
of Texas, and all obligations of the parties created hereunder are performable in Jefferson County,
Texas.
13.
Either party may cancel this contract by giving to the other party sixty (60) days notice of
said termination in writing. BASC shall, within said sixty(60)days, vacate the space and remove
all of BASC's property therefrom. Any property belonging to BASC not removed within said sixty
(60) day period shall become the property of the City.
14.
All notices provided to be given under this contract shall be given by certified mail or
registered mail, addressed to the proper party at the following addresses:
City Manager
City of Beaumont
P. O. Box 3827
Beaumont, TX 77704-3827
-6-
Beaumont Association for Senior Citizens
780 South Fourth Street
Beaumont, TX 77701
IN WITNESS WHEREOF,the undersigned the City and BASC hereto execute this contract
as of the date and year first above written.
THE CITY OF BEAUMONT
BY:
KYLE HAYES
CITY MANAGER
BEAUMONT ASSOCIATION FOR SENIOR CITIZENS (BASC)
BY:
MYRNA R. ELLSWORTH
ADMINISTRATOR
-7-
6
March 29,2005
Consider approving a new solid waste collection and transportation service franchise to Arrow
Waste, Inc.
L15j Cat Y of Beaumont
C ouncil A enda Item
� K g
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 24, 2005
REQUESTED ACTION: Council consider granting a new solid waste collection and
transportation service franchise.
RECOMMENDATION
Administration recommends granting a solid waste collection and transportation service franchise
to Arrow Waste, Inc.
BACKGROUND
According to City ordinances, a franchise agreement is required prior to a firm conducting
business within the City limits. Five (5) firms currently have nonexclusive franchise agreements
with the City and are doing business in this area. Arrow Waste has requested that the City grant
the company a franchise agreement for collection, hauling and transportation garbage or refuse
from locations in the City, and the disposal of such material in accordance with applicable laws.
Arrow Waste was formed in 2001 by Juan DeAanda. Prior to forming this company, Mr.
DeAanda owned Custom Waste of Houston from 1981 to 1996, when he sold it to Sanifill
Industries (Waste Management), due to illness in his family. After his Non-Compete status
expired in 2001, Mr. DeAanda formed Arrow Waste. The company is headquartered in Houston,
Texas, where it currently operates 12 trucks and employs 23 people.
In 2003 the company formed an additional waste disposal business known as Capitol City Disposal
of Austin which currently operates five trucks and employs seven people. Both companies,
Capitol City Disposal and Arrow Waste, are 100% minority owned and operated. Arrow Waste
anticipates operating 10-12 trucks in our area over the next five years with approximately 15
employees.
Solid Waste Transportation and Collection Services
Arrow Waste Franchise Agreement
March 29, 2005
Page 2
The requested franchise agreement is generally the same as those previously approved by City
Council. It provides for a term of one year from its effective date and a franchise fee of seven
percent(7%) of gross revenues received for service. The term is extended on a month-to-month
basis after the expiration of the initial term. The Agreement also requires the firm to indemnify
the City and provide insurance which names the City of Beaumont as a named insured.
Franchise ordinances require readings at three (3) separate Council meetings, with the third not
less than thirty (30)days from the first reading. The ordinance does not take effect until sixty (60)
days after its adoption on the third and final meeting. After passage, the ordinance must be
published for four (4) consecutive weeks in a newspaper of general circulation in the city. All
publication costs are paid by the successful firm.
Attached is a copy of the franchise agreement for your review.
BUDGETARY IMPACT
A franchise fee of seven percent (7%) of gross receipts is paid into the General Fund.
PREVIOUS ACTION
The first reading of this item took place at the March 22, 2005 council meeting.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and Internal Services Director.
('Vlwurcnl.adh4uVH 'My—Wt�ORA--AG—KIN—W—F Nem An —mod
ENTITLED AN ORDINANCE GRANTING A
FRANCHISE FOR SOLID WASTE
COLLECTION AND TRANSPORTATION
SERVICES TO ARROW WASTE , INC.
ORDINANCE NO. 05-
WHEREAS,ARROW WASTE,INC. (the"Company")has requested a franchise to operate
a solid waste collection and transportation service within the City of Beaumont, Texas(the"City");
and,
WHEREAS, the City desires to grant such franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
Grant of Authority
There is hereby granted by the City to Arrow Waste, Inc. the right and privilege to operate
and maintain within the City a solid waste collection and transportation service(the"service"). For
purposes of this franchise, the term "solid waste collection and transportation service" shall mean
the regular business of collection, hauling or transporting any garbage, rubbish, waste or refuse
from locations in the City, and the disposal of such material in accordance with law. The franchise
granted herein is nonexclusive, and franchises may be granted to other persons for service.
