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HomeMy WebLinkAbout11/22/2022 PACKET� � r MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, NOVEMBER 22, 2022 1:30 PM rt-me"I R CALL TO ORDER Invocation Pledge Roll Call Proclamations, Presentations and Recognitions Public Comment: Persons may speak on the Consent Agenda and Items 1-4 Consent Agenda CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in mature and are considered non -controversial. 'rile Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A. Approval of the November 15, 2022 City Council Meeting Minutes B. Confirmation of board and commission member appointments Jiin Broussard would be appointed as Chairman to the ad hoc Downtown Planning & Advisory Committee. (Mayor Robin Mouton) REGULAR AGENDA 1. Consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2023, and authorizing the Mayor or City Manager and Chief financial Officer to approve the amounts, interest rates, prices, and terms thereof for both series and to execute all documents related to the sale of the Bonds 2. Consider approving an amendment to Chapter 22 of the Code of Ordinances, Article 22.03 Industrial Waste Standards 3. Consider approving the purchase of a new long throw sound system for the Julie Rogers Theater 4. Consider approving the purchase of security cameras for four City Park/ Community Center parking lots from Infinity Connections, Inc. WORK SESSION COMMENTS Review and discuss the requirements for speakers and others in meetings of Beaumont City Council and Commission Meetings Review and discuss the Parks Capital Improvement Plan Public Comment (Persons are limited to 3 minutes) Councilmembers/City Manager/City Attorney comment on various matters EXECUTIVE SESSION Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Goveriunent Code, to wit: Riverfront Project Consider natters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Caleb Fentei� v. Cit , of Beatanont and Chris S. Boone: Cause No, B-210244 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. TEXAS TO: City Council FROM: Kermeth R, Williams, City Manager PREPARED BY: Tina Broussard, City Clerk MEETING DATE: November 22, 2022 REQUESTED ACTION: Council consider approval of the November 15, 2022 City Council Meeting Minutes. tow T E X A S MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert "A.J." Turner Jr., At -Large ROBIN MOUTON, MAYOR Randy Feldschau, At -Large Taylor Neild, Ward I CITY COUNCIL MEETING Michael Getz, Ward II Audwin Samuel, Ward III NOVEMBER 15, 2022 Chris Durio, Mayor Pro Tern Tina Broussard, City Clerk Kenneth R. Williams, City Manager Sharae Reed, City Attorney The City Council of the City of Beaumont, Texas, met in a regular session in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on November 22, 2022, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m, to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Proclamations, Presentation and Recognition Public Comment: Persons may speak on the Consent Agenda and Agenda items 1 and 2 Mayor Mouton called the council meeting to order at 1:30 p.m. Pastor Carlton Sharp with Faith Christian Center Church gave the invocation. Mayor Mouton led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Mouton, Councilmembers Getz, Turner, Feldschau, Samuel and Neild. Absent: Mayor Pro Tern Durio. Also, present were Kenneth Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation, Recognitions 1►reMW Mayor Mouton read the announcement regarding the Executive Session being held at the conclusion of Public and Councilmember Comments. Public Comment: Persons may speak on the Consent Agenda and Agenda Items 1 and 2 None CONSENT AGENDA (items placed on the Consent Agenda are considered routine in nature and are considered non -controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any Item for discussion and separate action.) A. Approval of the November 8, 2022, City Council Meeting Minutes Minutes — November 15, 2022 B. Approve a contract for workers' compensation excess insurance - Resolution 22-306 C. Amend Resolution 22-272 for the purchase of 28 vehicles for use in various City departments - Resolution 22-272-A D. Authorize the City Manager to execute Change Order No. 3 to the contract with Greenscapes Six, LLC, for the Concrete Pavement Repair City Wide Phase 11 Project - Resolution 22-307 E. Authorize the settlement of the lawsuit styled Michael Daniel, Jr. v. City of Beaumont and Wiltavien Johnson - Resolution 22-308 Councilmember Samuel moved to approve the Consent Agenda. Councilmember Neild seconded the motion. AYES: MAYOR MOUTON, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED AGENDA 1. Consider authorizing the City Manager to award a contract to Barricades Unlimited, of Lubbock, for the Citywide Pavement Markings, Phase 11 Project, The Citywide Pavement Markings — Phase I I project consists of the removal and installation of pavement markings on the following streets: Calder Avenue, Eleventh Street, Folsom Drive, Highland Avenue, Irving Avenue, Lavaca Street, Sarah Street, Madison Avenue, Manion Drive, and Sarah Street. On November 3, 2022, one (1) bid was received for furnishing all labor, materials, and equipment for the project. The bid total is indicated in the table below: Contractor Location Base Bid Amount Barricades Unlimited Lubbock, TX $699,671.52 Engineer's Estimate $689,449,05 The Public Works Engineering staff recommends this project be awarded to the bidder, Barricades Unlimited, in the amount of $699,671.52. A total of 120 calendar days are allocated for completion of the project. Funds will come from the Capital Program and the Street Rehabilitation Program. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE BID SUBMITTED BY BARRICADES UNLIMITED, OF LUBBOCK, TEXAS, FOR THE CITYWIDE PAVEMENT MARKING, PHASE II PROJECT, WHICH CONSIST OF THE REMOVAL AND INSTALLATION OF PAVEMENT MARKINGS ON THE Minutes — November 15, 2022 FOLLOWING STREETS, CALDER AVENUE, ELEVENTH STREET, FOLSOM DRIVE, HIGHLAND AVENUE, 1RVING AVENUE, LAVACA STREET, SARAH STREET, MADISON AVENUE AND MANION DRIVE, FOR AN ESTIMATED AMOUNT OF $699,671.52 BE ACCEPTED BY THE CITY OF BEAUMONT AND THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH BARRICADES UNLIMITED, OF LUBBOCK, TEXAS, Councilmember Samuel seconded the motion. AYES: MAYOR MOUTON, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-309 2. Consider approving a resolution appointing members to the ad hoc Downtown Planning & Advisory Committee. With the upcoming repair of Riverfront Park and a widespread desire to develop properties along Beaumont's riverfront the city is now beginning the process of developing a new Downtown Plan in the coming months. In order to better guide this process, it is recommended that an ad hoc Downtown Planning and Development Advisory Committee be established. This ad hoc steering committee is proposed to be comprised of nine members. Each Councilmember would appoint one member and the mayor would appoint three members, one of whom would serve as Chairman. Staff liaisons from the city, the Chamber and Beaumont Main Street would also serve the Committee. It is expected that this steering committee would meet to guide the planning process as well as participate in the public charrettes and meetings during the planning process. The plan would then be presented to the Planning Commission and City Council for final review and consideration for adoption. Approval of Resolution. Councilmeber Getz made a correction to the background of the appointments of the committee members. The members aren't being appointed by the Mayor and Council; the slate of committee members was recommended by staff. Councilmember Neild also made a correction regarding Jim Broussard, stating that Mr. Broussard is not an active member of Beaumont Main Street, he sits on the Advisory Board. The City Attorney stated that this item calls for the Mayor to appoint a Chairman. The Mayor stated she wasn't prepared to make an appointment at this time but would at a later date. The City Attorney informed Council that once the Mayor appoints a Chairman the item will come back for approval. Councilmember Turner moved to APPROVE A RESOLUTION THAT THE FOLLOWING APPOINTMENTS BE MADE TO THE AD HOC DOWNTOWN PLANNING AND ADVISORY COMMITTEE, TOM FLANAGAN, SUE BARD, JIM BROUSSARD, MIN DAI, MIKE ALBANESE, JAMES PAYNE, NAKISHA BURNS, ROB CLARK AND LEE WHEELER. Councilmember Feldschau seconded the motion. Minutes — November 15, 2022 AYES: MAYOR MOUTON, COUNCILMEMBERS GETZ, TURNER, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Resolution 22-310 COMMENTS Public Comments (Persons are limited to three minutes) Humza Arfeen 1740 Thomas Rd. Beaumont TX Spoke to Council regarding speeding on Thomas Rd., Beaumont is considered the second most dangerous city for drivers, speeding is one of the main issues that cause$ accidents, stated that in 2016 the annual average daily trafficwas 1,865 cars traveling on Thomas Rd., according to the Texas Department of Transportation, people see Thomas Rd., as a cut away and they take advantage of it, due to speeding, the residents that used to walk for exercise have stopped walking, speeding is an action that shouldn't be taken lightly, Mr. Arfeen discussed three proposals with Council regarding this issue, the first proposal was speed cushions that could be installed, he was advised by Councilmember Neild that speed cushions goes against the city ordinance, his second proposal was a speed cop on Thomas Rd., thinks this would be effective, his third proposal was to put sidewalks on Thomas Rd., make it safer for the residents to walk as well as for the drivers Addie Allen 9695 Gross Beaumont TX Stated that on the last agenda, she didn't see an appointment for the two new Assistant City Managers, stated that the city advertised for a City Manager, asked if there should or should not be an appointment for the two Assistant City Managers and shouldn't they have been advertised, would like to get an answer regarding this Councilmembers/City Manager/City Attorney comments on various matters COUNCILMEMBER COMMENTS COUNCILMEMBER NEILD - THANKED HUMZA ARFEEN AND THE ENTIRE ARFEEN FAMILY FOR ATTENDING THE COUNCIL MEETING ON TODAY, ENJOYED HAVING THE DIALOGUE WITH HUMZA AS HE WORKED THROUGH THE PROJECT COUNCILMEMBER SAMUEL - THANKED HUMZA ARFEEN FOR ATTENDING THE MEETING TODAY, ASKED IF SOMEONE WILL ADDRESS MS. ALLEN'S COMMENTS MADE EARLIER (CITY MANAGER STATED HE WILL SPEAK WITH MS. ALLEN AFTER THE MEETING) COUNCILMEMBER FELDSCHAU - STATED THAT CHRISTOPHER MATTHEWS PASSED AWAY ON OCTOBER 30, 2022, FUNERAL SERVICES WERE ON SATURDAY, NOVEMBER 12, 2022, THE COMMUNITY CAME TOGETHER TO Minutes — November 15, 2022 REMEMBER THIS YOUNG MAN, ASKED THE COMMUNITY CONTINUE TO BE IN PRAYER FOR HIS MOTHER CORLISS AND HIS FATHER CHRISTOPHER AND THEIR ENTIRE FAMILY, IT'S DIFFICULT TO LOSE SOMEONE SO EARLY AND IN A TRAGIC DEATH, NOW 15 THE TIME THAT THE GRIEVING STARTS AND ASKED FOR PRAYER FOR THE FAMILY IN THE COMING WEEKS AND MONTHS COUNCILMEMBER TURNER - INQUIRED AS TO WHETHER STAFF HAS EVER DONE A TRAFFIC STUDY ON THOMAS RD., IF SO ASKED THAT STAFF WOULD SHARE THAT STUDY WITH COUNCIL SO THAT IT COULD BE SHARED WITH THE ARFEEN FAMILY, COMMENTED ON RFD AND Hwy 105, KNOWS TRAFFIC IS GOING TO INCREASE REGARDING THE GROWTH IN THAT PARTICULAR AREA, ASKED IF COUNCIL COULD GET AN UPDATE FROM TxDOT FOR THAT AREA, ANNOUNCED THAT ON NOVEMBER 21, 2022, AT 6525 BIGNER RD., THEY WILL HAVE THEIR FIRST NORTH END NEIGHBORHOOD ASSOCIATION MEETING AT 6:30 P.M., ENCOURAGE THE CITIZENS IN THAT AREA TO PLEASE COME OUT, KATHRINE CAMPBELL WILL BE THE POINT OF CONTACT, ALSO THE YOUTH ADVISORY COUNCIL WILL HAVE IT'S FIRST MEETING AT THE LAKESIDE CENTER AT 6:00 P.M., THE YOUTH COUNCIL WILL BE COMPRISED OF STUDENTS FROM BEAUMONT IGNITED, WEST BROOK, KELLY, HARMONY, EARLY COLLEGE AND LEGACY, THEY WILLALL BE WORKING TOGETHERTO GIVE THE COUNCIL ADVICE FROM THE YOUNGER COMMUNITY PERSPECTIVE, THANKED COUNCIL FOR SUPPORTING THIS INITIATIVE,, ENCOURAGED EVERYONE TO COME OUT COUNCILMEMBER GETZ - STATED THAT HE WAS OUT OF TOWN THIS WEEKEND OR HE WOULD HAVE ATTENDED THE BEN ROGERS VETERAN'S DAY PROGRAM, THANKED ALL VETERAN'S FOR ALL THEY HAVE DONE TO SERVE THIS COUNTRY, ALSO COMMENTED ON THE FOOD TRUCK EXTRAVAGANZA AT POUR09 THAT TOOK PLACE OVER THE WEEKEND, UNDERSTANDS IT WAS A GREAT SUCCESS, HAS BEEN SAYING THAT THE CITY NEEDS FOOD TRUCKS DOWNTOWN, PREFERABLY AT THE EVENT CENTRE, COMMENTED ON THE PUBLIC SPEAKER GUIDELINES AND DECORUM POLICY, STATED THAT IT'S BEEN SOMETIME SINCE COUNCIL HAS LOOKED AT THAT POLICY, REQUESTED A WORKSHOP TO SEE 1F THERE'S SOME. BEST PRACTICES THAT OTHER CITIES MIGHT BE USING THAT COUNCIL CAN INCORPORATE INTO THE CURRENT POLICY THAT IS BEING USED, ASKED IF HE COULD GET A SECOND, IT WOULD BE GREATLY APPRECIATED (COUNCILMEMBER NEILD GAVE SECOND TO THE WORKSHOP REQUEST) MAYOR PRO TEM DURIO - ABSENT Minutes — November 15, 2022 CITY MANAGER WILLIAMS - STATED THAT AFTER FOUR DAYS OF MOVING, HE'S NOW OFFICIALLY A CITIZEN OF BEAUMONT, LOOKS FORWARD TO LIVING, WORKING AND PLAYING IN THE GREAT CITY OF BEAUMONT CITY ATTORNEY REED - NONE PUBLIC WORKS DIR. BARTKOWIAK -NONE ASSIST. CITY MANAGER BOONE - COMMENTED ON A PROPOSED DRAFT SCHEDULE THAT WAS GIVEN TO EACH COUNCILMEMBER BY THE PLANNING COMMITTEE AS THEY GET READY TO KICKOFF, STATED THE COMMITTEE WILL PROBABLY HAVE TO PUSH THE START DATES BACK A COUPLE OF WEEKS BUT WANTED TO SHARE THEIR PLANS WITH COUNCIL CFO SIMONEAUX - NONE CITY CLERK BROUSSARD - NONE MAYOR MOUTON - THANKED HUMZA ARFEEN FOR SPEAKING ON TODAY, IT'S ALWAYS GOOD TO SEE OUR YOUTH COME FORWARD, STATED THAT IT IS A LOT OF TRAFFIC ON THOMAS RD., SYMPATHIZES WITH THEM, STAFF WILL GET BACK WITH THEM WITH A STUDY, COMMENTED ON THE NEIGHBORHOOD ASSOCIATION MEETING IN WARD IV, AS EVERYONE KNOWS THERE WAS A MAJOR ACCIDENT ON FONVILLE ST., AT THE MEETING CITIZENS WANTED TO GET SOME ANSWERS ABOUT THE SHOOTING THAT OCCURRED TWICE, THE NEIGHBORS WERE ABLE TO COME OUT AND GET SOME GREAT INFORMATION, THANKED THE CITY MANAGER AS WELL AS COUNCILMEMBER TURNER FOR ATTENDING THE MEETING, ALSO ON THIS FRIDAY, NOVEMBER 18, 2022, IT WILL BE THE 501" ANNIVERSARY OF THE GODFATHER ALONG WITH THE PLAYING OF THE ORGAN, ENCOURAGED EVERYONE TO COME OUT AND ENJOY, STATED THAT VETERAN'S DAY WAS ON FRIDAY, NOVEMBER 11, 2022, IT WAS A GREAT PROGRAM AT THE BEN ROGERS VISITORS CENTER, THANKED ALL THE VETERAN'S FOR THE JOBS THEY DO AND CONTINUE TO DO, THANKED EVERYONE FOR COMING OUT AND ASKED THAT THEY GO OUT AND SPREAD THE LOVE Open session of meeting recessed at 2:55 p.m. EXECUTIVE SESSION * Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Code, to wit: Tyrrell Park Stables Minutes — November 15, 2022 Consider matters related to contemplated or pending litigation in accordance with Section 551,071 of the Government Code: Caleb Fenter v. City of Beaumont and Chris S. Boone; Cause No. B-210244 Robin Mouton, Mayor Tina Broussard, City Cleric Minutes — November 15, 2022 V November 22, 2022 Confirmation of board and commission member appointments RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the following appointment be made: Appointment Jim Broussard, Chairman Commission Ad Hoc Downtown Planning & Advisory Committee 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 November, 2022. - Mayor Robin Mouton - 11 November 22, 2022 Consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer Systenn Revenue Bonds, Series 2023, and authorizing the Mayon or City Manager and Chief Financial Officer to approve the amounts, interest rates, prices, and tern -Is thereof for both series and to execute all documents related to the sale of the Bonds A -Pr I[ V-T'grma�! TEXAS TO: City Council FROM: Kenneth R, Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: November 22, 2022 REQUESTED ACTION: Council consider an ordinance authorizing the issuance of City of Beaumont, Texas, Waterworks and Sewer System Revenue Bonds, Series 2023, and authorizing the Mayon or City Manager and Chief Financial Officer to approve the amounts, interest rates, prices, and terms thereof for both series and to execute all documents related to the sale of the Bonds. BACKGROUND As presented.in a work session during the budget process, $25 million is required to complete projects.related,to water and sewer infrastructure improvements that are currently under construction and/or design, With the quickly changing financial markets, the most favorable time to enter the market may not be the day'before a City Council meeting, Instead, the ability of a local government to time its entry into'the financial markets and thereby obtain the best borrowing terms can significantly impact the, borrowing costs. Section 1207.007 Texas Govermnent Code allows a City to enter into the bond market at any time in accordance with parameters established and approved by the City Council. Through a parameter bond ordinance, a Council delegates final pricing authority to a Pricing'Officer, usually the Mayor or City Manager, CFO and/or City Manager's Designee, and establishes and approves bond sale parameters such as maximum interest rate, minimum savings threshold for refunding, maximum aggregate principal amount of issue, final maturity date and expiration of delegated authority which is normally six (b) months. The Pricing Officer can,orily approve the sale if all parameters are met, This results in flexibility such that the bond issue'may be priced at any time and in an interest rate environment that is advantageous to the City rather than being locked into pricing on the date of Council meetings, Water and Sewer Revenue Bonds, Series 2023 November 22, 2022 Page 2 The proposed parameters included in the proposed ordinance for Series 2023, as described above, includes: Delegated Pricing „Officers: Mayor or City Manager and Chief Financial Officer Maximum Principal An-iount Series 2023: $25 million Interest Rate: Not greater than 6.0% per annum Expiration of Parameter Authority: May 15, 2023 Interest will be payable semiannually in March and September beginning March 1, 2023. FUNDING SOURCE Water Utilities Fund. RECOMMENDATION Approval of the ordinance. CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS § COUNTY OF JEFFERSON § t, the undersigned City Clerk of the City of Beaumont, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in regular meeting on November 22, 2022, at the place stated in the notice of such meeting given as stated below, and the roll was called of the duly constituted official and members of said City Council, to wit: Robin Mouton Mayor Albert Turner Councilmeniber Randy Feldschau Councilmember Taylor Neild Councilmember Mike Getz Councilmember Alldwin Samuel Councilmember Charles Durio Councilmember And all of said persons were present, thus Constituting a quorum. Whereupon, a111ong other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2023 IN ONE OR MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED; AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING THERETO; PROVIDING FOR THE PAYMENT THEREOF; MAILING OTHER PROVISIONS REGARDING SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER 1 #152624114_vi RELATED DOCUMENTS; AND MAIIUNG OTHER PROVISIONS REGARDING SUCH BONDS was duly introduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said ordinance be adopted; and after due discussion, such motion, carrying with it the adoption of said ordinance, prevailed and carried by the following vote: AYES: All those present voted "aye" NOES: ABSTENTIONS: 2. That a true, full, and correct copy of the aforesaid ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that said ordinance has been drily recorded in said City Council's minutes of said meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from the said City Council's minutes of said meeting pertaining to the adoption of said ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; that each of the officers and nrernbers of said City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place, and purpose of the aforesaid meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by the Texas Open Meetings Act, SIGNED AND SEALED this , 2022. City Clerk City of Beaumont, Texas (SEAL) 2 #152624110_v1 ORDINANCE NO.22- ORDINANCE AUTHORIZING THE ISSUANCE OF THE CITY OF BEAUMONT, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2023 IN ONE OR MORE SERIES OR SUBSERIES AS MAY BE FURTHER DESIGNATED; AUTHORIZING EACH OF THE MAYOR, THE CITY MANAGER AND THE CHIEF FINANCIAL OFFICER TO APPROVE THE AMOUNTS, INTEREST RATES, PRICES, AND TERMS THEREOF AND CERTAIN OTHER MATTERS RELATING THERETO; PROVIDING FOR THE PAYMENT THEREOF; MAKING OTHER PROVISIONS REGARDING SUCH BONDS INCLUDING AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE PRELIMINARY OFFICIAL STATEMENTS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS AND MATTERS INCIDENT THERETO; AWARDING THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE BOND PURCHASE AGREEMENTS; AUTHORIZING BOND INSURANCE; AUTHORIZING THE EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT AND OTHER RELATED DOCUMENTS; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS, The City of Beaumont, Texas (the "City") is authorized, pursuant to Chapters 1371 and 1502, Texas Government Code, as amended, to issue bonds, without election, payable from the net revenues of its waterworks and sewer system to provide money for acquisitions, purchases, expansions, extensions, construction, reconstruction, renovation, equipping, and improvement of such system; and WHEREAS, the City now desires to issue bonds in order to provide funds to finance the expansion, repair, renovation and related improvements to the City's waterworks and sewer system; and WHEREAS, by this Ordinance the City Council of the City (the "City Council") is authorizing the issuance of its bonds in the principal amount not exceed $25,000,000.00; and, WHEREAS, the City shall by this Ordinance, in accordance with the provisions of Chapter 1371 and 1502, Texas Government Code, as amended, delegate to a Pricing Officer (hereinafter designated) the authority to determine the principal amount of Bonds to be issued and negotiate the terms of sale thereof; and WHEREAS, the City Council hereby finds and determines that it is a public purpose and in the best interests of the City to one (1) issue the Bonds with such terms to be included in a pricing certificate (the "Pricing Certificate") to be executed by the Pricing Officer, all in accordance with the provisions of Chapters 1371 and 1502, Texas Government Code, as amended; and 3 #152624110_vl WHEREAS, the City Council hereby finds that it may purchase a credit agreement in the form of a municipal bond insurance policy or policies with respect to the Bonds if it deems such purchase is cost effective; and WHEREAS, the bonds to be issued pursuant to the terms and provisions of this Ordinance will be secured by a pledge of and lien on the Net Revenues (as hereinafter defined); and WHEREAS, the City is a home -rule municipality that: (i) adopted its charter under Section 5, Article XI, Texas Constitution; (ii) has a population of more than 50,000 and (iii) has outstanding long -terns indebtedness that is rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for a long-term obligation. Now, Therefore BE IT ORDAINED BY THE CITY OF BEAUMONT, TEXAS: 1. Findings and Determinations. It is hereby found and determined that the matters and facts contained in the preamble to this Ordinance are hereby found to be true and correct. 2. Definitions. Throughout this ordinance the following terms and expressions as used herein shall have the meanings set forth below: The term "Additional Parity Bonds" shall mean any credit agreement created pursuant to Section 28 herein or additional bonds issued with the same priority lien as the Bonds. The term "Average Aiu-ual Debt Service Requirements" shall mean the average annual debt service for the Parity Bonds. The term "Blanket Issuer Letter of Representations" means the Blanket Issuer Letter of Representations between the City and DTC. The term "Bond Insurer" shall mean any third party financial institution that provides a credit agreement in the form of a municipal bond insurance policy as provided herein. The term "Bond Register" shall mean the books of registration kept by the Registrar in which are maintained the names and addresses of, and the principal amounts of the Bonds registered to, each Owner. The terms "Bonds" shall mean the City of Beaumont, Texas Waterworks and Sewer System Revenue Bonds, Taxable Series 2023. The term "Business Day" shall mean any day which is not a Saturday, Sunday, a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent/Registrar or Bond Insurer, if any, is located, are authorized or required by law or executive order to close, or a legal holiday. 