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HomeMy WebLinkAbout12/19/2023 PACKETREGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS CITY HALL 801 MAIN STREET TUESDAY, DECEMBER 19, 2023 1:30 PM AGENDA CALL TO ORDER INVOCATION PLEDGE OF ALLEGIANCE ROLL CALL PROCLAMATIONS PRESENTATIONS RECOGNITIONS PUBLIC COMMENT ON AGENDA/CONSENT Citizens may speak on the Consent Agenda/Regular Agenda Items 1-4. (Or any other topic) CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non- controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A. Council to consider approving the December 12, 2023, City Council meeting minutes. B. Council to consider a Resolution authorizing the City Manager to enter into a Grant Agreement with Legacy Community Development Corporation, LLC for the 2023 HOME Investment Partnership Funds from the Department of Housing and Urban Development C. Council consider a resolution authorizing the settlement of the lawsuit styled Dodd v. The City of Beaumont; Cause No. 23CCCV0556. D. Council to consider an appointment to the Parks and Recreation Advisory Committee. E. Council consider a resolution authorizing the acceptance of two (2) sidewalk easements from the Port of Beaumont Navigation District. F. Council consider a resolution authorizing the City Manager to enter into a Grant Agreement for the administration of Tenant Based Rental Assistance with Legacy Community Development Corporation, LLC. G. Council consider a resolution changing authorized signatories for any institution the City Council has already designated or may designate as a depository for the City of Beaumont for banking. REGULAR AGENDA 1. Council consider a resolution approving the proposal submitted by Entergy for the removal of electrical transformers located at 555 Main Street. 2. Council consider a resolution authorizing the lease of sixty-six (66) vehicles with Enterprise FM Trust. 3. Council consider a resolution authorizing the City Manager to award a contract to Aranda Industries, LLC, of Houston, for the Caldwood Area Storm Sewer Point Repairs (REBID) Project. 4. Council consider a resolution authorizing eminent domain proceeding to acquire property to improve traffic safety at North Major Drive and Northwest Parkway. DISCUSSION ITEM Council to Discuss Future Dates for City Council Meetings COUNCIL COMMENTS ADJOURNMENT Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Kaltrina Minick at (409) 880-3777. A TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Tina Broussard, City Clerk MEETING DATE: December 19, 2023 REQUESTED ACTION: Council to consider approving the December 12, 2023, City Council meeting minutes. BACKGROUND None FUNDING SOURCE None RECOMMENDATION Approval of the minutes. ATTACHMENTS Minutes - December 12, 2023. Minutes – December 5, 2023 MINUTES OF THE CITY OF BEAUMONT COUNCIL MEETING Albert “A.J.” Turner, Mayor Pro Tem ROY WEST, MAYOR Randy Feldschau, At-Large Taylor Neild, Ward I CITY COUNCIL MEETING Michael Getz, Ward II Audwin Samuel, Ward III DECEMBER 12, 2023 Chris Durio, Ward IV Tina Broussard, City Clerk Kenneth R. Williams, City Manager Sharae Reed, City Attorney The City Council of the City of Beaumont, Texas, met in a regular session in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 on December 12, 2023, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING  Invocation Pledge of Allegiance Roll Call  Proclamations, Presentation and Recognition  Public Comment: Persons may speak on the Consent Agenda/Regular Agenda items 1- 12. (or any other topic). Mayor West called the council meeting to order at 1:30 p.m. Pastor Rick Ivey, with Wesley United Methodist Church gave the invocation. Mayor West led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor West, Mayor Pro Tem Turner, Councilmembers Durio, Getz, Feldschau, Samuel and Neild. Also, present were Kenneth R, Williams, City Manager; Sharae Reed, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentation and Recognition None Public Comment: Persons may speak on the Consent Agenda/Regular Agenda Items 1 - 12. (or any other topic). (Public comments can be heard or seen at the City of Beaumont website at beaumonttexas.gov) Thefarro Richard 5275 Parkway Dr. Beaumont TX Albert Harrison 1240 Ashley Beaumont TX Jerome Alexander 1118 Evalon St. Beaumont TX Ronald Kelly 2295 Angelina Beaumont TX Minutes – December 5, 2023 Jude Paredez 10620 Gage Rd. Beaumont TX Charlie Crabbe 928 East Dr. Beaumont TX CONSENT AGENDA (Items placed on the Consent Agenda are considered routine in nature and are considered non- controversial. The Consent Agenda can be acted upon in one motion. A consensus of the Council is required to remove any item for discussion and separate action.) A. Council to consider approving the December 5, 2023, City Council meeting minutes. B. Council to consider a resolution authorizing a contract with BCBS for Stop Loss Insurance – Resolution 23-366 C. Council to consider a resolution approving the purchase of ammunition for the City Police Department from Precision Delta Corporation of Ruleville, MS – Resolution 23-367 D. Council to consider the adoption of the amended resolution for Municipal Court collections – Resolution 23-368 E. Council to consider a resolution approving the purchase of Bottled Water and Sports Drinks for Emergency Services – Resolution 23-369 F. Council to consider a resolution authorizing the City Manager to sign and execute a multi- agency Interlocal Agreement with all participating subgrantees in the Southeast Texas Auto Theft Task Force – Resolution 23-370 G. Council to consider a resolution approving a contract for workers compensation excess insurance – Resolution 23-371 Councilmember Neild moved to approve the Consent Agenda. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED REGULAR AGENDA 1. Council to consider a resolution approving the purchase of an audio/video system from Ford Audio-Video Systems, LLC of Houston, TX for use in the Police Real Time Crime Center (RTCC). The initial construction of the Real Time Crime Center (RTCC) will coincide with the audio/video (AV) setup for the center with a cost of $421,963. The initial AV setup will encompass: Minutes – December 5, 2023 • Establishing a wall of eighteen screens to view from eleven input channels. • These inputs include those listed below as well as a Computer Aided Dispatch input and input for the future FUSUS camera software. • Integrating an outdoor weather station. • Installing a digital antenna and tuners for viewing three off-air channels. • Incorporating the ability to view three cable channels. • Installing audio and video systems for both the RTCC and the adjacent conference room. • Preparing for the future installation of video screens on the side walls. • Implementing an interactive display. • Unifying the RTCC's new campus feed with the existing campus feed for the Emergency Operations Center (EOC) to enable the sharing of video inputs between the two locations (Option 5). Pricing was obtained through BuyBoard. Contracts and vendors awarded through BuyBoard have been competitively procured, to assist members with compliance with Texas local and state procurement requirements and a documented audit trail. Funds will come from the Federal Funding in the amount of $211,151.00 and the Capital Reserve in the amount of $210,812.01. Approval of the Resolution. Councilmember Getz moved to APPROVE A RESOLUTION THAT THE CITY COUNCIL BE AND ARE HEREBY AUTHORIZED TO APPROVE THE PURCHASE OF AN AUDIO AND VIDEO SYSTEM FROM FORD AUDIO-VIDEO SYSTEMS, LLC, OF HOUSTON, TEXAS, FOR THE POLICE REAL TIME CRIME CENTER (RTCC) IN THE AMOUNT OF $421,963.00 THROUGH THE BUYBOARD CONTRACT. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-372 2. Council to consider a resolution authorizing the City Manager to execute Change Order No. 1 and authorize final payment to Vortex Companies, for the East Lucas Street Storm Sewer Survey and Inspection project. On July 11, 2023, by Resolution No. 23-183, the City Council awarded a contract to Vortex Companies, of Houston, in the amount of $69,667.00 for the inspection, cleaning, and survey of the steel arch storm sewer on East Lucas Street. Proposed Change Order No. 1, in the amount of ($3,375.00), is required to deduct 1 day of traffic control and barricading that was not needed by the Contractor in order to complete the work on this project. If approved, the adjustment in quantities would result in a final contract amount of $66,292.00. Minutes – December 5, 2023 The project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of Change Order No. 1, and final payment in the amount of $66,292.00 is recommended. Funding will come from Certificates of Obligation. Approval of the resolution. Councilmember Samuel moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZE TO EXECUTE CHANGE ORDER NO. 1 IN THE AMOUNT OF ($3,375.00), THEREBY DECREASING THE TOTAL CONTRACT AMOUNT TO $66,292.00 FOR THE EAST TEXAS STREET STORM SURVEY AND INSPECTION PROJECT AND THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO MAKE FINAL PAYMENT IN THE AMOUNT OF $66,292.00 TO VORTEX COMPANIES, OF HOUSTON, TEXAS. Councilmember Durio seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-373 3. Council to consider a resolution authorizing the City Manager to execute Change Order No. 1 and authorize final payment to Vortex Companies, for the 102” Storm Sewer Outfall Survey and Inspection project. On July 11, 2023, by Resolution No. 23-183, the City Council awarded a contract to Vortex Companies, of Houston, in the amount of $29,092.00 for the inspection, cleaning, and survey of the 102” storm sewer outfall line in the Port of Beaumont. Proposed Change Order No. 1, in the amount of ($6,750.00), is required to deduct 2 days of traffic control and barricading that were not needed by the Contractor in order to complete the work on this project. If approved, the adjustment in quantities would result in a final contract amount of $22,342.00. The project has been inspected by the Engineering Division and found to be complete in accordance with the provisions and terms set forth in the contract. Acceptance of Change Order No. 1, and final payment in the amount of $22,342.00 is recommended. Funds will come from Certificates of Obligation. Approval of the Ordinance. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 1 IN THE AMOUNT OF ($6,750.00), THEREBY DECREASING THE TOTAL CONTRACT AMOUNT TO $22,342.00 FOR THE 102” STORM SEWER OUTFALL SURVEY AND INSPECTION PROJECT AND THAT THE CITY MANAGER Minutes – December 5, 2023 IS HEREBY AUTHORIZED TO MAKE FINAL PAYMENT IN THE AMOUNT OF $22,342.00 TO VORTEX COMPANIES, OF HOUSTON TEXAS. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-374 4. Council to consider a resolution authorizing the City Manager to execute Change Order No. 4, accept maintenance, and authorize final payment to To-Mex Construction, LLC, from Houston, for the Basin 38 and Surrounding Area Pipe Bursting Contract Project. On September 28, 2021, by Resolution No. 21-234, the City Council awarded a contract to To-Mex Construction, LLC, from Houston, in the amount of $1,700,077.50, for the Basin 38 and Surrounding Area Pipe Bursting Contract Project. Proposed Change Order No. 4, in the amount of ($296,116.60), is required to adjust the estimated quantities in the contract to reflect the actual quantities used and the addition of 147 calendar days to reflect the actual time used in the completion of the project. The adjustment in quantities is due to unknowns during the design and later discovering satisfactory pre-existing conditions during construction. The time extension is to account for supply chain issues with fiberglass manholes, delays due to obstructions from other utilities, and To-Mex crews shifting to assist the City on the Calder Place Emergency Pipe Bursting Project. If approved, the final contract amount will be $1,410,073.92. The project has been inspected by Water Utilities Staff and found to be complete in accordance with the provisions and terms set out in the contract. Acceptance of Change Order No. 4, maintenance, and final payment in the amount of $80,644.57 is recommended. Funds will come from the American Rescue Fund and Sewer Main Repair. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 4 IN THE AMOUNT OF ($296,116.60), THEREBY DECREASING THE TOTAL CONTRACT AMOUNT TO $1,410,073.92 FOR THE BASIN 38 AND SURROUNDING AREA PIPE BURSTING CONTRACT PROJECT. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Minutes – December 5, 2023 RESOLUTION 23-375 5. Council to consider a resolution approving a five-year lease purchase agreement with KS State Bank of Manhattan, Kansas related to the purchase of a fire pumper truck. On November 2, 2021, the Council approved the purchase of a Pierce Enforcer Fire Pumper Truck in the amount of $713,315. Bids were requested for a fixed rate finance agreement to reimburse the city for the purchase of the truck with the first payment in the arrears following the date of purchase of the truck which was on August 18, 2023. The total lease purchase cost, including interest of 6.02 %, is $847,152.80. Bids were solicited from eighty (80) vendors and three responses were received. Staff is recommending an agreement with KS State Bank of Manhattan, Kansas with an interest rate of 6.02%. Bank Funding, LLC of Boyd, Maryland did not meet the requirements of offering a fixed interest rate. Funds will come from the Capital Reserve Fund. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A FIVE (5) YEAR LEASE PURCHASE AGREEMENT AT A FIXED RATE OF 6.02% FOR A TOTAL LEASE PURCHASE COST OF $847,152.80 FOR THE LEASE PURCHASE OF A PIERCE ENFORCER FIRE PUMPER TRUCK WITH KS STATE BANK, OF MANHATTAN, KANSAS, Councilmember Durio seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION/ORDINANCE 23-376 6. Council to consider a resolution approving the renewal of an annual maintenance agreement from CentralSquare of Lake Mary, FL for use by Police, Fire, and EMS. CentralSquare software plays a vital role in the dispatching of emergency personnel, records management for Police, miscellaneous reporting, case management, and various other crucial functions for Police, Fire, and EMS. The procurement of this software is exempt from competitive bidding because it is exclusively available from a single source with the rights to modify and maintain the software. The software maintenance agreement ensures 24/7 unlimited telephone support for 911 dispatching, with additional Monday to Friday, 8 AM to 5 PM support for mobile computers, electronic field reporting, and all records management applications. Moreover, it includes annual software upgrades. This agreement, valued at $386,725.46, covers an annual period starting from January 2024. Funds will come from the General Fund. Minutes – December 5, 2023 Approval of the resolution. Councilmember Neild moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO APPROVE THE RENEWAL OF AN ANNUAL MAINTENANCE AGREEMENT WITH CENTRALSQUARE TECHNOLOGIES, OF LAKE MARY, FLORIDA FOR USE BY THE POLICE, FIRE, AND EMS IN THE AMOUNT OF $386,725.46 BEGINNING JANUARY 1, 2024. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-377 7. Council to consider a resolution authorizing the City Manager to execute Change Order No. 2 to the contract with To-Mex Construction, LLC, of Houston, for the Florida Avenue Emergency Sewer Repair. On January 10, 2023, by Resolution No. 23-018, the City Council awarded a contract to To-Mex Construction, LLC, of Houston, for the Florida Avenue Emergency Sewer Repair in the amount of $316,989.88. Proposed Change Order No. 2, in the amount of $216,746.08, is needed for additional unexpected construction site discoveries and requirements by Union Pacific Railroad. Meeting amended railroad requirements, protection of pre-existing underground conflicts, additional bypass pumping, full repair of the roadway, replacing a failing storm sewer in the area, and remobilization once the storm sewer agreement is executed are covered under this change order. If approved, Change Order No. 2 would result in a new contract amount of $539,235.93 with an additional 37 calendar days. Funds will come from the Capital Program and Sewer Main Repair. Approval of the resolution. Councilmember Samuel moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CHANGE ORDER NO. 2 IN THE AMOUNT OF $216,746.08, THEREBY INCREASING THE TOTAL CONTRACT AMOUNT TO $539,235.93 AND ADDING AN ADDITIONAL 37 (THIRTY-SEVEN) CALENDAR DAYS TO THE CONTRACT TIME FOR THE FLORIDA AVENUE EMERGENCY SEWER REPAIR PROJECT. Councilmember Neild seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED Minutes – December 5, 2023 RESOLUTION/ORDINANCE 23-378 8. Council to consider a resolution adopting procurement policies in connection with receiving funding from the Texas Community Development Block Grant Disaster Recovery Program. The Community Development Block Grant (CDBG) Disaster Recovery Program funding has been awarded by the Department of Housing and Urban Development (HUD) to disaster impacted counties from the 2019 Floods (including Tropical Storm Imelda) for infrastructure assistance. On July 26, 2022, by Resolution No. 22-183, City Council authorized the City Manager to execute all documents necessary to apply for and accept funding from the Texas General Land Office (GLO) for the CDBG Recovery Program for the Laura Addition Drainage Improvements project. The GLO requires the City to adopt policies in accordance with various Federal requirements. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION ADOPTING THE POLICIES IN CONNECTION WITH BEAUMONT, TEXAS, PARTICIPATION IN FEDERALLY FUNDED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECTS AND ADHERENCE TO THE REGULATIONS DESCRIBED THEREIN. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-379 9. Council to consider a resolution designating the City Manager as authorized signatories for contractual and financial documents to apply for and receive funding from the Texas Community Development Block Grant Disaster Recovery Program. The Community Development Block Grant (CDBG) Disaster Recovery Program funding has been awarded by the Department of Housing and Urban Development (HUD) to disaster impacted counties from the 2019 Floods (including Tropical Storm Imelda) for infrastructure assistance. On July 26, 2022, by Resolution No. 22-183, City Council authorized the City Manager to execute all documents necessary to apply for and accept funding from the Texas General Land Office (GLO) for the CDBG Recovery Program for the Laura Addition Drainage Improvements project. The GLO requires the City to have at least two authorized signatories for contractual and financial documents. In addition to the City Manager, by this resolution, City Council authorizes the following: Minutes – December 5, 2023 • The Mayor, Assistant City Manager, and Public Works Director are authorized to execute contractual documents associated with the Community Development Block Grant – 2019 Floods Program; and • The Director of Public Works and City Engineer are authorized to execute environmental review documents and to certify to environmental clearance matters associated with the CDBG-DR project; and • The Assistant City Manager, Chief Financial Officer, City Controller, and Grants Accountant are authorized to execute the State of Texas Purchase Voucher and Request for Payment Form documents required for requesting funds approved in the Community Development Block Grant – 2019 Floods Program. Approval of the resolution. Councilmember Feldschau moved to APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, DESIGNATING AUTHORIZED SIGNATORIES FOR CONTRACTUAL DOCUMENTS AND DOCUMENTS FOR REQUESTING FUNDS PERTAINING TO THE COMMUNITY DEVELOPMENT BLOCK GRANT - 2019 FLOODS - CDBG-DR. Councilmember Getz seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-380 10. Council to consider a resolution that grants authorization to the City Manager or their representative to engage in a three-year contract with FUSUS Inc. based in Peachtree Corners, GA. Additionally, the resolution permits the City Manager or their representative to establish Memoranda of Understanding agreements with community members concerning shared camera access. At present, the Beaumont Police Department can access a variety of information, data, and video streams from different sources. However, each source necessitates separate logins and navigation to retrieve information. FUSUS technology streamlines this process by consolidating the existing data sources into a single interactive feed, all accessible on one video screen. In addition to utilizing city-owned video sources, FUSUS enables both citizens and businesses to contribute their private camera feeds, integrating all sources into a unified display. FUSUS technology is set to serve as the foundational infrastructure for the department's Real Time Crime Center. FUSUS, Inc. is a sole source vendor. Funds will come from the Capital Reserve Fund. Approval of the resolution. Councilmember Samuel moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE A CONTRACT WITH FUSUS INC., OF PEACHTREE CORNERS, GEORGIA FOR THREE (3) YEARS FOR THE ACCESS OF A VARIETY OF INFORMATION, DATA AND VIDEO STREAMS FROM DIFFERENT SOURCES; AND THAT THE CITY MANAGER OR HIS Minutes – December 5, 2023 DESIGNEE BE AND THEY ARE HEREBY AUTHORIZED TO ENTER INTO AN MEMORANDUM OF UNDERSTANDINGS WITH COMMUNITY MEMBERS CONCERNING SHARED CAMERA ACCESS. Councilmember Getz seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION 23-381 11. Council to consider a resolution casting the City of Beaumont's votes (487) to Lauren Williams Mason for election to the Jefferson Central Appraisal District Board of Directors for the 2023-2024 term of office. A letter from the Chief Appraiser of the Jefferson County Appraisal District has been provided for Council’s review. Approval of the resolution. Councilmember Durio moved to APPROVE A RESOLUTION THAT THE CITY COUNCIL HEREBY CASTS ALL OF ITS VOTES FOR LAUREN WILLIAMS MASON TO THE BOARD OF DIRECTORS OF THE JEFFERSON CENTRAL APPRAISAL DISTRICT. Councilmember Samuel seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED RESOLUTION/ORDINANCE 23-382 12. Council to consider an ordinance designating a geographic area within the city as a tax increment reinvestment zone; describing the boundaries of the zone; creating a board of directors for the zone and appointing members of the board; establishing a Tax Increment Fund (TIRZ Fund) for the zone; containing findings related to the creation of the zone; and providing for a date for the termination of the zone. The city hired a consulting firm - Petty & Associates - in August to work with the City to determine the feasibility of the creation of a Tax Increment Reinvestment Zone (TIRZ) for downtown Beaumont. Multiple meetings were held with City staff, and information and data were provided to the consultant for determining the feasibility of a downtown TIRZ. A meeting with the City Council was held by the consultant to give an overview of the TIRZ and discuss it in detail. At the November 21st City Council meeting, a presentation was given by the consultant based on the results of the feasibility study that was conducted. That City Council meeting also allowed the City Council to ask questions of the consultant and staff, related to the proposed TIRZ creation for downtown Beaumont. Also, at the City Council meeting on November 21st, the City Council voted on a resolution to set a public Minutes – December 5, 2023 hearing for December 5th for the TIRZ creation. A public hearing was held on December 5th. This agenda item requests consideration for the approval of an ordinance to create the downtown Beaumont TIRZ, to be known as Reinvestment Zone, Number One. Upon adoption of the ordinance, the Reinvestment Zone, Number One will be created, and any increment received above the base value, beginning January 1, 2024, will be deposited into the TIRZ Fund. Approval of the ordinance, before the end of the calendar year, will allow for tax increment revenue for the 2024 tax year to be received by the City during the 2024-2025 fiscal year. Approval of the ordinance. Councilmember Neild moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, DESIGNATING A GEOGRAPHIC AREA WITHIN THE CITY AS A TAX INCREMENT REINVESTMENT ZONE PURSUANT TO CHAPTER 311 OF THE TEXAS TAX CODE, TO BE KNOWN AS THE REINVESTMENT ZONE NUMBER ONE, CITY OF BEAUMONT, TEXAS; DESCRIBING THE BOUNDARIES OF THE ZONE; CREATING A BOARD OF DIRECTORS FOR THE ZONE AND APPOINTING MEMBERS OF THE BOARD; ESTABLISHING A TAX INCREMENTS FUND (TIRZ FUND) FOR THE ZONE; CONTAINING FINDINGS RELATED TO THE CREATION OF THE ZONE; PROVIDING THAT THE ZONE TAKE EFFECT IMMEDIATELY UPON PASSAGE OF THE ORDINANCE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Councilmember Taylor seconded the motion. AYES: MAYOR WEST, MAYOR PRO TEM TURNER, COUNCILMEMBERS DURIO, GETZ, FELDSCHAU, SAMUEL AND NEILD NAYS: NONE MOTION PASSED ORDINANCE 23-103 COUNCILMEMBER COMMENTS (Councilmember comments can be heard or seen at the City of Beaumont website at beaumonttexas.gov) COUNCILMEMBER TEM DURIO - COUNCILMEMBER GETZ - MAYOR PRO TEM TURNER - COUNCILMEMBER FELDSCHAU - COUNCILMEMBER SAMUEL - COUNCILMEMBER NEILD - CITY ATTORNEY REED – PW DIRECTOR BARTKOWIAK – Minutes – December 5, 2023 ACM BOONE – ACM ELLIS - CITY CLERK BROUSSARD - CITY MANAGER WILLIAMS - MAYOR WEST – Open Session of the meeting adjourned at 2:54 p.m. EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: • Dodd v. City of Beaumont; Cause No. 23CCCV0556 • IN RE: Aqueous Film-Forming Foams Products Liability; MDL No. 2:18-mn-2873-RMG Roy West, Mayor Tina Broussard, City Clerk B TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Chris Boone, Assistant City Manager, Community Services MEETING DATE: December 19, 2023 REQUESTED ACTION: Council to consider a Resolution authorizing the City Manager to enter into a Grant Agreement with Legacy Community Development Corporation, LLC for the 2023 HOME Investment Partnership Funds from the Department of Housing and Urban Development BACKGROUND The City of Beaumont receives an annual allocation of HOME Investments Partnerships funds from the U. S. Department of Housing and Urban Development ( HUD)., Federal regulations require that a minimum of fifteen percent (15%) of the City' s total HOME fund allocation be awarded to Community Housing Development Organizations (CHDO' s) for eligible CHDO activities. Legacy Community Development Corporation (Legacy CDC), a HUD certified CHDO, is seeking to stabilize neighborhoods by providing homeownership opportunities for low to moderate income families. Legacy proposes to utilize $94,109 (CHDO Reserve funds) for acquisition, rehabilitation and resale of one (1) home to be sold to eligible low to moderate income families. In addition, Legacy is requesting $31,370 for operating funds. The funds will be used to cover the salaries for administrative staff. Any and all income received by Legacy for any properties must be used toward furthering the organization' s affordable housing activities. Housing Division staff will be responsible for monitoring Legacy for HOME Program compliance. FUNDING SOURCE US Department of Housing and Urban Development RECOMMENDATION Approval of the Resolution ATTACHMENTS Legacy request for Funds 2023 CHDO Reserve Grant Agreement 2023 CHDO Operating Grant Agreement 2023 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a Grant Agreement with Legacy Community Development Corporation (Legacy CDC) in the total amount of $125,479.00 (Entitlement funds), $31,370.00 for related operating expenses and $94,109.00 (CHDO Reserve funds) for the acquisition and the rehabilitation of one (1) home to be sold to eligible low to moderate income families, said contracts to be funded from the 2023 HOME program. 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 19th day of December, 2023. _______________________________ - Mayor Roy West - HOME CHDO ALLOCATION FUNDING AGREEMENT between the CITY OF BEAUMONT and the Legacy Community Development Corporation This Community Housing Development Allocation Funding Agreement (Agreement hereinafter) is made and entered into by and between the CITY OF BEAUMONT, a Home Rule Municipal Corporation incorporated under the laws of the State of Texas (City hereinafter), and the Legacy Community Development Corporation, a Texas non-profit corporation (CHDO hereinafter), located at 700 North, Ste. D Street, Beaumont, Texas 77701. WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-23-MC-48-0201); WHEREAS, the City has the objective of providing for the development of low-to-moderate income housing for residents of the City through its Community Development Division; WHEREAS, the Legacy Community Development Corporation, through its express purpose as set forth in its corporate bylaws, shares this common goal with the City as a City of Beaumont approved Community Housing Development Organization (CHDO hereinafter); WHEREAS, pursuant to the authority of Resolution Number #, passed by the Beaumont City Council on 12/12/2023 the Legacy Community Development Corporation will enter into a contract with the City for 2022 HOME funds totaling Thirty-One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00); WHEREAS, the City is required to reserve not more than 5 percent of the HOME allocation for any fiscal year CHDO operation and expenses to be used by certified CHDOs pursuant to applicable U S Department of Housing and Urban Development (HUD) regulations including but not limited to 24 CFR 92.300 (see attached hereto as Exhibit A), and as approved in the City’s 2023 Action Plan update of the 2020 - 2024 Consolidated Plan which set aside 5% of the HOME Grant funds for CHDO operational expenses; WHEREAS, The HOME 5% CHDO Operating allocation of Thirty-One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00) will be used for reasonable and necessary costs for the operation of the CHDO. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies. NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual purposes and obligations set forth herein, the City and CHDO covenant and agree as follows: This Agreement sets forth the understanding of the parties concerning the City’s HOME allocation as approved by HUD. It is the intent of this Agreement to outline what eligible activities and procedures the CHDO must comply with in order to qualify for a portion of the City’s HOME CHDO operations. The parties have severally and collectively agreed, and by the execution hereof are bound, to the mutual obligations and to the performance and accomplishment of the tasks described herein. Section 1 – City’s Responsibilities A. The Community Development administrator, or other designated Community Development Staff, will act as liaison on behalf of the City. B. The City agrees to assume overall responsibility as the CHDO for ensuring that the Housing Assistance programs using HOME funds are carried out in accordance with the HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete and provide documentation as required by HUD for program reporting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of Thirty-One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00) on a reimbursement basis to the CHDO for eligible activities as outlined in 24 CFR 92.300 (attached hereto as Exhibit A), carried out within the City’s jurisdictional boundaries, specifically, the operation of a local office. Specifically, activities carried out will include the payment of rent, utilities, purchase of equipment, travel and salaries for administrative assistant. Costs will be reimbursed as set forth in the program budget attached hereto. D. CHDO agrees that a single or program-specific audit report is a condition of funding for all entities that expend $500,000.00 or more in a year in Federal awards. The City of Beaumont requires the CHDO to submit a financial review for the 2023 fiscal year by August 30, 2025. Section 2 – Legacy Community Development Corporation Responsibilities A. The Executive Director for the CHDO, or other designated CHDO staff, will act as liaison on behalf of the CHDO. B. CHDO agrees to execute any and all documents requested by the City for compliance with the HOME Investment Partnership Program, as specified in 24 CFR 92.505(b) (attached hereto as Exhibit B) and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. C. CHDO agrees to maintain itself as a City certified CHDO in accordance with Title II of the National Affordable Housing Act (1990), as it may be amended, concerning the HOME Investment Partnership program (HOME) (24 CFR 92.300) (see attached Exhibit A), and the regulations policies and reporting requirements established by the City in conjunction with HUD, including CHDO recertification annually and/or prior to the execution of a contract for HOME CHDO Reserve funds. D. CHDO agrees to provide the City full and complete documentation of all eligible acquisition, materials, professional fees and labor expenses fourteen (14) calendar days prior to the requested reimbursement date. All eligible expenses must be already paid in full by CHDO prior to submittal to the City. The Community Development Administrator may waive this requirement to facilitate program goals and objectives. E. CHDO agrees to refund all HOME funds found to have been used for ineligible and/or unapproved programs or activities. These repayments will be made within thirty (30) days of notification by the City of the ineligible expenditures. F. CHDO agrees to meet with the City to discuss progress