Section 2.
Term of Franchise
The franchise herein granted shall take effect and be in force sixty(60)days after the final
passage hereof as required by law and upon the filing by the Company of an acceptance with the
City Clerk, and shall continue in force and effect until one (1) year thereafter. The acceptance
required hereunder must be in writing and filed with the City Clerk within thirty (30)days after final
- 1 -
passage hereof. Upon the expiration of the term hereof, this franchise shall continue on a month-
to-month basis until terminated by either party or extended or replaced.
Section 3.
Rates
The Company shall establish rates for service which are uniform as to customer class based
upon such criteria as type of waste, container size, frequency of collection, and distance of travel.
The Company shall file its initial rates for service with its acceptance as required herein. Such rates
shall, unless modified by the City, be effective with the effective date of this franchise. Any
modifications in rates by the Company shall first be filed with the City Clerk and City Attorney and
shall be effective thirty (30) days after such filing unless modified by City as provided herein.
Nothing herein shall prevent the Company from charging uniform rates which are less than the rates
filed with the City. The City shall have the right to establish rates charged by Company for services
performed hereunder, after notice and hearing. Rates established by the City shall be sufficient to
allow the Company an opportunity to earn a reasonable return on its invested capital used in
providing such services.
Section 4.
Franchise Fee
The Company shall pay to the City, on or before the fifteenth (15th) day of each month, a
sum equal to SEVEN PERCENT (7%) of the gross revenues received for service in the previous
month as payment for the use of the City's streets, alleys and rights-of-way. The payments herein
provided do not relieve Company from the payment of ad valorem taxes, special assessments,
charges, or other fees applicable to the public generally. City shall have the right, at any
reasonable time, to audit the books and records of the Company and the Company is hereby
required to make such books and records available at the request of City. Upon written
acceptance,the Company shall furnish to the City a listing of customers served,including customer
- 2 -
name,address,frequency of pick-up,size of container or type of service and charge for same. The
following reports shall be filed monthly with the City Manager or his designee along with the street
rental payment required herein:
1. Upon written request and within thirty (30) days of receipt, the
Company shall furnish to the City adequate reconciliation of reported
revenues which would include: a listing of names and addresses of
all customers served,frequency of pick-up, size of container or type
of service and charge for same, and date service was initiated and
discontinued.
Section 5.
Indemnity, Insurance and Bond
The Company shall at all times during the effective period of this franchise, carry
liability insurance as provided herein. The Company covenants and agrees at all times to
indemnify and save harmless the City, its officers, agents, employees, and any member of
the public against any and all injuries, damages, claims, causes of action or loss of
compensation arising or resulting from Company's operations under this franchise,whether
or not such loss was caused by the negligence of the City, its agents, servants or
employees. Upon notice given Company by City,Company must defend at its own expense,
any action or suit brought against the City because of any work or other acts done by the
Company under the terms of this franchise. Counsel chosen by Company to defend City
must be satisfactory to City. Company will pay any final judgment which might be obtained
against City by reason of any work or acts done hereunder by Company,its agents,servants
or employees, and Company will pay all damages occurring to any person or property,
public or private, resulting from any fault or neglect on its part or on the part of its agents
- 3 -
or employees.
The Company agrees to carry insurance as follows:
1) Workers' Compensation
The Company shall furnish the City Clerk a certificate of insurance
indicating workers'compensation coverage as required by the State
of Texas.
2) Automobile Liability Insurance
The Company shall carry, in its own name, a policy in
comprehensive form to insure the automobile liability of its operation
with limits of not less than Five Hundred Thousand Dollars
($500,000.00) per occurrence for bodily injury and, in addition, not
less than One Hundred Thousand Dollars ($100,000.00) property
damage. This policy shall name City as an additional insured and
provide for thirty (30) days notice to City prior to cancellation. A
certificate of insurance certifying such coverage shall be filed with
the City Clerk before the effective date of this franchise, and it shall
be maintained in force during the term of the franchise.
3) General Liability
The Company shall carry, in its own name, a comprehensive liability
insurance policy including contractual coverage for operations other
than automobile with limits of not less than Five Hundred Thousand
Dollars ($500,000.00) per occurrence for bodily injury, and One
Hundred Thousand Dollars($100,00.00)per occurrence for property
damage. The policy shall name the City as named insured and
provide for thirty (30) days notice to City prior to cancellation. A
certificate of insurance certifying such coverage shall be filed with
-4 -
the City Clerk before the effective date of this franchise and
maintained in force during the term of the franchise.
