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HomeMy WebLinkAbout09/22/2020 PACKETBEAUMONT TEXAS REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, SEPTEMBER 22, 2020 1:30 PM CONSENT AGENDA Approval of minutes — September 15, 2020 * Confirmation of board and commission member appointments Appointment of Erika Harris as an Alternate to the Planning and Zoning Commission removing Cory Crenshaw. The term will commence September 22, 2020 and expire September 3.0, 2021 (Mayor Becky Ames) A) Approve the purchase of a new employee workforce management software system from Kronos, Inc. B) Approve the purchase of a data storage system from Sirius Computer Solutions, Inc. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT Corey Crenshaw is to be removed as an Alternate to the Planning and Zoning Commission and is to be replaced by Erika Harris. The term will commence September 22, 2020 and expire September 30, 2021. 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 22nd day of September, 2020. - Mayor Becky Ames - 0 BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider a resolution approving the purchase of a new employee workforce management software system, Kronos Workforce Dimensions, from Kronos, Inc. for use citywide. BACKGROUND Human Resources, Finance, and Benefits currently use several different software solutions to manage the City of Beaumont's payroll, onboarding, timekeeping, ACA requirements, and other employee management needs. The existing software, in many cases, is more than twenty years old and no longer capable of providing the needed features as required by the City. Kronos' Workforce Dimensions suite will allow users to consolidate all the independent software packages into one integrated suite. In addition„ the Kronos Workforce Dimensions suite will allow users to track employee's time, accruals, benefits information, and other information more efficiently and accurately, resulting in a significant savings of time and resources. Kronos' Workforce Dimensions, along with multiple other software vendors, have. been reviewed. The Workforce Dimensions suite was found to provide all the necessary components to meet the City's needs. In addition, Workforce Dimensions is an upgrade of the City's existing software solution, allowing the existing timeclock hardware to stay in place: The cost of the Kronos Workforce Dimensions is $210,332.35, including a one-time cost of $68,477.50 and a first -year software subscription cost of $141,854.85. Second -year software subscription cost is approximately $189.139.80. The software will be purchased utilizing the US Communities/Omnia cooperative contract. FUNDING SOURCE General Fund, Municipal Court Technology Fund, and Water Fund. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of a Kronos Workforce Dimensions employee workforce management software system through the US Communities/Omnia cooperative contract, for use by all City Departments, from Kronos, Inc., of Lowell, Massachusetts, in the amount of $210,332.35. 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 22nd day of September, 2020. - Mayor Becky Ames - B BEAUMONT TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology. Services . MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider a resolution approving the purchase of a data storage system from Sirius Computer Solutions; Inc. for use citywide. BACKGROUND The current data storage system that supports all City 'departments went live in 2012. This system has reached its end of life and needs to be replaced.. The new system will provide updated technology for our current software products for storage of files and databases.. It will also provide additional storage to. accommodate growth. Pricing was obtained through the State of Texas Department of Information (DIR). DIR provides cities and political subdivisions with the means to purchase information technology at volume prices contracted under the procurement statutes of the State of Texas. Total project cost for the new system will be $150,000. FUNDING.SOURCE General Fund. 'RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of a data storage system through the State of Texas Department of Information Resources (DIR) contract, for use by all City Departments, from Sirius Computer Solutions, Inc., of Houston, Texas, in the amount of $150, 000.00 The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - BEAUMONT REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, SEPTEMBER 22, 2020 1:30 PM AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognitions * Public Comment: Persons may speak on scheduled agenda items 1-4, 6-9/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider an ordinance adopting the FY 2021 Budget by a record vote 2. Consider a resolution adopting the 2021 Capital Program 3. Consider an ordinance accepting the tax roll and establishing the property tax rate for the tax year 2020 (FY 2021) 4. Consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2021 Budget - 5. Consider a request fora Specific Use Permit to allow a gaming facility in a GC- - MD (General Commercial - Multiple Family Dwelling) District located at 4705 Magnolia Avenue 6. 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 3455 Sarah Street 7. Consider a resolution approving the write off of uncollectible delinquent accounts 8. Consider an ordinance granting a new solid waste franchise agreement to Neches Management Services 9. Consider amending Ordinance No. 20-031 related to the Public Health Emergency Disaster Orders for the City of Beaumont and opening certain City facilities COMMENTS Public Comment (Persons are limited to 3 minutes) Councilmembers/City Manager/City Attorney comment on various matter EXECUTIVE SESSION * To discuss and or deliberate economic development negotiations in accordance with Section 551.087 of the Government Code to wit; specifically: Suez Water Technologies and Solutions seeking incentives for their facility on College Street, west of the Beaumont Municipal Airport * Consider matters to deliberate the employment, evaluation, duties of a public officer or employee in accordance with Section 551.074 of the Government Code to wit; specifically: Kyle Hayes, City Manager Tyrone Cooper, City Attorney Tina Broussard, City Clerk Craig Lively, Chief Magistrate Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Minick at 880-3777. 1 September 22, 2020 Consider an ordinance adopting the FY 2021 Budget by a record vote BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider an ordinance adopting the FY 2021 Budget by a record vote. BACKGROUND Article VI, Section 8 of the City Charter states that "the budget shall be adopted by the favorable votes of at least a majority of all members of the Council." Section 9 states that "the budget shall be finally adopted not later than the twenty-seventh (27th) day of the last month of the fiscal year. Should the Council take no final action on or prior to such day, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council." Also, SB 1760 provides that if the tax rate exceeds the no new revenue tax rate, the vote on the ordinance setting the tax rate must be a record vote and must be approved by at least 60 percent of the members of the governing body. If the tax rate vote fails, then the lower of the no new revenue tax rate or prior year tax rate will be the tax rate. Section 102.007 of the Government Code requires the vote to adopt a budget to be a record vote. In addition, the adopted budget will contain a cover page that includes the statement on whether the budget will raise more, less or the same amount of property taxes as the prior year, the record vote of each member of council by name, property tax rates for the preceding and current fiscal years, the no new revenue tax rate, the no new revenue maintenance and operations tax rate, the voter approval tax rate, and the debt rate, along with the amount of debt secured by property taxes. This information is required to be posted on the city's website and remain there for one year after adoption of the budget. The FY 2021 Budget was submitted to Council on August 11, 2020 and reviewed during a work session on September 8, 2020. A public hearing was held on September 15, 2020, which met the requirements of the Charter and state law. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE REFERRED TO AS THE "ANNUAL APPROPRIATION ORDINANCE" ADOPTING A BUDGET FOR THE FISCAL PERIOD BEGINNING OCTOBER 1, 2020, AND ENDING SEPTEMBER 30, 2021, IN ACCORDANCE WITH THE CHARTER OF THE CITY OF BEAUMONT; APPORTIONING THE FUNDS OF THE CITY OF BEAUMONT; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH AND PROVIDING FOR SEVERABILITY. WHEREAS, the City Manager of the City of Beaumont submitted to the City Council a budget estimate for the revenues of said City and expenses of conducting the affairs thereof for the fiscal year beginning October 1, 2020, and ending September 30, 2021; and, WHEREAS, after notices and public hearings held in accordance with the requirements of the Charter of the City of Beaumont and the statutes of the State of Texas, the City Council is of the opinion that the budget, as attached hereto as Exhibit "A", should be adopted; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted. Section 2. That Exhibit "A" made a part hereof for all purposes is hereby adopted, ratified and approved as the operating budget document of the City of Beaumont. Exhibit "A" is hereby adopted and approved as the budget of all the correct expenses as well as the fixed charges of the City for the fiscal period beginning the 1 st day of October, 2020, and ending the 30th day of September, 2021, and the several amounts stated in Exhibit "A" as proposed expenditures shall be and become appropriated to the several objects and purposes therein named. Notices given, as required for the adoption of said budget, are hereby ratified. Section 3. That the sums indicated are appropriated from the following schedule of funds: a. General b. Debt Service C. Water Utilities d. Water Revenue Bond Reserve Fund e. Solid Waste f. Hotel Occupancy Tax g. Municipal Airport h. Municipal Transit i. Other Special Revenue j. Capital Reserve k. Fleet Management I. Employee Benefits M. General Liability Section 4. $131,940,700 (includes $1.5 million contingency) $15, 972,400 $53,548,500 $3,637,300 $12,664,900 $3,203,700 $1,095,000 9,524,400 $14,655,807 $7,507,700 $9,561,000 $23,964,000 $939,200 That the City Manager is hereby authorized to transfer budgeted funds from one line item to another line item provided the transaction is not an inter -fund transfer. Section 5. That if any section, subsection, sentence, clause or phrase of this ordinance or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall in no way affect the remaining portions of this ordinance, and to such end the provisions of this ordinance are declared to be severable. Section 6. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - CITY OF BEAUMONT, TEXAS Fiscal Year 2021 PROPOSED ANNUAL OPERATING BUDGET October 1, 2020 - September 30, 2021 City Council Becky Ames, Mayor W. L. Pate, Jr., At Large Randy Feldschau, At Large Taylor Neild, Ward I Mike Getz, Ward II Audwin M. Samuel, Ward III Robin Mouton, Ward IV Kyle Hayes, City Manager In accordance with Local Government Code Sec. 102.005(b): This budget will raise more revenue from property taxes than last year's budget by $1,460,000 or 2.81 % and included in that amount $549,767 is tax revenue to be raised from new property added to the tax roll this year. EXHIBIT "A" 2 September 22, 2020 Consider a resolution adopting the 2021 Capital Program BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer I MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider a resolution adopting the 2021 Capital Program. BACKGROUND Article VI, Section 20 states that "the Council shall, by resolution, adopt the Capital Program with or without amendment after the public hearing and on or before the twenty-seventh (27th) day of the last month of the current fiscal year." The Capital Program was originally submitted to Council on May 15, 2020. It was submitted to Council on August 11, 2020 with the Budget and reviewed during a work session on September 8, 2020. A public hearing was also held on September 15, 2020. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the 2021 Capital Program is hereby adopted. The Capital Program is substantially in the form attached hereto as Exhibit "A." The Capital Program was originally submitted to Council on May 15, 2020 with a public hearing held on September 15, 2020. 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 22nd day of September, 2020. - Mayor Becky Ames - BEAUMONT TEXAS August 11, 2020 City Council: The proposed Capital Program for Fiscal Years 2021-2025 is hereby submitted. The Capital Program is a plan prepared annually to provide for physical development within the City of Beaumont. The City Charter requires the submission of the Capital Program to Council three (3) months prior to the final date for submission of the budget, which is August 15th of each year. The Program is adopted with the annual operating budget. The Capital Program includes a listing of all Public Works, General Improvements and Water and Sewer improvement projects along with project descriptions and cost estimates. Public Works includes street and storm water drainage projects; General Improvements include general municipal buildings; facility and park improvements.. Water and Sewer includes all projects related to water and sewer infrastructure. Projects are classified in two phases: design or construction, or projects for consideration. A project classified in the design or construction phase is currently under design or construction or is projected to be within the recommended time schedule. Projects classified as for consideration includes projects that will be considered in the future as funding becomes available. Some projects in this category have been designed or have some costs incurred such as the acquisition of rights -of -way or real property. All available funding sources are considered including Certificates of Obligation, grant funding from various agencies, Water and Sewer Revenue Bonds, other financing methods and available cash. The City normally issues Certificates of Obligation (CO's) on an as needed basis, to provide sufficient cash flow for active Public Works and General Improvement projects. The City routinely issues Water Revenue Bonds for Water and Sewer projects on an as needed basis. This type of bond is serviced utilizing revenues from water and sewer customers. EXHIBIT "A" Through projects in the Capital Program, the City of Beaumont strives to enhance the quality. of life for its residents. This plan represents our best effort to identify projects that provide the greatest benefit to the citizens of Beaumont. Respectfully Submitted, Kyle Hayes "City Manager PUBLIC WORKS PROJECTS Design or Construction Phase FHWA Harvey Street Repairs Street Rehabilitation Program Washington - IH-10 to ML King Jr. Parkway Projects for Consideration Avenue A - Washington to College Broadway - ML King Jr. Parkway to 11th Doucette Avenue'- Sycamore Street to Van Buren Avenue Dowlen - College to IH-10 Fourth Street - US 69 to Ashley Gladys Street - IH-10 to Dowlen Highland Avenue - US 69 to Euclid Jim Gilligan - ML King Jr. Parkway to Jimmy Simmons Pointe Parkway North Voth Road - RFD to Tram Recommended Estimated Time Schedule Cost FY 2021 $ 2,750,000 [1] 7,500,000 31,200,000 [2] 1,900,000 1,400,000 800,000 29,900,000 6,500,000 3,500,000 3,800,000 1,500,000 4,800,000 1,400,000 FY 2021 - 2025 [1] Funded 80% by the Federal Highway Administration and the City match of 20% from remaining bond proceeds. [2] Funded with Airport Oil and Gas Revenue. Note - Unless otherwise noted, all projects would be financed through Certificates of Obligation. 9.qs GENERAL IMPROVEMENT PROJECTS Design or Construction Phase Fleet Facility Parking Lot Improvements Riverfront Park Improvements Tyrrell Park Visitors and Birding Center Projects for Consideration [1] Funded with available cash and bond proceeds. Work to be done in phases. [2] Funded 90% by FEMA and 10% by the City with remaining bond proceeds. [3] Funded with Hotel Occupancy Taxes. Estimated r,f%cf $ 2,500,000 [1] 28,150,000 [2] 1,750,000 [3] Recommended Time Schedule FY 2021 FY 2021 - 2025 9�R WATER AND SEWER PROJECTS Design or Construction Phase Estimated Cost Water Projects Dead End Flushing New Raw Water Delivery Line New Raw Water Pump Station Rehabilitation of West Elevated Storage Tank Water Line and Fire Hydrant Installation/Replacement Water Production System - Repairs Sewer Projects Assessment of Sewer Collection System Phase II - City Wide Lift Station Repairs Sewer Main Rehabilitation Spindletop, Forrest and Long, French Road, ML King Jr. Parkway, and Verone Street Lift Station Rehabilitation Wall and Avenue C Lift Station Wastewater Treatment Plant Automatic Transfer Switches Wastewater Treatment Plant Pump Replacement and Renewal Wastewater Treatment Plant Sludge Dewatering Phase II Wastewater Treatment Plant Trickling Filters Rehabilitation Water/Sewer for Street Projects Washington - IH-10 to ML King 150,000 15,000,000 [1] 21,000,000 [2] 1,100,000 1,000,000 1,400,000 650,000 300,000 6,000,000 1,100,000 1,900,000 450,000 1,150,000 650,000 2,000,000 3,700,000 Recommended Time Schedule FY 2021 [1] Federal funding has been applied for in the amount of $9.8 million. [2] Funded 90% by FEMA (pending) and 10% by the City with available cash or Water and Sewer Revenue Bonds. Note - Unless otherwise noted, all projects would be financed through Water and Sewer Revenue Bonds 237 WATER AND SEWER PROJECTS Projects for Consideration Sewer Projects Assessment of Sewer Collection System Phase III - City Wide Florida Avenue Interceptor Phase II Wastewater Treatment Plant - Pond No. 2 Rehabilitation Wastewater Treatment Plant Road Repairs Wastewater Treatment Plant Sludge Dewatering Phase III Water Protects West Side Water Treatment Plant Water/Sewer for Street Projects Dowlen - College to IH-10 Pointe Parkway North Estimated Cost $ 650,000 1,400,000 3,800,000 600,000 1,400,000 100,000,000 [1] 4,000,000 650,000 Note - All projects would be financed through Water and Sewer Revenue Bonds [1] CDBG Funds are being applied for with a 1 % match requirement, up to $100 million Recommended Time Schedule FY 2021 - 2025 238 PUBLIC WORKS PROJECTS AVENUE A — WASHINGTON TO COLLEGE The section of Avenue A, from Washington to College, is a two-lane; two-way collector roadway that has reached the end of its useful life and has many pavement failures. This section of roadway will receive an asphalt overlay. The estimated cost for the project is $1,900,000. BROADWAY STREET — MIL KING JR. PARKWAY TO 11T" This section of Broadway Street reached the end of its useful life and has many pavement failures. The roadway will receive an asphalt overlay. The estimated cost for the project is $1,400,000. DOUCETTE AVENUE — SYCAMORE STREET TO VAN BUREN AVENUE The section of Doucette Avenue, from Sycamore Street to Van Buren Avenue, is a two-lane, one- way residential roadway. This section has reached the end of its useful life and is beginning to experience pavement failures. This section of roadway will receive an asphalt overlay. The estimated cost for the project is $800,000. DOWLEN — COLLEGE TO IH-1 O The extension of Dowlen Road, to south of College, is needed to provide an additional north/south corridor in the developing southwest area of the City. Specifically, it will extend from College to IH- 10. This project will consist of the construction of a concrete curb and gutter roadway and installation of storm sewer lines, inlets, manholes, city utilities and sidewalks. The estimated cost for the project is $29,900,000. The cost for water infrastructure is shown under Water and Sewer Projects. FHWA HARVEY STREET REPAIRS Portions of Piney Point Lane, Pine Street, Tram Road, Griffing Road, Old Voth Road and Sherwood Drive were damaged during Tropical Storm Harvey. The Federal Highway Administration (FHWA) is providing 80% of the funding to perform the repairs with a 20% match of City funds. The estimated total cost for the repairs is $2,750,000. FOURTH STREET — US 69 TO ASHLEY The section of Fourth Street, from US 69 to Calder, is a four -lane Major Arterial, and from Calder to Ashley, is a two-lane roadway. The roadway has reached the end of its useful life and has many pavement failures. Fourth Street will receive an asphalt overlay. The estimated cost for the project is $6,500,000. 239 GLADYS STREET - IH-10 TO DOWLEN The section of Gladys Street, from IH-10 to Edson, is a four -lane concrete curb and gutter roadway. The section from Edson to Dowlen, is a two-lane asphalt roadway with curbs and gutters. This section has reached the end of its useful life and is beginning to experience pavement failures. This section of Gladys will receive an asphalt overlay. The estimated cost for the project is $3,500,000. HIGHLAND AVENUE — US 69 TO EUCLID The section of Highland Avenue, from US 69 to Euclid, is a four -lane Arterial roadway. This section has reached the end of its useful life and has many pavement failures. Highland Avenue will receive an asphalt overlay. The estimated cost for the project is $3,800,000. JIM GILLIGAN — ML KING JR. PARKWAY TO JIMMY SIMMONS The section of Jim Gilligan, from ML King Jr. Parkway to Jimmy Simmons, is a four -lane Arterial roadway. This section has reached the end of its useful life and is beginning to experience pavement failures. This section of roadway will receive an asphalt overlay. The estimated cost for the project is $1,500,000. POINTE PARKWAY NORTH Pointe Parkway North will directly tie into Northwest Parkway and provide a direct interconnection with Highway 105. The project will include the construction of a curb and gutter roadway, storm sewer infrastructure, water and sewer infrastructure and sidewalks. The estimated cost for the project is $4,800,000. The cost for water and sewer infrastructure is shown under Water and Sewer Projects. STREET REHABILITATION PROGRAM Improvements will be identified on an annual basis. Improvements may include concrete curb and gutter repairs; concrete pavement repairs; re -installation of brick pavers; and asphalt overlay projects. The City will spend an estimated $7,500,000 per year. VOTH ROAD — RFD TO TRAM The section of Voth Road, from RFD to Tram, is a two-lane Major Collector with an asphalt surface. This section has reached the end of its useful life and is beginning to experience pavement failures. Voth Road will receive an asphalt overlay. The estimated cost for the project is $1,400,000. WASHINGTON - IH-10 TO ML KING JR. PARKWAY Washington Boulevard from IH-10 to ML King Jr. Parkway is a heavily traveled four -lane roadway that provides access from the east to the west ends of Beaumont. The current roadway has a combination of continuous left -turn lanes, left -turn lanes at major intersections and sections with no left -turn lanes. The existing pavement has numerous failures and requires rehabilitation. The project has been divided into two phases. Phase I is complete from ML King Jr. Parkway to Amarillo Street. Phase II is from Amarillo Street to IH-10 and includes improvements to Corporate Drive and Executive Boulevard. The total cost for the project is $31,200,000. 