4 4152624110_vl The term "City" shall mean The City of Beaumont, Texas. The term "Closing Date" means the date of the initial delivery of and payment for the Bonds. The terra "Code" means the Internal Revenge Code of 1986, as heretofore and hereafter amended and, with respect to a specific section thereof, such reference shall be deemed to include (a) the Regulations promulgated -under such section, (b) any successor provision of similar import hereafter enacted, (c) any corresponding provision of any subsequent Internal Revenue Code, and (d) the Regulations promulgated under the provisions described in (b) and (c), The terns "Comptroller" means the Comptroller of Public Accounts of the State of Texas. The term "DTC" means The Depository Trust Coinpany of New York, New York, or any successor securities depository. The term "DTC Participant" means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. The term "Gross Revenues" shall mean all revenges, income and receipts of every nature derived or received by the City from the operation and ownership of the System (but excluding any utility deposits) and the interest income from the investment or deposit of money in the Revenue Fund, and the Interest and Sinking Fund. The term "Insurance Policy" shall have the meaning assigned to that term in Section 28 of this Ordinance. The term "Insured Bonds" shall mean the Bonds during the time period in which the payment of principal and interest in com-section with such bonds is guaranteed by the Bond Insurer. The term "Interest Payment Date", when used in connection with any Bond, shall mean March 1 and September 1 of each year, beginning September 1, 2023 and continuing thereafter until maturity or earlier redemption of such Bond. The term "Issuer" shall mean the City. The term "Maintenance and Operation Expenses" shall mean the reasonable and necessary expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, and all payments tinder contracts, now or hereafter defined as operating expenses by the Legislature of the State of Texas. Depreciation shall never be considered as a Maintenance and Operation Expense. The term "MSRB" shall mean the Municipal Securities Rulemaking Board. 5 #152624110 v1 The term "Net Revenues" shall mean all Gross Revenues remaining after deducting the Maintenance and Operation Expenses. The term "Ordinance" as used herein and in the Bonds shall mean this ordinance authorizing the Bonds and all amendments and supplements hereto. The term "Outstanding" shall mean, in connection with the Bonds, any Bonds that retuain outstanding until maturity, refunding or defeasance. The term "Owner" shall mean any person who shall be the registered owner of any Bonds. The terns "Parity Bonds" shall mean the Bonds, the City's outstanding Waterworks and Sewer System Revenue Bonds, Series 2014A and 201413, the City's Waterworks and Sewer System Revenue Refiinding Bonds, Series 2015A, the City's Waterworks and Sewer System Revenue Bonds, Series 2017, the City's Waterworks and Sewer System. Revenue and Refunding Bonds, Series 2020A, the City's Waterworks and Sewer System Revenue Refunding Bonds, Taxable Series 2020B, the City's Waterworks and Sewer System Revenue Refirnding Bonds, Taxable Series 2022, and any Additional Parity Bonds. The term "Paying Agent" for the Bonds shall mean the Registrar. The term "Pricing Certificate" shall mean a certificate or certificates to be signed by the Mayor, the City Manager or the Chief Financial Officer of the City pursuant to Section 5 hereof and delivered to the City Clerk, in substantially the form attached hereto as "Exhibit A." The term "Pricing Officer" shall mean the Mayor, City Manager, or Chief Financial Officer of the City. The term "Record Date" shall mean, for any Interest Payment Date, the fifteenth (15th) calendar day of the month next preceding each Interest Payment Date. The term "Registrar" shall mean UMB Bank, N.A., Houston, Texas, and its successors in that capacity. The term "Regulations" means the applicable proposed, temporary or final Treasury Regulations promulgated under the Code or, to the extent applicable to the Code under the Internal Revenue Code of 1954, as such regulations may be amended or supplemented from time to time. The term "Reserve Fund Requirement" shall mean an amount equal to the average amlual principal and interest requirement on the Parity Bonds, which may be determined and redetermined each year by the City but in no event less frequently than upon the issuance of each series of Parity Bonds. The terra "Rule" shall mean SEC Rule 15c-12, as amended from time to time. The term "SEC" shall mean the United States Securities and Exchange Commission. G #t52624110_vl The term "Special Project" shall mean, to the extent permitted by law, any property, improvement or facility declared by the City not to be part of the System and substantially all of the costs of the acquisition, construction and installation of which is paid from proceeds of a financing transaction other than the issuance of bonds payable from ad valorem taxes or Net Revenues of the System, and for which all maintenance and operation expenses are payable from sources other than revenues of the System, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction and installation under such financing transaction. The terns "System" shall mean all properties, facilities, improvements, equipment, interests and rights constituting the waterworks and sewer system of the City, including all future extensions, replacements, betterments, additions, improvements, enlargements, acquisitions, purchases and repairs to the System, but excluding all Special Projects. The term "Underwriter" shall mean the underwriting syndicate identified in the Officer's Pricing Certificate. 3. Authorization. The Bonds shall be issued in frilly registered form in the total authorized aggregate principal amount not to exceed TWENTY-FIVE MILLION AND NOI100 DOLLARS ($25,000,000.00) for the purpose of providing finds to (i) finance capital expenditures acquisition, purchase, construction, reconstruction, improvement, renovation, expansion, or equipping of property, buildings, structures, facilities, or related infrastructure for the City's waterworks and sewer system (the "Project"), and (ii) pay costs of issuance of the Bonds. 4. Desi nation, Date, and Interest Payment Dates. The Bonds shall be designated as "THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2023." The Bonds shall be dated, mature, bear interest from the dates and at the rates per annum, and be payable on the dates and in the principal amounts as set forth in the Officer's Pricing Certificate. 5. Sale of Bonds. As authorized by Chapters 1371 and 1502, Texas Government Code, as amended, the Pricing Officers are hereby authorized to act on behalf of the City in selling and delivering the Bonds and carrying out the other procedures specified in this Ordinance, including any additional designation or title by which the Bonds shall be known, the number of subseries of Bonds to be issued and the principal amount of each subseries, the price at which each series of the Bonds will be sold, the manner in which the Bonds should be delivered, the date or dates (which may be different dates for each series of the Bonds) on which the Bonds shall be sold, the form in which the Bonds shall be issued whether as current interest bonds, as compound interest bonds, or as a combination of current interest bonds and compound interest bonds, any additional designation or title by which the Bonds shall be known, the year or years in which each series of the Bonds will mature, the principal amount to mature in each of such years, the aggregate principal amount of each series of the Bonds, the rate of interest to be borne by each such maturity, the first interest payment date or compounding date, as the case may be, the dates, prices, and terms, if any, upon and at which each series of the Bonds shall be 7 4152624110_0 subject to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund redemption provisions, or nnake-whole provisions, and such officers are also hereby authorized to act on behalf of the City in approving all other matters relating to the issuance, sale and delivery of the Bonds and the purchase of a bond insurance policy or policies for all or any portion of the Bonds, all in accordance with the terms below: (a) the price to be paid for each series of the Bonds shall not be less than 90% of the aggregate original principal amount of the current interest bonds plus accrued interest, if any, thereon from their date to their delivery; (b) none of the Bonds shall bear interest at a rate greater than 6% per annum or in excess of the maximum rate allowed by Chapter 1204, Texas Governrnlent Code; (c) each series of the Bonds to be issued, prior to delivery, must have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long-term obligations; (d) to the extent the City shall purchase any Insurance Policy (one or more) issued by one or more Bond Insurers such policy or policies shall be determined to be most cost effective to the City for the Bonds and shall result in a net interest rate savings to the City which is greater than the costs of the premium of such policy or policies, as may be certified in the Officer's Pricing Certificate; and Any finding by the Mayon, City Manager or the Chief Financial Officer relating to the sale and delivery of the Bonds and the purchase of bond insurance shall have the same force and effect as a finding or determination made by the City Council. 6. Bond Numbers and Denominations. Each series of Bonds shall be numbered from R 1 and upward (except the Initial Bond, which shall each be numbered I-1), and may be transferred and exchanged as set out in this Ordinance. Such Bonds shall mature on September I in each of the years and in the amounts set forth in the Initial Bond. The Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall be in the denomination of $5,000.00 or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as the Bonds or Bonds in lieu of which they are delivered. 7. Execution of Bonds; Seal. The Bonds shall be signed by the Mayor or Mayor Pro Tem and countersigned by the City Clerk or Deputy City Clerk, by their manual, lithographed, or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City lnad been manually impressed upon each of the Bonds, If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. 8 #152624110_v1 8. Approval by Attorney General Registration by Com troller. The Bonds to be initially issued shall be delivered to the Attorney General of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration Bond of the Comptroller of Public Accounts substantially in the form provided in the Pricing Certificate shall be attached or affixed to the Bonds to be initially issued. 9. Authentication. Except for the Bonds to be initially issued, which need not be authenticated by the Registrar, only such Bonds which bear thereon a certificate of authentication, substantially in the form provided in Section 19 of this Ordinance, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder. 10. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Bonds. The principal of and premium., if any, on the Bonds shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, whether at maturity or by prior redemption, at the principal corporate trust office of the Registrar. The interest on each Bond shall be payable by check on the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record Date, to the address of such Owner as shown on the Bond Register. Any accrued interest payable at maturity on a Bond shall be paid upon presentation and surrender of such Bond at the principal corporate trust office of the Registrar. If the date for payment of the principal of or interest on any Bond is not a Business Day, then the date for such payment shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the original date such payment was due. 11. Successor Registrars. The City covenants that at all times while any Bonds are outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Registrar for the Bonds. The City reserves the right to change the Registrar for the Bonds on not less than Sixty (60) days written notice to the Registrar, so long as any such notice is effective not less than Sixty (60) days prior to the next succeeding principal or interest payment date on the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Bond Register or copies thereof to the new Registrar, and the new Registrar shall notify each Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 12. Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Registrar shall establish a Special Record Date when fiends to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the 0 #152624110_v3 Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) days prior to the Special Record Date, to each affected Owner of record as of the close of business on the day prior to the mailing of such notice. 13. Ownership, Unclaimed Principal and Interest. The City, the Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of principal of and premium, if any, or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the owner of any Bond in accordance with this Section 13 shall be valid and effectual and shall discharge the liability of the City and the Registrar upon such Bond to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law, including Title 6 of the Texas Property Code, as amended. 14. Registration, Transfer, and Exchange. So long as any Bonds remain outstanding, the Registrar shall keep the Bond Register at its principal corporate trust office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of this Ordinance. If the Registrar does not maintain its principal offices in the State of Texas, the City agrees to keep a Bond Register at its offices which is identical to the Bond Register maintained by the Registrar and the Registrar will notify the City as to any changes in the Bond Register within one (1) business day. Each Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an assigm-nent duly executed by the registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three (3) business days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same type, maturity and aggregate principal amount and bearing interest at the sane rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal corporate trust office of the Registrar for a Bond or Bonds of the same type, maturity and interest rate and in any authorized denomination, in an aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section 14. Each Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in conuiection with the transfer 10 # 1526244110_v ] or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the City. Neither the City nor the Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for redemption; provided, however, such limitation on transfer shall not be applicable to an exchange by the Owner of the unredeemed balance of a Bond called for redemption in part. 15. Mutilated, Lost, or Stolen Bonds. Upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate, and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or larowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Registrar may require the Owner of a mutilated Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar, The City or the Registrar may require the Owner of a Iost, apparently destroyed or wrongfully taken Bond, before any replacement Bond is issued, to: (1) furnish to the City and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (2) famish such security or indemnity as may be required by the Registrar and the City to save them harmless; (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (4) meet any other reasonable requirements of the City and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Registrar to pay such Bond. #152624110 of Each replacement Bond delivered in accordance with this Section 14 shall be entitled to the benefits and security of this Ordinance to the swine extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. 16. Cancellation of Bonds. All Bonds paid in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding such payment. The Registrar shall furnish the City with appropriate Bonds of destruction of such Bonds. 17. Book -Entry System. (a) Notwithstanding any other provision hereof, upon initial issuance of the Bonds but at the sole election of the Underwriter, the ownership of the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, and except as otherwise provided in this Section, all of the Outstanding Bonds shall be registered in the narne of Cede & Co., as nominee of DTC. The definitive Bonds shall be initially issued in the form of a single separate Bond for each of the maturities thereof. If the Underwriter shall elect to invoke the provisions of this Section, then the following provisions shall take effect with respect to the Bonds. (b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than an Owner of a Bond, as shown on the Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than an Owner of a Bond, as shown in the Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the City and the Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on the Bonds, for the purpose of all matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the respective Owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner as shown in the Register, shall receive a Bond evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC, (c) In the event that the City in its sole discretion determines that the beneficial owners of the Bonds be able to obtain Bonds, or in the event DTC discontinues the services described herein, the City shall (i) appoint a successor securities depository, qualified to act as 12 4152624110_vl such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, and notify DTC and DTC Participants, as identified by DTC, of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC , as identified by DTC. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. (d) The execution and delivery of the Blanket Letter of Representations is hereby ratified and approved and the Mayor is hereby authorized and directed to execute a new Blanket Letter of Representations, if required, with such changes as may be approved by the Mayor or City Manager of the City. (e) Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bonds, and all notices with respect to such Bonds, shall be made and given, respectively, in the mariner provided in the Blanket Letter of Representations. 18. Redemption and Defeasance. (a) Optional Redemption. The Bonds shall be subject to redemption prior to the stated maturity, at the option of the City at such times, in such amounts, in such manner and at such redemption prices as may be designated and provided for in the Officer's Pricing Certificate. (b) Partial Redemption. If less than all of the Bonds are to be redeemed pursuant to this Section, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Bonds, or portions thereof, within such maturity or maturities and in such principal amounts for redemption at the close of business on the Business Day next preceding the date of mailing such notice. (c) Notice of Redemption. Notice of any redemption shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, at least thirty (30) days prior to the date fixed for any such redemption, to the registered owner of each Bond, or portion thereof to be redeemed, at its address as it appeared on the Register on the close of business on the business day next preceding the date of mailing such notice; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is 13 €€152624110_v1 made, all as provided above, this Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the Rinds provided for such payment. The Paying Agent/ Registrar shall record in the Register all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000.00 at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. Bonds may be redeemed only in integral multiples of $5,000.00 If a Bond subject to redemption is in a denomination larger than $5,000.00 a portion of such Bond may be redeemed, but only in integral multiples of $5,000.00 Upon surrender of any Bond for redemption in part, the Registrar, in accordance with Section 14 hereof, shall authenticate and deliver in exchange therefor a Bond(s) of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond(s) so surrendered. The City, at least forty-five (45) days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Bonds to be redeemed. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption, and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the maimer in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. (d) Conditional Redemption. The City reserves the right in the case of an optional redemption to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date or (ii) that the City retains the right to rescind such notice at any time prior to the scheduled redemption date if the City delivers a certificate of the City to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice, and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected owners. Any Bonds subject to conditional redemption where redemption has been rescinded shall remain outstanding, and the rescission shall not constitute 14 #152620 10_vt an Event of Default. Further, in the case of a conditional redemption, the failure of the City to make moneys and/or authorized securities available in part or in whole on or before the redemption date shall not constitute an Event of Default. (e) Defeasance. The City may defease the provisions of this Ordinance or any ordinance applicable to any Parity Bonds being defeased and discharge its obligation to the Owners of any or all of the Bonds, or any or all Parity Bonds to pay principal, interest and redemption premium, if any, thereon in any ma€user permitted by law, including by depositing with the Paying Agent/Registrar, or if authorized by Texas law, with any national or state bank having t€List powers and having combined capital and surplus of at least Fifty Million 0/100 Dollars ($50,000,000.00), or with the State Treasurer of the State of Texas either: (a) cash in an amount equal to the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; or (b) pursuant to an escrow or trust agreement, cash and/or direct bonds of, or bonds the principal of and interest on which are guaranteed by or secured by the pledge of direct bonds of the United States of America, in principal amounts and maturities and bearing interest at rates sufficient to provide for the timely payment of the principal amount and redemption premium, if any, of such bonds being defeased plus interest thereon to the date of maturity or redemption; provided, however, that if any of such bonds being defeased are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance or ordinance applicable to the Parity Bonds being defeased. Upon such deposit, such bonds being defeased shall no longer be regarded to be outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. 19. Form. The Form of Bond as set forth in the Officer's Pricing Certificate is hereby approved. The form of the Bonds, including the form of the Registrar's Authentication Certificate, the form of Assignment, and the form of Registration Bond of the Comptroller of Public Accounts of the State of Texas which shall be attached or affixed to the Bonds initially issued shall be, respectively, substantially as set forth in the Officer's Pricing Certificate, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Ordinance. 20. Legal Opinion; CUSIP Numbers. The approving opinion of Holland & Knight LLP, Houston, Texas, Bond Counsel, and CUSIP Numbers may be printed on the Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Bonds. 21. (a) Pledge and Source of Pa relent. The City hereby covenants and agrees that all Gross Revenues of the System shall, as collected and received by the City, be deposited and paid into the special funds established in this Ordinance, and shall be applied in the manner hereinafter set forth, in order to provide for (i) the payment of all Maintenance and Operation Expenses and (ii) the payment of principal, interest and any redemption premiums on the Bonds, and all expenses of paying, securing and insuring the same. The Bonds are special obligations of the City payable solely from and secured by a lien on and pledge of the Net Revenues of the System, which Net Revenues shall, in the manager hereafter provided, be set aside for and are hereby pledged by the City to the payment of the Bonds and any Parity Bonds. The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the City or the System, except with respect to the Net 15 #152624110_vl Revenues, THE HOLDER OF THIS OBLIGATION IS NOT ENTITLED TO DEMAND PAYMENT OF THIS OBLIGATION OUT OF ANY MONEY RAISED BY TAXATION, IT IS ORDERED AND DIRECTED that this Ordinance pledging Net Revenues for the payment of the Bonds to the extent provided herein be filed and recorded in the records of the City as necessary to cause the pledge to be valid under Section 1201.44 of the Governinent Code of Texas. At any time while any of the Bonds are outstanding, if it is determined by the City or demanded by the holder of any Bonds that further action by the City is required to make the pledge valid or maintain the validity of the pledge, the City covenants and hereby directs the officers of the City to make such filings, including but not limited to appropriate filings under Chapter 9 of the Business and Commerce Code of Texas as are necessary to make the pledge valid or continue its validity. (b) Rates and —Charges, So long as any Parity Bonds remain outstanding, there shall be fixed, charged and collected rates and charges for the use and services of the System, which may be fiilly sufficient at all times: (i) to pay all Maintenance and Operation Expenses; and (ii) to produce Net Revenues in each fiscal year at least equal to 110 percent of the principal and interest requirements scheduled to occur in such fiscal year on all Parity Bonds then outstanding, but in no event less than the amount required to establish and maintain the Interest and Sinking Fund, and, to the extent that fiends for such purpose are not otherwise available, to pay all other outstanding obligations payable from the Net Revenues of the System as and when the same become due. The City covenants that it will not grant or permit any free service from the System except for public buildings and institutions operated by the City. (d) Special Funds. The following special funds shall be maintained and accounted for as hereinafter provided so long as any of the Parity Bonds remain outstanding. (i) Waterworks and Sewer System Revenue Fund (the "Revenue Fund"); (h) Waterworks and Sewer System Revenue Bond Interest and Sinking Fund (the "Interest and Sinking Fund"); and (iii) Waterworks and Sewer System Bond Reserve Fund (the "Reserve Fund"). The Revenue Fund shall be maintained as a separate account on the books of the City, The Interest and Sinking Fund and the Reserve Fund shall be maintained at an official depository bank of the City, separate and apart from all other funds and accounts of the City, and shall constitute trust fiends which shall be held in trust for the benefit of the holders of the Parity Bonds, and the proceeds of which (except for interest income, which shall be transferred to the Revenue Fund) shall be and are hereby pledged to the payment of the Parity Bonds. All of the finds named above shall be used solely as provided in this Ordinance so long as any Parity Bonds remain outstanding. 