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HomeMy WebLinkAboutPACKET DEC 05 2017BEAUMONT TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 5, 2017 1:30 P.M. CONSENT AGENDA Approval of minutes — November 21, 2017 Confirmation of board and commission member appointments A. Approve a contract with Tri -Con Inc., of Beaumont, to provide lubricants for use in City vehicles and equipment B. Approve a contract with McGriff, Seibels & Williams of Texas Inc., of San Antonio for workers' compensation excess insurance C. Approve a one year contract with the Greater Beaumont Chamber of Commerce D. Approve the purchase of Supervisory Control and Data Acquisition (SCADA) Human Machine Interface (HMI) software for use in the Water Department E. Authorize the Chief Financial Officer to execute all documents necessary to accept funding from the Texas Department of State Health Services related to Tuberculosis Prevention and Control 0 BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution approving a contract with Tri -Con Inc., of Beaumont, to provide lubricants for use in City vehicles and equipment. BACKGROUND Bids were solicited for a six (6) month contract to supply approximately 15,960 gallons of various lubricants at fixed costs for use by various City departments in maintaining vehicles and equipment. Specifications allow for a six (6) month extension upon expiration of the original term at the same pricing as awarded herein. Tri -Con Inc., submitted a raw bid of $109,378.20, which was not the lowest bid. However, they also submitted valid paper work for Local Vendor Preference. Applying the formula, this resulted in a local preference corrected bid of $104,036.33. Tri -Con, Inc., has successfully held this contract for more than four (4) years. The raw bid represents approximately a thirteen percent (13%) increase over current contract rates. Bids were requested from six (6) vendors with three (3) responses. Bid tab is attached. FUNDING SOURCE Fleet Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO. WHEREAS, bids were solicited for a six (6) month contract, with an option to renew for a period of six (6) months, for the purchase of lubricants for use by various City departments in maintaining vehicles and equipment; and, WHEREAS, Tri -Con, Inc., of Beaumont, Texas, submitted a qualified bid in the unit amounts shown on Exhibit "A," attached hereto, for an estimated total expenditure of $104,036.33; and, WHEREAS, City Council is of the opinion that the bid submitted by Tri -Con, Inc., of Beaumont, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Tri -Con, Inc., of Beaumont, Texas, for a six (6) month contract, with an option to renew for a period of six (6) months, for the purchase of lubricants for use by various City departments in maintaining vehicles and equipment for an estimated amount of $104,036.33 be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Tri -Con, Inc., of Beaumont, Texas, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - BEAUMONT TEXAS CITY OF BEAUMONT, BEAUMONT, TEXAS PURCHASING DIVISION BID TABULATION Bid Name: SIX (6) MONTH CONTRACT FOR AUTOMOTIVE LUBRICANTS Bid Number: MF1018-02 Bid Opening: Thursday, November 16, 2017 Contact Person: Christy Williams, Buyer 11 chdsty.williams(a)beaumonftexas.gov Phone: 409-880-3758 Vendor City I State Phone No. TRI -CON, INC. BEAUMONT 409835-2237 APACHE OIL HOUSTON 28114875400 SUN COAST RESOURCES, INC. HOUSTON 713429-6702 APPROX CITY DESCRIPTION Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price ENGINE,OIL-,, 3,200 GAL Engine Oil 15W-40 (BULK DELIVERIES >250 GALLONS) $ 6.52 $20,860.80 $ 6.78 $21,696.00 $ 6.65 $21,280.00 3,200 GAL Engine oil, SYNTHETIC BLEND, 15W-40 (BULK DELIVERIES >250 GALLONS) $ 7.15 $22,880.00 S 7.67 $24,544.00 $ 6.85 $21,920.00 1,000 GAL Engine Oil 1 Sw-40 (55 gal drums) $ 6.99 $6,990.00 S 7.04 $7,040.00 $ 7.75 $7,750.00 1,000 GAL Engine oil, SYNTHETIC BLEND, 15W-40 $ 7.25 $7,250.00 $ 8.03 $8,030.00 $ 7.75L $7,750.00 MANUFACTURER AND BRAND BID for Items 1 and 2 above TOTAL FleetSupreme EC 15W40 Warren Distributing, Mag I MANUFACTURER AND BRAND BID for Items I a and 2a above TOTAL Guardol ECT 15W40 DID NOT SPECIFY 110 GAL TEngine Oil SAE 40 (55 gal drums) $ 4.49 1 5493.90 S 8.14 1 $895.40 S 8.03 1 5883.30 MANUFACTURER AND BRAND BID: TOTAL T5X HD 40 PHILLIPS TSX - -OIL, TRANSMISSION SM1&IbN.,FUJ'1b'/,Hi�bRAUL1C 1,300 QT Dexron III (quart containers) S 2.11 $2,743.00 $ 2.35 $3,055.00 $ 1.68 $2,184.00 250 GAL Dexron III (bulk deliveries >250 gal) $ 4.51 S1,127.50 $ 7.53 $1,882.50 S 7.57 $1,892.50 100 GAL Decron 111 (55 gal drums) $ 6.03 $603.00 S 7.99 $799.00 S 8.67 $867.00 MANUFACTURER AND BRAND BID: TOTAL KENDALL CLASSIC ATF Warren Distributing, Mag I 100 QT TMercon 5 (quart containers) $ 3.16 1 $316.00 $ 2.87 1 $287.00 S 3.40 1 $340.00 MANUFACTURER AND BRAND BID: TOTAL VERSATRAN ATF Warren Distributing, Mag I 4,700 GAL Multi-purpose Transmission/Hydraulic Oil (bulk deliveries >250 gal) $ 6.79 $31,913.00 7.64 $35,908.00 $ 5.49 425,803.00 500 GAL Multi-purpose Transmission/ Hydraulic Oil (55 gal drums) $ 7.42 $3,710.00 $ 8.00 54,000.00 $ 6.59 $3,295.00 MANUFACTURER AND BRAND BID: TOTAL PowerTran Fluid Warren Distributing, Mag I 500 GAL Caterpillar TO -4 Compatible Lubricants, SAE 10W (bulk deliveries > 259 gallons) S 5.75 $2,875.00 S 8.50 44,250.00 S 7.95 $3,975.00 500 GAL Caterpillar TO -4 Compatible Lubricants, SAE 50 (bulk deliveries >250 gallons) $ 7.29 $3,645.00 $ 9.00 $4,500.00 $ 7.95 $3,975.00 275 GAL Caterpillar TO -4 Compatible Lubricants, SAE 10W (55 gal. drum) $ 6.69 $1,839.75 $ 8.86 52,436.50 S 8.95 $2,461.25 275 GAL Caterpillar TO -4 Compatible Lubricants, SAE 50 (55 gal. drum) $ 7.75 $2,131.25 S 9.36 $2,574.00 $ 8.95 1S2,461.25 MANUFACTURER AND BRAND BID: TOTAL PowerDrive Fluid Warren Distributing, Mag I ,0tPOSfT.cffA$0.00 $0.00?..50:00'T TOTAL BID $109,378.20 $121,897.40 15% Price Differential allowed for local vendors ($5,341.87) l Adjusted total bid $1104,036.33 Recommend awarding to Trl-Con, Inc., of Beaumont under Local Government Code 271.9051 which allows a 5% price differential to locally owned businesses. Total allowance is $5,341.87 above low dollar bid. No Response: Matrix Lubricants, Thomas Petroleum, LTD., Spidle & Spidle EXHIBIT "A" Lw� BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer�4 MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution approving the award of a contract for workers' compensation excess insurance to McGriff, Seibels & Williams of Texas Inc., of San Antonio. BACKGROUND The City is self-insured for its workers' compensation program. The excess insurance coverage limits the City's liability for claims from anyone job-related accident or injury. The city's liability is called Self Insured Retention (SIR), which means the insurance carrier will cover all cost incurred on any individual claim of more than $1,000,000 up to any amount authorized by statute. Our current policy is with McGriff, Seibels & Williams of Texas, Inc. The annual premium for the calendar year 2017 was $104,910. Approximately 1293 full-time employees and more than 150 part-time, temporary and/or casual employees are covered by workers' compensation. A Request for Proposal was sent to seventeen (17) vendors. Two (2) responses were received. A panel of City employees reviewed the responses. The recommendation of the panel was McGriff, Seibels & Williams of Texas, Inc., who represents Colony Insurance of San Antonio. Colony Insurance has a Best Rating of A. All specifications were met and the results are attached for review. The policy is for one (1) year. There is an option to renew for one (1) additional year. Based on the 2018 projected payroll of $75,741,000, the annual premium is $103,950. FUNDING SOURCE Employee Benefits Fund. RECOMMENDATION Approval of resolution. Criteria Scoring Sheet RFP Number: PF1018-03 RFP Opening Date: November 16, 2017 RFP Name: Workers Compensation Excess Insurance Criteria Max Points McGriff TMLI Requirements of Proposal 20 20 20 Ability to provide quotes for additional years 15 15 0 Financial Stability 10 10 10 Experience 10 10 10 Company History 10 10 10 Cost 35 32.50 22.50 Total 100 97.50 72.50 RESOLUTION NO. WHEREAS, Requests for Proposals were received for a policy for excess workers' compensation insurance; and, WHEREAS, McGriff, Seibels and Williams of Texas, Inc., of San Antonio, Texas, representing Colony Insurance, submitted a response as follows: ; and, $103,950.00 Annual rate based on the 2018 projected payroll of $75,741,000 WHEREAS, City Council is of the opinion that the response submitted by McGriff, Seibels and Williams of Texas, Inc., of San Antonio, Texas, representing Colony Insurance, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the response submitted by McGriff, Seibels and Williams of Texas, Inc., of San Antonio, Texas, representing Colony Insurance, for a policy for excess workers' compensation insurance in the amount of $103,950.00 be accepted by the City of Beaumont. The policy is effective January 1, 2018 with an option to renew for one (1) additional year; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Colony Insurance, of San Antonio, Texas, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - c BEAUMONT TEXAS TO: FROM: PREPARED BY: MEETING DATE: REQUESTED ACTION: BACKGROUND City Council Kyle Hayes, City Manager Todd Simoneaux, Chief Financial Officer --�/ December 5, 2017 Council consider a resolution authorizing a one year contract with the Greater Beaumont Chamber of Commerce. A one year contract with the Chamber of Commerce will provide funding in the amount of $ 85,000 to be used for marketing Beaumont and business retention/recruitment efforts. The contract will cover the period from January 1, 2018 through December 31, 2018 and is for the same amount that was provided in the previous contract. A copy of the contract is attached. FUNDING SOURCE General Fund. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute a one (1) year contract with the Greater Beaumont Chamber of Commerce in the amount of $85,000 for economic development purposes effective January 1, 2018 through December 31, 2018. The contract is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - STATE OF TEXAS § COUNTY OF JEFFERSON § This agreement, executed in duplicate, is made and entered into by and between the City of Beaumont, Texas, a municipal corporation of the State of Texas, hereinafter called "City", acting herein by and through its duly authorized City Manager, and the Greater Beaumont Chamber of Commerce, a non-profit corporation, hereinafter called "Chamber", acting herein by and through its President. WHEREAS, the City believes that economic development is crucial to the continued economic success of City and believes that Chamber should be retained to carry out a program of work on behalf of City for the economic development of City; NOW, THEREFORE, in consideration of the mutual promises made herein, the City and the Chamber agree as follows: 1. City does hereby employ, engage and hire Chamber to engage in a comprehensive range of activities and projects to create jobs in Beaumont directed at economic development. The Chamber does hereby agree to accept such hiring, engagement and employment and to discharge such duties in accordance with the terms and conditions herein set forth. 2. Chamber is hired as an independent contractor and is not an agent of the City. EXHIBIT "A" 0 Chamber agrees to engage in a comprehensive range of activities and projects to create jobs in Beaumont. Chamber's program will be directed toward four separate aspects of job growth:. a) retaining existing jobs; b) creating new businesses; c) expanding existing businesses; and, d) attracting new employers. To achieve these goals, the Chamber will maintain a capable paid staff with necessary expertise; recruit and organize volunteer workers from the community; maintain contacts and relationships with primary economic development allies of both public and private offices; gather and publish necessary information and statistics for prospects; maintain and build relationships with management of existing businesses; and promote any other specific activities or projects which will contribute to an environment conducive to job growth. 4. City hereby agrees to pay to Chamber during the term of this agreement Eighty - Five Thousand Dollars ($85,000). Payments of Twenty -One Thousand Two -Hundred Fifty Dollars ($21,250) will be made upon receipt of invoice dated in January of 2018, April 1, 2018, July 1, 2018 and October 1, 2018. Chamber agrees to expend in excess of One- Hundred -Thousand Dollars ($100,000) in other Chamber funds for the purposes outlined in paragraph 3 hereof. 5. In conjunction with its annual audit, Chamber agrees to audit, on a review basis, the functional areas outlined in this agreement. Chamber agrees to provide City a copy of the report done by Chamber's certified public accountants on an annual basis. 2018. A The term of this agreement shall be from January 1, 2018 until December 31, 7. Chamber agrees to indemnify, save harmless, and defend the City of Beaumont from any and all claims, causes of action and damages of.every kind arising from the operations of the Chamber, its officers, agents and employees, including the officers, agents and employees involved in economic development and specifically including herein any and all acts of negligence by the City of Beaumont, its agents, officers or employees, carried out under the terms of this agreement. Chamber shall carry, or cause to be carried, general public liability and automobile liability insurance on all operations embraced by this agreement in the amount of Five -Hundred Thousand Dollars ($500,000) for each occurrence and property damage liability insurance in the amount of Twenty -Five Thousand Dollars ($25,000) for each occurrence. Said liability policies shall include contractual liability coverage in the same amounts as stated herein. Said insurance policies shall name the City of Beaumont as an additional insured. Said policies or duplicate originals thereof shall be filed with the City Clerk, or her designated representative, before any operations contemplated by this agreement are begun. EXECUTED in duplicate originals this the day of 2017. CITY OF BEAUMONT Kyle Hayes City Manager ATTEST: City Clerk GREATER BEAUMONT CHAMBER OF COMMERCE Chairman of the Board ATTEST: in Name: Title: Eq BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer 2 MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution approving the purchase of Supervisory Control and Data Acquisition (SCADA) Human Machine Interface (HMI) software for use in the Water Department. BACKGROUND SCADA HMI software allows monitoring, recording and controlling of all water treatment facilities and various wastewater locations. The software generates daily reports used for operations and data used in the Texas Commission on Environmental Quality (TCEQ) monthly reports. The current SCADA software was originally installed in 1992, is outdated due to enhanced technology and programming features and cannot be upgraded but rather must be replaced. Requests for proposal were solicited from eight (8) vendors. One response was received from Champion Technology Services of Lake Charles, Louisiana. City staff evaluated the response and determined the software to meet specifications. The cost of the software is approximately $83,792. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the resolution. Todd Simoneaux From: Barry Miller Sent: Thursday, November 30, 2017 11:24 AM To: Todd Simoneaux Cc: Joe Majdalani Subject: Water Utilities SCADA System Todd, The SCADA system which is used by the Water Utilities department was originally installed around 1991 or 1992. This original system was used to control and monitor the Prison Water System only. Now our SCADA system controls and monitors all drinking water treatment equipment and much of the wastewater/collection system equipment. The TCEQ monthly operational reports are generated using the data collected by the SCADA system. Efficient Water Plant Operations requires a modern SCADA System. The SCADA system consist of field devices such as analyzers, switches, pressure transmitters, level transmitters, etc. PLCs (Programmable_ Logic Controllers) which the field devices are directly connected to. Radios and communication devices which bring the data to a central location. At the central location are computers which are connected to the SCADA network. On these computers resides the HMI software. The computers with the HMI software allows the operators to control and monitor the water system. The computers which are running Microsoft XP are faulting several times a month and need to be replaced. The current HMI software is RS View 32 and it needs to be replaced as well. Modern HMI software allows remote connectivity for monitoring from smart phones as well as improved alarm capability and data base type of historical recording. If you have any questions please let me know. Thank you Barry W. Miller Water Production Superintendent City of Beaumont 409-880-3785 RESOLUTION NO. WHEREAS, bids were solicited for the purchase of Supervisory Control and Data Acquisition (SCADA) Human Machine Interface (HMI) software for use by the Water Utilities Department; and, WHEREAS, Champion Technology Services, of Lake Charles, Louisiana, submitted a bid in the amount of $83,792.00; WHEREAS, City Council is of the opinion that the bid submitted by Champion Technology Services, of Lake Charles, Louisiana, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Champion Technology Services, of Lake Charles, Louisiana, for the purchase of Supervisory Control and Data Acquisition (SCADA) AND Human Machine Interface (HIM) software in the amount of $83,792.00 for use by the Water Utilities Department be accepted by the City of Beaumont; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Champion Technology Services for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance -with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - E BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Sherry Ulmer, Public Health Director MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution authorizing the Chief Financial Officer to execute all documents necessary to accept funding from the Texas Department of State Health Services (DSHS) related to Tuberculosis Prevention and Control. BACKGROUND The Texas Department of State Health Services has awarded the Beaumont Public Health Department a Tuberculosis Prevention and Control - Federal TB/PC grant in the amount of $31,753.00. This funding will assist the Beaumont Public Health Department with operating a clinical program to prevent and control Tuberculosis. This contract will begin 01/01/2018 and end on 12/31/2018. FUNDING SOURCE There is a 20% match requirement that will be paid for out of the Public Health Department's budget -General Fund. RECOMMENDATION Approval of the resolution. DocuSign Envelope ID: 4BC57BAE-C6AF-4DD4-884E-620E41F9FAE5 SIGNATURE DOCUMENT FOR DEPARTMENT OF STATE HEALTH SERVICES CONTRACT No. HHS000047300001 UNDER THE TUBERCULOSIS PREVENTION AND CONTROL — FEDERAL (TB/PC- FEDERAL) GRANT PROGRAM 1. PURPOSE The Department of State Health Services ("System Agency") and Beaumont Public Health Department ("Grantee") (each a "Party" and collectively the "Parties") enter into the following grant contract to provide funding for the TB/PC-Federal grant program (the "Contract"). II. LEGAL AUTHORITY This Contract is authorized by and in compliance with the provisions of Texas Government Code Chapter 771, Texas Health and Safety Code Chapters 12 and 1001, and Texas Government Code Chapters 531, subchapter D. III. DURATION The Contract is effective on January 1, 2018 and terminates on December 31, 2018, unless renewed or terminated pursuant to the terms and conditions of the Contract. The System Agency, at its own discretion, may extend. this Contract subject to terms and conditions mutually agreeable to both Parties. IV. BUDGET The amount of this Contract is to not exceed THIRTY-ONE THOUSAND SEVEN HUNDRED FII• rY-THREE DOLLARS ($31,753.00) in federal funding with the Grantee providing a total of SIX THOUSAND THREE HUNDRED FIFTY-ONE DOLLARS ($6,351.00) in matching funds, for a combined total of THIRTY-EIGHT THOUSAND ONE HUNDRED FOUR DOLLARS ($38,104.00). All expenditures under the Contract will be in accordance with ATTACHMENT B. BUDGET. V. CONTRACT REPRESENTATIVES The following will act as the Representative authorized to administer activities under this Contract on behalf of their respective Party. System Agency Department of State Health Services Attention: Kathy Sharp 1100 W. 49h Street, MC 1911 System Agency Contract No. HHS000047300001 Page 1 of 2 v. 11.15.2016 DocuSign Envelope ID: 4BC57BAE-C6AF-4DD4-884E-620E41F9FAE5 Austin, Texas 78756 Grantee Beaumont Public Health Department Attention: Todd Simoneaux 950 Washington Blvd. Beaumont, Texas 77705 VI. ADDITIONAL GRANT INFORMATION Federal Award Identification Number (FAIN): U52PS004694 Federal Award Date: December 20, 2016 Name of Federal Awarding Agency: Centers for Disease and Control and Prevention CFDA Name and Number: 93.116 - Tuberculosis Surveillance, Preventions, & Control/Elimination Cooperative Agreement — Prevention & Control Awarding Official Contact Information: Mark Miner, 404-639-8120 DUNS: 073901118 VII. LEGAL NOTICES Any legal notice required under this Contract shall be deemed delivered when deposited by the System Agency either in the United States mail, postage paid, certified, return receipt requested, or with a common carrier, overnight, signature required, to the appropriate address below: System Agency Department of State Health Services Attention: General Counsel 1100 W. 49t` Street, MC 1911 Austin, TX 78756 Grantee Beaumont Public Health Department Attention: Todd Simoneaux 950 Washington Blvd. Beaumont, Texas 77705 Notice given by Grantee will be deemed effective when received by the System Agency. Either Party may change its address for notice by written notice to the other Party. SIGNATURE PAGE FOLLOWS System Agency Contract No. HHS000047300001 Page 2 of 3 v. 02.01.2016 ,AI1E1L.II1VjLrl'l1 Jr - LAlAUbAIiEPLUICEEMENT ATTACHMENT F - NoN-EXCLUSIVE LIST OF APPLICABLE LAWS ATTACHMENT G - FFATA RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager or the Chief Financial Officer be and they are hereby authorized to execute all documents necessary to accept funding from the Texas Department of State Health Services (DSHS) for the TB/PC Tuberculosis Prevention Control Grant in the amount of $31,753.00, effective January 1, 2018, through December 31, 2018, to assist the Beaumont Public Health Department with operating a clinical program to prevent and control tuberculosis. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - 0 BEAUMONT TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 5, 2017 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition — Recognize the EMS Division * Public Comment: Persons may speak on scheduled agenda items 1-3/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider an ordinance granting a franchise for solid waste collection and transportation services to Acadiana Waste Services -TX, LLC 2. Consider a resolution authorizing the City Manager to execute an Earnest Money Contract and other related documents for the sale of city -owned property located at 950 Washington Boulevard 3. Consider a resolution approving annual contracts for the purchase of ready mix concrete and heavy materials with Martin Marietta, Inc. and Knife River, Inc. for use by multiple City departments WORK SESSION * Review and discuss a proposal from the Beaumont Housing Authority to develop an affordable housing complex for seniors on city property located adjacent to the Great Lawn in downtown Beaumont COMMENTS * Public Comment (Persons are limited to 3 minutes) * Councilmembers/City Manager comment on various matters EXECUTIVE SESSION TOUR Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Triad Transportation, Inc. * City Council will take a tour or visit various city owned facilities affected by Hurricane Harvey Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Harbuzi at 880-3777. it December 5, 2017 Consider an ordinance granting a franchise for solid waste collection and transportation services to Acadiana Waste Services -TX, LLC BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider granting a new solid waste transportation service agreement BACKGROUND According to City Ordinance 22.05.101, no person shall engage in the business of collecting, hauling or transporting, in the city, any garbage, waste or refuse, without first having obtained a franchise from the City. Seven (7) entities currently have nonexclusive franchise agreements with the City and are doing business in this area. Acadiana Waste Services -TX, LLC has requested that the City Council grant the company such franchise agreement. Acadiana Waste Services currently serves central and south Louisiana with its corporate office located in Lafayette, Louisiana. They are interested in expanding operations into the Beaumont area. The requested franchise 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. It also requires the entity to indemnify the City of Beaumont and provide insurance which names the City of Beaumont as a named insured. According to City Charter, 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 reading. 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 franchisee. This is the third reading. FUNDING SOURCE A franchise fee of seven percent (7%) of gross receipts will be paid to the City. RECOMMENDATION Approval of resolution. ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR SOLID WASTE COLLECTION AND TRANSPORTATION SERVICES TO ACADIANA WASTE SERVICES -TX, LLC. WHEREAS, Acadiana Waste Services -TX, 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. Grant of Authority There is hereby granted by the City to Acadiana Waste Services -TX, 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 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 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. Ccrrtinn'A 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 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 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 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 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. 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. RPrtinn 1 Notices Where written notices are provided for in this ordinance, same shall be sufficient to notify Company when provided by certified mail to: Acadiana Waste Services -TX, LLC P.O. Box 53426 Lafayette, LA 70505 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 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. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of `Beaumont on first reading this the 31 st day of October, 2017. - Mayor Becky Ames - The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the 7th day of November, 2017. - Mayor Becky Ames — The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the 5th day of December, 2017. - Mayor Becky Ames — ACCEPTANCE: Acadiana Waste Services -TX, LLC 2 December 5, 2017 Consider a resolution authorizing the City Manager to execute an Earnest Money Contract and other related documents for the sale of city -owned property located at 950 Washington Boulevard BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Dr. Joseph Majdalani, P.E., Public Works Director MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute an Earnest Money Contract and other related documents for the sale of city -owned property located at 950 Washington Boulevard. BACKGROUND Wheeler Commercial has secured one (1) potential buyer who is interested in purchasing city -owned property located at 950 Washington Boulevard. After reviewing the Earnest Money Contract, it is in the best interest of the City of Beaumont to execute the Earnest Money Contract with Impact Health Services, PLLC with a cash offer in the amount of $385,000.00. Impact Health Services, PLLC will deposit $5,000.00 as earnest money to Texas Regional Title for a feasibility period of 20 days. If Impact Health Services terminates the earnest money contract, $500.00 of the earnest money will not be refunded to Impact Health Services, PLLC. The date of closing will be forty-five (45) days after the expiration of the feasibility period. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. D&uSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-1CC95868E987 LON TEXAS ASSOCIATION OF REALTORSO COMMERCIAL CONTRACT o IMPROVE® PROPERTY USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS® IS NOT AUTHORIZED. ©Texas Association of REALTORS®, Inc. 2616 1. PARTIES: Seller agrees to sell and convey to Buyer the Property described in Paragraph 2. Buyer agrees to buy the Property from Seller for the sales price stated in Paragraph 3. The parties to this contract are: Seller: City of Beaumont Address: 801 Wain Street, Beaumont, TX 77701 Phone: (409)880-3152 E-mail: antoinette.hardy(&beaumonttexas.gov ^ Fax: Other: Buyer: Impact Health Services, PLLC, a Texas limited liability company Address: 9494 SW Fwy, Ste 450R, Houston, TX 77074 Phone: (832)475-4559 E-mail: chairmantxihp angmail.com Fax: Other: 2. PROPERTY: A. "Property" means that real property situated in Jefferson County, Texas at 950 Washington Boulevard, Beaumont, TX 77701 (address) and that is legally described on the attached Exhibit or as follows: Being all of Lots 8 thru 21, Block 86 of the Cartwright Addition as recorded in Volume 1, Page 137 of the Map Records of Jefferson County, Texas, and Lots 1 thru 7, Block 7 of the Arlington Addition as recorded in Volume 1, Page 70 of said Map Records. B. Seller will sell and convey the Property together with: (1) all buildings, improvements, and fixtures; (2) all rights, privileges, and appurtenances pertaining to the Property, including Seller's right, title, and interest in any minerals, utilities, adjacent streets, alleys, strips, gores, and rights-of-way; (3) Seller's interest in all leases, rents, and security deposits for all or part of the Property; (4) Seller's interest in all licenses and permits related to the Property; (5) Seller's interest in all third party warranties or guaranties, if transferable, relating to the Property or any fixtures; (6) Seller's interest in any trade names; if transferable, used in connection with the Property; and (7) all Seller's tangible personal property located on the Property that is used in connection with the Property's operations except: Any personal property not included in the sale must be removed by Seller prior to closing. (Describe any exceptions, reservations, or restrictions in Paragraph 12 or an addendum.) (If mineral rights are to be reserved an appropriate addendum should be attached.) (If the Property is a condominium, attach Commercial Contract Condominium Addendum (TAR -1930).) 3. SALES PRICE: At or before closing, Buyer will pay the following sales price for the Property: A. Cash portion payable by Buyer at closing ........................... $ 385,000.00 B. Sum of all financing described in Paragraph 4 ....................... $ C. Sales price (sum of 3A and 3B) ............:................ Ds .. $ 385,000.00 (TAR -9801) 1-1-16 Initialed for Identification by Sellerand Buy QQ Page 1 of 14 Wheeler Commercial, 470 Orleans Street, 12th Floor Beaumont; TX 77701 Phone: 409-899-3300 Fax: 409-899-3301 950 Washington - Erim Goss Produced with zlpFomt® by zipLogix 18070 Fifteen Mlle Road, Fraser, Michigan 48026 www.zipLooix.com D&uSign Envelope ID: 9EB9D9DA-OA38-4583-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard, Beaumont, TX 77701 4. FINANCING: Buyer will finance the portion of the sales price under Paragraph 3B as follows: ❑ A. Third Party Financing: One or more third party loans in the total amount of $ This contract: H (1) is not contingent upon Buyer obtaining third party financing. (2) is contingent upon Buyer obtaining third party financing in accordance with the attached Commercial Contract Financing Addendum (TAR -1931). ❑ B. Assumption: In accordance with the attached Commercial Contract Financing Addendum (TAR -1931), Buyer will assume the existing promissory note secured by the Property, which balance at closing will be $ ❑ C. Seller Financino: The delivery of a promissory note and deed of trust from Buyer to Seller under the terms of the attached Commercial Contract Financing Addendum (TAR -1931) in the amount of 5. EARNEST MONEY: A. Not later than 3 days after the effective date, Buyer must deposit $ $5,000.00 as earnest money with Texas Regional Title Company (title company) at 7675 Folsom, Bldg 100 Beaumont, TX 77706 (address) Molly Mallet (closer). If Buyer fails to timely deposit the earnest money, Seller may terminate this contract or exercise any of Seller's other remedies under Paragraph 15 by providing written notice to Buyer before Buyer deposits the earnest money. B. Buyer will deposit an additional amount of $ with the title company to be made part of the earnest money on or before: 11 (i) days after Buyer's right to terminate under Paragraph 7B expires; or Buyer will be in default if Buyer fails to deposit the additional amount required by this Paragraph 5B within 3 days after Seller notifies Buyer that Buyer has not timely deposited the additional amount. C. Buyer may instruct the title company to deposit the earnest money in an interest-bearing account at a federally insured financial institution and to credit any interest to Buyer. 