94n GENERAL IMPROVEMENT PROJECTS FLEET FACILITY PARKING LOT IMPROVEMENTS The concrete paving and driveways have reached the end of their useful life and have been experiencing numerous pavement failures. This project consists of a reconstruction of parking lot areas, drive access, and the addition of a storm water collection system. The estimated cost for the project is $2,500,000; however, the project will be conducted in phases. Different phases of this project would be paid for with available cash or financed through Certificates of Obligation. RIVERFRONT PARK IMPROVEMENTS The City is working with FEMA and the Corp of Engineers on stabilizing the shoreline along Riverfront Park, which was substantially damaged as a result of Hurricane Harvey. The estimated cost for the stabilization is $28,150,000. This project will be primarily paid for with funding from FEMA and the difference is projected to be paid from Certificates of Obligation that were issued in 2013. The City is also planning to construct pedestrian/bike paths, landscaping and lighting improvements. TYRRELL PARK VISITORS AND BIRDING CENTER A portion of the Tyrrell Park Community Building (approximately 6,432 square feet, including the porch areas) will be restored to its near original condition. The back portion of the building (south wing) will be an open courtyard. The building will be used as a visitor center for those visiting Tyrrell Park and Cattail Marsh. The Visitors and Birding Center will have displays and information about Cattail Marsh; birding species identified at the natural wetlands; park amenities and area attractions. The estimated cost is $1,750,000. This project will be paid for by utilizing excess fund balance in the Hotel Occupancy Tax Fund. 241 WATER AND SEWER PROJECTS ASSESSMENT OF SEWER COLLECTION SYSTEM PHASE II & III — CITY WIDE Develop and implement a multiyear program for achieving and sustaining compliance with TCEQ and U.S. EPA requirements for control of sewer overflows from the collection system. Phase II includes flow monitoring and development of a hydraulic model. The estimated cost for the project is $650,000. Phase III includes additional flow monitoring and calibration of the hydraulic model. The estimated cost for this project is another $650,000. DEAD END FLUSHING Federal and State regulations require the City of Beaumont to maintain chlorine residual in the water distribution system. The dead-end lines in the system are required to be flushed on a monthly basis to aid in maintaining the required disinfectant residual and protecting public health and safety. The estimated cost for the project is $150,000 per year. FLORIDA AVENUE INTERCEPTOR PHASE 11 The Florida Avenue Interceptor was constructed in 1947. Phase II is approximately 2,400 linear feet consisting of 21, 24 and 27-inch concrete pipe. The interceptor extends from the Florida Avenue Lift Station to University Drive. This project was initiated due to failing joints, and a large number of cavities in the existing concrete pipe causing infiltration of storm water, interrupting service, increasing the number of overflows and impacting the Florida Avenue Lift Station's efficiency. The estimated cost for the project is $1,400,000. LIFT STATION REPAIRS The City of Beaumont owns, operates, and maintains 76 sewer lift stations throughout the City. This project will rehabilitate deteriorated stations that require constant maintenance. The estimated cost for the project is $300,000 per year. NEW RAW WATER DELIVERY LINE If the New Raw Water Pump Station is built, a new 42-inch raw water line will need to be constructed from the pump station to the Water Production Plant located on Pine Street near Interstate 10. The estimated cost of this project (construction and engineering) is $15,000,000. The City has applied for federal funding in the amount of $9.8 million to be used towards the cost of this project. Water Revenue Bonds will pay for the project if federal funds are not approved and will make up any difference between federal funds that may be provided and the total project cost. 242 NEW RAW WATER PUMP STATION A new 30 MGD (million gallons per day) Pump Station would be constructed near Pine Street and Collier's Ferry Park. A new pump station is necessary in order to have a more resilient raw water source from the Neches River. The Lawson Pump Station, as well as the Loeb Pump Station, failed during Hurricane Harvey due to flooding. This new pump station would be constructed on higher ground and serve as the City's main pump station for raw water. The estimated cost of this project (construction; engineering and special services) is $21,000,000. The City is trying to secure funding and approval from FEMA (Federal Emergency Management Agency) to pay for most of the project. Water Revenue Bonds will pay for the project if FEMA funds are not approved and will make up any difference between FEMA funds that may be provided and the total project cost. REHABILITATION OF WEST ELEVATED STORAGE TANK This project will rehabilitate the interior and exterior of the West Elevated Storage Tank located just east of IH-10 at Laurel Avenue. The estimated cost for the project is $1,100,000. SEWER MAIN REHABILITATION The City of Beaumont owns, operates, and maintains 743 miles of sewer lines that range in size from 6 to 72 inches. Some of these lines were built in the early 1950's and have exceeded their life expectancy. This project will aid in rehabilitating 60,000 linear feet of sewer pipe per year for a five- year period. The estimated cost for the project for fiscal year 2021 is $6,000,000. SPINDLETOP, FORREST AND LONG, FRENCH ROAD, ML KING JR. PARKWAY AND VERONE STREET LIFT STATION REHABILITATION This project will provide for the rehabilitation of five sewer lift stations. They are the Spindletop, Forrest, Long, ML King Jr. Parkway, and Verone Street lift stations. The estimated cost for the project is $1,100,000. WALL AND AVENUE C LIFT STATION This project will provide for the construction of a new control building at the Wall and Avenue C lift station, and installation of all new electrical equipment, new submersible sewage pumps, and modification to the existing wet well structure. The existing control equipment, located inside the existing dry pit, will be removed and salvaged. The estimated cost for the project is $1,900,000. WASTEWATER TREATMENT PLANT AUTOMATIC TRANSFER SWITCHES This project will replace the existing manual transfer system for both generators at the plant with a medium voltage and a low voltage automatic transfer switch, including the installation of a prefabricated building to house the new equipment. The estimated cost for the project is $450,000. WASTEWATER TREATMENT PLANT - POND NO.2 REHABILITATION This project will remove accumulated solids, re -grade pond bottom, and install new aeration equipment. The estimated cost for the project is $3,800,000. 243 WASTEWATER TREATMENT PLANT PUMP REPLACEMENT AND RENEWAL This project will provide for the replacement of five pumps and four motors at the Wastewater Treatment Plant that deteriorated and need major repairs. The estimated cost for the project is $1,150,000. WASTEWATER TREATMENT PLANT ROAD REPAIRS The roads inside the Wastewater Treatment Plant were constructed in the early 1950's. The roads have reached the end of their useful life and are beginning to experience pavement failures due to major construction projects inside the plant. The roads will receive an asphalt overlay. The estimated cost for the project is $600,000. WASTEWATER TREATMENT PLANT SLUDGE DEWATERING PHASE II & III Phase II will reconstruct the existing sludge drying beds, including new concrete walls, media, and underdrain piping. The estimated cost for the project is $650,000. Phase III will clean the sludge digesters and replace the existing diffusers at floor level, including new piping, lines, and modifications to accompany the floor changes. The estimated cost for this project is $1,400,000. WASTEWATER TREATMENT PLANT TRICKLING FILTERS REHABILITATION The four tickling filters at the plant have deteriorated and need major rehabilitation. This project will rehabilitate all the structural elements. The cost of this project is $2,000,000. WATER LINE AND FIRE HYDRANT INSTALLATION / REPLACEMENT The City of Beaumont owns and operates 865 miles of water lines. Sixty percent of the water lines have shown signs of deterioration. This pro -active project will replace deteriorated water lines prior to failure to ensure uninterrupted service and adequate fire protection to the customers. The estimated cost for the project is $1,000,000 per year. WATER PRODUCTION SYSTEM — REPAIRS The City owns, operates, and maintains a water system that consists of canals, deep wells, booster pump stations, water treatment equipment and a complex control system which requires constant maintenance, repairs, and replacements. The estimated cost for the project is $1,400,000. WEST SIDE WATER TREATMENT PLANT A new water treatment plant to be located on the west side of Beaumont and outside of flood prone areas would treat surface water provided by the LNVA. The plant would be designed to provide 15 million gallons per day with the ability for the plant to be scaled up in the future, if needed. Once online, this plant would replace the Loeb ground water treatment plant. The estimated cost for this project is $100,000,000. The City plans to submit a grant application to the State of Texas, General Land Office, for up to $100 million, with the City's match requirement at 1% or $1 million. The City's portion would be paid for out of available fund balance or water revenue bonds. 244 WATER/SEWER for STREET PROJECTS DOWLEN — COLLEGE TO IH-10 This project will replace approximately 650 linear feet of water lines with all related appurtenances. In addition, this project will extend 16,500 linear feet of water and 16,500 linear feet of sanitary sewer lines to serve proposed future developments. The estimated cost for the project is $4,000,000. POINTE PARKWAY NORTH The project will install approximately 3,050 linear feet of 10, 15, 24-inch sanitary sewer lines and 3,350 linear feet of 6 and 8-inch water lines with all related appurtenances. The estimated cost for the project is $650,000. WASHINGTON - IH-10 TO MIL KING This project will rehabilitate approximately 7,800 linear feet of sanitary sewer lines and replace 27,000 linear feet of 'water lines with all related appurtenances. The estimated cost for the project is $3,700,000. 