16 #152624110_vl (e) Flow of Funds. All Gross Revenges of the System shall be deposited as collected into the Revenue Find. Moneys from time to time on deposit to the credit of the Revenue Fund shall be applied as follows in the following order of priority: (i) First, to pay Maintenance and Operation Expenses and to provide by encumbrance for the payment of all obligations incurred by the City for Maintenance and Operation Expenses which may include an operating reserve equal to one month's estimated Maintenance and Operation Expenses. (ii) Second, to make all deposits into the Interest and Sinking Fund required by this Ordinance and any ordinance authorizing the issuance of any outstanding Additional Parity Bonds. (iii) Third, to make all deposits into the Reserve Fund required by this Ordinance and any ordinance authorizing the issuance of Additional Parity Bonds. (iv) Forth, to pay any amounts due to any bond insurer of Parity Bonds not paid pursuant to subsections (ii) or (ii) above. (v) Fifth, for any lawful purpose, including transfers to the General Fund as permitted by law. Such permitted transfers to the General Fund are hereby expressly authorized by this Ordinance and the purposes for which such surplus revenues may be used shall include, but not be limited to, payment of any other debt, expense, or obligation of the City. Whenever the total amounts on deposit to the credit of the Interest and Sinking Fund, Reserve Fund shall be equivalent to the sum of the aggregate principal amount of all outstanding Parity Bonds plus the aggregate amount of all interest accrued and to accrue thereon, no further payments need be made into the Interest and Sinking Fund, and the Reserve Fund. (f) Interest and Sinking Fund. On or before the last Business Day of each month so long as any Parity Bonds remain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, there shall be transferred into the Interest and Sinking Fund from the Revenue Fund the following amounts: (i) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the interest scheduled to become due on the Parity Bonds on the next interest payment date; and (ii) Such amounts, in approximately equal monthly installments, as will be sufficient to pay the next maturing principal of the Parity Bonds, including the principal amounts of, and any redemption premiums on, any Parity Bonds payable as a result of the exercise or operation of any redemption provision contained in this Ordinance or in any ordinance authorizing the issuance of Parity Bonds. Moneys deposited to the credit of the Interest and Sinking Fund (except for interest income, which shall be transferred to the Revenue Fund) shall be used solely for the purpose of paying principal (either at maturity or prior redemption or to purchase Parity Bonds in the open 17 # l 52G244110 v l market to be credited against mandatory redemption requirements), interest and redemption premiums on the Parity Bonds, plus all bank charges and other costs and expenses relating to such payment, on a pro rata basis among all series of Parity Bonds. On or before each principal and/or interest payment date for the Parity Bonds, the City shall transfer from the Interest and Sinking Fund to the paying agents for the Parity Bonds an amount equal to the principal, interest and redemption premiums payable on the Parity Bonds on such date, together with an amount equal to all bank charges and other costs and expenses relating to such payment. The paying agents for the Parity Bonds shall totally destroy all paid Parity Bonds and coupons (if any) and shall provide the City with an appropriate Bond of destruction. (g) Reserve Fund, Unless the Reserve Fund is fully funded, on or before the last Business Day of each month so long as any Parity Bonds rennain outstanding, after making all required payments and provision for payment of Maintenance and Operation Expenses, and after making the transfers into the Interest and Sinking Fund required in the preceding Section, there shall be transferred into the Reserve Fiend from the Revenue Fund an amount at least equal to one -sixtieth (1/60t11) of the average annual principal and interest requirements on the Parity Bonds, so that the Reserve Fund shall contain, in no more than 60 months after the issuance of each such issue of Parity Bonds, money and investments in an aggregate amount at least equal to the average annual principal and interest requirements on all Parity Bonds then outstanding. After such amount has accumulated in the Reserve Fund and so long thereafter as such Fund contains such amount, no further deposits shall be required to be made into the Reserve Fund, and any excess amounts may be transferred to the Revenue Fund. But if and whenever the balance in the Reserve Fund is reduced below such amount, monthly deposits into such fund shall be resumed and continued in amounts at least equal to one -sixtieth (1/60"') of the average amnual principal and interest requirements on the Parity Bonds until the Reserve Fund has been restored to such amount; provided however, if a Reserve Fund Policy has been obtained by the City pursuant to the next paragraph below, then the provisions of such next paragraph shall govern and control with respect to replenislunent of amounts drawn under the Reserve Fund Surety Policy. The Reserve Fund shall be used to pay the principal of and interest on the Parity Bonds at any time when there is not sufficient money available in the Interest and Sinking Fund for such purpose and it may be used finally to pay and retire the last Parity Bonds to mature or be redeemed. To the extent permitted by law, the City expressly reserves the right at any time to satisfy all or any part of the amounts required to be on deposit in the Reserve Fund (the "Reserve Fund Requirement") by obtaining for the benefit of the Reserve Fund one or more Reserve Fund Surety Policies (a "Reserve Fund Surety Policy"), The purchase of such Reserve Fund Surety Policy is approved, and the Mayor, Mayor Pro-Tem, City Manager, Chief Financial Officer, City Clerk, Deputy City Clerk, and all other appropriate officers and agents of the City are each authorized to execute such documents, including but not limited to a reimbursement agreement, to grant a subordinated pledge and lien on the Net Revenues as security for the payment of amounts due under the reimbursement agreement (which grant if made is hereby approved), and to do any and all things necessary or desirable to obtain such a Policy if in the discretion of the acting official deems its acquisition in the best interests of the City. In the event the City elects to substitute at any time a Reserve Fund Surety Policy for any funded amounts in the Reserve Fund, it may apply any bond proceeds thereby released, to the greatest extent permitted by law, to any purposes for which the bonds were issued, and if all such purposes have been satisfied, to 18 #152624110_vt the payment of debt service on such bonds, and it may apply any other funds thereby released to any of the purposes for which such Rinds may lawfully be applied including the payment of debt service on the Parity Bonds. A Reserve Fund Surety Policy shall be an insurance policy or other similar guarantee in a principal amount equal to the portion of the Reserve Fund Requirement to be satisfied which is issued by a financial institution or insurance company with a rating for its long term unsecured debt of claims paying ability of at least an investment grade category by two major municipal securities evaluation sources. The premium for any such policy shall be paid from bond proceeds or other finds of the City lawfully available for such purpose. The City reserves the right to fiend any increase in the Reserve Fund Requirement caused by the issuance of Additional Parity Bonds by the purchase of a Reserve Fund Surety Policy in the amount of such increase or by making transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts sufficient to accumulate the increase in the Reserve Fund Requirement within sixty (60) months of the issuance of such Additional Parity Bonds. If the Reserve Fund contains only cash and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement at any time, the City shall make monthly transfers from the Revenue Fund to the Reserve Fund, in approximately equal monthly installments, in amounts. sufficient to restore the balance in the Reserve Fund to the Reserve Fund Requirement within twelve (12) months of the date on which the balance in the Reserve Fund was so reduced. If the Reserve Fund contains a Reserve Fund Surety Policy (and no cash) and a draw is inade against such policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to reimburse the amount drawn under such policy within twelve (12) months. If the Reserve Fund contains a combination of cash and a Reserve Fund Surety Policy, and the balance in the Reserve Fund is reduced below the Reserve Fund Requirement by a combination of cash withdrawals and draws against the Reserve Fund Surety Policy, the City shall make monthly transfers from the Revenue Fund, in approximately equal monthly installments, in amounts sufficient to restore the cash balance in the Reserve Fund and reimburse the amount drawn under such policy within twelve (12) months, with reimbursement to be made for all amounts drawn under such policy before any cash deposits are made into the Reserve Fund. Any reimbursement of amounts drawn against a Reserve Fund Surety Policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided herein, Notwithstanding anything to the contrary contained herein, the requirement set forth above in this subsection to maintain the Reserve Fund Requirement in the Reserve Fund shall be suspended for such time as the Net Revenues for each Fiscal Year are equal to at least 1.30 times the Average Annual Debt Service Requirements. In the event that the Net Revenues for any Fiscal Year are less than 1.30 times the Average Annual Debt Service Requirements, the City will be required to commence making Required Reserve Fund Deposits, as provided above, and to continue such Required Reserve Fund Deposits until the earlier of (i) such time as the Reserve Fund contains the Reserve Fund Requirement or (ii) the Net Revenues in each of two consecutive years have been equal to not less than 1.30 times the Average Annual Debt Service Requirements. During such time as the Reserve Fund contains the Reserve Fund Requirement or the obligation to maintain the Reserve Fund Requirement has been suspended pursuant to the paragraph above, the City may, at its option, withdraw all surplus funds in the Reserve 19 #152624110 vl Fund and deposit such surplus in the Interest and Sinldng Fund or otherwise use such amount in any manner permitted by law. (h) Deficiencies in Funds. If in any month there shall not be deposited into any Fund maintained pursuant to this Section 21 the full amounts required herein, amounts equivalent to such deficiency shall be set apart and paid into such Fund or Funds from the first available and unallocated money in the Revenue Fund, and such payment shall be in addition to the amounts otherwise required to be paid into such Funds during the succeeding month or months. To the extent necessary, the rates and charges for the System shall be increased to make up for any such deficiencies. (i) Investment of Funds; Transfer of Investment Income. Money in each Fund maintained pursuant to this Section of this Ordinance may, at the option of the City, be invested as permitted by law, provided that all such deposits and investments shall be made in such manner that the money required to be expended from any Fund will be available at the proper time or times. Any obligation in which money is so invested shall be kept and held in the Fund from which the investment was made. All such investments shall be promptly sold when necessary to prevent any default in connection with the Parity Bonds. All interest and income derived from such deposits and investments shall be transferred or credited as received to the Revenue Fund, and shall constitute Gross Revenues of the System; provided, however, to the extent such interest and income is derived from bond proceeds, such interest and income shall not constitute Gross Revenues of the System and shall only be used for the purposes for which the bond proceeds may be used. 22. Additional Bonds. (a) Additional Parity Bonds. In addition to the right to issue bonds of inferior lien as authorized by law, the City reserves the right to issue, for any lawful purpose, including the refunding of any previously issued, Parity Bonds or any other bonds or obligations of the City issued in comiection with the System, one or more series of Additional Parity Bonds payable from, and secured by a lien on and pledge of, the Net Revenues of the System, on a parity with the Bonds and any other Additional Parity Bonds then outstanding; provided, however, that no Additional Parity Bonds may be issued unless: (i) The Additional Parity Bonds mature on September 1, and interest is payable on March 1 and September 1; (ii) The Interest and Sinking Fund contain the amount of money then required to be on deposit therein; (iii) For either the preceding Fiscal Year or any consecutive twelve (12) month calendar period ending no more than ninety (90) days prior to adoption of the ordinance authorizing such Additional Parity Bonds, Net Revenues were equal to at least 125% of the average annual principal and interest requirements on all Parity Bonds that will be outstanding after the issuance of the series of Additional Parity Bonds then proposed to be issued, as certified by the City's Finance Officer or by an independent certified public accountant or firm of independent certified public accountants; or 20 #152624110_vl (iv) If the City camiot meet the test described in (iii) above, but a change in the rates and charges applicable to the System becomes effective at least sixty (60) days prior to the adoption of the ordinance authorizing Additional Parity Bonds and the City's Finance Officer certifies that, had such change in rates and charges been effective for the preceding fiscal year or 12 consecutive calendar month period ending no more than 90 days prior to adoption of said ordinance, the Net Revenues for such period would have met the test described in (iii) above. (b) Subordinate Lien Obligations. The City reserves the right to issue, for any lawfiil purpose, bonds, notes or other obligations (including but not limited to reimbursement agreements undertaken to obtain reserve fiend security policies) secured in whole or in part by liens on and pledges of the Net Revenues that are junior and subordinate to the lien on and pledge of Net Revenues securing payment of the Parity Bonds. Such subordinate lien obligations may be further secured by any other source of payment lawfiilly available for such purposes. (c) Special Project Bonds, The City reserves the right to issue revenue bonds secured by liens on and pledges of revenues and proceeds derived from Special Projects. 23. Covenants and Provisions Relating to all Parity Bonds. (a) Punctual Payment of Parity Bonds, The City will punctually pay or cause to be paid the interest on and principal of all Parity Bonds according to the teams thereof and will faithfully do and perform, and at all times frilly observe, any and all covenants, undertakings, stipulations and provisions contained in this Ordinance and in any ordinance authorizing the issuance of Additional Parity Bonds. (b) Maintenance of System. So long as any Parity Bonds remain outstanding, the City covenants that it will at all times maintain the System, or within the limits of its authority cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical maimer at a reasonable cost and in accordance with sound business principles. In operating and maintaining the System, the City will comply with all contractual provisions and agreements entered into by it and with all valid rules, regulations, directions or order of any governmental, adi-ninistrative or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation of the System. (c) Sale or Encumbrance of System. So long as any Parity Bond remains outstanding, the City will not sell, dispose of or, except as permitted in this Ordinance, fiirther encumber the System; provided, however, that this provision shall not prevent the City from disposing of any portion of the System which is being replaced or is deemed by the City to be obsolete, warn out, surplus or no longer needed for the proper operation of the System. Airy agreement pursuant to which the City contracts with a person, corporation, municipal corporation or political subdivision to operate the System or to lease and/or operate all or part of the System shall not be considered as an enctimbrance of the System. 21 #152624110_vi (d) Insurance, The City further covenants and agrees that it will keep the System insured with insurers of good standing against risks, accidents or casualties against which and to the extent insurance is customarily carried by political subdivisions of the State of Texas operating similar properties, to the extent that such insurance is available, The cost of all such insurance, together with any additional insurance, shall be a part of the Maintenance and Operation Expenses. All net proceeds of such insurance shall be applied to repair or replace the insured property that is damaged or destroyed, or to make other capital improvements to the System, or to redeem Parity Bonds. (e) Accounts, Records and Audits. So long as any Parity Bonds remain outstanding, the City covenants and agrees that it will maintain a proper and complete system of records and accounts pertaining to the operation of the System in which full, true and proper entries will be made of all dealings, transactions, business and affairs which in any way affect or pertain to the System or the Gross Revenues or the Net Revenues thereof. The City shall after the close of each of its Fiscal Years cause an audit report of such records and accounts to be prepared by an independent certified public accountant or independent firm of certified public accountants. Each year promptly after such audit report is prepared, the City shall furnish a copy thereof without cost to the Municipal Advisory Council of Texas and any holders of Parity Bonds who shall request same. All expenses incurred in preparing such audits shall be Maintenance and Operation Expenses. (f) Competition. To the extent it legally may, the City will not grant any franchise or allow for the acquisition, construction or operation of any competing facilities which might be used as a substitute for the System and will prohibit the operation of any such competing facilities. (g) Pledge and Encumbrance of Net Revenues. The City covenants and represents that it has the lawfiul power to pledge the Net Revenues to the payment of the Parity Bonds and has lawfully exercised such power under the Constitution and laws of the State of Texas. The City further covenants and represents that, other than to the payment of the Parity Bonds, the Net Revenues are not and will not be pledged to the payment of any debt or obligation of the City, or in any other manner encumbered unless such pledge or encumbrance is junior and subordinate to the lien and pledge securing payment of the Parity Bonds. (h) Remedies. This Ordinance shall constitute a contract between the City and the holders of the Parity Bonds from time to time outstanding, and shall remain in effect until the Parity Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall have been made as provided herein, In the event of a default in the payment of the principal of or interest on any of the Parity Bonds or a default in the performance of any duty or covenant provided by law or in this Ordinance, the holder or holders of any of the Parity Bonds, as appropriate, may pursue all legal remedies afforded by the Constitution and laws of the State of Texas to compel the City to remedy such default and to prevent further default or defaults. Without in any way limiting the generality of the foregoing, it is expressly provided that any holder of any of the Parity Bonds may at law or in equity, by suit, action, mandamus, or other proceedings, enforce and compel performance of all duties required to be performed by the City under this Ordinance, including the slaking and collection of reasonable and sufficient rates and charges for the use and services of the System, the deposit of the Gross Revenues thereof into the 22 #152624110_vl special funds as herein provided, and the application of such Gross Revenues and Net Revenues in the main -ter required in this Ordinance. Acceleration of payment of principal of or interest on the Parity Bonds shall not be a remedy of default. (i) Legal Holidays. In any case where the date fixed for payment of interest on or principal of the Parity Bonds or the date fixed for redemption of any Parity Bonds shall be a legal holiday or a day on which a paying agent for the Parity Bonds is authorized by law to close, then payment of interest or principal by such paying agent need not be made on such date but may be made on the next succeeding business day with the same force and effect as if made on the date fixed for such payment and no interest shall accrue for the period from such date to the date of actual payment. 0) Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deeined to be in compliance with the requirements for publication thereof. 24. Further Proceedings. After the Bonds to be initially issued shall have been executed, it shall be the duty of the Mayor and other appropriate officials and agents of the City to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General of the State of Texas, for examination and approval. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Bonds to be initially issued, the Comptroller of Public Accounts (or the Comptroller's bond clerk or an assistant bond clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein and the seal of said Comptroller shall be impressed or placed in facsimile, thereon. 25. Engagement of Professionals. The City Council hereby (i) confirms the engagement of RBC Capital Markets, LLC, as Municipal Advisor, to the City, (ii) confirms the engagement of Holland & Knight LLP, as bond counsel to the City, and (iii) approves the underwriting syndicate as identified in the Pricing Certificate, 26. Proceeds of Sale. Proceeds from the sale of the Bonds, together with other fluids of the City, if any, shall, promptly upon receipt by the City, be applied as set forth in the Pricing Certificate. Any proceeds remaining after the accomplishment of such purposes, including interest earnings on the investment of such proceeds, shall be deposited to the Interest and Sinking Fund, 27. Bond Insurance. (a) In order to obtain the lowest attainable interest rates on the Bonds, the Pricing Officers are authorized to enter into a credit agreement with one or more Board Insurers to obtain one or more bond insurance policies with respect to all or a portion of the Bonds as set forth in the Pricing Certificate. The Pricing Officers are authorized to execute and the City Clerk is authorized to attest and affix the City's seal to any documents required in 23 il152624110vl connection with the purchase of any such policy or policies. The City hereby agrees to provisions set forth in the Pricing Certificate. Any reimbursement of amounts drawn against such insurance policy shall be limited to the amounts actually paid under such policy, and the City shall have no obligation to make any reimbursement payment with respect to any such policy except as provided therein. Such amounts shall be limited to the extent permitted by law and subject to annual appropriation by the City. 28. Paying Agent/Registrar Agreement. The paying agent/registrar agreement (the "Paying Agent Agreement") by and between the City and the Paying Agent, a form of wluell is attached to the Pricing Certificate, is hereby approved, together with such changes or revisions as may be necessary to accomplish the refunding or benefit the City, an is hereby authorized to be executed by the Mayor or Mayor Pro Tern and City Clerk for and on behalf of the City. 29, Official Statement. The Preliminary Official Statement and the Official Statement prepared in the initial offering and sale of the Bonds have been and are hereby authorized, approved and ratified as to form and content. The use of the Preliminary Official Statement and the Official Statement in the reoffering of the Bonds by the Underwriter is hereby approved, authorized and ratified. The proper officials of the City are hereby authorized to execute and deliver a Bond pertaining to the Preliminary Official Statement and the Official Statement as prescribed therein, dated as of the date set forth herein. 