Section 6.
Compliance with Laws and Ordinances
The Company shall, at all times during the term of this franchise, be subject to all lawful
exercise of police power by the City and to such reasonable regulations as the City shall hereafter
by ordinance provide. In addition,the Company will observe all city,county,state,and federal laws
regulating the collection and disposal of solid waste.
Section 7.
Service Standard and Equipment
The Company shall maintain and operate its collection system and equipment in good order
to render efficient service subject to the terms of this franchise. All vehicles, containers, and
equipment used for the collection and transportation of solid waste shall be constructed, operated
and maintained to prevent loss of liquid or solid waste material and to minimize health and safety
hazards to solid waste management personnel and the public. Such vehicles, containers, and
equipment used shall be maintained in a clean, sanitary condition and free from odors at all times.
All vehicles and equipment shall comply with federal, state, and local regulations. Collection
vehicles and all bulk, commercial, and roll-off type containers shall be painted and numbered and
shall have the Company's name and telephone number painted in letters of a contrasting color.
Such containers may not be placed on any street or right-of-way within the City. All collections shall
be made directly from the premises of the customer and any emptied containers returned directly
to such premises.
Section 8.
Providing Services
The Company shall provide service to any person, firm, corporation, association or entity
inside the City of Beaumont who requests such service and is not delinquent in the payment of
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collection charges due the Company.
Section 9.
Office
The Company shall establish and maintain an office with telephone service and shall keep
said office open for business from 9:00 A.M. to 5:00 P.M. each and every day except Saturday,
Sunday and holidays.
Section 10.
Interruption of Service
In the event that service shall be interrupted for any reason for more than forty-eight (48)
hours,the City shall have the right to make temporary independent arrangements for the purposes
of continuing this necessary service to its residents in order to provide or protect the public health
and safety. If the interruption in service mentioned herein continues for a period of seventy-two(72)
hours, then the City shall have the right to terminate the rights and privileges granted in this
franchise.
Section 11.
Termination
In the event that any provision of this franchise is violated by the Company, the City may
serve written notice upon the Company of its intention to terminate this franchise. The notice shall
contain the reasons for such intention to terminate the franchise. Unless within ten (10)days after
mailing such notice by City to the Company, such violation shall cease, or satisfactorily
arrangements for correction be made by Company, the City Council may, after a public hearing in
which Company is provided an opportunity to present evidence concerning such violation, declare
the franchise terminated and serve written notice upon the Company of the termination and the
termination of the franchise shall be effective upon the mailing of such notice.
Section 12.
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Transfer of Franchise Rights
Franchise rights granted hereunder shall not be transferred to another without the
approval of City. A single transfer or a series of transfers of Company's stock which constitute a
transfer of a majority interest in Company is subject to the prior approval of City.
Section 13.
Notices
Where written notices are provided for in this ordinance, same shall be sufficient to notify
Company when provided by certified mail to:
Arrow Waste, Inc.
P. O. Box 30210
Houston, TX 77249
Notice to City is sufficient if mailed by certified mail to:
City Manager
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704
Section 14.
If any section, sentence, clause, paragraph or phrase of this ordinance, other than
Section 4, is for any reason held to be invalid or illegal, such invalidity shall not effect the
remaining portions of this ordinance. If Section 4 hereof is held to be invalid for any reason, the
ordinance shall be immediately invalid.
Section 15.
It is agreed by City and Company that venue of any legal proceedings under this
franchise agreement shall be in Jefferson County, Texas.
Section 16.
Vehicle Permits
Twenty (20) days prior to the effective date of this franchise, the Company shall furnish
to the City a list of all vehicles to be providing solid waste collection and disposal service under
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this franchise. Such list shall include state license number, year, make, model and
manufacturer's rated capacity for each vehicle. Vehicles not having a valid City of Beaumont
landfill permit will not be allowed to operate under this agreement nor utilize the City refuse
disposal facility. If at any time a vehicle or equipment is found to be in noncompliance with
Section 7 of this franchise, the Company will be notified of its violation and said equipment or
vehicle shall be removed from service upon receipt of written notification.
Failure to comply with this provision or to falsify the information concerning the location
of the service of the vehicle shall be a material breach of this franchise. Should City decide not
to terminate this franchise because of any violation of this Section, Company's disposal fee at
City's landfill shall be doubled for all of Company's vehicles for a period of sixty (60)days.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the
day of , 2005.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the
day of , 2005.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the
day of , 2005.