or concerns as the need arises and at the City’s request. CHDO also agrees to report on a bi-annual basis to the City on program/project status as outlined in 24 CFR 92.300 (attached hereto as Exhibit A). This must be a written report of the status on recently completed, ongoing, and pre-approved programs and/or projects, and must include information for the reporting period to include the status on applicant approvals/denials; projects/programs approved; fund disbursements; project bidding information; property sales; contractor/subcontractor utilization (amounts, ethnicity, addresses, social security numbers and amounts billed and paid); use of CHDO proceeds; and other information as appropriate and required by the attached program guidelines (Exhibit C). CHDO agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont’s 2022 Action Plan (as it may be amended), program design criteria and construction standards. G. CHDO agrees to place all sales proceeds gained from this program back into its Affordable Housing Initiative Program, and more specifically, into other HOME eligible CHDO housing activities located within the jurisdictional boundaries of Beaumont for as long as the CHDO is certified by the City as a CHDO. Eligible activities include (a) eligible project costs related to the development and construction of new houses AND (b) home buyer assistance including, but not limited to, lease-purchases, mortgage principal buy down, closing costs, pre-paid or any other reasonable AND necessary eligible expenses. The CHDO understands and agrees that should the CHDO become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City. The CHDO further understands and agrees to, and shall transfer to the City, any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if CHDO becomes defunct or insolvent. H. CHDO agrees that the City will provide the CHDO with Thirty-One Thousand Three Hundred Seventy Dollars and 00/100 ($31,370.00) of 2023 HOME funds to be available through the City’s draw process on or after the effective date of this contract. Payment shall be made directly to the CHDO, upon receipt of invoices or payment vouchers from CHDO certifying that all requirements have been met. I. The CHDO also understands and agrees to adhere to the City’s procurement process (attached hereto as Exhibit D). The City shall reserve the right to investigate, examine and monitor, at any time, any and all such records relating to the operations or expenditures of CHDO under this Agreement. J. The CHDO agrees to adhere to all local, state and federal regulations applicable to rental housing qualifying as Affordable Rental Housing as per 24 CFR 92.252, and established Fair Market Rents (Schedule B attached), Income Limits (221(d)(3) (attached hereto as Exhibit E). Section 3 - General Terms A. This Agreement shall be fully executed in writing by both parties, and extend from January 25, 2024 through January 24, 2025. With agreement by both parties, the Agreement may be extended for a time specified in a jointly signed and approved term extension memorandum, not to exceed 24 months from the original effective date. B. This Agreement and the rights and obligations contained herein may not be assigned by either party. C. This Agreement has been made under, and shall be governed by, the laws of the State of Texas. The parties agree that performance and all matters related thereto shall be in Beaumont, Texas. D. This Agreement may only be amended by written instrument, approved and executed by both parties. E. The City may terminate this agreement if at any time, after a thirty-day written notice, the CHDO is found to have violated any federal, state or local requirements, for nonperformance of the terms of this agreement, or upon the unavailability of HOME funds. F. It is expressly understood and agreed by and between the City and the CHDO that this Agreement is wholly conditioned upon the actual availability of federal HOME funds allocated to the City by the U S Department of Housing and Urban Development (HOME Program No. M-23- MC-48-0201), and that all monies distributed to, or in behalf of the, CHDO hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. G. This Agreement provides for any administrative and/or operating costs incurred by the CHDO. H. The Agreement does not provide for Predevelopment costs as defined in 24 CFR Part 92.301 (attached hereto as Exhibit F) I. If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable by a court, by HUD, or other competent tribunal, the validity, legality, and enforceability of the remaining provisions shall not be impaired thereby. In such event, the parties hereby agree to use their best efforts to replace the respective provision or provisions with terms and conditions approximating the original intent of the parties and conforming in all respects with applicable law and HUD regulations and directives. J. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City’s right to assert or rely upon any such term or right on any future occasion. K. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. L. CHDO covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. M. No officer, employee or member of CHDO or CHDO’s subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to CHDO. Any willful violation of this paragraph with the knowledge, expressed or implied, of CHDO or its subcontractors, shall render this contract voidable by the City of Beaumont. N. No grants shall be made by CHDO to its directors or officers, either directly or indirectly, through family members, business partners or employees. CHDO agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of CHDO shall render this contract voidable by the City. O. CHDO covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with federal, state and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. CHDO further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program, under which these funds are granted. P. Each party has the full power and authority to enter into and perform this Agreement, and the person signing on behalf of each party has been properly authorized and empowered to execute this Agreement. Q. The parties hereby acknowledge that they have read, understand, and intend to be bound by the terms and conditions contained herein. Legacy Community Development Corporation By: _______ Vivian L. Ballou, Executive Director Date STATE OF TEXAS ' ' ACKNOWLEDGMENT CITY OF BEAUMONT ' This instrument was acknowledged before me on the day of _____________, 2024, by Vivian Ballou, as Executive Director of Legacy Community Development Corporation a non- profit organization, on behalf of said organization. Notary Public in and for the State of Texas Jessica D. Prince CITY OF BEAUMONT By: ____ Kenneth R. Williams, City Manager Date ATTEST: By: Tina Broussard, City Clerk Date HOME CHDO ALLOCATION FUNDING AGREEMENT between the CITY OF BEAUMONT and the Legacy Community Development Corporation This Community Housing Development Allocation Funding Agreement (Agreement hereinafter) is made and entered into by and between the CITY OF BEAUMONT, a Home Rule Municipal Corporation incorporated under the laws of the State of Texas (City hereinafter), and the Legacy Community Development Corporation, a Texas non-profit corporation (CHDO hereinafter), located at 700 North Street, Beaumont, Texas 77701. WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-23-MC-48-0201); WHEREAS, the City has the objective of providing for the development of low-to-moderate income housing for residents of the City through its Community Development Division; WHEREAS, the Legacy Community Development Corporation, through its express purpose as set forth in its corporate bylaws, shares this common goal with the City as a City of Beaumont approved Community Housing Development Organization (CHDO hereinafter); WHEREAS, pursuant to the authority of Resolution Number #-----, passed by the Beaumont City Council on 12/12/2023 the Legacy Community Development Corporation will enter into a contract with the City for an award of the 2023 HOME funds totaling Ninety-Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00). WHEREAS, the City is required to reserve not less than 15 percent of the HOME allocation for any fiscal year for investment only in housing to be developed, sponsored, or owned by certified CHDOs pursuant to applicable US Department of Housing and Urban Development (HUD) regulations including but not limited to 24 CFR 92.300 (see attached hereto as Exhibit A), and as approved in the City’s 2023 Action Plan of the 2020 - 2024 Consolidated Plan which set aside a portion of HOME Grant funds for CHDOs to develop low-to-moderate income housing; WHEREAS, The HOME allocation of Ninety-Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00) will be used for the eligible costs related to the acquisition and rehabilitation of one (1) existing unit. Such housing will provide decent, safe and sanitary housing for eligible families; WHEREAS, the City desires to assist the CHDO in providing for the acquisition of low-to- moderate income housing through funds provided by HUD’s Home Investment Partnerships Program (HOME Program); NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual purposes and obligations set forth herein, the City and CHDO covenant and agree as follows: This Agreement sets forth the understanding of the parties concerning the City’s HOME allocation as approved by HUD. It is the intent of this Agreement to outline what eligible activities and procedures the CHDO must comply with to qualify for a portion of the City’s HOME CHDO set aside. The parties have severally and collectively agreed, and by the execution hereof are bound, to the mutual obligations and to the performance and accomplishment of the tasks described herein. Section 1 – City’s Responsibilities A. The Community Development administrator, or other designated Community Development Staff, will act as liaison on behalf of the City. B. The City agrees to assume overall responsibility as the CHDO for ensuring that the Housing Assistance programs using HOME funds are carried out in accordance with the HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete and provide documentation as required by HUD for program reporting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of Ninety-Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00). on a reimbursement basis to the CHDO for eligible activities as outlined in 24 CFR 92.300 (attached hereto as Exhibit A), carried out within the City’s jurisdictional boundaries, specifically, the acquisition and rehabilitation of one (1) unit. Specific activities to be carried out will include acquisition, closing costs, warranties, appraisals, surveys, inspections and make- ready costs associated with one (1) unit which will be purchased, rehabbed and sold to low/moderate income persons at or below 80% of the median income. Costs will be reimbursed as set forth in the program’s reimbursement policy. D. CHDO agrees that a single or program-specific audit is a condition of funding for all entities that expend $500,000.00 or more in a year in Federal awards. The City of Beaumont requires the CHDO to submit the most current financial review for the fiscal year completed by August 30, 2024. Section 2 – Legacy Community Development Corporation Responsibilities A. The Executive Director for the CHDO, or other designated CHDO staff, will act as liaison on behalf of the CHDO. B. CHDO agrees to execute any and all documents requested by the City for compliance with the HOME Investment Partnership Program, as specified in 24 CFR 92.505(b) (attached hereto as Exhibit B) and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. C. CHDO agrees to maintain itself as a City certified CHDO in accordance with Title II of the National Affordable Housing Act (1990), as it may be amended, concerning the HOME Investment Partnership program (HOME) (24 CFR 92.300) (see attached Exhibit A), and the regulations policies and reporting requirements established by the City in conjunction with HUD, including CHDO recertification annually and/or prior to the execution of a contract for HOME CHDO Reserve funds. D. CHDO agrees to assure that all acquisition or rehabilitation projects will meet or exceed all written locally adopted Property Standards as well as all applicable local and state codes and other federal requirements. Within ninety (90) days of the execution of this agreement, the Legacy Community Development Corporation will adopt the City’s construction specifications and standards to be used on projects funded by this agreement. Where applicable, all floor plans must be certified as having met or exceeded the Model Energy Code prior to construction. Variations from these standards should be approved in writing by the City’s representative. Quality and affordability shall be the criteria used to determine whether a requested variance will be approved. E. CHDO agrees to complete all acquisition, rehabilitation or new construction projects within two years from the date of this agreement, or by federally required deadlines, whichever is sooner. For projects including acquisition for new construction, the construction must begin within one (1) year of the acquisition of the property. The issuance of a building permit will constitute start of construction. If construction cannot be commenced by its start date as set out in Exhibit A, the CHDO shall notify the City in writing at least 30 days prior to the commencement date of the specific nature of the events that prevent the commencement of construction. The City shall either approve a new commencement date or deny the request for extension. The decision of the City’s representative shall be final. If a new start date is not approved, funds allocable to the structure will be removed from the contract and the CHDO will be required to deed to the City any real property provided. F. CHDO agrees to provide the City full and complete documentation of all eligible acquisition, materials, professional fees and labor expenses fourteen (14) calendar days prior to the requested reimbursement date. All eligible expenses must be already paid in full by CHDO prior to submittal to the City. The Community Development Administrator may waive this requirement to facilitate program goals and objectives. G. Except where unavailable, CHDO agrees to make the homes acquired through this contract available to applicants who have been qualified through a HUD Certified Homebuyer Counseling Agency. Where applicable, CHDO agrees to collect homeownership applications, determine eligibility, gather all initial data connected with these applications, and to assist the prospective homebuyer with the negotiation of permanent financing with participating lenders. CHDO agrees to ensure the long-term affordability of the property to the new homebuyer as specified in 24 CFR 92.252 (attached hereto as Exhibit C). These affordability requirements must be enforced by the use of 2nd Lien Deeds of Trust and deed restrictions. H. CHDO agrees to affirmatively market all properties to eligible low- or moderate-income families as described 24 CFR 92.351 (a) (Exhibit D). I. CHDO agrees to furnish the City with information on the program participants necessary to meet HUD reporting requirements (i.e., income verifications, ethnicity, age, sex, family status, disability status and head-of-household status). Approval by the City is required prior to the applicant receiving an approval letter from the CHDO. CHDO also agrees to make all files on projects/programs funded by this agreement available for inspection by City staff. CHDO will report any project and/or program delays or modifications and await City approval before proceeding. CHDO will also report any instances of client fraud or program abuse to the City. J. CHDO agrees to refund all HOME funds found to have been used for ineligible and/or unapproved programs or activities. These repayments will be made within thirty (30) days of notification by the City of the ineligible expenditures. K. CHDO agrees to meet with the City to discuss progress or concerns as the need arises and at the City’s request. CHDO also agrees to report on a bi-annual basis to the City on program/project status as outlined in 24 CFR 92.300 (attached hereto as Exhibit A). This must be a written report of the status on recently completed, ongoing, and pre-approved programs and/or projects, and must include information for the reporting period to include the status on applicant approvals/denials; projects/programs approved; fund disbursements; project bidding information; property sales; contractor/subcontractor utilization (amounts, ethnicity, addresses, social security numbers and amounts billed and paid); use of CHDO proceeds; and