30. No Personal Liability. No recourse shall be had for payment of the principal of or interest on any Bonds or for any claim based thereon, or on this Ordinance, against any official or employee of the City or any person executing any Bonds. 31. Continuing Disclosure Undertaking. (a) Annual Reports, The City undertakes and agrees for the benefit of the Bond holders to provide annually to the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized in this Ordinance (i) under the headings "CITY WATERWORKS AND SEWER SYSTEM REVENUE DEBT," "ADMINISTRATION Or THE CITY," "THE SYSTEM -WATER AND SEWER RATES" and in APPENDIX B. The information to be provided shall include the financial statements of the City prepared in accordance with the accounting principles the City imay be required to employ fiom time to time pursuant to State law or regulation and audited, if the audit is completed within the period during which they must be provided. If the audit of such financial statements is not completed within such period, then the City shall provide unaudited financial statements for the applicable fiscal year to the MSRB within such six (6) month period, and audited financial statements when the audit report on such statement becomes available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Seetion may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. 24 #152624110_vl (a) Material Event Notices, The City shall notify the MSRB, in a timcly manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: i. Principal and interest payment delinquencies; ii. Non-payment related defaults, if material; iii. Unscheduled draws on debt service reserves reflecting financial difficulties; iv. Unscheduled draws on credit erflianceinents reflecting financial difficulties; V. Substitution of credit or liquidity providers, or their failure to perform; vi. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determination of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or detern-inations with respect to the tax status of the security, or other material events affecting the tax status of the security; vii. Modifications to rights of Bondholders, if material; viii. Bond calls, if material, and tender offers; ix. Defeasances; X. Release, substitution or sale of property securing repayment of the securities, if material; xi, Rating changes; Note to paragraph (xi): For the purposes of the event identified in paragraph (k) of this section, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding tender state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. xii, Banks-uptcy, insolvency, or receivership, or similar event of the obligated person; xiii. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement or undertake such action, or the termination of a 25 #152624110 vl definitive agreement relating to any such actions, other than pursuant to its terms, if material; xiv. Appointment of a successor or additional paying agent or the change of name of a paying agent, if material: xv. Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if n-aterial; and xvi. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City any of which reflect financial difficulties. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with section (a) above. All documents provided to the MSRB shall be accompanied by identifying information as prescribed by the MSRB, The City reserves the right to file all information and notices required under this Article through the facilities of Disclosure USA or any other central post office approved by the SEC for such purpose. (b) Limitations Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the ineaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with Texas law that causes Bonds no longer to be outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. Tile City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION OR FROM ANY STATEMENT MADE PURSUANT TO THIS SECTION. HOLDERS OR BENEFICIAL OWNERS OF BONDS MAY SEEK AS THEIR SOLE REMEDY A WRIT OF MANDAMUS TO COMPEL THE CITY TO COMPLY WITH ITS AGREEMENT. 26 #152624110 v1 No default by the City with respect to its continuing disclosure agreement shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status or type of operations of the City, if (i) the agreement, as amended, would have permitted the Underwriter to purchase or sell the Bonds in the initial primary offering in compliance with the Rule, taking into account any amendments or interpretations of such rule to the date of such amendment, as well as such changed circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment, or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also amend or repeal the obligations and agreement in this Section if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, and the City may amend the agreement in its discretion in any other circumstance or manner, but in either case only to the extent that its right to do so would not prevent an underwriter from lawfully purchasing or reselling the Bonds in the primary offering of the Bonds in compliance with the Rule. If the City amends its agreement, it must include with the next financial information and operating data provided in accordance with its agreement an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of information and operating data so provided. 32. Repealer. All orders, resolutions, and ordinances, and parts thereof inconsistent herewith are hereby repealed to the extent of such inconsistency. 33. Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so ordered. 34. Amendment of Ordinance. (a) If and to the extent permitted by this Ordinance, the owners of the Bonds aggregating in the principal amount of 5 1 % of the aggregate principal amount of the outstanding Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City provided, however, that without the consent of the owners of all of the Bonds at the time outstanding, nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Bonds so as to: (1) Make any change in the maturity of the outstanding Bonds; (2) Reduce the rate of interest borne by any of the outstanding Bonds; (3) Reduce the amount of the principal payable on the outstanding Bonds; 27 #152624110 vi (4) Modify the terms of payment of principal of or interest on the outstanding Bonds, or impose any conditions with respect to such payment; (5) Affect the owners of less than all of the outstanding Bonds then outstanding; (6) Change the percentage of the principal amount of outstanding Bonds, necessary for consent to such amendment. (b) if at any time the City shall desire to amend this Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial newspaper or journal published in The City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agent for inspection by all owners of the Bonds. Such publication is not required, however, if notice in writing is given to each owner of the outstanding Bonds. Not less than thirty (30) days' notice of the proposed amendment shall also be given by the City to the Underwriter. (c) Whenever at any tine not less than thirty (30) days, and within one (1) year, from the date of the publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the owners of at least 51% in aggregate principal amount of the Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agent, the City Council may adopt the amendatory resolution in substantially tie sanre form. (d) Upon adoption of any amendatory resolution pursuant to the provision of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory resolution, and the respective rights, duties and Bonds under this Ordinance of the City and all the owners of then outstanding Bonds, shall thereafter be determined, exercised and enforced hereunder, subject in all respect to such amendments. (e) Any consent given by the owner of the outstanding Bonds pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future owners of the same Bonds, during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agent and the City, but such revocation shall not be effective if the owners of 51% in aggregate principal amount of the then outstanding Bonds, as in this Section defined have, prior to the attempted revocation, consented to and approved the amendment, (f) For the purpose of this Section, the fact of the owning of Bonds, by any owner of Bonds, and the amount and number of such Bonds, and the date of their owning same shall be determined by the Registration Books of the Paying Agent/Registrar. 2s 4152624110 vl (g) The foregoing provisions of this Section notwithstanding, the City by action of the City Council (or as item two (2) by the City Council or by the Mayor, Mayor Pro Tem, City Manager or Chief financial Officer as to changes prior to issuance to comply with requirements by the Attorney General of Texas or Underwriter) may amend this Ordinance for any one or more of the following purposes; (1) To add to the covenants and agreements of the City in this Ordinance contained, other covenants and agreements thereafter to be observed, grant additional rights or remedies to the owners of bonds or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of clarifying matters or questions arising under this Ordinance, as are required by the Attorney General of Texas to obtain the Attorney General's approval of the issuance of the Bonds or required by the Underwriter before their issuance or for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained in this Ordinance, or at any time before or after issuance as are necessary or desirable and not contrary to or inconsistent with this Ordinance, and in all events which shalt not adversely affect the interests of the owners of the Bonds. (3) To modify any of the provisions of this Ordinance in any other respect whatever, provided that: (i) such modification shall be, and be expressed to be, effective only after all Bonds outstanding at the date of the adoption of such modification shalt cease to be outstanding, and (H) such modification shalt be specifically referred to in the text of all Bonds issued after the date of the adoption of such modification. 35. Related Matters. To satisfy in a timely mariner all of the City's obligations under this Ordinance, the Mayor or Mayor Pro Tem, City Manager, Chief financial Officer, City Clerk or any Deputy City Clerk, and all other appropriate officers and agents of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance of the Bonds, including without limitation, executing and delivering on behalf of the City all Bonds, consents, receipts, requests, and other documents as may be reasonably necessary to satisfy the City's obligations under this Ordinance and to direct the application of fields of the City consistent with the provisions of this Ordinance. 36. Open Meeting. It is hereby officially found and determined that the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551 of the Texas Government Code. 37. Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the 29 4152624110_vt terms or provisions hereof, This Ordinance and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Parity Bonds and the validity of the lien on and pledge of the Net Revenues to secure the payment of the Parity Bonds. 38, If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect arty of the remaining provisions of this Ordinance, [The remainder of this page has intentionally been left blank.] 30 # 152624110 v 1 PASSED BY THE CITY COUNCIL of the City of Beaumont this 22nd day of November, 2022. Mayor ATTEST: City Clerk 31 #152624110 of EXHIBIT "A" FORM OF PRICING CERTIFICATE 2 November 22, 2022 Consider approving an amendment to Chapter 22 of the Code of Ordinances, Article 22.03 Industrial Waste Standards TEXAS TO: City Council FROM: Kemieth R. Williams, City Manager PREPARED BY: Mike Harris, Director of Water and Sewer Operations MEETING DATE: November 22, 2022 REQUESTED ACTION: Council consider a resolution approving an amendment to Chapter 22 of the Code of Ordinances, Article 22,03 Industrial Waste Standards. BACKGROUND The ordinance provides legal authority for the City of Beaumont to execute its Industrial Pretreatment Program by regulating the discharge of industrial wastewater and the use of public and private sewers. The objectives of the program are to prevent the introduction of pollutants into the POTW (Publicly Owned Treatment Works) that will pass through or interfere with its operation, protect POTW personnel who may be affected by the wastewater, and enable the City to comply with its Texas Pollutant Discharge Elimination System (TPDES) permit requirements. In 2005, the EPA published the Final Streamlining Rule in the Federal Register revising several provisions of the General Pretreatment Regulations (40 CFR Part 403). The City of Beaumont first submitted program modifications to TCEQ on June 18, 2015, followed by additional submissions on October 11, 2021, April 12, 2022, and August 15, 2022. TCEQ has determined that the nonsubstantial program modification submission is both technically complete and approved and has directed the City to now proceed with adequate public participation, as well as to obtain City Council approval of this program modification. In 2016, The City of Beaumont authorized Freese and Nichols, Inc., to reevaluate the TBLL's (Technically Based Local Limits) for its Hillebraridt Wastewater Treatment Plant in accordance with the provisions of the City's TPDES permit. TBLL's, also referred to as local limits, are wastewater limitations that apply to commercial and industrial facilities that discharge to a POTW. In order to establish or revise teelmically based local limits, POTW's must use the best available technical information to determine, for each pollutant of concern, the maximum loading that can be accepted by the treatment facility. TCEQ has completed its review of the proposed substantial modification to incorporate the revised TBLL's into the City of Beaumont's approved pretreatment program and has determined ORDINANCE NO. ENTITLED AN ORDINANCE REPEALING THE CURRENT ORDINANCE FOR CHAPTER 22 OF THE CODE OF ORDINANCES, ARTICLE 22.03 INDUSTRIAL WASTE STANDARDS TO COMPLY WITH TCEQ AND EPA REQUIREMENTS WHEREAS, the current Ordinance for Chapter 22 of the Code of Ordinances, Article 22.03 Industrial Waste Standards is being repealed and a new Ordinance is being proposed to remain in compliance with TCEQ and EPA requirements as attached hereto as "Exhibit A," and; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the new Ordinance is required to remain in compliance with TCEQ and EPA requirements; and, THAT the new proposed changes for Article 22.03 Industrial Waste Standards is hereby adopted and is attached hereto in "Exhibit A." The meeting at which this ordinance was adopted 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 November, 2022. Mayor Robin Mouton - that it is tedmically complete. Page 2 Amending Chapter 22 of the Code of Ordinances November i . 2022 FUNDING SOURCE NIA RECOMMENDATION Approval of the ordinance. City of Beaumont's Industrial Pretreatment Program (Article 22.03 Industrial Waste Standards) Fact Sheet: Pretreatment Program Summary of Changes Mahe Under the EP.A.'s Streamlining Rule What is Industrial Pretreatment? Industrial Pretreatment sets forth uniform requirements for industrial users of the Publicly Owned Treatment Works (POTW) for the City of Beaumont, which includes the sanitary sewer collection system and wastewater treatment plant, and enables the City to comply with all applicable State and Federal laws, including the Clean Water Act and the General Pretreatment Regulations. The objectives of the program are, A. To prevent the introduction of pollutants into the POTW that will interfere with its operation; B. To prevent the introduction of pollutants into the POTW that will pass through the POTW, inadequately treated, into receiving waters, or otherwise he incompatible with the POTW; C. To protect both POTW personnel who may be affected by wastewater and sludge in the course of their employment and the general public; D. To promote reuse and recycling of industrial wastewater and sludge from the POTW; E. To onable the City to comply with its National Pollutant Discharge Elimination System permit conditions, sludge use and disposal requirements, and any other Federal or State laws to which the POTW is subject. How is it administered? The Director of Water and Sewer Operations and/or the Water Quality Control Manager for tile, City of Beaumont administer, implement, and enforce the provisions of the Industrial Pretreatment Program through the legal authority granted by the Industrial Waste Standards ordinance, The ordinance authorizes; A. The issuance of individual wastewater discharge permits; B, Provides for monitoring, compliance, and enforcement activities; C. Establishes administrative review procedures; D. Requires industrial user reporting. What is the Streamlining Rule? In 2005, the EPA published the Final Streamlining Rule in the Federal Register revising several provisions of the General Pretreatment Regulations (40 CFR Part 403) with the goal of providing the Control Authority (the City) the flexibility to reduce the burden of technical and administrative requirements without itide mill ning the environmental objectives of the Pretreatment Program. Thereafter, Approval Authorities (states) adopted the revisions and began requiring Control Authorities to modify their pretreatment prograins and submit these modifications for review. The City of BeaUm011t first submitted program modifications to TCEQ in 2015. The city and TCEQ collaborated oil inclusion of the required streamlining provisions in the pretreatment program up until August 2022, when the final submission was reviewed and considered technical complete by the Approval Authority. While tine majority of the regulatory changes made in the final Pretreatment Streamlining Rule are not required and therefore.have not been adopted by the state or the city, there are a few streamlining provisions that are considered requirements. What are the Streamlining Rule regitireinents7 t . Requirements to control slug discharges, if determined by the POTW to be necessary. Slug discharge is defined as "ally discharge of a doll -routine, episodic nature, including but not limited to an accidental spill or a non -customary batch discharge, which has a reasonable potential to cause interference or pass through, or in any other way violate the POTW's regulations, local limits or permit conditions. 46 This provision requires the pretreatmeilt program to include all applicable slug control requirements in the SIU's (Significant Industrial User) control mechanism (permit), and evaluate all SM's for the need for a slug control plan at least one time if the POTW has not yet done so. It also requires SIU's to notify the POTTY immediately of airy changes at its facility affecting the potential for a slug discharge. • The city's Industrial Pretreatment Program already implements various levels of slug discharge requirements, therefore this provision is only slightly more stringent and considered minor. 2. Significant Industrial User (SR7) control mccbanisms must contain any BMPs (Best Management Practices) required by a Pretreatment Standard, local limits, state, or local law, and documentation of compliance with BMP requirements trust be maintained as part of the SIU's and POTW's recordlceeping requirements. • Best Management Practices (BMPs) is defined as "a schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to implement the prohibitions ... BMPs include treatment requirements, operating procedures, and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw materials storage." + This revision merely clarifies that applicable BMPs would be required to be included in control meclianisms, and that the POTW should have the legal authority and procedures to implement it. 3. How and wheii the POTW can designate a "dilly authorized employee" to sigh POTW reports. • The pretreatment regulations now specify that the POTW must, in writing by the principal executive officer or ranking elected official of the POTW, authorize the use of a "duly authorized employee." • POTWs are not required to make this change, although they will be required to follow the new state requirements relating to "duly authorized employee" signatures upon their adoption. 4. Revised and broadened language that define numeric and narrative violations constituting SignifcantNoncompliance (SNC) • Significant Noncompliance (SNC) is defined as "any violation or group of violations, which may include a violation of Best Management Practices, which the POTW determines will adversely affect the operation or implementation of the local pretreatment program." • The new provision slightly broadens discretion as to what can be interpreted by the POTW as adversely affecting the collection system. Additionally, late report deadlines were extended from N days to 45 days, and in the event SNC has occurred, publication can now take place in any paper of general circulation within the jurisdiction that provides meaningful public notice. conellusioll The City of Beaumont's Industrial Pretreatment Program is mature and robust, and impact of the EPA's Streamlining Rule is considered minimal, producing little to no ramifications on permitted industries. Most revisions affect uniformity of pretreatment program documentation, with no changes in curront legal authority provided by ordinance concerning administrative and judicial enforcement remedies. Cory Sellars Water Quality Control Manager City of Beaumont's Industrial Pretreatment Program (Article 22.03 Industrial Waste Standards) Fact Sheet: Reevaluation of Technically Based Local Limits (TBLLs) What are Techarleally Based Local Limits (TBLLs)? Publicly Owned Treatment Works (POTWs) are responsible for knowing tile, character and volume of pollutants being discharged into their wastewater treatment system in order to protect the treatment facility, receiving water quality, worker health and safety, and ensure that the sludge use and disposal practices are adequate to Protect public health and tite environment. Technically Based Local Limits (TBLLs), also referred to as local limits, are wastewater limitations that apply to commercial and industrial facilities that discharge to a POTW. In order to establish or revise technically based local limits, POTWs must use the best available technical information to determine, for each pollutant of concern, the maximum loading that can be accepted by each treatment facility. How are local limits developed? The City of Beaumont authorized Freese and Nichols, Inc. in 2016 to reevaluate the TBLLs for its Hillebrandt WastewaterTreatment Plant in accordance with the provisions of the city's Texas Pollutant Discharge Elimination System (TPDES) permit. The local limits reevaluation process starts with a sampling plan being developed and executed, whereby Pollutants of Concern (POCs) are identified in the city's wastewater, as well as in the sludge generated and disposed of by the WWTP. Based upon the analytical results of the sampling, and incorporating flow rates, removal efficiencies, and (lie treatment plant's Maximum Allowable Headworks Loading, the data is compiled and concentrations of POCs are proposed to TCEQ for their approval. What is the current status of the City ofBeauniont's TBLL reevaluation? The TCEQ has completed its review of tile, proposed substantial modification to incorporate the revised Technically Based Local Limits (TBLLs) into the City of Beaumont's approved pretreatment program, The proposed substantial modification package was originally submitted in May of 2016. The TCEQ has determined that this substantial program modification is technically complete, and the TCEQ is in agreement with the City of Beaumotit on the proposed TBLLs for the Hillebrandt Wastewater Treatmetit Facility, as shown in the table below: Pollutant of Concern )l-'Cillebrandt VVWTF TEUs (mg/L) Proposed by the CA and accepted by the TCEQ Arsezaic .0 Cadmium 0.3 Chroruiurn, Total 21.0 _Copper 1.0 Tanidc Total 1 A Lead 1,8 MercaK,V o.003 Nie,kel 4.0 Selenillm 1, Silver I iA Zinc 8.o Non l henol 3.72 Oil & Grease 200 Phenol 10 What has chmiged? As a result of the City of Beaumont's reevaluation of its TBLLs, all concentration limits remain Unchanged except for the following two: • Mercury - 0.05 nag/L to 0,005 nag/L • Silver - 3,00 mg/L to 1.18 mg/L In addition, the organic compotmd Nonylplimol was detected iti TBLL sampling and has thus been added to (lie pretreatment program's POC list at an accepted limit of 3.72 nag/L, Based upon the type of industrial activity conducted by permittees within the City of Beau11-1011t, tlaese new limits should have little to no impact. Furthermore, it should be noted that the City of Beaumont's TPDES permit was renewed in Jamary of 2019, and is not set to expire until .lattuary of 2024. Although the new TBLLs are required by TCEQ to be adopted into the lrtdustrial Waste Ordinatrce, the city is not required to enforce tale new limits until the new TPDES permit is issued. This can be done by the city drafting a resolution stating its intent to delay effectiveness of the limits until issuance of the ttew permit. Cory Sellars Water Quality