Mayor, City of Beaumont
Evelyn M. Lord
ACCEPTANCE:
ARROW WASTE, INC.
By:
Calvin W. Bates, General Manager
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7
March 29, 2005
Consider approving a new solid waste collection and transportation service franchise to Triangle
Waste Solutions, LLC
07M P1
City of Beaumont
Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Kirby Richard, Internal Services Director
MEETING DATE: March 29, 2005
AGENDA MEMO DATE: March 24, 2005
REQUESTED ACTION: Council consider granting a new solid waste collection and
transportation service franchise.
RECOMMENDATION
Administration recommends granting a solid waste collection and transportation service franchise
to Triangle Waste Solutions, LLC.
BACKGROUND
According to City ordinances, a franchise agreement is required prior to a firm conducting
business within the City limits. Five (5) firms currently have nonexclusive franchise agreements
with the City and are doing business in this area. One of those firms, American Waste Services,
LTD, sold their solid waste collection division to Triangle Waste, effective January 14, 2005.
Triangle Waste Solutions has requested that the City grant the company a franchise agreement for
collection, hauling and transportation garbage or refuse from locations in the City, and the
disposal of such material in accordance with applicable laws.
Triangle Waste Solutions was formed in October 2003 by a private investor. Even though it is
a relatively new company, the entire employee base was generated from other companies in the
same line of work in our community. As a result, the company proudly boasts employee veterans
in the industry with over 60 years of "on the job" experience. In addition, the company's
equipment is all new and of the latest technology.
Corporate headquarters for Triangle Waste is located in Nederland, Texas. Twenty percent(20%)
of the company is minority owned, and the company has a 40% minority employee base. Initially
the company will operate one truck and at least two employees in the area, and anticipates
Solid Waste Transportation and Collection Services
Triangle Waste Franchise Agreement
March 29, 2005
Page 2
increasing its client base to require additional trucks and employees in the future.
The requested franchise agreement is generally the same as those previously approved by City
Council. It provides for a term of one year from its effective date and a franchise fee of seven
percent(7%) of gross revenues received for service. The term is extended on a month-to-month
basis after the expiration of the initial term. The Agreement also requires the firm to indemnify
the City and provide insurance which names the City of Beaumont as a named insured.
Franchise ordinances require readings at three (3) separate Council meetings, with the third not
less than thirty (30)days from the first reading. The ordinance does not take effect until sixty(60)
days after its adoption on the third and final meeting. After passage, the ordinance must be
published for four (4) consecutive weeks in a newspaper of general circulation in the city. All
publication costs are paid by the successful firm.
Attached is a copy of the franchise agreement for your review.
BUDGETARY IMPACT
A franchise fee of seven percent (7%) of gross receipts is paid into the General Fund.
PREVIOUS ACTION
The first reading of this item took place at the March 22, 2005 council meeting.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Public Works Director and Internal Services Director.
(,'f�"Smi^Pwra* Wy�IWW%%YUpmnn.VYA4(1IISt A(AMNT,Tn k _23 — TvkWx d
ENTITLED AN ORDINANCE GRANTING A
FRANCHISE FOR SOLID WASTE
COLLECTION AND TRANSPORTATION
SERVICES TO TRIANGLE WASTE SOLUTIONS, LLC
ORDINANCE NO. 05-
WHEREAS, TRIANGLE WASTE SOLUTIONS, LLC (the "Company") has requested a
franchise to operate a solid waste collection and transportation service within the City of Beaumont,
Texas (the "City"); and,
WHEREAS, the City desires to grant such franchise;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
Section 1.
Grant of Authority
There is hereby granted by the City to Triangle Waste Solutions, LLC the right and privilege
to operate and maintain within the City a solid waste collection and transportation service (the
"service"). For purposes of this franchise, the term "solid waste collection and transportation
service"shall mean the regular business of collection,hauling ortransporting any garbage,rubbish,
waste or refuse from locations in the City,and the disposal of such material in accordance with law.
The franchise granted herein is nonexclusive, and franchises may be granted to other persons for
service.
Section 2.
Term of Franchise
The franchise herein granted shall take effect and be in force sixty (60)days after the final
passage hereof as required by law and upon the filing by the Company of an acceptance with the
City Clerk, and shall continue in force and effect until one (1) year thereafter. The acceptance
- 1 -
required hereunder must be in writing and filed with the City Clerk within thirty(30)days after final
passage hereof. Upon the expiration of the term hereof, this franchise shall continue on a month-
to-month basis until terminated by either party or extended or replaced.