245 3 September 22, 2020 Consider an ordinance accepting the tax roll and establishing the property tax rate for the tax year 2020 (FY 2021) BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer-4 MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider an ordinance accepting the tax roll and establishing the property tax rate for the tax year 2020 (FY 2021). BACKGROUND The Jefferson Central Appraisal District submitted the Certified Appraisal Roll on July 22, 2020, in the amount of $7,883,980,459. Based on this taxable value, a property tax rate of $0.71/$100 valuation for the tax year 2020 (FY 2021) is proposed, which is the current rate. The tax rate would be apportioned $0.506837/$100 assessed valuation to the General Fund and $0.203163/$100 assessed valuation to the Debt Service Fund. As required by Section 26.05 of the Tax Code: The tax rate consists of two components, each of which must be approved separately by a record vote and at least 60 percent of the governing body must vote in favor of the ordinance. That ordinance must include the following statement: "THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 2.8% AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $20." FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE ACCEPTING THE TAX ROLL FOR THE CITY OF BEAUMONT; ESTABLISHING A TAX RATE; PROVIDING FOR LEVYING, ASSESSING AND COLLECTING OF AD VALOREM TAXES FOR THE TAX YEAR 2020 (FY 2021); PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. WHEREAS, the Jefferson County Appraisal District has furnished to the City of Beaumont the certified tax roll for the City of Beaumont as of July 22, 2020 to be $7,883,980,459.00; and, WHEREAS, the City Council finds that the tax roll submitted by the Jefferson County Appraisal District should be accepted and that a tax rate in the amount of $0.71 per each $100 of value for the tax year 2020 (FY 2021) should be established based upon said roll; and, WHEREAS, THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE; AND WHEREAS, THE TAX RATE WILL EFFECTIVELY BE RAISED BY 2.8 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $20; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted. Section 2. That the tax roll submitted to the City Council by the Jefferson County Appraisal District, a summary of which is attached as Exhibit "A", and showing the total net taxable assessed value of all property within the City to be $7,883,980,459.00 is hereby approved and accepted by the City of Beaumont. Section 3. That there shall be and is hereby levied and shall be assessed and collected for the tax year 2020 (FY 2021), for municipal purposes only, an ad valorem tax rate of $0.71 on each $100 worth of property value located within the city limits of the City of Beaumont made taxable by law, which said taxes, when collected, shall be for the purposes hereinafter set forth as follows: General Fund $0.506837/$100 Debt Service Fund $0.203163/$100 Section 4. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 5. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - 91 September 22, 2020 Consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2021 Budget BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider an ordinance ratifying the budgeted property tax increase reflected in the FY 2021 Budget. BACKGROUND Section 102.007 of the Local Government Code includes the following: "Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law." The current tax rate of $0.71 per $100 assessed will remain at $0.71 per $100 of assessed valuation. The budgeted revenue from property taxes is expected to be $1,460,000 more than FY 2020. Of this amount, $549,767 is attributable to new property added to the tax roll this year. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE RATIFYING THE BUDGETED PROPERTY TAX INCREASE REFLECTED IN THE FY 2021 BUDGET. WHEREAS, the proposed FY 2021 budget will raise more total property taxes than last year's budget by $1,460,000.00 or 2.8%; and, WHEREAS, the adoption of a budget that will raise more revenue from property taxes than in the previous year requires a vote separate from and in addition to the vote to adopt the budget; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted. Section 2. That the property tax increase reflected in the budget which will raise more total property taxes than last year's budget by $1,460,000.00 be and the same is hereby, by separate vote, ratified. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - 5 September 22, 2020 Consider a request for a Specific Use Permit to allow a gaming facility in a GC -MD (General Commercial - Multiple Family Dwelling) District located at 4705 Magnolia Avenue BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager C1�3 PREPARED BY: Chris Boone, Planning & Community Development Director MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider a request for a Specific Use Permit to allow a gaming facility in a GC -MD (General Commercial - Multiple Family Dwelling) District located at 4705 Magnolia Avenue. BACKGROUND Jisan Makanojiya has requested a Specific Use Permit to allow a gaming facility at 4705 Magnolia Avenue. The applicant wishes to have 50 gaming machines at this location. The hours of operation for the business would be 8 a.m. to 10 p.m. Security would be provided by on site surveillance. There was no mention of which age groups would be allowed in certain areas or for what time periods. It should be noted that gaming facilities that have five or fewer machines tend to be considered accessory in nature, when part of a primary use, and as such tend to result in fewer negative impacts on surrounding land uses. However, larger game rooms with dozens of machines take on the scale of a small casino and as a result, require careful consideration as to their location and compatibility with surrounding land uses. Some of these considerations include compatibility with other land uses, noise, traffic as well as safety considerations. As such, proximity to schools and especially residential uses should be carefully considered in the review of gaming facilities. This property is immediately adjacent to residential single-family dwellings and is within the vicinity of the Lucas Pre-K Center. At a Joint Public Hearing held on September 9, 2020, the Planning Commission recommended 9:0 to deny the request for a Specific Use Permit to allow a gaming facility at 4705 Magnolia Avenue. FUNDING SOURCE Not applicable. RECOMMENDATION Denial of the request. SPECIFIC USE PERMIT APPLICATION BEAUMONT, TEXAS (Chapter 28, City Codes) TO: THE PLANNING COMMISSION AND CITY COUNCIL, CITY OF BEAUMONT, TEXAS APPLICANT'S NAME: J ISAN MAKANOJ IYA APPLICANT'S ADDRESS: 35 CADENCE CRT., RICHMOND, TX 77469 APPLICANT'S PHONE #: (281)782-3658 FAX #- NAME OF PROPERTY OWNER: FA H E E M KH U WAJA N S QQ ,�A \ VAJ W-y L) ADDRESS OF PROPERTY OWNER:4705 MAGNOLIA AVE., BEAUMONT, TX 77701 LOCATION OF PROPERTY:4705 MAGNOLIA AVE., BEAUMONT, TX 77701 LEGAL DESCRIPTION OF PROPERTY: LOT NO. 1 , 2, AND 3� L4 OR BLOCK NO.2 ADDITION HEGELE V 3,150 MRJCT NUMBER OF ACRES 0. 5 TRACT PLAT SURVEY NUMBER OF ACRES For properties not in a recorded subdivision, submit a copy of a current survey or plat showing the properties proposed for a specific use permit, and a complete legal field note description. PROPOSED USE: GAMING SITE (� ZONE.GCMD ATTACH A LETTER describing all processes and activities involved with the proposed uses. ATTACH A SITE PLAN drawn to scale with the information listed on the top back side of this sheet. ATTACH A REDUCED 8 %:" X 11" PHOTOCOPY OF THE SITE PLAN. THE EIGHT CONDITIONS listed on the back side of this sheet must be met before City Council can grant a specific use permit. PLEASE ADDRESS EACH CONDITION IN DETAIL. ATTACH THE APPROPRIATE APPLICATION FEE: LESS THAN''/: ACRE.................................................................$250.00 '/z ACRE OR MORE AND LESS THAN 5 ACRES...................$450.00 5 ACRES OR MORE...................................................................$650.00 I, being the undersigned applicant, understand that all of the conditions, dimensions, building sizes, landscaping and parking areas depicted on the site plan shall be adhered to as amended and approved by City Council. T, SIGNATURE OF APPLICANT: SIGNATURE OF PROPERTY FILE NUMBER: CITY OF BEAUMONT PLANNING DIVISION 801 MAIN STREET, ROOM 201 BEAUMONT, TX 77701 Phone - (409) 880-3764 Fax - (409) 880-3110 6/17/2020 TE 6/17/2020 PLEASE MAKE NOTE ON REVERSE SIDE OF CONDITIONS TO BE MET REGARDING THE STIR PLAN AND LETTER OF PROPOSED USES AND ACTIVITIES. Game Room Processes and Activities Processess and Activities: The following staff will be conduction daily tasks throughout the day. 8am — Security Personnel will open the building and deactivate store alarm. In addition the security role will be to make sure the patrons as well as staff are safe. Security will be on premise 24 hours/ 7 days a week on duty to ensure the property is well guarded and patrolled every hour. Security will maintain a log book noting all observations and incident reports. 8:30 am — Cleaning personnel will sanitize and vacuum the store 2 times a day. 9:00 pm — Game room attendant will count their register and assist customers with change request. Attendant is only required to give customers change ONLY. Attendants throughout the day will be required to insure all permits and decals are properly inventoried on a daily bases. Compliance folder should be readily available upon the request of code enforcement arrival on premise lOpm- gaming site is closed and doors are locked and all patrons and staff are to exit the building except Security personnel. 8 CONDITIONS The specific use will be compatible with other properties around the vicinity. The specific usage will not be injurious to the use and enjoyment of other properties, nor will it diminish or impair property values within the immediate vicinity. 2. The establishment of the specific use will not impeded the normal and orderly development and improvement of surrounding vacant properties. i13. The facility is adequate for utilities, access roads, drainage and other necessary supporting facilities. All the proper .,;.; signage are displayed and will be confirmed upon the inspection from City of Beaumont Fire Marshall, Electrical, :. and Building Code enforemcent. 4. The design, location and arrangement of all driveways and parking spaces provided are safe and convenient for pedestrians and the general public. The driveway is painted and labeled for proper vehicle movement in and out of the parking lot. 5. Proper trespassing, lottering, and other applicable signs are in place to prevent nuisance for odor, fumes, and noise disturbances. 6. The facility is equipped with high powered LED lighting for maximum light coverage all around the building. The lighting will be directional so that it will not disturb or adversely affect the neighboring properties. 7. Biweekly our facility has landscaping and grasscutting services to insure harmony and compatibility with adjacent properties. Our landscaping vendor is Albert Landscaping services in Beaumont, tx. 8. The proposed use is in accordance with the comprehensive_ plan and will be validated during the monthly meeting. oo�Fn iIAE EgsF uooA wm oasr so+ Y-lo' ACPG4L ftlR EIOSL CCOR ZINC FlP� FAST COON I rx sr scN m Fnsr srn EXISTING STORAGE ROOM 4 EXISTING NULLK-IN COOLER Mo a sous G cldnes STORAGEAREA b Yi GAMEROOM i PROPOSED MREHOUSE I FOR GAMEROOM EQUIPMENT I PROPOSED EXISTING SMOKE ' GENERAL RETAIL SHOP AREA tr SALE - - — AREA PROPOSE OFFICE oseM r-r at LAJ GiCE °0f vI "`" Dofe:lo-22-1e FLOOR PLAN PROPOSED RESTORATION OF EXISTING BUILDING r y vn SHEET 4705 Magnolia St, Beaumont, TX 77703 SCALE AS SHOWN P- i/ 2 �� p�o>..mnov Duns — � 1 — PP IO�wIFYGV�nCN ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A GAMING FACILITY IN A GC -MD (GENERAL COMMERCIAL -MULTIPLE FAMILY DWELLING) DISTRICT LOCATED AT 4705 MAGNOLIA AVENUE IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. WHEREAS, Jisan Makanojiya has applied for a specific use permit to allow a gaming facility in a GC -MD (General Commercial -Multiple Family Dwelling) District at 4705 Magnolia Avenue, being Lots 1-4, Block 2, Hegele Addition, Beaumont, Jefferson County, Texas, containing 0.482 acres, more or less, as shown on Exhibit "A," attached hereto; and, WHEREAS, the Planning and Zoning Commission of the City of Beaumont considered the request and is recommending denial of a specific use permit to allow a gaming facility in a GC -MD (General Commercial -Multiple Family Dwelling) District at 4705 Magnolia Avenue; and, WHEREAS, the City Council is of the opinion that the issuance of such specific use permit to allow a gaming facility is in the best interest of the City of Beaumont and its citizens; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and, Section 1. That a specific use permit to allow a gaming facility in a GC -MD (General Commercial -Multiple Family) District at 4705 Magnolia Avenue, being Lots 1-4, Block 2, Hegele Addition, Beaumont, Jefferson County, Texas, containing 0.482 acres, more or less, as shown on Exhibit 'A" is hereby granted to Jisan Makanojiya, his legal representatives, successors and assigns, as shown on Exhibit "B," attached hereto and made a part hereof for all purposes. Section 2. That the specific use permit herein granted is expressly issued for and in accordance with each particular and detail of the site plan attached hereto as Exhibit "B" and made a part hereof for all purposes. Section 3. Notwithstanding the site plan attached hereto, the use of the property herein above described shall be in all other respects subject to all of the applicable regulations contained in Chapter 28 of the Code of Ordinances of Beaumont, Texas, as amended, as well as comply with any and all federal, state and local statutes, regulations or ordinances which may apply. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - ; el AW Lot ZN, V '16 r- I Abstract No. 385 Jefferson County, Texas 20' Alley aaj- walls I - -22,29 I e- o COVERED CONCRETE i is I PROPOSED 016 . 09 Mr NOTE: 1. The Plumbing Contractor must comply with the City of Beaumont building code requirements. 2- The Plumbing Contractor must verify all dimensions prior to construction -E]QSnhri\'R°POSED E• %IDE 1I1110YIPN° °•as+®°Ix� VATEa ` INSTALL M TO THE IWtI.VM SYSIa.I. F MEitll PROPOSm i- PVO Sa1m 40 W=ToN UNE Notes: Magnolia Avenue 1. This survey was done without the benefit of a Title Commitment. Not all easements, whether of record or not, were researched at the time of this 60' R.O.W. survey. io'a m�0we., e 2. All bearings derived from Texas State Plane Coordinate System, South Central Zane, No. 4204. PAW IC�r�sla V7r m.•r. I• 1Q PROPOSED SITE PLAN & WATER oaia:lan-la PROPOSED RESTORATION OF EXISTING BUILDING <yz A _ , AND SEWER UTILITIES SHEET 4705 Magnolia St, Beaumont, TX 77703 O0° ' SCALE AS SHOWN P- /2 T September 22, 2020 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 3455 Sarah Street BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works and Technology MEETING DATE: September 22, 2020 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 3455 Sarah Street. IZTOAX"M1109111 Wheeler Commercial has secured one (1) potential buyer who is interested in purchasing city -owned property located at 3455 Sarah Street. The building and property is the former Melton YMCA location. After reviewing the Earnest Money Contract, it is in the best interest of the City of Beaumont to execute the Earnest Money Contract with Troy Marsaw, Owner of On Site Counseling with a cash offer in the amount of $325,000.00. Troy Marsaw will deposit $3,000.00 as earnest money to Texas Regional Title for a feasibility period.of thirty (30) days. If Troy Marsaw terminates the earnest money contract, $500.00 of the earnest money will not be refunded to Troy Marsaw. The date of closing will be thirty (30) days after the expiration of the feasibility period. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. dotloop signatur!:verification: ddp.usM/Xl0-W1u-gSK4 I.1 TEXAS REACTORS COMMERCIAL CONTRACT - IMPROVED PROPERTY USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®, INC. IS NOT AUTHORIZED. Wexxs Association of REALTORSiD, Inc. 201111 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 Main St, Beaumont, TX 77701-3648 Phone: (409)880-3152 E-mail: antoinette.hardy{-beaumonttexas.gov Fax: Other: Buyer: Troy Marsaw Address: 3007 Caroline St., Houston, TX 77004 Phone:. (713)942-8100- E-mail: t marsaw@yahoo.com Fax: Other: 2.' PROPERTY: A. "Property" means that real property situated in Jefferson County, Texas at 3455 Sarah Street, Beaumont, TX 77705 (address) and that is legally described on the attached Exhibit A or follows: 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 (TXR-1930) or (7XR-1946).) 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 ......................... $ 325,000 9/ 39e-gg�OA—F 6:37 PM CDT 0911020 B. Sum of all financing described in Paragraph 4 ................... . . .� dotloop verified 6tlo pverifiec MCDT C. Sales price (sum of 3A and 3B) ............................ $ 9;1 /2-34&080:0�- r 325 000 �1A1(�1 6:37 PM CDT 09/1020 (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer �•{ dotloop verified g 697PMCDT "_{T� Page 1 Of 14 do[Ioop veri0ec Lee Wheeler,400 Neches Beaumont TX 77701 Phone: 4098993300 Fax 4098993301 3455 Sarah Try Lee Wheeler Produced with zlpForm® by zipLogix 18070 Fifteen Mile Road. Fraser. Michigan 4BO28 www.zioLoOix.com - dodoop signature verification: dtlp.usMXl0-WIju-g5K4 3455 Sarah Street, Beaumont, TX 77705 Commercial Contract - Improved Property concerning 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 (TXR-1931). ❑ B. Assum tiioow. In accordance with the attached Commercial Contract Financing Addendum (TXR-1931), Buyer will assume the existing promissory note secured by the Property, which balance at closing will be $ C. Seller Financing: The delivery of a promissory note and deed of trust from Buyer to Seller under the - terms of the attached Commercial Contract Financing Addendum (TXR-1931) in the amount of 5. EARNEST MONEY: A. Not later than 3 days after the effective date, Buyer must deposit $ $3,000.00 , as earnest money with Texas Regional Title Company (title company) at 7676 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: H (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. S. TITLE POLICY, SURVEY, AND UCC SEARCH: A. Title Policy- (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 ❑X 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. XR- 1 - a krv\—, (T 180 ) 4 1-18 Initialed f r Identification by Seller and BuyPage 2 of.14 Produced with zipForrnS by zlpLoglx 18070 Fifteen Mile Road. Fraser. Michigan 48026 www.zioLooix.cam 34555arah - Troy - dotloop signature verification: dtlp.us/WXIO-WIju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street Beaumont, TX 77705 B. Survey: Within 30days after the effective date: X❑ (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/NSPS Land Title Survey standards, or (ii) Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. (f>trse> ❑ (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/NSPS Land Title Survey standards, or (ii) Texas Society of, Professional Surveyors' standards for a Category 1A survey under the appropriate condition. ❑ (3) Seller will deliver to Buyer and the title company a true and correctcopy of Seller's most recent survey of the Property along with an affidavit required by the- title company for approval of the existing survey. If the existing survey is not acceptable to the title company, ❑ Seller ❑ Buyer (updating party), will, at the updating party's expense, obtain a new or updated survey acceptable to the title company and deliver the acceptable survey to the other party and the title company within 30 days after the title company notifies the parties that the existing survey is not acceptable to the title company. The- closing date will be extended daily up to 30 days if necessary for the updating party to deliver an acceptable survey within the time required. The other party will reimburse the updating party (insert amount or percentage) of the cost of the new or updated survey -at closing, if closing occurs. 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. Buver's_Obiections to the Commitment Shy and UBC Search: (1) WitlffJV Udays after Buyer receives the last of the commitment, copies of the documents e g evidencthe 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 N" zone as defined by FEMA). If the commitment or survey is revised or any new document evidencing a title exception is delivered, Buyer may object to any new matter revealed in such revision or new document. Buyer's objection must be made within the same number of days stated in this paragraph, beginning when the revision or new document is delivered to Buyer. If Paragraph 6B(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. (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer Page 3 of 14 Produced with zipForm® by zlpl-oglx 18070 Fifteen Mlle Road, Fraser, Michigan 48026 wvnv z7ot.60 x%x9m 3455 Samh- Troy dotloop signature verification: dtlp.us/WXl0-W1Ju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street. Beaumont, TX 77706 (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. 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. Feasibili Period: Buyer may terminate this contract for any reason within 30 days after the effective date (feasibility period) by providing Seller written notice of termination. (1) Independent Consid only one box and insert amounts.) o9no2o 0 (a) If Buyeri nd 3 aragraph 7B, the earnest money will be refunded to Buyer less � doll pve Ifie , 0/20 o $ 0 �ha( %eller will retain as independent consideration for Buyers 09/1020 6:37 PM CDT unrestricted rght to terminate. Buyer has tendered the independent consideration to Seller dotloop verified 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(1) or if Buyer fails to deposit the earnest money. Buyer will not have the right to terminate under this Paragraph 7B. ❑ (b) 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 7130 or if Buyer fails to oav the independent consideration, Buver will _not _have the right to terminate under this Paragraph 7B. (2) Feasibility Period Extension: Prior to the expiration of the initial feasibility period, Buyer may extend the feasibility period for a single period of an additional days by depositing additional earnest money in the amount of $ with the title company. If no dollar amount is stated in this Paragraph or if Buyer fails to timely deposit the additional earnest money, the extension of the feasibility period will not be effective. 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 turn 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 (TXR-1801) 4-1-18 Initialed for Identification by Seller. and Buyer, Page 4 of 14 Produced with zipFontQD by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 wytw zioLoaix.ctxn 3455 Sarah -Troy dotloop signature verification: ddp.us/WXIO-WIju-gSK4 Commercial Contract- Improved Property concerning 3455 Sarah Street, Beaumont, TX 77705 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. Pro ery Information: (1) Delivery of Property Information: Within 10 days after the effective -date, Seller will deliver to Buyer: (Check all that apply.) ❑(a) a current rent roll of all leases affecting the Property certified by Seller as true and correct; X (b) copies of all current leases, ineluding eny FAIneFal le a 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, utility, maintenance, and management agreements relating to the ownership and operation of the Property; (0. 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; ❑Q) 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 and personal property tax statements for the Property for the previous 2 calendar years; (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.) X❑. (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; ❑X (b) delete or destroy all electronic versions of those items described in Paragraph 7D(1) that Seller -delivered to Buyer or Buyer copied in any.format; and X❑- (c) deliver to Seller 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 213 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.. (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer ) + , Page 5 of 14 Produced with zipForm® by zipLogix iauo Fifteen Mile Road, Fraser, Michigan 48126 wvnv.zioLooix.com 3455 Sarah -Troy dodoop signature verification: dtlp.us/WXIO-WIju-g5K4 Commercial Contract - Improved Property concerning 3455 Sarah Street Beaumont. TX 77705 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 or damages; (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 certificafions contained in the current version of TXR 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: Wheeler Commercial Cooperating Broker, Universal Home Solutions, LLC Agent: Lee Y. Wheeler, III Agent: Patrice Maftaliano Address: 400 Neches Address: 6332 FM 1960 E, Ste C Beaumont, TX 77701 Humble, TX 77346 Phone & Fax: (409)899-3300 Phone &. Fax- (281)435-8977 E-mail: 1wheelera-wheelercommercial.com E-mail: patrice.mattaliano@gmall.com -License No.: 579943 License No.: 9000562 Principal Broker: (Check only one box) Cooperating Broker represents Buyer. XI represents Seller only. Hrepresents 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.) 