Control Manager ARTICLE 22,03 INDUSTRIAL WASTE STANDARDS SEMON 22.03A01—GENE R" PROVISIONS (a) Purpose and Policy This ordinance sets forth uniform requirements for Users of the Publicly Owned Treatment Works (POTW) for the City of Beaumont (City) and enables the City to comply with all applicable State and Federal laws, iRzcluding the Clean Water Act (33 United States Code [U.S.C.] section 1251 et seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations [CFIt] Part 403). The objectives of this ordinance are: (1) To prevent tho introduction of pollutants hrto the POTW that will interfere with its operation; (2) To prevent the introduction of pollutants into the POTW that will pass through the POTW, inadequately treated, into receiving waters, or otherwise be incompatible with the POTW; (3) To protect both POTW personnel who may be affected by wastewater and sludge in the course of their employment and the general public; (4) To promote reuse and recycling of industrial wastewater and sludge from the POTW; (S) To enable the City to comply with its Texas Pollutant Discharge Elimination System permit conditions, sludge Use and disposal requirements, and any other Federal of State laws to which the POTW is subject. This ordimoce shall apply to all Users of the POTW. The ordinance atithorizes the issuance of individual wastewater discharge permits; provides for monitoring, compliance, and enforcement activities; establishes administrative review procedures; and requires User reporting. This ordinance does not provide for the recovery of operations, maintenance, or replacement costs of the POTW or the costs associated with the construction of collection and treatment systems used by the Industrial Users in proportion to their use of the POTW, which are the subject of separate enactments, (1) Administration The Director and/or the Water Quality Manager, except as otherwise provided herein, shall administer, implement, and enforce the provisions of this ordinance. Any powers granted to or duties imposed upon the Water Quality Manager maybe delegated by the Water Quality Manager to a duly authorized deputy, agent, or representative. (c) A.bbx,evintions The following abbreviations, when used in this ordinance, shall have the designated meanings., BOD---Biocliemical Oxygen Demand - BMP -- Best Management Practice Page t of 34 EXHIBIT "A" - BMR— BaselineMonitoringReport - CFR — Code of Federal Regulations ClU W-- Categorical Industrial User COD — Chemical Oxygen Demand - EPA — U.S. Environmental Protection Agency - gpd — Gallons per day IU — Industrial User mg/L— Milligrams per liter NPDES — National Pollutant Discharge Elimination System NSCIU —Non-Significant Categorical Industrial User POTW — Publicly Owned Treatment Works RCRA — Resource Conservation and Recovery Act SIU — Significant Industrial User SNC — Significant Noncompliance TAC —Texas Administrative Code TCEQ—Texas Commission on Environmental Quality TSS — Total Suspended Solids U.S.C. — United States Code (d) Definitions Unless a provision explicitly states otherwise, the following terms and phrases, as used in this ordinance, shall have the meanings hereinafter designated. Act or "tile Act": The Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. section 1251 et seq. Administrative Orders. Enforcement documents which direct an Industrial User to undertake or cease specific activities. The order may take tine form of Cease & Desist Orders, Consent Orders, Show Cause Orders, and/or Compliance Orders. Approval Authority. Texas Commission oil Environmental Quality (TCEQ). Authorized or Duly Authorized Representative of the Industrial User. (1) If file User is a corporation: (A) The president, secretary, treasurer, or a vice-president of tile, corporation in charge of a principal business function, or any other person who performs similar policy or decision - making ftmetions for the corporation; or (B) The manager of one or more manufacturing, production, or operating facilities, provided the manager is autliorized to make management decisions that govern the operation of tile regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and (lit -cot other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for individual wastewater discharge permit requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. Page 2 of'34 (2) If the User is a partnership or sole proprietorship: a genncral partner or proprietor, respectively, (3) If tine User is a federal, State, or local governmeital facility: a director or highest official appointed or designated to oversee the operation and performanec of tine activities of the government facility, or their designee. (4) The individuals described in paragraplis (1) through (3), above, may designate a Duly Authorized Representative if the authorization is in writing, the authorization specifies the individual or position responsible for tine overall operation of the facility from which the discharge originates or leaving overall responsibility for environmental matters for the company and the written authorization is submitted to the City. Best Management Practices or BMPs: means schedules of activities, prohibitions of practices, maintenance procedures, and other Management practices to implement the prohibitions listed in Section 22.03.002 (1) and (2). [40 C> R 403,5(a)(1) and (b)j. BMPs include treatment requirements, operating procedures, and practices to control plant site runoff, spillage ar leaks, sludge or waste disposal, or drainage from raw materials storage, Biochemical Oxygen Demand or BOD: The quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedures for five (5) days fit twenty (20) degrees centigrade, usually expressed as a concentration (e.g., mg/1). Building Drain: That part of the lowvest horizontal piping of a drainage system which receives the discharge waste and other drainage pipes inside the walls of the building and conveys it to the building sewer, beginning three (3) feet outside the inner face of the building wall. BuildingSewver: Tine extension from the Wilding drain to the public sewver or other }place of disposal. Cateyorieal Industrial User_ An Industrial User subject to a categorical Pretreatment Standard or categorical Standard. Categorical Pretreatment Standard or Categorical Standard: Any regulation containing pollutant discharge limits promulgated by EPA in accordance with sections 307(b) and (c) of the Act (33 U.S.C. section 1317) that apply to a specific category of Users and that appear in 40 CFR Chapter I, Subchapter N, Parts 405-471. Chemical Oxygen Dcmaud or COD: A measure of the oxygen required to oxidize all compounds, both Organic and inorganic, in water, City: The City of Beaumont. Composite Sample: A mixture of individual samples (grab samples) collected over a specific period Of time (e.g., twen(y-four (24) hours for a daily composite). Control Authority: The City of Beaumont. Daily Discharge: The discharge of a pollutant measured during a calendar day or any 24 hour period that reasonable represents the calendar day for purposes of sampling, Page 3 of34 Daily Maxirnrnn: The arithmetic average of all effluent samples for a pollutant collected during a calendar day. Daily Maximum Limit: The maxirruum allowable discharge limit of a pollutant during a calendar day, Where Daily Maximum Limits are expressed in terms of a concentration, the daily discharge is the arithmetic average measurement of the pollutant concentration derived from all nneasrrements taken that clay. Direct Discharge: The discharge of treated or untreated wastewater directly to the water of the State of Texas. Director: The Director of Water and Sewer Operations of the City of Beaumont, or his authorized deputy, agent, or representative, Domestic Wastewater; Waterborne waste nornnally discharged from the sanitary convenience of dwellings (including apartment houses and hotels), office buildings, factories, and irnstitutions, free from storm water, surface water, and industrial waste. Environmental Protection Agency or EPA; The US. Environmental Protection Agency or, where appropriate, the Regional Water Management Division Director, the Regional Administrator, or other duly authorized official of said agency, Existing Source; Any source of discharge that is not a "New Source." Extraterritorial Jurisdiction: An area outside the corporate limits of a municipality as defined in Texas Local Government Code, §42.021. Grab Sample, A sample that is taken from a waste stream without regard to the flow in the waste stream and over a period of time not to exceed fifteen (15) minutes. Hazardous waste: Any liquid, semi -liquid or solid waste (or combination of wastes) which, because of its quantity, concentration, or physical, chemical or infectious characteristics, may; (1) Have any of the following characteristics: toxic, corrosive, an irritant, a strong sensitizer, flainniable or combustible, explosive or otherwise capable of causing substantial personal injury or illness; (2) Pose a substantial hazard to human health or the environinent when improperly treated, stored, transported, or disposed of, or otherwise improperly managed, and is identified or listed as a hazardous waste as defined by the Texas Solids Waste Disposal Act, Chapter 361 Health and Safety Code, or the Administrator, EPA, pursuant to the federal Solid Waste Disposal Act, as amended by RCRA (1976) and as may be amended in the future. Holding Trunk Waste: Any waste from holding tanks such as vessels, chemical toilets, campers, trailers, septic tanks, and vacuum -pump tank trucks. Indirect. Discharge or Discharge: The introductian of pollutants into the POTW from any nondonlestic Soucrce. Industrial User: Any person, business or governmental agency that discharges nondonnestic waste to the City's wastewater treatment system. Page 4 of 34 Industrial Waste: All gases, solids, or liquids resulting from any industrial, manufacturing, food processing, oil and/or gas well and/or gas field site operations or processes, or from the development of any natural resource, or any mixture of these Willi water or domestic Wastewater. Industrial Wastewater Discharge Permit: A permit required of all significant industrial users to deposit or discharge industrial wastewater to the City's wastewater treatment system. This permit does not grant a waiver to allow discharge of any waste prohibited by this article or allow discharge of any waste that exceeds the limit or is in violation of the requirements of this ordinance. lnstantaneous LlniiV The maximum concentration of a pollutant allowed to be discharged at any time, determined from the analysis of any discrete or co€nposited sample collected, independent of the industrial flow rate and the duration of the sampling event. Interference: A discharge that, alone or in conjunction With a discharge or discharges from other sources, inhibits or disrupts the POTW, its treatment processes or operations or its sludge processes, use or disposal; and therefore, is a cause of a violation of the City's NPDES permit or of the prevention of sewage sludge use or disposal in compliance with any of the following statutory/regulatory provisions or permits issued thereunder, or any more stringent State or local regulations: section 405 of the Act; the Solid Waste Disposal Act, including Title 11 commonly referred to as the Resource Conservation and Recovery Act (RCRA); any Slate regulations contained in any State sludge management plan prepared pursuant to Subtitle D of the Solid Waste Disposal Act; the Clean Air Act; the Toxic Substances Control Act; and the Marine Protection, Research, and Sanctuaries Act. Local Limit: Specific discharge limits developed and enforced by the City upon industrial or commercial facilities to implement the general and specific discharge prohibitions listed in 40 CFR 403.5(a)(1) and (b). Maximum Discharge Limit: The flow limitations as prescribed to collection system capacity and allowable head loading at the POTW, Medical Waste: Isolation wastes, infectious agents, human blood and blood products, pathological wastes, sharps, body parts, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. Monthly Average: The sum of all "daily discharges" measured during a calendar month divided by the number of "daily discharges" neasured during that month. Monthly Average Limit: The highest allowable average of "daily discharges" over a calendar month, calculated as the sum of all "daily discharges" measured dining a calendar month divided by the number of "daily discharges" measured during that month. May. "May" is a permissive or discretionary statement. New Source: (1) Any building, structure, facility, or installation from which there is (or may be) a discharge of pollutants, the C01IStRiCtiOn of which commenced after the publication of proposed Pretreatment Standards under section 307(c) of the Act that will be applicable to such source if such Standards are thereafter promulgated in accordance with that section, provided that: rage 5 of 34 (A) The building, structure, facility, or installation is constructed at a site at which no other source is located; or (B) The building, structure, facility, or installation totally replaces the process or production equipment that causes the discharge of pollutants at all Existing Source; or (C) The production or wastewater generating processes of the building, structure, facility, or installation are substantially independent of an Existing Source at the same site. In determining whether these are substantially independent, factors such as the extent to which the new facility is integrated with the existing plant, and the extent to which the new facility is engaged in the same general type of activity as the Existing Source, should be considered, (2) Construction on a site at which an Existing Source is located results in a modification rather than a New Source if the construction does not create a new building, structure, facility, or installation meeting the criteria of Section (1) (B) or (C) above but otherwise alters, replaces, or adds to existing process or production equipment. (3) Construetion of a New Source as defined under this paragraph has commenced if the owner or operator has: (A) Begun, or caused to begin, as part of a continuous olsite construction program (i) any placement, assembly, or installation of facilities or equipment; or (ii) significant site preparation work including clearing, excavation, or removal of existing buildings, structures, o' facilities which is necessary for the placement, assembly, or installation of new source facilities or equipment; or (13) Entered Into a binding contractual obligation for the purchase of facilities or equipment which is intended to be used in its operation within a reasonable time, Options to purchase or contracts which can be terminated or modified without substantial loss, and contracts for feasibility, engineering, and design studies do not constitute a contractual obligation under this paragraph. Noncontact Cooling Water: Water used for cooling that does not come into direct contact with any raw material, intermediate product, waste product, or fillished product. Pass Through: A discharge which exits the POTW into waters of file United States in quantities or coil centrati oil s Which, alone or ill conjunction with a discharge or discharges from other sources, is a cause of a violation of any requirement of the City's NPDES permit, illcluding all increase ill the Illagtlitude or duration of a violation. Person: Ally individual, partne►ship, copartnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Federal, State, and local governmental erntities, pH: A measure of the acidity or alkalinity of a solution, expressed in standard units. Page 6 or34 Pollutant: Dredged spoil, solid waste, incinerator residuc, filter backwash, sewage, garbage, sewage sludge, munitions, Medical Wastes, chemical wastes, biological materials, radioactive materials, beat, wrecker[ or discarded equipment, rock, sand, cellar dirt, municipal, agricultural and industrial wastes, and certain characteristics of wastewater (e.g., pH, temperature, TSS, turgidity, color, BOD, COD, toxicity, or odor). Pretreatment: The reduction of the amor1nt of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater prior to, or in lieu of, introducing such pollutants into the POTW. This reduction or alteration can be obtained by physical, chemical, or biological processes; by process changes; or by other means, except by diluting the concentration of the pollutants unless allowed by an applicable Pretreatment Standard, Pretreatment Inspector: The person designated by the City to supejvise the operation of the pretreatment program, and who is charged with certain duties and responsibilities by this ordinance. The terns also means a Duly Autlto€-ized Representative of the Director of Water and Sewer Operations and/or Water Quality Manager, Pretreatment Requirements: Any substantive or procedural requirement related to pretreatment imposed on a User, other than a Pretreatment Standard. Pretreatment Standards or Standards: Pretreatment Standards shall mean prohibited discharge standards, categorical Pretreatment Standards, and Local Limits, Process Wastewater: Any water which, during manufacturing or processing, comes into direct contact with or results from the production or use of any raw material, intermediate product, finished product, byproduct, or waste product. Prohibited. Discharge Standards or Prohibited Discharges: Absolute prohibitions against the discharge of certain substances; these prohibitions appear in Section 22.03,002 (a) of this ordinance. Publicly Owned Treatnxent Works or POTW: A treatment works, as defined by section 212 of tite Act (33 U.S.C, section 1292), which is owned by the City. This definition includes any devices or systems used in the collection, storage, treatment, recycling, and reclamation of sewage or industrial wastes of a liquid nature and any conveyances, which convey wastewater to a treatment plant. septic Tank Waste: Any sewage from bolding tanks such as vessels, chemical toilets, canrpers, trailers, and septic tanks, Sewage: Human excrement and gray water (household showers, dishwashing operations, etc.). Significant Industrial User (Stu: Except as provided in paragraph (3) of this Section, a significant Industrial User is: (1) An Industrial User subject to categorical Pretreatment Standards; or (2) An Industrial User that: (A) Discharges an average of two€sty-five thousand (25,000) gpd or more of process wastewater to tite POTW (excluding sanitary, noncontact cooling and boiler blowdown wastewater); Page 7 of 34 (B) Contributes a process wastestream which makes up five (5) percent or more of tine average dry weather hydraulic or organic capacity of the POTW treatment plant; or (C) Is designated as such by the City on the basis that it has a reasonable potential for adversely affecting the POTW's operation or for violating any Pretreatment Standard or Requirement. (3) Upon a finding that a User meeting the criteria in Subsection (2) of this part has iro reasonable potential for adversely affecting the POTW's operation or for violating ally Pretreatment Standard or Regt►irernent, the City may at any time, on its own initiative or in response to a petition received from an Industrial User, and in accordance with procedures in 40 CFR 40M(0(6), determine that such User should not be considered a Significant Industrial User. Siug Load or Slug Discharge: Any discharge at a flow rate or concentration, w1lich could cause a violation of the prohibited discharge standards in Section 22,03.002 (a) of this ordinance. A Slug Discharge is any Discharge of a non -routine, episodic nature, including but not limited to an accidental spill or a non -customary batch Discharge, which has a reasonable potential to cause Interference or Pass Through, or in any other way violate the POTW's regulations, Local Limits or Permit conditions. Significant Noncompliance SNC : Any violation or group of violations, which may include a violation of Best Management Practices, which the POTW determines will adversely affect the operation or implementation of the local Pretreatment program. Storm Water: Any flow occurring during or following any form of natural precipitation, and resulting from such precipitation, including snownrelt. Total Susperrdcd Solids or Susu_ended Solids: The total suspended matter that floats on the Surface of, or is suspended in, water, wastewater, or other liquid, and that is removable by laboratory filtering. User or Industrial User: A source of indirect discharge. Wastewater: Liquid and water -carried industrial wastes and sewage from residential dwellings, commercial buildings, industrial arul manufacturing facilities, and institutions, whether treated or untreated, which are contributed to the POTW. Wastewater Treatment Plant or Treatment Plant: That portion of the POTW which is designed to provide treatment of municipal sewage and industrial waste. Water Ouality Manager:The person in charge of the City's approved pretreatment program. SECTION 22.03.042---GENERAL SEWER USE REQU�CL, MENTS (a) Prohibited Discharge Standards (1) General Prohibitions. No User shall introduce or cause to be introduced into the POTW any pollutant or wastewater which causes Pass Through or Interference. These general prohibitions apply to all Users of the POTW whether or not they are su�jcct to categorical Page 8 of 34 Pretreatment Standards or any other National, State, or local Pretreatment Standards or Regt€irements. (2) Specific Prohibitions. No User shall introduce or cause to be introduced into the POTW the following pollutants, substances, or wastewater; (A) Pollutants which create a fire or explosive. hazard in the POTW, including, but not limited to, wastestreams with a closed -cup flashpoint of less than one hundred forty (140) degrees F (sixty (60) degrees C) using the test methods specified iu 40 CFR 261.21, (B) Wastewater having a 1*1 less than six (6.0) or more than eleven (11.0), or otherwise causing corrosive structural damage to the POTW or equipment; (C) Any ashes, cinders, satin, mud, straw, shavings, metal, glass, rags, feathers, Or, plastics, wood, paunch manure or other solid or viscous substances in amounts which will cause obstruction of the flow in the POTW resulting in Interference; (D) Pollutants, including oxygen -demanding pollutants (BOD, etc.), released in a discharge at a flow rate and/or pollutant concentration which, either singly or by interaction with other pollutants, will cause Interference with the POTW; (E) Yfeat in amounts which will inhibit biological activity in the Pow resulting in Interference, but in no case heat in such quantities that Clio temperature at the POTW Treatment Plant exceeds 40 °C (104 IF) unless the Approval Authority, upon request of the POTW, approves alternate temperature limits, (f+) Petroleum oil, rionbiodegradable cutting oil, or products of mineral oil origin, in amounts that will cause Interference or Pass Through; (G) Pollutants which result in the presence of toxic gases, vapors, or fumes within the POTW in a quantity that may cause aoute worker health and safety problems; Trucked or hauled pollutants, except at discharge points designated by the Director. (1) Noxious or malodorous liquids, gases, solids, or other wastewater which, either singly or by interaction with other wastes, are sufficient to create a public nuisance o€- a hazard to life, or to prevent entry into the sewers for mainte€tame, or repair; (J) Wastewater which imparts color which cannot be removed by the treatment process, such as, but not limited to, dye wastes and vegetable tanning solutions, which consequently impacts color to the treatment plant's effluent, thereby violating the City's NPDES permit; (K) Wastewater containing any radioactive wastes or isotopes oxcept it) compliance with applicable State or Federal regulations; (L) Storm Water, surface water, ground water, artesian well water, roof runoff, subsurface drainage, swimming pool drainage, condensate, dcionized water, Noncontact Cooling Water, and unpolluted wastewater, unless specifically authorized by the Director; (M) Sludges, screenings, or other residues from the pretreatment of industrial wastes; Page 9 of 34 (IV) Medical Wastes, except as specifically authorized by the Director ill all individual wastewater discharge permit; (0) Wastewater causing, Alone or in conjlinction with other sources, the treatment plant's effluent to fail toxicity test; (P) Detergents, surface-active agents, or other substances which might cause excessive foaming in the POTW; (h) National Categorical Pretreatment Standards Users must comply with the categorical Pretr•eatrnent Standards found at 40 CFR Chapter I, Subehapter N, Parts 405-471. (c) State Pretreatment Statx(lrir<ls Users must comply with State Pretreatment Standards codified at TCEQ Regulations for Existing and New Solaces of Pollution, 30 TAC Part1, Chapter 315. (d) Local Limits (1) The Director is authorized to establish Local Limits pursuant to 40 CPR 403.5(c). (2) The following pollutant limits are established to protect against Pass Through and Interference. No person shall discharge wastewater containing in excess of the following; 4.0 mg/1 Arsenic 250 mg/l BOD 550 mg/1 COD - 0.3 nig/l Cadmium - 21.0 mg/1 Chromium - 1.0 rng/1 Copper - I -A mg/l Cyanide 1.8 mg/l Lead - 0.005 mg/l Mercury 4.0 rng/I Nickel - 200 rng/I Oil and Grease - 1.4 mg/l Selenium - 1.18 ntg/1 Silver - 10.0 mg/l Total Phenols 300 mg/1 TSS - 8.0 mg/l Zinc - 3.72 mg/l, Nonylphenol The above limits apply at the point where tle