6. TITLE POLICY, SURVEY, AND UCC SEARCH: A. Title Policv: (1) Seller, at Seller's expense, will furnish Buyer an Owner's Policy of Title Insurance (the title policy) issued by any underwriter of the title company in the amount of the sales price, dated at or after closing, insuring Buyer against loss under the title policy, subject only to: (a) those title exceptions permitted by this contract or as may be approved by Buyer in writing; and (b) the standard printed exceptions contained in the promulgated form of title policy unless this contract provides otherwise. (2) The standard printed exception as to discrepancies, conflicts, or shortages in area and boundary lines, or any encroachments or protrusions, or any overlapping improvements: ❑ X (a) will not be amended or deleted from the title policy. . (b) will be amended to read "shortages in areas" at the expense of ® Buyer ❑ Seller. (3) Within 20 days after the effective date, Seller will furnish Buyer a commitment for title insurance (the commitment) including legible copies of recorded documents evidencing title exceptions. Seller authorizes the title company to deliver the commitment and related documents to Buyer at Buyer's address. DS (TAR -1801)1-1-16 Initialed for Identification by Seller and Buy r QQ Page 2 of 14 Produced with zipForm® byzipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zJnLcaix.com 950 Washington- DocuSign Envelope ID_ 9EB9D9DA-0A38-4583-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard, Beaumont, TX 77701 B. Survev:Within 10 days after the effective date: ❑ (1) Buyer will obtain a survey of the Property at Buyer's expense and deliver a copy of the survey to Seller. The survey must be made in accordance with the: (i) ALTA/ACSM Land Title Survey standards, or (ii) Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. Seller will reimburse Buyer (insert amount) of the cost of the survey at closing, if closing occurs. ❑ (2) Seller, at Seller's expense, will furnish Buyer a survey of the Property dated after the effective date. The survey must be made in accordance with the: (i) ALTA/ACSM Land Title Survey standards, or (ii) Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. X1 (3) Seller will deliver to Buyer and the title company a true and correct copy of Seller's most recent survey of the Property along with an affidavit required by the title company for approval of the existingsurve a to +o- thre tittle ee � t n Y et-ae�� �-S��� the existing swvey is iget aeeeptable te the title eeH9paHy. The elesiflg date will be extended dai C. UCC Search: ❑ (1) Within days after the effective date, Seller, at Seller's expense, will furnish Buyer a Uniform Commercial Code (UCC) search prepared by a reporting service and dated after the effective date. The search must identify documents that are on file with the Texas Secretary of State and the county where the Property is located that relate to all personal property on the Property and show, as debtor, Seller and all other owners of the personal property in the last 5 years. X❑ (2) Buyer does not require Seller to furnish a UCC search. D. Buyer's Objections to the Commitment Survey, and UCC Search: (1) Within 5 days after Buyer receives the commitment, copies of the documents evidencing the title exceptions, any required survey, and any required UCC search, Buyer may object to matters disclosed in the items if: (a) the matters disclosed are a restriction upon the Property or constitute a defect or encumbrance to title to the real or personal property described in Paragraph 2 other than those permitted by this contract or liens that Seller will satisfy at closing or Buyer will assume at closing; or (b) the items show that any part of the Property lies in a special flood hazard area (an "A" or "V" zone as defined by FEMA). If Paragraph 613(1) applies, Buyer is deemed to receive the survey on the earlier of. (i) the date Buyer actually receives the survey; or (ii) the deadline specified in Paragraph 6B. (2) Seller may, but is not obligated to, cure Buyer's timely objections within 15 days after Seller receives the objections. The closing date will be extended as necessary to provide such time to cure the objections. If Seller fails to cure the objections by the time required, Buyer may terminate this contract by providing written notice to Seller within 5 days after the time by which Seller must cure the objections. If Buyer terminates, the earnest money, less any independent consideration under Paragraph 7B(1), will be refunded to Buyer. (3) Buyer's failure to timely object or terminate under this Paragraph 6D is a waiver of Buyer's right to object except that Buyer will not waive the requirements in Schedule C of the commitment. DS (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buye as Page 3 of 14 Produced with zlpForm® by zlpLogbr 18070 Fifteen Mlle Road, Fraser, Michigan 48026 www.ztolociz.com 950 Washington - DocuSlgn Envelope ID: 9EB9D9DA-OA38-4583-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard Beaumont TX 77701 7. PROPERTY CONDITION: A. Present Condition: Buyer accepts the Property in its present condition except that Seller, at Seller's expense, will complete the following before closing: B. _Feasibility Period: Buyer may terminate this contract for any reason within 20 days after the effective date (feasibility period) by providing Seller written notice of termination. (Check only one box.) X❑ (1) If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer less $ 500.00 that Seller will retain as independent consideration for Buyer's unrestricted right to terminate. Buyer has tendered the independent consideration to Seller upon payment of the amount specified in Paragraph 5A to the title company. The independent consideration is to be credited to the sales price only upon closing of the sale. If no dollar amount is stated in this Paragraph 7B(l) or if Buyer fails to deposit the earnest money, Buyer will not have the right to terminate under this Paragraph 7B. ❑ (2) Not later than 3 days after the effective date, Buyer must pay Seller $ as independent consideration for Buyer's right to terminate by tendering such amount to Seller or Seller's agent. If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer and Seller will retain the independent consideration. The independent consideration will be credited to the sales price only upon closing of the sale. If no dollar amount is stated in this Paragraph 7B(2) or if Buyer fails to pay the independent consideration Buyer will not have the right to terminate under this Paragraph 7B. C. Inspections. Studies. or Assessments: (1) During the feasibility period, Buyer, at Buyer's expense, may complete or cause to be completed any and all inspections, studies, or assessments of the Property (including all improvements and fixtures) desired by Buyer. (2) Seller, at Seller's expense, will tum on all utilities necessary for Buyer to make inspections, studies, or assessments. (3) Buyer must: (a) employ only trained and qualified inspectors and assessors; (b) notify Seller, in advance, of when the inspectors or assessors will be on the Property; (c) abide by any reasonable entry rules or requirements of Seller; (d) not interfere with existing operations or occupants of the Property; and (e) restore the Property to its original condition if altered due to inspections, studies, or assessments that Buyer completes or causes to be completed. (4) Except for those matters that arise from the negligence of Seller or Seller's agents, Buyer is responsible for any claim, liability, encumbrance, cause of action, and expense resulting from Buyer's inspections, studies, or assessments, including any property damage or personal injury. Buyer will indemnify, hold harmless, and defend Seller and Seller's agents against any claim involving a matter for which Buyer is responsible under this paragraph. This paragraph survives termination of this contract. D. Property Information: (1) Delivery of Property Information: Within days after the effective date, Seller will deliver to Buyer: (Check all that apply.) Ds (TAR -1801) 1-1-16 Initialed for Identification by Seller , T and Buy r QQ Page 4 of 14 Produced with zipFormOD by zipLoglx 18070 Fifteen Mlle Road, Fraser, Michigan 48026 www.zioLoaix corn 950 Wasbington- Dr cuSlgn Envelope ID: 9EB9D9DA-OA3845B3-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Viashington Boulevard, Beaumont, TX 77701 ❑(a) a current rent roll of all leases affecting the Property certified by Seller as true and correct; (b) copies of all current leases pertaining to the Property, including any modifications, supplements, or amendments to the leases; ❑ (c) a current inventory of all personal property to be conveyed under this contract and copies of any leases for such personal property; ❑ (d) copies of all notes and deeds of trust against the Property that Buyer will assume or that Seller will not pay in full on or before closing; ❑ (e) copies of all current service, maintenance, and management agreements relating to the ownership and operation of the Property; (f) copies of current utility capacity letters from the Property's water and sewer service provider; (g) copies of all current warranties and guaranties relating to all or part of the Property; (h) copies of fire, hazard, liability, and other insurance policies that currently relate to the Property; (i) copies of all leasing or commission agreements that currently relate to the tenants of all or part of the Property; ❑(j) a copy of the "as -built' plans and specifications and plat of the Property; (k) copies of all invoices for utilities and repairs incurred by Seller for the Property in the 24 months immediately preceding the effective date; ❑ (1) a copy of Seller's income and expense statement for the Property from to ❑ (m) copies of all previous environmental assessments, geotechnical reports, studies, or analyses made on or relating to the Property; ❑(n) real & personal property tax statements for the Property for the previous 2 calendar years; and (o) Tenant reconciliation statements including, operating expenses, insurance and taxes for the Property from to ; and ❑ (p) (2) Return of Property Information: If this contract terminates for any reason, Buyer will, not later than 10 days after the termination date: (Check all that apply.) n (a) return to Seller all those items described in Paragraph 7D(1) that Seller delivered to Buyer in other than an electronic format and all copies that Buyer made of those items; (b) delete or destroy all electronic versions of those items described in Paragraph 7D(1) that Seller delivered to Buyer or Buyer copied; and 0 (c) deliver copies of all inspection and assessment reports related to the Property that Buyer completed or caused to be completed. This Paragraph 7D(2) survives termination of this contract. E. Contracts Affecting Operations: Until closing, Seller: (1) will operate the Property in the same manner as on the effective date under reasonably prudent business standards; and (2) will not transfer or dispose of any part of the Property, any interest or right in the Property, or any of the personal property or other items described in Paragraph 2B or sold under this contract. After the feasibility period ends, Seller may not enter into, amend, or terminate any other contract that affects the operations of the Property without Buyer's written approval. 8. LEASES: A. Each written lease Seller is to assign to Buyer under this contract must be in full force and effect according to its terms. Seller may not enter into any new lease, fail to comply with any existing lease, or make any amendment or modification to any existing lease without Buyer's written consent. Seller must disclose, in writing, if any of the following exist at the time Seller provides the leases to the Buyer or subsequently occur before closing: (1) any failure by Seller to comply with Seller's obligations under the leases; (2) any circumstances under any lease that entitle the tenant to terminate the lease or seek any offsets DS or damages; (TAR -1 801) 1 -1 -16 Initialed for Identification by Seller and Buye MPage 5 of 14 Produced with zipFoarO by zipLogix 18070 Fifteen "Road, Fraser. Michigan 48026 950 wumngtnn- D&uSign Envelope ID: 9EB9D9DA-OA38-45B3-812A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard, Beaumont, Tx 77701 (3) any non -occupancy of the leased premises by a tenant; (4) any advance sums paid by a tenant under any lease; (5) any concessions, bonuses, free rents, rebates, brokerage commissions, or other matters that affect any lease; and (6) any amounts payable under the leases that have been assigned or encumbered, except as security for loan(s) assumed or taken subject to -under this contract. B. Estoppel Certificates: Within days after the effective date, Seller will deliver to Buyer estoppel certificates signed not earlier than by each tenant that leases space in the Property. The estoppel certificates must include the certifications contained in the current version of TAR Form 1938 - Commercial Tenant Estoppel Certificate and any additional information requested by a third party lender providing financing under Paragraph 4 if the third party lender requests such additional information at least 10 days prior to the earliest date that Seller may deliver the signed estoppel certificates. 9. BROKERS: A. The brokers to this sale are: Principal Broker: KenWheel, Inc. dba Wheeler Commercial Agent: Erica C. Goss Address: 470 Orleans Street, 12th FL Beaumont, TX 77701 Phone & Fax: (409)899-3300 (409)899-3301 E-mail: egoss(dwheeler-commercial.com License No.: 579943 Cooperating Broker: Henry G. Ervin Agent:, Derrick Freeman Address: 909 Indian R 909 Indian Run Dr Pflugerville, TX 78660 Phone & Fax: (409)983 -0108)- E -mail: derrickfreeman.@-hotmail.com License No.: 548464 Principal Broker: (Check only one box.) Cooperating Broker represents Buyer. X represents Seller only. represents Buyer only. is an intermediary between Seller and Buyer. B. Fees: (Check only (1) or (2) below.) (Complete the Agreement Between Brokers on page 14 only if (1) is selected.) ❑ (1) Seller will pay Principal Broker the fee specified by separate written commission agreement between Principal Broker and Seller. Principal Broker will pay Cooperating Broker the fee specified in the Agreement Between Brokers found below the parties' signatures to this contract. ® (2) At the closing of this sale, Seller will pay: Principal Broker a.total cash fee of. Cooperating Broker a total cash fee of - F -1 3.000 % of the sales price. X 3.000 % of the sales price. The cash fees will be paid in Jefferson County, Texas. Seller authorizes the title company to pay the brokers from the Seller's proceeds at closing. NOTICE: Chapter 62, Texas Property Code, authorizes a broker to secure an earned commission with a lien against the Property. DS (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy QQ Page 6 of 14 Produced with zlpForrn® by zlpLoglx 18070 Fifteen Mile Road, Fraser, Michigan 48026 www,z]nLocix.com 950 Washington - DocuSfgn Envelope ID: 9EB9D9DA-OA38-4583-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard, Beaumont TX 77701 C. The parties may not amend this Paragraph 9 without the written consent of the brokers affected by the amendment. 