0 (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. ❑X (2) At the closing of this sale, Seller will pay: (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer Page 6 of 14 Produced with zipFom@ by zipLogix 113070 Fifteen Mile Road; Fraser, Michigan 46026 www.zioLociix.com 3455 Sarah -Troy dotloop signature verification: dtlp.us/WXl0-WIju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street. Beaumont, TX 77705 Principal Broker a total cash fee of- e3.000 % of the sales price. Cooperating Broker a total cash fee of: 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. 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 30 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 ❑ general XX 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) service, utility, 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 with 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/ (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buye x, Page 7 of 14 Produced with zipForm® by zipl.ogix 18070 Fifteen Mile Road, Fraser. Michigan 46026 wwnv Zip oaix corn 3455 Sarah -Troy dotloop signature verification: dtlp.us/WXl0-WIju-gSK4 Commercial Contract- Improved Property concerning 3455 Sarah Street. Beaumont, TX 77705 (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. 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: Seiler 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 expensesand 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.. 14. PRORATIONS: A. 1 Prorations: (1) Interest on any , rents, and any expense reimbursements from tenants will be prorated through the closing date. X i,, (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer Page 8 of 14 4f�\ Produced with zipFomiO by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 wwMai LjLogix.com 3455 Sarah - r-y dotloop signature verification: dtlp.us/WXl0-WIju-g5K4 Commercial. Contract - Improved Property concerning 3455 Sarah Street, Beaumont, TX 77705 PT"- pw3pvpqn� C. Rent and Security Deposits: At closing, Seller will tender to Buyer all security deposits and the following advance payments received by Seller for periods after closing: prepaid expenses, advance rental payments, and other advance payments paid by tenants.. Rents prorated to one party but received by the other party will be remitted by the recipient to the party to whom it was prorated within 5 days after the rent is received. This Paragraph 14C survives closing. 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) OX enforce 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 15B, 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 7B(1), as liquidated damages and as Buyer's sole remedy; or (2) enforce specific performance, or seek such other relief as may be provided by law, or both. 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 713(1), will be refunded to Buyer; (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 ur the policy for the loss. (TXR-1801) 4-1-18 Initialed for Identification by Seller and. Buyer 1 K , Page 9 of 14 Produced with zipFomvg by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 tw W,zipLWx,cM 3455 Sarah -Troy dotloop signature verification: dtlp.us/WX10-W1Ju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street. Beaumont. TX 77705 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 7B(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'sclosing costs, andany 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 party, 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 7B(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. 19. MATSRIAL MGT& Te 4he beat ef SelleF'S {} (2) emy,pending eF thimeatened litigatien, eandeMnefien, OF assessme (TXR-1801) 4-1-18 Initialed for Identification by Seller Page 10 of 14 Produced with zipFonnO by zipLagix 18070 Fifteen Mile Road, Fraser, Mulligan 48026 www.z1pLoaix.com 3455 Se,ah -Troy dotloop signature verification: dtlp.us1WXl0-W1ju-gSK4 Commercial Contract - Improved Property concerning 3455_Sarah Street, Beaumont, TX 77705 _ . NOW 001- RA 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 Seller's e-mail address stated in Paragraph 1. XI B. Buyer also consents to receive any notices by e-mail at Buyer's e-mail address stated in Paragraph 1. 21. submit the dispute te Ffledietlen befeFe Fess4ing te apbitFatioH el:.lifigetien and will equally share the e 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 this 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.) X (1) Property Description Exhibit identified in Paragraph 2; (2) Commercial Contract Condominium Addendum (TXR-1930) or (TXR-1946); (3) Commercial Contract Financing: Addendum (TXR-1931.);. (4) Commercial Property Condition Statement (TXR-1408); (5). Commercial Contract Addendum for Special Provisions (TXR-1940); . X (6) Addendum for Seller's Disclosure of Information on Lead -Based Paint and Lead -Based Paint Hazards (TXR-1906); (7) Notice to Purchaser of Real Property in a Water District (MUD); (8) Addendum for Coastal Area Property (TXR-1915); (9) Addendum for Property Located Seaward of the Gulf Intracoastal Waterway (TXR-1916); X (10)lnformation About Brokerage Services (TXR-2501); and (11)Information About Mineral Clauses in Contract Forms (TXR-2509); and X (12)Drainaae District 6 Notice (TXR-1801) 4-1-18 Initialed for Identification by Seller. and Buyer��, Page 11 of 14 Produced with zipFonn® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 wanv.zioLoaix.com 3455 Sa:+h-Troy dotloop signature verification: dt1p.usMXI0-WIju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street, Beaumont, TX 77705 (Note: Counsel for Texas REALTORS@ has determined that any of the foregoing addenda which are promulgated by the Texas Real Estate Commission (TREC) or published by Texas REALTORS@ are appropriate for use with this form.) E. Buyer XD 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 certificatedarea 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 (the Addendum for Coastal Area Property (7XR-1915) may be used).. 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. (the Addendum for Property Located Seaward of the Gulf Intracoastal Waterway (7XR-1916) maybe used). 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 depicts its boundaries and ETJ. To 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 (the Addendum for Seller's Disclosure of Information on Lead -Based Paint and Lead -Based Paint Hazards (7XR-1906) maybe used). (TXR-1801) 4-1-18 Initialed for Identification by Seller and Buyer Page 12 of 14 Produced with zipForm® by zipLogix 16070 Fifteen Mile Road, Fraser, Michigan 48026 wyny.iiDLoaix.com 3455 Sanh -Troy dotloop signature verification: dt1p.us/WX10-WIju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street. Beaumont. TX 77705 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. 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. 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." K. LICENSE: party to a the licens e 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. Seller. Cily of Beaumont Buyer:Troy Marsaw By: By (signature): Printed Name: Kyle Hayes Title: City Manager By: By (signature): Printed Name: Title: (TXR-1801) 4-1-18 By: i By (signat r ): Printed Name: Trot/ Marsaw Title: By: By (signature): Printed Name: _ Title: Produced with zlpFom4D by zipLogix 18070 Fifteen We Road, Fraser, Michigan 48026 wwwzioLooix.com Page 13 of 14 3455 Sarah-Tmy dotloop signature verification: dtip.us/WXl0-WIju-gSK4 Commercial Contract - Improved Property concerning 3455 Sarah Street, Beaumont, TX 77705 AGREEMENT BETWEEN BROKERS (use only if Paragraph 9B(1) is effective) Principal Broker agrees to pay (Cooperating Broker) a fee 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: By: Seller's attorney: Cooperating Broker: By: ATTORNEYS Buyer's attorney: Address: Address: Phone & Fax: Phone & Fax: E-mail: 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. the title company sends to Buyer. Buyer sends to Seller. H 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: (TXR-1801) 4-1-18 Page 14 of 14 Produced with zipForrn(DbyzipLogix 18070FifteenMile Road, Fraser. Michigan 46026 wym.&Loaimom 3455Sarah -Troy dotloop signature verification: dtlp.us/WXI0-Wiju-gSK4 EXHIBIT A J.34n,g a pailion afthe Noah tine -Ha f(S. '%) of Woao. Nmemn (i Q) in the M. C. CsArtmtr'14 `ht &UM'sion in the J, W, 8ulluck Lague of the City of Bmimont, Jefferson County, 'i mas:, and described by metes and bounds as BEGINt INO at an "f on pin in the Worst lino orf1 lock Nimteuen (l )narking the, division of the Nvnh one-half .fix) and sout one-half (S. V) of Block Nhneteem (1 ; said iron pin being the Soiftliwest comner. oftha, North One-half (N, '. '/�) and the Nonhwok corder of"the Soufiii on -'MU, (S. "R)a THSNCB,.North. 0'08!30m Bast afortg the -Wgist, fine. of Oxe Nortbone-half P, a/z) of Block Nineteen (I �). a distmx'e of two Imndmd ninety and sixty-t live Otte h.m.kd a -di as 14et 90.65.) to a Point f*or comeF, sak Point baffi . South . '0�.P f t (1 s') from tho urt����st �oiraer of Said Ala f tm�-� (] 9�'; THENCE, R.9st fift h feet Y ' fmm and parallel to the North firm of said Flock Nin ezn (f9) a d.istwice 04'six buindred nit ety-soveta and five -tenths feel (697-5E to a Point, said point being Allom feet (] 51 from the, euist Ume of said Block netaer)' ('19);. IPENCF� South 0009"30"'West fifteen. tbet (1-5) from attd Paul lei to the. cast line of -said block Ninewtmn (19) a (H.-Mance. ire 6m htmdrod ninety and sixty- five one hmxh— dtl feet (2190.6Tj 16 F)")il7t ffff �n �e d�idiit,� ia�ie between the OT& One-11RI `1?, ) EM4 the S- (Alth MAlalf (S. of 1mlc TFIENC,E, 'mast along the dividing line between the: North -mod South one- half (n, and S. Vr) of-Blook Ninetemi (I P) a distance of'sl�X severh mid fire -tenths feet (61,17.5') to the �Iav : of k-gh eaitig, said IMICA eGntain.ing f6,ar and sixL f ve one Iwrldre0ho (4.65) acir's, mare 01° less, dodoo ROOT -pp verified 14— 09,10,30 637 PM CDT ROOT-7QIN JHZT•59ZW dotloop signature verification: dtip.us1Ml0-W1ju-gSK4 APPROVED BY THE TEXAS REAL ESTATE COMMISSION 10-10-11 121111 ADDENDUM FOR SELLER'S DISCLOSURE OF INFORMATION EQUAL ROUMIZ ON LEAD -BASED PAINT AND LEAD -BASED' PAINT HAZARDS OPPORIUNRY AS REQUIRED BY FEDERAL LAW CONCERNING THE PROPERTY AT 3455 Sarah St Beaumont (Street Address and 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): X❑ (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): ❑X (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. ❑X 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. ❑X 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; (a) 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 best of thei kno d that the information they have provided is true. and accurate. Buyer NJ Date Seller Date Troy Mars Kyle Hayes Buyer Date �R?~/LLO��.