wastewater is discharged to tle POTW. All concentrations for metallic substances are for total metal unless indicated otherwise. (3) The Director may develop Best Management Practices (13MPs), by ordinance or in individual wastewater discharge permits, to implement Local Limits and the requirements of Section 22.03.002 (a). Page 10 of 34 (e) Right of Revision The City reserves the right to establish, by ordinance or in individual wastewater discharge permits, more stringent Standards or Requirements on discharges to the POTW consistent with the purpose of this ordinance. (f) Dilution No User shall ever increase the use of process water, or in any way attempt to dilate a discharge, as a partial or complete substitute for adequate treatment to achieve compliance with a discharge limitation unless expressly authorized by an applicable Pretreatment Standard or Requirement. SECTION 22.03.003 PRETREATMENT OF WASTEWATER (a) Pretreatment Facilities Users shall provide wastewater treatment as necessary to comply with this ordinance and sliall achieve compliance with all categorical Pretreatment Standards, local limits, and the prohibitions set out in Section 22.03.002 (a) of this ordinance within the time limitations specified by EPA, the State, or the Director, whichever is more stringent. Any facilities necessary for compliance shall be provided, operated, and maintained at the User's expense. Detailed plans describing such facilities and operating procedures shall be submitted to the Director for review, and shall be acceptable to the Director before such facilities are conshTucted. The review of such plans and operating procedures shall in no way relieve the User from the responsibility of modifying such facilities as necessary to produce a discharge acceptable to the City under the provisions of this ordinance. (b) Additiastat PretreAtmejrt iv>>:easuVes (1) Whenever deemed necessary, the Director may require Users to restrict their discharge during peak flow periods, designate that certain wastewater be discharged only into specific sewers, relocate and/or consolidate points of discharge, separate sewage wastestreatns from industrial wastestreams, and such other conditions as may be necessary to protect the POTW and determine the User's compliance with the requirements of this ordinance. (2) The Director may require any person discharging into the POTW to install and maintain, on their property and at their expense, a suitable storage and flow -control facility to ensure equalization of flow. An individual wastewater discharge permit may be issued solely for flow equalization, (3) Grease, oil, and sand interceptors shall be provided when, in the opinion of the Director, they are necessary for the proper handling of wastewater containing excessive amounts of grease and oil, or sand; except that such interceptors shall not be required for residential users. All interception units shall be of a type and capacity approved by the Director and shall be so located to be easily accessible for cleaning and inspection. Such interceptors shall be inspected, cleaned, and repaired by the User at their expense. (4) Users with the potential to discharge flammable substances may be required to install and maintain an approved combustible gas detection ureter. Page t t of 34 (e) Accidental Discharge/Slug Discharge Control Plans The Director shall evaluate, within one year of being designated as a SIU, witether each SIU needs an accidental discharge/slug discharge control plan or other action to control Slug Discharges. The Director may require any User to develop, submit for approval, and implement such a plan or take such other action that may be Necessary to control Slug Discharges. Alternatively, the Director• may develop such a platy for any User. AN accidental discharge/slug discharge control plan shall address, at a mininium, the following: (1) Description of discharge practices, including nomoutitre batch discharges; (2) Description of stored chemicals; (3) Procedures for immediately notifying the Director of any accidental or Slug Discharge, as required by Section 22,03,006 (0 of this ordinance; and (4) Procedures to prevent adverse impact from any accidental or Slug Discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site runoff, worker training, building of containment strLlctares or equipment, measures for containing toxic organic pollutants, including solvents, and/or pleasures and equipment for emergency response. (S) The Director shall keep records of the activities associated with slug control evaluation and results of such activities are required to be available to the Approval Autbority upon request. (d) Hauled Wastewater (1) Septic tank waste may be introduced into the POTW only at locations designated by the Director, and at such times as are established by the Director. Such waste shall not violate Section 2M3.002 of this ordinance or any other requirements established by the City. The Director may require septic tank waste haulers to obtain individual wastewater discharge permits. (2) The Director may require haulers of industrial waste to obtain individual wastewater discharge permits. The Director may require generators of hauled industrial waste to obtain individual wastewater discharge permits. The Director also may prohibit (lie disposal of hauled industrial waste. The discharge of hauled industrial waste is subject to all other requirements of this ordinance. (3) Industrial waste haulers may discharge loads only at locations designated by the Director. No load may be discharged without prior consent of the Director. The Director may collect samples of each ]tattled load to ensure compliance with applicable Standards. Tile Director may require the industrial waste hauler to provide a waste analysis of any load prior to discharge. (4) Industrial waste haulers must provide a waste -tracking form for every load. This form shall include, at a minimum, the name and address of the industrial waste hauler, permit number, truck identification, harries and addresses of sources of waste, and volume and characteristics of waste, The form shall identify the type of industry, known or suspected waste constituents, and whether any wastes are RCRA hazardous wastes, Page 12 ot'34 SECTION 22.03.004---INDIEVIDUAL WASTEWATI,IZ DISCHARGE PERMITS (a) Wastewater Analysis When requested by the Director, a User must submit informmation on the nature and characteristics of its wastewater within thirty (30) days of the request. Tile Director is authorized to prepare a form for this purpose and may periodically require Users to update this information. (b) Individual Wastewater Discharge Permit Requirement (1) No Significant Industrial User shall discharge wastewater into the POTW without first obtaining ati individual wastewater discharge permit from the Director, except that a Significant Industrial User that has filed a timely application pursuant to Section 22,03.004 (c) of this ordinance may continue to discharge for the time period specified therein, (2) The Director may require other Users to obtain individual wastewater discharge permits as necessary to carry out the purposes of this ordinance. (3) Any violation of the terms and conditions of an individual wastewater disclint•ge perinit shall be deemed a violation of this ordinance and subjects the wastewater discharge perinittee to the sanctions set out in Sections 22.03.010 and 22.03,011 of this ordinance. Obtaining an individual wastewater discharge permit does trot relieve a permittee of its obligation to comply with all Federal and State Pretreatnient Standards or Requirements or with any other requirements of Federal, State, and local law. (e) Individual Wastewater Discharge Permitting: ICxisting Connections Any User required to obtain an individual wastewater discharge pemlit who was discharging wastewater into the POTW prior to the effective date of this ordinance and who wishes to continue such discharges in the future, shall, within thirty (30) days after said date, apply to the Director for an individual wastewater discharge permit in accordance with Section 22.03,004 (e) of this ordinance, and shall not cause or allow discharges to the POTW to continue after thirty (30) days of the effective date of this ordinance except in accordance with an individual wastewater discharge permit issued by the Director. (d) Individual Wastewater- Disebar•ge )Pei•initting: New Coviliectiorts Any User required to obtain an individual wastewater discharge permit who proposes to begin or recommence discharging into the POTW tuust obtain such permit prior to the beginning or recoinnlencing of such discharge, An application for this individual wastewater discharge permit, in accordance with Section. 22.03,004 (e) of this ordinance, nlltst be filed at least ninety (90) days prior to the date upon which any discharge will begin or recommence. (e) Individual Wastewater Discharge Permit Application Contents (1) All Users required to obtain an individual wastewater discharge pefillit 11141St Submit a permit application, Tile Director may require Users to submit all or sonic of the following information as part ofa,permit application: (A) Identifying Information. Page 13 of34 (i) The nanmc and address of the facility, including time nanic of the operator and owner. (R) Contact infor►nation, description of activities, facilities, and plant production processes oil (lie premises; (S) Environmental Permits. A list of any environmental control permits held by or for time facility. (C) Description of Operations, (i) A brief description of the nature, average rate of production (inclu€ding each product produced by type, amount, processes, and rate of production), and standard industrial classifications of the operation(s) carried out by such User. This description should include a schematic process diagram, which indicates points of discharge to the POTW from (lie regulated processes. (ii) Types of wastes generated, and a list of all raw materials and elmetimicals used or stored at the facility which are, or could accidentally or intentionally be, discharged to the PQTW; (M)Number and type of employees, hours of operation, and proposed or actr€al hours of operation; (iv) Type and amount of raw materials processed (average and maximum per day); (v) Site plans, floor plans, mechanical and plumbing plaits, and details to show all sewers, floor drains, and appurtenances by size, location, and elevation, and all points of discharge; (D) Titne and duration of discharges; (L) The location for nionitoring all wastes covered by the permit; (r) Flow MCMII'emetmt. lnfoi•€nation showing the measured average daily and maximum daily flow, in gallons per day, to the PQTW from regulated process streamms and other streams, as necessary, to allow vise of the combined wastestream formula set out in Section 22,03,002 (b) (40 CM 403.6(e)). (G)Measurement of P011LItatmts (i) The categorical Pretreatment Standards applicable to each regulated process and any new categorically regulated processes for Existing Sources. (ii) Time results of sampling and analysis identifying the nature and concentration of regulated pollutants in (lie discharge from each regulated process. Page 14 of 34 (W) Iostantaneous, Daily Maximum, and long-term average concentrations sliall be reported. (iv) Tile sample shall be representative of daily operations and shall be analyzed in accordance with procedures set out in Section 22.03.006 (i) of this ordinance. Where the Standard requires compliance with a BMP or pollution prevention alternative, the User shall submit documentation as required by the Director or the applicable Standards to determine compliance with the Standard. (v) Sampling must be performed in accordance with procedures set out in Section 22.03,006 (k) of this ordinance. (II) Any other information as may be deemed necessary by the Director to evaluate the Permit application. (2) Incomplete or inaccurate applications will not be processed and will be returned to the User for revision. (t) Application Signatories and Certifications (1) All wastewater discharge permit applications, User reports and certification statements must be signed by an Authorized Representative of the User and contain the certification statement in Section 22.03,006 (n) (1). (2) If the designation of an Authorized Representative is no longer accurate because a different individual or position has responsibility for the overall operation of the facility or overall responsibility for environmental matters for the company, a new written authorization satisfying the requirements of this Section must be submitted to the Director prior to or together with any reports to be signed by an Authorized Representative. (g) Individual Wastewater Discharge Permit Decisions The Director will evaluate the data furnished by the User and may require additional information. Within thirty (30) days of receipt of a complete permit application, the Director will determine whether to issue an individual wastewater discharge permit. The Director may deny any application for an individual wastewater discharge permit. SECTION 22.03.005M----IlYDNIIDUAL WASTE, WATrR DISCHARGE PERIV,iIT ISSUANCE' (a) IlydiOdUal Wastewater• Discharge Permit Duration An individual wastewater discharge permit sliall be issued for a specified time period, not to exceed five (5) years from the effective date of the permit. An individual wastewater discharge permit may be issued for a period less than five (5) years, at the discretion of the Director. Each individual wastewater discharge permit will indicate a specific (late upon which it will expire. (b) Individual Wastewater Discharge Permit Contelrfs Page 15 of 34 An individual wastewater discharge permit shall include such conditions as are deenied reasonably necessary by the Director to prevent Pass Through or Interference, protect the quality of the water body receiving the treatment plant's effluent, protect worker health and safety, facilitate sludge management and disposal, and protect against damage to the POTW. 1) Individual wastewater discharge permits must contain: (A) A statement that indicates the wastewater discharge permit issuance date, expiration date and effective date; (I3) A, statement that the wastewater discharge permit is nontransferable without prior notification to the City in accordance with Section 22.03.005 (d) of this ordinance, and provisions for furnishing the new owner or operator with a copy of tine existing wastewater discharge permit; (C) Effluent limits, including Kest Management Practices, based on applicable Pretreatment Standards; (D) Self-mo€iitoring, sampling, reporting, notification, and record -keeping requirements. These requirements shall include an identification of pollutants (or best management practice) to be monitored, sampling location, sampling frequency, and sample type based oil Federal, State, and local law; (E) A statement of applicable civil and criminal penalties for violation of Pretreatment Standards and Requirements, and any applicable compliance schedule. Such schedule may not extend tite time for compliance beyond that required by applicable federal, State, or local law; (F) Requirements to control ,Slug Discharge, including notification, if determined by the Director to be necessary; (2) individual wastewater discharge permits may contain, but need not be limited to, (lie following conditions: (A) Limits on the average and/or maxinium rate of discharge, time of discharge, and(or requirements for flow regulation and equalization; (B) Requirements for the installation of pretreatment tecluiology, pollution control, or construction of appropriate containment devices, designed to reduce, eliminate, ar prevent the introduction of pollutants into the treatment works; (C) Requirements for the development and implementation of spill control plans or other special conditions including managemenl practices necessary to adequately prevent accidental, unanticipated, or nonroutine discharges; (D) Development and implementation of waste minimization plans to reduce the amount of pollutants discharged to the POTW; (E) The unit charge or schedule of User charges and fees for the management of the wastewater discharged to the POTW; Page 16 of3d (I+) Requirements for installation and maintenance of inspection and sampling facilities and equipment, including flow measurement devices; (G) A statement that compliance with the individual wastewater discharge permit does not relieve the permittee of responsibility for compliance with all applicable Federal and State Pretreatment Standards, including those which become effective during the term of the individual wastewater discharge permit, and (i) Other conditions as deemed appropriate by the Director to ensure compliance with this ordinance, and State and Federal laws, rules, and regulations, (e) Per-nrit Modification (1) The Director may modify an individual wastewater discharge permit for good cause, including, but not limited to, the following reasons: (A,) To incorporate any new or revised Federal, State, or local Pretreatment Standards or Requirements; (B) To address significant alterations or additions to the User's operation, processes, or wastewater volume or character since the time of the individual wastewater discharge permit issuance; (C) A change in the POTW that requires either a temporary or permanent reduction or elimination of the authorized discharge; (D) Information indicating that the permitted discharge poses a threat to the City's PO`I'W, City personnel, or the receiving waters; (E) Violation of any terms or conditions of the individual wastewater discharge permit; (F) Misrepresentations or failure to fully disclose all relevant facts in the wastewater discharge permit application or in any required reporting; (G) Revision of or a grant of variance from categorical Pretreatment Standards pursuant to 40 CFR 403.13; {I1� To correct typographical or other errors in the individual wastewater discharge permit; or (I) To reflect a transfer of the facility ownership or operation to a new owner or operator where requested in accordance with Section 22.03.005 (d). (d) individual Wastewater Discharge Permit Transfer Individual wastewater discharge permits may be transferred to a new owner or operator only if the permittee gives at least thirty (30) days advance notice to the Director and the Director approves the individual wastewater discharge permit transfer. The notice to the Director must include a written certification by the new owner or operator which. - Page 17 of 34 (1) States that the new owner and/or operator has no immediate intent to change the facility's operations and processes; (2) Identifies the specific date on which the transfer is to occur; and (3) Acknowledges full responsibility for complying with the existing individual wastewater discharge permit. Failure to provide advance notice of a transfer renders the individual wastewater discharge permit void as of the date of facility transfer. (c) IndivfdtlaI Wasteivater Discharge Permit Revocatiou The Director may revoke an individual wastewater discharge permit for good cause, including, Wt not limited to, the following reasons; (1) Failure to notify the Director of significant changes to the wastewater prior to the changed discharge; (2) Failure to provide prior notification to the Director of changed conditions pursuant to Section 22.03,006 (e) of this ordinance; (3) Misrepresentation or failure to fully disclose all relevant facts in the wastewater discharge Kermit application; (4) Falsifying self monitoring reports and certification statements; (5) Tampering with monitoring equipment; (6) Refusing to allow the Director timely access to the facility premises and records; (7) Failure to meet effluent limitations (8) Failure to pay fines; (9) Failure to pay sewer charges; (10) failure to meet compliance schedules; (11) Failure to complete a wastewater survey or the wastewater discharge permit application; (12) Failure to provide advance notice of the transfer of business ownership of a permitted facility; or (13) Violation of any Pretreatment Standard or Requirement, or any terms of the wastewater discharge permit or this ordinance. Individual wastewater discharge permits shall be voidable upon cessation of operations or transfer of business ownership. All individual wastewater discharge permits issued to a User are void upon the issuance of a now individual wastewater discharge permit to that User. (f) Individual Wastewater Discharge Permit Reissuance A User with ail expiring individual wastewater discharge permit sliail apply for individual wastewater discharge permit reissuance by submitting a complete permit application, in accordance with Section Page 18 of 34 22.03.004 (e) of this ordinance, a mininiu m of ninety (90) clays prior to the expiration of the User's existing individual wastewater discharge permit. (g) Regnlatim of Waste Received from Othev Au-Isdictiorrs (1) If alrotllel' municipality, or User located within another municipality, contributes wastewater to the POTW, the Director- shall enter into all intermunicipal agreement. with the contributing lilt) nioipality. (2) Prior to entering into an agreement required by paragraph 1, above, the Director shall request the following information from the contributing municipality: (A) A description of the quality and volume of wastewater discharged to the POTW by the contributing municipality; (R) An inventory of all. Users located within the contributing municipality that are discharging to the POTW; and (C) Such other information as the Director may deem necessary. (3) An interrnunicipal agreement, as required by paragraph 1, above, shall contain the following conditions; (A) A regWrement for the contributing municipality to adopt a sewer use ordinance which is at least as stringent as this ordinance and Local Limits, including required Baseline Monitoring Reports (BMRs) which are at least as stringent as those set out in Section 22.03,002 (d) of this ordinance. The requirement shall specify that such ordinance and 11mits must be revised as necessary to reflect changes made to the City's ordinance or Local Limits; (B) A requirement for the contributing municipality to submit a revised User inventory on at least an annual basis; (C) A provision specifying which pretreatment implementation activities, including individual wastewater discharge permit issuance, inspection and sampling, and cnforeemmnt, will be conducted by the contributing municipality; which of these activities will be conducted by the Director; and which of those activities will be conducted ,jointly by the contributing municipality and the Director; (D) A requirement for the contributing municipality to provide the Director with access to all information that the contributing municipality obtains as part of its pretreatment activities; (E) Limits on the nature, quality, and volume of the contributing lmlaniCipality's wastewater at the point where it discharges to the POTW; (r) Requirements for monitoring the contributing municipality's discharge; Page 19 oF34 (G) A provision ensuring the Director access to the facilities of Users located within the contributing nrru}icipality's jurisdictional boundaries for the purpose of inspection, sampling, and any other duties deemed necessary by the Director; and ( A provision specifying remedies available for breach of the terms of the intermunicipal agreement. SECTION 22.03.006—REPORTING RE QUIRE ME,NTS (a) Baseli►te Monitoring Reports (1) Within eithe►, one hundred eighty (180) days alter the effective date of a categorical Pretreatment Standard, or the final administrative decision on a category determination under 40 CFR 403.6(a)(4), whichever is later, existing Categorical Industrial Users crlrrently discharging to or scheduled to discharge to the POTW shall submit to the Director a report which contains the information listed in paragraph 2, below. At least ninety (90) days prior to commencement of their discharge, Now Sources, and sources that become Categorical Industrial Users subsequent to the promulgation of an applicable categorical Standard, shall submit to the Director a report which contains the information listed in paragraph 2, below. A New Source shall a'eport the method of pretreatment it intends to use to meet applicable categorical Standards. A New Source also shall give estimates of its anticipated flow and quantity of pollutants to be discharged. (2) Users described above shall submit the information set forth below. (A)All information required in Section 22.03.004(c)(1)(A)(1), Section 22.03.004(e)(1)(B), Section 22.03.004(e)(I)(C)(i), and Section 22.03.004(e)(1)(F). (Note: See 40 CFR 403. I2(b)(1)-(7)j (13) Measurement of pollutants. (i:) The User shall provide the information regUi►•ed in Section 22.03A04(e)(G)(1) through (v). (H) The User shall take a minhtuun of one representative sample to compile that data necessary to comply with the requirements of this paragraph. (iii) Samples should be taken immediately downstream from pretreatment facilities if such exist or immediately downstream from the regulated process if no pretreatment exists. If other wastewaters are mixed with the regulated wastewater prior to pretreatment the User should measure the flows and concentrations necessary to allow use of the combined wastestream formula in 40 CFR 403.6(e) to evaluate compliance with the Pretreatment Standards; (iv) Sampling and analysis shall be perforated in accordance with Section 22.03,006 (k); (v) The Director May allow the submission of a baseline report which utilizes Only historical