Section 3.
Rates
The Company shall establish rates for service which are uniform as to customer class based
upon such criteria as type of waste, container size, frequency of collection, and distance of travel.
The Company shall file its initial rates for service with its acceptance as required herein. Such rates
shall, unless modified by the City, be effective with the effective date of this franchise. Any
modifications in rates by the Company shall first be filed with the City Clerk and City Attorney and
shall be effective thirty (30) days after such filing unless modified by City as provided herein.
Nothing herein shall prevent the Company from charging uniform rates which are less than the rates
filed with the City. The City shall have the right to establish rates charged by Company for services
performed hereunder, after notice and hearing. Rates established by the City shall be sufficient to
allow the Company an opportunity to earn a reasonable return on its invested capital used in
providing such services.
Section 4.
Franchise Fee
The Company shall pay to the City, on or before the fifteenth (15th) day of each month, a
sum equal to SEVEN PERCENT (7%) of the gross revenues received for service in the previous
month as payment for the use of the City's streets, alleys and rights-of-way. The payments herein
provided do not relieve Company from the payment of ad valorem taxes, special assessments,
charges, or other fees applicable to the public generally. City shall have the right, at any
reasonable time, to audit the books and records of the Company and the Company is hereby
required to make such books and records available at the request of City. Upon written
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acceptance,the Company shall furnish to the City a listing of customers served,including customer
name,address,frequency of pick-up,size of container or type of service and charge for same. The
following reports shall be filed monthly with the City Manager or his designee along with the street
rental payment required herein:
1. Upon written request and within thirty (30) days of receipt, the
Company shall furnish to the City adequate reconciliation of reported
revenues which would include: a listing of names and addresses of
all customers served,frequency of pick-up, size of container or type
of service and charge for same, and date service was initiated and
discontinued.
Section 5.
Indemnity, Insurance and Bond
The Company shall at all times during the effective period of this franchise, carry
liability insurance as provided herein. The Company covenants and agrees at all times to
indemnify and save harmless the City, its officers, agents, employees, and any member of
the public against any and all injuries, damages, claims, causes of action or loss of
compensation arising or resulting from Company's operations under this franchise,whether
or not such loss was caused by the negligence of the City, its agents, servants or
employees. Upon notice given Company by City,Company must defend at its own expense,
any action or suit brought against the City because of any work or other acts done by the
Company under the terms of this franchise. Counsel chosen by Company to defend City
must be satisfactory to City. Company will pay any final judgment which might be obtained
against City by reason of any work or acts done hereunder by Company,its agents,servants
or employees, and Company will pay all damages occurring to any person or property,
- 3 -
public or private, resulting from any fault or neglect on its part or on the part of its agents
or employees.
The Company agrees to carry insurance as follows:
1) Workers' Compensation
The Company shall furnish the City Clerk a certificate of insurance
indicating workers'compensation coverage as required by the State
of Texas.
2) Automobile Liability Insurance
The Company shall carry, in its own name, a policy in
comprehensive form to insure the automobile liability of its operation
with limits of not less than Five Hundred Thousand Dollars
($500,000.00) per occurrence for bodily injury and, in addition, not
less than One Hundred Thousand Dollars ($100,000.00) property
damage. This policy shall name City as an additional insured and
provide for thirty (30) days notice to City prior to cancellation. A
certificate of insurance certifying such coverage shall be filed with
the City Clerk before the effective date of this franchise, and it shall
be maintained in force during the term of the franchise.
3) General Liability
The Company shall carry, in its own name, a comprehensive liability
insurance policy including contractual coverage for operations other
than automobile with limits of not less than Five Hundred Thousand
Dollars ($500,000.00) per occurrence for bodily injury, and One
Hundred Thousand Dollars($100,00.00)per occurrence for property
damage. The policy shall name the City as named insured and
provide for thirty (30) days notice to City prior to cancellation. A
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certificate of insurance certifying such coverage shall be filed with
the City Clerk before the effective date of this franchise and
maintained in force during the term of the franchise.
Section 6.
Compliance with Laws and Ordinances
The Company shall, at all times during the term of this franchise, be subject to all lawful
exercise of police power by the City and to such reasonable regulations as the City shall hereafter
by ordinance provide. In addition,the Company will observe all city,county,state,and federal laws
regulating the collection and disposal of solid waste.
Section 7.