[t?IR�LsTfCN dodo9o30 09/1520 3: 3:30 PM CDT UPEY-YAW-CMBU-ILCP Other Broker Date Patrice Mattaliano Seller Listing Broker The form of this 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 forms 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://w m.trec.texas.gov) (TXR 1906) Date Date OP-L Lee Wheeler, 400 Neches Beaumont Tx 77701 Phone: 40989933W Fax 4093993301 3455 SRrah -Troy Lee Wheeler Produced with ApFenT O by ApLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zioLoaix.com dodoop signature verification: dtlp.us/WXI0-WIju-gSK4 - 11/2/2015 1211, Information About Brokerage Services omTexas law requires all real estate licensees to give the following information about 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 (SELLERILANDLORD): 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 confidential 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 lwheelerCaD-wheelercommercial.com (409)899-3300 Licensed Broker/Broker Firm Name or License No. Email Phone Primary Assumed Business Name Lee Y. Wheeler, III 467056lwheeler[n)wheelercommercial.com (409)899-3300 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/ Associate Sales Agent/Associate's Name License No. License No. Email Email BuyedTenant/Seller/Landlord Initials Date Phone Phone Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov TXR-2501 IABS 1-0 Date Lee Wheeler, 400 Neches Beaumont TX 77701 Phone: 4093993300 Faic4098993301 3155 Sarah -Troy Lee Wheeler Produced with zipFonn® by zipLogix 18070 Fifteen Mile Road. Fraser. Michigan 48026 www.71pLocix.wnn dotloop signature verification: dtlp.us/WX10-Wiju•gSK4 11/2/2015 Information About Brokerage Services EQu LMUSM Texas law requires all real estate licensees to give the following information about oaromuxn• 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 BUYERrrENANT: The broker becomes the buyeritenant'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 confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so bylaw. 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. Universal Home Solutions LLC 9000562 jaltic@jlarelestate.com 281-744-2511 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Ammimari Business Name John Altic 572287 jaltic@jlarelestate.coin 281-744-2511 Desianated Broker of Firm License Nn Email Phone Ronnie Dees 550034 roruue@roniedees.com 281-610-5627 Licensed Supervisor of Sales Agent License No. Email Phone Associate Patrice Mattaliano 638427 patrice.mataliano@gmail.com 281-435-8977 Sales Agent/Associate's Name License No. Finaii Phone 09r1 or20 08-11-2020 ?L rPi nant/Seller/Landlord Initials Date Regulated by the Texas Real Estate Commission Information available at wwwArec.texas.gov TXR-2501 IABS 1-0 Date Lee Wheeler,4001%leches Beaamon1TX7770I Phone: 4098993300 Fax 4098993301 3455 Sarah - Troy Lee Wheeler Produced with zipFcan@ by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.ziuLooix.com doticop signature verification: dt1p.us/WXI0-W11u-g5K4 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 any bonds or portion of bonds 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 out 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 refunding 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. The legal description of the property which you are acquiring is as follows: See Exhibit A Date (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 acknowledges receipt of the foregoing notice at or prior to execution of a binding contract for the purchase of the eal property descr' ed in such notice or at closing of purchase of the real property. Date (Buyer) C 0 U N S E L I N G. Intended use for property 3455 Sarah Street Beaumont, TX 77708 With our continued success for over 18 years in the Houston area, On Site Counseling will bring our services to Beaumont and surrounding areas. On Site Counseling will provide optimum, systemized, behavioral and mental healthcare, support and counseling services under one roof. The spacious faciIitywill offer top-tiercounseling and behavioral and mental health care outpatient services to clients of all ages. On Site Counseling provides cost-effective services to clients in a central location and will welcome patients, on a voluntaryand involuntary basis, with the support of an innovative, professional team of medical doctors, psychiatrists, nurse practitioners, clinical psychologists, along with licensed clinical social workers and counselors. It is an alternative to visiting the emergency room when you or a loved one is experiencing a mental health crisis. In addition to our day to day services, we will offer year-rou nd- programs to benefitthe communityat-large including butnotlimited to summeryouth camps, individual and group therapy, educational and informational workshops to support mental health, and sporting activities to promote overall health. We will also provide transportation forthose in need to participate. Please see ourwebsite www.onsite-counseling.com foradditional information orfeel free to call at anytime. 3007 Caroline Street Houston, TX 77004-2822 (PH) 713-942-8100 (FAX) 713-533-1408 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 Troy Marsaw, owner of On Site Counseling, for the sale of property located at 3455 Sarah Street for a cash offer of $325,000.00; 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 22nd day of September, 2020. - Mayor Becky Ames - September 22, 2020 Consider a resolution approving the write off of uncollectible delinquent accounts BEAUMONT TEXAS TO: FROM: PREPARED BY: MEETING DATE: REQUESTED ACTION: BACKGROUND City Council Kyle Hayes, City Manager Todd Simoneaux, CFO September 22, 2020 Council consider a resolution approving the write off of uncollectible delinquent accounts. This request is in accordance with the write-off policy approved by City Council on December 21, 1999. The policy gives Council the final authority to write-off an individual account receivable identified as uncollectible when the balance due exceeds $1,000.00. Accounts included are for transactions prior to September 2018 which have been sent to the collection agency and collection efforts have been unsuccessful for more than one year. A summary by receivable type is shown below. Litter Charges - $1,850.00 Original charge dates range: 2018. Hazmat Charges - $2,408.99 Original charge dates range: 2016. EMS Ambulance Charges - $104,111.67 These charges from ambulance transports include uninsured claims or co -pay and deductibles that the customer is responsible for. The original charge dates range from 2005 to 2018 and accounts have been uncollectible for at least one year. Weed Abatement Charges - $126,823.15 Original charge dates range from 2014 to 2018. Total to be written off - $235,193.81 If at any time an account becomes collectible after having been written off, the receivable shall be adjusted accordingly. The balance of the account shall be reinstated and payments shall be applied to that balance. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves, as an internal accounting procedure, the write- off of the following delinquent accounts totaling $235,193.81 for which each individual account exceeds $1,000, as shown on Exhibit "A" attached hereto: ; and, Litter Charges $1,850.00 Hazmat Charges $2,408.99 EMS Ambulance Charges $104,111.67 Weed Abatement Charges $126,823.15 BE IT FURTHER RESOLVED THAT these debts are not being extinguished or forgiven and if, at any time, an account becomes collectible after having been written off, the receivable shall be adjusted accordingly and the balance of the account shall be reinstated and payments shall be applied to that balance. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - WRITE OFF REQUEST - SEPTEMBER 2020 ACCOUNTS $1000 and GREATER BY TYPE LITTER HAZMAT EMS WEED ABATEMENT TOTAL ALEXANDER MARY N ALLIED INVESTORS MORTGAGE ARCELLA ATTRA, JOHN JASON ESTATE BAKER, THOMAS BALLARD, JOE D BARNETT CHAPEL CHURCH OF BEAUMONT CHARTER ACADEMY BLAND, DONNIE LOUIS ET UX BLUITT, LIPRINA BODWIN JOHN B JR BOLT, JULIUS ARNANDO BREWER, CHARLES BROSNAHAN, BRUCE E BROUSSARD, KELLI BAGLEY BROUSSARD, MICHEAL BROWN GRANT, MILDRED BROWN, MARCUS BRUMLEY, ROSNIQUE BURSEY, NATALIE CARTER VERLINE (DECEASED) CAUDLE, W T CESAR, PAUL CHAMPAGNE, JOSEPH CHURCH, THOMAS BRETT CITIZEN, PATRICK WAYNE COCO, CONCETTA COLA PETER EST COMMERCIAL METALS CO P/S CORM IER JAMES T ESTATE CRAVENS, PATRICK A CROSLAND, EUGENE L DEJEAN, RANISHA 1,850.00 2/2018 - 12/2018 2,408.99 8/2016 - 8/2016 104,111.67 12/2005 - 8/2018 126,823.15 9/2014 - 7/2018 235,193.81 1,117.50 1,183.00 1,764.55 1,461.00 1,588.00 1,190.00 1,736.06 3,229.32 1,374.00 1,600.00 1,199.84 1,553.50 1,031.72 3,959.65 3,570.89 1,606.50 5,600.00 1,552.50 1,631.50 1,326.64 1,775.35 1,441.00 1,185.50 3,021.50 1,838.70 1,529.50 1,366.35 1,086.25 1,356.00 1,102.50 1,875.75 1,400.00 1,547.50 EXHIBIT "A" DICKSON (DECEASED), ETHEL 3,076.20 DIVINE HOUSE OF REFUGE 1,686.00 DORSEY, LURAEA 1,768.00 DOSS, STEPHEN LEE 1,608.00 DRAGUSTINOVIS, CHRISTY 1,529.50 DUPLECHAIN IRENE 1,631.09 DURDEN, LINDA 1,624.00 ECHOLS GALLOGHAN, REGENA 1,490.50 EGLAND, GENEVA 1,140.00 FIELDS, JOHN E 1,064.50 FLORES, CLEMENTE 3,120.00 GOMEZ, ADOLFO 2,617.94 GRAY, CHELSIE 1,250.00 GUIDRY, RACHIEL 1,214.41 GUILLORY, TREY 1,571.50 HAMM, HOYT E 2,611.35 HANDY J R 1,004.00 HARMONY MISSIONARY BAPTIS 1,092.00 HAYNES ALFRED L & TAMARA 1,095.40 HENDRICKSON, JEANIE M 1,005.00 HENSLEY, MAX 2,320.50 HOLMAN, CASSANDRA 2,236.90 JACKSON FRANKIE D 1,392.60 JACKSON, BRANDI 1,532.50 JACKSON, LARRY 1,594.00 JOHNSON, JAMES ANTHONY 2,457.00 JOHNSON, SELENA (DECEASED 1,410.00 JONES, TREVIN ASPEN 2,408.00 JULIUS, BEULAH SCOTT 1,256.25 KING MARGERY KOFFMAN (EST 1,037.50 LANDRY ESTATE, L C 1,071.20 LANE, JERRY 2,615.00 LEONARD, TINA MARIE 1,625.00 LEWIS, OSCAR 1,511.50 LONG ESTATE, KEVIN RICHAR 3,116.25 MAPLE GROVE BAPTIST CHURC 1,025.40 MCKINSEY, RUSTIN CHASE 1,638.50 NECHES LODGE NO 593 BPOE 1,733.00 OBERG, JEREMY D & JESSICA 1,460.00 PALMER GWENDOLYN ANN 1,034.30 PARSONS JAMES A ESTATE 1,052.50 PEACOCK, JOSEPH 1,079.50 PEVETO, MARVENA ANN 1,562.00 PINEDA, ABELARDO 1,685.00 PRIVATE NATIONAL MORTGAGE 1,029.00 PULLEY, ALBERT 4,164.50 R & B HOMES LLC 1,502.00 REDEAU, LORI 1,900.00 RICHARD, CHARLES K 2,949.00 RICHARD, THERESA K 1,059.00 ROSSYION, JOSHUA 1,525.00 RUIZ, JOSE 1,349.75 SAM JR, EUGENE 1,587.00 SARKER, AKHIL C 2,080.00 SAUNDERS, ROBERT 2,309.00 SAVOIR, FALLAN GAIL 4,957.50 SIBLEY, THOMAS J 3,182.75 SIMMONS JAMES 1,532.50 SINCLARE, MARIANNE 1,748.67 SINGLETON, TAMESHA 1,532.50 STATEWIDE CAPITAL INVSTMT 1,053.50 STONEHAM, JESSICA 1,603.00 STORBECK, TIMOTHY J 1,436.50 STOTSKY, SEAN 1,158.22 STYLISH TRADITIONAL BUILD 1,278.00 SUNLIGHT BAPTIST CHURCH 3,121.00 SYLVESTER, KERRY 1,139.62 TATUM MYRTLE LAVERGNE 1,198.75 TAYLOR, EDDIE DANIEL 1,566.00 TERRELL, LAVERT BLANCHETT 2,852.50 THIBODEAUX JOSEPH 1,329.00 THOMAS, DEBORAH 3,075.00 THOMAS, MARK CURTIS 4,602.00 THOMPSON KEN M LLC 1,017.20 THOMPSON, REGINALD JAMES 1,600.00 TONEY, JASMINE 2,357.00 TRANS -ATLAS FINANCIAL INC 1,094.06 TREVINO, DANIEL W 1,680.45 TRUCKING SOLUTIONS UNLIMI 2,408.99 TURNER, JOSEPH 1,592.50 VARNEY, DECEASED GUY T 1,020.00 VASSAR, KATIE ELLEN BURD 1,598.00 VIDAL, GARLAND 2,310.00 VILLALOBOS, TOMAS (DECEAS 2,019.25 WARREN BROTHERS INC 2,530.00 WARREN SHIRLEY 1,497.50 WASHINGTON, REGINA 4,001.00 WATTS ROSS DECEASED 1,281.25 WENNSTROM FRANCES ET AL 1,351.24 WESTBROOKS, SHELLEY SHANTELL LI 1,596.00 WILKINSON, MARJORIE 1,526.50 WILLIAMS, GEORGE (DECEASE 1,096.00 WILLIAMS, NOLAN 1,042.50 WILSON L C ET UX 1,678.25 YOUNG, CARLNISHA DELOR 3,000.50 YOUNG, GWENDOLYN 1,607.50 ZENN, JASMINE 1,611.00 0 September 22, 2020 Consider an ordinance granting a new solid waste franchise agreement to Neches Management Services BEAUMONT TEXAS TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider an ordinance granting a new solid waste franchise agreement to Neches Management Services. 