data so long as the data provides information sufficient to determine the need for industrial pretreatment measures; Page 20 of 34 (vi) The baseline report slnall indicate the time, date and place of sampling and methods of analysis, and shall certify that such sampling and analysis is representative of nornnal work cycles and expected pollutant discharges to the POTW. (C) Compliance Certification. A statement, reviewed by the User's Authorized Representative as defined in Section 22.03.001 (d) and certified by a qualified professional, indicating whether Pretreatment Standards are being met on a consisteat basis, and, if not, whether additional operation and maintenance (O&M) and/or additional pretreatment is required to meet the Pretreatment Standards and Requirements. (D) Compliance Schedule. If additional pretreatment and/or O&M will be required to erect the Pretreatment Standards, the shortest schedule by which the User will provide such additional pretreatment and/or O&M must be provided. The completion date in this schedule shall not be later than the compliance date established for the applicable Pretreatment Standard. A compliance schedule pursuant to this Section err►st meet the requirements set out in Section 22.03.006 (b) of this ordinance. (E) Signature and Report Certification. All baseline monitoring reports must be certified in accordance with Section 22.03.006 (n)(1) of this ordinance and signed by an Authorized Representative as defined in Section 22.03.001 (d). (b) Compliance Sebedule frog►-ess Reports The following conditions shall apply to the compliance schedule required by Section 22.03.006 (a)(2)(D) of this ordinance; (1) The schedule shall contain progress increments in the form of dates for the commencement and completion of major events leading to the construction and operation of additional pretreatment required for the User to meet the applicable Pretreatment Standards (such events include, but are not limited to, hiring an engineer, completing preliminary and final plans, executing contracts for major components, commencing and completing construction, and beginning and conducting routine operation), (2) No increment referred to above shall exceed nine (9) months; (3) The User slnal I submit a progress report to the Director no later than fourteen (14) days following each date in the schedule all(] the final date of compliance including, as a inini►nu►n, whether or not it complied with the increment of progress, the reason for any delay, and, if appropriate, the steps being taken by the User to return to the established schedule, and (4) In no event shall more than nine (9) months elapse between such progress reports to the Director. (c) Reports on Compliance with Categovical Pretreatment Sta►uiard Deadline Within ninety (90) days following the date for final compliance with applicable categorical Pretreatment Standards, or in the case of a New Source following commencement of the introduction of wastewater into the POTW, any User subject to such Pretreatment Standards and Requirements shall submit to the Director a report containing the information described in Section 22.03.004(e)(1)(F) and (6) and 22.03.006(a)(2)(B) of this ordinance. For all other Users subject to categorical Pretreatment Standards Page 21 of 34 expressed in terms of allowable pollutant discharge per unit of prodtiotion (or otter measure of operation), this report shall include tine User's actual production during file appropriate sampling period. All compliance reports must be sighed and certified in accordance with Section 22.03.006(n)(1) of this ordinance. All sampling will be done in conformance with Section 22.03,006 (k). (d) Periodic Compliance Reports (.1) All Significant Industrial Users must, at a frcquency determined by tine Director stlbinit no less than twice per year reports indicating the nature, concentration of pollutants in the discharge which are limited by Pretreatment Standards and the measured or estimated average and maxinrtun daily flows for the reporting period, In cases where (lie Pretreatment Standard requires compliance with a Best Management Practice (BMP) or pollution prevention alternative, the User must submit documentation required by the Director or the Pretreatment Standard necessary to determine the compliance status of the User. (2) All periodic compliance reports must be signed and certified in accordance with Section 22.03.006(n)(1) of this ordinance. (3) All wastewater samples must be representative of the User's discharge. Wastewater monitoring and flow measurement facilities shall be properly operated, kept clean, and maintained in good working order at all times. The failure of a User to keep its monitoring facility in good working order shall not be grounds for the User to claim that sample results are unrepresentative of its discharge. (d) If a User subject to the reporting requirement in this section monitors any regulated pollutant at the appropriate sampling location more frequently than required by the Director, using the procedures prescribed in Section 22.03,006 (k) of this ordinance, the results of this monitoring shall be included in the report. (e) Reports of Changed Conditions Each User must notify the Director of any significant changes to the User's operations or system which might alter the nature, quality, or volume of its wastewater at least thirty (30) days before the change. (I.) Tile Director may require the User to submit such information as may be deemed necessary to evaluate the changed condition, including the submission of it wastewater discharge permit application Under Section 22,03.004 (e) of this ordinance. (2) The Director may issue an individual wastewater discharge permit under Section 22.03.005 (g) of this ordinance or modify art existing wastewater discharge permit under Section 22.03.005 (d) of this ordinance in response to changed conditions or anticipated changed conditions. (0 Reports of Potential Problems (l) In the case of any discharge, including, but not limited to, accidental discharges, discharges of a nonroutine, episodic nature, it noncustomary batch discharge, a Slug Discharge or Slug Load, that might cause potential problems for the POTW, the User shall immediately telephone and notify tine Director of the incident. This notification shall include the location of the discharge, type of waste, concentration and volume, if known, and corrective actions taken by the User. Pogo 22 of 34 (2) Within five (S) days following such discharge, the User sliall, unless waived by the Director, submit a detailed written report describing the cause(s) of the discharge and tine measures to be taken by the User to prevent similar future occurrences. Such notification shall not relieve the User of ally expense, loss, damage, or other liability which might be incurred as a result of damage to the POTW, natural resources, or ally other damage to person or property; nor shall such notification relieve the User of ally fines, penalties, or other liability which may be imposed pursuant to this ordinance. (3) A notice shall be permanently hosted on the User's bulletin board or other prominent place advising employees who to call in the event of a discharge described in paragraph 1, above. Employers shall ensure that all employees, who could cause such a discharge to occur, are, advised of the emergency notification procedure. (4) Significant Industrial Users are required to notify the Director immediately of ally changes at its facility affectiuig the potential for a Slug Discharge. (g) Reports from Uuperl"itted Users All Users not required to obtain all individual wastewater discharge permit shall provide appropriate reports to the Director as the Director may require. (it) Notice of Violation/Repeat Sampling and Repotting If sampling performed by a User indicates a violation, the User must notify the Director within twenty- four (24) hours of becoming aware of the violation. The User shall also repeat the sampling and analysis and submit the results of the repeat analysis to the Director within thirty (30) days after becoming aware of the violation. If the City performed the sampling and analysis in lieu of tine Industrial User, the City will perform the repeat sampling and analysis within thirty (30) days unless it notifies the User of the violation and requires the User to perform the repeat sampling and analysis. Repeat sampling is not required if the City performs the sampling at the Industrial User at a frequency of at least once per month or file City performs sampling at the Industrial User between the time when the initial sampling was conducted and the time when the Industrial User or the City receives the results of the sampling. (i) Analytical Requirements All pollutant analyses, including sampling techniques, to be submitted as part of a wastewater discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CPR Part 136 and amendments thereto, unless otherwise specified in an applicable categorical Pretreatment Standard, If 40 CPR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for tile, pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures, including procedures suggested by [lie Director or other parties approved by EPA. 0) Notification of the Discharge of Hazardous Waste (I) Any User who counmences the discharge of hazardous waste shall notify the POTW, the EPA Regional Waste Management Division Director, and State hazardous waste authorities, in writing, of any discharge into the POTW of a substance which, if otherwise disposed of, would be a hazardous waste under 40 CPR Part 261. Such notification must include the name of the hazardous waste as set forth in 40 CI±R Part 26 1, the EPA hazardous waste number, and tle type Page 23 of 34 of discharge (continuous, batch, or other). If the User discharges more than one hundred (100) kilograms of such waste per calendar month to the POTW, the notification also shall contain the following information to the extent such information is known and readily available to tite User: an identification of the hazardous constituents contained in the wastes, an estimation of the concentration of suchconstituents in the wastestream discharged during that calendar month, and an estimation of tite concentration of constituents in the wastestrearn expected to be discharged during the following twelve (12) months. All notifications must take place no later than one hundred and eighty (M) days after the discharge commences. Any notification under this paragraph need be submitted only once for each hazardous waste discharged. However, notifications of changed conditions must be submitted under Section 22.03.006 (e) of this ordinance, The notification requirement in this Section does not apply to pollutants already reported by Users subject to categorical Pretreatment Standards under the self -monitoring requirements of Sections 22.03.006(a)(c), and (d) of this ordinance, (2) Dischargers are exempt from the requirements of paragraph 1, above, during a calendar month in which they discharge no more than fifteen (15) kilograms of hazardous wastes, unless the wastes are acute bazardous wastes as specified in 40 C)~R 261.30(d) and 261.33(e). Discharge of more than fifteen (15) kilograms of nonacute hazardous wastes in a calendar month, or of any quantity of acute hazardous wastes as specified in 40 CPR 261.30(d) and 261.33(e), requires a one-time notification. Subsequent months during which the User discharges mare than such quantities of any hazardous waste do not require additional notification. (3) In the case of arty new regulations under section 3001 of RCRA identifying additional characteristics of hazardous waste or listing any additional substance as a hazardous waste, the User Hurst notify the Director, the EPA Regional Waste Management Waste Division Director, and State hazardous waste authorities of the discharge of such substance within ninety (90) days of the affective date of such regulations. (4) In the case of any notification Made under this Section, tine User shall certify that it has a program in place to reduce the volute and toxicity of hazardous wastes generated to the degree it has determined to be economically practical, (5) This provision does not create a right to discharge any substance not otherwise permitted to be discharged by this ordinance, a permit issued thereunder, or any applicable Federal or State law. (]c) Sample Collection Samples collected to satisfy reporting requirements must be based on data obtained through appropriate sampling and analysis performed during the period covered by the report, based on data that is representative of conditions occurring during the reporting period. (1) Except as indicated in Section 2 and 3 below, the User must collect wastewater samples using 24- 1101.11' flow -proportional composite sampling techniques, unless time proportional composite sampling or grab sampling is authorized by the Director. Where time -proportional composite sampling or grab sampling is authorized by the City, the Industrial User must demonstrate in writing that the samples are representative of the discharge before the City may allow the Industrial user to submit sueh samples, The decision to allow the alternative sampling [or site specific circumstances] must be documented in the IU file for that facility. Using protocols (including appropriate preservation) specified in 40 CFR Part 136 and appropriate EPA guidance, multiple grab samples collected during a 24-hour period may be composited prior to the analysis as follows: For cyanide, total phenols, and sulfides the samples may be composited in the Page 24 of 34 laboratory or in the field; for volatile organics and oil and grease, the samples may be eomposlted in the laboratory only, Total residual chlorine, pH, and temperature samples cannot be composited under ally cil'cUlllstallce. Composite samples for other parameters unaffected by the compositing procedures as documented in approved EPA methodologies may be authorized by the City, as appropriate. In addition, grab samples may be required to show compliance with Instantaneous Limits. (2) For sampling facilities that discharge less than 24 hours per day, the sampling must be representative of the Industrial User's wastewater- discharge. Sampling must be taken within a 24- hour period, however, the sample should only be collected during that portion of the 24-hour period that the IU is discharging from the regulated process and/or pretreatment unit, as long as regulated process wastewater is flowing through the pretreatment unit. During parts of the day when there is no discharge of process wastewater, standing water should not be disproportionately sampled and analyzed as it would not be representative of the discharge. (3) Samples for oil and grease, tempefaft fe, pH, cyanide, total phenols, sulfides, and volatile organic compounds must be obtained using grab collection teelmiques, (4) For sampling required in support of baseline monitoring and 90-day compliance reports required in Section 22.03.006 (a) and (c) [40 CFR 403.12(b) and (d)], as well as reports on continued compliance and noncategorical SIU reports, a minimum of four (4) grab samples must be used for pff, cyanide, total plienols, oil and grease, sulfide, and volatile organic compounds for new Industrial Users, existing Industrial Users that drake changes or install new treatment, or facilities for which Historical sampling data do not exist; for facilities for which historical sampling data are available, the Director may authorize a lower minimum. For the reports required by paragraphs Section 22.03.006 (d) (40 CFR 403,12(c) and 403,12(h)), the industrial User is required to collect the number of grab samples necessary to assess and assure compliance by with applicable Pretreatment Standards and Requirements, (1) Date of Receipt of Reports Written reports will be deemed to have been submitted on the date postmarked, For reports, which are not mailed, postage prepaid, into a mail facility serviced by the United States Postal Service, the date of receipt of the report shall govern. (m) I;tecordlceeping Users subject to the reporting requirements of this ordinance shall retain, and make available for inspection and Copying, all records of information obtained pursuant to ally monitoring activities required by this ordinance, any additional records of information obtained pursuant to monitoring activities undertaken by the User independent of such requirements, and documentation associated with Best Management. Practices established tinder Section 22.03.002(d)(3). (1) lteeords shall include the date, exact place, method, and time of sampling, and the name of the person(s) taking tine samples; the dates analyses were performed; who performed the analyses; the analytical techniques or methods used; the restllts of such analyses; and any documentation associated with BMPs. These records shall remain available for a period of at least three (3) years, This period shall be automatically extended for the 61'atiOlt of any litigation concerning the User or file City, or where the User has been specifically notified of a longer retention period by the Director. Page 25 or34 (2) Records maintained by the City will remain available for a period of at least (3) years. (it) Certification ,Statemeitts (I) Certification of Permit Applications, User Reports and Initial Monitoring Waiver —The following certification statement is required to be signed and submitted by Users submitting permit applications in accordance with Section 22.03,005 (a); Users submitting basetine monitoring reports Under Section 22.03.006(a)(2)(P,); Users submitting reports on compliance with the categorical Pretreatment Standard deadlines under Section 22.03.006 (c); and Users submitting periodic compliance reports required by Section 22.03.006(d)(1-4), The following codification statement trust be signed by an Authorized Representative as defined in Section 2103.001 (d): I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualifted persoimel properly gather and evaluate the information submitted, Based oii lily itiquiiy of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submittitg false inforinatioii, including the possibility of fine and imprisonment for knowing violations. SECTION 22.03.007—COMPLIANCE MONITO-RING- (a) Right of Lofty: Yuspection and Sampling The Director shall have the right to enter the premises of any User to determine whether the User is complying with all requirements of this ordinance and any individual wastewater discharge permit or order issued hereunder. Users shall allow the Director ready access to all parts of the premises for the purposes of inspection, sampling, records examination and copying, and the performance of any additional duties. (f) Where a User has sectrity measures in force which require proper identification and clearance before entry into its premises, Tile User shall make necessary arrangements with its security guards so that, upon presentation of suitable identification, tile, Director shall be permitted to enter without delay for the purposes of performing specific responsibilities. (2) The Director shall have the right to set tip on the User's property, or require installation of, such devices as are necessary to conduct sampling and/or metering of the User's operations. (3) The Director may require the User to install monitoring equipment as necessary. The facility's sampling and monitoring cquipment sliall be maintained at all times in a safe and proper operating conditioii by the User at its own expense. All devices used to measure wastewater flow and quality shall be calibrated annually to ensure their accuracy, (4) Any temporary or permanent obstruction to safe and easy access to tale facility to be inspected and/or sampled shall be promptly removed by the User at the written or verbal request of the Director and sliall not be replaced, The costs of clearing such access shall be borne by the User. Page 26 of 34 (5) Unreasonable delays in allowing tine Director access to the User's premises shall be a violation of this ordinance. Tile location of the monitoring facility shall provide ample room; in or near the monitoring facility to allow accurate sampling and preparation of samples and analysis and whether constructed on public or private property, the monitoring facilities should be provided in accordatnce with the Director's requirements and all applicable local construction standards and specifications, and such facilities shall be, constructed and mai€ntai€ned in such manner so as to enable the Director to perform independent monitoring activities. (b) Search Warrants If the Director has been refused access to a building, structure, or property, or any part thereof, and is able to demonstrate probable cause to believe that there may be a violation of this Ordinance, or that there is a need to inspect and/or sample as part of a routine inspection and sampling program of the City designed to verify compliance with this ordinance or any permit or order issued hereunder, or to protect the overall public health, safety and welfare of the community, the Director may seek issuance of a search wart -ant from any court of comapetent jurisdiction. SECTION 22.03.008-----CONFIfDENTIA.L INFORMATION Information and data on a User obtained front reports, surveys, wastewater discharge permit applications, individual wastewater discharge permits, and monitoring programs, and from the Director's inspection and sampling activities, shall be available to the public without restriction, unless the User specifically requests, and is able to demonstrate to the satisfaction of the Director, that the release of such information would divulge information, processes, or methods of production entitled to protection as trade secrets under applicable State law. Any such request must be asserted at the time of submission of the information or data. When requested and demonstrated by the User furnishing a report that such information should be lnelct confidential, the portions of a report which might disclose trade secrets or secret processes shall not be made available for inspection by the public, but shall be made available immediately upon request to governmental agencies for uses related to the NPDES program or pretreatment program, and hi enforcement proceedings involving the person furnishing the report. Wastewater constituents and characteristics and other effluent data, as defined at 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public without restriction. SECTION 22.03.009—PUBLICATION OF USERS IN SIGNIFICANT NONCOMPLIANCE The Director shall publish annually, in a newspaper of general circulation that provides meaningful public notice within the Jurisdictions served by the Director, a list of the Users which, at any time during the previous twelve (12) months, were in Significant Noncompliance with applicable Pretreatment Standards and ITequirernents. The term Significant Noncompliance shall be applicable to at] Significant Industrial Users (or any other Industrial User that violates paragraphs (c), (d) or (h) of th is Section) and shall mean: (a) Chronic violations of wastewater discharge limits, defined here as those in which sixty-six percent (66%) or more of all the nteasuretttents taken for the same pollutant parameter taken during a six (6) month period exceed (by any magnitude) a numeric Pretreatment Standard or Requirement, including Instantaneous Limits as defined in Section 22,03.002; (b) Technical Review Criteria (TRC) violations, defined here as those in which thirty-three percent (33%) or more of wastewater nteasurenients taken for each pollutant parameter during a six (6) month period equals or exceeds the product of the numeric Pretreatment Standard or Requirement Page 27 of 34 including Instantaneous Limits, as defined by Section 22.03.002 multiplied by (lie applicable criteria (1.4 for BOD, TSS, fats, oils and grease, and 1.2 f'or all other pollutants except pI-I); (c) Any other violation of a Pretreatment Standard or Requirement as defined by Section 22.03.002 (Daily Maximum, long-term average, Instantaneous Liinit, or narrative standard) that the Director determines has caused, alone or in combination with other discharges, Interference or Pass Through, inchiding endangering the licalth of POTW personnel or the general public; ((l) Any discharge of a pollutant that has caused imminent endangerment to the public or to the environment, or has resulted in the Director's exercise of its emergency authority to halt or prevent such a discharge, (e) Failure to meet, within ni►iety (90) days of the scheduled date, a compliance schedule milestone contained in an individual wastewater discharge permit or enforcement order for starting construction, completing construction, or attaining final compliance; (f) Failure to provide within forty-five (45) clays after the floe date, any required reports, including baseline monitoring reports, reports on compliance with categorical Pretreatment Standard deadlines, periodic self monitoring reports, and reports on compliance with compliance schedules; (g) Failure to accurately report noncompliance; or (h) Any other violation(s), which may include a violation of Best Management Practices, instantaneous limits, narrative standards, including operational standards and narrative limits, or Other numeric limits which the Director determines will adversely affect the operation or implementation of the local pretreatment program. SECTION 23.03.010—AbM NISTRATIVE ENTORCIaMEN`.