other information as appropriate and required by the attached program guidelines (Exhibit E). CHDO agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont’s 2023 Action Plan (as it may be amended), program design criteria and construction standards. L. CHDO agrees to place all sales proceeds gained from this program back into its Affordable Housing Initiative Program, and more specifically, into other HOME eligible CHDO housing activities located within the jurisdictional boundaries of Beaumont for as long as the CHDO is certified by the City as a CHDO. Eligible activities include (a) eligible project costs related to the development and construction of new houses AND (b) home buyer assistance including, but not limited to, lease-purchases, mortgage principal buy down, closing costs, pre- paid or any other reasonable AND necessary eligible expenses. The CHDO understands and agrees that should the CHDO become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City. The CHDO further understands and agrees to, and shall transfer to the City, any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if CHDO becomes defunct or insolvent. M. CHDO agrees to secure the financial match requirements for M-23-MC-48-0201 HOME funds. The financial funding match requirement is 25% of total expenditures less CHDO Operating funds. N. CHDO agrees that the City will provide the CHDO with Ninety-Four Thousand, One Hundred Nine Dollars and 00/100 ($91,109.00), 2023 HOME funds to be available through the City’s draw process on or after the effective date of this contract. Payment shall be made directly to the CHDO, upon receipt of invoices or payment vouchers from CHDO certifying that all requirements have been met. O. The CHDO also understands and agrees to adhere to the City’s procurement process (attached hereto as Exhibit F). The City shall reserve the right to investigate, examine and monitor, at any time, all such records relating to the operations or expenditures of CHDO under this Agreement. P. The CHDO agrees to adhere to all local, state and federal regulations applicable to rental housing qualifying as Affordable Rental Housing as per 24 CFR 92.252, established Fair Market Rents (Schedule B), and Income Limits (221(d)(3) (attached hereto as Exhibit C). Section 3 - General Terms A. This Agreement shall be fully executed in writing by both parties, and extend from January 24, 2024 through February 25, 2025. With agreement by both parties, the Agreement may be extended for a time specified in a jointly signed and approved term extension memorandum, not to exceed 24 months from the original effective date. B. This Agreement and the rights and obligations contained herein may not be assigned by either party. C. This Agreement has been made under, and shall be governed by, the laws of the State of Texas. The parties agree that performance and all matters related thereto shall be in Beaumont, Texas. D. This Agreement may only be amended by written instrument, approved and executed by both parties. E. The City may terminate this agreement if at any time, after a thirty-day written notice, the CHDO is found to have violated any federal, state or local requirements, for nonperformance of the terms of this agreement, or upon the unavailability of HOME funds. F. It is expressly understood and agreed by and between the City and the CHDO that this Agreement is wholly conditioned upon the actual availability of federal HOME funds allocated to the City by the U S Department of Housing and Urban Development (HOME Program No. M- 23-MC-48-0201), and that all monies distributed to, or in behalf of the, CHDO hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. G. This Agreement does not provide for any administrative and/or operating costs incurred by the CHDO. H. This Agreement does not provide for Predevelopment costs as defined in 24 CFR Part 92.301 (attached hereto as Exhibit G) I. If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable by a court, by HUD, or other competent tribunal, the validity, legality, and enforceability of the remaining provisions shall not be impaired thereby. In such event, the parties hereby agree to use their best efforts to replace the respective provision or provisions with terms and conditions approximating the original intent of the parties and conforming in all respects with applicable law and HUD regulations and directives. J. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City’s right to assert or rely upon any such term or right on any future occasion. K. This written instrument and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. L. CHDO covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. M. No officer, employee or member of CHDO or CHDO’s subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to CHDO. Any willful violation of this paragraph with the knowledge, expressed or implied, of CHDO or its subcontractors, shall render this contract voidable by the City of Beaumont. N. No grants shall be made by CHDO to its directors or officers, either directly or indirectly, through family members, business partners or employees. CHDO agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of CHDO shall render this contract voidable by the City. O. CHDO covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with federal, state and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. CHDO further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program, under which these funds are granted. P. Each party has the full power and authority to enter into and perform this Agreement, and the person signing on behalf of each party has been properly authorized and empowered to execute this Agreement. Q. The parties hereby acknowledge that they have read, understand, and intend to be bound by the terms and conditions contained herein. Legacy Community Development Corporation By: Vivian L. Ballou, Executive Director Date STATE OF TEXAS ' ' ACKNOWLEDGMENT CITY OF BEAUMONT ' This instrument was acknowledged before me on the day of January, 2024, by Vivian Ballou, as Executive Director of Legacy Community Development Corporation a non- profit organization, on behalf of said organization. Notary Public in and for the State of Texas Jessica D. Prince CITY OF BEAUMONT By: ____ Kenneth R. Williams, City Manager Date ATTEST: By: Tina Broussard, City Clerk Date DEFINITIONS Fair market rent (FMR). The rent, including the cost of utilities (except telephone), that would be required to be paid in the housing market area to obtain privately owned, existing, decent, safe and sanitary rental housing of modest (non-luxury) nature with suitable amenities. Fair market rents for existing housing are established by HUD for housing units of varying sizes (number of bedrooms), and are published in the Federal Register in accordance with 24 CFR part 888. Initial lease term. The initial term of the assisted lease. The initial lease term must be for at least one year. Initial contract rent. In the certificate program, the contract rent at the beginning of the initial lease term. Lease. (1) A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit. C TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Sharae Reed, City Attorney MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the settlement of the lawsuit styled Dodd v. The City of Beaumont; Cause No. 23CCCV0556. BACKGROUND The lawsuit styled Dodd v. The City of Beaumont; Cause No. 23CCCV0556 was presented and discussed in Executive Session held on December 12, 2023. The City Attorney is requesting authority to settle this suit in the amount of $13,000.00. FUNDING SOURCE General Liability Fund. RECOMMENDATION Approval of resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, the lawsuit of Dodd v. City of Beaumont; Cause No.23CCCV0556 was discussed in Executive Session properly called and held on Tuesday, December 12, 2023; and, WHEREAS, the City Attorney is requesting authority to settle this lawsuit; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be, and is hereby, authorized to settle the lawsuit of Dodd v. City of Beaumont; Cause No.23CCCV0556 for the sum of Thirteen Thousand and 00/100 Dollars ($13,000.00) for the claim of Rachel Dodd; and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the lawsuit. 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 19th day of December, 2023. _______________________________ - Mayor Roy West – D TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Sharae Reed, City Attorney MEETING DATE: December 19, 2023 REQUESTED ACTION: Council to consider an appointment to the Parks and Recreation Advisory Committee. BACKGROUND Councilmen Neild appoints Issac Mouton. The term shall begin on December 19, 2023, and expire on September 30, 2025. FUNDING SOURCE Not applicable. RECOMMENDATION None. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT Issac Mouton is appointed to the Parks and Recreation Advisory Committee by Councilmen Taylor Neild. The term for each shall begin on December 19, 2023, and expire on September 30, 2025. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of December, 2023. _______________________________ - Mayor Roy West - E TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of two (2) sidewalk easements from the Port of Beaumont Navigation District. BACKGROUND The Port of Beaumont Navigation District has agreed to convey two (2) sidewalk easements to the City of Beaumont. The easements are described as being a 0.0016 acre of land, out of and part of Block 69, Original Townsite of Beaumont, and a 0.0027 acre of land, out of and part of Block 69, Original Townsite of Beaumont, City of Beaumont, Jefferson County, Texas. The easements are for the Port of Beaumont Navigation District Truck Staging Project located at 1200 Park Street. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS Sidewalk Easement - Port of Beaumont Aerial Map – 1200 Park Street RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, the Port of Beaumont Navigation District has agreed to convey two (2) sidewalk easements to the City of Beaumont, said easements being a 0.0016 acre of land, out of and part of Block 69, Original Townsite of Beaumont, and a 0.0027 acre of land, out of and part of Block 69, Original Townsite of Beaumont, City of Beaumont, Jefferson County, Texas; and, WHEREAS, the City Council has considered the purpose of said conveyance and is of the opinion that the acceptance of said conveyances are necessary and desirable and that same 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 said above-described easements conveyed from the Port of Beaumont Navigation District, be and the same is hereby, in all things, accepted. 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 19th day of December, 2023. _______________________________ - Mayor Roy West - F TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Chris Boone, Assistant City Manager, Community Services MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to enter into a Grant Agreement for the administration of Tenant Based Rental Assistance with Legacy Community Development Corporation, LLC. BACKGROUND On October 10, 2023 Council passed Resolution 23-289 authorizing the City Manager to award $200,000 of our HOME-ARP funds for Tenant Based Rental Assistance, as outlined in our approved HOME-ARP Plan. These funds are specifically for the qualifying populations that are experiencing homelessness or at risk of homelessness. The subrecipient chosen to administer this activity was Tender Loving Care dba Legacy CDC, LLC. Staff is requesting that council authorize the City Manager to execute the Grant Agreement so that the administration of the funding can begin. FUNDING SOURCE U.S. Department of Housing and Urban Development, HOME-ARP RECOMMENDATION Approve the resolution ATTACHMENTS Grant Agreement RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a Grant Agreement for the administration of Tenant Based Rental Assistance with Legacy Community Development Corporation, LLC in the amount of $200,000.00. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of December, 2023. _______________________________ - Mayor Roy West - 1 CITY OF BEAUMONT HOME INVESTMENT PARTNERSHIP GRANT PROGRAM FOR HOME-ARP CONTRACT FOR A NON-PROFIT SUBRECIPIENT STATE OF TEXAS COUNTY OF JEFFERSON CITY OF BEAUMONT SECTION 1. PARTIES TO THE CONTRACT This contract and agreement are made and entered into by and between the City of Beaumont, Texas (hereinafter call the “City”) acting herein by it’s City Manager, duly authorized by Resolution of the City Council of the City of Beaumont and Tender Loving Care Center for Children dba Legacy Community Development Corporation, Jefferson County, Texas (hereinafter called “Subrecipient”) acting herein by its President/CEO, duly authorized by its Board of Directors. The parties hereto agree, by the execution hereof, that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WITNESSETH THAT: WHEREAS, the American Rescue Plan went into effect on March 11, 2021, and included funding for the HOME Investment Partnership Grant; and, WHEREAS, the City of Beaumont made an application for HOME Investment Partnership Grant American Rescue Plan (HOME-ARP) Entitlement funds from the U.S. Department of Housing and Urban Development, herein referred to as “HUD”, under Title I of the Housing and Community Development Act of 1974, as amended, Public Law 93-383; and, WHEREAS, the City of Beaumont has been awarded ONE MILLION EIGHT HUNDRED SIXTY-FIVE THOUSAND THREE HUNDRED NINTY FOUR AND 00/100 Dollars ($1,865,394) in HOME-ARP entitlement funds; and, 2 WHEREAS, the City of Beaumont is undertaking certain activities to develop a viable community by providing decent housing, a suitable living environment, and expanding economic opportunities principally for HOME-ARP Qualifying Populations, as described in the HOME-ARP Program applications; and, WHEREAS, The Subrecipient has requested funds from the City for the benefit of HOME-ARP Qualifying Populations; and, WHEREAS, the City and Subrecipient desire to enter into an Agreement in accordance with 24 Code of Federal Regulations (CFR) Part 92 and the HOME-ARP Notice, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to provide the Subrecipient a sub-award from HOME-ARP funds to carry out Project activities in compliance with the HOME-ARP program application; and, WHEREAS, the Subrecipient’s use and benefit of HOME-ARP funds is contingent upon execution of funding approval Agreement by the City and HUD, and, WHEREAS, the funding and other City administration of this agreement shall be through the City of Beaumont Community Development Department; and, WHEREAS, Exhibits A, B, and C are essential to this Agreement, attached hereto, and incorporated herein by reference. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, the parties hereto agree as follows: ARTICLE 1 WHEREAS CLAUSES The WHEREAS clauses set forth above are incorporated herein by reference and made a part of the Agreement 3 ARTICLE II DEFINITIONS 1. The City means the City of Beaumont. 2. The “Subrecipient” means Tender Loving Care Center for Children dba Legacy Community Development Corporation. 3. “HUD” means Department of Housing and Urban Development. 4. “HOME-ARP” means HOME Investment Partnership Program American Rescue Plan. 5. “HOME Administrator” means Grants Manager. 6. “HOME-ARP Notice” means HUD’s notice CPD-21-10. 7. “HOME Regulations” refers to Federal regulations CFDA 14.239. 8. “AMI” means the Area Median Income for the City of Beaumont. 9. “FMR” means the Fair Market Rent for the City of Beaumont. 10. “City approval” means the written approval of the City of Beaumont 11. “Allocated Sum” refers to the total amount of the budget allocated for this Project as shown in Exhibit “A”. 12. Business Day(s) shall mean Monday to Friday and do not include public holidays and weekends. ARTICLE III STATEMENT OF WORK 1. Project: Subrecipient shall utilize HOME-ARE Funds to perform the scope of services set forth in Exhibit A of the Agreement (“Project”) for the City in full and complete accordance with this agreement. 2. Schedule: The Subrecipient shall perform the Project in accordance with the schedule and deadlines set forth in Exhibit A. ARTICLE IV BUDGETS In consideration of the provision of services by the Subrecipient, the City is allocating an amount of $200,000 (“Allocated Sum”) towards the Project described in Article III above. Additional requirements of the Project shall be as described in Exhibit A, attached hereto and incorporated by reference. The Allocated Sum is to be requested within a period of twenty-four (24) months from the Effective Date of this Agreement. 