10. CLOSING: A. The date of the closing of the sale (closing date) will be on or before the later of: (1) X 45 days after the expiration of the feasibility period. (specific date). (2) 7 days after objections made under Paragraph 6D have been cured or waived. B. If either party fails to close by the closing date, the non -defaulting party may exercise the remedies in Paragraph 15. C. At closing, Seller will execute and deliver to Buyer, at Seller's expense, a ❑ generalFX] special warranty deed. The deed must include a vendor's lien if any part of the sales price is financed. The deed must convey good and indefeasible title to the Property and show no exceptions other than those permitted under Paragraph 6 or other provisions of this contract. Seller must convey the Property: (1) with no liens, assessments, or Uniform Commercial Code or other security interests against the Property which will not be satisfied out of the sales price, unless securing loans Buyer assumes; (2) without any assumed loans in default; and (3) with no persons in possession of any part of the Property as lessees, tenants at sufferance, or trespassers except tenants under the written leases assigned to Buyer under this contract. D. At closing, Seller, at Seller's expense, will also deliver to Buyer: (1) tax statements showing no delinquent taxes on the Property; (2) a bill of sale with warranties to title conveying title, free and clear of all liens, to any personal property defined as .part of the Property in Paragraph 2 or sold under this contract; (3) an assignment of all leases to or on the Property; (4) to the extent that the following items are assignable, an assignment to Buyer of the following items as they relate to the Property or its operations: (a) licenses and permits; (b) maintenance, management, and other contracts; and (c) warranties and guaranties; (5) a rent roll current on the day of the closing certified by Seller as true and correct; (6) evidence that the person executing this contract is legally capable and authorized to bind Seller; (7) an affidavit acceptable to the title company stating that Seller is not a foreign person or, if Seller is a foreign person, a written authorization for the title company to: (i) withhold from Seller's proceeds an amount sufficient to comply applicable tax law; and (ii) deliver the amount to the Internal Revenue Service together with appropriate tax forms; and (8) any notices, statements, certificates, affidavits, releases, and other documents required by this contract, the commitment, or law necessary for the closing of the sale and the issuance of the title policy, all of which must be completed and executed by Seller as necessary. E. At closing, Buyer will: (1) pay the sales price in good funds acceptable to the title company; (2) deliver evidence that the person executing this contract is legally capable and authorized to bind Buyer; (3) sign and send to each tenant in the Property a written statement that: (a) acknowledges Buyer has received and is responsible for the tenant's security deposit; and (b) specifies the exact dollar amount of the security deposit; (4) sign an assumption of all leases then in effect; and (5) execute and deliver any notices, statements, certificates, or other documents required by this contract or law necessary to close the sale, n5 (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy r aQ Page 7 of 14 Produced with zlpForm® by zipLoglx 18070 Fifteen Mlle Road, Fraser, Michigan 48026 950 Washington - DdcuSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-1CC95868E987 Commercial Contract - Improved Property concerning' 950 Washington Boulevard, Beaumont, -rA 77701 F. Unless the parties agree otherwise, the closing documents will be as found in the basic forms in the current edition of the State Bar of Texas Real Estate Forms Manual without any additional clauses. 11. POSSESSION: Seller will deliver possession of the Property to Buyer upon closing and funding of this sale in its present condition with any repairs Seller is obligated to complete under this contract, ordinary wear and tear excepted. Any possession by Buyer before closing or by Seller after closing that is not authorized by a separate written lease agreement is a landlord -tenant at sufferance relationship between the parties. 12. SPECIAL PROVISIONS: The following special provisions apply and will control in the event of a conflict with other provisions of this contract. (If special provisions are contained in an Addendum, identify the Addendum here and reference the Addendum in Paragraph 22D.) 13. SALES EXPENSES: A. Seller's Expenses: Seller will pay for the following at or before closing: (1) releases of existing liens, other than those liens assumed by Buyer, including prepayment penalties and recording fees; (2) release of Seller's loan liability, if applicable; (3) tax statements or certificates; (4) preparation of the deed and any bill of sale; (5) one-half of any escrow fee; (6) costs to record any documents to cure title objections that Seller must cure; and (7) other expenses that Seller will pay under other provisions of this contract. B. Buyer's Expenses: Buyer will pay for the following at or before closing: (1) all loan expenses and fees; (2) preparation fees of any deed of trust; (3) recording fees for the deed and any deed of trust; (4) premiums for flood and hazard insurance as may be required by Buyer's lender; (5) one-half of any escrow fee; and (6) other expenses that Buyer will pay under other provisions of this contract. /1 DS (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buye Q0. Page 8 of 14 Produced with zlpFonn® by zipLoglx 18070 Fifteen Mile Road, Fraser, Mlchlgan 48026 www. 950 Washington - DocuSlgn Envelope ID: 9EB9D9DA-OA38-4583-812A-1CC95868E987 Commercial Contract - Improved Property concerning 44.- nono A-rKnw4a: A: 950 Washington Boulevard, Beaumont TX 77701 15. DEFAULT: A. If Buyer fails to comply with this contract, Buyer is in default and Seller, as Seller's sole remedy(ies), may terminate this contract and receive the earnest money, as liquidated damages for Buyer's failure except for any damages resulting from Buyer's inspections, studies or assessments in accordance with Paragraph 7C(4) which Seller may pursue, or (Check if applicable) FV -I specific performance, or seek such other relief as may be provided by law. B. If, without fault, Seller is unable within the time allowed to deliver the estoppel certificates, survey or the commitment, Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 713(1), as liquidated damages and as Buyer's sole remedy; or (2) extend the time for performance up to 15 days and the closing will be extended as necessary. C. Except as provided in Paragraph 158, if Seller fails to comply with this contract, Seller is in default and Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 713(1), as liquidated damages and as Buyer's sole remedy; or (2) enforce specific performance, eF seek sueh et4geF Felief ae Ffley be pFevided by law, 16. CASUALTY LOSS AND CONDEMNATION: A. If any part of the Property is damaged or destroyed by fire or other casualty after the effective date, Seller must restore the Property to its previous condition as soon as reasonably possible and not later than the closing date. If, without fault, Seller is unable to do so; Buyer may: (1) terminate this contract and the earnest money, less any independent consideration under Paragraph 7B(1), will be refunded to Buyer; os (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy QQ Page 9 of 14 Produced with 2ipForm® by 2lpLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www 950 washingtoa- ON W-INNI 011,011i - . ---------------■ 15. DEFAULT: A. If Buyer fails to comply with this contract, Buyer is in default and Seller, as Seller's sole remedy(ies), may terminate this contract and receive the earnest money, as liquidated damages for Buyer's failure except for any damages resulting from Buyer's inspections, studies or assessments in accordance with Paragraph 7C(4) which Seller may pursue, or (Check if applicable) FV -I specific performance, or seek such other relief as may be provided by law. B. If, without fault, Seller is unable within the time allowed to deliver the estoppel certificates, survey or the commitment, Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 713(1), as liquidated damages and as Buyer's sole remedy; or (2) extend the time for performance up to 15 days and the closing will be extended as necessary. C. Except as provided in Paragraph 158, if Seller fails to comply with this contract, Seller is in default and Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 713(1), as liquidated damages and as Buyer's sole remedy; or (2) enforce specific performance, eF seek sueh et4geF Felief ae Ffley be pFevided by law, 16. CASUALTY LOSS AND CONDEMNATION: A. If any part of the Property is damaged or destroyed by fire or other casualty after the effective date, Seller must restore the Property to its previous condition as soon as reasonably possible and not later than the closing date. If, without fault, Seller is unable to do so; Buyer may: (1) terminate this contract and the earnest money, less any independent consideration under Paragraph 7B(1), will be refunded to Buyer; os (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy QQ Page 9 of 14 Produced with 2ipForm® by 2lpLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www 950 washingtoa- DocuSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-iCC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard. Beaumont, TX 77701 (2) extend the time for performance up to 15 days and closing will be extended as necessary; or (3) accept at closing: (i) the Property in its damaged condition; (ii) an assignment of any insurance proceeds Seller is entitled to receive along with the insurer's consent to the assignment; and (iii) a credit to the sales price in the amount of any unpaid deductible under the policy for the loss. B. If before closing, condemnation proceedings are commenced against any part of the Property, Buyer may: (1) terminate this contract by providing written notice to Seller within 15 days after Buyer is advised of the condemnation proceedings and the earnest money, less any independent consideration under Paragraph 713(1), will be refunded to Buyer; or (2) appear and defend the condemnation proceedings and any award will, at Buyer's election, belong to: (a). Seller and the sales price will be reduced by the same amount; or (b) Buyer and the sales price will not be reduced. 17. ATTORNEY'S FEES: If Buyer, Seller, any broker, or the title company is a prevailing party in any legal proceeding brought under or with relation to this contract or this transaction, such party is entitled to recover from the non -prevailing parties all costs of such proceeding and reasonable attorney's fees. This Paragraph 17 survives termination of this contract. 18. ESCROW: A. At closing, the earnest money will be applied first to any cash down payment, then to Buyer's closing costs, and any excess will be refunded to Buyer. If no closing occurs, the title company may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of the title company from all parties. B. If one party makes written demand for the earnest money, the title company will give notice of the demand by providing to the other party a copy of the demand. If the title company does not receive written objection to the demand from the other party within 15 days after the date the title company sent the demand to the other parry, the title company may disburse the earnest money to the party making demand, reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and the title company may pay the same to the creditors. C. The title company will deduct any independent consideration under Paragraph 713(1) before disbursing any earnest money to Buyer and will pay the independent consideration to Seller. D. If the title company complies with this Paragraph 18, each party hereby releases the title company from all claims related to the disbursal of the earnest money. E. Notices under this Paragraph 18 must be sent by certified mail, return receipt requested. Notices to the title company are effective upon receipt by the title company. F. Any party who wrongfully fails or refuses to sign a release acceptable to the title company within 7 days after receipt of the request will be liable to the other party for. (i) damages; (ii) the earnest money; (iii) reasonable attorney's fees; and (iv) all costs of suit. G. ❑ Seller ❑ Buyer intend(s) to complete this transaction as a part of an exchange of like -kind properties in accordance with Section 1031 of the Internal Revenue Code, as amended. All expenses in connection with the contemplated exchange will be paid by the exchanging party. The other party will not incur any expense or liability with respect to the exchange. The parties agree to cooperate fully and in good faith to arrange and consummate the exchange so as to comply to the maximum extent feasible with the provisions of Section 1031 of the Internal Revenue Code. The other provisions of this contract will not be affected in the event the contemplated exchange fails to occur. �D%%S Qlti� (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy r Page 10 of 14 Produced with zlpFormO byzlpLoglx 18070 Fifteen Mile Road, Fraser, Michigan 48026 950 Washington- DocuSign Envelope ID: 9EB9D9DA-OA3845B3-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washinaton Boulevard Beaumont Tx 77701 /47 i�7 , , , (' �\ ' , ( T whetlqe, asbestes eef9tah9ing RgateNals, EiFea feFFflaidehyde feaFfl iiqsHlatien, lead based , /7\ , , , i' 7aigy; 20. NOTICES: All notices between the parties under this contract must be in writing and are effective when hand -delivered, mailed by certified mail return receipt requested, or sent by facsimile transmission to the parties addresses or facsimile numbers stated in Paragraph 1. The parties will send copies of any notices to the broker representing the party to whom the notices are sent. A. Seller also consents to receive any notices by e-mail at Sellees'e-mail address stated in Paragraph 1. B. Buyer also consents to receive any notices by e-mail at Buyer's e-mail address stated in Paragraph 1. 24: DISPUTE R - I - -1 The pai4ies agree te i9egetiate ifi geed faith in an ef�ei4 te rzeeelve a1gy diepete 22. AGREEMENT OF THE PARTIES: A. This contract is binding on the parties, their heirs, executors, representatives, successors, and permitted assigns. This contract is to be construed in accordance with the laws of the State of Texas. If any term or condition of this contract shall be held to be invalid or unenforceable, the remainder of thi,5 contract shall not be affected thereby. B. This contract contains the entire agreement of the parties and may not be changed except in writing. C. If this contract is executed in a number of identical counterparts, each counterpart is an original and all counterparts, collectively, constitute one agreement. D. Addenda which are part of this contract are: (Check all that apply.) (1) Property Description Exhibit identified in Paragraph 2; (2) Commercial Contract Condominium Addendum (TAR -1930); (3) Commercial Contract Financing Addendum (TAR -1931); (4) Commercial Property Condition Statement (TAR -1408); (5) Commercial Contract Addendum for Special Provisions (TAR -19 2 (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy r QfPage 11 of 14 Produced with zipForm® by zipLoglx 18070 Fifteen Mile Road, Fraser, Michigan 48026 950 Washington - DocuSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-lCC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard Beaumont, TX 77701 Al (6) Addendum for Seller's Disclosure of Information on Lead -Based Paint and Lead -Based Paint Hazards (TAR -1906); (7) Notice to Purchaser of Real Property in a Water District (MUD); (8) Addendum for Coastal Area Property (TAR -1915); (9) Addendum for Property Located Seaward of the Gulf Intracoastal Waterway (TAR -1916); X (10)Information About Brokerage Services (TAR -2501); and X (11)DD6 (Note: Counsel for the Texas Association of REALTORS® (TAR) has determined that any of the foregoing addenda which are promulgated by the Texas Real Estate Commission (TREC) or published by TAR are appropriate for use with this form.) E. Buyer ❑ may ® may not assign this contract. If Buyer assigns this contract, Buyer will be relieved of any future liability under this contract only if the assignee assumes, in writing, all of Buyer's obligations under this contract. 23. TIME: Time is of the essence in this contract. The parties require strict compliance with the times for performance. If the" last day to perform under a provision of this contract falls on a Saturday, Sunday, or legal holiday, the time for performance is extended until the end of the next day which is not a Saturday, Sunday, or legal holiday. 24. EFFECTIVE DATE: The effective date of this contract for the purpose of performance of all obligations is the date the title company receipts this contract after all parties execute this contract. 