[' RE, ME' DIE' S (a) Notification of Violation When the Director finds that a User has violated, or continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or arty other Pretreatment Standard or Requirement, the Director may serve upon that User a written Notice of Violation. Within 5 clays of the receipt of such notice, an explanation of the violation and a plan for the satisfactory correction and prevention thereof, to include specific required actions, sliall be submitted by the User to the Director. Submission of such a plan in no way relieves the User of liability for any violations occurring before or after receipt of the Notice of Violations. Nothing in this Section shall limit the authority of the Director to take any action, including emergency actions or any other enforcement action, without first issuing a Notice of Violation. (b) Consent Orders The Director may enter into Consent Orders, assurances of compliance, or other similar documents establishing an agreement with any User responsible for noncompliance. Such doctunents sliall include specific action to he taken by the User to correct the noncompliance within a time period specified by the document. Such documents sliall have the same force and effect as the adininistrative orders issued pursuant to Scctions 22,03,010 (d) and (e) of this ordinance and shall be judicially enforceable. Page 28 of 3d (e) Show Cause Hearing The Director may order a User which has violated, or continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirement, to appear before the Director and show cause why the proposed enforcement action should not be taken. Notice shall be served on the Uscr specifying the time and place for the meeting, the proposed enforcement action, the reasons for such action, and a request that tlue User show cause why the proposed enforcement action should not be taken. The notice of the meeting shall be served personally or by registered or certified mail (return receipt requested) at least ten (10) days prior to the hearing. Such notice may be served on any Authorized Representative of the User as defined in Section 22,03.001 (d) and required by Section 22,03.004 (g). A show cause hearing shall not be a bar against, or prerequisite for, taking any other action against the User. (d) Compliance Orders When the Director finds that a User has violated, of continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirement, the Director inay issue an order to the User responsible for the discharge directing that the User come into compliance within a specified time. If the User does not come into compliance within the time provided, sewer service may be discontinued unless adequate treatment facilities, devices, or other related appurtenances are installed and properly operated. Compliance orders also may contain other requirements to address the noncompliance, including additional self -monitoring and management practices designed to minimize the amount of pollutants discharged to the sewer. A compliance order may not extend the deadline for compliance established for a Pretreatment Standard or Requirement, nor does a compliance order relieve the User of liability fou any violation, including any continuing violation. Issuance of a compliance order shall not be a bar against, or a prerequisite for, taking any other action against the User. (e) Cease and Desist Orders When the Director finds chat a User has violated, or continues to violate, any provision of this ordinance, all individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirement, or that the User's past violations are likely to recur, the Director may issue an order to the User directing it to cease and desist all such violations and directing the User to: (1) Immediately comply with all requirements; and (2) Take such appropriate remedial or preventive action as may be needed to properly address a continuing or threatened violation, including halting operations and/or terminating the discharge. Issuance of a cease and desist order shall not be a bar against, or a prerequisite for, taking any other action against the User. (1) Administrative Tines (1) When the Director finds that a User has violated, or continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirement, titre Director may fine such User in an amount of one thousand dollars ($1,000). Such fines shall be assessed on a per -violation, per -day basis. In the Page 29 of 34 case of monthly or other long-term average discharge limits, fines shall be assessed for each clay during the period of violation, (2) Users desiring to dispute such fines must file a written request for the Director to reconsider the fine along with full payment of tine fine amount within ten (10) days of being notified of the fine. Where a request has merit, the Director may convene a hearing on the matter. In tite event the User's appeal is successful, the payment shall be returned to the User. (3) Issuance of an administrative fine shall not be a bar against, or a prerequisite for, taking any other action against the User. (g) Emetgettcy Suspensions The Director may immediately suspend a User's discharge, after informal notice to the User, whenever such suspension is necessary to stop an actual or threatened discharge, which reasonably appears to present, or cause an imminent or substantial endangerment to the health or welfare of persons. Tire Director may also immediately suspend a User's discharge, after notice and opportunity to respond, that threatens to interfere with the operation of the POTW, or whick presents, or may present, all endangerment to the environment. (1) Any User notified of a suspension of its discharge shall immediately stop or eliminate its contribution. Ill the event of a User's failure to immediately comply voluntarily with the suspension order, tile, Director may talce such steps as deerned necessary, including immediate severance of the sewer connection, to prevent or minimize damage to the POTW, its receiving stream, or endangerment to any individuals. The Director may allow the User to recommence its discharge when the User has demonstrated to the satisfaction of the Director that the period of endangerment has passed, unless the termination proceedings in Section 22.03.010 (h) of this ordinance are initiated against the User. (2) A User that is responsible, in whole or i►► part, for any discharge presenting i►ntnlinent endangerment shall submit a detailed written statement, describing the causes of the harnnful contribution and the measures taken to prevent any future occurrence, to the Director prior to the date of any show cause or termination hearing under Sections 22.03.010 (c) or (h) of this ordinance. Nothing in this Section shall be interpreted as requiring a hearing prior to any Emergency Suspension under this Section. (it) Termination of Discharge In addition to the provisions in Section 22.03.005 (e) of this ordinance, any User who violates the following conditions is subject to diseharge termination: (1) Violation of individual wastewater discharge permit conditions; (2) Failure to accurately report the wastewater constituents and characteristics of its discharge; (3) Faihu-c to report significant changes in operations or wastewater volume, constituents, and characteristics prior to discharge; (d) Refusal of reasonable access to the User's premises for the p111-l3ose of inspection, monitoring, or sampling; or Page 30 of 34 (5) Violation of the Prep-eatment Standards in Section 22,03,002 of this ordinance. Such User will be notified of the proposed termination of its discharge and be offered an opportunity to show cause under Section 22.03.010 (c) of this ordinance why the proposed action should not be taken. Exercise of this option by the Director shall not be a bar to, or a prerequisite for, taking any other action against. the User. SECTION 12.03.01 I —JUDICIAL ENFORCEMENT REMEDIES (a) Injimetive Relief When the Director finds that a User has violated, or continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirement, the Director may petition any court of competent jtirisdiction through the City's Attorney for the issuance of a temporary or permanent injunction, as appropriate, which restrains at- compels the specific performance of the individual wastewater discharge permit, order, or other requirement imposed by this ordinance oil activities of the User. The Director may also seek such other action as is appropriate for legal acid/or equitable relief, including a requii-ernent for the User to conduct environmental remediation. A petition for injunctive relief sliail not be a bar against, or a prerequisite for, taking any other action against a User, (b) Civil Penalties (1) A User who has violated, or continues to violate, any provision of this ordinance, an individual wastewater discharge permit, or order issued hereunder, or any other Pretreatment Standard or Requirenteitt shall be liable to the City for a maximum civil penalty not to exceed two thousand dollars ($2000) per violation, per day, In tite case of a monthly or other long-term average discharge limit, penalties shall accrue for each day during the period of the violation. (2) Tito Director may recover reasonable attorneys' fees, court costs, and other expenses associated with enforcement activities, including sampling and monitoring expenses, and the cost of any actual damages incurred by the City. (3) In determining the amount of civil liability, the Court shall take into account all relevant circumstances, including, but not limited to, the extent of harm caused by the violation, the magnitude and duration of the violation, any economic benefit gained through the User's violation, corrective actions by the User, tite compliance history of the User, and any other factor as justice requires. (4) Filing a suit for civil penalties shall not be a bar against, or a prerequisite for, taking any other action against a User. (c) Criminal Prosecution A User who willfully or negligently violates any provision of this ordinance, an individual wastewater discharge hermit, or order issued hereunder, or any other Pretreatment Standard at- Requirement shall, upon conviction, be guilty of a misdemeanor, punishable by a fine, imprisonment, or both, (d) Remedies Nonexclusive Page 31 of 34 The remedies provided for in this ordinance ale not exclusive, The Director inay take any, all, or any combination of these actions against a noncompliant User, Enforcement of pretreatment violations will generally be in accordance with the City's enforcement response flan. However, the Director may take other action against any User when the circumstances warrant. Further, the Director is empowered to take more than one enforcement action against any Iloncompliant User. SECTION 22,03Al2ATFIRMATIVE DFFFNSES TO DISCHARGE VIOLATIONS (a) Prohibited Discharge Standards A User shalt have an affirmative defense to an enforcement action brought against it for noncompliance with the general prohibitions in Section 22,03,002 (a) (1) of this ordinance or the specific prohibitions in Section 22.03,002 (a)(2)(C) through (G) and (I) through (P) of this ordinance if it can prove that it did not know, or have reason to know, that its discharge, alone or in conjuuction with discharges from other sources, would cause Pass Through or Interference and that either; (1) A Local Limit exists for each pollutant discharged and the User tvas in compliance with each limit directly prior to, and during, the Pass Throt2gh or Interference; or (2) No Local Limit exists, bttt the discharge did not change substantially in nature or constituents from the User's prior discharge when the City was regularly in compliance with its NPDES permit, and in the case of Interference, was in compliance with applicable sludge use or disposal requirements, (b) Bypass (1) For the purposes of this Sectiola, (A) Bypass means the intentional diversion of wastestreams from any portion of a User's treatment facility. (B) Severe property damage means substantial physical damage to property, damage to the treatment facilities which causes them to become inoperable, or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass, Severe property damage does not mean economic loss caused by delays in production. (2) A User may allow any bypass to occur which does not cause Pretreatment Standards o3� Requiroments to be violated, but only if it also is for essential maintenance to assure efficient operation, These bypasses are not subject to the provision of paragraphs (3) and (4) of this Section. (3) Bypass Notifications (A) If a User knows in advauce of the need for a bypass, it shall submit prior notice to the Director, at least ten (10) days before the date of the bypass, if possible. (B) A User shall submit oral notice to the Director of an unanticipated bypass that exceeds applicable Pretreatment Standards within twenty-four (24) horns from the time it becomes aware of the bypass. A written submission shall also be provided within five (5) Page 32 of 34 clays of the time the User becomes aware of the bypass. Tile written submission shall contain a descriptiolh of the bypass and its cause; the duration of the bypass, including exact dates and tinges, and, if the bypass has not been corrected, the anticipated time it is expected to continele; and steps taken or planned to reduce, eliminate, and prevent reoccurrence of tine bypass, The Director may waive tile written report on a case -by -case basis if tlhe oval report has been received within hventy-four (24) hours. (4) Bypass (A) Bypass is prohibited, and the Director play take an enforcemetht actiolh agaitlst a User for a bypass, unless (i) Bypass was unavoidable to prevent loss of life, personal injury, of severe property damage; 00 Thero were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of tuttreated wastes, or lnaintenatice during normal periods of equipment downtime. This couditiou is not satisfied if adequate back- up equipment should have been installed in the exercise of reasonable engineering judgment to prevelgt a bypass Which occurred during normal periods Of equiptIlent downtime or preventive maintenance; and (ift) The User sub►nitted notices as required under paragraph (3) of this section. (B) The Director may approve an anticipated bypass, after considering its adverse effects, if the Director determines that it will meet tlhe three conditions listed in paragraph (4)(A) of this Section. (5) Act of God (A) An event that would otherwise be a violation of this ordinance or permit issued under the ordinance which was caused solely be an Act of God, rear, strike, riot, or other catastrophe, and was unpreventable, then tlhe event is not a violation of this ordinance. SECTION 22.03.013 F RUS AND SURCHARGES (1) for each industrial wastewater discharge permit or nonhazardous waste hauler permit issued pursuant to this ordinance, each user shall pay a fee as established by the City Manager for the duration of the permit. Pel-nhits thhay relllaill Ill full force for a period of five (5) years from the (late of issuance, unless sooneh• revolted, and shall be nontransferable. (2) Each Significant User for which the City has reporting requirements under EPA National Categorical Pretreatnhent Standards or its TPDES permit shall colllpensate tile City for the cost of sa[up Iing and laboratory services 1•equired for monitoring discharges. The Director shall determine the nutliber of samples find the frequency of sampling necessary to comply with the reporting requirements. (3) Any industrial User placed on a compliance schedule will pay for associated sampling and athalytical services to thlonitor return to compliance. Page 33 of 34 (4) Users disaliarging industrial wastewater which exhibit none of the eharacteristies of waste prohibited lierein other than excessive oxygen demand and suspended solids, but having a concentration in excess of nnortnal wastewater discharge as defined oil Section 22,03,002 (d), may be accepted for trcatment if the user agrees to a surcharge over and above the regular sewer rates as established by the city. The method fon• computing the surcharge shall be based on the following formula: Oxygen deniand surcharge (BOD or COD) Co = [Be (AB)] Vu or Co = [Cc (AC)] Vu Total suspended solids surcharge (TSS) Cs � [Sc (AS)] Vu Total surcharge Ct=Co+Cs Where: Co = Surcharge for excessive BOD or COD, whichever is higher. Cs = Surcharge for excessive total suspended solids. Ct = Total surcharge. Be — BOD cost per milligram per liter per milliolt gallons, Cc = COD cost per milligram per liter per million gallons. Sc =Total suspended solids cost per milligralrt per liter per million gallons, AB = User BOD - Normal BOD = (BOD - 250). AC = User COD - Normal COD = (COD - 550). AS= User TSS - Normal TSS = (TSS - 300). Vu � Volume from user per month ill million gallons (MG), (A) Surcllarges for BOD, COD, and TSS shall be as established udder Section 22.02.002(a), water and sewer regulations generally, (B) The cottibine(I totals of the oxygen demand and suspended solids surcharges shall equal (lie total surcharge to be billed. The basis for determining the surcharges shall be reviewed as deemed necessary by the Director and shall be adjusted to reflect any change inn wastewa(er treatment cost. (C) Determination of the average concentration of strength of the User's waste shall be made by the City based oil tests conducted on representative samples collected by the City at least once each year. However, the user may request in writing that parallel sampling and tests at all times be made by tine user and tile, City, it, which ease the surcharge may be made, assuming city approval of the User's test methods, using the average of comparable values obtained by the User and the City. Pago 34 of 34 3 No vembei• 22, 2022 Consider approving the purchase of a new long throw sound system for the Julie Rogers Theater o TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Todd Simoneaux, Chief Financial Officer MEETING DATE: November 22, 2022 REQUESTED ACTION: Council consider a resolution approving the purchase of a new long throw sound system for the Julie Rogers Theater. BACKGROUND The Julie Rogers Theater is in need of a new sound system, as the current system is outdated, and many components are inoperative, A Request for Proposal (RFP), was submitted to nine vendors, with one response. The sole proposal was scored as shown below, by a panel of City employees. The panel agreed that LD Systems, of Houston, met the requirements, and is the recommended vendor. Total price is $409,540, with a 21 business day installation anticipated after parts are received. Maximum Criteria Points Vendor LID. Systems Houston, TX.. Price 40 .38.34 Warranty/Life Expectancy 30 28.34 Prior Experience/References 15 14.67 Time Frame for Installation 15 1.1.67 Total 100 93.02 FUNDING SOURCE Capital Reserve Fund and the Fund balance. RECOMMENDATION Approval of the resolution. RESOLUTION NO. BE IT RESOLVE❑ BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, Request for Proposals (RFP) were solicited for the purchase of a new long throw sound system for the Julie Rogers Theatre; and, WHEREAS, the proposal of LD Systems, of Houston, Texas, scored the highest after evaluation by City staff for overall pricing, warranty, prior company experience, and time frame for installation, as shown below; and, Maximum Criteria Points Vendor LD Systems Houston, TX. Price 40 38.34 Warranty/Life Expectancy 30 28.34 Prior Experience/References 15 14.67 Time Frame for Installation 15 11.67 Total 100 93.02 WHEREAS, City Council is of the opinion that the proposal submitted by LD Systems, of Houston, Texas, for the purchase of a new long throw sound system for the Julie Rogers Theatre in the amount of $409,540.00 should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the proposal submitted by LD Systems, of Houston, Texas for the purchase of a new long throw sound system for the Julie Rogers Theatre in the amount of $409,540.00 be accepted by the City of Beaumont. 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 November, 2022. Mayor Robin Mouton - November 22, 2022 Consider approving the purchase of security cameras for four City Park/ Coninlunity Center parking lots from Infinity Connections, Inc, TEXAS TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works & Technology Services MEETING DATE: November 22, 2022 REQUESTED ACTION: Council consider a resolution approving the purchase of security cameras for four City Park/Community Center parking lots from Infinity Connections, Inc, of Beaumont, TX. BACKGROUND In the wake of some significant criminal activity at a local park, staff was asked to evaluate locations that may warrant the installation of permanent security cameras. A committee representing the Parks, Police, Community Development and Technology Services Departments net to evaluate violent crinics, property crimes and other calls for service at the City's thirty-six (36) parks. Staff recommends that security cameras be installed at the following locations: Alice Keith Park - $23,400.00 • Community Center o (1) License Plate Reader camera to cover the entrance into the parking lot. o (4) 360-degree cameras to cover the outside of the building, surrounding parking lot and park. • Pool Facility o (2) License Plate Reader cameras to cover each entrance into the parking lot. o (1) 360-degree camera to cover the parking lot, the side of building and a partial view of the basketball court. Central Park Imagination Station - $10,750.00 • (2) License Plate Reader cameras to cover each entrance into the park. • (1) 360-degree camera to cover the parking lot and bathroom entrance. John Paul Davis Center - $11,750.00 • (2) License Plate Reader cameras to cover each entrance into the Community Center parking lot. • (3) 360-degree view cameras to cover all (3) parking lots around the Community Center, Rodgers Park - $20,750.00 • Community Center o (2) 360-degree view cameras to cover back and sides of the Community Center. • Dowlen Parking Lot o (2) License Plate Reader cameras for each parking lot entrance. o (1) 360-degree view camera to cover the parking lot. • Gladys Parking Lot o (2) License Plate Reader cameras for each parking lot entrance, o (1) 360-degree view camera to cover the parking lot. Miller Library Parking Lot o (1) License Plate Reader camera to cover the entrance to the parking lot. o (1) 360-degree camera to cover the rear parking lot, All three of the above Parks were ranked in the top 10 for both violent and property crimes, Adding the John Paul Davis Community Center would provide security coverage at all Community Centers in the City. Staff further recommends that the program be reviewed a year after the cameras are installed to evaluate effectiveness. The total cost will be $66,650. These cameras will be added to the surveillance system already in place with the City of Beaumont and will be available to both Beaumont Police Department and the Parks Department. Pricing was obtained through Buy Board. Buy Board is a buying contract that allows government entities to make purchases that have already been contracted under the procurement statutes of the State of Texas. FUNDING SOURCE Capital Reserve Fund, RECOMMENDATION Approval of resolution. RESOLUTION NO, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby approves the purchase of security cameras for four (4) City/Park Community Center parking lots, from Infinity Connections, Inc. of Beaumont, Texas, in the amount of $66,650.00 through the Buy Board Contract for the following equipment; 1. Alice Keith Park- $23,400.00 • Community Center o (1) License Plate Reader camera to cover entrance into the parking lot. o (4) 360-degree cameras to coverthe outside of the building, surrounding parking lot and park. • Pool Facility o (2) License Plate Reader cameras to cover each entrance of the parking lot. o (1) 360-degree camera to cover the parking lot, the side of the building and a partial view of the basketball court. 2. Central Park Imagination Station -$ 10,750.00 • (2) License Plate Reader cameras to cover each entrance of the park. • (1) 360-degree camera to cover the parking lot and restroom entrance. 3. John: Paul Davis Center- $11,750.00 • (2) License Plate Reader cameras to cover each entrance into the Community Center parking lot. • (3) 360-degree view cameras to cover all three (3) parking lots around the Community Center. 4. Rodgers Park- $20,750.00 • Community Center o (2) 360-degree view cameras to cover back and sides of the Community Center. • Dowlen Parking Lot o (2) License Plate Reader cameras for each parking lot entrance. o (1) 360-degree view camera to cover the parking lot. • Gladys Parking Lot o (2) License Plate Reader cameras for each parking lot entrance. o (1) 360-degree view camera to cover the parking lot. • Miller Library Parking Lot o (1) License Plate Reader camera to cover the entrance to the parking lot. o (1) 360-degree camera to cover the rear parking lot. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT these cameras will be added to the surveillance system already in place with the City of Beaumont and will be available to both Beaumont Police Department and the Parks Department; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute payment in the amount of 66,650.00 to infinity Connection, Inc., of Beaumont, Texas, for the purposes described herein. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of November, 2022. - Mayor Robin Mouton WORK SESSION Review and discuss the requirements for speakers and others in meetings of Beaumont City Council and Commission Meetings WORK SESSION Review and discuss the Parks Capital Improvement Plan