4 The City and the SUBRECIPIENT may agree to revise the budget in accordance with HOME-ARP regulations and existing City policies. Expenditures reimbursed with HOME- ARP funds shall be limited to eligible activities as determined by the City for the Project as described in Article III. ARTICLE V TERMS OF AGREEMENT 1. The term of this Agreement (“TERM”) shall commence on the last date signed by the Parties below (“Effective Date”) and shall remain in full force and effect for two (2) years unless earlier terminated as provided herein in Article XII. 2. Upon written request on letterhead from the Subrecipient, the Term may be extended up to two (2) months past the expiration date upon approval from the City Council. The letter must be dated and signed before the expiration of the Agreement by a person with signature authorization. ARTICLE VI FUNDING Funding Delivery: The HOME-ARP funding shall be delivered to the Subrecipient or the Subrecipient’s vendor in accordance with the terms of the Agreement. Eligible expenditures made during the Term of the Agreement shall be reimbursed pursuant to the terms of the Agreement. Notwithstanding the foregoing, funding may be suspended in the event Quarterly Performance Reports (Exhibit C, attached hereto) are not submitted timely to the City. Reimbursement by the City of the Allocated Sum to the SUBRECIPIENT shall be submitted quarterly using the forms attached as Exhibit C, Request for HOME-ARP Reimbursement, and Quarterly Performance Report. Payment requests must comply with the applicable requirements of 2 CFR 200 and must meet the following criteria: 1. The SUBRECIPIENT shall submit to the City, through the Community Development Block Grant/Housing Division, any and all documents requested by the City verifying the request for payment, herein “Verifying Documents.” Verifying Documents may include, but are not limited to: 5 a. When HOME-ARP reimbursement is sought for salaries or related benefits for employees, individual timesheets must be kept. Benefits may only be claimed for the portion of the salary being requested. Timesheets must identify funding sources for the employee. HOME-ARP and other activities undertaken by the employee must be documented on the timesheet with the date, times and the number of hours worked. Timesheets must be signed by the employee and an individual with signatory authority pursuant to the governing documents of the Subrecipient (I.e., corporate bylaws or resolution), and all applicable cancelled checks (front and back) or a bank statement, if the cancelled checks are not legible, are required. Include the employee’s name and the eligible gross wages and benefits being requested for reimbursement for each employee. If health or other benefits are being reimbursed, proof of those items must be included in the invoice. b. When reimbursement is sought for services or materials, a copy of the applicable invoice or receipt for materials or services for each eligible expense is required. Invoices must include a description of the materials or services purchased. A cost is eligible for the HOME-ARP Program only if the cost is necessary to the overall completion of the Project. If there is a disagreement between the Parties regarding whether an item was necessary to the overall completion, the final decision shall be made by the City. Documentation of eligible costs shall include a copy of the front and back of the cancelled check, bank statement, or credit card statement used in payment, reconciled to the applicable expense. c. When direct payment to the vendor is sought for services or materials, a copy of the applicable invoice or sales contract for each eligible expense is required. 2. The City shall, in its sole discretion, determine if the Verifying Documents or any portion of them are acceptable and in strict compliance with the purpose and laws stated herein and approve them for payment. If the City determines there are any errors in the Verifying Documents, the City shall notify the Subrecipient. The Subrecipient shall submit corrected Verifying Documents within ten (10) working days of receipt of the notice. Payment shall not be made for any Verifying Documents that contain errors, as determined by the City. 3. Upon determination by the City that Verifying Documents are approved, the City will initiate the payment process. The City reserves the right to delay any payment request for Verifying Documents containing errors until such errors are corrected to the satisfaction of the City. 4. If any costs are disallowed up to five (5) years after the expiration of this Agreement or until HUD closes out the Project, whichever occurs later, and the City is forced to reimburse the HOME-ARP Program or HUD, then the Subrecipient shall reimburse the City for the said costs. 6 5. Within ten (10) days after Project completion the SUBRECIPIENT shall submit the final request for payment for all eligible expenditures not previously invoiced. The City shall not be responsible for payments of any charges, claims, or demands of the Subrecipient not received within the said ten (10) day period; however, such time may be extended at the City’s discretion not to exceed a period of thirty (30) days, provided the delay in its submission is not caused by any fault or negligence of the Subrecipient. ARTICLE VII NOTICES Unless and to the extent otherwise provided in this Agreement, all notices, demands, requests for approvals, and other communications which are required to be given by either party to the other shall be in writing and shall be deemed given and delivered on the date delivered in person to the authorized representative of the recipient provided below, upon the expiration of five (5) days following the date mailed by Registered or Certified Mail, Postage Prepaid, Return Receipt Requested to the authorized representative of the recipient at the address provided below, or upon the date delivered by overnight courier (signature required) to the authorized representative of the recipient at the address provided below. Jes Prince 801 Main Street Beaumont, Texas 77701 ARTICLE VIII GENERAL COMPLIANCE The Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under the Agreement. ARTICLE IX PUBLIC RECORDS The Subrecipient agrees to comply with all applicable Federal, State, and local laws and regulations which govern the funds provided under this agreement. 7 ARTICLE X RETENTION AND ACCESSIBILITY OF RECORDS A. The Subrecipient must establish and maintain sufficient records, as determined by the City, to account for the expenditure and use of HOME-ARP funds. B. Subrecipient shall give the City, the Comptroller General of the United States, or any of their duly authorized representatives access to and the right to examine all books, accounts, records, reports files, and other papers, things or property belonging to or in use by Subrecipient pertaining to this contract. Such rights to access shall continue as long as the records are retained by Subrecipient. The Subrecipient agrees to maintain such records in an accessible location. C. All records pertinent to this contract shall be retained by Subrecipient for five (5) years following the date of termination of this contract or submission of the final close -out report, whichever is later, with the following exceptions: 1. If any litigation, claim, or audit is started before the expiration of the five (5) hear period and extends beyond the five (5) year period, the records will be maintained until all litigation, claims, or audit findings involving the records have been resolved. 2. Records relating to real property acquisition or long-term lease shall be retained for a period equal to the useful life of any repairs made with HOME-ARP funds. ARTICLE XI INDEPENDENT CONTRACTOR Nothing contained in the Agreement is intended to or shall be construed in any manner as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an independent contractor with the respect to the services to be performed under this Agreement. The City shall be exempt from payment of all unemployment compensation, FICA, retirement, life and/or medical insurance, and corkers’ compensation insurance. ARTICLE XII AMENDMENTS Except as otherwise provided for herein, this Agreement may not be modified, amended or extended orally. This Agreement may be amended only by a written instrument execute by the governing bodies of both parties. The City and the SUBRECIPIENT may amend this 8 Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing and approved by the governing bodies of each party. The City may, at its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies, or available funding amounts or for other reasons. If such amendments result in a change in the funding, the scope of services, or the schedule of activities to be undertaken as part of the Agreement, such modifications will be incorporated only by written amendments signed by authorized representatives from both the City and the Subrecipient. ARTICLE XIII SUSPENSION AND TERMINATION 1. Termination: a. Either party may terminate this Agreement without cause at any time by giving at least a thirty (30) day written notice to the other party of such termination. The City may terminate this Agreement with a cause immediately upon written notice to the Subrecipient. Cause shall include, but is not limited to, SUBRECIBPIENT’s failure to strictly comply with 24 CFR 92.505, all applicable Federal, State, and local laws, rules, and regulations, default on any of the terms and conditions of this Agreement, or any substandard performance by the SUBRECIPIENT as defined herein. Substandard performance shall be any performance indicated by Verifying Documents but not reflected in the actual performance of the Project. In the event of substandard performance, the CITY shall notify the SUBRECIPIENT in writing of such substandard performance. The SUBRECIPIENT shall take corrective action within a reasonable time, but in no event later than forty-five (45) days from receipt of the notice from the City b In the event of any termination, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports, or other materials prepared by the Subrecipient under this Agreement shall, at the option of the City, become the property of the City, and the Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. c. In the event of termination, the City shall not make payment for any additional costs incurred after the effective date of termination. All work completed prior to the effective date of the termination may be reimbursed pursuant to the terms of the agreement, provided that all required documents are submitted to the City withing thirty (30) days of the date of termination. 9 ARTICLE XIV DOCUMENTATION / RECORD KEEPING / ADMINISTRATIVE REQUIREMENTS 1. Maintenance of Records a. The Subrecipient shall maintain all records required by Federal regulations specified in 2 CFR Part 200 that are pertinent to the project herein funded by the Allocated Sum. Such records shall include, but are not limited to: (1) Application requestion Project funding (2) Executed Subrecipient Agreement approving the Project, including any amendments to the Agreement. (3) Records providing a full description of each activity undertaken. (4) Records demonstrating eligibility of work performed to be paid by the Allocated Sum. (5) Records documenting the acquisition, improvement, use, or disposition of real property acquired or improved with the Allocated Sum, if applicable. (6) Records documenting compliance with the Fair Housing and Equal Opportunity components of the HOME Program, if applicable. (7) Financial records as required by 24 CFR 92.505, 2 CFR Part 200, and all Financial Management standards as specified in this agreement. (8) Copy of Request for HOME-ARP Reimbursement and Quarterly Performance Reports submitted as required herein. b. The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, the client’s name address, race or ethnic group, age, income level, head of household status (gender and marital status), Social Security number, number of bedrooms, tenant contribution, monthly gross rent, percentage of the median, size of household, type of contract, status, contract and date, any other basis for determining eligibility, amounts of rent and security deposit subsidies provided and calculations of the eligible amounts, actions undertaken to comply with equal opportunity and fair housing requirement, and any other applicable data the City may direct from time to time. Such information shall be made available to the City for review upon request. 10 c. Subrecipient will create, maintain, and allow inspection of records demonstrating the income of all clients served, using the annual income definition adopted by the City, in accordance with 24 CFR 5.609(b)(9) (Section 8 definition of household income) d Subrecipient will create, maintain, and allow inspection of records demonstrating all clients served are eligible for HOME-ARP assistance based on the requirements of the ARP and Section IV of the HOME-ARP Notice. All clients served must meet the criteria of the Qualifying Populations in the Section IV.A(1), (2), (3), and (4): (1) Homeless as defined in 24 CFR 91.5; (2) At-risk of homelessness, as defined in 24 CFR 91.5; (3) Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking as defined by HUD in 24 CFR 5.2003; (4) Other populations in which providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of instability as defined in Section IV.A (4) (1) and (2) of the HOME-ARP Notice. e. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with the conflict-of-interest requirement of 24 CFR 92.356. f. Subrecipient shall create, maintain, and allow inspection of records demonstrating compliance with debarment and suspension requirements in 2 CFR part 2424. g. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with affirmative marketing and minority outreach requirements of 24 CFR 92.351. h. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with the applicable uniform administrative requirements required by Section VII.D of the HOME-ARP Notice. i. Subrecipient will create, maintain, and allow inspection of records demonstrating compliance with records of emergency transfers requested under 24 CFR 2005 and 25 CFR 92.350 pertaining to victims of domestic violence, dating violence, sexual assault, or staling, including data on the outcomes of those requests. 11 j. Subrecipient will create, maintain, and allow inspection of records demonstrating that each household qualifying as homeless, records that meet the requirements in 24 CFR 576.500 (b)(1), (2), (3), or (4), as applicable. 1. Subrecipient will create maintain, and allow inspection of records demonstrating that each household qualifying as “at risk of homelessness” records that meet the requirements in 24 CFR 576.500 (c)(1) or (2), as applicable, and include the following documentation of annual income. (1) Income evaluation from containing the minimum requirements specified by HUD and completed by the Subrecipient; and (2) Source documents for the assets held by the household and income received over the most recent period for which representative data is available before the date of the evaluation (e.g., wage statement, unemployment compensation statement, public benefits statement, bank statement); (3) To the extent that the source documents are unobtainable, a written statement by the relevant third party (e.g., employer, government benefits administrator) or the written certification by the Subrecipient’s intake staff of the oral verification by the relevant third party of the income the household received over the most recent period for which representative data is available; or (4) To the extent that the source documents and third-party verification are unobtainable, the written certification by the household of the amount of income the household received for the most recent period representative of the income that the household is reasonably expected to receive over the 3-month period following the evaluation. 2. Retention of Records: The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all Federal audit findings, whichever occurs later. Records for nonexpendable property acquired with funds under this Agreement shall be retained for five (5) years after the final disposition of such property. Records for any displaced person must be kept for five (5) years after he/she received the final payment. 