25. ADDITIONAL NOTICES: A. Buyer should have an abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a title policy. B. If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fees of the district before final execution of this contract. C. Notice Required by §13.257, Water Code: "The real property, described below, that you are about to purchase may be located in a certificated water or sewer service area, which is authorized by law to provide water or sewer service to the properties in the certificated area. If your property is located in a certificated area there may be special costs or charges that you will be required to pay before you can receive water or sewer service. There may be a period required to construct lines or other facilities necessary to provide water or sewer service to your property. You are advised to determine if the property is in a certificated area and contact the utility service provider to determine the cost that you will be required to pay and the period, if any, that is required to provide water or sewer service to your property. The undersigned purchaser hereby acknowledges. receipt of the foregoing notice at or before the execution of a binding contract for the purchase of the real property described in the notice or at closing of purchase of the real property." The real property is described in Paragraph 2 of this contract. D. if the Property adjoins or shares a common boundary with the tidally influenced submerged lands of the state, §33.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included as part of this contract. E. If the Property is located seaward of the Gulf Intracoastal Waterway, §61.025, Texas Natural Resources Code, requires a notice regarding the seaward location of the Property to be included as part of this contract. F. If the Property is located outside the limits of a municipality, the Property may now or later be included in the extra -territorial jurisdiction (ETJ) of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that d ' Is its boundaries and ETJ. To (TAR -1801) 1-1-16 Initialed for Identification by Seller and Buy QQ Page 12 of 14 Produced with zipForm® byzlpLogbc 18070 Fifteen Mlle Road, Fraser, Michigan 48026 950 Wsh_no n- DocuSign Envelope ID: 9EB9D9DA-OA3845B3-B12A-1CC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard, Beaumont, Tx 77701 determine if the Property is located within a municipality's ETJ, Buyer should contact all municipalities located in the general proximity of the Property for further information. G. If apartments or other residential units are on the Property and the units were built before 1978, federal law requires a lead-based paint and hazard disclosure statement to be made part of this contract. H. Section 1958.154, Occupations Code requires Seller to provide Buyer a copy of any mold remediation certificate issued for the Property during the 5 years preceding the date the Seller sells the Property. I. Brokers are not qualified to perform property inspections, surveys, engineering studies, environmental assessments, or inspections to determine compliance with zoning, governmental regulations, or laws. Buyer should seek experts to perform such services. Buyer should review local building codes, ordinances and other applicable laws to determine their effect on the Property. Selection of experts, inspectors, and repairmen is the responsibility of Buyer and not the brokers. Brokers are not qualified to determine the credit worthiness of the parties. J. NOTICE OF WATER LEVEL FLUCTUATIONS: If the Property adjoins an impoundment of water, including a reservoir or lake, constructed and maintained under Chapter .11, Water Code, that has a storage capacity of at least 5,000 acre-feet at the impoundment's normal operating level, Seller hereby notifies Buyer: "The water level of the impoundment of water adjoining the Property fluctuates for various reasons, including as a result of. (1) an entity lawfully exercising its right to use the water stored in the impoundment; or (2) drought or flood conditions." 26. CONTRACT AS OFFER: The execution of this contract by the first party constitutes an offer to buy or sell the Property. Unless the other party accepts the offer by 5:00 p.m., in the time zone in which the Property is located, on , the offer will lapse and become null and void. READ THIS CONTRACT CAREFULLY. The brokers and agents make no representation or recommendation as to the legal sufficiency, legal effect, or tax consequences of this document or transaction. CONSULT your attorney BEFORE signing. Impact Health Services, PLLC, a Texas limited Seller: City of Beaumont Buyer:liability company By: By: DocuSigned by: By (signature): By (signature) Printed Name: Kyle Hayes Printed Name: Aijaz i awaia Title: City Manager Title: President 11/3/2017 1 16:35 CDT By: By: By (signature): By (signature): Printed Name: Printed Name: Title: Title: (TAR -1 801) 1-1-16 Page 13 of 14 Produced with zipFomnl by zlpLoglx 18070 Fifteen Mlle Road, Fraser, Michigan 48026 950 Washington - DocuSlgn Envelope ID: 9EB9D9DA-OA38-45B3-B12A-lCC95868E987 Commercial Contract - Improved Property concerning 950 Washington Boulevard Beaumont, TX 77701 AGREEMENT BETWEEN BROKERS (use only if Paragraph 9B(1) is effective) [fee rincipal Broker agrees to pay (Cooperating Broker) a when the Principal Broker's fee is received. The fee to be paid to Cooperating Broker will be: $ , or % of the sales price, or % of the Principal Broker's fee. The title company is authorized and directed to pay Cooperating Broker from Principal Broker's fee at closing. This Agreement Between Brokers supersedes any prior offers and agreements for compensation between brokers. Principal Broker: Cooperating Broker: By By: Sellers attorney: Address: Phone & Fax: E-mail: ATTORNEYS Buyer's attorney: Address: Phone & Fax. E-mail: Seller's attorney requests copies of documents, Buyer's attorney requests copies of documents,, notices, and other information: notices, and other information: the title company sends to Seller.e the title company sends to Buyer. Buyer sends to Seller. Seller sends to Buyer. ESCROW RECEIPT The title company acknowledges receipt of. A. the contract on this day (effective date); B. earnest money in the amount of $ in the form of on Title company: Address: By: Phone & Fax: Assigned file number (GF#): E-mail: (TAR -1801) 1-1-16 Page 14 of 14 Produced with zipForm® by ztpLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www-zloLoalx cam 950 Washington- DocuSign Envelope ID: 9EB9D9DA-0A38-45B3-B1 2A-1 CC95868E987 APPROVED BY THE TEXAS REAL ESTATE COMMISSION 10-10-11 ADDENDUM FOR SELLER'S DISCLOSURE OF INFORMATION �ta ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS aproRruwry AS REQUIRED BY FEDERAL LAW CONCERNING THE PROPERTY AT 950 Washington Boulevard Beaumont, TX (Street Address alld City) A. LEAD WARNING STATEMENT: "Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead- based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any Information on lead- based paint hazards from risk assessments or Inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead -paint hazards is recommended prior to purchase." NOTICE: Inspector must be properly certified as required by federal law. B. SELLER'S DISCLOSURE: 1. PRESENCE OF LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS (check one box only): ❑ (a) Known lead-based paint and/or lead-based paint hazards are present in the Property (explain): ® (b) Seller has no actual knowledge of lead-based paint and/or lead-based paint hazards in the Property. 2. RECORDS AND REPORTS AVAILABLE TO SELLER (check one box only): ❑ (a) Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the Property (list documents): © (b) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the Property. C. BUYER'S RIGHTS (check one box only): ❑ 1. Buyer waives the opportunity to conduct a risk assessment or inspection of the Property for the presence of lead-based paint or lead-based paint hazards. © 2. Within ten days after the effective date of this contract, Buyer may have the Property Inspected by inspectors selected by Buyer. if lead-based paint or lead-based paint hazards are present, Buyer may terminate this contract by giving Seller written notice within 14 days after the effective date of this contract, and the earnest money will be refunded to Buyer. D. BUYER'S ACKNOWLEDGMENT (check applicable boxes): 1. Buyer has received copies of all information listed above. 2. Buyer has received, the pamphlet Protect Your Family from Lead in Your Home. E. BROKERS' ACKNOWLEDGMENT: Brokers have informed Seller of Seller's obligations under 42 U.S.C. 4852d to: (a) provide Buyer with the federally approved pamphlet on lead poisoning prevention; (b) complete this addendum; (c) disclose any known lead-based paint and/or lead-based paint hazards in the Property; (d) deliver all records and reports to Buyer pertaining to lead-based paint and/or lead-based paint hazards in the Property; (e) provide Buyer a period of up to 10 days to have the Property inspected; and (f) retain a completed copy of this addendum for at least 3 years following the sale. Brokers are aware of their responsibility to ensure compliance. F. CERTIFICATION OF ACCURACY: The following persons have reviewed the information above and certify, to the beet�of their knowledge, that the information they have provided is true and accurate. ocuslg AA au "OWala 9M13487_ Date Seller Date Aijaz All Khowaja 11/3/2017 1 16: 35 CDT Kyle Hayes Buyer Date Seller Date xuStgned by: ned by: VY'tl�Vt,t,wtaut, Efm �—�sc,ffcW�Date r Date Derrick Freeman 11/3/2017 j 14:33 CDT oss 11/3/2017 1 13:13 CDT The form of thls addendum has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms of contracts. Such approval relates to this contract form only. TREC fomes are Intended for use only by trained real estate licensees. No representation Is made as to the legal validity or adequacy of any provision In any specific transactions. It Is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 512-936-3000 (http:liwww.trec.texas.gov) (TAR 1906) 10-10-11 TREC No. Ute -L Wheeler Commercial, 470 Orleans Street, 12th Floor Beaumont, TTX 77701 Phone: 409.899-3300 Fa:c 409-899-3301 950 Washington - Erim Gaal Produced with zipForrnO by Apl.ogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 w ---_- DocuSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-1CC95868E987 11/2/2015 Information About Br®kerage Servicest7uu aouso+c Texas law requires all real estate licensees to give the following information about �P brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: ° A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. ° A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER'S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): ° Put the interests of the client above all others, Including the broker's own interests; ° Inform the client of any material information about the property or transaction received by the broker; ° Answer the client's questions and present any offer to or counter-offer from the client; and ° Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker's minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer's agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker's minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller's agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: ° Must treat all parties to the transaction impartially and fairly; ° May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. ° Must not, unless specifically authorized In writing to do so by the party, disclose: o that the owner will accept a price less than the written asking price; o that the buyer/tenant will pay a price greater than the price submitted in a written offer, and o any coincidental information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement.to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: ° The broker's duties and responsibilities to you, and your obligations under the representation agreement. ° Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker's services. Please acknowledge receipt of this notice below and retain a copy for your records. KenWheel, Inc. dba Wheeler Commercial 579943 IwheeleKaD-wheeler-commercial.com (409)899-3300 Licensed Broker Broker Firm Name or License No. Email Phone Primary Assumed Business Name Lee Y. Wheeler, III 467055 Iwheeler(cbwheeler-commercial.com (409)899-3300 Designated Broker of Firm License No. Email Phone Lee Y. Wheeler, 111 467055 Iwheeler(a_wheeler-commercial.com (409)899.3300 Licensed Supervisor of Sales Agent/ License No. Email Phone Associate Erica C. Goss -DS 623539 egoss(abwheeler-commercial.com (409)8993300 Sales Agent/Associate'Name 0.Qs License No. Email Phone Buyer/Tenant/Seller/Landlord Initials Date 11/3/2017 1 16:35 CDT Regulated by the Texas Real Estate Commission Information available at www.tree.texas.gov IABS 1-0 Date Wheeler Commercial, 470 Orleans Street, 12th Floor Beaumont, TX 77701 Phone: 409-899.3300 Fax: 409-899-3301 950 Washington - Erlca Goss Produced with zlpFonn® by zlpLogbt 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zinLoaix.com DocuSign Envelope ID: 9EB9D9DA-0A38-45B3-Bl2A-1CC95868E987 - 11/212015 nInformation About Brokerage Servites EQUALTexas law requires all real estate licensees to give the following information about wpo" brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: ° A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. m A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER'S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker's own interests; m Inform the client of any material information about the property or transaction received by the broker, • Answer the client's questions and present any offer to or counter-offer from the client; and ° Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker's minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer's agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker's minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including Information disclosed to the agent by the seller or seller's agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an Intermediary: • Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the Instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: o that the owner will accept a price less than the written asking price; o that the buyerltenant will pay a price greater than the price submitted in a written offer, and o any coincidental information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The brokers duties and responsibilities to you, and your obligations under the representation agreement. ° Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker's services. Please acknowledge receipt of this notice below and retain a copy for your records. Henry G. Ervin 548464 henry.eryin@gmall.com (512)663 -3202) - Licensed Broker Broker Firm Name or License No. Email Phone Primary Assumed Business Name Henry G Ervin 548464 henry.ervin(a�gmail.com (512)663-3202)- Designated Broker of Firm License No. Email Phone Henry G Ervin 548464 henry.ervin(a gmail.com (512)663.3202) - Licensed Supervisor of Sales Agent/ License No. Email Phone Associate Derrick Freeman Ds 646721 derrlckfreeman(a)_hotmail.com (409)983-0108 A +1A --i.+.'. Name I License No. Email Phone Sales gen s lQQ Buyerfrenant/Seller/Landlord Initials Date 11/3/2017 1 16:35 CDT Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov TABS 1-0 Date Wheeler Commerclal, 470 Orleans Street,12th Floor Beaumont, TX 77701 Phone: 409-899-3300 Fax 409-899-3301 950 Washington - Erlca Goss Produced with zipFonn® by zipLoglx 18070 Fifteen We Road, Fraser, Michigan 48026 www.zipLoaix.com DocuSign Envelope ID: 9EB9D9DA-OA38-45B3-B12A-1CC95868E987 NOTICE TO PURCHASERS The real property described below, which you are about to purchase, is located in Jefferson County Drainage District No. 6. The District has taxing authority separate from any other taxing authority and may, subject to voter approval, issue an unlimited rate of tax in payment of such bonds. As of this date, the rate of taxes levied by the District on real property located in the District is 22.0587 cents on each $100 of assessed valuation. The total amount of bonds that have been approved by the voters and which may be issued by the District (excluding refunding bonds and any bonds or portion of bonds payable solely from revenues received or expected to be received pursuant to a contract with a governmental entity) is $0; however, contract revenue refunding bonds have been approved by the District's Board in the following original amounts Series 2003 - $4,995,000. The aggregate initial principal amount of all bonds of the District payable in whole or part from taxes (excluding refunding bonds and anybonds orportion ofbonds payable solely from revenues received or expected to be received pursuant to a contract with a governmental entity) that have been previously issued is $0, however, the current principal amounts of contract revenue refunding bonds outstanding are as follows: Series 2003 Contract Revenue Refunding Bonds - $950,000. The contract revenue refunding bonds are serviced through taxes collected for maintenance and operating. Funds from maintenance and operating are transferred to debt service for annual installments toward payment of the contract revenue refimding bonds. No separate tax is collected for contract revenue refunding bonds. The District does not impose a standby fee. The purpose of this District is to provide drainage or flood control facilities and services within the District through the issuance of bonds payable in whole or in part from property taxes. The cost of these utility facilities is not included in the purchase price of your property, and these utility facilities are owned or to be owned by the District. Date The legal description of the property which you are acquiring is as follows: See Paragraph 2.A of the Commercial Contract — Improved Property (Seller) PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM. The undersigned purchaser hereby aclm.owledges receipt of the foregoing notice at or prior to execution of a binding contract for the purchase of the real property described in such notice or at closing of purchase of the real property. b 11/3/2017 1 16:35 CDT Date EaDocuSigned Y- 52 FOL" 11a rrc SURVEY � ,,an do £ 3� Lor?? a 15 j ar'1 Found 1" I a' 3Q tsar Ta /.rN 7 [ftdrnnt /.l'd6 Ad.R•LGIron Flipsa �¢ Ng4°07'I4"Ts 33I.70' . - iT ttmtdanra w7lr atn PodmalFm�ganry ATana a+rtmt >fr AFC LAtB a.rT LOr3/ R¢-n�y.Prcdwaraaaarrc,6> - pad Camnunuy 4lGta7 ponalNo:ee25 �sa it aam afl'Ifud: Ati:s>xa2ae2 lal' prapmry Cee is zona M, Lacalfnnma•�p I I JaWr tem&b, . WORTE vp. AGinl QaL ubmrh Lo/3U 1� nor dnemdncd.lSaHrFlFr LaM SUAoyvu, TnC. LnrU ,` � I— •`' 1 aarasar+anT aaravhrafDarorhP ccureryvrezab - I B�udm9 Found 112' 60' Lo/ /J Iron Rod _ Latz c n rn EhTraP -_ w a! IT Lg b I - _ — - I =ruc . ,; ~ • . _ — AIC m h •u ^ C G /3 6, r17'hN Foundfir Lor-/ S'1 'j, OV Iron Rod r j (Cn1i T291� JJ o Y �• �°.19'17°Lr ' nwh' La: Lnl14 riM � _ ') 13.47' I 1 N Lar9 Iron Pipe } N 7125100'• Y r - Lnri l 4.74' ur1, A Lea k17't /d/ 'fi e%!'