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. Nine entities currently have nonexclusive franchise agreements with the City and are doing business in this area. Neches Management Services has requested that the City Council grant them a franchise agreement. Neches Management Services manages construction and disposal services for clients locally with an office at 1440 Spindletop Ave. Beaumont, TX 77705. The proposed agreement 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 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 consecutive weeks in a newspaper of general circulation in the City. All publication costs are paid by the franchisee. Attached is a copy of the franchise agreement for your review. This is the final reading. FUNDING SOURCE A franchise fee of seven percent (7%) of gross receipts will be paid to the City. RECOMMENDATION Approval of the ordinance. ORDINANCE NO. ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR SOLID WASTE COLLECTION AND TRANSPORTATION SERVICES TO NECHES MANAGEMENT SERVICES. WHEREAS, Neches Management Services (the "Company") has requested a franchise to operate a solid waste collection and transportation service within the City of Beaumont, Texas (the "City");.and, WHEREAS, the City desires to grant such franchise; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. Grant of Authority There is hereby granted by the City to Neches Management Services 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. Section 3. Rates The Company shall establish rates for service which are uniform as to customer class based upon such criteria as type of waste, container size, frequency of collection, and distance of travel. The Company shall file its initial rates for service with its acceptance as required herein. Such rates shall, unless modified by the City, be effective with the effective date of this franchise. Any modifications in rates by the Company shall first be filed with the City Clerk and City Attorney and shall be effective thirty (30) days after such filing unless modified by City as provided herein. Nothing herein shall prevent the Company from charging uniform rates which are less than the rates filed with the City. The City shall have the right to establish rates charged by Company for services performed hereunder, after notice and hearing. Rates established by the City shall be sufficient to allow the Company an opportunity to earn a reasonable return on its invested capital used in providing such services. Section 4. Franchise Fee The Company shall pay to the City, on or before the fifteenth (15th) day of each month, a sum equal to SEVEN PERCENT (7%) of the gross revenues received for service in the previous month as payment for the use of the City's streets, alleys and rights-of- way. The payments herein provided do not relieve Company from the payment of ad valorem taxes, special assessments, charges, or other fees applicable to the public generally. City shall have the right, at any reasonable time, to audit the books and records of the Company and the Company is hereby required to make such books and records available at the request of City. Upon written acceptance, the Company shall furnish to the City a listing of customers served, including customer 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 S. 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 C 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. Section 13. Notices Where written notices are provided for in this ordinance, same shall be sufficient to notify Company when provided by certified mail to: Neches Management Services 1440 Spindletop Ave. Beaumont, Texas 77705 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 18th day of August, 2020. PASSED BY THE CITY COUNCIL of the City of Beaumont on second reading this the 8th day of September, 2020. PASSED BY THE CITY COUNCIL of the City of Beaumont on final reading this the 22nd day of September, 2020. - Mayor Becky Ames - ACCEPTANCE: Neches Management Services (Company Owner/Representative) September 22, 2020 Consider amending Ordinance No. 20-031 related to the Public Health Emergency Disaster Orders for the City of Beaumont and opening certain City facilities BEAUMONT TO: City Council FROM: Kyle Hayes, City Manager MEETING DATE: September 22, 2020 REQUESTED ACTION: Council consider amending Ordinance No. 20-031 related to the Public Health Emergency Disaster Orders for the City of Beaumont and opening certain City facilities. BACKGROUND On July 28.,- 2020, the City Council approved Ordinance No. 20-031 that provided for the closure of the following City facilities: Lakeside Center, Downtown Library, Civic -Center, Event Centre, Julie Rogers. Theatre, Jefferson Theatre, Sterling Pruitt Center, and the Community Centers. This item was placed on the agenda at the request of Mayor Ames and Councilmember Neild. ORDINANCE NO. ENTITLED AN ORDINANCE OF THE CITY OF BEAUMONT AMENDING ORDINANCE 20-031 TO AMEND THE PUBLIC HEALTH EMERGENCY DISASTER ORDERS FOR THE CITY OF BEAUMONT; ALLOWING THE OPENING OF CITY FACILITIES; PROVIDING FOR SEVERABILITY; PROVIDING. FOR A PENALTY AND PROVIDING FOR REPEAL. WHEREAS, on the 16t" day of March 2020, the Mayor issued a Proclamation, as was amended March 19, 2020 and March 23, 2020, declaring a State of Disaster for the City of Beaumont, Texas resulting from the imminent threat to the public health and the potential loss of life from the spread of COVID-19 in the City of Beaumont; and, WHEREAS, the City Council, on March 23, 2020, passed Ordinance No. 20-010 extending the Declaration of Local Disaster due to public health emergency until such time as the Declaration is terminated by Ordinance of the City Council; and, WHEREAS, Governor Abbott recently issued Executive Orders relating to the expanded reopening of services as part of a safe, strategic plan to Open Texas in response to the COVID-19 pandemic; and, WHEREAS, the Executive Orders suspend the applicable provisions of the Texas Government Code Chapter 418 and any other relevant statutes to the extent that local officials do not impose restrictions inconsistent with the Governor's Orders, provided that local officials may enforce the Executive Orders as well as local restrictions that are consistent with the Executive Orders; and, WHEREAS, the City Council, on May 5, 2020, passed Ordinance No. 20-018 amending Ordinance No. 20-010 to amend the Public Health Emergency Disaster Orders for the City of Beaumont deferring to the Executive Orders of the Governor and opening certain City facilities; and, WHEREAS, the City Council, on May 26, 2020, passed Ordinance No. 20-020 amending Ordinance No. 20-018 to amend the Public Health Emergency Disaster Orders for the City of Beaumont opening other City facilities; and, WHEREAS, the City Council, on July 28, 2020, passed Ordinance No. 20-031 amending Ordinance No. 20-020 to amend the Public Health Emergency Disaster Orders for the City of Beaumont providing for the closure of certain City facilities; and, WHEREAS, the City Council, on September 8, 2020, passed Ordinance No. 20- 045 amending Ordinance No. 20-031 to amend the Public Health Emergency Disaster Orders for the City of Beaumont opening the Beaumont Children's Museum leaving other facilities closed to the public; and, WHEREAS, the City of Beaumont has seen a decrease in the number of reported positive COVID-19 cases and additional deaths in the past several weeks; and, WHEREAS, it is in the best interest of the citizens of Beaumont to review the City of Beaumont Declaration of Local Disaster Orders addressing the closure of City facilities in the City of Beaumont to minimize the spread of the coronavirus; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and, Section 1. THAT Ordinance No. 20-031 amending the declared State of Local Disaster be amended to further amend the adopted Declaration Orders as follows: That Section 1 of the March 23, 2020 amendment to the Declaration, attached hereto as Exhibit "A," as amended is hereby repealed terminating previous closure orders, thereby allowing the opening of all City facilities not yet open to the public by prior action of the City Council. That Section 2 of the March 23, 2020 amended Declaration as extended shall remain in effect until terminated. Section 2. The City of Beaumont suspends the charging and collection of all fares for service for the Beaumont Municipal Transit System. Beaumont Municipal Transit shall enforce the social distancing requirements. Travel shall be limited to the essential travel as outlined herein. Section 3. Temporary Outdoor Restaurant Operations Permit: The City of Beaumont will allow the use of outdoor seating in parking lot areas of restaurants using tents, umbrellas or other covering upon application and the issuance of a permit. Section 4. That the proclaimed State of Public Health Disaster for the City of Beaumont shall continue in effect until terminated by the City Council. Section 5. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 6. Any person who shall violate any provision of this ordinance shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined in an amount not to exceed $2,000.00. Each day of violation shall constitute a separate offense. Section 7. This ordinance is passed as an emergency measure and pursuant to local authority for emergency measures and shall become effective immediately upon its approval. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of September, 2020. - Mayor Becky Ames - CITY OF BEAUMONT SECOND AMENDED DECLARATION OF LOCAL DISASTER DUE TO PUBLIC HEALTH EMERGENCY WHEREAS, on March 18, 2020, pursuant to Texas Government Code, Section 418.108(b), the Mayor, as Emergency Management Director, declared for the City of Beaumont a local disaster due to public health emergency caused by the threat of the transmission and spread of COVID-19 In the City of Beaumont; and, WHEREAS, due to the ongoing threat of the spread of the COVID-19 virus and the need to update measures to reduce the potential of exposure and transmission of the disease, it is necessary to amend the Declaration of Local Disaster; NOW, THEREFORE, BE IT PROCLAIMED BY THE MAYOR OF THE CITY OF BEAUMONT, TEXAS: THAT the March 16, 2020 Declaration of Local Disaster as amended March 19, 2020 be amended and supplemented as follows: Section 1. City Facilities. in keeping with the directives of the CDC, the following City facilities will be closed to the public: City Hall, the Downtown Library, Tyrrell Historical Library, Civic Center, Event Centre, Julie Rogers Theatre, Jefferson Theatre, Lakeside Center, Sterling Prultt Center, community centers, Athletic Complex, Tennis Center, the Municipal Court and the Convention and Visitors Bureau facilib(. The City Council will considerthese closures at the Council meeting held Monday, March.23, 2020 In the City Council Chambers at 1:30 p.m. The following facilities will remain open to the public for normal operations: Henry Homberg Golf Course, Municipal Transit, City parks, Elmo Willard Library, Theodore Johns Library, and the Miller Library. No special events will be scheduled at these facilities. Section 2. That the operation of the competitive bidding requirements of the City of Beaumont are hereby suspended and removed for a period of ninety (90) days from and after March 23, 2020, unless the State of Disaster is earlier terminated, provided however,,that Insofar as practical bids, quotations, or estimates"of material, labor an d other costs for purchases, goods, works, and the like described shall be dillgenily solicited and procured before entering Into contracts therefore and such contract, if awarded, shall be made to the lowest, best or expedient bid, quotation, or estimate received. The determination of the lowest, best, or expedient bid, quotaflon, or estimate shall be within the sole discretion of the City Manager or his designee and his decision shall be final.' signingSection 3. This amendment and supplement shall take effect immediately upon EXHIBIT "A" J f ORDERED thisp23 ay of March, 2020. A EST: - Alf y r Bec Ames - r City Clerk e����®d`�� 61