3. Access to Records: The City and the Comptroller General of the United States or any of their authorized representatives shall have the right of access to any pertinent books, documents, papers, or other records of grantees and subgrantees which are pertinent to the grant in order to make audits, examinations, excerpts, and transcripts. The right of access shall last as long as any record is required to be maintained. The Subrecipient, its employees, or agents shall provide access during the Term to all related records and documents for accounts placed with the Subrecipient by the City at reasonable times to the City, its employees, or agents. “Reasonable” shall be construed according to the circumstances but ordinarily shall mean during normal business hours of 8:00 a.m. to 5:00 p.m. Central Standard Time. Monday through Friday. “Agents” shall include, but be not limited to auditors retained by the City. 12 ARTICLE XV RECORD-KEEPING DISPLACEMENT, RELOCATION, AND REAL PROPERTY ACQUISITION Subrecipient shall create, maintain, and allow inspection of records demonstrating compliance with the requirements of 24 CFR 92.353 and the provisions of Section VII.F. of the HOME-ARP Notice regarding displacement, relocation, and real property acquisition, including but not limited to: 1. Project occupancy lists identifying the name and address of all persons occupying the real property on the date described in 24 CFR 92.353©(2)(i)(A) and occupying the property upon completion of the project. 2. Lists of all individuals or families occupying hotels and motels and other nonresidential properties acquired, rehabilitated, and/or demolished and newly constructed to become HOME-ARP NCS or HOME-ARP rental housing that qualify for assistance under the HOME-ARP Notices as members of a qualifying population, as well as records indicating whether such persons were assisted by the HOME-ARP program by the participating jurisdiction following the closure of the nonresidential properties because of the HOME-ARP activities. 3. Lists of all individuals or families occupying HOME-ARP NCS that were converted during the required use period that qualify for assistance under the HOME-ARP Notice, as well as records indicating whether moving costs or advisory services were provided as part of HOME-ARP administrative costs or under the HOME-ARP supportive services activity in Section VI.D of the HOME-ARP Notice, and records indicating whether such persons were assisted by the HOME- ARP program by the participating jurisdiction following the conversion of the HOME-ARP NCS units. ARTICLE XVI HOME-ARP TBRA REQUIREMENTS AND PROVISIONS SUBRECIPIENT shall disburse the Grant monies through a HOME-ARP TBRA program that SUBRECIPIENT shall design and administer in accordance with this Article and to the extent not provided otherwise in this Agreement, in compliance with all requirements under Section VI.C of the HOME-ARP Notice, all other applicable provisions of the federal regulations, and any other laws. 13 SUBRECIPIENT shall promulgate a written HOME-ARP TBRA program, including tenant-selection criteria and rental assistance contracts, and related administrative forms. As appropriate, the written program may adopt pertinent provisions of this Article by reference to a Section or sub-section without repeating them verbatim. The rental assistance contracts and other forms used to implement the HOME-ARP TBRA program shall meet the requirements for a “Section 8 Rental Certificate Program” under 24 CFR Part 888 and 24 CFR Part 982. The TBRA program shall include the following requirements and provisions: 1. SUBRECIPIENTS shall use a waiting list to identify and prioritize eligible households for HOME-ARP TBRA. 2. SUBRECIPIENT shall serve clients that meet the definition of “Qualifying Population” as defined in Section IV.A(1), (2), (3), and (4). 3. At all times while receiving HOME-ARP TBRA, the selected tenants must reside in, and the assisted lease premises must be located within Beaumont, Texas. 4. SUBRECIPIENT shall create and maintain records of compliance with the housing quality standards, lease terms (including copies of all executed leases), minimum tenant contributions, actions taken to affirmatively further fair housing, and all other requirements of the HOME-ARP TBRA program. 5. The Grant monies may not be used to further subsidize the rent of units already receiving another form of rent subsidy (i.e., public housing or Section 8). 6. The HOME-ARP TBRA program may include assistance with security deposits as provided in 24 CFR 92.209(j) and may not exceed the equivalent of two (2) months rent for the rental unit. Any refunds of security deposits upon the termination of a lease, or at any other time, may be paid to the tenant and need not be refunded to SUBRECIPIENT. 7. SUBRECIPIENT shall enter into a written rental assistance contract complying with 24 CFR 92.209 and 24 CFR 92.253 with each eligible tenant before disbursing rental or security deposit assistance funds. The term of each rental assistance contract must begin on the first day of the term of the tenant’s lease and must terminate on termination of the lease. 8. Each lease must not be for less than one (1) year unless by mutual agreement of the tenant and the owner. NO lease may contain any of the following terms, and each lease must affirmatively negate all of these terms either in the body of the 14 lease or by means of an attach addendum that controls notwithstanding any contrary provision of the lease: a. Agreement by the tenant to be sued, to admit guilt, or to a judgement in favor of the owner in a lawsuit brought in connection with the lease. b. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning the disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with the state law. c. Agreement by the tenant not to hold the owner or the owner’s agents legally responsible for any action or failure to act, whether intentional or negligent. d. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant. e. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. f. Agreement by the tenant to waive any right to a jury trial. g. Agreement by the tenant to waive the tenant’s right to appeal, or to otherwise challenge in court a court decision in connection with the lease, and h. Agreement by the tenant to pay attorney’s fees or other legal costs even if the tenant wins in a court proceeding by the owner against the tenant. The tenant, however, may be obligated to pay costs if the tenant losses. i. Mandatory supportive services Agreement by the tenant (other than a tenant in transitional housing) to accept supportive services that are offered. 9. Each lease must provide that the owner may not terminate the tenancy or refuse to renew the lease of the tenant except for serious or repeated violation of the terms and conditions of the lease; for violation of the applicable federal, state, or local law, for completion of the tenancy period, if the tenancy is “transitional housing” or for other good cause Each lease must provide that to terminate or refuse to renew the tenancy, the owner must serve written notice upon the tenant specifying the grounds for the action of at least 30 days before the termination or the tenancy. 15 10. SUBRECIPIENT shall require each owner that is a party to a lease to adopt written tenant selection criteria that: a. Are consistent with the purpose of providing housing for very low-income and l ow-income households; b. Are reasonably related to the HOME-ARP TBRA program eligibility and the applicant’s ability to perform the obligations of the lease; c. Give reasonable consideration to the housing needs of households that would have a federal preference under 24 CFR 92.209(c)(2); d. Provide for the selection of tenants from a written waiting list in the c chronological order of their application, insofar as is practicable; and e. Give prompt written notification to any rejected applicant of the grounds for any rejection. 11. Neither the City or SUBRECIPIENT shall be a party to any lease for which assistance is given under the HOME-ARP TBRA program. The compliance of any lease with the provisions of this Agreement shall not connote approval or endorsement of the lease by the City or by the Subrecipient but means only that the lease does not bar the tenant from qualifying for HOME-ARP TBRA. The HOME-ARP TBRA program shall provide that the tenant’s TBRA will be discontinued if the tenant is evicted by judicial process for cause under the terms of the lease. 12. The rent subsidy for any rental unit paid with Grant monies may not exceed the difference between the rent standard established by the City for the unit size and thirty percent (30%) of the monthly adjusted income of the family of the tenant, in accordance with 24 CFR 92.209(h)(1). The SUBRECIPIENT shall use FY 2022 Fair Market Rents by Unit Bedrooms for the City of Beaumont Metropolitan Area. This can be found as an attachment to this agreement in Exhibit C. 13. The rent to be paid under each lease must be reasonable, based on rents that are charged for comparable unassisted rental units. The City shall establish rents standards for various unit sizes in accordance with 24 CFR 92.209(h)(3) and shall advise SUBRECIPIEJNT of the rent standards applicable from time to time. 14. Housing for which assistance is received under the HOME-ARP TBRA program must meet and be maintained in accordance with the following standards: a. The housing quality standards in Section VI.C.9 of the HOME-ARP Notice; 16 b. Accessibility requirements in the regulations referenced in 24 CFR 5.105(a), which implement the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973; and c. All applicable state and City housing codes and ordinances. 15. SUBRECIPIENT, shall conduct inspections of each rental unit before approving assistance under the HOME-ARP TBRA program and at least annually thereafter, during the term of the rental assistance contract to ensure these standards are met. If any rental unit for which HOME-ARP TBRA assistance is being given falls below these standards, the City shall promptly notify SUBRECIPIENT, the tenant, and the owner of the housing of the specific matters needing correction and shall give a reasonable time (generally ranging from twenty-four (24) hours for violations that are an imminent health or safety threat, to thirty (30) days for other problems) for the deficiencies to be corrected. If the deficiencies are not corrected within the time allowed, the HOME-ARP TBRA Grant monies shall be suspended for that rental unit until the deficiencies are corrected to the satisfaction of the City. This HOME-ARP TBRA contract may also be cancelled if the deficiencies continued unabated. 16. Each tenant selected to receive assistance must consent in writing for his or her files to be inspected, copied, and audited by the City, HUD, or any of their agents or employees, and must waive any confidentiality requirements that may otherwise be breached as a direct or indirect result of any such inspection, copying, or audit. 17. SUBRECIPIENT shall verify all factors relating to a family’s eligibility for HOME- ARP TBRA that have not already been verified by the City at the time of the application. The verification will be by means of third-party verification and review of primary documents provided by the applicant or applicant certification. ARTICLE XVIII AUDITS/MONITORING 1. In the event that the Subrecipient expends Seven-Hundred-Fifty Thousand and 00 Dollars ($750,000.00) or more in Federal awards in its fiscal year, the Subrecipient must have a single or program-specific audit conducted in accordance with the provisions of Title 2 Code of Federal Regulations (CFR) Part 200, as revised. In determining the Federal awards expended in its fiscal year, the Subrecipient shall consider all sources of Federal awards, including Federal resources received from the City. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by Title 2 CFR Part 200, as revised. An audit of the Subrecipient conducted by the Auditor General in accordance with the provision 2 CFR Part 200, as revised, will mee the requirements of this part. 17 2. In connection with the audit requirements addressed in Paragraph 1 above, the Subrecipient shall fulfill the requirements relative to audit responsibilities as provided in 2 CFR Part 200, as revised. 3. If the SUBRECIPIENT expends less than Seven-Hundred-Fifty-Thousand and 00/100 Dollars ($750,000.00) in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, is not required. In the event that the Subrecipient expends less than Seven-Hundred-Fifty-Thousand and 00/100 Dollars ($750,000.00) in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of 2 CFR Part 200, as revised, the cost of the audit must be paid from non-Federal resources. 4. In addition to reviews of audits conducted in accordance with 2 CFR Part 200, as revised, monitoring procedures may include, but not be limited to, on-site visits by the City and/or HUD; limited-scope audits as defined by 2 CFR Part 200, as revised; submittal and review of financial statements; and/or other procedures. By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City and /or HUD determines that a limited-scope of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the City and/or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, reviews, investigations, or audits deemed necessary by the Chief Financial Officer or Auditor General. 5. Inspector General: In those instances where state funding is involved, the Subrecipient and its subcontractors must agree to cooperate with the inspector general in any investigation, audit, inspection, review or hearing. By entering into this Agreement, the Subrecipient certifies it understands and will comply with this provision. 6. If the subrecipient is not subject to the audit requirements found at 2 CFR Part 200 Subpart F, a financial report in accordance with FAS Statement No. 117, Financial Statement of Not-for-Profit Organizations, as amended, shall be submitted to the City within thirty (30) days after the end of its fiscal year. 7. Monitoring provides information for making an informed judgement about program effectiveness and management efficiency, as well as identifying internal weaknesses that may contribute to fraud or abuse. The monitoring procedures established for the Subrecipient may include, but are not limited to, on-site visits by the City or HUD; limited-scope audits as defined by 2 CFR Part 200, as revised, submittal and review of financial management statements as defined by FAS Statement No. 117, performance reports; and other procedures as determined necessary. 8. By entering into this Agreement, the Subrecipient agrees to comply and cooperate with any monitoring procedures/processes deemed appropriate by the City and/or HUD. In the event the City or HUD determines that more than a limited-scope audit of the Subrecipient is appropriate, the Subrecipient agrees to comply with any additional instructions provided by the 18 City or HUD to the Subrecipient regarding such audit. The Subrecipient further agrees to comply and cooperate with any inspections, review, investigations, or audits deemed necessary by the City, Chief Financial Officer, or Auditor General9. A copy of the audit or financial management report must be provided to the Community Development Department within thirty (30) days after receipt by the Subrecipient. ARTICLE XVIII PERFORMANCE, SUBCONTRACTS, AND AMENDMENTS 1. Performance Monitoring: The City shall monitor the performance of the Subrecipient against goals, performance standards, and requirements herein. Substandard performance, as determined by the City, in its sole and absolute discretion, shall constitute noncompliance of this Agreement. If such substandard performance is not corrected by the Subrecipient within a reasonable time period, as determined by the City, after being notified by the City of it, in accordance with Article XIII, contract suspension or termination procedures may be initiated and enforced in accordance with regulations set forth in 2 CFR Part 200, Subpart D, and Article XIII herein. In no case shall a reasonable period of time to begin the correction of substandard performance by shorter than seven (7) days or longer than ninety (90) days unless otherwise provided herein. Notwithstanding the foregoing, the City hereby agrees that any cure of any default made or tendered by the Subrecipient’s investor limited partner (or their affiliates, or their successors or assigns) shall be deemed to be a cure by the Subrecipient and shall by accepted or rejected on the same basis is if made or tendered by Subrecipient. 2. Reporting Requirements: The Subrecipient will inform the monitoring agent secured by HUD that the City must receive a copy of all documents relating to the monitoring and compliance of the Project. 3. Laws: The Subrecipient shall not enter into any contracts or subcontracts in the performance of this Agreement without the written consent of the City. All contracts or subcontracts made by the Subrecipient to carry out the Project shall be made in accordance with all applicable Federal, State, and local laws, rules and regulations stipulated in this Agreement and in strict accordance with all terms, covenants, and conditions in this Agreement. Any worker’s services contracted hereunder shall be specified by written contract or agreement and shall be subject to each article set forth in this Agreement. 