.rec`7 F✓cund 1' /O rn1 .� )}� AL1C•1r+mss '"`K Iron Pipe r1� Atco ,MAW 70 :o 4 1 0 r~ Lor? 6tl .d ftn } __� �p53`04'• � nr rr 1118 Address: 950 Washington Blvd. Found 1"�\�j�°i�r`..�J���� Beaumont, TX 77705 Iron Pipe 13o l of IN Yi Survayed fur. Ctly cI Beaumanl �y4shi1pubil p 00' vAdD pubRe RIOh Lugrd: B°Iag all of Lois 8 Ottu 21. Block 86 of 01. Cal(wrlght �{ Adrglfen as recorded N Vaumo 1, Page 137 or the Map Records of Jofftuson County, Texas, and Lots 1 thm 7. Le end B'ack7 of the Adirx,lon AdBllon as recorded in Volume 1, 0 Power Polo Page 70 of sold Map Records. L Light Pale BASIS OF BEARING: Sign All bearings aro based upon the Texas Coordinate System of 1983 (2011)• M.R.J.C. Map Records of Jefferson County South Central Zen°'4204' (US Survey fool). All baarings, dfstmtces and o Sol SiB'Iron rods with cops stampod'WORTFCII acreages are surface. To obtain grid distances, divide surface distance by SURVEYORS' unless otharwfse awed. 1.00007. Wd Eads; 7ayba6 Thus d—kj-d dcmhl'rtY—Uly th't 04G—oyavb—n9a1ycamplo wDh am eu [Tl aq S,,Jcly IEC QF yr vrvr.:slsra151avmer ataadard: and SPedllraaore fa•a CVYsery la, CacrHL'en 11 S•nryandms ads d.�/u�c an em p�uddttw prolroiy lraafl/dvsumedhcreon anUhmsract an_7aarnc�a orc no sic 'wnarmTs Ptvi•tiC;f, A. '15. 9PO qe .adAt,cora�aa.,nr�.aanam.-rarlxa,A,a.•oa.ca�„dryc,ar�nra�r.aa>d .tr..«wadeyl+n9 or�ovcmanrs an rna au,faca «eia gruard eaear as saamt con. vGlrh l'.e,-.Iv leSacca County. J.LSIMS. A\ 'q I.A[JD SU1iVEYOItS, TNI;. Tc.m rrcm aaout�tl.nluc rntoua� Lara carn:rvena c..a.r esaumcv. iercl: TJ:d4 4599 a' q 'f'd'-•.«��� S U R� �(/fw� � rilrs�� Tcl: •:VJ.E-io.91nJ Fnr, .1«.a•i4.7475 .v:�rhtCn m�wimias-e.lv apu: .,1aa•'t>aoRrr•.�. da',w� -.J.LS72. J[ TawaRaplWi0on K0.: x569 No Text RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Earnest Money Contract with Impact Health Services, PLLC for the sale of property located at 950 Washington Boulevard; and, BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to execute all documents necessary for the sale of the property and improvements. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - December 5, 2017 Consider a resolution approving annual contracts for the purchase of ready mix concrete and heavy materials with Martin Marietta, Inc. and Knife River, Inc. for use by multiple City departments BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer " U/� MEETING DATE: December 5, 2017 REQUESTED ACTION: Council consider a resolution approving annual contracts for the purchase of ready mix concrete and heavy materials with Martin Marietta, Inc of Beaumont and Knife River, Inc. of Beaumont for use by multiple City departments. BACKGROUND These materials are used by multiple City departments for general construction, street repairs/replacement, water and sewer projects, and heavy rock for landfill use. This contract combines the requirements of each affected department under a single contract rather than having multiple contracts for the same materials. Bids were requested from eight (8) vendors; three (3) responded. Administration recommends Martin Marietta, Inc. as the primary vendor and Knife River, Inc. as the secondary vendor. Specifications allow ,for a twelve (12) month contract with the option of two (2) renewals of twelve (12) month terms at the same pricing as the awarded contract. Martin Marietta, Inc., and Knife River Inc. hold the current contract. DezTex Industrial Services, Inc. of Port Arthur bid on section one but does not have an actual plant site for pick up by the City as required by contract. Primary and secondary vendors are recommended because one of the vendors is not open for business on weekends, and City work often continues over the weekend. Bid Tabulation is attached. FUNDING SOURCE In FY 2017, the City spent $306,710 with Martin Marietta and $243,157 with Knife River. The purchases were paid from the General Fund (33%), Water Fund (52%), and Solid Waste Fund (15%). RECOMMENDATION Approval of the resolution. RESOLUTION NO. WHEREAS, bids were received for a one (1) year contract with an option of two (2) renewals of twelve (12) month terms at the same pricing as the awarded contract to supply ready mix concrete and heavy construction materials for use by multiple City departments for general construction, street repair/replacement and water and sewer projects; and, WHEREAS, Martin Marietta, Inc., of Beaumont, Texas, and Knife River, Inc., of Beaumont, Texas, submitted bids as shown on Exhibit "A," attached hereto, for an estimated amount of $1,064,200 delivered/$712,500 pickup and $1,141,850 delivered/$771,350 pickup, respectively; and, WHEREAS, City Council is of the opinion that the bids submitted by Martin Marietta, Inc. and Knife River, Inc. should be accepted as primary and secondary contracts, respectively; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bids submitted by Martin Marietta, Inc., of Beaumont, Texas, and Knife River, Inc., of Beaumont, Texas, for a one (1) year contract with an option of two (2) renewals of twelve (12) month terms at the same pricing as the awarded contract to supply ready mix concrete and heavy construction materials for use by multiple City departments for general construction, street repair/replacement and water and sewer projects as shown on Exhibit "A," attached hereto, for an estimated amount of $1,064,200 delivered/$712,500 pickup and $1,141,850 delivered/$771,350 pickup, respectively, be accepted by the City of Beaumont as primary and secondary contracts, respectively; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute contracts with Martin Marietta, Inc. and Knife River, Inc. for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 5th day of December, 2017. - Mayor Becky Ames - BAUMOPIc CITY OF BEAUMONT, BEAUMONT, TEXAS PURCHASING DIVISION BID TABULATION T - 8 - Y - A - 6 Bid Name: ANNUAL CONTRACT FOR READY MIX CONCRETE & RELATED MATERIALS Bid Number: TF1018-06 Bid Opening: Thursday, November 16, 2017 Contact: Robert Terry Welch Senior Buyer terrv.welchraDbeaumonttexas.aov Phone: 409-880-3107 Vendor City / State Phone or Fax No. MARTIN MARIETTA BEAUMONT (409) 835-4933 KNIFE RIVER BEAUMONT (409) 842-2100 * DezTex Industrial Services,LLC Port Arthur 409-985-7762 SECTION 1 - READY MIX CONCRETE CITY DELIVERED PICKUP DELIVERED PICKUP DELIVERED PICKUP 1 3000 PSI CONCR 5-10 YD LOAD 1,000 $ 89.00 $ 89 000.00 $ 72.00 $ 72,000.00 93.00 $ 93,000.00 1 $ 80.00 $ 80 000.00 $ 90.00 $ 90,000.00 $75.00 $ 75,000.00 2 5000 PSI CONCR 5-10 YD LOAD 500 $ 97.00 $ 48 500.00 $ 80.00 $ 40,000.0j $ 101.00 $ 60 500.00 $ 89.00 $ 44,500.00 $ 100.00 $ 50,000.00 $85.00 $ 42 500.00 3 3000 PSI CONCR <5 YD PARTIAL 1,000 $ 150.00 $ 150,000.00 $ 160.00 $ 160 000.00 $ 110.00 $ 110,000.00 $75.00 4 5000 PSI CONCR <5 YD PARTIAL 500 $ 160.00 $ 76,000.00 $ 150.00 $ 75,000.00 $ 120.00 $ 60,000.00 $85.00 5 ADD/DED PER SAC OVER STD MIX $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 5.00 $5.00 TOTAL SECTION 1 $362,600.00 $112,000.00 $368,500.00 $ 124,600.00 $310,000.00 $117,500.00 SECTION 2 - CEMENT STAB BASE QTY DELIVERED PICKUP DELIVERED PICKUP DELIVERED PICKUP 6 PORTLAND CMT STAB BASE 1,5001 $ 37.00 1 $ 65,600.00 $ 33.00 1 $ 49,500.00 $ 39.00 1 $ 58,500.00 $ 34.00 1 $ 51,000.00 1 NO BID NO BID I. SECTION 3 - LIMESTONE BASE MATL QTY I DELIVERED PICKUP DELIVERED I PICKUP I DELIVERED PICKUP 7 1 LIMESTONE BASE 17000 $ 26.00 1 $ 26,000.00 $ 22.00 1 $ 22,000.00 $ 27.00 1 $ 27,000.00 $ 22.00 1 $ 22,000.00 1 NO BID I NO BID SECTION 4 - MISC HEAVY MATERIAL CITY DELIVERED PICKUP DELIVERED PICKUP DELIVERED PICKUP 8 CMT STAB SAND 1-1/2 SACK MIX 15000 $ 25.00 $ 376,000.00 $ 21.00 $316,000.00 $ 28.00 $ 420,000.00 $ 23.00 $ 345,000.00 NO BID NO BID 9 CMT STAB SAND 2 SACK MIX 3000 $ 28.00 $ 84,000.00 $ 24.00 $ 72,000.00 $ 31.25 $ 93,760.00 $ 26.26 $ 78,750.00 NO BID NO BID 10 ADD PER SACK OVER 2 SACK $ 5.50 $ 5.50 $ 5.00 $ 5.00 NO BID NO BID 11 PUG SAND 500 $ 20.00 $ 10,000.00 $ 16.00 $ 8,000.00 $ 26.00 $ 12,600.00 $ 20.00 $ 10,000.00 NO BID NO BID 12 1 INCH LIMESTONE 100 $ 34.00 $ 3,400.00 $ 30.00 $ 3,000.00 $ 42.00 $ 4,200.00 $ 37.00 $ 3,700.00 NO BID NO BID 13 3/4" CMT STAB LIMESTONE 2 SACK 100 $ 43.00 $ 4,300.00 $ 39.00 $ 3,900.00 $ 67.00 $ 6,700.00 $ 62.00 $ 5,200.00 NO BID NO BID 14 Bull Rock 1" x 3" 15 Bull Rock 3" x 5" 100 4000 $ 35.00 $ 3,500.00 $ 35.00 $ 140,000.00 $ 31.00 $ 3,100.00 $ 31.00 $124,000.00 $ 37.00 $ 3,700.00 $ 37.00 $ 148,000.00 $ 32.00 $ 32.00 $ 3,200.00 $ 128,000.00 NO BID NO BID NO BID NO BID TOTAL SECTION 4 $ 620,200.00 1 $ 529,000.00 $ 687,850.00 1 $ 573,860.00 NO BIDI NO BID BID SUMMARY DELIVERED PICKUP DELIVERED PICKUP DELIVERED PICKUP SECTION 1 - READY MIX CONCRETE $362,600.00 $112,000.00 $368,500.00 $124,500.00 $310,000.00 $117,500.00 SECTION 2 - CEMENT STABILIZED BAE $55,600.00 $49,600.00 $58,500.00 -$61,000.00 NO BID NO BID SECTION 3 - LIMESTONE BASE $26,000.00 $22,000.00 $27,000.00 $22,000.00 NO BID NO BID SECTION 4 - MISC HEAVY MATERIALS $620,200.00 $529,000.00 $687,860.00 $573,860.00 NO BID NO BID TOTAL BID $1,064,200.00 $712,600.00 $1,141,850.00 $771,360.00 $310,000.00 $117,500.00 * Denotes vendor as non responsive. Low qualified bidders are Martin Marietta, Inc. as primary and Knife River, Inc as secondary as Hi lighted above. m X LU WORK SESSION Review and discuss a proposal from the Beaumont Housing Authority to develop an affordable housing complex for seniors on city property located adjacent to the Great Lawn in downtown Beaumont BEAUMONT TEXAS Work Session TO: City Council FROM: Kyle Hayes, City Manager 16 PREPARED BY: Chris Boone, Planning & Community Development Director MEETING DATE: December 5, 2017 REQUESTED ACTION: Council conduct a Work Session to review and discuss a proposal from the Beaumont Housing Authority, to develop an affordable housing complex for seniors on city property. BACKGROUND The Beaumont Housing Authority is requesting to use city property, located adjacent to the Great Lawn, to develop affordable housing for senior residents. The Authority will work with a developer and seek Housing Tax Credits from the Texas Department of Housing and Community Affairs (TDHCA) to assist in funding the project. Attached is the proposed location and site plan. In addition, a Housing Tax Credit guide from TDHCA is also attached. FUNDING SOURCE Not Applicable RECOMMENDATION Conduct the Work Session. .p71 �9y'r- A . 1 • �,, RI o 3'aJ1. S �- v .. t r ';,_',*�:4 "�, `;pix i� F- .'_, a: ; ''� ,� ''•` Vi,"4(�6y•� Li f: '. i!, x� 5 •il i JV �,�'.}-f •ri••1�', „a.r�':-'" -�`. �- -.Lakeside` •'�; �f.i t� ,,• �• f'• A^J, ;:. ::';lei; :.• rvc•' '"' : - i- I y ✓'%'r `' :,:�ix�'y�a 'K, •"'� Center ids Site t f"' ,t Great:lot Lawn - ad.•�n ;�` .�. �', IgA,. i•.. - Y; _ J r a l'c :Y •-, �{ � •,�r:� �+• yes�`4 f • S •IY/ l, .s ••±-•- �o� Y• ` ' � .� 4�' � �i i ; 7'•' • �• `a. ��� • F � c�,�'�ia _ _ '�"S � ^ til ' • 1 � cAl�?.iaf Vii.*� � �. �.� ,�!'"'15�v Z?i.!: Y '.f.•: .. ''' , - '�-• ^'��/ t% "n 'Y1" /','i tV �%i_'._. _ ��..- :]S-'s11:.'`r • .1QA./ _ 4: � _ `ice �••b: s „ ONO li L 1101:: lo HALIL LAW bid 0 mo al II - a ELI vJ f gj a ;r-. . ": T-�i=j-- TZ7 f-- I : 0 lan, BMW" Elm 17 "-flm mmm mmm— in III MIMI Allool all I 71, f-=;^- ' III n Fla, 'No �2.1�� gq2m um NINE MINA I ILII! I ffil .2 man ;I OR Hall a I I 'I . , I Or i MIER ME .1ma I I -/A I I . , , , . U L 211 TABULATIONS (UNIT TABULATION: .e A�PP.RO&y4'bUU ROOM � �;1 BEDROOM :1� UNITS j[8�1 33%j_ BEDROO`2 "DWS �:. TOTAL:>1'50tUNITS \� 33'UNITS/ACRE. PARKING TABULtATI0 j 1JZS REQUIRED..PARKING. =179 SURFACE PARKING I Y TOTAL PARKING,. F' ,, r�, -B ® T-01 PARKING/BED _v` _ rtrbt+ } 'S �:..r"� f�Ci i i k� �r-'� r ;`� •'-fn+a. Y� ;`; d:J� L�tr,: S +.. 'Z �- � - � ,N'� fir. ��, •�� r � xt L 1 r��5.'�*Y��_ � P�-4 � .,�N- t - �;?. .� F �'""��7-.-- -!�� �N_ ,F -j _ ..,_• �7 ,; ! _ 1 ''t . r .t'�'�"i-.sj t - ir' �' 6V r 8 �+� B �' -.s. µ'� jt. ' '^� i •rY ` '' DWEL ING Y' .�-�co _UNITS! '45T RY - ® ✓. L ?,. r !! ,� i �- (' N �.. ITY i s , E; NOS f t ' 'PORTE 3 - Yui•; 4 ST RY a — a O-CkHER 4 ' , .,® '.MAIN Irk dw Z,.:• � .- '+t. ,`f` c .. � T .i � �`�y^" _% J �'�_ .Rt ! -`�i ,��' , j p� i:l ". { Y I ' .� faY, : „ , S .., -,x ,- - r 5P s i�• �� {lll�i�k � S%_ W,' !ri','� � _ .J ar 2• -v � � � i� �� I �, �5' I �I tif, N O SCALP I -=V4' LE BELLE MAISON SENIOR SCHEMATIC SITE PLAN p �' Beaumont, Texas �o "I, Aaffi -yam /./, �,�{•1��'!v�✓-`•+<II-AT: •. �°"L. l 1 Z }moi ' X Ya�:� '� �+�{ I- -7 �s`•'"'�r�'= _' ' j��•y `I � ) ;t a+• -, w. e .,✓~'.fir-�� y�„r.�: •"'�.16" ` •.�'"- r� � 'ti" I I "� - ,,QQ ,� • :�t :::�:� 1::: _ : ' irk-_ ���`1`�y;1�:--:: � .., -� l � 'fig _ _ : - �J,-�1. 9 a.., -_ i�.�k�;_� �•-r� ' ' l� I `•.;; E.si i`-'� r...� 1_ _ I�r {+y' � L I' - ^i." •t .1 �, ISI �'_�f ... .E� � _ ,,":✓iiul �¢, _ .. ;_?,.' � � r!*-;i"u„x; �,��.i! -'- =_ _ J..— �' CLW CS jl E' •4F11 ; r t.. .' '[ . ', •,�-,,,.�'f i;{: •f:ti' —ate`,' : _ - - �� F+ {! I a , t �- hf _+ ',.,-- 1rti .R�,• 1 J„:,-.xi:,l.�^ :z::'. ;yr'�i:?': xr,, ,�"�,�,` �_�. �i311 �. ��.. �+�” dell �.�• ��c�� ��i� �:1:.,` ��:`�; �. P ,? •g rc�x,'a ; n'� {j j _ �* i tk�'_�` ,iia: fi j ,,.; �+ -�'�sn . �.1^ ��l' •�E ! 4 � '•1 ' Il: .� � �,f.�,-'e.,,l,l M, `�` !� •ily e�r.� �; � xr�;• �V�J” 4 _i...t.:,��v. - �li�:J-7_E - ��77 Illi; ^,�. a TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS About Us The Texas Department of Housing and Community Affairs ("TDHCA" or "the Department') is the state agency responsible for promoting and preserving homeownership, financing the development and ensuring the long-term stability of affordable rental housing, supporting community and energy assistance programs, and administering and overseeing colonia programs. The Texas Department of Housing and Community Affairs is committed to expanding fair housing choice and opportunities for Texans through the administration and funding of affordable . housing and homeownership opportunities, weatherization, and community-based services with the help of for -profits, nonprofits, and local governments. For more information about fair housing, funding opportunities, or services in your area, please visit www.tdhca.state.tx.us or the Learn about Fair Housing in Texas page. WHY TDHCA HAS DEVELOPED THIS GUIDE Texans are an engaged lot. They want to know what is going on in their communities and to have a voice, helping to ensure that their communities are strong and vibrant and that they are great places to live and work. The Texas Legislature has enacted laws to encourage local Housing Options for Texas Communities government to engage with affordable housing developers and local constituents to ensure meaningful opportunities for input and dialogue, and it has created statutory elements which increase the value and importance of local input. Local government resolutions regarding proposed affordable housing developments are now a significant scoring item. Whether you are new to affordable multifamily housing or you have participated in evaluating affordable multifamily housing development proposals in the past, the purpose of this guide is to help you understand your role, navigate the process of evaluating proposals, and learn how to provide useful information about the Housing Tax Credits ("HTCs°) Program to your constituents and obtain their input. TDHCA has developed easy -to -understand and simple -to - use materials to help you through the process. We are also here to help you over the phone, via email, or online. We cannot provide legal advice, so you must rely on your own attorneys for legal advice. You should also look to your staff to provide the information you need to make well-informed decisions. YOUR ROLE Because of amendments to the laws regarding the low income housing tax credits, local governments now have an important role in evaluating proposed developments, assessing community input, and making well-grounded decisions on resolutions regarding proposed affordable housing. It is tremendously valuable for you and your constituents to understand affordable housing, what it is and what it is not. In This Guide AboutUs........................................................................... 