Service Standard and Equipment
The Company shall maintain and operate its collection system and equipment in good order
to render efficient service subject to the terms of this franchise. All vehicles, containers, and
equipment used for the collection and transportation of solid waste shall be constructed, operated
and maintained to prevent loss of liquid or solid waste material and to minimize health and safety
hazards to solid waste management personnel and the public. Such vehicles, containers, and
equipment used shall be maintained in a clean, sanitary condition and free from odors at all times.
All vehicles and equipment shall comply with federal, state, and local regulations. Collection
vehicles and all bulk, commercial, and roll-off type containers shall be painted and numbered and
shall have the Company's name and telephone number painted in letters of a contrasting color.
Such containers may not be placed on any street or right-of-way within the City. All collections shall
be made directly from the premises of the customer and any emptied containers returned directly
to such premises.
Section 8.
Providing Services
The Company shall provide service to any person, firm, corporation, association or entity
- 5 -
inside the City of Beaumont who requests such service and is not delinquent in the payment of
collection charges due the Company.
Section 9.
Office
The Company shall establish and maintain an office with telephone service and shall keep
said office open for business from 9:00 A.M. to 5:00 P.M. each and every day except Saturday,
Sunday and holidays.
Section 10.
Interruption of Service
In the event that service shall be interrupted for any reason for more than forty-eight (48)
hours,the City shall have the right to make temporary independent arrangements for the purposes
of continuing this necessary service to its residents in order to provide or protect the public health
and safety. If the interruption in service mentioned herein continues fora period of seventy-two(72)
hours, then the City shall have the right to terminate the rights and privileges granted in this
franchise.
Section 11.
Termination
In the event that any provision of this franchise is violated by the Company, the City may
serve written notice upon the Company of its intention to terminate this franchise. The notice shall
contain the reasons for such intention to terminate the franchise. Unless within ten (10)days after
mailing such notice by City to the Company, such violation shall cease, or satisfactorily
arrangements for correction be made by Company, the City Council may, after a public hearing in
which Company is provided an opportunity to present evidence concerning such violation, declare
the franchise terminated and serve written notice upon the Company of the termination and the
termination of the franchise shall be effective upon the mailing of such notice.
- 6 -
Section 12.
Transfer of Franchise Rights
Franchise rights granted hereunder shall not be transferred to another without the
approval of City. A single transfer or a series of transfers of Company's stock which constitute a
transfer of a majority interest in Company is subject to the prior approval of City.
Section 13.
Notices
Where written notices are provided for in this ordinance, same shall be sufficient to notify
Company when provided by certified mail to:
Triangle Waste Solutions, LLC
P. O. Box 1714
Nederland, TX 77627
Notice to City is sufficient if mailed by certified mail to:
City Manager
City of Beaumont
P.O. Box 3827
Beaumont, TX 77704
Section 14.
If any section, sentence, clause, paragraph or phrase of this ordinance, other than
Section 4, is for any reason held to be invalid or illegal, such invalidity shall not effect the
remaining portions of this ordinance. If Section 4 hereof is held to be invalid for any reason, the
ordinance shall be immediately invalid.
Section 15.
It is agreed by City and Company that venue of any legal proceedings under this
franchise agreement shall be in Jefferson County, Texas.
Section 16.
Vehicle Permits
Twenty (20) days prior to the effective date of this franchise, the Company shall furnish
- 7 -
to the City a list of all vehicles to be providing solid waste collection and disposal service under
this franchise. Such list shall include state license number, year, make, model and
manufacturer's rated capacity for each vehicle. Vehicles not having a valid City of Beaumont
landfill permit will not be allowed to operate under this agreement nor utilize the City refuse
disposal facility. If at any time a vehicle or equipment is found to be in noncompliance with
Section 7 of this franchise, the Company will be notified of its violation and said equipment or
vehicle shall be removed from service upon receipt of written notification.
Failure to comply with this provision or to falsify the information concerning the location
of the service of the vehicle shall be a material breach of this franchise. Should City decide not
to terminate this franchise because of any violation of this Section, Company's disposal fee at
City's landfill shall be doubled for all of Company's vehicles for a period of sixty (60) days.
PASSED BY THE CITY COUNCIL of the City of Beaumont on first reading this the
day of , 2005.
PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the
day of , 2005.
PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the
day of , 2005.
Mayor, City of Beaumont
Evelyn M. Lord
ACCEPTANCE:
TRIANGLE WASTE SOLUTIONS, LLC
By:
Greg Gabriele, Vice President
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