4. Subcontract Monitoring: The Subrecipient shall monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. Such summaries and documents shall be submitted to the City with each Request for HOME Reimbursement and Quarterly Performance Report to be reported to HUD. 19 5. Prior City Approvals: The following includes, but is not limited to, activities that require the prior written approval of the City to be eligible for payments: a. All requests for proposals/qualifications, bid packages, proposed advertisements, and procurement documentation for services prior to award. b. The initiation of new activities not covered by this Agreement or changes in the location or the deletion of any activity/activities. c. Any service(s) or activity/activities other than those described in Article III above. d. Any proposed revisions to this Agreement. e. Requests to utilize remaining funds should there be a surplus after work is substantially completed. Requests must be made in writing and signed by an individual with signatory authority. ARTICLE XIX AWARD DELIVERY HOME-ARP Funds will be awarded as a grant pursuant to the terms of the Agreement. Subrecipient shall be required to enter into a Land Use Restrictive Agreement (LURA) for a period of 15 years, and such agreement shall be recorded in the Public Records of the City. The Allocated Sum shall be secured by a twenty (20) year deferred mortgage and promissory note on the real property on which the Project is located. ARTICLE XX REPAYMENT OF LOAN 1. All HOME-ARP funds are subject to repayment in the event the Project does not meet the requirements as outlined in this Agreement 2. It is understood that upon the completion of the Project, any HOME-ARP funds reserved but not expended under this Agreement will revert to the CITY. 3. Funds will remain a deferred loan for the period of twenty (20) years, at which time the loan may be forgiven or extended in the sole discretion of the City for another term. Sale of the property to another party may occur only with the approval of the City and the purchaser shall assume all obligations of the Subrecipient under this Agreement, the note and mortgage, and the deed covenants. Provisions in those documents will provide for the extinguishment of the requirements only in the event of a third-party foreclosure or deed in lieu of foreclosure. 20 ARTICLE XXI CONTRACT LIABILITY The City shall not be liable to any person, firm, or corporation who contracts with, or provides goods or services to, the Subrecipient in connection with the services as agreed to perform hereunder or for debts or claims accruing to such parties against the Subrecipient; and there is no contractual relationship either expressed or implied between the City and any other person, firm, or corporation supplying any work, labor, services, goods, or materials to the Subrecipient as a result of the Subrecipient’s services to the City hereunder. ARTICLE XXll PROGRAM INCOME The Subrecipient shall record the receipt and expenditure of the Program Income, as defined in 24 CFR 92.503(a) (“Program Income”), as part of the financial transactions of the grant-funded Project. The use of Program Income by the Subrecipient shall comply with the requirements set forth in 24 CFR 92.503. The Subrecipient may use Program Income during the Term of this Agreement and shall reduce requests for additional funds by the amount of any such Program Income on hand. The Subrecipient shall submit a detailed accounting of the receipt and use of Program Income as indicated in Exhibit C, attached hereto and incorporated herein, in conjunction with quarterly reporting that is required. All unused Program Income with interest shall be returned to the city at the end of the Term. The City shall return these monies to HUD. ARTICLE XXlll REVERSION OF ASSETS Upon expiration or termination of this Agreement, the Subrecipient shall transfer to the city any Allocated Sum that has not been specifically allocated for the Project pursuant to this Agreement, as specified in 24 CFR 92.504(c)(2)(vii). 21 ARTICLE XXIV INDEMNIFICATION The Subrecipient shall defend, hold harmless and indemnify the City and all of its officers, agents, and employees, whether current or former, from and against any and all actions, claims, liabilities, losses, damages, costs, attorney’s fees, charges, or expenses of whatever kind of nature which the City may sustain, suffer, incur, or be required to pay by reason of the loss of any monies paid to the subrecipient resulting out of fraud, defalcation, dishonest, or failure of the Subrecipient to comply with the Housing and Community Development Act of 1974 and its regulations; or arising out of any act, action, neglect, or omission during the performance of this Agreement, any part thereof, or work performed hereunder, whether direct or indirect; or by reason or result of injury caused by the Subrecipient’s or subcontractors’ willful or neglect maintenance or supervision of the property or work performed; or by reason of a judgement over and above the limits provided by the insurance required under Article XXV of this Agreement; or by any defect in the condition or construction of the Project if the Project was inspected and accepted by the Subrecipient; whether or not due to, or caused by negligence of the City or any of its agents and employees. Only a final adjudication judgement finding the City solely negligent shall excuse the performance of this provision by the Subrecipient. The Subrecipient shall pay all costs and fees related to this obligation and its enforcement by the City. This Article XXIV shall survive any termination, cancellation, or expiration of this Agreement. ARTICLE XXV INSURANCE 1. The Subrecipient shall procure and maintain, for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Subrecipient’s operation and use of any real property and any building, shelter, or similar structures thereon (hereinafter referred to as “Premises”). The cost of such insurance shall be borne by the Subrecipient. 2. The Subrecipient shall not enter or occupy the Premises until it has obtained all insurance required herein and such insurance has been approved by the City as provided herein. 3. The Subrecipient shall furnish certificate(s) of insurance on the form required by the City to the City. The certificate(s) shall clearly indicate the Subrecipient has obtained insurance of the type, amount, and classification required for strict compliance with this Agreement and that no reduction in coverage or in limits, suspension, or cancellation of the insurance shall be effective without thirty (30) days prior written notice as provided below. The certificate(s) shall 22 be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required policies at any time. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits, except after thirty (30) days prior written notice by Certified Main, Return Receipt Requested, has been given to the City to the attention of the City of Beaumont community Development Director. In the event the insurance coverage expires prior to the termination or end of this Agreement, a renewal certificate shall be issued thirty (30) days prior to the expiration date. Compliance with the foregoing requirements shall not relieve the Subrecipient of the liability and other obligations under this Agreement. Neither approval by the City or a failure to disapprove insurance certificates or policies furnished by the Subrecipient shall release the Subrecipient of full responsibility for all liability or its obligations under this Agreement. 4. All insurance policies shall be issued by responsible companies authorized to do business under the laws of the State of Texas, have an “A” policyholders’ rating, have a financial rating of at least Class VIII in accordance with the most current Best’s Key Rating Guide, and shall be satisfactory to the City. All policies of insurance required by this Agreement shall be primary insurance with respect to the City, its officials, agents, and employees. Any insurance or self-insurance maintained by the City, its officials, agents, or employees shall be in excess of the Subrecipient’s insurance and shall not contribute to it. All policies of insurance required by this Agreement, except workers’ compensation, shall specifically provide that the City shall be an “additional insured” under the policy and shall contain a Severability of Interests provision. All insurance policies required herein and all provisions hereof shall apply to all operations, activities, or use by the Subrecipient or by anyone employed by or contracting with the Subrecipient, and it is the Subrecipient’s responsibility to ensure that any contractor, subcontractor, or anyone directly or indirectly employed by any of them complies with those insurance provisions and that the City is an “additional insured” on such policies. Any deductibles or self-insured retentions must be declared to and approved by the City and are the responsibility of the Subrecipient. The minimum types and limits of coverage to be carried by the Subrecipient are as follows: a. Workers’ Compensation and Employer’s Liability: If the Subrecipient falls under the State of Texas Workers’ Compensation law, the Subrecipient shall provide coverage for all employees. The coverage shall be for the statutory limits in compliance with the applicable State and Federal laws. The policy must include employer’s liability with a limit of One Hundred Thousand and 00/100 Dollars ($100,000.00) for each accident. The insurer shall agree to waive all rights of subrogation against the City, its officials, agents and employees. b. Comprehensive General Liability: Shall include premises and/or operations, broad form property damage, independent contractor, contractual liability, and fire legal liability, and shall be written on an “occurrence 23 basis”. In the event Subrecipient is only able to secure coverage on a “claims-made basis”, the Subrecipient shall be obligated, by virtue of this Agreement, to maintain tail coverage in effect with no less limits of liability, nor any more restrictive terms and/or conditions, for a period of three (3) years from expiration or termination of this Agreement. c. Bodily injury and personal injury, including death: $1,000,000.00 each person; $2,000,000.00 aggregate; $1,000,000.00 each occurrence; $2,000,000.00 aggregate ARTICLE XXVI NONASSIGNABILITY The Subrecipient may not assign this Agreement without the prior written consent of the City. ARTICLE XXVII HEADINGS All articles and descriptive headings of paragraphs in this Agreement are inserted for convenience only and shall not affect the construction or interpretation hereof. ARTICLE XXVIII CONTRACT EXTENSION This agreement may be executed in whole or in part, and each fully executed part shall be deemed an original instrument. 24 ARTICLE XXVIX COMPLIANCE The Subrecipient agrees to comply with any City or State civil rights ordinances; Title XI of the Civil Rights Act of 1964, as amended; Title XIII of the Civil Rights Act of 1968, as amended; Section 109 of Title I of the Housing and Community Development Act of 1974; the Americans with Disabilities Act of 1990; the Age Discrimination Act of 1975; and Executive Orders 11063 and 11246, as amended by Executive orders 11375 and 12086. ARTICLE XXX UNIFORM ADMINISTRATIVE REQUIREMENTS The Subrecipient shall comply with 24 CFR 92.505, and adhere to accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. The Subrecipient shall administer the Project in conformance with Section VIII.D. of the HOME-ARP Notice, as amended. ARTICLE XXXI NONDISCRIMINATION The Subrecipient will not discriminate against any employee or applicant for employment because of race, color creed, religion, ancestry, national origin, sex, disability, other handicaps, age marital status, or status with regard to public assistance. To the extent Subrecipient has employees, the Subrecipient will take affirmative action to ensure that all employment practices prohibit such discrimination. Such employment practices include but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, lay-off, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. ARTICLE XXXII REHABILITATION ACT OF 1973, SECTION 504 The Subrecipient agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 United States Code of Law (U.S.C.) 794) 25 which prohibits discrimination against the handicapped in any Federally assisted program. The City shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations during the term of this Agreement. ARTICLE XXIII LABOR STANDARDS The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (48 CFR 22.405-1), the provisions of contract work hours and the Safety Standards Act (40 U.S.C. 3701, et seq. and 48 CFR 22.403-1, 22-403- 3); the Copeland “Anti-Kickback” Act (48CFR 220403-2; 18 U.S.C. 874 et seq.; 40 U.S.C 3141, et seq., formerly cited as 40 U.S.C. 276a, 327-333) and all other applicable Federal, State, and local laws and regulations pertaining to labor standards insofar as such acts apply to the performance of this Agreement. The Subrecipient shall maintain documentation that demonstrates compliance with all hour and wage requirements of this part. Such documentation shall be made available to the CITY for review upon request. ARTICLE XXXIV HUD ACT OF 1968, SECTION 3 1. Compliance with the provisions of Section 3 of the HUD ACT of 1968, the regulations set forth in 24 CFR Part 75, and applicable rules and orders issued hereunder prior to the execution of the Agreement shall be a condition of the Federal financial assistance provided under this Agreement and is binding upon the City, the Subrecipient, and any subcontractors. Failure to fulfill these requirements shall subject the City, the Subrecipient, and any subcontractors. Their successors, and assigns to those sanctions specified by the agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. 2. The Subrecipient agrees to send to each labor organization or representative of workers with whom it has a collective-bargaining agreement or contract or understanding, if any, a notice advising the said labor organization, or workers’ representative or its commitments under the Section 3 clause, and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 3. The Subrecipient will include the Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon finding that the contract is in violation of regulations issued by the City or the Federal government. The Subrecipient will not subcontract with any sub-contractor where it has notice or knowledge that the latter has been found in violation or regulations under 24 CFR Part 75 and will not let an subcontract unless the 26 subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these requirements. ARTICLE XXV HATCH ACT The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or any extent engaged in the conduct of political activities in violation of 5 U.S.C. 1501 et seq. as subsequently amended. ARTICLE XXXVI CONFLICT OF INTEREST The subrecipient covenants that it presently has no financial interest and shall not acquire financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Subrecipient further covenants that in the performance of this Agreement, not person having such a financial interest shall be employed or retained by the Subrecipient or subcontractor hereunder, except for services performed. These conflict-of-interest provisions apply to any person who is a person, agent, consultant, officer, or elected official or appointed official of the City or of any designated public agencies or SUBRECIPIENTS that are receiving funds under this agreement. ARTICLE XXXVII RELIGIOUS ORGANIZATION The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 5.109. ARTICLE XXXVIII LEAD-BASED PAINT The Subrecipient agrees that any construction or rehabilitation or residential structures, with assistance provided under this Agreement, shall be subject to the HUD Lead-Based Paint Regulations at 24 CFR 92.355. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants for properties constructed prior to 1978 be 27 properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paints and explain the symptoms, treatment, and precautions that should be taken when dealing with lead-based poisoning. ARTICLE XXXIV ENVIRONMENTAL CONDITIONS 1. Air and Water: Subrecipient agrees to comply with the following regulation insofar as they apply to the performance of this Agreement: a. Clean Air Act, 42 U.S.C 7401, et seq. b. Federal Water Pollution Control Act, as amended: 33 U.S.C. 1251, et seq., as amended; and 33 U.S.C. 1318, relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in the said Sections 114 and 308 and all regulations and guidelines issued thereunder. c. Environmental Protection Agency Regulations pursuant to 40 CFR Part 50, et seq., as amended. d. HUD Environmental Review Procedures (24 CFR Part 58) 2. Flood Disaster Projection: In accordance with requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.), the SUBRECIPIENT shall obtain and maintain flood insurance under the National Flood Insurance Program for any activities located in an area identified by the Federal Emergency Management Act as having special flood zones. ARTICLE XL HISTORIC PRESERVATION The Subrecipient agrees to comply with the historic preservation regulations set forth in the National Historic Preservation Act of 1968, as amended (54 U.S.C. 300101, et seq. (formerly cited as 16 U.S.C. 4701), and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures, for protection of historic properties insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for rehabilitation and demolition of all properties build fifty (50) years ago to assess how the activity could affect a historic property listed in or eligible for the National Register of Historic Places. 28 ARTICLE XLI CONTINUITY OF SERVICE 1. The subrecipient may not change the eligible use of the Units, the method of providing service by excluding properties or persons currently covered, sell or transfer the Units except in connection with the sale of the Project to an entity that assumes the Subrecipient obligations under this Agreement and the mortgage and note, or vacate the Units without the CITY’s permission, until the expiration of this Agreement. 2. If the City and the Subrecipient determine, after consultation with the affected citizens, that it is appropriate to change the use of the property to a use which does not qualify under Paragraph 1 of this article, the Subrecipient may retain or dispose of the property for the changed use after the City HOME is reimbursed in the amount of the Allocated Sum. During the term of the Agreement, the Subrecipient shall give a first right of refusal to eligible nonprofit organizations for the purchase of the Unit at the current market value so that the Unit may continue to be occupied by eligible persons as set forth in the mortgage and note. 3. Following the reimbursement of the Allocated Sum in accordance with Paragraph 2 of this article, the property will not longer be subject to any Program requirements. ARTICLE XLII NONEXPENDABLE PROPERTY Any nonexpendable personal property acquired by the Subrecipient under this project shall be subject to the provisions of the Housing and Community Development Act of 1974 and its regulations, including but not limited to, the provisions on the use and disposition of property for a period of five (5) years after the purchase. ARTICLE XLIII REAL PROPERTY PROTECTIONS 1. The City may have inspections of the premises either performed by the City, or on its behalf for structural integrity and safety. 2. Other than as provided in Exhibit A, the Subrecipient shall not mortgage or otherwise encumber title to the said real property by utilizing the said real property as collateral for any type of lien, note, mortgage, debt obligation, or security agreement without prior written notification to the HOME Administrator. 29 ARTICLE XLIV MAINTENANCE OF PREMISES The Subrecipient is required to maintain the real property and structures located thereon in a condition that meets all current housing, safety, and health standards as required by all applicable federal, state, and local laws, rules and regulations. ARTICLE XLV MISCELLANEOUS 1. Entire Agreement: This Agreement represents the entire agreement between the parties and supersedes any and all prior agreements, negotiations, or understandings, written or oral, relating to the matters set forth herein. Prior agreements, negotiations, or understandings, if any, shall have no force or affect whatsoever on this Agreement. All parties hereto agree that if any part, term, or covenant of this Agreement is held to be illegal, unenforceable, or in conflict with any applicable Federal, State, or local laws or regulations, such part shall be severable with the remainder of this Agreement valid and enforceable. 2. Sovereign Immunity: Nothing in this agreement shall be construed in any way to waive the sovereign immunity of the City. 3. Applicable Law: This Agreement, when not governed by Federal law, shall be governed by and interpreted in accordance with the laws of the State of Texas. 30 APPROVED IN FORM ______________________________ Sharee Reed City Attorney CITY OF BEAUMONT ___________________________________ Kenneth R. Williams City Manager ATTEST: ___________________________________ Tina Broussard City Secretary Tender Loving Care Center for Children dba Legacy Community Development Corporation ___________________________________ Vivian Ballou, Executive Director ____________________________ Date 31 32 33 G TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Cheryl Ray, Chief Financial Officer, Interim MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution changing authorized signatories for any institution the City Council has already designated or may designate as a depository for the City of Beaumont for banking. BACKGROUND Todd Simoneaux is currently authorized as a signatory on City accounts with Stellar Bank. Cheryl Ray is to be added as an authorized signatory on same accounts effective December 19, 2023, and Todd Simoneaux is to be deleted as authorized signatory effective December 19, 2023. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of the resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, Todd Simoneaux is currently authorized as a signatory on City accounts with Stellar Bank; and, WHEREAS, Todd Simoneaux is to be deleted as an authorized signatory at Stellar Bank for all City accounts effective December 19, 2023, and Cheryl Ray is granted authority as signatory at Steller Bank for City accounts effective December 19, 2023; 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 Todd Simoneaux is to be deleted as an authorized signatory at Stellar Bank for all City accounts effective December 19, 2023, and Cheryl Ray is granted authority as signatory at Steller Bank for City accounts effective December 19, 2023; and, BE IT FURTHER RESOLVED THAT this resolution shall be effective from and after the date of its passage. 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 19th day of December, 2023. _______________________________ - Mayor Roy West - 1 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Keith Folsom, Director of Facilities Maintenance MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution approving the proposal submitted by Entergy for the removal of electrical transformers located at 555 Main Street. BACKGROUND Regarding the demolition of the 555 Main Street building, there are currently two Entergy below grade electrical transformers located under the front porch area. To terminate the electrical power to this facility and clear the building pad of all utilities, the transformers must be removed. As part of the removal process Entergy must pull the electrical feed lines back to a new termination vault to be placed near the edge of the road, Entergy representatives stated that the high cost of the project results from traffic control, crane rental, and multiple manhours to move the transformers within the current vault to a location where they can lift the transformers out with a crane. In addition, the termination of the existing lines that are underground including the addition of the new pull box vault near the edge of the road results in multiple manhours and materials. The proposed cost of the transformer removal project is $98,791.87. This project is necessary to allow the demolition of the 555 Main Street building to move forward. The funds are available in the Capital Reserve account that was budgeted for the demolition of the 555 Main Street facility. FUNDING SOURCE Capital Reserve RECOMMENDATION Approval of the resolution ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council be and they are hereby authorized to approve the proposal submitted by Entergy for the removal of electrical transformers located at 555 Main Street in the amount of $98,791.87. 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 19th day of December, 2023. _______________________________ - Mayor Roy West - Entergy Texas, Inc. Invoice No: Customer No: Due Date: 2270217 10332 01/06/2024 Amount Due: 98,791.87 $ ______________________________________ CITY OF BEAUMONT Amount Remitted KEITH FOLSOM P O BOX 3827 BEAUMONT TX 77701 MAKE CHECKS PAYABLE TO: Entergy Texas, Inc. PO Box 679505 Dallas TX 75267-9505 TX0000000000103321000002270217300098791871 Entergy Texas, Inc. PO Box 679505 Dallas TX 75267-9505 accoun2@entergy.com PROFORMA Invoice : Invoice Date: Page: 2270217 12/07/2023 1 of 1 3 Customer No: Payment Terms: Due Date: 10332 Net 30 01/06/2024 Invoice amount is valid for 30 days from date of invoice. After 30 days the amount is subject to change. For Payment by Wire or ACH, please include invoice number in wire reference field and send electronically to Capital One 313 Carondelet Street New Orleans, LA 70130 ABA# 065000090 Account# 0672225647 For Payment via Check, please add the invoice number on the check and send with the below stub portion to PO Box 679505 Dallas, TX 75267-9505. CITY OF BEAUMONT KEITH FOLSOM P O BOX 3827 BEAUMONT TX 77701 For billing questions, please email: accoun2@entergy.com Line Description Quantity UOM Unit Amt Net Amount 1 Electric Underground Services Invoice amount is valid for 30 days from date of invoice. After 30 days the amount is subject to change. For Payments via Wire Please Remit to: Capital One ABA# 065000090, Account# 672225647 1.00 EA 98,791.87 98,791.87 Subtotal: 98,791.87 Amount Due: 98,791.87 USD 2 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Cheryl Ray, Interim Chief Financial Officer MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the lease of sixty-six (66) vehicles with Enterprise FM Trust. BACKGROUND In September of 2016, City Council approved an equity lease agreement with Enterprise FM Trust (EFM) through Resolution No. 16-187. The contract was awarded by the City to EFM by utilizing the TIPS USA cooperative contract #2072816. The City of Beaumont’s fleet includes over 400 vehicles that are light weight or medium sized vehicles. These vehicles range in age from new to more than 20 years old with the average age of eleven (11) years. Each year during the budget process, all fleet vehicles are looked at for age, mileage, maintenance and repair cost, and priority in providing city services to determine if they need to be replaced. EFM’s fleet management program provides a solution to this problem of aging vehicles through equity leases and resale. The equity lease is typically for a term of five years. At the end of the lease term the City can either purchase the vehicle for the residual value or can have EFM sell the vehicle through auction whereby the City receives the net proceeds. At that time the City can either keep the proceeds or use them to put another new vehicle under lease. The advantages to this program include the creation of a replacement cycle for City vehicles that tend to be left behind, improved fuel efficiency, reduced maintenance costs, higher resale return through a broad and well-established resale network and more properly matched vehicles to the needs of the operation. There are no wear and tear penalties, or mileage restrictions built into the lease. The Texas Local Government Code Chapter 791 allows a governmental agency to enter a joint purchasing agreement. The City entered this lease agreement with EFM through Region VIII Education Services Center, The Interlocal Purchasing System or TIPS which awarded a competitively bid contract. FUNDING SOURCE Capital Reserve Fund - $394,778.40. Water Utilities Fund - $160,225.32. Solid Waste Fund - $47,950.20. RECOMMENDATION Approval of the resolution. ATTACHMENTS RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to lease sixty-six (66) vehicles for use by various City departments pursuant to the existing Master Equity Lease Agreement as amended between the City of Beaumont and Enterprise FM Trust. The Equity Lease Menu Pricing is attached hereto as Exhibit “A,” and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19th day of December, 2023. _______________________________ - Mayor Roy West - 3 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to award a contract to Aranda Industries, LLC, of Houston, for the Caldwood Area Storm Sewer Point Repairs (REBID) Project. BACKGROUND The Caldwood Area Storm Sewer Point Repairs (REBID) Project shall consist of repairing areas where other utilities conflict with the storm sewer system. These repairs consist of building two conflict junction boxes to open up storm drainage lines that currently are impeded by conflicting utilities. On December 7, 2023, four (4) bids were received for furnishing all labor, materials, and equipment for the project. The Engineer’s Estimate is $100,000.00. The bid items are totaled in the table below: Contractor Location Base Bid Amount Aranda Industries, LLC Houston, TX $93,000.00 Brystar Contracting, Inc. Beaumont, TX $106,650.00 Bull-G Construction Houston, TX $109,475.00 SETEX Construction Corp. Beaumont, TX $188,800.00 The Public Works Engineering staff recommends this project be awarded to the lowest bidder, Aranda Industries, LLC, in the base bid amount of $93,000.00. A total of 45 calendar days are allocated for completion of the project. FUNDING SOURCE Certificate of Obligation. RECOMMENDATION Approval of the resolution. ATTACHMENTS Caldwood Area Storm Sewer Point Repairs (REBID) Bid Tab RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: WHEREAS, on December 7, 2023, four (4) bids were received for the Caldwood Area Storm Sewer Point Repairs (REBID) Project; and, WHEREAS, Aranda Industries, LLC, of Houston, Texas, submitted a bid in the amount of $93,000.00 to complete the work and materials for the Caldwood Area Storm Sewer Point Repairs (REBID) Project; and, WHEREAS, the City Council is of the opinion that the bid submitted by Aranda Industries, LLC of Houston, Texas is the lowest responsible bidder providing services at the best value to the City and should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Council hereby approves the award of a contract to Aranda Industries, LLC of Houston, Texas in the amount of $93,000.00 to complete the work and materials for the Caldwood Area Storm Sewer Point Repairs (REBID) Project; and, THAT the City Manager be and he is hereby authorized to execute a contract with Aranda Industries, LLC of Houston, 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 19th day of December, 2023. _______________________________ - Mayor Roy West - 4 TO: City Council FROM: Kenneth R. Williams, City Manager PREPARED BY: Bart Bartkowiak, Director of Public Works MEETING DATE: December 19, 2023 REQUESTED ACTION: Council consider a resolution authorizing eminent domain proceeding to acquire property to improve traffic safety at North Major Drive and Northwest Parkway. BACKGROUND In order to improve the traffic safety at the intersection of North Major Drive and Northwest Parkway, the City must acquire the property located at 4495 North Major Drive. The owner of this property has not accepted the offer to sell his property to the City for the appraised market value. The subject property was appraised by Cook & Associates, Inc. as described: Parcel #: 128650 Legal Description: PL RS5, TR 16 situated in the D. Easley Abstract No. 20 Owner: Nick G. Rankin Value: $17,500.00 Staff has made several attempts to contact the owner with the purpose of negotiating the acquisition of the property, but the owner has never responded. Since the owner has refused to sell the property to the City for the appraised market value, it is necessary to initiate proceedings in eminent domain to acquire the property. In order to authorize the exercise of eminent domain to acquire property, a specific motion and record vote is necessary. FUNDING SOURCE Certificate of Obligations. RECOMMENDATION Approval of the resolution. ATTACHMENTS Map RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council be and they are hereby authorized to initiate an eminent domain proceeding to acquire property to improve traffic safety at North Major Drive and Northeast Parkway being Plat RS5, Tract 16, situated in the D. Easley Survey, Abstract No. 20, City of Beaumont, Jefferson County, Texas. 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 19th day of December, 2023. _______________________________ - Mayor Roy West - EXHIBIT “A” DISCUSSION ITEM Council to Discuss Future Dates for City Council Meetings