2 Why TDHCA has Developed this Guide ........................ 2 YourRole...................................................................... 1 HTC -Assisted Housing Characteristics ......................... 2 About Housing Tax Credits ............................................... 2 Purpose......................................................................... 3 Background................................................................... 3 Program Administration................................................. 3 FundingSource............................................................. 3 Set Asides and Regional Allocation .............................. 3 How the HTC Application Process Works......................5 Local Government Resolutions......................................6 Unique Features of the HTC Program ...........................6 Beneficiaries..................................................................7 FairHousing...................................................................7 How Rents Are Determined...........................................7 Compliance....................................................................7 HTC Properties vs Market Rate Properties....................a Evaluating Needs and Supporting Developments .............8 FAQ.................................................................................12 2 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HTC -ASSISTED HOUSING CHARACTERISTICS The term "affordable housing" conjures up a lot of Images, many stereotypical and not entirely positive. A major challenge is to understand what affordable housing has become — particularly affordable housing developed with HTCs. HTC -assisted properties are: Designed to be real assets to their communities, incorporating high quality interior and exterior design, attractive landscaping, and amenities. Visually they compare very favorably with high quality market rate developments. HTC properties increasingly incorporate the mixed income approach, offer a mixture of rent restricted and market rate units, and compete successfully for market rate tenants. Subject to rigorous extended oversight by TDHCA, including regular onsite inspections to ensure that they are being well-maintained. Required to provide services that benefit tenants. Home to individuals and households who: — pay their rent and meet tenant screening criteria (including background checks). — live on fixed incomes, such as retirees, injured veterans, and persons receiving assistance for disabilities. — people who work hard to fill important jobs in our communities like teaching assistants, EMS and health care workers, and the many other types of workers that keep our vibrant economy strong and growing. HTC -assisted properties are not: Dreary, high-density, or ill -maintained developments that convey an image of neglect and poverty. Buildings fallen into disrepair and deteriorating grounds Tuscany Park at Buda in Buda, Texas. Housing Options for Texas Communities About Housing Tax Credits Affordable housing development that will utilize housing tax credits typically begins with a private sector owner of real property that will have the required zoning and other features necessary to construct and operate a multifamily rental property. For most multifamily developers of market rate properties, any opportunity for public input is largely confined to zoning and permitting processes. Developers of HTC properties are required to engage with the communities where they plan to build, so that neighbors and local governments have an opportunity to participate in planning. The Housing Tax Credit ("HTC") program was created by Congress in 1986 and is the largest funding source for affordable housing in the United States today. Unlike traditional Section 8 and Public Housing programs, the HTC Program provides private market developers and equity providers with an incentive to invest in affordable rental housing. When tax credits are awarded by TDHCA to a developer, the developer sells the credits to an equity provider in exchange for capital to build a high quality rental housing development. This capital and the reduction in borrowed debt allow developers to offer high quality rental housing at affordable, restricted rents. Investors in the tax credit program benefit by receiving dollar -for -dollar credit against their Federal tax liability each year over a period of 10 years in exchange for their investment and communities benefit from quality developments that will operate as rent - restricted housing for up to 30 years or more. TDHCA receives applications for credit awards for two types of tax credit developments: • 4% HTCs, which pay for about 30% of a development and require additional financing partners; and 9% HTCs, which pay for about 70% of a development and are highly competitive based on their value to developers and equity providers. Oak Creek Townhomes in Marble Falls, Texas. Spring Terrace Apartments in Austin, Texas. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS PURPOSE The HTC Program is designed to: • Provide a source of equity financing for the development of affordable housing; • Maximize the number of affordable units added to the state's housing supply; ■ Ensure that the state's affordable housing supply is well maintained and operated; • Serve as a credit to the communities in which affordable housing is constructed and operated; and ■ Prevent losses in the state's supply of affordable housing. BACKGROUND The HTC Program was created during the Reagan Administration through the Tax Reform Act of 1986. • Section 42 of the Internal Revenue Code, as amended ("the Code"), is the federal law that governs the HTC Program. ■ Section 42 authorizes 9% HTCs in the amount of $2.35 per capita for each state as adjusted for inflation. ■ There is no limit on the amount of 4% HTCs the state may allocate. • TDHCA is the only entity in the state of Texas with the authority to allocate HTCs under the HTC Program. PROGRAM ADMINISTRATION Pursuant to Section 42 of the Code, the Department must develop a plan for the selection of eligible developments; this plan is known as the Qualified Allocation Plan and Rules ("QAP"). ■ The QAP defines a series of point -based selection criteria for the 9% HTC Program to ensure that the housing proposed in the applications is consistent with the program's and state's goals. Housing Options for Texas Communities The QAP is revised annually and is formalized and added to the Texas Register once signed by the Governor. The QAP's revision process includes the hosting of roundtables to solicit feedback, a public comment period, and Board review and approval. The Uniform Multifamily Rules include eligibility and threshold criteria for all TDHCA developments. FUNDING SOURCE The HTC Program is authorized by the U.S. Treasury Department and is overseen by the Internal Revenue Service. SET ASIDES AND REGIONAL ALLOCATION HTCs are allocated in accordance with Section 2306.111 of the Texas Government Code, which requires that credits be allocated with certain percentages set aside for specific types of developments, and the balance distributed across the 13 regional state service regions, which are further divided into Rural and Urban areas that are able to receive a pre -determined amount of tax credits each year. Set Asides The Department sets aside the following credit allocations each year: • 15% for affordable housing developments with expiring rental subsidies or contracts. — The Department calls these developments "At Risk" and prioritizes their preservation. — One third of this set aside is prioritized for U.S. Department of Agriculture ("USDA") developments proposing rehabilitation. • 10% for qualified nonprofit organizations ■ 20% for development in rural areas, which may be layered with the other set asides Retama Village In McAllen, Texas. Sunflower Estates in La Feria, Texas. 4 Arbor Cove in Donna, Texas. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Regional Allocation The amount distributed to each of the 13 regional state service regions is determined by a regional allocation formula ("RAF") which is generated, with public input, by TDHCA's Housing Resource Center. ■ The RAF was created by the Texas Legislature in 2000. • The RAF uses appropriate statistical data to measure the affordable housing need and available resources in Texas' 13 state service regions. ■ The RAF is revised annually to reflect current data, respond to public comment, and better assess regional housing needs and available resources. Housing Options for Texas Communities Seven Award Steps Step 1 USDA Set -Aside Application Selection Step 2 At -Risk Set -Aside Application Selection Step 3 Initial Application Selection in each Sub -Region (Highest scoring within the RAF sub -regions), including awards to the top -scoring revitalization project in each of the major metropolitan areas Step 4 Rural Collapse (Sub -region credits remaining are pooled and offered to the most underserved Rural sub -region that can use the full credit amount) Step 5 Statewide Collapse (Credits remaining after the Rural Collapse are pooled and offered to the highest scoring application from the most underserved sub -region in the state) Step 6 Qualified Nonprofit Set -Aside (10% set-aside must be met) Step 7 Consideration of Waiting List Applications 5 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HOW THE HTC APPLICATION PROCESS WORKS Housing Options for Texas Communities Summarized 9% HTC Calendar The HTC application process is governed by Code, the Below is a sample summarized calendar of the HTC QAP, and the TDHCA rules. application deadlines for the competitive 9% HTC application cycle. Specific required submission dates for Developers begin the application process between January each year will be listed in the QAP, along with all scoring and March of each year, as set out in the QAP, for the 9% incentives and point values. (Competitive) HTC Program and may apply at any time to take part in the 4% (Non -Competitive) HTC Program. Whether submitting a 4% or 9% application, developers are required to notify the following persons or entities of their application for credits: ■ Neighborhood Organizations on record with the state or county whose boundaries include the proposed development site; • The Superintendent and presiding officer of the board of trustees of the school district in which the development site is located; • The Mayor of the municipality (if the development site is within a municipality or its extraterritorial jurisdiction); • All elected members of the governing body of the municipality (if the development site is within a municipality or its extraterritorial jurisdiction); • The presiding officer and all elected members of the governing body of the county in which the development site is located; and • The State Senator and State Representative of the districts whose boundaries include the proposed development site. The receipt of notifications by local officials often increases interest about the development process and represents an opportunity to engage the community on the topic of affordable housing. Month Activity January Pre -Application acceptance period Early March Full application period Mid -May Final application scores issued Mid -June Deadline for public comment to be included in a summary to the Board at a posted meeting. Late June Release of eligible applications for consideration for award in July July Final 9% HTC awards are made Mid -August HTC commitments are issued Amber Stone in Beeville, Texas. Corban Townhomes In Corpus Christi, Texas. 6 The Heights at Corral in Kingsville, Texas. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS LOCAL GOVERNMENT RESOLUTIONS The top scoring criteria for 9% low income housing tax credits are laid out in statute, and local government resolutions are significant scoring items. To help support goals of the local community and encourage engagement in the development process, and in accordance with state law, TDHCA awards a large number of points to 9% applications which are able to acquire a resolution voted on and adopted by governing bodies of a municipality or county. Highest points are awarded for resolutions in support of a development and second highest points are awarded for resolutions stating no objection to the development. Applications received under the non-competitive 4% program must also receive resolutions showing "no objection" to the proposed development to demonstrate alignment with local community goals and support. During the time applications are being prepared for submission, local governments will be approached by developers seeking these resolutions and, in many cases, local funding or fee waivers to ensure a competitive application score. Municipalities and counties should consult their own staff and legal counsel regarding whether reasons for any unsupportive action regarding such resolutions are consistent with Fair Housing laws, goals identified in the community's current Analysis of Impediments to Fair Housing Choice or any current plans such as one year action plans or five year consolidated plans for U.S. Department of Housing and Urban Development ("HUD") block grant funds, such as HOME or Community Development Block Grant ("CDBG") funds. TDHCA produces a variety of tools for use in discussing affordable housing development with your constituents. These tools include videos, brochures, and links to relevant external sites and information. To access these tools or find more information about how to engage the public on this important topic, please visit the TDHCA website at hftp://www.tdhca.state.tx.us/mulfifamily/communites.htm or call us toll free at 800-525-0657 or 512-475-3800 and ask to speak with the Director of Multifamily Finance or the Housing Tax Credit Administrator. Housing Options for Texas Communities UNIQUE FEATURES OF THE HTC PROGRAM In addition to the fact that the HTC Program represents a unique public, private partnership that builds affordable housing without a direct government subsidy, the program also cultivates good design and quality construction through its competitive scoring process. Application Incentives In addition to community and local government support, the HTC application process incentivizes the following: ■ Local funding partnerships; • Green and LEED certified building; • Construction by responsible and experienced Developers; ■ Energy efficient buildings and appliances; • High opportunity development site selection; • Tenant services such as after school and daycare programs, community health programs, and financial planning courses; • Community revitalization planning; • Financial feasibility; • Leveraged funds; ■ Proximity to community assets; • High quality amenities such as swimming pools, sports courts, playgrounds, and computer centers; and • Quality interior and exterior unit features such as covered entries and balconies, high speed Internet service, nine foot ceilings, walk in closets, 30 year shingle or metal roofing, garages, and masonry exteriors. Not all properties will have all of these features, but awarding applications on the basis of a point scoring program means that developers have to consider how to make their applications as competitive as possible and work within the state's goals to maximize credit allocations, build quality construction developments that will serve the community for a long time, and make housing available for all Texans. Long Term Use Restrictions After it is constructed, the HTC property will retain a Land Use Restriction Agreement ("LURA") that will restrict its use as an affordable housing property. • HTC rents are not based on a percentage of income like public housing authority or Section 8 properties; instead, properties receive an annual maximum rent they are allowed to charge based on HUD's annual median income limits. ■ Property units will be offered based on a set rent amount and tenants are accepted to the property based on meeting the property s independent screening criteria and income limits. • All properties are allowed to screen for credit and criminal history. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS ■ Most properties will house a high percentage of working families and individuals who can benefit from restricted rents in a growing Texas economy that is witnessing trends of increased costs of living and limited available housing in many areas. BENEFICIARIES Tenants earning up to 60% of the area median family income ("AMFI") for the area for their household size and who meet the screening and eligibility restrictions of the property may qualify for a reduced rent unit. Typical tenants include: school teachers; police officers; firefighters; mechanics; single parents who are balancing career and family while attending night school; city employees; sales clerks; and retirees. Some units may be available for lower income tenants, like households that receive social security benefits FAIR HOUSING After the property is developed, the owner will affirmatively market the property in the surrounding community. They will use tenant selection criteria that complies with all fair housing laws, and will provide notices to all tenants regarding their rights. HOW RENTS ARE DETERMINED HTC property tenants must pay their rents in full. Thus, the tenants are most likely working Texans or retirees seeking an affordable place to live. — HTC properties are also required by law to accept tenants and households with federal rental vouchers. The rent limits for HTC units are based on household income level and the number of bedrooms in the unit. — These rent and income limits are generated by the U.S. Department of Housing and Urban Development ("HUD") each year. — The Maximum Income and Rent Limits are available under the Featured Items drop menu on TDHCA's home page at www.tdhca.state.tx.us. While rental rates are restricted, they are not subsidized by the HTC Program. Housing Options for Texas Communities COMPLIANCE • TDHCA monitors and physically inspects all properties which have received HTCs and/or multifamily funds from any TDHCA program. • The Department follows very specific requirements for monitoring, inspecting, and reporting. ■ The Department monitors properties on a routine schedule depending on their funding source. • All properties are inspected within their first year. Properties that receive HTCs are generally monitored on site once every three years; additional inspections - may be done as a result of complaints or to rectify serious compliance violations. ■ In Texas, property owners who don't follow their proposed plans for development during the building process, who let their properties fall into disrepair, or who do not follow the program rules may be subject to enforcement designed to encourage compliance. If not promptly addressed, failure to comply with requirements may lead to other more serious actions such as the assessment of administrative penalties or, in some instances, debarment from TDHCA's programs. Housing tax credit benefits are lost if a development fails to meet state and federal standards every year for each of the 15 years of the compliance period. Properties are then monitored for an additional 15 years to maintain affordability. HTC PROPERTIES VS MARKET RATE PROPERTIES Properties that receive HTCs must compete with nearby market rate developments for tenants. Like market rate properties, HTC properties are generally safe, secure, and well maintained. HTC properties often have amenities that are similar to or more attractive than market rate apartment complexes. Ambenwod Place in Longview, Texas, Pinnacle at North Chase In Tyler, Texas. Silver Spring at Forney in Forney, Texas. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Housing Options for Texas Communities Evaluating Needs and Supporting Developments Learning how the state evaluates community needs and reviews development applications may help you decide how to discuss new developments with your community and assess whether to give your support to a development. TDHCA reviews many applications and its review will include evaluating the following factors: 1) Is the application proposing a development in an area that needs more affordable housing and is the development economically feasible? 2) Is the developer proposing the housing an experienced developer who can provide a quality product? 3) Does the application include support from the local community and State Representative? 1: NEED ASSESSMENT AND FEASIBILITY Needs and feasibility assessments will help to determine whether or not the proposed property has the potential to be a successful affordable multifamily housing application and if the site is feasible for such a development. Suggested Needs and Feasibility Checklist [� Is there a need for additional affordable housing in the area? How many rent burdened households at or below 60% of Area Median Family Income ("AMFI°) are in need of affordable housing? [� Will the market support a demand for this development? What is your community already doing and what are your neighbors doing? What will your community look like in two years, five years, 10 years based on current growth projections? [� Is the site zoned for this type of housing and, if not, will it be able to obtain that zoning? Do your zoning laws still reflect your communitys priorities? Are your laws consistent with other growth plans and needs assessments? [� Are there adequate local services and utilities available to support this development? [� Is this affordable multifamily housing proposal for a single development or will it be part of a larger economic development plan or project that assists the community in meeting planned goals? [�( Will the affordable multifamily housing property serve special populations who, without this housing, will have less options for suitable housing in the community? Tools that may help your community in assessing housing needs locally could include: • Reviewing the market study completed for each HTC application; • Conducting a local needs analysis for affordable housing in your community;' • Using a local needs analysis to identify housing needs and to set goals for the number and type of units the community should actively pursue; • Drafting a robust housing component in your municipal or town plan; ■ Creating a vision for development and ensuring other laws and plans reflect that vision; • Participating in regional planning conversations to find out what neighboring areas are doing; ■ Identifying important land parcels in your community and opportunities for housing development and redevelopment; • Donating or selling municipal land for housing development; • Creating a housing team or focus group that can provide continual feedback on housing development proposals and issues; and/or • Helping to ensure the community is able to visualize future growth concerns and the effects of population density. Texas. Texas. Magnolia Trails Senior Living in Magnolia, Texas. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 2: DEVELOPER AND TEAM ASSESSMENT Does the developer and the associated development team have the experience, knowledge, and financial capacity to provide your community with a quality housing development that it can depend on for years to come? The success of HTC -supported affordable housing developments is greatly impacted by a developer's past experience and future vision. Local governments should ask developers to provide their past experiences and their goals for the development. Officials can also inquire about a developer's compliance status with the TDHCA. It is equally important to ask the developers about their team members, including any consultants, architects, builders, and investors. Developers should be able to provide histories of these team members. The following is a brief checklist offered for this aspect of the evaluation. Suggested Developer and Team Assessment Checklist RI Is the developer asking for a competitive (9%) HTC award or a non-competitive (4%) HTC award? f7f Has the developer done outreach with the community, assisted in educating people about the proposal, and solicited input? [� Does the developer have a track record in affordable housing? Are they in compliance with TDHCA's rules and expectations? Can they provide pictures of other developments they have constructed and explain how their development will meet the community's needs? [�( Are there significant unanswered questions? [�( Has the developer been listening to and responding to local input? v�:.--rte-�•�-'l�V.�t �-t iiii _rr..r'YAt TownPan; at Amarillo Apartments in Amarillo, Texas. Housing Options for Texas Communities Tools that may help your community in assessing development teams could include: ■ Asking the developer to attend community meetings where development needs will be discussed; • Asking to see pictures from a developer's portfolio; • Asking the developer to provide a development resume sharing the kinds of developments they have constructed previously (including styles, types, and services those developments offer); ■ Hosting community forums where the public will be able to ask and answer development questions about affordable housing; • Asking to see development site plans; • Asking TDHCA to share the developer's compliance history; • Asking a developer about their elected unit and common area amenities; and/or • Considering ways the municipality might more easily attract quality developers (e.g. reductions in permitting costs, "on the record" reviews that reduce appeals costs, setting proactive meetings with developers who have demonstrated a positive development track records, or inviting developers to engage in conversations about how to remove obstacles to creating affordable housing in the community). Mariposa Apartment Homes in Amarillo, Texas. 10 Tylor Grand in Abilene, Texas TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Housing Options for Texas Communities 3: SOLICITING AND EVALUATING COMMUNITY FEEDBACK Local governments — city councils and county commissioners' courts — have an Important role in the affordable housing process. They serve as a focal point for public input that will affect which affordable multifamily housing applications will receive HTC awards and move forward. Public attitudes toward the development of affordable housing are wide-ranging and fervently held. Some communities embrace it and advocate for it, and others have concerns and questions. You, as an elected official, will gather and incorporate community input into your decision-making about whether to support proposed developments. This will involve soliciting community feedback to ensure that any concerns or questions raised are answered prior to taking action on any requested resolution. Suggested Community Feedback Checklist Have I or has the developer engaged in educating the public about affordable housing? [� Does my community understand the differences in affordable housing models? [� Has a housing needs assessment or market analysis been shared and discussed with the community? [� Does my local government receive federal funds (e.g., Community Development Block Grant) and have we adopted a plan to affirmatively further fair housing? [f Is this proposed development consistent with that plan? [� Are reasons given to decline support founded in ideas that may be inconsistent with Fair Housing law? [� Will my response to opposition help to counter NIMBrsm ("Not In My Back Yard") sentiments or support them and will increasing population density and community needs change how I will respond to this type of opposition? Britain Way in Irving, Texas. Worth, Texas. Take the Affordable Multifamily Housing Quizi Country Lane Seniors in Waxahachie, Texas. Today, thanks to the high standards set by the Texas Legislature and TDHCA, you can't tell the difference between a new affordable multifamily rental housing property and a market rate development. Of the two photos below, which is the affordable multifamily property? ANSWER: Both properties are affordable multifamily rental properties funded in part through TDHCA! (L) Heritage Pointe in Austin. (R) South Acres Ranch in Houston. II TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Housing Options for Texas Communities FAQ Q: Why did this developer choose this particular site to Q: What happens if we do not give a developer a build affordable housing? resolution of support? A: First and foremost, affordable housing is real estate. Developers look to develop where they perceive there is a need. They look for property that has the characteristics that are appropriate to their particular development. They want to develop in a location where they will be a valued part of the community. Both the 9% and 4% HTC Programs are governed by rules (both the federal and state) that incentivize development of affordable housing in particular census tracts. Often communities want affordable housing in areas that may differ from the areas selected by applicants. This is generally a result of the scoring incentives TDHCA has created to ensure affordable housing is constructed in areas with concerted community revitalization or in areas that are rich in opportunities for prospective tenants and households. One point in scoring a 9% application can be the difference between a competitive and non-competitive application. Asking a developer to explain why they chose a particular site is a good way to begin understanding how your local community , can best support housing development and identify appropriate sites. Please visit this web site for more information about the HTC Program, including the Qualified Allocation Plan ("QAP") (Title 10 Texas Administrative Code, Chapter 11) and the Uniform Multifamily Rules (Title 10 Texas Administrative Code, Chapter 10): http:/Tinfo.sos.state.tx.us/pls/pub/readtaG$ext.ViewTAC?tac view=3&ti=10&pt=1 A: By law, 4% HTC transactions cannot move forward without a resolution or "no objection". Nine percent (9%) HTC applications that do not obtain a resolution of local support will likely be at a competitive disadvantage. TDHCA provides template forms for resolutions and communities are encouraged to use them. By state law, resolutions are required to contain very specific statements and sometimes communities inadvertently omit required language or use language that doesn't comply with specific legal requirements. Q: If we choose to support this development, in what ways can we do so effectively? A: While there are many ways to be supportive of an affordable housing development, there are three specific ways you can support an application. First, you can provide a resolution of "no objection" to a 4% HTC development or a resolution of support to a 9% HTC development. Second, you can facilitate meetings between the development team and the local community so they can obtain the support, input, approvals, and other items they need to move ahead. Third, you can support the development through a commitment of financial support, which can take many forms such as fee waivers, project - based vouchers, tax abatements, grants, or loans. Local governments should seek legal advice regarding the eligibility and structure of any financial incentive. Rules that govern these matters and related scoring criteria may be found in the QAP at 10 TAC §11.9(d)(2): hftp:/Tinfo.sos.state.b(.us/r)ls/i)ub/readtac$ext.TacPage?sl= R&app=9&p dir-&p doc=&p tloc=&p ploc=&pq=1 &p tac =&ti=10&pt=1&ch=11& I For more information, contact us: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS 221 East 11th St., Austin, TX 78701 512-475-3800 info@tdhca.state.tx.us PO Box 13941, Austin, TX 78711 800-525-0657 www:tdhca.state.tx us 2 Auxiliary aids and services are available upon request to Individuals with disabilities. Relay Texas: 800-735-2989 (TTY/TDD) and 711 (Voice). TDHCA is an Equal Housing Opportunity entity. All TDHCA programs are administered on a fair and equal basis regardless of race, color, national origin, religion, sex, disability, or familial status. The TDHCA is not in the position to provide legal advice or counsel. Local govemmental bodies and officials should consult their own qualified legal counsel. 04/10/17 12